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Home My WebLink AboutPackets - Council Packets (1094) AGENDA ORO VALLEY TOWN COUNCIL STUDY SESSION FEBRUARY 7, 2005 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE STUDY SESSION AT OR AFTER 4:30 PM CALL TO ORDER ROLL CALL 1. REVIEW AND DISCUSSION REGARDING RESEARCH OF THE USE OF INCENTIVES BY OTHER MUNICIPALITIES IN ARIZONA 2. REVIEW AND DISCUSSION OF THE "THINK TANK" REPORT PREPARED BY DR. LAY JAMES GIBSON, Ph.D. ADJOURNMENT POSTED: 01/31/05 4:30 p.m. lh When possible, a packetagenda of a enda materials as listed above is available for inspection at least 24 hours prior to the Council meeting in the office of the public Town Clerk between the hours of 8:00 a.m. — 5:00p.m. The Town of complies Oro Valley with the Americans with Disabilities Act (ADA). If any person with a disabilityneeds any type of accommodation, please notify the Town Clerk's Office at 229-4700. I TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION MEETING DATE: FEBRUARY 7, 2005 TO: HONORABLE MAYOR & COUNCIL MEMBERS FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR SUBJECT: REVIEW AND DISCUSSION REGARDING RESEARCH OF THE USE OF INCENTIVE BY OTHER MUNICIPALITIES IN ARIZONA. SUM MARY: During the November 17, 2004 regular Council meeting the Mayor and Council as part of the discussion concerning possible the suspension of the economic incentive portions of the Economic Development Incentive Policy guidelines directed the staff (Economic Development Division) to all economic incentive programs currently implemented by Arizona towns and "immediately research p 9 cities made thereto, and the measurable effect on the Town's bottom line with that report to be submitted to the Council for a StudySession to be held no later than February 19, 2005."This report will provide the findings of that effort. There are 89 incorporated municipalities in the State of Arizona. Responses were received from 24 p p communities (27% response rate). Additional information for the communities of Phoenix and Tucson has been ascertained. The total of 26 data sets represents a 29% survey rate which is considered meaningful. are Followingfindings from the responses remitted and additional information: 9 1. Established Policy/Procedures: Including the Town of Oro Valley, there are a total of eleven (11) communities, of the twenty four (24) responded,res onded, that have some form of an adopted policy/procedure for the consideration and granting of incentives. 2. Sharing of Sales Tax Revenues: in the Town of Oro Valley, there are a total of ten (10) communities that have some Including y form of new sales tax revenue sharing. Of note, the ten communities were not the same as that have established a policy or procedure (refer to Attachment #2 - Use of the eleven Incentives by Arizona Communities listing). TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION PAGE 2 OF 3 3. Commitment of Publicp : Funds Expenditure (Infrastructure Improvements There are a total of sixteen (16) communities that have some form of an adopted policy/procedure for the consideration of the expenditure of public funds for infrastructure improvements. Again as noted previously reviousl the sixteen communities were not the same as those responding to items 1 and 2 (refer to Attachment #2 - Use of Incentives by Arizona Communities listing). 4. Currently consider Waiver of Fees: I of fourteen (14) of the respondent communities that have some form of an There are a tots adopted policy/procedure edure for the consideration of waiving fees. Again as noted previously the fourteen communities were not the same as those responding to items 1, 2 and 3 (refer to Attachment #2 - Use of Incentives by Arizona Communities listing). TOWN MANAGER COMMENTS: The research accumulatedprovides rovides an in-depth look at the various approaches currently being utilized by municipalities within Arizona. The most remarkable observance I can take away from this wealth of information is thateach communityhas selected an approach that best fits their needs and capabilities. When I step back and consider the adopted policy for the use of economic incentives in Oro Valley it is rather apparent that we do not stand apart from other communities in selecting the approach that the prior Council's decided "fit" our community. look forward to anynew direction concerning either the use or application of I, and the staff, economic incentives that the Council determines would better suit the achievement of the community's goals. ATTACHMENTS: community of specific policies (if existing) and detailed approaches 1. Listing by o ty p where defined. 2. Breakdown of Community by response category. 3. Additional Community support information as provided. 4. Listing of f Economic Development Incentivized projects from responding communities. r WINNIMINLLINIELW TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION PAGE 3 OF 3 I l y � r JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADM. 1, 6.,(/ 4 CHUCK SWEET TOWN MANAGER ATTACHMENT 1 CITY AND TOWN INCENTIVE POLICIES 1. Avondale A. No Council adopted Strategy. The ED Director presents a Goal Statement each year for Council approval. 1. They do write EDA's for sales tax sharing. a. These EDA's are performance based. They must meet their new sales projections each year to receive the following year etc. Recipient may receive up to 75% of new taxes. 2. Benson A. No formal strategy. They are evaluating. Want a copy of report. 3. Buckeye A. They have no formal policy. They will participate in public infrastructure improvement costs if it benefits the town. 4. Casa Grande A. City Ordinance No. 1297.07.01 1. Qualifying businesses a. No retail b. New industrial or commercial project c. Expansion of an "existing industrial or commercial project" **considering offering to existing businesses** 2. Authorization to rebate a. Any or all fees required to be paid in connection with the construction or expansion of commercial or industrial including, but not limited to, plan check, inspection and sewer connection. b. General funds to pay construction of off-site public improvements. c. All or a portion of the sales tax revenues levied, generated and received as a result of construction. d. All or a portion of the property tax revenues levied, generated or received as a result of construction of a new or expanding project. *** City Council must approve any incentive over $75,000. — less needs approval of the City Manager.*** 3. Criteria a. Creation or retention of a significant number of jobs with the average hourly wage for non-exempt positions of at least 75% higher than the federal minimum and the recipient pays at least 25% of average hourly wage for non-exempt positions in benefits. b. Must expend a minimum of$1,500,000.00 in equipment, land and building improvements as initial investment at a single location and expansions must spend $750,000.00. c. Economic Development will be furthered by rebating fees. d. Recipient's operation will otherwise improve inhabitants of the city. e. Recipient's operation will not disproportionately expend natural resources and services such as transportation infrastructure or public safety services. f. Benefits to city outweigh the costs to City by fiscal impact analysis. 5. Cave Creek A. Town does not have a policy but Council considers the waiver of fees on a case by case basis. 6. Chino Valley A. Town does not have a current policy but is reviewing now. Wants a copy of our report. 7. Fountain Hills A. Town does not have a current policy. Wants a copy of our report. 8. Gilbert A. No formal policy. 1. Offer permit fee waivers, sales tax rebates and expedited review on a case by case basis. 2. Town Manager authorized to approve up to $75,000. Over goes before Council. 3. Incentives considered on both industrial and retail. 9. Goodyear A. Policies outline in general Plan and Goodyear Employment Corridor Study. (case by case). 1. See examples provided. Most appear to relate to sales tax reimbursement. Also fee waiver and direct cash for infrastructure. 10. Kingman A. No formal policies for any development. 1. City will participate in public infrastructure improvements if it benefits the system. 11. Lake Havasu City A. Economic Development handled by non-profit agency. 1. City will give sales tax rebates and participate in offsite improvements. 12. Marana A. No formal policy for financial assistance. Town has shared new sales taxes generated by a project for public infrastructure improvements (case by case). 13. Mesa A. Policy outline follows. (see report for details) 1. Mesa's Services a. Development Services One-Stop Center b. MEGACORP confidential consulting services 2. Mesa's Financial Incentives a. City Share Financial Participation (infrastructure) b. Foreign Trade Zone c. Permit Fee waiver or reduction d. Private Activity Bond issuance e. Property/excise tax reduction or abatement 14. Paradise Valley A. Town does not provide incentives. They have no industry. 15. Payson A. No formal written policies. In the process of writing a policy. 1. Council approved budget item of$100,000 annually to buy down impact fees. 2. Expedited plan review. 16. Prescott A. The city of Prescott has adopted Incentive Policies. 1. Targeted Development Criteria 2. Incentives Available a. Public participation in cost of infrastructure. b. Public participation in facade improvements, landscaping, lighting etc. in redevelopment areas. c. Payments towards project development costs based on sales tax revenues generated. d. Public participation in payment of fees and permits. e. Bond Financing by IDA. f. Streamlined permitting process and site location assistance. g. Marketing assistance. h. Assistance with grant and loan programs. i. Other assistance on a project-by-project basis. **Additional incentives will be considered.** 17. Prescott Valley A. City has no written policy. 1. Take requests on an individual basis. 18. Queen Creek A. Queen Creek does have a Strategy adopted by Resolution 241-01. 1. Targeted Industry Clusters a. Retail is primary for sales tax revenue. b. High Tech Support c. Tourism & Experience (Experience: eco-experience resort, farm to market and agricultural boutique) d. Agriculture & Agribusiness e. Construction Materials B. Implementation Strategies RETAIL 1. Benefits a. Revenues for operation b. Provide basic goods and services c. Provide employment opportunities d. Retain expand existing businesses e. Social interaction f. Pedestrian oriented Town Center 2. Actions RETAIL a. Create appropriate zoning for commercial development b. Provide clear direction re. location & regulation c. Create/consider/evaluate incentive for high sales tax businesses. d. Timeline for permitting commercial outside Town Center e. Create parking solution 3. Accountability RETAIL a. Town Council b. Town Staff c. EDC *** For all the Benefits and Actions of the other industries, see the attached report*** C. Ready Response Team 1. Members a. Mayor or Council Member b. Town Staff: Community Development Director, Town Manager, Town Engineer) c. Local Business Representative d. Infrastructure Representative (utilities) e. Airport Authority f. School District g. College h. EMS i. Parks & Rec. D. Incentives Considered by Mayor and Council 1. Waver of fees 2. Sales Tax Incentives 3. Public contribution of off-site improvements 4. Expedited permitting process 5. Marketing and Promotional assistance 6. Assistance in obtaining gov. grants and tech. assistance 7. Zoning assistance E. Criteria Used 1. Number of jobs created 2. Types of Jobs 3. Tax Incentive for specific term not to exceed 10 years F. Marketing Program 1. 9 items listed as their marketing strategies 19. Sahuarita A. The town of Sahuarita does not have an ED policy. 21. Scottsdale A. The City of Scottsdale does have policies as they relate to economic development incentives. 1. Qualifiers a. Generally performance based sales tax rebates tied to public infrastructure. b. Typically 50% or less of new tax generated as earned. c. Rebate is capped for specific time — 5 — 10 years. d. Payback amount and time are calculated in conjunction with developer and 20 year return on investment is prepared for the community. 2. Other incentives offered a. Expedited review and permitting. b. Assist with banking and relocation services. c. Tax exempt financing through IDA. 22. Sedona A. The city of Sedona does not have an ED policy. 23. Surprise A. The City does have a formal policy and guidelines. 1. Business Criteria a. Recipient's operation will improve or enhance economic welfare of the City. b. Benefits outweigh costs according to fiscal impact model. c. Use of incentives will expand economic development. d. Recipients operation will not disproportionately expend natural resources or burden public infrastructure and services. 2. Possible Incentives a. Subsidizing the cost of public infrastructure improvements including but not limited to: streets, water/sewer extensions, drainage improvements, sidewalks, lighting, landscaping and parking structures/districts. b. Leveraging Federal and State economic development grants, low interest loans and job training programs. c. Industrial Development Bond Financing. d. Waivers or reductions in fees and charges. e. Assessment district financing. f. Rebate of fees, City sales tax revenues and/or expenditures public funds. g. Expediting plan review. h. Other assistance as may be appropriate. 3. Targeted Development Priorities a. Attraction, retention, expansion projects which retain or create municipal sales tax, including but not limited to tourism and retail. b. Attraction, retention expansion projects which create jobs including manufacturing and research. c. Attraction, retention or expansion projects located in Original Town Site. d. Development expected to generate, within a prescribed time, revenues exceeding City's financial participation. e. Businesses that advance the City's ED Strategy. 23. Wickenburg A. Town does not currently have policies. However are reviewing and would like a copy of our report. 24. Wilcox A. City is in process of modifying its local excise tax ordinance by reducing the tax from 3 to 2 percent on point of sale purchases over $2,500. Other incentives being discussed. Currently are in an Enterprise Zone to qualify for additional tax benefits. 25. Yuma A. The City has adopted an ED Policy by Resolution R2000-88. 1. Strategy Objectives a. City will target stable, year-round business with emphasis on quality jobs. Quality job is one that pays a wage (fringe unburdened) equal to or greater than the current Per Capita Income Level as computed by the ARES and provides health benefits at 50% or more. b. Support Retention and Expansion. c. City should be primary location of industrial, commercial and retail. d. City should be location of major State, County & Federal, research educational or similar. e. Support large private commercial recreational and tourism ventures. f. Support redevelopment of designated redevelopment areas, neighborhood redevelopment and infill. g. Support Arizona's Partnership for New Economy and it's premise of global markets, technological advances, organizational innovations and competitive relationships. Support development of telecommunications frastructure. h. Support compact, orderly development incorporating clean industry that allow short commute times, alternate transportation and reduced automobile use. i. City's efforts are consistent with General Plan. COMMUNITIES REPORTING BY PHONE CONTACT: 1. Avondale 2. Benson 3. Buckeye 4. Payson ATTACHMENT 2 4.1 IA C1.. W WW IA In 40) 401 in In In (n (n VI IA 1/1 401 4/1 qi. E 03) .> w w a) cu cu WW w cu www cu CU in 1-i 0 = u- to ›• >" ›• >" >" >" >. >. >• >" >- u N RI Z co N 4 .4 a) = 4a V = 4.1 .... 1. c .C1 IA W 0.• L. u) 1/1 40) IA Ul IA IA IA IA Ul IA VI (0) Ul (0) IA WWWWWWWWWWWWWWWW 4:1 >- >- >- >- >- >- >- >- ›- >- 0 1-4 0 1-I IA 0 n ii'l E In - c = U. U) 4) in C W 0 = 0. W CP. 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O W ri N VI qt irl CI N 00 010rINMVIA ‘ONC001 '6 In ri 1.4 rl irl rl rl rl ri rl ri M ATTACHMENT 3 CASA GRANDE, ARIZONA Greenspoon, Karen From: Larry Rains[LarryR@ci.casa-grande.az.us] Sent: Tuesday, November 23, 2004 5:34 PM To: Greenspoon, Karen Cc: Jim Thompson Subject: Response to Request for Information 7fir. Incentive rdinance.pdf(367 K Karen, Our City Manager, Jim Thompson asked that I respond to your email. Because you are requesting this information ASAP, I am attaching a copy of the City of Casa Grande Incentive Ordinance. You will see the criteria section that outlines what we can do. If the economic impact of a development warrants incentives, we traditionally have done things like waived permit fees, plan review reviews, offered construction sales tax rebates and occasionally have built new infrastructure. We do not waive or reduce impact fees. We believe this violates State Statute. You will also see that our Ordinance is for commercial and industrial development. It currently is not available to retail. We have used this Ordinance to consider incentives for existing businesses that are expanding. Once again, we use the economic impact of the project to determine the incentive. This is certainly a "thumb nail" of what we do in Casa Grande. I would be glad to discuss the concept with you in greater detail if you so elect. I can be reached at 520-421-8644. Good luck on your research. I would be very interested in hearing what you find out from the other communities you have solicited. Respectfully, Larry D. Rains Finance Director City of Casa Grande This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 1 ORDINANCE NO. 1397.07.01 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE CITY OF CASA GRANDE, ARIZONA,AMENDING THE CITY CODE OF CASA GRANDE BY ADDING TITLE 7 ENTITLED ECONOMIC DEVELOPMENT;AND BY ADDING CHAPTER 1, ENTITLED ECONOMIC DEVELOPMENT INCENTIVES; AUTHORIZING THE EXPENDITURE OF PUBLIC FUNDS AND REBATE OF CERTAIN FEES AND CITY TAXES WHICH WILL ENHANCE THE ECONOMIC WELFARE OF THE CITY'S INHABITANTS;AND ESTABLISHING CRITERIA FOR SUCH EXPENDITURES OR REBATES OF PUBLIC FUNDS, PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS,A.R.S. § 9-500.11 authorizes the City Council to expend public funds to assist in the creation or retention of jobs in the City and enhance the economic welfare of the inhabitants of the City: WHEREAS,the City Council has determined that it is in the best interests of the City to further economic development in the City and to authorize expenditure of funds for economic development, consistent with the criteria set forth herein. NOW, THEREFORE,BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF CASA GRANDE,ARIZONA, as follows: Section 1: Enactment of Economic Development Incentives Ordinance Title 7, entitled Economic Development is hereby added to the Casa Grande Municipal Code and Chapter 1 entitled Economic Development Incentives is hereby added to the Casa Grande Municipal Code which shall read as follows: CHAPTER 1 - ECONOMIC DEVELOPMENT INCENTIVES Section 7.01.001 Definitions Unless otherwise indicated in this Title 7, Chapter 1,terms in this chapter shall have the following meanings: A. Commercial projects which are eligible for the incentives or enhancement established in Section 7.01.002 do not include retail projects. B. "Retail" shall mean a commercial enterprise which sells tangible goods to a buyer who is the end user or consumer. C. "New industrial or commercial project" shall mean an enterprise which is different in function from the land use or enterprise in the location being considered for incentives or enhancements. D. Expansion of an"existing industrial or commercial project" shall mean an increase in the land, buildings, equipment or machinery of an enterprise which is the same in function as the existing land use or enterprise in the location being considered for incentives or enhancements. E. "Compliance period" shall mean the time period specified in the agreement between the recipient and the City during which the recipient shall comply with the Section 7.01.004 criteria on which it supported its eligibility for the incentives or enhancements in Section 7.01.002. The compliance period may be longer than the time period for payment of the incentives or enhancements to the recipient. Section 7.01.002 Authorization to Rebate Fees, City Sales Tax Revenues and Expend Public Funds in Furtherance of Economic Development in the City The City may encourage economic development and authorize the rebate of certain fees, except development fees enacted pursuant to the authority of Arizona Revised Statutes(A.R.S.) §9-463.05, taxes or provide construction of off-site public improvements including,but not limited to,the following: A. Any or all fees required to be paid in connection with the construction or expansion of a commercial or industrial project, including,but not limited to,plan checking fees, inspection fees, and sewer connection fees; B. General funds to pay the costs of construction of off-site public improvements which the City determines are required to be constructed in connection with a commercial or industrial project. C. All or a portion of the sales tax revenues levied, generated and received by the City as a result of the construction of a new, or expansion of an existing, commercial or industrial project unless such sales tax revenues are subject to a prior senior pledge. D. All or a portion of the property tax revenues levied,generated and received by the City as a result of the construction of a new, or expansion of an existing,commercial or industrial project unless such tax revenues are subject to a prior senior pledge. Section 7.01.003 Council Approval or City Manager Approval If the aggregate of the fees,costs of the City-constructed improvements and sales or property tax rebate is more than $75,000,the City Council must approve any incentive in this Section 7.01.002. If the aggregate of the fees, costs of City-constructed improvements and sales or sales tax rebate is less than $75,000, the City Manager may approve any incentive in this Section 7.01.1. Section 7.01.004 Criteria A. The City shall not grant the incentives authorized in Section 7.01.002 without finding the potential recipient meets the following: 1. The rebating of the fees, expenditure of the funds or rebate of City sales tax revenues will assist in the creation or retention of a significant number of jobs in the City with the average hourly wage for non-exempt positions (pursuant to the FSLA) of at least 75%higher than the federal minimum hourly wage and wherein the recipient pays at least 25%of it average hourly wage for non-exempt positions in benefits; and 2. New eligible industrial and commercial projects must expend a minimum of One Million, Five Hundred Thousand dollars ($1,500,000.00) in equipment,machinery, land, and building improvements as its initial investment at a single location; or expansions of existing eligible industrial and commercial projects must expend a minimum of Seven Hundred,Fifty Thousand dollars ($750,000.00)in equipment,machinery, land, and building improvements as its expansion investment at a single location. B. The City may also consider the following factors in determining whether the potential recipient should be granted incentives: 1. Economic development will be furthered by rebating the fees, expenditure of funds or rebate of City sales tax revenues. 2. The recipient's operation will otherwise improve or enhance the economic welfare of the inhabitants of the City. 3. The recipient's operation will not disproportionately expend natural resources or public infrastructure and services, such as transportation infrastructure or public safety services. 4. The benefits the City will receive from the commercial or industrial project outweigh the economic costs to the City, as demonstrated through the City's fiscal impact analysis model. Ordinance 1397.07.01 (p.2 of 4) CAVE CREEK, ARIZONA Greenspoon, Karen From: Carrie Dyrek [cdyrek@cavecreek.org] Sent: Wednesday, November 24, 2004 11:48 AM To: Greenspoon, Karen Subject: request for information Karen, I received an email from the Town Manager asking me to respond to you. The Town of Cave Creek does not have any written or formal policies or incentives in place. However, the Town Council has considered waiving fees on a case by case basis, but this is very rare. For example there were a couple of not-for-profit agencies that requested some fees be waived such as Habitat for Humanity. Most recently the local chapter of the American Legion was granted a waiver of fees because they deeded land to the Town for streetscape and the value of the land far exceeded the fees. I hope this is helpful. Carrie Carrie A. Dyrek, CMC Town Clerk Town of Cave Creek 37622 N. Cave Creek Rd. Cave Creek, AZ 85331 (480) 488-6613 direct (480) 488-2263 facsimile This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 1 CHINO VALLEY, ARIZONA Greenspoon, Karen From: Bill Pupo [bpupo@chinoaz.net] Sent: Thursday, November 25, 2004 6:51 PM To: Greenspoon, Karen Subject: Re: Request for information Karen, We are in thep rocess of discussing these types of policies so I would appreciate a copy of your work. TY Bill Original Message From: "Greenspoon, Karen" <kgreenspoon@orovalley.net> Date: Tue, 23 Nov 2004 10: 45:13 To:<ksimpkins@ajcity.net> Cc:<ryandow@cityofbisbee.com>, <creynolds@buckeyeaz.org>, <citYmg r@bul lheadcity.com>, <blee@ cva z.org>, <j on@carefree.org>, <j imt @ ci.cas a- grande.az.us>, <townmanager@cavecreek.org>, <Garrett.newland@ci.chandler.az.us>, <bpupo@chinoaz.net>, <michael.ortega@douglasaz.gov>, <bjcornwall@cityofelmirage.org>, <dwilcox@ci. flagstaff.az.us>, <himanshu.patel@town. florence.az.us>, <tpickering@fh.az.gov>, <lfarmer@gilabendaz.org>, <Gregt@ci.gilbert.az.us>, <lvasey@glendaleaz.com>, <mvyas@cableone.net>, <bdalke@ci.goodyear.az.us>, <flarson@cybertrails.com>, <rswenson@ci.kingman.az.us>, <citymanager@ci.lake-havasu-city.az.us>, <sbrackney@litchfield-park.org>, <mreuwsaat@marana.com>, <rbuss@cityofmaricopa.net>, <Dick.mulligan@cityofinesa.org>, <rpattison@cityofnogales.net>, <townmanager@cityofpage.org>, <tmartinsen@ci.paradise-valley.az.us>, <edev@ci.parker.az.us>, "Gould, Bob" <BGould@ci.payson.az.us>, <stevep@peoriaaz.com>, <frank. fairbanks@phoenix.gov>, <kudall@ci.pinetop- lakeside.az.us>, <citystaff@cityofprescott.net>, <ltarkowski@pvaz.net>, <cseelhammer@queencreek.org>, <rjj@ci.safford.az.us>, <stahle@ci.sahuarita.az.us>, <jdolan@scottsdaleaz.gov>, <elevitt@ci.sedona.az.us>, <mmaag@ci.show low.az.us>, <cpotucek@ci.sierra-vista.az.us>, <jim.rumpeltes@surpriseaz.com>, <Will_manley@tempe.gov>, <sdille@ci.wickenburgl.az.us>, <gdavidson@willcoxcity.org>, <dwells@ci.williams.az.us>, <cowdevsvc@cybertrails.com>, <bob.wagner@ci.yuma.az.us> Subject: Request for information Good Morning: The town of Oro Valley is in the process of updating it's Community Economic Development Strategy and Guidelines. The Council has requested a report comparing our policies and procedures with others in the state. If you will, would you provide us with your current policies as they apply to the following: What incentives do you currently offer? Tax rebates? Infrastructure? Reduced Impact Fees? or any other. What industries (including retail) are specifically targeted for incentives? Do you offer the same or other incentives for existing businesses? Typically, we are under a time restraint on this report and would appreciate any information that you could provide at your earliest convenience. My email address is: kgreenspoon@orovalley.net. Thanks so much for your cooperation and have a great holiday! ! ! Karen Greenspoon Economic Development Specialist 1 FOUNTAIN HILLS ARIZONA Greenspoon, Karen From: Burton, Gracie [GBurton@fh.az.gov] Sent: Monday, December 06, 2004 9:10 AM To: Greenspoon, Karen Subject: Economic Development Incentives Karen- The City Manager forwarded your email to me regarding incentives. I know this response is late but I wanted to let you know the Town of Fountain Hills currently have no incentives in place. I would be very interested in what information you receive and how you blend it into a plan for your community. Good luck with your project, it sounds like it would be interesting work. Gracie Burton, CEcD Economic Development Coordinator Town of Fountain Hills 480-816-5104 This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 1 GILBERT, ARIZONA Message Page 1 of 2 Greenspoon, Karen From: Greg Tilque [gregt@ci.gilbert.az.us] Sent: Tuesday, December 14, 2004 3:41 PM To: Greenspoon, Karen Subject: RE: Request for information Karen, offer permit fee waivers (sometimes Sorry this has taken so long. We do not offer any reduced impact fees. We only partial waivers), sales tax rebates, construction tax rebates and expedited review on a case by case basis. we have a policy in place that allows the Town Manager to offer up to $75,000 in incentives (any of the above) without prior Council approval. Anything over that must get Council approval before being offered. There are no hard and fast rules on who gets the incentives but retail is one and, all things being equal, our targeted business clusters may get stronger consideration. I hope that helps. Greg Original Message From: Greenspoon, Karen [mailto:kgreenspoon@orovalley.net] Sent: Tuesday, November 23, 2004 10:45 AM To: ksimpkins@ajcity.net Cc: ryandow@cityofbisbee.com; creynolds@buckeyeaz.org; citymgr@bullheadcity.com; blee@cvaz.org; jon@carefree.org;jimt@ci.casa-grande.az.us; townmanager@cavecreek.org; Garrett.newland@ci.chandler.az.us; bpupo@chinoaz.net; michael.ortega@douglasaz.gov; bjcornwall@cityofelmirage.org; dwilcox@ci.flagstaff.az.us; himanshu.patel@town.florence.az.us; tpickering@fh.az.gov; Ifarmer@gilabendaz.org; Gregt@ci.gilbert.az.us; Ivasey@glendaleaz.com; mvyas@cableone.net; bdalke@ci.goodyear.az.us; flarson@cybertrails.com; rswenson@ci.kingman.az.us; citymanager@ci.lake-havasu-city.az.us; sbrackney@litchfield-park.org; mreuwsaat@marana.com; rbuss@cityofmaricopa.net; Dick.mulligan@cityofmesa.org; rpattison@cityofnogales.net; townmanager@cityofpage.org; tmartinsen@ci.paradise-valley.az.us; edev@ci.parker.az.us; Gould, Bob; stevep@peoriaaz.com; frank.fairbanks@phoenix.gov; kudall@ci.pinetop-lakeside.az.us; citystaff@cityofprescott.net; Itarkowski@pvaz.net; cseelhammer@queencreek.org; rjj@ci.safford.az.us; stahle@ci.sahuarita.az.us; jdolan@scottsdaleaz.gov; elevitt@ci.sedona.az.us; mmaag@ci.show-low.az.us; cpotucek@ci.sierra-vista.az.us;jim.rumpeltes@surpriseaz.com; Will_manley@tempe.gov; sdille@ci.wickenburgl.az.us; gdavidson@willcoxcity.org; dwells@ci.williams.az.us; cowdevsvc@cybertrails.com; bob.wagner@ci.yuma.az.us Subject: Request for information Good Morning: The town of Oro Valley is in the process of updating it's Community Economic Development Strategy and Guidelines. The Council has requested a report comparing our policies and procedures with others in the state. If you will, would you provide us with your current policies as they apply to the following: What incentives do you currently offer? Tax rebates? Infrastructure? Reduced Impact Fees? or any other. What industries (including retail) are specifically targeted for incentives? Do you offer the same or other incentives for existing businesses? Typically, we are under a time restraint on this report and would appreciate any information that you could provide at your earliest convenience. My email address is: kgreenspoon@orovalley.net. 12/15/2004 GOODYEAR, ARIZONA Greenspoon, Karen From: CSpiegel@goodyearaz.gov Sent: Monday, December 13, 2004 1:11 PM To: Greenspoon, Karen Subject: Re: Request for information... Lit Incentives ,mmaryReport.doc Karen-- Our policies are outlined in the General Plan and Goodyear Employment Corridor Study. Basically, the policy is that incentives are done on a case by case basis depending on need, aesthetics, etc. I've attached a matrix of what we've done in the past. (See attached file: Incentives Summary Report.doc) Corri Spiegel, Acting Director City of Goodyear Economic Development PO Box 5100, 190 N. Litchfield Rd. Goodyear, AZ 85338 623-882-7901 direct 1623-693-0057 mobile 1623-932-3028 fax mailto:cspiegel@goodyearaz.gov "Successful is the person who has lived well, laughed often and loved much, who has gained the respect of children, who leaves the world better than they found it, who has never lacked appreciation for the earth's beauty, who never fails to look for the best in others or give the best of themselves. " Brian Dalke To: cspiegel@ci.goodyear.az.us 12/13/2004 11:41 cc: Sandy Bell/Goodyear@Goodyear AM Subject: Request for information. . . I thought we provided something to Jeff Weir months ago. Regardless, please follow up. Thanks. Brian Dalke, CEcD Deputy City Manager, Administrative Services City of Goodyear P.O. 