San Luis eyes tax breaks to lure firms

City would cover half of payments

This city is considering giving a sales tax break of 50 percent to a hotel and at least two other businesses as an incentive to come to San Luis.

Under a preliminary proposal, the city would cover half of the annual sales tax payments owed over a 15year period by the hotel, an adjacent restaurant and a service station.

San Luis officials predict the city would more than make up for the lost revenue if, as anticipated, the three commercial ventures were to create jobs for city residents.

Jenny Torres, the city’s community development director, said the hotel would have at least 75 rooms for guests and that it and the other businesses potentially could create 120 jobs.

Exactly how many jobs would be created and other benefits the city would get in return for the sales tax break are among the details San Luis officials are working out in talks with San Luis Commercial Holdings Inc., the developer of the proposed commercial complex.

The agreement is expected to be finalized and presented to the San Luis City Council for possible approval at its meeting June 7.

The commercial complex would be on a 6-acre lot at the northwest corner of Main and County 22nd Street. Torres said she could disclose no other details about the businesses.

“We hope to attract those three businesses to that area, and probably a fourth that has yet to be determined,” she said. “We expect the direct benefits will be greater than the incentives the city would offer.”

Prior to a vote on the agreement, the council will hear a presentation on what commitments San Luis Commercial Holdings would make to the city in return for the tax breaks.

The city currently collects a 4 percent sales tax from restaurants, bars and other retail establishments in San Luis.