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SUBJECT: <br />INCENTIVE IMPACTS <br />DATE: <br />AUGUST 16, 2024 <br />PAGE3OF3 <br />indirect benefits include the temporary creation of these new jobs in Louisville. These <br />jobs spend money in our community at local shops and other businesses, providing an <br />increase in sales tax and other taxes for the City of Louisville. <br />Depending on the size of the project, new investment can also act as a catalyst for a <br />corridor and result in additional property owners and businesses making new <br />investments in their properties, resulting in new jobs and taxes. This spur of additional <br />activity results in more activation, reduced crime, new jobs and fees/taxes received by <br />the City. <br />A new business opening in the community results in many direct and indirect benefits <br />for the community including the ones discussed here. Incentives often act as gap <br />funding to bring a project to fruition and help overcome upfront costs to opening a <br />business. All incentives provided by the City of Louisville are performance and rebate <br />based, limiting the exposure and risk for the City. In addition, all rebates are provided <br />from the new money generated by the project, resulting in no loss to the City of <br />Louisville. The City retains all of the taxes/fees after the rebate and once the incentive <br />terminates, retains all of the fees/taxes generated by the project for the remainder of the <br />businesses' life. <br />FISCAL IMPACT: <br />The way the City of Louisville does incentives is all performance and rebate based. The <br />business must pay permit fees or generate sales and use tax, and then funds are <br />rebated back based on the true cost of the project. The rebate is provided from new <br />funds generated by the project. Any incentive provided by the City comes from new <br />funds, while the City retains a portion of those new funds. The fiscal impact to the City <br />for incentives is positive, from both direct and indirect impacts. <br />RECOMMENDATION: <br />Staff recommends EVC review and provide feedback if needed. <br />ATTACHMENT(S): <br />1. None. <br />CITY COUNCIL COMMUNICATION <br />