1989-11-13 Regular Meeting - Laserfiche WebLink

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~" (b) e e Creation of New Value. Abatement may only be granted for the additional value of eligible property improvements made subsequent to and specified in an abatement agreement between the (aftectec jurisdiction) and the property owner or lessee, subj ect to such limi ta tions as (governing body) may require. -'. (c) New and Existing Facilities. Abatement may be granted for new facilities and improvements to existing facilities for purposes of modernization or expansion. (d) Eligible Property. Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements plus that office space and related fixed improvements necessary to the operation and administration of the facility. (e) ) Ineligible Property. The following types of property shall be fully taxable and ineligible for abatement: land; inventories; supplies; tools; furnishings, and other forms of movable personal property; vehicles; vessels; aircraft; housing; hotel accorrunodations; deferred maintenance investments; property to be rented or leased except as provided in Section 2 (f); improvements for the generation or transmission of electrical "energy not wholly consumed by a new facility or expansion; any improvements, including those to. produce I store or distribute natural gas, fluids or gases, which are not integral to the operation of the facility; property which has Q productive life of less than 15 years; property owned or used by the State of Texas or its poli tical subdivisions or by any organization owned, operated or directed by. a political subdivision of the State of Texas. (f) Owned/Leased Facilities. If a leased facility is granted abatement the agreement shall be executed with the lessor and the lessee. ( g) " I .. Value and -Term of Abatement. Abatement shall be granted effective with the January 1 valuation date immediately following the date of execution of the agreement. One hundred percent of the value of new eligible properties shall be abated for up to two years during the period of constructions and for five years thereafter. The abatement may be extended through an initial agreement and a subsequent agreement as may be required to comply with state law regarding the term of a reinvestment zone. If the period of construction exceeds two years the facility shall be considered completed for purposes of abatement and in no case shall the period of abatement inclusive of construction and completion exceed seven years. - 4 -