HomeMy WebLinkAbout1997-04-22 - AGENDA REPORTS - PRINCESS CRUISES TAX (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND
AGENDA REPORT
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City Manager Approv
Item to be presented by:
Mike Haviland
April 22, 1997
PRINCESS CRUISES BUSINESS TAX AGREEMENT
Community Development
Princess Cruises, the largest cruise company on the West coast, is considering relocating a
major part of their operations to Santa Clarita. They believe that Santa Clarita represents
a very attractive community in which to relocate, and they are particularly impressed by the
absence of any city business tax.
Although the City of Santa Clarita does not now have a business tax, Princess Cruises would
like the City Council to take an action that would provide assurance, to the extent legally
possible, that the City of Santa Clarita would not impose a business gross receipts tax on
Princess Cruises over the next 15 years. In exchange, Princess Cruises would provide
evidence to the City of Santa Clarita that it will physically relocate its customer service
center to Santa Clarita, and create 600 new jobs within the City by the year 2000.
Princess Cruises is a major corporation in the travel hospitality industry, with its primary
target market being oceanic cruise bookings. They would require the construction of a new
six -story office building that would be located on town center drive. The relocation of
Princess Cruises to Santa Clarita would represent the single largest new employer to relocate
to the City over the last six years, and would conservatively have an economic impact to the
Santa Clarita economy of over $2,743,000 annually.
RECOMMENDATION
That the City Council approve in concept, that it would not establish a business gross
receipts tax on Princess Cruises or other similar businesses, and direct staff to determine and
advise the City Council as to the enforceability of this request. Further, that staff present
appropriate documentation for implementation of this agreement, if legally feasible.
ATTACHMENT
Mayor's Follow-up Letter
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City of
Santa Clarita
23920 Valencia Blvd.
Phone
Suite 300
(805) 259-2489
Santa Clarita
Fax
California 91355-2196
(805) 259-8125
April 23, 1997
Mr. Dennis R. Fuerst
Princess Cruises
10100 Santa Monica Boulevard
Los Angeles, CA 90067-4189
Dear Mr. Fuerst:
Welcome to Santa Clarital The City of Santa Clarita is delighted that you
have selected our city as the expansion location for your customer service
center. In addition to being the fifth safest city of our size in the United
States, we offer a business friendly environment with no business tax. We
are very proud of our community and I know you and your employees will
find Santa Clarita to be a great community in which to live, work, and play.
At last night's City Council session, we discussed your concern about the
introduction of a future business tax that might impact Princess Cruises at
a later date. Based on our discussions, I can say that this city is not
moving to create a new business tax nor does it intend to in the future. WE
have directed our City Attorney and staff to begin working with you and
your staff to develop the proper supporting documents consistent with our
position. Please expect our City Attorney to contactyouthis week.
Once again, welcome to Santa Clarita!
Sincerely,
Hamilton C. Smyth
Mayor
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