Focus Area: Economy
Staff Contact: Jamie Robichaud/Kathryn Messer
Subject: Economic Incentive Policies Review
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title:
title
Economic Incentive Policies Review
Body
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Summary:
The City reviews its Industrial Revenue Bond (IRB) Policy on an annual basis and its Tax Increment Financing (TIF), Community Improvement District (CID), and Benefit District Policies on a biannual basis. These reviews are made to ensure that the policies keep in line with the City Council’s economic development goals as well as market trends. The policies will expire at the end of the year without Council action.
The policies with proposed revisions are attached. Additions/revisions are shown in colored text. Staff will present the proposed revisions to the Olathe Economic Development Council on November 7.
Staff have also prepared a summary document of all proposed changes. A high-level review of proposed changes include:
• IRBS
o Updated abatement provisions for targeted development area.
§ Allows an additional abatement of up to 30%, for a maximum of 80% of eligible mills.
§ Applies to warehouse, distribution, logistics, manufacturing, and data center projects.
§ Geographic boundary limited to Exhibit B remains unchanged.
• TIF/CID/Benefit Districts
o No substantive policy changes proposed; only dates and reference details were updated.
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Financial Impact:
None.
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Action Needed:
Review the policies. Based on City Council direction, staff will prepare the policies for formal consideration at the next City Council meeting.
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Attachment(s):
A. Draft Policy F-5 Industrial Revenue Bond and Property Tax Abatement
B. Draft Policy F-7 Tax Increment Financing
C. Draft Policy PI-5 Public Improvements - Benefit Districts
D. Draft Policy F-9 Community Improvement District