(a) 
The city is committed to the promotion of high quality residential, commercial and industrial development in enterprise zones and in reinvestment zones in the city and in its extraterritorial jurisdiction (“zones”); and to an ongoing improvement in the quality of life for citizens residing in the zones. The affected jurisdictions recognize that these objectives are generally served by enhancement and expansion of the local economy. The affected jurisdictions will give consideration to providing tax abatement, as authorized by Texas Tax Code, chapter 312, or Texas Government Code, chapter 2303, as stimulation for economic development within the zones. It is the policy of the affected jurisdictions that said consideration will be provided in accordance with the guidelines and criteria herein set forth.
(b) 
Nothing contained herein shall imply, suggest or be understood to mean that the affected jurisdictions are under any obligation to provide tax abatement to any specific applicant (Texas Tax Code, section 312.002(d)). With the above rights reserved, all applicants for tax abatement will be considered on the basis of the following guidelines and criteria:
(Ordinance 2019-22 adopted 7/9/19)
As used within these guidelines and criteria, the following words or phrases shall have the following meaning:
Affected jurisdictions.
The City of Odessa, the County of Ector, the Ector County Hospital District and Odessa Junior College.
Base year value.
The assessed value of the property eligible for tax abatement as of January 1st preceding the execution of a tax abatement agreement, as defined herein.
City.
The City of Odessa and its extraterritorial jurisdiction.
Commercial facility.
Facilities classified as commercial include local office, service, or retail.
Distribution facility.
A building or structure, also referred to as a distribution center, used or to be used primarily to receive, store, service or distribute goods or materials for a regional, statewide, national or international market.
Eligible abatement property.
New investment as defined herein.
Existing facility.
A facility or structure in its existing condition as of the date of execution of the tax abatement agreement, located in or on real property, as defined herein.
Industrial facility.
A facility that is used for manufacturing and producing a product; research and development; distribution centers; warehouse facilities, capable of serving as a decentralized storage; regional or national corporate headquarters. The majority of the products or services must be ultimately exported to regional, statewide, national or international markets. Industrial facility does not include local retail, service or office.
Job(s).
New permanent job(s) that provide at least 1,820 hours of employment a year to an employee or employees and are intended to exist during the period of the tax abatement agreement.
New facility.
The construction of a new facility on previously undeveloped real property eligible for tax abatement.
New investment.
(1) 
Subject to the following listed exceptions, new investment means the portion of the value of the real property or of the tangible personal property located on the real property, or both, to the extent its value for that year exceeds its value for the year in which the agreement is executed or as otherwise provided by chapter 312 of the Tax Code as now adopted or as hereinafter amended.
(2) 
It must be an improvement or repair to the property. An improvement means a valuable addition made to property (usually real estate) or amelioration in its condition, amounting to more than maintenance or replacement, costing labor or capital and intended to enhance its value, beauty or utility or to adopt it for new or additional purposes.
(3) 
It generally has reference to buildings, but it may also include permanent structures or other development, such as a street, sidewalks, sewers and utilities.
(4) 
It includes personal property, such as machinery, however, personal property such as vehicles, inventory or supplies shall not be included.
(5) 
Aircraft, housing (except as allowed for a residential facility, hotel convention center and ancillary development or downtown facilities, as provided for herein,) boats, property owned by the state and property owned by a member of an affected jurisdiction are not included.
(6) 
It is also understood that new investment is meant to be the added value that would be subject to ad valorem taxation but for the tax abatement, except for any improvements that are required to be constructed and dedicated to a public entity. The value will be estimated based on the schedules used by the appraisal district for common property or based on the cost method of valuation used by the appraisal district. Such estimates of cost and value for tax appraisal purposes include the following direct and indirect elements of cost such as direct labor, materials, supervision, utilities, equipment rental, installation of components, architecture and engineering, building permits, title and legal expenses, all risk insurance during construction, other taxes during construction, construction loan fees and interest payments during construction and any overhead for such construction. Though the estimate of new investment is based on principles of assessing property for ad valorem taxes, the appraisal district is not obligated to find the same value when it performs the official appraisal of the property each year.
