TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing regarding an economic subsidy in connection with a Location Agreement with CRC Services, LLC, pursuant to California Government Code Section 53083; and
Authorize City Manager to execute all documents necessary to enter into a 30-year Location Agreement with CRC Services, LLC, located at 111 West Ocean Boulevard, for the establishment of a material and supply procurement company for California Resources Corporation (CRC). (Citywide)
DISCUSSION
In 1992, the City Council adopted the Retail Sales Tax Incentive Program outlining the policy for sales tax sharing to encourage the expansion of the City’s retail base, improve retail sales tax productivity and stimulate private investment in the retail sector of the City's economy. After launching this program, several successful agreements were entered into, resulting in a significant increase in retail sales activity. Successful projects include the retention of key Long Beach auto dealerships, including Hooman Toyota and Worthington Ford.
Based on the success of the Retail Sales Tax Incentive Program, the City later instituted another similar program intended to address retail sales. The new program was the Location Agreement Program (LAP), first used in 2008. LAP is designed to attract new businesses or retain businesses under certain criteria, create and retain jobs and enhance business-to-business sales tax revenue to the City. To qualify for assistance under the LAP, businesses would be required to generate sales in Long Beach in excess of $50 million annually. A LAP agreement would remit to an eligible business a negotiated portion of the local sales taxes generated by the business for an agreed upon period of time. Implementation of a location agreement often results in the establishment of a purchasing company.
City Council approval is requested to enter into a 30-year Location Agreement (Agreement) with CR...
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