§ 3.08.150. Tax increment financing (TIF) agreements—Requirement of collateral host community agreements

A.

No tax increment financing (TIF) agreement shall be approved by the city council unless the terms of the TIF agreement incorporates a collateral or side agreement called a host community agreement.

B.

Each and every host community agreement entered into by the city shall include, among other things, the following:

1.

The requirement that the party submit annual reports on job creation, job retention, and job investment to the state economic assistance coordinating council and the city, through the office of planning & development on or before January 30 of each year for the duration of the tax increment financing exemption. The office of planning & development will then be responsible to report to the city council on or before March 1 of each year. The reports shall include the number of new jobs created at the project, the number of jobs retained at the project, the number of people hired from within the economic target area (ETA) and the percentage of the tax increment financing for the annual time period ending December 31 and on a cumulative basis.

2.

Should the party fail to timely submit a required complete annual report, or should the annual report indicate the at the company failed to meet its annual scheduled target for existing jobs and new jobs, the exemption from real property taxation shall be zero percent for the subsequent fiscal year.

3.

Neither the party nor the property owner (if different) shall seek a real estate tax abatement for the project or any portion thereof, with respect to any fiscal year covered by the TIF agreement.

4.

Should the party be in default of either the host community agreement or the TIF agreement, or both, the city, acting by and through its city council, shall provide notice and an opportunity to both the party and the property owner, if different, to cure the default. Upon receiving written notice of such default from the city council, the party and the property owner, if different, shall have 30 days to commence to cure the, correct, or remedy such failure or default, and shall complete such cure within 90 days of the receipt of such written notice, or, with respect to such defaults which by their nature cannot be remedied within such 90-day period, within such additional period of time as mutually agreed upon by the city council and the party as reasonable, provided that the defaulting party exercise due diligence in the remedying of such default. The city's office of planning & development will work with the party to obtain and provide the information required in subsection 1 above and provide it to the city council. Should the party opt not to cure the default, the defaulting party agrees that it will not oppose the city's request to decertify the project based upon such default. After notice, and upon failure to cure the default as outlined herein, the city council may, at its sole discretion, notify the economic assistance coordinating council of the default and take action to request decertification of the project by the economic assistance coordinating council. The city council will notify applicant/recipient of default and cure to testify within 90 days. The onus shall be on the office of planning & development to provide city council with status of compliance of valid TIF agreements to include schedule of duration remaining and percentage for each year with job creation compliance provided by the commonwealth.

5.

Application of any tax exemptions in the TIF agreement shall be contingent upon the party taking all actions as are required in both the TIF agreement and the host community agreement, respectively, prior to the expiration of any notice and cure periods.

6.

Any default by the party that continues beyond the expiration of any applicable notice and cure period under the term of the TIF agreement shall be deemed to be a default under the host community agreement. Similarly, any default by the party that continues beyond the expiration of any applicable notice and cure period under the term of the host community agreement shall be deemed to be a default under the TIF agreement.

7.

Upon default, and subsequent decertification of the project and TIF agreement, any tax exemptions provided by either the TIF agreement and/or the host community agreement shall immediately become due and payable.

(Doc. 92/2015, appr. 11-15-16/eff. 12-16-16)