Brea approves sales tax subsidy for developer in hopes of attracting a Costco [Los Angeles Times (CA)]
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Source: Los Angeles Times
The Brea City Council Tuesday voted to approve the agreement that gives developer Dwight Manley a year to bring a Costco to Brea to a northern parcel of a 34-acre property he is in the process of acquiring. The agreement will rebate Manley 100% of the sales tax revenue generated by a future Costco in the first two years alone. Over the course of the 50-year agreement, the city would collect 42.5% of the sales tax. “Costco does not enter into agreements with cities,” Manly told the council. “It's up to the property owner. They've had property owners do this in many instances where cities participated because they wanted a Costco.” Manly, who owns properties in downtown Brea and elsewhere throughout the city, claimed that four months of negotiations between Hines, the real estate investment firm that currently owns the property, and Costco hit a wall. Other bidders, he said, are interested in developing an Amazon warehouse or high-density housing on the site. Last month, Manly
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