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Pa = C Vf O �' (D C 0 O co CL O C rt 3 (D -1 (D P -z (D QQ S 3 (D (� �< -10... u04. =X rt ? (DA. •.F,' _ -t, rt (D C= 3 -a"; K.' (-)og = rD 'A F) 1- C rt rtf DC r-t S C n = p, �t C .< CL w C (D a ct cn 3 P' 0 (D rt = 0 co 5' fD -a 0:(.1 (D n N (D CT R (D w - N -, C1. 0 rt KJNGMAN, ARIZONA Page 1 of 1 Greenspoon, Karen From: Dennis Roberts [droberts@ci.kingman.az.us] Sent: Tuesday, November 23, 2004 12:39 PM To: Greenspoon, Karen Subject: economic incentives Karen: The City of Kingman does not offer any incentives (tax rebates, reduced impact fees, etc.)for any development or redevelopment project. On a couple of occasions the City has participated in the cost of water and/or sewer line construction, if the particular project has an overall benefit to the system and not just the project being developed. Dennis E. Roberts Director of Community Development .................................................. This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division • 11/23/2004 LAKE HAVASU CITY, ARIZONA Message Page 1 of 2 Greenspoon, Karen ................................................................................................................................................................................................. From: Tim Ernster[ErnsterT@ci.lake-havasu-city.az.us] on behalf of Internet-CityManager [CityManager@ci.lake-havasu-city.az.us] Sent: Monday, December 13, 2004 1:21 PM To: Greenspoon, Karen Subject: RE: Request for information... Hello Karen. Most of our economic development activities are handled by a non-profit organization in the City. However, in general terms, our incentives are performance based, and can be in the form of a sales tax rebate. Also, the City will participate in offsite improvements depending on the cost/benefit analysis regarding the value of the development to the community. I recommend you contact Glendale, Arizona if you haven't already to discuss their incentive policies. Tim Ernster Tim Ernster, City Manager Lake Havasu City, Arizona Office - 928-453-4141 Cell - 928-208-7877 Original Message From: Greenspoon, Karen [mailto:kgreenspoon@orovalley.net] Sent: Monday, December 13, 2004 10:31 AM Subject: Request for information... Good Morning: On November 23rd, I sent out a request for information regarding your policies on incentives for economic development. This is a request from our Council in order to update our policies and guidelines. We have gotten quite a few good responses but feel that your community is key in the equation and would like to be able to include your information in our report. We will be happy to share this information with any of you when completed. Your cooperation would be greatly appreciated. If you have any questions regarding this report, please feel free to contact me at 520-229-4732. Thank you, Karen Economic Development Specialist Town of Oro Valley (520) 229-4732 12/13/2004 MARANA, ARIZONA Page 1 of 1 Greenspoon, Karen From: Dick Gear[dgear@MARANA.COM] Sent: Thursday, December 02, 2004 6:49 AM To: Greenspoon, Karen Subject: Assistance to Locates Karen, The Town of Marana does not have a formal policy of what form financial assistance, if any, will be given any company. This ad hoc method seems the best approach as incoming companies bring different mixes of benefits to the Town with regard to revenues and jobs. Good luck in your efforts. Dick Gear This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 12/02/2004 MESA, ARIZONA Greenspoon, Karen From: Micah.Miranda@cityofmesa.org Sent: Friday, December 10, 2004 2:43 PM To: Greenspoon, Karen Cc: Mike.Hutchinson@cityofinesa.org; Richard.Mulligan@cityofmesa.org Subject: Request for information CityWide Incentives -Study Se... Karen, Per your request dated 11-23-2004. What incentives do you currently offer? Please see the attached report. One thing note however is that the City of Mesa currently has an application under review by the Arizona Department of Commerce for the creation of a Mesa Enterprise Zone. What industries (including retail) are specifically targeted for incentives? While the City of Mesa does not specifically target specific industries to receive incentives, at the regional level we do target the following clusters in terms of business recruitment: Advanced Business Services, Aerospace/Aviation, Bio, High-tech Electronics and Software. At the local we have a particular interest in recruiting Advance Business Services, Aerospace/Aviation, Education, Health Services and Retail related clusters. Do you offer the same or other incentives for existing businesses? The City of Mesa does not have a formal policy regarding the use of incentives. On a case by case basis every request for incentives is reviewed and then a determination is made as to benefit and need of using an incentive. IfY ou have any questions, or require additional information, please don't hesitate to give me a call. (See attached file: CityWide Incentives - Study Session.doc) Micah Miranda Economic Development Specialist Office of Economic Development 20 East Main Street Suite 200 P.O. Box 1466 Mesa Arizona 85211-1466 480. 644 .3562 Tel 480.644.3458 Fax 800.290.MESA Tel micah.miranda@cityofinesa.org This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 1 /f�/iilN ihigii CITY OF MESA ity Great Peo le li .f CReport Date: October 3, 2000 To: City Council Through: Mike Hutchinson, City Manager From: Richard K. Mulligan, Economic Development Director Subject: Citywide Incentives Purpose and Recommendation This report provides information on economic development incentives for p discussion and review at the Mesa City Council Study Session scheduled for Thursday, October 12, 2000. Background MEGACORP staff hasp repared two documents relevant to the issue of economic development incentives: 1. Discussion Paper (September, 2000) — Citywide Incentives: Includes background information, review of selected incentive programs, criteria for granting incentives, legal issues, policy options and policy recommendations. 2g . Growth Management Efforts: Selected pages from ASU Morrison Institute for Public Policy report, Hits and Misses: Fast Growth in Metropolitan Phoenix. p Includes survey data on growth management tools (i.e. infill incentives). If ou have anyquestions, or require additional information, please don't hesitate Y to give us a call. Richard K. Mulligan Mike Hutchinson Economic Development Director City Manager DISCUSSION PAPER September, 2000 CITYWIDE INCENTIVES MEGACORP actively promotes and preserves the economic strength of the City of Mesa through actions focused on business recruitment, expansion and retention, international trade, and small and minority business development in collaboration with numerous strategic alliance partners. In order to make recommendations regarding how the City may want to approach the issue of economic development incentives,this memo is divided into five sections: I. Background II. Review of Selected Incentive Programs III. Criteria for Granting Incentives IV. Legal Issues V. Policy Options VI. Policy Recommendations I. BACKGROUND Mesa is approximately 73 percent built out. The most recent data available shows that Mesa's labor force consists of approximately 194,697 residents. As portrayed in the Greater Phoenix Fact Book, Mesa has 137,998 jobs, which results in an estimated jobs/labor force ratio of 0.7:1. Overall, Mesa provides the fourth highest number of jobs in the Greater Phoenix metropolitan area. Only Phoenix, Tempe and Scottsdale provide more employment opportunities. Some of the reasons for Mesa's excellent business climate are its highly skilled and educated workforce, affordable housing, top-rated school systems, low labor-related costs, explosive growth, pro-business government and many other assets. This memo on economic development incentives covers overlapping areas discussed in Greg Marek's memo on City Incentives in Redevelopment Projects. His memo is an assessment of potential incentives and their ability to provide"gap financing"for a redevelopment project(see attachment"A"). 2 II. REVIEW OF SELECTED INCENTIVE PROGRAMS State of Arizona Property Tax Incentives and Credits • Personal Property Exemptions - For all commercial and agricultural personal property, the first $50,000 of property at each business location is exempt from property taxes. • Accelerated Depreciation- In addition to the exemption, the State has created an aggressive accelerated depreciation schedule for commercial and agricultural personal property. The schedule covers a four-year period and applies to the scheduled depreciated value for each item over that period. In year one, the accelerated rate is 35 in ercent; year two—51 percent; in year three—67 percent; and in year four— 83 p � percent of the scheduled depreciation value. • Foreign Trade Zones -Foreign trade zones provide economic incentives to companies doingbusiness in international markets. This type of zone allows businesses to store, repackage, display, and assemble goods duty-free and without any customs formalities. In addition, Arizona is the only state that provides an 80 percent reduction in real andp ersonal property taxes for companies that qualify for foreign trade zone designation. • Military Reuse Zone -Businesses located in a military reuse zone that provide aviation and aerospace services or manufacturing may use an assessment ratio of 5 percent on all real and personal property, instead of the standard 25 percent. Sales Tax Incentives and Exemptions • Personal Property - Machinery, equipment or other personal property that is used in manufacturing, telecommunications, health care, or other commercial operations is exempt from sales tax. Similarly, chemicals used directly in the production process of a commercial printing operation are exempt from tax. • Commercial Leases - There is no tax on commercial leases in Arizona. • Alternative Fuel Vehicles - The purchase or lease of an alternative fuel and the purchase of equipment used to convert a conventional vehicle to alternative fuel use are exempt from sales and use tax. • Pollution Control Devices - The purchase of machinery or equipment used to control pollution in order to meet or exceed government pollution standards is exempt from sales and use tax. 3 • Motion Picture Production Tax Refund - Motion picture companies that incur expenses of more than$1,000,000 or commercial advertising production companies with expenses of more than$250,000 in Arizona within a 12-month period in connection with filming or production may apply for a refund. The state will refund 50 percent of the sales tax on these expenses. • AccountingAllowance - A business that pays transaction privilege tax may claim a tax credit of 1 percent of the amount of tax due, not to exceed $10,000 in any calendar year. • MilitaryReuse Zones - Military reuse zones include sales tax incentives by allowing the prime contractor to deduct the sales tax amount from the gross income received from a contract entered into for the construction or alteration of any building or road thatp rovides aviation or aerospace services, and that is located in a military reuse zone. • Cleanrooms - Cleanroom installation expenditures and related machinery and equipment purchases are exempt from sales and use taxes. Corporate Income Tax Incentives & Credits • Construction Materials - A tax credit can be claimed for 5 percent of the purchase price of construction materials used to build a new facility or expand an existing facility. The facility must be primarily used for manufacturing, refining, mining, or research and development, and the total cost of construction must be at least $5 million. • Recycling Equipment - Businesses placing recycling equipment in service after y December 31, 1992 may claim an income tax credit equal to 10 percent of the installation cost. This credit may not exceed the lesser of 25 percent of the total income tax liability for that year or $5,000. The credit is in lieu of any deductions for depreciation. • Research and Development Expenses - Corporations may claim a credit for qualified expenses associated with research conducted in Arizona, including research conducted at a state university and funded by the company. Credit may be up to $100,000 in the first year, $250,000 in the second year, $400,000 in the third year, and $500,000 in the fourth year credits are claimed, and thereafter. The program allows a 15-year carry-forward. • Environmental Technology Facilities - Income tax credits can be claimed for expenses incurred in constructing a qualified environmental technology facility. The credit is equal to 10 percent of construction costs including land, improvements, machinery and equipment. The credit may not exceed 75 percent of the taxpayer's liability for that year. 4 • Pollution Control Equipment- A corporation may claim a tax credit equal to 10 percent of the cost to purchase real or personal property used to control or prevent pollution. The maximum credit is $500,000 per year. • Alternative Fuel Vehicles and Equipment- A credit for the purchase or lease of an alternative fuel vehicle or for conversion equipment may be claimed in lieu of a subtraction from income. The amount of the credit is $2,000 or the price difference between an alternative fuel vehicle and a conventional vehicle. There is also a credit for obstructing and operating alternative fuel stations of 50 percent(up to $400,000) if the station is accessible to the general public, or 25 percent of costs (up to $200,000) if the station is private. • Agricultural Pollution Control Equipment - A taxpayer may claim a credit for 25 percent of the cost of agricultural pollution control equipment up to a maximum of $25,000 annually. The taxpayer must be engaged in agricultural production, livestock,horticulture, viticulture, or floriculture. • Agricultural Water Conservation Systems - A tax credit can be claimed for 75 percent of qualifying expenses on the purchase and installation of an agricultural water conservation system. This credit is in lieu of itemized deductions for such expenses. • Defense Contractors - Qualified defense contractors may claim tax credits for net employment increases under defense related contracts or net employment increases from transferring jobs from exclusively defense related activities to commercial activities. • Military Reuse Zones - Businesses who are engaged in manufacturing or assembling aerospace products and located in a military reuse zone can claim credits for new job creation within the zone. Enterprise Zones • A business located in an enterprise zone can claim an income tax credit for net new jobs created if those jobs meet certain wage and benefit criteria, and 35 percent of the employees in those positions live in an enterprise zone. To qualify, employers must pay at least half of the health benefits for full-time workers, and pay wages of at least the Job Service average wage offer for the County. Employers can deduct 25 percent of taxable wages, up to $500 per employee, in the first year of employment. In the second year they can deduct 33 percent or up to $1,000 per employee, and in the third year they can deduct 50 percent or up to $1,500 per employee. For small manufacturers with less than 100 employees, or less than $4 million in gross receipts, significant property tax abatements apply in enterprise zones. If a business invests at least $2 million in fixed assets, all their real and personal property is assessed using a ratio of 5 percent for five years, instead of the usual 25 percent. 5 This incentive is also available to minority and women-owned businesses in enterprise zones. Four enterprise zones have been established in Greater Phoenix-Mesa. These include parts of the Cities of Chandler, Phoenix, Tempe, and Western Maricopa County. The Western Maricopa zone is very large and includes the following communities: Avondale, Buckeye, El Mirage, Glendale, Goodyear, Peoria, Surprise and unincorporated Maricopa County. No enterprise zone has been established in the City of Mesa due to lack of qualified census tracts which register a local poverty rate at 150 percent of the statewide poverty rate according to the 1990 Census. State Loan and Grant Programs • Commerce and Economic Development Commission(CEDC) Fund—Low-interest fixed-asset loans. • Economic Strength Project Grants—These grants, which are available to cities and counties, can be used to pay for the cost of road improvements that may be required for a new company or project. Grants are awarded based on the economic impact of applicant projects. • Job Training Assistance Program—Matching funds (up to 75%)to businesses for worker training. • Private Activity Bonds—Available for industrial and manufacturing facilities and equipment, Private Activity Bonds are issued by industrial development authorities on behalf of local governments for the benefit of private users. The bonds become the obligation of the private user, however the interest on the bonds is exempt from federal income tax for most users. A manufacturing company can issue bonds up to $10 million with the jurisdiction of the issuing Industrial Development Authority. The allocation of monies is handled through a lottery on the first business day of the year. The allocation is good for 60 days with a 60 day extension. • Revolving Energy Loans for Arizona(RELA)—This loan fund is designed to promote and assist energy-related companies and projects. All non-profit organizations or companies that purchase energy conserving equipment for use in their operations are eligible. In addition, manufacturers of energy-conserving products are eligible. Loans range from $10,000 to $500,000, with a maximum of 60 percent of total project cost. The loans offer a low 5 percent interest rate and a variable term depending on the rate at which energy savings occur. Projects that have been financed through this program range from window tinting and light fixture replacement to major equipment retrofits for heating and cooling systems. 6 Educational Institutions • Workforce recruitment and training programs run by the Maricopa Community College District (MCCD), frequently funded by the State's Job Training Program, g listed above. • diate in-state tuition from State universities and Maricopa Community Colleges Imine to all new Arizona residents who have moved to the state as a result of a business relocation. City of Mesa Because companies view incentives as offered in terms of services and dollars, we have divided theCity's Ci 's incentives into two categories: Mesa's Services, and Mesa's Financial Incentives. a. Mesa's Services • Development Services One-Stop Center. • MEGACORP confidential consulting services (i.e. site location assistance, business calls, communication coordination between City departments, and liaison to economic development programs and services throughout Arizona). b. Mesa's Financial Incentives • CityShare Financial Participation—Financing of certain public infrastructure that . entails oversizingfor the purpose of meeting regional as well as local needs. Oversizing may be required for the purpose of ensuring that the City of Mesa's minimum standards for health, safety, and welfare are maintained (i.e. National Computer Systems, Inc.). • i n-Trade Zone#221 —Companies within the foreign-trade zone gain a financial Fore g p global marketplace. Foreign and domestic goods can be brought into the edge in the p zone to be manufactured, stored, inspected, repackaged, repaired and assembled withoutpaY ment of customs duties or taxes. No duties are paid if the final product is exported outside the United States. Duty is levied only when goods are transferred from the zone into the US market, and a company may pay either the duty on imported components or the finished product, whichever is lower. Companies within zone mayqualifyfor an 80percent reduction in property tax. There is a general- purposethe . zone located at Williams Gateway Airport; companies wanting foreign-trade zone status for its own plant or facility, or when the existing general-purpose zone cannot accommodate the company's proposed activity may apply for subzone status. • Land write-downs (i.e. Sheraton Mesa Hotel). 7 • Planningand building permit fee waiver or reduction (i.e. United Technologies Corporation- Hamilton Standard Division, Olin Microelectronics). • Private Activity Bond issuance (i.e. TRW Vehicle Safety Systems, Valley Lutheran Hospital). • Property/excise tax reduction or abatement (i.e. proposed Mesa Verde Project)— Government Property Lease Excise Tax (GPLET) legislation provides the City of p Mesa with the ability to exempt business/developments from payment of a portion of thero erty tax for a period of eight years (property tax abatement on real estate p p improvements)that are located within both the Central Business District and Redevelopment Area. Note: For government properties located only in a Redevelopment Area, the tax rate is 80%of the GPLET. While not a tax abatement per se, this valuation is a significant tax advantage for properties located in a redevelopment area. • Special Improvement Districts (i.e. East Hampton Avenue— Superstition Springs Business Park). • Sales tax rebates/reimbursements related to infrastructure financing (i.e. Superstition Springs Mall). Greater Phoenix-Mesa Municipalities The following table shows, by selected municipality, some of the incentives which have been, or would be considered for qualifying companies. Land Sales Tax Rebates/ Fast Fee Foreign Property Non- Write- Reimbursement Track Waivers Trade Tax IDA Downs for Infrastructure Permits Zone Abatement Loans Improvements Chandler x x x Glendale x x x x x x Gilbert x x x x x Mesa x x x x x x Phoenix x x x x x x Scottsdale x x x x x x Tempe Note: Consideration of property tax abatements appears to be limited to redevelopment areas through the use of the GPLET legislation. Although technically available for redevelopment, this incentive is not uniformly offered by these municipalities. This data indicates that Mesa, compared to other Phoenix-Mesa area cities, offers relatively similar types of incentives. 8 III. CRITERIA FOR GRANTING INCENTIVES Greater consideration for City of Mesa economic development incentives might be given to firms that meet one or more of the twelve criteria listed below. For example, a firm that met seven criteria would have a higher probability of receiving financial incentives than a firm that met three of the following criteria. Firms that may receive incentives: A) Are within the City's targeted industries. The industries listed below, with the exception of the last category, are targeted for three major reasons: 1) They have significant concentrations of higher-paying jobs; 2) They build on Mesa's current economic base; and 3) They promote economic diversification. The last category, unique retail and hotel opportunities, was targeted not because of high-paying jobs, but rather because of its positive impacts on the City's privilege and bed tax revenues. Category: Manufacturing Examples: Primary Metal Manufacturing Fabricated Metal Product Manufacturing Machinery Manufacturing Computer and Electronic Product Manufacturing Electrical Equipment, Appliance, and Component Manufacturing Transportation Equipment Manufacturing Category: Transportation and Warehousing Examples: Air Transportation Support Activities for Transportation Category: Broadcasting and Telecommunications Examples: Radio and Television Broadcasting Cable Networks and Program Distribution Telecommunications Information Services Data Processing Services Category: Educational Services Examples: Elementary and Secondary Schools Junior Colleges Colleges, Universities, and Professional Schools Business Schools and Computer and Management Training Technical and Trade Schools Other Schools and Instruction 9 Category: Health Care and Social Assistance Examples: Offices of Physicians Offices of Dentists Offices of Other Health Practitioners Outpatient Care Centers Medical and Diagnostic Laboratories HMO Medical Centers Hospitals Category: Unique, sustainable and regional retail and hotel opportunities. Examples: Superstition Springs Mall B) Pay a significant number of their workers above the Maricopa County average wage,which is approximately $32,000 annually. These companies would be expected to provide health insurance and other benefit packages that are competitive within their industry. C) Are locating headquarters in Mesa and/or have sufficient name recognition such that their location in Mesa would have significant marketing value. D) Have developed breakthrough technology. E) Have infrastructure needs (water,wastewater, etc.)that are consistent with the City's environmental objectives and capacity. F) Have an international market base. G) Demonstrate a positive economic impact for the City after both benefits and costs are calculated. Confidential company financial information must be made available to the City in order to perform an economic impact analysis. H) Will benefit small business. Although this could include incentives given directly to individual small businesses, it should be recognized that sometimes one incentive package given to a single large company benefits hundreds of small businesses in Mesa that provide goods and services to the company and its employees (i.e. TRW Vehicle Safety Systems). I) Agree to appropriate performance requirements as a condition to receive incentives. Essentially, a business would need to implement plans as stated(i.e. it would make the capital investment and hire the number of employees as they said they would, etc.). If performance requirements were not met, the City would evaluate its options, such as denying future incentives or seeking reimbursement for past incentives, on a case-by-case basis. 10 Although not a performancerequirement,uirement, MEGACORP could serve as a referral q source to encourage businesses to meet with appropriate school officials in order to explore the possibility ossibili of their contributing to local schools with volunteer time and/or in-kind donations. J) Are relocating in redevelopment areas or other strategic areas. Show a significant need for City financial incentives. Similar to "G" above, K) g project p 'ect p ro-forma statements must be made available to the City which would document this need. IV. LEGAL ISSUES Attorney Neal Beets has prepared a memorandum entitled"A Palette of Economic City Atto y Incentives",which provides a perspective on legal risks involved in Development . izin economic development incentives. At issue are legal interpretations of Arizona utilizing P Constitution provisions, which prohibit a public entity in Arizona from making gifts of taxpayer funds or pledging public credit to private persons or entities. Two exceptions to this constitutional prohibition have been made: a) Some Arizona courts have said that public entities do not violate the constitutional Gift Clause if the public taxpayer receives benefits "commensurate"with the size of the public contribution to a non- public enterprise. b) The Arizona Legislature says certain public subsidies (specifically, land write-downs) may be okay for redevelopment projects handled under Title 36 of the Arizona Revised Statutes. Attorney Regardless,the Citynotes that a taxpayer may challenge the legality of using economic development incentives. To the extent the City of Mesa accepts the legal risks outlined in his memorandum, implementation recommendations are offered for consideration (see attachment"B"). V. OPTIONS 1. Mesa'solic could be to continue handling each request for incentives on a p Y "case-by-case" basis. It is important for government to be open for discussion with business, not only because it is good policy, but also because the specifics of each project often lend themselves to customized incentive packages vs. an "off- the-shelf' "case-by-case" approach would be approach. To further define how a applied, the Council may want to consider using specific criteria such as those listed above to determine which projects would be eligible for incentives. 11 2. The City of Mesa's policy towards incentives could simply be "no incentive whatsoever". Mesa has granted incentives in the past, but Council may packages want to consider letting market forces along determine location decisions. 3. Redevelopment areas, the subject of Greg Marek's memo, may be where the City needs to stay focused since Downtown Mesa may require additional attention in the short term to be an economic catalyst for the City in the long-term. 4. Alternatively, Council may not want to grant incentives exclusively to projects in defined geographic areas. For example,National Computer Systems and Superstition Springs Mall will contribute and have contributed to the City's economic diversification and financial health, and it took an incentive package to make those deals happen even though both projects were "new" rather than "redevelopment"projects. In the future, there may be other public benefits from the retention of both existing companies and attraction of new companies outside of redevelopment areas that need to be taken into consideration. 5. In terms of adding specific incentives, Council may want to consider establishing in-fill development incentives, which could be extremely important for neighborhood/commercial revitalization efforts in West Mesa. VII. POLICY RECOMMENDATIONS 1. Staff recommends the continuation of handling incentive requests on a case-by- case basis. In addition, a company would need to meet at least three out of the twelve criteria outlined in pages 8-10 of this memo in order to be considered for financial incentives. Since one of the criteria is location in a redevelopment area, geography would be considered as one factor, but not the overriding one. The result of this case-by-case analysis would be a policy without specific geographic limitations. 2. Staff recommends further analysis and potential development/implementation of in-fill development incentives. This could be addressed by the Neighborhood Services Department in collaboration with Development Services, Finance, MEGACORP, Redevelopment, the Mesa business community and local citizens. 12 Attachment "A" 714 CITY OF MESA Great People,Quality Service! OFFICE OF 20 E. Main Street, Suite 200 Mesa,AZ 85201 (480) 644-3959 MEMO Fax(480) 644-3458 REDEVELOPMENT To: Dick Mulligan, Economic Development Director From: Greg Marek, Redevelopment Director Subject: City Incentives in Redevelopment Projects Date: June 19, 2000 Dick, as requested I have prepared this memo outlining the type of incentives we have used in redevelopment projects. The type of incentive used is determined by the size of the project and the economic impact that the project will generate. Consequently,we will provide incentives on a case-by-case basis and only if they are needed to make a project feasible that the City wants in the redevelopment area. In a way we are using incentives to provide the "gap financing" for the project. We have used the following incentives in redevelopment projects: • Assemble parcels through voluntary purchase or eminent domain • Write down of land acquisition costs • Demolition of buildings • Relocation assistance for businesses, homeowners, and tenants • Payment of water and sewer development fees • Waiver or reduction of building permit fees • Use of the Government Property Lease Excise Tax (GPLET) that allows for abatement of property taxes for eight years and allows for special financing techniques by the developer(e.g., Redevelopment Fund in the Mesa Verde project) • Rebate of sales tax dollars generated by the project • Assess City of Mesa utility rate to projects for specific period of time and require that the developer use City of Mesa utilities for eight years. • Construction and payment of right-of-way improvements, including street improvements and traffic signals • Initiation of required rezonings and use permits • Abandonment of rights-of-way necessary for the project. If you have any questions about this list of incentives, or need additional information, please let me know. 2 Attachment "B" Economic Development Incentives A Palette of I. Introduction What follows is a list of potential economic development incentives. Since this list wasrep ared by a lawyer, it lists the potential incentives p in order of legal risk, from less risky to more risky.' The reason there is legal risk with any incentive is because the Arizona Constitution (unlike the U.S. Constitution and most state constitutions) prohibits a public entity in Arizona from making gifts of Y taxp a er funds or pledging public credit to private persons or entities. Ariz. Constitution, art. 9, § 6.2 In Arizona, that is not the role of government. Despite this categorical prohibition in the Arizona Constitution,two kinds of exceptions have developed. One, some Arizona courts have said thatp ublic entities do not violate the constitutional Gift Clause if theublic taxpayer receives benefits "commensurate" with the size of the p public contribution to a non-public enterprise. E.g., Wistuber v. Paradise Valley Unified School Dist., 141 Ariz. 346, 687 P.2d 354 (1984). The theory here is that there is no "gift" if the public receives benefits commensurate with its contribution. Two, the Arizona Legislature says certain public subsidies (specifically, land write-downs) may be permissible for redevelopment projects in slum and blighted areas handled under Title 36 of the Arizona 1 A financial person, on the other hand, might develop a list based on which incentive is less costly and which is more costly on average for most private projects, and how well the public entity can protect the public investment from the financial risks associated with the proposed private project. An engineer may develop a list in terms of which incentive is most difficult for them to build and successfully operate; a public official may prioritize incentives based on an assessment of how well or how poorly the public may accept the incentive, which in turn may depend on the ratio of private dollars to public dollars invested in the project and the nature of the activities that will take place in the project, including the perceived accessibility and desirability of the private project to the general taxpaying public; whereas, an economic development specialist might organize the list by what he or she thinks are the more appealing and less appealing incentives to most Private Developers based on their particular needs and desires. 