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Economic Development Incentive Awards
The City of San Diego partners with businesses to help them expand and continue to succeed here.
Nomad Donuts, LLC
Nomad Donuts manufactures and sells gourmet donuts.
Address: 4504 30th St., San Diego, CA 92116, expanding and opening a second location at 3102 University Ave., San Diego, CA 92104.
Term: Five years, May 1, 2017-May 1, 2022
Economic Development Incentive Award: Equipment purchase loan to Nomad in amount not to exceed $150,000 from the Small Business Micro Revolving Loan Fund (SBMRLF) and at 8 percent interest
Purpose: To retain all of Nomad’s operations, including six full-time jobs and five part-time jobs, in the City, assisting in its expansion and contributing to the economic vitality of the City
Public Hearing: April 10, 2017 City Council Meeting Minutes
| NOMAD DONUTS | Projected |
|---|---|
| Job Creation | 17 full-time jobs |
| Net Tax Revenue | $100 per year |
| Loan Status | $150,000 |
JDZ Inc. DBA AleSmith Brewing Co.
AleSmith Brewing Co. manufactures, sells and distributes malt beverages.
Address: 9368 Cabot Drive, San Diego, CA, 92126, relocating to 9990 Empire St., San Diego, CA 92127.
Term: Eight years, April 1, 2015–April 1, 2023
Economic Development Incentive Awards: Working-capital loan agreements of $250,000 from the San Diego Regional Revolving Loan Fund (SDRRLF) and Small Business Micro Revolving Loan Fund (SBMRLF); and fee reimbursement of fees incurred by Dec. 31, 2015, not to exceed $180,000
Purpose: To retain AleSmith’s presence in the City and assist in funding its expansion of operations and facilities, contributing to the economic vitality of the City by adding jobs and maintaining and expanding the City’s tax base
Public Hearing: March 23, 2015 City Council Meeting Minutes | June 23, 2014 City Council Meeting Minutes
| ALESMITH | Projected |
|---|---|
| Job Created and Retained1 | 48 full-time jobs |
| Net Tax Revenue | $50,000 per year |
| Loan Amount | $250,000 |
| Fee Reimbursement | Up to $180,000 |
1Job creation was not a requirement associated with the Economic Development Incentive Award.
Home Brew Mart Inc. DBA Ballast Point Brewing & Spirits
Ballast Point manufactures, sells and distributes malt beverages and distilled spirits.
Address: 10051 Old Grove Road, San Diego, CA 92131, expanding operations to a new manufacturing and distribution facility at 9405 Carroll Way, San Diego, CA 92121.
Term: Reimbursement limited to fees incurred by Ballast Point prior to June 30, 2014.
Economic Development Incentive Award: Fee reimbursement to Ballast Point of $160,000 using the sales and use taxes. The reimbursement is contingent upon Ballast Point's generation of additional tax revenue for the City at this brewery. It is estimated that the reimbursement would average about $53,000 per year for three years. Additional assistance included obtaining angled parking for new manufacturing facility.
Purpose: To retain all of Ballast Point’s manufacturing operations in the City, contributing to the economic vitality of the City by adding jobs and maintaining and expanding the City’s tax base.
Public hearing date: June 23, 2014 City Council Meeting Minutes
| BALLAST POINT | Projected |
|---|---|
| Job Creation1 | 100 full-time jobs |
| Net Tax Revenue | $50,000 per year |
| Fee Reimbursement | Up to $180,000 |
1Job creation was not a requirement associated with the Economic Development Incentive Award
Illumina Inc.
Illumina is a large biotechnology company that develops, manufactures and sells a wide variety of genome-sequencing medical devices and provides related services to its customers.
Address: 5200 Illumina Way, San Diego, CA 92122, and 9440 Carroll Park Drive, San Diego, CA 92121
Term: 10-year term from the time of the agreement
Economic Development Incentive Award: $1.5 million in local sales and use tax rebates. The rebate would be equal to 70 percent of local sales tax revenues and 100 percent of use tax revenues paid and reported by Illumina. Financial assistance is not to exceed $1.5 million, plus 3 percent interest compounded annually.
Purpose: To retain Illumina’s manufacturing operations, within the City, contributing to the economic vitality of the City by creating jobs and maintaining and expanding the City’s tax base. Manufacturing activities are expected to generate three additional indirect and induced job opportunities within manufacturing as well as non-manufacturing sectors for each direct manufacturing sector job due to the high job creation multiplier of 4:1.
Public hearing date: Aug. 7, 2014 City Council Meeting Minutes | EDIA Agreement
| ILLUMINA | Projected |
| Jobs Created and Retained1 |
100 full-time, middle-wage manufacturing jobs created 300 jobs retained |
| Net Tax Revenue | $1.5 million annually |
1 Job creation was not a requirement associated with the Economic Development Incentive Award. Retention of 300 jobs was a requirement.
In accordance with California Assembly Bill No. 562 (AB 562), this page provides information about the businesses that have received an economic development incentive award greater than $100,000 from the City of San Diego. AB 562 requires “any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits.”
Beginning Jan. 1, 2014, AB 562 required the City of San Diego’s Economic Development Department to provide specified information to the public before approving an economic development award of funds within its jurisdiction, and to review, hold hearings and report on those awards at specified intervals.