Economic Vitality Committee Agenda and Packet 2021 07 16

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SUBJECT: STRATEGIC PLAN ITEM #1-3 DATE: JULY 16, 2021 PAGE 3 OF 5 There is rarely a week without an inquiry about the BAP or submittal of an application. A number of applications do not advance to Council, but staff does prepare an estimate of potential incentives to assist companies in their decision -making. So staff receives a lot of feedback about what applicants feel works well and does not work well about the program. Some of these themes heard from applicants are listed below. • Positives of the program: o Creates certainty of City commitment; o No obligation to business if does not proceed with project; o Appreciate simple application; and o Establishes early connections with City staff for processes such as licensing, permitting, etc. Negatives of the program: o Did not know eligibility requirement about signed lease; o Inability to negotiate based on unique project or benefit to the City; o No assistance to move location within Louisville (program requires expansion); o Lack of incentives for existing businesses that are not doing significant tenant improvements or new building; and o Requirement for no lease commitment delays process to apply for liquor license and adds time to process. Companies, mainly primary employers, may seek Louisville's local incentives as well as negotiate with the state Office of Economic Development & International Trade (OEDIT). State incentives focus more on job growth, training, and rural areas. Some of the tax credits and funding opportunities through OEDIT include: • Job growth incentive tax credit: state income tax credit equal to 50% of the Federal Insurance Contributions Act (FICA) paid by the business on the net new job growth for each calendar year in the credit period. • Strategic fund job growth incentive: gives a cash payment to companies that create and maintain new permanent jobs in Colorado for one year. • Skills advance Colorado job training grant: customized job training program that focuses on companies relocating to or expanding in Colorado and provides funds to net new hires. Advanced industries accelerator program: support job creation and innovation for businesses creating advanced technologies and operating in one of Colorado's seven advanced industries (advanced manufacturing, aerospace, bioscience, electronics, energy and natural resources, infrastructure engineering, technology and information. The practices of other communities around incentives varies; some have formal programs and others negotiate incentives on a case -by -case basis. The involvement of the municipalities directly in incentives also varies in the region, as some communities have partner economic development agencies such as downtown groups, business improvement districts, and economic development corporations. For instance, the Town Agenda Packet P. 9