Milpitas council approves tax‑sharing deal with Rivian for last‑mile hub at 755 Yosemite Drive

Milpitas — The City Council voted unanimously March 4 to adopt a resolution approving an economic development incentive agreement with Rivian LLC that will allow the electric‑vehicle maker to operate a last‑mile hub at 755 Yosemite Drive.

The measure, introduced by Director of Economic Development and Strategic Initiatives Alex Andrade, formalizes an eight‑year tax‑sharing arrangement the staff negotiators said would send an estimated $19.4 million in sales‑tax receipts to the city over the life of the agreement, with Rivian receiving roughly $16.2 million under the projection. Andrade told the council the point‑of‑sale designation for deliveries at the Yosemite Drive site is a critical part of the agreement.

The agreement, as described to council, includes a stepped split of the city’s share of point‑of‑sale tax revenue: years one and two would give Rivian 35% and the city 65%; years four through eight would convert to a 50/50 split. City staff and Rivian presented volume assumptions that start with about 6,000 vehicle sales or leases annually…