Exhibit CC 02-05-13 Item # 8SALES TAX
WE HAVE A CONCERN AFTER REVIEWING THE APPLE SALES TAX AGREEMENT & THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PALO ALTO AND STANFORD HOSPITAL AND
CLINICS AND THE TERM SHEET BETWEEN THE CITY OF MENLO PARK AND F ACEBOOK: THE
POSSIBILITY THAT THE SALES/USES TAX GENERATED BY THE CONSTRUCTION OF APPLE CAMPUS
2 MAY SIGNIFICANTLY DECREASE THE AMOUNT OF REVENUE TO THE CITY FROM APPLE SALES
TAX DUE TO THE DEFINITION OF NEW LOCAL SALES TAX REVENUE.
5. DEFINITIONS
CITY OF CUPERTINO & APPLE
AGREEMENT FOR CONSULTATION SERVICES
JULY 1 , 2007 TO JUNE 30, 2012
JULY 1 , 2012 TO SEPTEMBER 18, 2012
"NEW LOCAL SALES TAX REVENUE" MEANS TOTAL SALES AND USE TAX PAID BY APPLE WHICH
IS ACTUALLY RECEIVED BY CITY, AS CALCULATED FOR EACH FISCAL QUARTER, MINUS THE
SALES TAX FROM APPLE'S COMPANY STORE LOCATED AS OF THE DATE OF THIS AGREEMENT
ON APPLE'S R&D CAMPUS IN THE CITY OF CUPERTINO AND MINUS USE TAX ON PURCHASES BY
APPLE, IN EACH CASE CALCULATED FOR THE QUARTER IN QUESTION.
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CITY OF PALO ALTO & STANFORD HOSPITAL AND CLINICS
DEVELOPMENT AGREEMENT
MAY3, 2011
DESIGNATION OF PROJECT SITE FOR CONSTRUCTION PERIOD SALES AND USE TAX PURPOSES
OBTAIN ALL PERMITS AND LICENSES NECESSARY TO MAXIMIZE THE CITY'S
ALLOCATION OF CONSTRUCTION USE TAXES DERIVED FROM THE PROJECT, ...
DESIGNATE, AND REQUIRE ITS CONTRACTORS AND SUBCONTRACTORS TO DESIGNATE,
THE PROPERTY AS THE PLACE OF SALE OF ALL "FIXTURES" FURNISHED AND/OR
INSTALLED AS PART OF THE PROJECT
DESIGNATE, AND REQUIRE ALL ITS CONTRACTORS AND SUBCONTRACTORS TO
DESIGNATE, THE PROPERTY AS THE PLACE OF USE OF ALL "MATERIALS" USED IN THE
CONSTRUCTION OF THE PROJECT
REQUIRE ALL CONTRACTORS AND SUBCONTRACTORS TO ALLOCATE THE LOCAL SALES
AND USE TAXES DERIVED FROM THEIR CONTRACTS DIRECTLY TO THE CITY
CC 2/5/13
CITY OF MENLO PARK 8c FACEBOOK
TERM SHEET FOR THE WEST CAMPUS DEVELOPMENT AGREEMENT
JANUARY 22, 20 13
APPROVED JANUARY 22, 2013 BY CITY OF MENLO PARK CITY COUNCIL
A CLAUSE IN THE CONSTRUCTION CONTRACT FOR THE WEST CAMPUS TO REQUIRE QUALIFYING
SUBCONTRACTORS TO GET A SUB•PERMIT TO DESIGNATE MENLO PARK AS POINT OF SALE SO THAT
SALES/USE TAX ON MATERIALS IS ALLOCATED TO THE CITY.
COOPERATION WITH MENLO PARK TO SEEK TO HAVE USES TAXES FOR LARGE PURCHASE ORDERS
FOR INITIAL OCCUPANCY OF WEST CAMPUS TO HAVE USE TAXES ALLOCATED TO THE CITY.
SALES TAX
WE HAVE A CONCERN AFTER REVIEWING THE APPLE SALES TAX AGREEMENT & INSIGHT SALES
TAX AGREEMENT DUE TO THE DIFFERENCE IN THE DEFINITION OF NEW LOCAL SALES TAX
REVENUE.
5. DEFINITIONS
CITY OF CUPERTINO & APPLE
AGREEMENT FOR CONSULTATION SERVICES
JULY 1 , 2007 TO JUNE 30, 2012
3 MONTH EXTENSION JULY 1 , 2012 TO SEPTEMBER 1 8, 2012
3 MONTH EXTENSION SEPTEMBER 19, 2012 TO FEBRUARY 19, 2013
"1 YEAR EXTENSION FEBRUARY 20, 2013 TO FEBRUARY 19, 2014"
"LOCAL SALES TAX REVENUE" MEANS THAT PORTION OF THE TOTAL SALES AND USE TAX PAID
BY APPLE WHICH IS ACTUALLY RECEIVED BY CITY.
"NEW LOCAL SALES TAX REVENUE" MEANS TOTAL SALES AND USE TAX PAID BY APPLE WHICH
IS ACTUALLY RECEIVED BY CITY, AS CALCULATED FOR EACH FISCAL QUARTER, MINUS THE
SALES TAX FROM APPLE'S COMPANY STORE LOCATED AS OF THE DATE OF THIS AGREEMENT
ON APPLE'S R&D CAMPUS IN THE CITY OF CUPERTINO AND MINUS USE TAX ON PURCHASES BY
APPLE, IN EACH CASE CALCULATED FOR THE QUARTER IN QUESTION.
5. DEFINITIONS
CITY OF CUPERTINO & INSIGHT
AGREEMENT FOR CONSULTATION SERVICES
JULY 1 , 2006 TO JUNE 30, 201 1
JULY 1,2011 TOJUNE30,2016
"LOCAL SALES AND USE TAX REVENUE" MEANS THAT PORTION OF THE TOTAL CALIFORNIA
SALES AND USE TAX PAID BY INSIGHT WHICH IS ACTUALLY RECEIVED BY CITY.
"NEW LOCAL SALES AND USE TAX REVENUE" MEANS TOTAL CALIFORNIA SALES AND USE TAX
PAID BY INSIGHT WHICH IS ACTUALLY RECEIVED BY CITY FROM THE STATE BOARD OF
EQUALIZATION OF CALIFORNIA, AS CALCULATED FOR EACH QUARTER.
WHY THE DIFFERENCE?