HomeMy WebLinkAboutReso 09-09 Sales Tax ReimbRESOLUTION NO. 9- 09
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING THE SALES TAX REIMBURSEMENT PROGRAM
WHEREAS, the current worldwide economic slowdown has impacted the City of Dublin's revenues;
and
WHEREAS, for decades, state and local government have used Economic development incentives to
attract or retain jobs and/or improve a local tax base; and
WHEREAS, the Government Finance Officers Association (GFOA) has recommended that any
proposed incentive program has specific goals and criteria that serve to define the economic benefit to both the
government and the entities receiving the incentives expect to gain from the incentives, the conditions under
which the incentives are to be granted, and the actions to be taken should the actual benefits differ from the
planned benefits; and
WHEREAS, in an attempt to attract new businesses that will provide additional jobs and generate
additional tax revenues for the City, Staff is requesting City Council consideration of a program to stimulate
reinvestment in the community through a Sales Tax Reimbursement Program; and
WHEREAS, the objective of the proposed Sales Tax Reimbursement program would be to: (1)
improve the aesthetic nature and physical appearance of existing buildings and promote site improvements to
commercial properties in the existing commercial/office/industrial areas of Dublin and (2) target existing
buildings throughout the community with the goal of improving the existing building stock and also lowering
long-term vacancy rates in the community; and
WHEREAS, the program would use the concept of reimbursement through sales tax revenues to assist
and encourage property owners/tenants to reinvest in, reconstruct, rehabilitate and renovate their properties; and
WHEREAS, the proposed program would allow property owners and/or tenants, through a written
agreement with the City, to recover over time a portion of the cost of improvements (internal and external) made
to the property. The reimbursement would be limited to the actual costs incurred by the owner/tenant for
improvements to structures and the property site. Eligible costs would include exterior improvements (painting,
facade repair, replacement signage), interior improvements (tenant improvements), and site improvements
(parking lots, driveways, landscaping, etc.). Reimbursement for demolition of existing buildings and
replacement with new buildings may be considered on a case-by-case basis. Land acquisition costs would be
excluded from eligible expenses; and
WHEREAS, the program would be made available to businesses that would generate over $100,000 in
new sales tax each year (this requires annual taxable sales of $10 million). Businesses would need to certify, by
providing copies of sales tax returns to the State Board of Equalization (SBOE) that based on previous
operations that this threshold has been met; and
WHEREAS, the program would be made available to new, not existing businesses. An exception
would be considered on a case-by-case basis for existing Dublin businesses that might relocate/expand within
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the City, if their move /expansion results in additional sales tax revenues that would meet the target ($100,000
or more) established for the program; and
WHEREAS, the program would require that all improvements considered under this program must be
approved by the City and subject to all laws and regulations; and
WHEREAS, the program would calculate and distribute the reimbursement as follows:
1. The amount of eligible improvements will be established and certified with documentation of the
expenses.
2. Once retail sales begin to be paid based on reported sales transactions at a location within the City of
Dublin, no more than fifty percent (50%) of the net new sales tax would be calculated and considered as
the amount of reimbursement subject to the following limitations:
a. The cumulative maximum reimbursements paid to the business cannot exceed the total
established in number 1 above.
b. Reimbursements would be made on an annual basis.
c. Reimbursements would continue until the full amount in number 1 above was
reimbursed or for a period five (5) years, whichever occurs first.
WHERAS, the program would require that all Sales Tax Reimbursement agreements be negotiated by
Staff and approved by the City Council.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Dublin does hereby
approve the Sales Tax Reimbursement Program for a period of two (2) years.
BE IT FURTHER RESOLVED that the City Council of the City of Dublin will revisit the program at
the end of the two-year period and determine if the program should be continued based upon the economic
conditions at that time.
PASSED, APPROVED AND ADOPTED this 6th day of January, 2009, by the following vote:
AYES: Councilmembers Biddle, Hart, Hildenbrand, Scholz, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
ATTE T:
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City Clerk
Reso No. 9-09, Adopted 1-6-09, Item 7.1 Page 2 of 2
Mayor