Agenda Date: 11/10/26
Subject:
Title
Economic Partnership Incentive Policy Follow-Up Discussion
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Rachel King, Economic Development Director |
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Presentations: |
Rachel King, Economic Development Director |
PURPOSE:
To discuss Littleton’s Economic Partnership Incentive Policy as directed by City Council during the September 15, 2026 City Council meeting.
LONG-TERM OUTCOME(S) SERVED:
Vibrant Community with Rich Culture; Robust and Resilient Economy; High-Quality Governance
DISCUSSION:
On September 15, 2026, Littleton City Council (“Council”) adopted a series of minor changes to Littleton's existing Economic Partnership Incentive Policy (“EPIP” or “the Policy”), that helped clarify the Policy’s original intent - to provide guidance to staff and council without being overly strict or prohibitive in its application, and to acknowledge the previously-included “special circumstances” within the Policy that address unique projects that don’t fit the other criteria. The purpose of these changes was to protect Littleton’s interests in matters regarding the negotiation of business incentives utilized to secure strategic business attraction agreements. Business attraction tools such as incentives are a common strategy deployed by municipalities, particularly those experiencing either strong growth or strong declines, to guide future growth and meet strategic goals for the benefit of the city’s residents, businesses, and government.
During the September 15 the session and prior to the adoption of these recent changes, Council directed staff to bring an additional discussion in a study session to address considerations for advanced notice to Council and public awareness of these items. While Council largely acknowledged the need for staff to retain flexibility in both the composition of incentive packages and the confidentiality and process required by certain highly competitive negotiations, they expressed a desire to also acknowledge knowledge and discussion when feasible.
Policy Update Considerations
In response to the above discussion, staff is providing Council three options regarding another update to the EPIP, to acknowledge Council’s interest in additional discussion and public awareness of proposed incentive agreements.
Specifically, the three options are:
1) Not direct an amendment to the EPIP to expressly add language regarding the intent to provide advanced discussion when feasible;
2) Direct an amendment to the EPIP to expressly add the language: “When feasible, and provided it does not compromise Littleton’s competitiveness or negotiating position, staff will present proposed incentive agreements to Council for discussion and public awareness before bringing them forward for a formal vote.”
3) Direct an amendment to the EPIP to expressly require advance notice to the Council and public within a minimum timeframe that would include time for a study session and the associated release of study session agenda packet materials (12 days prior toi final consideration, per the City’s standard packet timeline).
Staff’s recommendation is option 1, as it is the current practice. Staff has an obligation to act in the best interests of the City, and thus every effort is made to provide an opportunity for review and feedback by Council to agreements as being considered. Adding language can confuse or concern businesses who may be looking to expand their business in multiple locations and are comparing process hurdles between municipalities. It also continues to provide staff discretion as needed when competitive market conditions would make additional discussion and publicity detrimental to Littleton’s interests or position.
Options 2 and 3 present a higher risk to the City, with option 2 providing some risk - again, concern or confusion for businesses - and option 3 being high risk, as this would be detrimental to Littleton’s competitiveness.
BACKGROUND:
In the September 15, 2026 City Council meeting, Council approved changes to the Economic Partnership Incentive Policy that clarify the intention of flexibility within the policy. Council also requested that staff bring a future item to a study session for discussion, regarding the topic of advanced notice or additional discussion time with council for incentive agreement opportunities.
Prior Actions or Discussions
September 15, 2026 - City Council approval of Resolution 61-2026
FISCAL IMPACTS:
N/A
STAFF RECOMMENDATION:
N/A
ALTERNATIVES:
N/A