The City of Flagstaff is excited to introduce five new programs to facilitate greater economic activity community-wide. Two programs target existing businesses, two target businesses coming to Flagstaff, and one encourages the purchase of fuel-efficient vehicles from local auto dealers.
The Adaptive Reuse Program and the Business Retention and Expansion Incentive target existing businesses in Flagstaff.
The Adaptive Reuse Program provides up to $5,000 to eligible businesses for development and regulatory fees. Small businesses must be moving into an existing vacant space under 5,000 square feet, have a current business plan, must have attended a free pre-application meeting with City of Flagstaff Development Services and must partner with a design professional.
The Business Retention and Expansion Incentive helps existing small businesses stay and grow in Flagstaff. An amount of $30,000 is available for at least one local business and up to six businesses at $5,000 each. Eligible businesses employ between one and 150 employees and must be one of the following targeted sectors: entrepreneurial companies, small businesses and start-ups, Flagstaff Pulliam Airport Airside, research and development, health care, clean energy, biosciences, software development, medical devices, education. The scoring metric articulates the values of the community. As such, the elements that will be scored are: 1. Wages of jobs being retained or created relative to the Coconino County median wage and relative to the sector; 2. Environmental impact relative to water and power usage and relative to the impacts on the Flagstaff landfill; 3. Direct community benefit; and 4. Match of private funding. Applications are being received until Aug. 31.
The Business Attraction Job Creation Program looks to incentivize new businesses that are locating within the City of Flagstaff by offering up to $15,000 that can be used for a variety of authorized expenses. Eligible new businesses must be within one of the city’s targeted industries (mentioned above), create at least 10 full-time positions and the average wage for those positions must be higher than the Coconino County median wage of $20.04 per hour. Applicants will be scored and funding will be awarded based on their final application ranking. Awards are subject to the available fund balance for this program.
The Business Attraction Development Reinvestment Incentive looks to incentivize new businesses that are locating within the City of Flagstaff by making a portion of the city construction contracting sales tax available for reimbursement for a variety of authorized expenses. A business may receive up to 0.5% of the construction contracting sales tax on the total taxable value of a project net of deductions. Eligible new businesses must be within one of the city’s targeted industries, create at least 10 full-time positions, and the average wage for those positions must be higher than the Coconino County median wage of $20.04 per hour.
The Sustainable Automotive Sales Tax Rebate Program is intended to strengthen the automotive industry within the City of Flagstaff while also achieving the city’s sustainability goals. Purchasers of a sustainable vehicle may receive a rebate on a portion of the city’s sales tax. The program is designed to offer higher rebates for vehicles with greater fuel efficiency, i.e. electric or hybrid, but also is available for fuel-efficient vehicles with a high mile per gallon (mpg) rating. Flagstaff locals are able to apply for a higher rebate; however, non-local purchasers can also receive a reduced rebate. Rebates are subject to the available fund balance for this program. FBN
By Jack Fitchett and John Saltonstall
Jack Fitchett is the City of Flagstaff interim business attraction manager. John Saltonstall is the City of Flagstaff business retention and expansion manager. Contact Jack Fitchett at jfitchett@flagstaffaz.gov or 928-853-5632 for more information on the business attraction incentives, and the sustainable automotive program. Contact John Saltonstall at jsaltonstall@flagstaffaz.gov or 928-606-9430 for more information on the Adaptive Reuse Program and the Business Retention and Expansion Incentive.
Our present is the most exciting time to do business in Flagstaff. Social Distance. Mask responsibly.