HomeMy WebLinkAboutDiscussion of an Economic Development Impact Fee Mitigation program1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: A discussion of an Economic Development Impact Fee Mitigation
(EDIFM) program as an incentive for targeted business and industry
sectors in consideration of Ordinance 1853.
MEETING DATE: January 28, 2013
AGENDA ITEM TYPE: Action
RECOMMENDATION: Consider the discussion below in the context of adopting Ordinance
1853 and based on the discussion, provide direction to staff regarding the creation and funding of
an EDIFM program.
BACKGROUND:
At the public meeting held on December 10, 2012, the Commission directed staff to
return with, among other information, a discussion of targeted support for impact fee mitigation.
The following material is part of the larger Commission discussion on the implementation of the
impact fee program.
Economic Development and Impact Fees
Ideally, in its consideration of the implementation of the transportation impact fee
program, the Commission would discuss the synchronization of the impact fee program
implementation with the Commission’s established economic development goals, priorities and
policy initiatives.
This memo discusses an economic development incentive program commonly referred to
as an Economic Development Impact Fee Mitigation, or EDIFM, program. In the economic
development strategies of many states and local governments, a mitigation program is usually
one of a broad portfolio of economic development incentives. That is to say, if incentives are a
functional part of an organization’s economic development “strategy”, the organization should
not depend on an EDIFM program alone.
176
2
A well integrated policy and regulatory environment is advantageous for both the public
and private entities. The effect of the new impact fee methodology on the implementation of the
City’s Economic Development Plan should be considered in the overall impact fee
implementation discussion. It should be noted that incentivizing targeted industry growth for
economic development may take several forms, funded from a variety of sources. The broader
discussion is beyond the scope of this memo which is focused on targeted incentives for
economic development through the City’s impact fee program. One type of incentive is the
establishment of an economic development impact fee mitigation program (EDIFM) described
below.
Economic Development Impact Fee Mitigation Program Authority
Currently there is enabling language in the Bozeman Municipal Code (the “BMC”) which
allows the mitigation of some or all of development impact fees for the promotion of economic
development. The Commission’s decision to mitigate some or all development impact fees must
be made “pursuant to goals and objectives previously adopted by the city commission to promote
economic development.”
Bozeman Municipal Code Sec. 2.06.1700. - Miscellaneous provisions.
H. In order to promote affordable workforce housing of the city, the city commission may
waive impact fees for workforce housing lots approved by the city commission pursuant
to Chapter 10, Article 8, by paying some or all of the impact fee from other funds of the
city that are not restricted to other uses. In order to promote the economic
development of the city and the provision of affordable housing in the city, the city
commission may agree to pay some or all of the development impact fees imposed on
a proposed development by this division from other funds of the city that are not
restricted to other uses. Any such decision to pay development impact fees on behalf
of an applicant shall be at the discretion of the city commission and shall be made
pursuant to goals and objectives previously adopted by the city commission to
promote economic development and/or affordable housing.
Economic Development Impact Fee Mitigation Program Rationale
The concept underlying the mitigation of a portion or all of an assessed transportation
impact fee lies in the desire by a local government to incent or support economic development by
reducing the cost of development to certain industries. Generally, certain types of business or
industry, identified as being high-skilled or having high growth potential, pays higher than the
average in wages and benefits. These jobs add significant value to a community by providing
expanded numbers of well compensated employees in a variety of mid to higher paying jobs and,
in turn, those employees re-invest into the community by purchasing homes, goods and services.
This result is a higher level of economic activity and, for local government, an expanded tax
base.
The Goals and Strategies of the City’s adopted 2009 Economic Development Plan (the
“EDP”) identify several rationales for adoption of a mitigation program. (Attachment 1) First,
177
3
the EDP identifies several broad potential high growth business “clusters” as catalysts for
medium to high paying job creation and overall expanded economic diversification.
Additionally, EDP goals “encourage the participation of the business community in the
development of city-wide programs related to transportation, growth management, development
impact fees, environmental protection, and other related issues.”
The City’s Economic Development Council (the “EDC”) is a volunteer advisory body
consisting of public and private sector appointees. In the course of its work, the EDC discussed
the impact fee issue on several occasions, much of it information and education. In November,
2012 the EDC supported forwarding the following discussion points for Commission
consideration during the impact fee discussion:
1. Identify specific sectors, job creating and industry diversifying sectors, with high
growth potential, for deferral of commercial impact fees, or a percentage thereof,
until the application for Certificate of Occupancy;
2. Increase education and information; and
3. Compare the City’s development fee schedule against the development fee schedules
of other communities on a yearly basis.
As evidenced by the example of public participation and input described above, the
Commission continues to meet goals set forth in the EDP. These three discussion points are
addressed elsewhere in narrative and in the previous memorandum1. Additional goals, as they
relate to targeted mitigation of impact fees, are highlighted below:
1. Support the expansion and retention of existing businesses and economic
clusters that will continue to strengthen and diversify the economy and create
higher paying jobs in Bozeman.
a. Pursue, support, and provide assistance for business start-up, expansion,
and business recruitment efforts that strengthen the following economic
clusters:
• Arts & Culture (artisans, fine arts, cultural heritage, entertainment)
• Construction and Development (architecture, construction, engineering)
• Green (clean and renewable energy, water conservation, waste reduction
technologies, outdoor/recreational activities)
• Healthcare and Medical
1 A discussion of a targeted sector impact fee deferral program is contained in the previous memo dated January 28,
2012, titled Ordinance 1853 amending Chapter 2, Article 6, Division 9, Impact Fees to establish definitions, address
possible deferral of payments, modify timing of documentation updates, and other revisions for clarity; and possible
direction on related implementing resolutions.
178
4
• Knowledge Based Enterprises (research and development, think tanks,
financial services, consulting, public policy, education)
• Manufacturing (machinery, printing, wood product, textile,
food/beverage, computer/electronic)
• Media (film, publishing, journalism, Internet)
• Technology (biotech/bioscience, information technology, laser/optics)
b. Support and promote entrepreneurial efforts linked to emerging markets, high
technology, and research and development.
c. Support the Business Expansion and Retention (BEAR) program that is facilitated
by the Bozeman Area Chamber of Commerce and Bozeman Job Service.
d. Leverage MSU-Bozeman research, faculty, and students to expand upon current
opportunities and identify additional opportunities for the long term economic
diversity and vitality of Bozeman.
e. Encourage the participation of the business community in the development of
city-wide programs related to transportation, growth management, development
impact fees, environmental protection, and other related issues.
f. Support efforts by the Bozeman Convention and Visitors Bureau, the Bozeman
Area Chamber of Commerce, the Downtown Bozeman Partnership, Prospera
Business Network, MSU-Bozeman, and others to promote Bozeman.
Additionally, the EDP encourages leveraging local resources to enhance economic
growth:
4. Leverage local, state, and federal economic development resources to enhance
economic growth in Bozeman.
a. Continue to utilize tax increment financing (TIF) programs as a tool for urban renewal
and economic redevelopment opportunities where appropriate.
b. Support the continued growth and success of the Bozeman Revolving Loan Fund
(RLF) and the establishment of new revolving loan funds to provide additional financing
options for Bozeman businesses.
c. Utilize incentives or inducements, such as property tax abatement or development
fee abatement, to encourage business investment and development in desired areas.
179
5
d. Encourage commercial real estate developers to apply for New Market Tax Credits on
projects that meet the established criteria.
e. Utilize the Big Sky Economic Development Trust Fund (job training grants, planning
grants, matching funds) and Workforce Training Grants from the Montana Department of
Commerce to support business expansion and relocation as well as current economic
development planning projects.
f. Seek new Community Development Block Grant (CDBG) funds to implement projects
and programs.
g. Utilize Brownfield funding to facilitate redevelopment in appropriate sites where
funding is available.
h. Identify and support redevelopment opportunities and adaptive reuse of large
commercial centers.
The above adopted economic development goals are consistent with the creation of an
economic development incentive program to encourage the growth and addition of mid- to high
wage jobs.
Sample Economic Development Impact Fee Mitigation Ordinance and Programs
While impact fee mitigation programs exist throughout the nation, we examined two
local governments in Florida with active EDIFM programs2.
Since 2011 the City of Lakeland, Florida (2010 pop. est. 97,422) has operated an EDIFM
program to “encourage quality job growth in targeted high value added businesses”.
(Attachment 2) You can find more incentive and program information at Lakeland’s Economic
Development Council website.
Their material states:
In Lakeland there are three ways to take advantage of the [impact fee] mitigation:
1. High Wage Job Creation (build to suit projects adding high wage jobs paying
115% of the average annual wage);
2. Industrial Job Creation (build to suit projects adding more than 100 new jobs); or
3. Inventory Development (creating an available industrial building inventory for
prospective companies).
2 Examples of other communities who use EDIFM programs are; a) City of Edgewater, Florida, b) City of
Fremont, California, c) City of Arlington, Texas, and d) City of Tucson, Arizona.
180
6
Two businesses have taken advantage of the program since its inception. One has since
failed, the second brought 400 jobs to the community and, according to Lakeland officials, the
auto parts distribution operation remains stable.
Martin County Florida (2008 pop. est. 138,660) has operated an EDIFM program since
2008. (Attachment 3) Established by ordinance, the program intends to “to encourage
economic opportunities and permanent business expansion.” (Attachment 4) You can find
more incentive and program information at Martin County’s economic development website.
The Martin County incentive criteria are:
1. Create a minimum number of jobs (10) within a “Qualified Target Industry Business”
(Attachment 5);
2. Pay between 115% and 200% of average private sector wage or, commit to between
$10m to over $20m total capital investment; and
3. Commit to remain in the County at least until such time as obligations of the
Economic Development Fund, related to the business, are replenished.
According to the administrating authority, despite several promising starts and genuine
interest by expanding or relocating business interests, the program has yet to be used. They cited
various reasons for the inactivity. In Florida, the stagnant economy played a role in limiting all
types of new or expanding development. Extended payback periods for the amount of upfront
cost savings was not cost effective for most of the projects. There was difficulty financially
securing projects especially through gaining favorable positioning over the primary lender on
property liens, and in Martin County land costs are generally lower but infrastructure costs are
generally higher, than adjacent incorporated municipalities. Finally, the size and scope of the
incentive criteria may be out of balance with current economic realities.
In addressing some of the program stagnation identified by Martin County, it is important
to note that Bozeman is experiencing increased commercial and residential development activity,
a sign that economic conditions are improving. A Bozeman EDIFM program could address and
minimize the payback periods thus providing a more cost effective alternative to the Florida
model. Financial security for an EDIFM eligible development project may take many forms, one
of which may be a property lien. If a property lien is identified as a possible form of financial
security for an EDIFM eligible development project, more research would be necessary to
determine if that form if security is legal in Montana and how the local lending community will
react to the suggestion that the City take the first position over primary lenders on property liens.
If an EDIFM program is established in Bozeman, the land to infrastructure values would likely
be the reverse of Martin County, where the cost of land may be more expensive but there is more
infrastructure in place and thus may reduce the overall infrastructure cost in relation to those in
the county. Lastly, in terms of program size and scope, County officials indicate the incentive
criteria thresholds could be scaled according to the size, conditions and desire of the community.
Each local government experienced varying degrees of success with their EDIFM
program. Despite the varying success rates, they agree that a funded EDIFM program is an
important addition to their overall economic development incentive portfolio. It is important to
181
7
note that providing opportunities, even if criteria are selective, to reduce cost, delivers a strong
“business friendly” message locally, statewide and across the county.
