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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/19/2013 - RESOLUTION 2013-025 ADOPTING A POLICY FOR DEVELOPIDATE: March 19, 2013 STAFF: Bruce Hendee, Josh Birks SeonAh Kendall AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 29 SUBJECT Resolution 2013-025 Adopting a Policy for Developing Primary Employer Business Assistance Packages. EXECUTIVE SUMMARY The City’s historical approach to primary employer business assistance has served the community well in the past. Several businesses have been retained and expanded as a result of business assistance packages developed by the Economic Health Office and approved by City Council. However, the time has come to move towards a more sophisticated approach to development and oversight of future business assistance packages. Therefore, this policy is intended to outline the basics of a formal process for developing business assistance packages for primary employers that maintains the flexibility of the historical approach but applies additional rigor and structure to the process. BACKGROUND / DISCUSSION In the City of Fort Collins, the community intentionally refers to economic activity as “economic health” rather than the traditional term “economic development.” The community has made this purposeful distinction because it implies that the goal of City involvement is to ensure a balanced, sustainable and resilient economy. The City’s long-range vision, which is articulated in City Plan Fort Collins, utilizes the basic tenets of sustainability as its guiding principles for the City’s vision and acts as a foundation underpinning of all components of the plan. The three main tenets of sustainability include systems thinking, continuous improvements and a triple bottom line (TBL) analysis. One of the primary purposes of the Economic Health Strategic Plan (EHSP) is the retention and expansion of primary employers. The City of Fort Collins uses a variety of local assistance tools to assist primary employers with relocation and expansion efforts. City Council and the EHSP have identified the need to develop a clear business assistance policy. There is an increased demand by taxpayers and public authorities to validate economic development assistance and to ensure the investments made to support businesses has a clear, mutual benefit to the community and business. This policy statement will apply to requests for direct assistance by primary employers considering cost/benefits of remaining and/or expanding their operations in the City, as well as, any primary employer evaluating relocation to the City. For the purpose of this document, a “primary employer” or “primary job” will be defined as any business or job located within the City that derives a minimum of 50 percent of its income from the sale of goods or services outside the Fort Collins Growth Management Area (GMA). Work Session Recap On January 22, 2013, staff presented an overview of the business assistance package’s current practices, an incentives benchmark study and the beginning development of a systems approach to primary employer assistance. During this work session, councilmembers suggested staff work by setting high-level criteria and sub categories that would allow projects to move up or down in terms of project feasibility. Suggestions were also given to view the policy statement process in a holistic approach instead of in isolation. In addition, Councilmembers recommended the need for a thoughtful process that is not driven by time, but continuous process improvements. It is staff’s understanding that this involves a stepwise approach, marked with gradual progression and process improvements. (Attachment 1) Policy Intent Currently, the City does not employ a one-size-fits-all approach to developing business assistance packages. Instead, the City chooses to work collaboratively with the primary employer to build a package that is specific to the particular business needs. While this historical approach has worked for the City in the past, the time has come to move towards a more sophisticated approach to development of future business assistance packages. Therefore, the business assistance policy statement is intended to outline the basics of a formal process for developing primary employer business assistance packages that will maintain the flexibility of the historical approach while applying additional rigor March 19, 2013 -2- ITEM 29 and structure to the process. NOTE: the business assistance policy statement described here is not to the exclusion of other business assistance efforts that might occur (such as the Urban Renewal Authority’s employment of tax increment financing). The intent of the primary employer business assistance package policy is to: “Encourage quality primary job retention and creation through private sector investment in our community that supports a balanced, sustainable and resilient economy.” Policy Framework As defined in the Primary Employer Business Assistance Package policy statement (Exhibit A to Resolution 2013-025), the framework outlines the refined process for developing business assistance packages in several areas: 1. Applicability – Does the request meet the “primary employer” criteria? 2. Organization and management – Is there clear, defined roles and responsibilities assigned? 3. Available assistance tools – What tools will be available for this business assistance package? 4. Application requirements – Has the company provided the information required to analyze the project? 5. Evaluation criteria – Does the project align with City Plan, the Economic Health Strategic Plan and other City goals? 