Retention and Expansion and Expansion Grant supports the following CIP objectives:
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Encourage investment that results in the productive use of lands and/or buildings for the purposes of establishing or maintaining a business enterprise, or the expansion of existing businesses to realize more effective use of the land’s potential;
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Encourage capital investments that create new and/or maintain existing permanent jobs, as well as short-term construction jobs that contribute to the reduction of the unemployment rate;
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Provide financial incentive programs that are attractive to potential investors and corporate decision-makers, but are balanced with expectations of City taxpayers and the City’s ability to fund the financial incentive programs;
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Facilitate the development of the City’s vacant employment lands and other areas that have the potential to be new employment areas;
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Encourage the redevelopment of the City’s historic industrial sites resulting in the continued or renewed productivity of these sites;
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Attract investment based on the community’s strengths and competitive advantages; and
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Support investment and development that results in an increase in property assessment and grows the non-residential municipal tax base over the long-term.
RISK ANALYSIS:
There is little risk associated with the approval of the CIP application. Staff resources are required for the upfront administration of the grant program and finalization of the legal agreement. Limited staff resources related to on-going monitoring of the employment use and issuance of annual grants will also be required over the next ten years. Should Council refuse the CIP request Brave Controls Solutions may decide to invest outside of Windsor.
FINANCIAL MATTERS:
Business Retention and Expansion Grant Program
The tax increment portion of the Business Retention and Expansion Grant is not calculated or paid out until all eligible work is completed and the property is reassessed by MPAC. Reassessment of the property must result in an increase in assessment value. The grant amount is recalculated annually based on the actual assessed property value, tax class, and municipal tax rate.