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Incentives

Below is a list of incentives available to qualified Visalia commercial projects of various sizes. If you have questions regarding any of this information, please contact Devon Jones at devon.jones@ci.visalia.ca.us or (559) 713-4190.  

City:

1) Continue to offer 5-year impact fee financing to qualified projects within the Enterprise Zone boundary secured by a lien against real property. 
    · Development impact fees (excluding sewer treatment and trunk line capacity impact fees) for qualified projects could be deferrable over a 5 year period, with no interest or administrative fees assessed. An initial payment of 20% shall be due and payable at building occupancy. The remaining balance will be paid over 5 annual installments, collected on the property tax roll.

2) 10 year sewer impact fee deferral program: 
    · Private companies located within the city limits with a permitted wastewater discharge capacity in excess of five hundred thousand (500,000) gallons per day may pay their sewer impact fees over ten (10) years. The first installment of ten (10) percent shall be due prior to occupancy, and the balance shall be paid in nine (9) equal annual installments thereafter. No interest shall accrue during the first five (5) years. Any balance remaining after the fifth year shall accrue interest at the rate of the city sewer connection services interest rate annually set by city council. All payments due after the initial payment shall be collected on the property tax roll. The collection of the balance due on the property tax roll shall not preclude the earlier payment of any outstanding balance.

3) Expedite commercial and large residential development projects in excess of $1,000,000. 
    · Expedited service could include (but not be limited to): 
        o Expressed plan checks (30 days or less)
        o The assignment of an inspector to the job who will go out to project sites as needed so that any possible problems can be mitigated before they happen

4) The City of Visalia has reduced the cost of doing business in an effort to support new home construction and commercial and industrial development that leads to job creation. Council Approved Actions on June 7, 2010 include (effective immediately): 
    · Reduce Transportation Impact Fees by 15% "across the board"
    · Reduce Park Acquisition and Water Acquisition Fee by 15% 
    · Establish a "Special Downtown TIF Credit Zone" with a TIF credit of 25% 
        o Cost of future street improvements in this area will be significantly less because of the "trend toward walkability" (less vehicle trips) 
    · Increase the existing "Infill Credit" from the current 15% to 25%, in addition to any Special Downtown TIF Credit Zone credit
    · Utilize a tiered fee structure for TIF fees for gas stations to give credit for underutilized gas pumps during non-peak hours 
        o TIF for an 18-position station would be reduced from $405,504 to $265,408

5) No local utility user taxes – unlike most cities in California, the City of Visalia does not charge any local utility user taxes potentially generating substantial savings 
    · Here is an example that illustrates savings possible for a large milk processing facility. Savings have been estimated on an annual basis and as compared to a utility tax rate of 6% 
        Electricity:         $396,000 
        CATV/Internet:  $2,000 
        Water:              $42,079

Financing Programs:

1) Industrial Development Bonds: 
    · For companies looking to raise $2,000,000+ to build or expand manufacturing facilities, industrial development bonds offer a way to raise money in the tax-exempt marketplace, thereby obtaining a lower interest rate. 
        California Infrastructure and Economic Development Bank

2) California Capital Access Program (CalCAP) 
    · CalCAP is a form of loan portfolio insurance which may provide up to 100% coverage on certain loan defaults. By participating in CalCAP, lenders have available to them a proven financing mechanism to meet the financing needs of California's small businesses. The California Capital Access Program (CalCAP) encourages banks and other financial institutions to make loans to small businesses that fall just outside of most banks' conventional underwriting standards. 
        California Pollution Control Financing Authority

3) Recycling Market Development Zone (RMDZ)
    · Incentives include one-stop permitting assistance, waiver or reduction of development/permit fees, a database on land, buildings, markets, and feedstock, a micro revolving loan fund, and installment payment of fees.    
    · The RMDZ loan program can also fund a maximum of 75% of costs directly attributed to an eligible project up to a maximum of $2 million, whichever is less. This benefit is available to companies who recycle materials which would otherwise be sent to landfills. 
        Recycling Market Development Zone (RMDZ) 
        Contact:
Economic Development Corporation of Tulare County

4) New Market Tax Credit 
    · Companies who invest in projects that qualify as Community Development Agencies get 39% of the project’s cost returned in the form of tax savings spread out over 7 years. 
        Contact:
Central Valley NMTC, LLC

5) Provide Property Assessed Clean Energy (PACE) financing options to encourage energy and water savings for qualified residential and commercial projects. 
    · PACE financing is paid on tax bills tied to the useful life of the improvements up to 20 years. PACE is property qualified financing; not credit-based, and the repayment obligation stays with the property.
        o CaliforniaFIRST is now accepting applications for commercial and multifamily properties with a $50,000 loan minimum. For more information, visit
www.californiafirst.org or contact (510) 692-9995. 
        o The Tulare County PACE program offers large commercial, industrial and multifamily loans over $200,000. There are no out of pocket costs to the property owner to participate in the program. For more information, visit
www.tularecopace.org or contact (626) 385-8410. 
        o The HERO program, which will be available October 1, 2014, provides financing for approved projects that start as low as $5,000. For more information visit
www.heroprogram.com, or contact (855) 437-6411.

