2013-130 Economic Development Incentives & Programs ORDINANCE NO. 2013-130
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF MENIFEE ADDING A NEW TITLE 16 TO
THE MENIFEE MUNICIPAL CODE ENACTING A
COMPREHENSIVE SET OF ECONOMIC
DEVELOPMENT INCENTIVES AND PROGRAMS
TO PROMOTE THE ECONOMIC DEVELOPMENT
OF MENIFEE TO PROMOTE THE HEALTH,
SAFETY AND GENERAL WELFARE OF THE CITY
OF MENIFEE
WHEREAS, the City of Menifee ("City") was incorporated on October 1,
2008, as a general law city and encompasses an area of approximately 50
square miles with a population of approximately 82,000; and
WHEREAS, as a general law city, the City has broad police powers to
promote the health safety and general welfare of the City of Menifee; and
WHEREAS, historically economic development has been the focus of
municipal and county redevelopment agencies; and
WHEREAS, the California State Legislature adopted ABx126 which
dissolved all redevelopment agencies statewide on February 1, 2012 so that no
redevelopment activities may be initiated by the City under current law; and
WHEREAS, as with all California cities, economic development is critical
to the maintenance of the quality of life enjoyed by the residents of Menifee; and
WHEREAS, the City has experienced slower than anticipated economic
development and growth in recent years due to difficult economic times statewide
and nationally; and
WHEREAS, national unemployment rates are improving slowly, in
California and its sub regions job recovery is still a major problem. The January
2013 unemployment rate in California was 9.7%, while the national
unemployment rate was 7.8%, and the unemployment rate in Riverside County
was 11.1%. Job retention and creation programs should be a major goal of any
local economic development program and certainly an emphasis for newly
incorporated communities that have challenging conditions like Menifee; and
WHEREAS, without economic development, under current economic
circumstances, the economic health and general welfare of Menifee and its
residents will deteriorate. Therefore, the City desires to implement additional
economic development incentive programs to encourage private investment and
job creation for local residents. The programs will establish temporary incentives
for businesses considering relocating or expanding in Menifee on a case by case
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basis. The types of businesses that qualify will include significant sales tax
producers, large employers, large property tax generators, and large transient
occupancy tax generators. The level of incentive will be predicated on the size of
the investment or improvement being made and the related benefits to the City.
Staff will make recommendations to City Council on the recipients of the program
and the proposed incentive associated with the individual request. The City
Council will ultimately consider the request. As outlined in the staff report to this
Ordinance, the City currently has several incentive programs for new and existing
business, the proposed program will supplement the existing programs; and
NOW, THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE
CITY OF MENIFEE CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1: CODE AMENDED. The Menifee Municipal Code is hereby
amended by adding a new Title 16 entitled "Economic Development" to read in
its entirety as follows:
"TITLE 16: ECONOMIC DEVELOPMENT
Chapter 1
16.01 Economic Incentive Programs
16.02 The Application Process
16.03 The Approval Process
CHAPTER 16.01: ECONOMIC INCENTIVE PROGRAMS
Sections
16.01.010 Purpose
16.01.020 Incentives Available
16.01.030 Economic Incentive Programs
16.01.040 Powers Exercised
§ 16.01.010 Purpose.
In the face of the State's decision to eliminate redevelopment, the City of
Menifee must design and implement a local program within the authority of its
powers under the State law to accomplish the purposes previously served by
redevelopment programs. It is therefore the purpose of this Chapter to
implement a program, within the authority of the City under the powers
granted to the City by law, that will provide economic incentives to businesses
and property owners to encourage commercial and industrial development on
vacant land that is currently zoned for such uses in order to create an
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inventory of commercial and industrial site. It is also the purpose of this
ordinance to encourage retention and expansion of businesses in the city that
are already established, as well as to encourage other as yet unrecognized
opportunities for economic development as they arise.
