Statement of Economic Support from the City of Visalia - December 21, 2015
In order to encourage job growth in the City of Visalia, the City of Visalia provides the following economic support or subsidy as stated in AB562.
Beneficiary of Economic Support: Nordstrom Inc. 1600 Seventy Ave., Suite 2600, Seattle, Washington 98101
Duration of Support: January 1, 2016 to December 31, 2046 or $20.75 million, whichever comes first.
Nature of Support: The support will be a share of the sales tax generated from this project up to a maximum of $11,067 per job for up to 1,875 jobs for a maximum support of $20.75 million.
Public Purpose: The public purpose for the support is to encourage job growth in a county that has traditionally had greater unemployment than California as a whole.
Estimated economic impact: The City of Visalia has an economic impact report that shows the eCommerce project will operate with a $50,000,000 annual project cost and a total economic impact multiple times that operating cost. A detailed report conducted by Impact DataSource shows the twenty-year impact as $3.8 billion.
The net tax revenue to the City will increase over time. In the first year of operations, the expects to collect $240,000 in sales taxes after rebates and $270,000 in property taxes.
Estimated job creation:The value of this agreement depends upon the development of the business. However, the support will only be provided if the company provides at least 500 jobs annually. Support, however, will be provided on a full-time equivalent basis, one job for every 2000 work hours. The initial hiring pattern is expected to be the following:
To learn more about the City of Visalia and the work being done in economic development, visit our Business page.