ITEM TITLE:
Work Session: Options for Enacting Economic Development Property Tax Exemption
SUBMITTED BY: Elise Sorum-Birk, Deputy City Clerk
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
n/a
SUMMARY STATEMENT:
The City Council has expressed interest in exploring this local exemption option.
Changes to state law in 2022 and 2024 made the allowable local economic development tax exemption under AS 29.45.040(m) much more flexible.
Staff from several city departments worked collaboratively to discuss options and consider details of what administering a program of this nature would require. Attached are:
• A summary of key recommendations from staff on how an initial program could be structured and what additional considerations exist.
• A rough draft of an ordinance
The goal of this work session is for Council Members to review staff recommendations and provide feedback to city administration on the proposed exemption program.