MARINA – The Marina City Council voted unanimously to take its first step in creating a Capital Investment Incentive Program for a potential future community services agreement between the city and Joby Aviation that would set the stage for a new manufacturing plant, hundreds of jobs, tax revenues for the community, and many other benefits.
At the city council meeting on Tuesday, Marina City Manager Layne Long pointed out that Joby is a business that has operated in Marina for five years.
As it continues to build and test its Electric Vertical Take-Off and Landing vehicles while awaiting Federal Aviation Administration approval for a share of airspace, Joby Aviation has been trying to figure out where it will build a manufacturing facility to turn out hundreds of vehicles once it gets the green light from the agency.
“The capacity they have at our airport is maybe eight to 10 airplanes a year which is great for them right now as they’re developing their prototypes,” said Long.
But California, and specifically Marina, are competing with five other states to get Joby’s proposed $192 million, 580,000-square-foot advanced manufacturing facility, with $400 million in equipment, built here.
Long said the facility will be adding 1,800 additional employees (engineers, technicians, assemblers, machine operators, etc.) not all working at the manufacturing facility, but if it’s built here their regional workforce will expand.
The state of California has established the Capital Investment Incentive Program which allows companies that meet certain criteria to be eligible to receive some assistance with their property tax. The eligible companies must be in manufacturing, aerospace, or alternative energy production.
Any city or county seeking to offer assistance under the Incentive Program must first adopt a resolution by its governing body authorizing its staff to work with the state in participating in the program and offering this incentive to qualified businesses.
Marina would be the first city in California to successfully use this program if all goes as planned.
“The state is very interested in the city of Marina and would like to demonstrate and show that this really is a good tool that is out there for cities to use so it will be groundbreaking,” said Long.
Companies seeking assistance under the Incentive Program must make a written request to the city, provide a detailed description of the investment being contemplated, and specify the number and types of jobs being created. The city and the potential company enter into a Community Services Agreement detailing the terms and conditions of the Incentive Program.
Joby Aviation has requested assistance under the Incentive Program and its owner, JoeBen Bevirt, has indicated a preference to have the facility built in Marina, but his company is publicly traded now and his investors will certainly weigh in.
“What we’re trying to do is compete with these other states to keep Joby here,” said Long. “The state of California really has engaged quite strongly the last (few) months, now they really understand what Joby Aviation is. We’ve been working with them, and Monterey County has really come on board the last few months.”
The Monterey County Board of Supervisors has also indicated an interest to participate in the Incentive Program with Joby Aviation similar to Marina.
Long said the city submitted a proposal recently Friday which has about $226 million worth of incentives in the form of grants, property tax, sales tax, and use tax, among other incentives.
“Governor. Newsom has directed his Office of Business and Economic Development to work closely with us and the county and they’ve been great,” said Long. “We think what we’ve put together is great … it’s going to be very competitive, and it’s our understanding that in the next month Joby Aviation will be making a decision on where they are going to be building this manufacturing facility.”
Long said the specifics of the plan are for a 15-year program. It requires that Joby invest $150 million before any of these property tax incentives kick in. Of the property tax that is generated off the new manufacturing facility, 75% will be reimbursed to Joby Aviation with the remainder being split 50-50 between Monterey County and the city of Marina.
“We’ve projected that our participation in this program for 15 years, we’ll be rebating back to Joby Aviation $6 million, and in the same period of time we’ll be receiving $4 million in property tax,” said Long. “And if we decide not to participate we won’t get any money. No one else will build on this tarmac.”
According to city documents, this action may result in increased residual property tax revenues to the city, totaling up to an estimated $4 million over 15 years. Including off-site jobs within the city of Marina supported by Joby business and employee spending, the project is estimated to generate a total of 480 jobs with a combined $56 million in annual employee payroll. A total of about $300 million per year in economic output for the city of Marina economy is projected to be generated.
District 1, Council Member Brian McCarthy recused himself from the proceedings, and did not vote, due to his investment in Joby Aviation.
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