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HomeMy WebLinkAbout6/16/2010 - STAFF REPORTS - 5.A. 41 u n A cg41FOIL CITY COUNCIL STAFF REPORT DATE: June 7, 2010 NEW BUSINESS SUBJECT: APPROVING PARTICIPATION IN A MULTI-AGENCY ENTERPRISE ZONE APPLICATION TO THE STATE OF CALIFORNIA FROM: David H. Ready, City Manager BY: Community & Economic Development Department SUMMARY The City Council shall consider approving the participation in a multi-jurisdiction application to the State's Department of Housing and Community Development for an Enterprise Zone designation for industrial/commercial lands in Desert Hot Springs, Cathedral City, and Palm Springs, The City of Cathedral City will enter into a Contractual Services Agreement with the Economic Development "ONCALL" Company to develop the application. RECOMMENDATION: 1. Approve the participation in the Enterprise Zone application process in the amount of$50,000 as the City's share. 2. Authorize the City Manager or his designee to execute any documents necessary to implement the recommendation. 3. Direct staff to allocate $50,000 from the Economic Recovery Plan funding. STAFF ANALYSIS: In May 2010, staff from the cities of Cathedral City, Desert Hot Springs, and Palm Springs met to discuss the idea of submitting an application to the State of California to obtain an Enterprise Zone designation for industrial/commercial lands in the Western Coachella Valley (the "WCVE7"). A proposal was solicited from a consultant to prepare Phase 1 review and "go/no go" opinion for the 2010 application round. The cost for Phase 1 was $16,000 and included: eligibility determination; conceptual boundaries; competitive analysis; bonus point's ITEM NO. r1 -- City Council Staff Report (June 7, 2010-- Page 2) (2010 Enterprise Zone Application) review; and the "go/no go" opinion. That cost was split between the three cities totaling $5,333.33 each. The consultants Phase 1 Report is attached for your consideration to approve whether Palm Springs will participate in this years application process. The Consultant's opinion is that there are no "fatal flaws" that would adversely affect the application and that the odds for a successful application may have increased over previous attempts to secure an enterprise zone designation. If the Cities decide to move forward with the full application the consultant's fee will be $135,000; or $45,000 per city. Additional costs include: a CEQA analysis estimated cost $3,000; and reimbursable travel expenses, not to exceed $5,000. Those additional costs will also be shared equally between the three cities. Greg O'Sullivan, with Economic Development "ONCALU is a firm based in Red Bluff, California. He has authored successful Enterprise Zone applications, including the 2008 Coachella Valley Enterprise Zone (east valley); and applications for Brawley/Imperial and Siskiyou County. Mr. O'Sullivan and his staff works with communities to build economic development capacity and implement effective business attraction, expansion and retention programs. FISCAL_ IMPACT: The $50,000 would be paid from the Economic Development Stimulus budget (Account #117-2022-50050). If the application is successful the zone will require a commitment of $50,000 to $100,000 per city per year for administration and marketing, for the life of the Enterprise Zone, which is 15 years. Funding for the annual commitment would come from the General Fund and Redevelopment Agency — Merged Project Areas 1 & 2. r" Cathy Van rn Thomas J. Wilson Economic Development Administrator Assistant City Manager David H. Read�Esq., City Manager Attachments: West Coachella Valley Enterprise Zone Phase 1 Retainer West Coachella Valley Enterprise Zone Application 2010 y GV West Coachella Valley Enterprise Zone Phase I Retainer "Considering the scope of this project, opinions of state staff and industry experts, the information or data provided by the cities and our evaluation of the issues/concerns cited, we see no "fatal flaws" that would adversely affect the application. In fact the odds for a successful application may have even increased." Greg O'Sullivan ECONOMICS DEVELOPMENTNIF Greg O'Sullivan (530) 941-2660 - greQo@)edoncatL.com West Coachella Valley Enterprise Zone Phase I Retainer Summary Greg O'Sullivan - Economic Development ONCALL was retained by Cathedral City, California to investigate and provide a reasonable assurance that a competitive enterprise application could be filed with the state of California. The scope of the work was to determine basic eligibility and boundary conformity for a multijurisdictional application comprised of Cathedral City, Desert Hot Springs and Palm Springs, Additionally, Economic Development ONCALL was asked to identify any fatal flaws in the proposed submittal or issues that would indicate a non-competitive application. With this in mind the following observations, opinions and findings are provided: "Considering the scope of this project, opinions of state staff and industry experts the information or data provided by the cities and our evaluation of the issues/concerns cited, we see no "fatal flaws" that would adversely affect the application. In fact the odds of the proposed application may have even increased." Greg O'Sullivan 1. Eligible Area - A natural contiguous "Eligible Area" that meets the application criteria was identified. It includes census tracts in Cathedral City, Desert Hot springs and Palm Springs. Furthermore, the Eligible Area does not require any special consideration or triggers the need for a request for an exception from the state of California. 2. Conceptual Boundary - A conceptual boundary is identified that includes commercial and industrial areas in Cathedral City, Desert Hot Springs and Palm Springs. Again the overall "natural contiguous boundary" fits the definition required in the application and does necessitate any special consideration'. 3. Bonus Points - The proposed eligible area is likely to garner 60.70 points as a result of the areas poverty and unemployment rates. Additionally, it is our opinion that documentation is availa ble (Disaster Declaration and gang activity) to garner additional points under Criterion 3 - Unique Distress; resulting in a score that is closer to 80.100 points. 4. Competitiveness Analysis - Previous unsuccessful application attempts and location of the proposed zone adjacent to the existing Coachella Valley Zone will not have any effect on the proposed application. Likewise, a statement made during an enterprise zone workshop that asserted that communities need to have 100% of the bonus points to be successful was inaccurate. HCD Program Manager John Nunn confirmed by telephone on June 2, 2010 that communities that will be competitive will require the awarding of bonus points as opposed to 100% of the bonus points. City staff will meet with Warren Jensen of the CSU Chico Center for Economic Development to refine the boundary and a make sure that any industrial/commerciat lands omitted is included in the final draft. 4 5. Other observations demonstrating WCVEZ competitiveness include: • Less Application Expected: in May, the state expected 15 applications to be filed for Z designations. However, John Nunn, EZ Program Manager confirmed that only five applicants are in contact and working with the state since the workshops. More importantly Mr. Nunn stated that an additional designation (3 total) will he made in the 2010 Round. • Commitment of funds: from a strategy standpoint the proposed West Coachella Enterprise Zone will need to commit ongoing financial resources (cash not in-kind) to administer the program. It is our opinion that each community will need to make a formal commitment of$50,000 -$100,000 to the annual Enterprise Zone operating budget ($150,000 - $300,000). Likewise, the state is looking at the private sector to participate in administration of the zone. Consequently, we recommend that the program budget commit to a goal of issuing 2000 vouchers annually collecting $50.00-$70.00 per voucher in fees. • Timing Considerations: to say that "time is of the essence" is an understatement. We are aware of at least two communities that have been working on their application since before the workshops in May. Both have consultants under retainer and like the proposed West Coachella Enterprise Zone have identified a preliminary conforming boundary. With the application deadline of September 15th fast approaching