6A, Motion to Approve Resolution 08-058

Home Browse Search

Business Subsidy Criteria December 8, 2008 Page 2 4. Redevelopment where the investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current years estimated market value 2. Why does the City need to have business subsidy criteria? In 1999, the State Legislature adopted new regulations for granting of business subsidies by local governments and required them to adopt written criteria before granting a business subsidy. The policy outlines the City's criteria for reviewing requests, job and wage goal requirements and City fees to be charged and/or reimbursed. This policy provides the applicant a guide to the City's expectations of them and the development if they were to make a request to the City. 3. How does this Criteria relate to the TCAAP Public Finance Policy? If the City Council approves this Criteria, the TCAAP Public Finance Policy would no longer exist. This Criteria would provide a uniform set of business subsidy criteria applicable to all applicants for public financial assistance in the City, regardless of location. It should be noted that staff reviewed the former TCAAP Public Finance Policy and it was determined that the policies were duplicative in nature. The only difference in the two policies were that the TCAAP Policy had some statements that were \determined to not be relevant to today's market (i.e. TIF estimates spelled out, etc) and/or criteria that were already addressed in the Preliminary Development Agreement (PDA) with the City (development of a Resource Study, etc). Based upon this, it was recommended that the new Criteria replace the old TCAAP Public Finance Policy. 4. What other steps are necessary for approval of the Business Subsidy Criteria? After the public hearing and approval of the Criteria by the City Council, staff will submit it to the Department of Employment and Economic Development (DEED) as required by Statute.