Banning Municipal Code Ch. 3.29 Economic Development

Footnotes:

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Editor's note— Ord. No. 1453, adopted June 26, 2012, enacted provisions to be designated as Chapter 3.28. Inasmuch as there already exists a Chapter 3.28, said new provisions have been redesignated as Chapter 3.29. Original section numbering has been maintained in the history notes following each section.

A. Constraints to Development. The City of Banning has found that its redevelopment program has been essential to revitalizing Banning which was for historically the center of economic activity in the San Gorgonio Pass area. Banning has had to overcome many obstacles including:

(i) Having its downtown areas bypassed by the Interstate Highway System;

(ii) Aged and undeveloped infrastructure inadequate to service redeveloping and growth areas;

(iii) Economic competition with other cities which used economic incentives to attract revenue generating businesses and development;

(iv) High commercial vacancies and a lack of commercial facilities to create a vibrant downtown;

(v) Dilapidated, unattractive, obsolete, and deteriorated buildings and stagnant property values; and

(vi) Community demographics with low income levels, high unemployment and lack of adequate housing.

These factors continue to discourage development in the community.

B. Accomplishments of Redevelopment Program. Since the formation of the Redevelopment Agency, the RDA has spent over three million, two hundred thousand dollars in developing a downtown façade improvement program on some twenty-three properties; has spent over twenty million dollars in building various public buildings and improvements; has redeveloped historic downtown properties such as the Oddfellows Building, the Fox Theater, the Hendon Building, the Nickles Building, the Willens Building, and the Coplin House at a cost of approximately three and one-half million dollars; has brought the sixty-eight million dollars Justice Center to downtown which will bring six courtrooms, some three hundred jobs, some five hundred to one thousand people in daily court business, and will serve as a center of activity in downtown, which project is also leading to the twenty-three million dollars Village at Paseo San Gorgonio Project; has created over two thousand jobs in businesses developed on RDA projects; has brought or retained sales tax generators to the community, who collectively pay over one million dollars in annual sales taxes and restored hope in the future of Banning.

C. Remaining Property Needs Continued Redevelopment. If most of the property in Banning which needed redevelopment had been redeveloped, or if the remaining blighted property did not face the same constraints as the property the RDA has redeveloped over the last thirty-four years, then the elimination of the redevelopment agency by the State of California by ABx126 would not be contrary to the general welfare of the citizens of Banning. But in many cases, some of the most constrained parcels in the City are still the ones most in need of redevelopment assistance. The Legislature in acting quickly in a statewide manner could not appreciate the impact of ABx126 in a small community impacted by blight such as Banning.

D. Need for Local Economic Development Program. In the face of the State's decision to eliminate redevelopment, the City of Banning must design and implement a local program within the authority of its powers under the State law to accomplish the purposes previously served by the City's redevelopment program. 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.

(Ord. No. 1453, § 1(3.28.010), 6-26-12)

To accomplish the purposes provided herein, the City of Banning 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 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; Development 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 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, design-build contracts, and the use of eminent domain 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 permitted by 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.

(Ord. No. 1453, § 1(3.28.020), 6-26-12)

The city may plan and carry out an economic development assistance program for the improvement, rehabilitation, and economic development of property through public-private partnerships, or utilizing any other method provided in section 3.29.020. Any economic development assistance program must identify, explain and analyze:

(i) The project to be assisted;

(ii) The location of the project;

(iii) Impacts on surrounding property;

(iv) The cost of the project;

(v) The project financing;

(vi) The assistance requested;

(vii) How the assistance will be used;

(viii) The benefits to the community or city from the project, including jobs, financial return to the city, community improvements or amenities or other benefits;

(ix) The development schedule;

(x) Performance criteria and assurances; and

(xi) The public purpose to be accomplished by the project.

(Ord. No. 1453, § 1(3.28.030), 6-26-12)

To carry out the economic development assistance program and promote the projects developed under this chapter, the city may exercise any power or authority permitted by its Charter or 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. Eminent Domain. The city may acquire real property by eminent domain, and may acquire every estate, interest, privilege, easement, franchise and rights in land, including encumbrances by way of mortgage or indebtedness, or any interest arising from covenants and conditions. Any such proceeding shall be undertaken only in accordance with the eminent domain law (Code of Civil Procedure § 1230.010 et seq.). No property currently zoned and used for residential purposes may be acquired by eminent domain for the purposes provided in this chapter.

D. 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.

E. Conditions, Covenants and Restrictions. 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.

F. Nondiscrimination. The city shall include in all deeds, leases or contracts for sale, lease, sublease or transfer of land, non-discrimination clauses.

G. Issuance of Bonds. The city may issue bonds or other financial instruments permitted by law and expend the proceeds from the sale to carry out the purposes hereof. The bonds and obligations issued by the city also may be purchased, invested in, or used for security.