2 The exact constitutional language is as follows: "Neither the state, nor any county, city, town, municipality, or other subdivision of the state shall ever give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association, or corporation, or become a subscriber to, or a shareholder in, any company or corporation, or become a joint owner with any person, company, or corporation, except as to such ownerships as may accrue to the state by operation or provision of law or as authorized by law solely for investment of the monies in the various funds of the state." Revised Statutes. The theory here is an amplification of the theory above: the taxpaying public benefits from private re-investment in slum and blighted areas, and if it takes public funds to prime the private pump, then that is permissible so long as the amount of public funds contributed to the private project is not so disproportionate to the public benefits reasonably expected to be produced from the project, so inequitable, or so unreasonable that it amounts to an abuse of discretion by the public body. See Arizona Center for Law in the Public Interest v. Hassell, 172 Ariz. 356, 837 P.2d 158 (App. Div. 1 1991). However, court decisions can and do change, and state legislation does not supersede the categorical constitutional prohibition. Hence, until the Arizona Constitution is amended to repeal or modify the unqualified prohibition against public entities making public gifts to private entities, a public entity in Arizona exposes itself to some legal risk when it subsidizes a private person or entity. A taxpayer may challenge the legality of using public funds to subsidize private developers. A court may strike down the subsidy as an unlawful gift or pledge of public credit under the Arizona Constitution, as a violation of the city's own rules respecting the responsibilities and duties of private developers within that community, or both. This is exactly what happened recently in Phoenix. Phoenix sought to encourage the development of a fourth downtown hotel through financial incentives. The Superior Court concluded that the incentives Phoenix offered violated the gift clause of the Arizona Constitution. The case is on appeal. With these cautions in mind, here is a potential list of financial incentives a municipality may offer, beginning with the less risky incentives from a legal point of view and advancing to the more risky. II. Incentive List 1. Deliberately develop truly public assets (such as street and streetscape improvements, or the construction of other public facilities such as a library, a lake, a convention center, an arts and entertainment center, or a public aquatics facility) close to areas deemed in need of private investment or re- investment. The hope is that the public assets will enhance the area to the point where a Private Developer and lender can privately finance the private project through equity and conventional means and operate successfully. 2. Expedite City zoning, design review, and building permit plan review of a particular private project, and not impose onerous, expensive conditions on the Private Developer. 2 3. Lease City-owned land to Private Developers, thereby saving the Private Developer from paying property taxes on the land, inasmuch asp ublicly-owned land is exempt from real property taxation. [Obviously, a fair market lease rate involves the least amount of legal risk; to the extent a public entity discounts the lease rate from fair market value to zero, or agrees to give the taxpayer-acquired land to the Private Developer after the passage of some specified time, the legal risk increases.] 4. The City bears the expense of acquiring land for a redevelopment project, clears the land for redevelopment, takes care of all relocation costs, and then writes-down the price of the land to the Private Developer in return for the Private Developer's promises to invest a certain amount of private funds in redeveloping the parcel. 5. Provide infrastructure in the form of public streets, public utilities, parking garages, or some combination of the g fore oin that a Private Developer is otherwise required by foregoing our City Code and State Law to pay for with private dollars. 6. Waive or reduce some or all City fees owed by a Private Developer (e.g., impact fees, building permit fees, City utility rates). 7. In conjunction with #3, structure the deal so the City also owns at least bare legal title to the buildings developed by the Private Developer on City-owned land, again to avoid having the Private Developer pay property taxes on the improvements. 8. Provide some percentage of sales tax rebates to the Private Developer, presumably to be derived from the Developer's project ect and plowed back into the private project over some specified time. 9. Public guarantees of private loans to Private Developers, thereby assuring that the private project gets financing. III. Development Contracts If the City chooses to accept the legal risk of providing public incentives for private projects, I advise writing and approving a contract that specifies the public contributions. Most importantly, however, the p contract should specify the Private Developer's contribution in terms 3 of the nature and amount of private investment required to trigger the public investment. The private investment will be in dollars. But it may also be expressed in terms of the number of new, private jobs that must be created for a specified length of time at the project, the average salary that will be paid to these new employees (if representations were made to and relied upon by the City regarding the types of jobs to be created by thep roject), up-graded materials that must be used in the construction of thep roj ect to enhance its beauty, or perhaps special provisions for public access to, or public programming within, the private project. The point is to build a record that the taxpaying public will in fact, not just in sales talk or speculation, benefit in a very real and tangible way from the private project. By building a record, we help protect ourselves in case of a taxpayer lawsuit. In addition, I think a contracting process helps us to develop and document reliable information about the benefits of a project that might dissuade a taxpayer from suing us in the first place. If we know, articulate, and demonstrate the public benefits to be received, maybe taxpayers, too, will be in a better position to understand and accept the public contribution. Moreover, if we are consistent in our approach, it might dissuade developers from promising 'blue sky' when they have no financial ability to fulfill their promises. Indeed, the whole redevelopment dynamic is risky for government entities. Government's financial and legal position in the private project is always behind that of private lenders or other private financial contributors. And even if the government contribution is partly protected by the structure of the transaction itself, the project may still fail and sit empty. See Scottsdale Galleria. Thus, the creditworthiness and track record of the developer is perhaps more important to the success of subsidized redevelopment deals than in other types of contracts. 4 Growth Management Effort-sTREND: Though they are late in coming . and uncoordinated, more efforts to manage growth are a.y. in tht-Tetg..:16.:67thart is commonly thought Local government..growth management prb*:7* . •provrt4itnanagement-bOuriglaries:: • 11:)urisclicuons surveyed in#1994 study reported • • •. • • ••• , . . : • • •• •• • . . • • Phoenix. . ••„:.: . , „ : . . . that they had adopted such ordiriances.-0,. grams are:fasrly",$.4.11.4cspr, 7.-e • :- Morrison Institutesurvey••• revealed surprising . :• , • • :: • ::::•::: • : •• -regId more ••• •.:t than.ainiventiotial• • •• • . • •• •-•, . • • Though:numerous,the growth management: and- - •-jvC7:7P.:!:1"...:-: • attis4i.tiei the 19 reskinding-Corninunitiet•(Sea' •••, wisdom would Morrison-Instituiessor- .: • • •ble . • • 7- : characterizedas universal or . •:: .,.• • •: -;': •• •=: Ta :10), ..;'. • :•,•!' ; -; • veyed the 25 cities and towns:(ItAtiOding Apache. • •: I:: -• The. sur:- Vey''shows )unction) the metrop:olitan area.;and..1vIaricopa :• Only one.m.unicipality't:•Litchfield Park, that several smaller.towns have at many manage . County to better understand thinatdre,:an4 level employs none of the ..b...1e.... . merit tools in place as the larger dties For exampi,e,, •:of local growth:management eforts,Telcounty,•',:::-; . .: Fifteen Jursdsmall on the region% and ta muncipalitirS res,ondaIn cevelotirig the questionnaire.the. fees'.19lie.10:payftiF cost.s.of new grosFth. 5011#iaStrn.::-e:dge,:employs.every.strategy..used :. ..Institu,.*.4sed the ••• • • . • f Policy's description f . • . . • d •:• : • Mesa and Scottsdale. Still. smaller Institute p,• . 9 a sit :• 7 Fourteen-.b.ave mandatory.downtown . . ••••. . . •':•a•tIC growth'•management framework,. . : ; design• .d r . . •: •::: • • Yuritt.int$generally have hav••efewer growth man- agement tools:,than•':their larger :counterparts, Strategies to discourage sprawl and . r'4g!.•••• 1: :T•w4v'e. cities maintain an adequatep'thl• Goodyear e (One and two . compact:urban•'development,. • ..• .- • . . • •. .,..,,:•• . . . . . . : . •'acuities:or . tools respectively) with:Phoenix and Scottsdale • .revitalizationof blighted Or troubled areas :• ::•::::, • . • • • Eight:provide revenue for open:space. :(..s1*..and .ftve..tools)..'.1.o•this.-.Fetard the.smaller Provision..Of:,:infrastructure :(roads,':•• ••:::: appear so be welcoming ; schools,water Service, parks) at the time Seven., direct incentives : .. .• ..• .• . . . . ..• growth.without hesitation..A.nothercontrast of deieloliMent-::: .::•:::•: '•:•••'•• develOPinent, .• • .'.:•• : . •..:::.:..:.••• •,•:: • • .• ; • appears when east:and west cities are compared, •• • - . . . . . :•• . „.::: .. . • •. 7: Urban. design'requirements. aim •Taken'togetl*.tti:isiarra,y.'•Of•apprba4*$:Pqtrottn -East"Valley fringe Anion:S.and Cities wield.more .• • • • • •• aesthetically pleasant;-urban areas, the ernergente.•of-i;."Thoenbc•-style': growth : restrictive growth Management tools than their • • • . : . . . . . . In the east, uses and environmentally friendly places management practiced •counterparts:in the.west,Valley : • • - • •• •-• • . • • • 7 Policies and PrOgFaMs that protect sensitive::••-log:new •::pay for,!Its.cif.7.',17.4twx..•• •Apache. junction :Queen. Creek;;,•-•Iviesa and • • • • •:•• :•:: •• ::•'•::: : • " • • .• :": lands,rural.;areas:ancj•-••open spaces ,,.H::.: •than on • ;: E.;:chandltr.indicated•on average for management,: • •. • Policies: 4144 that :•- 12 H:H Tothe:*e.st qicodatei Goodyear, •••• programs" • ::,•: ••,..•:. . : • • • •-•• :• ••-: .: • •• •::.• . • .• .• • • urprise •: •.•. • 'affordable houSing- .1na)or::component . soggest the:relative:ne.virness.:017...::ttie.present •• and Peoria'have an , • of.new development •- '•' .-: commitment to growth management just(out of average of.two,tools. • ::.• . ": ; • Table•:•:.10: Prevalence of Growth m an ag-ement:.:Tcoolt.! by City :• Mequita Public Duwntoin Urban Reveiwe for Limits.on • CITY impact FeesOpen .14!14.an.Limit Liner Pupulation.Grpv:04.k: .,..t#002:41totoItiftr;:,:,..),T4.,...*,;.;"ywitgiuFvfitiliy:=2,,,ii,:.:.110,:i1•004:'i-::,:::Altemaritel7, ..ef *0101;1401$71iliNSOTI41§11111111111tOtleirrittli::::ii.;,:iii,,,d, 140Carefree No. No Yes Yes Y' No No 1111111111• • it.iiii*ii.i01112111.10.M.M.1111111111111111.11 '.43....12/1111-11111811111*11111$9112111111110411111.11kralgil*11111111111111111111111111*M1211 Chanctier-:'-'s Yts • 'es P4 No • itiiii.00111111111,11101111104.11:11112111/11111)0111111111111111110V.thail,ZIMIElirall111111:1111011113111111111:111111111#41111.1111111111111W1111111 fourit#In 140 .., lie No No •• • ilicrida$e " Yes : •: . . . ...... •. . . • No No.....„,„„.„„.„,.....„„„.. • • Utch1iId Park No No No No •- • .1-INo • NO, -,, • Peoria Yes Yes Yes No ItiltaSteDeggiiilffigan • queen Yes Yes Yes . . 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Tolkscn Yti „ Yes4,:‘::H,•-•••• •••:.• • N No : • - EiffiiiiiiiiiigitiTi.3.!*!•:;!..41181,11ifeirilelleilinli1111041.1111111111111241*Ii:',;',A..:44.4•WOR40.141140.:.4i;;OESICIIII1111111111111142.111.11•1111111111100.61111' .3 ::.:.:.:: :..•5 •:. ....... .. • . *.•4zongt1e.$.of."i6ekte,Onsit..NAW late iirboty.i0fic.t11400•000.0sora0••07.00S.:114,00 P*.t,i3,4l4047 OSe Siltt,6brit$of Toshitperd ope.o spore arcPure cities 04.44,n-sr rd./Ask griwith Ibrie, • Soutcv Mnson In*efootr..,for poihrie Porky Ofp11*:Polit#11710**#.'14v*K1 • . •• • •• . ••, • MO ft ft.ISOM I NS TITIITS FOR PUBLIC POLICY •33 . • . . . . . . ... • . . • • • • •• • •• Figure 11: Cities with High Population Growth Have Moderate Impact Fees . . . • •• 1414iis.:1MttiftO1trES'• • • • . • • • . • 1S000• •••"• • •• • • • • .• . . • • . . . • • • . . • , • • . :• .. • • • . ••Peoria: . • •••• • 0: • •• • •• •• .• ; ie . . • . . . -• .• : . *.• . • • • . . • • . . ...7 ....7 7.7 ;7.A,' •• •. • : . i.....7_.7 7 7 0 • . • 401.4‘tie.tw.i .Z4:.!1). • . •. ., • 411`4A... . • . ltiaje.40• • a.tt 10. u . • . • . • . . ....... . . liC$01i:11 : •• • • fb-Goa •• •Girbert o . . . . • • • .... . .. • : • . . •-v. • . • . • • c crtv, . . . . . * empe, . . . . • • • : , . • . Yolingt.voion• ... •.. • . •••••.• • • • -•, . . • . t•itttfi. e;i1.p!rk • Careffer • Fourii'4•at.rt HIllo . • 504 •e• I S.•O•%••• • 200% . • 25k • • • • • : • • . • • • • -• POPULATION GROViiirlti':*• . •••• .. • •• • • -• *.fititr0T••1990 10 99L .. • •. . . SaurreiMat.risf)t',..ittiltiitr for Pr.thlie Fbri,ey.G•644/.t,..i..Maricige.men..t..$rkeycx-.?00c1.-..,.-• • . . : • • . . . . • • •• Single-FamilY Impact Fees by City • . ....... . . •• • • • • • . •:•. Mill.111111111111111111.1111PH014111111111=11113311111°1 ..• ••••• 1.03ii..At• CIAPpNI • Olft%iti • • • ,,irra • Disit,tliolliti 14-4 • : . • Clidtctivitiii$ . • . c Facility 5iiiO4hrtes Aeet,27.. f!‘tiTt•Ia ..• •$(,titih**2:41ity.e •• orh #4.gre . • • 317 • •• 4011 •:.*• • L922 •• •••••-...4.0112.•••• • . ••.•.*. • • • • 0 3,449 •••• •1•Se,,,••• t.:1194.• 2,3,0.. • • 1.,769 . 31 •• •11. •• • i, 41 • 1157 • •• 2, 7 • 3,/.1,0 • r0 • 1.112 • •• 3,3E4: 0' • •t.,..1:?1, :1,770 1911 3.344 %tV.tt.3.I.04,S601.4.it.. .4.73 4:r3 0... .•!): • : • • 6 . . .4n4 1,$4 Ii • s'r<E • •Icor • •• • 1339•• 0 • 1' • 0 PiVz • 1• : ),• • • • • •. • ttfr1. •. 0 • 0 . . 0 0. : ....... ..t\iigr•-.x* ,41,,i.eii, • 211 31.41 3f4 : •1115 • 315' • • • 0 ..•.: • • • 0 • • • • SY 3•13 • • •• • • • • •0 161 • • vt4- "LArrat,ies • • 7,B1•• • 2f)1 I . . .7. 6 • . •a. .• •• •- • t' • .• • .• • • . . cbrMi ..• •Ge•n s46. 56 46 • : • . . •• .• • . . .0 Do 0 D• . • . • %),•:. • ; • . . . CC-I -4111i •• 600•-• • • 341 • • 0 •• • 0 • ••.. £) • 0I1-.u4 •... •.• • • ••••••• . •• • • 00014,. 12.,L60 • 9.774 ' 12466 .0 *7,,,r9 7E5.09 31i40: E849 • .•Aparits• .. . : • ;• . . feotOot.ito . •• •.• •... '•• frt;iiy. •Jto.,tttilvi• •.Coio,rffit*.•isave:tretit. -•Chovidio.t. ... •...Mill& 0 9t7r1 ••61e.ti43ir mart • .•. 11,4(!tsf O,arOil c./reit ••. • "'pads.; •P0 .• . ••0 a 5-42 .140.•• . 0. . ;:• . 0 0 *• 11381 tl -:314 2,003. •• •• O •*. ; .5.1;'!.• 2.`--`36 0 . • • (i 1.111 1,1 '815. • • • •••• 0' 0 0 0 0. • o • a- . 21s a • D:•. • . 3f,s0 ',1100 174 40 730 1(734:-• 0 0 9.••••••.. 100 • .0: sr 0- 160 .• • 0 . 0 ..• . 0 :!:.:••••• • • • • 213410 ..• ,• 1J ; 212 1116 •. 01.31 141 ü6c••.: FieSH.• 1-99. •: 11 . •••• • 0 0 .1,2 • 0 . . Cl .3n•• 61G- 0 . 0 SO.. 0 13 Stio61 • .. .1,360 . 13 C, D • • ct)t • 100° titioerti .• 12 0- 2.31: • • 11B .&1).1). .41 ht. 17;lic0,1tAt''ii:$, : •• 0 t) 13 • i•;, 6. •••••a: • 1,.50 . . (• 201 • • . 0 '00 •••• •••• . • TiOTNI 2,274 I) •2$46 53%4. 0 0 1.,,let0 4:.;e96. 413 3,073 oluS 1,005. 7.530 .7. • • • • .• . • . •• •. : • ..• .•• .• ..:444V#05" 'Areowok. :4,Pf.. itOtO t7;tti!lci.4.6n iY311C13Zpfltr Qn 601Idid.,,vire•-cirif)t0/,t.t:('OIT)14)f•Ficol'o; e-•;!.!0 frft.-fr ThoCotL. . . • : .•.. • • . . . . : . • .. . . . . .. . . . . . . . . . • . . . . • •.. . . . . . . . • . . .. . . • . $4411::Ortitit.S0.1%1 INSTITUTE FOR F,:-11:11.1..::IC POLICY IS • ' : 'Ball park.A structured impact fee system places a doubled from 23 square ;miles in...1975 to 47 the respondents to.Morrison Institutes 1999 .: beav.ier burden on development in fringe Areas so .square miles in. .1995. Mesa,fountain Hills and quality-of-life survey said that the region is doing is. as to free up funds to•support downtown artti GICP4aile:aPPitwed.major.park 1)004 isues,,!kt,iile: • a.'poor" or'fair Job of preserving the desert. - existing neig.hborhoods. Fee waivers of up Peoriaused impact ..e,, te t And the Institute asked broadly about 10 Chandler and . .fee r en . .o . ..... when. . . more ... .. :.S2,200.Arc 4,..$igneti to encoura.gc in.-fiti,Tempe'. :expand their park .5.3,r.s!m.......s.,in.addit.ion.Ql:s.e.Cn: the -te.gie'll.i's: growtb..., those surveyed cx.prtssed . , has used on ••theat.in. d,,...rie .....,......d..use. Creek implemented a.'...4seitelet,Pment impact fee deep anxiety about the •cbang.c.5 taking Place g. a. .,ive....,..,. c:-.• .i.... . "vital center"of the sort.valued.by the people- . that mandates at least:20 acres of parkland. or..s:.irou„n..4 them._Most dramatical!s.S.,Q. percent of • o-iiinSpace per 11)00 residents.These efforts have:': metropolitan Phoenix, residents said they were • :-. centered companies•of the new economy,.,Both. • • F :...- . s-..- . . .•.., ,- ...:‘. , ., • . • ... s "concerned". : . ,, ,„ .0-, : • , : : • . •• ::: ---ss..::: :: - • : kept'vacant or parkland:in key areas Ititthto the : . . or very concerned about the . :• •cities are now devoting sales.tasit...;rereni.tes to a - - .' .. • .. •., ..... . . . .. ,. " urban form of PhoentLi:.:.,....,..: . . regions growth--These figures were in line with lillsgt tad c-ste :t- connect the Chris Town area . .: • .,-. . ''..- 7 ...9.-:':' , „ :. -::-• ."' Scottsdale and Phoenix have been moyint. the nearly 75 percent who have said i.n each of :'• ' . .. ..141°‘cilt-13-wn Pn°c.rils:' and Sky• Ic;7-4•FsFb.:9F:IntcT-. beyond pre'scrvini:j..'bisea...t_iiiii:g-spaces".•within. ' ..the.ipast: three years'.slin"..'els that the region's. : i• ,, :•national Airport to d Tempe anhitiit,',:.,'..•.:' :: • - . : the:urbanized aratotiv.toward thecreationof.major,:: population is growing*too fast"In 1990,nearly • Th-•°1-10.---it is hard to quanti.:.f$:.'1-...#atk.-.-...... .4111. -i,P,. . green.'. bC1:144.--:Ft.-).'i:its lvicDowell SonOri:rii:Preseive.,..'1'::::hail of thiHi'reSpondents. indicated they would.: • : - IrCa-s°14..-"$-:-.•04.47,,t0.11S to b°°SI 4°.,PtC.fr.rn!Iso.F.:Fii'4 :s for example,Scottsdale plans toacquire approxi..., leave the region tomorrow-if they could bcra use• • Ansi..Tenipehave helped:the...region retain a.. matey:.57.,..:.'S4uare miles' in...the:.Mci)awell..::..' of"too many people,'" '. strong;enter and 11114il*ed-si°e1t4liza-ti°"` :.Motintaina...ThiaiWill.-ultimately create A.pratervel•••E..''. s ... :.:• . . Such•ini,. *eStmetit's..-1147!'.*„..:4.tArltisq .e4... .:the.'"c'..4,7....' significantly. :•larger than i'ii,$,i.i.-,114..er'...'...i'scolo.iii:4* .'1.6.11:.•:•A-. I:::....:1:.0...:HIS'IVIE.AINIS tinue4.concentration of.business activity wIt..4In•:- .. s -: "ring....••• f .mountains". •..i •....„;•:•,!:::•:•:::::.Phoenix;:•-.i.,::'contrary.to tooventiOnal wisdom.the Phoenix .. ... .. . . . famous •: ...o:. • s.ystern,:: ;.! -• • -.., . - .. : . .. • . .„. the r.eg.ionis center,In doing soi.t1).0:bae helod..:..J•iplons..t6.puichase..::aboiit.:11,500..'acres,..or 33...metropolitan area coes.practice growth man, prevent the central-area disinvestment•th...a.!has.. .. s,..4.i.„,,,..e.thile•s....„:.:c.)f ins--iiu-s.i..3)....--aterts.s..ficirth at ib..i.c.„Ap., ..:.::,i agenient..._ .., :.;. ,4:.fk:...re,.trjegtal or state-level regime does riot 'hollowed our other cities. Beyond that these .:' • .---.-s. ..- -:----•••".:: -:'• , ':. 'H..'•, , ..-saless....::' exert strong management across the urban area . . .. . ..•:.:,,, .:.:..-canal.These efforts are Funded by municipal .. .: • ,::..-:...,local'- ,- • - .: •--'- - .',... . , . .but many .governments employ an:array 01 • cities' signifiCant •efforts- to provide amenities -..i.iiies- s,;.2.isond both..a.ra.designed to offset:1-01...5.t.,owth..... . ..growth management: approaches. sitiliricn.,, Within,their:cores.11ave likely'Offset sonic'or the:•••• -.. • . . '.., ,,- .. :,...,.:...:., .,•.,toward.. . -;4O......:: 07...0.:filpi...,..Together,:th....e prog•prnsi...-. ... .,.... .., . . . . ,.,. ._ ...,,.._ . . . . . : coo:i00,0.:.piloting:,middle-class families.,0,r4y::.aim to iti.:ati:iiii.i.: .:,regionally .. .6.. i.i:::..iiii,::.i :.::..: :=CIS or desert are .being proteo.ca as Open space. .. ..s... .: . •. ,...„..„„..:,. ...51KII!..::q.n. - • •space ---.''.. and near the built-up area,'Urban cores are .. fiT610:.:.regOra:.cOlt.t't..D6wntcs*ii 1 revitalization ••••belt that Williimitthe region's Outward expansion lifit .-,,,:.••••••••:: : •-.: .: . • ,.. . - li.naergOiing.i*it.ilizatfon..,':.Anil...ti#,Inciat ailkeS5- •. ::continues to be an important stra. tegy for growth, .:: along iii itorth::edie..: :. : : :: ..• . ,..,.,,•.. •i . •.• . .• • .:. . :... , .„ . . ..hi . . .,.. . f 1 . ••s -- s - •••• - :•• .•.:-.....:• ::.s.:".•::.: .:..::s::..-ss.::: s:.., •.. -. :meats.are recouping SI7.3,,.'..C.portions o..:the costs - assess- management in.marop.01.44-ri,..p!v9enitx-7 : ,..:::, :..: .. ::,:,..:::Fo.--.:.wit:ibli.ii::.e.ii*.ii:*,,i.thoiigh.......::!.0..".):•., space ...io.c..ii...tie.5.:..:0•:-f..:xi:-.6v.-„ativiopintrit. ..,..::::. :: . ". ' . : . :...i . ... ''.. '.::.''''''.' ... . . asKut:s.it.°:.-!14.1bes 11C41-PPeP-.!'•-.!P...!.1.`f:'.!CE:'4P.• ''''[..-.:.a pace . -.jut,question persist abouttlieeffectiv• eness ••-PROTECTING:OPEN-SPACE :i - -,.:- 'i. - . _ -. •- • . .:..., .: .:. :...'',,.• •,,.',.,.,, ..., , • : *:' • -;.::....-. .:•:: • *id,'po0iiiationstreiiirth.:.-The-arnOtinti:of.:ded:i...: . f f,,..-.local,i.•:' *.1 uncoordinated• : :•- ..... : . .:::•Open niece protection is a.strategy of increasing •:.-. o this.. ,.arge.y . response to . cite&.opeii•straile.'ailailabi' on a.p.':. 1,p:it ...basis 0.1c.rcgin.,!.,ide...c.haliFnges of fast:trowth,.,.The importance itt.the region.This growth:response. .. • ..-......-H.!:_ ;...• •!'.:':•-: • ••• - •-• • :county wide declined between 1990 and 1995,..::spontaneous ri:• of.as-robust, tiered.:, .arra of goes.,1>Ack.a long way,1n addition to the.16i50141-- ." .. '''...: :. . •:s Hs:•:::•:•• • . :::•:.::: •:::::.-.4:....s..:::.. .:.. .:..,.F.-.:. - .... .., . .... . - Y.. . .: Also,much.of the new:open.space acquisit):00.: impact: tees suggests that important'tookict can acre purchase that bccame: 0011-4.Mount*il:Pk. :ii: app.eirs:to.be'piecemeal.:!This'irp.i.ii:11.,. .,It..s.,10t,•,. ..b:•5.-.::::,i[fi)..p..10Tic..F..1.07'‘,1.0.E.04:*f.1.*,establis*".hment of.a „ s in 1924,the.-city..oilrbocnix.baSmide,:irtajoilinels:.:s .!'-7' . ,. •••:..-.:::s:.-). .. ..,....,..::.:,..:s...... .s.•• -• • .-:. -s..:-:,si.partly, from the:differing political:orie.ntationss foriiiii,institutional framework,Yet the rate at. . .. acquisitions.an every.decade.since the:195es.iri"::::: . 2-:•:: . . : ....:::•:.-:- ..,,....j.Hi:;-•:,,s:....-:••.., : ,...,.. .:.•: .•:''.. • •'-::•••••:,:•• •::-... ... s. • ...••.:* . . • . -.:, - . . ::.. -.:. -..,....•••• . :..arid financial conditionsot.theregtons cities.But .:•.WhiChi:-residential development is moiling - keeping With that,city of Phoenix voters iti..1 .73i.e.ii:...,.:-..:„.. •owes :. :•s.: a also somethingJ.:' .,to-:PI:iftoenie..typography outward raises,concernsabout the adequacy '. .• :. -:1979.:191,4.amil'1988.approved bond--itsitts.ro::H' ..„ •i .. which naturally:-140eriTiliie*.:Ebere tl.i.e-regions , of :metropolitan Phoenix'. current city-based . •P4rchass.14....9,700 acreslo:e-Stablish the Phoenix • ....: :-.:-..iii.h . . -• • 1- .:.:- ....... .... . p............s............:..... ..Likewise, th.. spottiness.... .,o. . . • •: • : . .-. .t-.... . .mountain parks w -be.The•feSU ting irregular , .2 approach. - ..e : I the cities' Mountains Preserve: Altogether,• the city.•of :-- -I':-• ••• :• ' --.• ..-• - - ---- •.-. --•• : • . :. .,••'...•*.. '''': -•.....s'' . :•.': '.."''..':•!,.;:'•'.'...,'.: distribution of parklands'itican •that'cities far s•-•-•• - i .1.'s Initiatives- suggests- .-th . ' f " •-• open,space . . e need.Of coop Phoenix has doubled the cii-±Of its narks Svsteni .-:'• :-.' ' - •:- : ••, : :, - 7 . - ... ::-.•...' -1:.• .'. .: : .• frootHtti* aiei's moOp.,,j..r.i..1p;*Orit.es-..(stich s • erative. Oinii.iitg,'on'i this and::other issues.for. :,.....:.:....,.: .since 1954 tit:roil&:the...aciditio0 of 17,000 acieS,, Gl.erid.ale..and: Chandler):':iniy;be significantly example,the lick of a...that:al-authority.VI*plan ....more than Or other tiy:eicept.San piego,. . ..:.--. .... ... •:,:::: •:::,....,.,.:-. .. . . •.• : .. ..... •. ,..;a.. .. . . , . .. ... ... . .. . .. .... . time, ... ...... ...., .: . . . .ondi;:x.'served with open space compared to th.ose open space acquisitions In.the metropolitan area Overthe same: ,.frame*virtually .all... '•.- :,-:,-. •, :.:: , .: . .. .:-:.• '-• • -::.•: .•.: :. :. •. - .. . ..... . . . . • . - -::-:-...- :.:.':-,:::, :-.:,-,..- -:- containing mountains, : .:;: :s '...:. ....:...:::::H.:•.::":,::. . Makes the..crearion•Of. a ciamprehensive.Widely of tbe remion'..t. iisritdietiont.have cet.:aside:'.: .•-:s::- "•-• ----. '.• .s..-••:.:':.-s•- • - :.• - • • - '••... •' •••"'-'-:•:,•:.....7::•:.:.•-si.•.,• ...:.•.:•.i..., :•:. .-.• .:. ,' :•':::.H•H- Protecting.opeiti apace:and.desert land.IS:A accessible'arid equitable.system.of desert 'pre- -amounts a • - • - A - :: --:- s- ----" .. - .•- - . .considerable. .: s•:.: • P',!n..5PaC,:1);-----.1-c4.t.4.:.:c',otic-a•rn'inien:g:.loaal.residents- Two-thirds.of:. serves-Unliliely 0 • ' •: .:open space owned by t:1). :A1*.laiges.t's•ItrilOicittalsitit...•:. ':::',.:, :, 1 -:•:.:•.:,-:::: ::,.,,.::::4,:... :•::.:.::..::: . - .•.:.- s.:::.. L• :E -s-•:. .:•• •i•• :COnuOdriiirn.:. Metropolitan Phoenix Residertt5.11.Do:.N..0tConnect Density with: ml.'frn6.:rt. Growth' When asked:is this idt.a,,tserna,rt.growth'or not?",residents said:..: .s...••.,. .:..: --:,.-: •'• -'..::-::: , '.s,::::• YE,:s..s:::. • ::: 1 .• NO ...•-':::,,:: ,• :.PON'T.!WOW . .. .. , , . . . . . . ,.„:... 15t14.0:014ifffilligirOlirifiEffLggti.04i410*4***time.*r4ifi*liiiiiiiii.k111:75:11iPi',iiillii3Eili:i:ijl'iligirFIIEIEIEIi!iiiiii',11iiiiiiiiiiiilligNOWEEIIIIIIIIIIIIIIIIIIII::i*T.4IllititBll.11Ittillflli*ltflitillillirill . watt On tevitatizin older...carnri.itinities -.' :::Wi;-:•i!i;:',;.1:!, ;,::.,:,....:•:T:,i!.!;;:,i:;,;•:!!;:,,.,:• •, . - : ••,...•H!'.1;'.':.:iH''i''•!.:':''':':"..EB.,b, •:...•:.:•: ::: - Vtb,,.. ,:..i'.1 ..':,::':..'•::. ::''.1. 44b, . - . .. 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HEYS:.A.IIIO.MIS6S flawtGrowth:in,'.:Pitiptrosiolitiiii :Pliocveras.•..: : ..::::: - :.::- - • PARADISE VALLEY, ARIZONA Message Page 1 of 2 Greenspoon, Karen From: Tom Martinsen [tmartinsen@ci.paradise-valley.az.us] Sent: Monday, December 13, 2004 10:37 AM To: Greenspoon, Karen Subject: RE: Request for information... Karen Greenspoon: The Town of Paradise Valley does not provide economic development incentives, other than expedited plan and zoning review. The Town's only industry is the hospitality industry. Original Message From: Greenspoon, Karen [mailto:kgreenspoon@orovalley.net] Sent: Monday, December 13, 2004 10:31 AM To: ksimpkins@ajcity.net; dwilcox@ci.flagstaff.az.us; Gregt@ci.gilbert.az.us; Ivasey@glendaleaz.com; bdalke@ci.goodyear.az.us; citymanager@ci.lake-havasu-city.az.us; Gould, Bob; Tom Martinsen; mreuwsaat@marana.com; stevep©peoriaaz.com; Itarkowski@pvaz.net; mmaag@ci.show-low.az.us; Will_manley@tempe.gov; cowdevsvc@cybertrails.com Subject: Request for information... Good Morning: On November 23rd, I sent out a request for information regarding your policies on incentives for economic development. This is a request from our Council in order to update our policies and guidelines. We have gotten quite a few good responses but feel that your community is key in the equation and would like to be able to include your information in our report. We will be happy to share this information with any of you when completed. Your cooperation would be greatly appreciated. If you have any questions regarding this report, please feel free to contact me at 520-229-4732. Thank you, Karen Economic Development Specialist Town of Oro Valley (520) 229-4732 This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. 