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Tax
Credit Management is an expert in competitive incentive packages. Our team
facilitates public/private partnerships nationwide to maximize economic
development benefits.
We have experience in communities in 48 different states. We have knowledge and
experience with local, state, and federal incentives that motivate clients to
develop projects that have significant economic benefits for the communities
they touch.
Our mission is to use our wealth of knowledge and vast experience to help you
improve your economic development efforts.
Case Studies:
Brownfield
Investment Impact
Investment:
$1,000,000
Return:
$30,000,000 per year in sales = $1,800,000 per year in Sales Tax or $18,000,000
over a 10 year period
$2,629,475 per year in Payroll or $30,000,000 over a 10 year period
100 jobs created = $3,000,000 per year in Payroll or $30,000,000 over a 10 year
period
Situation:
A City located in the Southeastern United States has property that was
under-utilized and and had contamination issues.
Approach:
TCM worked with the City officials to identify Federal funds that could be
available for remediation work.
Results:
$1 million dollars were made available to redevelop this property and make it a
valuable asset to the community.
IDA/IRB Industrial Development Authority
Investment Impact
Investment:
$100,000,000
Return:
$121,522,399 sales tax over a 20 year period
$29,000,000 property tax over a 20 year period
$89,856,000 payroll over 20 year period
Situation:
The County of Cook in Kentucky was approached for additional financing
assistance after a TIF was arranged at the City level.
Approach:
TCM researched and reviewed options for IDA funds to be made available in order
to improve the financial package for this proposed $450 million project.
Results:
Working with the County and local banking community, a $100 million bond issue
was arranged by utilizing IRB's. These low interest bonds facilitated the
developer's investment in the overall project.
CDBG Community Development Block Grant
Investment Impact
Investment:
$500,000
Return:
$24,000,000 in gross sales = $1,440,000 in sales taxes
$14,400,000 in a 10 year period
$1,420,000 property taxes and personal taxes over a 10 year period
100 jobs created = $3,000,000 payroll
Average year = $30,000
$30,000,000 in a 10 year period
Situation:
A City located in the Midwest wanted the ability to attract new economic growth.
Approach:
TCM worked with the City's grant writer to focus his efforts on economic
development.
Results:
A CDBG was granted for $500,000 to off-set infrastructure costs for a retail
strip center. This supermarket-anchored center allows for multiple retailers to
be present in the community. This gave the residents an improved quality of
life.
Rebate/Abatement (Fee in Lieu/Tax Abatement)
Investment Impact
Investment:
$1,500,000 (over 10 years)
Return:
$1,824,000 in property taxes
$326,610 in personal taxes
$2,150,610
$3,300,000 per year in payroll or $33,000,000 over a 10 year period in payroll
Situation:
The City of Washington, DC had an under-served segment of its population in need
of a full-service supermarket.
Approach:
TCM reviewed Washington, DC's present laws and codes and found a tax credit to
entice a major supermarket company to develop a store in the under-served area.
The law that was used was originally drafted to attract specific retailers. TCM
showed the government officials how it could be used to accomplish their goals.
Results:
The supermarket chain received $1.5 million in property tax abatements, fee
abatements, and rebate of sales taxes paid for materials and equipment
associated with the building of the project.
TIF Tax Increment Financing
Investment Impact
Investment:
$27,000,000
Return:
$8,221,446 in sales tax per year
$121,522,399 in sales tax over a 20 year period
$1,450,000 in property tax per year
$29,000,000 in property tax over a 20 year period
$4,492,800 in payroll per year
$89,856,000 in payroll over a 20 year period
Situation:
The City of Corinth, Kentucky wanted to facilitate a major resort tourist
destination with a life-style center for their community. Working with TCM they
identified an incentive package to help get the project started.
Approach:
Working with TCM, the City explored options for TIF financing to assist the
developer in making their significant project happen. Local and State options
were reviewed and researched. TCM suggested the City could control its own
destiny by funding the TIF bonds utilizing projected increases in property taxes
and occupation taxes.
Results:
The TIF (Tax Increment Financing) funds of $27 million dollars were a great
start to making this project a reality. TCM worked with a County government to
pursue additional financing to improve the developer's return on this project.
Sales Tax Sharing Agreement (STSA)
Investment Impact
Investment:
$2,500,000 (over 20 years)
Return:
$30,000,000 sales per year
$2,100,000 sales tax per year
$42,000,000 sales taxes over 20 year period
$74,795 property tax per year
$1,495,900 property taxes over a 20 year period
$3,000,000 in payroll per year
$60,000,000 payroll over a 20 year period
Situation:
A small town in Louisiana desired to have a home improvement facility developed
for their community.
Approach:
TCM worked with the Mayor to develop an agreement that would share increased
sales taxes with the retailer in question. This creative "investment" made by
the town enabled the project to go forward.
Results:
A $2,500,000 Sales Tax Sharing Agreement (STSA) was negotiated to be invested
over a 20-year period. This agreement solidified a commitment on behalf of the
retailer to be a valuable member of the community.
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