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

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Incentive Amounts: Small Businesses meeting the investment threshold requirement outlined above will be considered for an incentive grant equivalent to 75% of the Town of Wendell local property tax assessment on the new investment for each year over a total five -year period. For each additional $100,000 in investment, applicants will be considered for incremental increases of 5% in tax assessment deductions, up to a maximum grant amount of 95% of the local tax assessment for each year over a total five -year period (minimum $500,000 investment). Examples: A threshold grant for a $100,000 Small Business investment project would be calculated as ($100,000 /100 x 0.49), or $490 per year x 75 %= $367 x 5 years = $1,835. A maximum grant for a $1.5 million Small Business investment project would be calculated as ($1,500,000 /100 x 0.49), or $7,350 per year x 95% _ $6,982 x 5 years = $34,910. D. Non - Financial Incentives The Town of Wendell may elect to offer potential economic development incentive grantees an incentive "package" including non - financial incentives or marginal increases in the incentive grant defined in Section III to encourage investment. Factors considered in this decision will include the proposed development's consistency with the stated objectives of the Town of Wendell Comprehensive Plan and the investor's provision of additional benefits above and beyond the actual increase in the local tax base. Qualitative factors to be considered in the award of additional incentives are outlined in Section V.B. Examples of non - financial incentives include reductions in parking requirements, density bonuses, property donation, and technical assistance with the preparation of other incentive grant applications. The town may also consider delay of annexation as an incentive to attract a new business eligible for an incentive grant as defined in Section III. In some cases, delay of annexation may be more attractive to a new investor than a local tax incentive. IV. Application Process A request for an economic development incentive grant shall be directed to the Town Manager. Applications may be obtained through the Town Manager's office. Applications are to be completed in their entirety. Strict confidentiality will be maintained during the application/evaluation process (see Section I). The Town Manager reserves the right to obtain information necessary to properly evaluate the application before delivering the completed application with a written recommendation to the Board of Commissioners. Requested information will include, but not necessarily be limited to, the following: • Type of business activity and any hazardous waste or by- products used, generated, or discharged Proposed site location/site plan • Site survey and legal description of the property /documentation of ownership • Pre - investment Wake County tax valuation • Basic business plan for feasibility assessment • Financial statements • Total amount of capital investment (including land, inventory, etc., although not included in calculation of grant amount) • Existing employment profile (expansions /relocations) • New job projections/local job projections • Wage structure and benefits • Water and sewer needs • Transportation/access needs If the applicant is working on a concurrent application for a state or Wake County incentive or grant, the Town Manager will request portions of required information from county or state agency representatives working on each concurrent application to help maintain confidentiality and reduce the administrative 5g1Page