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IV. EXAMPLES 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 a $5,000,000 qualifying investment at a 75% grant)
<br />
<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 - property taxes
<br />
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />
<br />= $ 5,000
<br />= $22,000 with an IDI Grant of $16,500
<br />= $22,000 with an IDI Grant of $16,500
<br />= $22,000 with an IDI Grant of $16,500
<br />= $22,000 with an IDI Grant of $16,500
<br />= $22,000 with an IDI Grant of $16,500
<br />
<br />Year 7 - property taxes paid = $22,000 IDI Grant ceases
<br />The IDI Grant would equal $82,500 at the current tax rate of $.~.~./$100.
<br />Effective annual property tax payments equal $3,000 year 1 and $8,500 in years
<br />2-6.
<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 />
<br />I - property taxes
<br />2 - property taxes
<br />3 - property taxes
<br />4 - property taxes
<br />5 - property taxes
<br />6 - property taxes
<br />
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />
<br />= $ 5,000
<br />= $88,000 with an IDI Grant of $70,400
<br />= $88,000 with an IDI Grant of $70,400
<br />= $88,000 with an IDI Grant of $70,400
<br />= $88,000 with an IDI Grant of $70,400
<br />= $88,000 with an IDI Grant of $70,400
<br />
<br />Year 7 - property taxes paid = $88,000 IDI Grant ceases
<br />The IDI Grant would equal $352,000 at the current tax rate of $.dd/$100.
<br />Effective annual property equal $5,000 year I and $17,600 in years 2-6.
<br />
<br />Level III grant (based on $100,000,000 qualifying investment at a 85% grant)
<br />
<br />Year
<br />Year
<br />Year
<br />Year
<br />Year
<br />Year
<br />
<br />1 - property taxes paid
<br />2 - property taxes paid
<br />
<br />3 - property taxes
<br />4 - property taxes
<br />5 - property taxes
<br />6 - property taxes
<br />
<br />paid
<br />paid
<br />paid
<br />paid
<br />
<br />= $ 5,000
<br />= $440,000 with an IDI Grant of $374,000
<br />= $440,000 with an IDI Grant of $374,000
<br />= $440,000 with an IDI Grant of $374,000
<br />= $440,000 with an IDI Grant of $374,000
<br />= $440,000 with an IDI Grant of $374,000
<br />
<br />Year 7 - property taxes paid = $440,000 with an IDI Grant ceases
<br />The IDI Grant would equal $1,870,000 at the current tax rate of $.44/$100.
<br />Effective annual property tax payments equal $5,000 year 1 and $66,000 in years
<br />2-6.
<br />
<br />V. PROGRAM ADOPTION AND EFFECTIVE DATE
<br />
<br />These industrial development incentive grant program guidelines were endorsed
<br />
<br />
<br />
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