HomeMy WebLinkAboutOrdinance No. 2011-1934CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2011-1934
AN ORDINANCE F THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS ADOPTING THE COMPREHENSIVE ECONOMIC
DEVELOPMENT POLICY ATTACHED HERETO AN
INCORPORATED HEREIN A EXHIBIT "A PROVIDING A
REPEALER CLAUSE; AND PROVIDING FOR AN EFFECTIVE BATE.
WHEREAS, the City Council of the City of The Colony (the "City Council' and
the "City") finds it in the best interest of the City to adopt a Comprehensive Economic
Development Policy for the City and The Colony Economic Development Corporation (the
"TCEDC") and The Colony Community Development Corporation (the "TCCDCC") in order to
reflect changes in the lays providing for certain economic development incentives described
therein which will provide the City, TCCDC, and the TCCDC with maximum flexibility in
negotiating economic development incentives for qualified projects to encourage economic
growth and expand the local economy of the City; and
WHEREAS, the City Council desires to repeal and replace the existing The
Colony Economic Development Corporation/City of The Colony Comprehensive Policy
Statement of Economic Development Incentives (the "Prior Economic Development Policy")
with the Comprehensive Economic Development Policy; and
WHEREAS, the City Council has adopted Ordinance No. 2011-1935 on
November 15, 2011 establishing a program to provide economic incentives pursuant to Chapter
380 (the "Chapter 380 Incentive Program") to provide incentives in the form of grants, loans,
use of City's personnel or services, or a combination thereof; and
WHEREAS, Section 312.002(c) of the Texas Tax Code, as amended, requires a
3f4ths vote of the City Council of the City of The Colony, Texas to approve the Comprehensive
Economic Development Policy, a copy of which is attached hereto as Exhibit A and is
incorporated by reference as a part of this Ordinance for all purposes, and upon such approval.
the Comprehensive Economic Development Policy shall be effective for a two-year period
through November 15, 2013.
NOW 'T'HEREFORE, BE IT ORDAINED BY THE CI'T'Y COUNCIL OF
THE CITY OF THE COLONY, TEXAS;
SECTION 1. That the Comprehensive Economic Development Policy, which is
attached as Exhibit A and incorporated herein by reference for all purposes, is hereby adopted
for the purpose of providing economic incentives for qualified projects to encourage economic
growth and expansion of the local economy of the City.
SECTION 2. That the Comprehensive Economic Development Policy repeals and
replaces the Prior Economic Development Policy, provided, however, that all applications
submitted and all economic incentives agreed to under the Prior Economic Development Policy
95300015.1/11.108583 - 1
prior to the adoption of this Ordinance shall remain valid and binding on the applicant, the City,
TC .DC, and/or TCCDC, as applicable.
SECTION 3. All ordinances, orders, or resolutions, or parts thereof, which are in
conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of
such conflict and the provisions of this Ordinance shall be and remain controlling as to the
matters contained herein.
SECTION 4. It is officially found, determined and declared that the meeting at which
this Ordinance is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Ordinance, was
given, all as required by Chapter 551 of the Texas Government Code, as amended.
SECTION 5. This Ordinance shall become effective irnnrediately upon its passage..
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953000€5.1111108583 - 2 -
PASSED AND APPROVED BY THE CIT'E' COUNCIL OF THE CITY OF
THE COLONY, TEXAS, THIS THE 15TH DAY OF NOVEMBER, 2011.
ATTEST:
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kl~~fj).,~, 1~,~4 -)AJ
stie Wilson, City Secretary
APPROVED AS TO FORM:
Jeff Moore, City Attorney
SE.~L
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95300015.111 1 1 08583 S-1
APPENDIX
COMPREHENSIVE ECONOMIC DEVELOPMENT POLICY
95300015.1 A-1
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COMPREHENSIVE ECONOMIC DEVELOPMENT POLICY
for the City of The Colony, Texas,
The Colony Economic Development Corporation, and
The Colony Community Development Corporation
THE COLO1\1'1' BUSINESS RELOCATION AND EXPANSION PROGRAM
The City of The Colony (the "City") wants to grow and develop a quality city in the
Dallas/Fort Worth region. In order to encourage economic grou.-th and expansion of the local
economy, the City and/or The Colony Economic Development Corporation ("TCEDC}) or The
Colony Community Development Corporation ("TCCDC", and together with TCEDC the
"Corporations") may provide economic incentives for qualified projects pursuant to state law in
accordance with this policy. The City anchor the Corporations as mlicable will consider
nroiects on a -case-by-case basis. This individualized design of a total incentive package allows
maximum flexibility in addressing the unique aspects of each applicant. Economic development
incentives will be provided by contract with the applicant, and shall be subject to procedural and
other requirements set forth in such contract as well as applicable federal, state and local law.
