HomeMy WebLinkAbout2015_02_17 CC PKTCity Council
City of Brookings
Meeting Agenda
Brookings City Council
Brookings City & County
Government Center
520 3rd St., Suite 230
Brookings, SD 57006
Phone: (605) 692-6281
Fax: (605) 692-6907
Community Room5:00 PMTuesday, February 17, 2015
Study Session
The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse
economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal
management.
5:00 PM STUDY SESSION
1. Call to Order / Pledge of Allegiance.
2. Record of Council Attendance.
3.ID 2015-0125 Discussion of Hospital Project Financing.
- Council Questions / Discussion
- Item to return to Council for consideration or adoption at later date
Estimated Time - 30 minutes
4.ID 2015-0124 Discussion of draft policy for Sales Tax Grants as an Economic
Development Incentive Tool.
Sales Tax Rebate Resolution PolicyAttachments:
- Council Questions / Discussion
- Item to return to Council for consideration or adoption at later date
Estimated Time - 30 minutes
5.ID 2015-0126 City Council Ex-Officio Reports.
6.ID 2015-0127 Identify topics for future study session (motion required).
7. Adjourn.
Action: Motion to Adjourn
Brookings City Council:
Tim Reed, Mayor, Keith Corbett, Deputy Mayor & Council Member
Council Members Tom Bezdichek, Jael Thorpe, John Kubal, Dan Hansen, Ope Niemeyer
Page 1 City of Brookings
February 17, 2015City Council Meeting Agenda
Council Staff:
Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk
View the City Council Meeting Live on the City Government Access Channel 9.
Rebroadcast Schedule: Wednesday 1:00pm/Thursday 7:00pm/Friday 9:00pm/Saturday 1:00pm
The complete City Council agenda packet is available on the city website: www.cityofbrookings.org
Assisted Listening Systems (ALS) are available upon request. Please contact Shari Thornes, Brookings City
Clerk, at (605)692-6281 or sthornes@cityofbrookings.org. If you require additional assistance, alternative
formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari
Thornes, City ADA Coordinator, at (605)692-6281 at least three working days prior to the meeting.
Engage Brookings is an online tool where citizens can engage, communicate and collaborate with community
decision makers and other residents. Where these ideas overlap is the future of Brookings.
www.engagebrookings.org
Page 2 City of Brookings
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2015-0125,Version:1
Discussion of Hospital Project Financing.
Summary:
The City Council will discuss details on debt service financing for the hospital project.
City of Brookings Printed on 2/12/2015Page 1 of 1
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City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2015-0124,Version:1
Discussion of draft policy for Sales Tax Grants as an Economic Development Incentive Tool.
Summary:
This is a draft Economic Development Policy that institutionalizes a grant program that utilizes sales
tax for qualifying business, similar to what we did with 3M and Bel Brands.
Attachments:
Sales Tax Rebate Resolution Policy
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Resolution 15-___
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 two percent of local sales tax generated from
construction costs, equipment purchases, or local 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).
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 following 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 ___ day of ______________, 2015 by the City Council of the City of
Brookings, South Dakota.
CITY OF BROOKINGS
______________________
Tim Reed, Mayor
ATTEST:
______________________
Shari Thornes, City Clerk
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2015-0126,Version:1
City Council Ex-Officio Reports.
Summary:
Pursuant to council direction, “City Council Member Ex-Officio Reports” will be a standing agenda
item at all Council Study Sessions. The Council Members that serve as Ex-Officio members on the
Brookings Health System Board of Trustees and Utility Board will provide verbal reports regarding
recent meetings they have attended.
Brookings Municipal Utility Board:
1.Council Member Niemeyer
2.Council Member Hansen
Brookings Health Systems Board of Trustees:
1.Council Member Kubal
2.Council Member Corbett
City of Brookings Printed on 2/12/2015Page 1 of 1
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City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 2015-0127,Version:1
Identify topics for future study session (motion required).
Summary:
Any Council member may request discussion of any issue at a future meeting only. Items cannot be
added for action at this meeting. A motion and second is required stating the issue, requested
outcome, and time. A majority vote is required.
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