A. Establishment: There is hereby established within the town an enhanced sales tax incentive program (the "ESTIP").
B. Purpose: The purpose of the ESTIP is to encourage the establishment or substantial expansion of retail sales tax generating businesses within the town, thereby stimulating the economy of and within the town, providing employment and opportunities for residents and guests of the town and others, further expanding the goods available for purchase and consumption by residents and guests of the town, and further increasing the sales tax collected by the town, which increased sales tax collections will enable the town to provide expanded and improved municipal services to and for the benefit of the residents and businesses of the town, while at the same time providing public or public related improvements at no cost, or at deferred cost, to the town and its taxpayers and residents.
C. Definitions: As used in this section, the following terms shall have the following meanings:
BASE AMOUNT: The historic level of sales taxes at the property in question, or a similar property within the area in the event of a new business, and a reasonable allowance for increased sales due to the improvements and upgrades completed as a result of inclusion in the ESTIP.
ENHANCED SALES TAX: The amount of sales tax collected by the town over and above a base amount negotiated by, and agreed upon by, the applicant and the town, and which amount is approved by the town council, which base amount shall never be lower than the amount of sales tax collected by the town at the property in question in the previous twelve (12) months.
OWNER OR PROPRIETOR: The record owner or operator of an individual business.
PUBLIC OR PUBLIC RELATED IMPROVEMENTS: Means and includes streets, sidewalks, trails, curbs, gutters, pedestrian malls, streetlights, drainage facilities, landscaping, statuaries, fountains, identification signs, wayfinding signage, traffic safety devices, bicycle paths, off street parking facilities, parking garages, benches, off site water and sewer lines, lift stations, multimodal transportation infrastructure, and all necessary incidental and appurtenant structures and improvements, together with the relocation and improvement of existing utility lines, and any other improvements of a similar nature which are specifically approved by the town upon the town's finding that said improvements are public or public related improvements and that such improvements shall benefit the economic health of the town.
D. Application: Participation in the ESTIP shall be by approval of the town, exercising its legislative discretion in good faith. An owner or proprietor of a newly established or proposed retail sales tax generating business or location, or the owner or proprietor of an existing retail sales tax generating business or location which wished to expand substantially, may apply to the town for inclusion within the ESTIP, provided that the new or expanded business is reasonably likely to generate enhanced sales tax of at least twenty thousand dollars ($20,000.00) in the first year of operation.
E. Criteria: Approval of an application for inclusion in the ESTIP shall be given by the town, at a public hearing, based upon the following criteria:
1. The amount of enhanced sales tax which is reasonably to be anticipated to be derived by the town through the expanded or new retail sales tax generating business;
2. The public benefits which are provided by the applicant through public works, public improvements, additional employment for town residents and the like;
3. The amount of expenditures which may be deferred by the town based upon public improvements to be completed by the applicant;
4. The conformance of the applicant's property or project with the comprehensive plan and zoning ordinances of the town; and
5. The execution of the agreement required by this section.
F. Agreement: Each applicant shall execute an agreement with the town containing the following provisions, at a minimum:
1. A list of those public or public related improvements which justify approval, and the amount which shall be spent on said improvements;
2. The maximum amount of enhanced sales taxes to be shared, and the maximum time during which said agreement shall continue, it being expressly understood that any such agreement shall expire and be of no further force and affect upon the occurrence of the earlier to be reached of the maximum time of the agreement (whether or not the maximum amount to be shared has been reached) or the maximum amount to be shared (whether or not the maximum time set forth has expired);
3. A statement that the agreement is personal, not transferable and does not run with the land;
4. A statement that the agreement shall never constitute a debt or obligation of the town within any constitutional or statutory provision;
5. The base amount per month, and a statement that if, in any month sales taxes received from the property do not at least equal said amount, that there shall be no sharing of funds for said month;
6. A provision stating that any enhanced sales taxes subject to sharing shall be escrowed in the event there is a legal challenge to the ESTIP or the approval of any application therefor;
7. A provision stating that the obligations and benefits agreement may not be assigned in whole or in any part without the express consent of the town, and that no third party shall be entitled to rely upon or enforce the agreement; and
8. A provision that applicant shall have no right, claim, lien or priority in or to the town's sales tax revenue superior to or on parity with the rights, claims or liens of the holders as any sales tax revenue bonds, notes, certificates, or debentures payable from or secured by any sales taxes, existing or hereafter issued by the town; and that all rights of the successful applicant are, and at all times shall be, subordinate and inferior to the rights, claims, and liens of the holders of any and all such sales tax revenue bonds, notes, certificates, or debentures, payable from or secured by any sales taxes issued by the town.
G. Approval: Approval by the town of an agreement implementing the ESTIP shall entitle the successful applicant to share in enhanced sales tax derived from the applicant's property or business in an amount which shall not in any event exceed one hundred percent (100%) of the enhanced sales taxes. The time period in which said enhanced sales taxes may be shared shall not commence until all public or public related improvements are completed, and shall be limited by the town, in its discretion, to a specified time, or until a specified amount is reached.
H. Permitted Use Of Funds: The uses to which said shared enhanced sales tax funds may be put by an applicant shall be strictly limited to public or public related improvements which are expressly approved by the town at the time of consideration of the application.
I. Payment: The base figure for sales taxes shall be divided into twelve (12) monthly increments, which increments are subject to agreement between the parties, and approval by the town, and which increments shall be reasonably related to the average monthly performance of the business or property in question, or similar businesses in the area (adjusted for seasonal variations). If in any month the agreed upon figure is not met by the applicant for said month, no increment shall be shared until that deficit, and any other cumulative deficit, has been met, so that at the end of any twelve (12) month cycle, funds in excess of those enhanced sales tax funds agreed to be shared shall not have been shared.
J. Existing Tax Revenue Sources Unaffected: It is an overriding consideration and determination of the town that existing sources of town sales tax revenues shall not be used, impaired or otherwise affected by the ESTIP. Therefore, only enhanced sales taxes generated by the property described in an application shall be subject to division under the ESTIP. It shall be the affirmative duty of the finance director to collect and segregate all such enhanced sales taxes apart from the sales taxes generated by and collected from the town.
K. No Joint Venture: Notwithstanding any provision hereof, the town shall never be a joint venturer in any private entity or activity which participates in the ESTIP, and the town shall never be liable or responsible for any debt or obligation of any participant in the ESTIP. (Ord. 496, Series of 2016)