Davenport NOW

Revitalized Neighborhoods& Sustainable Growth& Sustainable Growth

Davenport NOW – Why & What?Davenport NOW Why & What?

• Encourage New Investmentg– NOW Is A Great Time To Invest In Davenport

• 10 Year City Tax Rebate– 50% Rebate For New Investment– All Property Owners Eligible

• All Existing Property Owners• All New Commercial / Owner Occupied Residential• All New Commercial / Owner Occupied Residential

– Within City Service Limits– No New Rental or Conversion to Rental

– Rebate Every Year For 10 Years or Lump Sum

Davenport NOW – What It Is NotDavenport NOW What It Is Not

• Not Tax Increment Financing (TIF)g ( )– City DOES NOT Use TIF For Residential Projects– Residential TIFs Rarely (if ever) “Pay Their Way”

Do Use TIF For Commercial Taxbase / Job Growth– Do Use TIF For Commercial Taxbase / Job Growth

• Not Urban Revitalization Tax Exemption (URTE)p ( )– City Has Established URTE Areas– Use URTE For Blight Removal, Taxbase & Job Growth

• Both URTE & TIF Use Other Local Govt’s $

Davenport NOW – What It Is NotDavenport NOW What It Is Not

• Not Tax Increment Financing (TIF)g ( )– City DOES NOT Use TIF For Residential Projects– Residential TIFs Rarely (if ever) “Pay Their Own Way”

Do Use TIF For Commercial Taxbase / Job Growth– Do Use TIF For Commercial Taxbase / Job Growth

• Not Urban Revitalization Tax Exemption (URTE)p ( )– City Has Established URTE Areas– Use URTE For Blight Removal, Taxbase & Job Growth

• Both URTE & TIF Use Other Local Govt’s $

Davenport NOW – What It IsDavenport NOW What It Is• Rebate Of 50% City Property TaxesRebate Of 50% City Property Taxes

– For New, Qualifying Investment

• Secured With A Development Agreement– Simple, Standardized Agreement– Recorded With Property – Includes Protection For City That Taxes Are Paid

Ad i i t ti E B P ti i t– Administrative Expenses By Participant– Lump Sum Payments Discounted To Cover

City Interest ExpensesCity Interest Expenses

Best Tax / Service ValueBest Tax / Service Value

Davenport NOW – ExamplesDavenport NOW Examples• $25,000 Home Improvement$25,000 Home Improvement

– $726 up front or $940 over 10 years

• $250,000 New Home$7 257 up front or $9 397 over 10 years– $7,257 up front or $9,397 over 10 years

$2 00 000 N B i• $2,500,000 New Business– $163,058 up front or $229,957 over 10 years

City Services Area

Local Taxes Funding City ServicesLocal Taxes Funding City Services

Davenport NOW Pro & ConDavenport NOW Pro & Con• Pro • Con

– Encourages New Investment Within City Service Boundary

– Spur Job Retention / Growth

– Only Cuts Taxes For New Investment

– Improves Tax / Service Quality Equation For New InvestmentT t All N I t t

• New Tax Base Helps Keep Taxes Low & Stable

Req ires Contin ed– Treats All New Investment Equitably*

– Doesn’t Harm Other Local Govts (i e Schools)

– Requires Continued Productivity Improvements

• Productivity ImprovementsGovts (i.e. Schools)– Creates Another Reason For

Businesses & Homeowners To Consider Davenport

Productivity Improvements Are Necessary Regardless

p

* new rental investment not eligible

Davenport NOW Pro & ConDavenport NOW Pro & Con• Pro • Con

– Encourages New Investment Within City Service Boundary

– Spur Job Retention / Growth

– Only Cuts Taxes For New Investment

– Improves Tax / Service Quality Equation For New InvestmentT t All N I t t

• New Tax Base Helps Keep Taxes Low & Stable

Req ires Contin ed– Treats All New Investment Equitably*

– Doesn’t Harm Other Local Govts (i e Schools)

– Requires Continued Productivity Improvements

• Productivity ImprovementsGovts (i.e. Schools)– Creates Another Reason For

Businesses & Homeowners To Consider Davenport

Productivity Improvements Are Necessary Regardless

p

* new rental investment not eligible

Davenport NOW GuidelinesDavenport NOW Guidelines

1. 50% Rebate For 10 Years For New Investment Or FirstNew Investment Or First Occupancy (including new &

t & dvacant & now under construction))

Davenport NOW GuidelinesDavenport NOW Guidelines

2. All Existing & New Commercial & Residential Properties& Residential Properties Eligible With $5,000+ New V l N R t l P tiValue. New Rental Properties Not Eligible. g

Davenport NOW GuidelinesDavenport NOW Guidelines

3.3. All New Structures Must Be Within City Services B dBoundary.

Davenport NOW GuidelinesDavenport NOW Guidelines

4.4. May Not Be Combined With yAny Other City Property Tax S t d E DSupported Econ Dev ProgramProgram.

Davenport NOW GuidelinesDavenport NOW Guidelines

5.5. Participation Secured By A p yDevelopment Agreement As A d B CitApproved By City.

Davenport NOW GuidelinesDavenport NOW Guidelines

6.6. City Administrative yExpenses & Interest Costs T B D d t d FTo Be Deducted From RebateRebate.

Davenport NOW GuidelinesDavenport NOW Guidelines

7.7. Rules & Procedures As Required May Be I l t d B St ffImplemented By Staff.

Davenport NOW GuidelinesDavenport NOW Guidelines

8. Development Agreements

30Must Be Executed By June 30, 2012 Unless Extended By2012 Unless Extended By Further Council Resolution.

Davenport NOW

Revitalized Neighborhoods& Sustainable Growth& Sustainable Growth