HomeMy WebLinkAboutR-2010-20 Failed/petition Texas Legislature to extend population requirement to 50,000/certain Type B Development Corporation Board retail development projects
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: 8/23/10
Requested By: Stacey Osborne
Department: CMO
Report: Resolution: X Ordinance:
Annronriation
Source of Funds:
Account Number:
Amount Budgeted:
Amount Requested:
Budgeted Item: YES NO
SUMMARY & RECOMMENDATION
The Y2 cent Type B sales tax dollars the City of La Porte collects can be used for specific projects related to
economic development, and those projects are detailed in the Texas Local Government Code. Under the code, cities
with a population ofless than 20,000 are permitted to pursue projects with Type B sales tax dollars that promote
retail business development, but cities with a population greater than 20,000 cannot. For example, under the current
rules, a city with a population of 19,000 could purchase land for the development of an HEB store, but the City of
La Porte cannot because our population exceeds 20,000. As you know, we lack a significant amount of retail in La
Porte. Our citizens have continually asked for more retail development in the City, but we're restricted from
spending Type B sales tax dollars directly on those types of expenditures because of our population size.
We would like to present a resolution amending that particular section of the Texas Local Government code in the
upcoming Texas Legislature. To do so, we would like to go through the Texas Municipal League (TML) at their
Annual Conference in October. The deadline for submitting resolutions for consideration at the Annual Conference
is September 13,2010.
The resolution concerns Section 505.158 of the Texas Local Government Code, which currently authorizes a Type B
Corporation with a population of 20,000 or less to create"... projects that include the land, buildings, equipment,
facilities, expenditures, targeted infrastructure, and improvements found by the corporation's board of directors to
promote new or expanded business development." We would like to propose a resolution extending that population
requirement to 50,000 or less so that we and other cities of similar size to us can pursue retail development with
Type B sales tax dollars.
If this resolution is passed this evening, we will submit it for consideration to the Resolutions Committee at the
TML Annual Conference on October 26 in Corpus Christi. If TML deems the resolution worthy of consideration,
they will then present it to the 82nd Texas Legislature Session in January, 2011.
Action Reauired bv Council:
Consider approval of a resolution extending the population requirements for retail development under the Texas
Local Government Code, Section 505.158.
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RESOLUTION No.
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WHEREAS, the City of La Porte, Texas authorized the creation of the La Porte Development
Corporation, by Resolution No. 99-23, passed on the lih day of July 1999;
WHEREAS, the La Porte Development Corporation was subsequently established as a nonprofit
corporation organized under Article 5190.6, Section 4B, Vernon's Annotated Texas Civil Statutes, and as
such has operated under the rules and regulations enumerated under Section 4B of said statute, since the
Corporation's founding;
WHEREAS, Article 5190.6, Section 4B, Vernon's Annotated Texas Civil Statutes was codified as
Chapter 505 of the Texas Local Government Code, effective April 1, 2009, and the La Porte
Development Corporation has, and continues to be, subject to the rules and regulations enumerated under
Chapter 505 of the Texas Local Government Code, and is now known as a "Type B Corporation" instead
of "4B Corporation";
WHEREAS, Chapter 505 of the Texas Local Government Code allows Type B Corporations to initiate
certain projects, including projects for the purpose of creating or retaining primary jobs, and/or for the
promotion or development of new or expanded business enterprises;
WHEREAS, Section 505.158, Chapter 505 of the Texas Local Government Code authorizes a Type B
Board within a municipality with a population of 20,000 or less to initiate projects including those for
"land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements" when
found by the Type B Board to "promote new or expanded business development";
WHEREAS, the population of the City of La Porte, Texas exceeds 20,000, making the La Porte
Development Corporation ineligible to initiate all of the types of projects allowed by Section 505.158 of
the Texas Local Government Code for promotion of new or expanded business development, apart from
other narrowly tailored projects for promotion of new or expanded business development allowed in other
sections in Chapter 505 of the Texas Local Government Code;
WHEREAS, the City of La Porte believes that Type B Corporations in smaller and mid-sized cities that
exceed a population of 20,000 would be better equipped to promote the development of professional and
retail businesses if given broader authority to promote new or expanded enterprises for every purpose
described in Section 505.158;
WHEREAS, the City of La Porte desires that Section 505.158 of the Texas Local Government Code be
amended to expand the eligibility of Section 505.158 type projects to Type B Corporations located in
cities with populations of 50,000 or less;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS:
That the findings of the City and its actions approving this resolution taken at the council meeting
are hereby approved and adopted.
BE IT FURTHER RESOLVED that the City of La Porte City Council does hereby petition the members
of the Texas Legislature to amend Section 505.158 of the Texas Local Government Code to include Type
B Corporations in cities with a population of 50,000 or less, up from the current limit of cities with a
population of 20,000 or less.
PASSED BY THE CITY COUNCIL of the City of La Porte, Texas this 23rd day of August, 2010.
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Da eonard
Mayor Pro Tern
City Secretary
City Attorney
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