A taxpayer or potential taxpayer who proposes a project to create new jobs in the City of Ashtabula may apply to the City Manager to enter into an agreement for a grant under this section. The application shall be accompanied by a non-refundable application fee of $100.00. The City Manager shall prescribe the form of the application. After receipt of an application, the City Manager may enter into an agreement with the taxpayer for a grant under this section if the City Manager determines that all of the following exist:
(a) The taxpayer's project will increase payroll and income tax revenue;
(b) The taxpayer's project is economically sound and will benefit the people of the City and State by increasing opportunities for employment and strengthening the economy;
(c) Receiving the grant is a major factor in the taxpayer's decision to go forward with the project.
(d) An agreement under this section, to be negotiated between the taxpayer and the City Manager, which shall include all of the following:
(1) A detailed description of the project that is the subject of the agreement;
(2) The agreed term of the grant, which shall be based upon the taxpayer's estimate of the average annual payroll attributable to new jobs created during the first three (3) years of the project, which shall be within the following ranges:
Annual payroll under $100,000 - 3 years
Annual payroll at least $100,000 but less than $500,000- up to 5 years Annual payroll at least $500,000 but less than $1,000,000- up to 7 years
Annual payroll at least $1 million but less than $3 million - up to 9 years Annual payroll of $3 million or more - up to 12 years
(3) A requirement that the taxpayer shall maintain operations at the project location for at least the greater of seven years or the term of the grant plus three years, subject to;
(4) The percentage of income tax revenue, as agreed upon by the taxpayer and the City, that will be allowed as the amount of the grant for each taxable year or for each calendar year that includes a tax period, which shall be within the following ranges:
1 -4 new jobs - 10%
5 -19 new jobs - up to 15%
20-29 new jobs - up to 20%
30-49 new jobs - up to 33%
50-99 new jobs - up to 45%
100 or more new jobs - up to 60%
(5) A requirement that each new job qualifying for inclusion in the grant involve an average work week of not less than 32 hours and an hourly wage of not less than the prevailing State minimum wage, or an amount equivalent thereto in the case of salaried workers.
(6) A requirement that the taxpayer annually shall report tax withholding, investment, and other information the Manager reasonably requires to ensure compliance with this Chapter;
(7) An acknowledgement that the taxpayer may carry forward any unused portion of the available grant for a period of up to three (3) years, but that the amount of the grant applied in any given year will not exceed 50% of excess income in that year;
(8) A requirement that the taxpayer pay an annual monitoring fee of 1.00% of the amount of the grant for the prior year, or $50.00, whichever is greater. (Ord. 2019-33. Passed 3-18-19.)