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

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Appendix VII. Alamance Incentives Policies The following is published on the Choose Alamance website, htTir / /wNi,%v.choose alamauce.com/incentives /: There are two separate but overlapping levels of local government — county and city /town. ',Aqule all properties are within the county jurisdiction, not all properties are within an incorporated city/town. Each level of local government may, separately, consider and provide incentives. The primary local incentive is a cash grant. The amount of a grant is negotiable but based, primarily, on the capital investment associated with the project. Terms and conditions for grant payments are also negotiable based on the particular needs of the client and project and are codified in written performance agreements between the Company and the local government unit(s). Other local incentives may include utility upgrades /extensions and /or rate incentives, expedited regulatory processes, and/or various fee /charge waivers for sitetbuilding development costs. These are also considered and offered based on the specific project requirements. Recognizing the competitive environment and the compressed timeframes our clients have, cash grant offers can be proposed fairly quickly. However, all such offers are only tentative until approved at formal public hearings (this is in accordance with state law). State level incentives do not require public hearings. All project details, including local incentives negotiations and offers, may remain confidential until the public hearing. City Of Burlington Economic Development Incentive Policy 1. Overview In order to expand economic development options for the City of Burlington that could diversify or expand the tax base, offer improved employment opportunities for its citizens and promote the economic growth and welfare of the business and industrial community, the City Council would establish inducement guidelines to encourage new industry location decisions within the City, as well as to assist existing industrial expansions. Program Parameters The Burlington Incentive Policy involves a contractual agreement between the City of Burlington and a new or existing industry that would allow for a financial incentive based on the criteria established in Part III of this document. The City will require the industry to be current in payment of any and all taxes, fees and/or charges for an incentive to be paid. The City will require, as a part of the contractual agreement, a provision for reimbursement of any incentives to the City if any terms of the contract are not met. Any and all guidelines in the Incentive Policy shall be subject to G.S. 158 -7.1. Each project will be evaluated and negotiated on an individual basis by City Staff using the City of Burlington's guidelines. City Council will be kept apprised of negotiations. Changing economic conditions may necessitate the City Council to modify, amend, or even terminate the incentive policy subject to compliance with any incentives in effect at that time. All decisions are based on availability of funds. Incentive Policy Criteria Incentives will be available to new and existing industries. Existing industries qualify only for that portion of expansion that represents "new" investment. Investment for a new industry requesting an incentive should be $8,000,000 taxable value in buildings and/or equipment. Investment for an existing industry requesting an incentive should be $1,500,000 in taxable value in 681 Page