75B - TAX SHARING TACENERGY - Laserfiche WebLink

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i0:0:u:1ifi SALES TAX SHARING AGREEMENT This SALES TAX SHARING AGREEMENT ("Agreement") is made and entered into as of April 1. 2020, by and between the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), and TACenergy, a division of the Truman Arnold Companies, a Texas corporation ("TAC"). RECITALS A. On August 5, 2013, the City approved the execution of a sales tax sharing agreement with IPC (USA), Inc. ("IPC" }, an independent wholesale distributor of gasoline, diesel, jet fuel, and other refined petroleum products throughout the United States. The agreement provided for a fifty percent (501/o) sharing of local sales tax generation, increasing to seventy percent (701/o) when more than $1.4 million of sales tax is generated in a single year. The term of this agreement was to expire in January 2028. B. On November 1, 2019, IPC was acquired by TAC, one of the largest national wholesale fuel suppliers in the county (such TAC activities in California are hereinafter referred to as the "Petroleum Business', with annual sales exceeding 2.7 billion gallons and more than $5 billion in revenue. C. Since the acquisition, TAC has been evaluating all of its newly acquired assets and have made the determination that they would like to remain in the City due to its local employment base and centralized proximity to an airport and major freeways. D. In consideration for TAC's performance under this Agreement, City has agreed to pay to TAC certain payments, measured by a portion of the Sales Tax generated by the conduct of TAC's "Required Operations" in the City, provided that TAC causes Required Operations to be conducted in the City during the tent of this Agreement and complies with the other terms and conditions set forth in this Agreement, as more particularly set forth herein. City and TAC have agreed that the amount to be paid by City to TAC hereunder is a fair exchange for the consideration to be furnished by TAC to City. D. By its approval of this Agreement, the City Council of City has found and determined that it is of benefit to the City and its residents for the Required Operations to be conducted within the City, and that the imposition of certain terms and conditions relating to such uses and the City's payment of the City Consideration described herein constitute valid public purposes under the City's Charter and Article XVI, section 6 of the California Constitution as necessary for the economic enhancement of the City and to contribute to the City's general fund that supports services for the health, safety and welfare of the residents of the City. The City Council has further found and determined that TAC's conduct of its "Required Operations" as contemplated in this Agreement will assist in the generation of additional sales and use tax revenues to City as well as assist in the creation and maintenance of additional jobs and economic opportunities for the residents of the City. 75B-4