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File Number: 14-276 <br />A primary benefit of the Business License Tax Holiday is the message it sends regarding San <br />Leandro’s willingness to support new businesses. Combined with a robust program of <br />business incentives, the One Stop Permit Center, and a business-friendly attitude by staff, the <br />Tax Holiday helps to proclaim that San Leandro is open and ready for business. Toward that <br />end, publicity for the tax holiday was important as the City sought to spread the word about <br />this program. Outreach was very successful and the coverage helped to draw attention to the <br />numerous positive developments occurring in San Leandro. <br />Press coverage of the Business License Tax Holiday included the following media outlets: <br />Date Source <br />July 11, 2013 San Leandro Times <br />September 3, 2013San Leandro Patch <br />September 3, 2013Bay Area News Group (Hayward Daily Review, Oakland <br />Tribune, San Jose Mercury News) <br />September 4, 2013California Political News and Views <br />October 18, 2013San Francisco Business Times <br />February 23, 2014KTVU News (television) <br />February 24, 2014The Daily Caller <br />New Businesses and Financial Impact <br />As of May 21, 2014, 207 new San Leandro businesses qualified for the Business License Tax <br />Holiday. Those businesses employ 1,475 people. Total revenue foregone is $109,982, <br />including both business license and zoning conformance fees that were waived. By August <br />31, 2014, staff estimates that the total cost of the program will be approximately $152,000. <br />Staff compared this data against the same period a year earlier and found that the pace of <br />new business openings has been slightly slower in the current year, since the establishment <br />of the program. For the same period in the prior year, an estimated 350 new businesses <br />opened in San Leandro, employing about 1,250 people. <br />For additional comparison, in 2012 approximately 340 new businesses opened in San <br />Leandro, employing approximately 850 people. In 2011, approximately 420 new businesses <br />opened in San Leandro, employing approximately 1,150 people. <br />The primary reason for the current year having fewer new businesses but more employees is <br />that the Permanente Medical Group obtained its first business license in November 2013. <br />With over 700 employees, this operation is highly atypical for a new business. The average <br />number of employees for a new business in San Leandro is typically around four. The <br />following table shows new business license data for the past four years, excluding Kaiser <br />which is considered an anomaly and not indicative of an overall trend. <br />Time Period New BusinessesNew Employees <br />9/2013 - 5/2014 (9 months)206 700 <br />9/2012 - 5/2013 (9 months)350 1,250 <br />1/2012 - 12/2012 (12 months)340 850 <br />Page 2 City of San Leandro Printed on 7/2/2014