Resolution No. 6060
".,.,'
1
RESOLUTION NO. 6060
2
5
6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF AN ENTERPRISE ZONE AGREEMENT
BETWEEN THE CITY OF VERNON AND ITS
REDEVELOPMENT AGENCY AND THE CITY OF BELL AND
ITS REDEVELOPMENT AGENCY REGARDING APPLICATION
FOR AND PARTICIPATION IN THE CALIFORNIA
ENTERPRISE ZONE PROGRAM
3
4
7
8
WHEREAS, the State of California has established an
9 Enterprise Zone Program whose goal is to stimulate growth and
10 revitalization in economically distressed areas throughout the
11 State; and
12
WHEREAS, an Enterprise Zone is a spe,cific designated area
13 in which companies doing business can take advantage of State and
14 local incentives and programs not available to businesses outside
15 the Enterprise Zone; and
16
WHEREAS, by offering such incentives and programs,
17 businesses can be attracted to such an Enterprise Zone, and
18 companies can be persuaded to remain in such an Enterprise Zone;
19 and
20
WHEREAS, each Enterprise Zone must contain an eligible
21 area with a population of at least 2,500 and meeting certain
22 criteria, a commercial area and an adjacent industrial area; and
23 WHEREAS, the City of Bell not only has a population which
24 exceeds 2,500 and meets the certain criteria, but also contains a
25 commercial area; and
26
WHEREAS, the City of Vernon not only contains an
27 industrial area, but also is located adjacent to the City of Bell;
28 and
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
WHEREAS, the application area, which consists of the
entire City of Bell and the entire city of Vernon, including the
redevelopment project areas in both cities, is a depressed area,
and designation of such an area as an Enterprise Zone is necessary
in order to attract private sector investment to the application
area.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are
true and correct.
SECTION 2: The City Council of the city of Vernon
approves the Enterprise Zone Agreement, a copy of which has been
presented to the City Council concurrently with this resolution,
and the city Council hereby orders said Agreement to be received
and filed by the City Clerk.
SECTION 3: The City council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute said Agreement
for, and on behalf of, the City of Vernon.
III
III
III
III
III
III
III
-2-
1
SECTION 4: The city Clerk of the city of Vernon shall
2
certify the passage of this resolution, and thereupon and
3
thereafter the same shall be in full force and effect.
4
APPROVED AND ADOPTED this 24th day of February, 1992.
5
6
_.
EONIS C. MAL G, May r
7
ATT..EST'. / ~.""
~ p/hU /~
BRUCE V. MALKENHORST, City Clerk
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-3-
}
1
STATE OF CALIFORNIA )
2 )ss
COUNTY OF LOS ANGELES )
3
I, BRUCE V. MALKENHORST, city Clerk of the ci ty of
4
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 6060, was duly adopted by the city Council of the
City of Vernon at an adjourned regular meeting of the City council
duly held on Monday, February 24, 1992, and thereafter was duly
signed by the Mayor of the City of Vernon.
5
6
7
8
9
10
~
/:J_
~
11
12 (SEAL)
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-4-
...
1
ENTERPRISE ZONE AGREEMENT
2
THIS AGREEMENT is made, entered into and executed in
3
duplicate originals, either copy of which may be considered and used
as the original hereof for all purposes, as of this &Stt- day of
feJ:;ru.,A'.....;, 1992, in the City of Vernon, County of Los Angeles,
,
4
5
6
California
7
8
BY AND BETWEEN
THE CITY OF VERNON (hereinafter
referred to as "Vernon")
4305 Santa Fe Avenue
Vernon, CA 90058-0805
(213) 583-8811
THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON, a Public Body,
Corporate and Politic, duly
created and established pursuant
to the community Development Act
of the State of California
(hereinafter referred to as "the
Vernon Agency")
4305 Santa Fe Avenue
Vernon, CA 90058-0805
(213) 583-8811
9
10
11
rtJe
~\;j /'
,Q,u
\ .
