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HomeMy Public PortalAboutResolution 1378.. c' RESOLUTION NO. 1378 A Resolution Setting forth Economic Incentives which will be Granted by the Village of Plainfield for the Purposes of Promoting Economic Development Within the Village. Whereas: The economic health and vitality of the Village is dependent upon establishing and sustaining viable commercial and industrial development, and Whereas: The Village is desirous of promoting such commercial and economic development to diversity the Village's tax base, lessen the tax burden on its residents and enhance revenues, and Whereas: The Village Board wishes to support the re-development of the traditional care of the Village, and Whereas: The Village Board wishes to support existing commercial and industrial bases within the Village as well as promote new commercial and industrial development in all areas of the Village: Now, therefore, be it resolved by the President and Board of Trustees of the Village of Plainfield that the policy attached shall be the policy of the President and Board of Trustees for the granting of economic incentives by the Village of Plainfield. Passed this 4th day of August, 2003. AYES: Swalwell, O'Connell, Thomson, Fay, Waldorf. NAPES: 0 ABSENT: Collins Approved this 4th day of August, 2003. ti ----' ILL D ` =ATTEST: ~ . VILLAGE CLE ,. ~ '. .~ ECONOMIC INCENTIVES POLICY Economic Incentives Policy: Where deemed appropriate by the Village's Baazd of Trustees, the following economic incentives will be utilized for economic development: 1. Tax Increment Financing (TIF) 2. Sales Tax Rebates 3. Utility Tax Rebates 4. Industrial Revenue Bonds 5. Property Tax Rebates 6. Private Activity Bonds 7. Special Service Areas S. Waivers of Tap-on, Permit, and Recapture Fees as appropriate, not to exceed 2S% of such charges. 9. Assistance in seeking and filing for state and federal economic incentives as appropriate 10. Construction of appropriate infrastructure 11. Other incentives as determined by the Village Board. The Village Board reserves the right to approve, modify, or reject any and all economic incentives provided to businesses. The Village Board may approve any combination of incentives as warranted by the circumstances. For example: A newly developed industrial area may receive a combination of reduced permit fees as well as rebate of property taxes if the Board in its sole discretion determines that circumstances warrant such incentives. The Village will not provide incentives to any residentially developed property. Through the use of incentives, the Village shall seek to create diversity in the Village's tax base by encouraging industrial and commercial development. Additionally, the Village will utilize incentives to provide diversity in the types of industry locating in the Village. The Village may grant incentives to shopping centers already existing in the Village. Such incentives shall generally be limited to shopping centers which have less than 50,000 squaze feet. Such incentives may be granted even if the shopping center is located outside of the central business district. The Village shall not provide incentives to commercial retail chains ("big box" stores) unless the development opens up a new commercial corridor or area to future development. In this case, granting of incentives shall be conditioned upon additional retail space opening within a defined period established by the Village Board. Economic Incentives shall be encouraged in the traditional historic and expanded downtown core. The Village shall use economic incentives to encourage retail development in the downtown corridor. Funds shall be provided if the immediate use for the first floor of the building is retail. The Board reserves the right to grant and/or limit economic incentives for first Economic incentives Policy Page 2 of 2 floor uses other than retail. Office and other commercial uses shall be encouraged to locate an the second ar higher floor(s) of the building. Far new buildings, TIF incentives shall be limited to 75% of the expected incremental revenues generated by the improvement fox a period of 5 years. For example, if a newly constructed building/center is expected to generate $20,000 of incremental taxes per year, the maximum incentive the Village would allow under the TIF program would equal $75,000. ($20,000 * 5 years * 7S%). Far existing commercial buildings within the TIF District, factors other than economic benefit to the Village may be considered when evaluating a TIF incentive. Examples of the other factors include compliance with downtown design standards, historical significance of the property, overall character ofthe remodeling and haw it relates to the remainder of the historic downtown, type of use (office vs. retail), etc. TIF incentives granted shall exclude deferred maintenance items. Each case shall be negotiated individually. Any incentives granted to ongoing revenue streams such as sales, utility, property, or other tax revenues shall not exceed S years in duration nor 50% of the amount generated in a particular year. Any entity receiving incentives must remain in business for the term of the incentive. For example, a business that receives a sales tax incentive far S years must remain in the Village in substantially the same form of business for a period no less than 5 years. Failure to da so will result in the forfeiture/return of 100% of any incentives granted. The Village Board may require a letter of credit to secure such incentives. The Board shall have the sale discretionary authority as to whether a letter of credit is required. Any entity receiving economic incentives shall not protest the amount of the assessment of any of their property in the Village for a term of twice that of the term of the economic incentive. For example, a firm receiving incentives for 5 years shall not protest the assessment of any property located in the Village for a period of 10 years. This period of time begins when the incentive begins. If the Village becomes aware of an assessment challenge during this term, the Village may apply a penalty of 2S% of any incentives granted, or require the firm to drop its challenge to the assessment (if possible) at the Village's sole option. All incentives shall be on a reimbursement basis. The Village shall not "advance" any funds to any business, or circumvent any established law ar procedure. The Village will not substitute or subordinate its credit position far any applicant. Anyone seeking economic incentives shall appear before the Economic Development Commission to justify its request. The Cotnrnission shall then forward its recommendation on to the Mayor and Board of Trustees who have the sole discretion to permit, modify, or reject the incentive request.