HomeMy WebLinkAbout2016-06-20-Resolutions 16-250_Financial Incentives Policy - RevisedTHE CITY OF WAUKEE,IOWA
RESOLUTION 16-250
A RESOLUTION ADOPTING THE REVISED CITY OF WAUKEE BUSINESS
INCENTIVE POLICIES
IN THE NAME AND BY THE A UTHORITY OF THE CITY OF WA UKEE,ION'A
WHEREAS,the City of Waukee,Iowa is a duly organized municipality within Dallas
County;AND,
WHEREAS,the Waukee City Council determines that financial 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 ¹14-350);AND,
WHEREAS,in addition to State financial incentives,including but not limited to Tax
Increment Financing and Industrial Tax Abatement,and the existing Special Projects Fund,the
City of Waukee shall also create a Business Expansion and Location Policy,and a Business Park
Development Policy;AND,
WHEREAS,applications to the Special Projects Fund,the Business Expansion and
Location Policy,and the Business Park Development Policy 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 and the salaries of the jobs created;
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WAUKEE,IOWA that the revised City of Waukee Financial Incentive Policies,
attached hereto as Exhibit A,is hereby adopted.
Passed and approved on this 20'"day of June,2016.
liam F.card,M yor
Attest;
Rebecca D.Schuett,City Clerk
Exhibit A
ROLL CALL VOTE
Brian Hartison
Shelly Hughes
Larry R.Lyon
Rick Peterson
VACANT SEAT
AYE
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NAY ABSENT ABSTAIN
!T!'iWaukee City of Waukee,Iowa
Business Incentive Policies
Waukee's Business Incentive Package
The City of Waukee principally uses property
tax-based financial assistance to support
businesses and developers building and
expanding in the community,because
incentives promote investment and
employment in the City of Waukee.Incentive
packages are considered on a case-by-case
basis and are designed to meet the needs of
businesses locating or expanding in the City
of Waukee based primarily upon total capital
investment,number of jobs created and the
salary level of the jobs created.
Tax Increment Financing
The City of Waukee uses Tax Increment
Financing (TIF)by capturing a portion of
the increased tax revenue created by
improvements that result in new taxable
property valuation.The new revenue may be
redirected to reduce the cost of infrastructure
improvements or as a tax rebate to a business.
Special Projects Fund
Business expansion and relocation decisions
focus on minimizing risk and maximizing
success.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.
determine how the Special Projects Fund can
bring the most value to growing businesses.
Industrial Property Tax Abatement
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 in the
City of Waukee.
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
The Industrial Property Tax Exemption (Tax
Abatement)phases in the taxable valuation
of a parcel and is offered on a sliding five-year
scale:
".75%exemption of new valuation
60%exemption of new valuation
The Special Projects Fund can be tapped
for a wide variety of uses including traffic
studies,soil testing,environmental studies,
expert consultations,etc.The City of Waukee
Community and Economic Development
Department will work with company leaders to
45%exemption of new valuation
30%exemption of new valuation
15%exemption of new valuation
Business Expansion and Location Policy
The purpose of the Business Expansion and
Location Policy is to share in the success of
businesses that invest in Waukee.Businesses
that expand or locate in Waukee add value to
the community through career opportunities
for residents,new payroll in the economy and
addiTional commercial tax base.The City is a
partner with businesses in building their business
and the community.
Through the Business Expansion and Location
Policy,the City of Waukee offers a rebate of up
to five years of property taxes generated from
the new taxable valuation of the construction
project.The rebate may be valued up to 100%
of the amount of incremental property taxes
collected by the City utilizing the provisions
of TIF.The TIF rate for calculating a rebate
under this policy currently excludes property
tax revenues required to service public debt,
certain school levies and joint city-county
building taxes.
Business Park Development Policy
The Business Park Development Policy aims
to increase the amount of development-
ready land that is available to expanding
or locating businesses.The foundation for
economic development is the availability
and attractiveness of developable land that
businesses need to be successful.It has been
determined that there is a need in Waukee for
land for business growth.
