Department: Resource Management
Staff Contact: Dianna Wright/Ron Shaver/Emily Vincent
Subject: Report regarding revisions to the City’s Industrial Revenue Bond and Tax Abatement (IRB) Policy, Tax Increment Financing (TIF) Policy, Community Improvement District (CID) Policy, and Transportation Development District (TDD) Policy.
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Item Description:
title
Report regarding revisions to the City’s Industrial Revenue Bond and Tax Abatement (IRB) Policy, Tax Increment Financing (TIF) Policy, Community Improvement District (CID) Policy, and Transportation Development District (TDD) Policy. .
Body
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Summary:
The City reviews its IRB policy on an annual basis and the TIF, CID and TDD policies every other year. This review is made to ensure that the policies keep in line with the City Council’s economic development goals as well as market trends.
Proposed revisions to the policies were shared at the Economic Development Council (EDC) Advisory Board meeting on Tuesday, November 5th. The EDC was supportive of the revisions.
The proposed changes include the following:
• Increasing the investment threshold for Sales Tax Exemption IRBs from $2.5m to $3m.
• Adding a Community Benefit Component to the IRB, CID, TIF and TDD policies that requires the owner of a property receiving an incentive to (1) at all times be a dues-paying member in good standing with both the Olathe Chamber of Commerce and the Olathe Economic Development Council and (2) make an annual donation to the Olathe Community Foundation in an amount to be determined in the sole discretion of the owner, but no less than $3,000 annually.
• Eliminating the sunset date for the TDD policy.
Attached are the policies with additions highlighted in blues and revisions highlighted in red.
In addition to these policies, two technical changes are being made to O.M.C. 2.82.130. This section deals with the public art payments that are made as part of applications for incentives. The ordinance simply clarifies the requirements for the developers. No substantive changes are being made to the public art program.
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Financial Impact:
None
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Action Needed:
Review the proposed changes. Based on City Council direction, staff will prepare the policies and public art ordinance amendment for formal consideration on December 3, 2019.
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Attachment(s):
Attachment A: Draft IRB Policy Attachment B: Draft TIF Policy Attachment C: Draft CID Policy Attachment D: Draft TDD Policy Attachment E: Letter of support from Olathe EDC Attachment F: Draft Ordinance No. 19-XX