Res 2022-094R/Amending the City's Economoc Development Policy among other things to expand available incentive category for new and existing business reallocate scoring matrix points and update definitions

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Exhibit H –Speculative Buildings Description Incentives may be considered for high-quality, speculative new-build construction when less than 50% of the space is pre-leased or owner-occupied. Incentives shall be based on a rebate of property tax and the percentage of property tax rebate decreases as occupancy of the building increases. Except in special cases, the maximum term for consideration is three years. Objective The City of San Marcos desires to have an attractive and readily available inventory of buildings for prospective businesses. This incentive considers support for Class A developments that fill a gap in the San Marcos market. Eligibility Tobe eligible for consideration, the project must be located within the corporate city limits of the City of San Marcos or is willing and able to annex into the city limits (in such case, incentives shall be contingent on approved annexation and zoning.) Evaluation Criteria The industry proposed for the speculative space and the type of speculative space being built should fill a gap in the San Marcos market Additional environmental and sustainability measures may be required o Examples: Energy-efficient lighting, formatting roof for solar panel installation, additional insulating materials, rainwater collection for toilets or landscaping, etc. The maximum percentage of a rebate for any single year is 100%. Tax-based incentives are preferred to be on the Maintenance & Operations (M&O) portion of the tax rate, but the total tax incentive will be considered at the discretion of the City Council. Tax-based incentives will be for the increase in property value over the base value before improvements. Process 1. A business owner must complete an application and submit it to the Greater San Marcos Partnership. 2. The Greater San Marcos Partnership shall run an initial analysis and economic impact report for the project, bringing City of San Marcos staff into early discussions. 3. Applications will be presented to the Economic Development San Marcos (EDSM) Board to make a recommendation of approval or disapproval to the City Council. 4. The project will be considered by the San Marcos City Council for approval or disapproval. The San Marcos City Council shall have final authority to approve or deny applications under this incentive. 18