5b. Energy Efficiency Assessments - For additional info about low or no cost assistance in becoming more energy efficient, please contact the Valley Innovative Energy Watch (VIEW) Partnership to get a comprehensive look at resources available.

Workforce:

1) On-the-Job Training 
    · On the Job Training is a program that provides wage reimbursements when qualified hires are made through a Workforce Innovation and Opportunity Act (WIOA) supported program. The reimbursement can be up to 50% of average wages for eligible employees during a training period typically ranging from 160 hours to 320 hours. 
        Contact:
Workforce Investment Board of Tulare County

2) Work-Opportunity Tax Credit (WOTC) 
    · Tax credit for $2,400 (and potentially $9,000) for hiring workers who fall under certain categories, such as residents of empowerment zones or renewal communities; food stamp recipients between 18 and 39 years old; disabled veteran's and more. 
        Contact:
Workforce Investment Board of Tulare County

3) Governor’s Economic Development Initiative (GEDI) New Employment Credit 
    · Tax Credit based on wages above $12 an hour & up to $28 an hour (or above $10 an hour based in limited pilot areas) for a total possible credit of up to $56,000 per employee. 
    · Credit is based on 35% of the amount paid over $12 per hour to qualifying hires. 
        Contact:
Workforce Investment Board of Tulare County

4) Employment Training Panel 
    · ETP is a business and labor-supported program that funds the costs of vocational training. The program targets firms threatened by out-of-state competition or who compete in the global economy
    · Program is performance-based. Employers must provide proof that training hours have been completed and trainees have been retrained in well-paying jobs for a specific period of time at a specified wage before ETP reimburses payment
    · For Incumbent Worker training, employers contribute to the cost of training. ETP also funds training for unemployed workers
    · ETP provides additional incentive to assist small businesses and employers in high unemployment areas of the State 
        Contact:
Workforce Investment Board of Tulare County

Other State:

1) Manufacturing and Research and Development Exemption 
    · A new law beginning on July 1, 2014 allows manufacturers and certain research and developers to obtain a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases. 
        California State Board of Equalization

2) California Competes Tax Credit 
    · This is an income tax credit available to businesses that want to come to California or stay and grow in California. Tax credit agreements will be negotiated by GO-Biz and approved by a statutorily created "California Competes Tax Credit Committee," consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, one appointee each by the Speaker of the Assembly and Senate Committee on Rules. 
        CA Governor’s Office of Business and Economic Development

Other Federal:

1) HUB Zone 
    · The Historically Underutilized Business Zone (HUBZone) is administered by the U.S. Small Business Administration (SBA) and was designed to stimulate economic development and create jobs in urban and rural communities by providing Federal contracting preferences to small businesses. The HUBZone applies to qualified small businesses (by SBA standards) located within the zone’s boundaries with at least 35% of their employees residing in a HUBZone. 
        Small Business Administration (SBA)
        Historically Underutilized Business (HUB) Zone

2) Foreign-Trade Zone 
    · A U.S. Foreign-Trade Zone (FTZ or Zone) is a designated area which, for Customs purposes, is considered outside the U.S. Nearly any imported merchandise can be brought into a Zone for almost any kind of manipulation, duty-free. If you are not currently located within the FTZ, a sub-zone can be created virtually anywhere in Tulare County to include your company's facilities. 
        Regional Foreign-Trade Zone No. 226
        Contact: Economic Development Corporation of Tulare County

3) Federal Research & Development Tax Credit 
    · Federal tax credit equal to 20% of the amount by which qualified research expenditures for a taxable year exceeds its base amount for that year, or for basic research payments. 
        Economic Development Corporation of Tulare County

Devon Jones
Economic Development Manager
425 E Oak Street, Suite 301
Visalia, CA 93291
Phone: 559-713-4190
E-Mail:
devon.jones@ci.visalia.ca.us

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