CASTLE ROCK BUSINESS AND DEVELOPMENT INCENTIVE PROGRAM
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1 CASTLE ROCK BUSINESS AND DEVELOPMENT INCENTIVE PROGRAM PROGRAM OVERVIEW Ecnmic Vitality is a critical factr in ensuring Castle Rck s lng-term success and in achieving its Visin f being a Self-Sufficient Cmmunity; a Cmmunity in which Residents can Live, Wrk, Play and Purchase the Gds and Services they need; and Create a Tax Base adequate t supprt prvisin f Cre Twn Services. With increasing reginal cmpetitin, it is imprtant t Castle Rck t create and maintain an exceptinal Business Climate. A key cmpnent is the creatin f an Expanded Business and Develpment Incentive Prgram. The prgram includes elements t supprt cre Castle Rck Ecnmic Develpment pririties including: Attractin and Expansin f Primary Emplyers, Attractin and Expansin f Targeted Retail and Investments in Prjects f Ecnmic Significance, r Serving as Ecnmic Catalysts. The prgram is designed t Create Jbs, Expand the Tax Base, Encurage Existing Businesses t make Capital Investments, and Spur New Office, Industrial, and Retail Expansin and Develpment. It is critical that all incentive prgrams create a Net Psitive Jb r Ecnmic Impact n the cmmunity. The parameters in this prgram are fr guidance purpses and each case will be evaluated n a case-by-case basis. PROGRAM DESIGNED TO ATTRACT AND RETAIN DESIRED BUSINESSES New r Expanding Existing Businesses New cmpanies r thse that are expanding their existing business must be in the negtiatin stages f the relcatin r expansin prcess. An incentive package will nly be cnsidered prir t a cmpany making a final site selectin r expansin decisin. At a minimum, all incentives must be negtiated and agreed t in writing prir t: Executin f a Land/Building Purchase Agreement (signed) Letters f Intent (LOI s) d nt qualify as an executed purchase agreement and are, therefre, generally permitted t exist during the incentive negtiatin perid. Hiring f New Emplyees (new r existing cmpany) Incentives will nt be given retractively r after the hiring prcess r the deal clses. Retain Majr Existing Business In rare and limited circumstances invlving a majr existing primary emplyer r a majr existing sales tax-generating retailer, incentives may be cnsidered fr the primary purpse f retaining that business within the Twn f Castle Rck. Invlvement in Member Organizatins The Castle Rck Twn Cuncil strngly supprts Castle Rck s primary emplyers and encurages cmpanies receiving incentives t demnstrate invlvement in the cmmunity and investment in Castle Rck s ecnmic future. Fr that reasn, Twn Cuncil requests that each recipient investigate membership and spnsrship pprtunities in the member rganizatins f the Castle Rck Ecnmic Partnership: Castle Rck Ecnmic Develpment Cuncil, Castle Rck Chamber f Cmmerce, and Castle Rck Dwntwn Alliance (Dwntwn Develpment Authrity and Dwntwn Merchants Assciatin) Castle Rck Business & Develpment Incentive Prgram 1 P a g e
2 GENERAL APPROVAL PROCESS Funds Available fr the Incentive Prgram Funds available fr the Incentive Prgram are finite. Incentives are granted n a first-cme, first-serve basis. Prject incentives f $100,000 r less may be apprved administratively by the jint signature f the Castle Rck Twn Manager and the Castle Rck Ecnmic Develpment Cuncil CEO. Prject incentives ttaling mre than $100,000 require apprval f the Castle Rck Twn Cuncil. The Twn Manager further reserves the right t refer any incentive applicatin t the Twn Cuncil fr cnsideratin and actin. Applicatins fr Incentives Applicatins fr Incentives shall include a frmal applicatin and submissin f infrmatin and dcumentatin as established and required by the Twn Manager and EDC CEO. Submissin f insufficient infrmatin may be a basis fr rejecting an applicatin. Prprietary business infrmatin shall be cnsidered cnfidential fr public recrds purpses, unless waived in writing by the applicant. Award f Incentives Award f Incentives is a negtiatin prcess. Apprval f a given incentive des nt create a precedent fr cnsideratin r apprval f anther