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340
<br />
<br />DRAFT
<br />
<br />additional local option sales tax (if authorized) wlll NOT be considered
<br />as available or applicable for purposes o£ any commercial/retail
<br />development incehttge grant program.
<br />
<br />The distribution of incentive payments shall coincide with the receipt of
<br />quarterly sales tax revenues from the State by the County. The timing of
<br />payments to the developer shall be quarterly within 30 days of receipt of
<br />funds from the State and verification documentation of project sales by
<br />the developer. The developer will provide the County information related
<br />to any overpayment of sales tax collections by project tenants and
<br />subsequent refunds paid to tenants by the State on a quarterly basis along
<br />with the routine documentation of project tenant sales.
<br />
<br />ALL COMMERCIAL/RETAIL DEVELOPMENT INCENTIVE GRANTS WILL BE CONVEYED BY A
<br />FORMAL AGREEMENT BETWEEN THE DEVELOPER RECEIVING THE GRANT AND THE COUN~"f
<br />ALONG WITH AFFECTED CITIES AND TOWNS AS APPROPRIATE. THE COUNTY (CITIES
<br />IF APPLICABLE) WILL PROVIDE FOR A PUBLIC HEARING PROCESS TO ALLOW FOR
<br />PUBLIC INPUT PRIOR TO THE FORMAL AUTHORIZATION OF ANY COMMERCIAL/RETAIL
<br />DEVELOPMENT INCENTIVE GRANT AGREEMENT.
<br />
<br />IV. EXAMPLES OF APPLICATION OF THE GRANT PROGRAM
<br />
<br />Developer XYZ constructs a major commercial/retail complex meeting the criteria
<br />established within the C/RDIG program:
<br />
<br />Level I grant (based on 250,000 SF GLA, Sales of $200 SF GLA
<br />(25% grant based upon only the County's share of local sales tax,
<br /> 97-98 formula)
<br />250,000 SF multiplied by $200 SF sales equates to $50,000,000 total sales
<br />Local sales tax estimated at: first 1 cent - $50 million ~ 1% - $500,000
<br /> two % cents - $50 million @ 1.16% - $580,000
<br /> total local sales tax generated $1,080,000
<br /> County's share (FY '97%) - 67.85% of $1,080,000 - $ 732,780
<br /> Base grant potential - 25% of $732,780 for 5 years - $ 915,975
<br />County revenues from local sales tax for the same period - $ 2,747,925
<br />
<br />Level II grant (based on 500,000 SF GLA, Sales of $200 SF GLA ~
<br />(50% grant based upon only the County's share of local sales tax,
<br /> 97-98 formula)
<br />500,000 SF multiplied by $200 SF sales equates to $100,000,000 total
<br /> sales
<br />Local sales tax estimated at: first 1 cent -$100 million @ 1% - $1,000,000
<br /> two % cents- $100 million @ 1.16% -$1,160,000
<br /> total local sales tax generated $2,160,000
<br /> County's share (FY '97 %) - 67.85% of $ 2,160,000 - $ 1,465,560
<br />Base grant potential - 50 % of $ 1,465,560 for 5 years - $ 3,663,900
<br />County reven~es from local sales tax for the same period - $ 3,663,000
<br />
<br />Level III grant (based on 1 million SF GLA, Sales of $200 SF GLA
<br />(75% grant based upon only the County's share of local sales tax, 97-98
<br /> formula)
<br />1 Million SF multiplied by $200 SF sales equates to $ 200,000,000 total
<br /> sales
<br />Local sales tax estimated at: first 1 cent - $200 million @ 1%- $2,000,000
<br /> two % cents-S200 million @ 1.16%- $2,232,000
<br />total local sales tax generated $4,232,000
<br />County's share (FY '97 %) - 67.85 of $ 4,232,000 - $ 2,871,412
<br />Ease grant potential - 75% of $ 2,871,412 for 5 years - $ 10,767,795
<br />County's revenues from local sales tax for the same period - $ 3,589,265 -~.
<br />
<br />ALL ESTIMATES ARE BASED ON DATA AVAILABLE. CHANGES IN THE ACTUAL PERCENTAGE OF
<br />THE COUNTY'S SHARE OF THE LOCAL 1 CENT AND TWO h CENT SALES TAXES WILL VARY
<br />ANNUALLY. ACTUAL SALES DATA IS A REQUIRED SUBMITTAL OF THE DEVELOPER RECEIVING
<br />THE GRANT.
<br />
<br />V. PROGRAM ADOPTION AND EFFECTIVE DATE
<br />
<br />These commercial/retail development incentive grant program guidelines are
<br />subject to changing economic conditions at the direction of the Cabarrus Co~ty
<br />Board of County Commissioners. It is proposed that the effective date of
<br />implementation of the grant program guidelines will be for agreements related to
<br />
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