The Agency made significant progress in advancing the availability of shovel-ready industrial parcels in the Freeway 99 Corridor during the past year. For some time, the Agency has been working to stimulate industrial development on a 38 acre vacant parcel near the intersection of Ashlan and Brawley Avenues that culminated on January 20, 2011 with Agency Board approval of an MOU with Don Pickett & Assoc. (DPA) to subdivide the property into 70 industrial parcels. The Agency will reimburse up to $1.7 million of the estimated $3.4 million in public infrastructure required following the developer’s completion of construction and dedication of (8) acres for street right-of-way.
At build out the development is estimated to increase assessed property value by $45 million that yields about $335,000 annually to the Agency. Based upon our experience in facilitating similar small lot industrial subdivisions, this type of development produces one of the strongest long-term new tax revenue streams for City finances. In addition to the strong new property tax increment, these types of business parks usually become home to service industries that produce significant new sales tax revenue. In addition, because of the large number of individual businesses, gross City business license revenue is significantly greater than if the property were owned by a single large user. Finally, these individual businesses are collectively projected to employ in excess of 400 employees upon final build out.