Economic Vitality Committee Agenda and Packet 2021 10 22

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Cityof ECONOMIC VITALITY COMMITTEE Louisville COLORADO -SINCE 1878 SUBJECT: DISCUSSION/DIRECTION- STRATEGIC PLAN ITEM #1-3: REVIEW FEEDBACK AND NEXT STEPS ON BUSINESS ASSISTANCE PROGRAM RECOMMENDATIONS DATE: OCTOBER 22, 2021 PRESENTED BY: MEGAN E. PIERCE, ECONOMIC VITALITY DIRECTOR SUMMARY: The Economic Vitality Strategic Plan contains Supporting Action Item #1-3, scheduled for Q3 2021: "Evaluate and potentially revise Business Assistance Program (BAP) to align with the City's strategic goals for business attraction and retention." This evaluation is also intertwined with other Strategic Plan Supporting Actions, including: • Item #4-1: Attempt to develop specific business incentives that would specifically encourage local employment (Q3 2021). • Item #5-2: Incentivize use of existing vacant space over new commercial buildings where applicable in Business Assistance applications (Q3 2021). • Item #5-3: Develop understanding of incentives to encourage businesses to undertake new, sustainable practices (Q4 2022). To ensure the City's incentive program is aligned with its current goals for business attraction as well as business retention and expansion, staff initiated a program review with the Economic Vitality Committee (EVC) in July 2021. The EVC has discussed the program and recommended changes at its July, August, and September 2021 meetings. The five (5) program recommendations that received the most Committee support in September were advanced for City Council consideration on October 5, 2021. A copy of the October 5 meeting memo is included as Attachment #1. BACKGROUND: Councilmember feedback on October 5 was generally positive and there was an expressed willingness to make program changes. There was support to incorporate four of the five recommended changes as presented, including: • Revise application timing requirement; • Add rebate of sign permit fees; • Revise program criteria for relocating existing businesses; and • Create an administrative approval process. There was one question regarding how rebates are funded and paid. Although rebates are calculated based on specific fees and taxes, the rebates are not allocated directly from those revenues —potentially skewing the setting of fees in the future. Planning staff does not consider the rebates in reviewing and recommending fees and rates. Finance Director Watson confirmed that rebates are paid via unrestricted General Fund revenues, such as sales taxes, property taxes, unrestricted fund balance, etc. Agenda Packet P. 8