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HomeMy WebLinkAboutMO # 1464MUNICIPAL ORDER NO. 1464 A MUNICIPAL ORDER CREATING THE "ARTIST RELOCATION INCENTIVE PROGRAM" FOR NEW ARTISTS, CREATIVE BUSINESS'S AND RESTAURANTS THAT LOCATE IN RENAISSANCE DISTRICT OF PADUCAH AND ESTABLISHING CRITERIA FOR SAME BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: I. PURPOSE. The City of Paducah and Paducah Renaissance Alliance, A National Mainstreet Program, are working together to achieve the goal of luring certain types of businesses to the Renaissance Area of Paducah. To achieve its objective the City will, on a case-by-case basis, provide economic incentives as an inducement for qualified economic development prospects. The City finds that such economic incentives fulfill a valid public purpose. Creating new employment opportunities for all citizens and expanding the tax base is a primary governmental priority. The City's objective is to enhance the quality of life for its citizens by seeking employers who will establish a new, qualified project within the City. To achieve its objective the City will, on a case-by-case basis, provide economic incentives as an inducement for qualified economic development projects in Renaissance Areas of Paducah. The City's policy and criteria for economic incentives are provided in this Municipal Order, which may be amended from time to time. Nothing in this Municipal Order will be construed to imply or promise that the City is under an obligation to any prospective employer or investor. II. ADMINISTRATION The City hereby directs that the Paducah Renaissance Alliance (Agency) be appointed as the administrative agency of the Artist Relocation Incentive Program. III. CRITERIA FOR ECONOMIC INCENTIVES. A project may be qualified and eligible for approval if the Board of Commissioners by finds that the following criteria are substantially met: 1. The project brings new income and investment into the City's Renaissance Zone. Priority will be given to projects proposed on properties within the Lowertown Arts District owned by the Agency and to other properties that are suitable for re -use such as properties formally owned by artists or properties that were otherwise developed under the auspice of the city of Paducah's Artist Relocation Program. 2. The Incentive Program shall emphasize "sustainability". Desirable applicants shall be identified as persons in the art field with an art business model whereby the artist has garnered adequate clientele and art sales to financially support his/her art careeribusiness while living in Paducah, Kentucky. Priority consideration will be granted to galleries and businesses that are "open to the public" and maintain a minimum number of open hours with artists that have achieved some notoriety in the art world. Consideration may be given to artists that commit to making substantial contribution to the community of Paducah with either workshops or other similar services that will be considered "highly desirable". Overall, anyone wanting consideration for the special incentive program must show a business plan that contributes to the creative culture of Paducah and its the LowerTown Arts District. 4. Unless otherwise indicate herein, the proposed project must have an owner, or management team, with five years experience and/or at least another successfully operating location. 5. The proposed project must create at least 1 permanent, full time equivalent jobs. 6. Proposed projects must entail an investment of at least $175,000 projected over 2 years, unless another date is mutually agreed to, in improvements, either to real estate or personal/business related property, inventories, and supplies. All to be located in the defined project area. 7. The project area covers at least 1,000 square feet of building area. 8. The project must meet all licensing, zoning and environmental laws and regulations. 9. The project must be consistent with the City's comprehensive plan. 10. The proposed investment must be in the Paducah Renaissance Zone and preferably in the LowerTown Arts District. III. TYPES OF BUSINESSES 1. Types of Businesses And Required Submissions a. Artists: Applying artists shall present their resume, portfolio for review, a business plan, and financial statements. The artist shall also describe any proposed community contribution as described in number 2, above. The contribution may include, but is not limited to, providing workshops or lectures, or donating art to the public. b. Gallery Owners: Proposals shall include business, marketing plans and financial statements. Owners must commit to be open a minimum of five (5) days per week, two (2) of which must be Saturday and Sunday. C. Restaurants: Proposals shall include business, marketing plans and financial statements. The restaurateur must have an owner, or management team, with seven years experience and/or at least one other successfully operating location. Owners must commit to be open a minimum of five (5) days per week, three (3) of which must be Friday, Saturday and Sunday. IV. TYPES OF INCENTIVES. The City of Paducah recognizes that unique aspects of each project requires flexibility in designing appropriate incentives. Therefore, the offering of an incentive, or combinations thereof, will be customized on a case-by-case basis. In some instances the input and assistance from other private and public partners may be needed. 