6. Business assistance inputs – Does the project meet the annual average wages, number of retained or net new jobs and health care premium assistance? 7. Economic and other analyses – Does the project pass the economic and TBL analysis? 8. Minimum company commitment – Has the company agreed to the minimum commitments required to move the project forward? 9. Compliance monitoring – Has the company and city staff agreed on the compliance measures? 10. Annual reporting – Based on the compliance monitoring, city staff will provide annual compliance updates to City Council. Policy Framework Work Plan In an effort for continuous improvement through monitoring and future plan updates, staff is committed to bringing forward additional process improvements over the next few months. Each item will be developed, approved and reviewed from time to time with the City Manager, with notice to City Council when substantial changes are proposed. Below is a list of suggested improvements and a work plan for accomplishing these continuous improvements: Item Description Anticipated Completion Date Application The EHO will use existing applications, similar to the Community Development Block Grant funding request and the Urban Renewal Authority applications as a model for the initial application. April 2013 (initial) Ongoing evaluation and improvements Evaluation Criteria Determine the screening criteria for all requests using a set of evaluation criteria designed to provide a holistic evaluation of the proposed project. May 2013 (initial) Ongoing evaluation and improvements Input Criteria Development of input criteria that aligns with City objectives from the EHSP, City Plan, and/or other relevant strategies (such as target industry clusters). May 2013 (initial) Ongoing evaluation and improvements Compliance Monitoring All business assistance packages require a performance- based compliance before payment is distributed. Staff will work collaboratively with other city departments and businesses to provide annual report to council. June 2013 (initial) Ongoing evaluation and improvements March 19, 2013 -3- ITEM 29 Item Description Anticipated Completion Date Economic Impact Analysis Improvements Use of a triple bottom line (TBL) approach to evaluate each project. Determination of the sound approach that evaluates revenues and costs (including, not only economic, but environmental and social costs). Ongoing evaluation and improvements New Tools Staff is committed to ongoing evaluation of additional tools for their applicability to primary employers and job retention and creation. On-going FINANCIAL / ECONOMIC IMPACTS The business assistance package policy statement provides enhanced analysis of future primary employer business assistance proposals. No direct financial impact is incurred with the business assistance package policy statement. ENVIRONMENTAL IMPACTS Although the actual primary employer business assistance package policy statement does not have any environmental impact, staff is committed to work with the community, businesses and other identified groups to evaluate primary employer business impacts. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BOARD / COMMISSION RECOMMENDATION Staff presented before the Economic Advisory Commission (EAC) on two occasions, December 19, 2012 and February 20, 2013. Staff requested feedback from EAC members on classification/ranking criteria. (Attachment 2, 3 and 4) PUBLIC OUTREACH Staff presented the business assistance package policy statement several times within the community. As mentioned above, staff presented before EAC in December 2012 and February 2013. Staff also presented the business assistance package policy framework to the Fort Collins Area Chamber of Commerce’s Local Legislative Affairs Committee on January 18, 2013 and March 8, 2013. Additionally, staff hosted an open house to the community on January 16, 2013, with the option of an online survey which was open from January 14, 2013 – February 8, 2013. ATTACHMENTS 1. January 22, 2013 City Council Work Session Summary – Incentives Benchmarking Memorandum 2. Economic Advisory Board Meeting Minutes, December 19, 2012 4. Economic Advisory Board Meeting Minutes, February 20, 2013 5. Economic Advisory Board Member Classification/Rankings 6. Powerpoint Presentation ATTACHMENT 1 ATTACHMENT 2 3 Glen Colton moved and Mike Kulisheck seconded: The Economic Advisory Commission (EAC) supports the staff recommendation for the updated Capital Expansion Fee Structure and recommends Council approve it on first reading. Motion passed 6 – 0 Agenda Item 7: Economic Health Strategic Plan Priorities Josh Birks commented that the Task Implementation Team is moving forward and provided a snapshot of outside partners/entities that will be involved as well. A power point summary is attached for review. Agenda Item 8: Business Assistance Policy Framework Update Josh Birks provided the most current draft of the Business Assistance Policy Framework Policy, which includes an introduction/summary, policy intent, policy objectives, policy framework, organization and management, available assistance tools, application requirements, evaluation criteria, business assistance inputs, economic and other analyses, minimum company commitments, compliance monitoring, and annual reporting. The intent of the new Policy is to provide a structure that is more formal and systematic. Each section was reviewed and feedback was provided as follows: Glen Colton- Primary jobs is an artificial term. We need to focus more on jobs that support a local economy and not get more dependent on jobs that are subjective to national and global economies (large employers in Fort