(A) Eligible applicants. An applicant shall be eligible for the program only if:
(1) It is a new or existing business entity that owns the property where the business entity is housed, or possesses the property through a lease agreement, for the duration of the incentive agreement. Applicants incorporated as a non-profit are ineligible; and
(2) The business must be located within the corporate city limits of Ashland, observe all applicable zoning, business, and code regulations, and be current with all taxes, fees, and the like.
(B) Employee withholdings incentive payment. The employee occupational tax incentive payments are designed and intended to provide an incentive to eligible applicants equal to a portion of employee occupational tax withholdings payable to the city, which are generated by new employees. To be eligible for the payment, the applicant must generate a minimum of new Ashland payroll as defined below. If approved, the applicant may seek a rebate equal to up to 50% of the employees’ withholdings generated by new jobs otherwise owed to the city for a period up to ten years as determined by the city. This rebate is to be applied to the employee occupational tax withholdings payable to the city only and not for any other taxes or fees payable to the city, Boyd County, the Ashland School District or to any other taxing agency, district, or authority. It shall be the responsibility of an approved applicant to seek a rebate.
(1) Located in Ashland Main Street Zone: minimum of $250,000 in new Ashland taxable wages.
(2) Located in other business or industrial zoned areas in the city: minimum of $2,000,000 in new city taxable wages.
(C) Economic development incentive loan. The incentive loan is intended to provide an incentive to eligible applicants for the creation or retention of jobs within the City of Ashland and in circumstances where the proposed project shows a demonstrated financial gap and that the project would not occur “but for” the assistance provided through city financial assistance. The maximum amount of assistance through this loan will not exceed $50,000. The funded project must either contribute a minimum of one new job per $25,000 borrowed and/or be instrumental in the retention of jobs that would otherwise be lost. Monies provided by the program must be used for fixed asset or capital financing. Loans cannot be used for operating expenses. Applicant must provide a minimum of 20% equity of total project costs. The City of Ashland shall not be a primary lender in the judgment of the Committee. In order to be eligible for a loan under the program, the project must be substantially funded by the applicant and, where necessary, commercial loan participation. The amount loaned is a four-year, 48 month forgivable loan and principal balance shall be reduced by 25% each year from the date of execution.
(Ord. 2-2014, passed 12-12-13; Am. Ord. 137, 2022, passed 7-29-22)