1. Moving Assistance. Successful applicants can receive $2,500 for relocation expenses. 2. Start -Up Assistance. Successful applicants can be reimbursed up to $2,500 for expenses necessary to start their Paducah business. This includes, but is not limited to utility hook-ups, professional fees, and business start up costs, e.g. signage, business cards, stationary, web -site design, marketing costs, etc. 3. Applications must be a for profit business. 4. Unless otherwise indicate herein, the proposed project must have an owner, or management team, with five years experience and/or at least another successfully operating location. 5. The proposed project must create at least 1 permanent, full time equivalent jobs. 6. Proposed projects must entail an investment of at least $175,000 projected over 2 years, unless another date is mutually agreed to, in improvements, either to real estate or personal/business related property, inventories, and supplies. All to be located in the defined project area. 7. The project area covers at least 1,000 square feet of building area. 8. The project must meet all licensing, zoning and environmental laws and regulations. 9. The project must be consistent with the City's comprehensive plan. 10. The proposed investment must be in the Paducah Renaissance Zone and preferably in the LowerTown Arts District. III. TYPES OF BUSINESSES 1. Types of Businesses And Required Submissions a. Artists: Applying artists shall present their resume, portfolio for review, a business plan, and financial statements. The artist shall also describe any proposed community contribution as described in number 2, above. The contribution may include, but is not limited to, providing workshops or lectures, or donating art to the public. b. Gallery Owners: Proposals shall include business, marketing plans and financial statements. Owners must commit to be open a minimum of five (5) days per week, two (2) of which must be Saturday and Sunday. C. Restaurants: Proposals shall include business, marketing plans and financial statements. The restaurateur must have an owner, or management team, with seven years experience and/or at least one other successfully operating location. Owners must commit to be open a minimum of five (5) days per week, three (3) of which must be Friday, Saturday and Sunday. IV. TYPES OF INCENTIVES. The City of Paducah recognizes that unique aspects of each project requires flexibility in designing appropriate incentives. Therefore, the offering of an incentive, or combinations thereof, will be customized on a case-by-case basis. In some instances the input and assistance from other private and public partners may be needed. 1. Moving Assistance. Successful applicants can receive $2,500 for relocation expenses. 2. Start -Up Assistance. Successful applicants can be reimbursed up to $2,500 for expenses necessary to start their Paducah business. This includes, but is not limited to utility hook-ups, professional fees, and business start up costs, e.g. signage, business cards, stationary, web -site design, marketing costs, etc. 3. Make Ready. Assistance of up to $5,000 for structural rehabilitation costs including costs associated with the change of use requirements for a Certificate of Occupancy. 4. Acquisition Assistance. Assistance of up to $15,000 that can be used to offset the cost of property. 5. Restaurant Assistance. Assistance of up to $25,000 for development of a sit-down restaurant. IV. INCENTIVE AGREEMENT The City will execute an Incentive Agreement with each successful describing the incentives being provided by the City and the performance commitments of the applicant. V. RECAPTURE. 1. If the applicant fails to meet the required levels of investment or other criteria specified in the Incentive Agreement for the project by the end of the third year, unless another time has been mutually agreed to, then the City shall be fully reimbursed, plus interest calculated by using New York prime rates, for the value of economic incentives provided to the project. 2. If the Board of Commissioners of the City finds that the failure to attain or maintain the required levels of employment or investment, in spite of the applicant's good faith best efforts, were the result of unavoidable and unforeseen circumstances, including, but, not limited to an Act of God or national emergencies, then the Board, at its sole discretion, may: (a) seek a pro rata reimbursement, or (b) waive any reimbursement. V. EFFECTIVE DATE. This Municipal Order shall be effective upon the date of its adoption. ATTEST: ,Aln�w S )3Ay4 Tammara S. Brock, City Clerk Adopted by the Board of Commissioners, June 23, 2009 Recorded by Tammara S. Brock, City Clerk, June 23, 2009 \no\Incentives-Artist Relocation Program 6-09