a. It is not the purpose of TIF to shift existing commercial, professional or other businesses that already exist in the City, but outside the TIF area, into the TIF area without an adjustment to Old Revenue (hereinafter also called “base revenues”). Therefore, any existing City business outside the TIF area that moves into the TIF area shall file with the City Finance Department and the Office of the City Manager information related to the number of employees at its existing location or locations and the amount of occupational withholding fees paid by those employees for the preceding calendar year prior to its relocation into the TIF area and the amount of its net profit fees paid to the City for its previous fiscal year. The base revenue for the TIF area shall then be adjusted to include the occupational withholding fees and net profit fees reported by the existing City business and these revenues shall be included as Old Revenue to determine an adjusted base revenue. Such businesses shall report the existing revenues to the City Finance Department on forms provided by the Department.
b. Additional policies are hereby adopted related to the creation of Western Kentucky University jobs in the TIF area. Prior to the consideration of any Western jobs in the TIF area, the Warren County Downtown Economic Development Authority, Inc. shall file with the City Finance Department copies of the appropriate documents that are required to be filed with the State pursuant to the State grant agreement, including all documents that are required to be filed on an annual basis.
c. No occupational withholding fees generated from Western Kentucky University jobs shall be included as new TIF revenues unless there is an actual increase in Western jobs in the City from the preceding calendar year. In addition, only those jobs in the TIF area that exceed the actual increase in Western jobs in the City shall be considered for TIF revenue calculations.
As an example for illustration purposes only, Western employment increases from 5,000 jobs to 5,100 jobs from the years 2011 to 2012. The TIF documents indicate that 200 new Western jobs were reported in the TIF area for 2012. Only 100 of the new Western jobs will be considered toward TIF revenue calculation.
d. If the growth of Western jobs in the TIF area exceeds the actual increase in total Western jobs from the preceding calendar year, the City Finance Department and the Office of the City Manager shall then examine the Western jobs that were created in the TIF area and that are being considered for TIF revenue calculation. If any of the claimed Western jobs were existing jobs that relocated into the TIF area, the base revenue for the TIF area shall be adjusted to include the occupational withholding fees from the preceding calendar year paid by the existing Western jobs that relocated into the TIF area and these revenues shall be included as Old Revenue.
As an example for illustration purposes only and using the example above, the City will examine the 100 new Western jobs in the TIF area. It is determined that an existing Western department relocated into the TIF area. Ninety-five of these jobs existed prior to the relocation of the department. The occupational withholding fees paid on those 95 jobs for the previous calendar year shall be included as Old Revenue to determine an adjusted base revenue. The five new positions shall be classified as new jobs and 80% of the occupational withholding fees generated from those five new jobs will be paid to the Authority.
(Ord. BG2009-30, 10/20/2009; Ord. BG2016-49, 1/3/2017; Ord. BG2019-36, 8/20/2019; Ord. BG2023-28, 10/17/2023)
___________
* Editor’s Note: Subchapter 11-10 (Development Area Inter-Modal Commerce and Distribution Center and Industrial Park (Kentucky Transpark) was repealed in its entirety by Ord. BG2023-28.