Owner or owned.
Either the title owner or a lessee, with a lease commitment of at least 15 years, of the eligible abatement property on January 1st of the year subject to the tax abatement.
Real property.
Land on which real property improvements are to be made.
Renovation of existing facility.
The addition of buildings, structures, machinery or equipment to a facility after the date of execution of a tax abatement agreement.
Tangible personal property.
Any personal property, not otherwise defined herein, and which is necessary for the proper operation of any type of residential, commercial or industrial facility.
Tax abatement agreement.
An agreement between the owner and any affected jurisdiction which provides for tax abatement and complies with all statutory and guideline regulations.
Zone.
The area in the city or in its extraterritorial jurisdiction designated as an enterprise zone pursuant to the Enterprise Zone Act, chapter 2303, Texas Government Code and it shall also include reinvestment zones established pursuant to chapter 312 of the Tax Code.
(Ordinance 2019-22 adopted 7/9/19)
The intent of the criteria and guidelines, as herein set forth, is to establish the minimum standards which an applicant for tax abatement must meet in order to be considered eligible by the affected jurisdictions.
(Ordinance 2019-22 adopted 7/9/19)
(a) 
Commercial facility tax abatement.
A commercial facility will be eligible for tax abatement consideration provided such commercial facility meets the following guidelines and criteria:
(1) 
A business must clearly add to the city economic base. Compliance with this criterion must show that additional jobs are being provided unless significant capital is being invested so that the capital investment is sufficient consideration standing alone.
(2) 
Creation of new value: Abatement may only be granted for the addition of eligible abatement property under the following circumstances:
(A) 
Modernization of a commercial facility;
(B) 
Construction of a new commercial facility;
(C) 
Expansion of a commercial facility.
(3) 
Property that does not comply with the definition of eligible abatement property shall be fully taxed.
(4) 
Eligible abatement property that is located outside the city limits but in an industrial district may be allowed an abatement of money paid in lieu of taxes subject to the same terms, conditions and restrictions as are applicable to property taxes in the city. It may also provide for tax abatement at such time as the property is annexed by the city.
(5) 
In order for a commercial facility to qualify for abatement, the following conditions must apply:
(A) 
The eligible abatement property must be owned by the person, corporation, partnership or other business entity that receives the tax abatement; or
(B) 
In the case of eligible abatement property leased from an affected jurisdiction, the eligible abatement property must be owned by the person, corporation, partnership or other business entity that would receive the tax abatement except for the lease, and said owner must have a lease commitment of at least 15 years.
(C) 
A tax abatement agreement may not be assigned to a new owner, unless provided for in the tax abatement agreement.
(D) 
Property must be properly zoned for the use stated by the owner in the application.
(6) 
The amount and term of abatement shall be determined based on the criteria and schedule for incentives provided herein, however, in no event shall taxes be abated for a term in excess of ten (10) years commencing as provided by the Texas Tax Code, chapter 312. The amount of the taxable value of eligible abatement property to be abated by the affected jurisdiction shall be from 10% to 100% and the term of the abatement shall be based on the criteria and incentive schedule set forth herein.
(7) 
No commercial facility shall be eligible for tax abatement under these guidelines and criteria unless such property is located in a zone and in compliance with Texas Tax Code, chapter 312.
(8) 
The economic qualification for tax abatement for a commercial facility shall be as follows subject to other guideline provisions:
(A) 
Qualifications for five (5) years tax abatement:
(i) 
The creation of at least five jobs; and
(ii) 
Minimum new investment of $100,000.00.
(B) 
Qualifications for six (6) years tax abatement:
(i) 
The creation of at least ten jobs; and
(ii) 
Minimum new investment of at least $250,000.00.
