CITY COUNCIL AGENDA REQUEST FORM
4 12 16
Today’s date: ____/____/____
4 20 16
Date of meeting ____/____/____
(City Council meetings are held the 1st and 3rd Wednesday of each month.)
Name of Citizen, Organization, Elected Official, or Department Head making request:
Aaron Qualls, Planning and Economic Development Director
Address: 1123 Lake Street
Phone number and email address:
Authorized by: Aaron Qualls
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(Department Heads, City Council members, and the Mayor are City officials.)
Subject: Economic Development Policy
Summary of what is being requested: Council's feedback on the draft economic development
policy
The following information MUST be completed before submitting your request to the City Clerk:
✔
1. Would there be any financial impact to the city? Yes or No
If yes, in what way? One portion of the draft policy would allow for certain fee waivers as a match
to other incentives and when job creation benchmarks are obtained
2. Name(s) of any individual(s) or group(s) that will be
directly affected by this action:
Have they been contacted?
Yes or No
3. Is there a need for a general public information or public involvement plan? Yes or No
✔
If yes, please specify and suggest a method to accomplish the plan:
4. Is an enforcement plan needed? Yes or No
✔
Additional funds needed? Yes or No
✔
5. Have all the affected departments been informed about this agenda item? Yes or No
✔
This form must be submitted no later than 5 working days prior to the scheduled
meeting. All pertinent paperwork to be distributed to City Council must be attached.
ITEMS WILL NOT BE AGENDIZED WITHOUT THIS FORM
Sandpoint, Idaho
September 2012
CITY COUNCIL AGENDA REPORT
TO:
DATE:
MEETING:
FROM:
SUBJECT:
MAYOR AND CITY COUNCIL
April 12, 2016
April 20, 2016
Planning and Economic Development Director
Economic Development Policy
DESCRIPTION/BACKGROUND:
Recognizing the importance of maintaining and enhancing a diverse and year around economy,
staff has, at the direction of the Mayor’s office, researched economic development policies of
various other Cities and Counties within and outside of Idaho and drafted a document containing
goals and policies in order to support job creation and retention.
STAFF RECOMMENDATION:
Provide feedback for a revised document in the form of a resolution prepared for adoption.
ACTION:
Motion to direct staff to make any changes agreed to at the meeting and/or prepare the document
for adoption.
WILL THERE BE ANY FINANCIAL IMPACT?
HAS THIS ITEM BEEN
BUDGETED?
Yes. The policy contains benchmarks for certain development fee waivers when tied to job
creation and as a match for incentive programs offered by other agencies.
ATTACHMENTS:
Draft Economic Development Policy
City of Sandpoint Economic Development Policy – DRAFT 4.7.16 PURPOSE Recognizing the importance of maintaining and enhancing a diverse and year around economy, the purpose of this document is to establish goals and policies for economic development within the City of Sandpoint. BACKGROUND According to the 2009 Sandpoint Comprehensive Plan, “Continued economic development and downtown revitalization in Sandpoint is essential to the community’s viability.” Historically, Sandpoint’s economy was based around resource extraction—
primarily timber—when lumber companies from the upper Midwest began to arrive in the early 1900s. Although timber products are still an important part of the regional economy, the greater Sandpoint area has transitioned away from a primarily resource extraction based economy to one that is much more diverse. Although travel and tourism play a significant role in today’s regional economy, Sandpoint is also host to thriving sectors in manufacturing, aerospace, health care and advanced industries. Maintaining and enhancing this economic diversity is essential to year around, resilient economy—employing residents and supporting small businesses through all four seasons. Economic development incentives to support job creation and retention are necessary due to the inherent competition between Cities, Sates and even other Countries. By combining efforts with other agencies at the local and state level, incentives can make the difference as to whether a given employer stays, expands or relocates to Sandpoint. Page 1 of 7 City of Sandpoint Economic Development Policy – DRAFT 4.7.16 ECONOMIC DEVELOPMENT OBJECTIVES 1. Maintain existing manufacturing, aerospace, health care and advanced industries as providers of year-­‐around jobs with a living wage. 2. Attract companies that provide jobs with a high local multiplier effect (high paying jobs which create additional jobs within other sectors of the economy) 3. Retain a diverse range of industries in order to maintain economic resiliency—giving particular emphasis on projects that are projected to provide a positive and complementary impact to existing businesses and industry clusters. 4. Complete public infrastructure projects that benefit multiple businesses and/or industries. 5. Support proposals that demonstrate fiscal, environmental, and social sustainability, long-­‐term community benefits and resiliency, as well as alignment with the goals and objectives of the City’s Comprehensive Plan. 6. Maintain Sandpoint’s high quality of life—generally recognized as the City’s greatest asset to economic development. 7. Continue Sandpoint’s legacy as a hub of innovation by supporting further development of higher education, fostering participation between businesses and local schools as well as other workforce training programs. PARTNERING AGENCIES The City of Sandpoint works with the following partner agencies on Economic Development Projects: • Idaho Department of Commerce • Idaho Department of Labor • Bonner County Economic Development Corporation • Sandpoint Urban Renewal Agency • Panhandle Area Council • Greater Sandpoint Chamber of Commerce • Bonner County • Neighboring Communities of Dover, Ponderay and Kootenai Page 2 of 7 City of Sandpoint Economic Development Policy – DRAFT 4.7.16 ECONOMIC DEVELOPMENT POLICIES 1. Participate in and provide in-­‐kind support for available economic development incentive programs (partial list below) for projects that meet one or more above stated economic development objectives. a. Community Development Block Grants (CDBG) i. Partner Agency – Idaho Department of Commerce ii. Description – This Federally funded program assists Idaho cities and counties with the development of needed public infrastructure. iii. Eligibility – Public facilities, economic development projects, or senior citizen and community centers. Applicants may be counties, cities with populations under 50,000, and service providers such as