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HomeMy WebLinkAbout2022-11-21 I13 Economic Development Incentives PolicyAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: November 21, 2022 AGENDA ITEM:Consideration of approval of a resolution approving City of Waukee Economic Development Incentives FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: The City principally uses Tax Increment Finance (TIF) rebate programs and may leverage other incentives, such as grants, loans and tax abatement. Incentive packages are considered on a case-by-case basis and are designed to meet the needs of the business or developer locating or expanding in Waukee. The proposed amendment to the current incentive policy establishes a framework and guide for which to navigate Tax Increment Financing assistance, specifically rebate programs. Establishing a base incentive for the business/developer community combined with eligibility factors such as investing in target industries will help define expectations and increase project success. This incentive framework does not replace the case-base consideration. Additionally, a 50/50 Loan program is proposed to accommodate the unique need of the business community. The program would be 50% loan and 50% forgivable. Schedules to be defined in development agreement. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff recommends adoption of resolution. RECOMMENDATION: Approval of Resolution ATTACHMENTS: Economic Development Incentives PREPARED BY:Jennifer Brown, Director of Economic Development REVIEWED BY: I13 THE CITY OF WAUKEE, IOWA RESOLUTION 2022- A RESOLUTION ADOPTING THE REVISED CITY OF WAUKEE BUSINESS INCENTIVE POLICIES IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Iowa is a duly organized municipality within Dallas County; AND, WHEREAS, the Waukee City desires to attract and retain high-quality and long-term investments, support the creation of new jobs, stimulate business and commercial activity including redevelopment of properties in the City; AND, WHEREAS, the Waukee City Council determines that economic development incentive tools are crucial to support businesses and developer locating, building and expanding in Waukee; AND, WHEREAS, on December 15, 2014, the Waukee City Council approved the City of Waukee Financial Incentives Policy (Resolution #14-350); AND WHEREAS, on June 20, 2016, the Waukee City Council adopted revised City of Waukee Business Incentives Policies (Resolution #16-250); AND WHEREAS, in addition to State financial incentives, including but not limited to Tax Increment Financing and Industrial Tax Abatement and the existing Business Expansion and Location Policy and Business Park Development Policy, the City of Waukee shall also create a 50/50 Loan Program and establish a framework for Tax Increment Financing incentives; AND, WHEREAS, applications for economic development incentives shall be considered on a case- by-case basis and approval shall be based primarily on the total capital investment being made, the number of jobs created, the salaries of the jobs created and investment in target industries; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WAUKEE, IOWA that the revised City of Waukee Economic Development Incentive Policies, attached hereto as Exhibit A, is hereby adopted. Passed and approved on this 21st day of November, 2022. ____________________________ Courtney Clarke, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN Anna Bergman Pierce R. Charles Bottenberg Chris Crone Larry R. Lyon Ben Sinclair Page 1 of 5 │REV11182022 Waukee.org ECONOMIC DEVELOPMENT INCENTIVE PROGRAMS The City of Waukee offers incentive programs for economic development projects that add quality employment opportunities and grow the commercial tax base. The City principally uses Tax Increment Finance (TIF) rebate programs and may leverage other incentives, such as grants, loans and tax abatement. Incentive packages are considered on a case-by-case basis and are designed to meet the needs of the business or developer locating or expanding in Waukee. The Waukee City Council is committed to promoting investment and expanding employment opportunity to meet the needs of Waukee residents, as well as grow and diversify the local tax base. To be considered for an incentive program, the project must contribute to the overall growth and enhancement of the community and local economy. GENERAL GOALS 1.Encourage development and increase investment in projects that will draw people from outside the local and regional community 2.Stimulate private investment and diversify the City’s tax base 3.Increase commercial and industrial development and invest in public facilities and infrastructure 4.Cultivate new and maintain existing quality employment opportunities within the City of Waukee 5.Encourage redevelopment of older or underutilized areas of the city 6.Encourage investment in target industries: Advance Manufacturing, Insurance & Financial Services, Green Technology, Health Care, Logistics and Technology/Business Services 7.Other goals as stated in the City’s urban renewal plans and strategic plans Page 2 of 5 │City of Waukee Waukee.org BUSINESS EXPANSION INCENTIVE The City of Waukee may offer a partial tax increment rebate to existing Waukee businesses that are expanding operations, adding new taxable valuation and creating and/or retaining quality employment. A Tax Increment Financing (TIF) property tax rebate is offered for up to three years at not more than 50 percent of the available increment generated