Commercial Development Incentive Program (CDIP)
The City of Auburn’s Commercial Development Incentive Program (CDIP) was adopted and approved by the City Council in August 2011. The Program is governed by Amendment 772 to the Alabama Constitution, which allows municipalities to rebate a portion of sales and use taxes as a way to attract, recruit, and retain businesses. The CDIP is a performance-based incentive program. Projects receiving rebates must be productive and produce sales and use taxes in order for taxes to be rebated.
Projects eligible for consideration in the CDIP include but are not limited to new commercial projects on vacant property, redevelopment of existing commercial space to recruit new business, revitalization of existing retail space that would contribute to larger City initiatives such as Renew Opelika Road, or the redevelopment of other key commercial areas within the City.
Each incentive package is tailored to the individual applicant and project. Project costs, investments above and beyond a standard scope of work, and enhanced features are considered as well as a thorough financial analysis of sales projections before a recommendation is made to City Council for approval. The rebate is generally capped both annually and for a defined period of time. Each project application is also presented to the Commercial Development Authority (CDA) for architectural review prior to going before City Council for approval.
For more information about the CDIP please contact Kevin Howard.