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HomeMy WebLinkAboutReso 135-12 Sales Tax Reimb Program RESOLUTION NO. 135- 12 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 was to develop an Economic Incentive Program; and WHEREAS, beginning in January 2009, the City Council adopted various Resolutions establishing and modifying a Sales Tax Reimbursement Program ("Program") to stimulate economic development activities in the City by establishing a reimbursement mechanism to fund certain eligible improvements made to existing buildings and structures; and WHEREAS, the City Council of the City of Dublin wishes to extend the time period of the Program, to revise other provisions relating to eligible projects 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 primary objective of this Sales Tax Reimbursement Program ("Program") is to: (a) improve the aesthetic nature and physical appearance of existing buildings and to 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. 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. The following provisions apply to businesses that wish to utilize the Program to fund improvements to existing structures and developed property sites: a) Agreements entered into pursuant to this portion of 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 to property sites. The eligible reimbursement amount shall be certified by the provision of documentation showing the amount actually paid for the eligible improvements. Eligible improvements are: Page 1 of 3 i) Exterior improvements (including painting, facade repair, replacement signage) ii) Interior improvements to the building iii) Site improvements (including parking lots, driveways, landscaping, etc.). iv) 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. b) 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. c) There will be two general categories of agreements under this portion of 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. i) 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. ii) 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. 4. In addition to the above provisions relating to reimbursement for improvements made to existing structures, the City will consider requests for reimbursement of certain improvement costs made by businesses that are constructing new structures on undeveloped property sites or that may be tenants in such new structures. The eligibility of such projects for participation in the Program shall be determined on a case by case basis. Factors that the City will consider in making an eligibility determination include, but are not limited to: a) The public benefit that will be derived from providing Program assistance b) Evidence that, absent the availability of the Program, it will be economically infeasible for a business or businesses to establish a presence in the City. c) The scope and nature of improvements for which reimbursement will be sought. d) The amount of sales tax revenue that is expected to be generated by the participant or its tenant(s). Page 2 of 3 If deemed eligible 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. Absent further action by the City Council modifying the termination date, the Program shall terminate on January 5, 2015. PASSED, APPROVED AND ADOPTED this 17th day of July, 2012 by the following vote: AYES: Councilmembers Biddle, Hart, Swalwell, and Mayor Sbranti NOES: None ABSENT: Councilmember Hildenbrand ABSTAIN: None /017.6„k Mayor ATTEST: 6//147 fi <C4— City Clerk Reso No. 135-12,Adopted 7-17-12, Item 7.4 Page 3 of 3