12/13/2004 PRESCOTT, ARIZONA Greenspoon, Karen From: Greg Fister[greg.fister@cityofprescott.net] Sent: Tuesday, November 23, 2004 3:45 PM To: Greenspoon, Karen Subject: request for material Incentives Policy.doc(37 KB) Attached is our incentives policy. Should be what you are looking for. Any quesitons, gove a call at 928-777-1204 . This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 1 City of Prescott Incentives Policy The City of Prescott Economic Development Division mission: to facilitate the establishment of a balanced local economy, the creation of quality jobs and the enhancement of the local tax base through quality industrial and commercial , development, targeted business attraction, redevelopment of targeted areas, effective p business expansion and retention, and tourism support. Background The City of Prescott recognizes the importance of a diversified, vital, and robust economy that provides quality jobs to its citizens, while protecting the quality of life we all have come to enjoy here. Over the past 20 years, as both the city and the tri-city area populations ulations boomed, the importance of a well-rounded economy grounded by quality jobs has become quite clear.No longer could the area survive solely as a tourist destination with its accompanying service-oriented jobs, supplemented by government employment in the local, state, and federal sectors. Despite its rural location in a mostly rural state, Prescott still possesses many assets that can and should be capitalized upon in its economic development program. Those assets currently include its well-educated and plentiful workforce, the excellent primary and secondary school system, the presence of higher education in the local economy,the role of the health care sector, the public sector encouragement of entrepreneurial endeavors, and Prescott's sense of community. By building upon such assets and encouraging the development of others, Prescott can remain an important economic force in Yavapai p County and, indeed, northern Arizona as it moves through the 21st Century. In order to fulfill the vision and the goals of the City of Prescott,the city is interested in attracting and retaining companies and businesses that provide career opportunities for its citizens, while adding to the area's quality of life. As a part of that effort, the Prescott City Council may elect to offer incentives to such businesses and companies after an evaluation of the companies' impact on the community is made. Targeted Industries In theast, the Prescott City Council formally approved an incentives policy that p included aviation/aerospace industries; electronics; software/information technology and environmental technology companies; health care; education; and business and financial services as targeted development priorities. The Prescott Focused Future Action Plan for Economic Development was approved in 1997 and updated in 2000 and its linchpin was the creation of four Focus Areas or clusters: (a) arts, culture and heritage tourism; (b) medical/comprehensive healthcare; (c) education and training; and(d) entrepreneurial/manufacturing. A regional economic plan designed to attract new economic base jobs to the tri-city area recommends business attraction efforts focus on (a) resear ch and development; (b) precision manufacturing; (c) aviation-related industries; (d)the after-market automobile industry; (e) biosciences and agriculture; and(f) warehousing and distribution services. In addition, on the statewide level, the Arizona Department of Commerce targets several clusters that could benefit the city of Prescott including food, fiber and natural products; optics; plastics; and tourism. Although the City of Prescott will focus its efforts on opportunities such as research and development, aviation-related and after-market automobile industries, and manufacturing companies, other targeted industries listed above could be eligible for consideration for incentives under this policy. Targeted Development Criteria • Business attraction projects that add at least 20 quality jobs in the targeted industries mentioned above. A quality job is defined as a job that pays 25 percent above the prevailing median wage in Yavapai County as defined by the Arizona Department of Economic Security and the employer offers its employees full employee benefits, including employer-paid medical benefits,vacation and sick pay. Companies considering locating within the city's Enterprise Zone may be eligible for additional local incentives. • Business retention and/or expansion projects that represent at least$1 million in capital investment in the community and add at least 10 quality jobs. • Business attraction projects that create new taxable sales of at least$10 million and/or add quality jobs and make a sizeable capital investment in the community. • Business attraction projects that bring a unique and needed product or service to the City of Prescott which creates jobs and generates significant sales tax revenues. • Redevelopment projects that create new jobs and/or new sales tax revenues, increases property valuations, or improves the surrounding areas by removing blight or slum conditions. Projects that include the renovation of shopping centers that are at least 20 years old could qualify for public investment in facets of the projects that provide a public benefit. • Downtown redevelopment projects or infill projects that enhance downtown as a center of commerce in Yavapai County and assist in the continued progress of downtown. • Recreation or tourism development projects that add needed recreational amenities for both the resident and the visitor. All targeted development priorities will be evaluated on an individual basis by the Economic Development Division and the City Manager's office before a determination is made that incentives could be made available by the City of Prescott. Incentives Available There are several types of incentives available and the City Council reserves the right to consider each request based upon its own merits and take into consideration the availability of city funds and resources. The types of incentives available include, but are not limited, to: • Public participation in the cost of public infrastructure improvements necessary for the project, including, but not limited to water and sewer extensions or upgrades, streets, including traffic signals, and drainage improvements. • Public participation in façade improvements, landscaping, lighting etc. in redevelopment projects. • Payments toward project development costs based upon the sales tax revenues generated by the project. • Public participation in the payment of certain fees and permits. • Bond financing by the Industrial Development Authority. • Streamlined permitting process and site location assistance. • Marketing assistance. • Assistance with state and federal grant and loan programs. • Other assistance that may be appropriate on a project-by-project basis. Additional incentives will be considered if a company brings or creates jobs in which its average wage is double the average Yavapai County wage as defined by the Arizona Department of Economic Security. If an incentive includes payments based upon a formula that includes revenue generated by the project, the 1-percent road and open space sales tax rate will not be used unless the project is a major sales tax generator and the reimbursement is used for road construction purposes. If cash grants are involved as an incentive, such grants will not exceed $150,000 unless justifications are made that include the creation or importation of quality, higher-than-average paying jobs. All potential cash grants will be evaluated by the Economic Development Division and the City Manager's Office before recommendations would be made to the City Council. The return on investment (ROI) in any retail project must be reasonable and a seven-year break-even point from the time reimbursement payments begin will be used as a guide during the staff evaluation. Project evaluations will include the economic, community and environmental impacts of the project, as well as the potential for the project to attract other like businesses. When at all possible,the provision of incentives will be structured so they act as an investment in the community and its citizens. PRESCOTT VALLEY, ARIZONA Message Page 1 of 2 Greenspoon, Karen From: Larry Tarkowski [Itarkowski@pvaz.net] Sent: Monday, December 13, 2004 6:57 PM To: Greenspoon, Karen Subject: RE: Request for information... Karen we have no written policy and have historically taken such requests on an individual basis at which point an economic analysis is conducted to determine consistency with our economic development goals and pay back to the community Lt Original Message From: Greenspoon, Karen [mailto:kgreenspoon@orovalley.net] Sent: Monday, December 13, 2004 10:31 AM To: ksimpkins@ajcity.net; dwilcox@ci.flagstaff.az.us; Gregt@ci.gilbert.az.us; Ivasey@glendaleaz.com; bdalke@ci.goodyear.az.us; citymanager@ci.lake-havasu-city.az.us; Gould, Bob; tmartinsen@ci.paradise- valley.az.us; mreuwsaat@marana.com; stevep@peoriaaz.com; Itarkowski@pvaz.net; mmaag@ci.show- low.az.us; Will_manley@tempe.gov; cowdevsvc@cybertrails.com Subject: Request for information... Good Morning: On November 23rd, I sent out a request for information regarding your policies on incentives for economic development. This is a request from our Council in order to update our policies and guidelines. We have gotten quite a few good responses but feel that your community is key in the equation and would like to be able to include your information in our report. We will be happy to share this information with any of you when completed. Your cooperation would be greatly appreciated. If you have any questions regarding this report, please feel free to contact me at 520-229-4732. Thank you, Karen Economic Development Specialist Town of Oro Valley (520) 229-4732 .... ................................................................................................................................................................................................................................................................................................................................................................................................................................................................. ...................................................................... .. This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. 12/14/2004 QUEEN CREEK, ARIZONA o �} • 4inzoM* TOWN OF QUEEN CREEK November 29, 2004 Attn: Karen Greenspoon Economic Development Specialist Town of Oro Valley 11000 N. La Canada Dr. Oro Valley, AZ 85737 RE: Request for economic development policies Dear Ms. Greenspoon: As we discussed on the phone, I have enclosed a copy of the Queen Creek Strategic Plan for Economic Development. I have also included a copy of the development agreement for a project that did receive a sales tax rebate. If possible, we'd love to get a copy of the comparison report when you are finished. If you have any additional questions don't hesitate to contact me at(480) 987-9887, or tcormanC;queencreek.org. Sincerely, i A(1/2,z,i_ Tracy Cornan Management Assistant 22350 S. Ellsworth Road, Queen Creek,AZ 85242-9311 .480/987-9887•Fax 480/987-0109 www.queencreek.org TDD 1-800-842-4681 — Po l�xi f It " �� i'F, 2004 -WHEN RECORDED RETURN TO: o ' Of`Vlleen CPPg7• OFFICIAL RECORDS OF MARICOPA COUNTY RECORDER HELEN PURCELL 2003-1655322 12/04/03 14:58 Town of Queen Creek 1 OF 1 Town Clerk KELLEYC 22350 S. Ellsworth Rd. Queen Creek, AZ 85242 DEVELOPMENT AGREEMENT a , is entered into as of the dayof �' is Economic Development Agreement ("Agreement') , 2003, by and between the TOWN OF QUEEN CREEK, Arizona, an Arizona municipal corporation (which, together with any successor, public body or officer hereafter designated by or pursuant to law, is hereinafter referred to as "Town"), and POWER ROAD MARKET PLACE, L.L.C., an Arizona limited liability company (which, together with its successors and assigns,is hereinafter referred to as "Developer"). RECITALS A. As of the date hereof, First American Title Insurance Company, a California corporation, as Trustee under Trust No. 8558 ("Trustee") is the owner of fee simple title to the real property generally located at the northeast corner of Power and Germann Roads in Queen Creek, Arizona and legally described on Exhibit A attached hereto (the "Site"), a portion of which Developer intends to develop as a retail center. Developer has been granted an exclusive right to acquire the Site (as well as the right to subject the Site to this Agreement), pursuant to the terms of that certain Trust Agreement dated , 2003, between Trustee and Developer. Trustee, in its capacity as owner of fee simple title to the Site, has consented to this Agreement as evidenced by the Owner Consent appearing at the end of this Agreement, all with the intent that this Agreement shall be binding upon, and shall run with the title to, the Site. B. A.R.S. § 9-500.11 provides for the. Town to make a finding that a project will assist in the creation of jobs and/or will improve or enhance the economic welfare of the inhabitants of the Town. C. The Town Council hereby makes such findings in relation to the Site. AGREEMENTS NOW, THEREFORE, in consideration of the mutual agreements set forth herein, it is understood and agreed by the parties hereto as follows: 1. Recitals. The recitals set forth above are acknowledged by the parties to be true and correct and are incorporated herein by this reference. 2. Site Development. Developer intends to develop a portion of the Site as shown on the "Conceptual Site Plan" attached hereto as Exhibit B, to provide approximately 320,000 square feet of retail ("Retail ace sP Center"), which will include a Home Depot store ("Home Depot") containing approximately 149,343 square feet of floor area. The Retail Center shall be developed in accordance with final zoning stipulations and the final site plans if and when approved by the Town ("Site Plan" . It is contem lated that the Retail Center will be named "Power ) currently P Marketplace at Queen Creek." 3. Construction of Public Improvements. In connection with its development of the Site, Developer will construct or install or cause to be constructed or installed, to the Town's satisfaction and at Developer's cost and expense, public infrastructure improvements for the regional circulation system, including right-of-way dedications (the "Infrastructure Improvements") as shown on Exhibit C. The Infrastructure Tmprovements include the realignment of Rittenhouse Road through the Site as reflected on Exhibit D. 4. Reimbursement. The Town, subject to the constitution and the laws of the State of Arizona and the applicable political subdivisions thereof, shall reimburse Developer a sum of money not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) over a period of time as and for the construction and installation of the Infrastructure Improvements. 5. Reimbursement Prerequisites. The Town's obligation to reimburse Developer is subject to the following terms and conditions: (a) Commencementof construction of the Retail Center on the Site pursuant to the Site Plan by June 30, 2005. Construction shall be deemed to have commenced when a building permit has been issued, materials have been delivered to the Site and work on the structure is visible. P (b) Completion of construction of a major tenant on the Site pursuant to the Site Plan as evidenced by issuance of a Certificate of Occupancy from the Town by June 30, 2006. (c) Delivery to the Town of written certification by Developer that the Infrastructure Tmprovements were constructed in compliance with public bidding and notice requirements; and (d) final inspection and approval of the Infrastructure Tmprovements by Town. If Developer fails to comply with any one of the conditions set forth in subsections (a) through (c) above, the Town shall have no further obligation to reimburse Developer under this Agreement. Notwithstanding the foregoing, for good cause shown, the time deadlines set forth in subsections (a) and (b) above may be extended by the mutual agreement of the Town and Developer, in the event of any unanticipated delays. 2 6. Payment Source. The Town may make the payments called for hereunder from any source of funds legally available for such expenditure and does not create, by this agreement, lien or reservation of transaction privilege tax funds or other funds that would � , any not be available for economic development. 7. Reimbursement Schedule. The Tow ri will reimburse Developer for a period not to exceed seven (7) years ("Reimbursement Period"), commencing one (1) year after the issuance of the certificate of occupancy for the first major tenant in the Retail Center. Subsequent annual payments shall be due on the anniversary of the first payment for the balance of the Reimbursement Period (the "Anniversary Date"). Each annual Reimbursement Payment shall be in an amount equal to 50% of the sales tax revenue received by the Town from sales generated on the Site during the previous twelve (12) month period and shall be made by the Town to Developer within thirty (30) days following the due date of the last sales tax report for such period. The reimbursement payments shall continue on an annual basis until the end of the Reimbursement Period or until the Reimbursement Limit has been paid, whichever first occurs. 8. . Confidentiality of Information. Town and Developer agree and understand that the information which shall be used as the basis for determining this payment is confidential by the laws of the State of Arizona, and that each and every occupant retailer, whether an owner or tenant, on the Site, shall be asked by Developer to sign an appropriate waiver of confidentiality to the Town for the purposes of gathering the statistical information necessary. Failure to sign the confidentiality agreement means that any sales tax collected and paid by that merchant shall be included in the Town's calculations, but that Developer shall not have any right to examine or review the Town's calculations. 9. Term. The Term of this agreement shall continue until the earlier of (i) that date Developer has received the full amount of economic development compensation referred to in Paragraph 4 or(ii) seven (7) years from the first payment made hereunder. 10. Maintenance of Public Improvements. Developer will be responsible for maintaining sidewalks, landscaping and the irrigation system in the public right-of-way adjacent to the Site (but not in medians) after completion and will pay for all water used in connection therewith. 11. Applicable Law; Attorneys' Fees. The laws of the State of Arizona will govern the interpretation and enforcement of this Agreement. Any legal actions instituted pursuant to this Agreement must be filed in the county of Maricopa, State of Arizona, or in the Federal District Court in the District of Arizona. In any legal action, the prevailing party in such action will be entitled to reimbursement by the other party for all costs and expenses of such action, including reasonable attorneys'fees as may be fixed by the Court. 12. Notices, Demands and Communications Between Parties. All notices, demands or other writings in this Agreement provided to be given, made or sent by any party hereto to other parties will be deemed to have been fully given, made or sent when made in writing and personally delivered or deposited in the United States mail postpaid registered or certified or sent by facsimile with confirmation of error-free transmission and addressed as follows: 3 To Town: Cynthia Seelhammer Town Manager Town of Queen Creek 22350 S. Ellsworth Road Queen Creek, Arizona 85242-9311 FAX: (480) 987-0109 and Mariscal, Weeks, McIntyre &Friedlander, P.A. 2901 N. Central Avenue Suite 200 Phoenix, Arizona 85012 Att'n: Fredda J. Bisman To Developer: POWER ROAD MARKET PLACE, L.L.C. Attention: John Graham 6720 N. Scottsdale Road • Suite 160 Scottsdale, Arizona 85253 17124 FAX: (480) 905-1419 and Stephen C. Earl Earl, Curley &Lagarde 3101 N. Central Avenue Suite 1000 Phoenix, Arizona 85012 FAX: (602) 265-2195 The address to which any notice, demand or other writing may be given, made or sent to any party may be changed by written notice as above provided. 13. Conflict of Interests. No member, official or employee of the Town may have any direct or indirect interest in this Agreement, nor participate in any decision relating to the Agreement which is prohibited by law. All parties hereto acknowledge that this Agreement is subject to cancellation pursuant to the provisions of Arizona Revised Statutes § 38-511. 14. Warranty Against Payment of Consideration for Agreement. Developer warrants that it has not paid or given, and will not pay or give, any third person any money or other consideration for obtaining this Agreement, other than normal costs of conducting business and costs of professional services such as architects, consultants, engineers and attorneys. 15. Nonliability of Officials, Partners and Employees. No member, official or employee of the Town will be personally liable to Developer, or any successor in interest, in the event of any default or breach by the Town or for any amount which may become due to _ Developer or successor, or on any obligation under the terms of this Agreement. 4 16. No Waiver. Except as otherwise expressly provided in this Agreement, any failure or delayby anYP Y art in asserting any of its rights or remedies as to any default, will not operate as a waiver of any default, or of any such rights or remedies, or deprive any such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 17. Severability. If any provision of this Agreement shall be found invalid or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement will not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law, P rovided that the fundamental purposes of this Agreement are not defeated by such _ severability. 18. Captions. The captions contained in this Agreement are merely a reference and are not to be used to construe or limit the text. 19. Entire Agreement Waivers and Amendments. This Agreement may be executed in up to three (3) duplicate originals, each of which is deemed to be an original. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the Town or Developer, and all amendments hereto must be in writing and signed by the appropriate authorities of the parties hereto. 20. No Agency Created. Nothing contained in this Agreement creates any partnership, joint venture or agency relationship between the Town and Developer. No term or provision of this Agreement is intended to be for the benefit of any person, firm, organization or corporation not a party hereto, and no other person, firm, organization or corporation may have any right or cause of action hereunder. 21. Assignment. The rights of Developer under this Agreement may be transferred or assigned by written instrument to any subsequent owner of a portion of the site. Notice of any transfer or assignment in accordance with this Paragraph shall be provided to the Town at least ten (10) days after the effective date of any such transfer or assignment, with the exception of the transfer or assignment of the whole by the Developer as provided below. The rights of the Developer under this Agreement may be transferred in whole upon written consent of the Town, which consent shall not be unreasonably withheld. [Signature pages follow] 5 IN WITNESS WHEREOF, the parties have executed this Agreement through their representatives duly authorized to execute this document and bind their respective entities to the terms and obligations herein contained on the day and year first written above. TOWN OF QUEEN CREEK, a municipal corporation • By: / ! ._�/11i . -�!� A Wendy"dman-Kerr, Mayor AT_`EST: ,,(2. (i _i,_,-' t‘ ' '-, 14:3-6--LviStl\i , Jel rifer Robi son, Town Clerk 7 APPROVED AS TO FO 21/,d4c,/,,,r ,,,4,, Mariscal, Weeks, McIntyre &Friedlander, P.A. Town Attorneys STATE OF ARIZONA ) • ) ss. County of Maricopa ) • ed ed bef e f da /Oltefifthe41.The fore orn instrument was acknowl g oz _me t �V� y of , . ±dc4flOfrk'JT the YYjcrof the Town of Queen 200�, byLLLQY)c, - Creek, a municipal co oration of the State of Arizona, on behalf of the municipal corporation. a-f,j-/vt,.L,> -fdh,cyui_t,vtotary Pf My Commission xpires: ,-,.--.____- :.�- a ,.:_--,-a ::; ;Y�: . )c)-- ic— C)4 ,,: r (I --t--... .,.:..... A Notary Public r'a'y-dna _ .,.. mil 4,..,%=-4,--I,,,, ,--. --.—. ic :ti !: \-.:-... .,....__:::::?.:::„ ,...�..t .:••..res• .< -.r.. . ,),i ,...,:. ,.,2,..:,..,5..„ ..-.)e,-;E,,,,-f-4-,,,,,, ,,.; :,0f.,., 6 POWER ROAD MARKET PLACE, L.L.C., - an Arizona limited liability company - By: SUNBELT PR MARKET PLACE LTJ 1P, an Arizona limited liability limited partnership, Its Manager By: SUNBELT HOLDINGS MANAGEMENT, INC., an Arizona corporation, its Ge ral Partner By: L, 44_ Its: E5 1 Title: 7 STATE OF ARIZONA ) ) ss. County of Maricopa ) . The foregoing instrument was acknowledged before me this day of November, 2003, by John W. Graham the President of Sunbelt Holdings Management,Inc., an Arizona corporation, as General Partner of Sunbelt PR Market Place LLLP, an Arizona limited liability limited partnership, as Manager of Power Road market Place, L.L.C., an Arizona limited liability company. 0,LLUI fl(1 Notary Public My Commission Expires: 3/ Li o?C)0OFFICIAL SEALL1E M .� ' JU KING •�� NOTARY PUBLIC-ARIZONA MARICDPA COUNTY My Comm,Expires March 14,2005 /) OWNER CONSENT The undersigned is the owner of fee simple title to all of the Site (as defined and p described in the foregoing Agreement). The undersigned hereby consents to the foregoing g g Agreement, and agrees with such Agreement shall be binding upon and shall run with the Site. First American Title Insurance Company, a California Corporation, as Trustee under Trust No. 8558 'Yki/ BY: t5-7 .,—_ Ge-v-- Its: ES Cat w 6 P -fc_ 't STATE OF ARIZONA ) ) ss. County of Maricopa ) was acknowledged before me this 20/ day ofAJok-1 ,-, , The foregoing instrumentg 200 3 by /27 „,,- A c/1. . s ., -, the 1c i- i cDA r- of First American Title Insurance Company, a California corporation, as Trustee under Trust No. 8558. c , //1/Y/t) --- Notary Public j.• .•,iiihpiiiii i- :• r`s,.A Air ii NEIL C.MOFFETT fiOTARY PUBLIC-STATE OF ARIZONA • t.'” MARICOPA COUNTY s My Comm.EL,i.za&317 24.2087 F:XUsersWFJB\Queee Creek-General(13457-1)1Development AgreementaTowcr Road Market Place\Pre-Dft#3DevAgr10-17-03-DRAFT#2.doc . 9 EXHIBIT A LEGAL DESCRIPTION 10 EXHIBIT A LEGAL DESCRIPTION , OF PARCEL 2 OF THE MARKET PLACE AT POWER RANCH Job No. 01 2003 040 Date: October 28, 2003, PARCEL 2 A PORTION OF THE SOUTHWEST QUARTER OF SECTION 6, TOWNSHIP 2 SOUTH, RANGE 7 EAST OF THE GILA AND SALT RIVER MERIDIAN, MARICOPA COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A MARICOPA COUNTY HIGHWAY DEPARTMENT BRASSCAP IN A HANDHOLE AT THE WEST QUARTER CORNER OF SAID SECTION 6 FROM WHICH A MARICOPA COUNTY HIGHWAY DEPARTMENT BRASSCAP IN A HANDHOLE AT THE SOUTHWEST CORNER OF SAID SECTION 6 BEARS SOUTH 00 DEGREES 52 MINUTES 22 SECONDS EAST AT A DISTANCE OF 2629.95 FEET; THENCE ALONG THE EAST-WEST MID-SECTION LINE OF SAID SECTION 6; SOUTH 89 DEGREES 16 MINUTES 26 SECONDS EAST FOR A DISTANCE OF 33.01 FEET TO A POINT ON THE EAST LINE OF THE WEST 33.00 FEET OF THE SOUTHWEST QUARTER OF SAID SECTION 6, SAID POINT ALSO BEING THE POINT OF BEGINNING: THENCE CONTINUING ALONG SAID EAST-WEST MID-SECTION LINE, SOUTH 89 DEGREES 16 MINUTES 26 SECONDS EAST FOR A DISTANCE OF 1224.44 FEET TO A POINT ON A SOUTHERLY 40.00 FOOT RIGHT OF WAY FOR RITTENHOUSE ROAD; THENCE ALONG SAID SOUTHERLY RIGHT OF WAY, SOUTH 53 DEGREES 37 MINUTES 32 SECONDS EAST FOR A DISTANCE OF 1564.24 FEET TO A POINT ON THE NORTH- SOUTH MID-SECTION LINE OF SAID SECTION 6; �vD LANDc., , 4c- ..c\Fic,fk 41 37497 0 CHARLES STROUP �'5 xit r. AMEC Infrastructure,Inc. / - 4435 East Holmes Avenue 7" - Mesa,Arizona 85206-3372 Tel (480) 830-3700 j ' _ Fax (480) 830-3903 Page 1 of 2 www.amec_com. P:\Mesa\2003\000\0103040\SURVEY\LGLS+TXT\POWER RANCH MARKETPLACE PARCEL 2 10-28-03.doc THENCE ALONG SAID NORTH-SOUTH MID-SECTION LINE, SOUTH 00 DEGREES 44 MINUTES 05 SECONDS EAST FOR A DISTANCE OF 1734.37 FEET TO THE •SOUTH QUARTER CORNER OF SAID SECTION 6; THENCE ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 6, NORTH 88 DEGREES 53 MINUTES 42 SECONDS WEST FOR A DISTANCE OF 2499.45 FEET TO THE SOUTHWEST CORNER-OF SAID SECTION 6; THENCE ALONG THE WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 6, NORTH 00 DEGREES 52 MINUTES 22 SECONDS WEST FOR A DISTANCE OF 1168.52 FEET; THENCE SOUTH 89 DEGREES 16 MINUTES 26 SECONDS EAST FOR A DISTANCE OF 33.01 FEET TO A POINT ON THE EAST LINE OF THE WEST 33.00 FEET OF THE SOUTHWEST QUARTER OF SAID SECTION 6; THENCE ALONG SAID EAST LINE, NORTH 00 DEGREES 52 MINUTES 22 SECONDS WEST FOR A DISTANCE OF 208.71 FEET; THENCE NORTH 89 DEGREES 16 MINUTES 26 SECONDS WEST FOR A DISTANCE OF 33.01 FEET TO A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 6; THENCE ALONG SAID WEST LINE, NORTH 00 DEGREES 52 MINUTES 22 SECONDS WEST FOR A DISTANCE OF 626.59 FEET; THENCE SOUTH 89 DEGREES 16 MINUTES 26 SECONDS EAST FOR A DISTANCE OF 33.01 FEET TO A POINT ON THE EAST LINE OF THE WEST 33.00 FEET OF THE SOUTHWEST QUARTER OF SAID SECTION 6; THENCE ALONG SAID EAST LINE, NORTH- 00 DEGREES 52 MINUTES 22 SECONDS WEST FOR A DISTANCE OF 208.71 FEET; THENCE NORTH 89 DEGREES 16 MINUTES 26 SECONDS WEST FOR A DISTANCE OF 33.01 FEET TO A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 6; THENCE ALONG SAID WEST LINE, NORTH 00 DEGREES 52 MINUTES 22 SECONDS WEST FOR A DISTANCE OF 208.71 FEET; THENCE SOUTH 89 DEGREES 16 MINUTES 26 SECONDS EAST FOR A DISTANCE OF 33.01 FEET TO A POINT ON THE EAST LINE OF THE WEST 33.00 FEET OF THE SOUTHWEST QUARTER OF SAID SECTION 6; THENCE ALONG SAID EAST LINE, NORTH 00 DEGREES 52 MINUTES 22 SECONDS WEST FOR A DISTANCE OF 208.71 FEET TO THE POINT OF BEGINNING. THE ABOVE DESCRIBED PARCEL 2 CONTAINS 6,009,151 SQUARE FEET OR 137.9511 ACRES MORE OR LESS. <.-F2 ,ce..'s ilb 0."..7Y, \FIcAr 14i374 a7 G,'`'i CHARLES rt‘ \0 STi-ZutiP 10, : \ .- S)-';.2rde IP,_.,, : ti .sr'eat‘i r,,,,,Or / _------,( 7 '''' 7. l Page 2 of 2 P:\Mesa\2003100010103040\SURVEY\LGLS+TXT\POWER RANCH MARKETPLACE PARCEL 2 10-28-03.doc SKETCH TO ACCOMPANY LEGAL PARCEL 2 OF THE MARKET PLACE AT POWER RANCH POINT OF COMMENCEMENT N 1/4 OCR, SEC. 6 FD. MCDOT BC IN HH/ T.25., R.7E. W 1/4 COR, SEC. 6, T.2S., R.7E. �'- EAST—WEST MID—SECTION LINE 58916'26"EN 5142.15' _N 1224.44' 1247.87' 2636.83' POINT OF BEGINNING SOUTHERLY 40' ROW W S EAST LINE OF THE WEST 33', Seo �,� n_ \ L3 11,N7',4, _ cam, L1 SW 1/4 � c..rc.'oiegre- I2co L3w e/. W c(?) -------"-------- � LINE OF THE WEST 33', � EAST .4' cn c� 33' SW 1/4 NN11)0 0 -* In.'1\rN--.L3 ss L1 .��, , IN NWEc ST LINE, SW 1 /4 cRr) -;')c) ilj ch -J ' ,'(,).\) VJ L2 ei- .c.' '' P '-"*-----------EAST LINE OF THE WEST 33', -t4 p SW 1/4 L3 z P4 L1 cg p L A ND S z W WEST LINE, SW 1/4 0 LJ 4� 4, G ,._ N p L. 37497 o w LINE TABLE CHARLES d- LINE BEARING I DISTANCE STROUPc I N a • o N in LT S8916'26"E 33.01' �� s'9- P. o w N 00 >, , 0 N,. ��•S !— co L2 N 89 16 26 W 33.01' .N.,_____ ON„, L3 N 00.52'22"W 208.71' _ 0 L4 N 00°52'22"W 626.59' - z / c FD. MCDOT BC IN HH 0 SW COR, SEC. 6 z T.2S., R.7E. "z---SOUTH LINE, SW 1/4 S 1 /4 COR SEC. 6 N88'53'42"W T.25., R.7E. --\\ GERMANN ROAD 2499.45' DATE: OCTOBER 28, 2003 400 0 400 800 AMEC Infrastructure, Inc. 4435 E. HOLMES AVENUE feet MESA, AR ZONA 85205 scale PHONE (480) 830-3700 are H O R I Z: 1 "=400' FAX (480) 830-3903 i nvnanRcnl nWn .1nR 4n, 7nn� nan EXHIBIT B CONCEPTUAL SITE PLAN FOR THE RETAIL CENTER 11 a�ro/ a `°p � co.= Lva �NY7 F.,,g..1 N^ o: a ve.•, wXc • Si,' .1 N T P w ® r o4 a~< o0 1 H Q u . SC �O tY S p�� d Q 4 w///1� 4Li L e o : ¢ Q t�8$ N h [ " 4- liiMpd V W a a < M N y n y 00 V!Vl L Q E •�F— <_g o t".. � is w / 3a Q .. 87 �� =ecy A _ Ar e�K .. ca r2 "' Q J -._ 1G PI O N O ` _ ——1+ ., L. - N P1 __ _:,1".1t J F W d —en�o In �+ LLL h K3Xp31I Z. Z 8 a H Q ..0 _ - _ A v 3 F a _ • 07110 ek (� �-', i z° VI 9o� Q @o c`..),ti z8pv u ren\� BIZ irrrE 18:22 '4 i t0-1-i -., 1::::1 R O t f0 * K O I I I - z J . E Id I N - I Ia u ►Ri i_� •� flW Lc �- �►_M • E N_ J Id<1. • ' li -, • l�,^\. / �, •� IF n - 7MIGVQ'1-4.nu., 4-.......-4 .E.' I — ud 3Wti4:: W ! =E-p p L -; . . � • m:, — IIoV=iJ2 wcd • d CO\ c,, ......... J41:4w3.11-1:114.vii ja - A' o p F!AIA o HSN -1- _w 7 --1 - l L- -J ��\\ \ 7 \ ---,,S,..------ I , / .t 1.____J \\\\ is \ \ ,� • - RSA I ��( :'� I --i ~r 111 \ \\ - -F I _ ` �i M 11 Iii/ -- �1 (^ _I_ __ . I1Et = d z 1 oO :11 :: E. Y ::: = 1 :Y I I \ \ \'',... ...... ....1--!-- 1 i • :.\F6 t -i : \ ... . o� • ts I d r _ limin S;:10 ,-, .-Ilt ' 42 .PS PS C ,: ] \ \1.:,,''b-' -, E_' ''j ;'' OHO I 3,..... 41_., 11 1 ` T = ®: 2r I 1 i III I IliI i I2i 1I I Ali $M .! .1,11.1aW1110u • h...-.••'•• .% ±1 I t" \L:'-..--Y.N --er-_:----7-___It ii_em. ____Aliwima .. __,.... —. __.-- 141111011L_ Alp.1Ili''''' y LI Sb ig o VM> _^ u ii 1 V« •• I I I w U C1.4 E4 C4 0 a EXHIBIT C Infrastructure Improvements Rittenhouse Road Improvements $ 1,600,000 Rittenhouse Right of Way— approx. 343,200 sq. ft. @ $1.00/sq. ft. $ 343,200 Total Maximum Cost—approx. $ 1,943,200 Total Maximum Reimbursement. $ 1,500,000 12 EXHIBIT D DIAGRAM OF REALIGNED RITTENHOUSE ROAD THROUGH THE SITE 13 ' 6t¢ V Cu c q` I 1 ;E s' •-- Lc 2 4 I O N ' in " Z o .�..+ W I {,W ill Uw 1 � a Ou IrYr1YSSOS s W Cti M} 1S dlvNna L- L % 1 ' // /' ' q i / , . . .4 G r�Sr .1 ... ,4:), .. —I-, I ... _ er - ,,,,a/ / 7 r O . ,E8 / -.,- W �1 (.5 / • 1.4 .- V to 1 t..,-,, 0- .1 cn 7 /I - cig a. ,d , gv 1 1 tg.Es c4z _. o 1 ...r._,0 E. i 1 1 1 iso W ! W 1 ad. 0 - er ,r 4( ta., i 'g_-: :-.• cif i , H 'r ~ 1 � -�-11. 7~10 7,7:—Al_12 di 1 U S W \111 WW 1. .1.[Iier_11:4-:ii..:. VO I WI C3 . r6��L o i-Al'-riL .;____.7p. y . 1 >< 1 ' )r33li�N3zjo �-'u� e� e.-- II _ Il C -------—7--...--.- - ---V ("7 Pir 111138,0 JO..01 ' '' rn .1 I ii WbI AgI 21 w r yi.i ?a 7, g ..r 1 .. ',,,,51,,,.e I 4... ri 1W+W D ti R.12i8 if 1 r Wed 1 ` tg IS 13.W fJ/1 Ni:• u /1" � m 1I __ .... 1 1 v ,� // s Li 43 cn / ! x x I z z 4.1 dx �x -1//g ' : t4 E-• C�E-� W z O C�7 z N C� W 1 1 cg O a � / a 8 t ,h( / .