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SUBJECT: <br />DATE: <br />RESOLUTION 35, SERIES 2015 <br />JUNE 2,2015 <br />PAGE 2 OF 3 <br />The company meets the general criteria by which assistance may be granted in <br />accordance with the Business Assistance Policy. The company's average wages are <br />significantly higher than the County average wage. The assistance would be funded by <br />permit fees, construction use tax and consumer use tax from the construction of the <br />tenant improvements at the project location. <br />City staff estimates AquaHydrex will generate new revenue of approximately $742,000 <br />from building permit fees, construction use taxes, and consumer use taxes directly to <br />the City, given the investment described above. Approximately $103,000 of that amount <br />is fees designated for Open Space and Historic Preservation purposes. <br />Based upon the estimated revenue projection, staff recommends the following: <br />Proposed Assistance <br />Building Permit -Fee Rebate <br />75% rebate on permit fees for tenant finish <br />(Excludes tap fees) <br />Building Use Tax Rebate <br />75% rebate on Building Use Tax for core and shell and <br />Tenant finish (excludes 0.375 % Open Space tax <br />and 0.125% Historic Preservation tax) <br />Approximate <br />Value <br />$12,500 <br />$16,400 <br />Consumer Use /Sales Tax Rebate on durable goods <br />75% rebate on Consumer Use Tax /Sales tax paid on <br />Durable goods through June 30, 2017 $450,000 <br />Total Estimated Assistance $478,900 <br />Staff suggests the assistance be provided at 75% of the actual Building Permit Fees, <br />construction use taxes, and consumer use taxes for the project. The agreement is <br />void if the company does not complete the improvements by June 30, 2016, or does <br />not remain in business there for five years. <br />FISCAL IMPACT: <br />The total fiscal impact would be a total of 75% of the City's permit fees, 75% <br />construction use taxes paid (excluding the 0.375 % open space tax, 0.125% Historic <br />Preservation tax, water and sewer tap fees, and impact fees), and 75% of the consumer <br />use taxes on purchases based on the costs associated with the relocation project. As <br />noted above, staff estimates the value of the assistance over the term of the agreement <br />to likely be $478,900, but could be higher if the Company invests more than $20 million <br />in durable goods subject to Use /Sales Tax and the resulting rebates to the Company for <br />CITY COUNCIL COMMUNICATION <br />46 <br />