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R 4213 RESOLUTION NO. 4213 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE CREATING A GREEN BUSINESS ECONOMIC INCENTIVE PROGRAM FOR THE PURPOSE OF ENCOURAGING THE CREATION AND LOCATION OF "GREEN" BUSINESSES IN THE CITY WHEREAS, the City Council of the City of Arroyo Grande (the "City Councii") has determined that it is in the interest of the City to create a program to encourage the creation and location of new businesses in the City of Arroyo Grande that produce or sell products and/or services that are sustainable, enhance the environment or otherwise meet the standards of this Resolution and are considered to be a "Green Business"; and WHEREAS, the proposed Green Business Economic Incentive Program will provided economic incentives to attract Green Businesses to the City, and will provide a mechanism for designating areas of the City in which such businesses will be encouraged to locate in order to promote the use of the economic incentives and rebates in areas where they will achieve the maximum positive results; and WHEREAS, in order to facilitate the administration of the Green Business Economic Incentive Program the City Council has determined that the City Manager should be authorized to enter into Green Business Economic Incentive Agreements, provided that they are substantially in the form of an agreement that has been reviewed and approved by the City Council and that the agreement is in a form acceptable to the City Attorney; and WHEREAS, the City Council hereby finds and determines that the development of a Green Business Economic Incentive Program is consistent with the goals and policies of the City of Arroyo Grande General Plan and Redevelopment Plan, and will promote the substantial public purposes of enhancing the appearance of the City, eliminating blight, creating jobs, generating City revenue, and improving the environment and sustainability of the community. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: Section 1. The City Council hereby establishes a "Green Business Economic Incentive Program" (the "Program"). It is the purpose and intent of the Program to: 1. Encourage and assist Green Businesses (as further defined in this Resolution) to locate in the City of Arroyo Grande and succeed on a long-term basis; 2. By having Green Businesses locate and become established in the City, enhance the long-term economic well being of the community; RESOLUTION NO. 4213 PAGE 2 3. Encourage the redevelopment and/or rehabilitation of properties and structures in designated areas of the City, consistent with the policies and goals of the City's General Plan and Redevelopment Plan; 4. Attract Green Businesses to the City that create, market and sell products or services that will support City, State and Federai goals of achieving sustainability, enhancing environmental protection and conservation, improving air and water quality, and reducing climate change and dependence on foreign oil; 5. Encourage joint and cooperative efforts among property owners, businesses and public agencies to achieve desirable economic development goals and programs; 6. Consistent with the goals and policies of the General Plan and Redevelopment Plan, reduce or eliminate blighted conditions and enhance the aesthetic appearance and economic viability of the community; 7. Increase the availability of alternative products, equipment, fuel and supplies to residents, businesses and others in order to help achieve environmental quality and sustainability goals; 8. By implementing an innovative method, create a model program and provide leadership, to achieve local and national economic and environmental goals and policies; 9. Enhance the ability of the City of Arroyo Grande to access and secure grant funding from State, Federal and other agencies. Section 2. The City Council may, as it deems appropriate for the implementation and enhancement of the Program, designate by Resolution specified areas of the City to which the Program shall apply. The following area of the City shall be the initial area to which the Program appiies: EI Camino Real from East Grand Avenue to Oak Park Boulevard, as further set forth in Exhibit "A", the Green Business Economic Incentive Area Map. Section 3. For purposes of qualifying for participation in the Program, "Green Business" shall mean any business that City staff determines that satisfies the purposes and intent of the Program, and where the majority of the business' products and services consist of the production, sales or servicing of the following: 1. Alternative fuels; 2. Aiternative fuel vehicles or other non-fossil fuel powered modes of transportation; 3. Equipment, supplies, or services related to the production of renewable energy sources, including, but not limited to solar, wind, compressed natural gas, battery electric, tidal and biofuel; 4. Recycling or recycled products. 