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HomeMy WebLinkAboutReso 149-09 Sales Tax ReimbRESOLUTION NO. 149 - 09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN REVISING AND RESTATING THE GENERAL PROVISIONS OF THE CITY'S SALES TAX REIMBURSEMENT PROGRAM WHEREAS, one of the City Council's Fiscal Year 2009-2010 High Priority Goals and Objectives is to develop an Economic Incentive Program; and WHEREAS, in January 2009, the City Council adopted Resolution No. 9-09, establishing the Sales Tax Reimbursement Program ("Program") to stimulate economic development activities in the City; and WHEREAS, the adopted Program permits certain companies who have satisfied the City's requirements for participation in the program to receive reimbursement over a five (5) year reimbursement period for pre-approved exterior improvements (painting, facade repair, replacement signage), interior improvements (tenant improvements), and site improvements (parking lots, driveways, landscaping, etc.} provided that the Program participants generate $100,000 in new sales tax revenue to the City each year, in order to receive reimbursement for that year; and WHEREAS, this Resolution would revise the Program to give the option of a ten (10) year reimbursement period for participants that generate $500,000 in sales tax revenue for the City each year; and WHEREAS, this revision will provide additional, targeted assistance to the City's economic development efforts to backfill large vacancies in the Downtown and attract users in other areas within the City that allow for regional or general commercial development; and WHEREAS, the City Council of the City of Dublin wishes to revise the Sales Tax Reimbursement Program as described above, and to restate the provisions of the Program as a whole. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby revise and restate the general guidelines of the City's Sales Tax Reimbursement Program as follows. 1. The objective of this Sales Tax Reimbursement Program ("Program") is to: (a) 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; (b) 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; (c) generate additional sales tax revenue for the City by encouraging businesses to establish a presence in the City; and (d) attract new jobs to the City. The provisions of this Resolution are intended to provide general guidelines for the Program, and are not intended to describe all of the requirements that may be imposed in an agreement entered into pursuant to the Program. Page 1 of 3 2. The Program is primarily intended to be made available to proposed new businesses considering locating in the City. An exception may be considered, on a case-by-case basis, for existing Dublin businesses that might relocate or expand within the City, provided that they can show that such a move or expansion is expected to result in additional sales tax revenues above the amount they have historically paid in an amount that meets the minimum sales tax revenue targets required for the applicable agreement category, as described in Section 5. 3. Agreements entered into pursuant to the Program shall limit the eligible reimbursement amount to the actual cost of eligible improvements paid by the business owner for improvements to structures and the property site. The eligible reimbursement amount shall be certified by the provision of documentation showing the amount actually paid for the eligible improvements. Eligible improvements are: a) Exterior improvements (including. painting, facade repair, replacement signage) b) Interior improvements to the building c) Site improvements (including parking lots, driveways, landscaping, etc.). d) Reimbursement for demolition of existing buildings and replacement with new buildings may, at the City's discretion, be considered on a case-by-case basis. 4. Business owners may apply for consideration as participants in the Program. If approved for consideration by City Staff, the business owner and City Staff shall negotiate a written agreement for the recovery of the costs of certain improvements made to the property at which their business is proposed to be located. Any such agreement is subject to all applicable state and federal laws and must be approved by the City Council before being executed by the City. 5. There will be two general categories of agreements under the Program: Five Year Agreements, and Ten Year Agreements. Under both categories, payments by the City to the business owner will be made no more than once each year, and the amount of the payment in any one year will be no more than fifty percent (50%) of the sales tax revenue attributable to the business in the preceding year. Furthermore, in no event shall the total amount paid by the City over the entire repayment term exceed the eligible reimbursement amount. a) Five Year Agreements shall provide a maximum repayment term of five years. A Five Year Agreement would be made available to businesses that expect to generate at least $100,000 in sales tax revenue each year (this requires annual taxable sales of $10 million). In order to receive any payment in a given year, participants will be required to certify, by providing copies of sales tax returns, that the business generated at least $100,000 in sales tax revenue for the City in the preceding year. b) Ten Year Agreements shall provide for a maximum repayment term of ten years. A Ten Year Agreement would be made available to businesses that expect to generate at least $500,000 in sales tax revenue each year (this requires annual taxable sales of $50 million). In order to receive any payment in a given year, participants will be required to certify, by providing copies of sales tax returns, that the business generated at least $500,000 in sales tax revenue for the City in the preceding year. Page 2 of 3 6. The Program shall terminate on January 5, 2011, absent further action by the City Council modifying the termination date. PASSED, APPROVED AND ADOPTED this 6'h day of October, 2009 by the following vote AYES: Councilmembers Biddle, Hart, Hildenbrand, Scholz, and Mayor Sbranti NOES: None ABSENT: None ABSTAIN: None Mayor ATTE <~ City Clerk Reso No. 149-09, Adopted 10-6-09, Item 8.2 Page 3 of 3