Stockton Council OKs 20-year tax-sharing deal to retain Home Depot distribution center with 6–1 vote

The Stockton City Council on March 18 approved a 20-year sales-tax sharing agreement with Home Depot to split half of the city —radley Burns portion (the locally-allocable 1% sales-tax bucket) for an e-commerce distribution center at the Port of Stockton.

Acting economic development director Tina McCarty told the council the project would be a point-of-sale distribution center of roughly 600,000 —00,000 square feet and that the developer projects $50 million to $100 million in annual taxable sales. Under the proposed 50/50 split of the Bradley Burns 1%, the city —ould receive roughly $250,000 to $500,000 per year while Home Depot receives the other half.

"This 1% is the Bradley Burns portion. It is the only portion of the sales tax the state allows us to use as an incentive to attract business," McCarty said, explaining why the city offers a share rather than retaining the full amount. She also said the agreement before council had been corrected to a 20-year term after an earlier circulation inadvertently listed 15 years.

Public commenters raised environmental and public-health concerns tied to increased truck traffic and diesel emissions near the port. A representative of the Delta Sierra Group asked the city to use any incentive funds to reduce resident exposure to air pollution rather than place them in the general fund.

Council members reflected on economic and job benefits and the trade-offs. One council member noted the building is already under construction at the port and described the arrangement as a compromise "50% of something is better than 0%" if the city would otherwise lose the project. A port or company representative said construction is underway with rough grading in progress and the facility expected to operate in fourth quarter 2026.

Council voted 6 — to approve the sales-tax sharing resolution and the recommended updates to the city's office and industrial incentive guidelines; Councilwoman Ponce voted no. The record shows the motion carried, with council direction that staff continue outreach about jobs and mitigation. The council also asked staff to pursue community benefits and job pipelines such as AB 617 hiring goals at the port.

Next steps: the approved agreement will be finalized and the amended incentive guidelines will be posted; staff said they will return to council with relevant administrative items and continue community engagement on environmental mitigation and workforce coordination.