CC 04-16-2024 Item No. 6 & 7 Ordinance 24-2258 & 24-2259_Written CommunicationsCC 04-16-2024
Item No. 6 & 7
Adoption of Ordinance
24-2258 and 24-2259,
Development Agreement
for Cupertino Village
Boutique and DE Anza
Hotel
Written Communications
From:Rhoda Fry
To:City Clerk; City Council
Subject:City Council 4/16/2024 agenda #6 and #7 hotel development agreements should capture sales taxes on
materials
Date:Friday, April 12, 2024 8:43:34 AM
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Dear City Council,
I would ask that the development agreements with these hotels and all major projects be
modified to have the companies assign Cupertino as their principal location for purchasing.
This might involve having the developer set up an llc within the City.
Why?
For the two hotels, we could easily capture $1M in sales-tax-revenue in materials.
Yes, it would be a one-time deal, but considering that our projected sales-tax-revenue is
around $9M, that extra money could make a big difference.
Consider, each hotel costs about $100-$150M to build.
That’s $200 to $300M for both hotels.
Typically half of construction cost is materials.
That’s $100 to $150M in materials.
We get $1 out of every $100 spent in sales-tax revenue.
That translates to $1 to $1.5M in sales-tax-revenue.
When we are looking at cutting things from the budget that cost $30K, it seems to me that we
should be doing whatever we can to capture sales-tax revenue.
Thanks much,
Rhoda Fry
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