Looking to boost investment along the Cartmill & 99 corridor, the City of Tulare is offering incentives to develop on both the north and south side of Cartmill east of the highway.The city would rebate a portion of sales tax revenue once the projects develop.
The incentives are being offered to two developers – south of Cartmill to UG2 Tulare, CA LP where a planned Maverik fueling station is being built , and north of Cartmill to developer Cartmill Commons where up to 10 parcels could house future retail and highway commercial uses.All would be big sales tax generators.
The city will hold a public hearing at 7:00 p.m., or soon thereafter, on Tuesday, February 6, 2024, in the Council Chamber, 491 North M Street.
The names of the beneficiaries of the economic development subsidy are Cartmill Crossings, LLC, 20799 Road 132, Tulare, CA 93274 and UG2 Tulare, CA LP, 1000 Fourth Street, Suite 290, San Rafael, CA 94901.
Gas line needed
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 shall be paid to applicants until confirmation from the City of Tulare’s sales tax reporting consultant of revenue received on the properties benefitting from the new infrastructure installation.
Payment shall continue on an annual basis until payments have reached a value of $200,000 each to Cartmill Crossings, LLC and UG2 Tulare, CA LP.
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.
Estimated total gross sales per operational statement of Maverik, Inc. dated May 10, 2023: $20-30million in fuel and convenience store sales. Estimated return in sales tax: Approximately $2,000,000-$3,000,000/year.
The city estimates total sales tax generation to Tulare based upon ancillary uses on approximately 16 acres commercially zoned property within the City of Tulare: $1,500,000-$2,000,000/annually.