1989-11-13 Regular Meeting - Laserfiche WebLink

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e e Annotation, page 3 l restricted to new improvements that must be specified in the agreement. Section 2c. Provides that new facilities as well as those existing facilities which are being expanded or modernized are eligible. This "level playing field" gives equal treutment to employers who have already made investments in Harris County since their new investments could be abuted. Section 2d. Describes the types of investments that are eligible. Included are structures, fixed machinery and si tei:nprovements plus office space and other iF.lprovements necessary for the operation and administration. Assets unrelated to the project are not eligible. . ) Section 2e. Provides an ey.tensive list of properties that il:::-C i~eligiule for abutements: la~d, in~entories (particularly manufacturing inventory, vlhich is a.' significant sourc~ cd revenues for local governments), supplies, tools, furr.ishinlJs, personal property, vehicles, vessels, aircraft, housing, hotel accommodations. Housing is excluded because it creates unworkilble problems for competitors in the housing industry. The !:;ame problem applies with the hotel industry, which locates facilities because of the market, not abiltement. Deferred maintenance is ineligible because it is a nonnal part of operating a plant. Improvements for the generiltion of electrical capacity are e}:cluded from abatement because these types of investments er.ter into direct competition with regulated utilities which do not h~ve the benefit of abatement. Improvements to store, produce or distribute natur~l gas and fluids that are not integral to the operation of the facility are excluded because existing pipelinc!:; and other transmission systems are not eligible. Properties uhich have a productive life of less that 15 years are excluded to assure governments will get tax revenue for a period e:.:ceeding the time frame of the abatement. Section 2f. Owned/ leased Facilities. Al though it would be advantageous to exclude all leased property, financing arrangements often force an operator to use a leased facility. In this case abatement will be allowed only if a binding agreement is eAecuted by the county with the lessor and the lessee. voth parties are subject to recapture. Section 2g. Value and Term of Abatement. Once the agreement is executed, taxes will be abated effective January 1 following fo:::- up to t'Wo years during construction and a ma::imUF.l of five years thereafter. " .J I By ubating the construction period, we do not put the goverr.mcnt in the position where they collect revenue during construction only to have it cut off after construction is completed. Not~ that if const:ruction e::ceeds two years for purposes of abatenent,