Community Development Agency
www.santa-ana.org/community-development
Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
March 4, 2025
TOPIC: Public Hearing for Five-Year Economic Development Subsidy Report for TACenergy
AGENDA TITLE
Public Hearing for Five-Year Economic Development Subsidy Report for TACenergy Legal notice published in the OC Reporter on February 21, 2025.
RECOMMENDED ACTION
1. Conduct public hearing to consider any written or oral comments on the information contained in the Five-Year Economic Development Subsidy report for TACenergy.
2. Receive and file report.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
On March 3, 2020, the City Council approved a sales tax sharing agreement with TACenergy, one of the largest national wholesale fuel suppliers in the country, with annual sales exceeding 2.7 billion gallons and more than $5 billion in revenue. During the term of the 25-year agreement, the City shares 50% of the sales tax generated by TACenergy.
Government Code Section 53083 requires that the City Council must hold a noticed public hearing and, prior to the public hearing, provide information to the public through the City's website regarding the proposed economic development subsidy. As part of the approval process, an economic development subsidy report was completed and submitted detailing the structure of the public subsidy, projected tax benefits, and estimated number of jobs that would be created by the subsidy. This report has been available to the public and posted on the City's website until the end date of the economic development subsidy.
Government Code 53083 also requires that within five-years of the approval of the subsidy, the City must prepare a new subsidy report that includes the original subsidy information plus net tax revenue and net number of jobs created by the subsidy. The purpose of this public hearing is to consider written or oral comments on the information contained in the subsidy report.
Public Hearing Five-Year Subsidy Report TACenergy
March 4, 2025
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The City has prepared the Five-Year Subsidy Report (Exhibit 1) which includes the following key points for TACenergy:
•The Agreement term is for twenty-five years (through December 31, 2045); •The City has retained $2,048,530 of total sales tax revenues; •The City has provided TACenergy with $2,048,530 of sales tax rebates; •A total of 20 full time jobs were added in association with the economic subsidy.
Economic Development Division staff continue to oversee compliance, ensuring that all requirements are met in accordance with the terms of the agreement. As required by law, a notice of public hearing was published and the Five-Year Economic Development Subsidy report has been posted on the City’s website: https://www.santa- ana.org/subsidy-reports/.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. Five-Year Subsidy Report - TACenergy
2. Proof of Publication
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager