13 - ABATEMENT POLICY AMENDMENT - Laserfiche WebLink

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Item No. 13 memorandum TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: ABATEMENT POLICY AMENDMENT DATE: May 4, 2015 BACKGROUND: On January 14, 2014 the city, county, and college all agreed to an updated Policy Statement Criteria and Guidelines for Tax Abatement. Those guidelines provide for tax abatements to projects that will increase taxable value by a minimum of $1 million and increase the number of jobs by at least ten. For existing employers, the job generation requirement is waived. All project abatements between the total values of $1 million and $25 million are subject to a chart which describes the percentages to be granted over a seven year abatement period. Only those projects over $25 million are eligible for up to a ten -year, 100% abatement (the maximum allowed by state law). Specific amounts and terms are to be negotiated. STATUS OF ISSUE: At the April 27 council meeting, the city council indicated a desire to exempt existing properties not only from the job requirements, but also to remove it from the Capital Investment chart. This can be done by changing the language found in Section VI. Making this change will not change the policy in place for the county or college of course, so unless and until they make a similar change, the jurisdictions will have slightly different policies in place. BUDGET: NA. RECOMMENDATION: Approve policy change.