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HomeMy WebLinkAboutResolution No. 90-11 CITY OF THE (X)LONY. TEXAS RESOLUTION NO. c~-~// A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS AMENDING GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT AGREEMENTS AS ESTABLISHED BY RESOLUTION 89-03 APPROVED BY THE CITY COUNCIL ON THE 9TH DAY OF JANUARY 1989 BY ADDING SECTION VIII PROVIDING CONFIDENTIALITY OF PROPRIETARY INFORMATION. ~IEREAS, the enhancement of the local economy is in the best interest of the citizens of The Colony, Texas; and WHEREAS, offering certain economic development incentives may encourage prospective businesses and companies to locate in The Colony, Texas, or existing businesses and companies to expand; and WHEREAS, the establishment of specific criteria, guidelines and procedures are necessary to effectively and fairly administer the economic development incentives; and WHEREAS, State Law requires the adoption of criteria and guidelines governing the establishment of tax abatement agreement s: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That all of the above premises are found and determined to be true and correct and are incorporated into the body of this Resolution as if copied in their entirety. Section 2. The City of The Colony, Texas, pursuant to the Property Redevelopment and Tax Abatement Act,(Artiole 1066f, Section 2A(a), Vernon's Texas Civil Statutes, as amended), hereby establishes the Comprehensive Policy Statement for Economic Development Incentives, which is attached hereto as Exhibit "A" and incorporated herein for all purposes. Section 3. The criteria and guidelines established within the Comprehensive Policy Statement for Economic Development Incentives, as it exists or may be amended, shall govern ail tax abatement agreements. DtJLY PASSED AND APPROVED ~his-~~/day of ~,~ 1990. --~,' ' Don ay / Patti A. Hicks, City Secretary APPROVED AS TO FORM: John Boyle, City Attorney CITY OF THE COLONY POLICY STATEMENT FOR ECONOMIC DEVELOPMENT INCENTIVES I. GENERAL PURPOSE AND OBJECTIVES The City of The Colony is committed to the promotion of high quality development in all paris of the City; and to an ongoing improvement in the quality of life for its citizens. Insofar as these objectives are generally served by the enhancement and expansion of the local economy, the City of The Colony will, on a case-by-case basis, give consideration to providing incentives as a stimulation for economic de;velopment in The Colony. All applications for tax abatement mffst be for commercial and/or industrial improvements. Tax abatement applies to both new facilities and structures and for the expansion or modernization of existing facilities and structures. No type of residential developments will be considered for tax abatement. It is the policy of the City of The Colony that said consideration will be provided in accordance with the procedures and criteria outlined in this document. Nothing herein shall imply or suggest that the City of The Colony is under obligation to provide any incentive to any applicant. All applicants shall be considered on a case- by-case basis. II. OBJECTIVE CRITERIA Following is an objective scoring scale designed to evaluate a number of specific components dommon to all applicants. It assigns points based upon comparable economic impact. Objective scoring must exceed 125 points before application will be considered. A. How many existing jobs will be brought to The Colony (i.e., job ~ransfers)? Assign 1 point per 10 jobs. B. How may new jobs will be brough~ to The Colony (i.e., new hires in the local economy)? Assign 1 point per 10 jobs. C. How much local annual payroll will be created? Assign 1 point per $100,000 of payroll. D. How much local annual sales tax revenue will be directly generated (only applicable ~o retail businesses)? Assign 1 point per $1,000 in local sales tax collections. E. How much property tax base valuation is added? · Assign 1 point per $100,000. III. SUBJECTIVE CRITERIA In addition to the objective criteria for which specific point values can be assigned, several additional considerations must be evaluated. The applicant is asked to respond in written narrative format to those items listed. A. What types and values of public improvements, if any will be made by the applicant? B. Will the occupants of this project be owners or lessees? C. Does, or can, the project meet all relevant zoning, subdivision and other legal re, quirements? D. What impact will the project have on other taxing entities (schools in particular)? E. Are the new jobs to be created likely to be filled by The Colony residents (i.e., appropriate demographic profile)? F. Does the proj ect provide particular benefit to an economically ailing area of our City? G. Will the project compete with existing businesses to the detriment of the local economy? H. Will the project substantially increase the business opportunities of existing local suppliers and contractors? I. Is the project consistent with the Comprehensive Plan of the City of The Colony? J. Does the project bring undesirable environmental pollution to the City of The Colony? IV. TYPES OF INCENTIVES AVAILABLE It is the policy of the City of The Colony to customize the provisions of economic development incentives on a case-by-case basis. This individualized design of a total incentive package is intended to allow maximum flexibility in addressing the unique concerns of each applicant while enabling the City to better respond to the changing needs of the community. Consideration will be given to providing an~ type of economic development incentive not prohibited by State or Federal law including but not limited to: tax abatement, tax increment financing, and no- cash=value benefits, as well as participation in infrastructure and waiver of fees, as allowed by law. The provision of any incentive will be subject to the procedural and other incentive will be subject [o the procedural