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City of San Leandro <br />Meeting Date: July 15, 2013 <br />Staff Report <br />Agenda Section:File Number:13-378 ACTION ITEMS <br />Agenda Number:10.B. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Chris Zapata <br />City Manager <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for Resolution Approving a Business License Tax Holiday for New <br />Businesses <br />SUMMARY <br />At the June 17, 2013 City Council meeting, Mayor Cassidy proposed and the City Council <br />unanimously supported, directing staff to provide a report on the creation of a business <br />license tax holiday for new businesses that open in San Leandro. The proposed holiday <br />would be for a specific amount of time, such as six months or one year. The intent of this <br />initiative is to grow the City’s revenues by aggressively attracting new businesses to spur <br />investment, increase employment and provide a variety and diversity of services. <br />At the July 1, 2013 City Council meeting, staff presented proposed program parameters and <br />an estimate of the fiscal impact of the proposal. The City Council expressed support for <br />moving forward with a Business License Tax Holiday for New Businesses . <br />BACKGROUND <br />The City Council has stated goals of fiscal sustainability and program development to <br />advance the City’s economic position and reflect innovation . These goals have taken front <br />stage in recent years due to economic challenges globally and the demise of redevelopment <br />locally. Given that cities rely heavily on sales tax revenue to provide vital services and build <br />projects, there is a constant need to work toward revenue diversification and enhancement. <br />To address the challenges of limited revenue and increasing costs to provide services , San <br />Leandro has taken a number of aggressive steps to spur economic activity including: <br />·Recruitment of Kaiser Hospital project <br />·Private-Public Partnership to begin and expand Lit San Leandro, and the creation of a <br />new role of Chief Innovation Officer to support this key initiative <br />·Downtown San Leandro investment, such as the parking garage, pedestrian and <br />Page 1 City of San Leandro Printed on 7/10/2013