|
SUBJECT: BUSINESS ASSISTANCE PROGRAM REVIEW AND ANALYSIS
<br />DATE: MAY 6, 2019
<br />PAGE4OF5
<br />This analysis is a snapshot of the program as of April 2019. Several projects have not
<br />begun or are in the middle of construction so the full effect of the projects have yet to be
<br />documented.
<br />The analysis separates the projects into retail and commercial categories, as a main
<br />goal of incenting retail is to encourage new sales in the community, and incenting
<br />commercial projects is to encourage high quality primary job growth. The following
<br />table outlines the critical data points associated with the projects offered assistance by
<br />the City.
<br />Table 1: Summary of Incentives and Benefits from Business Assistance Packages
<br />Incentives Paid
<br />Retained Jobs
<br />Created Jobs
<br />Total Jobs
<br />Total Annual Wages
<br />Average Wage/Salary
<br />Annual Sales Tax
<br />Permit Fees Paid
<br />Construction Cost
<br />Retail
<br />Commercial Total
<br />$ 1,638,891
<br />30
<br />517
<br />547
<br />$ 13,108, 972
<br />$ 23,987
<br />$ 1,038,533
<br />$ 445,111
<br />$ 15, 338, 309
<br />Incentives per Job $
<br />Annual Sales Tax $ per Ince $
<br />Construction $ per Incentive $
<br />$ 1,053,248
<br />1,438
<br />1,442
<br />2,880
<br />$ 248, 573,164
<br />$ 86,310
<br />N/A
<br />$ 2,604,921
<br />$ 59, 508, 893
<br />$ 2,692,140
<br />1,468
<br />1,959
<br />3,427
<br />$ 261, 682,136
<br />$ 76,370
<br />$ 1,038,533
<br />$ 3,050,032
<br />$ 74, 847, 203
<br />2,999 $ 366 $ 786
<br />0.63 N/A N/A
<br />9.36 $ 56.50 $ 27.80
<br />For the retail projects, every dollar of incentives provided to the retail projects has
<br />leveraged $.63 of new annual sales tax revenue to the City. Total annual sales tax
<br />receipts to the City total $1,038,533. The retail projects have created 517 new jobs with
<br />an average wage of $23,987. These are typically part-time positions and wages tend to
<br />be lower in the retail sector.
<br />The commercial projects have retained 1,438 jobs and created 1,442 new jobs in
<br />Louisville, resulting in total employment from these projects 2,880 jobs. The average
<br />annual wage for these jobs is $86,310. The average incentive paid to create or retain a
<br />primary job is $366.
<br />The Business Assistance Packages have encouraged improvements to property totaling
<br />$74,847,203 either through tenant improvements or new construction. Every dollar of
<br />incentive paid out through the program has leveraged $27.80 of improvements to
<br />property in Louisville.
<br />CITY COUNCIL COMMUNICATION
<br />
|