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Public Hearing Five-Year Subsidy Reports <br />February 18, 2025 <br />Page 2 <br />4 <br />8 <br />4 <br />1 <br />•The Agreement term is for 25 years (through December 31, 2045); <br />•The City has retained $2,048,530 of total sales tax revenues; <br />•The City has provided TACenergy with $2,048,530 of sales tax rebates; <br />•A total of 20 full time jobs were added in association with the economic subsidy. <br />In a separate action, the Council approved a Disposition and Development Agreement <br />(DDA) with THRIVE Santa Ana, Inc., for the development of a micro-farm at 1901 W. <br />Walnut Street and executed a 99-year Ground Lease. An economic development <br />subsidy was provided since the property was appraised at $817,000. <br />The City has also prepared the Five-Year Subsidy Report (Exhibit 2) which includes the <br />following key points for THRIVE Santa Ana Inc.: <br />•The Ground Lease term is for 99 years (through December 15, 2121) at $1 per <br />month; <br />•Lost revenue was $817,000, the appraised value of the property; <br />•Upon completion, property taxes are estimated to be at $1,500 annually; <br />•Upon completion, the subsidy will create five (5) full-time jobs, 10 part-time jobs, <br />and 10 temporary positions. <br />Since execution of the DDA, THRIVE has been working to develop a microfarm to grow <br />and distribute fresh produce and ornamentals, and host weekly open-air markets and <br />community activities that promote health at the project site. The site has been vacant for <br />over 12 years and was acquired by the City in 2007. THRIVE has received all <br />necessary permits and are very close to completing the project. <br />Economic Development Division staff continue to oversee compliance by each entity, <br />ensuring that all requirements are met in accordance with the terms of their respective <br />agreements. As required by law, a notice of public hearing was published and the Five- <br />Year Economic Development Subsidy reports have been posted on the City’s website: <br />https://www.santa-ana.org/subsidy-reports/. <br /> <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br /> <br />EXHIBIT(S) <br />1. Five-Year Subsidy Report - TACenergy <br />2. Five-Year Subsidy Report - THRIVE Santa Ana, Inc. <br />3. Public Notice <br />Submitted By: Michael L. Garcia, Executive Director of Community Development <br />Approved By: Alvaro Nuñez, City Manager