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HomeMy WebLinkAbout045 - 05/02/1995 - AMENDING CITY CODE CONCERNING A CREDIT AGAINST THE PERSONAL PROPERTY TAX INCREMENT DUE FROM LARGE BA ORDINANCE NO. 45, 1995 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE 11 OF CHAPTER 25 OF THE CODE CONCERNING A CREDIT AGAINST THE PERSONAL PROPERTY TAX INCREMENT DUE FROM LARGE BASE INDUSTRIES IN ENTERPRISE ZONES / WHEREAS, the City of Fort Collins has an adopted economic development policy that indicates that the retention oC base iuklustrial limos is critical to the overall prosperity of the community; and /' WHEREAS, the City Council has determined that economic development serves an important public purpose by promoting primary and secondary jobs within,the City, and generally enhancing the local economy; and WHEREAS, base industrial firms provide important ployment and professional opportunities for citizens of Fort Collins; and 7 WHEREAS,these firms also contribute to,and are important element of,the cotmnunity's human resource and social fabric; and WHEREAS, it is the policy of the Cou/ent ity of Fort Collins to periodically review and evaluate the City's financial and economi policies in terms of their relevance to current community values, and the locationAecisions of large manufacturing business; and WHEREAS, during the cours of this review, City Council believes it is important to consider-additional information and to relative-to the-sales; use and real and personal property tax structures of the City as they app to large base industries; and WHEREAS, Title , Article 30, Section 107.5(1) of the Colorado Revised Statutes authorizes any municipa 'ty to negotiate with qualifying taxpayers within an enterprise zone incentive payments or edits, so long as such payments or credits do not exceed certain defined limits; and WHE - S, it is appropriate for the City Council to consider on a case-by-case basis, approving a c dit of up to ninety percent (90%) of the incremental increase in taxes levied on the personal p perty of large base industries in an enterprise zone as an economic incentive to the location r expansion of such industries in Fort Collins; and WHEREAS, it is reasonable for the credit to be extended for a period of no more than five (5 years because the depreciation on taxable personal property averages approximately twenty percent (20%) per year. NOW,THEREFORE, BE IT ORDAINED-BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -�o PGss Section 1. That Article Il of Chapter 25,of the Code of the City of Fort Collins is hereby amended by the addition of Division IV to read as follows: DIVISION IV. CREDIT AGAINST PERSONAL PROPERTY TAX DUE FROM LARGE BASE INDUSTRY IN AN ENTERPRISE ZONE. Sec. 25-53 City Manager Authority. The.City Manager may, in his or her discretion, discuss and negotiate with any Large Base Industry that is located,or that intends to locate, within an enterprise zone established pursuant to Article 30 of Title 39, C.R.S., a credit to be applied against the amount of City taxes le.=ied upon the taxable personal property of such Large Base Industry. In no instance shall such negotiation result in a credit that is greater than ninety percent (90%a) of the difference between the current personal property tax liability and the tax liability for the same personal property for the year preceding the year in which the enterprise zone was established. No such credit shall be,approved for more than five (5)years.; Sec.25-54 Final Determination by Council. The final determination as to whether a personal property tax credit will be granted to a particular Large Base Industry shall be made by the City Council, according:to the best interest of the city, and shall be reflected in a written agreement and shall not exceed the limits set forth in Section 25-53 above. Factors to be considered by the City Council may include, without limitation; (1) Whether the proposed,credit would be generally consistent with the,eitys economic development goals and objectives; (2) The impact of the proposed credit upon the financial welfare of the city and the provision of municipal services; (3) The anticipated:financial return to the city from the proposed operations of the particular Large Base Industry; (4) The impact of the proposed credit upon the overall health;;safety and welfare of the citizens of the city; (5) Whether the Large Base hidustry is committed to satisfactorily mitigating any adverse environmental impacts of its operation,and is further committed to the training and human resource development of its work force; and (6) The recommendation of the City; Manager, based upon any additional''criteria developed by the City Manager.; Sec. 25-55 Definition of Large Base Industry, For the purposes of this Division,Large Base Industry shall mean a firm that: (1) produces or will produce,manufactured goods, at least eighty (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). The firm must also qualify for a credit pursuant to Section 39-30- 105 C.R.S., as amended.. See25-56 No entitlement established. The provisions of this Article shall not,be construed as,establishing any right or entitlement to a waiver of any personal property tax on the part of any applicant. The approval of any waiver 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 2nd day of May, A.D. 1995. Mayor ATTEST: City Clerk