Concerning the consistency of the incentive criteria, applying the metric of “jobs
created”, as shown in the two examples of incentive criteria above, is consistent with the State of
Montana’s economic development manufacturing package incentive criteria. (Attachment 6)
While the State’s economic development funding and financing programs are very different from
an EDIFM program, the number of jobs created by targeted development, in this instance a
manufacturing development project, job creation consistently remains an important, if not the
most important, criteria along with the specific sectors targeted. The incentive criteria is also
consistent with the over arching economic development goal for the City of Bozeman which is to
facilitate job creation and economic diversification.
Economic Development Impact Fee Mitigation Program Funding
Montana law requires the mitigated amount of the impact fee be supplemented from an
authorized revenue source. See 2.06.1700.H, BMC (requiring that mitigation payments come
“from other funds of the city that are not restricted to other uses”). Other States, including
Florida, have similar legal requirements. According to the City Attorney, these requirements are
based in the concept of proportionality and fairness. In Florida, the funds required to make up for
the mitigated amounts are derived from a variety of local sources and in the instance of the local
governments whose EDIFM programs we examine here, from both public and private sources
dedicated solely to funding economic development activities. In the case of the EDIFM
programs examined above, program funding comes from a variety of sources including state,
local and private funds.
Options for funding an EDIFM program in Bozeman are limited. A few options include:
1. Allocate general fund money through the regular yearly budget process,
increasing mills to support economic development activities (with or without a
sunset provision)3;
2. Commission support for a ballot initiative to raise revenue to fund economic
development activities;
3. Leverage general fund money to match private funding for the purpose of funding
economic development activities; and/or
4. Current tax increment finance districts (TIFs) could be requested to approve a
certain percentage of annual budgets to support economic development activities.
Any one, or combination of potential funding sources listed above could include funding
for an EDIFM program. Additionally, the Commission could consider a cap on the total amount
of cost mitigated by an EDIFM program on an annual basis.
In 1986, the Bozeman City Commission unanimously supported a Resolution of Intent to
levy one mill for “economic development purposes”. (Attachment 7) The issue was placed on
3 The FY 13 value of one mill is $83,226. Currently the City levies 166.75 mills, 29.87 mills below the statutory
limit of 196.62 mills.
182
8
the ballot in November, 1986 and was defeated by a vote of 3402 For and 3686 Against. What is
notable is the sunset provision in the resolution and ballot language, “for each of the next five
years.” If it is determined that supporting an increase of one or more mills for economic
development is appropriate, a similar sunset provision could be considered for any proposed mill
levy increase. Additionally, for efficacy purposes, it would be important to track the
effectiveness of any new economic development program, including an EDIFM program, or
activity to justify continued funding.
Another discussion question arises: Which industry sectors should an EDIFM program
target? Unlike Florida, the State of Montana does not have the statutory equivalent of the
Qualified Target Industry Business (QTIB) defining targeted sectors. The EDP and the City’s
EDC have broadly identified the high growth sectors of manufacturing and fabrication, bio-
science and bio-technology, high-technology, photonics/optics and the outdoor industry as
desired industries. If an EDIFM program is created, these sector descriptions should be refined
and adopted by Commission in ordinance or resolution form having the effect of further
legitimizing and solidifying targeted sectors. Once codified, the City’s QTIB could form the
basis of other economic development incentive programs in addition to an EDIFM program.
Education and Information
Education is a critical component of the success of any program. There are many
common misconceptions about the purpose and intent of impact fees and how the City’s current
program operates. Regardless of whether deferral or mitigation programs are authorized, the
Commission should consider supporting increasing resources for educating the public and staff
about the City’s impact fee program. Both private sector businesses and local economic
development service providers also hold misconceptions about the City’s impact fee program.
On occasion, City staff is invited to discuss and explain the impact fee program to private
businesses and non-profit economic development service providers who regularly interact with
the development community.
Additionally, the EDC, in its December 10, 2012 memo to the City Commission,
presented discussion points on the impact fee issue. In addition to suggesting targeting specific
sectors for an impact fee deferral program and conducting a yearly comparison of the City’s
impact fee schedule with those of other communities, the EDC suggested the Commission
discuss increasing the level of education and information about the City’s impact fee program to
both the public and staff.
UNRESOLVED ISSUES: Provide direction to City staff to:
1. Create an appropriately scaled EDIFM program;
2. Refine and adopt, by resolution or ordinance, the targeted sector criteria;
3. Identify a funding source or sources to support economic development activities,
including an EDIFM program; and/or
4. Other issues identified by the Commission.
ALTERNATIVES: As directed by the Commission.
183
9
FISCAL EFFECTS: The fiscal effects on the City are undetermined at this time. Should the
Commission allocate tax revenue to an EDIFM program, or other economic development
activities, funding these activities will have effects on local taxes.
Report compiled on: January 16, 2013
Attachments:
1. Adopted 2009 Economic Development Plan Goals and Strategies;
2. Economic Development Impact Fee Mitigation Program, City of Lakeland, Florida;
3. Economic Development Transportation Impact Fee Mitigation Program, Martin County,
Florida;
4. Martin County, Florida Ordinance 804, Economic Development Transportation Impact
Fee Mitigation Program establishment ordinance;
5. State of Florida’s “Qualified Target Industry Business” or QTIB criteria;
6. State of Montana’s manufacturing funding and financing program information; and
7. City of Bozeman, Resolution 2621 (1986).
184
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-1
VII. BOZEMAN ECONOMIC DEVELOPMENT GOALS AND STRATEGIES
The following list of economic development priorities – identified as goals and strategies – are a
culmination of the research and development of the City of Bozeman Economic Development Plan. It is
recognized that the City of Bozeman will lead the implementation of some of these goals and
strategies, and with others, the City will assume a supporting role, while private entities lead the
implementation. An Implementation Matrix, which identifies specific strategies for the City of
Bozeman to initiate and lead with a corresponding timeline, is included in the next section (Section
VIII). The goals and strategies are all important and there is no priority ranking attached to the order
of presentation.
