Economic Vitality Committee Agenda and Packet 2025 06 12

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City Council Economic Vitality Committee Meeting Minutes May 8, 2025 Page 2of6 through the process of vetting all submittals to determine eligibility and then those would be approved by the City Manager. Those above 3,000 square feet are still eligible for, and would go through, the normal BAP process with approval by City Council. Mayor Leh asked about the fiscal impact of incentives being front loaded Manager Zarate replied that Finance was engaged and that they budget rebates once the incentive is approved but with no official line items. This is new money coming from new businesses or expansions. In the case of an expansion, the City sets a base rate to determine rebate eligibility; there are monetary caps on the incentives; over time the City would receive less sales tax at the beginning but would receive most of it towards the end; the City would start receiving all sales tax upon term of the incentive agreement. Mayor Leh asked if the proposed BAP Amendment will go through Finance Committee. Manager Zarate replied that it will not go through Finance Committee, once it's brought to City Council, the Finance team will perform impact analysis which will be shared in the staff report. Councilmember Kern commented that these are empty buildings bringing in no revenue and if this incentivizes a business to move in, then in the first year the City would at least retain 10%. She agreed that smaller businesses may may be more eager to start-up in the City knowing they can recoup some monies through incentives and voiced her support in Staff's ability to efficiently manage the process. Manager Zarate clarified that the intent is to inform City Council once executed and reiterated that she and Specialist Brown would negotiate with businesses with final approval coming from City Manager. Manager Zarate outlined next steps with Finance and the City Attorney to bring the amendment to City Council for discussion. There was a brief discussion regarding potential loopholes and application compliance. Councilmember Fahey asked if this applies to the business owner or property owner or both. Manager Zarate responded that sales tax rebates apply to business owners. Public Comment: Jeff Sheets, Koelbel & Company, Centennial Colorado, remarked that incentivizing for developers could be a good thing for generating more sales tax.