Any person, organization or corporation desiring that the City and/or the Corporations consider
providing economic development incentives shall be required to comply with the following
guidelines. Nothing in these guidelines shall imply or suggest that the City, TCEDC, or TCCDC
is under any obligation to provide any economic development incentive to any applicant. The
purpose of this policy is to establish guidelines for providing economic development incentives.
Notwithstanding these guidelines each of the City, TCEDC, and. TCCDC retains the right to
take any action allowed by law without the necessity of amending these guidelines.
INCENTIVE PROGRAMS
Tax Abatement
Tax Abatement may be offered for improvements to real property and/or for business
personal property. Tax abatements do not apply to land. Tax abatements for improvements to
real property may be offered to an applicant that pursues the construction of a new or expanded
facility to house the applicable project. The tax abatement will apply to the taxable value of the
new or expanded improvements. Tax abatement for business personal property may be offered to
an applicant that pursues the purchase or long-term lease of existing or new facilities. The tax
abatement for business personal property will apply to the taxable value of the business personal
Revised 11-15-11 A-1
property added to the facility after the execution of the tax abatement agreement. In order to
qualify for City tax abatement, the project must meet all the criteria set forth in the City of The
Colony policy statement for Tax Abatements (Exhibit B).
Sales Tax Grants
The City collects 2% sales tax on any taxable retail sale made in the city limits, I% goes
into the City's general fund and the remaining 1% is divided equally between TCEDC and The
Colony Community Development Corporation. The City may provide an economic development
incentive consisting of annual grants based on a percentage of the sales and use tax received
("sales and use tax receipts") by the City from the sale of taxable items by the applicant
consummated in the City. The City is authorized by Chapter 340, Texas Local Government
Code, as amended, to provide such grants.
The TCEDC is authorized by the Development Corporation Act, Subtitle CI of the Texas
Local Government Code, as amended, to provide such grants but is limited with retail clients to
utilizing the funds for infrastructure improvements and training. The applicant will be required to
provide a sales tax certificate setting forth the applicant's collection of sales and use tax for the
sale of taxable items consummated at the applicant's business location in the City, together with
such supporting documentation as may be required by the City and/or the TCEDC.
The City and the TCEDC will not be required to provide any grant for any period during
the term of the agreement for which the City and the TCEDC have not received sales tax revenue
from taxable sales by the applicant for such period.
TriWe Freeport Tax Exemption
The Triple Freeport Tax Exemption allows local governing bodies the option to exempt
personal property consisting of goods, wares, merchandise or ores other than oil, natural gas and
petroleum from property taxes. To be eligible, property must be transported out of the state
within 175 days of acquisition, but it may first be assembled, stored, manufactured, processed or
fabricated locally. All three taxing entities, the City, the Lewisville Independent School District
and Denton County, offer the Triple Freeport Tax Exemption.
Tax Increment Financing Zone (TIF)
The City may designate a tax increment reinvestment zone (a "zone") under Chapter 311
of the Texas Tax Code, as amended. This incentive may be used to finance improvements in the
zone that will significantly enhance the value of all the taxable real property in the zone and will
be of general benefit to the city. Once a city has initiated tax increment financing other taxing
units such as counties and school districts may elect to participate, however, school districts are
not likely to participate since the State Comptroller will not reduce taxable property value for
school districts to reflect tax increment financing losses for zones that are created on or after
September 1, 1999 for purposes of state school funding. As the improvements in the zone
generate higher appraised values on real property in the zone, the tax revenue collected from the
increase in property value is then dedicated to a special fund (the "Tax Increment Fund") to pay
the cost of projects within the zone. Additionally, increases in sales tax revenue attributable to
the zone may also be dedicated to the Tax lncrement Fund to pay the costs of projects within the
zone. The cost of improvements is repaid by contribution of future tax revenue by each
participating taxing unit that levies property taxes against the property. Each taxing unit may
choose to participate in the zone, and may choose to dedicate all, a portion or none of the tax
Revised 11-15-11 2
revenue from the increases in property values and sales tax revenues in the zone to the Tax
Increment Fund. The board of directors for the zone may also, subject to approval by the City
Council, establish and provide for the administration of one or more programs to develop and
diversify the economy of the zone, eliminate unemployment and underemployment in the zone,
and develop or expand transportation, business and commercial activity. These programs may
include grants and loans as permitted by state law.
