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HomeMy WebLinkAboutR-2005-01 Intention to Issue Certificates of Obligation REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Budl!et Requested By: Source of Funds: N/A Department: Account Number: Report: Resolution: X Ordinance: Amount Budgeted: Exhibits: Resolution 2005-XXXX Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION The Texas Tax Code (Chapter 312) requires that cities, electing to participate in tax abatements, first adopt a resolution indicating intent to participate in tax abatements. The resolution does not bind the City to grant any proposed abatements. The Resolution's key findings are: ./ The creation and retention of job opportunities that bring new wealth is the highest civic priority. ./ New jobs and investment will benefit the area economy, provide needed opportunities, strengthen the real estate market and generate tax revenue to support local services. ./ The communities within Harris County must compete with other localities across the nation currently offering tax inducements to attract jobs and investments. ./ The abatement of property taxes, when offered to attract primary jobs in industries which bring in money from outside a community instead of merely re-circulating dollars within a community, has been shown to be an effective method of enhancing and diversifying an area's economy. ./ Texas law requires any eligible taxing jurisdiction to establish Guidelines and Criteria as to eligibility for tax abatement agreements prior to granting any tax abatement, said Guidelines and Criteria to be unchanged for a two year period unless amended by a three- quarters vote. ./ The City of La Porte elects to become eligible to participate in tax abatement. Also, as a matter of housekeeping this resolution will formally repeal Resolution 89-19, which adopted model guidelines and criteria that have expired (and were later superceded by Ordinance 98-2279, which have also expired as they are only good for two years). Action Reauired bv Council: Approve Resolution 2005-121- electing to become eligible to participate in tax abatement. Approved for City Council A2enda ~~~ Debra/r Feazelle, City Manag J-I ~-(j~ Date RESOLUTION NO. 2005-~ A RESOLUTION STATING THAT THE CITY OF LA PORTE ELECTS TO BECOME ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Whereas, the creation and retention of job opportunities that bring new wealth is the highest civic priority; and Whereas, new jobs and investment will benefit the area economy, provide needed opportunities, strengthen the real estate market and generate tax revenue to support local services; and Whereas, the communities within Harris County must compete with other localities across the nation currently offering tax inducements to attract jobs and investments; and Whereas, the abatement of property taxes, when offered to attract primary jobs in industries which bring in money from outside a community instead of merely re- circulating dollars within a community, has been shown to be an effective method of enhancing and diversifying an area's economy; and Whereas, Texas law requires any eligible taxing jurisdiction to establish Guidelines and Criteria as to eligibility for tax abatement agreements prior to granting any tax abatement, said Guidelines and Criteria to be unchanged for a two year period unless amended by a three-quarters vote; and Whereas, the City of La Porte elects to become eligible to participate in tax abatement; Now, therefore be it resolved by the City Council of the City of La Porte: Sectionl. The City Council of the City of La Porte establishes its intent to participate in tax abatement according to procedures established by Chapter 312 of the Texas Property Code titled: Property Redevelopment and Tax Abatement Act. Section 2. The City Council of the City of La Porte hereby directs staff to review its established Guidelines and Criteria Governing Tax Abatement Agreements (Code of Ordinances, Sec. 66-140 through 66-152) and prepare for City Council's consideration, any amendments or modifications that would provide substantially similar levels and terms of abatement currently offered by Harris County. Section 3. Resolution No. 89-19 is hereby expressly repealed. Section 4. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City of La Porte, Texas for the time required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 5. This Resolution shall be in effect from and after its passage and approval. PASSED AND APPROVED this the 24th day of January, 2005. CITY OF LA PORTE By: (2~L,~ Alton E. Porter, Mayor ATTEST: !1fJIlYltt{/jJJi Martha Gillett, Ity Secretary APlZw ~ Knox W. Askins, City Attorney