HomeMy WebLinkAboutStudy Session - De Minimis PresentationINVEST PD &
DE MINIMIS
PROVISIONS
Study Session
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INVEST PD
•RE-ESTABLISHED IN 2022
•$660,000 AVAILABLE FOR 6 PROGRAMS
1.Rebate of Development and plan check fees
2.Grants for Capital Improvements
3.High -Wage Move -In Assistance
4.Site Specific Revenue Sharing
5.New Development Project Assistance
6.Ongoing and Other Incentives
2Study Session
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CURRENT
CONSTRAINTS
-Prevailing Wage concerns
-Timing concerns
-Limited Funding Availability
F I T N E S S P R E S E N TA TI O N 3Study Session
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“DE MINIMIS”
A public subsidy is “de minimis” if it is both less than $600,000 and less than 2% of total
project costs (Labor Code § 1720(c)(3)(b)(i)
Projects which do not exceed BOTH thresholds are considered “de minimis” and are
not subject to prevailing wages
F I T N E S S P R E S E N TA TI O N 4Study Session
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INVEST PD
1.Site Specific Revenue Sharing
-TOT Sharing/Reimbursement
-Sale Tax Sharing/Reimbursements for automotive sales
2.Ongoing and Other Incentives
-Should De Minimis be included here?
Requirements
-Submit application
-Demonstrate Public Purpose (jobs, taxes)
-Demonstrate Financing Gap
-Demonstrate Return
-Enter into agreement with City for reporting and use of
funds
5
Benefit here is that no monies are
committed upfront, and they are
dispersed through a sharing agreementStudy Session
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POTENTIAL USE
•HOTELS: 3 -4 INTEREST BETWEEN MONTEREY AND COOK
ST.
•3+ star
•96-130 rooms each)
•DEVELOPERS (MONTEREY CROSSINGS – BOTH HOTEL AND
AUTOMOTIVE SALES
•TOT SHARING AGREEMENTS WITH HOTELS
•INVEST PD WITH MONTEREY CROSSING
6Study Session
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INVEST PD
•APPLY THROUGH INVEST PD
•CITY COUNCIL HEARING AND CONSIDERATION
7Study Session
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