Business Retention and Development Committee Agenda and Packet 2016 02 01

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LCityof Louisville COLORADO • SINCE 1878 BRAD COMMITTEE SUBJECT: DATE: BUSINESS ASSISTANCE PROGRAM REVIEW FEBRUARY 1, 2016 PRESENTED BY: AARON DEJONG, ECONOMIC DEVELOPMENT SUMMARY: The Committee asked for a review of the Business Assistance Program (BAP) at their February meeting. This memo summarizes the program, describes implementation of the program, and identifies potential changes to the program. BACKGROUND: The BAP program was established by Ordinance 1507 -2007 on January 16, 2007. The purpose for the program stated in the Ordinance is: The purpose of the BAP created by this chapter is to encourage the recruitment, retention, establishment and /or substantial expansion of sales tax generating businesses and employers within the city, thereby stimulating the economy of and within the city, providing employment for residents of the city and others, further expanding the goods and services available for purchase and consumption by businesses and residents of the city, and further increasing the sales taxes and fees collected by the city, which increased sales tax and fee collections will enable the city to provide expanded and improved municipal services to and for the benefit of the residents of the city, while at the same time providing public or public- related improvements at no cost, or at deferred cost, to the city and its taxpayers and residents. The ordinance establishing the program has several other sections including; • Permitted use of funds • Timing of payments • Existing tax revenues sources to be unaffected • Criteria for approval • Required components of the Agreement The program is implemented by the execution of Business Assistance Agreements that provide assistance for two main categories of projects, 1) retail business expansions or creations that create new sales tax revenues to the City, and 2) primary employer expansions or creations that create new quality jobs within Louisville. The incentives offered within BAP agreements include; • Rebates of the City's general 3% sales tax on new sales created by the business for a given period of time. Typical agreements include a 40% rebate of sales taxes over a 2 -3 year period. BRAD COMMITTEE 8