Criteria have been established to identify possible areas to be designated for community reinvestment and to evaluate the nature and the amount of the benefit to be gained by the Municipality if tax abatement is made available under the community reinvestment program. It is anticipated that this authority will be used carefully by Council and will be restricted to those cases which will provide a substantial benefit for a long period of time.
As a consequence, the deliberations leading to the creation of a community reinvestment area will be thorough. Since each candidate area and each applicant will have varying conditions unique to its particular circumstances, the following criteria are selected as a check list and to structure the deliberations. Such criteria are not intended to be used as a weighted scoring mechanism. It is conceivable that under certain circumstances a strongly adverse, single condition may be a sufficient reason for not designating a certain area or for not offering tax abatement to a certain applicant. On the other hand, only two or three strongly favorable circumstances may weigh heavily enough to properly merit the establishment of an area or the offer of abatement to an applicant.
In the following lists of criteria, groupings are solely to facilitate the collection and analysis of information by subject areas, in an orderly fashion. Relative positions of individual items in the list do not connote either priority consideration or relative importance.
The review criteria for the establishment of community reinvestment areas are as follows:
(a) Preconditions. Preconditions for the establishment of such areas are as follows:
(1) The identification of a delineated area which requires stimulus for economic development;
(2) The provision of tax abatement by a private company to locate or to expend within the area; and
(3) A determination of the lowest negotiable number of years of abatement to conclude the inducement.
(b) Conditions Pertaining to the New Undertaking. Conditions pertaining to the new undertaking are as follows:
(1) A substantial number of new jobs will be created.
(2) Significant local expenditures in addition to payroll will be made.
(3) The parent company is financially sound and reasonable.
(4) There is forseeable long-term demand for the product or the service.
(5) The applicant provides descriptive plans, building and equipment layouts, a description of intended operations, products or services and the proposed equity investment.
(6) An estimate of the increase of business for existing local service industries and suppliers is made.
(7) An estimate for the requirement for the establishment of new local service industries and suppliers is made.
(8) The value-added rating of the industrial classification of the applicant’s product or service is considered.
(9) The environmental effect on the surrounding community is considered.
(10) The potential enhancement of the quality of life of the present inhabitants by favorable attributes of the new work force is considered.
(11) The accommodation of the General Development Plan and the Zoning Code is considered.
(12) The accommodation of local utilities and transportation is considered.
(13) The accommodation of local schools, functions of local government and various community services is considered.
(14) The impact on the present housing supply, potential housing areas that could be developed and the housing industry is considered.
(15) The nature and extent of the impact on the present labor force are considered.
(16) The character and quality of the proposed operation, as it relates to community ethics and standards, compatibility with community objectives and contribution to community developmental goals, are considered.
(c) Conditions Pertaining to the Good of the Municipality, the State and the Nation. The following conditions pertaining to the good of the Municipality, the State and the nation shall be considered:
(1) The possible value of a company of a smaller size which by itself, or by its output, makes a contribution, on a regional or national scale, of recognized industrial, economic, educational, cultural, scientific, strategic or other importance;
(2) Any undertaking, such as a research establishment, academic institution, corporation headquarters and the like, whose operation will bring a material talent bank and favorable identification and recognition to the Municipality; and
(3) A determination if offsetting State or Federal financial assistance may be provided for the project.
(d) Conditions Pertaining to the Taxation Balance of Payments. Detailed preparation and analysis of the following three property-tax scenarios for each reinvestment program under consideration shall be made:
(1) Without the proposed improvement;
(2) With the improvement but without abatement; and
(3) With the improvement and with abatement.
(Ord. 915. Passed 12-4-80; Ord. 00-22. Passed 4-6-00.)