The URL can be used to link to this page

88-1767 ;' RGTY CLERK . FINANCE COIU�CI� ; `oEP�R,MEN* GITY OF SAINT PAUL "�J�p . MAYOR . . . � � � , .FIl� NO. � � • �� a� � � I��s�l��t.�: . � � :. . �' . a .� � �,.� Pceseqrtted.By ... ` :. 7 �, �� Refer Commit�+ee: . I}�st� � . � Out of Committee By Date � � . , . . _ . - . . .. . e _ _ - __ - _-- `� �_ . . . . , . .. . � �� ` . RESOLUTION IdO1�iIN�iTING FEp�RAL ENTERPRISE ZflIQE WI`THIN THE CITY OF SAINT PAtTL T�HEREAS, the Housing and Commu ity Development Act of 1987 include� Titie VII, Enterprise Zone Develapm nt, as a new federal program; aad WHEREAS, the purpose of the pr gram is to encourage busi�ess to ��t�`a��. �a,,. - distressed xreas, thereby creating obs and assisting in the econcmic �'' revitaTization of these areas; and • ,:'� � � � � f.�� at WHEEtEAS, local and state gover ments may jointly nominate gre�s ��h ` . ca�d�tions of pervasive poverty, un mployment and general distress tar � designation as federal enterprise z nes; and ,,. WHEREAS, in order to nominate �an enterprise zone area, state and l�cal gawg�ex�ts must commit to a local �course of action to reduce v�ric�s burdens .�.;'� harne by e�ployers and employees i� the area; and " ` " �EREAS, the Secretary of Hou ing and Urban Development wi�l revi�ew � Y'�!' aam�i�,tions submitted by state and local governments to de.ter�.�e tl�e adequacy `' o�,,>�he -e�ourse of action and will d signate a maximum of 100 ��s��r3.se��:zones '��Uf�d -e�tireiy on rank order of di tress; and . . ka�.Y'� . '�..( � . . � � ' . �`"�`'��REAS, within the City of S int Paul, census tracts 3Q5, �. �27, 328, 3:29, 336, 337, 340 and 355 display the highest distress levels in tex'�:of �"� ' persons in poverty, low income hou eholds, unemployment rate, and pog�tion � 'loss; I � ; , � a , � ; CU[TNCII.. MEMBERS Requested by Qepad�ne� o�: Yeas Nays '�' Dta�oad Lons �_ In �av r Gocwilz � : By � � �� Agalltus _ - s�oaeon , WII� , . : Form l��rroved by City Attorney Adopied by Gouncit: Daie ' j �� . : Certified Passed b�t,:Councii SecretaeY . `,� 't , �,� � � BY. ; ' . � ' By i . Approved by Mavor. Date �P��'�"�eY�`f� Subc+�ission to Council ` By • B� .� , - I � . r � � YiHITE — CiTY CLERK I�' a�Nr. q FINANCE (�j I TY OF SA I NT �A IT L Council �� CANARV — DEPARTMENT .� BLUE —MAVOR File �O• ` Council Resolution Presented By Referred To Committee: Date Out of Committee By Date NOW, THEREFORE, BE IT RESOLVED, that the City of Saint Paul nominate an enterprise zone area consisting of census tracts 305, 314, 327, 328, 329, 336, 337, 340, and 355, and that in conjunction with the State of Minnesota, it submit an application for nomination to the Secretary of Housing and Urban Development; and be it further RESOLVED, that if the area is designated as an enterprise zone, the City of Saint Paul commits to a local course of action to reduce burdens borne by employers and employees in the area, as described in the application for nomination. , - 2 - 4.._: COUNCIL MEMBERS Requested by Department of: Yeas Nays Dimond Lo� In Favor cosw;tz Rettman 0 B Scheibel A gai n s t Y Sonnen Wilson NOy � � � Form Approved by City Att ney Adopted by Council: Date /� � Certified Pas e C cil Sec tary BY / � By� � �QV - �, �$ Approved by Mayor for Submission to Council App e by �Navor: Da � By �'1 gQA(P',°0.' . ' '�`✓ a.,�.,,-e -.�..�i - ... ;��.i � i,a � � ■<iTtRn��ft1■��RTi7t1 •��\■ 7 ■��fiit�ff t��7�7iiT7t7�tTit17TT7iiTT \ I ► '"�� N c` O � � N � O c0 � n � � o �—--- � � _ _,I � � ,.. o c� W � N �.�a� - (V � r�i o � � � � � o,s.,�� T Q E o � o ;� �_ � ,�.�M,�. � � � , o � � Q � o o ; '. ; ..i� ...... . ,,P�� € I n � : a�_ ZG�...�1.... ,. ��'�.. ��'�• _ � ' �•'��*`Q � � •. . � '••` p • � �' � s� ,/ e� - (O � �sn�� ♦ O �" t°� ' ..,. ('7 „e35 = : �� Rr� �� _� r+ �'-- � � �� (O ¢ ,e., ; S � �N � "' �, � � Z ■ N �� F M / ?�, � 8 U � � _ - . �' � p � $ _ � O •^ C`') � W Z � � t � � � � � o � O r � ~ E � "� ° "� ° ° m d . � s Z � � � —� �saaa M (V = U � a � � `-+ � � ~ � � Q ; p � M � ,e,AOe u (h C� d' (O O O ' �"' (h . _� .a. (h � F— Cn . 0 �,� ■ o � " V ►-r e e ■ , � � V ' ' � ■ ■ d,..«�s � � N i F— C7 � a Z _ . . M � a s,.o , � ,,.