(a) 
The Texas Property Redevelopment and Tax Abatement Act, section 312.001 et seq. of the Tax Code, gives to the town the authority to grant tax abatement of the increment in value added to a particular piece of property, provided that it meets the economic development goals of the town. This tax abatement is based upon the actual cost of the expansion or new facility and applies to the real estate portion only. Personal property shall not be included, unless added after the improvements are made.
(b) 
The town is determined to promote a high-quality development in all parts of the town in order to improve the quality of life for its citizens. The economic development committee is of the opinion that a tax abatement policy will help to attract new business of the quality that the town is seeking. At the same time, they hope to expand existing industry to better serve this community.
(c) 
Some of the objectives to be accomplished are as follows:
(1) 
Creation of new jobs.
(2) 
Increased property tax valuation.
(3) 
Added retail sales tax revenue.
(4) 
Personal property tax increases.
(5) 
A more balanced community.
(6) 
Attraction of new business dedicated to the town type quality of life.
(d) 
The town will consider each project on a case-by-case basis. The application when received will be studied to determine whether or not the new business or the expansion meets the criteria sought to be achieved. There is no obligation on the town to grant a tax abatement, and therefore the projects must each be considered on its own merits.
(1992 Code, sec. 1.1007; 2006 Code, sec. 11.201)
The following guidelines and criteria shall be a part of all of the tax abatement agreements that may be entered into by the town and any individual landowner desiring to take advantage of the tax abatements:
(1) 
The tax abatement may cover any new facilities.
(2) 
The value upon which the tax abatement is computed shall not exceed the actual cost of the new facilities or structures or the actual cost of expansion of existing facilities.
(3) 
These guidelines and criteria shall be effective for a period of two (2) years from the date of their adoption. During that period, they may be amended or repealed only by a vote of 3/4 of the members of the governing body of the town.
(4) 
The adoption of these guidelines and criteria does not:
(A) 
Limit the discretion of the governing body to decide whether to enter into a specific tax abatement agreement;
(B) 
Limit the discretion of the governing body to delegate to its employees the authority to determine whether or not the governing body should consider a particular application or request for tax abatement; or
(C) 
Create any property, contract, or other legal right in any person to have the governing body consider or grant a specific application or request for tax abatement.
(5) 
Any information that is provided with an application or request for tax abatement and which describes specific processes or business activities to be conducted or the equipment or other property to be located on the property for which the tax abatement is sought shall be confidential and not subject to public disclosure until the tax abatement agreement has been fully executed and placed in the public records of the town.
(6) 
The tax abatement shall not automatically apply to the taxes that are collected by the town for the Sunnyvale Independent School District unless specifically approved by the school district.
(1992 Code, sec. 1.1007; 2006 Code, sec. 11.202)
The following criteria will be a part of the decision-making process to determine which projects will be acceptable:
(1) 
The amount of the investment proposed.
(2) 
Whether the project adds to the development plans for an area in which it is projected.
(3) 
Whether the project will create new jobs and the number to be created.
(4) 
The amount of the payroll that will be created in the local community.
(5) 
The value that will be added to the tax base.
(6) 
The projected annual sales tax that will be generated.
(7) 
The estimated personal property tax values to be added.
(8) 
Whether the project meets all zoning and subdivision regulations.
(9) 
The impact of the project upon the school system.
(10) 
Whether the project is consistent with the comprehensive plan of the town.
(11) 
Whether the project competes with the present business or is adding a new dimension to the business community.
(12) 
Whether there are any environmental problems.
(1992 Code, sec. 1.1007; 2006 Code, sec. 11.203)
The following are the objective criteria to be used to determine the need for and the priority of entering into tax abatement agreements with any particular applicant:
(1) 
Base value of improvements or facilities added to qualify: $2,500,000.00.
(2) 
For every $500,000.00 of improvement erected or placed upon the premises: 1 point.
(3) 
For every twenty-five (25) new jobs created: 1 point.
(4) 
For every $5,000.00 of sales tax revenue generated annually, payable to the town: 1 point.
(5) 
For every $100,000.00 of monthly payroll added: 1 point.
(6) 
For every $500,000.00 of personal property value added subsequent to the erection of the new improvements or the new expansion: 1 point.
(7) 
Minimum points necessary to qualify as an applicant: 10 points.
(1992 Code, sec. 1.1007; 2006 Code, sec. 11.204)