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HomeMy WebLinkAbout04-06-15 Meeting of the La Porte Development Corporation Board of Directors RICHARD WARREN, PRESIDENTRICHARD WARREN, PRESIDENTMIKE CLAUSEN, BOARD MEMBERMIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, VICEMIKE COOKSLEY, VICE--PRESIDENTPRESIDENTRANDY WOODARD, BOARD MEMBERRANDY WOODARD, BOARD MEMBER JAY MARTIN, BOARD MEMBERJAY MARTIN, BOARD MEMBERNANCY OJEDA, BOARD MEMBERNANCY OJEDA, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBERCHUCK ENGELKEN, BOARD MEMBER CITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDACITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDA   Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on April 6, 2015April 6, 2015, at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, beginning , at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, beginning at 5:30 PM to consider the following items of business:at 5:30 PM to consider the following items of business:   1.CALL TO ORDERCALL TO ORDER 2.AUTHORIZATIONSAUTHORIZATIONS (a)Consider approval of minutes of the meeting of the La Porte Development Corporation Consider approval of minutes of the meeting of the La Porte Development Corporation Board held on March 9, 2015 Board held on March 9, 2015 -- P. Fogarty P. Fogarty (b)Consider approval or other action authorizing Board President Richard Warren to execute Consider approval or other action authorizing Board President Richard Warren to execute an amended and restated Economic Development Agreement with INEOS USA, LLC. an amended and restated Economic Development Agreement with INEOS USA, LLC. - S. LivingstonLivingston 3.DISCUSSION OR OTHER ACTIONDISCUSSION OR OTHER ACTION (a)(a)Discussion or other action in connection with review of economic development program and Discussion or other action in connection with review of economic development program and Discussion or other action in connection with review of economic development program and Discussion or other action in connection with review of economic development program and consider establishing new guidelines for offering incentives to new and/or existing consider establishing new guidelines for offering incentives to new and/or existing businesses in La Porte businesses in La Porte -- S. Livingston S. Livingston 4.SET DATE FOR NEXT MEETINGSET DATE FOR NEXT MEETING 5.STAFF REPORTSSTAFF REPORTS (a)Receive Financial Report Receive Financial Report -- M. Dolby M. Dolby 6.Board member comments regarding matters appearing on agenda; Recognition of Board member comments regarding matters appearing on agenda; Recognition of community members, city employees, and upcoming events; inquiry of staff regarding community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies.specific factual information or existing policies. 7.AdjournAdjourn The La Porte Development Corporation Board reserves the right to meet in closed session on any The La Porte Development Corporation Board reserves the right to meet in closed session on any agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code (the Texas open meetings laws).of the Texas Government Code (the Texas open meetings laws). In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable accommodations for persons attending public meetings. To better serve attendees, requests should be received accommodations for persons attending public meetings. To better serve attendees, requests should be received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019. CERTIFICATIONCERTIFICATION I certify that a copy of the April 6, 2015, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the April 6, 2015, agenda of items to be considered by the Board of the La Porte Development Corporation was placed on the City Hall Bulletin Board on March 31, 2015.Corporation was placed on the City Hall Bulletin Board on March 31, 2015. RICHARD WARREN, PRESIDENT MIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, VICE PRESIDENT RANDY WOODARD, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBER NANCY OJEDA, BOARD MEMBER JAY MARTIN, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF MARCH 9, 2015 March 9, 2015, The City of La Porte Development Corporation Board met on at the City Hall Council 5:00 p.m Chambers, 604 West Fairmont Parkway, La Porte, Texas, at . to consider the following items of business: 1. CALL TO ORDER President Richard Warren called the meeting to order at 5:00 p.m. The following members of the La Porte Development Corporation Board were present: Vice-President Cooksley, Board members Martin, Clausen, Woodard, and Ojeda. Board members Absent: Board member Chuck Engelken. Staff Present: Corby Alexander, Patrice Fogarty, Scott Livingston, Michael Dolby and Clark Askins. 2. AUTHORIZATIONS (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on February 23, 2015 P. Fogarty Board member Clausen moved to approve minutes of the meeting of La Porte Development MOTION PASSED Corporation Board held on February 9, 2015. Vice-President Cooksley seconded. . Ayes: President Warren, Vice-President Cooksley, Board members Ojeda, Woodard, Clausen and Martin Nays: None Absent: Board member Engelken 3. SET DATE FOR NEXT MEETING S. Livingston Board members set the next meeting dates for Monday, April 6, 2015, at 5:00 p.m. and Monday, April 13, 2015, at 5:00 p.m. 4. STAFF REPORTS (a) Receive 2014-2015 Annual Report from Chad Buke, President/CEO of the Economic Alliance Houston Port Region S. Livingston Chad Buke, President/CEO of the Economic Alliance Houston Port Region, provided the 2014-2015 Annual Report and PowerPoint Presentation. Board member Martin questioned if there are any major obstacles to continued economic development for the Houston Port Region in the next 12 months. Mr. Burke responded the two biggest issues are workforce development and transportation. Page 1 of 2 March 9, 2015, La Porte Development Corporation Board Minutes Board member Ojeda asked if there are any feedback or ripple effects of the strikers. Mr. Burke responded not really; and they try to stay in contact with the Plant Managers at Shell and Lyondell-Basell along the ship channel. Mr. Burke also informed turnaround and revamping projects are on hold. BOARD MEMBER COMMENTS regarding matters appearing on agenda; recognition of community 5. members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies. The Board members thanked Mr. Burke for the presentation. 6. ADJOURN There being no further business, Board member Clausen moved to adjourn the meeting MOTION PASSED at 5:24 p.m. Vice-President Cooksley seconded. . Respectfully submitted, ____________________________________ Patrice Fogarty, City Secretary Passed and approved on this 6th day of April, 2015. ____________________________________ President Richard Warren Page 2 of 2 March 9, 2015, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested: 6 April 2015 Source of Funds: N/A Requested By: Scott D. Livingston Account Number: N/A Department: Administration/Economic Development Amount Budgeted: N/A Report: X Resolution: Ordinance: Amount Requested: N/A Exhibit: 2015 Development Agreement, Signed by INEOS Budgeted Item:YES NO Exhibit: Revised INEOS Agreement, 11 Aug. 2014_______ Exhibit: Original INEOS Agreement, 23 Sept. 2013______ SUMMARY & RECOMMENDATION On 11 August 2014, the Board of the La Porte Development Corporation extended the deadline 20142016 from 1 August to 1 August , by which INEOS USA, LLC was required to provide a letter of commitment to construct the estimated $500 million Ethylene Oxide Unit in La Porte, not Texas.Earlier this year, however, INEOS USA, LLC announced plans to develop the Ethylene Oxide Unit in La Porte, Texas. Upon the request of the Board of the La Porte Development Corporation, INEOS USA, LLC has agreed to enter into a new development agreement in which the terms for the Polyethylene Unit remain fully intact, terms pertaining to the development of the proposed Ethylene Oxide Unit have been deleted, and the LPDC is authorized by INEOS USA, LLC to re-commit the $700,000 in funds, previously committed to the Ethylene Oxide Unit, to other economic development projects. Action Required by the La Porte Development Corporation: Consider approval or other action authorizing LPDC Board President Richard Warren to sign and execute the new development agreement with INEOS USA, LLC. Approved for the La Porte Development Corporation Agenda: Corby D. Alexander, City Manager Date This is an Unaudited Statement. City of La Porte La Porte Development Corporation Fund Projections (Section 4B Sales Tax) FY 2014-15FY 2015-2016FY 2016-2017FY 2017-2018 Estimated Beginning Funds$ 3,313,389$ 1,657,240$ 2,298,280 2,092,855 Plus Year to Date Revenues: 1/2 Cent Sales Tax 2,208,630 2,252,803 2,297,859 2,343,816 Interest Income 4,500 4,590 4,682 4,775 Release of District 23 175,000 Release of Project Nebula/Ineos 700,000 Total Revenues 2,388,130 2,957,393 2,302,540 2,348,591 Equals Total Resources 5,701,519 4,614,633 4,600,820 4,441,446 Less Year to Date Expenditures: Payroll 100,367 103,378 106,479 109,674 Supplies 3,000 3,075 3,152 3,231 Services & Charges (Memberships, Training, Advertising, Legal, Utilities) 331,427 339,713 348,205 356,911 Capital Outlay - - - * Debt Service Transfer 1,083,817 680,668 698,519 1,026,610 Total Expenditures 1,518,611 1,126,834 1,156,356 1,496,425 Estimated Year to Funds Before Commitments$ 4,182,908$ 3,487,799$ 3,444,465$ 2,945,021 Commitments Project Nebula/Ineos**$ 700,000 Richard Industrial Group 10,000 ACT Independent Turbo Service, Inc. 260,000 166,000 $ - Current Prospective Projects 875,000 325,000 $ 325,000 - Debt Service Reserve 680,668 698,519 $ 1,026,610 1,037,783 $ 2,525,668$ 1,189,519$ 1,351,610$ 1,037,783 Adjusted Year to Date Funds$ 1,657,240$ 2,298,280$ 2,092,855$ 1,907,238 Previously Funded Projects (Funding in Fund 015 - General CIP Fund) BudgetExpendituresBalance Enhancement Grants 300,000 81,570 218,430 Total 300,000 81,570 218,430 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. **EDC Coordinator awaiting termination letter. C:\\attachedFiles\\10000120\\uploaded\\1427728429_at.xlsxPage 1 REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested: 18 August 2014 Source of Funds: N/A Requested By: Scott D. Livingston Account Number: N/A Department: Administration/Economic Development Amount Budgeted: N/A Report: Resolution: Ordinance: Amount Requested: N/A Exhibit: LPDC Project Score Card - PRIORITIES, 18 Aug. 2014 Budgeted Item: YES NO Exhibit: Exhibit: SUMMARY The 4B Board has the authority to award economic development incentives to encourage a wide variety of priorities regarding the variety of projects for which the Board may wish to consider awarding financial incentives. In any discussion regarding economic development incentives for any industrial or retail project, the Board The maximum abatement for industry, whether for 10% 5 years average of for. These percentages sole basis are too low to be the for awarding an economic development grant to industry. The maximum tax 50%5 years abatement offered for retail development is for . For the caliber of retail development that La sole basis Porte wishes to attract, these percentages are too low to be the for awarding an economic development grant. not discussion is intended to create a rigid framework for offering financial incentives to any particular project, the discussion should provide each of the Board Directors and staff with a better general scale of reference that may be used to offer a financial incentive to a broad range of project types. Enclosed During discussion, please be prepared to share whether any of these values need to be revised. Project's PRIORITY Value (Up to 10) 101 Staff assigned prioritized values, from a maximum of to a minimum of , based upon his understanding of s for various types of projects: New Retail/Restaurant Development (Higher) 10 Retail or Restaurant Re-Development/Blight Removal/EHG (Higher) 9 9 Quality Waterfront Development 8 Main Street Improvements 7 New Retail/Restaurant Development (Lower) 6 Retail or Restaurant Re-Development/Blight Removal/EHG (Lower) 6 Industry - NEW Development (Higher) 5 NEW Office/HQ Development 4 NEW Office/Regional Development 4 Industry - NEW Development (Lower) 3 Industry - RETENTION/EXPANSION (Higher) 3 Industry - RETENTION/EXPANSION (Lower) 2 Airport Re-Development 1 Project's 10 Year TAX or PILOT (Payments in Lieu Of Taxes) Revenue all ure includes estimated tax and/or PILOT revenues for each project type. Please note that some of these values are based upon hypothetical, and, therefore, current best estimates. Project's Multiplier Value (Up to 4) 414 Staff assigned a value, from a maximum of to a minimum of , for each project. A value of means that the project will have a significant multiplier effect to bring new money and/or people into the local economy. A 1 value of means that the project will have little or no multiplier effect to bring new money and/or people into the local economy. # of New Full Time Jobs 0 therefore, current best estimates. Please note that all retail jobs are considered to be Full Time Job Avg. Value 0.150.075 Staff assigned a value, from a maximum of to a minimum of , for each type of 0.15 with each project type. A value of was assigned to higher paying, white collar, engineering, engineering 0.125 design, or executive positions. A value of was assigned to highly skilled positions for a process technician 0.100.075 and/or advanced manufacturer. A value of was assigned to skilled positions. A value of was assigned to unskilled positions. Project's Existing 10 Year Incentives Data in this column identifies all other local incentives, like PILOT abatements under an existing IDA or scheduled TIRZ reimbursements, that any project may be entitled to receive. Regression Analysis regression analysis s best estimate using to tie together all the columns of data. Important assumptions of the formulas are as follows: five Retail projects are times (5x) more valuable to the community than industrial projects. For reference, Tax Abatement Policy please see page #6 of enclosed . not equal to every other project type. Therefore, each p priority is included in the formula. Project's ject is Project's 10 Year Tax or PILOT Revenue Project's Multiplier Value (Up to 4) smaller, more manageable, and easier to compare. For all Retail, Restaurant, Re-Development, and Waterfront Projects, Project's PRIORITY Value (Up to 10) times Project's 10 Year Tax times divided by 1 million For all Industry and Office Projects: times times divided by 1 million Estimated Incentive Value The values in this column are simply the value from the column called 00. 00. Incentive Value Allowed by Tax Abatement Policy Data in this column shows the value of incentive recommended for each project type, according The percentage (%) of tax abatement allowed for each project % Allowed by Tax Abatement Policy current tax abatement policy is enclosed. Staff Comments not Tax Abatement Policies, generally speaking, do sufficiently address the following: retail projects Large costs often associated with such as subsidizing the cost of land, subsidizing the cost of necessary infrastructure, and offering sales tax rebates to attract retail anchors, Expensive removal of blighted structures, and/or re-development expenses, -ndustrial projects like INEOS ($1 billion) which could, at least theoretically speaking, place a facility on industrial-zoned land in La Porte. (Note: The City needs high value, high paying industrial development to go in industrial-zoned areas of La Porte, but a tax abatement rate of 10% - limits.), The lack of parity between the 37% tax abatement and lack of city regulation s two (2) incorporate city limits, The high value of industrial advance manufacturing jobs. (Note: Tax Abatement only considers the ), The potentially high tax value of inventory/business personal property associated with warehouse distribution. Staff Recommendation sole basis for offering economic development incentives for either industrial or retail projects. Additional factors upon which to offer economic development incentives should be considered. In an effort to present an objective, empirical basis by which to value potential economic incentives for a wide variety of project types, staff has cIt should be provide a starting point for discussion and an empirical base upon which a reasoned decision regarding incentives can be determined. Please study the enclosed materials, and especially the assumptions and factors in the enclosed spreadsheet, and be prepared to discuss what assumptions and factors in the spreadsheet, if any, should be revised. At this time, staff is seeking direction from the Board on two primary questions: 1. development incentives; and 2.If those factors are representative, w incentive proposals for Board consideration. Action Required by the La Porte Development Corporation Board: No formal action or vote requested. Approved for the La Porte Development Corporation Agenda Corby D. Alexander, City Manager Date Strategic Plan 2013-2017 City of La Porte, Texas Approved by the City Council on April 8, 2013 Overview On October 27, 2012, the Mayor, City Council, City Manager and key staff of the City of La Porte met together in a retreat planning session. The purpose of that meeting was to establish the Council’s Strategic Plan for the next five years. A report was prepared outlining the City Council’s Mission, Vision and Core Values, as well as six overall goals. Each goal had identified objectives and strategies, with time lines for beginning and completing the goals. On March 9, 2013, the City Manager and his key staff met. Their purpose was two-fold. First, staff reviewedand discussedthe Mission, Vision and Core Values developed by the City Council and createdLeadership Statements for the staff to follow to ensure their work is consistent with the value of the City Council. Secondly, staff reviewedand clarifiedthe goals, objectives and strategies identified by the City Council; if necessary identify additional goals consistent with the overall mission, vision and values; and establish the framework for an action plan. The result of their work is documented in this report. The Strategic Plan will provide a blueprint for action over the next five years. When developing the annual budget, staff will be tasked with making sure that expenditures and programs further the goals and Core Values stated in this document. This provides clear direction to the staff as to what priorities are important to the Council and plans can be made accordingly to make sure that resources are allocated towards those ends. Additionally, this plan is an excellent communication tool that the Counciland the staff can use when speaking with residents and businesses. Many times, ad hoc requests can derail longer-term plans. The Strategic Plan outlines a framework for receiving, prioritizing, and budgeting for resident requests. All participants, staff and Council,agreed to commit to the success of this plan. A plan only becomes a useful and working document when all the participants (as a whole and as individuals) make a commitment to review it regularly, use it monthly, and modify it as needed. It is a tool that can and should be used regularly to track progress, make notes of variations between expectations and actuals, of timelines and expenses, to help accomplish each goal, and to hold one another accountable for updates and completion. 