Through the Business Park Development Policy,
the City offers incentives to property owners
to prepare land for business growth.The
policy allows the property owner to receive
a reimbursement of a portion of the cost of
building the public infrastructure in the business
park.The reimbursement is funded by the
incremental property taxes generated by new
commercial investment in the business park.The
policy utilizes the provisions of TIF to generate
the reimbursements,and reimbursements are
limited to a five-year period.
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The incentive package offered to expanding
or locating businesses will be developed on a
case-by-case basis.The level of the incentives
will be based primarily upon amount of capital
investment,number of jobs created and
salary level of the jobs created.The terms
and conditions of each individual incentive
package shall be pursuant to a development
agreement between the City and the
developer.
State of iowa Financial Assistance
Iowa provides valuable assistance to
businesses seeking to locate or expand in the
state.Waukee's Community and Economic
Development staff will work with regional
and state partners to identify and apply for
assistance to support businesses making
investment and creating jobs in Iowa.Several
of the state incentive programs require a local
match and our experienced staff can assist
businesses with this aspect of the application
process.
Iowa Corporate Income Tax
Iowa's single-factor,non-unitary tax is based
only on the percentage of total sales income
within the state —an Iowa manufacturer selling
all its products outside Iowa would pay no
Iowa corporate income tax.Iowa allows 50%
deduction of federal taxes from iowa corporate
income tax,and iowa corporate income tax
may be reduced or eliminated by the New
Jobs Tax Credit.
No Sales or Use Tax on Manufacturing Machinery
and Equipment
The purchase of industrial machinery,
equipment and computers assessed as real
property are exempt from Iowa sales or use tax.
No sales tax is due on purchases of electricity or
natural gas used directly in the manufacturing
process.
No Property Tax on New Industrial Machinery and
Equipment
Manufacturing machinery and equipment,
as well as computers used to process data by
insurance companies and financial institutions,
are exempt from property tax.
No Personal Property (Inventory)Tax
Personal property is not assessed for tax
purposes.In iowa,personal property includes
corporate inventories of salable goods,raw
materials and goods in process.
Iowa High Quality Jobs Program
The High Quality Jobs program provides
qualifying businesses tax credits and direct
tinancial assistance to offset some of the costs
incurred to locate,expand or modernize an
iowa facility.To qualify for this very flexible
assistance package that includes loans,
forgivable loans,tax credits,exemptions and/
or refunds,eligible businesses must meet certain
wage threshold requirements.
New Jobs Tax Credit
A business entering into an agreement under
the iowa New Jobs Training Program (260 E),
and increasing its iowa workforce by at least
10%,will qualify for this iowa corporate income
tax credit.This tax credit is equal to up to 6%of
the state's unemployment insurance taxable
wage base.The credit may be taken only
once;however,unused credits can be carried
forward for up to 10 years.
Research and Development Tax Credit
iowa companies can earn refundable tax
credits for the company's allotted share of
qualifying research expenditures in iowa.A
company must meet the qualifications of the
Federal Research Activities Credit in order to
be eligible for the credit in iowa.Supplemental
Research Activities Credits are available
through the High Quality Jobs programs.
State of iowa Workforce Training
Programs
The City of Waukee works with the State of
iowa and Des Moines Area Community College
(DMACC)to support the needs of businesses for
a well-trained workforce.Iowa has job training
programs that support businesses adding new
employees in Iowa and also provide training
for current employees.Iowa's job training
programs are delivered locally by staff at
DMACC.
Iowa Industrial New Jobs Training Program (260E)
The Industrial New Jobs Training Program
provides businesses that are expanding their
iowa workforce with new employee training.
The program is delivered locally by staff at
DMACC at no cost to businesses.In addition to
increasing worker productivity and company
profitability,businesses participating in the Iowa
Industrial New Jobs Training Program may also
be eligible for reimbursement up to 50%of the
annual gross payroll costs expended for on-the-
job training,as well as a corporate tax credit if
iowa employment is increased by at least 10%.
Iowa Jobs Training Program (260F)
The iowa Jobs Training Program provides
job training services to current employees of
eligible businesses that are located in iowa.
Eligible businesses can work with their local
iowa community college,which will assess
training needs,determine fund availability and
provide training.For participating businesses,
he advantages include valuable employee
training at a reduced cost,or at no cost.
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