TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing regarding an economic subsidy in connection with a Community Service Agreement under the Capital Investment Incentive Program (CIIP) and with Weber Metals, Inc., pursuant to California Government Code Section 53083;
Adopt resolution to establish a City Capital Investment Incentive Program (Citywide); and
Approve and authorize the execution of a Community Services Agreement between the City and Weber Metals, Inc. (Weber), to provide for the terms and conditions for payment. (District 9)
DISCUSSION
With the elimination of both redevelopment and enterprise zones, cities in California are trying to find ways to assist businesses wishing to locate or expand in their communities. With this in mind, the State of California has established the Capital Investment Incentive Program (CIIP), which allows companies that meet certain criteria to be eligible to receive some assistance with their property tax. The eligible companies must be in manufacturing, aerospace, or alternative energy production.
The CIIP is a State program that mirrors the City’s Sales Tax Incentive Program. Similarly, the CIIP establishes a property tax base that must be achieved before any subsidy can be considered. The property tax base established in the CIIP is the sum of the existing property tax base, plus the ad valorem value of the next $150 million in investment. The CIIP provides for sharing of property tax above the base at 75 percent to the property owner and 25 percent to the City over a period of 15 years.
Any city or county seeking to offer assistance under the CIIP must first adopt a Resolution by its governing body authorizing its staff to work with the State of California in participating in the CIIP and offering this incentive to qualified businesses. Companies seeking assistance under the CIIP must make a written request to the City, provide a detailed description of the inv...
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