2006-03-27 Regular Meeting and Workshop Meeting

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Empowerment Zone/Chapter 380 Grants Backe:round On November 13, 2000 Council approved the Northside Community Neighborhood Plan. One suggestion contained in the plan was the consideration of an Empowerment Zone, a new economic development tool authorized by HB313 in 1999. The Legislation was reviewed at a Council Retreat but no further policy direction was received by staff. Later, after acceptance in the Texas Main Street Program, the potential for economic development incentives for Main Street has been raised again. The following outline discusses the key points regarding both Empowerment Zones and Chapter 380 Grants/Programs. Empowerment Zones To create an Empowerment Zone a municipality must determine the creation of the zone would promote; 1) the creation of affordable housing, including manufactured housing, in the zone; 2) an increase in economic development in the zone; 3) an increase in the quality of social services, education, or public safety provided to residents of the zone; or 4) the rehabilitation of affordable housing in the zone. The municipality must adopt a resolution containing; 1) the determination described by Section 378.002; (above provisions) 2) a description of the boundaries of the zone; 3) a finding by the governing body that the creation of the zone benefits and is for the public purpose of increasing the public health, safety, and welfare of the persons in the municipality; and 4) a finding by the governing body that the creation of the zone satisfies the requirements of Section 312.202, Tax Code. (This provision is similar to the provisions for creating a reinvestment zone, except that it does not require the public hearings and notifications of other taxing entities). The major actions/activities offered by creation of an Empowerment Zone are; 1) waive or adopt fees related to construction of buildings in the zone, including fees related to inspection and impact fees; 2) may enter agreements for etc. sales tax refunds/abatements of municipal sales tax on sales made in the zone (not more than 10 years); 3) may enter into agreements abating municipal property taxes (no more than 10 years); 4) set baseline performance standards, such as the Energy Star Program as developed by the Department of Energy, to encourage the use of alternative building materials that address concerns relating to the environment or to the building costs, maintenance, or energy consumption.