‘ RESOLUTION 239-00 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE,TOWN OF QUEEN CREEK, ARIZONA, APPROVING RESOLUTION 239-00 PURSUANT TO A.R.S. § 9-500.05, THE DEVELOPMENT AGREEMENT BETWEEN THE TOWN AND VICTORIA LUND INVESTMENT GROUP, LLC FOR THE PLANNED AREA DEVELOPMENT KNOWN AS VICTORIA PAD. WHEREAS, A.R.S. § 9-500.05 authorizes the Town to enter into development agreements relating to property within the municipality; and, WHEREAS the development agreement between the Town and Victoria Lund Investment Group, LLC, attached hereto as Exhibit"A" and incorporated herein by reference, is in conformance with the General Plan for the Town of Queen Creek. NO M �'� THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE TOWN OF QUEEN CREEK, ARIZONA, AS FOLLOWS: Section 1: Development � That the A eement between the Town of Queen Creek and Victoria Lund Investment ent GLLC, attached hereto as Exhibit "A" and incorporated herein by reference, is hereby Group, ' adopted as presented. Section 2: That the Town Mayor, Town Manager, the Town Clerk and the Town Attorney, as are herebyfurther authorized and directed to sign the development agreement and execute all appropriate, other documents and instruments and to take such actions as necessary or appropriate to consummate the transactions contemplated by this Resolution. PASSED AND the ADOPTED byMayor and Common Council of the Town of Queen Creek, Arizona, this y 6th day of December, 2000. FOR THE TOWN OF QUEEN CREEK: ATTEST TO: /di; ) C. /' _cc.5-7-•-- Wendy ,,Fe %� an-Kerr, Mayor ennifer F' Robinson, Town Clerk REVIEWED BY: APPROVED AS TO FORM: 410 Cs- T' i‘ a, k ' p a S-elhammer Town Manager William E. Farrell, Town Attorney Resolution 239-00 Page 1 of 1 major transportation port and important high technology, aerospace along with tourism opportunities for the region and community. PART VII. TARGETED INDUSTRY CLUSTERS AND IMPLEMENTATION STRATEGIES Each of the clusters listed were based on revenue generation, wages, environmental impact, community compatibility,com atibili , existing or planned infrastructure and the realistic prospect of industry attraction. Queen Creek clusters are divided between primary and secondary. Primary clusters are those industries that would be most desirable to the community and likely to be eligible to receive Town incentives. Incentives could include waiving of permit fees, accelerated plan review, and utilities extensions. Primary Clusters Retail: Retail sales taxes are a primary revenue source to operate the local government and so that resident services are maintained at an acceptable level of service. Both large and small retail users that meet ordinance requirements are encouraged to locate in Town Center. PP High Tech Support: Due to Queen Creek's proximity to ASU's Williams Campus and its g specific focus on electronics, software support & development, and aeronautical technology this cluster is desired to implement the Employment Type A and B areas of the General Plan. These businesses are generally small to mid-size companies that need little office space but perhaps larger s lar er manufacturing and assembly space. These uses produce high wages, sales tax generation and economic multiplier effects consistent with generating g ancillarybusiness opportunities. Additionally,with the location of major fiber optic lines pP along the Ellsworth and Rittenhouse corridors, the community is poised to accommodate these business opportunities. Secondary Clusters Tourism & Experience: The success of Country Thunder, Schnepf's Farm coupled with Queen Creek's rural setting and the San Tan Mountains made this cluster a natural selection by the commission. Possible future uses may include eco-experience resort, farm to market and agricultural boutique oriented uses. This cluster also would implement key provisions of � q the agriculture zoning district, which allows various mixed-uses. Page 11 of 20 January 17, 2001 Council Meeting Agriculture & Agribusiness: The community desires to capitalize on important resources nearby including ASU's Williams Campus School of Agribusiness. Agribusiness generally means businesses that process agriculture products. This cluster also implements the agriculture zoning district. Construction Materials: Queen Creek has become a favorable location for the construction industry. This cluster does not include actual home construction, but rather companies that supply the resources for residential and commercial development. Alliance Wholesale Lumber and Decorative Trim are just two businesses that are located within Queen Creek. Cluster Implementation Strategies Cluster: RETAIL(Primary Cluster) Goal: Create a viable retail community with a variety of businesses that serve the majority of the residents that provide substantial sales tax revenues for the Town. Benefits: ➢ Revenues for operating the Town. ➢ Provide basic goods and services. ➢ Provide employment ent o pp ortunities. p ➢ Retain and/or expand existing businesses. ➢ Social interaction. ➢ Pedestrian oriented Town Center. Actions: 1. Create appropriate zoning for commercial development. 2. Provide a clear direction regarding location and regulation. 3. Create/consider/evaluate incentives for high sales tax revenue businesses. 4. Create a timeline for permitting of commercial outside Town Center. 5. Create parking solution. Accountability: 1. Town Council. 2. Town Staff 3. EDC Time Frame: Start Date: Immediate Target Date for Completion: 6 months to 3 years. Page 12 of 20 January 17, 2001 Council Meeting 111 Ei 10. Evaluate citizen and community-wide concerns. 11. Partner with Williams Gateway Airport, state tourism authority 12. Undertake effort to greater educate community about this cluster 13. Establishment of Chamber of Commerce 14. Create a marketing brochure Accountability: GROUP CONTACT 1. Town Staff/Council Staff 2. Town/Canyon State Academy 3. Town Manager's Office Staff 1 4. Planning/Economic Development Staff Time Frame: I Start Date: 9/14/99 Target Date: 9/13/2002 Evaluation Frequency: 6 months Obstacles: > Community lack of understanding. ➢ Anti-growth sentiment Cluster: AGRIBUSINESS/AGRICULTURE (Secondary Cluster) Goal: Develop a diversified agribusiness fanning cluster to complement and preserve the rural lifestyle. Benefits: > Establishes and supports a tourism destination > Supports rural quality of life > Promotes community activities and social interaction > Preserves Town character and history > Maintains current agricultural businesses > Implements the agriculture zoning district Actions: 1. Establish a farmer's market 2. Establish Chamber of Commerce to coordinate events 3. Town to explore ways to encourage, implement and create Page 15 of 20 January 17,2001 Council Meeting taxable sales, promotejob creation and further the economic development goals established in the Queen Creek General Plan. a. Incentives that may be considered in full or partial by Mayor and Council 1. Waiver of Planning and Zoning Filing fees(except for rezoning applications, due to public hearing costs). 2. Waiver of Engineering Review Fees. 3. Waiver of Plan Check and Building Permit Fees 4. Sales tax incentive 5. Public contribution of off-site improvements limited to driveways, curb cuts, median installation and landscaping. 6. Expedited permitting process after Council approval of the Site Plan, Building Elevations and Landscaping Plan. 7. Marketing and promotional assistance 8. Assistance in obtaining government grants or technical assistance 9. For properties zoned"town center-tc"the town may investigate opportunities to assist in obtaining federal housing and urban development department or mortgage assistance through federal programs such as "Fannie Mae"to achieve affordable housing in this area. b. Criteria Used with Incentives. The Mayor and Council may use the following criteria but is not limited to using just the criteria established below, in order to offer economic incentives to specific non-residential users. The Mayor and Council reserves the right to use any number of criteria and performance clauses that establishes the appropriate return to Queen Creek taxpayers for any public investment made to encourage private investment in Town Center. 1. Number of jobs created by the user. 2. Type of jobs created by the user. Criteria such as average prevailing wage rate shall be competitive in the market place for similar position offered in neighboring communities. 3. Tax incentive shall only be made for a specified term, no longer than 10 years, and subject to the Town Center area demonstrating sufficient recovery of the incentive. Tax incentive shall only be considered after the Town hasp repared a thorough cost-benefit analysis. 4. Expedited permitting process. i. Planning, Building and Engineering Permits and Plan Check. The Town shall evaluate the ability to provide this incentive on an as- needed basis and depending on the complexity of the project involved. Page 18 of 20 January 17,2001 Council Meeting I ii. Assignment of an individual plan check staff person will be created to ensure timeliness through the review process 5. Waiver of Planning, Building and Engineering Services Fees. i. The Town Council shall evaluate this incentive on an as-needed basis depending on the complexity of the project and the Town's ability to recover fees from the overall project investment in Town Center. The Town Council reserves the right to waive only certain fees on an as- needed basis. 6. Public Participation in Off-site Improvements Criteria. i. The Town Council shall evaluate this incentive if a Redevelopment Area exists for Town Center. Properties within the redevelopment area, may apply for this incentive. The Council may then consider public contribution to curb cuts, driveways, median installation, landscaping and street furniture and related amenities. IX. MARKETING PROGRAM This section outlines various broad-based concepts that the Town may use to market the economic development program in its entirety. The marketing program will, from time to time, be revised to incorporate changing priorities and funding strategies adopted by the Town Council. Specific brochure and trade shows will be identified at a future date and will correspond to thep articular cluster. It is anticipated that the following strategies will be used to cultivate the primary cluster strategies. 0-5 years Trade show attendance—International Council of Shopping Centers and others as determined Land broker networking, outreach and development Direct mail Brochure development(Initial Response Brochures) Selected advertisement in publications and trade journals Participation with WGA, Mesa, and Arizona Department of Commerce as applicable Newsletters Creation/organization of a chamber of commerce to assist in marketing and promotional activities Other special events X. SUMMARY Page 19 of 20 January 17, 2001 Council Meeting is velo ment Strategic Plan anticipates The Queen Creek Economic De substantial interest in the p g1 over the next severalyears. The strategic plan attempts to focus energies and community � resources so that the General Plan is implemented. The strategic plan identifies 5 basic cluster industries and uses the format established by the state for cultivating industry for the community. } • . } } i I . • f } Page 20 of 20 January 17, 2001 Council Meeting SAHUARITA, ARIZONA • Message Page 1 of 2 Greenspoon, Karen - From: Jim Stahle [stahle@ci.sahuarita.az.us] Sent: Wednesday, November 24, 2004 8:27 AM To: Greenspoon, Karen Subject: RE: Request for information The Town of Sahuarita offers no incentives but does strive to provide courteous, efficient and effective service! From: Greenspoon, Karen [mailto:kgreenspoon@orovalley.net] Sent: Tuesday, November 23, 2004 10:45 AM To: ksimpkins@ajcity.net Cc: ryandow@cityofbisbee.com; creynolds@buckeyeaz.org; citymgr@bullheadcity.com; blee@cvaz.org; jon@carefree.org;jimt@ci.casa-grande.az.us; townmanager@cavecreek.org; Garrett.newland@ci.chandler.az.us; bpupo@chinoaz.net; michael.ortega@douglasaz.gov; bjcornwall@cityofelmirage.org; dwilcox@ci.flagstaff.az.us; himanshu.patel@town.florence.az.us; tpickering@fh.az.gov; Ifarmer@gilabendaz.org; Gregt@ci.gilbert.az.us; Ivasey@glendaleaz.com; mvyas@cableone.net; bdalke@ci.goodyear.az.us; flarson@cybertrails.com; rswenson@ci.kingman.az.us; citymanager@ci.lake-havasu-city.az.us; sbrackney@litchfield-park.org; mreuwsaat@marana.com; rbuss@cityofmaricopa.net; Dick.mulligan@cityofmesa.org; rpattison@cityofnogales.net; townmanager@cityofpage.org; tmartinsen@ci.paradise-valley.az.us; edev@ci.parker.az.us; Gould, Bob; stevep@peoriaaz.com; frank.fairbanks@phoenix.gov; kudall@ci.pinetop- lakeside.az.us; citystaff@cityofprescott.net; Itarkowski@pvaz.net; cseelhammer@queencreek.org; rjj@ci.safford.az.us; stahle@ci.sahuarita.az.us;jdolan@scottsdaleaz.gov; elevitt@ci.sedona.az.us; mmaag@ci.show-low.az.us; cpotucek@ci.sierra-vista.az.us;jim.rumpeltes@surpriseaz.com; Will_manley@tempe.gov; sdille@ci.wickenburgl.az.us; gdavidson@willcoxcity.org; dwells@ci.williams.az.us; cowdevsvc@cybertrails.com; bob.wagner@ci.yuma.az.us Subject: Request for information Good Morning: The town of Oro Valley is in the process of updating it's Community Economic Development Strategy and Guidelines. The Council has requested a report comparing our policies and procedures with others in the state. If you will, would you provide us with your current policies as they apply to the following: What incentives do you currently offer? Tax rebates? Infrastructure? Reduced Impact Fees? or any other. What industries (including retail) are specifically targeted for incentives? Do you offer the same or other incentives for existing businesses? Typically, we are under a time restraint on this report and would appreciate any information that you could provide at your earliest convenience. My email address is: k_greenspoon@orovalley.net. Thanks so much for your cooperation and have a great holiday!!! Karen Greenspoon Economic Development Specialist Town of Oro Valley (520) 229-4732 11/29/2004 SCOTTSDALE, ARIZONA Greenspoon, Karen From: Roderique, David [droderique@scottsdaleaz.gov] Sent: Tuesday, November 23, 2004 1:03 PM To: Greenspoon, Karen Subject: FW: Request for information White Paper on Attachment A Attachment B AZ Incentives2004u... Scottsdalelncenti... Incentives.doc... Attached is a white paper we recently did on incentives, which may answer a number of your questions. Attachment A is a detailed summary of every incentive that Scottsdale has provided. If you have any questions please feel free to contact me. Dave Roderique Economic Vitality General Manager City of Scottsdale • 7447 E. Indian School Rd. , Suite 200 Scottsdale, AZ 85251 480-312-7601 droderique@scottsdaleaz.gov Original Message From: Dolan, Jan Sent: Tuesday, November 23, 2004 11:06 AM To: Roderique, David Subject: Fw: Request for information Pls respond Jan Dolan City Manager Scottsdale, AZ 85260 480.312.2422 www.scottsdaleaz.gov Sent from my BlackBerry Wireless Handheld Original Message From: Greenspoon, Karen <kgreenspoon@orovalley.net> To: ksimpkins@ajcity.net <ksimpkins@aj city.net> CC: ryandow@cityofbisbee.com <ryandow@cityofbisbee.com>; creynolds@buckeyeaz.org <creynolds@buckeyeaz.org>; citymgr@bullheadcity.com <citymgr@bullheadcity.com>; blee@cvaz.org <blee@cvaz.org>; jon@carefree.org <jon@carefree.org>; jimt@ci.casa- grande.az.us <jimt@ci.casa-grande.az.us>; townmanager@cavecreek.org <townmanager@cavecreek.org>; Garrett.newland@ci.chandler.az.us <Garrett.newland@ci.chandler.az.us>; bpupo@chinoaz.net <bpupo@chinoaz.net>; michael.ortega@douglasaz.gov <michael.ortega@douglasaz.gov>; bjcornwall@cityofelmirage.org <bjcornwall@cityofelmirage.org>; dwilcox@ci. flagstaff.az.us <dwilcox@ci.flagstaff.az.us>; himanshu.patel@town.florence.az.us <himanshu.patel@town. florence.az.us>; tpickering@fh.az.gov <tpickering@fh.az.gov>; lfarmer@gilabendaz.org <lfarmer@gilabendaz.org>; Gregt@ci.gilbert.az.us <Gregt@ci.gilbert.az.us>; lvasey@glendaleaz.com <lvasey@glendaleaz.com>; mvyas@cableone.net <mvyas@cableone.net>; bdalke@ci.goodyear.az.us <bdalke@ci.goodyear.az.us>; flarson@cybertrails.com <flarson@cybertrails.com>; 1 rswenson@ci.kingman.az.us <rswenson@ci.kingman.az.us>; citymanager@ci.lake-havasu- city.az.us <citymanager@ci.lake-havasu-city.az.us>; sbrackney@litchfield-park.org <sbrackney@litchfield-park.org>; mreuwsaat@marana.com <mreuwsaat@marana.com>; rbuss@cityofmaricopa.net <rbuss@cityofmaricopa.net>; Dick.mulligan@cityofinesa.org <Dick.mulligan@cityofinesa.org>; rpattison@cityofnogales.net <rpattison@cityofnogales.net>; townmanager@cityofpage.org <townmanager@cityofpage.org>; tmartinsen@ci.paradise- valley.az.us <tmartinsen@ci.paradise-valley.az.us>; edev@ci.parker.az.us <edev@ci.parker.az.us>; Gould, Bob <BGould@ci.payson.az.us>; stevep@peoriaaz.com <stevep@peoriaaz.com>; frank.fairbanks@phoenix.gov <frank.fairbanks@phoenix.gov>; kudall@ci.pinetop-lakeside.az.us <kudall@ci.pinetop- lakeside.az.us>; citystaff@cityofprescott.net <citystaff@cityofprescott.net>; ltarkowski@pvaz.net <ltarkowski@pvaz.net>; cseelhammer@queencreek.org <cseelhammer@queencreek.org>; rjj@ci.safford.az.us <rjj@ci.safford.az.us>; stahle@ci.sahuarita.az.us <stahle@ci. sahuarita.az.us>; jdolan@scottsdaleaz.gov <jdolan@scottsdaleaz.gov>; elevitt@ci.sedona.az.us <elevitt@ci.sedona.az.us>; mmaag@ci.show-low.az.us <mmaag@ci.show- low.az.us>; cpotucek@ci.sierra-vista.az.us <cpotucek@ci.sierra-vista.az.us>; jim.rumpeltes@surpriseaz.com <jim.rumpeltes@surpriseaz.com>; Will_manley@tempe.gov <Will manley@tempe.gov>; sdille@ci.wickenburgl.az.us <sdille@ci.wickenburgl.az.us>; gdavidson@willcoxcity.org <gdavidson@willcoxcity.org>; dwells@ci.williams.az.us <dwells@ci.williams.az.us>; cowdevsvc@cybertrails.com <cowdevsvc@cybertrails.com>; bob.wagner@ci.yuma.az.us <bob.wagner@ci.yuma.az.us> Sent: Tue Nov 23 10:45:13 2004 Subject: Request for information Good Morning: The town of Oro Valley is in the process of updating it's Community Economic Development Strategy and Guidelines. The Council has requested a report comparing our policies and procedures with others in the state. If you will, would you provide us with your current policies as they apply to the following: What incentives do you currently offer? Tax rebates? Infrastructure? Reduced Impact Fees? or any other. What industries (including retail) are specifically targeted for incentives? Do you offer the same or other incentives for existing businesses? Typically, we are under a time restraint on this report and would appreciate any information that you could provide at your earliest convenience. My email address is: kgreenspoon@orovalley.net. Thanks so much for your cooperation and have a great holiday! ! ! Karen Greenspoon Economic Development Specialist Town of Oro Valley (520) 229-4732 This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 2 Greenspoon, Karen From: Roderique, David [droderique@scottsdaleaz.gov] Sent: Tuesday, November 23, 2004 1:03 PM To: Greenspoon, Karen Subject: FW: Request for information NA N. White Paper on Attachment A Attachment 6 AZ Incentives2004u... Scottsdalelncenti... Incentives.doc... Attached is a white paper we recently did on incentives, which may answer a number of your questions. Attachment A is a detailed summary of every incentive that Scottsdale has provided. If you have any questions please feel free to contact me. Dave Roderique Economic Vitality General Manager City of Scottsdale 7447 E. Indian School Rd. , Suite 200 Scottsdale, AZ 85251 480-312-7601 droderique@scottsdaleaz.gov Original Message From: Dolan, Jan Sent: Tuesday, November 23, 2004 11:06 AM To: Roderique, David Subject: Fw: Request for information Pls respond Jan Dolan City Manager Scottsdale, AZ 85260 480.312.2422 www.scottsdaleaz.gov Sent from my BlackBerry Wireless Handheld Original Message From: Greenspoon, Karen <kgreenspoon@orovalley.net> To: ksimpkins@ajcity.net <ksimpkins@aj city.net> CC: ryandow@cityofbisbee.com <ryandow@cityofbisbee.com>; creynolds@buckeyeaz.org <creynolds@buckeyeaz.org>; citymgr@bullheadcity.com <citymgr@bullheadcity.com>; blee@cvaz.org <blee@cvaz.org>; jon@carefree.org <jon@carefree.org>; jimt@ci.casa- grande.az.us <jimt@ci.casa-grande.az.us>; townmanager@cavecreek.org <townmanager@cavecreek.org>; Garrett.newland@ci.chandler.az.us <Garrett.newland@ci.chandler.az.us>; bpupo@chinoaz.net <bpupo@chinoaz.net>; michael.ortega@douglasaz.gov <michael.ortega@douglasaz.gov>; bjcornwall@cityofelmirage.org <bjcornwall@cityofelmirage.org>; dwilcox@ci.flagstaff.az.us <dwilcox@ci.flagstaff.az.us>; himanshu.patel@town.florence.az.us <himanshu.patel@town.florence.az.us>; tpickering@fh.az.gov <tpickering@fh.az.gov>; lfarmer@gilabendaz.org <lfarmer@gilabendaz.org>; Gregt@ci.gilbert.az.us <Gregt@ci.gilbert.az.us>; lvasey@glendaleaz.com <lvasey@glendaleaz.com>; mvyas@cableone.net <mvyas@cableone.net>; bdalke@ci.goodyear.az.us <bdalke@ci.goodyear.az.us>; flarson@cybertrails.com <flarson@cybertrails.com>; 1 rswenson@ci.kingman.az.us <rswenson@ci.kingman.az.us>; citymanager@ci.lake-havasu- city.az.us <citymanager@ci.lake-havasu-city.az.us>; sbrackney@litchfield-park.org <sbrackney@litchfield-park.org>; mreuwsaat@marana.com <mreuwsaat@marana.com>; rbuss@cityofmaricopa.net <rbuss@cityofmaricopa.net>; Dick.mulligan@cityofinesa.org <Dick.mulligan@cityofinesa.org>; rpattison@cityofnogales.net <rpattison@cityofnogales.net>; townmanager@cityofpage.org <townmanager@cityofpage.org>; tmartinsen@ci.paradise- valley.az.us <tmartinsen@ci.paradise-valley.az.us>; edev@ci.parker.az.us <edev@ci.parker.az.us>; Gould, Bob <BGould@ci.payson.az.us>; stevep@peoriaaz.com <stevep@peoriaaz.com>; frank. fairbanks@phoenix.gov <frank.fairbanks@phoenix.gov>; kudall@ci.pinetop-lakeside.az.us <kudall@ci.pinetop- lakeside.az.us>; citystaff@cityofprescott.net <citystaff@cityofprescott.net>; ltarkowski@pvaz.net <ltarkowski@pvaz.net>; cseelhammer@queencreek.org <cseelhammer@queencreek.org>; rjj@ci.safford.az.us <rjj@ci.safford.az.us>; stahle@ci.sahuarita.az.us <stahle@ci.sahuarita.az.us>; jdolan@scottsdaleaz.gov <jdolan@scottsdaleaz.gov>; elevitt@ci.sedona.az.us <elevitt@ci.sedona.az.us>; mmaag@ci.show-low.az.us <mmaag@ci.show- low.az.us>; cpotucek@ci.sierra-vista.az.us <cpotucek@ci.sierra-vista.az.us>; jim.rumpeltes@surpriseaz.com <jim.rumpeltes@surpriseaz.com>; Will_manley@tempe.gov <Will manley@tempe.gov>; sdille@ci.wickenburgl.az.us <sdille@ci.wickenburgl.az.us>; gdavidson@willcoxcity.org <gdavidson@willcoxcity.org>; dwells@ci.williams.az.us <dwells@ci.williams.az.us>; cowdevsvc@cybertrails.com <cowdevsvc@cybertrails.com>; bob.wagner@ci.yuma.az.us <bob.wagner@ci.yuma.az.us> Sent: Tue Nov 23 10: 45: 13 2004 Subject: Request for information Good Morning: The town of Oro Valley is in the process of updating it's Community Economic Development Strategy and Guidelines. The Council has requested a report comparing our policies and procedures with others in the state. If you will, would you provide us with your current policies as they apply to the following: What incentives do you currently offer? Tax rebates? Infrastructure? Reduced Impact Fees? or any other. What industries (including retail) are specifically targeted for incentives? Do you offer the same or other incentives for existing businesses? Typically, we are under a time restraint on this report and would appreciate any information that you could provide at your earliest convenience. My email address is: kgreenspoon@orovalley.net. Thanks so much for your cooperation and have a great holiday! ! ! Karen Greenspoon Economic Development Specialist Town of Oro Valley (520) 229-4732 This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 2 ECONOMIC DEVELOPMENT INCENTIVES A WHITE PAPER PREPARED FOR: SCOTTSDALE CITY COUNCIL OCTOBER 2004 City of Scottsdale Economic Vitality Office 480-312-7989 economic@scottsdaleaz.gov Community Investments and Incentives Introduction Incentives have been present in the relationship between business and government long before the practice of economic development was created. Today a commonly askedquestion bycompanies looking for a new location or by existing companies lookingto renew their lease or buy property is "What types of incentives do you have to offer me?" While most of the national data and discussion on incentives reflect high dollar incentives for manufacturing activity or large business/office employers, in Arizona incentives are more typically related to retail development, due to Arizona's fiscal policy of strong reliance on sales tax revenues. Over the ast year, the discussion in Arizona of the merits of the use of incentives for p economic development purposes has escalated dramatically. Numerous high profile incentive deals and battles, such as the Chandler— Gilbert "car wars" with $100 million in incentives offered for a new auto mall, have led to a growing concern about the use and abuse of incentives. These discussions have led to a variety of suggestions on how to deal with this issue, including shared revenue agreements, legislative action to eliminate their use, and voluntary agreements between major cities. Thisp p a er will explore a variety of trends and specific data regarding economic development incentives. The first section is an overview of incentives on a national basis, followed by a discussion of Arizona incentives, and finally specific Scottsdale incentives. The second section deals with incentive programs and policies. Included as an attachment is a summary of every financial incentive offered by Scottsdale since the inception of its economic development program. Economic Vitali 4 edshare/incentives/whitepaperl0/14/04 Part 1: National and Local Trends The Need for Incentives Based on a national survey conducted by the International Economic Development Council (IEDC) the primary reason cities and states offer incentives is to remain competitive. When a company chooses to relocate or expand locally, nationally or internationally they narrow their search to communities that appear to fit their needs. The desire of the community and/or state to have the company in their locale dictates their interest and ability to invest in its future either through the capital investment and jobs the company will bring. States and cities continue to increase the locational ante, and corporate America has increasingly come to expect incentives as a standard part of doing business. Incentives escalate due to competing states/communities being more aggressive with their offerings, typically - but not always - at the company's request. The playing of one community off of another is what has set the standard for the high profile incentive wars typically seen in the eastern portion of the US. Site Selection magazine conducted a survey of corporate real estate professionals -- almost 80 percent of respondents said incentives enter into their firms' corporate location strategies. Many companies do not rank incentives as an important initial location factor; however, once the search has been narrowed to several locations, incentives may play a significant role in the final decision-making process. Companies ask for incentives for several reasons: • companies use them to offset hard or soft costs associated with the relocation • companies need the government to assist with, build or provide hard or soft infrastructure • they can assist in a company's bottom line • they have become standard practice In the 1990's, according to IEDC, the following incentives were the most often used (based on frequency): 1. On the job training 2. Customized job training 3. Low interest rate loans 4. Site Infrastructure assistance 5. Accelerated Permitting Process/Fee Waivers 6. Pre-hire assistance 7. Property Tax reductions 8. Enterprise Zone tax credits 9. Industrial Development Revenue Bonds Economic Vitali edshare/incentives/whitepaperl0/14/04 Theartici ation of municipalities in these incentive packages is typically limited to site p p p infrastructure, property tax abatement, property buy downs, and accelerated permitting process/fee waivers. The other types of incentives listed are more typically the responsibility of federal or state governments. It should be noted that some of the p Y incentives listed may not necessarily financial in nature — i.e. accelerated permitting process — but nevertheless do play an important role in a company's decision-making. In addition to these structured types of incentives, companies also typically receive locally based, private sector assistance. Local banks, realtors, moving companies, accountants, attorneys etc. can assist both the company and its employees through a wide range of services, including below cost home loans, banking services, realty companies,services, moving and other relocation assistance. This function is typically handled private h the sector, such as through a local Chamber of Commerce or independent Economic Development Organization. These services are often given to all clients regardless of whether or not they are requesting additional financial incentives. National Incentive Trends — Eastern U.S. Communities and states in the eastern portion of the United States are typically much more aggressive and forthcoming with incentives. States and cities primarily target manufacturers and large employers as their focus is on capital investment and jobs in g their state/community. The structure of the incentive activity in these states and cities is dictated byseveral factors —the decline in their employment base, the legal ability to offer r a wider range of incentives relative to the West, the necessity for retention and attraction of manufacturers and major employers considering lower cost or more desirable locations, communityand political support for incentives, and a municipal and state revenue structure based on property tax. The table below shows a few examples of huge incentives packages given to companies in the last decade or so, with some topping $500,000 in incentives per All of the projects shown were in competition with other states and cities employee. whose incentive packages were just shy or 'not quite right' for the company. YEAR STATE COMPANY JOBS INCENTIVE $/JOB 1991 Indiana UAL 6,300 $451 million $ 71,587 1993 Alabama Mercedes 1,500 $253 million $168,666 1997 Penn. Kvaevner 950 $307 million $323,157 2000 New York IBM 1,000 $504 million $504,000 2002 Alabama Hyundai 2,000 $252 million $126,000 2003 Texas Toyota 1,600 $133 million $ 83,125 The revenue structure of states and communities in the eastern half of the U.S. is typically based on property tax. The result of tax reductions and waivers often means Yp Y schools and other tax reliant entities (Community Colleges, Flood and Fire Districts etc.) Economic Vitality ty edshare/incentives/whitepaperl0/14/04 do not receive tax revenues or receive reduced amounts of revenue as negotiated by state and community officials. Taxes also may not flow to the municipality or state, constricting their ability to provide services and limiting their bonding capacity. Research shows that until recently relatively few `checks' were in place for performance standards and location longevity. Cost/Benefit Analyses that have been independently reviewed have revealed estimates of extraordinary payroll multipliers and assumed significant spin-off economic activity in order show any level of return on investment. Clearly, massive incentives skew traditional location decision-making by degrading the efficiency of markets. While technology and innovation in materials and business practices have accommodated a more footloose market environment, location decisions made by high dollar incentive packages are made to accommodate money versus proximity to raw materials, work force, transportation networks and market locations. p Y Further, if incentives encourage businesses to select inferior locations, public subsidies are probably being used to cover market inefficiencies. One of the most significant incentive providers over the past decade has been the State of Alabama. Over the past ten years Alabama has paid out well over $583 million dollars in incentives for four automobile manufacturing or assembling facilities. This `investment' has been for 7,000 automotive related jobs (average payout: $83,300 per job) with an outlay of $2 billion in capital investment. All of the deals include a 10 or 20- year exemption of state property taxes and a same period elimination of all or some pgcity percentage of and county property taxes. Cost benefit analyses made for two of the deals are vague in nature and generous in their assumptions. The state assumed manufacturingsuppliers would chose to locate in Alabama and a multiplier effect of at least 6 was used to determine payroll impact (multiplier of 6: $40,000/year wage equals $240,000 in economic impact). According to an article by Katherine Zachery in WardsAuto.com, these aggressive incentives have caused a severe financial strain for Alabama, and a resultant political upheaval: "Gov. Don Siegelman of Alabama, who offered these incentive packages ... to lure auto makers to his state, was voted out in November's elections, aborting his mission to make Alabama the automotive capital of the South. Those massive incentive packages — most recently given to Hyundai Motor Co. Ltd. and Honda Motor Co. Ltd. — became a key factor leading to his ouster". In the case of one of the automotive plants attracted (Mercedes Benz), Alabama rushed incentive legislation through specifically for the Mercedes plant in 1993. The Legislature failed to realize that other companies would choose to take advantage of the legislation andq uickly qualified for the Mercedes designed incentives. Eighty-seven firms took advantage of the incentives the bill offered before the State could alter the legislation — legislation that was later struck down by the courts. The State of Alabama had to raid its pension fund to make promised payments to Mercedes. While Alabama has made an aggressive effort to build an automotive manufacturing base from nothing, other states in the southeast and northeast have been as generous in their incentives and projected returns and, often, at the cost of public education and public services. Note that Mercedes played three states off of each other to enhance the incentive packages offered to the company. Economic Vitali edshare/incentives/whitepaperl0/14/04 National Incentive Trends —Western U.S. Generally speaking,s eakin states and cities in the western U.S. struggle with different incentive issues. The revenue base is generated primarily from sales tax revenues, and giftingclauses exist in many of the western states' Constitutions. As a result, targets for economic development are not comprised of just manufacturers and major employment generators, but also any business with the potential of creating significant new direct tax revenues. For much of the last 30 years the western U.S. has been in an economic expansion relative to the eastern U.S. The need to lure jobs to communities in the west is not as important as in the east, as many of the places in the west have been more successful at luring new businesses due to quality of life factors. However, incentives — regardless of geography— are part of the location decision process to many companies. Many states and cities in the west view incentives a necessary part of doing business. According to IEDC, the majority of economic development practitioners in the western US do not believe they have enough `incentive' capabilities. In the west, government issued loans and bonds, sales tax abatement, and streamlined zoning and development processes are the most commonly used incentives -- a different list than noted previously in this paper. Western states use public infrastructure projects, sales tax rebates, infill and redevelopment to provide incentives for investment and or revenues to the community. State and federal programs typically provide for job training programs, enterprise zones, Industrial Revenue Bonds, corporate income tax incentives, and property tax incentives. The majority of economic development practitioners also note that they manage incentives on a case-by-case basis versus legislation and policy according to IEDC. Arizona Incentives Compared to most other states, the State of Arizona offers very limited incentives for new jobs and capital investment. The incentives that do exist are typically aimed at rural and disadvantaged areas, and focus on job creation activities, including: • job training funds (typically totaling around $3 million per year) • lottery-sponsored CEDC (Commerce and Economic Development Commission) p funds (typically several million per year) used for infrastructure improvements • tax credit programs (Enterprise Zones, Foreign Trade Zones, R&D income tax credit, pollution and energy programs, etc.) • Industrial development revenue bonds (tax free bonds) Rather than focus on direct financial incentives for specific businesses, the State has philosophically focused on reducing tax rates and improving the business climate as a means of providing an incentive to all businesses. However the lack of meaningful state incentives often hampers Arizona's ability to attract the largest, most desirable 6 Economic Vitality edshare/incentives/wh itepaperl0/14/04 employers (such as corporate headquarters, Fortune 500 firms, signature E.D. projects) who typically are offered very significant incentive packages in other states. Nearly every Arizona community is highly dependent upon sales tax revenues, and therefore, most of the incentives offered by cities over the past decade have been related to retail developments with the potential for significant new sales tax revenues. Every majormetropolitan Phoenix community has offered incentive packages of one p form or another for retail development over the past decade. Typically the most desirable projects, and therefore the ones to receive the greatest amounts of incentives, are regional level retail developments —those types of retail development that will pull in people from significant distances (importing sales tax dollars from other communities). Therefore, the most desirable projects are typically regional malls, major power centers, auto dealers, and unique, high volume retailers (Costco, IKEA, Bass Pro Shops, etc.). In recent years, the City of Phoenix has become very aggressive in going after major retail projects. Between 1989 and 1995 Phoenix provided over $10 million in incentives to 15 different retail projects. Comparatively, in the year 2000 alone, the City of Phoenix agreed to $12.7 million in incentives for one just one project - a concentration of luxury auto dealers and a retail center - at the former Chauncey Ranch; this was recently amended by the City to add an additional $3 million for Shumacher Mercedes. The $15.7 million was structured on a performance based sales tax rebate from the City off of the project for 5 years from Certificate of Occupancy issuance. In addition to the rebate, the City of Phoenix agreed to install an $11 million pump station to serve the property. Finally, a pre-annexation agreement allowed the development to receive building permits from the County rather than the City, thus helping the developer avoid about $3 million in development impact fees for the site. The total package for this project is approximately $30 million. Manyother Valley communities have been very aggressive in recent years. Some of the notable incentives over the past year have included the southeast Valley's "car wars" — Gilbert's $60 million package and Chandler's $40 million package for the next automobile dealer complex, as well as the 101/202 power center battle between Tempe ($36 million) and Mesa ($42 million). Scottsdale Incentives The City of Scottsdale has generally used performance based sales tax rebates tied to public infrastructure for its incentive investments. Typically a portion (most of the time 50% or less) of the new tax revenue generated for the city is paid back to the developer as revenues are generated. The rebate is typically made to support public infrastructure built and paid for by the developer. Rebate eligibility is capped for to a specific time frame - typically 5-10 years, and has always been performance based. The payback amount and time frame are calculated in conjunction with the developer and or tenant of the project. The developer is made aware that their payback is Economic Vitali 4 edshare/incentives/whitepaperl0/14/04 dependent solely upon their (or their tenants) ability to generate sales tax dollars over a certain period of time. Staff further performs projections for a 20-year Return on Investment on the project for the community. Attachment A, titled "Economic Investments", provides an overview of all the economic development investments made by the City since the inception of its E.D. program. This attachment is broken down into 4 separate categories, representing the four key motivations the City has used to justify the incentives —tax generation, job creation, redevelopment, and historic preservation. Some observations based on this include: • The City has invested in 18 projects since 1987, an average of just one per year. • For projects specifically invested in for the purpose of increasing sales tax revenues (retail), the City will invest a total of$17.9 million over a 20 year period, and receive an estimated total of $331.1 million in new revenues from those projects — meaning the incentives represent only a 5.4% cost as a percentage of new revenue. • For projects invested in for other purposes (redevelopment, job creation, or historic preservation) the City's return on its investment is lower, but those projects have other primary benefits associated with them (spurring on redevelopment, creating high paying jobs, or preserving historic structures). • One project did not met its revenue projections (IMAX), and therefore received less of an incentive than it was originally entitled to, and one project left town (Surface Tek) and was required to reimburse the City for its incentive; this demonstrates the performance nature of these agreements —when they do not do what they said they were going to do, the incentive is reduced or eliminated. Other incentives commonly used by Scottsdale tend to be non-financial in nature. The most significant is the City's ability to provide an expedited review and permitting process; for businesses, time is money, and so anything the City can do to get a new business open sooner is a benefit to them. This has been the most often used form of incentive over the past decade, and has been particularly important to major new office users. Additionally, the Scottsdale Chamber and the private sector provide a wide range of services (such as banks and relocation services) to assist a company and its employees in their move to Scottsdale. Finally, Scottsdale does offer qualifying businesses the opportunity to take advantage of tax exempt financing through the Scottsdale Industrial Development Authority. For certain businesses (primarily small manufacturing facilities and non-profits), this mechanism can assist by providing significant savings through lower interest rate financing. In recent years, given lower market interest rates, this has not been an attractive incentive for most businesses, as the time required to go through that process can often negate the interest rate savings. Incentives offered by the State of Arizona, Maricopa County, the Maricopa County Community College System, and incentives offered in other metro area cities but unavailable in Scottsdale are listed in Attachment B "Arizona Incentive Programs". 8 Economic Vitalit-y edshare/incentives/whitepaperl0/14/04 Part 2: Economic Development Incentive Performance Tools Since incentives clearly have the opportunity to be abused, there are a number of tools available to economic developers to help insure that the incentives meet performance objectives and provide the benefits to the area. • Clawback Agreements In response to the lack of checks and balance mechanisms in incentive packages states and cities have begun to use `clawback' clauses in their agreements. Clawback agreements ensure that the tax incentive offered is related directly to the actual investment made. The clause or agreement may be tied back to a pro forma share of incentives to jobs and/or investment or establish minimum thresholds of such. When incentives are granted upfront, as is typically the case in the eastern U.S., it is critical that clawbacks be used to insure the benefits stated will be there; if not, the company is required to payback all or part of the incentive, or is penalized other ways. One of the more prominent cases relating to the enforcement of a clawback clause is the United Airlines facility in Indianapolis. Due to the economic slowdown in the travel market in 2001, United had stated the `changed market circumstances alter the circumstances behind the agreement.' While UAL had constructed some of the promised facilities and had hired 3,000 people, the clawback agreement agreed to by UAL and Indiana provided a minimum build out for facilities (which was not met) and a minimum number of jobs (also not met) and time frame for these numbers to be met. Since the required numbers in their agreement were not met, the clawback agreement was invoked. UAL has defaulted on their agreement, at a cost of$190 million. Until UAL's recent bankruptcy filing, United was in negotiations with the state of Indiana on repayment of that amount; now it appears the State of Indiana has to get in line behind other creditors and may never recover any of what is owed. Many incentive packages do not include enforceable performance standards or guarantees if any at all. An example is that of a 60 employee software company that had moved to Nebraska for $575,000 in cash and forgivable loans, which is now moving 12 miles away— to Iowa — after only a few years. Iowa has provided them with incentives to make the move, and without adequate performance criteria, Nebraska was left "holding the bag". Clawback agreements are simply a matter of good business, and they offer a mechanism to limit or effectively manage incentive risk. Performance Based Incentives In much of the western U.S., and especially so in Arizona, communities use a different mechanism to insure the effectiveness of incentives. Rather than provide incentives upfront, most incentives are structured as a "rebate" of future tax revenues; for example, Economic Vitali edshare/incentives/whitepaperl0/14/04 an incentive might be structured such that the project receives back a portion of the new tax revenue it generates to the community. Since the incentive is paid out based on the performance of the project, the community is never at risk. If the project never gets built, or closes immediately, then there is no incentive payment. If the project performs far better than expectation, then the incentive is paid off faster. Scottsdale has traditionally used this model as the primary structure of its incentive packages. In nearly every case, the project has performed to expectations, or better than expectations, and so the full incentive is paid. In one case (the IMAX Theater at the Scottsdale Galleria), that project did not perform to expectations, and therefore it did not receive the full amount it had been originally entitled to. Scottsdale has never had a situation where it paid for incentives but did not get the stated benefit, because of the structure of its agreements. Incentive Policies Another mechanism that is occasionally used by states or cities is that of a formal economic incentives policy. The idea is to formally state in writing the criteria and mechanisms under which that locality would give incentives. On the positive side, having an incentive policy levels the playing field for all businesses, and keeps out any subjective decision-making from the process. On the negative side, incentive policies can often have the effect of stimulating greater use of incentives, as businesses can tailor their projects to fit standard incentive criteria. IEDC notes that the vast majority of communities do not have incentive policies; rather, they handle incentives on a case-by- case basis or have "unwritten" policies. Incentive Policies: Comparable Cities In evaluating incentive policy from cities considered comparable to Scottsdale, most communities do not use an incentive policy and determine appropriate businesses to offer incentives to on a case-by-case basis. How these cities chose to offer incentives varies based on their economic development goals, politics and geography. Often communities do not offer their own incentives, but rather depend on incentives from other agencies, such as state governments. Stamford, CT is aggressively pursuing the enhancement of their entertainment district and offer incentive to appropriate entities. However their Brownfield program is federally funded. Plano, TX dropped their incentive policy after they discovered that "businesses and other communities where using it against them — businesses would tailor their proposals to coincide with the incentive policy, and then demand that they be given incentives even if they weren't necessary". Few of Scottsdale's comparable cities have economic development policies; a sample of some of the comparable cities is shown on the next table: Economic Vitality edshare/incentives/wh itepaperl0/14/04 City Policy Uses Criteria Incentive Irvine, CA No Incentives Lakewood, CO Case by Case Manuf./Office Job Creation Job Training Payroll (State Program) Investment Clearwater, FL Case by Case Manuf./Office 150% pay of Tax Credit and county wages Job Training min. 10 jobs (State Programs) Bloomington, MN Case by Case Manuf. TIF and Public Infrastructure Hampton, VA Case by Case Manuf./Office/ ROI 3 yr recapture Retail through tax revenues Plano, TX Case by Case Manuf./Office Job Creation Tax Abatement Payroll (state) Investment Arlington, TX Case by Case Manuf./Office/ Reinvestment Tax Abatement & Policy Retail Zone Min $5 mil in investment Rancho Case by Case Office/Retail Case by Case TIF Cucamonga, CA Stamford, CT Case by Case Manuf./Office Clean Up Brownfield (fed) Enterprise Zone (state) Incentive Policies: Metro Phoenix Locally, the picture shifts dramatically. Historically most Valley communities focused entirely on economic development in terms of manufacturing, distribution and office based employment creation. In the late 1980's/early 1990's local communities, including Scottsdale, began to also incent retail activities due to their high dependency on sales tax revenue. Most cities, including Scottsdale, continue to recognize the value of good jobs for their citizens, and have continued their efforts to attract major employers. But the vast majority of local incentives are provided for major sales tax generators. The City of Scottsdale set the model for the structure of sales tax rebate investments for metro area communities. Most of the municipalities in the Phoenix metro area have engaged in offering incentives to retailers using Scottsdale's model. The reasons why are the city reaps new sales tax revenues that would not otherwise be recognized, even if they are at a reduced level for the first few years (versus no revenues). The payback is performance based and time capped. The value of this structure of incentive is that Economic Vital edshare/incentives/whitepaperl0/14/04 there is little risk to the community for a loss, even if the project goes under, as the city has provided no upfront capital outlay. Many communities have tied development agreements to specific uses on a site such as Phoenix' agreement for the United Auto Group AutoMall on the Chauncey Ranch site. The Town of Gilbert has even structured the payback in a recent development agreement to the specific type of Target store that eventually will build in a shopping center (Target Greatland vs. Target Superstore). Most of the local communities, with the exception of Tempe and Goodyear, have chosen not use a written policy for general economic development incentives. The concerns expressed over using one is similar to that cited by Plano TX, that "companies will use a written policy against them." The City of Goodyear has a very specific incentive policy oriented solely to big box and large format retailers. However the City determines its utilization purely on a case by case basis. The City of Tempe's Policy includes twelve criteria that are considered in evaluating the request for incentives. Not all criteria have to be met and meeting any or all of the criteria does not insure that any incentive will be awarded. Existing companies are also eligible to apply for incentives under the criteria. The twelve Incentives currently being defined by the City (from eminent domain to waiver of permitting fees) are listed in the context of the Policy. The City of Tempe reviews its policy and criteria on an annual basis. Some Valley cities do have written policies regarding some very specific components of possible incentives. The City of Phoenix, for example, has a voter approved prohibition on the use of City financial incentives over $3 million for sports and cultural facilities without voter approval. These policies, however, tend to be extremely limited, and are not reflective of an overall economic development financial incentives policy. Scottsdale Incentive Policies While Scottsdale does not currently have a formal incentives policy, it has operated under a set of"guiding principles" regarding incentives: • Incentives are to be used very judiciously— only for those projects that provide significant benefit to the community and demonstrate a need for assistance. • Incentives are generally paid out of future tax revenues derived from the project itself, not paid upfront. • The incentives are performance based —that is, the City shares back the revenues derived from the project. If the project does not generate adequate revenues within a certain period of time, it does not receive the full payment. • There is a total dollar cap, and a time cap on all projects. • The project must have demonstrated net positive revenues for the City. • The City's assistance is tied to a direct public benefit, such as the provision of new public infrastructure. Economic Vita 4 edshare/incentives/whitepaperl0/14/04 Valley Communities Incentives City Formal Typical % of Sales Tax Typical Time Tool Policy? _ Rebate Frame Scottsdale No 25-50% 2-10 years Development Agreement Phoenix No 50% based on first years 3-7 years Development revenues Agreement Chandler No 50% of revenues 5-10 years Development Agreement Tempe Yes 25% Max 10 years Development Agreement Mesa No 50% of revenues 2-10 years Development Agreement Glendale No 25-50% 2-20 years Development Agreement Goodyear Yes 50% 5 — 10 years Development Agreement Gilbert No 40 - 50% 5-10 years Development Agreement The national debates that rage over corporate welfare and 'give aways' merit attention and are perhaps appropriately labeled. Officials in the eastern half of the U.S. have perhaps overpaid for jobs and capital investment as the debate between the cost of forgone tax revenues and the resulting economic benefits continues. However, keep in mind the high levels of unemployment and resulting declines in the quality of life that occurred in these areas following the mass out migration of industry from the "rust belt" to the "sunbelt" during the past 30 years. The opportunities that the sunbelt states offer, and the laws of the state constitutions of the western U.S. call for a more constrained incentives environment. The structure of the legal environment in which Scottsdale and other metro area communities work within dictate well-thought structure to the incentives available and offered. The political dogma of Scottsdale has historically and today required accountability. This has given Scottsdale an exceptional opportunity to use incentives to attract desired retail opportunities which bring not only new revenues but also offer a substantial Return on Investment for the community. Economic Vita 4 edshare/incentives/whitepaperl0/14/04 The Future for Incentives in Arizona There has been a tremendous amount of discussion in the past year about trying to eliminate or limit the use of incentives for economic development. There has been particular concern about retail incentives, due to the high profile incentive packages, and competitions between communities for major retail. A variety of suggestions have been made as to how to restrict incentives, including: • The use of"shared revenue zones", in which neighboring communities agree to share all retail tax revenue derived from major retail projects within a certain area near the borders of those communities. Scottsdale is currently in discussions with the City of Phoenix about the potential for a shared revenue zone for the future regional mall/town center which is likely to be developed at the Scottsdale Road/Loop 101 interchange. • The voluntary agreement by all cities in the Valley to either not use incentives for retail at all, or to put tight caps on their use (one suggestion was to limit all retail incentives to no more than 50% of revenues derived within a 5 year period). • Legislative action to prohibit all economic development incentives, or to prohibit all retail incentive packages (but to still allow incentives for other purposes,. such as job creation). • Legislative action to penalize communities for using incentives. One bill last session (which did not pass) would have required any City granting an incentive to pay an equal amount to the State Department of Commerce. • Change state tax laws to lessen cities' dependence on sales tax, to change sales tax revenues from point of sale to point of residence, or to require full sales tax revenue sharing based on population. While it is impossible to predict which, if any, or the above suggestions will become reality in the next year, it is likely that the debate about the use of incentives, especially for retail developments, will continue to heat up in the coming year. Economic Vitality ty edshare/incentives/whitepaperl0/14/04 ATTACHMENTS: A: SUMMARY OF ALL SCOTTSDALE FINANCIAL INCENTIVES B: ARIZONA ECONOMIC INCENTIVES Economic Vita edshare/incentives/whitepaperl0/14/04 Q) Ct Cll CC3 . 7` ti) (1) C • CD ci U ct C) U .:4:-." '• 0 .— ct u 1,74 c73 :::::‘,. =::. .i..„ c.) ,, Ec., 0 u › . 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C H Z p r.,:co .t. ,-..iiriA il m ; - �nz Cz' 0 UIH H Z CSO �, � a O H -64. A- ago o < O -.-. < °Pn -1 o riitt • .:E �' '1 z ° yn ,� 0, .ci 4 ,,r,T R n- y cn O a. , /�+O H C9 z � U o O yrG�p _ b Fr Orz --i • --i 0 n a,ct' �� C� O d 0 H EL 0 rn a G �. a n x Cl)m d � �o m <' a r R H_ C 0 0 n d� .3mc0 z H -p 20 n 0 togrn QNI� C, IA ,H Cl) O O N *"3 O o oeZ0— O O O O" ,. H 0 t r N H O O,C.1v;, EA W w Z '� •H b oXI o�o -al oCH�LO r`"t� 0 0>. tt Z..,Z n ci,,,' O own ;o ;a y m H n ��EA o H wo 5- Y 4y oH v, .CDi• p w' tt00 ET w o • A � d SEDONA, ARIZONA Greenspoon, Karen From: Eric Levitt[ELevitt@ci.sedona.az.us] Sent: Tuesday, November 23, 2004 1:17 PM To: Greenspoon, Karen Subject: Re: Request for information Eric J. Levitt City Manager City of Sedona 102 Roadrunner Drive Sedona, AZ 86336 (928) 204-7186 (928) 282-7207 (fax) elevitt@sedonaAZ.gov >>> "Greenspoon, Karen" <kgreenspoon@orovalley.net> 11/23/2004 10:45:13 AM >>> Good Morning: The town of Oro Valley is in the process of updating it's Community Economic Development Strategy and Guidelines. The Council has requested a report comparing our policies and procedures with others in the state. If you will, would you provide us with your current policies as they apply to the following: What incentives do you currently offer? Tax rebates? Infrastructure? Reduced Impact Fees? or any other. None. What industries (including retail) are specifically targeted for incentives? N/A Do you offer the same or other incentives for existing businesses? N/A Typically, we are under a time restraint on this report and would appreciate any information that you could provide at your earliest convenience. My email address is: kgreenspoon@orovalley.net. Thanks so much for your cooperation and have a great holiday! ! ! Karen Greenspoon Economic Development Specialist Town of Oro Valley (520) 229-4732 This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. 1 SURPRISE, ARIZONA Message Page 1 of 1 Greenspoon, Karen From: Landis Nordenberg [Landis.Nordenberg@surpriseaz.com] Sent: Wednesday, December 01, 2004 4:02 PM To: Greenspoon, Karen Subject: FW: Request for information Please see below. If you have any further questions, don't hesitate to call. Landis Nordenberg, Economic Development Coordinator 12425 W Bell Rd Suite D-100, Surprise,AZ 85374 623-875-4277 Good Morning: The town of Oro Valley is in the process of updating it's Community Economic Development Strategy and Guidelines. The Council has requested a report comparing our policies and procedures with others in the state. If you will, would you provide us with your current policies as they apply to the following: What incentives do you currently offer? Tax rebates? Infrastructure? Reduced Impact Fees? or any other. Please see attached. What industries (including retail) are specifically targeted for incentives? Included in policy Do you offer the same or other incentives for existing businesses?Yes,expanding businesses would have the same opportunities. Typically, we are under a time restraint on this report and would appreciate any information that you could provide at your earliest convenience. My email address is: kgreenspoon@orovalley.net. Thanks so much for your cooperation and have a great holiday!!! Karen Greenspoon Economic Development Specialist Town of Oro Valley (520) 229-4732 This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 12/01/2004 Incentives Page 1 of 1 Greenspoon, Karen From: Annie Huston [Annie.Huston@surpriseaz.com] Sent: Wednesday, November 24, 2004 8:08 AM To: Greenspoon, Karen Subject: Incentives Good Morning Karen - Mr.Testa, our ED Director, asked me to forward a copy of our incentive guidelines to you. I hope this will be helpful. By the way, my husband and I lived in Oro Valley while we were having a house being built in Tucson National, and we absolutely loved it. We were right across the road from El Conquistador-we still miss those beautiful mountains. Have a great Thanksgiving! <<Incentive Policy Final-summary.doc>> Annie Annie Huston Office of Economic Development 12425 W. Bell Road Surprise,Arizona 85374 Phone: 623.875.4273 Fax: 623.875.5049 www.s kr-p ises t.tCC°SS.CDVvt This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 11/29/2004 AP?"6,_ ibbON„A.Ahlr. SURPRISE ARIZONA Incentive Guidelines Summary November 14th 2003 Targeted Development Priorities for the City A. Attraction, retention or expansion projects which retain or create jobs including but not limited to industrial, healthcare, tourism, education and biotech manufacturing and research. B. Attraction, retention or expansion projects, which retain or create municipal sales tax revenues, including but not limited to tourism related businesses and retail development. C. Attraction, retention or expansion projects located within the Original Town Site. D. Development that is expected to generate, within an estimated period of time, revenues exceeding the level of the City's financial participation. E. Those businesses that advance the City's economic development strategy. Business Criteria The City will consider the following factors in determining whether the potential recipient should be granted incentives. Recipients should meet at least one of the following criteria: a. The recipient's operation will otherwise improve or enhance the economic welfare or quality of life for citizens of the City. b. The benefits the City will receive from the recipient's project outweigh the economic costs to the City, as demonstrated through the City's fiscal impact analysis model. c. The use of incentives will expand economic development in the City. d. The recipient's operation will not disproportionately expend natural resources or burden public infrastructure and services. Possible Incentives A. Subsidizing the cost of public infrastructure improvements including, but not limited to, streets, water/sewer extensions, drainage improvements, sidewalks, lighting, landscaping, signage and parking structures/districts. B. Leveraging Federal and State economic development grants, low interest loans and job training programs through partner agencies. C. Industrial Development Bond Financing. D. Waivers or reductions in fees and charges when permitted by law. E. Assessment district financing. F. Authorizing the rebate of fees, City sales tax revenues and/or expenditures of public funds. G. Expediting plan review. H. Other assistance as may be appropriate to accomplish the City's objectives as set forth herein. 1 Ab"&"6.-1116.- Alb. Alb. SURPRISE ARIZONA Incentive Guidelines November 14t 2003 Objectives The City incentive guidelines is intended to expand the industrial, commercial and retail base of the City; to insure an adequate tax base for municipal services; to promote the creation and retention of quality jobs for area residents; to make infrastructure investments intended to support and facilitate targeted development; and, to otherwise improve or enhance the economic and social welfare of the residents of the City. The incentive guidelines are to be used for new and/or expanding projects. Targeted Development Priorities The following section identifies targeted development priorities. A. Attraction, retention or expansion projects which retain or create jobs including but not limited to industrial, healthcare, tourism, education and biotech manufacturing and research. B. Attraction, retention or expansion projects, which retain or create municipal sales tax revenues, including but not limited to tourism related businesses and retail development. C. Attraction, retention or expansion projects located within the Original Town Site. D. Development that is expected to generate, within an estimated period of time, revenues exceeding the level of the City's financial participation. E. Those businesses that advance the City's economic development strategy. Criteria The City will consider the following factors in determining whether the potential recipient should be granted incentives. Recipients should meet at least one of the following criteria: a. The recipient's operation will otherwise improve or enhance the economic welfare or quality of life for citizens of the City. b. The benefits the City will receive from the recipient's project outweigh the economic costs to the City, as demonstrated through the City's fiscal impact analysis model. c. The use of incentives will expand economic development in the City. d. The recipient's operation will not disproportionately expend natural resources or burden public infrastructure and services. 