(C) 
Qualifications for seven (7) years tax abatement:
(i) 
The creation of least 15 jobs; and
(ii) 
Minimum new investment of at least $500,000.00.
(D) 
Qualifications for eight (8) years tax abatement:
(i) 
The creation of at least 20 jobs; and
(ii) 
Minimum new investment of at least $750,000.00.
(E) 
Qualifications for nine (9) years tax abatement:
(i) 
The creation of at least 25 jobs; and
(ii) 
Minimum new investment of at least $1 million.
(F) 
Qualifications for ten (10) years tax abatement:
(i) 
The creation of at least 30 jobs; and
(ii) 
Minimum new investment of at least $2 million.
(9) 
Taxability:
(A) 
The portion of the value of eligible abatement property to be abated shall be abated in accordance with the terms and provisions of the tax abatement agreement.
(B) 
All ineligible property shall be fully taxed.
(10) 
The governing body of each affected jurisdiction shall have total discretion as to whether to participate in the tax abatement to be granted within a zone for a particular real property site. Such discretion, as herein retained, shall be exercised on a case-by-case basis. The adoption of these guidelines and criteria by the governing body of an affected jurisdiction 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 for tax abatement.
(11) 
The burden to demonstrate that an application for tax abatement should be granted shall be upon the applicant. Each affected jurisdiction to which the application has been directed shall have full authority to request any additional information from the applicant that the governing body of such affected jurisdiction deems necessary to assist it in considering such application.
(12) 
In order to receive city tax abatement for eligible abatement property, the owner must agree to improve or rehabilitate the property to the standard required by the city.
(b) 
Industrial facility tax abatement.
An industrial facility will be eligible for tax abatement consideration provided such facility meets the following guidelines and criteria:
(1) 
Creation of new value: Abatement may only be granted for the additional value resulting from eligible abatement property under the following circumstances:
(A) 
Modernization of an industrial facility;
(B) 
Construction of a new industrial facility;
(C) 
Expansion of an industrial facility.
(2) 
Tax abatement is limited to 10 years.
(3) 
Compliance with criteria must show that additional jobs are being provided unless significant capital is being invested so that the capital investment is sufficient consideration standing alone.
(4) 
In order for an industrial facility to qualify for abatement, one of the following conditions must apply:
(A) 
The eligible abatement property must be owned by the person, corporation, partnership or other business entity; or
(B) 
In the case of leased eligible abatement property, all improvements placed thereon together with all tangible personal property used in conjunction with said improvements must be owned by the person, corporation, partnership or other business entity, and said owner must have a lease commitment of at least 15 years.
(C) 
Property must be properly zoned for the use stated by the owner in the application.
(5) 
No property shall be eligible for tax abatement unless such property is located in a zone.
(6) 
In order to receive city tax abatement, the owner must agree to improve or rehabilitate the property to the standard required by the city.
(7) 
The economic qualification for industrial facility tax abatement, subject to other provisions herein, shall be as follows:
(A) 
New industrial facility.
(i) 
The creation and operation of a new industrial facility which has not previously existed within the affected jurisdiction; and
(ii) 
The eligible abatement property to be erected or affixed in or on the real property for which tax abatement is sought, excluding the base year value, must be at a minimum value of one million dollars, and the new industrial facility must create and retain at least 10 jobs during the term established in the tax abatement agreement executed by the owner and the affected jurisdiction; or
(B) 
Expansion of existing industrial facility.
(i) 
The structural addition to an industrial facility in the amount of at least $500,000.00, and the creation and retention of additional jobs equal to 10% of the prior work force at said industrial facility during the term established in the tax abatement agreement executed by owner and the affected jurisdiction; or
(ii) 
In the event the value of the structural addition is less than $500,000.00, there will be an increase in value of 25% of the existing facility and the expansion will cause an increase in and retention of the existing work force at said industrial facility by at least 25% during the term established in the tax abatement agreement executed by owner and the affected jurisdiction.
