City Council Minutes 2012 04 03 - Laserfiche WebLink

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City Council Meeting Minutes April 3, 2012 Page 5 of 14 Councilor Keany reported Economic Development Director Star looked into property tax in Louisville for this site compared to other cities. It was apparent the incentives offered by other cities would have been nullified by the amount of property tax they would have paid over a five-year period. He voiced his appreciation to Bonnie Star. RESOLUTION No. 27, SERIES 2012 — A RESOLUTION APPROVING A BUSINESS ASSISTANCE AGREEMENT WITH GREFFEX, INC. FOR THE OCCUPANCY OF EXISTING VACANT SPACE AT 1450 INFINITE DRIVE OR SIMILAR LOCATION IN THE CITY OF LOUISVILLE Mayor Muckle requested a staff presentation. Economic Development Director Star explained City Council action is requested on a proposed Economic Development Business Assistance Package (BAP) for Greffex, Inc. Greffex is a biopharmaceutical research and development manufacturing firm currently located in the Aurora's Fitzsimmons Life Sciences Center. They are looking for either a full relocation or an expansion of their business, which would provide a second office in Louisville. The building they are looking at in Centennial Valley has been vacant for three years. The proposed package is similar in nature to many packages approved recently by the City Council, including a rebate of fees paid for tenant finish. Based on the estimated revenue projection, staff recommends the following business assistance: Building Permit-Fee Rebate $500,000 Value $1,000,000 Value 50% rebate on permit fees for tenant finish $3,485.00 $6,662.50 Building Use Tax Rebate 50% rebate on Building Use Tax for core And shell and Tenant finish $3,750.00 $7,500.00 Staff suggested the assistance be capped at 50% of the actual Building Use Tax plus Building Permit Fee paid, not to exceed $15,000.00 and the City's incentive be void if Greffex, Inc. does not move into the new facility by December 31, 2012, or does not remain in business there for five years. COUNCIL COMMENT Mayor Muckle explained this company does very impressive high tech immune suppression work for patients who need transplants and gene therapy. He asked why the City is not offering a consumer tax rebate. Economic Development Director stated it would not be unusual, but it was not requested by the company. Mayor Muckle stated he was willing to negotiate up to a 50% consumer tax rebate over a five—year period. MOTION: Councilor Loo moved to approve Resolution No. 27, Series 2012, seconded by Mayor Pro Tem Dalton.