1 Incentive Provisions Prior to the provision of any incentives to a potential recipient, a development agreement between the City and the potential recipient must be signed and approved by the City Council. To the extent possible, the provision of incentives shall be structured so that they act as an investment in the community and its citizens, thereby retaining value if the recipient leaves the community. Some incentives are performance based, that is, the City shares back the revenues derived from the project. If the project does not generate adequate revenues within a certain period of time, it does not receive the full payment. The types of incentives the City may consider: A. Subsidizing the cost of public infrastructure improvements including, but not limited to, streets, water/sewer extensions, drainage improvements, sidewalks, lighting, landscaping, signage and parking structures/districts. B. Leveraging Federal and State economic development grants, low interest loans and job training programs through partner agencies. C. Industrial Development Bond Financing. D. Waivers or reductions in fees and charges when permitted by law. E. Assessment district financing. F. Authorizing the rebate of fees, City sales tax revenues and/or expenditures of public funds. G. Expediting plan review. H. Other assistance as may be appropriate to accomplish the City's objectives as set forth herein. Development Agreement Required The required development agreement must be consistent with this guideline document and shall further identify the rights and obligations of the parties under the guidelines. For example, the conditions of the City's participation in a project,the financial security required, project performance criteria and repayment previsions should be included within the development agreement. The development agreement will also outline a compliance period in which the recipient shall comply with criteria on which it qualified to be eligible for the City offered incentives. 2 Developer Obligations The recipient, in order to receive or continue receiving incentives shall: A. Agree to comply with such zoning, building and planning requirements as are applicable to construction of improvements. B. Agree to commence construction of the tenant improvements no later than 120 days after issuance by the City of a building permit; C. Begin the construction of the improvements within 12 months of the date of the development agreement with the City; D. Complete construction, remodeling or improvements within the time period specified in the development agreement; E. Agrees to provide the City with information necessary to complete its fiscal impact analysis model. Reports to Council The City Manager, or designee, shall report to the City Council any rebate of fees, sales tax revenues or expenditure of public funds. The report will be provided to the City Council within 30 days of the development agreement acceptance by the recipient and shall include, but is not limited to: A. Recipient name and descriptive narrative about the recipient. B. Capital investment by the recipient for construction, remodeling or improvements. C. Number of additional jobs added or created by the company. D. Purpose of the City offering enhancements. E. Preliminary fiscal/economic impact analysis prior to business operation. Miscellaneous Similarity of a development type and consistency these guidelines shall in no way compel or otherwise obligate the City's participation. The City Council reserves the right to consider each request for incentives on its own merits. 3 WICKENBURG, ARIZONA \., Greenspoon, Karen From: Irene Morgan [managersoffice@ci.wickenburg.az.us] Sent: Wednesday, November 24, 2004 1:42 PM To: Greenspoon, Karen Subject: Economic Development disclaimer.txt(293 B) Karen, The Town of Wickenburg does not currently have any policies that pertain to economic development. But we are examining that position and would very much like it if we couldg et a copy of whatever you get from other Towns / Cities and your policies. We are just starting to venture into this area and seeing what others have done may save us from making costly mistakes. Thank You, Irene Morgan Administrative Assistant 668-0522 (shared line) 1 WILCOX, ARIZONA Message Page 1 of 2 Greenspoon, Karen From: Gilbert[gdavidson@willcoxcity.org] Sent: Wednesday, November 24, 2004 10:53 AM To: Greenspoon, Karen Subject: RE: Request for information Karen, tax ordinance byreducingthe tax from The City of Willcox is in the process of modifying its exciselocal three (3) percent to two (2) percent on point of sale purchases over$2,500.00. Other economic development incentives are still being discussed. The City is also included in an enterprise zone and encourages new businesses to apply for the property tax advantages through this program. If you have additional questions, please let me know. Gilbert Davidson City Manager City of Willcox 101 South Railroad Avenue Willcox, Arizona 85643 (520) 384-4271 Office (520) 384-2590 Fax Original Message From: Greenspoon, Karen [mailto:kgreenspoon@orovalley.net] Sent: Tuesday, November 23, 2004 10:45 AM To: ksimpkins@ajcity.net Cc: ryandow@cityofbisbee.com; creynolds@buckeyeaz.org; citymgr@bullheadcity.com; blee@cvaz.org; jon@carefree.org; jimt@ci.casa-grande.az.us; townmanager@cavecreek.org; Garrett.newland@ci.chandler.az.us; bpupo@chinoaz.net; michael.ortega@douglasaz.gov; bjcornwall@cityofelmirage.org; dwilcox@ci.flagstaff.az.us; himanshu.patel@town.florence.az.us;. tpickering@fh.az.gov; Ifarmer@gilabendaz.org; Gregt@ci.gilbert.az.us; Ivasey@glendaleaz.com; mvyas@cableone.net; bdalke@ci.goodyear.az.us; flarson@cybertrails.com; rswenson@ci.kingman.az.us; citymanager@ci.lake-havasu-city.az.us; sbrackney@litchfield-park.org, mreuwsaat@marana.com; rbuss@cityofmaricopa.net; Dick.mulligan@cityofinesa.org; rpattison@cityofnogales.net; townmanager@cityofpage.org; tmartinsen@ci.paradise-valley.az.us; edev@ci.parker.az.us; Gould, Bob; stevep@peoriaaz.com; frank.fairbanks@phoenix.gov; kudall@ci.pinetop-lakeside.az.us; citystaff@cityofprescott.net; Itarkowski@pvaz.net; cseelhammer@queencreek.org; rjj@ci.safford.az.us; stahle@ci.sahuarita.az.us;jdolan@scottsdaleaz.gov; elevitt@ci.sedona.az.us; mmaag@ci.show-low.az.us; cpotucek@ci.sierra-vista.az.us; jim.rumpeltes@surpriseaz.com; Will_manley@tempe.gov; sdille@ci.wickenburgl.az.us; gdavidson@willcoxcity.org; dwells@ci.williams.az.us; cowdevsvc@cybertrails.com; bob.wagner@ci.yuma.az.us Subject: Request for information Good Morning: 11/29/2004 YUMA, ARIZONA Greenspoon, Karen From: Curts, John -Assistant Director/ Economic Development[John.Curts@CI.YUMA.AZ.US] Sent: Tuesday, November 30, 2004 11:07 AM To: Greenspoon, Karen Cc: Wagner, Bob-City Administrator; Burroughs, Gary- Public Works Director Subject: City of Yuma Economic Development Policy 1_ Lu» Economic Nelopment Policy R Dear Karen Greenspoon: Thank you for your recent request for information. Our City Administrator, Bob Wagner, has asked that I respond to your request. The City Council of the City of Yuma has approved an Economic Development Policy for use as a guideline in discussing potential economic incentives with businesses looking to expand in, or establish in the City of Yuma. A copy of the Policy in attached to the note for your use. The City Council has targeted job creation and sales tax generation as the top goals for expanding the local economy. Therefore, the Economic Development Policy is geared to encourage these goals. As your review our Policy, you will note that incentives can vary, and this feature has been useful in approaching businesses, many of which have different goals, needs or requirements. The Policy covers existing businesses that are expanding (adding at a minimum five additional full-time jobs) , or new businesses looking to establish in Yuma. In Yuma, we work with expanding and new businesses, and prepare a development agreement that recites the requirements of the businesses, and provides performance based incentives. The Development Agreements are then presented to the City Council, who has sole authority to approve any incentives. In general, the City of Yuma seeks to find incentives that are non-cash based. For example, rebates of verified City property tax payments or phased deferment of some development standards such as paved parking in remote areas can benefit business without immediate "out of pocket" cash payments from the City. Job creation incentive payments that do involve cash payments from the City are negotiated to be paid after verified performance, and are very carefully considered by the City. If you have any further questions, it would be my pleasure to discuss them at your convenience. My direct phone number is (928) 373-5189. Good luck in your Community Economic Development Strategy and Guidelines update! John Curts, Assistant Director for Economic Development City of Yuma <<Economic Development Policy Resolution Adopted 01. 17.01 .doc>> This E-mail has been scanned by McAfee WebShield and is delivered to you virus free. Infected attachments associated with this E-mail have either been deleted or cleaned. --Town of Oro Valley Information Technology Division 1 RESOLUTION NO. R2000-88 Adopted January 17, 2001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUMA, ARIZONA, ADOPTING AN ECONOMIC DEVELOPMENT POLICY TO SERVE AS A GUIDE FOR STAFF, CITY FUNDED AGENCIES, AND COUNCIL ACTIONS, WITH REGARD TO ECONOMIC DEVELOPMENT DECISIONS RELATED TO ENHANCING THE ECONOMIC WELFARE OF THE INHABITANTS OF THE CITY. WHEREAS, the City Council of the City of Yuma has adopted a mission statement, which states in part that A. . .We are dedicated to providing quality goods and services and to furthering the social and economic well-being of our present and future citizens;" and, WHEREAS, economic development is a crucial goal of the City's Strategic Management Plan, which states: AWith a customer-oriented philosophy, we will take the lead in developing, retaining and attracting businesses and industries compatible with our vision through establishment of a solid economic development plan;" and, WHEREAS,the establishment of an economic incentive policy is a priority of the Strategic Management Plan of the City of Yuma; and, the CityCouncil recognizes that the Yuma area is in competition with other WHEREAS, g communities in the State and region for investment capital, industrial and commercial development, and jobs; and WHEREAS,the City desires to maintain and promote an attractive place to live, work and visit, where continued growth preserves and enhances the economic stability and diversity of the City's economy, including the enhancement of the local tax base, the attraction of new y • industryand business and other education and social benefits derived from having a healthy economy that will measurably increase the resources of the community; and, WHEREAS,the City desires to obtain those public benefits which will accrue from continued economic development, which benefits include, but are not limited to, the retention or creation ofJ'obs, the generation of sales tax and property revenues, and the stimulation of further economic development within the City; and, WHEREAS, A.R.S. 3 9-500.11 authorizes the City to expend public funds to assist in the creation or retention of jobs in the community or enhance the economic welfare of the inhabitants of the community; and, WHEREAS,the City Council has determined that it is in the best interests of the City to further economic development in the community and to authorize the expenditure of public funds for economic development, consistent with the criteria set fourth herein. NOW THEREFORE, be it resolved by the City Council of the City of Yuma, Arizona that the Economic Development Policy is adopted as follows: SECTION I. STRATEGIC OBJECTIVES The City of Yuma,through the implementation of this and other policies, shall endeavor to accomplish the following strategic objectives: 1. The City of Yuma will pursue a stable, year-round economy with unemployment rates at least as favorable as the rest of Arizona, with an emphasis on targeting quality level jobs. A quality level job is defined as a job that pays a wage or salary (fringe unburdened) equal to or greater than the current Yuma County Per Capita Personal Income Level as computed annually by the Arizona Department of Economic Security, and provides health insurance benefits to employees for which the employer pays at least 50%. 2. The City of Yuma will support the retention and expansion of existing businesses within the City. 3. The City of Yuma should be the primary location of major industrial, commercial, and retail businesses. 4. The City of Yuma should be the location of all major State, County, and Federal office, research, educational, or other similar facilities. 5. The City of Yuma will support large private commercial recreational and tourism ventures (ie. family/fun entertainment establishments, shopping mall anchors, waterparks, cinema complexes, full-service hotel conference center. . .)that will contribute to and enhance the community's quality of life, fill a service void, or serve the youth of the community. 6. The City of Yuma will support the redevelopment of designated redevelopment areas, neighborhood redevelopment strategy areas, and targeted infill areas within the City. 7. The City of Yuma supports Arizona's Partnership for the New Economy and its premise of global markets, technological advances, organizational innovations and changing competitive relationships that create the foundation for the New Economy. To further the Partnership and the City's corresponding advance into the New Economy the City supports development of telecommunications infrastructure to better service the community's industrial, commercial, and retail businesses. 8. The City supports compact, orderly development incorporating clean industries that allow for short commute times, alternate transportation systems, and reduced automobile usage so that clean air standards may be maintained. 9. The City's economic development efforts should be consistent with the City's Growth& Development Policy and General Plan for the Yuma area. SECTION II. GENERAL CRITERIA The City of Yuma may provide any incentives for any business or commercial development project if that project, in the opinion of the City Council of the City of Yuma: 1. will substantially enhance the economic health of the City of Yuma, or 2. will result in a net increase or retention of jobs in the City, will add to the tax base, and will otherwise improve or enhance the economic welfare of the residents or businesses of the City, or 3. would not otherwise locate, expand or remain in the City without incentives (or outside the City with a Preannexation Development Agreement), or 4. demonstrates the potential to generate revenues to the City, which over time outweigh costs associated with incentives. The business, in order to receive any such incentives from the City of Yuma will make available information, including capital investment and employment projections, to enable the City to prepare a fiscal impact analysis. The recipient will also make available an update of this data twelve months after business operations have begun. The decision to provide any economic development incentives will be considered on a project- by-project basis, in accordance with the criteria set forth in this policy, and at the discretion of the City Council of the City of Yuma. SECTION III. ECONOMIC DEVELOPMENT INCENTIVES If, in the opinion of the City Council of the City of Yuma, the City determines the criteria set forth in Section II of this resolution are satisfied, and that the interests of the City as set forth in Section I are being furthered, the City may consider one, or a combination of, the following incentives designed to encourage economic development within the City: 1. Industrial or Non-Retail Commercial Business A. Qualifying Industrial or Non-Retail Commercial Business: examples of qualifying industrial or non-retail commercial businesses include manufacturing plants, light and heavy assembly plants, warehousing and distribution facilities, fabricators, food processing and packaging plants, back office operations, corporate headquarters, medical or business services, electronic information facilities, or similar businesses as classified in the North American Industry Classification System. B. Minimum Qualifying Criteria: Required Job Creation: Minimum of 5 permanent, year-round, resident, full-time jobs Required Benefits: Employer provides at least 50% of health insurance premiums Required Minimum Pay: Equal to Yuma County Per Capita Personal Income Level* Required Capital Investment: $50,000 - $500,000 in land and building improvements as an initial investment at a single location * Year 2000 Per Capita Personal Income Level for Yuma County is $18,277. C. Economic Development Incentives. For qualifying industrial or non-retail commercial businesses that expand, relocate or open a new business within the City of Yuma and satisfy the minimum requirements of this section the City may consider a direct cash incentive in accordance with the following table: For qualifying industrial or non-retail commercial businesses that: pay a wage or salary pay a wage or salary pay a wage or salary equal to Yuma equal to 1.5x Yuma equal to 2x Yuma County Per Capita County Per Capita County Per Capita Personal Income Personal Income Personal Income Level Level * Level the City of Yuma may: provide a one-time, direct cash incentive up to $ $500 $1,000 $1,500 per employee * Year 2000 Per Capita Personal Income Level for Yuma County is $18,277. • Fiscal Year funds are available on a first-come-first serve basis D. Enhanced Economic Development Incentives, Minimum Requirements: Required Job Creation: Same as "B" above. Required Benefits: Same as "B" above. Required Minimum Pay: Same as "B" above. Required Capital Investment: $500,000+ in land and building improvements as an initial investment at a single location For qualifying Industrial or non-retail commercial business that satisfy the minimum requirements of this section, the City of Yuma may also enter into a written development agreement to assist in any one or more of the following economic development incentives to help offset the project's initial capital costs: 1) waive, defer, or amortize up to 3 years, any one or more of the following fees required to be paid in connection with a project: plan checking fees, inspection fees, building permit fees and other fees required pursuant to the Zoning Code of the City of Yuma 2) defer, reimburse, or amortize up to 3 years, a portion of water and/or sewer development fees in connection with the construction of a project 3) accelerate or create a City capital improvement program (CIP)project to serve the project's needs 4) rebate a portion of the City unobligated 1%sales taxes generated and paid by construction or improvements on the property 5) waive a portion or all of the Excise taxes for a period of up to eight years for eligible commercial or industrial projects located in a designated redevelopment area 6) assist in the procurement of tax-exempt financing where appropriate 7) provide infrastructure credits to write down the cost of land 8) provide incentives to help reduce the costs of constructing telecommunications infrastructure (ie. fiber optics, T-1 service, digital subscriber line . . .) 2. Large Retail Business A. Qualifying Large Retail Businesses: examples of qualifying large retail businesses include automobile dealers, home furnishing stores, electronics and appliances stores, sporting goods stores computer and software stores, department stores, or similar businesses as classified in the North American Industry Classification System. B. Minimum Qualifying Criteria: Required Job Creation: Minimum of five permanent, year-round, resident, full-time jobs Required Benefits: Employer provides at least 50% of health insurance premiums Required Minimum Pay: Equal to or greater than the average "Wage Offer by County" as computed annually by the Arizona Department of Economic Security (Year 2000 average wage offer for Yuma County is $6.54) Required Capital Investment: $3,000,000+ in land and building improvements as an initial investment at a single location Required Sales: Generates a minimum of$5,000,000 in City taxable retails sales annually Required Net New Revenue: Creates net new revenues from retail sales which are additive to current and projected City sales tax receipts from existing businesses for a similar retail sector C. Economic Development Incentives. For qualifying large retail businesses that expand, relocate or open a new business within the City of Yuma and satisfy the minimum requirements of this section, the City may enter into a written agreement to provide: 1) the business/developer/owner up to 25% of City's unobligated 1% sales tax generated and paid by the business and received by the City for a three-year period following issue of the Certificate of Occupancy. The amount of the City's reimbursement shall be limited to the amount of the project's development costs. Development costs are intended to include reasonable and usual costs incurred in acquiring required real property and the design, engineering, construction and landscaping of property improvements until a Certificate of Occupancy is issued 2) and, the City may also consider any one or more of the economic development incentives as set forth in Section III. 1. D. 3. Large Private Commercial Recreational or Tourism Business A. Qualifying Large Private Commercial Recreational or Tourism Businesses: examples include family/fun entertainment establishments, shopping mall anchors, waterparks, cinema complexes, full-service hotel conference centers, or similar amusement, recreation or tourism industries that will contribute to and enhance the community's quality of life, fill a service void, or serve the youth of the community. B. Minimum Qualifying Criteria: Required Job Creation: Minimum of five permanent,year-round, resident, full-time jobs Required Benefits: Employer provides at least 50% of health insurance premiums Required Minimum Pay: Equal to or greater than the average "Wage Offer by County" as computed annually by the Arizona Department of Economic Security (Year 2000 average wage offer for Yuma County is $6.54) Required Capital Investment: $1,000,000+ in land and building improvements as an initial investment at a single location C. Economic Development Incentives. For qualifying large private commercial recreational or tourism businesses that expand, relocate or open a new business within the City of Yuma and satisfy the minimum requirements of this section, the City may enter into a written agreement to provide: 1) the business/developer/owner up to 25% of City's unobligated 1% sales tax generated and paid by the business and received by the City for a three-year period following issue of the Certificate of Occupancy. The amount of the City's reimbursement shall be limited to the amount of the project's development costs. Development costs are intended to include reasonable and usual costs incurred in acquiring required real property and the design, engineering, construction and g ofpropertylandscap in improvements until a Certificate of Occupancy is issued 2) and,the City may also consider any one or more of the economic development incentives as set forth in Section III. 1. D. 4. Redevelopment Areas A. Q Y �n ualif iIndustrial, Commercial, or Retail Businesses: examples include industrial, commercial, or retail businesses as classified in the North American Industry Classification may System that and, relocate or open a new business within a City of Yuma redevelopment Y y ex p area. Redevelopment areas are specifically defined as City Council approved Neighborhood Redevelopment Strategy Areas or targeted infill areas, or a redevelopment area formally designated by City Council in conformance with State statutes. B. Minimum Qualifying Criteria: Required Benefits: Employer provides at least 50% of health insurance premiums Re uired Minimum Pay: Equal to or greater than the average "Wage Offer by County" q as computed annually by the Arizona Department of Economic Security (Year 2000 average wage offer for Yuma County is $6.54) Required Capital Investment: $250,000+ in land and building improvements as an initial investment at a single location C. Economic Development Incentives. For qualifying industrial, commercial. or retail businesses that expand, relocate or open a new business within a City of Yuma redevelopment area and satisfy the minimum requirements of this section, the City may enter into a written agreement to provide: 1) the business/developer/owner up to 25% of City's unobligated 1% sales tax generated and paid by the business and received by the City for a three year period following issue of the Certificate of Occupancy, or, in the case of non- retail facilities, the City may reimburse the business/developer/owner an amount equivalent to the net new increase in City property taxes occurring over a five year period resulting from improvements to the property. The amount of the City's reimbursement shall be limited to the amount of the project's development costs. Development costs are intended to include reasonable and usual costs incurred in acquiring required real property and the design, engineering, construction and landscaping of property improvements until a Certificate of Occupancy is issued. 2) and, the City may also consider any one or more of the economic development incentives as set forth in Section III. 1. D. SECTION IV. SUNSET CLAUSE Five-Year Sunset Clause: This resolution is automatically repealed from and after January 20, 2006. PASSED AND ADOPTED this 17th day of December 2001. APPROVED: Marilyn R. Young Mayor ATTESTED: Brigitta K. Stanz City Clerk APPROVED AS TO FORM: Steven W. Moore City Attorney CITY OF YUMA REQUEST FOR COUNCIL ACTION FOR MEETING OF: December 20, 2000 MOTIONS ORDN Adoption DEPT: Community Development RESOLUTIONS X ORDN Introduction DIVISION: Administration PUBLIC HEARING TITLE: ECONOMIC DEVELOPMENT POLICY SUMMARY RECOMMENDATION: Authorize an Economic Development Policy to serve as a guide for staff, City funded agencies, and Council actions, with regard to economic development decisions related to enhancing the economic welfare of the inhabitants of the City. BACKGROUND/DISCUS SION/ALTERNATIVES/CONCURRENCE: Duringtwo work sessions this past July (7/18 & 7/25) Council began discussing what Council, individually and collectively, desire to see from our local economic development efforts. In the ensuing discussion Council articulated their expectations and priorities for business development and job creation. Council further addressed the question of what Council expects from the public and private sector in terms of meeting these expectations and priorities, and whether or not Council felt adequate resources are being allocated for these efforts. Council ultimately concluded the work sessions on economic development with the decision to purse the development of a more formal economic development policy. The policy would specify the kinds of businesses Council wants to attract to the community and the circumstances under which it would consider incentives, with each case being considered individually. Staff set to work on creating such an economic development policy. Over the course of the next two months staff met, reviewed what other cities have done, with an emphasis on Arizona cities, and drafted several renditions of a proposed economic development policy. During the development of the policy staff collaborated with staff of GYEDC to gain their input and concurrence. Eventually, a consensus of a final draft was reached in late September, and presented to Council at a work session on October 30th. Once Council approves the Economic Development Policy, staff will need to follow-up, and present to Council, a strategy to finance and allocate adequate resources necessary to implement the economic development incentives established in the policy. The accompanying Resolution,which includes a 5-year Sunset Clause, establishes an Economic Development Policy for the City of Yuma to serve as a guide for staff, City funded agencies, and Council actions, with regard to economic development decisions related to enhancing the economic welfare of the inhabitants of the City ATTACHMENTS: Resolution ATTACHMENT 4 Examples of Projects in Other Arizona Cities Goodyear Target Retail Development fees reimbursed & Bonus for early C of 0 (total $265,020) AND 5 yrs/50% rebate of sales tax Lowe's Retail 5 yrs/50% sales tax rebate Toyota Auto 3 yrs/40%; then 5 yrs/50% (est. 5.039 M) Wal-Mart Retail 3 yrs/50% sales tax rebate up to $1,917,159 for off-site infrastructure Pioneer Ford Auto 3 yrs/75% sales tax rebate 5 yrs/50% sales tax rebate Hampton Inn Hospitality 10 yrs or $505,000/50% sales tax rebate Wingate Inn Hospitality 10 yrs or $452,733/50% sales tax rebate Marriott Hospitality 50% construction sales tax up to Residence Inn $37,613 AND 10 yrs or $598,000 50% sales tax rebate Snyders of Industrial Fees waived and rebated construction Hanover taxes — City $1.2M in infrastructure Southwest Industrial Fees rebated up to $51,000 & Specialty Foods rezoning fee of$4,000 Del Monte Industrial Fees rebated $62,456 including construction sales tax 2 TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION MEETING DATE: February 7, 2005 TO: HONORABLE MAYOR & COUNCIL MEMBERS FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR SUBJECT: REVIEW OF THINK TANK REPORT PREPARED BY DR. LAY GIBSON. SUMMARY: At the direction y of the Mayor and Council the Economic Development Division contacted members of the community to participate in a two dayretreat to discuss and consider a new direction that the p p Valleyshouldpursue relatingto Economic Development. This group has been named Town of Oro the Think Tank. Dr. Lay James Gibson, Ph.D. was contracted to be the facilitator for the Think Tank retreat. The two consecutive Saturdays, January 8th and 15th. Dr. Gibson provided Think Tank members met on rtepresentations which provided a background for discussion and consideration of the five separate suggestions. These presentations included: Economic Development 101; The Economic groups' gg e The New Economyand Your Region and Its Economy; Economic Base Theory and Cluster Landscape, Driven Development;Economic Develo ment; The Regional Approach and lastly The 12 Commandments of Economic Development. has prepared and submitted a report (attached) which provides a more detailed analyses Dr. Gibson . of the two days activities. Input from the group assisted in the preparation of an Economic y , Vision Statement and a Mission Statement. The group identified Oro Valley's Development Compar tive Advantages and Strengths; Opportunities for Economic Development; Potential Weaknesses and Barriers to Economic Development in Oro Valley; Threats to Oro Valley's Economic Future and a list of items concerning Economic Development Incentives. To a person the members of the Think Tank expressed their desire to continue to participate in some form on an ongoing basis. TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION PAGE 2 OF 2 ATTACHMENTS: 1. Think Tank sessions Report from Dr. Lay James Gibson. 