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 A –Policy Process and Scoring for Chapter 312 Agreements, Chapter 380 Agreements, Economic Development Supplemental Fund, and Fee Waivers Applications for Chapter 312 Agreements, Chapter 380 Agreements, Economic Development Supplemental Fund, and Fee Waiver incentives must be submitted to the Greater San Marcos Partnership on behalf of the City of San Marcos. Additional information may be requested for a holistic view of the proposed project. The Greater San Marcos Partnership shall run an initial analysis and economic impact report for the projects, bringing City of San Marcos staff into early discussions. Themaximum 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. Points are assigned to each of the major criteria described below. This scoring system is used to assess whether incentives will be offered to a firm and based on the final score, the potential incentive amount for the firm. Firms with a score between 81 and 100 points may qualify for an incentive amount up to 80% of the net present value of the estimated total tax liability, or up to $200 per job per year, over 10 years. Firms with a score between 71 and 80 points may qualify for an incentive amount up to 70% of the net present value of the estimated total tax liability, or up to $150 per job per year, over 10 years. Firms with a score between 60 and 70 points may qualify for an incentive amount up to 60% of the net present value of the estimated total tax liability for up to over 10 years. Firms that score below 60 points do not qualify for incentives. Firms demonstrating an extraordinary economic impact may qualify for an incentive amount up to 100% of the net present value of the estimated total tax liability or an additional $50 per job per year over 10 years. 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. City of San Marcos staff shall score the project according to the below scoring matrix. GSMP Staff will assist City staff with collecting data and providing additional analyses. 4. Applications scoring 60 or more points will be presented to the Economic Development San Marcos (EDSM) Board to make a recommendation of approval or disapproval to the City Council. 5. 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. Requests that are only for fee waivers and less than $50,000 may be considered by the City Manager for administrative approval. Eligibility does not guarantee the offer of an incentive. All applications are subject to final approval by the City of San Marcos and require an executed performance agreement that specifies the grant’s terms, conditions, and compliance requirements. 7