Job Tralrirn;y.
The City of The Colony offers all training programs that are available to companies
throughout Texas. These training programs include those offered through the Texas Workforce
Commission. The Colony is located within a commuting distance of thirty-four (34) institutions
of higher learning.
Fast Track Permitting
At the request of the applicant permitting time can be shortened if the project needs and
justifies the reduced time frame.
Development Fee Rebates
The City inay approve the waiver of all or a portion of certain permit and development
fees and/or TCEDC may reimburse the applicant or directly pay all or a portion of certain permit
and development fees.
Infrastructure
The City and/or the TCEDC may agree to participate in the cost of the extension,
construction, or reconstruction of public infrastructure necessary for the development of a project.
That infrastructure could include streets, waterlines, sewer lines, railroad lines, electric lines,
phone lines, gas lines and/or fiber optic lines.
For retail projects, TCEDC may fund the costs of infrastructure limited to: (i) streets and
railroad spurs, (ii) water, sewer, electric and gas utilities; (iii) drainage and related improvements;
and (iv) telecommunications and Internet improvements.
Low Interest Loans
The City and/or TCEDC may provide qualified applicants loans for project funding.
Structure/Buildin
The City may construct, or provide funding to construct a building or structure needed for
the project. TCEDC may construct or provide funding to construct buildings or structures for
industrial and manufacturing projects.
Employee Training
The City and/or TCEDC may provide funding for the applicant's employee training.
(See "Job Training".)
Revised 11-15-11
Relocation Expenses
The City and/or TCEDC will consider paying a qualified applicant's necessary and
substantiated relocation expenses.
Temporary Housing, Offices, or Travel Vehicles
The City and/or TCEDC will consider paying the cost of temporary housing, offices, and
travel vehicles for a qualified applicants senior and middle management.
rnpoXee Recruitment
Recruitment expenses may be reimbursed to a company by the City and/or TCEDC (for
industrial and manufacturing projects) for the senior and middle management personnel for the
project.
Chapter 350 Incentive Program
'finder Chapter 380 of the Texas Local Government Code, as amended, the City may
establish and provide for the administration of one or more programs, including programs for
snaking loans and grants of public money and providing personnel and services of the
municipality, to promote state or local economic development and to stimulate business and
commercial activity in the municipality. The Chapter 380 Incentive Program provides incentives
in the form of grants, loans, use of City's personnel or services, or a combination thereof. The
City of The Colony, Texas, Chapter 380 Incentive Program is attached hereto as Exhibit "C".
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Revised 11-15-11 4
GENERAL GUIDELINES - MINIMUM REQUIREMENTS
Ca]2ital Investment
Except where otherwise stated in this document, the applicant must have a minimum of
$1,000,000 capital investment made by or through the project. Capital investment means the total
capitalized cost to the applicant for the project.
Experience
The applicant shall have a minimum of at least three prior years of operation. The
applicant must be able to provide at least three years of financial statements prepared by a
certified public accountant. The principals and/or management of the business must be able to
demonstrate at least five prior years of experience (individual not collective) in the business
industry of the project.
GENERAL GUIDELINES - OTHER
Application Procedure
Any person or company requesting that the City and/or TCEDC or TCCDC to provide an
economic development incentive small comply with the following procedure:
1. The applicant shall submit a completed written application for the requested incentive(s)
utilizing the application outline provided by TCEDC attached to this policy as Exhibit A,
and available at www.tliecolonledc.org.