2. Listing of Think Tank members invited and attendance. FISCAL IMPACT: N/A ti;t t JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADM. 71)/ LW\ ")Z16eirr( CHUCK SWEET TOWN MANAGER ATTACHMENT # 1 THINK TANK SESSION REPORT FROM DR. LAY JAMES GIBSON JANUARY 19, 2005 The Oro Valley Economic Development Think Tank: Understandings and Observations from The January 8 and 15, 2005 Think Tank Sessions Lay James Gibson, Ph.D. Consultant Submitted to The Town of Oro Valley Attention Jeff Weir January 19, 2005 9 The Think Tank sessions were organized around five lectures offered by Dr. Gibson, five group discussions facilitated byDr. Gibson and spontaneous discussions on a variety of topics initiated bythe participants. This discussions produced a "Vision" for economic p development in Oro Valley and a "Mission Statement"that called for creating export jobs that are commensurate with the education levels and aspirations of Oro Valley residents; creating a sustainable public income stream to support high quality public goods; supporting su ortin the development of business activities that are consistent with Oro hiValley'sgh qualityliving hi h uali environment; encouraging the retention and expansion of existing businesses — especially export oriented businesses; and making Oro Valley a branded destination for businesses seeking new locations and individuals seeking a place to visit or reside. Mr. Weir's Vision and Mission Statement are in Appendix A. Three of Dr. Gibson's five lectures were offered on Saturday, January 8. The first was titled Economic Development 101. Discussion which followed suggested that Think Tank participants prefer ants to combine considerations of community and economic development themes; feel that initiatives which focus on efficiency will eventually enhance equity outcomes; and feel that investments in "place prosperity"will eventually be translated into enhanced "people prosperity."This lecture provided a broad overview for participants. A copy of this presentation is found in Appendix B. The second lecture, "The Economic Landscape, The New Economy, and Your Region and Its Economy," introduced additional topics including a discussion of the structure of a regional economy and emerging trends in the world's economic systems. It also introduced the notions of comparative advantage and barriers to economic development and the analysis of strengths, weaknesses, opportunities and threats in regional systems. Appendix C describes this presentation. The third lecture on the first day focused on economic base theory and cluster-driven economic development. Specifically export building and leakage-reducing strategies were discusses along with basic and non-basic sources of income. Finally, often ignored themes such as cross-commuting and transfer payments were reviewed. The notes for "Economic Base Theory and Clusters" are found in Appendix D. Following discussions based on these three lectures and associated themes "homework" was assigned. Specifically, participants artici ants were asked to produce lists of"strengths and p comparativeadvantages",adva nta es", "barriers and weaknesses,""opportunities" and "threats." lists would at least partiallyguide discussions during the January 15 Think Tank These and Session. The second Think Tank Session was held on January 15. Dr. Gibson offered two lectures designed to stimulate thinking on the attributes of effective economic development efforts. The first focused on the regional approach to economic development — its value as a way of leveraging resources but also some of the red flags, downsides, and disbenefits that might come from being "too regional."This presentation simply I called "The Regional Approach" it is found in Appendix E. The es was p Y other lecture was called "The 12 Commandments" and it focused on the rules that should uld be followed to assure the creation of a successful economic development effort. The materials for this presentation are found in Appendix F. Discussion covered a variety of topics. Each of the first four structured discussions follow a theme that had been introduced on the previous Saturday. And all four produced lists of"recommendations" or more properly, items which could certainly form the topics of future discussions, projects, or policy initiatives. In some ways, these discussionsY ielded four different work programs. The items on each list are not ranked; they simply appear in the order mentioned. List 1. Oro p Valley's comparative advantages and strengths. Ten items were mentioned. List 2. Opportunities for economic development. Fifteen items were mentioned. List 3. Potential weaknesses and barriers to economic development in Oro Valley. Twelve items were mentioned. List 4. Threats to Oro Valley's economic future. Fourteen items were mentioned here. Finally there was substantial discussion on the business of incentives and economic development. Whereas no firm positions were taken most participants had a genuine interest in seeing an objective analysis of the pros and cons (and costs and benefits) associated with specific incentives. The nine potential incentives on List 5 are those clearly identified during discussions. Conclusion. There appears to be strong and enthusiastic public support for economic development initiatives in Oro Valley. Further, fully engaged elected officials and a knowledgeable and effective city staff are in place to move Oro Valley forward. This mix of capable players in a growing and dynamic community bodes well for Oro Valley. List 1. Oro Valley's Comparative Advantages and Strengths 1. Unlike communities at"build-out" Oro Valley can "do it right"when developing its open land. 2. High qualityurban and natural amenities make Oro Valley an exceptional place to live and work. 3. Oro Valley is perceived to be a high-quality subregion within the larger Tucson Metropolitan Region. 4. Oro Valley offers a clean and safe environment. 5. Oro Valley is a "high end, high amenity" place to live and work. 6. Oro Valley's residents are well educated and form a high quality workforce. 7. Oro Valley has competent and highly motivated community leaders. 8. There is a real "sense of community" in Oro Valley. 9. There is room in Oro Valley for continued growth of local markets and demands for additional goods and services. 10.Oro Valley is cohesive, homogeneous, and large enough to offer variety while being small enough to be "manageable." List 2. Opportunities for Economic Development 1. Oro Valley is new, open to change, and not"set in its ways." 2. Oro Valley has great potential to become a "branded" destination. 3. Oro Valley can be and should be) proactive when promoting small business. 4. Oro Valley has the potential to become a year-round cultural center. 5. Oro Valley still has the opportunity to broaden its retail and service offerings, especially those now under represented. 6 opportunity Valleyhas the o ortunity to be innovative in the physical design of the community. 7. Oro Valley has the opportunity to develop small business assistance resources and capabilities. 8. Oro Valley opportunity the o ortunity to develop festivals and events, including fine arts events that will enhance its appeal and reputation as a "branded destination." Oro Valleyhas the opportunity to develop the Naranja Town site"the right way." 9. pp tY 10.Oro Valley opportunity the o ortunity to further exploit its wonderful winter weather. 11.Oro Valley has the opportunity to have full citizen participation in building a consensus blueprint for the Town's future. 12.Oro Valley opportunity the o ortunity to better utilize the Mt. Lemmon resource by building a tram to link the Town to the mountain. 13.Oro Valley has the opportunity to expand its public revenues by instituting a property tax. 14.Oro Valley opportunity the o ortunity to rethink its "big box" position and recognize the emergence of the "small box retail revolution." 15.Oro Valley opportunity the o portunity to develop "neighborhood-style retail." • List 3. Potential Weaknesses and Barriers to Economic Development in Oro Valley 1. Town rules and regulations may negatively impact business ventures. 2. Poor access to Tucson International Airport. 3. The perception of unstable local government. 4. Poor access to lower skill/lower wage workers. 5. Inflexible town rules and regulations and uneven administration of town codes. b 6. High land cost and limited availability of land for development. 7. No speculative buildings for potential industrial tenants. 8. Lack of affordable housing for all but the most affluent. 9. High crime rates in the Tucson Metropolitan Region. 10.Lack of ethnic diversity. 11.Unreasonably high impact fees. 12.Lack of transparency in building regulations and lack of consistency in building p Y regulations over time. List 4. Threats to Oro Valley's Economic Future 1. Unimaginative developments and poor land-use choices could squander Oro Valley's future. 2. Depletion of ground water. 3. Oro Valley may be oversupplied with retail and retail establishments leading to declines in business activity. 4. All infrastructure, but especially roads, may be near or at capacity. 5. Water availability both in absolute availability and in terms of systems capacities. 6. Theerce tion by outsiders that Oro Valley is a "tough place to do business." P P 7. Lack of economic diversification and overdependence on a single cluster (retail). 8. Failure of leadership to gather authoritative "strategic intelligence"on local, regional, national, and global trends, issues, and opportunities. 9. Secure and sustainable quality public goods are not in place. 10.Oro Valley's leadership is too reactive and not nearly as proactive as it should be. 11.Upward movement of housing costs and diminished supply of"suitable housing" will increasingly limit the "Oro Valley demographic." 12.Oro Valley has the potential to create an inappropriate balance in commercial vs. residential land use. 13.Failure to recognize the need to consider redevelopment of land and to plan for reuse of already developed parcels. 14.Instituting a property tax would be a threat to the community. List 5. Economic Development Incentives 1. Job training. 2. "Fast tracking"of the development permits-and-permissions process. 3. A mechanism to develop and support (bus or other) transport for low wage workers who are employed in Oro Valley but who live elsewhere in the Tucson Region. 4. Tax incentives or inducements for a) retail businesses or b) other business types. 5. Fee waivers. 6. Incentivize development of Town Center (public incentives to private developer(s)). 7. Tax rebates to commercial developers. 8. Town subsidy of (selected) infrastructure development costs. 9. Code relaxation. Appendix A Oro Vay Ile 's Economic Development Vision and Mission Statements Vision II engagingin economic development Oro Valley will demonstrate its By formally commitmentprocess to the in which the government engages to stimulate or maintain business activity and/oremployment. The principal goal of economic development is to stimulate employment opportunities in sectors that improve the region or community using existing human, natural, and institutional resources. Mission The Mission of Oro Valleyeconomic development initiatives are to build an even T e stronger and more desirable Oro Valley by... • Cre g exportjobs atin that are commensurate with the education levels and aspirations of Oro Valley residents; • in a sustainable public income stream to support high quality public goods; Creating • Supporting the development of business activities that are consistent with Oro S pp g p Valley's high quality living environment; • Encouraging the retention and expansion of existing businesses — especially 9 9 export oriented businesses; • MakingValley Oro a branded destination for businesses seeking new locations and individuals seeking a place to visit or reside. 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E it ,/, w 5, 4ftl >4 > 0 = 61 173 CA z U 0 11.1116a0.., pco " 111) �WI V 713 pClin TO M G�7 � � s 0= iZ U a) a- C k > 0 a) s u) sn.Irmia 4.....g o IA 4.- U ... in im Ti 3 I mis W 0 iiik- .- c x tU 1- C . h, 0 .ri.). 76 (co co CI) 0..4444 ,,,,,, 4 LIJ 4.. = 0% II.— >4 131 iiiimp ,0 1 t,,,, %.• 4.) ilaj or ig, Om cnc .. lit C go; 1 ,, a , = 4/ :, ,,,,,,- .:., .44, . 1 i , %ALVIN., 4, , on pm c .mil on is.) c , 1.. ,,,,, a- ,,,, wo,,,,,...4 .% a E = = = t.# iiims � Im. ca 0 4.• � � pEco vs ..... '� caooa�i I .i.i = 0 UI— I- 2 TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION MEETING DATE: February 7, 2005 TO: HONORABLE MAYOR & COUNCIL MEMBERS FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR SUBJECT: REVIEW OF THINK TANK REPORT PREPARED BY DR. LAY GIBSON. SUMMARY: At the direction of the Mayor and Council the Economic Development Division contacted members of the community to participate in a two day retreat to discuss and consider a new direction that the Town of Oro Valley should pursue relating to Economic Development. This group has been named the Think Tank. Dr. Lay James Gibson, Ph.D. was contracted to be the facilitator for the Think Tank retreat. The Think Tank members met on two consecutive Saturdays, January 8th and 15th. Dr. Gibson provided five separate presentations which provided a background for discussion and consideration of the groups' suggestions. These presentations included: Economic Development 101; The Economic Landscape, The New Economy and Your Region and Its Economy; Economic Base Theory and Cluster Driven Economic Development; The Regional Approach and lastly The 12 Commandments of Economic Development. Dr. Gibson has prepared and submitted a report (attached) which provides a more detailed analyses of the two days activities. Input from the group assisted in the preparation of an Economic Development Vision Statement and a Mission Statement. The group identified Oro Valley's Comparative Advantages and Strengths; Opportunities for Economic Development; Potential Weaknesses and Barriers to Economic Development in Oro Valley; Threats to Oro Valley's Economic Future and a list of items concerning Economic Development Incentives. To a person the members of the Think Tank expressed their desire to continue to participate in some form on an ongoing basis. TOWN OF ORO VALLEY STUDY SESSION COUNCIL COMMUNICATION PAGE 2 OF 2 ATTACHMENTS: 1. Think Tank sessions Report from Dr. Lay James Gibson. 2. Listing of Think Tank members invited and attendance. FISCAL IMPACT: N/A (if JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADM. fr f ,z1/4 / CHUCK SWEET TOWN MANAGER ATTACHMENT # 1 THINK TANK SESSION REPORT FROM DR. LAY JAMES GIBSON JANUARY 19, 2005 The Oro Valley Economic Development Think Tank: Understandings and Observations from The January 8 and 15, 2005 Think Tank Sessions Lay James Gibson, Ph.D. Consultant Submitted to The Town of Oro Valley Attention Jeff Weir January 19, 2005 The Think Tank sessions were organized around five lectures offered by Dr. Gibson, five group discussions facilitated by Dr. Gibson and spontaneous discussions on a variety of topics initiated by the participants. This discussions produced a "Vision"for economic development in Oro Valley and a "Mission Statement"that called for creating export jobs that are commensurate with the education levels and aspirations of Oro Valley residents; creating a sustainable public income stream to support high quality public goods; supporting the development of business activities that are consistent with Oro Valley'shigh hi h quality living environment; encouraging the retention and expansion of existing businesses — especially export oriented businesses; and making Oro Valley a branded destination for businesses seeking new locations and individuals seeking a place to visit or reside. Mr. Weir's Vision and Mission Statement are in Appendix A. Three of Dr. Gibson's five lectures were offered on Saturday, January 8. The first was titled Economic Development 101. Discussion which followed suggested that Think Tank participants prefer to combine considerations of community and economic development themes; feel that initiatives which focus on efficiency will eventually enhance equity outcomes; and feel that investments in "place prosperity"will eventually be translated into enhanced "people prosperity."This lecture provided a broad overview for participants. A copy of this presentation is found in Appendix B. The second lecture, "The Economic Landscape, The New Economy, and Your Region and Its Economy," introduced additional topics including a discussion of the structure of a regional economy and emerging trends in the world's economic systems. It also introduced the notions of comparative advantage and barriers to economic development and the analysis of strengths, weaknesses, opportunities and threats in regional systems. Appendix C describes this presentation. The third lecture on the first day focused on economic base theory and cluster-driven economic development. Specifically export building and leakage-reducing strategies were discusses along with basic and non-basic sources of income. Finally, often ignored themes such as cross-commuting and transfer payments were reviewed. The notes for "Economic Base Theory and Clusters"are found in Appendix D. Following discussions based on these three lectures and associated themes "homework" was .assi nedSpecifically, participants were asked to produce lists of"strengths and g p comparative advantages", "barriers and weaknesses,""opportunities"and "threats." These lists would at least partially guide discussions during the January 15 Think Tank and Session. The second Think Tank Session was held on January 15. Dr. Gibson offered two lectures designed to stimulate thinking on the attributes of effective economic development efforts. The first focused on the regional approach to economic development — its value as a way of leveraging resources but also some of the red flags, downsides, and disbenefits that might come from being "too regional."This presentation was simply called "The Regional Approach" it is found in Appendix E. The other lecture was called "The 12 Commandments" and it focused on the rules that should be followed to assure the creation of a successful economic development effort. The materials for this presentation are found in Appendix F. Discussion covered a variety of topics. Each of the first four structured discussions follow a theme that had been introduced on the previous Saturday. And all four produced lists of"recommendations"or more properly, items which could certainly form the topics of future discussions, projects, or policy initiatives. In some ways, these discussions yielded four different work programs. The items on each list are not ranked; they simply appear in the order mentioned. List 1. Oro Valley's comparative advantages and strengths. Ten items were mentioned. List 2. Opportunities for economic development. Fifteen items were mentioned. List 3. Potential weaknesses and barriers to economic development in Oro Valley. Twelve items were mentioned. List 4. Threats to Oro Valley's economic future. Fourteen items were mentioned here. Finally there was substantial discussion on the business of incentives and economic development. Whereas no firm positions were taken most participants had a genuine interest in seeing an objective analysis of the pros and cons (and costs and benefits) associated with specific incentives. The nine potential incentives on List 5 are those clearly identified during discussions. Conclusion. There appears to be strong and enthusiastic public support for economic development initiatives in Oro Valley. Further, fully engaged elected officials and a knowledgeable and effective city staff are in place to move Oro Valley forward. This mix of capable players in a growing and dynamic community bodes well for Oro Valley. List 1. Oro Valley's Comparative Advantages and Strengths 1. Unlike communities at"build-out" Oro Valley can "do it right"when developing its open land. 2. High quality urban and natural amenities make Oro Valley an exceptional place to live and work. 3. Oro Valley is perceived to be a high-quality subregion within the larger Tucson Metropolitan Region. 4. Oro Valley offers a clean and safe environment. 5. Oro Valley is a "high end, high amenity" place to live and work. 6. Oro Valley's residents are well educated and form a high quality workforce. 7. Oro Valley has competent and highly motivated community leaders. 8. There is a real "sense of community" in Oro Valley. 9. There is room in Oro Valley for continued growth of local markets and demands for additional goods and services. 10.0ro Valley is cohesive, homogeneous, and large enough to offer variety while being small enough to be"manageable." List 2. Opportunities for Economic Development 1. Oro Valley is new, open to change, and not"set in its ways." 2. Oro Valley has great potential to become a "branded" destination. 3. Oro Valley can be (and should be) proactive when promoting small business. 4. Oro Valley has the potential to become a year-round cultural center. 5. Oro Valley still has the opportunity to broaden its retail and service offerings, especially those now under represented. 6. Oro Valley has the opportunity to be innovative in the physical design of the community. 7. Oro Valley has the opportunity to develop small business assistance resources and capabilities. 8. Oro Valley has the opportunity to develop festivals and events, including fine arts events that will enhance its appeal and reputation as a "branded destination." 9. Oro Valley has the opportunity to develop the Naranja Town site "the right way." 10.Oro Valley has the opportunity to further exploit its wonderful winter weather. 11.0ro Valley has the opportunity to have full citizen participation in building a consensus blueprint for the Town's future. 12.Oro Valley has the opportunity to better utilize the Mt. Lemmon resource by building a tram to link the Town to the mountain. 13.0ro Valley has the opportunity to expand its public revenues by instituting a property tax. 14.0ro Valley has the opportunity to rethink its "big box" position and recognize the emergence of the "small box retail revolution." 15.Oro Valley has the opportunity to develop"neighborhood-style retail." List 4. Threats to Oro Valley's Economic Future 1. Unimaginative developments and poor land-use choices could squander Oro Valley's future. 2. Depletion of ground water. 3. Oro Valley may be oversupplied with retail and retail establishments leading to declines in business activity. 4. All infrastructure, but especially roads, may be near or at capacity. 5. Water availability both in absolute availability and in terms of systems capacities. 6. The perception by outsiders that Oro Valley is a "tough place to do business." 7. Lack of economic diversification and overdependence on a single cluster (retail). 8. Failure of leadership to gather authoritative "strategic intelligence"on local, regional, national, and global trends, issues, and opportunities. 9. Secure and sustainable quality public goods are not in place. 10.Oro Valley's leadership is too reactive and not nearly as proactive as it should be. 11.Upward movement of housing costs and diminished supply of"suitable housing" will increasingly limit the "Oro Valley demographic." 12.Oro Valley has the potential to create an inappropriate balance in commercial vs. residential land use. 13.Failure to recognize the need to consider redevelopment of land and to plan for reuse of already developed parcels. 14.Instituting a property tax would be a threat to the community. List 3. Potential Weaknesses and Barriers to Economic Development in to Oro Valley 1. Town rules and regulations may negatively impact business ventures. 2. Poor access to Tucson International Airport. 3. The perception of unstable local government. 4. Poor access to lower skill/lower wage workers. 5. Inflexible town rules and regulations and uneven administration of town codes. 6. High land cost and limited availability of land for development. 7. No speculative buildings for potential industrial tenants. 8. Lack of affordable housing for all but the most affluent. 9. High crime rates in the Tucson Metropolitan Region. 10.Lack of ethnic diversity. 11.Unreasonably high impact fees. 12.Lack of transparency in building regulations and lack of consistencyin building 9 regulations over time. List 5. Economic Development Incentives 1. Job training. 2. "Fast tracking"of the development permits-and-permissions process. 3. A mechanism to develop and support (bus or other) transport for low wage workers who are employed in Oro Valley but who live elsewhere in the Tucson Region. 4. Tax incentives or inducements for a) retail businesses or b) other business types. 5. Fee waivers. 6. Incentivize development of Town Center (public incentives to private developer(s)). 7. Tax rebates to commercial developers. 8. Town subsidy of (selected) infrastructure development costs. 9. Code relaxation. Appendix A Oro Valley's Economic Development Vision and Mission Statements Vision By formally engaging in economic development Oro Valley will demonstrate its commitment to the process in which the government engages to stimulate or maintain business activity and/or employment. The principal goal of economic development is to stimulate employment opportunities in sectors that improve the region or community using existing human, natural, and institutional resources. Mission The Mission of Oro Valley economic development initiatives are to build an even stronger and more desirable Oro Valley by... • Creating export jobs that are commensurate with the education levels and aspirations of Oro Valley residents; • Creating a sustainable public income stream to support high quality public goods; • Supporting the development of business activities that are consistent with Oro Valley's high quality living environment; • Encouraging the retention and expansion of existing businesses — especially export oriented businesses; • Making Oro Valley a branded destination for businesses seeking new locations and individuals seeking a place to visit or reside. 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NW cu 11-• cr in .....„„. .... w -.----.------ . %NI 0 am Erg .._ __-_- =,_•,=._ -L-7-7 w m rim = mi = Eimi c iv co m 3 co .... = Q 4-.. 1,5 „„. rim 0 V) Ai M milm to RI lin ..• =pm mo In Il• .... -N. = n CD = , i ,.: -- --- - = - s--:-''---'-'-'--- 11111111111111.11111111111111Mit 4' ':„.1:1:'1:-:1;., Jill r-r-- - - i, r* ...._ ,,.., t _ .. ,T-1 : f: .11 ., 0 _:‘,..._ . , II . i ........_ , . .'Q4,, 7.,,,, 1 -7 i n , . , 4, , , m _ 0 a 4.. „ _ . -„ _, n .,.. ,i 3 ....._ ._,i0 li"4, , _,;_ y'' s* 0 ' ' 3 1 3 = _ ,, ... _ _, 0C (#14 i - 3 =_... %2'0 n na ...s. 0 = CI0 (I:0 o. m m , < .... m.0o.2.__ ____ ,,, .... ... 0 _=._.._ ___. , No Ea ____.: „4_,_ ,,,,,. ,, __,_____,-,-„.__ _ ,... ,,, m _ii,t,„___ , . 3 3 ______„,_,,,, „, ___,____,_ ._ ,, ...< ,, „______,___, ;.,„____,__ ,„.. _ _ =_____ ,,,_„„, (ID FP irim # sFr tom_ -,r 0 el -i-4,--7; 4'-;:,---f3- ____ „_ __ Zai In -:----- ------.' _ ... - --- --.;-..-z-1 1_1*,c T-af,=_-_-:,.., s __ __ _ ___„_______,____, ,I 1 tit 1 21. 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(ID 113 _ � f _,=*„:„,,r ,.„,,, •,-„,„:„.,...:: . MI (D :;-=---__---..-=-. ' , -,,, - • , MN I Mill Q.------ ,,,,,, . .--,s, 41111.111 r 4 4 n W.4. lk ***''.' :00 :3 - 411140-1114. itillt!INT r s 11; !` ¢ z - = gliaTSI _Iu ts - i 1 --_ j k _111 en • • Yv al ,...rim 0 r* I I i ICUED733I I "'tao - ai. p 'IT m mOOfl (DW (D , rill 1,i O , .,mi iOlk mom m n fa. .. Lii 0 n'"r 7.. -■ 'CP 7.4' a ,,,,AA40 ____ __ ___ to, 40 _ -,__.__- -_,.. I, - ,.. mg rirs 0 n — -. -I = = ,--..-, , - ,„ 0 x „.„____,_.„ a ..... ,E---,----_----4---!. f 4 r 9, w .. . . ci. ,,,-_,,-.--4,- . ) J., _ _ __. . , 4. u:2 CI = co Ri. = rp M ----------- --i_x_4 ,,,,, . 0 .0 rp 0 n _I m 0 (i)* —■ = __ ro. 0 �K � 1 Emit CD. Gii) 7. 3 re, m _ _...„ ID IC.r_____:_ _„_ a .. _ __,„... .-_-, —4CI al * s61P0 ,...,,'ck.° 0 = rim -I .. = CA Ca M n = o = ,,,_=___ _, -� (12 -4.. CD 123 milli 0 0 M IA :-.;_._-------2_,z=,,_ -=..w Pt 7 0 Imil = m )20 = E o rimfa. o al <CINEI% t=1-,_:=417_ -Ai:1.1::. - - . 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ICL imp -,,,„,„...443-3 X 0 %mil -4..,_. = 0 = = CD "_,,_-.:: ',. , - 0#,.. 0 — CA °C.„, ,..,„,,,,:„.„4-,„:„ ., :„..,:::,,„:„.,.:s.:,:.,:.,... c ;,--", --,,,- -„.1... z - * a PO wir Imo rn 1.4 0 .„!,,p . . „,,,,,,,,,,,,,,,,,,:„.,,,,- , 4,_. 2/.1,Li m n O. 0 CD 1:1- ,:i..,,, tC3 = 9 l' 0 M 0 CD1 --- -- - ,-- cr 3 = ,„____,„„„,„,„--„„,,„.„,_.,-,„‘ < ...I. „,-;,,,,_:-„, it��a ,i,.,_,:„.,.:....„,_,,,,,„,,,,,,.„..„,,,, ,,,..„. . m mei mea i..,..„..,..:.,,s.,,„,„.:,::,,,.,.*..,,,,,.,,,,,,,:,.,,,_907 iit) M 6P s ...„,,,, „,„,„:",..,,,_„:, ..:. .:,,.„,„‹. 441,„,, CI. CI imi Z 11:1 mg ::,-1--k.___ ....,,,,,..._ ,„ = MID :•-.7•i---v---,47-4-",*_-!.:9- C:L. * .-.. , c a (I)rPfl m cn mmt 0 = . 71,1:-.. ;::::147,44-', CD (A 0 17:71. 3 %< s All • • • • -.At p.inmn =....# = -1 x -I - imp m •c; m 114 ! M a; nj ai LCI rii --I rim 1::i CU in al 7.: (1) ...,„...0 b.i,,, , ,,,t -so „, .„. 4,,,,_ ri f 411 ri- CI m GU .4 M r.4. „, ,,,w . rril -,.. . M (I) n, = _r---..., __.,, % , ,,,, rim mv rP ar'''oririvir4*-- av z rp,,,, x Q ,,, ._ , ,,.,,,,, _ ....._ ...... I,IF - = Mit W II= 9,.. -.44' k _ 0 1.0 airak (rii = Imi Cli %Fa.: < Nom• W -8----?'------ '- 41.74'''' 0 rim %< M 0 .... -. iiimi. mi. M = ,...11, -,- VI 0 Li4 0 ____:„ � _sa T 0 = ti.I Cr _ ,.._,„_ a1WP 0 o = t 0 al CD (I) - ---e----t--' 10 IIIIIMINNO ,,_, z _ , .. ..s. , AilIN CU - - 0 < 0 ■ =I= --1------ -- ---1±-17----It- P.----17,----:"L in B --------- -------* -iml. ----:---- ' - 3 CD M wirt,--- ,--- - = CU • PEP 3 . .y0 _,,,,,,,,,-..-_-;, I IT:f T. ...1 1 4 ::-.i• ap,. �� - �:_ _ = _- �, _� K • • • _ _ ______;_r„,„4,„___ ___,.„---i.4414'7''s-7. � 70 Z 70 4 a �.,� it:---,-t:r----t-7--r-'---- fl. 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R3 0 1-1 M 0,A ... ‘,„ .. ___... __,,..4 =• ;14%_----,•: I,l--‘,, 0 Z III0 Di ma U __,„„,3 7-------- -Ti-f----A- 0_ __ 4- . 11) al m o ):, rr r = A ‘12 ,,,,. . _ J'' ., •-.:,:,,:= _, ::__,,ist.,51 ......0 ,_.-„,„:„..,,,,,,.-,,,,,,,_ ____ ,..,..,m „,-„, O —I -_,-,-:-. -,- ,,,,A— '---"---'__,Ii---„.::-.': ,.„:„.4,, :A m 4*, ,-„, ,,,. _ _. _ , __ ___ ._= , _ - .._,-„:- ,.-.-. , .____ , - __-,,,f,„_-- , i, . ‘r #,...__:,T,,,_ __,_...,,,::::__.:, ::: ., T,,‘„,..,_ T.. ., - 9* rn - - „it, , P _ ,,,,,..,,,‘„,...„..„,,„„:„..„ . a 10-1 IUFI v c) .=_._„_,____:_„----„,„.„-__=,_-_,-„,,,..„,_,____,_, _,„,„,,,,,=,..„,,,_,_.„ :_,4_..,_.:_.„4„._,. ,,„"-__„--_,_., -_s MCP 11.1.1 1=1 ril M (I) Z I al A fairri = = 0XCM 1 - '' 7: . ..c ,, 1. � vimi oo....< e� o � � � =... ni � 0 �D m a gm -I (D rim mu% ' b f rt p 3 a � u► -� l�D � CD � Ifs„• � 11,v�; 0 rill 7 m O �' � -1 n 7r= Elm• < v. rim MN %< rp mit m 90 ... .... ,,_. PA CO Imo_ = S' — Fri f'.., — M 0 (ii (lib' o C (12a PC __. e-N ,,,,3 CI ;,:,,, gip. ni U Y)0 f�D 0. . u Iail CP � = my = Z ....• WI O M i ok iii< 7.1iis, C2C4... � CII) 0 11.110 'Mr Z ° Mg 414 = M 12) NM (ID Cp OE Imo. u� n CO CO)__,,,,----„_-- A< )12Il = M 11114 ell PC mium I Z LI6 II < (D • CA ;pm: ell) g = 0.01 _ _.. m .1 ---- - - -A. u) 0 ni -1 3 41:1 i ,,,,x- cr. ., ,,,,, . w Num _, ...1 I • CD mil • • S lllluIHllhIllhlIIIIflhIIllB ,,. <- `.=2=1 '�, 111 • • • )2° •IMMI "MI V) )2' Ca 3 a '; M = (1) CI. gum flfl ' ii (A 4 —I = c warp su rPIflVD .,,,,,A4.°cr a; = ul p.- -4°-r---11-i-..2-.. .,,,, e' . I, „ ,7_ mil W = n ____„,,,,„ 1- = .,,--,, In ,,i. n m II „,- - -, . M fil gi „. . _ .._____ 6, ':d i = MI WI „_, .____,:, . = . -.... IN 0 .414 CD (11 X FA 11'4 111111% 0 DJI --i;11:_I::: i::M 1113MI M = = _ -_ ,.., CA 111.1 IN M A i-,--7:------:".:77.;_ _ ....7_,, 'W 1::1 IN 0 (A _,_,__-_, ___„,_,,_:_____,,___,___:.t=____-L:„,-17:71"7::;is'.,_.,4_, 1 1.0- -----Lm---:'''.47:rilb CD m w rims 0 3 -0 01, IICCD 4= m MIN = = < CD riprilli (A I= R. R° iiiii . a 0 ,, < cD .... . m n ••• -11 0 w --i -rit 120 0 x = M (A (D 7:3 ■ = - .,.._,.._.__ .,_T. S. __ _ tir _ _ - I I 0 0 0 0 0 #k rm 0 cv al 0gli (D C C Di _ . CT 3 (A (n riin i 1 , .. a.. w cip . 4 o = = $0),AA1 4 0 0 M M W . CI � b� w � (I) off 41 A't FP 113 WTI (1) (i) (or-0 wit (1) IA IN i illvir .04144 V ni rail i''..-- ,,,, = su 0 0 , .... n w 1.10, _ 0 ,.,4, el ri° rip my t Pill ., limul (11 (11 = ei 0 = = , -I, ,c) P Mr. ,, 0 0 c i. mi „, n (A 4,,. 0 3 MO = f•P .... -I n w3 ,.. C rt0 . � fa -cp in. 30 su _______ w.„. � =•-1 ____7_4, ..... 3 2r In _____„.,,,,, _______ _s . ___„____ _________ NI% imh T ' M O w 1:1 Mt a3 an ta, pis su m to f-POco ul y 0 1----------- ----------- k i l 1 • • • Pint . ■7:i 320 •-I ca , .1 w iii I m = cummt 40 * nnow = .. 1= MINI iai O o ,,,,,.: m c = ....11 CD 'to 3 c o 2, ni .. .3.4 = mai= •-i — = p,„. 0,e,,,,,, (D 3 .2. 0 ri ,, _____,_,_,. i isi,Ti; = CIO $23 c = .12 - (D =. (i) LCI - . 11 ., . CD COD Ili Z 1... k 4 0it°PP 4* =Mum. el 1 0 111.1111 mi.. iiii eil Et; ... ,,,,,,,,. al _r•i. 0 tp. .1 CU (D = , - .17.PlooQ (1) , ..., , o -0 ..... = r:2_ rj, cis -1 -, (1) tA .,-- --__. 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(D n (D = C' 05 py, '■'r IA nIOi - ------ ---- - - CU (il CD (12 to ) (A (1' = COD CCD t . v. =II: ,...,I _■ 0 rim fil rill = 0 _______ .,:, pm rim .... in al _ I=II 3 _ (D(A-".=' -'4-;De:A'4- 'E ■ CD '-: .---774177 -#---'10 = MEI 111o a in = rl 111111 CD Z (D =111 0 fl° u) > 0 = a, u) -N, 40-4 - ''' ‘4,0; 0 tio (DCDtu m zu a H -t ------- 41‹ = MA A .-' CD ' Mill (D 0 ce' _■ < (0/ iiiii -C3 (o) 1211,__ .---7- , ' il) .___ : -.... --,-‘-, P > 0 5 (A _. co _-!:::„:, : , ..,. ,00- - -..%... (A _ _ \ ,„_,, ,, rin_____,_ -___ :,. ----•...--z--, ,,..„.! 2, ___-__,--- ---7--:4. —- S,,,,,--4, W1 = =v:z;....r., .,,,. A (1:1 (D4.=._.-;:- a r_ SP llIllllHuhIHuhtIIffl H u as _,": : - IF-'• !IT:HTF'RtlrfMili)4,f--t-tf-ctttttuttt*--:iztttT- • • • • I, _ . 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