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IV. EXAMPLF:S OF APPLICATION OF THE GRANT PROGRAM
<br />
<br />Industry XYZ buys a property that is currently paying annual property taxes to the City
<br />in the amount of $5,000 per year.
<br />
<br />Level I grant (based on
<br />
<br />Year
<br />Year
<br />Year
<br />Year
<br />Year
<br />Year
<br />Year
<br />
<br />I - property taxes
<br />2 - property taxes
<br />3 - property taxes
<br />4 - property taxes
<br />5 - property ~axes
<br />6 - property loxes
<br />7 - property taxes
<br />
<br />a $5,000,000 qualifying investment at a 75% grant)
<br />
<br />)aid
<br />said
<br />said
<br />=aid
<br />2aid
<br />said
<br />2aid
<br />
<br />= $ 5,000
<br />= $22,000 with an IDI Grant olr $16.500
<br />= $22,000 with an IDI Grant of $16,500
<br />= $22,000 with an lOI Grant of $16,500
<br />
<br />= $22,000
<br />= $22,000
<br />= $22,000
<br />
<br />with an IDI Grant of $16,500
<br />with an IDI Grant of $16,500
<br />IDi Grant ceases
<br />
<br />The IDI Grant would equal $82,500 at th~ current tax rate of $.44/$100.
<br />Effective annual property tax payments equal?5,000 year 1 and $8,500 in years
<br />
<br />Level II grant (based on $20,000,000 qualifying investment at a 80% grant)
<br />
<br />Year
<br />Year
<br />Year
<br />Year
<br />Year
<br />Year
<br />Year
<br />
<br />I - property taxes
<br />2 - property taxes
<br />3 - property taxes
<br />4 - property taxes
<br />5 - property taxes
<br />6 - proper'b/ taxes
<br />7 - prope,'-t'y taxes
<br />
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />
<br />= $ 5,000
<br />= $88,000
<br />= $88,000
<br />= $88,000
<br />= $88,000
<br />= $88,000
<br />= $88,000
<br />
<br />with an IOI GCant of $70,400
<br />with an IDt G~ant of $70,400
<br />with an IOI Grant of $70,400
<br />with an IDI Grant of $70,400
<br />with an IDI Grant of $70,400
<br />IDI Grant ceases
<br />
<br />The IDI Grant would equal $352,000 at the current tax rate of $.44/$100.
<br />Effective annual property equal $5,000 year 1 and $17,600 in years 2-6.
<br />
<br />Level III grant (based on $100,000,000 qualifying invest~nent at a 85% grant)
<br />
<br />Year 1 - property
<br />Year 2 - property
<br />Year 3 - property
<br />Year 4 - property
<br />Year 5 - property
<br />
<br />taxes paid
<br />taxes paid
<br />taxes paid
<br />taxes paid
<br />taxes paid
<br />
<br />= $ 5,0OO
<br />= $440,000
<br />= $440,000
<br />= $440,000
<br />= $440,000
<br />
<br />with an IDI Grant of $374,000
<br />with an IOl Grant of $374,000
<br />with an IDI Grant of $374,000
<br />with an IO1 (.;rant of $374,000
<br />
<br />Year 6 - property taxes paid = $440,000 with an IDI Grant of $374,000
<br />Year 7 - property taxes paid = $440,000 with an IDI Gran~: ceases
<br />The IIDI Grant would equal $1,870,000 at the current [ax rate of $.44/$100.
<br />Effective annual properb/tax payments equal $5,000 year 1 and $66,000 I~ years
<br />2-6.
<br />
<br />PROGP, A,M ADOPTION AND EFFECTIVE DATE
<br />
<br />These industrial development incentive grant progran~ U' nttelines were endorsed
<br />
<br />
<br />
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