by the new project. ELIGIBILITY FACTORS: Existing business with operations in Waukee’s target industries Creates new tax valuation for the city Creates or retains quality employment in the City of Waukee Infrastructure expansion needs/public infrastructure improvements Without the use of TIF funds, the project would not occur in Waukee or the scope of the project would be reduced Any other considerations determined by the City Council to be relevant INFRASTRUCTURE IMPROVEMENT INCENTIVE The City of Waukee may offer a partial tax increment rebate to developers and/or new businesses that are improving a property which requires significant investment in public infrastructure improvements. A Tax Increment Financing (TIF) property tax rebate may be offered for up to ten years at no more than 50 percent of the available increment generated by the new project. ELIGIBILITY FACTORS: Projects that include target industries Investment in public infrastructure improvements Creates new tax valuation for the city Investment in community assets and amenities consistent with the City’s Comprehensive Plan and City Council priorities Project will not occur if the City does not partner in the costs of public improvements Any other considerations determined by the City Council to be relevant Page 3 of 5 │City of Waukee Waukee.org EXPANDED TIF INCENTIVE The City of Waukee may offer a partial tax increment rebate to developers and/or new businesses adding new taxable valuation to property located within the City limits. A Tax Increment Financing (TIF) property tax rebate may be offered for up to five years at no more than 75 percent of the available increment generated by the new project. ELIGIBILITY FACTORS: Creates new tax valuation and high-quality employment Investment in public infrastructure improvements Project includes one of the City’s target industries and/or City Council priorities Project involves the creation, construction and installation of public art Investment in community assets and amenities consistent with the City’s Comprehensive Plan and City Council priorities Without the use of TIF funds, the project would not occur in Waukee or the scope of the project would be reduced Any other considerations determined by the City Council to be relevant ADDITIONAL ELIGIBILITY CONSIDERATIONS Commitment to use minority, women-owned or veteran-owned contractors/subcontractors for 25 percent or more of the total project Individuals/entities owned by minorities, women or veterans Buildings/expansion meet LEED Certification 50/50 LOAN The 50/50 loan program is designed to promote quality employment and capital investment in Waukee’s target industries. Loans may be up to $100,000 and are structured as 50% repayable, 50% forgivable with five-year repayment terms and five-year job creation and maintenance targets. Page 4 of 5 │City of Waukee Waukee.org TRIANGLE DISTRICT PROPERTY IMPROVEMENT PROGRAM The Property Improvement Fund assists property owners in renovating and upgrading older commercial, office and mixed-use properties within the designated Waukee Triangle Property Improvement District. Property owners within the district are eligible for a grant up to a maximum of $35,000 per property/year based on value of improvements. TRIANGLE DISTRICT FACADE IMPROVEMENT PROGRAM The Façade Improvement Program offers financial assistance for improving the exterior appeal for buildings within the Waukee Triangle District in downtown Waukee. Businesses, organizations or property owners can apply for a matching grant to cover costs of façade improvements. The maximum award is $7,500 per project annually. INDUSTRIAL PROPERTY TAX ABATEMENT The City of Waukee has authorized the use of the State of Iowa’s industrial property tax abatement program for qualifying new and expanded building investments located anywhere within city limits. The Industrial Property Tax Exemption (Tax Abatement) phases in the taxable valuation of a parcel on a sliding five-year scale: YEAR EXEMPTION 1 75% exemption of new valuation 2 60% exemption of new valuation 3 45% exemption of new valuation 4 30% exemption of new valuation 5 15% exemption of new valuation This program assists qualifying businesses by reducing the property tax paid on new construction and other taxable improvements to a property. To qualify for exemption, a project must be one of the following: Industrial real estate Research facility Warehouse distribution center Page 5 of 5 │City of Waukee Waukee.org SPECIAL PROJECTS FUND The Special Projects Fund provides a source of funding to ensure that businesses can get the information they need to evaluate a location in Waukee. The Special Projects Fund can be tapped for a wide variety of uses, such as traffic studies, soil testing, environmental studies, expert consultations, etc. The City’s Community Development Department will work with company leaders to determine how the Special Projects Fund can bring the most value. STATE OF IOWA ASSISTANCE The State of Iowa provides valuable assistance to businesses seeking to locate or expand in the state. Please refer to the Iowa Economic Development Authority (IEDA) for details on the assistance programs offered by the State. Several state programs require a local match, and the City of Waukee can assist businesses with that portion of the application process. CONTACT For questions on economic incentive policy or to discuss an incentive package, contact Jennifer Brown, Economic Development Director for the City of Waukee at jbrown@waukee.org or 515-978-7410.