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HomeMy WebLinkAbout85-11-2763461 ORDINANCE NO. 85-11-2763 AN ORDINANCE CREATING AN OPPORTUNITY ZONE WITHIN THE CITY OF PADUCAH, DEFINING THE BOUNDARIES OF SAID ZONE, AND SETTING FORTH THE REQUIREMENTS AND BENEFITS OF SAID ZONE WHEREAS, it has become increasingly apparent in the last few years that the City of Paducah is experiencing an economic decline and the accompanying physical deterioration in certain areas of the city; and WHEREAS, the Mayor and City Commission are desirous of revitalizing these areas with whatever economic tools are available; and WHEREAS, the philosophy of the current Federal Administration regarding redevelopment is that government cannot effectively redevelop blighted areas, but should concentrate on stimulating private development dollars; and WHEREAS, this philosophy is borne out by the experiences of many of our cities during the past two decades; and WHEREAS, the Mayor and Board of Commissioners are desirous of initiating a program of local action. BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY AS FOLLOWS: SECTION 1. That the following boundaries, requirements and benefits be established as follows: (a) Geographic Boundaries - the City Commission shall adopt by Municipal Order a detailed description of the geographic area that shall be the Opportunity Zone. Attached to the description shall be a Findings of Fact prepared by the Director of Community Development and Planning which outlines the need for the application of the program to the area under consideration. The Findings of Fact should detail (a) the deterioration of the area in terms of job losses and reduction in business volume; (b) physical characteristics illustrating need for redevelopment; and (c) lessening of infrastructure use. An area must suffer from these conditions before it can be declared eligible. (b) Required Investment Thresholds for Program Eligibility - Any business enterprise interested in applying for the program inducements must certify that the endeavor meets the following criteria in an application submitted to the City Manager. Completed applications shall be reviewed by the City Commission, who shall approve or disapprove each applicant by Municipal Order. The thresholds that must be obtained to be eligible are: (1) The business must certify an intent, or show proof of, an investment of $50,000 in the purchase of real property in the zone, or a combination of $100,000 real and personal property, or a five year lease with a personal property investment of $50,000. (2) An employment base of at least five full time employees or an equivalent in part-time work force. (3) Any business seeking to locate in the zone must be either a new enterprise or a legitimate expansion of an existing business. It cannot be a relocation of an existing business. (4) The City Commission may reduce or waive in their entirety any or all of the thresholds established in (1), (2) and (3) above upon a showing of appropriate need by an applicant. (c) Inducement Incentives - Qualified enterprises deemed eligible by the Commission shall receive the following tax or fee relief: 462 (1) A five (5) year moratorium on investment in new personal property and a fifty percent (50%) reduction in the tax assessed value of real estate used in direct operation of the qualified enterprise's business within the Opportunity Zone. (2) A five year moratorium on business license fees. (3) A reduction of one-half (1/2) for refuse fees for a period of five (5) years. (4) A five (5) year moratorium on building and electrical plan review and building permit fees. (5) Issue at no cost for a period of two (2) years special auto stickers for employees of the qualified enterprise who reside outside the city. (6) Reduce the employee earnings tax by 50% for all employees of the qualified enterprise for a period of two (2) years. (7) All of the tax relief referred to in paragraphs (1) through (6) above shall start upon the opening of the business of the qualified enterprise in the Opportunity Zone. SECTION 2. This ordinance shall be read on two separate days and will become effective upon publication of title and a certified summary thereof. JOE VITERISI Mayor Introduced by the Board of Commissioners November 12, 1985 Adopted by the Board of Commissioners November 26, 1985 Recorded by Lenita Smith, City Clerk, November 26, 1985 Published by The Paducah Sun December 2, 1985.