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IV. EXAMPLES OF APPLICATION OF THE GRANT PROGRAM
<br />
<br />Industry XYZ buys a property that is currently paying annual prope~¥ 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 I - property taxes
<br />Year 2 - property taxes
<br />Year 3 - property taxes
<br />Year 4 - property taxes
<br />Year 5 - property taxes
<br />Year 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 th~ current tax rate of $.4415100.
<br />Effective annual property tax payments equal $~i,000 year I and $8,500 in yearn
<br />2-6.
<br />
<br />- Level II grant (based on $20,000,000 qualifying investment at a 80% grant)
<br />
<br />Year 1 - property taxes
<br />Year 2 - property taxes
<br />Year 3 - property taxes
<br />Year 4 - property taxes
<br />
<br />Year 5 - property taxes
<br />Year 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 IOl Giant of $70,400
<br />= $88,000 with an IDI Orant of $70,400
<br />= $88,000 with an IOl 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 ceas~'~s
<br />The IDI Grant would equal $352,000 at the current tax rate of $.44/$100.
<br />Effective annual property equal $5,000 year I and $17,600 in years 2-6.
<br />
<br />Level III grant (based on $100,000,000 qualifying invest~nent at a 85% grant)
<br />
<br />Year 1 - property taxes
<br />Year 2 - property taxes
<br />Year 3 - property taxes
<br />Year 4 - property taxes
<br />Year 5 - property taxes
<br />Year 6 ~ property taxes
<br />
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />paid
<br />
<br />$ 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 Gran[ 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 yea,' 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 ouMelines were endorsed
<br />
<br />
<br />
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