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A. Findings and Purpose. The city of Everett, the state of Washington, the Port of Everett, and the Boeing Company on December 19, 2003, entered into the “Project Olympus Master Site Development and Location Agreement” concerning the location in the city of the facility for the manufacturing of the aircraft commonly referred to as the 7E7. The purpose of said agreement was to assist Boeing in obtaining a suitable site including buildings, related facilities, infrastructure, and other improvements for the location of the final assembly of the 7E7 aircraft and other operations related thereto. As a result of diligent good faith negotiations, the city and Boeing have agreed on a business and occupation tax reduction to be permanent for the calendar years 2006 through 2023. During such period the city agrees not to suspend, revoke, or require repayment of such reduction as authorized by its business and occupation tax reduction; provided, that final assembly of the 7E7 aircraft begins by December 31, 2007. The rate reduction by the city is intended by the parties to create an estimated net present value reduction of approximately thirty-five million dollars, which amount is calculated using a six percent discount over a twenty-year period beginning 2004 and based on current estimated aircraft production and sales.

B. Intent. In 2002 the city enacted Ordinance No. 2582-02, relating to business and occupation tax. Ordinance No. 2759-04 subsequently made several changes to the city’s business and occupation tax provisions and was to become effective on January 1, 2006. Thereafter, the city adopted Ordinance No. 2810-04 which repealed Ordinance No. 2582-02 and replaced it with business and occupation tax provisions mandated by state law. Thus, upon becoming effective, Ordinance No. 2759-04 was no longer amendatory, but also was not repealed.

Despite not being reflected in the city code, Ordinance No. 2759-04 has continuously evidenced a clear legislative intent that its provisions apply to the city’s business and occupation tax provisions since becoming effective on January 1, 2006. Nevertheless, the council now desires to resolve any potential ambiguity concerning Ordinance No. 2759-04’s effectiveness and to retroactively enact the provisions of Ordinance No. 2759-04. (Ord. 3711-19 § 1, 2019.)