The Downey (Calif.) City Council unanimously approved an agreement with Giant RV, giving the business a sales tax rebate in exchange for significant job creation.
The Downy Patrio reported that, according to city staff, Giant RV will receive up to $504,000 over the course of seven years and create 55 new full-time jobs at the cite per the agreement. The RV dealership will use those proceeds to offset operational and facility costs.
“This is just another effort of staff’s; we’re always seeking to expand our economic development opportunities and work with our businesses and see how in conjunction we can increase our property tax base, our sales tax base and other benefits associated with a new business, especially a dealership of this size and that job creation component,” said Community Development Director Aldo Schindler during his presentation to council. “I think most importantly the sales tax rebate allows the city and Giant RV to reuse this land that has been vacant for quite some time.”
Staff will monitor the agreement on an annual basis to verify that Giant RV is meeting their end of the deal.
After the first year of operation, the city will examine the amount of sales tax produced by Giant RV. If that amount exceeds $180,000, the city will rebate the dealership 26% of the exceeding amount up to a maximum of $72,000 per year.
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