HomeMy WebLinkAbout091 - 06/20/1989 - AMENDING THE CITY CODE RELATING TO THE INDUSTRIAL DEVELOPMENT INCENTIVE PROGRAM ORDINANCE NO. 91, 1989
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 24 OF THE CODE OF
THE CITY OF FORT COLLINS RELATING TO
THE INDUSTRIAL DEVELOPMENT INCENTIVE PROGRAM
WHEREAS, the City of Fort Collins has a vital interest in the economic
health of the community; and
WHEREAS, economic development programs have increasingly become the
responsibility of local governments and the City has an economic
development plan to guide economic development; and
WHEREAS, a positive community attitude towards business, a local
government that is itself committed to fiscal soundness and providing
quality services, and a sound infrastructure are the best incentives that
the City has maintained and will continue to provide for economic
development and quality of life; and
WHEREAS, the City recognizes the importance of a strong local business
community and that eighty percent (80%) of job creation will come from
local expansion; and
WHEREAS, the City supports an economic development strategy and the
incentive program established below is but one part of the entire strategic
plan; and
WHEREAS, the goals of this Industrial Development Incentive Program
are to demonstrate that the City supports a healthy business climate, to
encourage eligible firms to locate and expand in Fort Collins, and to shape
the quality of economic growth.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1 . That Section 24-111 of the Code of the City is hereby
amended by the addition of the following definitions in alphabetical order:
Sec. 24-111. Definitions.
Base industry shall mean those firms that produce goods or
services, at least eighty (80) percent of which are produced for
export to areas outside of the city, and thereby import income
into the city. Such goods and services shall not include retail
sales activities but may include , without limitation ,
manufactured goods, consulting services, research activities, and
the support services associated with a regional or national
headquarters of a services-producing organization.
Base industry supplier shall mean a firm that devotes at least
fifty (50) percent of its operations to providing a base industry
with materials or supplies used in the base industry ' s
manufacture or production of goods or services.
Exemption shall mean the granting of a partial or complete waiver
of the street oversizing fee not to exceed fifty thousand dollars
(E50,000) .
Firm shall mean person, firm, corporation, partnership, joint
venture or any other legally permissible business organization,
whether or not presently situated within the boundaries of the
city.
Full-time employment shall mean those jobs which provide at least
thirty-five (35) hours of year-round employment per week.
Total compensation shall mean wages and cash equivalent benefits,
including medical , dental , life, vision, day care and retirement.
Section 2. That Section 24-120 of the Code of the City is hereby
amended to read as follows:
Sec. 24-120. Fee, waiver, appeal .
(a) Exceptional hardship. The Director of Development
Services (Director) , upon application of any interested party,
may waive or otherwise adjust any of the fees set forth above in
order to prevent manifest injustice. No such waiver shall be
granted unless, by reason of extraordinary and exceptional
situations or conditions of the property which is the subject of
the fee, the strict application of this Division would result in
peculiar and exceptional hardship upon the owner of such
property; provided, however, that such relief may be granted
without substantially impairing the intent and purposes of this
Division. No such hardship shall be founded upon ability or
inability to pay the fee.
(b) Exemption of fee for contribution to economic
development.
(1) Determination of eligibility. Any firm seeking an
exemption under this Section shall apply to the Director
on forms provided by the city. The Director shall ,
within fifteen (15) days after receipt of any such
application, determine the eligibility of the firm for
such exemption. No application for an exemption shall be
considered by the Director after a building permit has
been issued for the development which requires payment of
the fee. The Director's determination of eligibility
shall be valid for a period of one (1) year from the date
of the determination; provided, however, that the city
shall be entitled at any time to summarily withdraw a
determination of eligibility if such determination is
found to have been based upon incorrect or fraudulent
information or if changes in the proposed development
would, if known at the time of application, have
materially affected the Director's determination. The
Director may, in his sole discretion, extend the
determination of eligibility beyond said one (1) year
period upon a showing of good and sufficient cause.
(2) Criteria for determination. To be eligible for an
exemption from the street oversizing fee, the following
criteria must be fulfilled:
A. The firm muc` be either a base industry or a base
industry sup�iier.
B. Employment opportunities offered by the firm must
meet or exceed the following standards:
1 . Total compensation for all full -time employees
must start at not less than minimum wage X 1 .5.
2. Total compensation for no more than twenty-five
(25) percent of the full -time employees can be
less than minimum wage X 1 .87.
3. Total compensation for at least twenty (20)
percent of the full -time employees must be more
than minimum wage X 2.24.
(3) Establishment of exemption. The Director shall establish
the amount of exemption according to the criteria
described in subparagraph (4) below. If any firm
receiving an exemption under the provisions of this
Section has not been issued a building permit within one
(1) year of the date of the determination of eligibility
(and the determination has not been extended pursuant to
paragraph 1 of this Section) , the firm shall no longer be
entitled to an exemption. If a firm obtains more than
one (1) building permit in any twenty-four (24) month
period, the maximum exemption, or aggregation of
exemptions, for such firm during said twenty-four (24)
month period shall not exceed fifty thousand dollars
($50,000) .
(4) Criteria for establishment. The amount of exemption an
eligible firm shall be entitled to receive shall be based
on the following:
A. New firm. The amount of exemption will equal the
projected present value of sales and property taxes
the city will receive from the firm during the six
(6) years immediately subsequent to the date of
application for the building permit, plus the amount
of the use and construction tax calculated to be
received by the city at the time the building permit
is issued, up to a maximum of fifty thousand dollars
($50,000) .
The aforesaid taxes shall be calculated as follows:
1 . Use tax = (total value of construction) X
(percentage of construction apportioned by the
director of finance for use tax calculation) X
(current city sales/use tax rate) .
2. Construction tax - building permit fee.
3. Sales tax = (total wages of the firm) X (.7) X
(the current city sales tax rate) . The sales tax
shall be increased by three and one-half (3.5)
percent for each twelve (12) month period
following the anniversary of the first twelve
(12) months from the date of application for the
building permit.
4. Property tax = (total value of land and
development in relocation or expansion project) X
(commercial tax rate) X (current city mill levy
rate) . The property tax shall be increased by
five (5) percent for each twelve (12) month
period following the anniversary of the first
twelve (12) months from the date of application
for the building permit.
B. Expansion of existing firm. The amount of exemption
will equal the amount as calculated in Subparagraph a
above multiplied by the applicable factor below, up
to a maximum amount of fifty thousand dollars
($50,000) .
Years Within Fort
Collins City Limits Factor
0 < 3 1 .25
3 < 5 1 .50
5 < 10 1.75
10 < 15 2.00
15 < 20 2.25
> 20 2.50
(5) Appropriation contingency. The city shall not grant an
exemption unless funds equal to the amount of the
exemption shall first have been budgeted and appropriated
by the City Council and approved for subsequent transfer
from the General Fund or other appropriate fund of the
city into the Street Oversizing Fund to offset the amount
of the exemption.
(c) Appeals. Any decision of the Director pursuant to this
Section may be appealed to the City Manager. Any decision of the
t
City Manager pursuant to this Section may be appealed to the City
Council under the same standards and procedures as established
for appeals from boards and commissions under Chapter 2, Division
3 of the Code.
Introduced, considered favorably on first reading, and ordered
published this 16th day of May, A.D. 1989, aadto be presented for final
passage on the 20th day of June, A.D. 1989.
Mayor
ATTEST•
City Clerk
Passed and adopted on final reading this,_20th day of June, A.D. 1989.
Mayor
TTEST:
City Clerk