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  Item #   7. B. 3.    
City Council
Meeting Date: 05/13/2019  
Submitted For: Steve Commons Submitted By: Steve Commons, City Manager's Office

Information
Item
Approval of payment of the performance based sales tax incentive for a portion of the sales taxes remitted from the operation of Showbiz Cinema; $100,000.
Background
The City entered into a Development Financing Assistance Agreement as part of the Showbiz Cinema development at I-35 and Covell.  To encourage the business investment and development of a multi-screen (10) movie theater with other entertainment activities (bowling- 12 lanes, food service and arcade), the City committed to return 2% of 3.75% sales tax collected on a quarterly basis.  The amount returned was capped at $4.8 million and the development needs to collect those funds within a 20 year period.

This agenda item represents the first request to authorize staff to proceed with the distribution of the quarterly collection of funds.  Only funds which are actually collected and provided to the City can be distributed back as an incentive (this represents that they have to successfully perform in generating retail sales to receive the incentive).

Staff will use this authorization to generate a Purchase Order with the amount requested. Again, we will only distribute that portion of the sales tax that we have actually received.  We will have two quarterly payments in this fiscal year. As we begin a new fiscal year, we will make this request annually.
Time Frame
Upon approval, staff will make the first quarterly payment which includes the month of December.
Issue
The sales tax funds are received in the General Fund.  A transfer of the portion of the sales tax that is committed for this incentive is transferred to the EPWA Economic Development Fund where the payment will be distributed to Covell-35 Development, LLC.
Recommendations
Approval of the potential distribution amount.
Action Needed
Approval of the potential distribution amount.
Public Notification
Posted City Council agenda.

Fiscal Impact
Funding/Cost: $100,000
Budgeted Item Y/N or N/A: N
Account:
569030-8361 EPWA Economic Development Fund - Contractual Services $100,000
Attachments
No file(s) attached.

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