§ 16.01.020 Incentives Available. To accomplish the purposes provided
herein, the City of Menifee and its associated and subordinated entities shall
have the power to carry out policies, plans and programs, to enact measures,
to enter into agreements, and to loan, grant, fund, or finance projects which
will provide public benefit and protect the public health, safety and welfare of
the community. These programs may be carried out singly or in combination
in a manner to promote the objectives of this Chapter, and may include the
following general types of measures:
A. Public-Private Partnerships. Agreements with private
persons or entities where by the sharing of public resources by the
public agency, the reduction of regulatory burdens, asset
monetization, fee producing infrastructure, alternative procurement,
concession agreements, leasing arrangements, securitization of
obligations, or other measures, the risks to the private person or
entity can be reduced to a level whereby the development entity
and investors can earn a commercially reasonable return on
investment and will accordingly proceed with the project;
B. Emerging Statutory Opportunities. Special legislative
programs exist, and are likely to be enhanced as a result of the
elimination of redevelopment, the State's most important and best
funded economic development strategy. Under this Chapter, such
programs should be exploited to the fullest extent of the law. Such
programs may include Design Build Contracts; Tax Credits;
Infrastructure Finance Districts; Environmental Sustainability
Programs; Enterprise Development Zones; Foreign Trade Zones;
and similar legislation. Any legal structure existing currently, or
enacted hereafter which permits the City legally to carry out these
purposes is permitted hereunder;
C. Public Financing. All public financing mechanisms which
offer the opportunity of lower financing costs, if permitted by law,
may be utilized including lease-revenue bonds, revenue bonds
relating to the EB-5 Program, industrial development bonds, private
activity bonds, certificates of participation, letter of credit
enhancement and similar measures;
D. Special Districts. The financing of both the development of
infrastructure and services through community service districts,
landscape and lighting districts, assessment districts, school facility
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improvement bonds, and similar special district financing
mechanisms permitted by law;
E. Public Property. The use of ground leases or sale of publicly
owned land, including at less than fair market value as provided
herein, contractual development agreements in accordance with
law, lease-lease back financing, and design-build contracts to
acquire property for the foregoing purposes;
F. Tax Rebate Agreements. The use of tax rebate or similar
agreements permitted by law including for sales taxes, transient
occupancy taxes, utility taxes or other taxes shared with the
generator, and rebates or waivers of franchise fees, business
license fees, development impact fees, or other revenue sources
but any such tax may only be imposed in accordance with law;
G. Regulatory Relief. The modification or suspension of zoning
and other land use restrictions affecting the feasibility of
development, density bonuses, expedited processing of
entitlements, the establishment of clear and consistent regulatory
regimes, creating procedures to quickly resolve disputes, clear
definition of scope of environmental review and use of scoping
processes;
H. Other Agencies. Use of financial assistance provided by
other local public agencies and by State and Federal programs to
assist projects, consistent with the requirements of such programs;
and
I. Other Programs. In addition to the foregoing, the City may
utilize any other program and provide any other form of direct or
indirect assistance as the same may currently or in the future exist
which would further permit the accomplishment of the purposes
provided herein, to the full extent permitted by the law. The
enumeration of certain programs herein does not preclude the use
of any other program which might accomplish the purposes of this
Chapter.
§ 16.01.030 Economic Development Incentive Programs. The City may
plan and carry out an Economic Development Incentive Program for the
improvement, rehabilitation, and economic development of property through
public-private partnerships, or utilizing any other method provided in Section
116.01.020. Any Economic Development Incentive Program must identify,
explain and analyze
A. The project to be assisted,
B. The location of the project
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C. The cost of the project
D. The proposed project financing
E. The assistance requested
F. How the assistance will be used
G. The benefits to the community or City from the project,
including jobs, financial return to the City, community
improvements or amenities or other benefits,
H. The anticipated development schedule
I. Performance criteria and assurances
J. The public purpose to be accomplished by the Project.
§ 16.01.040 Powers Exercised. To carry out the Economic Development
Incentive Program and promote the projects developed under this Chapter,
the City may exercise any power or authority permitted under State law, for
the public purposes provided hereunder, and may do the following:
A.Receipt of Financial Assistance. The City may seek or accept
financial or any other assistance from public or private sources,
including from the state or federal government, for the City's
activities, powers, and duties hereunder.
