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I:mfmlMM <br />800 17"' St. NW I Washington, D.C. 20006 1 T 202.955.3000 1 F 202.955.5564 <br />Holland & Knight LLP I w .hklawxom <br />Memorandum <br />Date: <br />February 13, 2017 <br />To: <br />Gerardo Mouet, City Manager <br />From: <br />Dan Maldonado, Senior Policy Advisor <br />Leslie Pollner, Senior Policy Advisor <br />Re: <br />Federal Update <br />This memo provides a brief overview of Holland & Knight's work with the City of Santa Ana in <br />2016. In addition, this memo highlights important federal actions taken at the end of 2016 and in <br />the beginning of 2017 that impact the City's priorities. <br />I. Progress to Date <br />2016 Accomplishments <br />In 2016, the Holland & Knight (HK) team made significant progress on several of the City's key <br />issues, including: <br />Empowerment Zone: Empowerment Zone tax incentives were extended by the 2015 Tax <br />Extenders package passed by Congress in December 2015. This includes the <br />empowerment zone hiring tax credit that was nearly eliminated in the previous session of <br />Congress. While the tax extender package was not addressed in fiscal year (FY) 2016, we <br />anticipate them being addressed in 2017, potentially as part of tax reform. <br />• Streetcar: The President's FY 2017 Budget included $125 million for the Santa <br />Ana/Garden Grove in New Starts funding. This is a critical step in the process as the City <br />and OCTA work to secure a Full Funding Grant Agreement with US DOT. In addition, <br />we worked with Sen. Feinstein's office to have the Santa Ana streetcar included in her <br />letter of support to the Office of Management and Budget. Additionally, the Senate FY <br />2017 Transportation, Housing and Urban Development (THUD) appropriations bill <br />included funding for the Streetcar ($250 million to be divided among three California <br />projects) and the House THUD bill included $75 million for the project. The FY 2017 <br />appropriations bill, which includes transportation spending, could end in a full year <br />continuing resolution (CR), meaning that FY 2016 funding levels will be extended. <br />Meanwhile, the FY 2018 appropriations process is expected to begin this spring. H&K <br />will be monitoring the appropriations process closely to advocate for streetcar funding. <br />Exhibit 2 <br />