| | | | | | | | 
AGENDA REPORT
|
| | | | | | | | DATE:
| April 6, 2021
| TO:
| Mayor and City Council
| FROM:
| Stefan T. Chatwin, City Manager
| | SUBJECT: | Public Hearing; and Consideration on Any Written or Oral Comments on the Information Contained in Reports for Each Economic Development Subsidy Provided by the City Pursuant to Government Code Section 53083
|
|
| | | | | | | | | RECOMMENDED ACTION | | Hold public hearing; receive reports. |
|
| | | | | | | | | STATEMENT OF ISSUE | | The City previously provided various economic development subsidies to private entities within the City. Government Code 53083(d) requires the City to prepare a report for each economic development subsidy within five years after granting an economic development subsidy and make that information available on the City’s website. Under Government Code section 53083(e), the City shall also hold a public hearing within five years after granting an economic development subsidy to consider any written or oral comments on the information contained in the reports prepared pursuant to Government Code section 53083(d). |
|
| | | | | | | | | DISCUSSION | The City previously approved the following economic development subsidies in the amount of $100,000 or more for each entity, for the purpose of stimulating economic development within the City limits:
• Canon Station LLC: A loan in the amount of $1,546,385 to develop Canon Station Development in northeast Fairfield. The loan is made at 3.5% per annum and must be paid in full by April 1, 2022 or immediately prior to the recordation of the first final subdivision map of the real property in the City’s Planning Area 5.
• MRO Integrated Solutions, LLC (“MROIS”): Beginning March 19, 2015 and ending March 31, 2018, the City rebated MROIS 50% of Sales and Use Tax generated by MROIS for the first 18 months of the subsidy term. Thereafter, the City rebated to MROIS 50% of any amounts of Sales and Use Tax generated by MROIS that exceeded $750,000 in each Fiscal Year up to March 31, 2018.
• Pellarin Enterprises: A loan in the amount of $411,255 at 5% interest per annum. The City received a total of $102,813.60 in interest payments, and the loan was paid in full on January 9, 2020.
• S & S Tool and Supply, Inc., dba S & S Supplies: Beginning April 16, 2014 and ending March 31, 2018, the City rebated S &S 50% of Sales and Use Tax generated by S & S for the first 18 months of the subsidy term. Thereafter, the City rebated to S & S 50% of any amounts of Sales and Use Tax generated by S & S that exceeded $750,000 in each Fiscal Year up to March 31, 2018.
• Victor Ferrante, dba Formaggi Di Ferrante: A loan in the amount of $125,000 to purchase equipment used in the manufacturing and distribution of cheese and cheese products. The loan was used to purchase manufacturing equipment for a new location in the City. The economic subsidy was provided on January 23, 2015 and paid in full on October 14, 2020.
A report required by Government Code 53083(d) has been prepared for each of the above economic development subsidies. In some cases, more than five years has passed due to changes in City staffing. City Staff now seeks to remedy that oversight through these reports.
Under Government Code section 53083(d), the City shall hold a public hearing to grant any written or oral comments on the information contained in the reports.
No formal action is necessary by the City Council to approve these reports.
|
|
| | | | | | | | | FINANCIAL IMPACT | | There are no direct financial impacts to the City for holding this public hearing. |
|
| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | This public hearing is a ministerial act required by Government Code section 53083(e). As funding as already been approved for each of the listed economic subsidies, this hearing is mandated by statute to give the public an opportunity to provide written or oral comments on the reports provided for each economic subsidy.
|
|
| | | | | | | | | ALTERNATIVE ACTION | This hearing is required under Government Code section 53083(e).
|
|
| | | | | | | | | COORDINATED WITH | City Attorney's Office
|
|
| REVIEWERS: | | Reviewer | Action | Date | | Gassaway, David | Rejected | 3/23/2021 - 10:48 AM | | Dalman, Dwayne | Approved | 3/24/2021 - 12:27 PM | | Gassaway, David | Approved | 3/24/2021 - 3:13 PM | | Alexander, Amber | Approved | 3/25/2021 - 3:02 PM | | Alexander, Amber | Approved | 3/25/2021 - 3:03 PM |
|
|