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<br /> <br /> <br />Chamber Letter to Council RE: Agenda Item 7.A. <br /> <br />With the city in the midst of efforts to grapple with record commercial real estate vacancies, it is <br />concerning that the proposal would put at risk businesses that could be forced to leave the city, <br />thus exacerbating this vacancy problem. Additionally, should larger businesses be forced to take <br />leave of the city, those smaller businesses who provide support to larger businesses – such as <br />restaurants, café’s, print shops, suppliers and the like – will also be doubly impacted, first with <br />their own tax increase under this model, and second with the impacts of losing customers. The <br />City’s proposal will have a cascading effect that impacts businesses, workers, families and school <br />districts. This is why it is essential that Council reject the rates as proposed and adjust them to <br />reasonable levels, and significantly lower the cap for the total amount businesses would be <br />required to pay. <br /> <br />While the Chamber has committed its efforts over the last several months to work collaboratively <br />with the City and focus on finding solutions and surfacing alternatives, we cannot help but wonder <br />if we could have avoided this mad-dash to the finish to beat the deadline for placing a measure <br />on the fall 2024 ballot. As Council will recall, it was not until after clear instructions were given to <br />staff in April 2024 that businesses were engaged in any meaningful way to process this issue and <br />provide feedback about impacts and offer alternatives. Any notion of earlier efforts of <br />engagement of the business community is a misapplication of the concepts of inform rather than <br />invite – more simply put, being told rather than being asked are two different approaches. <br /> <br />We need Redwood City to be a healthy, thriving and welcoming community that supports its <br />residents and its businesses. We must carefully balance the elements of this community eco- <br />system that we create and support. With the business license tax measure that Council is being <br />asked to consider, the eco-system will become unbalanced and harmful effects will be realized <br />well into the future. <br /> <br />We encourage Council to reject the per-employee rates and tax liability cap that have been <br />proposed and lower them to much more reasonable rates that do not adversely impact business’ <br />abilities to thrive and grow in Redwood City and do not make the city an unattractive municipality <br />for attracting new businesses. <br /> <br />We appreciate the work of Council and staff in evaluating this complex issue and ask that you <br />take additional time and make additional modifications to adjust the proposal to create a <br />reasonable and acceptable outcome. <br /> <br />Sincerely, <br /> <br /> <br /> <br />Amy N. Buckmaster <br />President & CEO <br /> <br />C: Melissa Stevenson-Diaz, City Manager, City of Redwood City <br /> Michelle Poché Flaherty, Assistant City Manager, City of Redwood City <br />Patrick Heisinger, Assistant City Manager, City of Redwood City <br />Jennifer Yamaguma, Deputy City Manager, City of Redwood City <br />Jeff Schwob, Community Development Director, City of Redwood City <br />Lennies Guiterrez, Chair of the Board, Chamber San Mateo County <br />Board of Directors, Chamber San Mateo County