REPORT TO THE CITY COUNCIL
November 17, 2016
FROM: BRUCE RUDD
City Manager
BY: LARRY WESTERLUND
Director of Economic Development
SUBJECT
Title
Actions pertaining to Economic Incentive Agreement with ULTA, Inc., a Delaware Corporation
1. Adopt an Environmental Finding of No Possibility of Significant Effect Environmental Assessment No. EA-16-036.
2. Approve the attached Economic Incentive Agreement with ULTA, Inc. a Delaware Corporation for the creation of up to 1,200 jobs at a Business Activity Center(s), including but not limited to an e-commerce distribution/fulfillment center to be located in Fresno.
Body
RECOMMENDATION
The Administration recommends that the Council approve the attached Environmental Finding of No Possibility of Significant Effect Environmental Assessment No. EA-16-036 related to the Economic Incentive Agreement between the City and ULTA, Inc. (ULTA) and approve the attached Economic Incentive Agreement. Per the City's Economic Expansion Act adopted in March 2016, this project is eligible for a revenue sharing incentive agreement. The agreement will provide performance-based financial incentives, via the creation of up to 1,200 jobs at a Distribution/Internet Fulfillment Center (i.e. Business Activity Center/s) to be located in Fresno.
EXECUTIVE SUMMARY
Ulta Salon, Cosmetics and Fragrance, Inc., founded 25 years ago, is the largest beauty retailer in the United States and the premier destination for beauty products. ULTA is a publicly traded company listed on the NASDAQ stock-exchange with a market capitalization of over $14 billion. They are a member of the Fortune 1000 with revenues of nearly $4 billion a year and employ over 18,000 team members. The company needs to expand its e-commerce capacity to the Western United States and California, in particular. Ulta Salon, Cosmetics and Fragrance, Inc, is the parent company for ULTA, Inc. that handles their distribution and e-commerce fulfillment needs.
In Septem...
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