ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083
FOR AN ECONOMIC DEVELOPMENT AND SALES TAX SHARING
AGREEMENT BY AND BETWEEN
THE CITY OF CUPERTINO
AND
INSIGHT DIRECT WORLDWIDE, INC.
Pursuant to Government Code Section 53083, the City Council of the City of Cupertino must hold a noticed public hearing and, prior to the public hearing, provide all of the following information in written form and available to the public and through the City’s website, regarding a proposed economic development subsidy to be provided by the City pursuant to an Economic Development and Sales Tax Sharing Agreement (“Agreement”) by and between the City of Cupertino (“City”) and Insight Direct Worldwide, Inc (“Insight”). Notice was published on City’s website for a public hearing to be held on July 21, 2026.
The purpose of this Economic Development Subsidy Report (“Report”) is to provide the information required pursuant to Government Code Section 53083 regarding the Agreement.
This Report shall remain available to the public as further described in Section 2, below.
1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.
Insight Direct Worldwide, Inc.
2701 E. Insight Way
Chandler, AZ 85286
Insight Direct USA, Inc.
2701 E. Insight Way
Chandler, AZ 85286
Insight Public Sector, Inc.
2701 E. Insight Way
Chandler, AZ 85286
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
Subject to City Council approval and the execution by Insight of a new lease or lease extension with an approximate three-year term, the proposed Agreement is expected to commence on or about December 1, 2026, and expire on or about December 31, 2029, unless extended in accordance with its terms.
3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.
If Eligible Local Tax Revenues for a Fiscal Year exceed $250,000, City shall pay Insight a Revenue Sharing Payment calculated as follows:
a) If Eligible Local Tax Revenues exceed $250,000 but are less than $500,000, the Revenue Sharing Payment shall equal $62,500 plus twenty-five percent (25%) of Eligible Local Tax Revenues between $250,000 and $500,000.
b) If Eligible Local Tax Revenues equal or exceed $500,000 but are less than $1,000,000, the Revenue Sharing Payment shall equal $125,000 plus forty percent (40%) of Eligible Local Tax Revenues between $500,000 and $1,000,000.
c) If Eligible Local Tax Revenues equal or exceed $1,000,000, the Revenue Sharing Payment shall equal $500,000 plus thirty-five percent (35%) of Eligible Local Tax Revenues in excess of $1,000,000.
4. A statement of the public purposes for the economic development subsidy.
The public purposes of the Agreement are to retain Insight, an existing business that has maintained a presence in Cupertino since 2006. The economic development subsidy will ensure that Insight remains within the City, thereby preserving its contribution to the City’s diverse tax base and supporting the City’s ongoing economic vitality.
5. Projected tax revenue to the local agency as a result of the economic development subsidy.
The economic development subsidy is projected to generate approximately $2.4 million in annual gross tax revenue, of which approximately $1.4 million would be retained by the City and approximately $1.0 million would be rebated to Insight. Over the initial three-year term, the agreement is projected to generate approximately $7.2 million in gross tax revenue, with approximately $4.2 million retained by the City and approximately $3.0 million rebated to Insight.
6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
• 31 full-time jobs, including hybrid workers, are assigned to the Cupertino office • 0 part-time jobs
• 0 temporary positions