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File #: ID#15-1196    Version: 1 Name:
Type: Action Item Status: Passed
File created: 12/16/2015 In control: City Council
On agenda: 12/17/2015 Final action: 12/17/2015
Title: Actions pertaining to a fulfillment center for Nordstrom, Inc. 1. Adopt an Addendum to a Mitigated Negative Declaration prepared for Environmental Assessment No. TPM-2012-06 in accordance with Section 15162 of the CEQA Guidelines; 2. Approve Economic Development Incentive Agreement between the City of Fresno and Nordstrom, Inc.; 3. Authorize the City Manager to negotiate and sign the final Economic Incentive Agreement with Nordstrom, Inc., consistent with the material terms approved by Council, prior to December 31, 2015. SPONSOR: Economic Development Department
Attachments: 1. Nordstrom Economic Incentive Agreement - Attachment A.pdf, 2. Nordstrom Economic Incentive Agreement - Attachment B.pdf, 3. Nordstrom Economic Incentive Agreement - Attachment C.pdf, 4. Nordstrom Economic Incentive Agreement - Attachment D.pdf, 5. Nordstrom Economic Incentive Agreement - Attachment E.pdf, 6. Notice of Special Meeting.pdf
REPORT TO THE CITY COUNCIL



December 17, 2015


FROM: BRUCE RUDD, City Manager

BY: LARRY WESTERLUND, Director of Economic Development

SUBJECT
Title

Actions pertaining to a fulfillment center for Nordstrom, Inc.

1. Adopt an Addendum to a Mitigated Negative Declaration prepared for Environmental Assessment No. TPM-2012-06 in accordance with Section 15162 of the CEQA Guidelines;

2. Approve Economic Development Incentive Agreement between the City of Fresno and Nordstrom, Inc.;

3. Authorize the City Manager to negotiate and sign the final Economic Incentive Agreement with Nordstrom, Inc., consistent with the material terms approved by Council, prior to December 31, 2015.

SPONSOR: Economic Development Department

Body
RECOMMENDATION

The Administration recommends that the Council approve the attached Addendum to a Mitigated Negative Declaration prepared for Environmental Assessment No. TMP-2012-06 and Economic Incentive Agreement between the City and Nordstrom, Inc. (Nordstrom), and approve the draft Economic Incentive Agreement. Additionally, the Administration recommends the Council authorize the City Manager to sign the final Economic Incentive Agreement consistent with the material terms of the draft agreement prior to December 31, 2015. The agreement will provide performance-based financial incentives, via the creation of up to 1,875 jobs at an Internet Fulfillment Center (i.e. Business Activity Center/s) to be located in Fresno.

EXECUTIVE SUMMARY

Nordstrom, founded in 1901, is a publicly traded company listed on the New York Stock Exchange. They have been a member of the Fortune 500 for the last 21 years. Recognized as one of the "World's Most Admired Companies," Nordstrom's market capitalization is $10.1 billion. The Company needs to expand its e-commerce capacity to the West Coast of the United States, and California in particular.

In June 2015, the City of Fresno was contacted by consultants working on b...

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