These goals and the more specific strategies provide a framework in which the City, the business
community, and key stakeholder groups can plan, prioritize, and implement economic development
activities for the benefit of all citizens of Bozeman. Not all of these proposed strategies will have the
same impact, but through a focused and collaborative effort, Bozeman will be better positioned to
be more competitive.
The specific recommendations and priorities of the City of Bozeman Economic Development Plan fall
under the following 6 general economic development goals:
1. Support the expansion and retention of existing businesses and economic clusters that will
continue to strengthen and diversify the economy and create higher paying jobs in Bozeman.
2. Maintain and upgrade infrastructure to support current and future needs of business.
3. Support education and workforce development initiatives to provide Bozeman with the
qualified workers to meet the needs of business.
4. Leverage local, state and federal economic development resources to enhance economic
growth in Bozeman.
5. Create a more collaborative and effective working partnership between the business
community and the City of Bozeman and effectively manage the City of Bozeman’s
regulatory environment to accomplish goals without hindering business expansion and
economic growth.
6. Maintain the high quality of life that is considered an important asset to the business
community.
185
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-2
1) Support the expansion and retention of existing businesses and economic clusters that
will continue to strengthen and diversify the economy and create higher paying jobs in
Bozeman.
a. Pursue, support, and provide assistance for business start-up, expansion, and business
recruitment efforts that strengthen the following economic clusters:
• Arts & Culture (artisans, fine arts, cultural heritage, entertainment)
• Construction and Development (architecture, construction, engineering)
• Green (clean and renewable energy, water conservation, waste reduction technologies,
outdoor/recreational activities)
• Healthcare and Medical
• Knowledge Based Enterprises (research and development, think tanks, financial services,
consulting, public policy, education)
• Manufacturing (machinery, printing, wood product, textile, food/beverage,
computer/electronic)
• Media (film, publishing, journalism, Internet)
• Technology (biotech/bioscience, information technology, laser/optics)
b. Support and promote entrepreneurial efforts linked to emerging markets, high
technology, and research and development.
c. Support the Business Expansion and Retention (BEAR) program that is facilitated by
the Bozeman Area Chamber of Commerce and Bozeman Job Service.
d. Leverage MSU-Bozeman research, faculty, and students to expand upon current
opportunities and identify additional opportunities for the long term economic diversity
and vitality of Bozeman.
e. Encourage the participation of the business community in the development of city-wide
programs related to transportation, growth management, development impact fees,
environmental protection, and other related issues.
f. Support efforts by the Bozeman Convention and Visitors Bureau, the Bozeman Area
Chamber of Commerce, the Downtown Bozeman Partnership, Prospera Business
Network, MSU-Bozeman, and others to promote Bozeman.
186
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-3
2) Maintain and upgrade infrastructure to support the current and future needs of business.
a. Maintain infrastructure (city service or private service) at safe and efficient levels to
satisfy the current and future needs for economic expansion. The condition of streets
and sidewalks, water and sewer, gas and electric distribution, communications, and solid
waste disposal all affect how efficiently businesses conduct their operations. It also
contributes to business retention and recruitment efforts.
b. Support and encourage the efforts to develop larger convention or conference center
facilities to attract larger statewide or regional meeting and convention business to
Bozeman.
c. Support or lead efforts to develop an industrial park to meet the needs of existing and
future manufacturing or industrial businesses.
d. Support the efforts of the Gallatin Airport Authority and others to maintain and expand
air service at Gallatin Field Airport in recognition of the importance of Gallatin Field
Airport to Bozeman’s economy.
e. Support the further development of technology park areas to meet the needs of existing
and future technology based companies.
3) Support education and workforce development initiatives to provide Bozeman with the
qualified workers to meet the needs of business.
a. Support the efforts of the Montana University System to expand 2-year degree and job
training and certification programs in Bozeman.
b. Support the enrollment growth of MSU-Bozeman through the statewide legislative level
and at the local level. All avenues should be explored that promote MSU and Bozeman
in a cooperative manner.
c. Support the creation of market-rate and affordable rental and owner-occupied housing
that meets the needs of the local workforce.
d. Encourage MSU College of Technology in Bozeman, Bozeman Job Service and the
Bozeman School District to develop and maintain continuing education and certification
programs for high-demand jobs.
e. Support a periodic comprehensive survey among local employers and target sectors to
identify their labor needs and minimum skill requirements. Utilize findings of the survey
187
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-4
to coordinate with MSU, MSU College of Technology, Bozeman School District, and
others to refine existing and develop new programs directed at addressing the identified
skill needs.
f. Work with existing or new businesses to access Montana Department of Commerce
Workforce Training Grants to support employee training costs.
g. Continue to support the Bozeman Area Chamber of Commerce’s Leadership Bozeman
Program to identify, train, and motivate prospective and current business and
community leaders.
h. Support the “Come Home Montana” promotion (and consider developing a “Come
Home Bozeman” promotion) to Montana alumni residing out of state, highlighting local
employers and career opportunities, local quality of life, and other factors that may lead
to a decision to return to Bozeman.
4) Leverage local, state, and federal economic development resources to enhance economic
growth in Bozeman.
a. Continue to utilize tax increment financing (TIF) programs as a tool for urban renewal
and economic redevelopment opportunities where appropriate.
b. Support the continued growth and success of the Bozeman Revolving Loan Fund (RLF)
and the establishment of new revolving loan funds to provide additional financing
options for Bozeman businesses.
c. Utilize incentives or inducements, such as property tax abatement or development fee
abatement, to encourage business investment and development in desired areas.
d. Encourage commercial real estate developers to apply for New Market Tax Credits on
projects that meet the established criteria.
e. Utilize the Big Sky Economic Development Trust Fund (job training grants, planning
grants, matching funds) and Workforce Training Grants from the Montana Department
of Commerce to support business expansion and relocation as well as current economic
development planning projects.
f. Seek new Community Development Block Grant (CDBG) funds to implement projects
and programs.
