Finance Committee Agenda and Packet 2019 07 19

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City Council Finance Committee Meeting Minutes 06/07/19 Page 3 of 6 Chairperson Maloney asked how incentives are handled in other municipalities, and what challenges are being faced with the current process. Director DeJong stated that the City of Boulder annually appropriates $250K in incentives to the CMO to administer. Director DeJong stated that it can be difficult to convey to a company that the BAP program is an incentive to come to Louisville, and not a reward for a company already in the stages of moving to Louisville. Director DeJong stated that once land has been purchased, or a lease signed, companies are not eligible for BAP consideration. Finance Committee Members and staff discussed the amount of incentives given for small versus large projects, and what amount would be appropriate for the CMO to administer. Director DeJong stated that $40K is the average break-point between small and large projects. Finance Committee Member Lipton stated that certain language in Section 3.24.040 Basis for Participation, and 3.24.050, Approval of Agreement; Conditions; Effect, of the redline needs to be changed to incorporate better language, to add a reporting requirement, and to clearly define conditions. Member Lipton stated he would like the incentive amounts provided to the CMO to start at a modest cap of $100K per year to see how it works. Mayor Muckle and Chairperson Maloney stated they were in favor of Code changes that would provide more flexibility, quicker response, and the ability for the CMO to approve smaller BAP agreements. Chairperson Maloney stated he would like language incorporated that provides City Council the maximum amount of flexibility under extraordinary conditions. Mayor Muckle stated he did not believe $100K annually was sufficient for the CMO, and that he was not in favor of setting dollar limits within the Code. Director DeJong stated that dollar values or limits could be included in a separate policy. Finance Committee Members agreed to an annual $150K cap for CMO approved BAP agreements. Member Lipton raised the question of whether the BAP program is still relevant or necessary. Mayor Muckle stated that the relevance and need of the program varies with the economy. Member Lipton suggested a statement be added to the Code or additional Policy that states that "as the City continues to work on its strategic plan and other long-term goals, that this program and other tools will be evaluated and continued at the discretion of City Council." Chairperson Maloney requested the City Manager's Office revise the redline and bring a draft of the Code changes for the Business Assistance Program back to the Finance Committee on a Fall agenda.