Attachment A - Proposed Ordinance 8726

ORDINANCE 8726

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AN ORDINANCE AMENDING TITLE 3, “REVENUE AND TAXATION,” B.R.C. 1981, BY ADDING A NEW CHAPTER 322, “ECONOMIC DEVELOPMENT INCENTIVE AGREEMENTS,” AND AMENDING SECTION 4-20-63, “CITY MANAGER REBATE AUTHORITY,” B.R.C. 1981, EXPANDING THE CITY’S ECONOMIC DEVELOPMENT PROGRAM; AND SETTING FORTH RELATED DETAILS

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THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO, FINDS AND RECITES THE FOLLOWING: A.

The City Council finds and declares that the health, safety, and welfare of the

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people of the city of Boulder are dependent upon the attraction of new private enterprise as well

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as the expansion and redevelopment of existing private enterprise; that incentives are often

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necessary in order to attract new private enterprise and to encourage existing private enterprises

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to redevelop or expand; that providing incentives will stimulate economic development in the

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city and will result in the creation and maintenance of new jobs; and that the public purpose to be

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served by providing incentives outweighs any individual interests incidentally served thereby. B.

To this end, in 2008, council passed Ordinance 7554 that established a one-year

business incentive rebate program to allow the city to grant sales and use tax rebates and development excise tax rebates to qualifying businesses in connection with equipment

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acquisition, construction projects, construction equipment and construction materials. C.

By Ordinance 7639, City Council made the business rebate program permanent.

D.

The business rebate program limits the ability to offer broader economic

development incentives to primary employers, as defined in the B.R.C. 1981, and to other private

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entities or businesses that may wish to develop or expand an existing business or to hold a large

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event that will promote tourism and enhance the local economy.

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E.

City Council, therefore, now wishes to expand the program to explicitly authorize

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the city manager to negotiate economic incentive agreements with primary employers

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developing strategic projects for the city, to develop criteria for such agreements, expand rebate

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authority, as well as to engage other private entities that would diversify and strengthen the local economy or otherwise satisfy the city’s economic development strategic objectives.

8 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER,

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COLORADO:

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Section 1. A new Chapter 3-22, “Economic Development Incentive Agreements,” is added

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to Title 3, “Revenue and Taxation,” B.R.C. 1981, to read as follows: Chapter 22 – Economic Development Incentive Agreements 3-22-1. – Purpose and Legislative Intent. (a)

Purpose. The purpose of this chapter is to promote equitable and sustainable economic development within the city of Boulder; to foster business growth and expansion that provides high-quality employment opportunities; to encourage businesses to innovate and invest in the local economy; to attract and retain businesses that align with the city’s strategic, environmental and social values; and to administer a program of economic incentives in a manner that respects, serves, and protects the interests of both the business community and the residents of the city.

(b)

Legislative Intent. The City Council recites the following legislative findings and statements of intent that were taken into consideration in the adoption of this chapter:

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(1)

The City Council recognizes that the city’s economic vitality is dependent on a diverse and resilient business ecosystem that supports a high quality of life for all residents.

(2)

Economic incentive programs are a valuable tool for encouraging private investment in projects that generate public benefits, such as job creation, infrastructure improvements, and sales and use tax generation.

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(3)

To address concerns about equity and the fair distribution of resources, the city’s economic incentive program is designed to align with and advance the city's core values, including those related to environmental resilience, equity, and economic sustainability.

(4)

The program will prioritize incentives for businesses that provide high quality jobs with living wages and comprehensive benefits, contribute to a diverse and inclusive workforce, and demonstrate a commitment to sustainable business practices.

(5)

Addressing and promoting equitable growth through a strategic economic incentive program is a matter of significant local concern that is essential for the long-term prosperity and well-being of the city of Boulder.

(6)

Compliance with this chapter will be carried out through the City Manager’s Office, in coordination with other relevant city departments.

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3-22-2. – Economic Development Incentive Agreements.

