Title
Continued Review and Discussion of Economic Development Incentive Policy and incentives related to multi-family projects
Body
Issue/Request:
Continued Review and Discussion of Economic Development Incentive Policy and incentives related to multi-family projects
Key Issues:
Information that is new from the January 12, 2022 CEDC meeting has been incorporated in bold text below.
At a prior City Council meeting, the Mayor and Council requested staff revisit the 2017 Multi-family market demand study and further requested to review the adopted Economic Development Incentive Policy with respect to the utilization of incentives toward multi-family development.
Attached to this packet is the current adopted Economic Development Incentive Policy as well as a process flow chart that will be reference during the presentation. Staff will be presenting how the policy is utilized when considering multi-family developments as well as the process used to consider incentive applications for multi-family projects. Mayor Pro Tem Lopez assigned the matter to the Community and Economic Development Committee (CEDC) for consideration.
At the January 12, 2022 CEDC meeting, staff highlighted the process utilized when considering incentives and how the adopted Economic Development Incentive Policy guides decision making for incentive requests. In addition, staff provided a historical review of projects that have utilized incentives for residential uses. The CEDC provided general feedback regarding the use of incentives for residential developments:
* Greater caution and awareness about sales and use tax abatement requests due to financial impacts to taxing jurisdictions
* Concern regarding fixed Payment in Lieu of Taxes (PILOTS) as unintentional abatements have occurred over time
* Desire to match level of incentive to the cost of public improvements necessary or extraordinary costs related to the proposed project
* Potentially incorporate language within the policy that is ...
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