§ 2-84.14. Failure of petitioner to comply may result in fines being imposed or termination of economic revitalization designation and repayment of taxes previously abated.

(a)

The Council believes that the granting of a request for real and/or personal property tax abatement under the terms and conditions of this article and the memorandum of agreement constitutes a contractual arrangement between the Council and the property owner granted abatement.

(b)

Accordingly, if the petitioner fails to achieve the estimates set forth in its original petition for tax abatement consideration and its statement of benefits, fines may be imposed by the Council relative to the severity of the failure to achieve.

(c)

Therefore, a petitioner who fails to file its annual report and meet with the Council's Community and Economic Development Committee as required by section 2-84.13 shall be fined two thousand five hundred dollars ($2,500.00).

(d)

A petitioner who complies with section 2-84.13, but fails to provide evidence as to why it has not fulfilled the obligations set forth in the memorandum of agreement and the petitioner's related documents used by the Council when granting the abatement, may be required to pay part or all of the tax abated to-date and may be fined in the minimum amount of two hundred fifty dollars ($250.00) to a maximum amount of two thousand five hundred dollars ($2,500.00) for each such failure to perform.

(e)

During the term of the abatement, the Community Investment Department may annually request information from the applicant concerning the nature of the project, the approved capital expenditures for the project, the number of full-time permanent positions newly created by the project, and the average wage rates and salaries (excluding benefits and overtime) associated with the positions, and the applicant shall provide adequate written evidence thereof within fifteen (15) days of such request (the "annual survey"). The Community Investment Department shall utilize this information and the information required to be filed by the applicant in the CF-1 compliance with statement of benefits form to verify that the applicant has complied with the commitments contained in the memorandum of agreement at all times after the memorandum of agreement date and during the duration of the abatement. The applicant further agrees to provide any additional information requested by the Community Investment Department related to the information provided in the annual survey and the CF-1 form within a reasonable time following any such additional request.

(f)

The City, by and through the Council, reserves the right to terminate the Economic Revitalization Area designation and associated property tax abatement deductions if it determines that the applicant has not made reasonable efforts to substantially comply with all of the commitments, and the applicant's failure to substantially comply with the commitments was not due to factors beyond its control.

(g)

As used in this section, factors beyond the control of the applicant shall only include factors not reasonably foreseeable at the time of the designation, application and submission of statement of benefits which are not caused by any act or omission of the applicant and which materially and adversely affect the ability of the applicant to substantially comply with this section.

(h)

If the Council terminates the Economic Revitalization Area designation and associated tax abatement deductions, it may require the applicant to repay all or a portion of the tax abatement savings received through the date of such termination. The amount of tax abatement required to be repaid for each year of noncompliance shall not exceed an amount equal to the percentage by which the applicant has failed to attain substantial compliance in any of the aforementioned investment, position retention and/or creation and average hourly wage rate and salary categories multiplied by the dollar amount of taxes actually abated. If the applicant fails to comply with more than one of the aforementioned categories, repayment shall be based on the highest level of non-compliance. The City's Legal Department is hereby authorized to pursue all legal actions necessary in the event of such non-compliance or failure by the applicant to perform other duties and responsibilities arising when it agreed to certain contractual obligations by signing the memorandum of agreement.

(i)

If at any time during the term of the agreement, whether before or after the commitment date, the applicant shall: (i) cease operations at the facility for which the tax abatement was granted; or (ii) announce the cessation of operations at such facility, then the Council may immediately terminate the Economic Revitalization Area designation and associated tax abatement deductions, and upon such termination, require applicant to repay all of the tax abatement savings received through the date of such termination.

(Ord. No. 9394-03, § I; Ord. No. 9720-06, § VIII, 11-27-06; Ord. No. 10195-12, § III, 10-22-12)