1 Mission Statement The Councilreviewed and revised the Mission Statement& Vision Statementof the City and the results are as follows: The City of La Porte embraces our heritage, community values, and opportunities, while enhancing the quality of life for our citizens. Vision Statement To provide improved infrastructure, to drive economic growth, and to enhance quality of life for our citizens. Core Values The City Council wanted to specify the core values under which the City and its staff function. Core values are the general guidelines thatestablish the foundation for how an organization will operate. Staff then discussed these value statements to define and gain an understanding of what those Core Value meant to staff from a leadership perspective. Staff first discussed what the elements of each Core Value represented, then prepared a Leadership Statement for each one. The listed the following as the Core Values of the City of La Porte: Health & Public Safety: City employees will ensure the health and safety of our citizens by providing and maintaining superior public infrastructure and public safety services. Integrity&Accountability: City employees will be open, honest and transparent, and be accountable to the Council so that Council can be responsive to the citizens. Superior Customer Service: City employees will proactively provide superior customer service in a positive and timely manner. Quality in everything we do: City employees will strive for superiority in all services we provide. 2 Goal and Plan Development During the Council Retreat in October 2012, six goals were developed by the Council, with staff providing assistance to flesh out the objectives for each. In March 2013, the staff further added “meat to the bone” to outline more specifically the actions that would be necessary to achieve the stated goals. The development and implementation of the action plan will serve to provide Council a clear understanding of how and when each of their goals will be accomplished.The action plan proposesto do the following: Identify a team leader: Each Goal needs a champion who will lead the effort to accomplish the goal and be held accountable for the action plan that is developed. A team leader for each goal was assigned. Identify team members. Likewise each goal needs a larger team, consisting of fellow staff from across all departmental lines where appropriate, to assist in the implementation process. Identify partners. Each team should identify the partners, outside the city organization, who can provide expertise and resources to accomplish the goal. Define action steps. Each objective needs defined action steps showing Council how the goal will be accomplished. The action steps provide the basis for benchmarks. Prepare a timeline. Timelines were prepared for each of the objectives. Staff will be asked to review those timelines and recommend adjustments, one the action steps are better defined. The Council-identified goals are: Improve Infrastructure Preserve Heritage –to preserve the structure and amenities that make La Porte unique Ensure that all departments and facilities are ready for any disaster To encourage economic development/retail development To provide Superior Customer Service To revitalize blight/146 In addition to the six Council-identified goals, it was agreed that keyareas of city government were not included in the goals identified by Council. Staff was tasked with discussing other areas where they would establish goals and objectives and bring them to Council for consideration and approval to include in the Strategic Plan. Several new goals were identifiedand are proposed for Council consideration: To provide and maintainsuperior public safety Continue to improve the quality of life through recreational amenities Create a Neighborhood Preservation Program Provide diverse and timely communications that promote and influence a positive public perception of La Porte One critical component to ensuring that the elements of the Strategic Plan are being implemented is to provide regular status reports to the City Council. Staff proposesquarterly written reports supplemented byoral reports or action items for implementation that may be necessary in- between written reports. 3 4 Quarter/YearQuarter/YearQuarter/Year Completion Completion Completion ContinuousContinuous Q4 2013Q1 2017Q1 2017Q4 2013Q1 2017 20132013201320132013 3333 2 QQQQQ QuarterlyQuarterlyQuarterlyQuarterlyQuarterlyQuarterlyQuarterlyQuarterlyQuarterly AnnuallyAnnuallyAnnually ininin --- CheckCheckCheck (2 miles by contract and 1 mile by City crews) Quarter/YearQuarter/YearQuarter/Year Budget for Budget for Budget for Budget for Budget for Budget for ContinuousContinuous Goal 1: Improve Infrastructure year one Currently Q1 2014Q1 2014Q1 2014 year oneyear oneyear oneyear oneyear one Start Start Start 2 miles concrete) through smoke testing and televising lines Continue annual sanitary sewer inflow and infiltration program - (4 mile asphalt, 1.5 miles to be rehabilitated to be rehabilitated based on data from condition evaluation Council Identify the number of miles to be replaced Identify the number of actual water lines miles per year miles per year linear feet actual annuallyevaluate needs annuallyevaluate needs annually Identify the number of Identify the number of 3 at Evaluate conditionsEvaluate conditions evaluate needs main 6 - : Street repair at 5.5 ater PrioritizePrioritizePrioritize Replace w StrategiesStrategiesStrategies --- ReReRe 1.2.3.4.1.2.3.4.1.2.3.4. Objective 1c: : 1a 1b ObjectiveObjective 5 Throughout the Quarter/Year Completion Continuous Q4 2013Q1 2017 Year QuarterlyQuarterlyQuarterly Annually in - Check Throughout the Quarter/Year Budget for Continuous Q1 2014 year one Start Year through televising storm sewer lines, drainage repairs per year inspecting outfalls, and observing conditions after rain events based on data from condition evaluation to be rehabilitated in smaller, isolated drainage facilities evaluate needs annually Evaluate conditions 00,000 Identify the 3 Team Leader: David Mick Objective 1d: Complete $ Prioritize Strategies - Re 1.2.3.4. into La Porte’s rich history and complete within 5 6 Quarter/YearQuarter/Year Completion Completion Q2 2013Q3 2014Q3 2014Q4 2013Q3 2015Q3 2015Q4 2017Q4 2013 to preserve the structure and amenities that make La Porte unique AnnuallyAnnuallyAnnuallyAnnuallyAnnuallyAnnuallyAnnuallyAnnually inin -- CheckCheck Objective 2b: To optimize historic Main Street in a way that encourages small business development Objective 2a: To promote historical structures available to the public that provide a historical look Quarter/YearQuarter/Year Q4 2013Q2 2014Q2 2014Q4 2012Q3 2014Q3 20144Q4 2012 201 Start Start 1 Q Secure funding and obtain historical designation from the State up and Develop agreements with LPBHS to operate as part of the Research for period furniture and accessories to highlight the Implement a broader, more robust Enhancement Grant existing zoning with a goal to encourage small business Identify and address ways to broaden and strengthen the Review and promote the Enhancement Grant Program, - Reach out to private and public entities for start Continue to promote the enhancement grant program owner on Main Street, – to open the original Northside Schoolhouse Council Goal 2: Preserve Heritage Begin physical improvements to structures Enhancement Grant Program, and Secure good title to the properties Meet with each business implementation Program. Museum Review facility. growth StrategiesStrategies (b)(d) (a)(c) 1.2.3.4.5.6.1.2. years 7 Alone SitingQuarter/Year Completion Q4 2013Q4 2017Q4 2013Q4 2013 Objective 2c: Identify additional historic structures that may be eligible for inclusion in the Heritage Park site or Stand : To optimize historic Main Street in a way that encourages small business development AnnuallyAnnuallyAnnuallyAnnuallyAnnuallyAnnually in - Check Quarter/Year As identifiedAs identified Q4 2012Q4 2013Q2 2014Q4 2012 Start Survey these communities to learn what they did to develop term financial incentives to attract Main Street Structure an incentive program and/or set of popular ures and Identify funding sources and set up installation/operational Develop agreements with LPBHS to operate as part of the Research for period furniture and accessories to highlight Identify the steps needed to further improve our own main Identify communities whose Main Street program and Explore and identify other potential historical struct initiatives to support and implement our objectives. development represent our goals & aspirations, improvements to structures (s), their main street program street program, and Begin physical prepare a listing the facility. - Review short Museum development budgets Team Leader: Stephen Barr (continued) Strategies (b)(d) (a)(c) 1.2.3.4.5. 3. Objective 2b of 8 Review, revise, and distribute City emergency plans each year for departments to update. New employees should receive a copy each year4 of each year Completion Q2 each year Quarter/Year Completion Quarter/Year OngoingOngoing Ongoing 4 of QQ facilities are ready for any disaster in in - Check- Check Conduct a citywide drill simulating a specific emergency event or disaster on an annual basis Q1 each year Quarter/Year Quarter/Year OngoingOngoing Q2 2013 Start Start Q1Q1 orientation. Goal 3: Ensure that all departments and Conduct an annual drill to include EOC staff and critical Conduct an annual drill to include EOC staff, LEPC members Add facility preparation (generators, window treatments, Require each department to turn in a revised emergency plan to Make sure Human Resources has the proper information to give to new employees regarding their role and responsibilities for Assign a department emergency coordinator the responsibility their respective roles and responsibilities regarding emergencies at new of training new employees in their respective roles personnel from all departments of each year Council recovery systems) st EOC by May 1 and LPISD Team Leader: Jeff Suggs disasters Strategies Strategies 1.2.3. Objective 3a: 3b: 1.2.3. Objective 9 Quarter/Year Completion 201472014 201 242 QQQ encourage economic development/retail development Quarterly Annually in Q4 2013 - Check Quarter/Year Increase retail business measured by sales tax revenues and new business permits 342013 201201 Start 313 QQQ Start to implement a broader, more robust program to attract throughs for potential offered to industrial, development by using the Start to implement a broader, more robust Enhancement Remove obstacles to building permits and site inspections for recommendations from the Planning Audit to Meet with each business owner on the Broadway shopping strengthen the Identify incentives that may be used to attract new retail Review and promote the Enhancement Grant Program, “Dress up” facades on Broadway shopping center Identify and address ways to broaden and Offer incentives to retail similar to those development, and - business improvement and new businesses Goal 4: To Implement commercial courtesy walk Enhancement Grant Program, and - new retail development and re ew retail incentive program. Council streamline these processes - development and re Grant Program. i.e. “retail zones” Implement remodels center, Strategies n (b)(b)(d)(b) (a)(a)(c)(a) 1.2.3. a: 4 Objective 10 Development plan as a revenue generating property. Enhance revenues to the City by 20%. Quarter/Year Completion Q4 2017 2014 4 Q Annually in Q2 2014 - Check Quarter/Year 4Q3 2013 Q1 201 Start ents will be necessary to attract Ask the Governor’s office ED and DOT what improvements determine how important the airport is to them and identify should be made to the airport so that we can use the airport Get involved in HCREN, BACREN, ICSC, SIOR, ACRP, Identify and survey prospective businesses to determine interest if further improvements were to be made to the businesses to their current level of interest and prospective level of n asset to attract more companies to La Porte, what would need to be done to attract more of their Implement findings from the Catalyst Retail Study, Create a development map of available properties, many vacancies Market to brokers, developers, and end users. Survey our existing industries and large on Spencer – Explore lease options on properties Bring our airport into our Economic Promote opportunities for retail new business to the airport. Identify which improvem and CCIM events, and airport, and business, as a Strategies (b)(d)(b)(d) (a)(c)(a)(c) b: 1.2. 4 Objective 11 Quarter/Year Completion Q4 2017Q4 2017 AnnuallyAnnually in business development by 10%. - Check Quarter/Year 20132013 Start 33 QQ leading citizens to determine what types of development the leading citizens to determine what types of development the Survey the City Council, P&Z Commission, ED Board, and Survey the City Council, P&Z Commission, ED Board, and Objective 4c: Utilize Bay Front for possible Economic Development. Increase Get involved in HCREN, BACREN, ICSC, SIOR, ACRP, Get involved in HCREN, BACREN, ICSC, SIOR, ACRP, Create development maps and marketing collateral,Create development maps and marketing collateral, Implement findings from the Catalyst Retail Study,plement findings from the Catalyst Retail Study, Market to brokers, developers, and end users.Market to brokers, developers, and end users. Encourage other private development/investment Breakwater Marina with waterfront restaurant community will support,community will support. and CCIM events, and and CCIM events, and Team Leader: Scott Livingston Strategies Im (b)(d)(b)(d) (a)(c)(e)(a)(c)(e) 1.2. 12 Quarter/YearQuarter/YearQuarter/Year Completion Completion Completion Q1 2017Q1 2017Q2 2014 44 Q4 201 201 4 Q QuarterlyQuarterlyQuarterly AnnuallyAnnually ininin --- CheckCheckCheck Objective 5c: Conduct quality professional development to ensure that all employees are properly trained Goal 5: To provide Superior Customer Service Quarter/YearQuarter/YearQuarter/Year Currently underway 44Q1 20132013 Q1 201201 Start Start Start Objective 5a: Implement 100% employee customer service training by the end of 2013 23 QQ supervisors and prepares line employees employees to successfully become effective managers and 120 the Trainer workshop for managers/staff who will Develop a comprehensive training program that addresses house versus third party training Evaluation of succession training to prepare current line - Provide Customer Service Excellence training for 80 Objective 5b: Conduct audit on 100% of processes of all City departments train others on Customer Service Excellence for the future Implementation of selected supervisory training Identify areas of need for existing supervisors Decide which departments to review and when Council modules to address those needs - to step into supervisory roles Evaluate options for in issues facing existing Professional services supervisors - Provide Train employees StrategiesStrategiesStrategies (b) (a)(c)(d) 1.2.1.2.1. tract development along 146 by facilitating contact, providing information, and offering incentives to development 13 Quarter/Year Completion Q4 2017Q4 2017 2013 4 Q Annually Annually in - Check Quarter/Year Goal 6: To revitalize blight/146 201320142013 Start Q1 33 QQ Create a plan to put the necessary infrastructure inputs into - that cater to our industry types for Create abatement programs/EDC incentives and infrastructure Production of data (census, current demographics stats, BDG, place that will attract new retail development and re Get involved in HCREN, BACREN, ICSC, SIOR, ACRP, incentives and infrastructure inputs needed to attract new commonly sought or needed Create a development map of available properties and Implement findings from the Catalyst Retail Study, etc.) for use of customers in decision making process Market to brokers, developers, and end users. Council Survey active and prospective customers, development, and inputs consistent with needs of applicants style development park Identify and document the Target retail and office users nts, and - types consistent with our industry/market retail development/re marketing collateral, and CCIM eve development. Objective 6a: Promote greenfield - a campus Strategies (b)(d)(b) (a)(c)(a)(c) 1.2.3. tract development along 146 by facilitating contact, providing information, and offering incentives to , providing 14 Objective 6b: Promote revitalization and development where appropriate along 146, Main, and Broadway by facilitating contact Quarter/Year Completion Ongoing Q4 2017Q4 2017 2013 4 Q AnnuallyAnnually in - Check Quarter/Year industry/market 2013Q1 2014Q1 20142013 Start 33 QQ the necessary infrastructure inputs into - Market our City to ICSC (International Council of Shopping Target code enforcement on said thoroughfares through a Create abatement programs/EDC incentives and infrastructure Production of data (census, current demographics stats, BDG, place that will attract new retail development and re Get involved in HCREN, BACREN, ICSC, SIOR, ACRP, information, and offering incentives to development types consistent with our incentives and infrastructure inputs needed to attract new Identify and document the commonly sought or needed Create a development map of available properties and Implement findings from the Catalyst Retail Study, etc.) for use of customers in decision making process Market to brokers, developers, and end users. Survey active and prospective customers, development, and inputs consistent with needs of applicants Centers) and Site Selection Consultants development types consistent with our industry/market “carrot vs. stick” approach to blight : Promote greenfield and CCIM events, and - Create a plan to put retail development/re marketing collateral, development. (continued) Strategies (b)(d)(d) (a)(c)(e) (f) 4.1.2.3. Objective 6a : Promote revitalization and development where appropriate along 146, Main, and Broadway by facilitating contact, 15 Ongoing our industry/market 2013 3 providing information, and offering incentives to development types consistent with Q Market our City to ICSC (International Council of Shopping d in HCREN, BACREN, ICSC, SIOR, ACRP, Create a development map of available properties and Implement findings from the Catalyst Retail Study, Market to brokers, developers, and end users. Centers) and Site Selection Consultants and CCIM events, and marketing collateral, Get involve Team Leader: Scott Livingston (continued) (b)(d) (a)(c) 4. Objective 6b 16 emergency services departments for both paid employees and volunteer members. Quarter/Year Quarter/Year Completion Completion OngoingOngoing Q4 2016 OngoingOngoingOngoingOngoing in in Q3 2013Q1 2014Q3 2013 Q4 2013Q2 2014Q2 2014Q3 2013 - - Check Check Goal 7: To provide and maintain superior public safety Quarter/Year Quarter/Year Q1 2013Q1 2013Q1 2013 Q2 2013Q4 2013Q4 2013Q1 2013 Start Start Enhance communications infrastructure and promote interoperability Identify national standards relating to recommended staffing for Put a system in place to ensure proper system maintenance Work to attract and hire the most qualified candidates by Create and maintain an employee development program existing employees at all levels within the organization. all communication developing a comprehensive recruitment program. Ensure all radio systems meet current and future levels for each emergency service department. appropriate staffing levels in all Identify current deficiencies within systems and work to correct them. and replacement when needed. Staff Develop retention incentives. requirements. 