COMPLETED BOARD ORDER�"���23
Before the Board of Supervisors in and for the
County of Monterey, State of California
Adopt Resolution to support the State of California
Enterprise Zone Program.
Upon motion of Supervisor Potter, seconded by Supervisor Armenta, and carried by those
members present, effective May 11, 2009, the Board hereby:
Adopted Resolution No. 10-119 to support the State of California Enterprise Zone Program.
PASSED AND ADOPTED this l ltn day of May, 2010, by the following vote, to wit:
AYES: Supervisors Armenta, Calcagno, Salinas, Potter
NOES: None
ABSENT: Supervisor Parker
I, Gail T. Borkowski, Clerk of the Board of Supervisors of the County of Monterey, State of California, hereby
certify that the foregoing is a true copy of an original order of said Board of Supervisors duly made and entered in
the minutes thereof of Minute Book 75 for the meeting on May 11, 2010.
Dated: May 13, 2010 Gail T. Borkowski, Clerk of the Board of Supervisors
County of Monterey, State of California
By R i-
Deputy
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COMPLETED RESOLUTION��"���23
Before the Board of Supervisors in and for the
County of Monterey, State of California
Resolution No: 10 119
Adopt Resolution to support the State of
California Enterprise Zone Program.
WHEREAS, the origins of California's Enterprise Zone came through enactment of two
separate programs in 1984 the Enterprise Zone Act and the Employment and Economic
Incentive Act; and
WHEREAS, the Enterprise Zone provides a geographically-targeted economic development tool
for poor and blighted communities by creating incentives for businesses to hire new employees
and purchase equipment for their businesses; and
WHEREAS, the County and the Cities of Salinas, King City, Greenfield, Gonzales and Soledad,
jointly participated in the preparation of an application to designate portions of those
jurisdictions as an Enterprise Zone; and
WHEREAS, on January 30, 2009, the Salinas Valley Enterprise Zone received its final
designation as an Enterprise Zone from the California Department of Housing and Community
Development; and
WHEREAS, a Memorandum of Understanding MOU") between the County of Monterey and
the Cities of Salinas, King City, Greenfield, Gonzales and Soledad has established the Salinas
Valley Enterprise Zone Advisory Board to review ongoing Zone program activities and make
policy recommendations to the Enterprise Zone Manager; and
WHEREAS, the State of California and the Salinas Valley are experiencing their worst
economic crisis since the Great Depression; and
WHEREAS, the County, cities and communities of the Salinas Valley experience high seasonal
unemployment each year; and
WHEREAS, the economic crisis has exacerbated this situation, resulting in unemployment rates
for February 2010, between 22% and 40.4% for the County, cities and communities of Salinas
Valley; and
WHEREAS, these high unemployment rates serve to increase poverty, crime, and foreclosures
of homes, and lead to the disruption of public services to those in the community most in need of
assistance; and
WHEREAS, the Salinas Valley Enterprise Zone has worked to combat these social problems by
using the Enterprise Zone's incentives to encourage new businesses to locate within the
Enterprise Zone and existing businesses to expand their operations; and
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COMPLETED RESOLUTION��"���23
WHEREAS, the Salinas Valley Enterprise Zone has worked with local organizations and
programs, including the Monterey County OneStop Career Center and City of Salinas Operation
Ceasefire, in an effort to encourage businesses to hire the most at-risk individuals; and
WHEREAS, as of April 1, 2010, the Salinas Valley Enterprise Zone has issued a total of 560
Hiring Credit Vouchers to 118 local businesses, and
WHEREAS, the Enterprise Zone has served to attract additional businesses, including electric
vehicle manufacturer Green Vehicles Inc., to the Salinas Valley, and has helped many others stay
in business or expand their operations; and
WHEREAS, companies moving to or remaining in the Salinas Valley have stated specifically
that the Enterprise Zone was a key component in their decisions to locate or remain within the
Salinas Valley and California; and
WHEREAS, the jurisdictions of the Salinas Valley acknowledge that the attraction of new
businesses and the retention and expansion of existing businesses is the most effective way of
guaranteeing the long-term well-being of the County, cities and communities of the Salinas
Valley; and
WHEREAS, the jurisdictions within the Salinas Valley have come to recognize the Enterprise
Zone as the most impactful state incentive to create new jobs, grow existing businesses, and
compete with other states to attract outside investment to California; and
NOW, THEREFORE, BE IT RESOLVED, that the County believes that the Enterprise Zone
has had a significant positive effect on business activity and economic growth in the Salinas
Valley; and
BE IT FURTHER RESOLVED, that the County of Monterey, Board of Supervisors, believes
that eliminating the most critical business assistance program in the state would be a huge
setback to improving California's business climate and its struggles to reach an economic
recovery, and urges the State of California to support the Enterprise Zone program.