�e � z • N j,� � O � c+) • � � = Z R. Z � i ��! ■ o.._ N Z � (I � ' lV �`�� ` Z Q Z � ,��,. ` � O U d Q Q 3'r �I�:__--..ry • O f�'��bi4 ■ ,A �� ^� ••�� ■ J � W N r� '�n •' • . a o � o _ � r� � �� .,� �,.� c� � o • .t,. ,.. � ' ; � = =F M .�. r� �e M � � Z ,. �� `� � r ........, rn . • f7 • Q • _ M� ,s 4 . : s�q., .,oa,sc �: � 1� - W • I i � �I ��av � ■ � ,o„ � � � . ll � �''� ■�� 1 N � � � �i • O �'.� a � M c'� c'� a0 � � ' � • ' ` ' - (`') (')_ ('� = M � .�d_, � Q 'l"�� C'') . . ,, � ••, <—�,�• ■ � � •�� ° ` ; i��.�......■...■.........• ��r��s4��i�s ■ ns ■ C'') ('� �i ��.,,.., � « � H O • N � �� (�p V J r � . • _ . � ��•, O ' -� � M N • • ('N7 C`') :� i� N N � O ,osen�s � i c'7 �('') Z , -- �- _ r � ' .. ,�. `° ;,s - a � W ' ' _ � T� ' � r� .. � -�- �� N � M U � _ � ,�.,�d�� o �co r ° � °` M r`ni � : 0 ' �= r - �.,,,., a . � � ,� = o .,,� . , � _ . � no„< �co . s` : M • �� ' � � i.............. .... ` '� � M ��° �rt ��.,v�� • � � M �� :� W � • � � • M e N � : � � i� b . g T � M . . �� ;�� tl 1�3 � � � , . ��i�� FEDERAL ENTERPRISE ZONE Q � A October 26, 1988 Whp avply for Enterprise Zone Designation? � On the face of it, there appears to be no advantage to applying for federal � enterprise zone designation. The legislation, as passed, does not provide for any federal monetary benefits for the zones. However, it is possible that monetary benefits will be added to the program sometime in the next year. Potential benefits cited in various articles on the subject include preference for job training grants, or special set-asides from HUD programs. How were the vroposed boundaries chosen? The proposed boundaries are based on criteria established in the regulations for the program. The program requires that the proposed area be located within census tracts with a poverty rate of over 20$. The area must also be contiguous. The proposed boundaries thus include all census tracts that meet these two requirements. There are two exceptions to this, however. The recommended boundaries exclude census tracts 342 (the downtown core) , and 361 (the entire riverfront area of the west side) , �which do technically meet the requirements discussed above. However, the poverty� unemployment and population loss statistics (on which basis the enterprise zones will be selected--this is discussed more extensively below) of these two tracts are lower than the rest of the proposed area. Including the two tracts would thus make our application less competitive. ' On what basis �►ill the enterprise zones be designated? Only 100 total enterprise zones will be designated throughout the country. 33 of these will be rural districts, and 67 will be urban. They will be chosen entirely on the basis of the "distress" statistics provided for each area, including poverty rate, unemployment rate, low income households, and population loss. Nominated areas will be ranked, and the 100 most distressed areas will be designated. � What resources are local governments bein¢ asked to commit to the vro_posed entervrise zones? = e, Although the enterprise zones will be chosen based entirely on the distress statistics discussed above, the legislation requires that each local government make a local commitment to pursue a "course of action" if the proposed enterprise zone is designated. The proposed course of action must include certain types of elements, along with guarantees that each element will be carried out. � Four of the following six elements must be included. The first, third, fourth and fifth are recommended as Saint Paul's course of action, lease note that the recommended local commitment consists entirelv of things we are already doin� or are intendin� to do in the near future anyway. . . �� 76 7 ,� � .. . FEDERAL ENTERPRISE ZONE Q & A Page 2�0 �1) � reduction of tax rates fees or user char es avplving within the enterprise zone. . The current state enterprise zone (officially named the Saint Paul � Riverfront Enterprise Zone) provides for tax reductions to eligible businesses. Only a small portion of the state zone is also included in the proposed federal zone (the Empire Builder Industrial Park area) ; however� this should be adequate to meet this requirement. (2) An increase in the level or efficiencv of public services within the enterprise zone. (This element is excluded) (3) Actions to