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File #: 20-1730    Version: 1
Type: Public Hearing Status: Passed
File created: 6/29/2020 In control: City Council/Public Financing Authority
On agenda: 7/6/2020 Final action: 7/6/2020
Title: Public Hearing to consider acceptance of Economic Development Subsidy Study for Pinnacle Petroleum Sales Tax Agreement
Attachments: 1. Att#1 Pinnacle Report, 2. Att#2 Staff Report (April 21, 2014), 3. Sup Com 7-6-2020 Luna-Reynosa PPT
REQUEST FOR CITY COUNCIL ACTION

SUBMITTED TO: Honorable Mayor and City Council Members

SUBMITTED BY: Oliver Chi, City Manager

PREPARED BY: Ursula Luna-Reynosa, Director of Community Development

Subject:
title
Public Hearing to consider acceptance of Economic Development Subsidy Study for Pinnacle Petroleum Sales Tax Agreement
body

Statement of Issue:
Government Code Section 53083 mandates certain requirements of local agencies prior to approving, and during the term of, economic development subsidies. One requirement is that not less than five years after the approval of an economic development subsidy, a report (the "Report") containing specific information shall be made available to the public via the City's website and a public hearing. The City approved a sales tax sharing agreement, Covenant Agreement by and between the City of Huntington Beach and Pinnacle Petroleum, Inc., (the "Agreement") in April 2014. The Report containing the information required pursuant to Section 53083 of the Government Code is attached for review (Attachment #1).

Financial Impact:
A fiscal impact was associated with the original action to approve the Agreement; however, there is no fiscal impact to receive and file this document.

Recommended Action:
recommendation
A) Open the public hearing and receive written and oral testimony; and,

B) Receive and file the "Five Year Report Pursuant to California Government Code Section 53083 on an Operating Covenant Agreement By and Between the City of Huntington Beach and Pinnacle Petroleum, Inc.," in compliance with Government Code Section 53083.
end

Alternative Action(s):
Do not receive and file the Report.

Analysis:
The City has used sales tax sharing agreements as an economic development incentive to help attract new businesses and retain existing businesses. Pinnacle Petroleum is a provider of gas and oil products for government and corporate fleets since 1995. Pinnacle Petroleum left Huntington Beach for a neighbori...

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