and the vast amount of data and writing to be accomplished, a decision to proceed must be made in the next 10 days to complete an application. • Future of the Enterprise Zone Program: no one can speak with any authority on what the future of the Enterprise Zone Program may be. The program is regularly challenged by those who are unsure of the effectiveness of the program. However, those at the state that run the program are reasonably sure that enough support exists for the program that it will not be discontinued by legislators. The communities which have designated zones are fiercely defensive of their benefits N and would not readily give them up. =. 6. Other Considerations: ri • The decision to allocate staff and consulting resources during such uncertain economic times is difficult. The Enterprise Zone Program is a "winner takes all" ra proposition. No consolation prize is offered. However, success could mean $25,000,000 in tax credits returned annually to local businesses. Enterprise Zone communities understand these monies are reinvested and create additional v opportunities, wealth and a strong positive message to the business sector. > P� tt: ns t.) N h Background On April 15`h 2010, the Department of Housing and DgL'�nRn1•{�Yy+y(•W C•wnavlg'lldebpweH Community Development announced the designation of two new enterprise zones. The California Legislature created the Enterprise Zone Program to stimulate economic growth in the most economically Enterprise Zane Program distressed areas in the State. California currently Designation Application has 42 enterprise zones located throughout the Guidebook State. The Enterprise Zone Program is a 15-year 2010 partnership between loc al governments, government agencies, non-governmental agencies and private business to generate new private-sector investment w and growth. To assist this partnership, the state of " California establishes a geographical area in which businesses are eligible for exclusive State incentives sr mr and programs, which include the fallowing: • Tax credits for sales and use taxes paid on qualified machinery purchases. • Tax credits for hiring qualified employees. • Interest deductions for lenders on loans to firms within the areas. • A 15-year net operating loss carry-forward. • Accelerated expense deductions. • Priority for various state programs, such as state contracts. For their part, local cities and counties applying for an enterprise zone must be strongly committed to an economic revitalization and development program. Communities must submit their applications for an enterprise zone designation to the department by September 15, 2010, Other critical data are as follows: :D Eligibility Affirmation June 15, 2010 • Submit Application September 15, 2010 • Complete Technical Review September 30, 2010 • Respond to Technical Deficiencies October 29, 2010 C) Complete Scoring Results November 30, 2010 3 Announce Conditionally Designated Enterprise Zones December 2010 Assignment Greg O'Sullivan - Economic Development ONCALL (ED ONCALL) was retained to assess a multijurisdictional application for a California Enterprise Zone Designation for the 2010 round of designations. A decision to pursue a designation is an enormous commitment of faith and time by both the jurisdiction and the consultant(s). ED ONCALL has prepared several successful multi jurisdictional applications including the Brawley/Imperial, Coachella Valley, Oroville/Butte County, and the Shasta Valley (Siskiyou) zones. ED ONCALL and the City agreed that the following scope of work would assist the communities of Cathedral City, Desert Hot Springs and Palm Springs to make a final decision to seek an application for a California Enterprise Zone Designation. The following scope of work is referred to as the "Phase I Retainer" by staff and the consultant. 1. Provide client with a basic "Eligibility Determination" as described in the 2010 Application Handbook. 2. Provide client with a recommended "Conceptual Boundary Configuration" as described in the 2010 Application Handbook. 3. Provide the client with "Bonus Point" analysis as described in the 2010 Application Handbook. 4. Prepare an "Eligibility Petition" (if required) as described in the 2010 Application Handbook. 