Economic Vitality Committee Agenda and Packet 2021 10 22

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SUBJECT: ECONOMIC VITALITY STRATEGIC PLAN ITEM #1-3 DATE: OCTOBER 5, 2021 PAGE 2 OF 6 considered a wide variety of potential program changes, both in response to feedback staff communicated about the BAP as well as how incentives could also be aligned with other economic vitality objectives. The EVC meeting materials from August contain a more complete description of options for incentivizing outcomes. Staff shared themes communicated by applicants at various stages of the program, including: • Positives of the program: o Creates certainty of City commitment; o No obligation to business if it 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 of eligibility requirement about signed lease; o Inability to negotiate based on unique project or benefit to the City; o No assistance offered to move location within Louisville (program requires expansion); o Lack of incentives for existing businesses that are not doing significant tenant improvements or new construction; and o Requirement for no lease commitment delays ability to apply for liquor license and lengthens the process. The EVC also requested information about the communities surrounding Louisville and their practices for incentives. Staff contacted City of Boulder, City of Lafayette, City of Longmont, Town of Erie, and Town of Superior to gather data. Lafayette and Superior have less formalized programs and incentives are generally negotiated on a case -by - case basis. Boulder, Longmont, and Erie all have formal incentive programs. Boulder's program is most similar to the existing Business Assistance Program. Summaries of these community programs are reflected in the August EVC materials. In September, two members of the EVC reviewed a narrowed list of six (6) program recommendations. The members were supportive of five (5) of the changes, which are outlined below. The recommendations impact some factors of eligibility and approval as well as new incentives. Staff and the EVC have attempted to craft recommendations that will improve retention efforts to local and small businesses. The BAP would continue to be a strong tool for business attraction. Revise Application Timing Requirement • The existing program requires that a business must apply for and receive an assistance agreement prior to signing a lease or closing on a property. It takes three to four weeks to process an application and for it to receive City Council approval. This length of time causes some businesses to delay anticipated lease - CITY COUNCIL COMMUNICATION Agenda Packet P. 12