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HomeMy WebLinkAboutO-2010-3248 participation in the Texas Enterprise Zone ProgramREQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 5/10/10 Requested By: Stacey Osborne Department: Administration Report: Resolution: Ordinance: X Exhibits: Public Hearing Notice Exhibits: Texas Enterprise Zone Ordinance Exhibits: Appropriation Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION The Texas Enterprise Zone is an economic development tool for local communities to partner with the State of Texas to promote job creation/retention and capital investment in economically distressed areas of the state. Companies that wish to apply for Texas Enterprise Zone designation must have the nomination of a local community in order to participate. This public hearing is part of the nomination process. Jubal Smith from Pricewaterhouse Coopers LLC is representing Invista, and he will be on -hand to answer any questions of Council and/or the Public. The purpose of this hearing is to receive public input on the consideration of a city ordinance nominating INVISTA SA r.l., 12455 Strang Road, La Porte, TX 77571 for the Texas Enterprise Zone Program as an Enterprise Project. Tax and other incentives may also be discussed at this hearing. At the hearing, interested parties are welcome to attend and present their views for or against the nomination. Following the public hearing, we would like Council to vote on the attached ordinance ordaining the City's participation in the Texas Enterprise Zone Program, designating a liaison for communication with interested parties, and nominating fNVISTA S.a H. to the Office of the Governor Economic Development & Tourism (EDT) through the Economic Development Bank (Bank) as an Enterprise Project (Project). If the ordinance is passed, Invista will be nominated as an Enterprise Project and they will be eligible to apply for State tax abatements. The City of La Porte will not incur any costs as a result of this designation, and we will have used one of our five permitted designations for the 2010-2011 period. and consider action approving the ordinance. Ron Bottoms, City Manager C/5_/10 S 5_to date THE STATE OF TEXAS) COUNTY OF HARRIS) CITY OF LA PORTE) Notice of Public Hearing Notice is hereby given that the City of La Porte will conduct a public hearing at 6:00 P.M. on the 10th day of May, 2010, in the Council Chambers of the City Hall, 604 West Fairmont Parkway, La Porte, Texas. The purpose of this hearing is to receive public input on the consideration of a city ordinance nominating INVISTA SA r.l., 12455 Strang Road, La Porte, TX 77571 for the Texas Enterprise Zone Program as an Enterprise Project. Tax and other incentives may also be discussed at this hearing. At the hearing, interested parties are welcome to attend and present their views for or against the nomination. A regular meeting of the La Porte City Council will follow the public hearing for the purpose of acting upon the public hearing items and to conduct other matters pertaining to Council. Citizens wishing to address Council pro or con during the Public Hearing will be required to sign in before the meeting is convened. CITY OF LA PORTE Martha Gillett, TRMC, CMC City Secretary A QUORUM OF CITY COUNCIL MEMBERS MAY BE PRESENT AND PARTICIPATE IN DISCUSSIONS DURING THIS MEETING; HOWEVER, NO ACTION WILL BE TAKEN BY COUNCIL. THIS FACILITY HAS DISABILITY ACCOMMODATIONS AVAILABLE. REQUESTS FOR ACCOMMODATIONS OR INTERPRETIVE SERVICES AT MEETINGS SHOULD BE MADE 48 HOURS PRIOR TO THE MEETING. PLEASE CONTACT THE CITY SECRETARY'S OFFICE AT #281- 471-5020 OR THE TDD LINE AT #281-471-5030 FOR FURTHER INFORMATION. ORDINANCE NO. An Ordinance of the City Council of the City of La Porte, Texas, ordaining authorizing the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code (Ao); providing tax incentives, designating a liaison for communication with interested parties, and nominating INVISTA S.a r.l. to the Office of the Governor Economic Development & Tourism (EDT) through the Economic Development Bank (Bank) as an Enterprise Project (Project); containing an severability clause; containing an Open Meetings clause; providing an effective date hereof. WHEREAS, the City Council of the City of LaPorte, Texas (City) desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the city and to provide employment to residents of such area; and WHEREAS, the project or activity is not located in an area designated as an enterprise zone; and WHEREAS, pursuant to the Texas Enterprise Zone Act (Act), Chapter 2303, Texas Government Code, Subchapter F of the Act, INVISTA S.a r.l. has applied to the City for designation as an enterprise project; and WHEREAS, the City finds that INVISTA S.a r.l. meets the criteria for tax relief and other incentives adopted by the City on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; and WHEREAS, a duly advertised public hearing to consider this ordinance was held by the City Council on May 10, 2010; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section 1: The City nominates INVISTA S.a r.l. for enterprise project status. Section 2: The following local incentives, at the election