Tulare offers tax subsidy to develop Cartmill Ave

(Rigo Moran)

Tulare City Council approves sales tax sharing plan with two developers for commercial properties at Cartmill Avenue east of Highway 99

TULARE – Looking to boost investment along the Highway 99 corridor, the City of Tulare is offering incentives to develop on both the north and south side of Cartmill Avenue east of the highway. The city will rebate a portion of sales tax revenue once the projects develop.

The incentives are being offered to two developers. San Rafael, Calif.-based UG2 Tulare, CA LP is developing land south of Cartmill where a planned Maverik fueling station is being built. Tulare-based Cartmill Commons, LLC is developing north of Cartmill where up to 10 parcels could house future retail and highway commercial uses. All would be big sales tax generators.

The Tulare City Council held a public hearing on the tax incentive rebate on Feb. 6. No one spoke for or against the subsidies and the council unanimously approved term sheets with both developers.

The proposed subsidy would enable the construction of a gas line, anticipated to commence on or before March 1, 2024 and take approximately six months to complete. However, no financial subsidies will be paid to applicants until confirmation from the city’s sales tax reporting consultant on the properties benefitting from the new infrastructure installation.

(Rigo Moran)

Payment will continue on an annual basis until payments have reached a value of $200,000 each to Cartmill Crossings and UG2 Tulare.

The city will make annual sales tax sharing subsidy payments to the property owners in the amount of 50% of the sales tax generated from the new retail/commercial uses located on the subject properties. Projected tax revenue to the local agency as a result of the economic development subsidy.

Furthest along is a project to build a Maverik gas station on land owned by UG2 Tulare. According to the fueling center’s operational statement, estimated total gross sales are $20-30 million in fuel and convenience store sales. The gas station’s estimated return in sales tax is approximately $2-$3 million per year.

That could mean $1.5 to $2 million in estimated sales tax revenue for the city each year, based upon ancillary uses on approximately 16 acres of commercially zoned property.

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