2022-04-20 City Council Item No. 11.2 Agreement with Savage Chef Presentation Regular MEETING - Additional Meeting Materials11.2 Economic Development Operating
Incentive Agreement with Savage Chef and Co.
April 20, 2022
•On August 21, 2013, the City Council approved Ordinance No. 2013-130 creating the Menifee Business Incentive Program
•Flexible Tool for Business Attraction, Expansion and Retention Needs
•COVID-19-Office of Economic Development began discussion with
Savage Chef and Grill
Background
•Mercato Del Sole
(Newport Rd and Antelope
Road) former Menifee Town
Center
•Plaza Owner Partnership
Location
Bar & Grill
Features:
•Executive Chef
•Sous Chef
•35 local employees
•Entertainment
•Unique-chef
inspired meals
•Healthy/Cheat
Meals
•Meal-prep
Concept
•Per the Agreement, funding for this item will be derived from fifty percent (50%) of the
annual sales tax revenue from Savage Chef & Co. paid to the City in a not-to-exceed
aggregate amount of $50,000 dollars, or four years, whichever comes first.
•Based on Savage Chef Bar & Grill performance projections, below is a projected payment
schedule for the operating agreement:
Incentive Projections/Fiscal Impact
* Not including $12,777 in property tax generation
$50,000 PAYMENTS 50% Over 4 years
Sales Tax City Retains DD City Retains TOTAL CITYCumulative Total
Year 1 14,947$ 14,947$ 29,894$ 44,841$ 59,788$
Year 2 15,694$ 15,694$ 31,388$ 47,082$ 62,776$
Year 3 16,494$ 16,494$ 32,989$ 49,483$ 65,978$
Year 4 2,864$ 31,114$ 33,979$ 65,093$ 67,957$
TOTAL 50,000.00$ 78,249.34$ 128,250$ 206,499$ 256,499$
•No fiscal year budget increase needed
•Subsidy Report was noticed as required
•Public Hearing Notice was posted as required
•Staff Recommends Approving an Economic Development Operating Incentive Agreement with Savage Chef and Co.
Staff Recommendations
QUESTIONS?Thank you.