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HomeMy Public PortalAbout3 Fraser Economic Development PolicyTown of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com Fraser Economic Development Policy As noted in the 2017 Budget Message, sales tax revenues provide approximately 75% of the revenue in the General Fund which provides for the general operations of the Town. The Fraser business community is relatively small, therefore otherwise minor changes can have a significant impact on revenues that are relied upon for general operations. The opening of a new grocery store in Winter Park in 2017 will most certainly have a negative impact on Fraser sales tax revenues. However, the extent of that impact is uncertain. Further, the Town Board conveyed a strong message in the 2017 Budget that Fraser is “Open for Business.” Accordingly, the Fraser Economic Development Advisory Committee, established in 2016 to assist the Board in developing policies to enhance the local economy, recommends the following economic development policy statement:  The Town of Fraser is seeking proposals for new commercial real estate and business development that would take advantage of the following offerings: o Sales tax rebates to the building owner over a ten-year term, 100% for the first five years and 50% for an additional five years. o Rebate of the property tax increment for a term of five years. o Waiver of the applicable Use Tax at time of building permit. o Deferral of water and wastewater plant investment fees at time of building permit, payable over three years after Certificate of Occupancy. o Water and wastewater service fee waivers until issuance of Certificate of Occupancy, or three years whichever comes first. o A rebate of $1.00 per square foot payable upon issuance of Certificate of Occupancy (in lieu of waiver of permit and review fees). o These incentives would be available for new commercial real estate and business development in Fraser that commences construction prior to January 1, 2019.  On a case by case basis, the Town of Fraser will also consider other incentives such as tax increment financing, density bonuses, parking waivers, and grants. Interested parties should submit proposals to the Fraser Town Manager. The Economic Development Advisory Committee and Town Board commit to an initial response within 45 days. Town of Fraser PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518 www.frasercolorado.com Shelly asked a really good question….didn’t we discuss a 2 year start and 4 year completion clause? Yes the EDAC sure did. However, as I was drafting this, it occurred to me that some of these terms are effective at start and others come into play at completion. Use tax would be waived at building permit, and sales tax rebates would start (presumably) after completion. My thought, and I should have clarified this in my distribution email, is that this one pager provides an overal l framework to take to the Town Board and ultimately distribute as we discussed. However, we’ll also need an agreement that sets all these terms into motion. My thought is that as soon as the Board blesses this, we’d need to get the attorney working on a boilerplate agreement (so we can meet the 45 day provision). In t hat agreement we’d clarify the mechanics and timing of all these terms (and the consequences of not achieving completion within 4 years and/or not fulfilling other expectations such as actually being open for business). Adopted by the Fraser Town Board Via Resolution 2017-__-__