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Home My WebLink AboutMO # 1315MUNICIPAL ORDER NO. 1315 A MUNICIPAL ORDER CREATING THE "RETAIL FENCE INCENTIVE PROGRAM" FOR NEW BUSINESSES THAT LOCATE IN DOWNTOWN PADUCAH AND ESTABLISING CRITERIA FOR SAME BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. PURPOSE. The City of Paducah and Paducah Mainstreet are working together to achieve the goal of luring new businesses to downtown Paducah. 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 downtown Paducah. The City's policy and criteria for economic incentives are provided in the 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. SECTION 2. ADMINISTRATION. The City hereby directs that Main Street Inc. be appointed as the administrative agency of the Retail Fence program. SECTION 3. CRITERIA FOR ECONOMIC INCENTIVES. A project may be qualified and eligible for approval if the administrative agency finds that the following criteria are substantially met: 1. The project brings new income and investment into the City's Central Business District. It will key on un -served or under -served uses. Larger scale retail, professional office, residential, and restaurants are all eligible if they meet the minimum standards and meet an un -served, or underserved area. 2. Must be a for profit business. 3. The proposed project must have an owner or management team with 10 years experience and/or at least two other successfully operating business locations. 4. The proposed project must create at least 3 permanent, full time equivalent jobs. 5. An investment of at least $500,000 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. 6. The project area covers at least 3,000 square feet of building area. 7. The project must meet all licensing, zoning and environmental laws and regulations. 8. The project must be consistent with the City's comprehensive plan. 9. The proposed investment must be in the defined project area. This includes all the properties between (and those facing) Jefferson and Kentucky; and between 7`h Street and the River. SECTION 4. 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. SEE ATTACHED SECTION 5. RECAPTURE. 1. If the employer fails to either meet the required levels of employment or investment for the project by the end of the second 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 employers good faith best efforts, were the result of unavoidable and unforeseen circumstances, including, but, not limited to an 88 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. SECTION 6. EFFECTIVE DATE. This Municipal Order shall be effective upon the date of its adoption. ATTEST: Tammara S. Brock, City Clerk Adopted by the Board of Commissioners, October 23, 2007 Recorded by Tammara S. Brock, City Clerk, October 23, 2007 \mo\incentives-retail fence RETAIL FENCE MAINSTREET I II III IV V Applicability Standard Facade Loans Forgivable Loan Direct Marketing Property Acquisition/Rehab Proposed Business Inducement Inducement Inducement Inducement "Leakage" SIC $100,000 Revolving Pool $100,000 Pool Funds $20,000 Pool Funds Min Amount $100,000 Max Amount $250,000 Mixed Uses OK if 50% of project is Leakage SIC Terms: Terms: Terms: Term: For Profit $20,000 Max Loan Up to $50,000 Loan Up to $5,000 in joint Time Reducing Mortgage 2% Interest Scaled w/investment Marketing assistance (10% per year) Experienced Management = 7 Year Term $1,000's Bankable business plan, 10+ $500-$600 = $20,000 Right of First Refusal on Real years experience and/or 2 or $600-$700 = $30,000 Property more other business locations $700-$800 = $40,000 $800+ _ $50,000 Max Total Project $500,000 Time Reducing Mortgage (exclusive of inducements) (20% per year) Conditions: Min. 3 FTE's (include owner) Conditions: Conditions: Conditions: Design Review Sunday Opening (4hr) Minimum Size 3,000 sf Sunday Opening (4 hr) 6/7 Days Open 6/7 Days Open Member of MainStreet for term Member of MainStreet for Member of MainStreet for Member of MainStreet for of loan term of loan term of loan term of loan Maximum Incentive Ratio (private to public) 4:1 For every $5 dollars spent on project, no more than $1 dollar can be inducements Cost: Cost: Cost: Cost: Cost: By Owner $45,000 by Mainstreet $100,000 by City $20,000 By City $55,000 by City FY08 Funded by FY08 Funded by FY08 Appropriation Appropriation Appropriation M.