5. Meet and confer with client to discuss a Competitive Analysis (issues/concerns). 6, Meet and confer to determine a final "Go" vs. "No Go" decision with client. 7. Prepare and submit preliminary boundaries for review by the Department of Housing and Community Development. For the most part the consultant was asked to identify any apparent "fatal flaws" that would eliminate the application from consideration or that might render the proposed zone from being a competitive submittal. c� Does the unsuccessful previous attempts in anyway prejudice a new application submittal? �Z Can we identify an eligible area that conforms to the guidelines and includes the communities of Cathedral City? 0 ;D How would the department view a proposed enterprise zone so closely located to the Coachella Valley Enterprise Zone? • Considering the California budget crisis, what is the future of the California Enterprise Zone Program? • Do we need to obtain 100% of the Bonus Points to be competitive? E 0 Eligibility Determination To apply for an Enterprise Zone, the West Coachella Valley Zone (proposed) must first establish its eligibility under the regulations. A community can establish its eligibility by meeting one of two options. �: Eligibility Option 1 - Distress Factors Z Eligibility Option 2 - Petition for Distress Area .Eligibility Option f—Distress Factors: Section Overview: According to the guidebook (p•g 4.7) a community can establish its eii.gibility by demonstrating that it contains an "eligible area" within each of its _jurisdictions, which meet specified criteria. An eNgible area shall consist of census tracts, black groups, or enumeration districts with continuous boundaries with a population of at least 2,500 people, each of which meet at least three or arore of the following distress Criteria: 1, The net increase in per Capita income between 1990 and 2000 was $5,042 or less; 2. The average rate of unemployment for both 2008 and 21109 was 7.4 percent or more; 3. The percentage of persons below the poverty level in 2000 was 15.2 percent or rnore. 4. At least 70 percent of househofds had inCornes below 80 percent of the median county househotd income in 2000; and 5. The area is within a jurisdiction declared a disaster area by the President of the United States within the last seven years. �� � i + , d i Based upon our evaluation of theN2 census tracts that comprise Cathedral City, Desert Hot Springs (k and Palm Springs a conceptual "eligible area was identified and mapped" (see attachment a Map �. Eligible area). Consequently, the proposed zone will not require ;M special consideration under "Eligibility Option Z - Petition for Distress Area" i u�s, nY, , ,.,;. � ,rr�r+ nn+nnvntr i n Yir 01. uui ( SFF ATTACHMENT A. FOR ADO)TIONAL OE'rAIL Conceptual Boundary Configuration Section Overview: to qualify for' an Enterprise Zone, the applicant must establish boundaries that encompass an eligible area in combination with an industrial andlor commercial area. Multi-jur•isdictianal applications will be considered if more than one jurisdiction shares an eligible area, however, the application must demonstrate the Commitment and participation of all the jurisdictions in program management, and each jurisdiction will be expected to provide evidence of those Commitments in audits and reports". Pg 4-11 Application Guidebook ED ONCALL/CSU Center for Economic Development along with city staff identified and mapped a conceptual multijurisdictional enterprise zone boundary that meets the programs criteria: (1) application area, (2) eligible area, (3) commercial area, and (4) industrial area. The boundary is contiguous and considers exiting commercial/industrial zone lands and those anticipated as part of the June 81h annexation election. Note: The boundary is provided as conceptual draft map. City staff will review the map to assure that all Commercial/industrial lands have been included. However, the draft alleviates any concerns that a contiguous boundary can be configured. Consequently, we see no reason or "fatal flaw" with regards to identifying a boundary that would adversely affect the application. Moreover, the exiting boundary will not require any special considerations or request for Non-Contiguous Area Exception. West Coachella Enterprise Zone' Enterprise Zone Map F-.