5. Energy conservation; 6. Water Conservation; 7. Water quality; 8. Air quality; 9. Organic farming; RESOLUTION NO. 4213 PAGE 3 10.Green building equipment, supplies, materials or services. Businesses shall submit an application to participate in the Program, and shall set forth in detail how they meet the purposes and intent of the Program. This may include demonstrating that over 65% of the business is devoted to the activities set forth in this Section, and that at least 65% of its net sales relate to the types of goods or services set forth herein. Any business that is declined approval to participate in the Program may appeal such determination to the City Council for its review. Section 4. Qualified businesses shall enter into a Green Business Economic Incentive Agreement with the City. Such agreements shall be executed at the time that a business license is issued. The City Manager is hereby authorized to execute such agreements in a form approved by the City Attorney. Green Business Economic Incentive Agreements shall provide that Green Businesses that locate in designated Green Business Economic Incentive Area(s) shall be eligible to receive: 1. For the first year of operation: a. Ninety percent (90.00%) reduction of City business license fees; b. Rebate of ninety (90.00%) of the portion of sales tax that is derived by the City from sales by the business; c. Rebate of ninety percent (90.00% of the amount of the tax increment portion of the increase in property tax that is derived by the Redevelopment Agency for the parcel where the business is located. 2. The second and third years of operation: a. Sixty percent (60.00%) reduction of Ciry business license fees; b. Rebate of sixty percent (60.00%) of the portion of sales tax that is derived by the City from sales of the business; c. Rebate of sixty (60.00°/a) of the amount of the tax increment portion of the increase in property tax that is derived by the Redevelopment Agency for the parcel where the business is located. 3. The fourth and fifth years of operation: a. Thirty (30.00%) reduction of City business license fees; b. Rebate of thirty percent (30.00%) of the portion of sales tax that is derived by the City from sales by the business. c. Rebate of thirty percent (30.00%) of the amount of the tax increment portion of the increase in property tax that is derived by the Redevelopment Agency for the parcel where the business is located. Section 5. Qualified businesses shall also qualify for and have the option of accepting a fifty percent (50.00%) reduction in all City development permit fees and up to a fifty percent (50.00%) reduction in development impact fees. Reductions in impact fees shall be subject to a determination by the City Manager that there are findings and determinations by City staff that the operations and/or nature of the Green Business is such that the burdens and impacts related to the fee have been reduced to the extent of RESOLUTION NO. 4213 PAGE 4 the fee reduction. The Green Business Economic Incentive Agreement shall be executed at the time of issuance of a building permit if these incentives are provided. Section 6. All rebates and reductions shall be contingent on the businesses continued operations in the City, and shail be subject to disbursement to the business owner within 60 days of the end of each full year of operation. In order to qualify for participation in the Program, the owner of the business shall not have owned or operated a business within the City limits of the City of Arroyo Grande for five years prior to seeking to establish the qualifying Green Business, that sold products or services that are substantially similar to those sold or proposed to be sold by the new Green Business. On motion of Council Member Arnold, seconded by Council Member Fellows, and on the following roll call vote, to wit: AYES: Council Members Arnold, Fellows, Guthrie, Costello, and Mayor Ferrara NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 11th day of August 2009. RESOLUTION NO. �{2t3 PAGE 5 ,. TONY F RA, MAYOR ATTEST: KELLY V1j TM RE, CITY CLERK APPROVED AS TO CONTENT: a EV N ADAMS, CITY MANAGER APPROVED AS TO FORM: TIM THY J. C EL, CITY ATTORNEY . :an,o cvaraoc �� • � • . � . . � . � - - ��t��1��• ��•j ` .� �:::::;:.� ��I►�� ♦ ♦ :.�1 • ♦:��/��I\� 1 s0 ♦ " ��Ir�� ,,'',4','1''1'�,,1 •• 1 111�� '■ , �� 1��1� � ,,' � -- �- � ��1� II� �II� � � 1 ,,,'� � ,� � S� •'��`•�•, ,;'��iiq ■ ��,1',, ,' ,,,`1 �1�,��,�j��,1��;o• � � ,, �,� ` ��i► ��.,� ♦li //�� ♦ ♦ ` � � �� ♦♦ n �b,�i� `, � ♦ �II �I��j� •i1�i�v,+..'•.'• � ' �' ��,, , ��I/i��Ijj�:��•�iI � ��i�i 1111:Iliii��•�. � ��Ij��'� ............ ��'i E►►11111�::��''��•�� :: :�`i� .:� �p �� i� ' �. .�� i �� ' . �� 1� �� mmummn� �i�� ,�� p � �:��i� � � �� /I\�� ,�� "�� ` � • �� ..�' �,�,;:> ,;� � Ir -� : :: ;,�.�_ = -:::�.::: �-%.� ;,,,,,.� , � ..I■ .� =�:� : : •;.�-•� ►``,,o�• ,p��. �f.. ■I.I��i ■-�•�,��I�� ,v�� —. � �� ••., •• � o�� ob� �o .� ., .. i♦ �� ■ !►,� If�:, .•,� ��o��v��°��`` ��1 � � � �� i �p��I, f��. '�0��`,�� '�� ni .�� j� I��.Iji� � , ��s �� :: �� ,� nn..-- --- ......�II�._ Iil�i�_ �� ..,.�i ��. OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 4213 is a true, full, and correct copy of said Resolution passed and adopted at a Regular meeting of the City Council/Redevelopment Agency of the City of Arroyo Grande on the 11�' day of August 2009. WITNESS my hand and the Seal of the City of Arroyo Grande a�xed this 12�h day of August 2009. KELLY MORE, CITY CLERK