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Home My WebLink About2012 Resolution No. 076RESOLUTION NO . ..7~ SERIES OF 20 I 2 A RESOLUTION ADOPTING "CITY OF ENGLEWOOD ECONOMIC DEVELOPMENT INCENTfVE POLICY" FOR THE CITY OF ENGLEWOOD, COLORADO. WHEREAS , THE City oi F.n 0 ,cwood is supponive of business attraction and development- related projects and is committed to suppo11ing new opponunities to diversify the local economy; and WHEREAS, the Englewood Econonuc Uevelopment Incentive Policy provides a broad Goal Stattment thal sl.\t es in part, u ... 10 assist targeted businesses, priority development sites . and projects that enhance the quality of life and fiscal condition of the community"; and WHEREAS, the Government Fmance Offictrs Association (GFOA) recommends that jurisdictions using or considering the use of economic development incentives create a policy 1hat, :n a minimum, define s goals and objectives; the types of incentives and extent of their use: an evaluation process, i.e ., cost/benefit analysi s, and pcrfonnance standards ; and WHEREAS, this Policy 1s consistent "ith the recommendation in the GFOA docurner.t; and WHEREAS, adopting the City of Englewood Economic De velopment Incentive Policy establishes goals and objectives or parameters which may be applied to applications for financial assis1ancc; and WHEREAS , institu:mg the Policy also provides the parame1ei s ior staff to employ when responding to current and future private requests related to development projects that might go forward only with some fonn of City assistance; !IIOW, TliEREFORE, BE IT RESOL YEO BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD , COLORADO , AS FOLLOWS : ~-TI1e City Council of the City of Englewood hereby authorizes adoption of "City of Englewood Economic Dcvelopm.::nl l.nccntive Policy," auachc~1 hr.reto :\'-F.xhihi1 A. ADOPTED A.'<D APPROVED this 4th day ofScptembcr, 2012 . I, Lm1cri shia /\. Ellis , City Clerk for the Cit y of Englewood, Co lorad o, hc,eby certify the above ,s a true copy of Reso lu ti on No .~-Series of 2012 . [ C . ,_ ~ I f;_✓,7 '/ffe ///..A_, _fCL' crishia /\. Gll is. City Clerk City of F.nglewood Ero.nomic Development Incentive Policy Goal Sl?lcmcnt ·11,e City of Eng lewood is supportive of business attraction and development-relate I projects and is committed to supporting new opportunities lo diversify the loc al economy . Englewood strives to provide for the fiscal health of the community hy creating mechanisms to assi st targeted businesses, priority development si te s, and projects that enhance the quality of life and fiscal condit ion of the community . lntent/rurposc O Create a tool to assist economic development efforts [J Fosler diversification of economic base, induding expansio n of retail sales tax base O Assisi in attracting desired bu sinesses and development to Ci ty D Assi st in redevelopment or reuse of priority redevelopmcm site s El igi ble. Uses of Incentive Funding 0 Improvements to public infra structure that benefit a larger area or the public at large, including but not limited to : street improvements, traffic sigualiwtion. sidewalks or troils, water and sanitary sewer lines, storm sewer lines, drainage improve ments, water quality improvements, o, electrical or natural gas lines . D Costs in curred in eliminating fcat11rcs that. detract from the surrounding neighborhood or render a site difficult t~ ,::de·,eJop, such as undergrounding electrical lines, removal of environmental ~r.r.1ami11uti(,n , removal or rcL cati on of utility substar ions or other facilities, or demolition or renovation of structur es th at arc obso lete or in poor condition. 