Agenda - 05-18-2010 - 8b - Laserfiche WebLink

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Coverage Incentives will be available to new and existing industries. Existing industries qualify only for that portion of expansion that represents "new" investment. These policy guidelines are not retroactive to any project which has been announced prior to the adoption of these policy guidelines. This policy shall apply to all lands within the corporate limits of Garner or properties that qualify for amrexation under North Carolina General Statutes, unless otherwise determined by the Board of Aldermen. New Investment Threshold Eligibility: Non - residential projects which have a new investment in building and/or equipment (exclusive of land) of $10 million or greater as recorded on Wake County Revenue Department tax roll and which provides at least $1100 of tax base per gallon of sewer allocated are eligible. The threshold for expansion projects (exclusive of land) is $8 million or greater as it goes on the tax books for investment of building and /or equipment. A different threshold applies to Retail /Mixed use as defined in that section below. Policy Guidelines The project for either new or existing industries must not have been announced prior to the application for the incentive. The industry or business shall build or expand its proposed facility within the time specified. In the event that a company fails to meet any of the provisions of the contract, the Town may adjust the amount of the grant to the company or withdraw the grant entirely. Repayment (clawback) provision applies and could affect the status of incentive funds granted by other agencies that require matching funds. Incentives Basis: the actual tax value of the building and equipment as recorded on the Wake County Revenue Department tax roll will be used to calculate the maximum incentive amount. This number may be different from the total project cost often discussed in preliminary meetings, a number that often includes site work, land and other costs to the developer but which are not taxable. Maximum Incentive Amount: One percent (1 %) of the total investment of new or expanded actual tax value of the building and equipment shall equal the maximum incentive amount. The 1% will be applied to the value of the project as presented on the first tax bill after completion of the project, unless negotiated otherwise. This reimbursement will begin at 95% of that new property tax revenue the first year; 85% the second year and 75% for all subsequent years until the maximum incentive amount is met or 5 years, whichever comes first. The base year shall be the tax year preceding the start of the new project or expansion, or as agreed upon in the contract. If there is a clerical or administrative difficulty or error solely caused by the Wake County Tax Assessor's Office that impacts the determination of the first year value for purposes of interpreting this policy, then the Town Manager, in conjunction with the Incentives Committee, may recommend the adjustment of the appropriate first year calculation to ensure fair and accurate compliance with this policy. In very specific projects that meet One NC or Wake County incentive thresholds, the Board of Aldermen has the option of increasing the percentage amounts and payout periods to match these grants. Upon request of the State of North Carolina or Wake County, the Town Manager will evaluate and review the request for thoroughness and compatibility with the Town's economic development goals as outlined below in the Review section. The Town Manager will present this recommendation to the Board of Aldermen for formal consideration. 481 Page