-._-.... Juno 2, 2010 ' 1 • r ..... A FLIMMM­ NA. .'- v 47 Iw rcw e.m aonY ... ' a " T••I eC memx CW ����onm Ha snnnYn gpp wt. PNm Spings �IntluetrdlAree {d�vR' ' W�jor - yy ^^^^FreevaY I k51�" Y • `IA goad St,W .. _` Y„ ..... ...� Sr eN RED a q«I •r1F "Me1ME C v«I zt••I,y nm.bn.ono.•wC 1 ,C�: •n Chko IASSim'J n• e........ N.�, . ��.An.......AP. ..�. V . , is deA' IAdnY Yao�aSse 'r..:...i._. Ij! l •r Ci SF F.ATTACHMFN'I' 6 WFS'f COACHELLA EN TERPRISE 26NE MAP ei Bonus Point Analysis Section Oveiview: During the rating and rankirry Tv gtia�ifit�, der Urikerlon 3,khe process, the Department will give special appIiGpMil�ij iy r tionmustdbcurrNdn# that it has lY�k� tklotk+ $ p consideration, bonus paints, or both, up to a affecting Ign3T#etvtt ectirYorhle maximum of 100 points, to applications that clevgl6pment,ineludingbutnot demonstrate the greatest need and meet at least two 1►mltad tt1; Mooilge depletlon, plant a/'the fallow ingcriteria: closure,indu ratesscrn.nataPal Criterion 1 - Poverty Levels dlaaster(ina '52 geesdeclareda Criterion 2 - Unemployment Rates disaster by the P $0'gntofthe United Criterion 3 - Unique Distress f actor s Stetex+Nlthln the at seven yearO qr a rnilltR„ry,"�a�,q��lp�tlre, i Mr. Warren Jensen with CSU Center for Economic Development (our expert) has estimated that 60-70 points should be garnered as a result of Criteria 1 and 2; it is likely that a significant number of additional --- - points 25-35 could be awarded under Criteria 3. It is apparent that the applicant can demonstrate two „„, „,„, significant and "Unique Distress Factors" including: - �• • • Presidential Declared Disaster (1884-DR) March 8, .. 2010. • Documented gang activity that is perhaps the ..m.-. highest in the state. -�-• � �^�• City staff has already provided enough compelling data to make a strong argument for Criteria 3. --•- -••-•W •-••-•• -•-• • •- Eligibility Petition -.-..- As stated on page four of this report the applicant will see AT rACHMenr C. - FEMA DISASTER DECLARA'I"ION not require special consideration to achieve an eligible area. "After on in-depth evaluation of the census tracts that comprise Cathedral City, Desert Hot Springs and Palm Springs a conceptual eligible area was identified and map. Consequently, the proposed zone will not require special consideration under "Eligibility Option 2 - Petition for Distress Area." 10 Competitive Analysis (issues/concerns) Several questions have arisen concerning the application and proposed zone including: 1. Does the unsuccessful previous attempts in anyway prejudice a new application submittal? No, each round is a "new day"according to HCO staff conducting the Enterprise Zone Workshops in Sacramento and L.A.Z. Previous attempts have no influence on the scoring of EZ's. 2. How would the department view a proposed enterprise zone so closely located to the Coachella Valley Enterprise Zone? Each application is viewed independently. The department will not make a determination based upon location. The proposed zone will not be negatively affected even though it is in dose proximity to the Coachella Valley Zone 3; for example, L.A, and Imperial County zones. 3. Considering the California budget crisis, what is the future of the California Enterprise Zone Program? No one can speak with any authority on what the future of the Enterprise Zone Program may be. The program is regularly challenged by those who are unsure of the effectiveness of the program. However, those at the state that run the program are reasonably sure that enough support exists for the program that it will not be discontinued by legislators. The communities which have been designated zones are fiercely defensive of their benefits and would not readily give them up. In fact, there are many instances where the enterprise zone designation was the deciding factor for companies to stay and/or expand their presence in California rather than to accept superior incentives offered by other states or even international locations. 