Economic Development Strategy.

Transcription

1 Economic Development Strategy.

2 j Prepared by: Wendy Ford, Economic Development Coordinator, 410 E. Washington St., Iowa City, IA ) RESOLUTION NO RESOLUTION ADOPTING CITY OF IOWA CITY ECONOMIC DEVELOPMENT POLICIES. WHEREAS, the Iowa City City Council believes it is in the public's best interest to establish a policy guiding the community's economic development activities, and WHEREAS, the City Council Economic Development Committee reviewed and approved the policies on April 19, 2011; and WHEREAS, this policy document will be used to guide the City development policy decisions, Council's future economic NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, THAT: The City of Iowa City Economic Development Policies be adopted. Passed and approved this 17th day of Mai, 20_1L- MAYOR ATTEST: ~~~~~_ - CITY LERK City Attorney's Office App d by C_ V~~ J`-~^ J`' `~

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4 r r US-7 /- 71 CITY OF IOWA CITY 13 m'~~~ MEMO RANDUM To: City Manager From: Jeff Davidson, Director of Planning and Community Development Date: May 9, 2011 Re: Economic Development Policies The Draft Economic Development Policies document was distributed at the January 13, 2011 City Council work session. As budget and strategic decisions germane to economic development were imminent, it was pertinent to present it to you at that time. With budget season past and many economic development projects coming to the fore, we feel it is a good time to discuss and consider a formal approval of the policy. The Economic Development Committee met on April 19, 2011 and voted 3-0 in favor of recommending the policy to the Council. At its core, this policy statement is simple. Its essential elements are the What, Why and How the City shall conduct economic development activities. 1) What a) Attract new development, particularly industrial and commercial operations with jobs. b) Assist existing business in their growth and expansion. c) Incubate new business operations in new ways. 2) Why a) Adding jobs fosters an environment favorable to increasing the tax base. 3) How a) Careful evaluation of public/private partnerships. b) Consider use of incentive programs to achieve results. c) Use smallest amount of incentives to achieve maximum results for public benefit. d) Be responsive to business needs of timing and public's need for transparency. e) Never at the expense of our neighboring communities.

5 City of North Liberty Economic Development Strategy Philosophy of Economic Development Assistance in North Liberty Business development is important to the City of North Liberty. North Liberty s location and business climate are the principal means of attracting and retaining high quality jobs; however, in some cases the City may determine that development assistance is necessary and appropriate to attract businesses that are anticipated to have a significant, lasting benefit to the City. When such cases arise, the City will use the strategy below as a guide for incentivizing business development. Purpose of Strategy The purpose of the Economic Development Strategy is to provide guidelines for assisting business in the expansion and new construction of high quality industrial or commercial facilities, where such assistance will boost employment opportunities and/or tax base within the City. Strategy The strategy is to utilize a portion of additional property taxes paid (incremental taxes) by new or expanding businesses through one or more of the following incentives. The eligible business and the City will enter into an agreement that specifies the type(s) of economic development support that will be provided by the City: Providing for the rebate of property taxes in Urban Renewal Areas Utilizing Tax Increment Financing. Acquiring and/or disposing of land used in an economic development project. Constructing public infrastructure and improving existing public infrastructure in support of an economic development project. Performing site improvements such as grading, utility connections, railroad siding, etc. which make disposition of land parcels more marketable and competitive. Providing up front economic development assistance through loans or grants for projects of extraordinary employment and/or property value expectations. City of North Liberty, Economic Development Strategy 1

6 The City Council may also consider providing other additional incentives as provided by law, including, but not limited to: Tax abatement The reduction or waiver of connection or other standard City fees. Access to and staff resources for seeking economic development incentive through state and federal programs. Criteria The City Council shall review proposed use of incentives based on the following criteria: The amount of investment in new facilities and/or renovation of existing facilities, as well as the type of facility being constructed (i.e. masonry, green elements, etc.). The number of jobs created and/or retained. The average wage as it relates to the respective industry and/or the region. The extent to which investment in public infrastructure is necessary to accommodate the project and is determined to be a good investment for the City. The extent to which the project prevents or eliminates blighting conditions contributing to urban distress. The rationale for the incentive is that the project would have been unlikely to occur without its provision. The rationale that the project and use of incentives serves a public purpose. The City Council reserves the right to consider each application on its merits and may approve or deny Tax Increment Financing and other incentives in any and all cases. NOTE: One of the criticisms we have heard is that the City does not have any programs for small business. As part of this strategy, Council could consider a grant/loan program for small businesses, funded by TIF dollars. This may require an expansion of the Urban Renewal Area. Ideally, these loans/grants would be used for improvements to a building, resulting in increased valuations. However, guidelines could be developed for general assistance for capital and other resources. This incentive should also be based on the creation/retention of jobs and/or expansion of the business. If Council is interested in this concept, staff can begin working on proposed guidelines for discussion. City of North Liberty, Economic Development Strategy 2