(C) 
Modernization of existing facility.
(i) 
The replacement and upgrading of an existing industrial facility and the value of such improvements, excluding the land, will be at a minimum value of one million dollars, and such replacement and upgrading must create and retain at least an additional 10 jobs during the term established in the tax abatement agreement executed by the applicant and the affected jurisdiction; or
(ii) 
In the event the value of the replacement or upgrading is less than one million dollars, the modernization will cause an increase in and retention of the existing work force at such facility by at least 25% during the term established in the tax abatement agreement executed by applicant and the affected jurisdiction.
(D) 
Term; amount.
The minimum term of the tax abatement is 1 year and the maximum term is 10 years, commencing as provided by the Texas Tax Code, chapter 312, regardless of when job creation starts. The minimum amount of the tax abatement is 10% and the maximum amount of the tax abatement is 100% of the appraised value of the eligible abatement property.
(8) 
Eligible abatement property that is located outside the city limits but in an industrial district shall be subject to an abatement of money paid in lieu of taxes subject to the same terms, conditions, and restrictions as would be applicable inside the city limits.
(9) 
Taxability:
(A) 
The portion of the value of eligible abatement property to be abated shall be abated in accordance with the terms and provisions of a tax abatement agreement executed between the owner and the affected jurisdiction.
(B) 
All ineligible property shall be fully taxed.
(10) 
The governing body of each affected jurisdiction shall have total discretion as to whether to participate in the tax abatement to be granted an owner within the zone. Such discretion, as herein retained, shall be exercised on a case-by-case basis. The adoption of these guidelines and criteria by the governing body of an affected jurisdiction 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.
(11) 
The burden to demonstrate that an application for tax abatement should be granted shall be upon the applicant. Each affected jurisdiction to which the application has been directed shall have full authority to request any additional information from the applicant that the governing body of such affected jurisdiction deems necessary to assist it in considering such application.
(c) 
Residential facility tax abatement.
A residential facility will be eligible for tax abatement consideration provided such residential facility meets the following guidelines and criteria:
(1) 
Only the owners of housing, which is not a single-family residence, duplex, condominium or townhome, shall be eligible for tax abatement.
(2) 
Other than for low-income housing, in order to qualify for tax abatement, the residential facility must be developed in conjunction with a commercial facility that qualifies for tax abatement and not more than 50 percent of the land area in the zone may be used solely for a residential facility.
(3) 
The term and amount of abatement shall be the same as provided for the commercial facility developed with the residential facility.
(4) 
Abatement may only be granted for the addition of new value through modernization, construction or expansion of a residential facility.
(5) 
Property that does not comply with the definition of eligible abatement property shall be fully taxed.
(6) 
A tax abatement agreement may not be assigned unless provided for in the tax abatement agreement.
(7) 
The property must be properly zoned.
(8) 
The property must be located in a zone and in compliance with Texas Tax Code, chapter 312.
(9) 
Taxability:
(A) 
The portion of the value of eligible abatement property to be abated shall be abated in accordance with the terms and provisions of the tax abatement agreement.
(B) 
All ineligible property shall be fully taxed.
(10) 
The governing body of each affected jurisdiction shall have total discretion as to whether to participate in the tax abatement to be granted within a zone for a particular real property site. Such discretion, as herein retained, shall be exercised on a case-by-case basis. The adoption of these guidelines and criteria by the governing body of an affected jurisdiction 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 for tax abatement.
(11) 
The burden to demonstrate that an application for tax abatement should be granted shall be upon the applicant. Each affected jurisdiction to which the application has been directed shall have full authority to request any additional information from the applicant that the governing body of such affected jurisdiction deems necessary to assist it in considering such application.
(12) 
In order to receive city tax abatement for eligible abatement property, the owner must agree to construct, modernize or expand the property to the standard required by the city.
(d) 
Hotel, convention center and ancillary development.
