The following guidelines are hereby adopted by the City for the purpose of tax abatement/ tax increment:
(a) Public Act 198.
(1) All projects to be granted tax abatement will be treated as a new facility or replacement facility.
(2) Only projects or parts of projects with a construction period of two years or less will be considered for abatement. If a project has a construction period longer than two years, the improvements made after the two-year period will be considered under a separate abatement request at a subsequent date.
(3) The real and personal property improvements must represent an investment equal to at least twenty percent of the current true cash value of the property as determined by the City Assessor. An investment in excess of one hundred thousand dollars ($100,000) will be exempt from this guideline.
(4) Abatement of personal property will apply only to manufacturing equipment. Non- manufacturing systems will not be considered for abatement.
(5) The acquisition of personal property, where no addition to land or buildings takes place either through lease or purchase, will be considered for a maximum of six years of abatement.
(6) Areas where abatements will be considered shall be pre-established. Annually, in October, the City staff shall report to the City Commission on recommendations regarding the established areas.
(7) The City Assessor shall review all applications for tax abatement to determine whether or not the proposed project qualifies under City guidelines and State statutes. Any questions of qualification arising in the review process shall be reviewed by the Tax Abatement Review Committee before submission to the City Commission. The Committee shall consist of four commissioners appointed by the Mayor and approved by the Commission.
(8) Annually, in October, the City staff will report to the Commission regarding IFT certificate holder's compliance with abatement guidelines and law. The staff may request information of the certificate holder when necessary to prepare such report.
(9) All fees which shall be charged shall be prescribed in the schedule provided for in Section 802.24.
(Res. 150. Passed 6-10-86; Res. 321. Passed 9-21-04; Ord. 11-2015. Passed 1-5-16.)
(b) Public Act 255.
(1) All projects to be granted tax abatement will be treated as a new facility or replacement facility.
(2) Only projects or parts of projects with a construction period of two years or less will be considered for abatement. If a project has a construction period longer than two years, the improvements made after the two-year period will be considered under a separate abatement request at a subsequent date.
(3) Only projects which result in at least an increase of twenty thousand dollars ($20,000) real property S.E.V. will be considered.
(4) Areas where abatements will be considered shall be pre-established. Annually, in October, the City staff shall report to the City Commission on recommendations regarding the established areas.
(5) The City Assessor shall review all applications for tax abatement to determine whether or not the proposed project qualifies under City guidelines and State statutes. Any questions of qualification arising in the review process shall be reviewed by the Tax Abatement Review Committee before submission to the City Commission. The Committee shall consist of four commissioners appointed by the Mayor and approved by the Commission.
(6) Annually, in October, the City staff will report to the Commission regarding CFT certificate holders' compliance with abatement guidelines and law. The staff may request information of the certificate holder when necessary to prepare such report.
(7) All fees which shall be charged shall be prescribed in the schedule provided for in Section 802.24.
(Res. 522. Passed 11-19-85; Ord. 11-2015. Passed 1-5-16.)
(c) Tax Increment Finance Authorities.
(1) The three existing tax increment finance authorities will not be expanded and will remain as districts only until their current (as of January 1, 1984) plans (obligations) are discharged.
(2) Should there be a merger of the districts, the board will be required to maintain a complete separation of funds and budgets per the districts as they existed on July 1, 1983.
(d) General.
(1) These guidelines are binding upon the City Commission and may be waived only on an individual project basis with a three-fifths vote of the total authorized membership of the City Commission. The same three-fifths vote will be required to amend the guidelines.
(2) These procedures shall be reviewed by a committee of the City Commission at least every two years.
(3) Any business or industry that is granted an abatement shall be required to file an annual report with the City Commission on August 1.
(Res. 327. Passed 8-30-83.)