The City Council adopted a Business Assistance Program (BAP) to ensure the City remains competitive, consistent, and accountable, by leveraging the impact of a business opportunity to assist prospects in locating or expanding in the City of Louisville. The program’s criteria apply to primary job recruitment and retention, as well as retail recruitment and retention.
The City has completed incentive agreements with a variety of businesses since the program's inception. They have included agreements with restaurants, retail developers, manufacturing, and high tech businesses.
Why assistance may be provided to a project:
- The City of Louisville recognizes the value of providing business assistance to aid companies in locating to the City, and to encourage substantial expansion of existing businesses, in keeping with the overall economic development objectives.
- The City believes assistance to be important in remaining competitive in attracting quality business and development to the City; and, it can be used as a tool in recruiting and retaining businesses to the City.
- The City uses basic criteria to determine whether a project meets the goals and objectives of Louisville, thus merits business assistance.
- The City may use business assistance to encourage a project to pursue a more comprehensive development (ie architectural upgrades, infrastructure, façade improvements, etc).
- The City may use business assistance to equalize a site for a project (ie demolition of an existing building to redevelop and reconstruct something new).
Types of Business Assistance
- Business Assistance is generally provided in the form of building permit fee rebates, construction use tax rebates, and sales and/or use tax rebates (if applicable).
- All rebates will be based upon new dollars generated by the project at move-in and/in the early years of operation. The rebates must be earned by carrying out the project.
- Any sales tax business assistance is calculated on the City’s 3.5% less the City’s open space tax of .375% and the historic preservation tax of .125%, unless the City considers a lesser amount to be appropriate.
- Based upon the new dollars generated by the project, the City may rebate a percentage of those dollars back to the owner or developer (but not both).
- Business Assistance is available only upon formal City Council approval and there must be an assistance agreement in place prior to a location decision being made.
When Business Assistance is not provided to the project
- When the project does not meet the goals or objects, or the overall criteria for the City.
- When the project does not generate new dollars to the City.
- When the project does not meet the City approval process.
- When the project goes public and announces in the community, and has not requested assistance prior to the announcement.
- When Council chooses not to approve business assistance.
For more information, please contact Economic Development Director Aaron DeJong at 303.335.4531.