HomeMy WebLinkAbout14 LAMBRA MCAS TUSTIN 10-21-96DATE:
OCTOBER 21, 1996
~ '~ / --~' 10-21-96
Inter-COrn
TO:
FROM'
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY REDEVELOPMENT AGENCY
LAMBRA DESIGNATION FOR MCAS TUSTIN
RECOMMENDATION
Authorize staff to submit an application to the State Trade and Commerce Agency for designation of
MCAS Tustin as a LAMBRA through adoption of Resolution 96-109.
FISCAL IMPACT
No negative fiscal impact would occur from Council's action as recommended above. LAMBRA
designations are similar to Enterprise Zones allowing communities to extend California tax credits to
companies locating in a LAMBRA Zone.
BACKGROUND/DISCUSSION
Communities with military installations identified for downsizing or closure need to attract new business
and private investment to compensate for lost jobs and revenues. One tool available to communities on a
competitive basis is to acquire LAMBRA designation for the downsized or closing military installation.
LAMBRA designations are similar to Enterprise Zones in that it allows local communities to extend
California tax credits to companies locating in a LAMBRA Zone. These credits include:
· A 15 year net operating loss carryover;
· Tax credits for sales and use taxes paid;
· Hiring credits for wages paid; and
· Various business expense deductions.
Participants enjoy a variety of long term benefits including: employment opportunities for area residents, a
decreased unemployment rate, an increased tax base, the ability to competitively attract industry to the
community which results in a benefit to the overall economic health of the entire community.
Currently, only five LAMBRA designations (one per region) will be awarded throughout the state, with
communities required to submit applications which are competitively reviewed by State Trade and
Commerce Agency. Only two regions (Two and Five) have not yet had a community LAMBRA
designation. To obtain LAMBRA designation for MCAS Tustin, the City of Tustin must compete against
other communities affected by base closure or military downsizing as part of Region Five. Region Five
consists of Los Angeles, Orange, Ventura, Santa Barbara, San Luis Obispo, and Kern Counties.
Application rounds only occur once per year and the community must submit a preliminary application
and be approved by the State Trade and Commerce Agency to move forward with a formal application
submittal.
At the conclusion of this year's preliminary application round, only the City of Tustin was approved to
move forward with a formal application for Region Five. Assuming that the submittal of a'formal
application meets the minimum standards required by the Trade and Commerce Agency, the City will not
be competing against other applications and can assume that a LAMBRA designation will occur for
MCAS Tustin. LAMBRA designation is binding for a period of eight years and cannot be conferred if
there is an existing Enterprise Zone or another Incentive Area.
Staff believes that the designation of a LAMBRA Zone upon the MCAS Tustin property will provide us a
"leg up" over other communities in aggressively attracting business to the base and Tustin as a whole.
Application for a LAMBRA includes specific local marketing commitments which may be performed by
the City to entice businesses to the area. It is anticipated that these approaches would be necessary
regardless of LAMBRA designation to encourage rapid economic development at the base, and that they
pose no significant, unanticipated expense to the City. In the event that marketing obligations ever
become burdensome, the City could opt to allow the LAMBRA designation to be revoked by the State
Trade and Commerce Agency. At this time, however, staff recommends Council authorization for
submittal of the formal application and appointment of the Assistant City Manager or her authorized
representative as the agent to apply, approve, sign and execute any documents necessary for a LAMBRA
application and its implementation.
Resolution 96-109 has been prepared for Council action.
regarding this matter.
o
Staff will be available to answer any questions
Dana Ogdon ~
Senior Planner
DO:do:ccrcport.lambra.do
1 RESOLUTION NO. 96-109
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, AUTHORIZING THE APPLICATION FOR
TRADE AND COMMERCE DESIGNATION OF A LAMBRA FOR
MARINE CORPS AIR STATION, TUSTIN
The City Council of the City of Tustin, California, DOES
HEREBY RESOLVE as follows:
I. The City Council finds and determines as follows:
a.
In 1993 the California Trade and Commerce Agency
created the Local Agency Military Base Recovery
Area (LAMBRA) legislation (AB 693) to stimulate job
creation in areas experiencing military base down-
sizing and closure; and
LAMBRA designations are similar to Enterprise Zones
allowing communities to extend California tax
credits to companies locating in a LAMBRA Zone,
which is anticipated to encourage and facilitate
early reuse and economic development of closing
military installations; and
C ,
Participating communities will enjoy a variety of
long term benefits including employment
opportunities for area residents, a decreased
unemployment rate, and increased tax base, and the
ability to attract industry to the site; and
D o
The designation of a LAMBRA is a competitive
process and limited to only one base-closure
affected community in the Orange County/Los Angeles
County region; and
E ,
The redevelopment of MCAS Tustin and the community
of Tustin would be greatly benefitted through the
advantages of LAMBRA designation; and
F .
MCAS Tustin is scheduled for closure as a BRAC II
and BRAC III closure; and
G,
LAMBRA designation is necessary to attract private
sector investment to the site; and
H o
No portion of the application area is included
within an Enterprise Zone or other Economic
Incentive Area designated by the state
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Resolution No. 96-109
Page 2
II. The City Council does hereby take the following actions
in support of creation of a LAMBRA designation:
1. Approves the filing of an application for California
Trade and Commerce Agency designation of a LAMBRA for MCAS
Tustin; and
2. Commits to the preparation of a joint EIR/EIS on the
MCAS-Tustin Reuse Plan pursuant to the California
Environmental Quality Act (CEQA); and'
3. Agrees to complete all actions stated within the
LAMBRA application related to marketing approach, proposed
incentives, etc., and recognizes that failure to perform these
actions could result in the automatic revocation of the LAMBRA
designation; and
4. Appoints the Assistant City Manager or her
authorized representative as the agent to apply, approve, sign
and execute in the name of the City of Tustin any documents
necessary for applying for funding under the CalifOrnia Trade
and Commerce Agency's LAMBRA Program and for entering into an
agreement, including any amendments thereto, with the Trade
and Commerce Agency in the event that a LAMBRA designation is
awarded under that program.
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Resolution No. 96-109
Page 3
PASSED AND ADOPTED at a~ regular meeting of the City
Council held on the 21st day of October, 1996.
Tracy Wills Worley
Mayor
Pamela Stoker
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City
Council of the City of Tustin, California, do hereby certify
that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing
Resolution No. 96-109 was duly passed and adopted at a regular
meeting of the Tustin City Council, held on the 21st day of
October, 1996, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STOKER
CITY CLERK
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