Economic Vitality Committee Agenda and Packet 2024 08 16

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Economic Vitality Committee Meeting Minutes June 21, 2024 Page 2 of 5 Public Comment from Judi Kern: Councilmember Kern asked whether the wages are skewed by executive -level wages. Manager Zarate responded that wages are generally qualified through the state. Councilmember Bierman asked for clarification around the property used in space flight. Manager Zarate responded that while all of the targeted industries would be eligible for the enhanced assistance, not all targeted industries would pay taxes on property used in space flight. This would likely be specific to the Aerospace industry. Councilmember Fahey commented that she would like to see hospitals also be eligible for enhanced assistance. Chair Dickinson asked if adding healthcare to the targeted industries list would accomplish this. Director Zuccaro responded that staff will look into adding healthcare to the list. He added that hospitals are often nonprofits and would be exempt from construction use taxes. Chair Dickinson wondered about the impact of bringing in a new business if the City is going to rebate all or most of the tax revenue received from that businesses. Manager Zarate responded that all taxes received from a new business would be new revenue to the City. She also added that the rebates do not last in perpetuity and are generally performance -based. She noted that all rebates also include a cap on the amount of total revenue received by the business. She concluded that new or increased jobs in the City will generally result in new sales tax revenue to the City. Chair Dickinson asked what other revenues besides sales tax the City could receive from a new company coming to Louisville. Manager Zarate responded that the City would receive revenue from building permit fees, signage fees, construction use taxes, and consumer use taxes. She iterated that rebates on construction use taxes would not change under the proposed BAP Amendment. Chair Dickinson asked if machinery, machinery tools, software and property used in space flight are currently captured under the existing BAP program. Manager Zarate responded that these components are not currently rebated in the existing BAP program, but noted that they are rebated by some competitors. Councilmember Bierman commented that he liked the fact that the amendment allows for up to a 100% rebate and noted that there could be times when staff recommends less than a 100% rebate. Councilmember Fahey agreed with this statement. Public Comment from Judi Kern: Councilmember Kern noted that expenses may not be a one-time occurrence and asked whether there's a way for future expenses to be rebated. Manager Zarate responded that a business could potentially amend their amendment if they are within the rebate timeline. Director Zuccaro added that if a company is outside their rebate timeline and