HomeMy WebLinkAboutResolution 15-011 .
f
Resolution 15-011
A Resolution Hereby Adopting a Policy Governing
the Use of Sales Tax Revenue to be Granted as an
Economic Development Incentive Program
Whereas, the City of Brookings recognizes that publicly-funded investments by local
communities represent an effort to retain current economic activity and attract economic
growth are necessary to remain competitive; and
Whereas, the City further recognizes that grants to qualifying applicants of sales tax
revenue generated from said qualifying applicant is a reasonable and prudent means of
accomplishing desired economic growth; and
Whereas, the City believes the following policy objectives are necessary to govern the
policy process for the use of sales tax grants:
(1) To facilitate significant and comprehensive investment in new and/or expanding
facilities that will grow the tax base and provide a strong commitment to the
community.
(2) To increase overall community wealth.
(3) To encourage diversification of the area economic base and add value to the
area economic clusters and employment base.
(4) To generate additional sales tax revenue to support budgetary expenditures of
the City.
(5) To provide long-term community benefits in return for the City's investment.
(6) To insure the recipient project constitutes responsible development and further
complies with all other applicable development principles and regulations.
Whereas, the City desires to develop and adopt the means and methods by which sales
tax grants shall be utilized.
Now, Therefore, Be It Resolved by the City Council of the City of Brookings, the
following Policy be adopted to wit:
A) The City Council may approve a grant to qualifying applicants in any amount
deemed necessary not to exceed finro percent of local sales tax generated from
construction costs, equipment purchases, or iocal retail sales.
B) Qualifying businesses shall be: (i) New or expanding businesses that are retail in
nature and can meet the criteria required under Item (H); or that are otherwise
addressed under the City's Retail Acceleration Program. (ii) New or expanding
businesses that are commercial/industrial or technology-based in nature and can
meet the criteria required under Item (H).
�
t
C) Grants shall be reviewed and awarded in a fair, consistent, and responsible
manner utilizing the resources and process established by the Brookings
Economic Development Corporation (BEDC) and the City Council for an
objective evaluation of the application.
D) Grant awards shall be provided only to the extent demonstrated necessary for
the success of the project, and a completed Return on Investment (ROI) analysis
yielding results to the satisfaction of the City Council.
E) The City Council shall have final approval on all grant applications recommended
for approval after having been through the BEDC evaluation and review process.
F) As a means of protection and accountability of the public investment, (i) Grant
awards shall be reimbursed to the applicant following payment of said sales tax
to the State of South Dakota and remitted to the City. (ii) Claims against the
grant award must be accompanied by appropriate documentation prescribed by
the City as verification of the grant payment. (iii) Grant awards must have
suitable financial guarantees as a means of security (`claw-backs') and any other
such terms deemed essential by the City Council. (iv) The recipient shall be
entitled only to grant amounts that it generates and documented by the
Department of Revenue as being paid in Brookings. (v) Grant awards shall be
limited to either an aggregate amount, a specified time period, or both.
G) Applications for sales tax grant assistance shall be made to BEDC on application
forms prepared by BEDC. Applicants may be required to cover direct costs of
professional services deemed necessary by BEDC and/or the City associated
with the review of the application.
H) The foltowing criteria shall be used by the BEDC and City Council to consider
awards for qualifying applicants:
(i) Retail businesses that mitigate sales `leakage' to other markets and retain
significant sales in Brookings.
(ii) Retail businesses that provide niche product markets not otherwise
available and represent significant sales in Brookings.
(iii) Commercial, industrial, and technology-related businesses that meet a
minimum of one of the following in significant amounts as determined by
the City Council: diversify the economic base and occupational mix;
provide full-time, upper-income level jobs with employee benefits; have
high probability of recruiting employees from other markets; are a
necessity for significant and substantial job retention; meet qualifying
industry targets; have high probability of complementing existing or
recruiting other businesses or entities; represent significant capital
investment; retain SDSU graduates; facilitates emerging markets; and
does not place an undue burden or hardship on natural resources or
services necessary to serve the business.
�
I) Applications shall be deemed approved following adoption of a development
agreement between the City and the applicant prescribing all applicable terms
and conditions of the grant award. The development agreement shall be
prepared by staff of the BEDC, City, and legal counsel.
Approved this 24th day of February, 2015B by the City Council of the City of Brookings,
South Dakota.
CITY OF BROOKINGS
�
Tim Reed, Mayor
-<,,�:�
��: ��.:n r
�: � �.
D
a �A ;i
O; W
G�! `.�h �
� ' ornes, Attest