[HISTORY: Adopted by the City Council of the City of Las
Vegas 1-9-2002 by Ord. No. 01-19; amended in its entirety 7-1-2009 by Ord. No.
09-13. Subsequent amendments noted where applicable.]
This chapter may be cited as the "Economic Development Plan
Ordinance."
The Economic Development Plan Ordinance is enacted pursuant
to the statutory authority conferred upon municipalities to allow
public support of economic development (NMSA 1978, §§ 5-10-1
through 5-10-13). This chapter is adopted as part of the City's
economic development plan.
A.
The purpose of the Economic Development Plan/Ordinance is to allow
public support of economic projects to foster, promote and enhance
local economic development efforts while continuing to protect against
the unauthorized use of public money and other public resources. Further,
the purpose of this chapter is to allow the City to enter into one
or more joint powers agreements with other local governments to plan
and support regional economic development projects.
B.
Local Economic Development Act. Local governments are allowed to
provide direct or indirect assistance to qualifying businesses for
furthering or implementing economic development plans and projects,
furthermore local and regional governments have the authority to contribute
assets to development projects; however, the imposition of a tax must
be approved by the voters in referendum.
C.
Eligible
uses. Municipalities may impose municipal infrastructure gross receipts
tax and dedicate the revenue for economic development projects. A
total of 0.25% tax (in four increment of 0.0625%) may be imposed.
As used in this chapter, the following terms shall have the
meanings indicated:
A facility that is owned by the state, a county, a municipality
or a qualifying entity that serves the public through preserving,
educating and promoting the arts and culture of a particular locale,
including theaters, museums, libraries, galleries, cultural compounds,
educational organizations, performing arts venues and organizations,
fine arts organizations, studios and media laboratories and live-work
housing facilities.
The provision of direct or indirect assistance to a qualifying
entity by a local or regional government and includes the purchase,
lease, grant, construction, reconstruction, improvement or other acquisition
or conveyance of land, buildings or other infrastructure; public works
improvements essential to the location or expansion of a qualifying
entity; payments for professional services contracts necessary for
local or regional governments to implement a plan or project; the
provision of direct loans or grants for land, buildings or infrastructure;
technical assistance to cultural facilities; loan guarantees securing
the cost of land, buildings or infrastructure in an amount not to
exceed the revenue that may be derived from the municipal infrastructure
gross receipts tax or the county infrastructure gross receipts tax;
grants for public works infrastructure improvements essential to the
location or expansion of a qualifying entity; grants or subsidies
to cultural facilities; purchase of land for a publicly held industrial
park or a publicly owned cultural facility; and the construction of
a building for use by a qualifying entity.
The City Council of Las Vegas.
An agreement between a qualifying entity and the City whereby
the City provides assistance to an economic development project in
exchange for the benefits received as set forth in this section.
An existing or proposed corporation, limited liability company,
partnership, joint venture, syndicate, association or other person
that is one or combination of two or more of the following:
An industry for manufacturing, processing, or assembling of
any agricultural or manufactured products;
A commercial enterprise for storing, warehousing, distributing, or selling products of agriculture, mining or industry, but other than provided in Subsection D of this definition, not including any enterprise for sale of goods or commodities at retail or for the distribution to the public of electricity, gas, water, or telephone or other services commonly classified as public utilities;
A business in which all or part of the activities of the business involves the supplying of services to the general public or to government agencies or to a specific industry or customer, but, other than provided in Subsection D of this definition, not including business primarily engaged in the sale of goods or commodities at retail;
A telecommunications sales enterprise that makes the majority
of its sales to persons outside of New Mexico.
A.
The City Manager after approval of the governing body may assist
economic development projects in any legally permissible manner, including
but not limited to provisions of land, buildings and infrastructure,
provided that all the requirements of this chapter are met. The City
may provide land, buildings or infrastructure it already owns, or
it may build, purchase or lease the facilities needed for an economic
development project. The City at its discretion may bear the full
cost or contribute a portion of the costs, including the waiver of
applicable fees. The City, at its discretion, may also contribute
to the payment of costs for professional service contracts such as
industry feasibility studies and planning and design services needed
to implement a project.
B.
The governing body may consider offering all forms of assistance
allowed under this chapter and any other legally permissible forms
of assistance; however, this does not establish any obligation on
the City's part to offer any specific type or level of assistance.
A.
The governing body assigns the Las Vegas San Miguel Economic Development
Corporation (LVSMEDC) Board of Directors the following responsibilities
with regard to the economic development plan for the City of Las Vegas:
B.
