1989-11-13 Regular Meeting - Laserfiche WebLink

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e It Annotation, page 2 "\ k the product is destined or sold. The rationale high plateau $5 million minimum investment effectively eliminates any m~nufacturer who is regional, national or international market. here is that the (Section 2[) not selling in a Section Ij. Definition of "modernization" allows the administrator to delineate between an ineligible deferred maintenance investment and an eligible modernization investment where productivity ~s increased or the technology is updated. Section 11 Other Basic Industry is a catchall intended to allow abat~ment (Sec~ion 2a) for good economic development projects not elsewhere covered. The requirements are that the facility (1) produce products or services that primarily serve outside the four-county Houston Consolidated Hetropolitan Statistica.!. Area (CIISA); (2) result in nt::w jobs; und (3) Dring neu \lealth in. Section Im."Productive life" deals with ineligble property (Section 2e). It would be illogical for jurisdictions to yrant abate~ent to a short-lived property that would never be ta~ed. Accou~ting conventions often allow for a short productive life for depreciation purposes. II Productive life II here means the '\ number of years the property is actually expected to be in service in the facility. Section 2e sta tes that property must. have productive life of at least 15 years to be eligible. Section In. The purpose in allow1ng for an abatement for a regional entertainment facility (Section 2a) is to encourase the location of regional facilities that will draw maximum dollars and new wealth to the conununity. Example: Disneyworld. E:~C1Ud::d are indigenous facilities that pri~arily serve the local population. Such a facility has no positive effect since it merely shift entertainment dollars from one form of entertainment to another. Definition requires that a majority of users reside 100 miles from any part of Harris County. ; Section 10..A "research facility" eligible for abatement (Section 2a) must focus on applied product research as opposed to behuvioral or government-related research. Section 1p. A "regional service facility" is eligible (Secticn 2.:1) and is similar to a regional distribution i.:lcility. ::Lt requires that the facility must primarily serve a regional market at least 100 miles from Harris County. The inten~ is to make ineligible those types of service businesses which do most their \-Jerk in cur local markets while at the same time encouraging nutional servi~e centers that bring new payroll. Section 2a. Ab.:ltement is restricted to defined facilities. Section 2b. u.greement Provides that no work under construction beiore is executed will be abated, that abu.tement is the