Laserfiche WebLink
<br />Foreign Trade Zone (FTZ) Request <br />by IMS Worldwide on behalf of <br />Underwood Business Park 200+/- Ac and <br />Port Crossing (formally Texas Import/Export) 300+/- Ac <br /> <br />Note to City Council: <br /> <br />These notes are meant to supplement previous information supplied on FTZ's. They can serve as <br />an outline for discussion and questions during the May 22nd Workshop. <br /> <br />Back2round <br /> <br />Council has been provided information in previous workshops regarding a request to establish a <br />General Purpose FTZ for Underwood Business Park. Since then, Port Crossing has also <br />requested a FTZ. <br />o There are two types ofFTZ's - we will be discussing a General Purpose Zone <br />o General Purpose Zone covers a specified area <br />o Sub Zone - by contract with a specific company/dies when company leaves <br />o If a company qualifies, remember there are several "Federal level" benefits <br /> <br />The basic decision is to determine the following: <br />o Does the City of La Porte wish to offer no objection to the creation of a FTZ? <br />o Does the City of La Porte wish to participate in the local (qualified) exemptions offered <br />in Foreign Trade Zones? If so, at what level_% <br /> <br />Once a decision is made it is essentially final (unless the zone is abandoned at the Federal level <br />for other reasons). Plus, there is the issue of future requests from other groups that suggests La <br />Porte should adopt one policy for equity purposes. <br /> <br />La Porte Internal Concerns/Relationships <br />o Industrial District Agreements <br />o Inventory assessed at 53% <br />(remember negotiations coming up - and this is subject to change) <br />o From a relationship perspective we have existing Foreign Trade Zones in the Industrial <br />District and have offered no objection to creation based on fact that "no effect" on the <br />IDA's. Therefore, there is no further local inventory exemption <br /> <br />City is currently offering Tax Abatements <br />o Current published guidelines in place (expire every two years) <br />o Taxes on structures, land equipment, etc. are abated (above base value) by <br />declining %-age over 10 years <br />o Inventory is not abated <br /> <br />o If City decision is to offer no objection and participate in FTZ by offering local <br />exemptions <br />o Then we could have a situation where there is both tax abatement (for 10 years) <br />and the inventory in the FTZ being abated by L %) <br />o Give incentives to attract what we want <br />