19 - Tax Abatement Agreement with SpiralWeld

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(Updated 01-08-18) POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT taxation a portion of the value of the real property, or of personal property located on the real property, or both. The period of the abatement granted under the agreement shall not exceed th(i-, term authorized by law. Such agreement will be ba"d on the condition that the owner or lessee of the property makes specific improvements or repairs to the property. An agreement oa*—vide for the exem:4tion of the real ioxcys-,ertVA in each = mcvered ithe the extent its value for that year exceeds the base year value. An agreement may provide for the exemption of personal property located on the real property in each year covered by the agreement other than personal property that was located on the real property at any time before the period covered by the agreement. Inventory or supplies cannot be abated as personal property. Tax abatements may only be granted tbr additional value of eligible property improvern made subsNuent to and specified in an abatement agreement between the Taxing Jurisdictio The additional value must exceed any reduction in the fair market value of other property of tf owner already on the tax roll within the area served by the Taxing Jurisdo m. Change i 7,- 1VM*aS7'F'1M1 authorized facility is utilized. Value added to the tax rolls must come from actual capit expenditures. The negotiation of tax abatement agreements will be conducted by the Pads Economic Development Corporation's ("PEDC') executive director, in close consultation with the city manager. In determining where and how tax abatements will be utilized, the executive director will examine the potential return on the public's investment. Return on public investment will be measured in terms of (i) jobs created, (h) jobs retained in cases of existing employers within the Taxing Jurisdictions, and broadening of the tax base and expansion of the economic base capital investment, payroll, local spending, V. Eligibility Criteria for Tax Abatement for Real and Personal Property A property owner and/or lessee shall be eligible for tax abatement only upon the following ciile4a. Facility tourist entertainment, other basic industry, or any prinuiry jobs creating industry. (See Appendix A for definitions.) 2. A new authorized facility must be created, or an existing authorized facility must be improved, moderrked or expanded. leased autliurized facty is granted abatemeni the agreement may be executed with the lessor and/or lessee, depending upon the particular circumstances of the proposed project. If the agreement Ls with the lessor, lessor shall demonstrate binding contracts with the lessee to guarantee compliance with the terms of m ent. 1, The pr must be a newly created, or improvements to an existing, authorized facility, Property 2. Eligible property for which abatement may be granted includes nonresidential real property and/or tangible personal property not located on the real property at any time before the abatement agreement becomes effective. 3, Abatement may be extended to the value of buildings, strtictures, fixed machinery and equipment, site improvements, tangible personal property, and that office space and related fixed improvements necessary to the operation and administration of the authorized facility. . ........... . ... .... -