Commercial Incentive Scheme 2016/2017
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- Sherilyn Wilcox
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1 Commercial Incentive Scheme 2016/2017 1
2 Introduction... 3 Aims of the Scheme... 3 Qualifying Criteria... 4 Grant Details... 6 Application... 7 APPENDICIES
3 Introduction A great number of factors including the economic recession; significant changes in the retail market sector (leading to out of town retail centres); a lack of capacity of some members of the retail trade to react to changing customers needs or circumstances, reduced consumer spending and the growth in on-line shopping, have had a significant impact on the traditional retail centres in towns and villages. This has resulted in shop closures, reduced spending, reduced footfall and consequently vacant and derelict properties. The outcome is the impaired attractiveness of these towns and villages as shopping destinations and perhaps even subsequently becoming a secondary shopping alternative for many consumers. To date, Tipperary County Council has worked with traders in supporting a number of initiatives, including town and village enhancement initiatives; Tidy Town and festival supports; the establishment of retail forums which are responsible for developing, marketing and promoting retail; and other actions and supports which assist the independent retailer in increasing footfall and encouraging additional spend. It is recognised that additional alternative support measures, which are integrated with the above supports, may be required to assist in re-energising the vitality and vibrancy of the town/village centre. In order to help restore vibrancy and vitality to the town/village centre, Tipperary County Council has focussed on developing an additional mechanism to address the issue of vacant retail units in the village and town centres. Consequently, the Commercial Incentive Scheme has been designed and developed to reduce the number of vacant retail units and to stimulate a differing and engaging retail mix and experience by limiting the risk associated with the establishment of a new retail business and providing an entry point to entrepreneurs wishing to start-up in the retail industry. If successful, this will add significantly to the retail infrastructure in towns and villages, creating a more vibrant and exciting offering with subsequent increases in footfall and the restoration of the town and village centre vitality. Aims of the Scheme The scheme has a number of aims which are as follows; To reduce the number of ground and first floor vacant properties in the town/village centres. To improve the commercial offer and diversity in our town/village centres. To encourage the provision of commercial ventures local to the population. To assist in job creation and ongoing employment. To increase the rates collection for Tipperary County Council that would not otherwise be collected in order to maintain local services. 3
4 Qualifying Criteria Criteria regarding those who could avail of the scheme and the exclusion of specific sectors such as larger retailers were considered in an effort to achieve a balanced and fair scheme. Qualifying Applicant A person or company occupying a Qualifying Use in a Qualifying Location can submit an application at anytime. However successful applicants will not be entitled to drawdown the grant prior to a minimum period of 4 months from commence of business. The applicant must provide evidence that all rates 1, contributions and local authority charges payable by them are fully paid up on all property within the Tipperary County Council administrative area. The applicant must be the owner or leasee of the subject unit for a minimum of 12 months and have a current Tax Clearance Certificate. The applicant may not avail from another scheme under the local authority to incentivise its choice of location. The applicant must provide evidence of the appropriate permissions and consents for the proposed use. Qualifying Location To qualify for the Commercial Incentive Scheme, the subject unit must be located on lands zoned for Town Centre or Village Centre use within the administrative area of Tipperary County Council 2. The qualifying location is also subject to the following criterion; The subject site must be an existing ground or first floor unit located on lands zoned for Town/Village Centre use. The subject unit must have been vacant and offered on the open market for sale or lease for a minimum period of six months immediately prior to the occupation by the applicant for the qualifying use. The subject unit must be rated or rateable 3. The subject unit must have the appropriate permissions and consents for the proposed use. All rates, contributions and local authority charges are fully paid up 4 or the property has qualified for vacancy 5 in the prior financial year. 1 In instances where the premises has outstanding rates, but these were incurred before the new tenant took occupancy, an application for Write-Off under rates of vacant hereditament can be made Rates are the financial contribution business owners and occupiers make to the upkeep and quality of life of the local community. The types of property upon which rates are charged include shops, offices, factories, warehouses, hotels, licensed premises etc. The rateable valuation of a property is determined by the Commissioner of Valuation. The rateable valuation is used by the local authority to determine the commercial rates payable by each ratepayer. 