It appears a sop to corporate blackmail does work.
The Examiner is reporting that Twitter fired off a letter to city supervisors earlier today, saying it will stay in San Francisco if the city signs off on a deal giving the microblogging giant a mega tax break.
"Twitter is committed to signing a lease that will keep the company in
San Francisco for six years and likely for a subsequent 10-year renewal
term," the letter states.
"I don't think there is anyone in the city that wants to see Twitter leave -- I don't anyway," Mirkarimi said. "But I think there are obligations to answer questions that have not been answered. I am hearing some justification, but not in a way that seals the deal for me."
Supervisor Jane Kim, who sponsored the legislation, made some last-minute changes to the proposal that she believes could inject millions more into city coffers. Kim wants to exclude other large buildings in the designated tax-break zone, which means they would still be obligated to the payroll tax for all new hires while Twitter, which has been valued at $7 billion, would not.
Currently, businesses with an annual payroll expense of more than $250,000 have to pay a 1.5 percent tax.
However, city supervisors crafted a deal specifically to entice Twitter to move into the Central Market neighborhood rather than relocate its headquarters to Brisbane or possibly South San Francisco where it wouldn't be obligated to a payroll tax.
The Budget and Finance Committee today delayed a vote on the Twitter tax break until next week.
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