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<br />Department: <br /> <br /> <br />ST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Agenda Date Requested: D c <br /> <br />Appropriation <br /> <br />Requested By: <br /> <br />Source of Funds: <br /> <br />Account Number: <br /> <br />Report: <br /> <br />Resolution: <br /> <br />Ordinance: <br /> <br />Amount Budgeted: <br /> <br />Exhibits: Resolution 20M-16fT ,etter Dated 6/12/06 <br /> <br />Amount Requested: <br /> <br />Exhibits: Letter from Port Crossing Land, L.P. <br /> <br />Budgeted Item: <br /> <br />YES ~O <br /> <br />Exhibits: By TMS: <br />./ FTZ Tax Analysis - Underwood Business Park <br />./ FTZ Tax Analysis - Port Crossing <br />./ FTZ - Analysis (Fictitious Company) <br />Exhibits: Commnnity Tax AnllIY!ii!i Docnment <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />Council has held a couple of workshops to discuss Foreign Trade Zones (February 27,2006 and May 22,2006) <br /> <br />At the June 7, 2006 City Council Meeting Council approved a resolution and letter (attached) supporting the expansion of <br />Foreign Trade Zone to include both Underwood Business Park and Port Crossing. This action paved the way for the formal <br />application and the subsequent "federal benefits and exemptions". <br /> <br />Council, however, has not taken any action regarding "local" inventory exemptions. Council needs to determine what local <br />exemptions, if any, they will consider. Council's decision would set the "de facto" local FTZ exemption for future requests. <br /> <br />The attachments provided by IMS include a projected revenue stream for both Port Crossing and Underwood Business Park <br />based on certain assumptions; followed by a table that estimates the estimated inventory revenue for various levels of local <br />exemptions. They also provided "Community Tax Analysis" document that includes a list of exemptions offered in <br />surrounding communities. <br /> <br />Also included is a table that displays various revenue streams assuming for a fictitious company; <br />./ In the Industrial District (current conditions - 53% of in City tax revenue) <br />./ With a Tax Abatement Agreement (6-year of lO-year period) <br /> <br />Also, Council will need to determine (if a local exemption is approved) if they wish to allow a company to receive both a Tax <br />Abatement and a "local" Foreign Trade Zone exemption. <br /> <br />Action Required bv Council: <br /> <br />Give direction on (local) FTZ exemption. If granted, at what level? Also, provide direction on other parameters; <br />. Allow company to receive only one or both <br />o Tax abatement Agreement (10 year) <br />o (Local) FTZ Exemption <br />. (Local) FTZ Exemption only after tax abatement expires or is terminated <br />o Other <br /> <br />A <br /> <br /> <br />r./o <br />rte ' <br />