4. Do we need to garner 100% of the Bonus Points to be competitive? C2 No, according to John Nunn, EZ Program Manager a statement he may have made at a workshop was mistakenly taken out of context, "a community needs to receive the additional bonus points to remain competitive." I spoke with John on 612110 0, reuardinu this issue and he assured me that he did not mean 100%of the bonus points; rather he was trying to emphasize the paint that applicants need to apply for the bonus paints to be competitive. 5. Are the privately held companies located on Indian lands that employ local individuals and pay state income tax eligible for EZ benefits? of Request for clarification submitted to the state on 6103110; pending answer. J O d> U Clarification requested by Hal Joseph to John Nunn, Program Manager at LA workshop, reconfirmed by Greg O'Sullivan at the Sacramento Workshop 5/2010. Clarification requested by Greg O'Sullivan at the Sacramento Workshop 5/2010. 0 q ! lq "Go" vs. "No Go" Decision ...........--------------------------_..,....... The final "Go" vs. "No Go" decision is difficult for every community. The financial commitment to e preparing and operating a zone successfully should .." be a major concern. The gold standard for �-.w:"w=�--""r�"�°- ��• -� - pu �� operating a zone was set by the Coachella Valley rwr:ue,i.•wr,.a:.;:...m:W.now.ru,oMnc r. Zone (CVEZA) in 2006. The communities of Coachella, Indio, and Riverside County committed $300,000 (cash) annually to operate the zone. A LonMw ,w'"arrr'+mrc w.w.....r............ large portion of the CVEZ revenue committed is •,,,�„,M..,��,.,, ,�ww�,:�,"... programmed for marketing and outreach. I Resulting in over 2800 vouchers (Hiring Tax Credits) issued annually; one of the highest + performing zones in the state. Consistently �. receiving high marks by the state. The state EZ Program staff depends on stro ng — — performing zones that make these types of """""""— — commitments. While it may not show-up formally in the scoring matrix, the $10.00/voucher remittance fee collected by the state EZ Program is an important consideration. For example, in CVEZ the 2800 vouchers issue annually provides $28,000 to help the state run the program. The last thing the program staff wants is a zone designated in an area that is not taking advantage of the state benefits. It is certainly a different time than that of the 2006 designation process. Cities across California are in financial trouble. Redevelopment is no longer the resource for business development that it once was. However, it is our opinion ED ONCALL that to be competitive in.this 2010 Round the WCVEZ will require a cash commitment_ofminimally S50,000- $75,000 for each jurisdiction towards the annual operating budget. Additionally, we recommend that the vouchering fees be set at $60.00-$70,000 per voucher. Assuming that the WCVEZ can voucher 2000.3000 employees each year this would generate $100,000-$150,000^ towards the annual operating budget. Sample Revenue Calculation Cathedral City $50,000 Desert Hot Springs $50,000 Palm Springs $50,000 Vouchering Revenue"(2000@$50.00) $100,000 . �11 � r¢I#lil+ll+iiiliiiii{ i > &i " Estimate includes$10.00/voucher deducted and sent to the state of California EZ Program. 12 Competition Early in the process the state enterprise zone staff estimated that more than 15 jurisdictions would seek two open designations. There was also an expectation that the city of Fremont would apply given that they had just lost Nummi an automobile manufacturer. However, a more recent conversation with John Nunn, Program Director revealed only five communities/zones are in contact with the state including: • Sana Clarita/LA • Palmdale/Lancaster Z) Victorville/Apple Valley Z Anaheim :) West Coachella Valley Enterprise Zone Further. John confirmed that HCD will designate 3 zones in 2010, as opposed to the two mentioned in the workshop. The Palmdale zone does not expire until the next round. However, to hedge their bets they are applying this round. Consequently, HCD is opening up an additional designation. By statute the state is only allowed 42 zones and has 1 remaining round left of designations. The next round in two years will only have two or less designations available. Consequently, as a matter of odds applicants competing in this round may have a