Resolution 2005-82 STATE OF ILLINOIS )
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COUNTY OF KENDALL )
RESOLUTION NO. 2005- �a
RESOLUTION
APPROVING A POLICY SETTING GUIDELINES FOR
ECONOMIC INCENTIVES FOR COMMERCIAL/INDUSTRIAL BUSINESS
WHEREAS, the City Council of the United City of Yorkville has reviewed and
considered establishing guidelines to assist in evaluating requests from
owners /developers of commercial and industrial business seeking economic incentives
from the City; and
WHEREAS, the attached Exhibit "A" sets forth said guidelines for
Commercial/Retail developments (Section 1) and for
Manufacturing/Industrial/Distribution Developments (Section 2); and
WHEREAS, said guidelines as set forth in Exhibit "A" are advisory only and do not
place any obligation upon the City to extend economic incentives.
NOW THEREFORE, upon Motion duly made, seconded and approved by the
majority of those members of the City Council voting, that the guidelines as set forth in
Exhibit "A" are hereby approved as advisory guidelines to assist in the evaluation of
requests for economic incentives.
WANDA OHARE JOSEPH BESCO
VALERIE BURD PAUL JAMES \
DEAN WOLFER MARTY MUNNS
ROSE SPEARS JASON LESLIE
Approved by me, as Mayor of the United City of Yorkville, Kendall County,
Illinois, this _ Day of� p , A.D. 2005.
! � 6
MAYOR
Passed by the City Council of the United City of Yorkville, Kendall County,
Illinois this day o� , A.D. 2005.
ATTEST:
CITY CLERK
Prepared by:
John Justin Wyeth
City Attorney
United City of Yorkville
800 Game Farm Road
Yorkville, IL 60560
I
EST 1800
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ECONOMIC INCENTIVES POLICY
Approved by City Council: 12/13/2005
Effective: 12/13/2005
SECTION 1: Commercial / Retail
The United City of Yorkville has adopted this Business Incentive Policy to achieve the
goal by satisfying the objectives as outlined within the Comprehensive Plan and Comprehensive
Land Use Plan Update — Southern Study Area:
COMPREHENSIVE PLAN
GOAL
"A market sensitive, balanced, diverse commercial /service base which can expand to
enhance the economic vitality and employment base of Yorkville, and broaden the range
of services offered to residents
OBJECTIVES
1. Establish and coordinate diversity in market sensitive, - commercial development
ranging from 1) specialized commercial uses in the downtown, to 2) strategically
located convenience centers, and to 3) sub regional unified centers.
2. Plan commercial/office development adjacent to primary, secondary, or collector
thoroughfares to maximize accessibility and minimize disturbance of residential
areas.
3. Provide areas for commercial/office development which are adjacent to compatible
existing and future land uses.
4. Establish commercial development in areas that minimize negative impacts upon
the existing roadway system
5. Coordinate commercial/office development with the expansion of the roadway and
utility system.
6. Encourage the development of commercial/office activity within unified centers to
avoid strip development.
7. Formulate design and development standards for commercial and office facilities to
promote attractive development.
COMPREHENSIVE LAND USE PLAN UPDATE — SOUTHERN STUDY AREA
GOAL 1
"Encourage the development of non - residential "nodes ", which would result in
concentrated areas of retail and commercial uses instead of strip development; consider
allowing small -scale retail nodes in close proximity to residential development to reduce
required driving for everyday services."
GOAL 2
"Ensure that the Comprehensive Land Use Plan provides for an adequate amount of non-
residential land use that is diversified so that future economic development opportunities
provide the City with a positive fiscal outlook."
OBJECTIVE
"Explore economic development opportunities related to the proposed Prairie Parkway,
taking advantage of the limited access points to the proposed thoroughfare."
GOAL 3
"Promote and encourage the creation and maintenance of local jobs."
OBJECTIVE
3.1 Utilize the Yorkville Economic Development Corporation (YEDC) to promote
Yorkville as an attractive and desirable place for businesses to locate.
3.2 Utilize the Economic Development Corporation and Chamber of Commerce to
work with the business community to maintain a healthy environment for
businesses to remain in Yorkville.
All requests for business incentives shall be evaluated by how many and how fully the
j project meets these stated goals and objectives.
