DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: Council District 6
SUBJECT:
First Amendment to the Tax Phase-In Agreement and Economic Development Grant Agreement dated June 29, 2006 between the City and Lowe's Home Center, LLC.
SUMMARY:
This Ordinance authorizes the City to amend a Tax Phase-In Agreement and an Economic Development Grant Agreement with Lowe's Home Center, LLC. ("Lowe's"), dated June 29, 2006. The Ordinance amends the Tax Phase-In Agreement to include for the redefinition of Full-Time Job to include positions filled by contract workers provided that such positions meet the wage and benefits requirements. The Tax Phase-In Agreement is also being amended to provide for the reduction of non-temporary, Full-Time Positions from twenty-two (22) to fifteen (15); as well as for a reduction in the abatement percentage from 100% to a maximum of 68%. Lastly, this Ordinance amends the Economic Development Grant Agreement to indicate that no further grant payments or fee waivers will be payable to Lowe's for the remainder of the agreement term.
BACKGROUND INFORMATION:
Founded in 1946, Lowe's Companies, Inc. is a publicly traded Fortune 500 company with over 245,000 employees nationwide and more than 1,825 superstores in the U.S., Canada and Mexico. Lowe's shares trade on the New York Stock Exchange (NYSE) under the ticker symbol LOW. With fiscal year 2012 sales of $50.5 billion and net earnings of $2.0 billion, Lowe's has recorded profits every year since becoming public.
The company's stores sell about 40,000 products for home improvement projects, gardening projects, home fashion items, lumber, millwork, plumbing and electrical supplies, and tools, as well as appliances and furniture.
On June 29, 2006, City Council approved a 10 year, 100% Tax Abatement and an Economic Development Grant in the amount of $300,000 for Lowe's provided that Lowe's create 22 high payi...
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