Danville/Boyle County, Kentucky: Local Business Development Incentives

ECONOMIC DEVELOPMENT PARTNERSHIP Overview of City, County, and Other Local IncentivesThe community of Danville/Boyle County, Kentucky, offers to new business prospects the followinglocal incentives to induce their development in our location. These incentives are subject to final approvalas required by the Danville City Commission (City), the Boyle County Fiscal Court (County), and/or theKentucky Economic Development Finance Authority (KEDFA).Introduction:These incentives are premised upon thepolicy that the City and/or County shallexperienceno net loss of tax revenues as a result of incentive investmentsin an eligible project.And, acost-benefit analysis shall be conducted prior to a grant of incentives to demonstrate that the City and/orCounty will recapture a reasonable rate of return on their incentive investment in a project.Clawbacks shall be required for applicable incentives. The City and/or County shall give preference toprojects in which KEDFA is an incentive investment partner.City of Danville and/or Boyle County1. Job Development Incentive (JDI): The City and Countymay jointly credit to an employer up to 1% of net profits tax and/or grant to an employer a wage assessment of up to 1% of payroll tax paid by its new employees for a period of not less than five (5) years nor more than fifteen (15) years. Priority shall be given to new or existing business projects that qualify for Kentucky Business Investment (KBI) or Kentucky Reinvestment Act (KRA) incentives. However, the City and/or the County may extendthe JDI to a business project which does not receive state incentives, but isreviewed and recommended by the Danville/Boyle County Economic Development Partnership (EDP). This flexible incentive shall be negotiated and structured upon the number of jobs created, the amount of capital invested, the amount of development costs not addressed by other incentives, and the competitive need presented by a project.The company must agree to remain in the community for a period of years after the project’s activation or, alternatively, to repay a pro rata share of these incentives based upon the duration of the company’s location in the community within that period.2. Industrial Revenue Bond (IRB): The City and/or the County, with approval of KEDFA, may issue an IRB on the company’s behalf to finance the project costs of the company’s facility, including engineering, site preparation, land, buildings, machinery/equipment, and bond issuance costs. The issuing government will take ownership of the subject property as the bond is repaid by the company via leasehold. For the period of the IRB’s repayment and to the extent that the IRB finances the project, the company will receive an abatement of all City and County real and/or tangible property taxes and may receive a reduced state property tax rate. However, a payment in lieu of taxes (PILOT) shall be negotiated with the company for the benefit of school, fire protection, and other special districts.

OVERVIEW OF LOCAL INCENTIVES: Danville/Boyle County, KentuckyPage 23. Community Development Block Grant (CDBG): Subject to CDBG program guidelines and funding availability, the City and/or the County may apply for a grant of Economic Development program funds for an eligible project from the Kentucky Department for Local Government, which administers the U.S. Department of Housing and Urban Development’s CDBG allocation for Kentucky.The City and County may jointly apply for a maximum grant of $2,000,000.00, or each jurisdiction separately may apply for a maximum grant of $1,000,000.00. CDBG funds may be used to create or retain jobs and to provide training and human services for the professional advancement of low-to-moderate-income persons. CDBG funds shall be loaned to a company at a below-market rate of interest and then repaid to the Boyle County Industrial Foundation as the City and/or County’s sub-recipient for eligible local business reinvestment.4. Tax Increment Financing (TIF): TIF is a tool to use future gains in taxes to finance the current improvements that will create those gains.A development project is financed by using incremental additional local taxes such as property or payroll taxes realized as a result of the development.Subject to Kentucky’s TIF program guidelines and KEDFA approval, the City and/or the County may participate in the following local development area TIFs as long as either shall not cause the tract to represent over 20% of the assessed value of all taxable real property in the jurisdiction: a. Vacant Land Development:In any 12-month period, the City and/or County may approve a development area of a previously undeveloped tract of land no larger than 1,000 acres. State participation is not available in a vacant land development TIF. b. Mixed Use Redevelopment:The City and/or the County may establish a development area of contiguous land no larger than three (3) square miles that is determined to be a blighted area through required statutory findings. The City and/or the County may request state participation with certain additional requirements.City of Danville1. Property Tax Exemption: The City may abate real and/or tangible property taxes for a period up to five (5) yearsto induce manufacturing establishments to locate within the City, per Kentucky Revised Statutes (KRS) 92.300 (1).(For Fiscal Year 2010 – 2011, the City’s real property tax rate is $0.138 per $100 valuation while the tangible property tax rate is $0.186 per $100 valuation.)The company must agree to remain in the community for a period of up to ten (10) years after its location or, alternatively, to repay a pro rata share of these incentives based upon the duration of the company’s location in the community within that period.2. Recaptured Economic Development (ED) Bond Funds Grant: Subject to availability and joint approval by the City and KEDFA, the City may grant to the company an amount in recaptured ED Bond funds. These funds may be used for “the acquisition of any real estate and the construction, acquisition,

