Written by David Castellon
The summer is starting well for Dinuba’s economy, as the city has attracted a large printing and direct-mail business, will see Ruiz Foods expand and inked a new sales tax-sharing deal with its Best Buy Co. distribution center.
Under that 45-year deal, the city’s portion of the electronic giant’s online sales fulfilled from its West Coast distribution center in Dinuba will increase from about $5 million annually to $8 million.
“Sales tax makes up 41 percent of the city’s General Fund revenues. Now a new deal stabilizes the amount and grows it as online sales grow. Above a certain amount the city and Best Buy share sales tax 50-50,” City Manager Luis Patlan states in a press release.
The release doesn’t offer a more detailed explanation of the deal.
“An $8 million nugget every year should make a big impact in a town that as recently as 2014 had sales tax revenue of only $3.3 million from all sources,” the press release continues.
Best Buy has reported that its first-quarter e-commerce sales for 2017 were up by a dramatic 22.5 percent compared to the first three months of last year.
E-commerce comprises about 13 percent of Best Buy’s domestic sales.
In other good news for the city, Woodside Homes is developing new homes on 107 parcels at the planned Ridge Creek Ranch subdivision, near Ridge Creek Golf Club.
Model homes are scheduled to open in July.
In addition, the former Kmart department store at in the 2000 block of East El Monte Way is being remodeled for a new tenant, a Fitness Evolution gym, Dinuba officials report.