Item 20: Chapter 380 Economic Development Incentive Agreement

[COSM_Admin]

Consider approval of Resolution 2021-157R, approving a Chapter 380 Economic Development Incentive Agreement with Whisper Industrial 2019 QOZB, LLC, providing
incentives in the form of refunds of a percentage of real and personal property taxes over three years for the lease of a minimum of 90,000 square feet of space at 1225 Fortuna Road; authorizing the City Manager, or his designee, to execute said agreement; and declaring an effective date.

 

[MDerrick]

Does the 380 include a requirement that they are "certified sustainable" company or not? If so is there a claw back if they don't obtain the certification?

 

[MBaker]

Will the contract language be posted here, since there is nothing in the packet? Can we expect the GSMP presentation again to prove returns and have the sustainability requirements?

 

[COSM_Admin]

Response to CM Derrick:
Does the 380 include a requirement that they are "certified sustainable" company or not? If so is there a claw back if they don't obtain the certification?
There is a requirement in the agreement that the company receive the Clean Green designation by December 31, 2024. The grant structure was changed to 25% in Year 1, 50% in Year 2, and 25% in Year 3 based on guidance from Council to align with the expected timeline for certification, and because the agreement is performance based, the company will not be eligible for the max 50% payment the following year unless they show proof of receiving the Clean Green designation and meeting employment commitments.

Response to CM Baker:
Will the contract language be posted here, since there is nothing in the packet?
The draft contract language was addressed under separate cover.

Can we expect the GSMP presentation again to prove returns and have the sustainability requirements?
The presentation will include information on the company's sustainability commitment and expected tax benefit to the City of San Marcos.