Business Retention and Development Committee Agenda and Packet 2010 04 05

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City of Louisville Business Assistance Program . A Business Assistance Request Form (Copy Attached) is sent to the company for completion Drior to a decision to locate in the City or to undertake substantial expansion (in the case of an existing business) . The data from the business assistance form is analyzed by staff and a preliminary recommendation is made to the City Manager requesting assistance based upon income generation to the City, number of jobs, average salaries, job diversity, what direct and indirect benefits this company may bring to the City of Louisville, and consideration of the other criteria above. . Business Assistance may be in the form of building permit fee rebates, construction use tax rebates, and sales tax rebates (if applicable). All rebates will be based upon new dollars generated by the project at move-in and/or over the first 5 years of operation. . Any sales tax business assistance is calculated on the City's 3.375% less the City's open space tax of .375%, unless the City considers a lesser amount to be appropriate. ~Following City Manager approval of an assistance offer, staff may follow either a one-steo or two-steo orocess. o One Steo: If the comoanv aarees to use their name oubliclv then staff ... - - - i Formatted oreoares a business assistance aareement for formal Council consideration durina a Dublic meetina or .0 TwoSteo: If the comoanv needs to remain confidential then staff schedules a presentation before City Council to seek policy direction. e..2....lf Council's response is positive, staff prepares a letter to the project stating that the City is willing to offer a business assistance oendina formal approval by City Council. e..2.... The company may go public with their announcement to relocate to the City or to substantially expand within the City. .2- Timed with the company's project nearing completion in the planning and/or building phase, staff recommends formal adoption of the business assistance. The timing of the formal adoption is used to ensure that the company has met the planning and development guidelines as outlined by the City. .2- At the time of formal adoption of the business assistance, Council authorizes the City Manager to fund and implement the Business Assistance Agreement. The agreement must be fully signed prior to any assistance. . City staff monitors the completion of the agreement and makes sure all requirements of the agreement are met. Company provide assistance and information is needed to carry out the agreement. Conclusion The vast majority of businesses that locate to the City of Louisville do so without a formal business assistance offer. There are also other forms of assistance the prospect may take advantage of that are equally, if not more, beneficial to them. Most of these have to do with moving through the development process in a time sensitive manner. The City of Louisville believes assistance to be important in remaining competitive in attracting quality business and development to the City; and, it can be used as a tool in recruiting and retaining businesses to the City. -2- 7