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CITY COUNCIL AGENDA ITEM NO. 10

Meeting Date: August 14, 2001

Subject/Title: Authorize the City Manager to execute a contract with McGill Martin Self, Inc. to assist the City in the preparation as an application to the Inter-Regional Partnership for designation of an Opportunity Zone.

Submitted by: Howard Sword, Economic Development Director

Approved by: Jon Elam, City Manager


RECOMMENDATION: 

Authorize the City Manager to execute a contract with McGill Martin Self, Inc. (MMS) not to exceed $45,000 to assist the City in the preparation of an application to the Inter-Regional Partnership (IRP) for designation as an Opportunity Zone.

PREVIOUS ACTION:

 None.

BACKGROUND

The Inter-Regional Partnership, created by AB 2864, is the entity that awarded the City a $100,000 grant for economic development marketing that we applied for in January 2001. The second phase of the program is the designation of at least five and no more than ten Opportunity Zones in the counties of Santa Clara, Alameda, Contra Costa, San Joaquin and Stanislaus. There are two Zones allotted to each county although the IRP may choose to allocate all of a county’s resources in one Zone. There is $5M in cash grants allocated to each county which is significant. Potentially more important, however, are other legislative actions that could empower the Opportunity Zones more effectively. Some of the potential tools being discussed are (1) the use tax increment to repay infrastructure investment, (2) powers now granted in Enterprise Zones and (3) priority status by the Infrastructure Bank. 

Brentwood has formally discussed preparing a joint application with Antioch and Oakley. Staff met to discuss a potential process and agreed that there were not sufficient in-house resources to prepare the application and a consultant should be contacted for a proposal to do the work. Brentwood volunteered to take the lead and contacted MMS for a proposal.

Please find attached two proposals from MMS dated August 1 and August 2, 2001 respectively. Both proposals emphasize the competitive nature of the application process and the necessity to play to win. The other common element is the deadline of October 15, 2001, which presents a very constrained timeline. The proposal dated August 1, 2001 contemplates a joint application of the three cities and discusses the following problematic issues.

q Joint Powers Agreement: This agreement would have to clearly define how the Joint Powers Authority (JPA) would operate, who would staff it, how it would be paid for, how the benefits would be shared, how it would act toward the specific City governments, how it would handle disputes among the Cities involved, how the Cities would pay for the up-front proposal and formation costs, and how it would assist specific development applications. MMS believes it would also have to be agreed upon and adopted by the three City Councils prior to the application submission to demonstrate the commitment of the three Cities to the proposal. Adopting this type of agreement in eight weeks probably is not possible and would have to take place simultaneously with the application.

q City Commitments: There will be many decisions that will have to take place in the course of the application. This process would be difficult for departments within a single city. The difficulty is greatly magnified with three cities needing to come to agreement on technical issues within the time frame constraint.

The second proposal from MMS dated August 2, 2001 contemplates assisting only Brentwood in an application. The level of service to achieve the schedule is substantial but far more straight forward because (1) we will only have to focus on application issues and (2) we can make all decisions in-house.

The Economic Development Sub-Committee reviewed this matter and recommends that we pursue the application alone because of the extremely tight time frame. In the event that a joint application is prepared with the cities of Antioch and Oakley these funds may be used for that purpose.

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