[Ord. No. 98-15, 7-15-1998]
The economic development element of the Town's comprehensive
plan indicated that Cumberland had lost 585 jobs in the late 80's.
While the rate of job loss has decreased from this period 10 years
ago, an aggressive approach to increasing employment within the Town
is necessary. It is apparent that programs need to be developed to
provide new and better job opportunities for Cumberland's residents.
[Ord. No. 98-15, 7-15-1998]
Policies from the comprehensive plan:
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Cumberland should present a positive business image which will
encourage the preservation and expansion of its economic base.
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To encourage the development and use of existing industrial
properties and mill buildings for industrial/commercial reuse.
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To promote the diversification of the types of industries located
in Town.
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Encourage economic development which expands the community tax
base while minimizing the demand for public services.
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To promote and assist in the growth of existing business when
expansion is deemed important to the economic development goals of
the community.
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Encourage economic growth which provides quality employment
opportunities for local labor supply.
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[Ord. No. 98-15, 7-15-1998]
The Town's Comprehensive Plan indicates that the above-stated
policies can be achieved by offering economic development incentives.
The job creation incentive program provides a valuable tool needed
in the promotion of the Town to new and existing businesses looking
to locate and expand in the Town of Cumberland. The added construction
of new buildings and/or the substantial renovation of existing industrial
facilities would result. Most importantly, new and expanded employment
opportunities to our residents will occur. Companies which qualify
for this program shall give all reasonable preference to residents
of the Town who may be equally qualified from the pool of available
candidates for employment applying for the employment opportunities
resulting from this program.
The job creation incentive program would not abate or reduce
any current tax assessment, but would provide a "phase-in schedule"
of new tax assessments that result from the new construction or the
substantial renovation of industrial or commercial facilities. The
proposed new tax assessment phase-in, while encouraging economic development
in the Town, would not compromise the long-term tax benefit of an
expanded tax base, because all tax assessments would be at 100% at
the end of the phase-in period.
The job creation incentive program is made up of three components.
These include: Business providing "basic jobs" (Program I) and businesses
providing "commercial and service industry jobs" (Program II), and
"tangible tax phase-in" (Program III).
[Ord. No. 98-15, 7-15-1998]
(1)
"Basic job" shall apply to employment generated in the industrial
and light industrial sectors to include manufacturing; research, development
and testing; wholesale distribution; auxiliary warehousing facilities
which provide direct support to the above named industrial sectors;
and corporate and regional offices which support the above industrial
sectors.
(2)
Commercial and service sector jobs" shall apply to employment generated
in the service industries (for those industries which provide service
to as opposed to the manufacture of products). These include retail
sales; distribution and warehousing; and professional, office and
commercial uses.
(3)
"Tangible tax phase in" shall apply to companies that meet the requirements
for either program I or II.
[Ord. No. 98-15, 7-15-1998]
This program is for those companies creating "basic jobs" to
residents of the Town and region. This program is comprised of two
sub-components: (A) new construction, and (B) renovation of existing
industrial space, which are detailed below.
(1)
Component A, new construction: Construction of a new facility or
the expansion of an existing facility that exceeds 20% of the current
floor area. The threshold for eligibility is a total construction
project exceeding $250,000 in new tax assessment.
(2)
Component B, renovation of existing industrial space: Includes major
renovation and retrofitting, and limited expansion not exceeding 20%
of the current floor area of existing mill structures. Expansion exceeding
20% of the current floor area places the project under component A.
The threshold for eligibility for this component is that the total
assessed value of the proposed improvements is increased by greater
than 25% of the current tax assessment.
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Both components of the program, as detailed below, provide for
a phase-in period (five to 10 years) of the new increased tax assessment.
At the end of the phase-in period, all assessments will be at 100%.
The program provides for additional assessment reduction due to the
level of job creation. In order to be eligible for the program, the
business must hire Cumberland residents for at least 25% of the new
jobs to be created. In addition, all basic percent phase-in figures
for the new tax assessment, as listed on the following charts, will
be further reduced by an additional 10% if the business elects to
hire Cumberland residents for at least 55% of the new jobs created.
Credit for jobs created must be for full-time jobs exceeding 30 hours
per week, and paying greater than 125% of the current federal minimum
hourly wage. A calculation of credit for permanent part-time jobs
created will be applied by combining the total hours for part-time
jobs and dividing by 30 in order to establish an equivalent number
of full-time jobs. Each full-time job created where the hourly wage
exceeds 200% of the current federal minimum hourly wage will be counted
as 1.5 jobs.
