4B

In 1994, San Benito residents approved to adopt changes to the existing one-half of one percent sales tax dedicated to promoting economic development. As approved under section 4B, the San Benito EDC could continue to fund the more traditional initiatives that facilitate manufacturing and industrial activity as before and additionally fund projects which are considered community development initiatives.

For example the 4A traditional projects could include funding for the provision of land, buildings, equipment, facilities and targeted infrastructure for the creation or retention of primary jobs for projects such as:

Manufacturing and industrial facilities
Research and development facilities and
Distribution centers

Authorized categories under Section 4B include, among other items, land, buildings, equipment, facilities, expenditures, and improvements for:

Professional and amateur sports facilities
Park facilities and events
Entertainment and tourist facilities and
Affordable Housing

The responsibility of the San Benito Economic Development Corporation (SBEDC) is to reinvest these funds to expand the city's property tax base and create quality job opportunities for our residents. Companies are required to complete an Application for Funds to be considered for approval through the Finance Committee and the Board of Directors. The required business plan and related documentation must be provided. The SBEDC may also conduct an Economic Impact Analysis to determine the projected economic impact the project will have on the City of San Benito.

Based on the projected economic value of the project to the City of San Benito, the SBEDC prepares an Economic Development Agreement , which outlines the Company’s Performance Requirements that must be met to qualify and receive the SBEDC economic incentives. The Performance Requirements may include the number of full-time jobs to be created, the capital investment, size of space leased or built and other details specific to the project. Also included are clawback or recapture provisions in the case that a project does not meet its performance measures.

To formalize the deal, the project is published providing a sixty day public comment period with a public hearing. The final step is City Commission approval.

Please contact our office with any questions on project eligibility or the application process.