better chance. Especially, since those communities that do not receive designation in the 2010 round are certain to reapply in the last available opportunity for designation. Value to the Community/Business Sector Qualified employee's hired (referred to as vouchered) under the enterprise zone program can generate up to $12,500 in State Tax Credits in the first year and up to $37,500 within five years for participating companies. Assuming that the proposed West Coachella Enterprise �W Zone provides local companies with 2000 vouchered employees; we can assume an economic impact of $25,000,000 in tax credits for the first year alone. The enterprise zone program is the only statewide incentive left to retain, expand or attract companies to California. It is u unlikely the California Enterprise Zone Association, local/state policy makers and the thousands of businesses that depend on the enterprise zone will allow it to be discontinued. n G� 1,tJ tlJ IG 0.+ tJ l� 0] 13 Attachments 14 r M Tract 448':04 - �ru6lmlim' � y I ' I Cathedral City """W,. "'0�6gyylfNl v R I " Pahu Springs West Coachella Valley Enterprise Zone 1 Eligible Area Proposal , May 25, 2010 0 1 2 3 4 $ Miles � a l I I Proposed Eligible Area p 8 Eligible Area Tracts/Block Groups City Boundaries i Eligibility and Bonus Points f Not Evaluated Not hligible Eligible, 0 bonus points Eligible, 50 bonus points Eligible, 100 bonus points 4 West Coachella Enterprise Zone Enterprise Zone Map : .� . .. June 2, 2010 ■ Note: Need Zoning ' for NW Palm Springs . . . . . L . . . . . . . . . . . ■ Warren .4 E ■ ♦ - _ _ -= _ ■ f♦ ■ 4 . . .. Cathedral City 4 ■ .� E:■ Desert Hot Springs : Palm Springs . . . . Industrial_Area Eligible Area Freeway t Major Road ! ! Street -- Railroads Center For Economic Development € 04 — Commercial Zoning Cafrfornia State University Chico t3 Chico, CA 95929-0765 Industrial Zoning 536-8984598 kill. t i FEMA:Designated Counties for Califomia Severe Winter Storms,Flooding,and Debris and Mud Flows a MAP i.. ;zff'z? iYVnine " ":"wbaat FiNa „ "I„ d'h W'' ,:i 'ixpYt d ''rsppYjV! a FEHp for V'tiu Disaster mrermgnen Designated Counties for California Severe Winter Storms, Flooding, and Debris and Mud Flows Declared Disasters& Emargencles Disaster Summary For FEMA-1884-DR,California Declared Disasters by Declaration Data: March 8, 2010 Year or State 'I Incident"type:Severe Winter Storms, Flooding, and Debris and Mud Flows Current FEMA News Incident Perlodl January 17 to February 6,2010 Individual Assistance Individual Assistance Public Assistance (Assistance to individuals and households): None.. Public Anslgtance j (Assistance to State and locai governments and certain private nonprofit organizations for emergency work and the repair or replacement of disaster-damaged facilities): Calaveras, Imperial, Los Angeles,:Riverside, San 8amardlno, and Siskiyou Counties.Direct Federal assistance is::authorjzed. Hazard Mltlgation Grant Program. - (Assistance to State and loge/govefnmert8 and certain private nonprofit organizations for actions taken to prevent or mduca long term risk to life and property from natural hazards): All counties in the State of California are eligible to apply for assistance under the Hazard Mitigation Grant Program. Othart Additional designations may be made at a later date after further evaluation. j More information about 9aliforniq.5evere Winter Storms, Floodina..and.Dt,(+ipg„ppg„yjyg.;jHjply$!.::. Lee!McW'rrN:Selw/er �-M1rev-2ar0 009757 Home Contact Uk Privacy Policy Imporlont Notices FOIA No I°'F::AR Act Deta USA.go, (NIS FEMA 500 C Street SW,Weshin0lrrn,p.C.20172 Useeter Assistance'. (800)621-FEMA http://www.fema.gov/news/eventgountles.fema?ld=1244B(6/4/2010 12:45:23 PM] .. Proposal West Coachella Valley Enterprise Zone Application 2010 i +x .. .d r+tl9W S 1 AS xl y Y 1 yr' a' I (i I h , I t. r tl v,f r Greg O'Sullivan - Economic Development"ONCALL" 21880 Parkway Drive Red Bluff, CA 96080 (530) 941-2660 g-re-gp-@-e;ioncall.com Wednesday, May 12, 2010 West Coachella Valley Enterprise Zone Jan Davison Cathedral City Redevelopment Agency 68700 Avenida Lalo Guerrero Cathedral City, CA 92234 Dear Jan, Please consider this proposal to prepare a multijurisdictional application for a