188
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-5
g. Utilize Brownfield funding to facilitate redevelopment in appropriate sites where funding
is available.
h. Identify and support redevelopment opportunities and adaptive reuse of large
commercial centers.
5) Create a more collaborative and effective working partnership between the business
community and the City of Bozeman and effectively manage the City of Bozeman’s
regulatory environment to accomplish goals without hindering business expansion and
economic growth.
a. Establish an advisory committee to perform a time-limited review of the City of
Bozeman’s development process. The committee would be charged with evaluating
development issues and making recommendations for policy or procedure changes to
the City Commission. The committee would be made up of business leaders, city
planning staff, developers, planning board members, and others. The following 4
strategies would best be evaluated and implemented by this development process review
committee:
(1) Review the processes for permitting, licensing, and other regulatory requirements to
improve the climate for doing business in Bozeman.
(2) Provide an efficient and well-defined land development process with development
regulations being as flexible as possible and efficiently administered.
(3) Support continuing technological advances in systems and equipment to make the
development permitting process more efficient. Integrate technology into business
processes to increase operational efficiencies, improve service delivery and control
costs.
(4) Empower the Planning Department staff and the City Commission to build more
efficiency in the decision making process.
b. Designate a qualified city employee with economic development responsibilities and a
role as the community business advocate.
c. Establish an Economic Development Council to advise the City Commission on
economic development issues and to review the implementation of specific economic
development initiatives. This council should be made up of business leaders, city staff,
economic development leaders, and others.
189
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VII. GOALS AND STRATEGIES VII-6
d. Engage in an active program for the City Commission and City staff to visit Bozeman
businesses on a routine basis, with the intent of improving the relationship between the
City and the business community, and to proactively identify issues and work to resolve
them collaboratively. Coordinate with the Bozeman Area Chamber of Commerce,
Prospera Business Network, and others to facilitate this program.
e. Ensure working economic development relationships with Gallatin County and other
jurisdictions within the region to better coordinate economic development activities.
f. Coordinate with the Bozeman Area Chamber of Commerce, Prospera Business
Network, the Northern Rocky Mountain Resource and Conservation District and
Economic Development District (RC&D-EDD), the Downtown Bozeman Partnership,
the Montana Department of Commerce, and others to monitor local, regional and
national economic trends and market Bozeman as a desirable place to do business.
g. Support efforts of the Montana Manufacturing Extension Center (MMEC), TechRanch,
the Small Business Development Center (SBDC), and other organizations to encourage
and foster entrepreneurship and small business development in Bozeman.
6) Maintain the high quality of life that is considered an important asset to the business
community.
a. Recognize and support the idea that Bozeman’s “quality of place” is a significant asset
for the business community.
b. Support the continued economic vitality of the downtown Bozeman business district,
which is broadly recognized as one of Bozeman’s strongest assets. Continue to support
and promote downtown Bozeman as the economic and cultural center of the region, and
encourage development and re-development through the use of incentives for future
investment and development. [Refer to the 2009 Downtown Improvement Plan for
additional information.]
c. Support the economic vitality of Bozeman’s entryway corridors to reinforce Bozeman as
a regional shopping destination.
d. Require a cost benefit analysis or economic impact analysis for all projects receiving
financial assistance from the City (including incentives) to measure the return on
investment.
e. Promote an energy efficient and sustainable community through the City’s policies and
practices. [Refer to Bozeman Community Plan for additional information]
190
The Economic Development Impact Fee Mitigation (EDIFM) is a reduction of impact fees to encourage quality
job growth in targeted high value added businesses. The EDIFM was designed to encourage Build to Suit and
Speculative Building Development.
There are three ways to take advantage of the mitigation: 1.) High Wage Job Creation – build to suit projects
adding high wage jobs paying 115% of the average annual wage or 2.) Industrial Job Creation – build to suit
projects adding more than 100 new jobs or 3.) Inventory Development – creating an available industrial
building inventory for prospective companies.
HIGH WAGE JOB CREATION
Pre-approved applicants who build a new facility and create high wage jobs in the City of Lakeland will receive a
50 to 90% reduction/waiver of non utility impact fees. For businesses creating 10-50 jobs, paying 115% of the
average annual wage, a 50% impact fee mitigation may be received. Businesses creating 51- 100 jobs, paying
115% of the average annual wage, a 70% impact fee mitigation may be received. Businesses creating 101+ jobs,
paying 115% of the average annual wage, a 90% or full mitigation of impact fees may be received.
Number of Jobs Created Average Wage Total Mitigation Amount
10 - 50 115% 50%
51 - 100 115% 70%
101 + 115% 90%
50% of the approved mitigation amount will be deducted from the impact fees due at the time the building
permit is issued. The remaining 50% of the approved mitigation amount will be refunded once the total number
of jobs committed for the project, have been added. It is up to the recipient of the mitigation award to provide
proof to the City of Lakeland, that the jobs have been created to receive the remainder of the mitigation.
Eligibility:
In order to participate, the company must apply to the Community Development Department of the City of
Lakeland with a letter of recommendation from the Lakeland Economic Development Council (LEDC) prior to
pulling a building permit.
• Submit the application before making a decision to locate or expand and demonstrate that the impact
fee reduction/waiver will make a difference in the company’s decision to locate or expand. Once the
building permit has been issued, the company is no longer eligible.
• Create at least 10 net, new full time jobs.
• Pay an average annual wage that is at least 115% of Polk County’s average annual wage. (Average
annual wage includes overtime and bonus, but not benefits). 115% of the average annual wage is
$40,259 or $19.36 per hour. The average wage changes annually, January 1st.
• The Qualified Target Business/approved business or the owner of real property, but both can not apply
for the impact fee mitigation.
191
Application Process:
• Community Development and/or LEDC staff will help the applicant throughout the entire process to
ensure the company understands what is required for a complete application.
• Any person seeking the EDIFM needs to file an application for mitigation with the Director of
Community Development or his designee, along with $500 for the administrative review fee, prior to
the Impact Fee payment date.