reduce._ re�nove simplify or streamline vaperwork reauirements within the enterprise zone To meet this requirement, the city will continue to pursue our "one-stop shopping" approach for business assistance, which is intended to reduce (or simplify) the process of complying with city regulations. (4) Involvement of vublic authorities or,�rivate entities organizations �neiehborhood associations and communitv ��ups varticularly those within the nominated area including a written commitment to provide to emplovers, emvlovees and residents of the nominated area• i Jobs and job trainin,� iiL Technical assistance: • iii. Financial assistance: and iv,, Other assistance. To meet this requirement� the city will continue the NPP program, the new scattered site tax increment financing district, the URAP program (which substantially overlaps the proposed area) , and the city's first source requirements. The emphasis in the application will be on how the city works in partnership (through the above programs) with neighborhood groups and private sector interests to promote economic development. (S) The eivine of svecial contract preference to businesses owned and o�erated bv members of any minorit� To meet this requirement, the .city will continue to enforce its set-aside policies. (6) �'he eift (or sale at below fair market value) of surolus land in the entervrise zone to neiehborhood organizations a reein� to onerate a business on the land. (This element is excluded.) What is the state's role in nominatinst the entervrise zone? The federal enterprise zone legislation requires that local governments must submit the nomination application �ointly with state governments. The state has the option of adding incentives to the local course of action, and must certify that they will commit to providing those incentives. Beyond continuing to provide tax credits to Saint Paul's existing enterprise zone, the State of Minnesota will not add any incentives to our local course of action. They will simply review and sign off on our application. � � ■rrmimtR��n�. ��s��• •�• rn�R�r�rrrR�rr*n \ � \ � NO F N vo o ° r• � � � � c� � _ � . � � � M �---a:.. O W � .e ��7 N Q � � ' i � � � .�;=�M. ' � ,� n !- c� v ;� � .» ,. . � Q � � 0 ``__ N-� O I O � Q aour,�:r� . ap Q � � M � ��a •��• ♦ ^ � f �. Z � � � . ' ...�;...�..� ..� ••••• i • •..., o ; ,.. � . O _ .. , � ; `° ; �,.,....,� �, , � �� .I '^ ` �rt � Inb15)b : � ��■ /l r W m �-- — ,d., � : N � �� • w � N �� ~ U O -- � ' � �' � __� N p � ; (h •r (� f ��o`` � ►'+ � � � � � �t (O � m � ` C � � ,o,�"° M o ■ • M �Z 1--- �//� ---�-- 6 --�:e�.,�� M t, �� `_, IN�. � H � `� p � � •. .�.,�. � �o. s M m F�,r, � � 0 � � ,.�dM.». M � V � . _� � � . • o � � Q 'R � � � • � sa+u�s ,�', •��A�7� • � � N . � ,,.o.. � � a Z � �: � � : �s.a,.,. � Z . ,n ,,.�. cv � r "� • � »o,,..�, � a . . � � N Z� Z O ^ 'y+� • - o�«o O W a � M � • Z � N i C� d s` � '�� M a ,�.. .:-=�:.� . o �. � � 4� J/� � ^ ��~ �� ' ■ N CO w� 1A t ii O � _ C`� �(h c� �"�• ` N �- . ('� C� c+�j O+ d �s,,. � '^ '^ v ,�^ • by N� � W WM Y(�/'� � '^ ` s' •/� � r Q � l'/ 'I IY' W�y� � . Z � ��Vj��+ '1• /T � •/ � M Q • a M s�.a+. .c •'3 ., • • � . . � . . � . � ; • � U (h��• C'7 (h C7 � �` l� 1n ` lI� • •��o��. °o,sr.f�,� . Q �- �i ' M (h� M� M • � �� M i i � •�� ,�y ■ • � �� i j��.a��• � Fo�nn.n • •� � ' � O N � � ��• • � � � ! �� •/ N � • • �w�« � � N • • � c") �� K�p cV � (� i c") , O • i� Z ' . :, ; � � . ' ^ � W •� �� V . . . � . � : o '" up'' � '.c� !� . . N �M M � ...,�.. 0 : M r • ; z - co � c �•., � � ' ,co . � : . rMi • �� r�. , � 7� • co :............. .�.A. �v . � � � . � � ,� �a i N .