PASSED AND ADOPTED on this 11`x` day of May, 2010, upon motion of Supervisor Potter,
seconded by Supervisor Armenta, by the following vote, to-wit:
AYES: Supervisors Armenta, Calcagno, Salinas, Potter
NOES: None
ABSENT: Supervisor Parker
I, Gail T. Borkowski, Clerk of the Board of Supervisors of the County of Monterey, State of California, hereby
certify that the foregoing is a true copy of an original order of said Board of Supervisors duly made and entered in
the minutes thereof of Minute Book 75 for the meeting on May 11, 2010.
Dated: May 13, 2010 Gail T. Borkowski, Clerk of the Board of Supervisors
County of Monterey, State of California
By
Deputy
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SIGNED BOARD REPORTX��"���MONTEREY COUNTY BOARD OF SUPERVISORS
MEETING: May 11, 2010 AGENDA NO.: l
SUBJECT: Adopt a Resolution to support the State of California Enterprise
Zone Program.
DEPARTMENT: CAO Intergovernmental & Legislative Affairs
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Adopt a resolution to support the State of California Enterprise Zone Program.
SUMMARY/DISCUSSION:
The State of California is currently facing an approximately $20 billion budget deficit for FY
2010-11. Due to the magnitude of this deficit, the Legislature is considering cuts to nearly all
programs, including the Enterprise Zone Program. The loss or severe curtailment of the
Enterprise Zone's benefits could make business attraction and retention far more difficult,
hindering efforts to reduce poverty, unemployment, and crime by attracting businesses that will
provide jobs to residents.
In an effort to educate legislators on the importance of Enterprise Zones to local communities,
many communities throughout the State have sent letters or adopted Resolutions in support of the
Enterprise Zone Program. The attached Resolution would make it clear that the County supports
the Enterprise Zone Program and believes that the State should make the preservation of this
program a priority.
Under the Enterprise Zone Program, up to 42 areas throughout the State can receive significant
benefits for businesses located within an Enterprise Zone. These benefits include:
1. Hiring credits worth up to 50% of an employee's wages for employers that hire new
employees;
2. Tax credits to offset sales and use taxes on up to $20 million worth of equipment;
3. A business expense deduction that effectively allows a business to depreciate 40% of the
cost of new equipment within the first year of use;
4. A 15-year net operating loss carry forward; and
5. The ability for lenders to write off the net interest earned on loans to businesses within
the Enterprise Zone.
In 2007, the County joined with the Cities of Salinas, Gonzales, Soledad, Greenfield, and King
City, to prepare an application to designate a Salinas Valley Enterprise Zone SVEZ). On
January 30, 2009, the Salinas Valley Enterprise Zone received a 15-year designation from the
California Department of Housing and Community Development. Since the Zone's inception,
Enterprise Zone staff has issued 560 Hiring Credit Vouchers, 119 of which were noted as new
positions and 441 jobs retained at 118 businesses. Enterprise Zone staff has also worked with
several public and community organizations, including the Monterey County OneStop Career
Center and Operation Ceasefire, to help businesses understand the tax benefits they can receive
from hiring individuals with particular challenges.
On April 19, 2010, the SVEZ Advisory Board approved a resolution to support the Enterprise
Zone Program. A Memorandum of Understanding MOU") between the County of Monterey
and the Cities of Salinas, King City, Greenfield, Gonzales and Soledad established the Salinas
Valley Enterprise Zone Advisory Board to review ongoing Zone program activities and make
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SIGNED BOARD REPORTX��"���policy recommendations to the Enterprise Zone Manager. Each participating jurisdiction in the
SVEZ is requesting their governing body adopt a resolution to support the Enterprise Zone
Program.
OTHER AGENCY INVOLVEMENT:
The Cities of Salinas, King City, Greenfield, Gonzales and Soledad are the participating
jurisdictions in the SVEZ. The Director of Social and Employment Services supports the
adoption of the resolution.
FINANCING:
There is no financial impact to the General Fund with this recommendation.
Prepared by:
Debby L. ra shaw
Managemen nalyst III
Approved by:
Nicholas E. Chiulos, Intergovernmental
and Legislative Affairs Director
4-ai- c7
Date
c: City Manager, City of Salinas
City Manager, City of King
City Manager, City of Greenfield
City Manager, City of Gonzales
City Manager, City of Soledad
City of Salinas, SVEZ Manager
OEDC Members
q Z 7 0
Date
Attachments: Resolution
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