The Scotts Valley City Council approved an economic incentive for Zero Motorcycles to expand in Scotts Valley at its Oct. 20 meeting.
The company, which designs and builds battery-powered motorcycles, will receive $25,000 in city redevelopment agency money for each of the next three years if it can show growth.
The money will help keep Zero in Scotts Valley and expand its manufacturing so the company will not be pressured to move overseas for production, CEO Gene Banman said.
“It really helps support and keep our production here and makes everything cost-effective,” Banman said.
The agreement requires Zero to give the city a free off-road motorcycle that police officers can use in hard-to-navigate areas. The city also has an option to buy two more electric motorcycles at a 15 percent discount.
Banman said the company, which was founded in 2006, employs 49 people and expects that number to increase to 70 by 2012.
Zero aims to open a new plant and sales center in Santa Cruz in addition to its headquarters and manufacturing center at Victor Square in Scotts Valley.
“The growth has been rapid, and we’re still growing,” Banman said. “We’re the leading vendor in the (electric) motorcycle business.”
Vice Mayor Dene Bustichi said Zero Motorcycles provides high-quality, high-paying jobs in Scotts Valley.
“And as they continue to expand, they will hire more people,” Bustichi said.
Bustichi said workers at businesses in the area help the city with sales tax money when they buy their lunches, groceries and gas locally.
Bustichi added that the city has a lot of empty commercial space due to a sour economy, and the agreement is one way Scotts Valley leaders are working to fill the void.
In 2008, the city approved a similar agreement with Easton Bell Sports to entice that company to move from Santa Cruz. The city gave the company $75,000 in redevelopment funds over two years to set up shop in Scotts Valley.
“The immeasurable benefit to the city is that Scotts Valley is open for business,” Bustichi said. “We want to create incentives for people to come here, especially the green businesses.”
