For purposes of this chapter the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BENEFITS. The value to the city of providing the incentives, which generally includes:
(1) Increased property values within the incentive area and the city as a whole;
(2) Increased revenue from property taxes, business license fees, and permit fees;
(3) Increased tourism and commercial activity within the city as a whole; and
(4) The improvement of the character of the city by rehabilitating existing buildings and promoting the construction of infill development.
DEVELOPMENT. The activity of improving a real property to the extent of adding value to the tax base through real property improvements, and the creation of employment opportunities.
GOALS. The objectives of the city in offering the incentives, which are as follows:
(1) To promote the redevelopment of existing buildings and infill development within the incentive area;
(2) To support the establishment of the categories of new businesses that the Council determines will significantly increase the overall commercial activity within the city, provide the city's residents with restaurant and retail options within the city rather than having to travel elsewhere; encourage tourists and those who reside in surrounding communities to make use of businesses within the city; and increase property values within the city as a whole; and
(3) To develop the incentive areas into a "downtown" that provides the city with a "sense of place."
INCENTIVE. A grant of any inducement having monetary value by the city that is offered to a person, firm, or corporation to pursue a development that encourages private investment and/or the creation/retention of jobs. The incentive may also include grants from other entities that the city may be able to obtain.
INCENTIVE AREAS. The particular areas in which the Council has determined that the revitalization and redevelopment thereof is essential to preserving and improving the economy, society and culture of the city and enhancing the quality of life of the citizens thereof. The INCENTIVE AREAS shall include those properties indicated on the map attached to Ordinance 2018-10 as Exhibit A and incorporated by reference as if fully set forth herein, to include the Downtown Tax Increment Finance District, and other areas that may be defined by City Council at a later date.
INCENTIVE RECIPIENT. The private parties receiving the incentives from the city.
JOB.
(1) Each new:
(a) Full-time position; or
(b) Each full-time equivalent position that is created as a direct result of the ongoing operation of a development.
(2) For the purposes of calculating the number of jobs created by a development, only those employed at businesses directly associated with the development at positions permanently located within the incentive area shall be considered.
(Ord. 2018-10, passed 7-9-18)
(A) Authorization to grant incentives. The Council, at its discretion and on a case-by-case basis, but subject to the general eligibility criteria provided for in § 122.06 herein, may enter into an incentive agreement (as defined in § 122.03) with a person, firm, or corporation providing for incentives in order to encourage and support the development of real property within the incentive area.
(B) Incentive agreements.
(1) Incentives shall only be provided to an incentive recipient after an incentive agreement has been entered into between the city and such person, firm or corporation, which agreement shall set forth:
(a) The particulars of the development;
(b) The incentives to be provided; and
(c) Sufficient assurances that the benefits will accrue to the city and the goals will be met by the development (an "incentive agreement").
(2) Pending the approval by the Council of any incentive agreement, and subject to the provisions of in § 122.07 herein, the City Administrator of the city is authorized to discuss the provisions of this Economic Development Incentives Program, aid in the completion of any proposal (as defined herein) and, subject to the final approval by the Council, negotiate with the potential incentive recipient on behalf of the city. Each incentive agreement shall be approved by Council by ordinance. Council is authorized to provide incentives in any amounts and for any period of time within the thresholds provided for herein or within the time periods and thresholds provided for in any applicable statutory authorization.
(Ord. 2018-10, passed 7-9-18)
(A) Multiple incentives. The Council may provide to an incentive recipient any combination of incentives provided for herein; provided, however, that the total amount of incentives given to a development must be in keeping with the goals, and the value of the benefits accruing to the city (and its citizens) must be greater than the financial value of the incentives to an incentive recipient.
(B) Incentives of the city. All direct incentives of the city shall be granted in the form of reimbursements and refunds of fees and taxes that have been duly paid to the city. No up-front abatements of fees or taxes shall be permitted. Where incentives continue for a period of more than one year, such incentives may be graduated to increase or decrease year-to-year as the Council sees fit, but subject to monitoring by the city to ensure compliance with the terms of any incentive agreement. The Council may, at its discretion and on a case-by-case basis, enter into an incentive agreement to reimburse or give a refund to any person, firm or corporation the following fees and taxes up to the amounts and percentages provided for herein:
(1) Up to 100% of the applicable development impact fees collected by the city;
(2) Up to 50% of the building permit fees collected by the city;
(3) Up to 50% of the business license fees collected by the city for as many as five years;
(4) Up to 50% of the local hospitality taxes collected by the city for as many as five years, but funds received through such incentives are to be spent only for purposes that are related to tourism, pursuant to S.C. Code § 6-1-730, and which have been approved by Council and included in the incentive agreement;
(5) Such other incentives that the Council, at its discretion on a case-by-case basis, determines are appropriate given the amount or type of investment made by the incentive recipient in the investment area.
(C) State incentive programs. The state programs that may be considered by Council to be included within any package of incentives or as a stand-alone set of incentives for in-city projects located outside of the development area, include the following:
(1) Property tax credits authorized by the provisions of the South Carolina Abandoned Buildings Revitalization Act, codified at S.C. Code §§ 12-67-100 et seq. (collectively, the "Abandoned Building Act"). Incentive recipients requesting consideration of the Abandoned Building Act by Council shall submit an Abandoned Building Act Application in a form to be provided by the city.
(2) The South Carolina real property tax credit for the installation of a fire sprinkler system, codified at S.C. Code § 12-6-3622.
(Ord. 2018-10, passed 7-9-18)
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