1989-11-13 Regular Meeting - Laserfiche WebLink

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e e Annotation, page 4 ~ the project is considered completed and the clock begins running which means that in no case will the abatement e:{ceed zeven year!i. The full abatement during construction is typical of abatement programs elsewhere. provisions for extending the abatement period through the term ot the reinvesL-nent zone is intended to deal with any future chi.1nges that might occur in state la\'l, a!i well as provide for the abal:.ement of a second or third-stage project that might e}:tcnc well into the term of the reinvestilent zone. The abatement need not start immediately. Execution. of the contract (Section Sa) can occur at any time after County approves the resolution (Section 3d). Section 2h. Economic qualifications described herein are intenc1ec.1 to limit investments as far as practical to those tht.t are beneficial to the community and practical to administer. ) Section 2hl. Provides for a minimum new investment yielding $25,000 incremental tax revenue to Harris County government. At a $.48 tax rate, the minimum investment is $5 million. After abatement, the minimum project can be e::pected to yield about $100,000 annually under the typical $2.00 cornbirled' city-county-school taA rate. Section 2h2. Deals with the employment implications of the proposed improvement. Note that the proj ect . does not have to cause or create new employment. It can preve~:lt or mi!liIlli::e the losz ot existing employment where technolog;cal change would otherwise cause us to lose a plant to another state or region. AS an e::ilmple, ilssume that a company approves a new petrochelllicu.l plant and is between a Hurris County location or another location. As a part of that decision, an old plant in H,arris County would be shut down. The new plant is a significant step forward in technology, and as a consequence would only require 5U employes, compared to the existing process that resuires :;:00 employes. In the event that no abatement \lere offE::red, harris County could lose all 200 employes. However, by allm.,.ing abatement to minimize the los!i of employment, Harris County would be eligible to offer the abatement and compete to keep those 50 permanent jobs. Construction jobs are a bonu!i. ( Section 2h3. Deals with the concern that compilnies might transfer employe~ from one part of the county to another to get abatement. That sort of situation is not entirely precluded, since there will be cases in which companies might want to consolidate part or their work force into a new facility. Huwever, policy do~s provide that the investment must ~ot solely or primarily h~ve the