7b: Maintain Strategies Strategies 1.2.3.4. 1.2.3. Objective 7a: Objective 17 promote l effectiveness. Quarter/YearQuarter/Year Completion Completion that OngoingOngoingOngoingOngoingbjective 7d: Identify and employ best strategies, management practices, policies and procedures, and organizational systems OngoingOngoing accountability, open communication, collective responsibility, visionary leadership, fiscal responsibility, and organizationa inin Q3 2013Q3 2013Q2 2014Q3 2013Q1 2014Q1 2014 -- CheckCheck Coordinator Jeff Suggs Quarter/YearQuarter/Year Q1 2013Q1 2013Q4 2013Q1 2013Q3 2013Q3 2013 Start Start Objective 7c: Identify and capitalize on advanced technologies as a force multiplier. Team Leaders: Chief Ken Adcox, Chief Mike Boaze, Emergency Management Focus on trend/ pattern analysis using incident geographical practices” organizational certifications and accreditations. - national “best Create appropriate inspection and auditing systems. es: cameras, air Improve the community warning system. Seek out and attain available state and readers, etc.mapping in order to target resources. response safety program, Develop crime prevention measur monitoring, license plate Develop a StrategiesStrategies 1.2.3.4.1.2. O 18 Quarter/YearQuarter/YearQuarter/Year Completion Completion Completion Q4 2014Q4 2014Q4 20144Q4 2014Q3 2015 Q3 201 Continue to improve the quality of life through recreational amenities QuarterlyQuarterlyQuarterlyQuarterly InInIn 4 --- 201 CheckCheckCheck 3 Q Quarter/YearQuarter/YearQuarter/Year Q1 2014Q1 2014Q1 2014Q1 2015 44 Q3 201 201 Start Start Start 3 Q locations of future sprayparks and make recommendations equestrian/bicycle/pedestrian trail in Replacing lighting system at 9 soccer fields at Northwest Continue paving sections of various sections of infill trail into the City’s Capital effective aquatic facilities benefit analysis for potential Improvement Plan for upcoming FY 2014 budget Budget retreat sports field infrastructure ) s Continue trail system implementation ( - Include recommended location at next Pre - Continue to offer modern and cost Goal 8: - Evaluate options and cost Installation of spraypark Obtain easements for for implementation Staff mprove Maintain and i Stephen Barr Lomax Park StrategiesStrategiesStrategies 1.2.1.1.2.3. Objective 8a: Objective 8c: Team Leader: Objective 8b: 19 Quarter/YearQuarter/YearQuarter/Year Completion Completion Completion ContinuousContinuousContinuous Q4 2013Q1 2015Q1 2014 environment of open communication and cooperation with existing neighborhood groups Quarterly AnnuallyAnnually InInIn --- CheckCheckCheck Create a Neighborhood Preservation Program Quarter/YearQuarter/YearQuarter/Year Q4 2013Q4 2013Q4 2013Q3 2014Q2 2014 3 Improve City coordination to respond to neighborhood issues and concerns 201 Start Start Start 3 Q , to comprehensively address Establish regular communications with neighborhood groups and update at least annually ek neighborhood input and comments regarding neighborhoods, such as new code enforcement regulations engineering, Continue investing in neighborhood improvement initiatives Create centralized database of neighborhood/HOA and regarding important City matters and issues affecting Create education/outreach program (Neighborhood Create a neighborhood matching grant program for Create a cross departmental team, including Goal 9: leaders with contact information inspecting, planning and police Staff community improvements issues impacting them eighborhood issues University) Actively se Tim Tietjens Create an StrategiesStrategiesStrategies n 1.2.3.4.1.1. Objective 9b: Objective 9c: Team Leader: Objective 9a: 20 Provide diverse and timely communications that promote and influence a positive public perception of La Porte Quarter/YearQuarter/Year Completion Completion Q2 2014Q3 2014Q3 2014 QuarterlyQuarterly InIn -- CheckCheck Quarter/YearQuarter/Year Q1 2014Q2 2014Q2 2014 Start Start Create effective methods for utilizing development partners City is disseminated in a timely and position professional manner and meets the needs of the various Engage development partners to positively promote the city Develop a communication strategy that ensures that Recruit and hire individual to fill communications, Identify scope and job description for Marketing/PR audiences within and outside of the City marketing, and public relations needs to help promote the City information about the Staff Goal 10: Traci Leach StrategiesStrategies 1.2.1. Objective 10a: Objective 10b: Team Leader: CityofLaPorte BUSINESS. BY THE BAY! ECONOMIC DEVELOPMENT INCENTIVES La Porte, Texas 604 W. Fairmont Parkway La Porte, Texas 77571 (281) 470-5016 Local Incentives Tax Abatements The City of La Porte offers ad valorem tax abatements for new construction of the following qualifying facilities within the City’s corporate limits: • Regional Distribution/Service (up to 10%) • Manufacturing/Other Basic Industry (up to 10%) • Retail/Commercial Office/Regional Entertainment (up to 50%) To be eligible to apply for an abatement, a company must meet the following criteria: • Minimum Capital Investment: $3 million • Minimum Job Creation: 10 • Term of abatement: averaged over five (5) years For further information about our tax abatement program, please contact Scott D. Livingston in the Economic Development Department at (281) 470-5016 or livingstons@laportetx.gov. Industrial District Agreements To attract a business into an area, a city may choose to encourage the business to locate in the city’s Extraterritorial Jurisdiction (“ETJ”). If the business locates in the city’s ETJ, the City Council may enter into an agreement not to annex the business property for a set period of time. The agreement may call for the business to pay the city an annual fee in lieu of taxes for the use of city facilities. The city may also provide certain contractual services (i.e. firefighting services) to the business during the non-annexation period. Tax Increment Reinvestment Zone Developers of business property within a defined area (i.e. business parks, service centers) may receive municipal financing assistance through the use of tax increment financing. The City Council may create a Tax Increment Reinvestment Zone (TIRZ) where construction of public improvements using tax increment funds is likely to result in significant commercial investment. The cost of improvements within the zone is repaid by the contribution of future tax revenues by each taxing unit that levies taxes on the affected properties. Once the city initiates tax increment financing, counties and school districts may also participate in the tax increment financing program. Public Improvement Districts A Public Improvement District (“PID”) enables a commercial area to make improvements benefiting the area and spread the cost equally among all properties. Property owners are assessed based on benefit. These assessments may be used to pay the debt service on bonds or they may be used to pay for services directly if no bonds are issued. PID funds may be used to purchase real property in connection with improvements. Improvements include a wide variety of enhancements such as water and wastewater, streets, drainage, parking, landscaping, etc. Harris County Incentives City of La Porte Economic Development Incentives, Page | 2 Foreign Trade Zone The City of La Porte supports companies applying for this federal exemption from state and local ad valorem taxes on tangible personal property imported from outside the United States, and held in a Foreign Trade Zone (FTZ) for the purpose of storage, sale, exhibition, repackaging, assembly, distribution, sorting, grading, cleaning, mixing, display, manufacturing or processing and tangible personal property produced in the United States. Property must be held in a Foreign Trade Zone for exportation, either in its original form or as altered by any of the above processes. This program is managed by the Port of Houston Authority. Freeport Exemption(La Porte ISD) The Freeport Exemption exempts personal property consisting of inventory goods or ores, other than oil, natural gas and petroleum. Eligible property must be transported out of the state within 175 days of acquisition but may first be assembled, stored, manufactured, processed or fabricated locally. Currently, Freeport Exemptions are offered by the LPISD. Municipal Grants–Chapter 380 The City Council of the City of La Porte may provide loans and grants of city funds as well as city employees and equipment to promote economic development projects within the city. Eligible projects involving significant investment may contract with the City to receive sales tax grants, franchise fee grants, water or sewer line extensions, building permit fee waivers and grants for capital recovery fees. Chapter 313 The La Porte ISD may offer an incentive to new and expanding industries through a Chapter 313 Agreement, which offers a temporary limitation for school property tax purposes on the property’s value. The school district may defer for 8 years the time before a new investment project goes onto the tax rolls at full value. The limitation on the taxable value of a project does not take effect until the third year of the project. A taxpayer may also make a separate application to the school district for a credit for taxes paid during the first two years on the value of property in excess of the limitation amount. Harris County Incentives City of La Porte Economic Development Incentives, Page | 3 Harris County Incentives Tax Abatement New projects the meet the following criteria qualify for Tax Abatement in Harris County: (1) Increase the tax roll value of new real property by at least $1,000,000; (2) create at least 25 new full-time permanent positions at the project site; and (3) are competitively sited (i.e. Senior Management is actively evaluating jurisdictions in addition to Harris County and, but for the tax abatement, the project would not be constructed in Harris County); and (4) must be shown not to solely or primarily have the effect of transferring employment from one part of the County to another. Amount of the tax abatement is a standard 50 percent per year, up to ten years. Leadership in Energy and Environmental Design (LEED®) Tax Abatement If the owner of new commercial construction has registered with the U.S. Green Building Council (“USGBC”) seeking LEED Certification, then the County Community Services Department (“CSD”) may recommend approval of a partial tax abatement for the incremental investment associated with obtaining such certification. The Agreement shall be effective up to 10 years, at a percentage based upon the level of certification actually obtained after completion of construction. The minimum value increase requirement derived from the “Imputed LEED-Related Value Increment” to meet the eligibility test is $100,000. Applicant must be registered with USGBC seeking LEED Certification, prior to submitting its application to the County. Additional Incentive for Locating New Project in HUD-Designated Low Income Target Area in the County Construction of a new eligible facility in a “HUD-Designated Low-Income Target Area” within the County, as determined on the application date, may enable CSD to recommend that Commissioners Court approve an additional tax abatement up to 10%. A qualifying project must nevertheless meet the three basic requirements to for an economic development tax abatement: (1) creation of at least $1 million in new tax roll value, (2) creation of at least 25 new permanent full-time jobs, and (3) competitive siting. A specific “Target Area Project Site Incentive” provision must be contained in the Agreement approved by Commissioners Court and cannot be added at a later date. Additional Incentive for Full-Time Permanent Job Creation for Residents of HUD- Designated Low Income Target Areas in the County Construction of a new eligible facility resulting in creation of jobs for residents of “HUD- Designated Low-Income Target Areas” within the County, as determined on application date, may enable CSD to recommend that Commissioners Court approve an additional tax abatement up to 20 percent. A qualifying project must meet the three basic requirements to for an economic development tax abatement: (1) creation of at least $1 million in new tax roll value, (2) creation of at least 25 new permanent full-time jobs, and (3) competitive siting. Harris County Incentives City of La Porte Economic Development Incentives, Page | 4 State of Texas Incentives Texas Enterprise Fund The Texas Enterprise Fund provides financial resources to help strengthen the state's economy. The Governor, Lieutenant Governor, and the Speaker of the House must unanimously agree to support the use of the Texas Enterprise Fund for each specific project. Projects that are considered must demonstrate a project's worthiness, maximize the benefit to the State of Texas and realize a significant rate of return of the public dollars being used for the project. Significant job creation and capital investment, above average wages generated, financial strength of the applicant, applicant's business history, analysis of the relevant business sector, and financial support from the local community and private sector will all be significant factors in approving the use of the Enterprise Fund. Texas Emerging Technology Fund The Texas Emerging Technology Fund provides Texas with an unparalleled advantage in the research, development and commercialization of emerging technologies. The program works through partnerships between the state, institutions of higher education and private industry and is dedicated to three areas: Regional Centers of Innovation and Commercialization; matching grant funds for R&D projects that accelerate commercialization and that have demonstrated an ability to receive or have received federal grants or non-state grants; and assisting Texas public universities in attracting highly renowned research teams from universities and institutions in other states. Skills Development Fund The Skills Development Fund offers funding to train employees through customized job training programs provided by the state's community colleges. This fund is administered by the Texas Workforce Commission, is application driven and competitively based. The grants are provided to community colleges and technical schools as part of a partnership with companies and labor unions to provide training not currently available in the region. Average training grants per trainee are $1,000. Texas Enterprise Zone Program The Texas Enterprise Zone Program allows local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas. Companies may qualify for refunds of state sales tax paid on eligible items used at the qualified business site. The total amount of any refund is predicated on the investment amount and number of jobs created/retained at the qualified business site. In order to qualify, companies must commit that at least 25% of their new employees will meet economically disadvantaged or enterprise zone residence requirements - if the company is locating or expanding into one of the state's Enterprise Zones. If the company is not locating into one of the Enterprise Zones, then they must commit that at least 35% of their new employees will meet economically disadvantaged or enterprise zone residence requirements. Manufacturing Sales Tax Exemption Machinery and equipment that is used in the manufacturing, processing, fabricating or repairing of tangible personal property for ultimate sale, are exempt from state and local sales State of Texas Incentives City of La Porte Economic Development Incentives, Page | 5 tax. This incentive is also applicable for natural gas and electricity consumed by companies that use more than 50 percent of their utilities in the manufacturing, processing or fabricating of products for resale. Tax Exempt Industrial Revenue Bonds Tax Exempt Industrial Revenue Bonds are designed to provide tax-exempt financing to finance land and depreciable property for eligible industrial or manufacturing projects. The maximum bond amount is $20 million (which can include certain capital and administrative costs). These bond issues must receive a reservation under the State's volume limitation ("volume cap") managed by the Texas Bond Review Board. Texas Product Development Fund The Texas Product Development Fund provides financing to aid in the development, production and commercialization of new or improved products within the state. Products appropriate for the fund are inventions, devices, techniques or processes that have advanced beyond the theoretical stage and are ready for immediate commercial application. Preference for funding will be given to the state's defined industry clusters within emerging technology fields, including: semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace. Businesses with unencumbered assets that are available to collateralize loans are suited for further consideration of this fund. Texas SmallBusiness Fund The Texas Small Business Fund provides financing to foster and stimulate the development of small and medium sized businesses in Texas. Special funding preferences will be given to emerging technologies including: semiconductors, nanotechnology, biotechnology and biomedicine, renewable energy and aerospace. Additional preference will apply to applicants that have acquired other sources of financing, have formed companies in Texas and are receiving assistance from designated state small business development centers or through the Small Business Innovation Research program (SBIR). Pollution Control Property Tax Abatement This incentive is available to companies with facilities, devices and equipment used to control air, water or land pollution. Companies wishing to apply for tax relief for their efforts in controlling pollution can apply for a tax credit from the Texas Commission on Environmental Quality (TCEQ). Texas Economic Development Act The Texas Economic Development Act is a mechanism for school districts to offer temporary property tax limits to companies undertaking a large-scale capital investment project in the community. Under current law, only the following project categories are eligible: manufacturing; research and development; clean coal projects; advanced clean energy projects; renewable energy electric generation; and nuclear electric power generation. State of Texas Incentives City of La Porte Economic Development Incentives, Page | 6 Key Contacts CITY OF LA PORTE www.laportetx.gov Mailing Address: 604 West Fairmont Pkwy. La Porte, TX 77571 Scott D. Livingston, Economic Development Coordinator (281) 470-5016 livingstons@laportetx.gov Corby Alexander, City Manager (281) 470-5011 alexanderc@laportetx.gov Traci Leach, Assistant City Manager (281) 470-5012 leacht@laportetx.gov HARRIS COUNTY COMMUNITY SERVICES DEPARTMENT www.csd.hctx.net Mailing Address: 8410 Lantern Point Dr.