The LVSMEDC shall at all times provide for a Board of Directors position
for the City of Las Vegas, the Mayor shall appoint a member of the
Board of Directors with the advice and consent of the City Council.
A.
Any qualifying entity meeting the definition set forth in the definition of "qualifying entity" in § 33-4 may propose an economic development project to the City. Meeting the definition of a "qualifying entity" does not create any obligation on the part of the City of Las Vegas.
B.
Applications from qualifying entities shall be submitted to the City
of Las Vegas on forms approved by the City.
C.
Applications shall contain the following information for business
applicants:
(2)
Evidence of financial solvency (personal statement of principals):
(3)
Evidence of organizational capacity:
(a)
Brief history of the entity;
(b)
Organizational chart of the entity;
(c)
Business plans for the entity and proposed project (shall include
three-year pro-forma cash flow analysis);
(e)
Entity shall disclose the following information (if the answers
is yes the entity shall attach a written explanation):
(4)
The project participation agreement and any other pertinent information
will be forwarded to the governing body for final consideration at
a public meeting.
(6)
Identification of the terms, conditions, location, scope and requirements
to the economic development project.
(7)
Information sufficient for the LVSMEDC to make its determination
whether the applicant is a qualifying entity.
(8)
Any other information required of the applicant by the LVSMEDC or
governing body.
A.
The LVSMEDC Board of Directors shall determine whether the entity
and the proposed project qualify under this chapter.
B.
The LVSMEDC Board of Directors shall then coordinate with the qualifying entity to develop a project participation agreement as set forth in § 33-11.
C.
The LVSMEDC Board of Directors shall consider the economic development project participation agreement in accordance with the criteria set forth in § 33-9. The LVSMEDC Board of Directors shall recommend to the governing body that the proposal be adopted, conditionally adopted or not adopted.
D.
The recommendation will be forwarded with the project participation
agreement, minutes of the LVSMEDC meeting and any other pertinent
information to the governing body for final consideration at a public
meeting.
A.
Applications for economic development projects requesting economic
assistance from the City, which meet the policies and objectives of
the City's economic development plan, shall receive priority.
Examples include, but are not limited to:
(1)
Manufacturing firms (including intellectual property such as computer
software);
(2)
Projects, which enhance the exporting capacity of companies and/or
provide goods and services, which currently have to be imported into
Las Vegas;
(3)
Private companies seeking to build, expand or relocate facilities;
(4)
Private companies which provide facilities or services which enhance
the ability of Las Vegas businesses to operate;
(5)
Organizations, which assist business start-ups or bring small companies
together to increase their competitive abilities. This must involve
a tangible project, which will create jobs and promote an industry.
Examples include, but are not limited to:
(a)
Business incubators;
(b)
Art incubators or coalition (e.g., a performing arts coalition
seeking construction rehearsal or performance facilities);
(c)
Public markets for farmers, gardeners, crafts, etc.; and
(d)
Organizations which foster economic development by promoting
work force development efforts such as apprenticeships or other job
training programs;
(6)
Projects in industry clusters listed above are particularly encouraged,
but others are eligible to apply as well. The intention is to retain
flexibility in the use of incentives; and
(7)
Qualifying entities with existing contract or projects with the City
when this plan is adopted may propose a restructuring of their projects
as an economic development project.
B.
All applications for economic development projects requesting economic
assistance from the City shall submit a cost benefit analysis. Preparing
a cost benefit analysis shall be the responsibility of the applicant.
The City retains the right to specify a format and methodology for
the cost-benefit analysis. The LVSMEDC shall review and approve the
methodology used. The source and rationale for any multiplier effects
shall be identified. The cost-benefit analysis shall show that the
City will recoup the value of its donation within a period of 10 years.
The analysis shall address the following:
(1)
The number and type of jobs to be created, retained, both temporary
construction jobs and permanent jobs (by New Mexico Department of
Labor job category);
(2)
Pay scale of jobs;
(3)
Determination of which jobs are expected to be filled locally and
which will be filled by transfers from other facilities or recruited
from outside the Las Vegas area;
(4)
Total payroll expected at start-up and after one year;
(5)
Anticipated impact on local tax base; and
(6)
Anticipated impact on local school systems.
C.
All applicants for economic development projects requesting economic
assistance from the City shall require the same review required of
industrial revenue bond applications. This review shall focus on environmental
and community impacts of proposed projects. Special attention shall
be given to job training and career advancement programs and policies.
Projects shall demonstrate a strong commitment to providing career
opportunities for Las Vegas area residents. Cultural impacts of projects
shall also be considered.
D.