B. Acquisition of Property. The City may purchase, lease,
obtain option upon, acquire by gift, grant, bequest, devise, or
otherwise, any real or personal property, any interest in property,
and any improvements on it, including repurchase of developed
property previously owned by the City.
C. Management of Property. The City may rent, maintain,
manage, operate, repair and clear real property and may insure or
provide for the insurance of any operations of the City against risks
or hazards.
D. CC&Rs. The City may provide for the retention of controls
and the establishment of any restrictions or covenants running with
the land for such periods of time and under such conditions as shall
be necessary to effectuate the purposes hereof.
E. Non-Discrimination. The City shall include in all deeds,
leases or contracts for sale, lease, sublease or transfer of land,
non-discrimination clauses.
F. Issuance of Bonds. The City may issue its bonds or other
financial instruments permitted by law and expend the proceeds
from their sale to carry out the purposes hereof. The bonds and
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obligations issued by the City also may be purchased, invested in,
or used for security.
G. Site Development. The City may clear or move buildings,
structures or improvements from real property; may grade any site;
and may develop as a building site any property owned by it. It
may cause or make provisions with other agencies for the
installation of streets, utilities, parks and other public improvements.
H. Property Disposition. The City may sell, lease, exchange,
subdivide, transfer, assign, pledge, encumber or otherwise dispose
of any real or personal property or any interest in property acquired
by it.
I. Remediation. The City may investigate and evaluate the
condition of the property, prepare remediation plans and obtain
approval thereof from regulatory agencies, and undertake
remediation in accordance with such plans.
J. Relocation. The City may provide (i) relocation assistance to
persons displaced by governmental action, and (ii) aid and
assistance to property owners in connection with rehabilitation
loans and grants.
K. Cooperation. The City shall cooperate with other public
agencies in the formulating and administration of its Economic
Development Incentive Programs.. The planning commissions and
the legislative bodies of the City and the cooperating public
agencies may hold joint hearings and meetings regarding the
projects assisted hereunder.
Any powers exercised hereunder to carryout the purposes of this Chapter
must be carried out in accordance with State and Federal law. Nothing herein
shall permit the waiver of any applicable legal procedure or process.
CHAPTER 16.02: THE APPLICATION PROCESS
Sections
§ 16.02.010 Conditions to Qualify for Incentives
§ 16.02.020 Information to be Provided by Applicants
§ 16.02.010 Conditions to Qualify for Incentives. An Economic
Development Incentive Program may only be approved for projects which,
due to the nature of the project or scale of the project, will provide significant
long-term benefits to the public generally. Accordingly, any person seeking
approval of an Economic Development Incentive Program must meet one or
more of the following conditions:
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A. Alleviation of Blighting Conditions. The development of the
Project will alleviate a persistent condition of blight which has
previously discouraged the development of the property, such as
demolition and removal of dilapidated substandard buildings and
structures; geotechnical, flooding or other conditions of topography
or soils which inhibit development of the property; or the removal or
remediation of hazardous substances or environmental
contamination of soils, where the cost of such blighting conditions
(not including the building construction costs) impair the land value
of the property.
B. Need for Area-Wide Infrastructure. The development of the
Project will require the construction of infrastructure requiring
capacity which exceed the needs of the Project, and where the
cost of the infrastructure, in aggregate, may make the Project
economically unfeasible.
C. Production of Jobs. The development of the Project will
result in (i) the establishment of a new business or businesses on
the property producing a significant number of new and additional
jobs, or (ii) cause the expansion of an existing business adding new
long-term jobs, or (iii) preserve an existing business which will
retain long-term jobs.
