HomeMy WebLinkAbout049 - 05/02/1995 - AMENDING CITY CODE CONCERNING THE RETURN, FOR VERIFIED COMMUNITY BENEFITS, OF USE TAX PAID BY LARGE ORDINANCE NO. 49, 1995
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE III OF CHAPTER 25 OF THE CITY CODE
CONCERNING THE RETURN,FOR VERIFIED COMMUNITY BENEFITS,
OF USE TAX PAID BY LARGE BASE INDUSTRY
WHEREAS, the City of Fort Collins has an adopted economic develops Cnt policy that
indicates that the retention of base industrial firms is critical to the overal rosperity of the
community; and
WHEREAS, the City Council has determined that economi development serves an
important public purpose by promoting primary and secondary jobs Rhin the City, and generally
enhancing the local economy; and
WHEREAS, base industrial firms provide impor nt employment and professional
opportunities for citizens of Fort Collins; and
WHEREAS,these firms also contribute to, an re an important element of the community's
human resource and social fabric; and
/ean
HEREAS, it is the policy of the Cou it of the City of Fort Collins to periodically review
anate the City's financial and econo is development policies in terms of their relevance to
cuommunity values, and the locat' n decisions of large manufacturing business; and
HEREAS, during the co se of this review, City Council believes it is important to
c additional information a data relative to the sales, use and real and personal property tax
sts of the City as they ply to large base industries; and
HEREAS, and Chapter 25, Section 74 (a) of the Code of the City of Fort Collins, the
Coses a use to Pon the use of tangible, personal property; and
HERE the City's collection of use tax, and the determination of exemptions therefrom,
aers of rely local concern; andEREAS, it is appropriate for the City Council to consider, on a case-by-case basis,
pall or a potion of the use tax payments of a Large Base Industry in escrow and returning all
oion of said escrow amount to the Large Base Industry in exchange for verified community
b provided by the Large Base Industry.
NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Chapter 25, Article III, Division 3 of the Code of the City of Fort Collins is hereby
amended by the addition of subsection 25-129 to read as follows:
N6 Actloo
Sec.25429. Escrow of Use Tax-Payments Cor Large$ase,Industryya
(a) The City Manager may,in his or her discretion, discuss and negotiate with
a Large Base Industry for the escrow of all or a portion of the use tax to be
paid by a Large Base Industry. Any amount paid into an escrow`'account
established under this section by a Large Base Industry, and any interest on
said amount, shall not be revenue to the City and shall not be collected or
expended by the City for any purpose for so long as said amount remains in
the escrow account. Any escrow agreement proposed by the City Manager
under this subsection (the"Escrow Agreement'),shall be subject to approval
by the City Council. The Escrow Agreement may provide for the'feturtt of
all or any portion of the escrowed amount to the Large'Base Industry if tha
Large Base Industry provides certain specified benefits I o,ttie cormulti ify.as
approved;by the City Council. It shall also provide for",the transfer to the' 'City
of any portion of the escrow amount that is not returned, to the Large Base
Industry under the terms and conditions of the Escrow Agreement.;;
(b) The final determination as to whether use tax:to he paid,by a Large Base
Industry will be paid into escrow, and,&terms;and 60o ditions.that trust be
satisfied in order for all or a'iportion of such escrow, amounts to be'teturned
to the Large Base Industry,shall be made by the City Council, according to
the best interests of the City.Factors to be considered by the City Council in
making ,the determinations provided for herein may,1riclude,; without
limitation,
(1) Whether:.the:propose d" Esc row;iAgrcipl Pent "wiuld3„b0' genLrally
consistent with the city's economiedevelopment goals an'd objectives;
(2) The impact of the proposed Escrow Agreement I
up6n Ithe financial
welfare of the city and the provision of municipal services;
(�) Tdte "anticipated- financial" return:to the cit' frnmi',thu prornsci
operations of the particular Large Base Industry;
(4) The impact of the proposed Escrow Agreement upon the overall
health, safety and welfare of the citizens of the city;and
(5) Whether the Large.Base Industry is'`cortimitted,to" satisfacttiYily
mitigating any adverse environmental impacts of its operation and is
further committed to the training and human resource development
of its work force
(6) The recommendation of the City Manager,based,upon any additional Pfi.gzia
developed by the City Manager;`
(c) For the;purposes of this Division, Large Base industry shalI mean a firm
that: (1) produces,or will produce, manufactured goods, tit least eight (80)
percent of which are, or will be,produced for export to areas outside of the
city; (2) employs, or will employ, no fewer than one hundred persons for at
least thirty-five(35)hours of year-round employment per week;and(3)owns
or leases, or will own or lease, real property or equipment within the city
limits that is used in the operation of the firm's business and that has, or will
have, as of the date of the commencement of the firm's operation, a fair
market value of no less than one hundred million dollars ($100,000,000)„
(d) The provisions of this Article shall not be construed as establishing any
right or entitlement to an Escrow Agreement on the port of any applicant:
The approval of any such Agreement shall be entirely discretionary with the
City Council.
Introduced, considered favorably on first reading, and ordered published this 18th day of
April, A.D. 1995, and to be presented for final passage on the 2nd day of May, A.D. 1995.
Mayor
ATTEST:
City Clerk
passed and adopted on final reading this lid dayof May, A-D_ 1995.
Mayor
ATTEST:
City Clerk