Collins). Packages should be based on current market conditions – we don’t need to be an open door to everyone. Sam Solt- Our targeted industries are important to our focus in Fort Collins. We should reference the Clusters in the policy and include them in the evaluation criteria. I don’t believe we should never “not recruit” because you don’t always know the other side and what is coming (i.e. a large employer could leave) and changes in the market place can happen very quickly. In addition, a focus allows the Fort Collins to become known for its economic foundation which further enhances companies participating in these segments access to private capital and long-term success. Mike Kulisheck – Businesses should “earn” an assistance package. The assumption should be that you don’t get a package. This gives us the opportunity to say “no”. Christophe Febvre – It is reasonable for an assessment of current City economic circumstances to have a bearing on the decision of, if and how much assistance to provide a company requesting a financial package. There may be times where market conditions would lead us to be aggressive (economic downturns, job-sector losses, etc.), and there are times where the City may want to back off assistance packages (market conditions don’t demand it, booming local economy makes it undesirable to promote further recruitment, etc.). So, in presenting a report card to Council for a requesting company, there could value in the staff presenting some economic conditions assessment of this type. Dan Lenskold – We need to structure the Policy to encourage more primary employers to locate here to spread the economic risk of a major employer leaving. We should not put all of our eggs in one basket as far as targeted industries. It is a financial and employment stability risk to rely on government-subsidized companies (i.e. Alternative Energy Companies). Blue Hovatter – We need to keep an eye on the federal budget for CSU and federally funded employers. Josh Birks summarized that this Policy is just a piece of the pie and does not represent our entire focus. Fort Collins does have a risk in large employers with 40% of jobs held by 7 employers city-wide and does not include the federally funded entities such as CSU. We are working to move the veil of confidentiality Economic Advisory Commission February 20, 2013 ATTACHMENT 3 4 earlier, and insure community benefits of a project outweigh the direct costs to the community. Josh also commented that the Policy would be regularly updated and reviewed on an annual or biannual basis. Meeting adjourned at 1:37 p.m. The next meeting is scheduled on March 20, 2013 from 11:00 a.m. – 1:30 p.m. CIC Room, City Hall ATTACHMENT 4 1 Business Assistance Policy and Procedures for Primary Employers Bruce Hendee Chief Sustainability Officer bhendee@fcgov.com, 970.416.2332 Josh Birks Economic Health Director jbirks@fcgov.com, 970.221.6324 SeonAh Kendall Business Retention Strategist skendall@fcgov.com, 970.416.2164 ATTACHMENT 5 2 Background • “Economic Health” rather than “Economic Development” • City Plan’s guiding principles - basic tenets of sustainability – Systems thinking – Continuous improvement – Triple bottom line (TBL) analysis 3 Primary Employers/Jobs • Definition: any business or job located within the City that derives a minimum of 50% of its income from the sale of goods or services outside the Fort Collins Growth Management Area (GMA). Primary Employer/Job 4 Policy Intent “Encourage quality primary job retention and creation through private sector investment in our community that supports a balanced, sustainable and resilient economy.” Development of a primary employer business assistance package that will maintain the flexibility of the historical approach while applying additional rigor and structure to the process. 5 Develop Assistance Council Action Company Desire Proposal Primary Jobs Average Wages Unique Workforce Competitive Environment Council Vote Initial Screening Current Process 6 Comparison Overview Fort Collins, CO (current) Fort Collins, CO (proposed) Loveland, CO Austin, TX Charlottesville, VA San Diego, CA Provision for Case-by-Case Incentives ●●●●●● Formal Incentives Policy ● ●● ● Clear Evaluation Process ● ●● ● Economic Impact Analysis ●●●●●● Agreement Approval by Council ●●●●●● ROI Measures ● ●● Compliance Review ● ●●● 7 Policy Framework 1. Applicability – Does the request meet the “primary employer” criteria? 2. Organization and management – Is there clear, defined roles and responsibilities assigned? 3. Available assistance tools – What tools will be available for this business assistance package? 4. Application requirements – Has the company provided the information required to analyze the projects? 5. Evaluation criteria – Does the project align with City Plan, the Economic Health Strategic Plan, or other City goals? 8 Policy Framework cont. 6. Business assistance inputs – Does the project meet the annual average wages, number of retained or net new jobs and health care premium assistance? 7. Economic and other analysis – Does the project pass the economic and TBL analysis? 8. Minimum company commitment – Has the company agreed to the minimum commitments required to move the project forward? 9. Compliance monitoring – Has the company and city staff agreed on compliance measures? 10.Annual reporting – Based on the compliance monitoring, city staff will provide annual compliance udates to City Council. 9 Policy Framework Work Plan Item Description Anticipated Completion Date Application The EHO will use existing applications, similar to the Community Development Block Grant funding request and the Urban Renewal Authority applications as a model for the initial application. April 2013 (initial) Ongoing evaluation and improvements Evaluation Criteria Determine the screening criteria for all requests using a set of evaluation criteria designed to provide a holistic evaluation of the proposed project. May 2013 (initial) Ongoing evaluation and improvements Input Criteria Development of input criteria that aligns with City objectives from the EHSP, City Plan, and/or other relevant strategies (such as target industry clusters). May 2013 (initial) Ongoing evaluation and improvements 10 Item Description Anticipated Completion Date Compliance Monitoring All business assistance packages require a performance-based compliance before payment is distributed. Staff will work collaboratively with other city departments and businesses to provide annual report to council. June 2013 (initial) Ongoing evaluation and improvements Economic Impact Analysis Improvements Use of a triple bottom line (TBL) approach to evaluate each project. Determination of the sound approach that evaluates revenues and costs (including, not only economic, but environmental and social costs). On-going evaluation and improvements New Tools Staff is committed to ongoing evaluation of additional tools for their applicability to primary employers and job retention and creation. On-going Policy Framework Work Plan cont. RESOLUTION 2013-025 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING A POLICY FOR DEVELOPING PRIMARY EMPLOYER BUSINESS ASSISTANCE PACKAGES WHEREAS, the City Council recently adopted an Economic Health Strategic Plan, which emphasizes City purposes and objectives related to retention and expansion of primary employers in Fort Collins; and WHEREAS, in order to effectively promote and accomplish the purposes and objectives of the Economic Health Strategic Plan, it is necessary for the City to have a clearly articulated business assistance policy that describes the tools and criteria to be taken into consideration by City staff in negotiating business assistance packages for existing and prospective employers in furtherance of the identified Plan goals; and WHEREAS, the City Council considered concepts for such a policy at its Work Session on January 22, 2013, and provided feedback and perspective as the basis for preparation of the policy; and WHEREAS, in light of the foregoing, staff has developed the Policy for Developing Primary Employer Business Assistance Packages (the “Policy”), attached hereto as Exhibit “A” and incorporated herein by this reference; and WHEREAS, the Economic Advisory Commission considered the Policy and related concepts at its December 19, 2012, meeting and its February 20, 2013, meeting, and on each occasion provided feedback to City staff, which feedback has been considered in the development of the Policy; and WHEREAS, the City Council has determined that the Policy provides the necessary conceptual framework for development of business assistance proposals for primary employers and the negotiation of such proposals in preparation for submission to the Council for approval. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Policy for Developing Primary Employer Business Assistance Packages attached hereto as Exhibit “A”, is hereby approved and adopted as City policy. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of March, A.D. 2013. Mayor ATTEST: City Clerk 1 POLICY FOR DEVELOPING PRIMARY EMPLOYER BUSINESS ASSISTANCE PACKAGES CITY OF FORT COLLINS MARCH 19, 2013 Introduction In the City of Fort Collins, the community deliberately refers to “economic health” rather than the more common term of “economic development.” The community makes this purposeful distinction because it implies that the goal of City involvement is to ensure a balanced, sustainable, and resilient economy. City Plan, the community’s comprehensive land use plan, supports this approach by emphasizing the role of sustainable practices in community development. The three main tenets of sustainability – systems thinking, continuous improvement, and triple bottom line analysis are therefore integrated into this policy. The Economic Health Strategic Plan (EHSP) adopted by City Council on June 26, 2012 (Resolution 2012‐044) reinforces this community approach. Furthermore, the EHSP recognizes the unique and important role of primary employers to any economy. The City of Fort Collins uses a variety of local assistance tools to encourage the retention, expansion, and, in some limited cases, attraction of primary employers. Historically, the City has not used a one‐ size‐fit all approach to developing business assistance packages for primary employers. Instead, the City has chosen to work collaboratively with each primary employer to build a package specific to their particular needs, which also match the City’s strategies. Policy Intent The City’s historical approach to business assistance for primary employers has served the community well in the past. Several businesses have been retained and expanded as a result of business assistance packages developed by the Economic Health Office and approved by City Council. However, the time has come to move towards a more sophisticated approach to development of future business assistance packages. Therefore, this policy is intended to outline the basics of a formal process for developing business assistance packages for primary employers that maintains the flexibility of the historical approach but applies additional rigor and structure to the process. The business assistance packages described in this document are not to the exclusion of other business assistance efforts. Therefore, it is the intent of this policy to: Encourage quality