D. Fiscal Impact on City. The development of the Project will
create significant new on-going revenues to the City, considering all
revenue sources.
E. Special Amenities. The development of the Project will
produce community amenities either due to the construction of
needed public facilities, or due to the fact that the Project itself
provides special private facilities available to the public which do
not otherwise exist in the community and which would be significant
to the community character and quality of life of those who work or
live in the community.
The Project must meet one or more of the above conditions and the City
Council must find that the Project taken as a whole is beneficial to the
community.
§ 16.02.020 Information to be Provided by Applicants. Applicant will
prepare such initial studies, reports, and analysis as shall be necessary to
permit the City to determine the feasibility of the development. During the
application period, the applicant shall submit to the City the following:
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A. Principals. Full disclosure of the applicant's principals,
partners, joint venturers, negotiators, consultants, professional
employees, or other associates of the applicant who are
participants or principals of the development, and all other relevant
information concerning the above.
B. Financial Capability. Statement of financial condition in
sufficient detail to demonstrate the applicant's financial capabilities,
those of its principals, partners, joint ventures, and those of its
prospective developers to satisfy the commitments necessitated by
the development, including all information necessary to
demonstrate the availability of construction and permanent
financing. To the extent the applicant wants such financial
statements to remain confidential, they shall be supplied to and
maintained by the City in confidence to the extent permitted by law.
C. Title and Property Information. All title information
concerning the property, all environmental information, including
Phase I investigations, a description of existing structures and site
conditions, anticipated demolition, grading and remediation costs.
D. Project Design and Costs. All preliminary information related
to the design of the development to meet the City's reasonable
requirements. This information shall be sufficient to allow the City to
evaluate grading, site configuration, development constraints, traffic
patterns, site circulation and parking, landscaping, architectural
design and similar issues. All projected costs for design and
construction of the Project shall be included.
E. Proforma. The Project proforma shall be included identifying
the estimated amount of public money to fund the development and
how it will be used and the anticipated economic return of
development. The applicant/developer shall provide a analysis
acceptable to the city of how the development of the Project shall
satisfy the requirements of this Chapter and why any public subsidy
to the Project provided hereunder is warranted and provides a
public benefit. Any potential alternative methods of financing will be
identified with the reasons why the City's assistance necessary.
F. Tenants. All information necessary to show tenant
availability and interest, the nature of the proposed tenants, and the
financial strength and resources of the tenants. To the extent the
tenant wants such information to remain confidential, they shall be
supplied to the City only if it is reasonably likely that confidentiality
can be maintained under the Public Records Act.
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CHAPTER 16.03: THE APPROVAL PROCESS
Sections
§ 16.03.010 Review
§ 16.03.020 Required Findings
§ 16.03.030 Contents of Incentive Agreement
§ 16.03.010 Review.
A. Investigation. During the Economic Development Incentive
Program application period, the City shall investigate the applicant and
request reasonable additional information and data from the applicant
necessary for review and evaluation of the proposed development.
Applicants are required to provide such additional information or data as
reasonably requested in a timely manner. If confidential information is
provided regarding the applicant's business practices, it shall remain
confidential to the extent permissible by law.
B. Discretionary Awards. The granting of Economic
Development Incentives purely discretionary by City and no applicant shall
have any entitlement or vested right thereto. Accordingly, it is the
responsibility of the applicant to provide a high quality project, to the
highest degree possible, to meet the objectives of this Chapter. Only
information available to the public may be used to justify any decision
hereunder.
§ 16.03.020 Required Findings. The City Council may approve the
Economic Development Incentive Program if it finds as follows:
A. The Project will meet the conditions of Section 16.02.010 by doing
one or more of the following:
1.. Alleviating persist conditions of blight; or
2. Provide significant area-wide infrastructure; or
3. Meet the job creation objectives; or
4. Create a significant positive fiscal impact on City; or
5. If no one of these conditions is fully met, but in combination,
the overall objectives are met.