- C7 `+ � • •�D � N . � : :M r : � • ., . . : ; �Y WHI7E - CITV CIERK PINK - fINANCE G I TY OF SA I NT PA U L Council `^/ f J��JJ CANARV - DEPARTMENT J� �/ � BI.UE - MAVOR File �O. �L f ' Co il Resolution i � � � 5 . . _e�� Presented By Referre Committee: Date Out of Committee By Date RESOLU�IOfJ N0�IINATI"JG FEDER,^L E"JTE"PRISE Z0�lE `�JITNI�J THE CITY OF SAIPaT PAUL WHERE,4S, the Housing and Cori�munity Development Act of 1987 includes Title VII , Enterprise Zone Development, `�s a new federal program; and WHEREAS, the purpose of the pro�am is to encourage business to invest in distressed areas, thereby creatinr� jobs and assisting in the economic revitalization of these areas; andh WHEREAS, local and state governments �ay jointly nominate areas with conditions of pervasive poverty, unempT�oyment and general distress for designation as federal enterprise zones;''�,and ,,4 WHEREAS, in order to nominate an enterprise`-;zone area, state and local governments must commit to a local course of`�action to reduce various burdens borne by employers and employees in the area; a�nd 6JHEREAS, the Secretary of Housing and Urban Devel�ment will revie4v nominations submitted by state and local government�, to determine the adequacy of the .course of action and will designate a maximum�`�f 100 enterprise zones based entirely on rank order of distress; and Wii�REAS, within the City of Saint Pau1 , census tracts 314, 328, 329, 336, 337, 340 and 355 display the highest distress levels in terms of persons in poverty, low income households, unemployment rate, and population loss; COUNCIL MEMBERS Requested y partment of: Yeas Nays Dimond Lo� In Favor Goswitz Rettman B �hQ1�� _ Against Y Sonnen Wilson Form Approved b City Attor ey Adopted by Council: Date Certified Passed by Council Secretary By — `� sy Approved by Ylavor. Date Appr e y Mayor for Subm' �ncil By - _ WHITE - CITV CLERK PINK - FINANCE G I TY OF SA I NT PA U L Council (�7' '�J /// `�y CANARV - DEPARTMENT y �� BIUE - MAVOR File �O. �l � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date NOW, THEREFORE, BE IT RESOLVED that the City of Saint Paul nominate an enterprise zone area consisting of census tracts 314, 327, 328, 329, 336, 337, 340, and 355, and that in conjunction with the State of Minnesota, it submit an application for nomination to the Secretary of Housing and Urban Development; and be it further RESOLVED, that if the area is designated as an enterprise zone, the City of Saint Paul commits to a local course of action to reduce burdens borne by employers and employees in the area, as described in the application for nomination. COUNCIL MEMBERS Yeas Nays Requested by artment of: Dimond �ng [n Favor Goswitz Rettman scne;be� __ Against BY Sonnen Wilson Form Approve City At orne Adopted by Council: Date � ✓ Certified Passed by Council Secretary BY g�, A►pproved by Ylavor. Date Approv Mayor for Submissi n o oun�'rl By — B � � � � ��' 1�� 7 FEDERAL ENTERPRISE 20NE Q & A October 26, 1988 Whv apvly for Enterprise Zone Designation? On the face of it, there appears to be no advantage to applying for federal enterprise zone designation. The legislation, as passed, does not provide for any federal monetary benefits for the zones. However, it is possible that monetary benefits will be added to the program sometime in the next year. Potential benefits cited in various articles on the subject include preference for job training grants, or special set-asides from HUD programs. How �ere the proposed boundaries chosen7 The proposed boundaries are based on criteria established in the regulations for the program. The program requires that the proposed area be located within census tracts with a poverty rate of over 20�. The area must also be contiguous. The proposed boundaries thus include all census tracts that meet these two requirements. There are two exceptions to this, however. The recommended boundaries exclude census tracts 342 (the downtown core) , and 361 (the entire riverfront area of the west side) , which do technically meet the requirements discussed above. However, the poverty, unemployment and population loss statistics (on which basis the enterprise zones will be selected--this is discussed more extensively below) of these two tracts are lower than the rest of the proposed area. Including the two tracts would thus make our application less competitive. On what basis will the enterprise zones be designated? Only 100 total enterprise zones will be designated throughout the country. 