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I I I Economic Development Incentives Policy February, 2005 Page 5 Utility Infrastructure a. Standard utility incentive. The municipally-owned power, water, and wastewater departments have adopted rate policies that permit reduced rates for customer rate classifications or categories based upon usage. Agreements may be available to reduce utility rates based upon adopted usage categories. b Standard utility incentive. The City partners with developers on infrastructure improvements. The City's development policy commits city funds to provide for the cost of over-sizing infrastructure when deemed necessary for future development. This policy eliminates the need for developers to absorb the total cost of over-sizing "up front" and then waiting to recover a portion of the costs when future development ties into the improvements. c. Special utility incentive The City has the capacity and flexibility to offer qualified companies infrastructure improvements and extensions at reduced cost. Such incentives may include improvements to curbs and gutters, street paving, water and wastewater, electrical supply, and public lighting Waiver or Modification of Development Regulations/Standards A development incentive agreement may include provisions for waiving or modifying City development regulations or standards. To be eligible for such a waiver or modification, a development must: 1 Be a unique and regional economic draw with projections to support major direct new tax benefits for the City that far exceed those of the typical development or business, or 2. Incorporate design or construction features or characteristics that exceed City regulations or standards in other respects, or 3 Make a unique or unequaled contribution to development or redevelopment efforts in the City of San Marcos, due to its magnitude, uniqueness to the community, or aesthetic quality ProDerty Tax Abatement Incentives The City of San Marcos offers property tax abatement for new or expanded commercial or industrial construction, as well as business personal property taxes associated with real property City abatements are granted through a contract approved by the San Marcos City Council. After city qualification, the City will assist applicants in seeking abatement agreements with the other taxing authorities. The following criteria must be met for an applicant to be considered eligible to contract for tax abatement andlor any other economic development incentive. a. The proposed development and/or redevelopment must create and maintain or retain at least 5 jobs, and/or b An investment by the applicant of at least $50,000 00 in property improvements is required; and, c. The project must conform to the requirements of the City's Master Plan, zoning ordinance, building codes and other applicable City ordinances (except to the extent waived or modified in a development incentive agreement in accordance with this Policy) Sales Tax Rebate Incentives Eligibility Criteria In addition to the evaluation criteria for incentives listed above, a project for which sales tax rebates are requested must meet the following minimum requirements. 1 The project must either' a. Result in a minimum increased taxable value for the City of $25,000,000 in real and business personal property (excluding inventory and supplies), or