Approval Process:
• The Community Development Director has final approval of all projects.
• The City of Lakeland will make every effort to expedite the process to meet the applicant’s schedule
and will take no more than 30 days to evaluate a completed application.
INDUSTRIAL JOB CREATION:
Pre-approved applicants who build a new facility and create high volume industrial jobs in the City of Lakeland
will receive a 50 to 90% reduction/waiver of non utility impact fees. For businesses creating 100-199 jobs a 50%
impact fee mitigation may be received. Businesses creating 200-299 jobs, a 70% impact fee mitigation may be
received. Businesses creating 300+ jobs a 90% or full mitigation of impact fees may be received.
Number of Jobs Created Total Mitigation Amount
100 - 199 50%
200 - 299 70%
300 + 90%
50% of the approved mitigation amount will be deducted from the impact fees due at the time the building
permit is issued. The remaining 50% of the approved mitigation amount will be refunded once the total number
of jobs committed for the project, have been added. It is up to the recipient of the mitigation award to provide
proof to the City of Lakeland, that the jobs have been created to receive the remainder of the mitigation.
Eligibility:
In order to participate, the company must apply to the Community Development Department of the City of
Lakeland with a letter of recommendation from the Lakeland Economic Development Council (LEDC) prior to
pulling a building permit.
• Submit the application before making a decision to locate or expand and demonstrate that the impact
fee reduction/waiver will make a difference in the company’s decision to locate or expand. Once the
building permit has been issued, the company is no longer eligible.
• Business must be a Qualified Target Industry
• Create at least 100 net, new full time jobs.
• The Qualified Target Business/approved business or the owner of real property, but both can not apply
for the impact fee mitigation.
Application Process:
• Community Development and/or LEDC staff will help the applicant throughout the entire process to
ensure the company understands what is required for a complete application.
192
• Any person seeking the EDIFM needs to file an application for mitigation with the Director of
Community Development or his designee, along with $500 for the administrative review fee, prior to
the Impact Fee payment date.
Approval Process:
• The Community Development Director has final approval of all projects.
• The City of Lakeland will make every effort to expedite the process to meet the applicant’s schedule
and will take no more than 30 days to evaluate a completed application.
INVENTORY DEVELOPMENT
Preapproved applicants who build new building inventory, wholesale/warehouse and/or
manufacturing/industrial, space that is 70,000 square feet or greater are eligible for a 50% reduction of non
utility impact fees when the building permit is pulled.
New Building Inventory Space Total Mitigation Amount
70,000 square feet and greater 50%
The 50% mitigation amount will be deducted from the impact fees due at the time the building permit is issued.
Eligibility:
• In order to participate, the company must apply to the Community Development of the City of Lakeland
with a letter of recommendation from the Lakeland Economic Development Council (LEDC) prior to
pulling a building permit.
• Submit the application prior to applying for a building permit. Once the building permit has been
issued, the company is no longer eligible.
Application Process:
• Community Development and/or LEDC staff will help the applicant throughout the entire process to
ensure the company understands what is required for a complete application.
• Any person seeking the EDIFM needs to file an application for mitigation with the Director of
Community Development or his designee, along with $500 for the administrative review fee, prior to
the Impact Fee payment date.
Approval Process:
• The Community Development Director has final approval of all projects.
• The City of Lakeland will make every effort to expedite the process to meet the applicant’s schedule
and will take no more than 30 days to evaluate a completed application.
193
ECONOMIC DEVELOPMENT IMPACT FEE MITIGATION
PROGRAM INSTRUCTIONS
The Impact Fee Mitigation Program was established by County Ordinance 804. The Ordinance
created a new Section 71.45 that allows impact fee mitigation for businesses meeting the
requirements of the program, as defined in Section 71.45 and detailed below. This program is
intended to encourage economic opportunities and permanent business expansion. It is not an
entitlement program. The program is established in order to provide the Board of County
Commissioners the opportunity, in its sole discretion, to grant impact fee mitigation to Qualified
Target Industry Businesses. Applicants must apply for the Program prior to the issuance of the
Building Permit for the subject property or project. An agreement for the impact fee mitigation
must be approved by the County Commission prior to the granting of the impact fee relief. The
Instructions lay out the requirements of the Program and the application for qualified businesses
to seek the mitigation.
Definitions
"Qualified Target Industry Business" or “QTIB” shall mean a new or expanding business in the
County that meets the requirements of Section 288.106, Florida Statutes, or its statutory
successor in function, as a Qualified Target Industry Business or as identified by EFI, OTTED,
and/or the BDBMC.
"Applicant" shall include any person, company, or research institute that qualifies as a Qualified
Target Industry Business and which is seeking to expand in or locate to Martin County.
“Property Owner” shall mean any person or entity owning the land upon which the Qualified
Target Industry Business will be expanding on or locating to.
Minimum Criteria.
To be eligible for an Economic Development Impact Fee Mitigation, an Applicant must meet the
following minimum criteria in accordance with Section 71.45.D.1, listed below
Qualify as a Qualified Target Industry Business and create a minimum of ten (10) new jobs with an
average private sector wage (excluding benefits) of at least 115% of the average private sector
194
wage, as identified annually by Enterprise Florida, Inc., for either Martin County or the
Metropolitan Statistical Area which includes Martin County and provide a benefit package that
includes health insurance and commit to remain in the County at least until such time as obligations
of the Economic Development Fund, related to the business, are replenished in accordance with
subsection 71.45.L.; or must meet the following minimum criteria in accordance with Section
71.45.D.2, listed below:
Qualify as a Qualified Target Industry Business and create a minimum of ten (10)
new jobs with an average private sector wage (excluding benefits) of 100% of the
average private sector wage, as identified annually by Enterprise Florida, Inc., for
either Martin County or the Metropolitan Statistical Area which includes Martin
County and make a taxable capital investment in the County of $10 million or
greater in construction, renovations, equipment purchases, or other major capital
investment items and commit to remain in the County at least until such time as
obligations of the Economic Development Fund, related to the business, are
replenished in accordance with subsection 71.45.L.; and
Enter into an agreement with the County and the Property Owner (if the Applicant
business is not the Property Owner) wherein the Applicant agrees to locate or
expand its business operations within Martin County and will remain in the County at
least until such time as obligations of the Economic Development Fund, related to the
business, are replenished in accordance with subsection 71.45.L. The Agreement will
also require the Applicant to provide the County with the Applicant's Florida
Department of Revenue Quarterly Report (UCT-6) form or successor document, and
all other documentation to demonstrate that the job creation and salary level
commitments were achieved. Provisions for penalties, repayment or suspension of
payments for non-performance related to this program shall be clearly established
in the agreement.
