Kells to examine rates incentive for new businesses

Kells Town Council is to consider a three-year new business incentive scheme for vacant commercial premises in the town. Officials will look at a proposal by Cllr Sarah Reilly for the scheme which would see discounted rates for new businesses in these premises, to see if it complies with rates legislation. It was agreed at Monday might's meeting of the council that the proposal will be put forward for consideration in the council's forthcoming budget if found to comply with legislation. There was suport from her fellow councillors for Cllr Reilly's proposal, the aim of which is to encourage the occupation of vacant commercial offices, shops, warehouses and all commercial property in the Kells Town Council administrative area. The proposal would see a 50 per cent discount on rates in year one, a 25 per cent discount in year two and there would be 10 per cent off in year three. Cllr Reilly said the proposal supported local enterprise and employment through the proactive encouragement of innovation, business expansion and entrepreneurship. She said that in order to qualify for the discount, the business premises should have been vacant for a minimum of six months from the date of registration and must be registered with the rates department at commencement of the vacant period. The property must be actively marketed at an open market for rent or sale during the vacant period and the scheme would not apply to property that is in the course of redevelopment or refurbishment. All outstanding rates on the property must be paid up to date before registration can be completed. Cllr Reilly explained that the landlord and tenant must legally execute a commercial lease for a minimum of three years and if the premises closes within three years from the commencement of the lease, the local authority would be entitled to full repayment of all rebates received. She said that qualifying tenants could not sub-let or assign the property during the life time of the scheme, which would be a one-off scheme for three years only. To qualify, the businesses would have to be tax registered, must be a new business idea for the town or an expansion of an existing business and all prior outstanding rates arrears accruing to the principals/directors must be paid up to date. Tax clearance certificates must be supplied and there would be no rebate for business downsizing. "As owners of unoccupied property are entitled to a 100 per cent rebate of rates when the property is vacant, the scheme should have no cost for Kells Town Council. The scheme should create new ratepayers and provide a positive cash flow for the local authority," she pointed out. "As the property must be vacant for a minimum of six months, the scheme should encourage the occupation of non-prime property in preference to prime commercial space." Cllr Reilly said the scheme would encourage new enterprise and entrepreneurship, would support businesses seeking to grow and expand, would create direct and indirect employment as well as rates for the local authority and reduce the number of vacant premises in the town.