and other requirements outlined in this document as well as those mandated by State or Federal law, and by other actions of the City Council of the City of The Colony. V. VALUE OF INCENTIVE PROVIDED The objective and subjective criteria outlined in SEctions II and III above will be used to determine whether it is in the best interests of the City of~ The Colony to provide economic development incentives to a particular applicant. The degree to which the specified project furthers the goals and objectives of the City of The Colony, and the relative impact of the specified project will be used to determine the total value of the incentives provided. As a general rule, no incentives will be provided to any applicant in an amount exceeding the value calculated in Subsection A or Subsection B below. A. No incentive shall be provided which exceeds one percent (1%) of the gross taxable valuation the project adds to the City of The Colony property tax roll. 1. Gross taxable valuation' shall be calculated based upon the estimated value of structure, personal property and land not on the property tax roll in the year the application is filed, but projected to be on the tax roll the first year of operation. 2. The first year of operation shall be defined as the first year personal property values are placed upon the City of The Colony property tax roll. B. No incentive shall be provided which exceeds the amount of property tax revenue the City is projected to receive from the project within four (4) years. 1. The four (4) year p~riod shall be calculated from the date operations are ini£iated. Initiation of operations shall be deemed to occur during the year in which personal property is first projected for inclusion on the City of The Colony property tax roll. VI PROCEDURAL GUIDELINES Any person, organization or corporation desiring that the City of The Colony consider providing economic development incentives to encourage location or expansion within the city limits of The Colony shall be required to comply with the following procedural guidelines. Nothing within these guidelines shall imply or suggest that the City of The Colony is under obligation to provide any incentive to any applicant. Disclosure of the terms to be presented to a person, organization or corporation desiring economic development incentives, and that qualifies for such incentives, shall be made to the full Council in a Closed Door Session, before the terms are presented to the person, organization or corporation making the request. Preliminary Application Steps A. Applicant should complete the following attached forms: 1. Application for Economic Development Incentive 2. Economic Development Incentive Objective Criteria Worksheet. B. Applicant should address all subjective criteria listed in Section III above in letter format. C. Applicant should provide a plat showing the precise location of the property, all roadways within 500 feet of the site, and all existing zoning and land uses within 500 feet of the site. D. If the property is described by metes and bounds, a complete legal description should be provided. E. Applicant should complete all forms and information detailed in Items 1 through 4 above and submit to the City Manager. Application Review Steps F. All information submitted as detailed above will be reviewed for completeness, accuracy and the rationale for projections made. Additional information may be requested as needed. G. The application will be distributed to the appropriate departments for internal review and comments. Additional information may be requested as needed. H. The application will be reviewed in light of the criteria for considering economic development. I. Copies of the complete application package and staff comments will be provided~to the other appropriate taxing entities. Consideration of the Application J. City Council will .discuss the application and all staff comments at a regular work session. If needed, a City Council Committee ~ill be appointed to meet with the applicant. K. At a subsequent regular City Council meeting all necessary legal documents will be considered for approval following evaluation of all relevant staff and City Council Cowmittee recommendations and reports. L. If the economic development incentive under consideration is tax abatement, additional ~teps, including a public hearing, must be incorporated into ~he process. These procedures are mandated by State law and are detailed in the Property Redevelopment and Tax Abatement Act (Article 1066f, Vernon's Texas Civil Statutes). VI I. EXECUTION OF AGREEMENTS Should the City Council determine that it is in the best interests of the City of The Colony to provide economic development incentives to a particular applicant, a resolution shall be adopted declaring that under the guidelines and criteria established herein, the application is eligible for economic development incentives. The resolutior~ shall further authorize the City Manager to execute a contract with the applicant governing the provision of the incentives. Any agreement so adopted must include at least the following specific items: Description of the type of incentive provided Amount of the incentive Method for calculating the value of the incentive Duration of the incentive Legal description of the property Type, number and location of planned improvements VIII. CONFIDENTIALITY OF PROPRIETARY INFORMATION Information that is provided to the City of The Colony in connection with an application or request for tax abatement in accordance with the above criteria and guidelines and which describes the specific process or business activities to be conducted or equipment or other property to be located on the property for which the tax abatement is sought is confidential and not subject to public disclosure until the tax abatement agreement is executed. The information in the custody of the City of The Colony after the agreement is executed is not confidential.