For the purposes of this chapter, the following definitions shall apply:
"Approved business"means any existing commercial and/or industrial business or new commercial and/or industrial business located within the designated commercial and industrial zoned areas of the City which has submitted an application for participation in the program and been approved by the City to participate in the program through a participation agreement.
"Business"means any "existing commercial and/or industrial business" or "new commercial and/or industrial business" as defined in this section.
"Developer"means any person or entity in the business of developing real property for the purpose of operating a business thereon, and with whom the City Council may, in its sole discretion, enter into a participation agreement.
"Existing commercial and/or industrial business"means a retailer and/or operator in the business of selling goods or services which are subject to sales tax, which was operating with a valid business license anywhere within the City not less than five years prior to the filing of an application by the existing business for assistance under this chapter.
"New commercial and/or industrial business"means a retailer and/or operator in the business of, or which proposes to be in the business of, selling goods or services which are subject to sales tax, which desires to open a business within the City, and is not operating said business within the City as of the date of the application by the new business for assistance under this chapter, and has not operated such a business within the City within one year of the date of the application.
"Owner"means the person or entity which owns and operates the business, and has legal authority to enter into a participation agreement on behalf of the business with the City.
"Participation agreement" or "agreement"means an agreement between the City and an approved business which provides for the rebate from the City to the business owner of a portion of the business's sales tax increment, at a rate and for a time period as determined by the City. Said agreements may include such provisions, restrictions, conditions or other provisions as the parties then agree are necessary to give effect to the intent and spirit of this chapter.
"Sales tax"means that portion of local sales taxes accrued on account of sales made by a business that would be payable to the City from the State Board of Equalization, from the imposition of the Bradley Burns Uniform Local Sales and Use Tax Law, provided that such sales taxes are legally available for use by the City's general fund, and the use of which by the City is not otherwise restricted by the state or federal government.
"Sales tax base"means the historical production of sales tax by an existing business as calculated in the sales tax sharing report. The sales tax base shall be calculated in a manner as to take into account the then-current economic state relative to the historical performance of the business. In addition, it shall use a method determined by the preparer of the tax sharing report, for averaging production over an appropriate period adjusted for inflation, or other similar adjustment index, it being the intent that an approved business should receive a tax sharing arrangement which does not reward the business for improvement in sales tax arising from general economic conditions as opposed to the improvements made by the business owner.
"Sales tax increment"means, on an annual basis, the difference between the sales tax base and the amount of sales tax actually generated by a business and received by the City from the State Board of Equalization after a business begins participating in the program. It is determined by reference to actual receipts by the City of sales tax from the State Board of Equalization. With respect to new businesses, all sales tax received shall be deemed to be sales tax increment unless adjustment(s) and/or additional condition(s) are incorporated into the participation agreement and approved by City. Under no circumstance shall the City be liable for any reimbursement of sales tax increment not actually received and permanently retained by the City.
"Sales tax quarter"means a three-month quarterly period as designated by the State Board of Equalization in its reports to the City.
"Sales tax sharing"means the disbursement amount from the City to the owner of an approved business of a portion of that business's sales tax increment, as determined each year for which the agreement is valid. The payment of the approved business's portion of the sales tax increment shall be paid to the approved business within a reasonable time after the conclusion of each sales tax quarter, consistent with the City's ability to verify its actual sales tax receipts relative to the approved business.
"Sales tax sharing program" or "program"means the sales tax program established by this chapter. A business's participation in the program extends as long as the time period provided for in a participation agreement.
"Tax sharing report"means the report which shall be completed for any applicant business which shall analyze the projected economic factors relating to the expansion of an existing business, or construction of a new business, and the projected impact of such expansion or construction on the business's generation of sales which are subject to sales tax and which generate general fund revenues to the City, which shall be considered by the City Council in making its decision as to a particular business, and which the City Council may use, along with other evidence presented, in its sole discretion, to determine whether the subject business is approved to participate in the program, and if so, the appropriate sales tax sharing rate and time period for the participation agreement. The tax sharing report shall be prepared by staff or by a qualified economic consultant employed by the City. The cost of preparing the tax sharing report, whether prepared by staff or an outside consultant shall be paid by the owner of the business applying for participation in the program, unless the City, in its sole discretion, waives this requirement as part of the terms of the participation agreement.
(Ord. 4-13, 2013)