2. The applicant shall address all criteria set forth in this policy and the application.
1 The applicant shall: provide a plat, map or survey showing the location of the property
and the proposed project, all streets, land uses and zoning within 500 feet of the site.
4. The applicant shall provide a legal description of the property; the naive, address, phone
number, fax number of the owner of the property; the tenants or proposed tenants, if any;
and state whether the property is to be owner occupied or leased.
5. The applicant shall describe in detail the proposed project and the type of economic
development incentive(s) requested.
b. The application shall be submitted in triplicate copies to TCEDC in care of the Director
of Economic Development, 6800 Main Street, The Colony, TX 75056.
7. The application will be reviewed initially by TCEDC Director of Economic Development
then, if found to be complete and in order, the application shall move into the
negotiations step of the incentive process (see Negotiation Process below). After
completion of the negotiations process the Director shall make a recommendation to
TCEDC Board of Directors, and when necessary to the City Council. If necessary the
application will be distributed to the applicable departments of the City for review and
comment, Additional information related to the application and the prtlject may be
requested by TCEDC and/or City. Failure to timely submit any additionally requested
information will cause the application to be rejected and will be deemed withdrawn by
the applicant without further action by TCEDC and/or the City.
8. The City Council will, when necessary, consider TCEDC recommendation and the
requested incentive pursuant to this policy.
9. The City Council will conduct public hearings when required by law.
Revised 11-15-11 5
10. When necessary under this policy the City Council will, at a regular meeting and when
allowed by law at a special meeting, consider the approval of an economic development
incentive agreement.
11. Information submitted by the applicant regarding the requested incentive is confidential
to the extent allowed by law.
Irnnact Anaivsis
The City, TCEDC, and TCCDC reserve the right to perform an economic impact analysis
for any project to determine the impact the project will have on the City. This analysis will be
made before an incentive is offered to the applicant.
Negotiation Process
The initial contact and preliminary discussions relating to available incentives is to be
between the authorized representatives of the applicant and the Director of Economic
Development for the City (or his /her appointee).
All negotiations for Economic Development Incentives shall be between the authorized
representative (s) of the applicant and the Economic Development Director and any one (1) or
more of the following:
President of The Colony Economic Development Corporation (4A)
Member(s) of The Colony Economic Development Corporation Board (4A)
City Council Members
Member of The Colony Community Development Corporation Board (413)
City Manager
All negotiated projects will first be reviewed by TCEDC Board of Directors who will
then, if appropriate, make recommendation to The Colony City Council. TCEDC Board and/or
City Council's decision shall be based upon an evaluation of the criteria that each applicant has
addressed in narrative format in their application.
An incentive package with an aggregate value of $100,000 or less and not containing a
Tax Abatement may be approved by TCEDC Board without the involvement of City Council. An
incentive package with a value greater than $100,000 and/or containing a Tax Abatement will
require approval by City Council.
Execution of Amement
If it is necessary for City Council to take action on the application a resolution shall be
adopted declaring that under the guidelines and criteria established herein, the application is
eligible for economic development incentives. The resolution shall further authorize the Mayor
to execute a contract with the applicant governing the provision of the incentives. If the
application can be approved solely by TCEDC Board then this application will be discussed in
Executive Session by the Board and approved in open session by a majority vote.
Revised 11-15-11 6
EXHIBIT "A"
APPLICATION FOR
ECONOMIC DEVELOPMENT INCENTIVES
Please provide the following information:
Name of Applicant (including title)'
Company Name'
Company Address (Street, City, State & Zip Code)
Applicant's Phone AND Fax Number
Applicant's address if other than Company address
Email Address
Website address
NAICS Code
Project Address
Name of Property Owner (if different from Applicant)
Property Owner's Address (If different from Company)
Property Owner's Phone Number (If different from Applicant)
Date of Application
A. Pr ct
1. Tell us about your project. Clive specifics as to property size, building square footage,
utility requirements, traffic flow on and off the property, truck traffic (if applicable), etc.
2. What will you be doing in The Colony? Is your company community oriented? Clow do
you anticipate your company interfacing with our community?
3. Will the building(s) be owner occupied? If the facility is to be leased, who are, or will be
the primary tenants?
B. uloyr ent Impact
' Please provide this information at the top of each page of your application.
