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

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Coverage Grants will be available to new and existing industries, including new industrial, manufacturing, warehousing, distribution, flex - space, office parks, and expansions of existing industrial projects in the Town of Knightdale. 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 Knightdale or properties that qualify for annexation tinder North Carolina General Statutes, unless otherwise determined by the Town Council. Requests for grants are evaluated and negotiated on a case by case basis. Grants 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 grant 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 Grant Amount: One percent (1 %) of the total investment of new or expanded actual tax value of the building and equipment shall equal the maximum grant amount. The 1% will be applied to the value of the project as presented on the first tax bill that is based on a complete 12 month period for the new value, 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 may recommend the adjustment of the appropriate first year calculation to ensure fair and accurate compliance with this policy. Minimum Investment: Five million dollars ($5,000,000) of new, taxable buildings and equipment is the minimum to qualify for grants described in this policy. Corporate Headquarters Incentive Criteria The Town will provide a one -half percent (.5 %) additional grant to corporate headquarters if the project meets the following criteria: Corporate headquarters means the building or buildings that the principal executive officers have designated as their principal office [see North Carolina G.S. 55 -140 (17)]. The Town requires that the corporate headquarters have at least fifty (50) or more full -time employees who are located in the building or buildings. If the project is an expansion, the expansion must employ a minimum of fifty (50) additional full -time employees. The wage must be greater than the median wage for Wake County. The jobs shall be retained at the approved level for as long as grants are received. The project must meet all other criteria described above. Tax Increment Financing In certain rare cases Tax Increment Financing (TIF) may be a desired incentive offered to finance infrastructure that is part of a major new development project. Generally, a project must meet the requirements of the Wake County Project Development Financing Policy (originally adopted 4 -16 -07) in order to receive consideration for TIF from the Knightdale Town Council. Public Hearing The Town Council will advertise and conduct a public hearing as required by G.S.158- 7.1(a) prior to approving any grant authorized by this Policy. All grants approved under this policy will be in the form of 521Page