33 of these will be rural districts, and 67 will be urban. They will be chosen entirely on the basis of the "distress" statistics provided for each area, including poverty rate, unemployment rate, low income households, and population loss. Nominated areas will be ranked, and the 100 most distressed areas will be designated. What resources are local povernments being asked to commit to the proposed entervrise zones? Although the enterprise zones will be chosen based entirely on the distress statistics discussed above, the legislation requires that each local government make a local commitment to pursue a "course of action" if the proposed enterprise zone is designated. The proposed course of action must include certain types of elements, along with guarantees that each element will be carried out. Four of the following six elements must be included. The first, third, fourth and fifth are recommended as Saint Paul's course of action, Please note that_ the recommended local commitment consists entirely of things we are alreadv doing or are intending to do in the near future an,�,�ay � � � � g� � ��c�� FEDERAL ENTERPRISE ZONE Q & A Page �ao (1) A reduction of tax rates. fees. or user char e�pplving within the enterprise zone. The current state enterprise zone (officially named the Saint Paul Riverfront Enterprise Zone) provides for tax reductions to eligible businesses. Only a small portion of the state zone is also included in the proposed federal zone (the Empire Builder Industrial Park area) ; however, this should be adequate to meet this requirement. (2) An increase in the level or efficiencv of public services within the enter�rise zone. (This element is excluded) (3) Actions to reduce. remove. simplify, or streamline paperwork requirements within the enterprise zone. To meet this requirement, the city will continue to pursue our "one-stop shopping" approach for business assistance, which is intended to reduce (or simplify) the process of complying with city regulations. (4) Involvement of public suthorities or private entities. organizations neighborhood associations. and community groups particularly those within the nominated area. including a written commitment to provide to employers. employees, and residents of the nominated area• i. Jobs and job trainin$: ii. Technical assistance: iii. Financial assistance: and iv,, Other assistance. To meet this requirement, the city will continue the NPP program, the new scattered site tax increment financing district, the URAP program (which substantially overlaps the proposed area) , and the city's first source requirements. The emphasis in the application will be on how the city works in partnership (through the above programs) with neighborhood groups and private sector interests to promote economic development. (5) The giving of special contract preference to businesses owned and operated bv members of anv minorit,� To meet this requirement, the city will continue to enforce its set-aside policies. (6) The gift (or sale at below fair market value) of surplus land in the enterurise zone to neighborhood organizations agreeing to operate a business on the land. (This element is excluded.) What is the state's role in nominating the enterprise zone? The federal enterprise zone legislation requires that local governments must submit the nomination application jointly with state governments. The state has the option of adding incentives to the local course of action, and must certify that they will commit to providing those incentives. Beyond continuing to provide tax credits to Saint Paul's existing enterprise zone, the State of Minnesota will not add any incentives to our local course of action. They will simply review and sign off on our application. ..�.�.�.......T.y...,,.........�........ . ..........�..�..T..�......T.....................�....... I � --,� N O � O o0 � � O � c'') �"-- O � � � �„ �--_ - ,... —J o � N � � o W , ,.,� — � � � E �, i � a,=^.� �, ,�...,. � ; ,— Q E � , � � o„�w �,.� � r� ,i �_—. 0 0 �•• t Q � ■co • . c� c� ...� •..... . P z ,� "��-- � � I M � � �u■�i�... . �,'.�, �..��'•..� : ��s � _ � G � ° ' �``' �� .; � � �,.......�, `�5 0M �� --- � ..` .� .�. r> >,e�� s�`' ''►•.. • 111 W �� r co ,d., _ : ,. cn Z M '� (`� � •� w 4 . � �y � � .o � �'1� : 1, � (O I„ - � � / N 0 � $ '_ � � p ,. � ('� .�•°' . � � LtJ Z � � � � ,A 0 � � � O � Y/ � � � � — � II �� M � m � . ° 'w --{ � ��.. �y = U �/J � � ,p„. M ^ o .� � Q _ p 's rn . V • ��,aoe-s c'� m � �p O o ' F— � Ch . :d .�. C7 i F— N ld e e � ■ U � M ■ � _ (� ` � - ..e,� - � � Q ■....r.�....