City Council Minutes 2024 01 02 - Laserfiche WebLink

Home Browse Search

City Council Meeting Minutes January 2, 2024 Page 3 of 8 RESOLUTION NO. 2, SERIES 2024 — A RESOLUTION APPROVING A SECOND AMENDMENT TO THE SALES TAX REVENUE SHARING INTERGOVERNMENTAL AGREEMENT WITH THE TOWN OF SUPERIOR REGARDING A TEMPORARY WAIVER OF TAX REVENUES DUE TO THE CITY FOR PURPOSES OF PROVIDING A BUSINESS INCENTIVE Mayor Leh introduced the item. Austin Brown, Interim Economic Vitality Manager, stated the City of Louisville and the Town of Superior have a sales tax revenue sharing Intergovernmental Agreement (IGA) for what is known as the South Property, an area that previously had been in the City of Louisville. The IGA provides that Superior will share with Louisville 50% of the sales tax revenue collected in the area (based on a 2.7% sales tax rate). Bigsby's Folly Winery & Restaurant intends to purchase Block 4 in Downtown Superior and construct a 7,500 square foot event -based restaurant concept. Bigsby's Folly is a family -owned business that has operated successfully in Denver's River North Art District since 2017. The proposed expansion to Superior includes a total capital investment of $6.7M. It's anticipated that the business will create 45 new jobs with an average pay of $30-$65+ per hour. Block 4 is within the IGA area, meaning Louisville and Superior would receive sales tax revenues of 1.35% from the new business. In June 2023, Superior entered into an incentive agreement with Bigsby's Folly, which will provide a rebate of the Town's 1.35% portion of Sales Tax Revenues collected from the company for the first ten years of operation following the certificate of occupancy, not to exceed $1,000,000. Superior has requested Louisville support new development in the revenue sharing area by providing a rebate of up to 100% of the City's 1.35% sales tax rate, similar to Louisville's existing Business Assistance Program (BAP). Per Council direction, staff is proposing a 50% rebate of the City's 1.35% sales tax rate. This is consistent with the 50% rebate that the City typically offers through its BAP. Under the proposed amendment, the City would temporarily waive 50% of the 1.35% sales tax revenues that it would normally collect. The temporary waiver would be in effect until the City has waived $500,000 in tax revenues; 10 years from the commencement date; or the total sum of rebates received by the company (from both Louisville and Superior) reaches $1,000,000, whichever occurs first. The amendment requires that all revenues must be used by Superior to provide rebates to the Company as dictated by its Incentive Agreement. Additionally, the amendment stipulates the project must be completed by December 31, 2026. If the project has not been completed by this date, the agreement becomes void. The subject parcel is currently vacant and not generating sales tax revenue. Based on estimates provided by the company, Bigsby's Folly projects $20,333,333.333 in total