195
Economic Development Impact Fee Mitigation Amounts
If the Applicant meets the requirements provided above for mitigation, the Applicant shall be
eligible for the following:
If the Applicant qualifies, it shall be eligible to receive an Economic Development Impact Fee
Mitigation in the following amounts; provided, however, that the Board may proportionally
increase these mitigation amounts in the event the Applicant exceeds these requirements:
Number of Jobs Created % of Average Private Sector Wage Mitigation Amount
Minimum of 10 115% plus benefits $3,500 per job created
Minimum of 10 150% plus benefits $5,000 per job created
Minimum of 10 200% plus benefits $7 500 per job created
If the Applicant qualifies under subsection 71.45.D.2. above, it shall be eligible to receive an
Economic Development Impact Fee Mitigation in the following amounts; provided, however that
the Board may proportionally increase these mitigation amounts in the event the Applicant
exceeds these requirements:
Number of Jobs Created Total Capital Investment Mitigation Amount
Minimum of 10 $10,000,000 to $14,999,999.99 40% of total County
Impact Fees
Minimum of 10 $15,000,000 to $19,999,999.99 50% of total County Impact
Fees
Minimum of 10 $20,000,000 or more 60% of total County Impact
Fees
Restriction to One Criteria Category
Each Applicant shall only be eligible for mitigation under either subsection 71.45.D.1. or
subsection 71.45.D.2., but not both.
196
Payment Limits.
In no case shall mitigation benefits exceed the amount of the actual impact fees due to the
County as a result of expansion or location of the QTIB project as specified in the application.
County Administrator and Board of County Commissioners Review
If the County Administrator finds that the Applicant meets the requirements provided herein for
mitigation, the County Administrator shall agenda an Impact Fee Mitigation Agreement before
the Board of County Commissioners which shall contain the Martin County Impact Fee Mitigation
Application for Qualified Target Industries and any other documents as requested by the County
Administrator. Because this Program is not an entitlement program, the Board may accept or
reject the request for mitigation without cause.
Deferment of Impact Fee Payment.
In addition, the Board of County Commissioners may defer payment by the Economic
Development Fund of impact fees mitigated by the Impact Fee Mitigation Program for a period
not to exceed ten (10) years.
Application
Any Applicant seeking an Economic Development Impact Fee Mitigation shall file an
application for mitigation with the County Administrator prior to the issuance of the Building
Permit for the subject property or project. Any request for Economic Development Impact Fee
Mitigation must be submitted to the County by the Applicant prior to the Applicant deciding whether
or not they will expand or locate in Martin County.
Certification of the Business Development Board
The Business Development Board must verify that the application qualifies as a Targeted Industry. The
application contains a form for this purpose.
197
Martin County Board of County Commissioners
Qualified Target Industry Incentive Application:
IMPACT FEE MITIGATION PROGRAM
___________________________________________
(Name of Business or Project Codename)
Must be a business unit or reporting unit of a business unit that is registered with or will be registered with the State of Florida
for unemployment compensation purposes.
a) Name of Business (or Project Codename)* ___________________________________________
b) Type of Business Corresponding to the most recently adopted State of Florida Qualified Target
Industry List: ______________________________________________________
c) Contact Person: ________________________________________________________
Phone number/e-mail: ___________________________________________________
d) Business FEIN: ________________________
2. Project information
a) Is the project (please circle): Expansion Relocation/location
b) Is the project (please circle): New Construction Change of Use
c) Location of Property: ___________________________________________________________
_____________________________________________________________________________
d) Name and Address of Property owner Name, if different than Business Owner: _____________
_____________________________________________________________________________
e) What is the anticipated size of new construction: ________________ sq. ft.
f) Date by which all construction is anticipated to be completed: _______________________
198
g) What is the anticipated value of improvements to be made on-site: $_________________
h) What is the anticipated capital investment in equipment for the site $_________________
3. Project employment:
a) Total number of net new jobs created by the project at the business unit that is
to be located or expanded in Martin County*: __________________________________
b) Date by which new jobs will be created: ______________________________________
c) For purposes of certification, agreement, and claim review, indicate the wage and
corresponding threshold (percentage) to which you commit:
1. $ _______________ 100% of the _______(year) average private sector wage in Martin County*
2. $ _______________ 115% of the _______(year) average private sector wage in Martin County
3. $ _______________ 150% of the _______(year) average private sector wage in Martin County
4. $ _______________ 200% of the _______(year) average private sector wage in Martin County
*Jobs at or below 115 of the average private sector wage in Martin County are only eligible under the
Capital investment strategy of the Economic Development Impact Fee Mitigation program.
_________________________________________________ _______________________
Signature of individual completing this portion Date
_____________________________________
Please print or type name of individual completing this portion
_________________________________________________ _______________________
Signature of Authorized Officer Date
_________________________________________________
Please print or type name of Authorized Officer
199
Required Attachments
Legal Description of property
Overview of the project including description of anticipated construction and the jobs to be
created in Martin County
Attach proof that the identified construction or property modification will be for a Qualified Target
Industry Business and/or will directly benefit a Qualified Target Industry Business
A notarized affidavit and all necessary supporting evidence affirming that the requirements of
subsection 71.45.D.1. or subsection 71.45.D.2., General Ordinances, Martin County Code will be
met within one (1) year of the date the Certificate of Occupancy is issued which term may be
extended by the Martin County Administrator upon good cause shown.