4 The local authority recognises the financial challenge that this condition imposes on start-up businesses given their financial constraints. As such, in certain circumstances where applicants to the scheme are deemed suitable and if it is deemed appropriate, a letter outlining the applicant s acceptance in principle will be issued to assist the applicant in accessing bridging finance from their financial institution. 4
5 Qualifying Use The property to which the application relates to must be an existing permitted development. The property will not qualify for inclusion in the Commercial Incentive Scheme if it has been subject to change of use from residential to retail in the two years previous to the application. The property must have the appropriate planning permission/consent or be compatible with the exempted development classes of use set out in the Planning & Development Regulations, , as amended and any amendment thereof. The subject site for retail use must be an existing ground or first floor unit located on lands zoned for town/village centre use. The subject site for office based businesses or services use must be an existing first floor unit located on lands zoned for town/village centre use or an established and permitted ground floor office use on the date of the commencement of the scheme. A list of non qualifying uses is set out in the Table below: Amusement arcades or Premises with gaming machines. Adult shops Any premises where there is unauthorised development or which are subject to enforcement proceedings E-Cigarette Shops For Ground Floor Units Office based businesses and services 7 Nightclubs Private members clubs End of lines/closing down/ Euro Store/Discount Stores Off-licence Pop-up Shops Multiples & Franchises Cash for Gold or Cash for clothes shops Betting offices Moneylenders/ Banks Head shops Charity Shops Takeaways In addition, applicants would be deemed unsuitable if: 5 In cases where the property is vacant at the making of the rate the liability lies with the person entitled to occupy the property at the making of the rate (the leaseholder or if there is no lease - the owner). However, a vacant property may qualify for exemption from rates if the following conditions are met at the making of the rate; The bonafide inability of the landlord to obtain a suitable tenant at a reasonable rent The execution of repairs/alterations Declaration and submission of supporting evidence confirming the fulfilment of either of the above conditions Except in cases where the property to which the application relates to is an existing permitted development and complies with the appropriate planning permission/consent or is compatible with the exempted development classes of use set out in the Planning & Development Regulations, 2001, as amended and any amendment thereof. 5
6 The proposed use has been open for trade by the applicant in the defined qualifying location within a 2 year period prior to the occupation of the unit subject to application for grant aid under this Scheme. The proposed use does not have an active street frontage with clear glazing into the unit at ground floor level and internal activity visible from the street 8. Grant Details The following is a breakdown of the grant payable to the successful applicant over the course of three years. End of Year 1 Grant payable equivalent to 75% of rate paid for subject year End of Year 2 Grant payable equivalent to 50% of rate paid for subject year End of Year 3 Grant payable equivalent to 25% of rate paid for subject year Each year a new application must be submitted and the required information must be attached in order to be appraised and a decision made on the specific year in question. CIS Payment The payment of the grant to successful applicants under the Commercial Incentive Scheme implemented will be based on a rates/calendar year. Commercial Incentive Scheme Marketing Strategy In order for the Commercial Incentive Scheme (CIS) to be successful, an integrated marketing strategy has been developed to create awareness and induce demand. The strategy includes the development of a database of Auctioneers for distribution, the use of infographics, social proofing and social media technologies. Application Applications will be accepted electronically and by post. Forms can be downloaded and the application form with supporting documentation can be submitted electronically to the suggested address, CIS@tipperarycoco.ie. 8 Except in cases where the property to which the application relates to is an existing permitted development and complies with the appropriate planning permission/consent or is compatible with the exempted development classes of use set out in the Planning & Development Regulations, 2001, as amended and any amendment thereof. 6
7 The initial application must be accompanied by the following supporting material: Completed Application Form. Proof that the premises was vacant and offered for a minimum of 6 months Copy of Current Tax Clearance Certificate Evidence that the premise has an active shop front with unhindered view into the shop unit if on the ground floor. Evidence of permissions/consents for the proposed use. Statement confirming that the business is new and not just relocating. Please note that the following will be required to process the final application: Evidence of ownership of unit (e.g. Land Registry Certificate) or 12 month lease agreement. Evidence of payment of contributions (if applicable), rates and local authority charges. Tipperary County Council Supplier Setup Request Form. 7
8 Application Form and Supporting Documentation 8
9 Commercial Incentive Scheme Application Form 1 Applicant Name Applicant Details (If company provide details of owner(s)/directors) 2 Applicant Address 3 Contact Telephone Number 4 Contact Address Details of Unit 5 Address of property for which application is being made: 6 Extent of property owned/occupied (Please tick all relevant floors) 7 Extend of ground floor commercial area Basement Ground 1 st Floor 2 nd Floor 3 rd Floor 4 th Floor square metres Extend of first floor commercial area square metres 8 Is the property owned or leased by the applicant (please provide Land Registry docs and folio map or full Lease Details including lease map) 9 Length of time the unit has been vacant. (Please complete the attached Vacancy form from Rates Section and provide evidence of vacancy for six months prior to occupation. Please note that Vacancy Report should be witnessed/signed by a Peace Commissioner/member of an Garda Siochana) Owned Leased for years 9
10 Details of Proposed Use 10. Does the property in question have planning permission for the proposed use? (Please provide Planning Application number) Please delineate the property in red on the Town Development Plan Map 11 Does the proposed use comply with the permitted use or is there a change of use? OFFICE USE ONLY 12 Date of Final Grant of Permission 13 What is the proposed use of the unit? 14 What will be sold in the unit? (List items to be retailed) 15 What stage is the business at? (pre-start up, start-up, growth) 16 Please confirm that the proposed use is not associated with any chain or franchise. 17 Have you (the applicant or company or a connected person) registered a similar business within the last two years and if so, where? Please state Name/Number, Street, Town) 18 Please attach a photograph of the front of the shop and a note regarding what the shop window will look like when it is open 10
11 Financial Details 19 Give the receipt number or attach copies of receipts for the following (if applicable) paid for the subject site: Development Contributions Water charges for applicable year Rates for applicable year Tick as relevant 20 Please complete the attached de Minimis grant aid form 21 Taxation Registration Number Further Information 22 Use this section to submit any other details to support your application I declare that: Declarations The information provided by me in this application is truthful and accurate and this property has not been open for trade by myself in the two years preceding this application: Signed (by Applicant): Date: Please note that information provided on this form may be shared with other local authorities or public bodies. 1. Signed Application Form Checklist 2. Under the De Minimis Regulation (EC) No 1998/2006 a declaration has been signed by the applicant 3. Signed Declaration of Vacant Property 4. Taxation Registration Number 5. Evidence that All rates, contributions and local authority charges are fully paid up. 6. Evidence that property owned or leased by the applicant for a minimum of 12 months (please provide Land Registry docs and folio map or full Lease Details including lease map) 7. The proposed has an active street frontage with clear glazing into the unit at ground floor level. (Please provide Photographic Evidence) 11
