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SUBJECT: RESOLUTION 64, SERIES 2020 <br />DATE: AUGUST 25, 2020 PAGE 3 OF 4 <br />Consumer Use Tax Rebate <br />on Durable Goods- 40% <br />Detail of Taxes <br />Amount <br />Paid Rebate % Rebate Amount <br />Furniture & Fixtures <br />City Use- 3% <br />$ <br />15,000.00 40% $ 6,000.00 <br />$ 500,000 <br />Open Space- .375% <br />$ <br />1,875.00 <br />Historic Preservation- .125% <br />$ <br />625.00 <br />Recreation Center- .150% <br />$ <br />750.00 <br />Subtotal <br />18, 250.00 $ 6,000.00 <br />Based on estimates, the City will receive $212,640 in new revenue from the fees and <br />taxes (net $123,420 after proposed rebates). In addition to the caps on rebates outlined <br />above, the Agreement provides that rebates on Consumer Use Tax are limited to a two- <br />year period or the $6,000, whichever occurs first. The Agreement is void if The COplex <br />LLC does not complete its project by January 31, 2022. If the business does not remain <br />in Louisville for a period of seven (7) years, the Agreement provides for a percentage of <br />rebates received to be repaid. <br />In 2019, the City approved four Business Assistance Agreements, including: <br />JumpCloud, Inc.; Medtronic; 1882 Ventures, LLC; and Fresca Foods, Inc. In 2020, <br />the City has approved the following Business Assistance Agreements to -date: Duda, <br />Inc., Linmark, Inc. (Coal Creek Ace Hardware), Corvus Nidus, LLC (The Rose and <br />Raven), Forge Nano, Inc., Loxo Oncology, Inc., and Emergy, Inc. <br />FISCAL IMPACT: <br />The City will receive approximately $212,640 in new revenue from the fees and taxes, <br />with the total fiscal impact anticipated at $89,220 over a two-year period (net $123,420 <br />after proposed rebates); the fiscal impact is capped per the terms of the agreement at <br />$90,000 total. <br />PROGRAM/SUB-PROGRAM IMPACT: <br />The recommended Business Assistance Agreement supports the Economic Prosperity <br />Program Goal to promote a thriving business climate that provides job opportunities, <br />facilitates investment, and produces reliable revenue to support City services. <br />RECOMMENDATION: <br />Staff recommends City Council adopt the attached Resolution approving a Business <br />Assistance Agreement with The COplex LLC. <br />ATTACHMENTS: <br />1. Resolution Approving Business Assistance Agreement <br />2. Business Assistance Agreement <br />3. Business Assistance Program Criteria and Application <br />4. Presentation <br />CITY COUNCIL COMMUNICATION <br />9 <br />