File #: GID-1920-56    Version: 1 Name: Quality Jobs incentive to NEDC
Type: Request for Payment Status: Passed
File created: 1/9/2020 In control: City Council
On agenda: 1/14/2020 Final action: 1/14/2020
Title: CONSIDERATION OF PAYMENT OF QUALITY JOBS INCENTIVE TO THE NORMAN ECONOMIC DEVELOPMENT COALITION IN THE AMOUNT OF $49,021.25 IN ACCORDANCE WITH CONTRACT K-1314-106, UNIVERSITY NORTH PARK TIF DEVELOPMENT AGREEMENT NO. 6, AS AMENDED.
Attachments: 1. City Council Staff Report, 2. Development Agreement No. 6, 3. Data Analysis for Qrts. 1-4, 4. Incentive Projection Worksheet
Title
CONSIDERATION OF PAYMENT OF QUALITY JOBS INCENTIVE TO THE NORMAN ECONOMIC DEVELOPMENT COALITION IN THE AMOUNT OF $49,021.25 IN ACCORDANCE WITH CONTRACT K-1314-106, UNIVERSITY NORTH PARK TIF DEVELOPMENT AGREEMENT NO. 6, AS AMENDED.

Body
BACKGROUND: On January 28, 2014 the Norman Tax Increment Finance Authority (NTIFA), Immuno Mycologics, Inc. (IMMY), and the Norman Economic Development Coalition (NEDC) memorialized an agreement (Development Agreement No. 6, herein DA#6) providing incentives for job creations related to an Advanced Manufacturing Facility to be built in the University North Park Tax Increment Finance District (UNP TIF). DA#6 supports the City of Norman's economic development plans for expanding employment, attraction of major investments, preservation and enhancement of the tax base, and facilitation of investments here in the City. DA#6 provides that job creation incentive payments earned by IMMY are assigned for payment to NEDC. DA#6 was recently amended by Council action on November 26, 2019 and the obligation related to the job creation incentive payments was unchanged by said amendment. This action is authorized by both the 2006 Project Plan, as amended in 2008, and the adopted 2019 Amended UNP TIF Project Plan. The pending referendum petition does not affect this obligation or the availability of funds to fulfill this obligation.

DISCUSSION:

Definitions under DA#6

Qualifying Job and Qualifying Wage calculations. Employers qualifying for job creation incentives must create a "Quality Job" and pay a "Qualifying Wage". A "Quality Job" is defined as a "permanent full-time employ[ee] . . . which [receives] fringe benefits . . . [and receives] a "Qualifying Wage". The employee must work at least 35 hours a week a "normal year" or 1,680 hours per year, whichever is less. Additionally, a "Qualifying Wage" is defined as "the average wage per New Job that results in an average hourly rate of at least $24.04 per hour calculated on a quarte...

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