0 Costs incurred in providing publi c spaces, la ndsc aping. or elements of streetscape beyond th at required by ordinances of the City . Economic nevelopmcnl Criteria -Eligible Projects 0 Retail developments or expansion of existing retai l use s that will generate additional sa le s tax shall be a priority of thr C:ity. D Office or manufacturing uses creating or addingj0bs. 0 Underrepresented 01 desirable retail establis!,mcnts. (e.g . table-service restaurants , electronics and clothing s tore s ) 0 Residential proj ects that demonstrate henelit lo the community, development on und eruti li zed sites, or within proximity of li ght rail station or othe r transit amenity. U Any project deemed by C ity Cou ncil 10 be unique, advantageous , or desirable addi tion s to the community D A det em1ina1ion of whether th e project would proceed if the incentive is not provided . LI lnc cnuws are no t 1nlc11ded lo unduly enrich an 111d iviclua l devdoper or b11s111ess or lo crea te an unfair advanwge . t I /\ s1a1ein en1 fr~m th e hu;ines s o r developer lo verify the ueed for lh c inccn1 ,vc in term s of 1 why thi s inve stment is ncc.:c.ssary to fo s1c r the develop ment or hu ... incss nctivit~1.' Cost ll cncli t /\1,alysi s r 1 St:iff w il l pruvidc a cost bcncfi 1 analys i!i for m1y i ncc nt ivc ag rcc111c1 ll. T he three comp onent s or n <.:us\ bc:ni!fi l ana lysis arc: u ldcm ify di rrct be nefi ts : The true meas ure nCprojcct value 111cludc s all proper ly taxes, sales and use taxes , impac t recs, lic enses and pe rm it fees . o C :i lcu lat c impact of the project. rlircct cusls arc match ed again st dire ct rc,,c nucs . :r cu,;ls exceed revenues , th e des irabi lil v or th e prnjcc l ne eds further an alysi s. I r the du-eel ··c,·c.:mu! cxccl·d s c.:.osts th e :maly sis ca n help idL·nti f'y the brcmk -even poinl hy dctcrm ::•ing th e number ofycnrs it will take fo r the project to payback the inc entive s and u1 hcr pub li c cos ts. o Identify d irec t puh!ic costs: In addition to the cost s or inc~n1 iv es, all oth er direct cost! associ at ed wi th ;he pro ject are 101alcd lo in cl ud e i11 1i·aslruclurc cos1s , 111 ili 1y, increased fi re, r,o l ict• :111d any 111h c r public c'.\;pc11 sr .._ ;,,._s,l<:i:ih :c l wilh 1hc p roj ect. IJ The b:cak -cvcn poinl or paybnck period o f'th c prnpnscd incentive wi ll he csl :mulcd. Li Im pa ct of th e project on ex isti ng Englewood businesses will be an alyzed . 1.NCENTIVE TYPl~S Coordinated Oc\'clopmcnt A pprouch The City of Englewood ts co mmi11cd to prov id ing cxc cp1ional cus10111cr service and ensurin g 1ha1 it s appli c:1111s experience a quality dcvelopmcnl process. All projects arc eligible hir a formal in-perso n Dcvclopmcnl Review Team (ORT) meeting , in wh ich lh c resp ons:ble Ci ty dep11r1111ents provide comm ents , $t11Jees lions, an d rccommcndntions prior In f'ormal rcrmil s11hmi11al tn cns1 1rc i n effici ent and effective process. Sales Tax Rd111h11rsc 111cnb The Cit y may consider a share-b ack or part ia l reimburs ement of1he in crem ental Cit y collected pon ion nf ret ail sa le s lax gcn cr:i lcd fr om th e project All proceeds of a sa le s la x reimbursement mus! he ul ili :•.cd fo r purposes 0111li11ed under "El ig ib le uses of in ce111ive funding ." Sales tux rch atcs shall nol exceed SO% over the term of th e agrccmcnl (with a ma~imum reha1c lo be determined by cosl/benefil analysis) of lhc actual increme nt al increase in sa le s ta x revenue gc ncra1cd by the use or site. Building Use Tax Reimbursements The City may consider a reimbursemeni of cons1ruclion and cquipmen: use lax gen erated by 1he developmen t of a project. All proceeds of the use lax reimbursemcnl must be utili ze d for purposes outlined under "Eligible uses of incentive funding ." Building use tax rebates shall not exceed 50% (wilh a maximum rehate 10 be determined by cosl/benefit analysis) of lhe actual use lax colleclcd . t 'urniture fixtures ond Equipment Use Tax Reimbursements The Ciry may consider partial or full reimbursement of