02-22-16 Meeting of the La Porte Development Corporation Board of Directors

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Incentive Guidelines for New and Expanding Businesses City of La Porte 11 November 2015 Incentives for new or expanding businesses should be limited to the lesser of: (a) A maximum 10 year payback of the business's new/additional tax revenues to the City of LaPorte, or (b) Up to 25% of the business's total expenditures for "infrastructure", "site improvements", and "other related improvements"; 2. Businesses that create new "primary jobs" will receive additional value, which will be calculated as an "Adjusted Payback' 3. "Primary Job Training" is an eligible expense toward a business's 25% total expenditure; 4. The maximum contribution of the Board to projects in the La Porte Enhancement Grant Program is $50,000; and 5. Projects that do not meet these parameters will be considered on a case-by-case basis. Contextual Information for Economic Development Grant Awards All projects that apply for an economic development grant must meet the following criteria: (1) Only the minimum amount of financial assistance required to bring the project to fruition will be considered. (2) A strict, narrow focus will be maintained for using funds on "infrastructure", "site improvements", "related improvements", and "primary job training". (3) The incremental tax revenues, including both property and sales tax revenues, to be generated by each project, which may be verified in the quarterly and annual STARS Reports, will be included in the model. (4) The value of number of new jobs associated with each project will be assigned a value and included in the model as follows: a. A value of 0.15 per job will be assigned for higher paying, white collar, engineering, engineering design, or executive "primary jobs". b. A value of 0.125 per job will be assigned to highly skilled positions for a process technician and/or advanced manufacturing "primary jobs". c. A value of 0.10 per job will be assigned to skilled "primary jobs". d. A value of 0.075 per job will be assigned to unskilled "primary jobs", and e. A value of 0 per job will be assigned to "non -primary jobs". (5) Projects which have already made a commitment to establish anew business in LaPorte will not be considered for an incentive grant. (6) Projects which have already started construction or other renovation work will not be considered for an incentive grant. (7) The ED Board and/or City Council will retain discretion to award any lesser or greater amount to any given project.