ORDINANCE 1220ORDINANCE NO. 1220
AN ORDINANCE OF THE CITY OF EL SEGUNDO, CALIFORNIA, ADDING
CHAPTER 3.06 ENTITLED BUSINESS ATTRACTION PROGRAM AND AMENDING
SECTION 5.08.020 ESTABLISHING BUSINESS LICENSE TAX CREDITS FOR
THE BUSINESS RETENTION PROGRAM TO THE EL SEGUNDO MUNICIPAL CODE
WHEREAS, the City of E1 Segundo desires to create, maintain
and implement a business climate that fosters a strong economic
community in the City; and
WHEREAS, the City desires to establish competitive
advantages for business expansion and relocations in the City;
and
WHEREAS, the City desires to create an incentive program for
businesses to facilitate business retention and attraction in the
City.
THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 3.06 is hereby added to the E1 Segundo
Municipal Code to read as follows:
"CHAPTER 3.06 - BUSINESS ATTRACTION PROGRAM
3.06.010 TITLE
This chapter shall be known as the Business Attraction
Program of the City.
3.06.020 PURPOSE
This chapter sets forth a mechanism for establishing finan-
cial incentives to businesses to facilitate business attraction
in the City.
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3.06.040 BUSINESS LICENSE TAX CREDIT.
(a) Any business which increases the amount of sales and
use tax revenue received by the City from the business or its
activities above its baseline, as defined hereunder, shall
receive a credit to its business license tax equal to the dollar
amount of the increase above the baseline. The amount of busi-
ness license tax credit shall be determined annually and is
subject to approval by the city manager. Said credit shall be
applied to the business license tax owed in the next fiscal year
only; provided, that, in no event, shall the credit exceed the
amount of business license tax owed.
(b) For the purposes of this section, the "baseline" for a
business shall be determined as follows. For each fiscal year,
the baseline shall be equal to the amount of sales and use tax
and business license tax revenue projected to be generated for
the City as calculated from projections based on the business
plan submitted by the business to the City.
(c) A business may only be granted business license tax
credits under this section for the first three years that the
business operates in the City or such longer term as determined
pursuant to subsection (c) of Section 3.06.030. A business is
not eligible to receive any business license tax credits based on
sales and use tax revenue established under Title 5 of this Code
while the business is receiving a business license tax credit
under this section.
3.06.050 TRANSIENT OCCUPANCY TAX CREDIT
The City Manager, or his or her designee, is hereby autho-
rized to negotiate and approve a tax credit agreement which
grants to a new hotel business a credit on the transient occupan-
cy tax imposed by the City for a period not to exceed three years
following the date of the agreement or such longer term as
determined pursuant to subsection (c) of Section 3.06.030. The
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(c) For the purposes of this section, "planning and /or
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building fees" is defined as any or all of the fees imposed by
the City under the Zoning, Subdivision, Building, Electric,
Plumbing, and Mechanical Codes of the City."
SECTION 2. Subsection (e) is hereby added to Section
5.08.020 of Chapter 5.08 of Title 5 of the E1 Segundo Municipal
Code to read as follows:
"(e) Notwithstanding the foregoing, a business which
increases the amount of sales and use tax revenue received by the
City from the business or its activities above its baseline, as
defined hereunder, shall receive a credit to the business license
tax imposed under this chapter equal to the dollar amount of the
increase above the baseline. The amount of business license tax
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credit shall be determined annually and is subject to approval by
the city manager. Said credit shall be applied to the business
license tax owed in the next fiscal year only; provided, that, in
no event, shall the credit exceed the amount of business license
tax owed.
(1) For the purposes of this subsection, the "base-
line" for a business shall be calculated as follows:
(i) For the first fiscal year in which a credit
is granted, the "baseline" shall equal the sum of sales and use
tax received by the City from the business and its activities and
the business license tax imposed by the City in the prior fiscal
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year.
(ii) For each subsequent fiscal year, the base-
line amount established under subsection (i) above shall be
recalculated as follows. The sales and use tax component of the
base line shall be adjusted to reflect any increase from the
prior fiscal year in the consumer price index as established in
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SECTION 5. The City Clerk shall certify to the passage and
adoption of this ordinance; shall cause the same to be entered in
the book of original ordinances of said city; shall make a note
of the passage and adoption thereof in the records of the meeting
at which the same is passed and adopted; and shall within 15 days
after the passage or adoption thereof cause the same to be
published or posted in accordance with the law.
PASSED, APPROVED, AND ADOPTED this 5th day of April 1994.
v
Carl acobs , Mayor
City of E1 Segundo,
California
ATTESTED:
C' dy Mo sen,
City Clerk (SEAL)
APPROVED AS TO FORM:
Leland C. Do y,
City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF EL SEGUNDO )
I, Cindy Mortesen , City Clerk of the City of El Segundo,
do hereby certify that the foregoing Ordinance No. 1220 was
regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the 15th day of March,
1994. That thereafter, said ordinance was duly adopted and
passed at a regular meeting of the City Council on the 5th day
of April , 1994, by the following vote, to wit:
AYES: Mayor Jacobson, Mayor ProTem Wise, Councilman West, Councilman Switz,
and Councilman Robbins.
NOES: NONE
ABSENT: NONE
Cind y 'Mortesqffi, City Clerk
(SEAL)
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