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Vacaville council OKs plan to attract businesses, housing

By
From page A10 | January 15, 2014 |

VACAVILLE — City Council members gave the go-ahead Tuesday to offer monetary incentives to help the city attract new businesses and housing.

Assistant City Manager Jeremy Craig presented the economic incentive program as one way to help the city recover from the loss of its redevelopment agency, which the state ended in 2011. Since then, the city’s economic development committee has worked on ways to boost the city’s economic profile.

A series of recommendations came to the council in August 2013. Tuesday’s action was the product of city staff turning those recommendations into a targeted incentive program.

Among the incentive programs approved by a unanimous 3-0 council vote are retail incentives, manufacturing/office incentives and residential housing incentives. Vice Mayor Mitch Mashburn and Councilwoman Dilenna Harris were absent due of illness

Craig said the incentives won’t be available to every business that looks to set up shop in Vacaville. For example, retail incentives would be available to businesses that make $10 million or more in annual sales. Should a business reach that threshold, the council could approve a sales tax rebate program.

According to a staff report, $10 million in sales could qualify a business for a 25 percent sales tax rebate. The amount of the rebate goes up with higher sales. Applicants must meet a host of requirements to be considered for such a program.

Likewise with the office and industrial incentive program, which requires such businesses to provide 200 or more  jobs that pay 60 percent or more of Vacaville’s median household income of $73,000, based on the 2010 census. That would qualify an approved business for either sales, use, property or other tax rebate, or a reduction in development impact fees up front to be backfilled later through future tax generation.

To attract new housing development, the council approved a 100-permit program, wherein the city would offer a 10 percent discount on development impact fees for 100 total building permits – a maximum of 25 per developer – to spur new housing in the city.

Similarly, the difference in the development impact fees income to the city would be backfilled with the difference in property taxes once construction is completed, Craig said.

The council also voted to again defer the annual increase in development impact fees, which would have been 5.1 percent for this year. The city previously waived the increase in 2011-13.

Reach Mike Corpos at 427-6979 or mcorpos@dailyrepublic.net. Follow him on Twitter at www.twitter.com/mcorposdr.

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Discussion | 1 comment

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  • The MisterJanuary 15, 2014 - 6:42 am

    "Vacaville Council OKs Plan to Pick Winners and Losers in Local Business" is what the headline really means. Tax breaks for some means more taxes for others. Tax breaks for the bigs means more taxes for the smalls.

    Reply | Report abusive comment
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