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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