Economic Vitality Committee Agenda and Packet 2021 07 16

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SUBJECT: STRATEGIC PLAN ITEM #1-3 DATE: JULY 16, 2021 PAGE 4 OF 5 of Erie has a structured incentive program, the Enhances Sales Tax Incentive Program (ESTIP); neither the Town of Superior nor the City of Lafayette have formal programs. Rather, incentives in those communities are generally negotiated with individual businesses. A community's Urban Renewal Authority, such as Louisville's Revitalization Commission (LRC) may also be part of incentivizing new development and business. The LRC has its "Application for Assistance," which includes opportunities for funding public infrastructure costs or direct project financing with Tax Increment Financing (TIF). In Louisville, there can be cross -over between the City's incentives and the LRC's funding. This is most typical when a company is constructing a new building within the Hwy 42 Urban Renewal Area and also plans to own and operate the business within the redeveloped space. For example, the redevelopment project at 824 South Street/957 Main Street received both Business Assistance from the City as well as Public Infrastructure Assistance from the LRC. Both the Town of Erie and City of Lafayette have funding programs through their Urban Renewal Authorities. Considering that the Economic Vitality Strategic Plan has been adopted since the last time the BAP was evaluated, this is a ripe opportunity to ensure the program criteria still match with Council's intent and the City's goals for economic vitality. For example, strategic plan Items #4-1 and #5-2 suggest incentivizing projects that may lead to specific, desirable outcomes for the community. Although local jobs and existing commercial space are included in the current criteria, they are not weighed any more heavily than other items. Although scheduled later in the strategic plan timeline, Item #5-3 also suggests that the City may want to create specific incentives for business that operate sustainably or may adopt new, sustainable practices. Staff generally looks for a proposed project to meet several criteria, but does not weight certain criteria over others. The criteria are also a mix of things that would apply to retention and attraction; they do not apply equally to the different incentive goals. For example, one criterion is to "bring new basic jobs to the City, with average salaries about the County's average wage." Basic jobs vary widely by sector. A basic retail job would not fall at the County's average wage, but retail businesses generate more revenue to the City. A basic job for a corporate or industrial business may pay well above the average wage, but the company does not generate as much revenue. Boulder County's average wage in 2019 was $73,691. In the retail industry for Boulder County the average wage was $36,357; for professional, scientific, and technical services, the Boulder County average wage was $136,702. This data comes from the Boulder Economic Council's Market Profile. Attachment #3 contains a 2020 economic profile of Boulder County, which speaks to local industry and employment statistics. The current Business Assistance Program criteria are listed below: • Brings high quality development • Retains basic jobs to the City Agenda Packet P. 10