BC 2003 12 15 - Laserfiche WebLink

Home Browse Search

December 15, 2003 Page 322 projects that had a substantial economic impact in Cabarrus County. To remain consistent with its intent, it is prudent that the program be periodically reviewed and modified to account for changes in economic parameters, effectiveness and applicability. The County Commission directed staff to conduct routine review of the county's incentive programs; recommend changes when appropriate; and, monitor program effectiveness. The input of participating municipalities, the Chamber of Commerce and the Cabarrus County Economic Development Corporation was sought and received through direct recommendations and endorsements. This document reflects amended incentive program parameters adopted by the County Commission (June 1, 1999 and January 1, 2004). Each project considered under these guidelines shall be viewed independently of any project previously considered, awarded or rejected by the county and participating municipalities. A proposed project to be located within the boundaries of a municipality may be subject to a different set of guidelines set by the City than those applying to award of a grant by the county. The Cabarrus County Economic Development Corporation shall pre-screen applicants to be considered for award of grants under this program. Applicants will be required to present relevant information related to the application to the appropriate elected board of the Cities and County inclusive of details of the project, its impact and the rationale for award of the incentive grant(s). The presentation shall carry forward a recommendation from the Cabarrus County Economic Development Corporation as to the award of a grant and specific conditions that should be considered relative to the proposed project. II. PROGRAM PARAMETERS The INDUSTRIAL DEVELOPMENT GRANT PROGRAM is designed to create a rational relationship between incentives authorized and the true economic impact of a qualifying project. Recognizing that it is difficult to determine with any exactness the actual fiscal impact of a specific project, Cabarrus County has chosen to use the estimated new taxable real and personal property tax assessment base created by a project in determining attributable fiscal impact upon the local economy to decide whether a particular project merits consideration. Even though the County has chosen the estimated property tax assessment base as the value criterion for the INDUSTRIAL DEVELOPMENT GRANT PROGRAM, incentives offered by the County are not considered as allocated from any dedicated revenue source. Incentives are paid from the County's General Fund after appropriate budgetary actions by the County Commission. The General Fund consists of revenue sources inclusive of ad valorem taxes, local sales taxes, intergovernmental revenues, permit and fee revenues, sales and service fee revenues, financing sources, interest earnings and other miscellaneous revenues. Other than as established by applicable federal or state law, revenues have no dedicated expenditure purpose. The fiscal impact of a project could be evaluated using methods to include employment data, wages and benefits, secondary job creation, business spin- offs and related factors. Those methods could produce a more favorable view of a project's regional fiscal impact. Workforce mobility and the ability of economic decisions to transverse governmental units make those factors unreliable in measuring direct local financial impacts. Emphasis on those factors could lead to inflated estimates of a project's value and less certain cost-benefit based incentive decisions. The intent of the INDUSTRIAL DEVELOPMENT GRANT PROGRAM is that the County will see a positive financial benefit associated with each project. Economic development incentive programs elsewhere have seen significant public financial investments by local governments committed to on the front- end of a project go unrecovered in benefits (either in directly attributed financial returns or in the creation of newer higher paying jobs). The INDUSTRIAL DEVELOPMENT GRANT PROGRAM is designed to ensure that the county and participating municipalities see increases in property tax assessment base and other local government revenue resources in excess of grants awarded. Grants shall not exceed five years in period of award and any one grant award period must be completed not later than seven years after initial award to allow for construction and production start-up time. An extension to these limits may be granted based upon specific project related issues, but is not guaranteed or required. The formal agreement between the parties (grant recipient, cities and county) shall attempt to specifically identify dates for purposes of establishing the appropriate time period(s) that a grant will be in effect. Dates to be established will include consideration of the date of award, a date for the beginning of construction, production start-up date and the dates for the beginning and ending of the incentive grant awards. Each project will be dealt with on an individual basis using these guidelines and other directives authorized by the Cabarrus County Commission. These guidelines are subject to change and will be reviewed routinely from date of adoption, the County Commission requiring it.