10-02-04 City Council Retreat Agenda

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. . . for abatement of new value, subject to an abatement cap to be calculated as $750,000 per job created/retained times the number of such jobs as required in the abatement agreement. Such cap shall not exceed the increased value requirement as set out in the abatement agreement, and will be adjusted annually as set out in subsection (j) below. To determine the amount of each year's exemption, the adjusted cap shall be multiplied by a sliding scale as follows: Year Abated Percentage of Value 1-3 Including Construction 4 5 6 7-10 100% 80% 60% 40% 20% All abatement agreements shall set out in detail, the exact method to be used in computing each year's exemption. No abatement shall be given in any year in which the facility fails to meet the employment minimum set forth in Section 2(h)(2). Modernization projects are eligible for abatement according to the above formula with the exception that abatement in no year shall exceed 80 percent. If a modernization project includes facility replacement, the abated value shall be the value of the new unites) less the value of the old unites). (h) Economic Qualification. To be eligible for designation as a reinvestment zone and receive tax abatement the planned improvement: (I) must be reasonably shown to increase the assessed value of the property in the amount of $1.0 million upon completion; (2) must be shown to directly create or prevent the loss of permanent full-time employment for at least 25 people reasonably required in order to operate the facility in an efficient manner, provided that this employment qualification shall take effect on January 1 of the fourth year of the abatement agreement and continue through the term of the abatement; (3) must be shown not to solely or primarily have the effect of transferring employment from one part of Harris County to another. Competitive siting analysis may satisfy this requirement; and (4) must be necessary because capacity cannot be provided efficiently utilizing existing improved property when reasonable allowance is made for necessary improvements. (i) Research and Development Projects. If the planned project improvement is for a research and development facility, in order to be eligible for tax abatement the planned improvement: (a) Must be reasonably expected to increase the value of the property by a minimum amount of $500,000 upon the completion of construction; and PAGE 5 HARRIS COUNTY GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENT