Economic Vitality Committee Agenda and Packet 2024 08 16

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Economic Vitality Committee Meeting Minutes June 21, 2024 Page3of5 also expanding, then they could apply for a new BAP Agreement. However, if they are not expanding there would not be a way to provide rebates for the future expenditures. Public Comment from Mike Kranzdorf: Mr. Kranzdorf cautioned against the concept of the City picking winners and losers, but wondered if the enhanced assistance could be open to everyone at the City Manager's discretion. Manager Zarate responded that this change could be made, but cautioned that it may result in increased applications from businesses that would not qualify for the enhanced assistance. She also added that if the assistance is made open to everyone, it may make more sense to get rid of the target industry requirement. Director Zuccaro commented that targeted industries can create clusters which add additional benefits to the community such as higher wages and attracting additional businesses that support industry operations. Chair Dickinson recounted that a previous proposed amendment to the BAP program focused solely on Aerospace. He appreciated that today's proposal includes a wider umbrella of industries, but worried that if you include all industries then you may not be focusing on any industries at all. Manager Zarate clarified that today's proposal does not change all aspects of the BAP program, it only changes potential rebates for taxes on machinery, tools, software and property used in space flight. She confirmed that this would not include all machinery, but only machinery specific to the industry. Chair Dickinson noted the importance of not limiting the impact of the BAP program, and wondered if the BAP program could include the ability for Council to make a determination as to whether a business would qualify. He noted the importance of being able to offer attractive packages to businesses that may be looking at other areas. The rest of the Committee agreed that they would like the ability to say yes rather than be forced to give a hard no. Councilmember Bierman added that the he feels that Louisville has had an anti- growth or anti -business reputation and would like to see the BAP program help change this reputation. Director Zuccaro commented that the BAP program isn't necessarily the reason for the reputation, but agreed that amending the program could help with that perception. Manager Zarate agreed that the BAP program should be adaptable to what businesses need. She anticipates that there will be future amendments to the BAP based on changing needs of businesses and of the City. Chair Dickinson asked whether the proposed BAP Amendment would still include clawbacks for businesses that leave early or otherwise don't meet the