TITLE
Recommendation to authorize City Manager to enter into a 20-year Location Agreement with General Petroleum Corporation. (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 our 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 Coast Cadillac and Worthington Ford.
Based on the success of the Retail Sales Tax Program, it is recommended that the City adopt a Location Agreement Program. The proposed Location Agreement Program is designed to attract new businesses, create jobs and enhance business-to-business sales tax revenue to the City. To qualify for assistance, new businesses would be required to generate sales in excess of $50 million annually. The sales performance of these businesses would have to be verified by a business evaluation, which would include at least a three-year sales performance analysis. The program would return to an eligible business a negotiated portion of the sales taxes generated by it for an agreed upon period of time.
City Council approval is requested to enter into a 20-year Location Agreement (Agreement) with General Petroleum Corporation (General Petroleum). General Petroleum is a distributor of petroleum products and services to customers throughout the West Coast.
Products and services include marine and commercial fuel distribution, commercial fleet fueling and lubricant blending, and specialized lubricant sales to industry. General Petroleum also provides services such as lubrication analysis, remote tank monitoring, equipment programs, fuel management options and real-time fleet fueling information.
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