(A) Creation of Economic Development Incentives Program. There is hereby created an Economic Development Incentives Program (the “Program”) whereby any business entity or employer that applies and is approved under the Program (the “applicant”) may receive a rebate of fifty percent (50%) of the occupational license taxes that are withheld from the compensation of new employees and paid to the city, as required by § 60.005 and calculated per § 60.003, for a period not to exceed five (5) years.
(B) Conditions for approval. To be eligible to receive the rebate from the Program, the applicant must meet the following qualifications:
(1) The applicant is not directly or indirectly eligible to receive benefits under any other economic development program sponsored by a government agency in which the city is a participant; and
(2) With regards to those new employee compensation withholdings for which the applicant is seeking a rebate, the applicant has an aggregate new annual payroll equal to or greater than one hundred thirty-five thousand dollars ($135,000.00), the average employee compensation is equal to or greater than forty-five thousand dollars ($45,000.00) per employee, and the applicant seeks to employ not less than three (3) individual employees for whom the applicant will be subject to withhold occupational license taxes as required by § 60.005; and
(3) The applicant is otherwise current with all tax and fee obligations to the city; and
(4) The applicant has agreed that the city may audit the applicant’s books and records to ensure compliance with the terms and conditions of this Chapter 60 and the agreement entered into with the city per the Program (the “Program Agreement”).
All of the foregoing conditions must be met by the applicant and failure to meet any one of them shall be a basis to disqualify the applicant from any incentives under the Program.
(C) Making application.
(1) Applicants shall apply to participate in the Program on any and all forms which may be required and provided by the city, and shall submit the completed forms, along with any accompanying documents, to the city as instructed. All Program application information must be submitted to the city prior to the start of employment of any person for whom the applicant is seeking to receive a rebate of amounts withheld. In no case will an application be accepted if it is submitted after the start of employment for applicable employees.
(2) Incentives may be paid following the applicant’s submission of a written request for the rebate payment on the applicable employee compensation withholdings, all applicable W-2 forms, and any other completed forms or information required by the city. The request for payment must be submitted to the city no later than June 30 of the year succeeding the year for which the rebate is claimed. Incentives are paid for a five (5) year period only, but requests for payment may be made, and incentives may be paid, following the end of that five (5) year period, but in no case will any incentives be paid later than seven (7) years from the date of the approval of the applicant’s application.
(D) Events of default. The following shall constitute events of default which may be declared by the city:
(1) Failure of the applicant to report or to pay employee compensation withholdings as required by federal, state or local laws, whether from new jobs or existing jobs; or
(2) Failure of the applicant to satisfy the projected schedule of employee compensation withholdings submitted with its application or as set forth in the Program Agreement; or
(3) Failure of the applicant to pay any tax, license fee, lien, penalty or other charge or obligation to the city per the Shelbyville Code of Ordinances; or
(4) Failure of the applicant to comply with any term, condition or obligation of the Program Agreement; or
(5) Any misrepresentation by the applicant of any statement or fact in connection with the application, regardless of whether such misrepresentation was relied upon by the city.
(E) Remedies.
(1) In the event of default, the city may suspend approval under the Program until such time as the default is cured, or the city may terminate and/or withdraw approval. If the approval is terminated, the city shall be entitled to recover the amount of employee compensation withholdings rebated to the applicant up to the date of said termination. The failure of the city to declare a default shall not constitute a waiver thereof.
(2) In the event the city shall institute legal proceedings to enforce any provision of this § 60.016 or of the Program Agreement, the city shall have all legal and equitable rights afforded to it by law and shall be entitled to recover its reasonable expenses incurred in connection therewith. The provisions of this subsection (B)(2) shall be in addition to the enforcement of any applicable penalties under § 60.999 of this Chapter 60.
(Ord. 2021-01-21, passed 1-21-21) Penalty, see § 60.999