Economic Vitality Committee Agenda and Packet 2021 09 24

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SUBJECT: STRATEGIC PLAN ITEM #1-3 DATE: AUGUST 20, 2021 PAGE 4 OF 8 The majority of primary employers seeking incentives provide average salaries above the Boulder County wage average. For smaller businesses as well as retailers and restaurant applicants, the City sees more basic jobs with hourly rates rather than salaries. But this does provide a balanced mix of available opportunities for the community as well as the region. If Council wishes to consider incentives specifically around local employment, it would be necessary to develop a reporting mechanism so that companies could submit and certify the number of local residents employed. Like the existing rebate structure, this could be done on an annual basis for a number of years or as a one-time measure. A specific monetary amount could be determined per local resident employed or at a certain threshold of local employment. If this path is of interest, it may be helpful to also consider whether the incentive would be available to both new businesses and existing businesses or certain type of businesses, since new primary employers are often already offering professional and well -paid positions that would be desirable to residents. Business Retention Staff has provided some suggestions related specifically to existing businesses in other sections. In July, EVC briefly discussed how incentives might apply to fagade or other type of improvements a business might make. Although exterior and more public -facing improvements may be desirable to encourage, staff feels a better mechanism for this would be an independent fagade improvement program. There are local programs that could be evaluated for comparison as well as nationally known models. Staff has also discussed with the Louisville Revitalization Commission that this may be something to implement with their funding within the Highway 42 Revitalization Area. There is one fagade-type element, however, that could be incentivized and might be viewed very favorably by an existing business. A business that is relocating will likely need new building signage, and this is a cost that is incurred right away, when the business has many other expenses of moving. A business must obtain a sign permit from the City, to ensure compliance with the Sign Code. These are considered minor permits by the City and the permit fee is driven by the valuation of the sign and installation. An incentive then for an existing business could be a percentage rebate of the sign fee or a waiver of the City's review fees and taxes on sign permits up to a certain amount. It would not be appropriate to waive the entire permit fee, since the fee calculation does contain Use Tax paid to Boulder County as well as restricted Sales Taxes for historic preservation, open space, and recreation center. Below is an example of the fee calculation for a minor permit such as signage. Agenda Packet P. 16