California Enterprise Zone Designation under the 2010 round. As per our discussions, the field is crowded and the competition is keen. The state estimates that 15 applications will be filed for three designations. However, I believe that a strong and compelling application can be submitted on behalf of the West Coachella Valley communities. Under these circumstances I do realize that a decision to purse a designation is an enormous commitment of faith and time by both the jurisdiction and the cbnsultant(s). While we cannot guarantee a designation, we can guarantee that the West Coachella Valley Enterprise Zone application will receive our undivided attention as did the successful Brawley/Imperial, Coachella Valley, and Siskiyou County applications. We look forward to the opportunity to work on this important assignment. Should you have any questions or would like to discuss this proposal in further detail please feel free to contact me at: (530) 941-2660. Regards, Gregory P. O'Sullivan 1 � Proposal Project: Multijurisdictional California Enterprise Zone Application 2010 (limited to 3 jurisdictions) Fee's: $150,000 Fixed Fee (Exclusive Client) $5000 Not to Exceed (Reimbursable Travel Related Expenses) TOTAL $155,000 General Scope of Work Contract Phase Rate/Cost Work_Products/Deliverable • Eligibility Determination • Conceptual Boundary I. Retainer(30 day) • Competitive Analysis (issues/concerns) May 17, 2010-June 15, 2010 $15,000 (not including • Bonus Paint reimbursable travel) + Final "Go vs No Go"decision with client • Eligibility Petitions (if required) • submission of proposed boundaries Prepare and complete application to be II. Prepare/submit multijurisdictional submitted to the Department of Mousing application $135,0000 and Community Development including June 15, 2010-September 14, Exhibits 1 - 49; NOTE: excludes exhibits 2010 11a,11 b,12,13 (CEQp documentation)and 14 III. Technical Review September 30, 2010-October 29, $0.0 Response to technical review 2010 Terms/Timelines Commencement: May 17, 2010 Length of Agreement: May 17, 2010 - October 29, 2010 Other Considerations: Consultant will entertain extending a "First Right of Refusal" (FRR) to the client for 2012 EZ Round. y 20 BIOGRAPHICAL SKETCH ECONOMIC(♦ Economic Development "ONCALL" (ED "ONCALL") started in 1996. It DEvELOPMENTEN is a sole proprietorship specializing in economic development, "ON CALL'°IIIIIIIIII1IIIII capacity building and organizational management. The company has experienced steady growth since it was started and is poised for continued growth In the next few years. Some of the accomplishments include approximately $27 million in grant awards for our clients. In 2004, 2005 and 2006 our clients (Imperial County, CA, Coachella Valley, CA and Siskiyou County, CA) were the recipients of State Enterprise Zone designation. Greg is an aggressive marketing and sales professional; as demonstrated with his attraction and recruitment work with the Upstate California Economic Development Council, TeamCalifornia Marketing Council and more than 50 different communities and economic development corporations in Arizona, California and Oregon. R6sum6 of Gregory P, O'Sullivan Skills/Experience Business Recruitment - Advertising, Marketing, Sales, Incentive Negotiation, Deal Structuring and Closing R Advanced Written and Oral Communications and Presentation J'!' Grant Writing ($37,000,000) 1� Consensus Building & Conflict Management R Economic Research Ft Assessment k Business Planning &Management k Strategic Planning R Real Estate Development (including Brownfield) Employment History Economic Deve,(opmerrt "ON CALL" 5/96 - Present Owner/Consultant • Contract staffing to Upstate California EDC (20 County consortium). • Provide industrial marketing/recruitment assistance for client communities. • Provide community research assessment/target marketing services. • Coordinate special incentive packages. • Conduct community/organizational consensus building workshops. • Develop CDBG Revolving Loan Fund programs. • Prepare professional written/oral proposals and presentations. • Prepare-federal/state grants totaling awards of over $26,000,000. • Preparation of three successful Enterprise Zone applications. 2