of the City Council of the City of La Porte geventing body, are or will may be made available to the nominated project or activity of the qualified business: a) The City may abate taxes on the increase in value of real property improvements and eligible personal property that locate in a designated enterprise zone for up to 4-9 5 years, to the extent eligible for tax abatement under state law and city ordinances. The level of abatement shall be based upon capital investment, and the extent to which the business receiving the abatement creates jobs for qualified employees, in accordance with the City of La Porte Tax Abatement Pey Guidelines and Criteria, Chapter 66 of the La Porte Code of Ordinances, and with "qualified employee" being defined by the Act. b) The City may, as allowed by law, provide business and industrial development services, including: 1) Grants to eligible companies through the city's 4A and 4B Type B sales tax corporation; 2) Chapter 380 tax rebates for projects which significantly enhance the city's tax base; 3) Freeport exemption on property tax for employer's inventory that is shipped outside of Texas; 4) has established a Tax Increment Reinvestment Zone; 5) provision of publicly owned land for development purposes, including residential, commercial, or industrial development; 6) creation of special one-stop permitting and problem resolution centers or ombudsmen; or 7) promotion and marketing services. c) The City may, as allowed by law, provide regulatory relief to businesses, including: 1) zoning changes or variances; 2) exemptions from unnecessary building code requirements, impact fees, or inspection fees; or 3) streamlined permitting. d) The City may, as allowed by law, provide enhanced municipal services to businesses, including: 1) improved police and fire protection; 2) institution of community crime prevention programs; or e) The City may, as allowed by law, provide improvements in community facilities, including: 1) capital improvements in water and sewer facilities; 2) road repair; or 3) creation or improvement of parks. f) The City may, as allowed by law, provide job training and employment services to businesses, including: 1) retraining programs; 2) literacy and employment skills programs; 3) vocational education; or 4) customized job training. Section 3: The enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code, Chapter 312, Section 312.203. Section 4: The City of La Porte City Council directs and designates Stacey Osborne as the City's liaison to communicate and negotiate with the EDT through the Bank and enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. Section 5: The City finds that INVISTA S.a r.l. meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Texas Enterprise Zone Act on the following grounds: (a.) INVISTA S.a r.l. is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction, located outside of an enterprise zone and at least thirty-five percent (35%) of the residents of an enterprise zon e individuals; and business' new employees will be or economically disadvantaged (b.) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities in the area; and (c.) The designation of INVISTA S.a r.l. as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. Section 6: The enterprise project shall take effect on the date of designation of the enterprise project by EDT and terminate on 6 1 15 June 1, 2015 (not less than one year, or more than five (5) years after the date of designation). Section 7: Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or the application to any person or circumstance for any reasons thereof ineffective or inapplicable, such unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect, impair or invalidate the remaining portions thereof, but as to such remaining portion or portions, the same shall be and remain in full force and effect and to this end the provisions of this ordinance are declared to be severable. Section 8. 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 is posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by Chapter 551, Tx. Gov't Code; and that this meeting has been open to the public as required by law at all times during which this ordinance 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 9. This Ordinance shall be effective after its passage and approval. PASSED AND APPROVED this the day of , 2010. CITY OF LA PORTE By: ATTEST: City Secretary APPROVED: Assistant City Attorney Mayor ORDINANCE NJD1Q r ;;J 1 ) An Ordinance of the City Council of the City of La Porte, Texas, authorizing the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code; providing tax incentives, designating a liaison for communication with interested parties, and nominating INVISTA S.a r.l. to the Office of the Governor Economic Development & Tourism (EDT) through the Economic Development Bank (Bank) as an Enterprise Project (Project); containing an severability clause; containing an Open Meetings clause; providing an effective date hereof. WHEREAS, the City Council of the City of La Porte, Texas (City) desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the city and to provide employment to residents of such area; and WHEREAS, the