AGENDA CAPTION:
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Consider approval of Resolution 2015-94R approving a Chapter 380 Economic Development Incentive Agreement with Amazon.com.kydc LLC, providing incentives in the form of annual refunds of 85 percent of ad valorem taxes generated from personal property and 40 percent of ad valorem taxes generated from real property over ten years, with a possible extension for an additional five years, and a portion of sales tax revenues over twenty years, to locate and operate a fulfillment center on McCarty Lane; authorizing the City Manager to execute said agreement; and declaring an effective date.
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Meeting date: July 21, 2015
Department: City Manager
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CITY COUNCIL GOAL: Economic Vitality and Responsible Finances
COMPREHENSIVE PLAN ELEMENT(s): Economic Development Goal 4: An enhanced and diverse local economic environment that is prosperous, efficient and provides improved opportunities to residents.
BACKGROUND: The City seeks to promote local economic development and to stimulate business and commercial activity in the City by, among other things, entering into Economic Development Incentives Agreements as provided under Chapter 380 of the Texas Local Government Code.
Amazon.com.kydc LLC is an electronics products and internet retail sales company with distribution and fulfilment centers in locations in the United States and other countries. The Company proposes to locate, operate and retain an approximately 855,000 square foot fulfillment center, with approximately 350 new jobs, a capital investment of approximately $60 million in building improvements, and approximately $131 million in personal property, furniture, fixtures, equipment and inventory at the project site in San Marcos.
The City wishes to induce the Company to establish its fulfillment center in the City, as doing so would benefit the City through the creation of new jobs and the...
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