the use laxe s paid for furniture fix lures and c<juipmen1 generated by a proje,.1. All proceeds of the use tax reimburse ment must be utilized for purposes ourlined under "Eligible uses of incentive funding ." Rebates of up IO I 00% (with a maximum rebate lo be detcnnined by cost/benefit analysis) may be given for fumilure , fixtures and equipment use tax . Tax Increment Financing The City may consider ut ili zing Tax Increment Financin~ (TIF) through the Englewood Urban Renewal Authority (l::UI' \) only after an urban renewal area has been established. The City will only consider uti lizin g TIF for projects !hat are unique , significant in magnitude, and have considerable regional benefit. This could potentially inc lude property taxes . Reduction in Fees The City may consider offsetting all or a portion of the development fees for commercial or residential projects that meet the goals and objectives of the Comprehensive Plan and Sub-Arca Plans (if applicable), and provide a unique and quality project in terms of product type, tenant mix, and overall ph ysi cal environment. Rebates ofup to I 00 % (with a maximum rebate to be determined by cosl/benefit analysis) may be given for buildi11g ~cnnit fee s a11d development application fees , not to include plan review fees or other contractual fee s. The City ot Englewood is supportive of economic dcvelupmcnl and redevelopment related project s. City Council will consider financial incentives to support economic development and redevelopment activities on a ca~e-by-case basis. The incentives outlined in this policy are provided at the sole discretion of City Council and are not 10 be considered an entitlement for any eligible or otherwise qualified p1ojec1. COUNCIL COMMUNICATION DATE : I AGENDA ITEM : SUBJECT: Sep1ember 4, 20 12 Economic Development Incentive I 11 C ii Policy INITIATED BY : STAFF SOURCE : Ci11• Mandge,'s Office D.1rrcn Hollingsworth, Economic Development Manager --· COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Counci l discussed 1h e econom ic Devel opment ln c cn1ive Policy at the luly ~. August 6, and August 20 study scs si,Jns. RECOMMENDED ACTION Council's app,oval of the a ttached Resolution adopting the Economic Development Incentiv e Policy estab- 1ishcs go.1ls and ob jectives or pa rameters for ap plic atio n related to financ ial assi"'tan ce . lnstiluting the Poli - cy p 1ovi des the parameters ior s1aff to emplo y when responding to current and future p ri vate requests re- lated to developmenl pojects that might go forwa,d only w,th some 'orm of City assistance BACKGROUND, ANALYSIS, AND Al TERNA TIVES IDENTIFIED The City of Englewood is supportive of business attraction and development-related pr ojects and is com- mitted to supporting new opportunit'es to diversify the local economy. rhe Policy provides a broad Goal Statement that stales in part, " ... to assis t ta rgeted businesses, priority de- velo pment sites, and projects that e nhance the quality of liie and fiscal condition oi the community." The Government Finance Officers Assoc ialior. (GFOA) recommends that jurisdictions using or considering the use of economic development incentives create a policy that at minimum defines goals and objectiv es, the tyµc~ uf i11 <..:e 111ivc~ dnd ex tent of their use, an evaluati on pro ::e ss, i.e., cost/benefit analysis, and perfo r- mance standards. The Policy is cons ,s t~nl with the recomme nda tions in the GFOA document. FINANCIAL IMPACT The Policy slates that incentives may be considered on a case-by<ase ba,;is ThPr e is nn direcl financial impact without the consent of Council. All in c entive requests will be presented with a cost-benefit analysis so that Council can consid e r the fin a nc idl impact of a ny p1oµu,ed incentive . LIST OF ATTACHMENTS Resoluti on Adopting Economic Dev~lopmenl Incentiv e Policy