(a) Application. A developer proposing to annex a new development area with construction of eligible infrastructure improvements must apply to the Finance Director for a rebate of B&O taxes generated by the development within one year of the effective date of the annexation. The application shall, at a minimum, delineate the nature of the improvements for which the rebate is requested; the estimated cost of said improvements; a delineation of the newly annexed properties proposed for inclusion in the rebate; a delineation of the projected B&O taxes to be generated from the project, including both taxes to be paid from construction and from the businesses located within the proposed newly annexed area; a delineation of all other sources of funding for eligible improvements, including any payments from public sources such as grants or utility payments. The Finance Director or City Engineer may require additional information as either deems necessary.
Once completed, the application shall be given to the Planning Director, who will ensure the proposed boundaries contained within the rebate application are the same as or wholly contained within the newly annexed area.
The application shall then be given to the City Engineer, who will certify that the cost estimates for the eligible improvements are reasonable.
The application shall then go to the Finance Director, who shall develop the estimated proposed rebate amount. Any other public payments, including but not limited to grants and payments from utilities shall be considered and deducted from the total cost upon which the rebate amount is figured. The Finance Director shall make the final approval/disapproval of the application.
Upon completion of all eligible work to be performed under the application, the City Engineer shall certify whether or not the work meets City specifications. The City Engineer shall also certify whether costs associated with the work are reasonable, and insure no ineligible improvements or costs are included in the application. The developer shall submit paid invoices, payroll records or other supporting documents, as proof of eligible costs incurred by said developer, together with a release of lien(s) affidavit.
Upon certification of costs and acceptability, the Finance Director shall then provide the applicant with the total dollar amount eligible for rebate.
(b) Amendments. The applicant developer may request an amendment to the original application before the completion of work contained in the original application. Amendments must be filed if the scope of work to be performed or cost of work to be performed increases by more than 10 percent. If work has not started within one year of application approval, an amended application must be filed. No amendment for additional work to be completed within a newly annexed area will be accepted after five years from the effective date of the annexation.
(c) Rebate of B&O Taxes. Business and occupation taxes shall be collected as provided for in this article on all contracting and other businesses conducted within the newly annexed area and submitted quarterly as required in Section 779.15.
Business and occupation tax collected from all activity within the newly annexed area shall be placed in an escrow account to be maintained by the Finance Director, until such time as the total rebate amount as determined in 779.41(a) has been paid.
Upon request from the developer, the Finance Director shall rebate the taxes collected as follows:
(1) B&O tax collected on construction activity: Upon certification from the City Engineer that all work to be performed has been completed to City specifications, 100 percent of the taxes collected on construction activity within the newly annexed development, including taxes paid by prime and subcontractors, shall be rebated to the developer. If, however, the amount to be paid to the applicant developer is less than 100 percent of such taxes collected, then the applicant developer shall be eligible only for a payment in the amount so required to meet the total approved rebate amount.
A total of 25 percent of the taxes so collected shall be remitted to the General Fund.
A total of 75 percent of the taxes so collected shall be remitted to the applicant developer until such time as the total rebate amount as determined in subsection (a) hereof has been paid. If the amount to be paid to the applicant developer to meet the total rebate amount is less than 75 percent of the taxes collected, then the applicant developer shall be eligible only for a payment in the amount so required to meet the total approved rebate amount.
Once the total rebate amount has been paid to the applicant developer, all taxes collected shall be remitted to the General Fund of the City or as otherwise directed by this article.
The total amount rebated to a developer shall be no more than the actual costs incurred for eligible expenses as approved by the City Engineer. (Ord. 0-978. Passed 2-27-01.)