Business Retention and Development Committee Agenda and Packet 2019 05 06

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LCityof Louisville COLORADO • SINCE 1878 BRAD COMMITTEE SUBJECT: DATE: BUSINESS ASSISTANCE PROGRAM REVIEW AND ANALYSIS MAY 6, 2019 PRESENTED BY: AARON DEJONG, ECONOMIC DEVELOPMENT SUMMARY: The memorandum summarizes the Business Assistance Policy in Section 3.24 of the Louisville Municipal Code, current implementation strategy for the BAP program, comparison of neighboring communities' assistance programs, and performance of businesses and projects that have received assistance from the Business Assistance Program. BACKGROUND: In January 2007, the City Council approved an ordinance establishing a business assistance program (BAP). This program was developed by the Business Retention and Development Committee. The program was approved by the City Council through Ordinance 1507 Series 2007. The ordinance describes the purpose of the BAP program as: "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 stimulate 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 City's program offers four basic types of incentives, all of which are rebates of fees and taxes paid: sales tax, building permit fees, construction use taxes, and consumer use tax. Sales Tax Rebates — If a business is going to bring new retail sales to the community, the City has the ability to incent the business to come to Louisville by rebating a portion of the City's general sales taxes back to the business. The rebate is on new sales and doesn't apply to existing sales in the community if the business is already located in Louisville. The timeframe for when the rebate applies to sales varies depending on the size and desirability of the new or expansion project. BRAD COMMUNICATION