As used in this division:
Those taxes on real property and personal property which the city is entitled to collect under the Texas Tax Code and article X, section 3 of the city charter.
A commercial or industrial enterprise or activity organized
for direct or indirect gain, benefit, advantage or profit engaged
in retail sales that produce sales tax for the city.
The document prepared with the approval of the city council,
ratified by resolution, under which the city will reimburse, through
a grant of public funds generated by tax, all or a part of the cost
of approved public improvements.
Those uses that substantially affect the inhabitants of the
city as a whole, not merely as individuals, having as its objective
the promotion of the public health, welfare, and safety of all the
citizens of the city.
That tax imposed on sales by Texas Tax Code chapter 151,
including sales within the incorporated limits of the city and sales
to buyers outside the city through a billing office located in the
city.
(1999 Code, sec. 1.2108)
(a)
The
city economic development program is available to new businesses being
developed within the city and expansions of existing businesses which
will provide a significant increase in the tax base of the city, create
and retain new jobs and generate high volumes of new taxes for the
city.
(b)
The
owner of the private business or industry and the owner of the land
on which it is located, if not the same, shall make joint application
to the city furnishing proof of ownership, details of the public improvements
required for development of the property and business, a description
of the business or industry and satisfactory evidence establishing
the amount of tax which will be generated within the city.
(c)
The
following factors, among others, shall be considered in determining
whether to approve the grant requested by the applicant and to create
an agreement with the applicant:
(1)
Value of land and existing improvements, if any;
(2)
Type and value of proposed improvements;
(3)
Productive life of proposed improvements;
(4)
Number of existing jobs to be retained by proposed improvements;
(5)
Number and type of new jobs to be created by proposed improvements;
(6)
Amount of local payroll to be created;
(7)
Whether the new jobs to be created will be filled by persons residing
or projected to reside within the city;
(8)
Amount of local sales tax to be generated directly;
(9)
Amount of local sales tax to be generated from contractor sales to
locations outside the city;
(10)
Amount of property tax from personal and real property which may
be expected from the completed development;
(11)
The costs to be incurred by the city to provide facilities or services
directly resulting from the new improvements;
(12)
The population growth of the city that will occur directly as a result
of new improvements;
(13)
The types and values of public improvements, if any, to be made by
the applicant seeking the grant;
(14)
Whether the proposed business competes with existing businesses to
the detriment of the local economy;
(15)
The impact on the business opportunities of existing businesses;
(16)
The attraction of other new businesses to the area;
(17)
The overall compatibility with the zoning ordinances and comprehensive
plan for the area; and
(18)
Whether the project is environmentally compatible, with no negative
impact on quality of life perceptions.
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It shall be the responsibility of the applicant to provide evidence
supporting the business in response to each of the above. Such evidence
shall be in writing and submitted with the application. No application
shall be considered received by the city until such evidence is presented.
Economic projections shall be based on accepted accounting principles.
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(1999 Code, sec. 1.2101)
(a)
Upon
receipt of an application, the applicant shall meet with the city
administrator for purposes of review of the application and the needs
of the applicant. Such meeting shall be conducted by the city administrator
within 2 weeks after receipt of the application. Within thirty (30)
days after the meeting with the city administrator, the application
shall be brought before the city council for review and action.
(b)
The
city council may not adopt an ordinance approving an agreement authorizing
a grant until it has held a public hearing at which interested persons
are entitled to speak and present evidence for or against the grant.
Notice of the hearing shall be clearly posted or identified on the
agenda of the city council at least thirty (30) days prior to the
hearing.
(c)
Prior
to entering into an agreement, the city council may, at its option,
hold a public hearing at which interested persons shall be entitled
to speak and present written materials for or against the approval
of the grant.
(d)
In
order to enter into an agreement, the city council must find that
the terms of the proposed agreement meet these guidelines and criteria
and that:
(e)
Upon
a finding that the improvements for which a grant is sought serve
a public purpose and that the business seeking a grant has met the
criteria and requirements of this division, the city council may authorize
a written agreement to be prepared which will allow the applicant
to recover up to 100% of its total actual cost for constructing the
public improvements. Such payment shall be made only when the city
council determines that economic projections have met the applicant's
forecast. The city council shall decide when the payment shall begin,
over what period of time the payment shall be made and the amount
of each annual payment. If the recovery allowed under the agreement
is paid prior to the expiration of the agreement term then the agreement
shall terminate. In no event shall the city be required to pay the
applicant more than the stated percentage of the cost of improvements
constructed by the applicant and accepted by the city. The agreement
shall not become effective until the applicant has completed the installation
of the public improvements, the installation has been approved by
the city engineer and the improvements and all necessary easements
and rights-of-way have been transferred to the city.
