(A) Manufacturing/Industrial based projects should be considered for the maximum abatement schedule allowed under Indiana State Code - ten years on real property and on personal property (equipment). An abatement should not exceed the useful life of personal property. This preference for manufacturing/ industrial based projects needs to be shown in order to induce and encourage industrial enhancements of the community. High tech, or technologically based industries, should be included in this classification.
(B) Commercial abatements should be considered for no more six years, unless an unusually large and impactful benefit to the community can be demonstrated. Under normal commercial development circumstances, six year abatement scheduled should be considered only in geographic areas where the abatement incentive is needed to encourage development. These areas could include the central business district (downtown area), the Urban Enterprise Zone, the South Marion Business District, or similar areas. The by-pass, interstate exchange, and similar areas should be considered for no more than three year abatement schedules. Variables that should be considered when determining the appropriate tax abatement schedule for commercial projects include: number of new and permanent full-time jobs being created, wage scale of positions being created, geographic location, level of investment, additional municipal services required, and overall positive impact on the community.
(C) Residential tax abatements should be offered for no more than three years. Special consideration should be given to new sub-division development, due to the private infrastructure development for the city, and to urban in-fill projects, for making a more efficient use of existing municipal services. Even in these two areas, however, tax abatement scheduled should not exceed three years. Rehabilitation and repair of existing structures may be eligible for up to five years of tax abatement if it qualifies under Indiana law by substantially increasing the assessed valuation. Routine maintenance such as painting, re-shingling, etc. shall not qualify for tax abatement unless it results in a substantial increase in the assessed valuation.
(D) Please note that any tax abatement guidelines should be used as general procedural statements only. The city council should maintain a certain level of flexibility in its program in order to best serve the citizens of Marion. It could be harmful to lock into a rigid formula. All abatements should be considered on a case-by-case basis in order to ensure the efficient use of the tax abatement program. High priority shall be given to job creation as well as job retention. Whenever possible, the Common Council shall be allowed sufficient time to study and examine a proposed tax abatement. Thus, as a general rule, tax abatements should not be heard by the Common Council on the same night as it is heard by committee, unless there is an emergency.
(E) The Abatement committee is designated as the City Council's negotiating arm on the issue of tax abatement. The abatement committee may make recommendations outside of these guidelines in exceptional circumstances. This resolution shall be reviewed and evaluated at least annually.
(Res. 19-2000, passed 6-20-2000)