To spur business growth in Cortez, the city embarked on the We’re In This Together Economic Development Resolution in 2012, and at the end of the year, its coming to a close.
Looking at totals that have come in so far, city manager Shane Hale said the program has had a positive response among new and existing businesses.
The two-pronged program abated 50 percent of new businesses’ building permit fees and use taxes, and also rebated sales taxes to existing businesses that grow at least 3 percent compared to the previous year and ends in December of this year.
The two-year building permit fee abated program ended in 2014.
Hale explained to Cortez City Council at their April 28 meeting that the abatement program netted $37,018.14 in savings for new businesses in 2013. In 2014, however, the city saw a huge jump in participation, abating $148,890 – a 300 percent increase.
The increase can be attributed to many of the larger developments on East Main Street that took advantage of the program including McDonald’s, Maverick, Hampton Inn, Aaron’s and Comfort Dental.
In terms of sales tax rebates, 134 businesses received a rebate from the city for a total of $34,438.58 in 2014 compared with 131 businesses that received a $38,408.31 in collective rebates.
While the program proved to be popular, Hale says it would be advantageous of the city to let the program sunset and compare the results to see if its really worth giving up that potential revenue.
“Let’s at least take a couple years off and say ‘Does it seem like we had more building when we incentivized it or not?’” he said. “I think it was a big impact for sure.”