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<br />Discuss Location Incentive for Prospect <br />March 6, 2006 Special EDA Meeting <br />Page 3 of3 <br /> <br />If the EDA desires to provide a location incentive for the proposed project in the form of a <br />pay-as-you-go tax abatement, then staff recommends the EDA provide staff direction with a <br />percentage of financial assistance to the end market value and a cap dollar amount since the <br />market value of the project is undetermined at this point. Staff's reasoning for the range of <br />"percentage of assistance" given is: 1) Since the City's portion of past incentives has been <br />approximately 10%, the range in the below table of 3% to 6% appropriately discounts the <br />small number of jobs being created and 2) The effective actual dollar amounts being <br />proposed should be in the range to compete as a location incentive. <br /> <br />The following table indicates a range of fInancial assistance amounts based on a percentage <br />of fInancial assistance to market value. The number in parentheses is the estimated <br />number of years it would take to amortize the amount of assistance from the city <br />alone. <br /> <br />Market Value <br /> <br />Percentage <br />of <br />Assistance <br /> <br />3% <br />4% <br />5% <br />6% <br /> <br />