Title
Economic Development Incentive Program Renewal and Expansion
Body
Summary and Background Information:
City Council desires more commercial development, especially new restaurants, hotels, family entertainment businesses, grocery stores and a hospital. Construction materials and labor costs have risen substantially over the last five years, making incentive programs that bring down market entry costs important to a developer and end-user. They look to the city for any financial assistance to help fill financial gaps that will move a project forward.
A business incentive is a strategic investment by a public agency that creates or enhances the feasibility of a private-sector project to help achieve a community’s economic development goals. Utilizing business incentive programs as an economic development tool to attract preferred development projects is a common practice.
Commercial Development Fee Waiver Program
City Council passed Resolution 2019-53 waiving certain city development fees for preferred types of new commercial development--restaurants, hotels and entertainment. Staff is actively marketing this program as a benefit to bringing these types of projects to Commerce City. There are a few projects considering a Commerce City location. However, the program is set to expire May 31, 2022. Staff is asking to extend this program for another five years, until May 31, 2027; and expand the project definitions to include grocery stores and hospitals. The proposed definition changes are in red below:
1. eating and drinking establishments, excluding restaurants with drive-thru/up service; restaurants, excluding fast food;
2. recreation or amusement facilities, excluding health clubs; and
3. visitor accommodations, lodging establishments or lodging, extended stay, excluding overnight campgrounds;
4. hospitals
5. grocery stores
Passing City Council Resolution 2022-47 on May 2, 2022 will extend and expand the Commercial Development Fee Waiver Pro...
Click here for full text