HomeMy WebLinkAbout2016-06-20-J01H Fair Play Agreement AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: June 20, 2016
AGENDA ITEM: Consideration of approval of a resolution adopting the Des Moines Metro
Economic Development Fair Play Agreement
FORMAT: Consent Agenda
SYNOPSIS INCLUDING PRO & CON:
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Please reference Community and Economic
Development Department memo, attached.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Dutcher memo – 06/16/2016
PREPARED BY: Dan Dutcher
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
THE CITY OF WAUKEE, IOWA
RESOLUTION 16-
A RESOLUTION ADOPTING THE DES MOINES METRO ECONOMIC
DEVELOPMENT FAIR PLAY AGREEMENT
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the communities in the Des Moines metro area are facing greater
competition in economic development; AND,
WHEREAS, it is in the best interest of the City of Waukee to preserve taxpayers’
economic development dollars by adopting a policy to prevent the private consulting community
from pitting communities against one another in an attempt to inflate the incentives necessary for
the attract/retention of businesses; AND,
WHEREAS, the Council Roundtable has reviewed the Economic Development Fair Play
Agreement and has recommended its approval; AND,
WHEREAS, the Metro Mayors have reviewed the Economic Development Fair Play
Agreement and have recommended its approval;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WAUKEE, IOWA that the Economic Development Fair Play Agreement, attached
hereto as Exhibit A, is hereby adopted.
Passed and approved on this 20th day of June, 2016.
____________________________
William F. Peard, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
ROLL CALL VOTE AYE NAY ABSENT ABSTAIN
Brian Harrison
Shelly Hughes
Larry R. Lyon
Rick Peterson
VACANT SEAT
Exhibit A
ECONOMIC DEVELOPMENT FAIR PLAY AGREEMENT
We believe that the competition between communities is increasing. As it increases, it costs the
taxpayers of the region more and more. However, there is little if any corresponding increase in
the value of the projects to the collective taxpayers of the region.
The principles we can begin to operationalize are:
1. “Don’t Steal”
2. “Provide for greater equality in use of economic development tools”
3. “Structure the Competition”
We agree not to offer or provide any discretionary incentives to a company located in another
city until that company has provided written affirmation that they have made an irrevocable
decision to relocate outside the city in which they are currently located. We agree not to solicit
businesses from communities that sign this agreement until such an affirmation has been signed.
We agree that, in competitive situations (companies from outside the region and companies that
have given affirmative written notice of their relocation outside the city in which they are
located), the tools we rely upon are:
1. Tax Abatement (as defined by State Statute)
2. Tax Increment Financing (used in a variety of ways)
We agree that use of Tax Increment Financing for Infrastructure is a legitimate use of TIF.
Further, we have agreed that "infrastructure" means public utilities of all sorts, including parking,
as well as land acquired for a project.
We agree that tax abatement, up to the limits of state statute, is an acceptable incentive. We also
agree that it should be put in place prior to contemplation of an individual development project
(it should not be driven by competition for a particular company).
We have agreed not to limit the use of TIF dollars as incentives (additional tax abatement beyond
the state statute loans or outright grants) in competitive situations. A competitive situation is one
dealing with companies from outside the region and with companies that gave given affirmative
written notice as described above. Region is defined as those communities participating in this
agreement.
We agree that we shall keep Choose Des Moines Communities well informed about the
economic development projects, present and anticipated, in our communities. This includes all
inquiries from companies or their representatives, inside the metro or outside the metro.
We ask that Choose Des Moines Communities shall offer no assistance in relocation of a
business outside the community in which it is located until the written affirmation described
above is signed and received.
MEMO
To: The Honorable Mayor and City Council
From: Dan Dutcher, Community & Economic Development Director
Date: June 16, 2016
Re: Economic Development Fair Play Agreement
Anticipating increased commercial development interest, City of Waukee staff has given careful
consideration to economic development practices that make the best use of regional
taxpayers’ economic development dollars. The Economic Development Fair Play Agreement,
attached, outlines the ways in which Des Moines Metro communities compete fairly for
economic development projects. The agreement has been discussed at the Council
Roundtable and among the Metro Mayors; eight Des Moines Metro communities have adopted
the agreement since the early 2000’s.
The intent of the Economic Development Fair Play Agreement is to promote the attraction and
retention of Des Moines Metro economic development projects while avoiding unnecessary
competition that pits communities against one another. Such competition inflates the value of
the economic development incentives necessary to attract and retain businesses. The fair play
agreement aims to preserve taxpayers’ economic development dollars in the Greater Des
Moines Region.
The Economic Development Fair Play Agreement originated in August 2000, when Waukee was
a small community that did not compete for economic development projects of the same
magnitude as other metro communities. For that reason, it was not in the best interest of the City
of Waukee to adopt the fair play agreement at the time. Now, with substantial residential
growth, recent planning efforts, and public improvements, Waukee is likely to compete for
economic development projects of the same magnitude as those in other metro communities.
Therefore, it is appropriate that Waukee adopt the fair play agreement at this time. To date,
eight Des Moines Metro cities have adopted the agreement: Des Moines, Altoona, Clive, West
Des Moines, Urbandale, Indianola, Ankeny and Johnston.
I respectfully recommend City Council approval of the Des Moines Metro Economic
Development Fair Play Agreement.
Attached: Economic Development Fair Play Agreement