02-16-12 Regular, Public Hearing and Workshop Meeting of the Planning and Zoning Commission

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DRAFT FEBRUARY 7, 2012 12)Continue to support the Economic Development Corporation (EDC)’s efforts to fund capital investment and job creation as a means of increasing economic development within the City. Existing Local Incentives and Programs (Local Toolkit) The City of La Porte currently offers several local incentives for businesses who are considering locating within the City. Tax Abatements – The City offers ad valorem tax abatements for new construction for qualifying facilities, including regional distribution/service (up to 10 percent), manufacturing/other basic industry (up to 10 percent), and retail/commercial office/regional entertainment (up to 50 percent). To be eligible for an abatement (averaged over five years), qualifying companies must also have a minimum $3 million capital investment and create at least 10 jobs. Industrial District Agreements – Sometimes, the City provides incentives to businesses that relocate in the Extraterritorial Jurisdiction (ETJ). Agreements are approved where the City agrees not to annex the property for a specified period of time and sometimes includes annual fee-in-lieu of taxes for the use of City facilities or contractual services (e.g., fire department response). Public Improvement Districts – The City has the ability to establish a Public Improvement District (PID), which enables commercial areas to make improvements by spreading out the cost equally among all properties. Property owners are assessed based on benefits and assessments may be used to pay debt service on bonds or they may be used to pay for services directly if no bonds are issued. PID funds may also be used in connection with improvements or enhancments such as water, wastewater, streets, drainage, parking, landscpaing, etc. Foreign Trade Zones – The City supports the Port of Houston in its efforts to apply for federeal exemptions from state and local ad valorem taxes on tangible property imported from outside the United States, and held in Foreign Trade Zones (FTZ). Freeport Exemption – The City supports the La Porte Independent School District (La Porte ISD) which offers Freeport Exemption. These are intended to exempt personal property consisting of inventory goods or ores, other than oil, natural gas, and petroleum. Municipal Grants – The City Council has the authority to provide loans and grants of City funds to promote economic development projects within the City. In addition, the City incentivizes economic growth and expansion of facilities in the industrial districts, where the company renders to the City an amount “in lieu of taxes” based on 62 percent (value years 2008 – 2013) or 63 percent (value years 2014 – 2019) of the amount of ad valorem taxes payable if it was within the City limits. Further, new construction is incentivized for substantial increases in the value of land and tangible property to the amount equal to 25 percent (value years 2008 – 2013) or 20 percent (value years 2014 – 2019) of the amount of ad valorem taxes if it was within the City limits. Source: City of La Porte Website –Economic Development Department 13)Continue to partner with the La Porte-Bayshore Chamber of Commerce, Bay Area Houston Convention & Visitors Bureau, Bay Area Houston 5.10 Chapter 5