Select Committee on Business Incentives — Charleston, WV
Date: 2019-12-12
Time: 14:00

CITY OF CHARLESTON
 West Virginia
 Council Member – 15th WARD




Sam Minardi Environment and Recycling Committee
1526 Bedford Road Facilities Committee
Charleston, West Virginia 25314
304-343-4045
sam.minardi@gmail.com




 AGENDA
 SELECT COMMITTEE ON BUSINESS INCENTIVES
 Thursday, December 12, 2019 at 2:00 p.m.
 City Hall – AV Room #308


  I. Call to Order

  II. Committee Purpose

  III. Overview of Current Business Incentives- Jonathan Storage

  IV. Discussion

  V. Other Business/Future Meetings

  VI. Adjournment


 *Meetings may be recorded and broadcast via internet https://charlestonwv.civicclerk.com




 City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330
 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax

MINUTES
 SELECT COMMITTEE ON BUSINESS INCENTIVES MEETING

 2:00 P. M., DECEMBER 12, 2019

 AV ROOM

Sam Minardi called the meeting of the Select Committee on Business Incentives to
order at 2:00 p.m., DECEMBER 12, 2019, in the AV Room in City Hall.

Select Committee Members Present:
Sam Minardi (Chair)
Ben Adams
Jennifer Pharr
Bobby Reishman
Keeley Steele


 1. Committee Purpose – Councilmember Minardi invited City Manager, Jonathan
Storage to speak in regard to the purpose of the Select Committee. Storage stated that
the Mayor has been active in trying to come up with ways that the Administration can
incentivize business activity as well as streamline the process to make it more
welcoming and encouraging. They have received numerous requests for tax
abatements/relief, which is not permitted on an ad hoc basis under the City’s tax code.
The Administration’s goal is to create a process that is fair, efficient and easily
administered to incentivize business development and expansion. This will be the task
of the Select Committee. Storage suggested examining best practices of other
communities. Mayor Goodwin added that a lot of ideas have been passed around, and
now that certain internal structures and procedures have been cleared up, the
Administration has a clearer view of what they would like to see put in place.

 2. Overview of Current Business Incentives – Jonathan - Councilmember Reishman
stated that the B&O tax was first put in place during the construction of the interstate as
a “pyramiding tax” that which, which was simple to follow from the state at the time.
Councilmember Minardi confirmed that states without a B&O tax have sales tax. City
Collector, Lamont Moore, added that a lot of states have a corporate net income tax. He
presented the Select Committee with a handout which showed that 40% of the City’s
operating revenue fund comes from B&O taxes. He added that the biggest impediment
for any business incentive is the discrepancy between a physical and electronic
presence.

Storage added that City staff will be supplying the Select Committee with general
educational information, such as how B&O taxes are applies, the categories and the
limitations of the code. He asked the Select Committee to consider that:
  any decision made are “revenue neutral” in the sense that it doesn’t
 impact current or anticipated revenues.
  the process is not administratively burdensome.
  the impact of new ordinances/changes be considered from a legal
 standpoint.

Moore informed the Select Committee some of the current incentives, some of which
are directed toward producers of natural gas, manufacturing and certain exemptions for
itinerant/street vendors. Assistant City Attorney, Joe Baldwin, pointed out that the
manufacturing incentive has not resulted in any increase in manufacturing businesses.
He mentioned the City of Hurricane’s retail incentive of a two-fold tax percentage.

Baldwin added that issues can arise in dealing with incentives, the biggest of which is
ensuring they are uniform and equal. In his opinion, a sound policy would be across-the-
board reductions for specific classifications.

 3. Discussion – Mayor Goodwin stated that incentives could also involve programs
such as façade/sign grants.

Councilmember Steele suggested an incentive that would apply to a business that had
been operating for more than five years, etc. Councilmember Minardi stated that his
interest in how incentives could make it easier for small businesses. Councilmember
Reishman suggested incentives for those new businesses that invest in something
(equipment or technology, for example). Councilmember Steele stressed the
importance of encouraging businesses that allows people to move into the City.

Councilmembers Steele and Pharr stated it would be beneficial to know the before and
after numbers of municipalities like Morgantown who have enacted business incentives.
Mayor Goodwin also suggested looking into giving the property owners of the numerous
empty storefronts in the City some sort of incentivization to rent out their space to
businesses, etc.

 4. Future Meetings – Councilmember Minardi suggested meeting monthly,
preferably during the work day. The members disused inviting certain banks, business
owners, etc. to their meetings to gather information.




With no further discussion, Councilmember Reishman motioned to adjourn. Meeting
adjourned.