Item 17 - Public Hearing for Five-Year Economic Development Subsidy Reports

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Community Development Agency www.santa-ana.org/community-development Item # 17 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report February 18, 2025 TOPIC: Public Hearing for Five-Year Economic Development Subsidy reports for TACenergy and THRIVE Santa Ana, LLC AGENDA TITLE Public Hearing for Five-Year Economic Development Subsidy Reports for TACenergy and THRIVE Santa Ana, LLC Legal notice published in the OC Reporter on February 5, 2025. RECOMMENDED ACTION 1. Conduct Public Hearing to consider any written or oral comments on the information contained in the Five-Year Economic Development Subsidy reports for TACenergy and THRIVE Santa Ana, LLC. 2. Receive and File Reports. GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION Government Code Section 53083, subsection D, requires that the City Council must hold a noticed public hearing and, prior to the public hearing, provide information to the public through the City's website regarding any proposed economic development subsidy. The Government Code 53083 also requires that within five-years of the approval of the subsidy, the City must prepare a new subsidy report (Attachments 1&2) that includes the original subsidy information plus net tax revenue and net number of jobs created by the subsidy. On March 3, 2020, City Council approved two separate agreements that were considered to provide an economic development subsidy. At the March 2020 meeting, the City Council approved a sales tax sharing agreement with TACenergy, one of the largest national wholesale fuel suppliers in the country, with annual sales exceeding 2.7 billion gallons and more than $5 billion in revenue. During the term of the 25-year agreement, the City shares 50% of the sales tax generated by TACenergy. The City has prepared the Five-Year Subsidy Report (Exhibit 1) which includes the following key points for TACenergy: