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BOOK 98 PAGE 39 would be appropriate to provide tax abatement for 10 years, with 100e of the applicable taxes abated for the first 5 years and then a 20 percentage point per year reduction for the next 5 years. With respect to eligibility, it would be appropriate to limit tax abatement to industrial businesses and corporate offices. This would also address one factor affecting the 1993 tax abatement referendum defeat. Consequently, the following tax abatement program criteria are proposed. • The tax abatement is limited to a period of 10 contiguous years from the- date the application is accepted by the Board of County Commissioners • 100 percent of the eligible taxes, as described in this report, for the first five years will be abated and then a 20 percentage point per year reduction for the next 5 years • Tax abatements are applicable only to new or expanding existing industrial businesses and new corporate offices. Each eligible industrial business must create 10 or more new industrial jobs in the county. Each corporate office must house 50 or more full-time employees of a corporation newly domiciled in the state. PROPOSED RESOLUTION Although the county need not adopt a tax abatement resolution until after a tax abatement referendum is approved, there are advantages to approving a resolution before the referendum. The 'principal advantage is that a resolution will provide the public with details regarding administration of the tax abatement program. By providing this detail upfront, the county may enhance chances for passage of the tax abatement referendum. For that reason, a proposed tax abatement resolution has been drafted. Attached to this report is a copy of the proposed tax abatement resolution. As structured, the resolution establishes an economic development ad valorem tax exemption program to encourage economic development within the county. The resolution provides for definition of eligible businesses, procedures for applications for exemption, conditions applicable for tax exemption and other appropriate'requirements. • ALTERNATIVES The Board of County Commissioners has two principal alternatives with respect to tax abatement. The first alternative is not to pursue a referendum for tax abatement and not provide tax exemption. The second alternative is to initiate a tax abatement referendum to acquire the authority to offer tax abatement to eligible businesses. As indicated in this analysis, there are various reasons supporting the option of establishing a tax abatement program. Not only will such a program provide the county with an effective economic development tool; but it will level the playing field with competing counties. For these reasons and other reasons detailed in the analysis, staff supports the option of pursuing a tax abatement referendum. May 14, 1996 34 M