TITLE
Recommendation to authorize City Manager to enter into a Memorandum of Understanding with the City of Signal Hill and the Spring Street Corridor Joint Powers Authority; a 15-year Sales Tax Sharing Agreement with the City of Signal Hill; and a 15-year Economic Development Agreement with Office Depot, City of Signal Hill, and LBSH Parcel I, LLC. (Citywide)
DISCUSSION
On January 24, 2012, the City Council authorized the City Manager to enter into a Location Agreement with Sales Center Development Concepts, which would have resulted in Office Depot locating an e-commerce sales office at an existing Office Depot location in the City of Long Beach. Subsequently, the City of Signal Hill contacted the City and requested that the two cities work cooperatively to maximize the benefit to both cities of the new e-commerce opportunity. Office Depot has proposed establishing an e-commerce call center facility in California to receive and process internet orders, and to handle phone calls for its California sales orders in order to be more responsive to its California customers. The e-commerce business is currently being handled out of several call center locations, both inside and outside the United States. Office Depot believes there is an opportunity to create California jobs and centralize processing for its California e-commerce orders at the new California call center facility. The new relationship is intended to preserve the City of Long Beach’s previously anticipated new sales tax revenues, as well as preserve the City of Signal Hill’s revenues.
In order to accomplish this, three interrelated agreements have been discussed between the various parties, which include the City of Long Beach, the City of Signal Hill, Office Depot, the Spring Street Corridor Joint Powers Authority, and LBSH Parcel I, LLC. LBSH Parcel I, LLC, is the owner of the property at 3366 E. Willow in the City of Signal Hill and 3500 E. Willow in the City of Long Beach. Both of thes...
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