Commercial Rate Incentive Scheme PDF

7/28/2019 Commercial Rate Incentive Scheme PDF

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COMMERCIAL RATES INCENTIVE SCHEME

APRIL 2013

Kilkenny gra Fianna Fil
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COMMERCIAL RATES INCENTIVE SCHEME Ap ril 2013

INTRODUCTION

Small and Medium size Enterprises (SMEs) are the backbone of the Irish economy.

Therefore, any potential barriers to the creation of new Small and Medium size

Enterprises in our City should be eliminated or lessened to ensure that

individuals/companies are facilitated as much as possible by the local authority when

establishing their enterprise. The core objective of this scheme is to maximise the

occupancy of commercial units in the primary retail area of our City.

By encouraging the occupancy of empty commercial units through a Commercial Rates

Incentive Scheme the Local Authority will stimulate commercial activity without theneed to directly inject any capital. The major benefit underlying this proposal is that it

creates 100% new revenue for the Local Authority as it is aimed at new enterprises that

will occupy empty commercial units. Generally in the case of commercial rates, empty

commercial units are revenue neutral for the period of time they remain unoccupied.

It is important to note that the Annual Rate of Valuation applied by Kilkenny Borough

Council, which determines the extent to which each enterprise is liable for commercial

rates, is very competitive when compared to other Borough Councils. Currently the ARV

applied by Kilkenny Borough Council is 59.55. The only Borough Council lower than this

is Clonmel where the AVR stands at 58.84. The table below details the ARV applied by

each of the five Borough Councils.

Borough Council Annual Rate of Valuation (2012)

Clonmel 58.84

Kilkenny 59.55

Drogheda 66.49

Wexford 67.66

Sligo 68.94


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COMMERCIAL RATES INCENTIVE SCHEME Ap ril 2013OBJECTIVES OF THE SCHEME;

The scheme seeks to promote the use of empty commercial units within the primary

retail area of Kilkenny City through the introduction of a Commercial Rates Incentive

Scheme. The following points highlight the main objectives of the Scheme;

To encourage new businesses to occupy commercial premises/shops whichhave been vacant for an extended period of time.

To protect the commercial integrity of the City by tackling the problem ofempty commercial units which are both economically and socially

undesirable.

To support the continued role of Kilkenny City Centre as the primary retaillocation within the county.

To enhance the overall economic well being of the City. To assistin job creation. To increase the rates collection of Kilkenny Borough Council to assist in the

funding of services which benefit the people of Kilkenny City.


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COMMERCIAL RATES INCENTIVE SCHEME Ap ril 2013ELIGIBILITY REQUIRMENTS UNDER THE SCHEME

1. Qualifying Applicant

The applicant may be an individual or a company.The applicant, being an individual or company, must satisfy the following criteria in

order to be eligible for consideration;

The applicant must hold a Tax Clearance Certificate. The applicant must have successfully executed a lease agreement with the

landlord concerning the vacant property for a period no less than 3 years.

The landlord must agree to offer no less that a 20% reduction in rent on thevacant property to be applied during each of the 3 years. The Council may waive

this requirement if the landlord can show that such a waiver is reasonably

justified in the circumstances.

There must be no outstanding monies owed by the applicant to KilkennyBorough Council or Kilkenny County Council arising out of the operation of any

other business owned by the applicant in the Kilkenny Borough Council

administrative area or Kilkenny County Council administrative area.

The proposed business must be a new business. The scheme will not apply toapplicants who own an existing business and simply wish to upscale/downscale

that business.

The proposed business must not threaten the viability of an existing business inthe immediate commercial area. If the Council believes that the proposed

business could potentially threaten the viability of an existing business, it will

consider the application in that light. Whilst it is most important to ensure

competition and vibrancy in our City we recognise that the protection of existing

business is paramount.


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COMMERCIAL RATES INCENTIVE SCHEME Ap ril 20132. Qualifying Property

The property must have been vacant for a period of 4 months at least before itwill become eligible for consideration under the scheme. The Council may seek

proof that the property has been vacant for a period of 4 months. Furthermore,

the premises must have been available on the open market for a period no less

than 4 months. As with the vacancy period requirement the Council may seek

evidence than the property was indeed on the open market for a period of no

less that 4 months.

The proposed use must be primarily on the ground floor with street frontage.Further use of the second floor etc will be considered by Council on a case by

case basis.

The property must be rated or rateable.3. Uses not covered by the Scheme

The proposed use must not have been open for trade by the applicant in theKilkenny Borough Council administrative area within a 12 month period

immediately prior to the submission of the application.

The proposed use must not displace existing business within the immediatecommercial area.

Fast food/take-away businesses are not covered by the scheme. The proposeduse can only offer a take-away service as a minor or ancillary nature of the

enterprise.

The proposed use must be a unique outlet and not associated with anymulti/inter-national chain or franchise for the three years in which it benefits

from the scheme.

Gaming/gambling/betting offices/arcades are not included under the scheme.


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Any Use which the Councils deems undesirable or inconsistent with thecommercial integrity of the City will not benefit from the scheme.

4. The management team of Kilkenny Borough Council together with the Mayor of

Kilkenny City shall have the authority to specify the administrative provisions of

this scheme as required. The interpretation and decision of the Kilkenny Borough

Council Manager on all aspects of any application under this scheme is final.

Commercial Rate Incentive Scheme PDF

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