Brief: The proposed meeting envisages negotiation between multi parties for setting up an entertainment complex by world’s largest entertainment conglomerate, Mouse Company in Marne-la-Vallee near Paris, France. The National Government recognizes the importance of the project for foreign investment in France and the potential impact on the local economy and wants to move forward with the project.
However the local municipalities are worried about the environmental impact the project will have on their local area and the resources need to cope up with expansion of economy. The major issues to be discussed at the proposed meeting include levy of a payroll-based tax, sharing of the tax revenue between four municipalities, levy of annual resource fees on the Mouse Company. Parties: The main parties to the negotiation are Mouse Company and four mayors and SAN has assumed the role of as common representative of all four municipalities.
The exercise is expected to develop into two parallel negotiations which may end up to be consolidated at the end of the exercise. Goals: a. The Mouse Company’s goal would be to move forward with the project with minimum business tax and voluntary annual payments. b. The Mayors of Cheesy and Coupvray ‘s goal is to maximize the payroll tax revenue and seek voluntary payments. Instead of sharing their revenue with other municipalities, they would be pushing for voluntary payment by Mouse Company to other municipalities.
The Mayors of Bailey and Magny ‘s goal is to seek reasonable share from the revenue earned by Cheesy and Coupvray and also seek voluntary payments from Mouse Company. d. As President of SAN our goal would be find a middle ground to achieve a reasonable resolution between four municipalities and then maximize the payment / tax from Mouse Company Press Release: The proposed project would stimulate the local and national economy of France resulting in millions of people visiting from neighboring states and countries.
The press release should clearly reassure the Mouse Company and other international investors that the project would not be adversely impacted by due to internal issues between local municipalities. As president of SAN, we will be working hard to find common ground among four municipalities and work out a deal with the Mouse Company. Business tax: The goal would be to reach an agreement with the Mouse Company to impose a business tax of at least 1% or so in consultation with local communities.
Division of Tax Revenue: The goal would be to reach an agreement between four municipalities to share the business tax revenue. As the mayors of Bailly and Magny understands that municipalities of Cheesy and Coupvray would be most impacted, they might be willing to share lower percentage of 10% to 15% each with balance 70% to 80% shared between municipalities of Cheesy and Coupvray.
Alternatively, the National Government can impose of a surcharge/tax of 1% to be shared between all four municipalities. Voluntary payment by the Mouse Company to the towns: The Mouse Company should be asked to pay a annual payment of Euro 5 to 7. 5 million to compensate for the impact on environment and resources instead of higher business tax of 1. 5%. The municipalities of Bailey and Magny should get larger share in the voluntary payments.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 28 September 2016
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