OVERVIEW OF LOCAL INCENTIVES: Danville/Boyle County, KentuckyPage 3 and installation thereon and with respect thereto of improvements and facilities necessary and useful for the improvement of the real estate for conveyance to or lease to industrial firms to be used formanufacturing, processing, or assembling purposes, including without limitation: (a) surveys; (b) site tests and inspections; (c) subsurface site work; (d) excavation, removal of structures, roadways, cemeteries, and other surface obstructions; (e) filling, grading, and provision of drainage; (f) storm water retention;(g) installation of utilities, such as water, sewer, sewage treatment, gas, electricity, communication and other similar facilities; (h) off-site construction of utility extensions to the boundaries of the real estate; (i) construction and installation of buildings, including buildings to be used for worker training and education; (j) rail facilities; (k) roads,sidewalks, curbs, and other improvements; (l) workforce training and education; and (m) any other use approved in writing by KEDFA.” This grant of ED Bond funds shall be conditioned upon the fulfillment of targeted job creation goals as agreed upon by the City, KEDFA, and the company, subject to proportional repayment to the City should the company not fulfill its job creation goals within an agreed period of time. These recaptured ED Bond funds shall be granted under the same terms as any additional ED Bond funds granted directly by KEDFA for a project.3. Fee Waivers: The City may reduce or waive the following fees related to the project: a. water and sewer connection fees, excluding time and materials expended by the City, the value of which is to be determined by the company’s expected water and sewer consumption; b. business license fee($25); and c. stormwater fee, which shall be available for a negotiated period of time only in extraordinary circumstances as justified by project viability within the City and after all other City incentives above have been utilized.4. New Markets Tax Credit (NMTC): The City includes a Qualifying Census Tract (Census Tract 21021990300), which encompasses the downtown business district. The EDP will facilitate an eligible project’s contact with and application to a Community Development Entity (CDE) to secure financingvia the CDE’s NMTC allocation.Economic Development Partners1. Industrial Park Site Survey/Utility Connection: For undeveloped land within the industrial parks it owns,the Boyle County Industrial Foundationwill assume the costs of surveying asite selected by a project and extending necessary utility connections to the site boundary.2. Permitting/Licensing Assistance: For both industrial and commercial projects, the Danville/Boyle County Chamber of Commerce offers “JumpStart” guidance through the local permitting/licensing process by:

OVERVIEW OF LOCAL INCENTIVES: Danville/Boyle County, KentuckyPage 4 a. convening aroundtable of local regulatory agency representatives to personally advise the project regarding local and, if applicable, state requirements for its operations and to develop a project-specific plan for the permitting/licensing process; and b. coordinating the follow-up response of local regulatory agencies to the project’s needs.3. Application Fee Reimbursement: The Boyle County Industrial Foundation will reimburse a company for the non-refundable application fee payable to the Kentucky Cabinet for Economic Development upon the company’s submission of an application for state financial incentives, a value of up to $1,000.00per project application.4. Workforce Training, Recruitment & Relocation Support: The community of Danville/Boyle County, Kentucky, stands ready to accommodate your company’s workforce needs through our network of local resources: a. Bluegrass Community & Technical College’s Danville Campus offers a variety of workforce education and training programs that may be specifically tailored to the needs of your company for skilled employees. b. Our community’s economic development, educational, and employment agencies are also committed to assisting your company to recruit a skilled workforce from our 13-county labor market area, encompassing an available labor supply of at least 31,674 workers within a regional civilian labor force of approximately 300,370 workers as of September 2011per the U.S. Department of Labor, Bureau of Labor Statistics. c. The EDP offers “concierge” services to our new and existing industries through our network of public and private resources. On the community’s behalf, the EDP will warmly receive and diligently support your company’s managerial and/or technical staff and their families who may relocate here to establish your new facility and operations. This support includes direct, personal assistance to secure residential housing and services, spousal employment, and educational placement.As these aggressive and flexible incentives attest, the community of Danville/Boyle County, Kentucky,strongly desires to welcome your company as the newest corporate citizen of our diverse and vibrantcommunity of local industries and businesses!For additional information, please contact: Jody A. Lassiter, JD| President/CEO Danville/Boyle County Economic Development Partnership 304 South Fourth Street | Danville, Kentucky 40422 Office: (859) 236-2805 | Mobile:(859) 319-8068 jody@betterindanville.com| www.betterindanville.com

Danville/Boyle County, Kentucky: Local Business Development Incentives

by Danville/Boyle County Economic Development Partnership on Mar 31, 2010

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Danville/Boyle County, Kentucky: Local Business Development Incentives — Document Transcript

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