Resolution No. 4 for 2017 - 2024-17 - Creating a "Job Credit" Program

Request for consideration of creating a "Job Credit" program to be utilized by the City of Sweet Home in an effort to encourage new business to locate within the city limits and/or to help existing businesses expand so as to increase employment opportunities and improve the economic climate within Sweet Home. 

WHEREAS, City Council has identified and adopted goals for 2016- 2017 of which a primary focus is to encourage and promote a healthy economy; and, 

WHEREAS, a specific strategy of accomplishing this task is to partner with other agencies and groups to further the redevelopment of former mill properties; and, 

WHEREAS, there already exists an "Enterprise Zone" mechanism that can be utilized by the City when considering local support to qualified businesses upon request; and, 

WHEREAS, the local community can expect an increase of full-time, permanent employment of one new job or 10% growth; generally have no concurrent job losses; maintain minimum employment level during the exemption period; and local job training programs. 

Now therefore, it is established that a "Job Credit" program shall be created according to the following criteria; shall be subject to annual budget approval allocations by the City of Sweet Home; and will remain in effect upon passage by City Council for no more than thirty-six (36) months: 

• "Qualified Business" means a business firm which has been pre-certified by the State of Oregon enterprise zone board of directors or their designees and that will reside within the corporate limits of Sweet Home as identified within the Sweet Home Enterprise Zone;
• Whenever a qualified business has been pre-certified by the enterprise zone board of directors or their designees, the business becomes eligible for city job credits. The community development department and/or Planning office will issue a certificate of eligibility to the qualified business based on the pre-certification;
• For each new job stated on the certificate of eligibility, the business will receive a credit of $1,500 usable over a five-year period (maximum $15,000) against fees otherwise due to the city;
• For each new job stated on the certificate with an average annual wage of at least $31,000, the business will receive an additional credit of $1,500 usable over the same five-year period against fees otherwise due the city (maximum $15,000);
• All business license and land development fees may be offset by the accrued job credits. Fees that may not be offset are State of Oregon surcharges on various building permits, utility user fees and/or system development charges (SDC's), and improvement assessments. Requirements for bonds, and the cost thereof, are not affected or waived by this Resolution;
• Qualified businesses which have added to their employment rolls may prove such increase by providing copies of their employment division returns, or an equivalent, for the last four calendar quarters. Qualified eligible businesses must provide proof of employment level to the city on or about the anniversary of its eligibility determination, and on each anniversary thereafter for the five-year eligibility period;
• If a qualified business ceases to do business in Sweet Home or otherwise loses its qualification during the five-year period, such business is no longer eligible for job credits. To the extent eligible businesses show a decline in employment over the five-­year period, the job credits cease for each such position lost. To the extent fees offset exceeded the proportionate job credits earned over the years or years of eligibility, the business or its guarantor's must reimburse the city for the difference.
• The City will provide a form of agreement for the parties to execute when obtaining a "Job Credit".

Pass by the Council and approved by the Mayor this 28th day of February 2017