Consideration for Incentives
Sales tax revenues are a primary source of funding for the general municipal operations
of the United City of Yorkville. As such, developments that have the greatest potential in
producing these types of revenues shall be given priority when evaluating multiple funding
requests.
Uses of Funds That Mav Be Considered
1. Land acquisition
2. Demolition
3. Street (re)construction and related improvements (e.g., signalization, turning lanes, etc.)
4. Building Rehabilitation
5. Environmental Remediation Activities
6. Storm Sewer, Sanitary Service & Water System Improvements
7. Architectural/Engineering Services
8. Relocation Expenses of Expanding Businesses
Incentive Parameters
1. Assistance shall not exceed 20% of total project hard costs
2. Specificed duration for payback, either amount of time or money, must be in the
agreement
3. Public improvements completed on grant basis
4. Private improvements completed on a sales tax rebate and/or loan guaranty basis.
All monies extended by the City shall be subject to reimbursement by the petitioner to the
City should the business fail to meet its agreed upon goals. No single development shall be
automatically approved for incentives. The terms and conditions of such repayment shall be
negotiated on a case -by -case basis and incorporated into the final development agreement.
Proiect Evaluation Criteria
The City shall consider all aspects of a proposed project, including its financial
feasibility, the type of project being proposed, its location within the community, and the amount
of estimated tax revenues. For retail /commercial projects, the following shall be considered as
priorities of the City and as such, projects meeting one or more of the following criteria shall be
given priority when considering multiple funding requests:
Sources for Funding Incentives:
Mav be from one or more of the following sources:
1. Sales tax
2. Real Estate Tax
3. Utilitv Tax
Prioritv businesses
• Appliances and electronics
• General merchandise
• Furniture
i Motorized vehicle dealerships (car, truck, motorcycle, boat, watercraft, etc.)
• Department store
• Sporting goods
Priority locations, as outlined in the Comprehensive Plan as "commercial nodes ",
1. Route 47 commercial nodes
2. Downtown Area
SECTION 2: ManufacturinLy / Industrial /
Distribution Developments
To protect, strengthen and expand the City's local economic base, the City relies upon the
creation and/or retention of high quality, permanent fulltime jobs for its residents. As such,
developments that have the greatest potential in producing these types of jobs shall be given
priority when evaluating multiple funding requests.
It is noted that the City's adopted Zoning Ordinance shall determine if a business is
considered to be a commercial, service or manufacturing type use.
Pro iect Evaluation Criteria
The City shall consider all aspects of a proposed project, including its financial
feasibility, the type of project being proposed, its location within the community, the amount of
estimated tax revenues, and the number and type of jobs being created or retained. For
commercial/service /industrial projects, the following shall be considered as priorities of the City
and as such, projects meeting one or more of the following criteria shall be given priority when
considering multiple funding requests:
Job Creation and Retention
A minimum of five (5) fulltime equivalent jobs must be created and/or retained within 24
months of project completion to be considered eligible for funding. Further, these jobs must be
permanent and fulltime in nature (e.g., at least 1950 hours annually), and fall into one of the
following categories:
Job Type Minimum Hourly Wage Maximum Credit Per Job
Unskilled $10.00 $2,500 1
Semi - Skilled $15.00 $3,000
Skilled $20.00 $4,000
Professional Over $20.00 $5,000 1
Priority Locations
• Yorkville Business Center (near F.E. Wheaton complex)
• Fox industrial park
• Lincoln Prairie industrial park
Incentive Parameters
1. Assistance shall not exceed 20% of total project hard costs
2. Specificed duration for payback, either amount of time or money, must be in the
agreement
3. Public improvements completed on a grant basis
4. Private improvements completed on a utility and city property tax rebate and/or loan
guaranty basis
All monies extended by the City shall be subject to reimbursement by the developer to
the City should the business fail to meet its agreed upon goals. The terms and conditions of such
repayment shall be negotiated on a case -by -case basis and incorporated into the final
development agreement.
Eligible Activities:
1. Land acquisition
2. Demolition
3. Street (re)construction and related improvements (e.g., signalization, turning lanes, etc.)
4. Building rehabilitation
5. Environmental remediation activities
6. Storm sewer, sanitary service and water system improvements
7. Architectural /engineering services
8. Relocation expenses