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Program I
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Component A — New Construction
(percentage of new assessment to be assessed during the 10-year
phase-in period)
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Yr. 1
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Yr. 2
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Yr. 3
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Yr. 4
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Yr. 5
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Yr. 6 — 10
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Basic % (phase-in of tax assessment resulting from new activity
only) 3-14 jobs
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70%
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80%
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85%
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90%
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100%
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100%
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Basic Program and if 15-74 new jobs created
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60%
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70%
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80%
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90%
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100%
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100%
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Basic Program and if 75 or more new jobs created
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50%
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60%
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70%
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85%
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100%
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100%
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Program I
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Component B — Substantial Renovation/Retrofitting
of Industrial Space
(percentage of the increased portion of the total assessment
that will be assessed during the 10-year phase-in period)
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Yr. 1
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Yr. 2
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Yr. 3
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Yr. 4
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Yr. 5
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Yr. 6 — 10
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Basic % (phase-in of tax assessment resulting from new activity
only) 3-14 jobs
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70%
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80%
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85%
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90%
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100%
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100%
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Basic Program and if 15-74 new jobs created
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60%
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70%
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80%
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90%
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100%
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100%
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Basic Program and if 75 or more new jobs created
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50%
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60%
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70%
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85%
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100%
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100%
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[Ord. No. 98-15, 7-15-1998]
This program is for those companies creating commercial and
service sector jobs. The number of jobs calculated will follow the
rules as established for Program I. The threshold for eligibility
is that the total new assessment exceeding $250,000.
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Program II
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The Construction of New or the Renovation of Existing
Buildings
(percentage of total assessment [new construction] or the increased
portion of the total assessment [renovation] that will be assessed
during the 10-year' phase-in period)
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Yr. 1
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Yr. 2
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Yr. 3
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Yr. 4
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Yr. 5
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Yr. 6 — 10
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Basic % (phase-in of tax assessment resulting from new activity
only) 3-14 jobs
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70%
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80%
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90%
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95%
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100%
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100%
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Basic Program and if 15-74 new jobs created
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65%
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75%
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85%
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95%
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100%
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100%
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Basic Program and if 75 or more new jobs created
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60%
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70%
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80%
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90%
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100%
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100%
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[Ord. No. 98-15, 7-15-1998]
This program will phase in the tangible tax on any business
asset that was acquired exclusively for the expansion of the business.
All previous assets shall be taxed as normal. The following schedule
will be used for the "new" assets.
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Yr. 1
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Yr. 2
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Yr. 3
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Yr. 4
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Yr. 5
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Yr. 6 — 10
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Tax assessment on new asset
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50%
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60%
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70%
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85%
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100%
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100%
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These percentages shall be in addition to the typical depreciation
table that the assessor's office uses.
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[Ord. No. 98-15, 7-15-1998]
(1)
The application for designation under the job creation incentive
program must be made at/or before application of a building permit.
(2)
A determination of eligibility will be made jointly by the tax assessor
and the Director of Planning and Community Development.
(3)
The appropriate phase-in schedule will be implemented at the completion
of construction and upon issuance of a certificate of occupancy.
(4)
The applicable first year category of the phase-in plan will be determined
by employment projections as submitted by the company and as approved
by the Director of Planning and Community Development.
(5)
The applicant at the end of the first full calendar year following
building completion shall submit a payroll for all new employees to
the Director of Planning and Community Development for verification
prior to December 15th of that year for final tax assessment made
as December 31st for that year. In addition, a payroll must also be
submitted for the pay period immediately preceding (for existing businesses
only) the initiation of expansion/construction, in order to determine
the net number of actual new jobs created. Final placement in the
appropriate phase-in category will result from the analysis as performed
by the tax assessor and the Director of Planning and Community Development.
(6)
If the qualifying employer discontinues operations, or vacates the
facility, the property being affected by the phase-in plan will immediately
be placed at the lowest phase-in category.
(7)
If the Town of Cumberland conducts and implements a Town-wide revaluation
during the assessment phase-in period, a corresponding percentage
reduction resulting from the applicable job creation incentive program
calculation, will be made to the new property valuation for the balance
of the original program phase-in period.
(8)
The qualifying companies must submit an annual declaration as prescribed
by law to the tax assessor. If no declaration is filed, said company
will lose their eligibility for program III.
(9)
The tax assessor and Director of Planning and Community Development
will submit an annual report to the Mayor and Town Council identifying
all businesses participating in the job creation incentive program.
(10)
All appeals to the administrative decisions as made by the economic
development planner and the tax assessor shall be taken to the Cumberland
tax Board of Assessment Review.
(11)
In order to be eligible for the program and continue eligibility
during the phase-in period, the applicant has to be current with all
municipal taxes. Failure to maintain all tax payments current will
result in removal from the program.
(12)
All participating employers are required to comply with all
federal and state regulations concerning job safety and affirmative
action requirements.
