Economic Vitality Committee Agenda and Packet 2025 03 06

Home Browse Search

SUBJECT: INCENTIVE IDEAS DATE: MARCH 6, 2025 PAGE 3 OF 5 expenses and return to normal operations. To move this forward, Staff would explore options for funding, criteria and eligibility to bring back to the EVC for discussion. Economic Vitality Tax Some communities enact a specific tax to be used for economic vitality/development activities. This can include things like an addition to the sales tax (as the City of Louisville has done with parks and historic preservation) or directing existing taxes, such as the lodging tax, to economic vitality activities. In turn, these funds could be used to fund economic development activities and programs, such as incentives and other business support services. Grant Programming As currently structured, the City's incentive program is a rebate and performance -based incentive program. This is common as it provides a share -back to the business while protecting the City's financial interest and commitment to the project. During the COVID-19 pandemic, many communities provided grants to businesses to assist with continued operations and support. These grants were most often provided from various federal funding resources made available to communities during the pandemic. The City could explore various grant opportunities and would need to determine eligibility, grant amounts and where the funds would be allocated from. One potential grant program could be Construction Impact Grants. These grants could be provided to businesses that are being impacted by a significant construction project that is not their own. This could apply to businesses that are being impacted by a significant utility/road project or road closures due to a new project's construction. This would not be intended to assist with short closures such as a few days or nights, but long term construction projects that could impact a customer's ability to get to the business. To move this forward, staff would work to determine potential funding, criteria and eligibility to bring back to EVC for discussion. Public Private Partnerships Public Private Partnerships (P3) can take many forms and are often a collaboration between the public sector, the private sector and a non-profit. P3s can result in one entity owning land, and one operating the building or one owning land and multiple leases operating components of the project. These can be seen in projects such as sports complexes where the City may own the land and they partner with various entities to build and provide each of the athletic components. These can also be seen in some community spaces such as the City owning the land and building, with non -profits and other entities either renting space for lease or somehow else providing programming within the building. CITY COUNCIL COMMUNICATION