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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 5, 2013 <br />TITLE: <br />RESOLUTION ADOPTING THE NEW <br />PROPOSED TARGET EMPLOYMENT <br />AREA FOR THE ENTERPRISE ZONE <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />112=i71W <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Approve a resolution for the updated Target Employment Area in the Enterprise Zone. <br />DISCUSSION <br />A Target Employment Area (TEA) is an area within a city that is composed solely of those census <br />tracts that have at least fifty -one percent of its residents at low or moderate income levels. Its <br />purpose is to encourage businesses in an Enterprise Zone (EZ) to hire eligible residents from <br />these local geographic areas. The incentive for these businesses is the availability of a tax credit <br />for hiring these residents. <br />Although Enterprise Zones are being eliminated as of December 31, 2013 pursuant to recently <br />enacted legislation (Assembly Bill 93 and Senate Bill 90), EZ's will still be able to process vouchers <br />for the remainder of the year and possibly into 2014 for employees hired in 2013. In order for staff <br />to continue issuing vouchers based on TEA criteria, Santa Ana is required to update its current <br />TEA. <br />To establish a TEA, an EZ must submit an annual application for TEA designation to the State of <br />California's Housing and Community Development Department (HCD). The application must <br />clearly identify the TEA census tracts that have been provided by HCD and must include a certified <br />resolution approving the boundaries of the TEA. <br />FISCAL IMPACT <br />This is no fiscal impact associated with this action. <br />55B -1 <br />