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B. The Project will produce public or private facilities for the
community and which would be significant to the community character and
quality of life.
C. The Project has received all other discretionary entitlements
required under the Zoning Ordinance, including any environmental review
required by the California Environmental Quality Act.
D. The Economic Incentive Agreement contains provisions to
assure the continued operation for an identified amount of time consistent
with this Title and providing for the enforcement of the covenants
contained therein by City.
§ 16.03.030 Contents of Incentive Agreement. If the Economic
Development Incentive program is approved, an Economic Development
Incentive Agreement shall be entered into which includes the elements
contained in Section 16.01.030. The Agreement must describe specifically
the Project and the exact assistance provided. It must indentify how the
project is anticipated to meet the criteria in Section 16.02.01. It must also
provide for periodic review of performance and provide remedies for violations
of the covenants and conditions. The Agreement shall permit transfer subject
to the City's reasonable approval and provide for City approval of any tenants
necessary to achieve the purpose of the Project. The Agreement shall show
the public purposes of the Project will be achieved."
SECTION 3. SEVERABILITY. If any section, subsection, paragraph, sentence,
clause or phrase of this ordinance is for any reason held to be invalid or
unconstitutional, such invalidity or unconstitutionality shall not affect the validity
or constitutionality of the remaining portions of this ordinance, it being expressly
declared that this ordinance and each section, subsection, paragraph, sentence,
clause and phrase thereof would have been adopted, irrespective of the fact that
one or more other section, subsection, paragraph, sentence, clause or phrase be
declared invalid or unconstitutional.
SECTION 4. LIBERAL CONSTRUCTION AND PUBLIC PURPOSE. This
Section is to be interpreted liberally and applied consistent with the interpretation
and application of Article XIII, Section 32 of the California Constitution and
Revenue and Tax Code Section 6931.
SECTION 5. EFFECTIVE DATE. The City Clerk shall certify to the passage and
adoption of this ordinance, and shall make a minute of the passage and adoption
thereof in the records of and the proceedings of the City Council at which the
same is passed and adopted. This ordinance shall be in full force and effect
thirty (30) days after its final passage and adoption, and within fifteen (15) days
after its final passage, the City Clerk shall cause it to be published in a
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newspaper of general circulation and shall post the same at the City Hall, the
Civic Center building and the United States Post Office, Menifee Branch.
PASSED, APPROVED, AND ADOPTED at a regula meeting of the City
Council of the City of Menifee, California, on this 21St d o ust, 2013.
Scott A. Mann, Mayor
APPROVED AS TO FORM
AND LEGAL CONTENT:
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Aleshire & Wynder, LLP
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, KATHY BENNETT, City Clerk of the City of Menifee, do hereby attest to and
certify the attached Ordinance No. 2013-130 to be the original ordinance adopted
by the City Council of the City of Menifee on August 21, 2013 and that said
ordinance was published in accordance with the law.
Kathy Bennett, City Clerk
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NIF
Scott A.Mann
Mayor
Wallace W.Edgerton STATE OF CALIFORNIA )
Deputy Mayor COUNTY OF RIVERSIDE ) ss
John V.Denver CITY OF MENIFEE )
Councilmember I, Kathy Bennett, City Clerk of the City of Menifee, do hereby certify that the
Thomas Fuhrman foregoing Ordinance No. 2013-130 was duly adopted by the City Council of the
Councilmember City of Menifee at a meeting thereof held on the 21s' day of August 2013 by the
Greg August following vote:
Councilmember
Ayes: August, Denver, Edgerton, Mann
Noes: Fuhrman
Absent: None
Abstain: None
Kathy Bennett, City Clerk
29714 Haun Road
Menifee,CA 92586
Phone 951.672.6777
Fax 951.6793843
www.cityofinenifee.us