HomeMy WebLinkAbout55C - RESO - HIS PRES TAX CREDITREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 2, 2014
TITLE:
RESOLUTION URGING THE GOVERNOR
TO SIGN ASSEMBLY BILL 1999 (ATKINS),
THE CALIFORNIA ECONOMIC
DEVELOPMENT AND HISTORIC
PRESERVATION TAX CREDIT ACT
CITY I ANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1 ' Reading
❑ Ordinance on 2 n Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Adopt a resolution urging the Governor of the State of California to sign Assembly Bill 1999
(Atkins), which would create an income tax credit for the preservation and reinvestment into historic
properties throughout the State.
DISCUSSION
AB 1999 will grant necessary tax credits that will allow for a community reinvestment program
resulting in the creation of jobs, improvement of the economy and incentives for communities to
invest in the restoration and rehabilitation of their historic buildings. Historic rehabilitation tax
credits will spur private and public investment in historic buildings and will generate much needed
construction jobs. Revitalizing historic buildings is an investment to the state as it will attract new
businesses, visitors and will stimulate retail sales through income from jobs, sales tax, property
taxes and income taxes.
Historic preservation is important as it allows residents and visitors to experience the cultural,
educational, social value of the City's history. The City of Santa Ana has a rich and diverse set of
heritage properties that represent different themes during the development of the community and
staff believes this important bill will give the City the tools necessary to continue to preserve these
historic and treasured dwellings.
STRATEGIC PLAN
Approval of this item allows the City to meet Goal #3 Economic Development, Objective #3,
Promote a solutions -based customer focus in all efforts to facilitate development and investment in
the community, Strategy C, Explore opportunities to encourage a business friendly environment
within the city through the reduction of non - essential regulatory requirements, improved
coordination between agencies for development review and addition of monetary incentives.
FISCAL IMPACT
There is no fiscal impact associated with the adoption of the proposed Resolution.
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RESOLUTION NO. 2014 -XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
INSUPPORT OF ASSEMBLY BILL 1999 (ATKINS), THE CALIFORNIA
ECONOMIC DEVELOPMENT AND HISTORIC PRESERVATION TAX
CREDIT ACT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
WHEREAS, the California Economic Development and Historic
Preservation Tax Credit Act, Assembly Bill 1999 (Atkins), would establish an
incentive for economic development through the rehabilitation of historic
buildings, and
WHEREAS, currently, the 20% Federal Historic Preservation Tax
Incentives program, available to California's income - producing historic
properties, has generated nearly $1.5 billion dollars in investment during the last
10 years; and
WHEREAS, the Assembly Bill would provide a state income tax credit
equal to 25% of approved expenses on rehabilitation of structures listed in the
National Register of Historic Places or the California Register of Historical
Resources, both income - producing and non - income producing buildings, which
could be used together with the 20% federal credit or separately, depending on
the project and specific regulations, along with a 5% additional credit that would
apply for projects containing a majority of low- income housing units, involving
surplus government properties, or located in economically distressed areas,
Base Realignment and Closure Act zones or Transit - Oriented Development
areas; and
WHEREAS, the projects will stimulate public and private investment,
rehabilitation expenditures must meet specific criteria, to be screened by the
California Governor's Office of Business and Economic Development ( "Go Biz ")
to demonstrate return on investment to the state; and
WHEREAS, the Assembly Bill will incentivize economic development and
create construction and building industry jobs, enhance state tax revenues
through economic activity, increase local revenues through increased property
values, sales tax, and heritage tourism, stimulate the economy and sustainable
development, and preserve the rich heritage of California communities; and
WHEREAS, the Assembly Bill could be combined with other tax credits
and incentives to leverage additional funding, including federal tax incentives and
Resolution No. 2014 -XXX
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housing credits, to bring historic buildings up to code, increase energy efficiency,
and provide for adaptive reuse while preserving the building's historic features, to
use affordable housing credits to help low- income tenants with housing costs,
and incentivize existing property owners in historic districts to rehabilitate their
properties; and
WHEREAS, similar incentives are used in more than 30 states to pay for
initial rehabilitation costs; and
WHEREAS, the California program would be a powerful tool to assist
economically depressed urban areas with continued economic development in
light of diminishing redevelopment dollars, while stimulating public and private
investment, and celebrating and preserving California's heritage;
WHEREAS, the Assembly Bill is supported by the California Preservation
foundation, California Chapter of the American Institute of Architects, leading
preservation organizations, property owners, developers, affordable housing
advocates and builders;
WHEREAS, there are over 600 historic properties in Santa Ana,
California, including individual historic properties on the City's Historical Register,
and those within the three national register historic districts that could benefit
greatly from these incentives;
NOW, THEREFORE, BE IT RESOLVED,
Section 1. The City Council of the City of Santa Ana hereby proclaims its support
for the passage of AB 1999, the California Economic Development and Historic
Preservation Tax Credit Act.
Section 2. This Resolution shall take effect immediately upon its adoption by the
City Council, and the Clerk of the Council shall attest to and certify the vote
adopting this Resolution.
ADOPTED this 2nd day of September, 2014.
Miguel A. Pulido
Mayor
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APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
Sonia R. Carvalho
City Attorney
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of Council, do hereby attest to and certify the attached
Resolution No. to be the original resolution adopted by the City
Council of the City of Santa Ana on 2014.
Date:
The Clerk of Council
City of Santa Ana
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Resolution No. 2014 -XXX
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