Development & Business Incentives
(1) Foreign Trade Zone #219. Businesses located in a zone or sub-zone are eligible for up to an 80 percent reduction in state real and personal property taxes;
(2) Lease Excise. Lease Excise is a redevelopment tool to initiate development by reducing a project's operating costs by replacing the real property tax with an excise tax. Project must be within a redevelopment area, central business district (CBD). Property taxes may be waived up to 8 years.
Land Development - Building & Planning
(1) Building Permit Fees. Building permit fee is based on the calculated building valuation. On a case by case, City Council may reduce up to 10% of the due permit fee.
(2) Plan Review Fees. The building plan review fee is 65% of the total building permit fee. On a case by case, City Council may reduce up to 15% of the plan review fee.
(3) Infrastructure Development. The City provides credit for water/sewer impact fees, if the business/developer pays and installs the infrastructure in advance, credit, based on the actual cost, will be provided for the installed infrastructure improvements (i.e. sewer or water lines). The value of that credit can be applied to and during the building permit and building plan review process related fees.
Opportunity Zone: 115.01
Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.
Small Business Opportunities
Façade Improvement Program. Through the office of economic development, City Council has allocated funds to assist local small businesses on building frontage remodeling and new building signs. This program is primarily for businesses located along Main Street, between Somerton Avenue and Cesar Chavez.
Location and Site Assistance
One Point of Contact. The City’s Office of Economic Development serves as the primary point of contacts for all new and existing businesses.