primary job retention and creation through private sector investment in our community that supports a balanced, sustainable and resilient economy. EXHIBIT A 2 Policy Objectives This policy statement will broadly outline a process for developing primary employer business assistance packages that will address the following objectives:  Provide a more equitable and more predictable process for all participants, including the business, City, and community;  Establish parameters to aid in determining the type and amount of assistance a primary employer may be eligible to receive;  Ensure community benefits of a project out weight the direct and indirect costs to the community; and  Enhance the overall process of providing business assistance in the community. Policy Framework The following sections outline the refined process for developing primary employer business assistance packages. 1. Applicability This policy will apply to all requests for direct assistance, as defined in the available assistance tools section below (e.g., tax rebates, specialized financing, etc.), from primary employers looking to remain or expand their operations in the City, as well as, any primary employer evaluating relocation to the City. For the purpose of this document, a “Primary Employer” or “Primary Job” will be defined as any business or job located within the City that derives a minimum of 50 percent of its income from the sales of goods or services outside the Fort Collins Growth Management Area (“GMA”). 2. Organization and Management The City’s Economic Health Office (EHO) will have the responsibility of managing and developing all business assistance packages subject to this policy. EHO staff will work collaboratively with other City departments throughout the development process. In addition, EHO staff will work with the applicable City departments to ensure compliance with all terms and conditions of the final business assistance package(s) as approved by City Council. 3. Available Assistance Tools The City has historically provided a variety of direct assistance to primary employers to encourage the creation and retention of primary jobs. The following provides a list and brief description of the type of assistance commonly used by the City:  Private Activity Bond Financing – A Federal program allowing private corporations to access tax exempt financing for qualified business development investments, such as property acquisition, building construction, building renovation, and equipment procurement. 3  Manufacturing Equipment Use Tax Rebate – A rebate of the applicable use tax due for the purchase of qualified manufacturing equipment by a business. The maximum allowed rebate will not exceed the City’s general fund tax rate, which at time of adoption of this policy is 2.25 percent.  Business Personal Property Tax Rebate – A rebate of the applicable personal property tax due on qualified manufacturing equipment owned by a business. The maximum allowed rebate will not exceed 50 percent of the City’s portion of the personal property tax rate. In addition, the maximum term of the rebate will not exceed 10 years. The above list does not constitute a complete list of the tools available. In the spirit of continuous improvement, the EHO staff will evaluate additional tools for their applicability to primary employers and job creation and retention. In addition, all new tools will be vetted with the Economic Advisory Commission (EAC), Council Finance Committee, and City Council before use in a business assistance package. Emphasis will be placed on tools that maximize public benefit at minimal cost to the community. 4. Application Requirements A request for direct assistance, as described above, from the City by a primary employer must include a complete application. The EHO will develop an application to be approved and modified from time to time as necessary by the City Manager. At a minimum the application will address the following:  Company Information  Project Information  Capital Investment  Jobs Categories and Wage Distribution  Public Benefit  Natural Resource Stewardship  Community Well‐Being The EHO will use existing applications, such as the Community Development Block Grant funding request and Urban Renewal Assistance applications as a model for the initial application. The intent of the application is to collect the necessary data to perform a holistic evaluation of the project and assistance request. 5. Evaluation Criteria After receipt of a complete application, the EHO office will screen all request using a set of evaluation criteria designed to provide a holistic evaluation of the proposed project. The evaluation criteria will be approved and modified from time to time by the City Manager as proposed by the EHO. The evaluation criteria will address the following key areas with example criteria: 4  Economic Impact – Overall impact (e.g., Gross Revenues, percent of City employment), employment impact (e.g., number of jobs, wages, benefits), and capital investment (e.g., equipment purchases, facility investment, infrastructure impact).  Contribution to Quality of Place – Added community value through their product/service, has a positive history and/or longevity in the community, and/or meets a community need.  Alignment with City Objectives – The project aligns with clearly stated City objectives from the EHSP, City Plan, or other relevant strategy (such as a target industry cluster) or planning document.  Natural Resource Stewardship – Impact of electricity and water consumption, hazardous waste management, ClimateWise Partner, participation in Utility’s Integrated Design Assistance Program (IDAP) or similar conservation program.  Community Well‐Being – Contribution to a diverse job base, corporate outreach/volunteerism, impact to community infrastructure, proximity to public transportation, provision of other benefits (e.g., childcare). 6. Business Assistance Inputs All business assistance packages will be performance‐based agreements. The program is designed to support and encourage new business development, business expansion and relocations that either retain or generate net new primary jobs. The EHO will use a list of scalable inputs to determine the amount and type of assistance to include in each package:  Annual average wages – It is the intent of this policy to encourage a diverse base of jobs. Therefore annual average wage will be one of several inputs in determining the amount and type of direct assistance for an eligible project. The computed annual average wage of all jobs included in a project will be considered against the Larimer County annual average wage. Projects that achieve an annual average wage higher than the Larimer County annual average will qualify for additional assistance.  Number of retain or net new jobs – The total number of jobs retained or created by a project will figure into the ultimate level of assistance received by a project from the City. Projects with larger number of retained or created jobs with a significant economic impact will receive additional assistance.  Health care premium assistance – Projects that provide greater than a 50 percent contribution by the employer to an employee’s health care insurance premium will qualify for additional assistance. These inputs will be approved and from time to time as necessary modified by the City Manager. 7. Economic and Other Analyses The EHO will use a Triple Bottom Line (TBL) approach to evaluating all applications for assistance to primary employers. Therefore, the approach will require a holistic set of analyses that address the 5 economic, environmental, and human aspects of a project. This systematic approach will avoid evaluating a project in isolation. The following analyses will be included for every application:  Economic Impact Analysis – The EHO will use an outside consultant with expertise in economic impact analysis for this aspect of the evaluation. The analysis will include both costs and revenues to the community allowing for a true fiscal impact analysis of the project. At time of adoption, EHO has contracted with TIP Strategies and Impact DataSource for these services. All economic impact analyses will evaluate a minimum of a 10 year period.  TBL Analysis – The EHO will identify and use a tool(s) that address a holistic analysis of a project including natural resource impacts and community well‐being impacts. Examples of these tools include: Fort Collins Utilities TBL Analysis Matrix (“TBLAM”) or a tool developed by Portland State University (tbltool.org) for the US Economic Development Administration. The results of these analyses will be summarized and presented to City Council for their consideration of a business assistance package for primary employers. 8. Minimum Company Commitments Any applicant for direct assistance from the City for the purpose of creating or retaining primary jobs will commit to the following:  Pledge to Annual Reporting – All recipients of direct assistance through a business assistance package will pledge to provide annually all information stipulated in the final agreement to comply with the performance requirements of that agreement. At a minimum, this reporting requirement will include: the number of jobs created or retained, the wage distribution for those jobs, and the capital investment and timing of investment.  Separate Use Tax Schedule – This requirement applies only to recipients of a Manufacturing Use Tax Rebate (“MUTR”). The applicant must submit a separate schedule at the time the use tax submission for eligible equipment that accurately designates and identifies the eligible equipment for which a rebate will be requested by the company.  Timeline for Confidentiality – The applicant will commit to a timeline for releasing claims of confidentiality regarding the proposed project. At the latest, confidentiality will be maintained up to a term of 30 days prior to consideration of a business assistance package by City Council. These 30 days will provide an opportunity for the Economic Advisory Commission and the general public to comment on the package ahead of City Council action.  Assurance of Existing Workforce Retention – This requirement applies only to retention and expansion projects. The applicant will commit to all reasonable efforts to maintain their existing workforce in the City for the duration of the business assistance package. Individual agreements will specify the amount of existing employment and the exact duration. 6 9. Compliance Monitoring The EHO will monitor each project and business assistance package annually for compliance to the terms of the final agreement approved by City Council. In addition, the EHO will develop a template checklist, to be customized to each project, to ensure compliance with initial aspects of the agreement, such as submission of use tax on a separate schedule, construction of facilities on the proposed timeline, and purchase of equipment on the proposed timeline. Each agreement will stipulate the terms of compliance that the EHO will monitor. 10. Annual Reporting The EHO will provide City Council a written annual report outlining the compliance of each approved applicant with the terms of their business assistance package. In addition, this annual report will include an assessment of the economic impact of the active projects.