1989-11-13 Regular Meeting - Laserfiche WebLink

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e e """'\ Annotation of the Guidelines and Criteria For the Creation of Reinvestment Zones in Harris County Section la.The abatement policy is d~fined for "economic cevelopment purposes." No provision is made for redevelopment, which i!; being handled separately. Abatement applies to reill proper~y only and therefore exclude~ p~r50nal property such ilS office fi::ture5 and inventories. The net effect of thig limi tation will be to assure that local governments receive addi tional revenue from personal property associated with the tax. Section lb. All "affected jurisdictions" will receive notice o~ public hearing (Section 3c) and abatement will not be granted if it has a negative impact on an afferi~ed ju~isdi=tion (Section 4a). "later districts and other special jurisdiction5 ilre not "affected jurisdictions." " 'Section ld. The "base year value" applies to the value before i~provement5, which will be fully taxable (Section 2i). It has not been determined at this time whether the base year value will be fixed or allowed to fluctuate based on the changes in mar~et conditions and value of the base assets. The base year value includes properties on the tax roll Jilnuary 1 pr~ceding the ~gre~~ent as well as any properties added until the ag~eement is execu~ec. In ether words, improvements added after J~nuary 1 bu~ before the execution of the agreement will not be eliyible fer abatement. Section Ie. The definition "deierred maintenance" il?plies to certain ineligible maintenance investments necessary for continued operations (Section 2e). Section 1 f. A "distribution center facility" is eligible for abatement (Section ~a) provided that the majority of service is provided to ?oint3 at least 100 miles from Harris County. The purpose is to avoid abating proper".:y located in. Harris County that primarily serves Harris County markets. Such businesses locate here to tap our market and incentive is unnecessary. It is doubtful whether abatement would provide any addi tion~l employment. The definition provides that the facility may also "service" owned goods or a~sets. In other words, a regional or nationa~, service or repair facility is eligible. ". Section. 19 . Eligibility for ubatement due te "expansioIl" ( (Section 2c) requires that production capacity be increased. Section Ii. A "manufacturing facility" eligible for abatement (Section 2a) Ileed :lot meet a r-equircment with respect to where