The City of Sayre, a municipality, desires to establish an incentive policy for new or expanding businesses for the
purpose of promoting economic development for the municipality.

The procedure shall be called the Business Incentive Policy and will apply to businesses which have an interest in
expanding an existing business or developing a new business in the corporate city limits of Sayre, Oklahoma.

The Sayre City Council has reviewed the community need for new and expanding business and determined that the
policy is in the best interests of the city.

The City of Sayre will review the need for each new or expanding business before entering into a formal agreement.
Depending on the need, the City of Sayre reserves the right to amend this policy on a case by case basis in the best
interests of the city.

1. NEW BUSINESS: A business that has never operated as a business within the corporate City limits of Sayre.
2. EXPANDING BUSINESS: A business that has operated as a business within the corporate City limits of Sayre
   during the previous six- (6) months.
3. ADVALOREM TAX BASE: The appraised value of the real property as determined by the Beckham County Assessor.
4. SALES TAXES: The amount of Sales Tax which is paid to the City of Sayre under the tax collection program of the
   State of Oklahoma
5. MAXIMUM MONETARY REBATE: The maximum amount of monetary incentive that may be paid to the new or
   expanding business.
6. FULL TIME EQUIVALENT (FTE): Each full time salaried person shall equal one FTE and each 40 hours per week of
   paid employee time shall equal one FTE.
7. MONTHLY FTE AVERAGE: Total number of FTE's on the first of each month plus the total number of FTE's on the
   last day of each month divided by 2.
8. JOB COST: The total dollar amount of all cost incurred by a New Business or Expanding Business in construction,
   including land purchase, site preparation, placement of utilities, materials, labor, equipment, etc., such cost to be
   detailed in a Job Cost report generated by the New or Expanding Business which is subject to that businesses
   internal audit.

The terms and conditions for qualifying for the monetary incentive rebate under the Business Incentive Policy are as follows:

1. The new or expanding business shall have invested in capital improvements a minimum of Two Hundred Fifty
   Thousand Dollars ($250,000.00). Acceptable documentation of the investment shall be furnished to the City Clerk of
   Sayre prior to any monetary incentive payments being made.
2. New businesses must provide a specified minimum number of new FTE's (full time equivalent jobs) by the date the
   business is opened and must maintain a specified Monthly FTE Average until the incentive rebate has been paid in
   full. Acceptable documentation of the required number of jobs must be furnished to the City Clerk of Sayre prior to
   any monetary incentive payments being made. The number of new FTE's and the Monthly FTE Average shall be
   determined on a case by case basis.
3. Expanding businesses must provide a specified number of new FTE's by the date the expansion is complete and must maintain a specified Monthly FTE Average until the incentive rebate has been paid in full. Acceptable documentation
   of the new jobs must be furnished to the City Clerk of Sayre prior to any monetary incentive payments being made.
   The number of new FTE's and the Monthly FTE Average shall be determined on a case by case basis.
4. A written Business Incentive Rebate Agreement shall be prepared and approved by the City Council of Sayre.

1. Manner of Payment: The monetary rebate payment (hereinafter referred to as "Rebate Payment") will be paid as follows:

1. For New or Expanding Businesses, annual or monthly Rebate Payments will be made as determined in the best
   interest of the business.
2. For a New Business, the Rebate Payments will be made in monthly or yearly amounts of no more than Seventy
   Five Percent (75%) of the net increase in sales tax revenues received by the City of Sayre from the new business
   during the payout period. For purposes of calculating the net increase the City of Sayre will use the average sales
   tax revenues from the business over the previous twelve-month period.
3. For an Expanding Business, the Rebate Payments will be made in monthly or yearly amounts of no more than
   Seventy Five Percent (75%) of the net increase in sales tax revenues received by the City of Sayre as a result of the expansion of the business during the payout period. For purposes of calculating the net increase the City of Sayre
   will use the average sales tax revenues from the business over the previous twelve-month period.

B. Maximum Monetary Rebate: The maximum Monetary Rebate amount shall be Six Thousand Two Hundred Fifty Dollars ($6,250.00) for the first Two Hundred Fifty Thousand Dollar ($250,000.00) investment PLUS One Thousand Two Hundred
Fifty Dollars ($1,250.00) for each additional Fifty Thousand Dollar ($50,000.00) investment, OR the sum of the Rebate
Payment made over the first thirty (30) months, whichever is LESS.

1. Condition Precedent to Payment of First Rebate Payment: Prior to the City of Sayre having any obligation to make
   payments, the business entitled thereto shall furnish the following documentation:

1. Proof of the required investment satisfactory to the City of Sayre
2. Proof that the business has employed the required number of jobs
3. An invoice showing the amount due on a form acceptable to the City.

1. Condition Precedent to Payment of Other Rebate Payments: Prior to the City of Sayre having any obligation to
   make any Rebate Payment, the business entitled thereto shall furnish the following documentation:

1. An invoice showing the amount due on a form acceptable to the City
2. Proof of the required number of jobs.

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