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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />NOVEMBER 20, 2018 <br />TITLE: <br />AUTHORIZATION TO PROCEED WITH <br />PILOT PROJECT WITH SCAG TO <br />ANALYZE ESTABLISHMENT OF <br />POTENTIAL FINANCING DISTRICTS <br />FOR INFRASTRUCTURE PROJECTS <br />(STRATEGIC PLAN NO. 6, 1) <br />J <br />CI ANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1. Authorize the City of Santa Ana to proceed with participating in a Pilot Project with the <br />Southern California Association of Governments (SCAG) and Kosmont Companies to <br />evaluate the feasibility for implementation of an Enhanced Infrastructure Financing District <br />(EIFD), Community Revitalization Investment Authority (CRIA), or a similar tool to assist in <br />funding future infrastructure projects and help spur private facility investment. <br />2. Approve attached map as study area boundaries for the Pilot Project. <br />DISCUSSION <br />On January 1, 2015, Senate Bill (SB) 628 was enacted giving cities the authority to establish new <br />governmental entities called Enhanced Infrastructure Financing Districts (EIFDs). EIFDs are <br />financing tools that are designed to fund sustainable infrastructure and the construction or <br />rehabilitation of other private facilities. After the repeal of redevelopment in 2012, the tool for <br />capturing growth in property tax was eliminated giving cities less flexibility in borrowing against <br />future growth in property taxes to fund public infrastructure and other improvements to enable <br />private investment. <br />Similar to Redevelopment, the projects within an EIFD are funded with property tax increment of <br />consenting taxing entities (exclusive of school districts). With the dissolution of Redevelopment <br />and limited financing tools to fund both public and private facilities, EIFDs may provide a <br />necessary funding source to meet the needs of the city's aging infrastructure and continue the <br />development momentum that is underway in Santa Ana. <br />Another potential financing mechanism is the establishment of a Community Revitalization and <br />Investment Authority (CRIA). Similar to EIFD's, both are public entities separate from the city <br />that established them and can finance a wide -range of public and private projects. One of the <br />2913-1 <br />