applicatin, and des nt create any rights r benefits upn any prspective applicant r business. Decisins f the Twn Manager and EDC CEO, r the Twn Cuncil, are final and nt subject t appeal. As applicable and apprpriate, best effrts shall be made by the Twn Manager and EDC CEO t cnfer with and btain recmmendatins frm the Castle Rck Ecnmic Partnership, EDC Bard f Directrs, Chamber f Cmmerce Bard f Directrs, r Dwntwn Develpment Authrity Bard f Directrs. PROGRAM REPORTING As part f its annual reprt, Castle Rck EDC will include a sectin dedicated t addressing perfrmance f the Ecnmic Develpment Fund. The reprt will include but nt be limited t: Number and Type (Manufacturing, IT, etc.) f Cmpanies that Used the Incentives Type f Incentive Used (Capital Investment, Jb Creatin etc.) Average Dllar Amunt f the Incentive Packages Balance Tracking The Twn Manager and the EDC CEO shall als reprt Administratively-Apprved Incentives t Twn Cuncil n a regular and timely basis Castle Rck Business and Develpment Incentive Prgram 2 P a g e
3 PROSPECTIVE (NEW) PRIMARY EMPLOYERS A Primary Emplyer is ne in which a minimum f 50% f gds r services are sld utside f Duglas Cunty. Creatin f new primary jbs t grw the ecnmic base and prvide emplyment pprtunities fr Castle Rck residents is a cre pririty. Jb Creatin Incentives A Prspective Primary Emplyer must prvide dcumentatin demnstrating: Incentives: Sale f a Minimum f 50% f its Gds r Services utside f Duglas Cunty; Create a Minimum f 5 Primary Jbs; Maintain these Jbs fr 24 Mnths; Prvide Wage Rate Dcumentatin fr the New Emplyment; Obtain a License and Own/Lease Cmmercial/Industrial Prperty in the Twn f Castle Rck; Engage in a Business Activity Cnsistent with the Gals and Visin f the Twn f Castle Rck. Average Duglas Cunty Wage is $50,977 [Duglas Cunty, 2009] FTE = 38 Hurs per Week (Rate may be updated annually by the Twn Manager and EDC CEO withut Twn Cuncil actin r amendment t this prgram.) Rebates f $1,000 per jb created abve Duglas Cunty average wage. Rebates f $1,500 per jb created abve Duglas Cunty average wage if Castle Rck resident. Rebates f $500 per jb created belw Duglas Cunty average wage. Rebates f $750 per jb created belw Duglas Cunty average wage if Castle Rck resident. Rebate distributin: ½ paid at the cnclusin f year 1; ½ paid at the cnclusin f year 2. (Based n anniversary date f Certificate f Occupancy) Capital Imprvement Incentives A Prspective Primary Emplyer must invest in new capital imprvements: Equipment purchase exceeding $50,000 USD, Execute a building expansin f at least 10%, r Cnstructin f a new building Incentive: Up t a 50% rebate f Develpment Permits and Fees (rlling stck is nt included) 2011 Castle Rck Business and Develpment Incentive Prgram 3 P a g e
4 EXISTING PRIMARY EMPLOYERS A Primary Emplyer is ne in which a minimum f 50% f Gds and Services are sld utside f Duglas Cunty. Creatin f new primary jbs t grw the ecnmic base and prvide emplyment pprtunities fr Castle Rck residents is a cre pririty. Jb Creatin Incentives An Existing Primary Emplyer must prvide dcumentatin demnstrating: Incentives: Sale f a minimum f 50% f Gds and Service utside f Duglas Cunty; Dcument new jb creatin based n cmpany size Jb Minimums: Small Business (20 r fewer emplyees): 2 Medium Business (21 t 49 emplyees): 5 Large Business (50 r mre emplyees): 10 Maintain these jbs fr 24 mnths; Prvide wage rate dcumentatin fr the new emplyment; Be licensed and wn/lease Cmmercial/Industrial prperty in the Twn f Castle Rck; Engage in a business activity cnsistent with the gals and visin f the Twn f Castle Rck. Average Duglas Cunty wage is $50,977 [Duglas Cunty, 2009} FTE = 38 Hurs per Week (Rate may be updated annually by the Twn Manager and EDC CEO withut Twn Cuncil actin r amendment t this prgram.) Rebates f $1,000 per jb created abve Duglas Cunty average wage. Rebates f $1,500 per jb created abve Duglas Cunty average wage if Castle Rck resident. Rebates f $500 per jb created belw Duglas Cunty average wage. Rebates f $750 per jb created belw Duglas Cunty average wage if Castle