Community Reinvestment Area Policy
A Community Reinvestment Area is a section within the City which contains housing facilities or structures of historical significance, where new housing construction and repair of existing facilities has been discouraged. The Sidney City Council may decide to extend 100% tax abatements on all new real property investments, for terms described later in this policy statement.
The purpose of designating Community Reinvestment Areas within the City of Sidney is to provide the City with an effective tool to encourage, manage, and guide certain desired economic development activity within the designated areas. The expressed intent of the policy governing Sidney Community Reinvestment Areas is that this vehicle be used to:
- Create development which is consistent with the Sidney Comprehensive Plan
- Enable the accomplishment of capital improvements, such as the development of roads and public utilities, to service industrial and other facets of the community
- Enable the City to remain competitive with other local communities in drawing quality economic development activity to Sidney
- Promote the establishment and retention of manufacturing, commercial and residential projects, whose location within the City will have a long term impact on the community, through the provision of quality employment opportunities and substantial private and public capital investment
- Promote the retention and expansion of well-established manufacturing and commercial enterprises in the City
- Provide economic stimulus to other business activities of the City in the form of retail and wholesale goods, services, support facilities and satellite industries
Community Reinvestment Area
The proposed boundaries for the Community Reinvestment Areas are depicted on the following maps:
The following enterprises may be eligible to apply and receive tax incentives through the Sidney Community Revitalization Area policy:
- Low to moderate income (as determined for Housing and Urban Development (HUD) programs) housing projects
- Manufacturing businesses
- Research and development businesses that are engaged in the testing, evaluation, engineering, and marketing of materials or products that are subject to or associated with a manufacturing process, and exploration of the application of technology in manufacturing
- Retail and service industry projects, whose accomplishment can satisfy the intent of this policy
- Warehousing and distribution projects
Degree of Investment Required
Only applicants that agree to make substantial investments in either real or personal property shall be eligible to receive the benefits available under the City's Community Reinvestment Area program, namely a tax exemption for real property investments. The matter of substantial investment is defined as: An abatement would not be granted where the project results in a net loss in investment for an existing business and subsequent loss of property tax revenue unless it is absolutely essential to the economic well being of the City.
As a condition of receiving tax incentives through the Community Reinvestment Area Program, the applicant must be willing to enter into a contract with the City. The terms of the contract shall address the applicant's commitment regarding the extent and timing for investment activity and retention and/or creation of new jobs during the term of the incentive. The contract shall provide that failure to perform to the specifications of the agreement may result in the revocation and/or repayment of the granted incentives. The decision to invoke the revocation or repayment of the incentive due to failure of the party receiving the incentive to perform in accordance with the terms of the contract shall be made by the Sidney City Council.