"This is really going to provide strong incentives for companies to locate in Riverside and for existing companies to stay here," said David Wright, general manager of Riverside Public Utilities, in a news release.
City officials say the reductions are concentrated in the first two years to ensure new businesses receive the maximum benefit early, when their relocation, permitting and start-up costs are highest.
The economic development rate is scheduled to take effect in October. The city also approved a business retention rate. It calls for a 25-percent reduction in the first year and a 15-percent reduction in the second year of the four-year program.