[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:
•
Cumberland should present a positive business image which will encourage the preservation and expansion of its economic base.
•
To encourage the development and use of existing industrial properties and mill buildings for industrial/commercial reuse.
•
To promote the diversification of the types of industries located in Town.
•
Encourage economic development which expands the community tax base while minimizing the demand for public services.
•
To promote and assist in the growth of existing business when expansion is deemed important to the economic development goals of the community.
•
Encourage economic growth which provides quality employment opportunities for local labor supply.
[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.
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.
Program I
Component A — New Construction
(percentage of new assessment to be assessed during the 10-year phase-in period)
Yr. 1
Yr. 2
Yr. 3
Yr. 4
Yr. 5
Yr. 6 — 10
Basic % (phase-in of tax assessment resulting from new activity only) 3-14 jobs
70%
80%
85%
90%
100%
100%
Basic Program and if 15-74 new jobs created
60%
70%
80%
90%
100%
100%
Basic Program and if 75 or more new jobs created
50%
60%
70%
85%
100%
100%
Program I
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)
Yr. 1
Yr. 2
Yr. 3
Yr. 4
Yr. 5
Yr. 6 — 10
Basic % (phase-in of tax assessment resulting from new activity only) 3-14 jobs
70%
80%
85%
90%
100%
100%
Basic Program and if 15-74 new jobs created
60%
70%
80%
90%
100%
100%
Basic Program and if 75 or more new jobs created
50%
60%
70%
85%
100%
100%
[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.
Program II
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)
Yr. 1
Yr. 2
Yr. 3
Yr. 4
Yr. 5
Yr. 6 — 10
Basic % (phase-in of tax assessment resulting from new activity only) 3-14 jobs
70%
80%
90%
95%
100%
100%
Basic Program and if 15-74 new jobs created
65%
75%
85%
95%
100%
100%
Basic Program and if 75 or more new jobs created
60%
70%
80%
90%
100%
100%
[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.
Yr. 1
Yr. 2
Yr. 3
Yr. 4
Yr. 5
Yr. 6 — 10
Tax assessment on new asset
50%
60%
70%
85%
100%
100%
These percentages shall be in addition to the typical depreciation table that the assessor's office uses.
[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.