Revised 1.1-15-11 A-1
I . How many full and part-time jobs will be brought to The Colony in the I" year, P year,
and 5`1' year following the opening of your facility? Please break down the total for each
time period by the number of full time and part time employees and the number of
transfers versus the number of new jobs.
2. What types of jobs will be created (i.e. professional, skilled, unskilled)?
3. What will be your company's total annual payroll in The Colony at the end of the 1"
year, 3`1 year, and 5t" year following the opening of your facility?
C. Fiscal Impact
1. What will be the taxable value of the real and personal property added to the tax rolls?
2. How much direct sales tax will be generated in The Colony during your Y", 3"d, and 5`J'
year of operation?
3. How much real property is being transferred from Ag Value to Market Value on the
property tax rolls?
4. Will this project affect existing businesses and/or office facilities? If yes, please explain
the positive and negative impact.
5. What infrastructure additions or improvements will be required?
6. What is the annual projected operating budget of the project or facility?
D. Community Impact
1. What effect would the project have on the housing market?
2. What environmental impact, if any, will be created by the project (included, but not
limited to, air, noise, water, or sewer pollution)?
3. How compatible is the project with the City's Comprehensive Plan?
E. Incentives
What assistance do you want from TCEDC (see The Colony Economic Development
Corporation/City of The Colony Comprehensive Policy Statement of Economic Development
Incentives)? Please be specific as to why you believe your project qualifies for each incentive
requested. Include the value of each incentive.
F. Company/Management Information
Please include the following with your application;
1. Business Plan
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2. Resume for each principal in your company and anyone in a management position (if
different)
3. Financial statements prepared by a certified public accountant for the three years
immediately preceding the application.
4. Corporate resolution evidencing the legal name of your company and the name of the
officer(s) authorized to negotiate contracts for your company.
5. Three sets of literature on your company (annual reports, brochures, news releases,
etc.)
6. Legal description, and map or plat of the location of the project 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.
By submitting an application for an incentive the applicant certifies that the company, or a
branch, division, or department of the company, does not and will not knowingly employ an
undocumented worker, and that if, after receiving a public subsidy, the company, or a branch,
division, or department of the company, is convicted of a violation under 8 U.S.C. Section
1324a(f), the company agrees to repay the amount of the public subsidy with interest, at the rate
and according to the other terns provided by an agreement under Texas Government Code,
Section 2264.053, not later than the 120"' day after the date the City, or The Colony Economic
Development Corporation notifies the company of the violation.
1. VALUE OF INCENTIVES
The Colony Economic Development Negotiations Team will use the information you provide in
determining whether or not it is in the best interest of the affected taxing entities to recommend
that incentives be offered to a particular applicant. Specific considerations will include the
degree to which the individual project furthers the goals and objectives of the community, as well
as the relative impact of the project. Each applicant is considered on a case-by-case basis.
APPLICATION SUBMISSION INSTRUCTIONS: All incentive applications must be
submitted in triplicate on 8 % x 1 paper, in a three-ring notebook or stapled in the upper
left hand corner. Exhibits may exceed 8 % x 11 but must be fan-folded to the 8 % x I1 size.
(The City and/or TCEDC reserve the right to request the applicant provide additional
copies of the application.)
Please address the application information to Keri Samford Director of Economic
Development, The Colony Economic Development Corporation, 6800 Main Street, The
Colony, Texas 75056
Revised 11-15-11 A-3
EXHIBIT 6L "
City of The Colony
Tax Abatement Policy
m General Purpose And Objectives
The City of The Colony (the "City") is committed to the promotion of high quality
development in all parts 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 will, on a case-by-case
basis, give consideration to providing tax abatement as stimulation for economic
development in the City. All applications for tax abatement must 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. Tax
abatement will not be ordinarily considered for projects which would be developed
without such incentives unless it can be demonstrated that higher development
standards or other development and community goals will be achieved through the
use of the abatement. It is the policy of the City 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 is under obligation to provide any
incentive to any applicant. All applicants shall be considered on a case-by-case basis.
11. Minimum Standards for 'ax Abatement
A. Project does not have any negative environmental impacts on the community
(e.g.; significant pollution or hazardous waste).