Any qualifying entity seeking assistance shall prepare and make available
a job training and career development plan for their employees.
E.
All applicants for economic development projects requesting economic
assistance from the City shall clearly demonstrate the benefits, which
will accrue to the community as a result of the donation of public
resources. The City has considerable flexibility in determining what
is considered as adequate benefits. Benefits such as providing components
or production capabilities, which enhance a targeted industry cluster,
or addressing critical deficiencies in regional economy, may be recognized.
The benefits claimed of any proposal will receive careful scrutiny.
However, it is the intent of this chapter to be flexible in the evaluation
of these benefits, and to recognize the qualitative as well as quantitative
impact of a proposal.
F.
All applicants for economic development projects requesting assistance
from the City shall clearly demonstrate how the qualifying entity
is making a substantive contribution. The contribution shall be of
value and may be paid in money, in-kind services, jobs, expanded tax
base, property or other thing or service of value for the expansion
or improvement of the economy. The City retains flexibility in defining
the "substantive contributions." The benefits identified in the previous
paragraphs may be accepted as adequate contributions on their own,
or as cash donations may be required. Assistance in providing affordable
housing to its employees or the community at large may also qualify.
Determination of what constitutes an acceptable contribution for a
given project shall be at the discretion of the governing body.
A.
All economic development projects receiving assistance from the City
shall be subject to an annual performance review conducted by the
LVSMEDC. This review shall evaluate whether the project is attaining
the goals and objectives set forth in the project participation agreement.
This review shall be presented to the governing body for its consideration.
The governing body at a public hearing may terminate assistance to
the economic development project by provisions set forth in the agreement,
which terminates the agreement and specifies the disposition of all
assets and obligations of the project.
B.
The City shall retain a security interest, which shall be specific
in the project participation agreement. The type of security given
shall depend upon the nature of economic development project and assistance
provided by the City. Types of security may include, but are not limited
to:
(1)
Letter of credit in the City's name;
(2)
Performance bond equal to the City's contribution;
(3)
A mortgage or lien on the property or equipment;
(4)
Prorated reimbursement of donation if company reduces work force
or leaves the community before the term agreed to; and
(5)
Other security agreeable to both parties.
C.
Should a qualifying entity move, sell, lease or transfer a majority
interest in the economic development project before the expiration
of the project participation agreement, the City retains the right
to deny any and all assignments, sales, leases or transfers of any
interests in the economic development project until adequate assurances
are made that the transferee, assignee or lessee is a qualifying entity
and that the terms of the agreement will be satisfied by the transferee,
assignee or lessee. At its discretion, the City may choose to deny
said assignment, lease or transfer or may negotiate a new agreement
with the new operator, or the City may reclaim the facility and enter
into an agreement with the new qualifying entity.
D.
Any qualifying entity seeking assistance from public resources shall
commit to operate in accordance with its project participation agreement
for a minimum of 10 years from the date this chapter is adopted and
the governing body passes the project participation agreement.
A.
The qualifying entity shall prepare with the City a project participation
agreement. This agreement is the formal document, which states the
contribution and obligation of all parties in the economic development
project. The agreement must state the following items:
(1)
The economic development goals of the project;
(2)
The contribution of the City and the qualifying entity;
(3)
The specific measurable objectives upon which the performance review
will be read;
(4)
A schedule for project development and goal attainment;
(5)
The security being offered for the City's investment;
(6)
The procedures by which a project may be terminated and the City's
investment recovered; and
(7)
The time period for which the county shall retain an interest in
the project. Each project agreement shall have a "sunset" clause after
which the City shall relinquish interest in and oversight of the project.
B.
Each project participation agreement shall be subject to review and
approval by the governing body at a public hearing.
All project monies shall be kept in a separate account by the
entity and the City, with such account clearly identified. These accounts
shall be subject to an annual independent audit.
The governing body may terminate this chapter and the City's
economic development plan and any or all project participation agreements
undertaken under its authority. Termination shall be by ordinance
at a public hearing or in accordance with the terms of the project
participation agreement. If an ordinance or a project participation
agreement is terminated, all contract provisions of the project participation
agreement regarding termination shall be satisfied. Upon termination
of the ordinance or any project participation agreement, any City
monies remaining in the City project accounts shall be transferred
to the City's general fund.
The City may engage in economic development projects involving
one or more other government entities for projects, which encompass
more than one municipality or county. In such instances, the relevant
governing bodies shall adopt a joint powers agreement. This agreement
will establish the application criteria and the terms of all project
participation agreements. Criteria established under a joint powers
agreement shall be consistent with the provisions of this chapter.