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The city manager is authorized to negotiate and enter into, on behalf of the city, economic development incentive agreements with primary employers, as defined in Section 3-11, “Definitions,” B.R.C. 1981, and other private entities that qualify under criteria established by the city manager in an economic development incentive program. The economic development incentive(s) shall be reduced to a written agreement with a private entity assuring that the respective criteria, based on milestones defined by both parties, will be met within a reasonable number of years from the date of the incentive agreement and shall be subject to the business being current on all obligations to the city and to such other terms and conditions as will, in the judgment of the city, ensure that the eligibility criteria and other pertinent development conditions will be performed and satisfied. If any such terms or conditions are not performed or satisfied, the incentive agreement shall terminate and shall not be eligible for any further incentive payments. With respect to waivers, credits, or rebates of fees, the city shall ensure it accounts for the mechanism by which the city will replenish or otherwise account for the resulting reduction in funds, using only general fund revenues or other legally permissible nonfee revenue sources.

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These economic incentives may include, but are not limited to: (a)

Reimbursement of a portion of local sales and use taxes generated by the development or business, provided, however, no dedicated revenues pledged to a restricted fund, including a special revenue fund, shall be used for any reimbursement.

(b)

Rebates of the development excise taxes in accordance with Section 3-8-7(e), B.R.C. 1981.

(c)

Waiver of all or part of the development application and permit fees.

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(d)

Rebates for all or part of use tax paid in in connection with equipment acquisition, construction projects, construction equipment and construction materials, provided, however, that no dedicated revenues pledged to a restricted fund, including a special revenue fund, shall be used for any credit.

(e)

Rebates of sales and use taxes paid by primary employers as specified in Section 3-17-8, “Duties and Powers of City Manager,” B.R.C. 1981.

(f)

The construction or enhancement by the city of public improvements that benefit the city or community as a whole.

(g)

Waiver or rebate of certain fees as referenced in Section 4-20-63, “City Manager Rebate Authority,” B.R.C. 1981.

(h)

In-kind contributions, or the reasonable value thereof, including but not limited to the provision of city personnel, facilities, equipment, or services.

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3-22-3. – City Council Action.

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The City Council may, by resolution, affirmatively act to authorize economic development incentive agreements which are not subject to the specific limitations contained in this chapter.

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3-22-4. – City Manager May Adopt Rules. The city manager may adopt rules and regulations that the city manager determines are reasonably necessary to administer the requirements of this chapter. Section 2. Section 4-20-63, “City Manager Rebate Authority,” B.R.C. 1981, is amended to read as follows: The city manager may grant rebates, credits, and/or waivers of any fees paid pursuant to Chapter 4-20, “Fees,” B.R.C. 1981, paid by primary employers or other private entities in compliance with criteria established by the city manager as part of an economic development incentive program in connection with equipment acquisition, construction projects, construction equipment, and construction materials when, in the judgment of the city manager, the rebate, credit or waiver will serve the economic interests of the city by helping attract or retain a primary employer or other private entities which contributes to a socially, environmentally, and economically sustainable community. These rebates, credits or waivers may include, but are not limited to, fees paid pursuant to Sections 4-20-26, “Water Plant Investment Fees”; 4-20-29, “Wastewater Plant Investment Fees”; 4-20-43, “Development Application Fees”; 4-20-44, “Floodplain Development Permits and Flood Control Variance Fees”; 4-20-45, “Stormwater and Flood Management Fees”; 4-20-46, “Stormwater and Flood Management Utility Plant Investment Fee”; and 4-20-52, “Fire Code Permit and Inspection Fees,” B.R.C. 1981. The city

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manager may promulgate interpretive guidelines to define more specifically the circumstances under which rebates, credits or waivers may be granted and to establish application procedures, review criteria, schedules, or other matters necessary or desirable for implementation of this subsection or the purposes and findings in Ordinance 7639. Any fees rebated, credited or waived pursuant to this subsection shall be deemed payable by the city’s general fund or other legally authorized source. Section 3. All other ordinances or portions thereof inconsistent or conflicting with this

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Ordinance or any portion hereof are hereby repealed to the extent of such inconsistency.

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Section 4. This Ordinance is necessary to protect the public health, safety, and welfare of the residents of the city and covers matters of local concern.

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Section 5. The City Council deems it appropriate that this ordinance be published by title

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only and orders that copies of this Ordinance be made available in the office of the city clerk for

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public inspection and acquisition.

13 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY

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TITLE ONLY this 18th day of September 2025.

16 ________________________________ Aaron Brockett, Mayor

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Attest:

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_____________________________ City Clerk

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READ ON SECOND READING, PASSED AND ADOPTED this 9th day of October

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2025.

3 ________________________________ Aaron Brockett, Mayor

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Attest:

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_____________________________ City Clerk

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