Post on 09-Mar-2016
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Davenport NOW – Why & What?Davenport NOW Why & What?
• Encourage New Investmentg– NOW Is A Great Time To Invest In Davenport
• 10 Year City Tax Rebate– 50% Rebate For New Investment– All Property Owners Eligible
• All Existing Property Owners• All New Commercial / Owner Occupied Residential• All New Commercial / Owner Occupied Residential
– Within City Service Limits– No New Rental or Conversion to Rental
– Rebate Every Year For 10 Years or Lump Sum
Davenport NOW – What It Is NotDavenport NOW What It Is Not
• Not Tax Increment Financing (TIF)g ( )– City DOES NOT Use TIF For Residential Projects– Residential TIFs Rarely (if ever) “Pay Their Way”
Do Use TIF For Commercial Taxbase / Job Growth– Do Use TIF For Commercial Taxbase / Job Growth
• Not Urban Revitalization Tax Exemption (URTE)p ( )– City Has Established URTE Areas– Use URTE For Blight Removal, Taxbase & Job Growth
• Both URTE & TIF Use Other Local Govt’s $
Davenport NOW – What It Is NotDavenport NOW What It Is Not
• Not Tax Increment Financing (TIF)g ( )– City DOES NOT Use TIF For Residential Projects– Residential TIFs Rarely (if ever) “Pay Their Own Way”
Do Use TIF For Commercial Taxbase / Job Growth– Do Use TIF For Commercial Taxbase / Job Growth
• Not Urban Revitalization Tax Exemption (URTE)p ( )– City Has Established URTE Areas– Use URTE For Blight Removal, Taxbase & Job Growth
• Both URTE & TIF Use Other Local Govt’s $
Davenport NOW – What It IsDavenport NOW What It Is• Rebate Of 50% City Property TaxesRebate Of 50% City Property Taxes
– For New, Qualifying Investment
• Secured With A Development Agreement– Simple, Standardized Agreement– Recorded With Property – Includes Protection For City That Taxes Are Paid
Ad i i t ti E B P ti i t– Administrative Expenses By Participant– Lump Sum Payments Discounted To Cover
City Interest ExpensesCity Interest Expenses
Davenport NOW – ExamplesDavenport NOW Examples• $25,000 Home Improvement$25,000 Home Improvement
– $726 up front or $940 over 10 years
• $250,000 New Home$7 257 up front or $9 397 over 10 years– $7,257 up front or $9,397 over 10 years
$2 00 000 N B i• $2,500,000 New Business– $163,058 up front or $229,957 over 10 years
Davenport NOW Pro & ConDavenport NOW Pro & Con• Pro • Con
– Encourages New Investment Within City Service Boundary
– Spur Job Retention / Growth
– Only Cuts Taxes For New Investment
– Improves Tax / Service Quality Equation For New InvestmentT t All N I t t
• New Tax Base Helps Keep Taxes Low & Stable
Req ires Contin ed– Treats All New Investment Equitably*
– Doesn’t Harm Other Local Govts (i e Schools)
– Requires Continued Productivity Improvements
• Productivity ImprovementsGovts (i.e. Schools)– Creates Another Reason For
Businesses & Homeowners To Consider Davenport
Productivity Improvements Are Necessary Regardless
p
* new rental investment not eligible
Davenport NOW Pro & ConDavenport NOW Pro & Con• Pro • Con
– Encourages New Investment Within City Service Boundary
– Spur Job Retention / Growth
– Only Cuts Taxes For New Investment
– Improves Tax / Service Quality Equation For New InvestmentT t All N I t t
• New Tax Base Helps Keep Taxes Low & Stable
Req ires Contin ed– Treats All New Investment Equitably*
– Doesn’t Harm Other Local Govts (i e Schools)
– Requires Continued Productivity Improvements
• Productivity ImprovementsGovts (i.e. Schools)– Creates Another Reason For
Businesses & Homeowners To Consider Davenport
Productivity Improvements Are Necessary Regardless
p
* new rental investment not eligible
Davenport NOW GuidelinesDavenport NOW Guidelines
1. 50% Rebate For 10 Years For New Investment Or FirstNew Investment Or First Occupancy (including new &
t & dvacant & now under construction))
Davenport NOW GuidelinesDavenport NOW Guidelines
2. All Existing & New Commercial & Residential Properties& Residential Properties Eligible With $5,000+ New V l N R t l P tiValue. New Rental Properties Not Eligible. g
Davenport NOW GuidelinesDavenport NOW Guidelines
3.3. All New Structures Must Be Within City Services B dBoundary.
Davenport NOW GuidelinesDavenport NOW Guidelines
4.4. May Not Be Combined With yAny Other City Property Tax S t d E DSupported Econ Dev ProgramProgram.
Davenport NOW GuidelinesDavenport NOW Guidelines
5.5. Participation Secured By A p yDevelopment Agreement As A d B CitApproved By City.
Davenport NOW GuidelinesDavenport NOW Guidelines
6.6. City Administrative yExpenses & Interest Costs T B D d t d FTo Be Deducted From RebateRebate.
Davenport NOW GuidelinesDavenport NOW Guidelines
7.7. Rules & Procedures As Required May Be I l t d B St ffImplemented By Staff.
Davenport NOW GuidelinesDavenport NOW Guidelines
8. Development Agreements
30Must Be Executed By June 30, 2012 Unless Extended By2012 Unless Extended By Further Council Resolution.