Discussion and possible action any and all matters regarding a Notice of Intent of the Mayor and City Council of the City of San Luis to enter into a Retail Development Tax Incentive Agreement. (Jenny Torres, Community Development Director)

Pursuant to Section 9-500.11(K) of the Arizona Revised Statutes, a city shall adopt a Notice of Intent to enter into a Retail Development Tax Incentive Agreement at least fourteen (14) days before approval of said agreement.  

 
San Luis Commercial Holdings, LLC, wishes to develop in San Luis a brand hotel and restaurant, a franchise convenience store and gas station, and other transaction privilege tax generating businesses on the project site to be located at the corner of Highway 95 and County 22^nd Street. The Retail Tax Incentive Agreement anticipates raising more revenue than the amount of the incentive within the duration of the agreement. The agreement is structured where fifty (50%) percent of all the transaction privilege taxes of the City as generated from businesses established on the project site will be rebated to the developer with the condition of showing a public benefit. 

Dan Jackson, independent third party consultant was contracted to prepare an economic impact analysis to measure the impacts of the development and many other activities that affect employment and expenditures in the economy. The developer agreement is anticipated to be completed and to presented at the May 31, 2017 Council Meeting. Mr. Jackson will present the findings that consist with the Retail Tax Incentives Agreement.

At this time, staff recommends that City Council adopt the attached Notice of Intent as to the tax incentive portion of the agreement.