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Benicia engages HDL to analyze potential economic impacts of a Valero refinery closure
Summary
City staff told the oversight board it has engaged HDL to prepare an economic analysis of a potential closure of the Valero Benicia refinery focused on city revenue and employment effects; staff said the study will start with city revenue impacts and may expand if capacity allows.
City staff told the Local Tax Oversight Board the city has engaged HDL to develop an economic analysis of the potential closure of the Valero Benicia refinery and its likely effects on city revenue and employment.
"The city has engaged with HDL to develop a economic analysis of the potential closure of the Valero Benicia refinery," Jeff, the finance director, said, adding the scope is restricted to impacts on the city's revenue streams and staffing needs necessary to inform budgeting decisions. He said the analysis would examine sales-tax, property-tax and transient-occupancy-tax effects and would include employment impacts.
Board members asked whether the study would include job losses at Valero and downstream effects on local spending; staff said the intent is a comprehensive economic analysis of revenue and employment impacts. One board member reported that Valero's overall philanthropic contributions are "a little over $1,000,000," with direct Benicia contributions in the range of $400,000 to $500,000, and urged the board to consider those community impacts when evaluating potential scenarios.
Staff said it will first focus on the fiscal impacts to the city organization and may expand the scope later to quantify broader community and nonprofit impacts if resources permit. The board discussed continuing the topic under the next agenda item (communications from staff and members).
