REPORT TO THE CITY COUNCIL
April 5, 2018
FROM: WILMA QUAN-SCHECTER, City Manager
Office of the Mayor & City Manager
BY: LARRY WESTERLUND, Director
Economic Development
SUBJECT
Title
Approve the Economic Incentive Agreement with The Gap Inc., a Delaware Corporation, to incentivize the relocation of their e-commerce fulfillment operation from out-of-state to Fresno to create at least 500 new jobs and to retain their current 351 distribution employees at their Pacific Distribution Center in the City of Fresno.
Body
RECOMMENDATION
The Administration recommends Council approve the 30-year Economic Incentive Agreement between the City and The Gap, Inc. (Gap) to bring their e-commerce fulfillment operation from out-of-state, thereby ensuring the sustainability of their current distribution center in Fresno. Per the City's Economic Expansion Act adopted in March 2016, this project is eligible for a revenue sharing incentive agreement for the purpose of job creation. The agreement provides performance-based job-creation incentives for the creation of at least 500 net new jobs, and potentially hundreds more part-time and/or seasonal employees during peak business periods, at an e-commerce operation to be located in available space within their current facility. In addition to creating more than 500 new jobs at the new fulfillment center, the move will also ensure continued sustainability of their 351 employees currently employed at their Fresno facility.
EXECUTIVE SUMMARY
Gap is restructuring its corporate logistic and supply chain processes. As a result, the company would like to move its e-commerce fulfillment center operation to be co-located with its store distribution facilities. As part of the realignment, the company desires to move its e-commerce fulfillment center currently located out-of-state to its Pacific Distribution Center located in Fresno.
In September 2017, the City of Fresno was contacted by consultants working on behalf of the ...
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