HomeMy WebLinkAboutCC Reso 2014-08 RESOLUTION NO. 2014-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY, CALIFORNIA, ESTABLISHING PUBLIC PURPOSE GUIDELINES TO
DETERMINE THE EXTENT OF CITY PARTICIPATION IN A SALES TAX
SHARING AGREEMENT WITH THOSE BUSINESSES THAT ACHIEVE THAT
PUBLIC PURPOSE, IN COMPLIANCE WITH CATHEDRAL CITY MUNICIPAL
CODE 3.46, TO FURTHER INCENTIVIZE RETAIL DEVELOPMENT AND
BUSINESS EXPANSION
WHEREAS, the general welfare and material well-being of the residents of the City of
Cathedral City (the "City) depend in large measure upon the facilities, goods and services that
retail businesses make available to the public and the City's residents, which in turn, generate
tax revenues to the City to help pay for necessary services to support such retail services and
residents; and
WHEREAS, the opening, operation, and expansion of new and existing retail businesses
within the City may provide public benefit in addition to economic benefit and stimulate other
private investment in the community; and
WHEREAS, there may be extraordinary impacts upon a proposed or expanding
business that have deterred revenue generation; and
WHEREAS, the City desires to incentivize retail business development in the City
through tax sharing agreements regulated by Title 3, Chapter 3.46 of the Municipal Code ("Tax
Sharing Program); and
WHEREAS, the City desires to take into consideration public benefit in determining the
extent of its participation in a sales tax sharing agreement.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE
CITY COUNCIL FOR THE CITY OF CATHEDRAL CITY, AS FOLLOWS:
SECTION 1. FINDINGS
The City Council finds that substantial public benefit to the community may be achieved
by new or expanded businesses when a significant number of the following guidelines are
served by a public investment through tax sharing in conjunction with private investment in a
new or expanding retail business within the City:
1. The new or expanded business is not economically/financially feasible without the public
tax sharing investment.
2. The business provides an essential and critical service for residents and visitors.
3. The business provides a vital service at a desired location in the City.
4. The investment in the property will improve the visual quality of the architecture and
landscape in the City.
5. The investment will improve the parking, circulation, traffic or infrastructure in the area.
6. The property is burdened with an unusual amount or costs of public improvements.
7. The property improvements are likely to induce development investment in surrounding
properties.
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8. The business has suffered an extraordinary financial setback due to unusual
circumstances and delays with public improvement projects outside the City's direct
control.
9. The business will generate an appreciable increase in the number of higher paying jobs
and/or number of new jobs.
10. The business is providing an extra service or product that results in a substantial
community, environmental, or social benefit.
11. The business being located or expanded in Cathedral City results in a lower financial
return on investment than the industry standard on similar businesses.
12. The City will achieve an appreciable net gain in sales tax for a business of this size and
type.
13. The business expansion or relocation will have a significantly greater community impact
with a Tax Sharing Agreement than without it.
14. The business expansion or attraction would not have been considered by the proponent
without the Tax Sharing Agreement.
15. The immediate revenue return to the City exceeds the longer-range costs.
16. That operating covenants provide a substantially greater sales tax return during the
period of the operating covenants then the total amount of taxes shared with the
business as a result of the agreement during the period of the operating covenants.
SECTION 2. AUTHORIZATION TO SIGN RESOLUTION
The City Council authorizes the Mayor to sign this Resolution as the City's
representative.
SECTION 5. EFFECTIVE DATE
This Resolution shall become effective immediately.
SECTION 6. CERTIFICATION
The City Clerk shall certify to the passage and adoption of this Resolution; shall enter
the same in the book of original Resolutions of the City; and shall make a minute of passage
and adoption thereof in the records of the proceedings of the City Council of the City, in the
minutes of the meeting at which this Resolution is passed and adopted.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council for the City of
Cathedral City held on this 26th day of February, 2014, by the following vote:
Ayes:ewne coAbcfS itnvy,TcAcs ,lief—h ;t` luec�✓ P✓bTcm V5ututcz
Gila M.� $( PeK ci .
Noes: Y1Of-e_
Absent: note
Abstain: none,
i ■ / .J •
ATTE,'T: "": leen J. De •sa, a or
∎Agam:... _
Gary . Howell, C;y Clerk
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APPROVED AS TO FORM:
Charles R. Green, City Attorney
APPROVED AS TO CONTENT:
Leisa A. Lukes, B siness Development Manager
REVIEWED BY:
c7-712e/
Rode ck J. Woo , • anager
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