(A) Definitions. For purposes of this section the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CITY. The City of Cadiz, Kentucky.
ECONOMIC DEVELOPMENT PROJECT or PROJECT. A new or expanded business activity that generates a minimum of $75,000 in city taxable wages each year by a qualifying business.
QUALIFYING BUSINESS. Any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other legal entity in the city whose employees are
engaged in manufacturing, service, tourism, technology, administrative, technical, retail, or professional occupations and specifically excludes sexually oriented/adult entertainment businesses.
(B) Types of incentives.
(1) The following job creation based economic development incentives may be offered by the city to a qualifying business undertaking an economic development project:
(a) 1-50 new employees: 2/3 rebate of the payroll tax due from the new employees for three years; and 100% rebate of the business license tax due for two years.
(b) 51-100 new employees: 2/3 rebate of the payroll tax due from the new employees for five years; and 100% rebate of the business license tax due for four years.
(c) 101 or more new employees: 3/4 rebate of the payroll tax due from the new employees for eight years; and 100% rebate of the business license tax due for eight years.
(d) Additional incentives on a case-by-case basis as approved by the City Council.
(2) The following economic development incentives may be offered by the city to new or existing businesses:
(a) $10,000 of matching grants up to $2,500 per recipient per calendar year for approved improvements and/or replacement of signage, remodeling or refurbishing.
(b) Waiver of utility connection fees.
(c) Waiver of building permit fees.
(d) Additional incentives on a case-by-case basis as approved by the City Council.
(C) Application and review procedure.
(1) A qualifying business seeking one or more economic development incentives from the city may submit to the City Clerk the following:
(a) Description of the project;
(b) Name, address, and telephone number of authorized representative;
(c) The number of new jobs to be created;
(d) The wages, salaries, bonuses, and commissions expected to be paid and the amount of city employee withholdings expected to be generated by the project;
(e) Description of entity's management capabilities;
(f) Marketing strategies; and
(g) Such other financial and non-financial information about the entity deemed necessary by the city.
(2) Each submission shall be executed under oath by an authorized representative of the qualifying business.
(3) The City Clerk shall transmit each submission meeting the requirements set forth above to the city's Finance Committee for its consideration.
(4) A qualifying business may make a presentation to the City Council in further support of its application.
(5) After the city's Finance Committee's review of the submission, it shall either reject the submission or recommend its approval by the City Council. The City Council shall determine the specific economic development incentive(s) to be provided.
(D) Written agreement required. Every qualifying business receiving any economic development incentive from the city shall be required to execute a written economic development incentive agreement with the city. The Mayor shall be authorized to execute the written economic development incentive agreement on behalf of the city.
(E) Reporting requirements. Every qualifying business shall certify in writing one year after its project is completed and annually each year thereafter during the term of its written economic development incentive agreement with the city that the obligations set forth in its written economic development incentive agreement with the city have been and continue to be satisfied. Failure to provide this written certification by that date is an event of default and invokes the city's right to a full refund, including damages, attorney's fees, and collection costs.
(F) Events of default. If the qualifying business makes any material misrepresentation on its economic development incentive application or supporting documents, fails to meet the obligations set out in its written economic development incentive agreement with the city, becomes insolvent, fails to report or to remit employee withholdings from new or existing jobs, files for bankruptcy or fails to pay any tax, license fee, penalty or other charge or obligation to the city, then it shall be in default.
(G) Remedies. If the qualifying business becomes in default, then the qualifying business shall refund to the city an amount equal to the total economic development incentives rebated or paid, and the city shall have no further obligation to provide any economic development incentives. The city may use any efforts to collect such sums owed, and the qualifying business agrees to pay any and all interest and expenses, including attorney's fees and costs incurred by city.
(Ord. 17-13, passed 12-5-17)