�■■ . ■ �r rn: � � � �tl ~ Z � a �n - , • r c`� � ° _ ' � v� �--� Z � � � .,. . �«.a = Z (� � C'7 °�• • . � N Z � Z C� �p :� Z ¢ O W J � � Z �rj ,4 � U a �i Q . �'~ •I■• •:4; • ��i+c6�~ • J �_�� rn ca ■ ' � c�v c')' M � � i ii O 1 � ; (� �C� Ch ri � ■ ■ � C'7 ('� M [ O ,r,� ,M � i Q _ z: (D (D ('7 � t� �°e , � i M M (h � M, i(� � /� J� � Ziuuaaaa� . � � � V/ Q • ' � ■ s ■ C`� ar.a ..o3xc �� \ _ � i � � � l ��"�� ■ ..o� � � � . ^I '°` f7 �� N � V � ln � � • O �'•� a c,� _� ch � c'') M a0 � � `- � • � • _ ' .�d,,, Q � M (�� M � M � � ��• �—�,�� I i i � M �� •�� ° • ° � j��su��u��u�• —_1-MZiZ��tri?1 ■ TZi ■ � � � �it�nr��l' P � � �� • � O N � ••��• : � V� T N � • • • � c*' �J,,, O ' � � M N • • ('N7 ((� :� i� N /A CO V/ �osa��s � i� i� � Z -----• _ r � � , ,,. `° �n.�•a.s • N r �^ ('7 W ■ • co ¢ .d, � �n � .. � �— �cao M ♦ ♦ � � ,,..sn,. p �ch r V o : O� �11' � M : • N; — : ch� T - �,.,,,.. � � 2 � � M �� O W � � � ` • � em„a �(D . � S � � ■ �M 3 � � i��u�u��• •��.�f° � i� • �a,i�� • � :... � � • - � � i N � `� � � � .�!u� i� o . 1' • � T ; . . ,�' .. o..� � ��1-8� � . . . . . . �� /7� 7 Members: � Bill Wiison, chair�G°!�'/ uuri GITY OP` SAINT PAUL Tom Dimond �� OFFICE OF THE CITY COIINCIL Kiki Sonnen Date: October 26, 1988 WILLIAM L. WILSON COCT�mIIIeP� RPrpOrl MARK VOERDING CounCilman Legislative Aide . To: Saint Paul City Council From : Housing and Economic Development Committee Bill Wilson, Chair 1. Approval of Minutes - APPROVED - 2. Presentation - "Year of the Cities" NO COMMITTEE ACTION NECESSARY 3. Resolution for application for federal Enterprise Zone COMMITTEE RECOMMENDED APPROVAL, WITH AMENDMENT � 4. Resolution requesting the Planning Commission to conduct a study as to whether the Comprehensive Plan and/or Zoning Regulations srould be -amended as they relate to properties located within the area bound by White Bear Avenue, Third Street, Ruth Street and I-94, and that it report its findings and recommendations to the City Council (C.F. 88-1566) COMMITTEE RECOMMENDED TWO WEEK LAYOVER 5. Interim ordinance restricting new development in the area bounded by White Bear Avenue, Third Street, Ruth Street and I-94, pending completion of studies of possible amendments to the City's Comprehensive Plan and Zoning Regulations (C.F. 88-1561) COMMITTEE RECOMMENDED TWO WEEK LAYOVER 6. Letter of John Kerwin of Nicollet Restoration, Inc. requesting a hearing regarding the condemnation of Island Station located at 436 Shepard Road NO COMMITTEE ACTION NECESSARY � ��\� ,. �� <-R\ �� . � CTTY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 612/298-4646 8�46 WHI?E - CiTV CLEAK �INK �� - FINl.NCE • COUIICII BLUERY � MAYORTMENT GITY OF SAINT � PAUL File NO. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date RESOLUTION NOMINATING FEDERAL ENTERPRISE ZONE WITHIN THE CITY OF SAINT PAUL WHEREAS, the Housing and Community Development Act of 1987 includes Title VII, Enterprise Zone Development, as a new federal program; and WHEREAS, the purpose of the program is to encourage business to invest in distressed areas, thereby creating jobs and assisting in the economic revitalization of these areas; and WHEREAS, local and state governments may jointly nominate areas with conditions of pervasive poverty, unemployment and general distress for designation as federal enterprise zones; and WHEREAS, in order to nominate an enterprise zone area, state and local governments must commit to a local course of action to reduce various burdens . borne by employers and employees in the area; and WHEREAS, the Secretary of Housing and Urban Development will review nominations submitted by state and local governments to determine the adequacy of the course of action and will designate a maximum of 100 enterprise zones based entirely on rank order of distress; and WHEREAS, within the City of Saint Paul, census tracts 305, 314, 327, 328, 329, 336, 337, 340 and 355 display the highest distress levels in terms of persons in poverty, low income households, unemployment rate, and population loss; COUNCIL MEMBERS Requested by Department of: Yeas Nays Dimond i.ong In Favor Goswitz Rettman scne�ne� Against BY Sonnen Wilson Form Approved by City Attorney Adopted by Council: Date � Certified Passed by Council Secretary By gy. Approved by �Vlavor: Date Approved by Mayor for Submission to Council gy BY WHiTE - C�TV CIERK P�NK .' � FIN�NCE � G I TY � OF SA I NT PAU L Council CANARY - DEPARTMENT BLUE - MAVOR File NO. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date NOW, THEREFORE, BE IT RESOLVED, that the City of Saint Paul nominate an enterprise zone area consisting of census tracts 305, 314, 327, 328, 329, 336, 337, 340, and 355, and that in conjunction with the State of Minnesota, it submit an application for nomination to the Secretary of Housing and Urban Development; and be it further RESOLVED, that if the area is designated as an enterprise zone, the City of Saint Paul commits to a local course of action to reduce burdens borne by employers and employees in the area, as described in the application for nomination. , - 2 - COUNCIL MEMBERS Requested by Department of: Yeas Nays Dimond i.o� [n Favor Goswitz Rettman Sc6eibel A gai ns t BY Sonnen Wilson Form Approved by City Attorney Adopted by Council: Date ' ,Certified Passed by Council Secretary By ' By Approved by Mavor: Date Approved by Mayor for Submission to Council gy BY ��fl��\��f� ■y��1��A\nm•��t=1 ■ /��i*ffRi77�i?Tin T [ R�ZTftt��1�7tf7�tltRm*�ff�* _, E N � N o � o o ao '` � � o � M �---- o . -- � � � W E—�•;. ,, .. - N ..�.., � � o � � G � � E � i � .�...�. �, � � r Q . O O ±� 'L- N � C � � O. •- Q � o o • � • � � , M .S� :..... . �, �s` Z ^ � t ,�,�``� I ch • = C....,.+....�.,.��''••.. � � �� W ..�: o � . � O ��.�- �/ s y � : �tAU�� `� � . i : % � u.isa, � � '�trt mi---_ / Y � .I !O ' «. ¢ ,e.a � � �• N � I � � � M 3 Q � � ��F W � N �� d� . � 2p : V ° I `'� . � ''� ' ¢ 1� B ; : co . - . � C � ��.. � ,.��` ; w °z W - � «� 4.. ..- � E M o � ° � � � M o m � ,...,,.;, I � : ', z f-- � s.., � O '', � �I `"� ;._ ""' M ^ o 'V-' � � Q - � � � � � �n.o> s M m I-�- (p C'') . ,e,.... � : �„ • g - �,~j rN-� .e � Y' • � _ .. � � ° � . .' �• .a u,s = � N . , - � �, � � Z "fl�li...._;-..... .�... .�o. ..... �... . ... . � � o � '•�wn•a (ZI r � • � s«o•ve M Z v-• � C N • ; �� M ■ (n ~ {L � O ` T F � �� i .� , � Z ., � . .e._ ,. . C7 � '� ■ • , Z Z - .. �. - , �0 ' ��' Q Z -.R.,,,, � � 'N •� � LLJ �--� a - ...�-_.e.._y� ._-�. , .... �rj o.� M U � Q ''" ��:��i+r, •� � !`��e i J � � ,/� N ':'� �.;� . M : W ■ a � � _ � � � � t � �� : c°� c°h • .e,,.,., co ' : � • a � M • Q � _ �� N C'7 rC0 ';1 �� :.� � i � M � � �' .�. :� � /� i� ' uaaaaaa. � � V/ Q � • i. � � ` � : :� M .spn�. ,s .,o� �' � ` ir � I ■ �� ;� V■ r � O ��• •, N � N N C`7 ^•� C � ZO I� i M - ''is r. UC ('7� i ° C'� :C� C7 (`7 C7 � �` � � � : .�.o,-. � � Q '_" � - - ' � _-I � � ��. ��.. � ` ¢I i i . � •�� Y� i i�tia��u.�.��.�.��• �� ■�na ■ � � .: : ��.. ■ � O � ' � •��••• � � ,o /� 'w N � �� (� V� O • • � M N � . . •..,._ /� i N itO V♦ M M �� N .a...� � �(7 �C7 O � .�,.s• N T � ..,,. �,. � • W � i C") , � � M .• • , ° �� f� U • r � � : : �..�,. ' .,.,..,. p � M � T - o . o; M � �.,� . : cN� r - �., .., � ; : : r� �r) : p •,,, �y� - • � � .,,. " qp � , W Y i ' , C7 • i� 4 � � � � � �u��u��u ��.�. d �� .n.n� � � � � � . � �� ' � �N ^ � M �' � ,,,—�� '� fo N �' � co p T � � � �� E . • • .�: �. .. , - • ' : . FEDERAL ENTERPRISE ZONE Q b A October 26, 1988 Whv avvlv for Enternrise Zone Desismation? ' On the face of it, there appears to be no advantage to applying for federal ' enterprise zone designation. The legislation, as passed, does not provide for any federal monetary benefits for the zones. However, it is possible that monetary benefits will be added to the program sometime in the next year. Potential benefits cited in various articles on the subject include preference for job training grants, or special set-asides from HUD programs. How were the nrovosed boundaries chosen? The proposed boundaries are based on criteria established in the regulations for the program. The program requires that the proposed area be located within census tracts with a poverty rate of over 208. The area must also be contiguous. The proposed boundaries thus include all census tracts that meet these two requirements. There are two exceptions to this, however. The recommended boundaries exclude census tracts 342 (the downtown core) , and 361 (the entire riverfront area of the west side) , �which do technically meet the requirements discussed above. However� the poverty� unemployment and population loss statistics (on which basis the enterprise zones will be selected--this is discussed more extensively below) of these two tracts are lower than the rest of the proposed area. Including the two tracts would thus make our application less competitive. On what basis will the enterprise zones be designated� Only 100 total enterprise zones wi11 be designated throughout the country. 