Twitter says it will stay in San Francisco if given tax break 

Twitter had been long quiet about The City’s proposed 1.5 percent payroll tax break for new hires that is being proposed to keep the company from migrating south to Brisbane. But in a Tuesday letter to Mayor Ed Lee and Board of Supervisors President David Chiu, the growing microblogging company said it would stay if the board approved the tax break on new hires.

“Twitter has signed a letter of intent with the Shorenstein group to lease a large block of space at the historic Furniture Mart building on Market and 9th Streets,” said Ali Rowghani, chief financial officer of Twitter Inc., in the letter. “This LOI is contingent on the Board of Supervisors’ approval of the payroll tax exemption.”

Rowghani said that if the payroll tax is approved “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,”

Twitter was “prepared” to move south. “There was simply no way for us to justify the cost burden of staying in San Francisco,” Rowghani said.

The letter says that without the tax break the company would have to spend $30 million more during a five year period if it remained in San Francisco instead of moving to Brisbane. The tax break is valued at about $22 million if the job growth rate projections hold true.

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