H. 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.

I. 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.

J. 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.

K. 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.

L. Cooperation. The city shall cooperate with other public agencies in the formulating and administration of its economic development assistance 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 carry out 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.

(Ord. No. 1453, § 1(3.28.040), 6-26-12)

An economic development assistance program may only be approved for projects which, due to the nature of the project or scale of the project, the project will provide significant long-term benefits to the public generally. Accordingly, any person seeking approval of an economic development assistance program must meet one or more of the following conditions:

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 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) will exceed the land value of the property.

B. Need for Area-Wide Infrastructure. The development of the project will require the construction of major infrastructure requiring capacity which significantly 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 in excess of one hundred long-term jobs, or

(ii) Cause the expansion of an existing business adding at least one hundred new long-term jobs, or

(iii) Preserve an existing business which will retain at least one hundred long-term jobs (all excluding multipliers).

D. Fiscal Impact on City. The development of the project will create new on-going revenues to the city, considering all revenue sources, of at least one hundred thousand dollars annually, or preserve existing revenues of at least one hundred thousand dollars annually due to the threat of relocation outside of the city.

E. Special Amenities. The development of the project will produce unique 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.

In addition to the above conditions, the development of the project must not have a substantially adverse impact on traffic, or on surrounding properties or on the community generally. 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 uniquely beneficial to the community.

(Ord. No. 1453, § 1(3.28.050), 6-26-12)

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:

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 (CEQA compliance), 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 detailed analysis 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 is necessary.

F. Tenants. All information necessary to show tenant(s) availability and interest, the nature of the proposed tenants, and the financial strength and resources of the tenant(s). 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.

The applicant will be required to reimburse the city for all cost associated with the review process of their respective application package. This includes any legal and/or financial review performed by outside consultants and the costs associated with the public hearing notification. The applicant must conform to existing codes, requirements, and regulations that are applicable to the project. This also includes meeting the city's business license and insurance requirements.

(Ord. No. 1453, § (3.28.060), 6-26-12)

A. Investigation. During the economic development assistance 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. As part of the review process confidential information will be required to be shared with the city's legal counsel and any outside consultant reviewing the application package.

B. Discretionary Awards. The granting of economic development assistance is purely discretionary with the 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 meeting the objectives of this chapter. To the highest degree possible, only information available to the public may be used to justify any decision hereunder.

(Ord. No. 1453, § 1(3.28.070), 6-26-12)

A. Notice of Hearing. Before the city approves, by resolution, each economic development assistance program and the project to be assisted, the city shall hold a public hearing. Notice of the time and place of the hearing shall be published in the Record Gazette, or a comparable newspaper of general circulation, at least once per week for at least two successive weeks, as specified in Section 6066 of the California Government Code, prior to the hearing. Mailed notice shall also be sent to all property owners as shown on the last equalized assessment roll within five hundred feet of the subject property.

B. Report. The city shall make available, for public inspection and copying at a cost not to exceed the cost of duplication, a report no later than the time of publication of the first notice of the hearing mandated by this section. This report shall contain a summary of the following:

1. The economic development assistance program.

2. Description of the project including a site plan and of how the business operations on the property will be conducted.

3. The cost of the development to the applicant and the city, including, but not limited to, any land acquisition costs, clearance costs, relocation costs, the costs of any improvements, plus the expected interest on any loans or bonds to finance the project.

4. An explanation of why the economic development assistance program is needed by the applicant, with reference to all supporting facts and materials relied upon in making this explanation.

5. How the project will meet the conditions described in section 3.29.050 and how the project will provide public benefit and promote the health, safety and general welfare of the community.

(Ord. No. 1453, § 1(3.28.080), 6-26-12)

The city council may approve the economic development assistance program if it finds as follows:

A. The project will meet the conditions of section 3.32.05 by:

(i) Alleviating persisting conditions of blight; or

(ii) Provide significant area-wide infrastructure; or

(iii) Meet the minimum thresholds for job creation; or

(iv) Meet the minimum thresholds for positive fiscal impact on city; or

(v) If no one of these conditions is fully met, but in combination, the overall objectives are met.

B. The project will produce unique public or private facilities not otherwise existing in 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 project will not have an adverse effect on surrounding properties or the permitted uses thereof.

E. The economic development agreement contains provisions to assure the continued operation of the project consistent with this chapter and providing for the enforcement of the covenants contained therein by city.

(Ord. No. 1453, § 1(3.28.090), 6-26-12)

If the economic development assistance program is approved, an economic development assistance agreement shall be entered into which includes the elements contained in section 3.29.040. 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 3.29.070. It must contain performance criteria and require that the project will remain in operation for at least fifteen years. 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 the city approval of any tenant(s) necessary to achieve the purpose of the project. The agreement shall show the public purposes of the project will be achieved. All obligations undertaken by the applicant shall be guaranteed with sufficient securities.

(Ord. No. 1453, § 1(3.28.100), 6-26-12)