HomeMy WebLinkAbout93-022 CC Resolution RESOLUTION NO. 93-22
A RESOLUTION OF THE CITY COUNCIEL OF THE CITY OF
TEMIECULA DECLARING ITS INTENTION TO ENTER INTO A SALES
TAX SHARING AGREEMIENT WITH THE CITY OF MURREETA
THE CITY COUNCIL OF THE CITY OF TEMIECULA DOES HEREBY RESOLVE
AS FOLLOWS:
Section 1. The City Council of the City of Temecula hereby finds, determines and
declares as follows:
A. The City of Temecula and the City of Murrieta each desire to attract developments
which can potentially generate a high level of sales tax revenue;
B.It has been the tendency for cities within the same regional market to complete with
each otherfor high sales tax generating retail businesses by offering sales tax rebates to those
businessesto locate within their jurisdiction. It is therefore in the best interest of this City and
its neighboring cities to avoid granting such sales tax rebates to businesses which otherwise
intend to locate within a regional market area;
C. Onewayofavoidingcompetitionbetweenjurisdictionsfordesirableretailbusinesses
and thus avoiding the necessity of providing sales tax rebates, is for competing jurisdictions to
enter into an agreement not to compete with each other by offering sales tax rebates for
prospective retail projects but instead to recognize the regional nature of such businesses by
entering into sales tax sharing agreements. If properly structured, such agreements can be far
less expensive to the public than the granting of sales tax rebates by competing jurisdictions;
D. Any such sales tax sharing agreement must be approved by the voters pursuant to
Article XIII Section 29 of the California Constitution and Government Code Section 55700 et
seq.
Section 2. Based upon the foregoing, the City Council of the City of Temecula hereby
declares its intention as follows:
A. The City shall agree to offer no sales tax rebates to any retail business operator
seeking to locate in the City whose business operation exceeds 100,000 covered square feet
pending submittal to the electorate of the sales tax sharing agreement. Should the voters reject
the agreement, the City may resume offering sales tax rebates. Should the voters approve the
agreement, the City shall continue to forego offering sales tax rebates for the term of the
agreement. In consideration of this promise the City of Murrieta shall make a similar
commitment with regard to retail operators locating within their jurisdiction;
B.In consideration of the mutual promises set forth in A) above, the City and/or the
Resos 93-22 1
Redevelopment Agency shall agree to share the proceeds of the sales tax from any retail
operation occupying in excess of 100,000 covered square feet in the City of Temecula with the
City of Murrieta up to 25 % of the sales tax generated by the retail operation. In consideration
therefore, the City of Murrieta and/or its Redevelopment Agency would make a reciprocal
promise to do the same thing;
C. The sales tax sharing agreement between Murrieta and Temecula shall not apply to
any retailer selling drugs, medicine, medical supplies, and medical devices to health care
professionals, such as physicians, veterinarians, dentists, podiatrists, opthamologists, opticians,
chiropractors, hospitals, and medical clinics. Further, either City may offer incentives other
than tax rebates in order to redevelop properties or attract businesses;
D. Sales tax sharing will commence the first quarter after appropriate action of both
cities has been taken in compliance with Article XIII Section 29 of the California Constitution
and Government Code Section 55700 e-t @. in entering into such an agreement. This sales tax
sharing agreement will expire December 31, 1996. Further, should the Sales and Use Tax Law
ever to amended to alter the distribution of the municipal share of sales and use tax from a point
of sale basis to another basis, such as per capita, then this sales tax sharing agreement will
terminate.
Section 3. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPRED, this 16th day of March, 1993.
@q
,A.TTEST: J. S@ufioz, Mayoq
une @reek, City C16r@
[SEA]LI
Resos 93-22 2
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) SS
CITY OF TEMECULA )
I June S. Greek, City Clerk of the City of Temecula HEREBY DO CERTIFY that the
foregoing Resolution No. 93-22 was duly adopted at a regular meeting of the City Council of
the City of Temecula on the 16th day of March, 1993, by the following roll call vote:
AYES: 3 COUNCILMEMBERS Roberts, Stone, Muiioz
NOES: 2 COUNCILMEMBERS: Birdsall, Parks
ABSENT: 0 COUNCILMEMBERS: None
ne-S. Greek, City Crerk
Resos 93-22 3