water and sewer districts and senior centers but must have a City or County Sponsor. b. Rural Community Development Block Grants (RCDBG) i. Partner Agency – Idaho Department of Commerce ii. Description – This state-­‐funded program provides funds to distressed rural areas for building public infrastructure in support of economic expansion and job creation. iii. Eligibility – Extension of streets, water and sewer lines, and/or utilities to a site for a new business or industrial park; acquisition or construction of buildings for lease or purchase by a company; and provision of telecommunications, power, gas, and rail upgrades necessary for business expansions. Applicants may be rural counties or cities with populations under 25,000. c. Idaho Gem Grant (IGG) i. Partner Agency – Idaho Department of Commerce ii. Description – Gem grants may be up to $50,000 and are focused on job creation and retention. Awards are limited to hard implementation costs of economic development projects. iii. Eligibility – Examples include water and sewer infrastructure for new a business, remediation of slum and blight conditions blocking business development, and matching funds for the creation of assets with a high certainty of aiding future economic development efforts. Gem grants require a Page 3 of 7 City of Sandpoint Economic Development Policy – DRAFT 4.7.16 community match and are available to rural communities with a population of 10,000 or less. d. Idaho Opportunity Fund (IOF) i. Partner Agency – Idaho Department of Commerce ii. Description – At the discretion of the Director of Idaho Commerce, the IOF is a “deal closing fund” to strengthen Idaho’s competitive ability to support expansion of existing Idaho businesses and recruit new companies to the state. iii. Eligibility – Construction of or improvements to new or existing water, sewer, gas or electric utility systems for new or existing buildings to be used for industrial or commercial operations; flood zone or environmental hazard mitigation; construction, upgrade or renovation of other infrastructure related items including, but not limited to, railroads, broadband, parking lots, roads or other public costs that are directly related to specific job creation or expansion projects. e. Tax Reimbursement Incentive (TRI) Program i. Partner Agency – Idaho Department of Commerce ii. Description – In rural areas, companies that create 20 new full-­‐
time jobs that pay at or above the average county wage may receive a tax credit of up to 30% on payroll, sales and income tax for up to 15 years. iii. Eligibility – Companies must prove its stability and a significant economic impact to the community and Idaho. Companies must also prove that the incentive is a critical factor to its decision. A meaningful community match is a required. f. Property Tax Exemptions (County) i. Partner Agency – Bonner County ii. Description – At the discretion of the County Commissioners, full or partial tax exemptions may be granted for up to 5 years for new manufacturing facilities. iii. Eligibility – $3 million in new manufacturing facilities g. Sandpoint Urban Renewal Agency (SURA) Funding i. Partner Agency – SURA Page 4 of 7 City of Sandpoint Economic Development Policy – DRAFT 4.7.16 ii. Description – Established in 2005 for a period of 24 years, SURA may fund public improvements that stimulate economic development and arrest urban deterioration and obsolesce. iii. Eligibility – Project must meet SURA established criteria, be located within one of SURA’s two districts (Downtown or Northern) and adhere to the plan for the district in which the project is located. h. Workforce Development Training Funds i. Partner Agency – Idaho Department of Labor ii. Description – Businesses may receive up to $3,000 in cash reimbursements for the training of full-­‐time, new employees or for helping retain employees facing permanent layoff. iii. Eligibility – Receiving company must produce a product or service that is mainly sold (more than 50%) outside the region where the business is located or the company is in the health care industry; starting wage for positions must be a minimum of $12/hour; and the company provides employer assisted medical benefits. i.
Other Idaho Business Incentives – Qualifying business may apply for a variety of other incentives and support pertaining to external financing, workforce development, international market expansion, research and development, personal property tax credits, and foreign direct investment. For more information, interested parties may contact Sandpoint City staff or the Idaho Department of Commerce (commerce.idaho.gov/incentives-­‐and-­‐financing). Page 5 of 7 City of Sandpoint Economic Development Policy – DRAFT 4.7.16 2. Consider fee waivers as a match to partner agency incentives and when tied to company performance agreements. a. Company Eligibility – Certain administrative City fees may be waived or reimbursed for expansion or relocation projects where a minimum of 20 new full-­‐time (30 hours a week or more) jobs that pay at or above the average County wage will be created as a result of the development. The company must demonstrate that there is a nexus between the development proposal and job creation and the City may require a company performance agreement and/or confirmation of incentive program approval for which the waivers or reimbursements are to provide a community match. b. Fees eligible for waivers or reimbursement: i. Building Permit Fee ii. Plan Check Fee iii. Site Plan Review iv. Short Plat Application c. Fee Waiver Scale Tier I Tier II Tier III Number of Jobs Created 20-­‐25 26-­‐50 51+ % Of Eligible Fees Waived 50% 75% 100% Page 6 of 7 City of Sandpoint Economic Development Policy – DRAFT 4.7.16 3. The City shall provide for the protection and accountability of the public investment. a. The City’s participation in economic development incentives shall be contingent on the participating company being held to accountability standards. This may include company performance agreements and periodic verifications of jobs created or retained. b. Changing economic conditions and availability of funds may cause the City Council to modify, amend, or discontinue the economic development policy at any time. Should incentives be discontinued, the City Council will honor any incentive to which it committed before its discontinuance. Economic development incentives may not be transferred or otherwise conveyed to any other party, unless agreed to by the City Council. c. The City shall keep complete and accurate records of any incentive program and all applicable laws pertaining to public investments for economic development shall be adhered to. Page 7 of 7