B. Project stimulates local employment and/or commercial activity which will
benefit existing business and which will not compete with existing businesses to
the extent of being a detriment to the local economy as a whole.
C. The project should have a minimum capital investment of three million dollars
($3,000,000).
D. Project will serve as a catalyst or magnet to attract or retain other high quality
industrial/business development.
III. C-`f(-_,ia For Tax Abatement
The minimum objective and subjective criteria outlined in this policy will be used to
determine whether it is in the best interest of the City to provide tax abatement to a
particular applicant. The degree to which the specified project meets the purposes and
Revised 11-15-11 B-1
objectives of the City, the relative impact of the project, and the value of other
incentives will all be used to determine the total value and duration of the tax
abatement provided to any applicant. No tax abatement will be granted in an amount
which exceeds the estimated costs to the City for support of the project, In
compliance with state law no abatement will be for more than a maximum of 10
years in duration..
IV. Objective Criteria
In order for a tax abatement application to be considered the following must be
addressed in written format by the applicant using "The Colony Economic
Development Corporation/City of The Colony Application for Economic
Development Incentives" attached to this policy as Exhibit B and available at
www.thecolonyedc.org:
A. Number of jobs that will be created by the project.
B. Average salary detailed by skilled, unskilled and management positions.
C. Total annual payroll created by the project.
D. The net tax base valuation (real and personal property) that will be added by the
project.
E. Projected annual sales tax that will be directly generated by the project.
V. Subjective Criteria
In addition to the objective criteria for which specific values can be assigned, several
additional considerations must be evaluated. Using "The Colony Economic
Development Corporation/City of The Colony Application for Economic
Development Incentives" attached to this policy as Exhibit B and available at
w,%v,.thecolonyedc.org the applicant must respond to the following in written
narrative format, with backup documentation:
A. Explain the types and values of public improvements, if any, which will be made
by the applicant.
B. Explain to what extent the project will compliment and/or compete with existing
businesses.
C. If the project poses any negative environmental, operational, visual/image, style
impacts (i.e.; pollution, noise, traffic congestion, etc.) provide details.
D. Provide information including at least five years financial and operating history
of the company.
E. The applicant must indicate whether or not they are willing to commit to a
definite construction/completion schedule for the project and to define exactly
what will be built (i.e., what will be on the tax roll and when).
F. State in the application whether the project is a relocation/consolidation from
elsewhere, or the start-up of a totally new operation.
VI. Value Of Tax Abatement Provided
The objective criteria and subjective criteria outlined in Sections IV and V will be
used by the City Council in determining whether or not it is in the best interests of the
Revised 11-15-11 B-2
City to recommend that tax abatement be offered to a particular applicant. Specific
considerations will include the degree to which the individual project furthers the
goals and objectives of the community, as well as the relative impact of the project.
VII. Procedural Guidelines
Any person, organization or corporation desiring that the City consider providing
economic development incentives to encourage location or expansion within the city
Innits of The Colony shall be required to comply with the following procedural
guidelines. Nothing within these guidelines shall imply or suggest that the City is
under obligation to provide any incentive to any applicant.
A. Application Steps: To apply for a tax abatement complete "The Colony
Economic Development Corporation/City of The Colony Application for Economic
Development incentives attached to this policy as Exhibit B and located at
www.thecolonyede.org. The application must be submitted to The Colony Economic
Development Corporation (the "TCEDC") care of the Director of Economic
Development (the "Director'").
B. Application Review Steps
1. All information submitted as detailed above will be reviewed by the Director
for completeness, accuracy and the rationale for projections made. Additional
information may be requested as needed.
1 If applicable, the application will be distributed to the appropriate
departments for internal review and comments. Additional information may
be requested as needed.
3. The application will be reviewed in light of the criteria for considering
economic development.
4. If necessary copies of the complete application package may be provided to
the other appropriate taxing entities.
C. Consideration of the Apl2lication
1. After review by the Director of Economic Development the application will
be reviewed by a team consisting of but not limited to, the Director, City
Manager and at least one mernber of City Council. If needed, this team will
meet with the applicant to negotiate final teens of the abatement.
2. In a closed door session at a regular City Council meeting all necessary legal
documents will be considered for approval following evaluation of all
relevant staff and review team recommendations and reports.
