5.1. SR 06-24-2002 - Laserfiche WebLink

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Tax Rebate Financing Policy Amendment Issues June 24, 2002 Page 4 of 4 Maximum amount of assistance and/or term years. If all three taxing jurisdictions agree to the abatement, the maximum term is 10 years. If one or two jurisdictions agree, the maximum term is 15 years. The City may consider establishing a policy for fewer years for speculative office space projects regardless of county or school district action. Other Requirements for Consideration Should Energy City construction design or materials be a requirement of all projects? Should such applications reqmre review and recommendation by the Energy City Committee prior to review by EDA and City Council? "But-For" evaluation - should applications be reviexved by the City's Financial Advisors, Ehlers & Associates for evaluation of the project's financial feasibility to proceed without the benefit of TRF? Currently the City requires a $5,000 application fee which is returned upon completion of the project. Staff recommends that the $5,000 application fee be used toward application review by Ehlers and other consultants as deemed necessary, and the balance be returned to the applicant upon project completion. Required application materials may include an itemized construction statement outlining the costs of the proposed project. The City may then consider ~vhether they are being asked to fund extra-ordinary costs of the development. Recommendation Staff recommends that speculative office development not be an eligible use of tax abatement for the following reasons: · Speculative office development should be driven by market demand, not public assistance, with the exception of redevelopment areas. · Provides a competitive advantage over other office facilities in appropriately zoned areas. If the City decides to provide tax abatement for any office development, staff recommends that minimum guidelines be established in order to ensure that public assistance is being provided in accordance with the City's priorities for economic development. At the July 8, 2002 meeting staff will provide the Tax Rebate Financing policy amendment for the EDA and City Council to consider for adoption. This amendment will reflect direction provided by the EDA and City Council. In addition, the City's subsidy policy is currendy incorporated as a section of the TIF, TRF and Micro Loan policies, respectively. Staff recommends a separate Business Subsidy Policy be developed in accordance with the statutory requirement and that would encompass TIF, TRF and other future forms of assistance that may be provided, such as donation of land. S:~EDA~TAXABATI';NElk lever Policy History~6-24-02.doc