(f)
The
grant to be made by the city to an applicant under the terms of the
agreement shall be made on an annual basis within 30 days after adoption
of the annual city budget. Such annual payments shall be made for
so long as payments are made to the city by the state on a quarterly
basis. If such payment schedule is changed or interrupted then any
agreement shall be deemed amended to provide that payment shall be
made within 30 days after receipt by the city. The applicant shall
not be entitled to interest on any amount of the grant.
(g)
The
payments shall be subject to an annual appropriation. In the event
no funds or insufficient funds are appropriated and budgeted or are
otherwise unavailable by any means whatsoever in any fiscal period
for payments under this agreement, including a decision by the city
council that such appropriation in full or in part would impair or
curtail other city services, then payments due hereunder for that
year shall be deemed paid. Any obligation of the city created hereunder
is a current expense subject to an annual appropriation and shall
not in any way be construed to be a debt of the city in contravention
of any limitation or requirement concerning the creation of debt by
the city, including but not limited to its home rule charter. Nothing
contained in this agreement shall constitute a pledge of the general
tax revenues, funds or monies of the city.
(1999 Code, sec. 1.2102)
(a)
If
the city council shall determine that an applicant has met the guidelines
and criteria and that the business will benefit the city and make
a substantial impact on the city's tax revenues, the city may enter
into a written agreement with the applicant. The agreement shall be
ratified by resolution of the city council. In addition to such other
terms and conditions which city council may impose, the agreement
shall include the following:
(1)
Estimated amount of sales tax to be generated by the applicant's
business in each of the following 5 years;
(2)
Description and value of the public improvements for which the grant
is being made;
(3)
The total amount of the grant stated in percentage of the cost of
the public improvements and the estimated amount to be paid each year;
(4)
The date the payments shall commence and the number of quarters (years)
such payments shall be made, and the percentage of each payment received
by the city attributable to such plant that shall be rebated;
(5)
Requirement that the applicant provide the city, within 5 days of
filing, a certified copy of each quarterly sales tax report filed
with the state;
(6)
Requirement that the applicant provide the city, within 5 days of
filing, a certified copy of each annual sales tax report filed with
the state;
(7)
The understanding that the city shall be under no further obligation
to make grants if the city council determines that the applicant is
in violation of any terms or conditions of the agreement, or taxes
are delinquent; and
(8)
Such other provisions as the city shall deem appropriate.
(b)
It
shall be deemed a default if the applicant, after having obtained
an agreement, moves its billing office from the city. If the default
occurs in the first two years following adoption of the agreement,
the city shall be entitled to recover all funds reimbursed to the
applicant in all quarters prior to the default.
(c)
In
the event the state reduces the city's sales tax rate below one percent
(1%), the city shall be under no further obligation to make grants
hereunder.
(1999 Code, sec. 1.2103)
(a)
In
the event that the facility is completed and begins retail sales but
subsequently goes out of business, and tax, as forecast, is not produced
in the years projected, the grant amount shall be reduced accordingly.
If the business discontinues business for a three-year period, the
obligation of the city under this division shall be deemed terminated.
The amount of the grant is paid in annual installments. Such amounts
are not cumulative.
(b)
Should
the city council determine that the applicant is in default according
to the terms and conditions of its agreement, the city shall notify
the company or individual in writing at the address stated in the
agreement, and if such is not cured within thirty (30) days from the
date of such notice (“cure period”), then the agreement
may be terminated and the city shall be under no further obligation
to make payments hereunder.
(c)
The
applicant will timely pay all ad valorem taxes and charges for city
utilities. Failure to do so shall be deemed a default.
(1999 Code, sec. 1.2104)
The city shall use tax figures and amounts furnished by the
state comptroller and the city tax department to make all calculations
and payments hereunder.
(1999 Code, sec. 1.2105)
(a)
The
grant may be assigned to a new owner or lessee of the facility, upon
the approval by resolution of the city, subject to the financial capacity
of the assignee and provided that all conditions and obligations in
the grant agreement are guaranteed by the execution of a new contractual
agreement with the city, which consent shall not be unreasonably withheld.
No assignment shall be approved if the assignor or the assignee is
indebted to the city for ad valorem taxes or other obligations in
this or any other jurisdiction.
(b)
A
memo identifying this agreement shall be filed in the public records
of the county in which the business is located.
(1999 Code, sec. 1.2106)
These guidelines and criteria are effective upon the date of
their adoption and will remain in force for two (2) years, at which
time the grant program, guidelines and criteria and all grant agreements
then in effect will be reviewed by the city council to determine whether
the goals have been achieved. Based on that review, the guidelines
and criteria may be modified, renewed or eliminated.
(1999 Code, sec. 1.2107)