For a tax abatement, additional steps, including a public hearing, must be
incorporated into the 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 Statues).
Revised 11-15-11 B-3
VIII. Execution Of Areelrnent
Should the City Council determine that it is in the best interests of the City a tax
abatement to a particular applicant, a resolution shall be adopted declaring that under
the guidelines and criteria established herein, the application is eligible for an
economic development incentive in the form of a tax abatement. The resolution shall
further authorize the Mayor 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:
A. Amount of the incentive
B. Method for calculating the value of the incentive
C. Duration of the incentive
D. Legal description of the property
E. Type, number and location of planned improvements
I.X. Confidentiality Of Proprietary Information
Information that is provided to TCEDC 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 TCEDC after the agreement is executed
will be treated as confidential to the extent allowed by law.
X. Event Of Default
During the incentive period covered by the incentive agreement, subject to Force
Majeure, the City may declare a default hereunder by the applicant if the applicant
fails to continence construction of the new facility for which incentives are offered
within two (2) years from the date this agreement is executed, fails to construct the
facility as described, refuses or neglects to comply with any of the terms of this
agreement, Or if any representation made by the applicant in this Agreement is false
or misleading in any material respect or the constructed facility fails to meet the
criteria of the agreement.
Should the City determine the applicant to be in default of this agreement, the City
shall notify the applicant in writing prior to the end of the agreement period, and if
such default is not cured within sixty (60) days from the date of such notice ("Cure
Period"), then this agreement may be terminated; provided, however, that in the case
of a default that for causes beyond applicant's reasonable control cannot with due
diligence be cured within such sixty-day period, the Cure Period shall be deemed
Revise 11-15-11 B-4
extended if applicant (1) shall immediately, upon receipt of such notice, advise the
City of applicant's intention to institute all steps necessary to cure such default, and
(2) shall institute and thereafter prosecute to completion with reasonable dispatch all
steps necessary to cure same.
In the event the applicant allows its ad valorem taxes owed the City to become
delinquent and fails to timely and properly follow the legal procedures for their
protest and/or contest, or if the applicant violates any of the tenns and conditions of
the Agreement and fails to cure during the Cure Period, this Agreement may then be
terminated and all taxes previously abated by virtue of this agreement will be
recaptured and paid within sixty (60) days of the termination.
Revised 11-15-11 B-5
EXHIBIT 66099
CHAPTER 380 INCENTIVE PROGRAM FOR ECONOMIC INCENTIVES
GENERAL PURPOSE AND OBJECTIVES
The City of The Colony (the "City") is committed to the promotion and retention
of high quality development in all parts of the City and to an ongoing improvement in the
quality of life for its citizens. hlsofar as the enhancement and expansion of the local
economy generally serve these objectives, the City will, on a case-by-case basis, give
consideration to providing grants, loans of monies, and lending of personnel and services
to stimulate economic development in the City.
The City will consider providing incentives in accordance with the procedures
and criteria outlined in the City's Comprehensive Economic ]Development Policy.
Nothing herein shall imply or suggest that the City is under any obligation to provide any
incentive to any applicant. All applicants shall be considered on a case-by-case basis.
By Ordinance No. 2011-1935, the City Council approved the general concepts for
this Chapter 380 Incentive Program for Economic Incentives (the "Chapter 380 Incentive
Program").
II. CRITERIA
All incentives provided by the City must have as their underlying goal to further
economic development in the City. The goals to be achieved by the granting of the
incentive should be measurable and be binding upon the recipient of the incentive as set
forth in an agreement between the City and recipient.
Any person, organization or corporation seeking an economic development
incentive under this Chapter 380 Incentive Program to foster location, modernization of
existing facilities, improvement or expansion of operations within the limits of the City,
must comply with the procedures set forth in the City's Comprehensive Economic
Development Policy.
III. GENERAL GUIDELINES
The Chapter 380 Incentive Program shall be administered in accordance with the
City's Comprehensive Economic Development Policy and shall be subject to the General
Guidelines contained therein, including the guidelines relating to the application
procedure, impact analysis, negotiation process, and execution of agreements. Incentives
may be in the form of grants, loans, use of City's personnel or services, or a combination
thereof.
Revised 11-15-11 C-1