ciY
~
12
13
14
15
16
17
AND
THE CITY OF BELL (hereinafter
referred to as "Bell")
6330 pine Avenue
Bell, CA 90201
18
19
20
THE REDEVELOPMENT
CITY OF BELL
referred to as
Agency" )
6330 pine Avenue
Bell, CA 90201
AGENCY OF THE
(hereinafter
"the Bell
21
22
23
24
WITNESSETH
25
26
WHEREAS, the State of California has established an
27
Enterprise Zone program whose goal is to stimulate economic growth
28
in distressed areas throughout California; and
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
WHEREAS, the legislation governing the Enterprise Zone
program is set forth in Government Code sections 7073 and 7076 and
in California Code of Regulations sections 5600 et seq.; and
WHEREAS, under the legislation cited above, an application
area for the Enterprise Zone program may consist of two cities, one
containing an eligible area and a commercial area and the other
containing an industrial area; and
WHEREAS, the cities of Bell and Vernon jointly meet the
criteria set forth to qualify for participation in the Enterprise
Zone program, in that Bell contains an eligible area, a commercial
area and some industry and in that Vernon contains an industrial
area and some commercial businesses; and
WHEREAS, the Bell Agency and the Vernon Agency both
consider that participation in the Enterprise Zone program would
increase the ability of each agency both to retain and encourage the
expansion of existing businesses and to attract new businesses to
their project areas; and
WHEREAS, the goals of the Enterprise Zone program are
consistent with the purposes and goals of redevelopment expressed in
both communities.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET
FORTH HEREIN:
I. PURPOSE
The Parties agree to cooperate in making application to the
State of California for participation in the Enterprise Zone program
as an application area consisting of the cities of Bell and Vernon
and the redevelopment agencies of Bell and Vernon. The Parties
-2-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
further agree that, if selected for participation, the Parties shall
cooperate in managing the Economic Development Plan and in $eeting
all program requirements. In managing the Economic Development
Plan, the Parties shall develop specific, long-term plans for
specific areas within the Ehterprise Zone, and the Parties shall
enter into marketing agreements which stress developing continuity
in the program.
II. TERM
Because Government Code Section 7073 provides that
designation as an Enterprise Zone shall be binding for a period of
fifteen (15) years, and because the application process is estimated
to take at least 150 days, the Parties agree that this Agreement
shall continue for a period of sixteen (16) years from .the date of
its execution, unless terminated by the Parties under the provisions
of Paragraph VII below. In the event that the State of California
later provides for extension of the Enterprise Zone program, and in
the event that such extension applies to the Parties, the Parties
may extend this Agreement in writing to accommodate such extension.
III. ADMINISTRATION
Although Bell and Vernon shall apply as co-applicants,
Vernon shall coordinate the application process. If the application
area consisting of Bell and Vernon and their redevelopment agencies
is selected, Vernon shall administer the Enterprise Zone consisting
of these agencies. Each Party shall appoint a staff member to serve
as coordinator for that Party, and each coordinator shall report to
the Assistant to Vernon's City Administrator, who shall serve as
overall Enterprise Zone coordinator.
-3-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
IV. APPLICATION COSTS
It is anticipated that approximately One Hundred Fifty
Thousand Dollars ($150,000) will be required to prepare the
preliminary and final application on behalf of the Parties.
Additional funds may be required to prepare the final application,
if the Parties are selected. Bell and the Bell Agency agree to
furnish a total of Fifteen Thousand Dollars ($15,000) toward these
anticipated application costs. All other application costs for the
preliminary and final application shall be paid by Vernon and. the
Vernon Agency.
V. PROGRAM COSTS
If selected for participation in. the Enterprise Zone
program, the Parties agree that program costs shall be paid
according to the formula set forth in Attachment A to this
Agreement. The Parties agree that, by adopting this formula, they
intend to match the benefits of the Enterprise Zone program to the
costs borne by each Party.
VI. INDEPENDENCE OF EACH AGENCY
Although the Parties agree to cooperate in making
application and in managing the program, the Parties recognize that
each city and agency shall continue to pursue its individual public
responsibilities. Each Party, therefore, may continue to pursue
economic development programs and redevelopment programs which are
independent of the Enterprise Zone program.
VII. TERMINATION
Because Government Code section 7073 provides that
designation as an Enterprise Zone shall be binding for a period of
-4-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
fifteen (15) years, if selected for participation, the Parties shall
have the power to terminate this Agreement only in the event that a
Party can establish either that participation in the program has had
the effect of hindering economic development for that Party or that
the annual cost of operating the program has exceeded the benefits
obtained, or in the event that the;;State of California initiates
another program for which the Parties would be ineligible if they
continued as an Enterprise Zone, or in the event that all parties
mutually determine that the benefits obtained from the program have
been insufficient.
VIII. ASSIGNMENT PROHIBITED
No Party to this Agreement may assign any right or
obligation pursuant to this Agreement. Any attempted or purported
assignment of any right or obligation shall be void and of no
effect.
IX. CHOICE OF LAW AND FORUM
This Agreement is governed by the laws of the State of
California. Any suit to enforce the provisions of this Agreement
shall be brought in the courts of the State of California.
X. ATTORNEY'S FEES
In the event that it becomes necessary for any party to
this Agreement to bring suit to enforce the provisions of this
Agreement, the Parties agree that reasonable attorney's fees may be
awarded by the court to the prevailing Party.
XI. NOTICES
Notices to the Parties, unless requested otherwise in
writing, shall be sent to Bell and the Bell Agency at 6330 pine
-5-
1 Avenue, Bell, California 90201, and to Vernon and the Vernon Agency
2 at 4305 Santa Fe Avenue, Vernon, California 90058.
3
XII. ENTIRE AGREEMENT
4
This Agreement is the entire Agreement of the Parties. The
Parties represent that, in entering into this Agreement, they have
5
6
not relied on any previous representations or understandings of any
7
kind or nature.
8
IN WITNESS WHEREOF, Bell, the Bell Agency, Vernon and the
9
Vernon Agency have executed this Agreement as of the date first
10
hereinabove set forth.
11
CITY OF VERNON, a municipal
corporation
BY:~'
--- -O~ISC; MALBU G, Mayo .
12
13
14
::ES~
BRUCE V.
15
16
APPROVED AS TO FORM:
BY, ~ \>, ~~
D1\ -D B. BREARLE , City At -orney
17
18
19
THE REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY: C-.~~,
EONIS C. MALB
20
21
22
::ES~ /~~
BRUCE V. MALKENHORST, Secretary
23
24
25
APPROVED AS TO FORM:
26
BY: ~d ~ \>~
DAVID B. BRE RL1,y, Legal Cou el
27
28
-6-
1
2
3
4
5
ATTEST:
B~~~
TITLE: DEPUTY CITY CLERK
6
7
8
APPROVED AS TO FORM:
Qv~.~~
9
BY:
10
TITLE:
11
12
13
14
ATTEST:
B~~A. ~J:fc
TITLE: DEPUTY SECRETARY
15
16
17
APPROVED AS TO FORM:
18
\tt~..~
19
BY:
20
TITLE:
21
22
23
24
25
26
27
28
-7-
CITY OF BELL, a municipal
corporatio
BY:
TITL .
NT AGENCY OF THE
BY:
CHAIRMAN
'~
Attachment A
Allocation Formula for First Year of operation
of Enterprise Zone Cost
The formula for the sharing of costs between the parties will be:
Vernon's share of costs directly associated with the
Enterprise Zone program will be 90%
Bell's share of costs directly assocated with the Enterprise
Zone program will be 10%
Parties agree to reevaluate the shares after the first complete
year and on annual basis thereafter in order to insure that the
benefits derived by each party is directly proportionate to the
costs expended. The intent in future years is to match the yearly
contributions to the benefits received by the Parties.