Authorization to Act on Behalf of the Applicant.
Authorization to Act on Behalf of Property Owner
200
Martin County Board of County Commissioners
Qualified Target Industry Incentive Application
Business Development Board of Martin County
Verification of Program Qualification For:
______________________________
(Name of Business or Project Codename)
VERIFICATION CHECKLIST:
______ Name of Business or Project Codename
______ Business Address
______ Business FEIN
______ Business Type Corresponds with __________________ as included on the State of (industry type)
Florida Qualified Target Industry List in effect as of ________________. (Date)
______ Authorized Officer’s signature and name.
______ Contact/Representative has appropriate authority from applicant business
______ Address of new location or site at which expansion will take place
______ Owner of Property
______ Business Owner has appropriate authority from property owner
______ Business Owner has verified number of jobs to be created in Martin County
______ Business Owner has verified average salary level for jobs created
______ Average Salary Level exceeds 115% of average private sector wages for Martin County.
_________________________________________________
Print Name of Authorized Officer
_________________________________________________ _______________________
Signature of Authorized Officer Date
201
202
203
204
205
206
207
208
209
210
Businesses able to locate in other states and serving multi-state and/or international markets are targeted. Call Centers and Shared Service
Centers may qualify for incentives if certain economic criteria are met. Retail activities, utilities, mining and other extraction or processing
businesses, and activities regulated by the Division of Hotels and Restaurants of the Department of Business and Professional Regulation are
statutorily excluded from consideration. All projects are evaluated on an individual basis and therefore operating in a target industry does not
automatically indicate eligibility.
For additional information about Florida’s business advantages,
please visit Enterprise Florida’s website at www.eflorida.com
or call 407.956.5600.Rev. 2/11
HOMELAND SECURITY / DEFENSE
AVIATION:
Aircraft and Aircraft
Parts Manufacturing
Maintenance Repair
and Overhaul of
Aircrafts
Navigation
Instrument Manufacturing
Flight Simulator
Training
AEROSPACE:
Space Vehicles and
Guided Missile Manufacturing
Satellite
Communications
Space Technologies
Launch Operations
AVIATION / AEROSPACE
Modeling, Simulation
and Training
Optics and Photonics
Digital Media
Software
Electronics
Telecommunications
INFOTECH
Biotechnology
Pharmaceuticals
MEDICAL DEVICES:
Laboratory and
Surgical Instruments
Diagnostic Testing
LIFE SCIENCES
EQUIPMENT:
Optical Instruments
Navigation Aids
Ammunition
Electronics
TRANSPORTATION:
Military Vehicles
Shipbuilding and
Repair
TECHNOLOGY:
Computer Systems
Design
Simulation and
Training
Biomass &
Biofuels Processing
Energy Equipment
Manufacturing
Energy Storage
Technologies
Photovoltaic
Environmental
Consulting
CLEANTECH
FINANCIAL SERVICES:
Banking
Insurance
Securities and Investments
PROFESSIONAL
SERVICES:
Corporate
Headquarters
Engineering
Legal
Accounting
Consulting
FINANCIAL / PROFESSIONAL SERVICES
EMERGING TECHNOLOGIES OTHER MANUFACTURING
Global Logistics
Marine Sciences
Materials Science
Nanotechnology
Food and Beverage
Automotive and Marine
Plastics and Rubber
Machine Tooling
MANUFACTURINGCORPORATE HEADQUARTERSRESEARCH & DEVELOPMENT
211
212
213
214
215
216
217
218
RESOLUTION NO 2621
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF BOZEMAN MONTANA INDICATING THE CITY S
INTENT TO LEVY ONE MILL FOR ECONOMIC DEVELOPMENT
PURPOSES FOR EACH OF THE NEXT FIVE YEARS UPON
APPROVAL OF A MAJORITY OF THE QUALIFIED ELECTORS
OF THE MUNICIPALITY AT THE NEXT GENERAL ELECTION
WHEREAS on July 28 1986 the Gallatin Development
Corporation requested that a proposal for a one mill levy
for each of the next five years to be used for economic
development purposes be placed on the ballot for the
November 1986 election and
WHEREAS Section 90 5 112 M C A authorizes a
governing body to levy a tax of one mill for economic
development for a period not to exceed five years upon an
affirmative vote of a majority of the qualified electors
and
WHEREAS funds derived from this levy may be used for
purchasing land for industrial parks constructing buildings
to house manufacturing and processing operations conducting
preliminary feasibility studies promoting economic
development opportunities in a particular area and other
activities generally associated with economic development
and
WHEREAS funds may not be used to directly assist an
industry s operations by loan or grant or to pay the salary
or salary supplements of government employees and
WHEREAS the governing body of the City may use the
funds derived from this levy to contract with local
development companies and other associations or
organizations capable of implementing the economic function
NOW THEREFORE BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF BOZEMAN MONTANA
Section 1
That the one mill levy as stated herein shall be placed
before the qualified electors of the City of Bozeman at the
general election to be held on Tuesday November 4 1986
219
I
and the wording of the proposal shall be substantially as
follows
FOR Authorizing the City of Bozeman to make a
levy of one 1 mill per year for each of
the next five 5 fiscal years for the
purpose of raising money to fund local
economic development activities
AGAINST Authorizing the City of Bozeman to make a
levy of one 1 mill per year for each of
the next five 5 fiscal years for the
purpose of raising money to fund local
economic development activities
Section 2
That any revenue derived from the special one mill levy
election as provided herein will be used for the purposes
authorized by the state law
PASSED AND ADOPTED by the City Commission of the City
of Bozeman Montana at a regular session held thereof on
the 11th day of August 1986
tA Jj yr YLvLZ
May r
ATTEST
Jt J 7j
I itiJ c6 iLit yC1
Clerk of the City Commission
2
220