(1) 
The location of improvements is significant, with those located within 1,000 feet of the hotel or convention center facility having the greatest impact to revitalize the downtown area. For that reason, there is justification for additional incentives to encourage development in that area. This section is applicable to that area within 1,000 feet of the hotel or convention center facility located between Texas Avenue, 5th Street, 6th Street and the alley located in the block between Hancock and Tom Green. Attached as exhibit A to Ordinance 2019-22 is an area map depicting the location.
(2) 
The provisions set forth in this section shall supersede provisions included in other sections of the guidelines and criteria to the extent of any conflict. Terms and conditions set forth in section 11-3-5 can be modified if the proposed terms comply with state laws.
(3) 
“Convention center and ancillary development” in the described area shall mean: convention centers, entertainment related facilities, meeting spaces, restaurants, shops, hotels and parking facilities.
(4) 
The amounts and terms for tax abatement offered for convention center and ancillary development shall be based on the type and quality of the improvements, location, cost of construction, number of jobs, subject to statutory law requirements for Texas Government Code, chapter 2303 or Texas Tax Code, chapter 312, whichever is applicable. It must show a clear demonstration of public purpose and economic benefit through advancement of the city’s revitalization strategy for the future growth and development of the downtown area.
(5) 
If applicable, other sections in these guidelines are available as another option.
(6) 
Abatement may only be granted for the addition of new value through modernization, construction or expansion.
(7) 
Property that does not comply with the definition of new investment shall be fully taxed.
(8) 
A tax abatement agreement may not be assigned unless provided for in the tax abatement agreement.
(9) 
The property must be properly zoned.
(10) 
The governing body of each affected jurisdiction shall have total discretion as to whether to participate in the tax abatement to be granted within a zone for a particular real property site. Such discretion, as herein retained, shall be exercised on a case-by-case basis. The adoption of these guidelines and criteria by the governing body of an affected jurisdiction 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 for tax abatement.
(11) 
The burden to demonstrate that an application for tax abatement should be granted shall be upon the applicant. Each affected jurisdiction to which the application has been directed shall have full authority to request any additional information from the applicant that the governing body of such affected jurisdiction deems necessary to assist it in considering such application.
(12) 
In order to receive city tax abatement for eligible abatement property, the owner must agree to construct, modernize or expand the property to the standard required by the city.
(e) 
Downtown facilities.
(1) 
Downtown facilities shall include all downtown residential facilities and downtown commercial facilities.
(2) 
Downtown residential facilities shall mean any type of multifamily residential facility including condominiums, townhomes, lofts, and apartments located in the downtown area which is within the following boundaries: 1st Street, Adams Avenue, 10th Street and Bernice Avenue except for the area within the hotel convention center and ancillary development area which is covered in subsection (d).
(3) 
Downtown commercial facilities shall mean all services, retail, entertainment related facilities, meeting spaces, restaurants, shops, offices and parking facilities located in the downtown area which is within the following boundaries: 1st Street, Adams Avenue, 10th Street and Bernice Avenue except for the area within the hotel convention center and ancillary development area which is covered in subsection (d).
(4) 
All downtown facilities whether for new construction or the modernization or expansion of existing facilities are subject to consideration for tax abatement with the amount and terms to be based on the type, quality, location of the improvements, jobs, and cost of new investment subject to statutory law requirements for Texas Government Code, chapter 2303, and Tax Code, chapter 312. It must show a clear demonstration of public purpose and economic benefit through advancement of the city’s revitalization strategy for the future growth and development of the downtown area and subject to the following additional guidelines regarding investment:
(A) 
Qualifications for five (5) years tax abatement.
Minimum new investment of $100,000.00.
(B) 
Qualifications for six (6) years tax abatement.
Minimum new investment of at least $250,000.00.
(C) 
Qualifications for seven (7) years tax abatement.
Minimum new investment of at least $500,000.00.
(D) 
Qualifications for eight (8) years tax abatement.