12 Tipperary County Council Declaration of Vacant Property for Rates Purposes Please complete the relevant sections and return it together with documents in support of your application: 1. Applicant Name: Address: Customer No: Tax/Vat No: PPS No: Phone No: Mobile No: 2. Location of Townland: Property No: Premises: Lot No: Valuation (This information is available on your Rate Demand) 3. Period of Vacancy: From: to 4. Reasons for Vacancy: (a) Unable to obtain a tenant. Section A overleaf 5. Statutory Declaration I hereby declare that I am the owner of the premises, the subject of this claim. The premises became vacant on day of 20 and remained wholly empty and unoccupied as shown at Section 3 above by reasons of the fact that: (a): I was, bona fide, unable to obtain a suitable tenant therefore, in the case of the Hereditament to which the Rent Restrictions Acts apply, at the maximum rent permitted under these Acts. Details of my efforts to obtain a tenant are given over leaf in Section A. Or (b): I was unable to let this hereditament to which the Rent Restrictions Acts do not apply at a reasonable rent. Details of my efforts to obtain a tenant are given overleaf in Section A. I make this solemn declaration for the satisfaction of Tipperary County Council, conscientiously believing the same to be true and by virtue of the Statutory Declaration Act, Signature of Applicant Date: Declared before me by the applicant who is known or has been identified to me personally. Signature of Peace Commissioner/Garda Date: 12
13 THE FOLLOWING SECTION MUST ALSO BE COMPLETED SECTION A: Premises unoccupied due to Inability to Obtain a Tenant Were the premises erected before or after the 7 th May, 1941? BEFORE or AFTER Rents permitted under Rent Restrictions Acts: If premises are not controlled under Rent Restrictions Acts, state rent at which they were last let: State the rent sought in respect of the period during which premises were occupied. State the steps taken to obtain a suitable tenant: Documents to be submitted with this Application: The following documents whichever are appropriate: 1. Press Advertisements 2. Letting Notices 3. Estate Agent s or Auctioneers Certificate. 4. Copy of page from website. (NOTE: DOCUMENTS WILL BE RETURNED ON REQUEST) Additional Documentation in support of your declaration may be submitted, if so desired. 13
14 TIPPERARY COUNTY COUNCIL Rates on Relevant Property Application for Write Off due to property being Vacant and for Letting. Certification by Auctioneer/Estate Agent: 1 Property Address Property Details 2 Unit No if applicable 3 Description of Property as per advertisement 4 Date(s) of Advertisement of Notice(s) 5 Is it displayed on a website? If so, what website? 6 Date property was entered on your books for lease/let: 7 Date that property was removed from your books for lease/let: (if applicable) 8 Was the property for sale during the period? 9 Rent being sought for the property 10 Is there a sign displayed on the property stating that it is available for letting? State location of sign at the premises? 11 Expressions of interest, if any (Give details on separate sheet if necessary) 12 Outcome of expressions of interest. Response of Owner/Landlord Agent s Name/Business Name Agent s Business Address Agent Details I certify that the details as supplied in relation to this property are true and correct. Agent s Stamp Signature: Print Name: 14
15 Monitoring of de Minimis Aid This form MUST be completed by all applicants for the Commercial Incentive Scheme In accordance with the De Minimis rule (Commission Regulation (EC) 1998/2006) the overall limit of De Minimis aid shall not exceed 200,000 over any three year period. State aid rules for the EU provide that small amounts of aid, up to 200,000 in any three-year period to any one firm, are regarded as too small to significantly affect trade or competition in the EU. Such aid is classified as De Minimis aid. Various schemes of this type are operated in Ireland by a range of Departments and agencies. The De Minimis rule applies to both the project and the promoter. Whether funding constitutes De Minimis aid depends entirely on the proposed activity. The De Minimis rule applies to all initiatives involving economic activity. It is necessary therefore for applicants to the CIS to inform the Council as to the amount of public aid received over the last three years. SECTION A: To be completed if you received public funding from any source over the past three years. I confirm that I have / my company / organisation has been granted the following De Minimis aid within the past three years (details to be supplied). Name of organisation(s) providing the aid: Amount of Aid Received: Date grant was awarded: Items for which Aid was received: (Please provide additional pages if necessary) Signed: Date: 15
16 SECTION B: To be competed if you have not received funding from any Public source in the past three years. I confirm that I /my company / organisation have not received De Minimis aid within the past three years. Signed: Date: To be completed by ALL Applicants Declarations and Signature I declare that the above information and details are accurate and true to the best of my knowledge and belief and I make this application for grant assistance on the basis of the information and details given. Signed: Date: 16
17 Tipperary County Council, Civic Offices, Emmet Street, Clonmel, Co. Tipperary Tipperary County Council, Civic Offices, Limerick Road, Nenagh, Co. Tipperary t e e mark.o 17
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