06-B PEDC Budget 2007-2008 - Laserfiche WebLink

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Lamar County - Paris Economic Development Plan Employer Incentive Program Primary target industries are among the most desirable and sought after in the United States. Since there are a limited number of businesses that meet this profile, and since they contribute a significant amount of wealth to their local economies, many communities are offering financial incentives to attract and retain them. In order to compete in this marketplace, Paris will likewise have to offer various types of financial and non-financial inducements, such as expedited permitting, regulatory relief, low-interest loans, employee training, and property tax refunds, to qualified companies. Used wisely, competitive business incentives for companies creating high-wage jobs can act as a catalyst for economic development efforts, facilitate a pro-business climate, and ensure a trained and diversified workforce. It must be recognized, however, that without a dependable funding source and a workable implementation methodology, any incentive program will be ineffective. To ensure its effectiveness, local governments must consistently fund and implement the incentive program over time, which will require political leadership, a reliable source of funding, and an ongoing monitoring system. To assist with this process, an incentives matrix, or mathematical screening process that can be used to pre-qualify a company for particular incentives, has been created. Table I-I provides an example of criteria that could be used to determine what incentives should be offered. Each criterion evaluates a business characteristic that can be measured in numerical units, such as number of workers, dollars, square feet, or percentage points. For example, a company may anticipate creating 300 new jobs that will have an average salary of $47,000, be housed in a 100,000-square-foot building, and conduct business activity that is 100 percent primary in nature. Table 1-1 Example of Weighted Criteria to be Used in the Incentives Matrix Primary employer Wages to be paid (% of area average) Square feet of building per worker Floor to area ratio Workers per acre Wage impact jobs Real property tax per acre (current) Real property tax per acre (new money) Renovation impact points Payroll per acre Total Weight Maximum 100% 150% 250 65% 100 50 $24,000 $24,000 200% $5.230.464 Paris Economic Development Corporation Page 40 Minimum 50% 110% 500 25% 25 10 $8,000 $8,000 50% $958.918 Wei2ht 20 20 10 10 10 20 5 20 20 10 145