project or activity is not located in an area designated as an enterprise zone; and WHEREAS, pursuant to the Texas Enterprise Zone Act (Act), Chapter 2303, Texas Government Code, Subchapter F of the Act, INVISTA S.A r.l. has applied to the City for designation as an enterprise project; and WHEREAS, the City finds that INVISTA S.i r.l. meets the criteria for tax relief and other incentives adopted by the City on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; and WHEREAS, a duly advertised public hearing to consider this ordinance was held by the City Council on May 10, 2010; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section 1: The City nominates INVISTA S.A r.l. for enterprise project status. Section 2: The following local incentives, at the election of the City Council of the City of La Porte, are or may be made available to the nominated project or activity of the qualified business: a) The City may abate taxes on the increase in value of real property improvements and eligible personal property that locate in a designated enterprise zone for up to 5 years, to the extent eligible for tax abatement under state law and city ordinances. The level of abatement shall be based upon capital investment, and the extent to which the business receiving the abatement creates jobs for qualified employees, in accordance with the City of La Porte Tax Abatement Guidelines and Criteria, Chapter 66 of the La Porte Code of Ordinances, and with "qualified employee" being defined by the Act. b) The City may, as allowed by law, provide business and industrial development services, including: 1) Grants to eligible companies through the city's Type B sales tax corporation; 2) Chapter 380 tax rebates for projects which significantly enhance the city's tax base; 3) Freeport exemption on property tax for employer's inventory that is shipped outside of Texas; 4) has established a Tax Increment Reinvestment Zone; 5) provision of publicly owned land for development purposes, including residential, commercial, or industrial development; 6) creation of special one-stop permitting and problem resolution centers or ombudsmen; or 7) promotion and marketing services. c) The City may, as allowed by law, provide regulatory relief to businesses, including: 1) zoning changes or variances; 2) exemptions from unnecessary building code requirements, impact fees, or inspection fees; or 3) streamlined permitting. d) The City may, as allowed by law, provide enhanced municipal services to businesses, including: 1) improved police and fire protection; 2) institution of community crime prevention programs; or e) The City may, as allowed by law, provide improvements in community facilities, including: 1) capital improvements in water and sewer facilities; 2) road repair; or 3) creation or improvement of parks. f) The City may, as allowed by law, provide job training and employment services to businesses, including: 1) retraining programs; 2) literacy and employment skills programs; 3) vocational education; or 4) customized job training. Section 3: The enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code, Chapter 312, Section 312.203. Section 4: The City of La Porte City Council directs and designates Stacey Osborne as the City's liaison to communicate and negotiate with the EDT through the Bank and enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. Section 5: The City finds that INVISTA S.i r.l. meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Texas Enterprise Zone Act on the following grounds: (a.) INVISTA S.i r.l. is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction, located outside of an enterprise zone and at least thirty-five percent (35%) of the business' new employees will be residents of an enterprise zone or economically disadvantaged individuals; and (b.) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities in the area; and (c.) The designation of INVISTA S.i r.l. as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. Section 6: The enterprise project shall take effect on the date of designation of the enterprise project by EDT and terminate on June 1, 2015 (not less than one year, or more than five (S) years after the date of designation). Section 7: Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or the application to any person or circumstance for any reasons thereof ineffective or inapplicable, such unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect, impair or invalidate the remaining portions thereof; but as to such remaining portion or portions, the same shall be and remain in full force and effect and to this end the provisions of this ordinance are declared to be severable. Section 8. 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 is posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by Chapter 551, Tx. Gov't Code; and that this meeting has been open to the public as required by law at all times during which this ordinance 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 9. This Ordinance shall be effective after its passage and approval. PASSED AND APPROVED this the 1014 day of % , 2010. CITY OF LA PORTE Mayor ATTEST: e(Vaa% City Secretary APPRO ED• Assistant City Attorney