(A) When a determination has been made to offer a tax abatement, the guidelines in division (B) below will be used to determine the length and level of that abatement. These guidelines reflect maximum percentages and years, and apply to both new facilities and expansion or modernization of existing facilities. The City Council will determine eligibility as well as the percentage and length of abatement on a case-by-case basis.
(B) Length and level of abatement shall be determined by the chart below. Any investment over $100,000 shall qualify. The abatement shall be eligible for a period of up to ten years as decided by the City Council. Following the first year of the abatement, in each subsequent year the level of abatement shall be reduced by 10% per year. The table below may be modified by a majority approval of a resolution by the City Council.
Years of Abatement | First Year Maximum Level of Abatement | Minimum Required Capital Investment |
Years of Abatement | First Year Maximum Level of Abatement | Minimum Required Capital Investment |
10 | 100% | $ above $100,000 |
9 | 90% | $ above $100,000 |
8 | 80% | $ above $100,000 |
7 | 70% | $ above $100,000 |
6 | 60% | $ above $100,000 |
5 | 50% | $ above $100,000 |
4 | 40% | $ above $100,000 |
3 | 30% | $ above $100,000 |
2 | 20% | $ above $100,000 |
1 | 10% | $ above $100,000 |
(C) The City Council may consider a 100% abatement for a period during which construction of new facilities is in progress. This period, if applicable, will begin on the date of the abatement agreement and end when those facilities are first utilized for their intended purpose or two years from the date of the abatement agreement, whichever is sooner. The schedule in division (B) above would begin the next January 1 immediately following such a period, if any. The provisions of this division applies only to new or additional facilities to be constructed with a capital cost greater than $5,000,000.
(Ord. 641, passed 11-20-2006; Am. Ord. 715, passed 4-18-2011)