33 of these will be rural districts, and 67 will be urban. They will be chosen entirely on the basis of the "distress" statistics provided for each area, including poverty rate, unemployment rate, low income households, and population loss. Nominated areas will be ranked, and the 100 most distressed areas will be designated. � What resources are local Qovernments being asked to commit to the_pro�osed entesvrise zones? > �, Although the enterprise zones will be chosen based entirely on the distress statistics discussed above, the legislation requires that each local government make a local co�mitment to pursue a "course of action" if the proposed enterprise zone is designated. The proposed course of actioa must include certain types of elements, along with guarantees that each element will be carried out. Four of the following six elements must be included. The first, third, � fourth and fifth are recomsended as Saint Paul's course of action, Please note that the recommended local commitment consists entirely of thin�s we are alreadv doing or are intendint2 to do in the near future anvwav , � ' r I� .. . .. • FEDERAL ENTER.pRISE ZONE Q � A . Page T�,ro (1) � reduction of tax rat�s fees or user char�es avvlvine within the ente rise zone The cuzrent state enterprise zone (officially named the Saint Paul � Riverfront Enterprise Zone) provides for tax reductions to eligible businesses. Only a small portion of the state zone is also included in the proposed federal zone (the Empire Builder Industrial Park area) ; however, this should be adequate to meet this requirement. (2) An increase in the le�:el or ef�iciencv of vublic services within the enterpr�se zone (This element is excluded) (3) Actions to reduce. re�^ove simvlifv or streamline vaverwork reauirements within the entervrise zone To meet this requirement, the city will continue to pursue our "one-stop shopping" approach for business assistance, which is intended to reduce (or simplify) the process of complying with city regulations, � (4) Involvement of vublic ?uthorities or private entities organizations neiehbozhood associations and communitv roups particularly those within the norninated area includin a wr'tten commitment to rovide to emvlovers. emvlovees and residents of the nominated area ,� Jobs and joo trainine• iii Technical assistance• iii. Financial assistance: and v� Other assistance. To meet this requiremeat, the city will continue the NPP program, the new scattered site tax increment financing district, the URAP program (which substantially overlaps the proposed area) , and the city's first source requirements. The emphasis in the application will be on how the city works in partners'aip (through the above programs) with neighborhood groups and private sec�or interests to promote economic development. (5) The eivine of svecial contract �reference to businesses owned and operated bv members of anv minoritv To meet this requireme��, the .city will continue to enforce its set-aside policies. (6) The eift for sale at be'ow fair market value) of survlus land in the entervrise zone to nei=:�orhood or�anizations a reeine to overate a business on the land (This element is excluc.zd.) What is the state's role in r.ominatinQ the entervrise zone� � The federal enterprise zone legislation requires that local governments must submit the nomination application jointly with state governments. The state has the option of adding ince�tives to the local course of action, and must certify that they will commit to providing those incentives. Beyond continuing to provide tax credits to Saint Paul's existing enterprise zone, the State of Minnesota vill not add any incentives to our local course of action. They will simpTy :eview and sign off on our application.