Rck resident. Rebate distributin: The cntract will be valid frm the anniversary f the signing f the cntract/agreement with ½ f the rebate paid at the cnclusin f year 1 and ½ paid at the cnclusin f year 2. Capital Imprvement Incentives An Existing Business must invest in new r replacement capital imprvements: Equipment purchase exceeding $25,000 Building expansin f at least 10%, r Cnstructin f a new building Incentive: Up t 50% f Develpment and Permit Fees (rlling stck is nt included), prvided that the new equipment des nt result in existing jb lss. Business Retentin Incentives An Existing Majr Primary Emplyer cnsidering relcatin utside f the Twn f Castle Rck may be eligible fr incentives demnstrated t be necessary fr the business t remain in Castle Rck. Incentives: Negtiated n a case-by-case basis. Incentives exceeding $100,000 require Twn Cuncil apprval Castle Rck Business and Develpment Incentive Prgram 4 P a g e
5 TARGET INDUSTRY PROSPECTIVE PRIMARY EMPLOYERS Target Industry Incentives are in additin t the incentives prvided under general Primary Emplyers categry. An additinal $1,000 may be earned per jb created, enabling targeted industries t earn up t $2,500 per new jb. Other incentives may be cnsidered n a case-by-case basis. Primary emplyers in ne f the identified target industries may be eligible fr additinal incentives. Target industries are determined annually by the Twn Manager and EDC CEO. Changes require Twn Cuncil apprval. The Twn f Castle Rck s targeted industries are: IT/High Tech Natinal Finance/Insurance Prfessinal Scientific Services (architecture, engineering, etc.) Manufacturing Incentive: Up t an additinal 25% rebate f Develpment and Permit Fees in additin t the ther Jb Creatin and Capital Imprvement incentives. ECONOMIC CATALYSTS/PROJECT OF ECONOMIC DEVELOPMENT SIGNIFICANCE There are certain prjects f special significance that generate greater pprtunities fr additinal ecnmic develpment and/r prvide highly desirable cmmunity amenities. These significant prjects include, but are nt limited t: Highly Desired Retail Hspital Higher Educatin Facilities Cultural Facilities Dwntwn Wedding District Recreatinal Facilities Sprts Facilities Ecnmic catalysts als may be assciated with specific gegraphic areas within twn targeted fr develpment r redevelpment. Incentives: Incentives fr these types f prjects are negtiated n a case-by-case basis with the EDC CEO and Twn Manager. Incentives exceeding $100,000 require Twn Cuncil apprval Castle Rck Business and Develpment Incentive Prgram 5 P a g e
6 RETAIL INCENTIVES Expansin f the Twn s Sales Tax Base is a cre pririty. A Strng Retail Base als prvides diversity and ptins f gds and services t residents, can attract reginal dllars, and supprts the Cmmunity Visin f Castle Rck as a Self- Sufficient Cmmunity. The prject shuld at a minimum: Fill a Market Niche; Be a desirable additin t Castle Rck, which includes but is nt limited t the fllwing key retail targets: - Family Entertainment - Reginally-Oriented Retailers - Specialty Restaurant - Retail underrepresented in Castle Rck market; Engage in a business activity cnsistent with the gals and visin f the Twn f Castle Rck; Have a psitive impact n Castle Rck sales tax revenue; Be licensed r btain a license ding business frm an wned r leased cmmercial prperty lcatin within the Twn f Castle Rck. New business develpment and expansin f existing businesses are eligible fr incentive cnsideratin. Under special circumstances invlving a majr sales tax-generating retailer, incentives may be cnsidered primarily fr the retentin r imprvement f such an existing business within the Twn f Castle Rck. Incentives: Percentage shareback f Twn sales tax received frm the business fr a specific perid f time that the business is in peratin. Sharebacks are subject t the annual apprpriatin f Twn Cuncil. Other incentives cnsidered n a case-by-case basis. Incentives exceeding $100,000 require Twn Cuncil apprval Castle Rck Business and Develpment Incentive Prgram 6 P a g e
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