Proposed Retail Incentive Program
An Economic Development Tool for Business Attraction
ITEM: ESTABLISH A FINANCIAL INCENTIVE PROGRAM LIMITED TO NEW
RETAIL ESTABLISHMENTS LOCATING IN THE CITY EAST OF
INTERSTATE 5 & APPROVE BUDGET AMENDMENT
Item 5.3
Background
October 14, 2024 – Lathrop City Council Directed Staff to Explore Possible Financial Incentive Programs for the Purpose of Attracting Entertainment Uses to the City.
Council Requested:
• Funding Source: Measure D, Economic Development Fee—
Citywide Account.
• Enhance Efforts to Attract Retail, Entertainment, Recreational Entities, including Small Businesses, to Lathrop’s East Side of Interstate 5.
• Project Incentive Based on City Capital Facility Fees, Building Permit & Plan Check Fees, or Business License Fees.
November 18, 2024 – Lathrop City Council Meeting
• Staff Presented Financial Incentive Program Options
• Council Gave Feedback & Direction to Craft a Retail Incentive Program
Proposed Retail Incentive Program
• Purpose to attract new investment from retailers not currently located within Lathrop city limits.
• Offers a financial incentive in the form of a credit-based grant payable toward eligible city fees related to business license, tenant improvements of existing space, or construction of a new building.
• Grant to help reduce the start-up expenses for new retail business locating in the City East of Interstate 5.
Proposed Retail Incentive Program
Eligible Business Categories
• Retail establishments that sell goods to consumers and patrons • Full-service restaurants
• Entertainment and recreational entities
• Small business retailers, entertainment or recreational entities with at least 3 full-time employees
Business Eligibility
1. A new retail business not currently operating within Lathrop city limits.
2. Business must seek to be based physically within a permitted commercially zoned location East of Interstate 5.
Proposed Retail Incentive Program
The Proposed Retail Incentive Program offers eligible retailers a credit-based grant payable toward City fees within three categories:
Recommendation
Council to consider the proposed resolution to
establish a Retail Incentive Program and approve a
related budget amendment.