Minimum new investment of at least $750,000.00.
(E) 
Qualifications for nine (9) years tax abatement.
Minimum new investment of at least $1 million.
(F) 
Qualifications for ten (10) years tax abatement.
Minimum new investment of at least $2 million.
(5) 
Abatement may only be granted for the addition of new value through modernization, construction or expansion of a residential facility.
(6) 
Property that does not comply with the definition of new investment shall be fully taxed.
(7) 
A tax abatement agreement may not be assigned unless provided for in the tax abatement agreement.
(8) 
The property must be properly zoned.
(9) 
The governing body of each affected jurisdiction shall have total discretion as to whether to participate in the tax abatement to be granted within a zone for a particular real property site. Such discretion, as herein retained, shall be exercised on a case-by-case basis. The adoption of these guidelines and criteria by the governing body of an affected jurisdiction 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 for tax abatement.
(10) 
The burden to demonstrate that an application for tax abatement should be granted shall be upon the applicant. Each affected jurisdiction to which the application has been directed shall have full authority to request any additional information from the applicant that the governing body of such affected jurisdiction deems necessary to assist it in considering such application.
(11) 
In order to receive city tax abatement for eligible abatement property, the owner must agree to construct, modernize or expand the property to the standard required by the city.
(12) 
If applicable, other sections in these guidelines are available as another option except for subsection (d).
(13) 
The provisions set forth in this section shall supersede provisions included in other sections of these guidelines and criteria to the extent of any conflict.
(Ordinance 2019-22 adopted 7/9/19)
(a) 
The tax abatement agreement must:
(1) 
List the kind, number, and location of all proposed improvements on the property;
(2) 
Provide access to and authorize inspection of the property by municipal employees to ensure that the improvements or repairs are made according to the specifications and conditions of the agreement;
(3) 
Limit the uses of the property consistent with the general purpose of encouraging development or redevelopment of the zone during the period that property tax exemptions are in effect;
(4) 
Provide for recapturing property tax revenue lost as a result of the tax abatement agreement, within 90 days after written notice, if the owner of the property fails to make the improvements or repairs as provided by the tax abatement agreement;
(5) 
Contain each term agreed to by the owner of the property;
(6) 
Require the owner of the property to submit certain documents and to certify annually to the governing body of each taxing unit that the owner is in compliance with each applicable term of the agreement; and
(7) 
Provide that the governing body of the municipality may cancel or modify the agreement if the owner fails to comply with the agreement.
(8) 
Include the following provision as a part of the “recapture” section, now 2.13:
“7. Company shall not appeal to court the value of the new investment as determined by the appraisal review board of the appraisal district when such value is less than 80% of the new investment estimated by the company and expressed as the minimum new investment in the tax abatement agreement. Such calculations shall exclude any property value for improvements dedicated to a public entity.”
(9) 
Provide for recapturing property tax revenue lost by each participating tax entity, within 90 days after written notice, if the owner assigns or sells the real property to a tax exempt entity prior to ten years after the expiration of the tax abatement agreement.
(b) 
The tax abatement agreement shall be subject to any applicable provisions in Texas Government Code, section 2303 or Texas Local Government Code, section 380 or chapter 312, Texas Tax Code.
(Ordinance 2019-22 adopted 7/9/19)
(a) 
Not later than the seventh day before the city (as required by Texas Tax Code, section 312.2041 or section 312.402) enters into an agreement for tax abatement under Texas Tax Code, section 312.204, the governing body or a designated officer or employee thereof shall deliver to the presiding officer of the governing body of each of the other affected jurisdictions in which the property to be subject to the agreement is located, a written notice that the city intends to enter into the agreement. The notice must include a copy of the proposed tax abatement agreement.
(b) 
The notice, as above described in subsection (a), is presumed delivered when placed in the mail, postage paid and properly addressed to the appropriate presiding officer. A notice properly addressed and sent by registered or certified mail for which a return receipt is received by the sender is considered to have been delivered to the addressee.
