West Sac offers incentives to electric vehicle manufacturer
NEWS-LEDGER – APRIL 13, 2011 –
(Editor’s note: in his April 14 ‘State of the City’ speech, Mayor Christopher Cabaldon cited this company as an example of promising new industry coming to West Sacramento. He didn’t name the company because the deal hasn’t been finalized. Here’s our article from April 13.)
By Steve Marschke
West Sacramento’s staff is negotiating to bring a manufacturer of electric vehicles to the Port Industrial Park.
Stockton-based EVI plans to move somewhere along the I-80 corridor and ramp its 2010 sales volume of $771,000 up to as much as $45 million by 2013 – employing 140 people in a 70,000 square foot facility, according to a report to the city council last week.
The company hopes to help finance the move and expansion with a federal Community Development Block Grant loan, and West Sacramento proposes to help it repay that loan by offering $10 of “tax increment” from the redevelopment agency for every $1,000 that EVI books in sales from West Sacramento. The assistance would be capped at $100,000 per year and $574,000 total.
“Participation payments will always be at least equivalent to the City’s sales tax revenue (from the company) for the same period,” said the report. That makes the subsidy “cost neutral,” it added.
The council last week approved the development of a “business participation agreement” with EVI.
The company makes electric light- and medium-duty trucks and walk-in vans for commercial fleets. Proposed local customers include the shipping firm UPS, which has said it is interested in buying vehicles from EVI.
The council report was prepared by Diane Richards of the economic development report, Jon Robinson of the redevelopment agency and Charline Hamilton of the community development department.