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<br />M Martinsville <br /> <br />City Council <br />Agenda Summary <br /> <br />Meeting Date: <br />Item No: <br />Department: <br />Issue: <br /> <br />January 9, 2007 <br />5. <br /> <br />Community Development <br /> <br />Discussion of advertising a public hearing to amend our <br />enterprise zone incentives. <br /> <br />Summary: <br />Currently the incentive package provided to businesses located within the Enterprise Zone <br />includes a Landfill Tipping Fee Refund. Now that the landfill is closed and the City no <br />longer collects tipping fees, it is necessary to amend the Enterprise Zone incentive package <br />to reflect this change. <br /> <br />When amending Enterprise Zone incentives, the State requires that the new incentive be <br />something or equal or greater value to the businesses located within the zone. Mter much <br />discussion, the City is proposing to replace the Landfill Tipping Fee Refund with a Water <br />Connection Fee Waiver for domestic and process water service. <br /> <br />From preliminary budget figures, this incentive would be of equal value to the landfill <br />tipping fee refund. Landfill tipping fees were $45.20/ton, so the total value would vary <br />based on the amount/weight of dernolition materials. As every business did not have <br />landfill tipping fees, the incentive was not applicable to all businesses. Over the life of the <br />zone, the landfill tipping fee refund has been used 7 times for a total value of <br />approximately $145,000. This amount is skewed however, by the presence of one large <br />refund that was given in 2001 for $102,235.60. This property, the largest property in the <br />zone, undertook a major renovation/ demolition project that year and it is highly unlikely <br />there would be another project of similar size and scale. <br /> <br />The Water Connection Waiver would however apply to all new businesses as well as <br />expanding businesses with new water connection needs. The value of this incentive will <br />also vary depending on the size of the connection, but as an example a I" water <br />connection service fee waiver would be worth $775. For connections exceeding I", the fee <br />would be the total cost of equipment, labor and materials plus 35% of the actual labor <br />costs. As an example, a 2" connection would be worth approximately $2000. <br /> <br />It is the hope of the City that this incentive will encourage more businesses to locate within <br />the Enterprise Zone by helping to reduce initial start-up costs, which can sometimes be a <br />deterrent to srnall businesses and entrepreneurs, thereby creating additional jobs for our <br />residents and increasing the tax base in the City of Martinsville. <br /> <br />Attachments: <br /> <br />Resolution <br /> <br />Recommendations: <br /> <br />Advertise for public hearing and place on next agenda <br />