(c) 
Failure to deliver the notice does not affect the validity of the agreement or subject any affected jurisdiction to any claims or suit for damages.
(d) 
To be effective, the tax abatement agreement must be approved by the affirmative vote of a majority of the members of the governing body of the municipality or other affected jurisdiction at a regularly scheduled meeting of the governing body.
(e) 
On approval by the governing body, the tax abatement agreement may be executed in the same manner as other contracts made by the municipality or other affected jurisdiction.
(f) 
If property taxes on property located in the zone are abated, the governing body of each affected jurisdiction may execute a written agreement with the owner of the property not later than the 90th day after the date the municipal or county agreement is executed, whichever is later. The tax abatement agreement may, but is not required to, contain terms that are identical to those contained in the tax abatement agreement with the municipality, county, or both, whichever applies, and the only terms of the tax abatement agreement that may vary are the portion of the property that is to be exempt from taxation under the tax abatement agreement and the duration of the tax abatement agreement.
(g) 
At any time before the expiration of the tax abatement agreement, the tax abatement agreement may be modified to include other provisions that could have been included in the original tax abatement agreement or to delete provisions that were not necessary to the original tax abatement agreement. The modification must be made by the same procedure by which the original tax abatement agreement was approved and executed. The tax abatement agreement may not be modified to extend beyond 10 years from the date the abatement begins. The tax abatement agreement may be terminated by the mutual consent of the parties in the same manner that the tax abatement agreement was approved and executed.
(Ordinance 2019-22 adopted 7/9/19)
Any owner of a residential, commercial or industrial facility located within in the zone may apply for tax abatement by filing an application with the zone administrator which shall be sufficient to determine the merits of the proposed project and to prepare the tax abatement agreement.
(Ordinance 2019-22 adopted 7/9/19)
The following reporting and monitoring provisions shall apply:
(1) 
Company shall provide proof to the city of jobs created, new investments and any other required consideration. Documentation for jobs may be in the form of quarterly IRS 941 returns, TWC employer quarterly reports, or a certified employee roster that show the hours worked and positions filled and such other reports as may reasonably be required.
(2) 
Company, during normal business hours, at its headquarters, shall allow the city reasonable access to its employment records and books to verify employment records, but the confidentiality of such records will be maintained by the city.
(3) 
Company shall certify annually, in a form mutually agreed upon by the city and company that the owner is in compliance with each applicable term of this agreement. Company shall also provide any other reports that are reasonably necessary for the city to make such certification.
(Ordinance 2019-22 adopted 7/9/19)
The city shall assist a qualified business that is eligible in obtaining a state franchise tax refund. Whether or not a state franchise tax refund is granted in a particular case is subject to criteria established by the state, not the city.
(Ordinance 2019-22 adopted 7/9/19)
The city shall assist a qualified business that is eligible in obtaining a state sales tax refund as authorized by Tax Code, section 151.429 and Government Code, section 2303.504, as well as any other state benefits authorized by law.
(Ordinance 2019-22 adopted 7/9/19)
The governing body of an affected jurisdiction may agree in writing with the owner of a leasehold interest in tax-exempt real property that is located in a reinvestment zone, but that is not in an improvement project financed by tax increment bonds, to exempt a portion of the value of property subject to ad valorem taxation, including the leasehold interest, improvements, or tangible personal property located on the real property, for a period not to exceed 10 years, on the condition that the owner of the leasehold interest make specific improvements or repairs to the real property. A tax abatement agreement under this section is subject to the rights of holders of outstanding bonds of the municipality. An agreement exempting taxable real property or leasehold interests or improvements on tax-exempt real property may provide for the exemption of such taxable interests in each year covered by the agreement only to the extent its value for that year exceeds its value for the year in which the agreement is executed.
(Ordinance 2019-22 adopted 7/9/19)