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APPROPRIATION COMMITTEE REPORT TO THE JUNE 2013 STM a duration that can range from 5 to 20 years. This makes it somewhat difficult to compare TIFs directly, but some basic comparisons are possible. The terms of a TIF are often summarized by two numbers: • the net discount percentage for tax relief on the increment in assessed value, and • the number of years over which the tax relief is granted. Thus, the VistaPrint TIF Agreement granted a 20% reduction over 13 years, and the uniQure TIF would be 18.61% over 10 years, but these numbers alone do not convey the actual magnitude of the TIF. One must also consider the tax revenue that the Town stands to gain as a result of the new development, and the potential tax relief granted under a TIF Agreement. The following table presents all these attributes for the three TIF Agreements that Lexington has considered to date. TIFs in Lexington The dollar amounts in the previous table are all based on estimates derived at the time the TIF was grant- ed. For Shire Human Genetics Therapies, the actual increment in assessed value as of FY2013 is approx- imately $105,000,000. This has resulted in tax revenue to the Town above the original estimate, and cor- responding tax relief to Shire. For VistaPrint, the development required under the TIF Agreement has not occurred. Cnnclminn The TIF Agreement offers a modest reduction in property tax revenue on proposed property improve- ments as an incentive to uniQure to carry out the improvements and locate its U.S. operations in a part of Lexington that is economically depressed. The Town and our residents would benefit from: • The availability of new employment opportunities; • Occupation of vacant building space in an area (Hartwell Avenue) with a vacancy rate that is much higher than the average for the region; • Modest traffic impact given a low- density development in terms of number of employees; • An upgrade of the building space from "office" to "lab /office" which is generally assessed at higher rates; • A resulting increase in property tax revenues; and • Opportunities for growth in the immediate vicinity of the space used by uniQure, should uniQure need additional space in the future. The Committee Recommends Approval of this request (8 -0) Increment Duration Estimated Net TIF Estimated Granted To Date in Assessed (Years) Incremental Discount Tax Relief Value Tax Shire Human Oct. 2007 $76,450,000 20 $37,082,000 21.8% $8,084,000 Genetics Therapies VistaPrint Nov. 2012 $22,899,000 13 $6,018,000 20.0% $1,204,000 uniQure $5,057,000 10 $1,535,700 18.6% $286,000 The dollar amounts in the previous table are all based on estimates derived at the time the TIF was grant- ed. For Shire Human Genetics Therapies, the actual increment in assessed value as of FY2013 is approx- imately $105,000,000. This has resulted in tax revenue to the Town above the original estimate, and cor- responding tax relief to Shire. For VistaPrint, the development required under the TIF Agreement has not occurred. Cnnclminn The TIF Agreement offers a modest reduction in property tax revenue on proposed property improve- ments as an incentive to uniQure to carry out the improvements and locate its U.S. operations in a part of Lexington that is economically depressed. The Town and our residents would benefit from: • The availability of new employment opportunities; • Occupation of vacant building space in an area (Hartwell Avenue) with a vacancy rate that is much higher than the average for the region; • Modest traffic impact given a low- density development in terms of number of employees; • An upgrade of the building space from "office" to "lab /office" which is generally assessed at higher rates; • A resulting increase in property tax revenues; and • Opportunities for growth in the immediate vicinity of the space used by uniQure, should uniQure need additional space in the future. The Committee Recommends Approval of this request (8 -0)