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CITY COUNCIL AGENDA ITEM NO. 10

Meeting Date: August 9, 2005

Subject/Title: Adopt a Resolution approving the update and expansion of criteria for the Jobs Creation Program Funds

Prepared by: Linda Maurer, Economic Development Manager

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Adopt a Resolution approving the update and expansion of criteria for the Jobs Creation Program Funds.

PREVIOUS ACTION
No previous action regarding this item.

BACKGROUND
On August 10, 1999, Council approved Resolution 99-185 adopting specific criteria for the Job Creation Program fund. This Program provides loans, forgivable in some cases, from the City to qualifying businesses that create jobs in Brentwood, as well as provide loans to assist in the payment of City fees relating to infrastructure. The eligibility for the program would be evaluated by the Economic Development Sub-Committee on a case-by-case basis, and the conditions of the loan are negotiated separately for proposals meeting a series of defined criteria.

The existing criteria fall into three general categories for consideration. Each item under the Jobs and Facility category is worth one to five points. The highest rating possible in the Jobs category is 10 points and the highest rating possible in the Facility category is 10 points. The highest total rating is 20 points. The items listed under the Program Structure will be used as factors in negotiating qualified proposals. The current criteria are as follows:

Jobs
• Manufacturing employment is a high priority.
• Research and development employment is a high priority.
• Average wage compensation of $12 per hour or higher per employee with benefits is a high priority.

Facility
• Businesses that own their building will be given preference.
• Businesses locating in the Downtown or other Redevelopment Areas will be given preference.
• Businesses with long-term building lease will be considered.

Program Structure
• Using the local PIC as a hiring resource is a priority.
• Employing Brentwood residents is a priority.
To date, four businesses and/or developments have taken advantage of the program, the most recent was in March 2003.

Staff would like to continue the program, but is interested in updating and expanding the criteria for the use of funds, in order to take full advantage of the opportunity to attract new business to this community, which has been stated as a Council goal in its two-year plan.

Updated Criteria
Staff recommends the following updates/additions to the criteria:

Jobs Criteria:
Add: Office employment is a high priority.
Change: Average wage compensation from $12 per hour or higher per employee with benefits is a high priority.
to
A minimum of 30 percent of front-office/white collar workers is a high priority.

Facility Criteria:
Change: Businesses that own their building will be given preference.
to
Business that are purchasing their own building or that already own their building will be given preference.

Program Structure:
No changes

Expanded Criteria
In addition to the updated criteria, staff would like to include an internal category for consideration. The Internal Use of Funds category would establish criteria that enable certain projects and/or activities to be considered for grant funding out of the Job Creation program. The determination of eligibility in this category would not be subject to the point system assigned in the Jobs and Facility categories. However, these specific activities would be subject to review and consideration by the Economic Development/Redevelopment Sub-committee for eligibility. The only eligible projects/uses considered under this category would be internal to the City of Brentwood.

Internal Uses of Funds:
• Specific projects and/or activities conducted by the City to encourage job creation or the development of employment centers, including but not limited to, funding of consultant/professional service agreements and funding of marketing/outreach programs.

FISCAL IMPACT
Currently, the vast majority of Economic Development funding comes from the General Fund. The Internal Use of Funds category will relieve the General Fund of some of the obligation to pay for services, agreements or contracts relating to job creation activities.

Attachments
Resolution

RESOLUTION NO.

A RESOLUTION APPROVING THE UPDATE AND EXPANSION OF CRITERIA FOR THE JOBS CREATION PROGRAM FUNDS.

WHEREAS, On August 10, 1999, the City Council approved Resolution 99-185 adopting specific criteria for the Job Creation Program fund; and

WHEREAS, this Program provides loans, forgivable in some cases, from the City to qualifying businesses that create jobs in Brentwood, as well as provide loans to assist in the payment of City fees relating to infrastructure; and

WHEREAS, the eligibility for the program is evaluated by the Economic Development Sub-Committee on a case-by-case basis, and the conditions of the loan are negotiated separately for proposals meeting a series of defined criteria; and

WHEREAS, the current criteria requires updating in order to take full advantage of the opportunity to attract new business to Brentwood, which has been stated as a Council goal. These updates include:

Jobs Criteria:
Add: Office employment is a high priority.
Change: Average wage compensation from $12 per hour or higher per employee with benefits is a high priority.
to
A minimum of 30 percent of front-office/white collar workers is a high priority.

Facility Criteria:
Change: Businesses that own their building will be given preference.
to
Business that are purchasing their own building or that already own their building will be given preference.

Program Structure:
No changes

WHEREAS, in addition to the updated criteria, The Internal Use of Funds category would be established to enable certain projects and/or activities to be considered for grant funding out of the Job Creation program; and

WHEREAS, the determination of eligibility in this category would not be subject to the point system assigned in the Jobs and Facility categories, but would be subject to review and consideration by the Economic Development/Redevelopment Sub-committee for eligibility. The only eligible projects/uses considered under this category would be internal to the City of Brentwood.

Internal Uses of Funds:
• Specific projects and/or activities conducted by the City to encourage job creation or the development of employment centers, including but not limited to, funding of consultant/professional service agreements and funding of marketing/outreach programs.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood hereby approve and adopt the updated and expanded criteria for the Jobs Creation Program.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on 9th day of August 2005 by the following vote:

City Administration
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