City Council Agenda and Packet 2021 08 24

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SUBJECT: RESOLUTION 59, SERIES 2021 DATE: AUGUST 24, 2021 PAGE 2 OF 3 Louisville Municipal Code. The City's Business Assistance Program Criteria and Application are also attached as reference. The main criteria this project meets are: • Retains basic jobs to the City; • Draws NEW customers, and is not expected to draw a large percentage of its business from existing businesses; • Creates new Sales Tax to the City; and • Utilizes an existing building. Based on estimates provided in Snarf's Sandwiches' application, staff recommends a 50% rebate of the Building Permit Fees and Construction Use Tax, in addition to a 50% rebate of Sales Tax over a five-year period. As outlined in the attached Agreement, staff proposes the 50% rebates on Building Permit Fees and Construction Use Tax be capped at $5,000 and the 50% rebate on Sales Tax be capped at $90,000. Per the program Criteria, the rebates exclude the City's Open Space, Historic Preservation, and Recreation Center Taxes. Eligible project costs $ 350,000.00 Building Permit Fee- 50% Detail of Taxes Amount Paid Rebate % Rebate Amount Building Permit Fee $ 2,500.00 50% $ 1,250.00 Plan Review Fees $ 1,625.00 50% $ 812.50 Subtotal $ 4,125.00 $ 2,062.50 Eligible project costs Construction Use Tax- 50% Detail of Taxes $ 350,000.00 Amount Paid Rebate % Rebate Amount City Use- 3% $ 5,250.00 50% $ 2,625.00 Open Space- .375% $ 656.25 N/A $ Historic Preservation- .125% $ 218.75 N/A $ Recreation Center- .150% $ 262.50 N/A $ Subtotal $ 6,387.50 $ 2,625.00 New Retail Sales Tax- 50% Detail of Taxes Amount Paid Rebate % Rebate Amount City Sales- 3% $ 174,000.00 50% $ 87,000.00 Open Space- .375% $ 21,750.00 N/A $ - Historic Preservation- .125% $ 7,250.00 N/A $ - Recreation Center- .150% $ 8,700.00 N/A $ - Subtotal $ 211,700.00 $ 87,000.00 Based on these estimates, the City will receive $222,213 in revenue from fees and taxes (net $130,525 after proposed rebates). In addition to the caps on rebates outlined above, the Agreement provides that rebates on Sales Tax are limited to the five-year period or $90,000, whichever occurs first. The Agreement is void if Snarf's Louisville LLC does not complete the project by April 30, 2022. If the business does not remain in CITY COUNCIL COMMUNICATION 5