- Annex M Houston, TX 77054 Phone: (713) 578-2000 Email: hrc@csd.hctx.net STATE OF TEXAS ECONOMIC DEVELOPMENT AND TOURISM DIVISION www.texaswideopenforbusiness.com Mailing Address: P.O. Box 12428 Austin, Texas 78711-2428 Phone: 512-936-0100 Fax: 512-936-0080 Email: locatetx@governor.state.tx.us Contact Information City of La Porte Economic Development Incentives, Page | 7 LA PORTE ENHANCEMENT GRANT PROGRAM The La Porte Enhancement Grant Program, which is sponsored by the La Porte Development Corporation,offers matching grantstobusinesseswhich are locatedin the La Porte Enhancement Grant District. A map of the La Porte Enhancement Grant District is provided in the full explanation of the program. Eligible improvements of the EGP include facade renovation, beautification projects, and new awnings, canopies, porches, and signage. A single owner of multiple properties may apply for grant funds for each property owned, but each matching grant must be for more than $2,500 and less than $25,000 per property. Each program application will be evaluated on a case-by-case basis. Interested business owners are welcome to complete the enclosed application form. Please deliver applications to the following address: Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 Please contact Scott D. Livingston at livingstons@laportetx.gov or 281/470-5016, if you have any questions about the La Porte Enhancement Grant Program. Sincerely, Scott D. Livingston Economic Development Coordinator City of La Porte L PORTE BY THE BAY A 604 W. Fairmont Parkway La Porte, Texas 77571 281/470-5016 BUSINESS. BY THE BAY. La Porte Enhancement Grant Program The La Porte Enhancement Grant Program provides matching funds to enhance and/or beautify businesses in the La Porte Enhancement Grant District which is outlined with a bold black linebelow. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 1 BUSINESS. BY THE BAY. ELIGIBLE PROJECTS Business owners may be eligible for a reimbursement grant of funds used to enhance and/or beautify their businesses. The following types of projects are eligible for reimbursement grants: Façade Rehabilitation/Enhancement This includes work done on existing structures, such as removing non-historic/added facades, re-pointing brick or replacing mortar joints, replacing or restoring cornices, removing paint from brick, replacing windows, restoring transom windows, repairing facades, etc. New Awnings, Canopies, Porches and Signage This includes replacing, adding, or repairing awnings, canopies, porches and signs. Signs may include signboards, projecting signs, pedestrian signage, window signs, hanging signs, and awning/canopy signs. Beautification Projects This may include public art, landscaping, and other beautification projects as approved by the Enhancement Grant Evaluation Committee (EGEC). PROGRAM GUIDELINES 1.Grant funds are available only for exterior work on commercial property and building facades that are visible from public streets in the La Porte Enhancement Grant District. 2.In general, grants offered to businesses are intended to support project to renovate or convert existing structures to their original historic condition. 3.Grants will be processed and considered for award on a first-come, first-served basis until funds are depleted or until the program ends, whichever comes first. 4.Grants will not be awarded for work that has already been started or completed, or for work that is covered by insurance. If desired work is above and beyond what insurance will pay, and is, therefore, considered an upgrade and enhancement in the opinion of the EGEC, it may be eligible for grant funds. 5.Grants will not be awarded to any Applicant that owes any delinquent indebtedness* to the City of La Porte or the La Porte Development Corporation (LPDC). LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 2 BUSINESS. BY THE BAY. 6.Each grant will be awarded on a reimbursement basis once completed work has been verified by the EGEC to be compliant with the plans proposed in the approved application. Any deviation from the approved project may result in the total or partial withdrawal of the grant. 7.Each enhancement grant application will be subject to review by the EGEC, and approval from the LPDC. The review criteria include the following: The project demonstrates a significant improvement over the existing situation, The project will add to the beautification of Main Street and/or Broadway, The project will enhance Main Street and/or Broadway’s appeal to new businesses and visitors, The project will complement the surrounding buildings, and The project will add value to the City of La Porte. 8.Grant applications and awards may be made in any of the reimbursable activities described above and may be combined for any single property or project. 9.An applicant is defined as an owner, tenant, or combination thereof, who occupies space in an eligible property within the La Porte Enhancement Grant District. A single owner of multiple properties may apply for grant funds for each property owned, but the matching grant must be for more than $2,500 and less than $25,000 per property in a three (3) year period. APPLICATION PROCESS 1.Determine eligibility: Discuss project plans with the Economic Development Coordinator, and the Coordinator will set up a pre-development meeting with the EGEC. 2.Complete the application and sign the agreement form. Each grant application must include the following: a.A scale drawing by the project architect or design professional of all the work to be completed. b.Samples -- i.e. paint samples, fabric swatches, sign material, etc. -- that will enable the EGEC to envision the finished project. c.Three (3) itemized work estimates on all project work from contractors or project architects. Self-contracted work will be reimbursed for actual legitimate expenses, excluding labor. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 3 BUSINESS. BY THE BAY. d.Photographs of the building’s exterior. The Applicant shall be required to provide before and after photographs of the building before the reimbursement grant can be awarded. For the initial application, “before” photographs will suffice, but “after” photographs of the completed project must be submitted before the grant may be considered for reimbursement. 3.Return the completed application form, with all applicable items, to: Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 4.The application will undergo an approval process, which includes but is not limited to the following: a.Each project must meet current building standards and codes, as well as building permit requirements. b.The EGEC will only consider applications that have been properly and fully completed, and which contain all information requested in the application and/or by the committee. c.All itemized work estimates submitted by the Applicant must be dated no earlier than ninety (90) days prior to the Application request. Bids shall be submitted on the contractor’s or project architect’s letterhead and shall contain the contractor’s name, address, and telephone number and shall itemize the bid in a manner that allows the EGEC to determine the bid components and authenticity of the bid. d.Applications receiving approval by the EGEC shall commence construction described in the application within ninety (90) days from the date that the enhancement grant is approved. Each Applicant must complete the construction described in the Application within one (1) year from the date that the grant is approved. If the Applicant cannot meet this timeline, then the Applicant may submit a written request for an extension of the commencement date or completion date provided the extension request is made prior to the ninety (90) day or one (1) year time limit. The EGEC shall not be obligated to grant an extension, but it may do so for good cause determined solely by the members of the Committee. The extensions, if granted, shall be for the term and for the conditions determined exclusively by the EGEC. Denial of an extension request may not be appealed. e.As a condition of this grant Application, the Applicant consents, and shall allow, the EGEC to request city inspections to determine that the grant, if awarded, will not be used for construction on any building that is not in compliance with the City Municipal LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 4 BUSINESS. BY THE BAY. Codes and Ordinances that are applicable to the construction contemplated in the application. f.The EGEC and LPDC shall have sole discretion in awarding grants. They shall award grants considering the amount requested, grant funds available, the guidelines of the grant program, condition of the building in which the grant funds will be used, economic impact, other grant requests, the type and nature of the construction, and the proposed construction results considering the grant program. g.No Applicant has a proprietary right to receive grant funds. The EGEC shall consider any application within its discretionary authority to determine what grant amount would be in the best interest of the grant program. h.The Applicant shall be required to furnish “before” photographs of the building’s exterior, and any other site locations that are included as part of the application request. The applicant shall also provide “after” photographs once the construction has been completed, as a condition of final grant disbursement. i.The EGEC has the final discretion with regard to funding and reserves the right to recommend modifications or reject any project or elements of any project. 5.Reimbursement. When the entire enhancement grant project has been completed, the Applicant shall present the Economic Development Office with the following: a.Copies of all paid invoices, including copies of cancelled checks and/or credit card receipts for a single payment reimbursement of the approved funding, and b.Photographs of all completed work. 6.When the project has been reviewed and signed off by the EGEC and their recommendations have been presented and approved by the LPDC, a reimbursement check will be issued. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 5 BUSINESS. BY THE BAY. La Porte Enhancement Grant Application Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Pkwy La Porte, TX 77571 APPLICANT INFORMATION: APPLICATION DATE: Applicant Name Business Name Physical Business Address Business Owner (if different from applicant) Mailing Address Contact Phone Email Address TYPE OF WORK (): Façade Rehabilitation/Enhancement Awnings/Signage Beautification Other (): DETAILS OF PLANNED IMPROVEMENTS (): ENHANCEMENT GRANT APPLICATION PAGE 1 BUSINESS. BY THE BAY. Please list the name of eachContractor and/or Project Architect and the Total Amount of each bid. Please, also, attach the original proposals and work estimates: CONTRACTOR/PROJECT ARCHITECTTOTAL AMOUNT 1.$ 2. $ 3. $ 4. $ 5. $ BUDGET DETAIL PROJECT EXPENDITURES FUNDS REQUESTED FUNDS APPLIEDTOTAL Façade Rehab $ $ $ Awnings/Signage $ $ $ Beautification $ $ $ Other (list):$ $ $ Other (list):$ $ $ TOTALS $ $ $ Total estimated cost of proposed project: $ Amount requested (up to 50% of total cost, $2,500 to $25,000): $ I have met with the EGEC and I fully understand the Enhancement Grant procedures and details established. I intend to use these grant funds for the renovation projects, as spelled out in the application. I have not received, nor will I receive insurance monies for this revitalization project OR I have disclosed all pertinent insurance information. I understand that if I am awarded an Enhancement Grant, any deviation from the approved project may result in the partial or total withdrawal of the grant funds. If I am awarded a reimbursement grant for façade, awning, signage, beautification, or other approved work, alterations should not be made within five (5) years from construction; otherwise I may be required to reimburse the La Porte Development Corporation immediately for the full amount of the grant. APPLICANT SIGNATURE DATE ENHANCEMENT GRANT APPLICATION PAGE 2 Incentives Used in Deer Park, Pasadena, Baytown, Seabrook, and League City Deer Park tax abatement The City of Deer Park has used as a tool for any project only twice in the past thirty years. Chapter 380 Although the City has an ordinance in place to authorize the use of on a case by case basis, no business has ever made application to use this tool. The City leaders want to use incentives only for homerun investment threshold of $2 million. Although Chapter 380 is available for use as a tool, and variances to customary practices may be considered, the City has not yet used it to encourage retail re-development, expansion, or retention. Fortunately, the City has very few vacant spaces that need to be filled with new -grown redevelopment by drawing attention to new business enterprises through a monthly newsletter and advertising. Self-sustained retail redevelopment, which in general requires little to no public assistance, has been attributed to a large number of citizens who want to open their own small business in Deer Park. Pasadena notChapter 380 The City of Pasadena currently does have a ordinance in place, but that would be economic tool of choice to spur retail redevelopment. The City currently does not wish to offer any incentives to either new, existing, or expanding retail businesses. Although the City has a plan to redevelop the Northside of Pasadena, t as outlined by the Economic Development Act and listed in Section 501.002.(12) of the Local Government Code. League City The City of League City does not offer incentives to existing retail businesses. It offers sales tax rebates and/or Chapter 380 financial incentives through over a five (5) year period on a case-by-case basis to encourage quality retail development in selected areas of town. Many times they will offer incentives to new retailers to control the outer look and exterior of a new development, ensure upgraded/additional landscaping, and/or provide additional ease and accessibility to the business. They offered a 66% sales tax rebate to five years, and a 35% sales tax rebate for five years to the new Kroger. For more simple projects, like retail strip centers, they will generally offer a sales tax rebate of 10-15% for five years, but, all projects are awarded on a case-by-case basis. Seabrook Façade Improvement ProgramNeighborhood Empowerment Zone The City of Seabrook offers a , ProgramChapter 3804B funds , , and for qualifying projects. Façade Improvement Grants are funded at 25% of the cost of construction up to a maximum grant amount of $40,000. Grant recipients are responsible for all project costs that exceed $40,000 for construction including all architectural and engineering fees. Eligible construction activity includes storefront improvements, awnings, canopies, entries, signage, and lighting. Financial assistance in the orhood Empowerment Zone Program is available only to businesses that invest a minimum of $500,000 in capital improvements in the zone. Additional benefits are offered only to businesses that invest a minimum of $1 million in capital improvements in the zone. For businesses to qualify for Chapter 380 and 4B funds, they must qualify according to the prioritized goals which have been established by the EDC Board. All s and criteria. All performance measures are customized according to the incentive. Qualifying business may receive funding assistance in the form of a loan or grant for site development, public infrastructure improvements, permit and impact fees, and sales tax rebates. The Seabrook Economic Development Corporation may also recommend and sponsor the project for consideration by City Council for property tax abatements, special district creation, planning and development considerations and variance requests. Baytown Baytown Municipal Development DistrictRevitalization Incentive Zone The City of Baytown usesthe , (i.e. , Chapter 380 ProgramTax AbatementDowntown Façade a Neighborhood Empowerment Zone)a , , and a Improvement Program to foster both economic development and redevelopment. Baytown Municipal In 2004, the citizens of Baytown approved the use of a ¼ cent sales tax to create the Development District (www.window.state.tx.us/taxinfo/addit.html). More specifically, Baytown uses the funds for: the purpose of financing economic development projects that provide economic benefit and diversify the economic base of the community. The MDD will fund additional economic and public improvements in the amount of $27 million dollars over the next 10 years. Phase one projects, which are planned for the first five years, include the areas of economic development initiatives; streets, drainage, sidewalks and signalization improvements; utilities improvements; and parks improvements. Projects planned for the sixth year total approximately $3 Revitalization Incentive Zone The goal of the Baytown Revitalization Incentive Zone (RIZ) program, which is structured as a Neighborhood Empowerment Zone (i.e. Chapter 378), is to promote economic development, encourage the rehabilitation of affordable housing and stimulate an increase in property values. There are two programs providing various incentives to eligible participants: Program 1, the Basic Incentives Program will grant a waiver of certain permit fees and impact fees; and Program 2, the Tax Incentive Program will grant a refund of the incremental increase of municipal ad valorem taxes for up to 5 years. Qualifying structures include all commercial and residential improvements within the Revitalization Incentive Zone. New residential construction must have a minimum investment of $65,000 and new commercial construction must have an initial investment of $100,000. In order to qualify for the Basic Incentives on an existing structure, improvements must equal or exceed 20% of the appraised value of the existing improvements based upon the most recently certified value by the chief appraiser of HCAD. In order to qualify for the Tax Incentives, the previously stated minimum investment applies and the eligible improvement must increase the appraised value of the existing improvements by at least $20,000 for residential and $75,000 for commercial. For the purpose of this program, improvement does not include: personal property (property that is not permanently fixed to one location), pipelines, deferred maintenance, property with an economic life less than 15 years and deferred maintenance. Chapter 380 particular retail store or area, they use a Chapter 380 Inter-Local Agreement with the Municipal Development District to offer sales tax funds for economic development on a case-by-case basis. LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS LOCAL GOVERNMENT CODE TITLE 12. PLANNING AND DEVELOPMENT SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS SUBCHAPTER A. GENERAL PROVISIONS Sec. 501.001. SHORT TITLE. This subtitle may be cited as the Development Corporation Act. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.002. DEFINITIONS. In this subtitle: (1) "Authorizing unit" means the unit that authorizes the creation of a corporation under this subtitle. (2) "Board of directors" means the board of directors of a corporation. (3) "Bonds" includes evidences of indebtedness, including bonds and notes. (4) "Corporate headquarters facilities" means buildings proposed for construction or occupancy as the principal office for a business enterprise's administrative and management services. (5) "Corporation" means a corporation organized under this subtitle. (6) "Cost," with respect to a project, has the meaning assigned by Section501.152. (7) "County alliance" means two or more counties that jointly authorize the creation of a corporation under this subtitle. (8) "District" means a conservation and reclamation district established under Section 59, Article XVI, Texas Constitution. (9) "Economic development office" means the Texas Economic Development and Tourism Office within the office of the governor. (10) "Governing body" means the commissioners court of a county or the governing body of a municipality or district. (11) "Institution of higher education" has the meaning assigned by Section61.003, Education Code. (12) "Primary job" means: (A) a job that is: http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (i) available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide, national, or international markets infusing new dollars into the local economy; and (ii) included in one of the following sectors of the North American Industry Classification System (NAICS): NAICS Sector #Description 111Crop Production 112Animal Production 113Forestry and Logging 11411Commercial Fishing 115Support Activities for Agriculture and Forestry 211-213Mining 221Utilities 311-339Manufacturing 42Wholesale Trade 48-49Transportation and Warehousing 51 (excluding 512131 andInformation (excluding motion picture theaters and drive- 512132)in motion picture theaters) 523-525Securities, Commodity Contracts, and Other Financial Investments and Related Activities; Insurance Carriers and Related Activities; Funds, Trusts, and Other Financial Vehicles 5413, 5415, 5416, 5417, andArchitectural, Engineering, and Related Services; 5419 Computer System Design and Related Services; Management, Scientific, and Technical Consulting Services; Scientific Research and Development Services; Other Professional, Scientific, and Technical Services 551Management of Companies and Enterprises 56142Telephone Call Centers 922140Correctional Institutions; or (B) a job that is included in North American Industry Classification System (NAICS) sector number 928110, National Security, for the corresponding index entries for Armed Forces, Army, Navy, Air Force, Marine Corps, and Military Bases. (13) "Project" means a project specified as such under Subchapter C. (14) "Resolution" means a resolution, order, ordinance, or other official action by the governing body of a unit. (15) "Type A corporation" means a corporation governed by Chapter 504. (16) "Type B corporation" means a corporation governed by Chapter 505. (17) "Unit" means a municipality, county, or district that may create and use a corporation under this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.003. WHO MAY BE USER. The following may be a user under this subtitle: (1) an individual, a partnership, a corporation, or any other private entity organized for profit or not for profit; or (2) a municipality, county, district, other political subdivision, public entity, or agency of this state or the federal government. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS 1, 2009. Sec. 501.004. LEGISLATIVE FINDINGS; CONSTRUCTION OF SUBTITLE. (a) The legislature finds that: (1) the present and prospective right to gainful employment and the general welfare of the people of this state require as a public purpose the promotion and development of new and expanded business enterprises and of job training; (2) the existence, development, and expansion of business, commerce, industry, higher education, and job training are essential to the economic growth of this state and to the full employment, welfare, and prosperity of residents of this state; (3) the assistance provided by corporations in promoting higher education opportunities encourages and fosters the development and diversification of the economy of this state and the elimination of unemployment and underemployment in this state; (4) the means authorized by this subtitle and the assistance provided by this subtitle, especially with respect to financing, are in the public interest and serve a public purpose of this state in promoting the welfare of the residents of this state economically by securing and retaining business enterprises and as a result maintaining a higher level of employment, economic activity, and stability; (5) community industrial development corporations in this state have invested substantial money in successful industrial development projects and have experienced difficulty in undertaking additional industrial development projects because of the partial inadequacy of the community industrial development corporations' money or money potentially available from local subscription sources and the limitations of local financial institutions in providing additional and sufficiently large first mortgage loans; and (6) communities in this state have been at a critical disadvantage in competing with communities in other states for the location or expansion of business enterprises because of the availability and prevalent use in all other states of financing and other special incentives, and, for that reason, the issuance of revenue bonds under this subtitle by a corporation on behalf of political subdivisions of this state for the promotion and development of new and expanded business enterprises to provide and encourage employment and the public welfare is in the public interest and is a public purpose. (b) This subtitle shall be construed in conformity with the intention of the legislature expressed in this section. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS 1, 2009. Sec. 501.005. ADOPTION OF ALTERNATE PROCEDURE. If a court holds that a procedure under this subtitle violates the federal or state constitution, a corporation by resolution may provide an alternate procedure that conforms to the constitution. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.006. USE OF CORPORATION TO FINANCE PROJECT. A unit may use a corporation to issue bonds on the unit's behalf to finance the cost of a project, including a project in a federally designated empowerment zone or enterprise community or in an enterprise zone designated under Chapter 2303, Government Code, to promote and develop new and expanded business enterprises for the promotion and encouragement of employment and the public welfare. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.007. LENDING CREDIT OR GRANTING PUBLIC MONEY. (a) Except as provided by Subsection (b), a unit may not lend its credit or grant public money or another thing of value in aid of a corporation. (b) A municipality may grant public money to a corporation under a contract authorized by Section 380.002. (c) The grants, loans, expenditures, and tax exemptions authorized by this subtitle in connection with a project and authorized by a corporation in accordance with this subtitle constitute the making of loans or grants of public money or constitute other actions authorized by Section 52-a, Article III, Texas Constitution. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Amended by: Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.011(a), eff. September 1, 2009. Sec. 501.008. LIMITATION ON FINANCIAL OBLIGATION. A corporation may not incur a financial obligation that cannot be paid from: (1) bond proceeds; (2) revenue realized from the lease or sale of a project; (3) revenue realized from a loan made by the corporation to wholly or http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS partly finance or refinance a project; or (4) money granted under a contract with a municipality under Section 380.002. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.009. POLICE POWERS NOT AFFECTED. This subtitle does not deprive this state or a governmental subdivision of this state of its police powers over a corporation's property and does not impair any police power over the property that is otherwise provided by law to any official or agency of this state or its governmental subdivisions. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.010. DELEGATION OF UNIT'S SOVEREIGN POWERS PROHIBITED. A unit may not delegate to a corporation any of the unit's attributes of sovereignty, including the power to tax, the power of eminent domain, and the police power. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.011. REFERENCE TO ARTICLES OF INCORPORATION OR CERTIFICATE OF FORMATION. (a) With respect to a corporation created under the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) before January 1, 2006, a reference in any law of this state or in the corporation's governing documents to "articles of incorporation" means, for purposes of this subtitle, the corporation's certificate of formation. (b) With respect to a corporation that is created under the Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) before January 1, 2006, and continues to operate under articles of incorporation, a reference in this subtitle or any other law of this state or in the corporation's governing documents to "certificate of formation" means the corporation's articles of incorporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER B. CREATION AND OPERATION OF CORPORATION Sec. 501.051. AUTHORITY TO CREATE. (a) Three or more individuals who are qualified voters of a unit may file with the unit's governing body a written http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS application requesting the unit to authorize creation of a corporation to act on behalf of the unit. The governing body may not charge a filing fee for the application. (b) A corporation may be created only if the governing body of the unit by resolution: (1) determines that the creation of the corporation is advisable; and (2) approves the certificate of formation proposed to be used in organizing the corporation. (c) A unit may authorize the creation of one or more corporations if the resolution authorizing the creation of each corporation specifies the public purpose of the unit to be furthered by the corporation. The specified public purpose must be limited to the promotion and development under this subtitle of enterprises to promote and encourage employment and the public welfare. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.052. NONMEMBER, NONSTOCK FORM OF CORPORATION. A corporation is a nonmember, nonstock corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.053. CORPORATION NONPROFIT; NET EARNINGS. (a) A corporation is nonprofit, and the corporation's net earnings remaining after payment of its expenses may not benefit an individual, firm, or corporation, except as provided by Subsection (b). (b) If the board of directors determines that sufficient provision has been made for the full payment of the corporation's expenses, bonds, and other obligations, any net earnings of the corporation subsequently accruing shall be paid to the corporation's authorizing unit. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.054. GENERAL POWERS, PRIVILEGES, AND FUNCTIONS. (a) A corporation has the powers, privileges, and functions of a nonprofit corporation incorporated under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) or formed under the Texas Nonprofit Corporation Law, as described by Section 1.008, Business Organizations Code. To the extent that the provisions governing powers, privileges, and functions of a nonprofit corporation under those laws are in conflict with or inconsistent http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS with provisions of this subtitle governing powers, privileges, and functions of a nonprofit corporation, the provisions of this subtitle prevail. (b) A corporation: (1) has all powers incidental to or necessary for the performance of the powers provided by Sections 501.059,501.060,501.064, 501.153-501.155, 501.159,501.201(a),501.208,501.209,501.214, and 501.402; and (2) with respect to a project, may exercise all powers necessary or appropriate to effect a purpose for which the corporation is organized, subject to the control of the governing body of the corporation's authorizing unit. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.055. CONSTITUTED AUTHORITY OR INSTRUMENTALITY. (a) A corporation is a constituted authority and an instrumentality, within the meaning of the United States Department of the Treasury regulations and the Internal Revenue Service rulings adopted under Section 103, Internal Revenue Code of 1986, as amended, including regulations and rulings adopted under Section 103, Internal Revenue Code of 1954, and may act on behalf of the corporation's authorizing unit for the specific public purpose authorized by the unit. (b) A corporation is not a political subdivision or a political corporation for purposes of the laws of this state, including Section 52, Article III, Texas Constitution. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.056. CONTENTS OF CERTIFICATE OF FORMATION. The certificate of formation of a corporation must state: (1) the name of the corporation; (2) that the corporation is a nonprofit corporation; (3) the duration of the corporation, which may be perpetual; (4) the specific purpose for which the corporation is organized and may issue bonds on behalf of the unit; (5) that the corporation has no members and is a nonstock corporation; (6) any provision consistent with law for the regulation of the corporation's internal affairs, including any provision required or permitted by this subtitle to be stated in the bylaws; (7) the street address of the corporation's initial registered office and the name of the corporation's initial registered agent at that address; http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (8) the number of directors of the initial board of directors and the name and address of each initial director; (9) the name and street address of each organizer; and (10) that the unit has: (A) by resolution specifically authorized the corporation to act on the unit's behalf to further the public purpose stated in the resolution and the certificate of formation; and (B) approved the certificate of formation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.057. FILING OF CERTIFICATE OF FORMATION AND DELIVERY OF CERTIFICATE EVIDENCING FILING. (a) If the unit's governing body adopts a resolution under Section 501.051, the certificate of formation may be filed as provided by this section. (b) Three originals of the certificate of formation shall be delivered to the secretary of state. If the secretary of state determines that the certificate of formation conforms to this subchapter, the secretary of state shall: (1) endorse the word "Filed" and the date of the filing on each original certificate of formation; (2) file one of the original certificates of formation in the secretary of state's office; (3) issue two certificates evidencing the filing of the certificate of formation; (4) attach to each certificate evidencing the filing of the certificate of formation an original of the certificate of formation; and (5) deliver a certificate evidencing the filing of the certificate of formation and the attached certificate of formation to: (A) the organizers or the organizers' representatives; and (B) the governing body of: (i) the corporation's authorizing unit; or (ii) any county in the county alliance that authorized the creation of the corporation, for a county alliance corporation. (c) The governing body of a county to which a certificate evidencing the filing of the certificate of formation and the attached certificate of formation are delivered under Subsection (b)(5)(B)(ii) shall provide photocopies of the certificate evidencing the filing of the certificate of formation and the attached certificate of formation to each other member of the county alliance. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.058. EFFECT OF ISSUANCE OF CERTIFICATE EVIDENCING FILING. (a) A corporation's existence begins when the certificate evidencing the filing of its certificate of formation is issued. (b) After the issuance of the certificate evidencing the filing of the certificate of formation, the formation of the corporation may not be contested for any reason. (c) A certificate evidencing the filing of the certificate of formation is conclusive evidence that: (1) the organizers and the unit have performed all conditions precedent for the formation of the corporation; and (2) the corporation is formed under this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.059. CORPORATE SEAL. A corporation may have a corporate seal and with respect to a project may impress, affix, or otherwise reproduce the seal or a facsimile of the seal on an instrument required to be executed by the corporation's appropriate officers. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.060. MAY SUE AND BE SUED. With respect to a project, a corporation may sue, be sued, complain, and defend in the corporation's name. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.061. CORPORATION'S ORGANIZATION NOT RESTRICTED. Except as provided by this subtitle, no proceeding, notice, or approval is required for the organization of a corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.062. BOARD OF DIRECTORS. (a) All of the powers of a corporation are vested in a board of directors consisting of three or more directors appointed by the governing body of the corporation's authorizing unit. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (b) A director serves for a term of not more than six years. (c) The governing body of the corporation's authorizing unit may remove a director for cause or at will. (d) A director serves without compensation, but is entitled to reimbursement for actual expenses incurred in the performance of the director's duties under this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.063. ORGANIZATIONAL MEETING. (a) After issuance of the certificate evidencing the filing of the certificate of formation, the board of directors named in the certificate of formation shall hold an organizational meeting in this state to adopt bylaws and elect officers and for other purposes. (b) Not later than the third day before the date of the meeting, the organizers who call the meeting shall give notice by mail of the time and place of the meeting to each director named in the certificate of formation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.064. BYLAWS. (a) A corporation may adopt and amend bylaws for the administration and regulation of the corporation's affairs. (b) The board of directors shall adopt a corporation's initial bylaws. (c) The bylaws and each amendment of the bylaws must: (1) be consistent with state law and with the certificate of formation of the corporation; and (2) be approved by resolution of the governing body of the corporation's authorizing unit. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.065. OFFICERS. (a) A corporation has the following officers: (1) a president; (2) at least one vice president; (3) a secretary; (4) a treasurer; and (5) other officers or assistant officers considered necessary. (b) An officer of the corporation is elected or appointed at the time, in the manner, and for the term prescribed by the certificate of formation or bylaws, except that an officer's term may not exceed three years. In the http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS absence of provisions in the certificate of formation or the bylaws prescribing the selection or terms of officers, the board of directors shall annually elect or appoint officers. (c) A person may hold more than one office, except that the same person may not hold the offices of president and secretary. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.066. INDEMNIFICATION. (a) In this section, "director or officer" includes a former director or officer. (b) Except as provided by Subsection (d), a corporation may indemnify a director or officer of the corporation for necessary expenses and costs, including attorney's fees, actually incurred by the director or officer in connection with a claim asserted against the director or officer, by action in court or another forum, by reason of the director's or officer's being or having been a director or officer of the corporation. (c) Except as provided by Subsection (d), if a corporation has not fully indemnified a director or officer under Subsection (b), the court in a proceeding in which a claim is asserted against the director or officer or a court having jurisdiction over an action brought by the director or officer on a claim for indemnity may assess indemnity against the corporation or the corporation's receiver or trustee. The assessment must equal the amount that the director or officer paid to satisfy the judgment or compromise the claim, including attorney's fees and not including any amount paid to the corporation, to the extent that: (1) the amount paid was actually and necessarily incurred; and (2) the court considers the amount paid reasonable and equitable. (d) A corporation may not indemnify a director or officer for a matter in which the director or officer is guilty of negligence or misconduct. A court may assess indemnity against the corporation only if the court finds that the director or officer was not guilty of negligence or misconduct in the matter for which indemnity is sought. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.067. INSURANCE AND BENEFITS. (a) Notwithstanding any law to the contrary and with the consent of the corporation's authorizing unit, a corporation may obtain: (1) health benefits coverage, liability coverage, workers' http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS compensation coverage, and property coverage under the authorizing unit's insurance policies, through self-funded coverage, or under coverage provided under an interlocal agreement with a political subdivision; or (2) retirement benefits under a retirement program the authorizing unit participates in or operates. (b) Health benefits coverage may be extended to the corporation's directors and employees, and to the dependents of the directors and employees. (c) Workers' compensation benefits may be extended to the corporation's directors, employees, and volunteers. (d) Liability coverage may be extended to protect the corporation and the corporation's directors and employees. (e) Retirement benefits may be extended to the corporation's employees. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.068. BOARD MEETINGS; NOTICE OF MEETING. (a) A board of directors may hold a regular meeting in this state with or without notice as prescribed by the corporation's bylaws. (b) A board of directors may hold a special meeting with notice as prescribed by the corporation's bylaws. (c) A director's attendance at a board meeting constitutes a waiver of notice of the meeting, unless the director attends the meeting for the express purpose of objecting to the transaction of any business at the meeting because the meeting has not been lawfully called or convened. (d) Unless required by the corporation's bylaws, notice or waiver of notice of a board meeting is not required to specify the business to be transacted at the meeting or the purpose of the meeting. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.069. WAIVER OF NOTICE. If a notice is required to be given to a director of a corporation under this subtitle or the corporation's certificate of formation or bylaws, a written waiver of the notice signed by the person entitled to the notice is equivalent to giving the required notice. The waiver may be given before or after the time that would have been stated in the notice. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.070. ACTION OF BOARD; QUORUM. (a) A quorum of a board of http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS directors is the lesser of: (1) a majority of the number of directors: (A) established by the corporation's bylaws; or (B) stated in the corporation's certificate of formation, if the bylaws do not establish the number of directors; or (2) the number of directors, not less than three, established as a quorum by the certificate of formation or bylaws. (b) The act of a majority of the directors present at a meeting at which a quorum is present is an act of the board of directors, unless the act of a larger number is required by the certificate of formation or bylaws of the corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.071. ACTION WITHOUT MEETING. (a) An action that may be taken at a meeting of a board of directors, including an action required by this subtitle to be taken at a meeting, may be taken without a meeting if each director signs a written consent providing the action to be taken. (b) The consent has the same effect as a unanimous vote and may be stated as such in a document filed with the secretary of state under this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.072. OPEN MEETINGS AND PUBLIC INFORMATION. A board of directors is subject to the open meetings law, Chapter 551, Government Code, and the public information law, Chapter 552, Government Code. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.073. SUPERVISION BY AUTHORIZING UNIT. (a) The corporation's authorizing unit will approve all programs and expenditures of a corporation and annually review any financial statements of the corporation. (b) A corporation's authorizing unit is entitled to access to the corporation's books and records at all times. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.074. PURCHASING. A corporation may use the reverse auction http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS procedure defined by Section 2155.062(d), Government Code, for purchasing. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.075. EXEMPTION FROM TAXATION. (a) The activities of a corporation affect all the residents of the corporation's authorizing unit by the corporation's assuming to a material extent what otherwise might be an obligation or duty of the authorizing unit, and therefore the corporation is an institution of purely public charity within the tax exemption of Section 2, Article VIII, Texas Constitution. (b) A corporation is exempt from the tax imposed by Chapter 171, Tax Code, only if the corporation is exempted by that chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER C. AUTHORIZED PROJECTS Sec. 501.101. PROJECTS RELATED TO CREATION OR RETENTION OF PRIMARY JOBS. In this subtitle, "project" includes the land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements that are: (1) for the creation or retention of primary jobs; and (2) found by the board of directors to be required or suitable for the development, retention, or expansion of: (A) manufacturing and industrial facilities; (B) research and development facilities; (C) military facilities, including closed or realigned military bases; (D) transportation facilities, including airports, hangars, railports, rail switching facilities, maintenance and repair facilities, cargo facilities, related infrastructure located on or adjacent to an airport or railport facility, marine ports, inland ports, mass commuting facilities, and parking facilities; (E) sewage or solid waste disposal facilities; (F) recycling facilities; (G) air or water pollution control facilities; (H) facilities for furnishing water to the public; (I) distribution centers; (J) small warehouse facilities capable of serving as decentralized storage and distribution centers; (K) primary job training facilities for use by institutions of http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS higher education; or (L) regional or national corporate headquarters facilities. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Amended by: Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.012(a), eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 150 (S.B. 2052), Sec. 1, eff. September 1, 2009. Sec. 501.102. PROJECTS RELATED TO CERTAIN JOB TRAINING. In this subtitle, "project" includes job training required or suitable for the promotion of development and expansion of business enterprises and other enterprises described by this subtitle, as provided by Section 501.162. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.103. CERTAIN INFRASTRUCTURE IMPROVEMENT PROJECTS. In this subtitle, "project" includes expenditures that are found by the board of directors to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises, limited to: (1) streets and roads, rail spurs, water and sewer utilities, electric utilities, or gas utilities, drainage, site improvements, and related improvements; (2) telecommunications and Internet improvements; or (3) beach remediation along the Gulf of Mexico. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.104. PROJECTS RELATED TO CERTAIN MILITARY BASES OR MISSIONS. In this subtitle, "project" includes the infrastructure, improvements, land acquisition, buildings, or expenditures that: (1) are for the creation or retention of primary jobs or jobs that are included in North American Industry Classification System (NAICS) sector number 926120, Regulation and Administration of Transportation Programs, for the corresponding index entry for Coast Guard (except the Coast Guard Academy); and (2) are found by the board of directors to be required or suitable for: (A) promoting or supporting a military base in active use to http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS prevent the possible future closure or realignment of the base; (B) attracting new military missions to a military base in active use; or (C) redeveloping a military base that has been closed or realigned, including a military base closed or realigned according to the recommendation of the Defense Base Closure and Realignment Commission under the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note). Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.105. CAREER CENTER PROJECTS OUTSIDE OF JUNIOR COLLEGE DISTRICT. In this subtitle, "project" includes the land, buildings, equipment, facilities, improvements, and expenditures found by the board of directors to be required or suitable for use for a career center, if the area to be benefited by the career center is not located in the taxing jurisdiction of a junior college district. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.106. AIRPORT FACILITIES OR OTHER PROJECTS BY CORPORATIONS AUTHORIZED BY CERTAIN BORDER MUNICIPALITIES. (a) This section applies only to a corporation authorized to be created by a municipality, any part of which is located within 25 miles of an international border. (b) For a corporation to which this section applies, in this subtitle, "project" includes the land, buildings, facilities, infrastructure, and improvements that: (1) the corporation's board of directors finds are required or suitable for the development or expansion of airport facilities; or (2) are undertaken by the corporation if the municipality that authorized the creation of the corporation has, at the time the corporation approves the project as provided by this subtitle: (A) a population of less than 50,000; or (B) an average rate of unemployment that is greater than the state average rate of unemployment during the most recent 12-month period for which data is available that precedes the date the project is approved. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.107. INFRASTRUCTURE PROJECTS BY CORPORATIONS AUTHORIZED BY http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS MUNICIPALITIES IN CERTAIN BORDER COUNTIES. (a) This section applies only to a corporation that: (1) is authorized to be created by a municipality wholly or partly located in a county that: (A) is bordered by the Rio Grande; (B) has a population of at least 500,000; and (C) has wholly or partly within its boundaries at least four municipalities each of which has a population of at least 25,000; and (2) does not support a project, as defined by this subchapter, with sales and use tax revenue collected under Chapter 504 or 505. (b) For a corporation to which this section applies, in this subtitle, "project" includes expenditures found by the board of directors to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises, including airports, ports, and sewer or solid waste disposal facilities. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. For expiration of this section, see Subsection (c). Sec. 501.108. INFRASTRUCTURE IMPROVEMENT PROJECTS BY CORPORATIONS AUTHORIZED BY CERTAIN COASTAL MUNICIPALITIES. (a) This section applies only to a corporation the creation of which was authorized by a municipality that: (1) has a population of 10,000 or more; (2) is located in a county bordering the Gulf of Mexico or the Gulf Intracoastal Waterway; and (3) has, or is included in a metropolitan statistical area of this state that has, an unemployment rate that averaged at least two percent above the state average for the most recent two consecutive years for which statistics are available. (b) For a corporation to which this section applies, "project" includes expenditures found by the board of directors to be required or suitable for infrastructure improvements necessary to develop and revitalize areas in the corporation's authorizing municipality, including: (1) streets and roads, rail spurs, water and sewer utilities, electric utilities, gas utilities, drainage, site improvements, and related improvements; (2) telecommunications, data, or Internet improvements; or (3) facilities designed to remediate, mitigate, or control erosion, including coastal erosion along the Gulf of Mexico or the Gulf Intracoastal http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS Waterway. (c) This section expires September 1, 2017. Added by Acts 2013, 83rd Leg., R.S., Ch. 1281 (H.B. 1966), Sec. 1, eff. June 14, 2013. SUBCHAPTER D. CORPORATE POWERS AND LIMITATIONS RELATING TO PROJECTS Sec. 501.151. AUTHORITY TO FINANCE PROJECT. A corporation is a constituted authority for the purpose of financing one or more projects. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.152. DEFINITION OF COST WITH RESPECT TO PROJECT. In this subtitle, "cost," with respect to a project, means the cost of the acquisition, cleanup, construction, reconstruction, improvement, or expansion of a project, including: (1) the cost of acquiring all land, rights-of-way, property rights, easements, and interests; (2) the cost of all machinery and equipment; (3) financing charges; (4) the cost of inventory, raw materials, and other supplies; (5) research and development costs; (6) interest accruing before and during construction and until the first anniversary of the date the construction is completed, regardless of whether capitalized; (7) necessary reserve funds; (8) the cost of estimates, including estimates of cost and revenue; (9) the cost of engineering or legal services; (10) the cost of plans, specifications, or surveys; (11) other expenses necessary or incident to determining the feasibility and practicability of acquiring, cleaning, constructing, reconstructing, improving, and expanding the project; (12) administrative expenses; and (13) other expenditures necessary or incident to: (A) acquiring, cleaning, constructing, reconstructing, improving, and expanding the project; (B) placing the project in operation; and (C) financing or refinancing the project, including refunding any outstanding obligations, mortgages, or advances issued, made, or given by a person for a cost described by this section. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.153. LEASE OR SALE OF PROJECT. (a) A corporation may: (1) lease all or any part of a project to a user, for the rental and on the terms that the corporation's board of directors considers advisable and not in conflict with this subtitle; or (2) sell, by installment payments or otherwise, and convey all or any part of a project to a user for the purchase price and on the terms the corporation's board of directors considers advisable and not in conflict with this subtitle. (b) A corporation may grant a lessee an option to purchase all or any part of a project when all bonds of the corporation delivered to provide those facilities have been paid or provision has been made for the bonds' final payment. This subsection is procedurally exclusive for authority to convey or grant an option to purchase all or part of a project, and reference to another law is not required. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.154. CONVEYANCE OF PROPERTY TO INSTITUTION OF HIGHER EDUCATION. With respect to a project, a corporation may donate, exchange, convey, sell, or lease land, improvements, or any other interest in real property, fixtures, furnishings, equipment, or personal property to an institution of higher education for a legal purpose of the institution, on the terms the corporation's board of directors considers advisable and not in conflict with this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.155. LOAN TO FINANCE PROJECT. (a) A corporation may make a secured or unsecured loan to a user for the purpose of providing temporary or permanent financing or refinancing of all or part of the cost of a project, including the refunding of an outstanding obligation, mortgage, or advance issued, made, or given by a person for the cost of a project. (b) For a loan made under this section, a corporation may charge and collect interest on the terms the corporation's board of directors considers advisable and not in conflict with this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS 1, 2009. Sec. 501.156. AGREEMENT MUST BENEFIT CORPORATION. An agreement relating to a project must be for the benefit of the corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.157. DEFAULT ON AGREEMENT; ENFORCEMENT. An agreement relating to a project must provide that if a default occurs in the payment of the principal of or the interest or premium on the bonds or in the performance of any agreement contained in a proceeding, mortgage, or instrument, the payment or performance may be enforced by: (1) mandamus; or (2) the appointment of a receiver in equity with the power to: (A) charge and collect rents, purchase price payments, and loan payments; and (B) apply the revenue from the project in accordance with the resolution, mortgage, or instrument. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.158. PERFORMANCE AGREEMENTS. (a) A corporation may not provide a direct incentive to or make an expenditure on behalf of a business enterprise under a project as defined by Subchapter C of this chapter or by Subchapter D, Chapter 505, unless the corporation enters into a performance agreement with the business enterprise. (b) A performance agreement between a corporation and business enterprise must: (1) provide, at a minimum, for a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by the corporation under the agreement; and (2) specify the terms under which repayment must be made if the business enterprise does not meet the performance requirements specified in the agreement. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.159. POWERS CONCERNING PROJECTS; JURISDICTION. (a) A http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS corporation may acquire, by construction, devise, purchase, gift, lease, or otherwise, or any one or more of those methods and may construct, improve, maintain, equip, and furnish one or more projects undertaken by another corporation or located within this state, including within the coastal waters of this state, and within or partially within the limits of the authorizing unit of the corporation or within the limits of another unit, if the governing body of the other corporation or the unit requests the corporation to exercise its powers within that unit. (b) A corporation may recover the costs of an investment under Subsection (a) from a unit or another corporation under a contract with a limited or unlimited duration. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.160. OWNING OR OPERATING PROJECT AS BUSINESS. (a) Except as provided by Subsection (d), a corporation may not own or operate a project as a business other than: (1) as a lessor, seller, or lender; or (2) according to the requirements of any trust agreement securing the credit transaction. (b) The user under a lease, sale, or loan agreement relating to a project is considered the owner of the project for purposes of ad valorem taxes, sales and use taxes, or any other taxes imposed by this state or a political subdivision of this state. (c) Purchasing and holding a mortgage, deed of trust, or other security interest or contracting for the servicing of a mortgage, deed of trust, or other security interest is not considered the operation of a project. (d) A corporation has all the powers necessary to own and operate a project as a business if the project is a military installation or military facility that has been closed or realigned, including a military installation or facility closed or realigned under the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note), as amended. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.161. CERTAIN ECONOMIC INCENTIVES PROHIBITED. (a) In this section, "related party" means a person who owns at least 80 percent of the business enterprise to which the sales and use tax would be rebated as part of an economic incentive. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (b) Notwithstanding any other provision of this subtitle, a corporation may not offer to provide an economic incentive for a business enterprise whose business consists primarily of purchasing taxable items using a resale certificate and then reselling those items to a related party. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.162. USE OF TAX REVENUE FOR JOB TRAINING. A corporation may spend tax revenue received under this subtitle for job training offered through a business enterprise only if the business enterprise has committed in writing to: (1) create new jobs that pay wages that are at least equal to the prevailing wage for the applicable occupation in the local labor market area; or (2) increase its payroll to pay wages that are at least equal to the prevailing wage for the applicable occupation in the local labor market area. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Text of section as added by Acts 2013, 83rd Leg., R.S., Ch. 1283 (H.B. 1967), Sec. 1 For text of section as added by Acts 2013, 83rd Leg., R.S., Ch. 1295 (H.B. 2473), Sec. 1, see other Sec. 501.163. Sec. 501.163. USE OF TAX REVENUE FOR JOB-RELATED SKILLS TRAINING BY CERTAIN CORPORATIONS. (a) This section applies only to a corporation the creation of which was authorized by a municipality that: (1) has a population of 10,000 or more; (2) is located in a county bordering the Gulf of Mexico or the Gulf Intracoastal Waterway; and (3) has, or is included in a metropolitan statistical area of this state that has, an unemployment rate that averaged at least two percent above the state average for the most recent two consecutive years for which statistics are available. (b) A corporation may spend tax revenue received under this subtitle for job training that consists of: (1) providing job-related life skills sufficient to enable an unemployed individual to obtain employment; and (2) providing job training skills sufficient to enable an unemployed individual to obtain employment. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (c) A corporation to which this section applies may contract with any person to provide the job training authorized under this section. Added by Acts 2013, 83rd Leg., R.S., Ch. 1283 (H.B. 1967), Sec. 1, eff. June 14, 2013. Text of section as added by Acts 2013, 83rd Leg., R.S., Ch. 1295 (H.B. 2473), Sec. 1 For text of section as added by Acts 2013, 83rd Leg., R.S., Ch. 1283 (H.B. 1967), Sec. 1, see other Sec. 501.163. For expiration of this section, see Subsection (c). Sec. 501.163. USE OF TAX REVENUE FOR HOUSING FACILITIES FOR PUBLIC STATE COLLEGES. (a) In this section: (1) "Housing facility" has the meaning assigned by Section 53.02, Education Code. (2) "Public state college" has the meaning assigned by Section 61.003, Education Code. (b) A corporation may spend tax revenue received under this subtitle for expenditures that are for the development or construction of housing facilities on or adjacent to the campus of a public state college. (c) This section expires September 1, 2017. Added by Acts 2013, 83rd Leg., R.S., Ch. 1295 (H.B. 2473), Sec. 1, eff. June 14, 2013. SUBCHAPTER E. CORPORATE POWERS AND LIMITATIONS RELATING TO BONDS Sec. 501.201. AUTHORITY TO ISSUE BONDS. (a) A corporation may issue bonds to defray all or part of the cost of a project, regardless of whether the bonds are wholly or partly exempt from federal income taxation. (b) Except as limited by this subtitle or rules and guidelines of the economic development office, a corporation has full authority with respect to bonds. (c) Except as otherwise provided by this subtitle, a corporation may issue bonds under this subtitle without obtaining the consent or approval of any department, division, or agency of this state, other than the attorney general under Chapter 1202, Government Code. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS Sec. 501.202. TERMS. Bonds issued by a corporation must be dated and must mature in not more than 40 years. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.203. SECURITIES COMMISSIONER PERMIT TO SELL SECURITIES REQUIRED. A corporation may not sell or offer for sale bonds or other securities until the securities commissioner grants a permit authorizing the corporation to offer and sell the bonds or other securities under the registration provisions of The Securities Act (Article 581-1 et seq., Vernon's Texas Civil Statutes), except as exempted from registration by rule or order of the State Securities Board. Appeal from an adverse decision of the securities commissioner or the State Securities Board is under the administrative procedure law, Chapter 2001, Government Code. The substantial evidence rule applies in an appeal under this subsection. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.204. AUTHORIZING UNIT'S APPROVAL OF BONDS. (a) A corporation may not deliver bonds, including refunding bonds, unless the governing body of the corporation's authorizing unit adopts a resolution, not earlier than the 60th day before the date the bonds are delivered, specifically approving the corporation's resolution providing for the issuance of the bonds. (b) If the corporation is authorized to be created by a county alliance, the resolution required by Subsection (a) must be adopted by the commissioners courts of at least three-fifths of the members of the county alliance. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.205. BOND COUNSEL AND FINANCIAL ADVISORS. Bond counsel and financial advisors participating in a bond issue must be mutually acceptable to the corporation and the user. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.206. MONEY USED TO PAY BONDS. The principal of and interest on bonds issued by a corporation are payable only from the money provided for that payment and from the revenue of the project or projects for which the bonds were http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS authorized. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.207. BONDS NOT DEBT OF STATE OR AUTHORIZING UNIT. (a) Bonds issued under this subtitle are not a debt or pledge of the faith and credit of this state, the authorizing unit of the corporation issuing the bonds, or any other political corporation, subdivision, or agency of this state. (b) The revenue bonds issued under this subtitle must contain on their face a statement to the effect that: (1) neither this state, the authorizing unit of the corporation issuing the bonds, nor any other political corporation, subdivision, or agency of this state is obligated to pay the principal of or the interest on the bonds; and (2) neither the faith and credit nor the taxing power of this state, the authorizing unit of the corporation issuing the bonds, or any other political corporation, subdivision, or agency of this state is pledged to the payment of the principal of or the interest on the bonds. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.208. BOND SECURITY; DEFAULT. (a) The principal of and interest on any bonds issued by a corporation shall be secured by a pledge of the revenues and receipts derived by the corporation from the lease or sale of the project financed by the bonds or from the loan made by the corporation with respect to the project financed or refinanced by the bonds. (b) As security for the payment of the principal of and interest on any bonds issued by a corporation and any agreements made in connection with the issuance of bonds, the corporation may: (1) mortgage and pledge any or all of the corporation's projects or any part of a project, including the project financed or refinanced and any enlargements of and additions to the project, owned before or acquired after the time of the mortgage or pledge; and (2) assign any mortgage and repledge any security conveyed to the corporation to secure any loan made by the corporation, and pledge the revenues and receipts from the assigned mortgage or security. (c) The resolution authorizing the issuance of bonds and any mortgage covering all or part of the project financed may include any agreement or provision that the board of directors considers advisable and not in conflict http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS with this subtitle and that relates to: (1) the maintenance of the project covered by the bonds or mortgage; (2) the fixing and collection of rents; (3) purchase price payments; (4) loan payments; (5) the creation and maintenance of special funds from those revenues; or (6) the rights and remedies available in the event of a default. (d) A mortgage to secure bonds may also provide that, in the event of a default in the payment of the bonds or a violation of another agreement contained in the mortgage, the mortgage may be foreclosed and the mortgaged property may be sold in any manner permitted by law. The mortgage may provide that a trustee under the mortgage or the holder of any of the bonds secured by the mortgage may purchase property at a foreclosure sale if the trustee or holder is the highest bidder. (e) A pledge, agreement, or mortgage made for the benefit or security of any of the corporation's bonds continues in effect until the principal of and interest on the bonds benefited or secured by the pledge, agreement, or mortgage have been fully paid. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.209. TRUST AGREEMENT. (a) Bonds issued under this subtitle may be secured by a trust agreement between the corporation and a trust company or bank having the powers of a trust company. The trust company or bank may be located in or outside of this state. (b) The trust agreement may: (1) pledge or assign the lease, sale, or loan revenues to be received with respect to a project from a lessee, purchaser, or borrower for the payment of the principal of and interest and any premium on the bonds as the bonds become due and payable; (2) provide for the creation and maintenance of reserves for a purpose described by Subdivision (1); (3) state the rights and remedies of the bondholders and the trustee; (4) restrict the individual right of action by bondholders in a manner that is customary in trust agreements or trust indentures securing bonds and debentures of private corporations; and (5) include any additional provision that the corporation considers reasonable and proper for the security of the bondholders. (c) The trust agreement or a resolution approving the issuance of the http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS bonds may provide for the protection and enforcement of the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants providing the duties relating to: (1) the acquisition of property and the construction, improvement, maintenance, repair, operation, and insurance of the project in connection with which the bonds are authorized; and (2) the custody, protection, and application of all money. (d) A bank or trust company incorporated under the laws of this state that acts as depository of the bond proceeds or of revenues may furnish indemnifying bonds or pledge securities as required by the corporation. (e) All expenses incurred in carrying out the trust agreement may be treated as a part of the cost of operating the project. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.210. FINANCIAL ASSURANCE OR RESPONSIBILITY REQUIREMENTS FOR CERTAIN PROJECTS. (a) The resolution or mortgage described by Section 501.208(c) may contain any agreement or provision for satisfying the financial assurance or responsibility requirements applicable to a project for which a permit is required under Chapter 361, Health and Safety Code, or Chapter 27, Water Code, including a requirement relating to construction, proper operation, liability coverage, emergency response capability, well plugging, closure, and post-closure care. (b) Evidence of the passage of a resolution by a governing body approving or agreeing to approve the issuance of bonds for the purpose of satisfying the financial assurance or responsibility requirements applicable to the project is an adequate demonstration that sufficient financial resources will be available to comply with all existing financial assurance or responsibility requirements. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.211. USE OF BOND PROCEEDS. (a) The proceeds of the bonds of each issue shall be: (1) used to pay or make a loan in the amount of all or part of the cost of the project or projects for which the bonds were authorized; and (2) disbursed in the manner and under any restrictions provided in the resolution authorizing the issuance of the bonds or in any trust agreement securing the bonds. (b) Bond proceeds may be used to: http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (1) pay all costs incurred in issuing the bonds; (2) pay interest on the bonds for any time determined by the board of directors of the corporation issuing the bonds; and (3) establish reserve funds and sinking funds for the bonds. (c) If the proceeds of the bonds of any series issued for a project exceed the cost of the project for which the bonds were issued, the surplus shall be: (1) deposited to the credit of the sinking fund for the bonds; or (2) used to purchase bonds in the open market. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.212. INTERIM BONDS. (a) Before the preparation of definitive bonds, the corporation may, under like restrictions, issue interim bonds that may be exchanged for definitive bonds when the definitive bonds are executed and available for delivery. (b) The corporation may issue interim bonds with or without coupons. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.213. REFUNDING BONDS. (a) A corporation may provide by resolution for the issuance of refunding bonds: (1) to refund outstanding bonds issued under this subtitle for a project, including the payment of any redemption premium on the bonds and the interest accrued or to accrue to the date of redemption; and (2) if considered advisable by the corporation, additionally to finance improvements, extensions, or enlargements to the project for which the bonds being refunded were issued or for another project. (b) The provisions of this subtitle relating to other bonds govern the issuance, maturities, and other details of the refunding bonds, the rights of the holders of the refunding bonds, and the rights, duties, and obligations of the corporation with respect to the same to the extent those provisions may be applicable. (c) The corporation may issue the refunding bonds in exchange for outstanding bonds or may sell the refunding bonds and use the proceeds to redeem outstanding bonds. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.214. SALE OR EXCHANGE OF BONDS. With respect to a project, a http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS corporation may: (1) sell bonds; or (2) exchange bonds for property, labor, services, material, or equipment comprising a project or incidental to the acquisition of a project. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER F. ADMINISTRATION BY ECONOMIC DEVELOPMENT OFFICE Sec. 501.251. STATE STANDARDS FOR PROJECT ELIGIBILITY. The economic development office shall adopt rules providing minimum standards for project eligibility. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.252. STATE STANDARDS AND GUIDELINES FOR LEASE, SALE, OR LOAN AGREEMENTS. (a) The economic development office shall adopt rules: (1) providing minimum standards for lease, sale, and loan agreements entered into under this subtitle; and (2) providing guidelines with respect to the business experience, financial resources, and responsibilities of the lessee, purchaser, or borrower under a lease, sale, or loan agreement entered into under this subtitle. (b) The economic development office may adopt rules governing the terms of a loan made by a corporation to a bank or other lending institution the proceeds of which are reloaned as permanent or temporary financing of a project. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.253. RULES FOR SMALL BUSINESS PROGRAMS. The economic development office shall adopt rules governing programs for small businesses receiving loans guaranteed wholly or partly by the United States Small Business Administration or another federal agency. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.254. FILING OF RULES AND GUIDELINES WITH SECRETARY OF STATE. Rules and guidelines adopted by the economic development office and amendments to the rules and guidelines take effect only after the filing of the rules and guidelines or amendments with the secretary of state. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.255. APPROVAL OF LEASE, SALE, OR LOAN AGREEMENT. (a) A lease, sale, or loan agreement entered into under this subtitle must be approved by the economic development office. The economic development office may not approve an agreement unless the office affirmatively finds that the project sought to be financed furthers the public purposes of this subtitle. (b) The corporation may appeal an adverse ruling or decision of the economic development office under Subsection (a) to a district court of Travis County. The substantial evidence rule applies in an appeal under this subsection. (c) A corporation: (1) may enter into a lease, sale, or loan agreement under this subtitle without obtaining the consent or approval of any department, division, or agency of this state except as otherwise provided by this subtitle; and (2) has full authority with respect to a lease, sale, or loan agreement, except as limited by this subtitle or by rules and guidelines of the economic development office. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.256. APPROVAL OF BONDS BY ECONOMIC DEVELOPMENT OFFICE. (a) A corporation may submit a transcript of proceedings in connection with the issuance of bonds to the economic development office and request that the office approve the bonds. A corporation shall include a nonrefundable filing fee with the request. The office shall set the amount of the fee at a reasonable amount that is not less than $500 or more than $25,000. (b) If the economic development office refuses to approve the bond issue solely on the basis of law, the corporation may seek a writ of mandamus from the Texas Supreme Court, and for this purpose the executive director of the economic development office is considered a state officer under Section 22.002, Government Code. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.257. FILING OF FEE SCHEDULE AND BOND PROCEDURES. The economic development office by rule shall require a corporation to file fee schedules and bond procedures. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.258. DELEGATION OF AUTHORITY. The economic development office may delegate to the executive director of the office the authority to approve a lease, sale, or loan agreement made under this subtitle or bonds issued by a corporation or any documents submitted as provided in this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER G. AMENDMENT OR RESTATEMENT OF CERTIFICATE OF FORMATION Sec. 501.301. AMENDMENT BY BOARD OF DIRECTORS. (a) The board of directors of a corporation at any time may file with the governing body of the corporation's authorizing unit a written application requesting that the authorizing unit approve an amendment to the certificate of formation. (b) The application must specify the proposed amendment. The board of directors shall amend the certificate of formation in accordance with this subchapter if the governing body of the authorizing unit by resolution: (1) determines that it is advisable to adopt the amendment; (2) authorizes the adoption of the amendment; and (3) approves the form of the amendment. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.302. AMENDMENT BY UNIT. The governing body of the authorizing unit of a corporation, at the unit's sole discretion, may in accordance with this subchapter amend the corporation's certificate of formation at any time by: (1) adopting the amendment by resolution; and (2) delivering the certificate of amendment to the secretary of state. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.303. AMENDMENT TO COUNTY ALLIANCE CORPORATION'S CERTIFICATE OF FORMATION. An amendment to the certificate of formation of a county alliance corporation may not be adopted unless approved by the governing body of each member of the county alliance that authorized the creation of the corporation. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.304. CONTENTS OF CERTIFICATE OF AMENDMENT. The certificate of amendment must: (1) state the name of the corporation; (2) if the amendment alters a provision of the certificate of formation, identify by reference or describe the altered provision and include the provision's text as amended; (3) if the amendment is an addition to the certificate of formation, state that fact and include the text of each provision added; and (4) state that the amendment was adopted or approved by the governing body of the authorizing unit and give the date the governing body adopted or approved the amendment. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.305. EXECUTION AND VERIFICATION OF CERTIFICATE OF AMENDMENT. (a) A certificate of amendment shall be executed: (1) on behalf of the corporation by the president or a vice president of the corporation and by the secretary or an assistant secretary of the corporation; or (2) by the presiding officer of the governing body of the corporation's authorizing unit and by the secretary or clerk of the governing body. (b) One of the officers who signs the certificate of amendment shall verify the certificate of amendment. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.306. DELIVERY AND FILING OF CERTIFICATE OF AMENDMENT. (a) Three originals of the certificate of amendment shall be delivered to the secretary of state. (b) If the secretary of state determines that the certificate of amendment conforms to this subchapter and on receipt of a $25 fee, the secretary of state shall: (1) endorse the word "Filed" and the date of the filing on each original of the certificate of amendment; (2) file one of the original certificates of amendment in the http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS secretary of state's office; (3) issue two certificates evidencing the filing of the certificate of amendment; (4) attach to each certificate evidencing the filing of the certificate of amendment; and (5) deliver a certificate evidencing the filing of the certificate of amendment and the attached certificate of amendment to: (A) the corporation or the corporation's representative; and (B) the governing body of the corporation's authorizing unit. (c) On the issuance of the certificate evidencing the filing of the certificate of amendment, the amendment becomes effective and the certificate of formation is amended accordingly. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.307. SUITS OR RIGHTS NOT AFFECTED. (a) An amendment to a corporation's certificate of formation does not affect: (1) any existing cause of action in favor of or against the corporation; (2) any pending suit to which the corporation is a party; or (3) the existing rights of any person. (b) If a corporation's name is changed by amendment to the certificate of formation, a suit brought by or against the corporation under its former name does not abate for that reason. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.308. RESTATED CERTIFICATE OF FORMATION. A corporation may authorize, execute, and file a restated certificate of formation by following the procedure to amend the certificate of formation provided by this subchapter, including obtaining the approval of the governing body of the corporation's authorizing unit. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.309. RESTATEMENT WITHOUT ADDITIONAL AMENDMENT. (a) A corporation may, without making any additional amendment, restate the entire text of the certificate of formation as amended or supplemented by all certificates evidencing the filing of a certificate of amendment previously http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS issued by the secretary of state. (b) The introductory paragraph of a restatement under this section must contain a statement that the restatement: (1) accurately copies the certificate of formation and all amendments to the certificate of formation that are in effect; and (2) does not contain any change to the certificate of formation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.310. RESTATEMENT WITH ADDITIONAL AMENDMENT. (a) A corporation may: (1) restate the entire text of the certificate of formation as amended or supplemented by all certificates evidencing the filing of a certificate of amendment previously issued by the secretary of state; and (2) as part of the restatement, make additional amendments to the certificate of formation. (b) A restatement under this section must: (1) state that each additional amendment to the certificate of formation conforms to this subtitle; (2) contain any statement required by this subtitle for the certificate of amendment, except that the full text of an additional amendment is not required to be set out other than in the restatement itself; (3) contain a statement that: (A) the restatement is an accurate copy of the certificate of formation and all amendments to the certificate of formation that are in effect and all additional amendments made to the certificate of formation; and (B) the restatement does not contain any other change to the certificate of formation; and (4) restate the text of the entire certificate of formation as amended or supplemented by all certificates evidencing the filing of a certificate of amendment previously issued by the secretary of state and as additionally amended by the restated certificate of formation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.311. CHANGE IN CERTAIN INFORMATION NOT AMENDMENT. For purposes of restating the certificate of formation under Sections 501.309 and 501.310, substituting the current number, names, and addresses of the directors for similar information of the initial board of directors or omitting the name and http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS address of each organizer is not an amendment to or change in the certificate of formation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.312. EXECUTION AND VERIFICATION OF RESTATED CERTIFICATE OF FORMATION. (a) Originals of the restated certificate of formation shall be executed on behalf of the corporation by the president or a vice president of the corporation and by the secretary or an assistant secretary of the corporation. (b) One of the officers who signs the restated certificate of formation shall verify the restated certificate. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.313. DELIVERY AND FILING OF RESTATED CERTIFICATE OF FORMATION. (a) Three originals of the restated certificate of formation shall be delivered to the secretary of state. (b) If the secretary of state determines that the restated certificate of formation conforms to law and on receipt of a $25 fee, the secretary of state shall: (1) endorse the word "Filed" and the date of the filing on each original of the restated certificate of formation; (2) file one of the original restated certificates of formation in the secretary of state's office; (3) issue two certificates evidencing the filing of the restated certificate of formation; (4) attach to each certificate evidencing the filing of the restated certificate of formation an original of the restated certificate of formation; and (5) deliver a certificate evidencing the filing of the restated certificate of formation and the attached restated certificate of formation to: (A) the corporation or the corporation's representative; and (B) the governing body of: (i) the corporation's authorizing unit; or (ii) any county in the county alliance that authorized the creation of the corporation, for a county alliance corporation. (c) The governing body of a county to which a certificate evidencing the filing of the restated certificate of formation and the attached restated http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS certificate of formation are delivered under Subsection (b)(5)(B)(ii) shall provide photocopies of the certificate evidencing the filing of the restated certificate of formation and the attached restated certificate of formation to each other member of the county alliance. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.314. EFFECT OF ISSUANCE OF CERTIFICATE EVIDENCING FILING OF RESTATED CERTIFICATE OF FORMATION. On the issuance of the certificate evidencing the filing of the restated certificate of formation by the secretary of state: (1) the original certificate of formation and all amendments to the original certificate of formation are superseded; and (2) the restated certificate of formation becomes the certificate of formation of the corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER H. REGISTERED OFFICE AND AGENT; SERVICE OF PROCESS Sec. 501.351. REGISTERED OFFICE AND AGENT. (a) A corporation shall continuously maintain in this state a registered office and registered agent. (b) A corporation's registered office may, but is not required to be, the same as the corporation's principal office. (c) A corporation's registered agent may be: (1) an individual who is a resident of this state and whose business office is the same as the corporation's registered office; or (2) a domestic or foreign for-profit or nonprofit corporation that: (A) is authorized to transact business or to conduct affairs in this state; and (B) has a principal or business office that is the same as the corporation's registered office. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.352. CHANGE OF REGISTERED OFFICE OR AGENT. (a) A corporation may change its registered office or registered agent by filing in the office of the secretary of state a statement declaring: (1) the name of the corporation; http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (2) the postal mailing address of the corporation's registered office at the time of filing; (3) the postal address to which the registered office is to be changed, if the postal mailing address of the corporation's registered office is to be changed; (4) the name of the corporation's registered agent at the time of filing; (5) the name of the corporation's successor registered agent, if the corporation's registered agent is to be changed; (6) that the postal mailing address of the corporation's registered office and the postal mailing address of the business office of the corporation's registered agent as changed will be the same; and (7) that the change was authorized by: (A) the corporation's board of directors; or (B) an officer of the corporation authorized by the corporation's board of directors to make the change. (b) Two originals of the statement shall be: (1) executed on behalf of the corporation by the president or a vice president of the corporation; (2) verified by the executing officer; and (3) delivered to the secretary of state. (c) If the secretary of state determines that the statement conforms to this section and on receipt of a $25 fee, the secretary of state shall: (1) endorse the word "Filed" and the date of the filing on each original of the statement; (2) file one of the original statements in the secretary of state's office; and (3) return the other original statement to the corporation or the corporation's representative. (d) A change made by the statement becomes effective on the filing of the statement by the secretary of state. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.353. RESIGNATION OF REGISTERED AGENT. (a) A corporation's registered agent may resign by: (1) giving written notice to the corporation at the corporation's last known address; and (2) giving three originals of the written notice to the secretary of state not later than the 10th day after the date the notice is mailed or http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS delivered to the corporation. (b) The notice of resignation must include: (1) the corporation's last known address; (2) a statement that written notice of the resignation was given to the corporation; and (3) the date on which the written notice of resignation was given to the corporation. (c) If the secretary of state determines that the notice of resignation conforms to this section, the secretary of state shall: (1) endorse the word "Filed" and the date of the filing on each original of the notice of resignation; (2) file one of the original notices of resignation in the secretary of state's office; (3) return one original notice of resignation to the resigning registered agent; and (4) return one original notice of resignation to the corporation at the corporation's last known address shown in the notice. (d) The appointment of a registered agent terminates on the 31st day after the date the secretary of state receives the notice of resignation that complies with this section. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.354. AGENTS FOR SERVICE. (a) The president, each vice president, and the registered agent of a corporation are the corporation's agents on whom a process, notice, or demand required or permitted by law to be served on the corporation may be served. (b) If a corporation does not appoint or maintain a registered agent in this state or if the corporation's registered agent cannot with reasonable diligence be found at the registered office, the secretary of state is an agent of the corporation on whom a process, notice, or demand described by Subsection (a) may be served. (c) Service of a process, notice, or demand on the secretary of state is made by delivering two copies of the process, notice, or demand to the secretary of state, the deputy secretary of state, or a clerk in charge of the corporation department of the secretary of state's office. The secretary of state shall immediately forward by registered mail one copy of the process, notice, or demand to the corporation at the corporation's registered office. (d) Service made on the secretary of state under this section is returnable not earlier than the 30th day after the date of service. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (e) The secretary of state shall keep a record of each process, notice, and demand served on the secretary of state under this subtitle and shall include in the record the time of the service and the secretary of state's action in response to the service. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER I. ALTERATION OR TERMINATION OF CORPORATION Sec. 501.401. ALTERATION OR TERMINATION BY AUTHORIZING UNIT. (a) At any time a corporation's authorizing unit, in its sole discretion, may in accordance with this subtitle: (1) alter the corporation's structure, organization, programs, or activities; or (2) terminate the existence of the corporation. (b) The authority of an authorizing unit under this section is limited only by the law of this state on the impairment of contracts entered into by the corporation. (c) An authorizing unit may make an alteration or may terminate the corporation's existence only by a written resolution of the authorizing unit's governing body. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.402. TERMINATION OF CORPORATION ON COMPLETION OF PURPOSE. The board of directors of a corporation, with the approval by written resolution of the corporation's authorizing unit, shall terminate the corporation's existence as provided by this subtitle if the board by resolution determines that: (1) the purposes for which the corporation was formed have been substantially fulfilled; and (2) all bonds issued by the corporation have been fully paid. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.403. EXECUTION OF CERTIFICATE OF TERMINATION. A certificate of termination shall be executed: (1) on behalf of the corporation by the president or a vice president of the corporation and by the secretary or an assistant secretary of the corporation; or http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS (2) by the presiding officer of the governing body of the corporation's authorizing unit and the secretary or clerk of the governing body. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.404. DELIVERY AND FILING OF CERTIFICATE OF TERMINATION. (a) Three originals of the certificate of termination shall be delivered to the secretary of state. (b) If the secretary of state determines that the certificate of termination conforms to this subtitle and on receipt of a $25 fee, the secretary of state shall: (1) endorse the word "Filed" and the date of the filing on each original of the certificate of termination; (2) file one of the original certificates of termination in the secretary of state's office; (3) issue two certificates evidencing the filing of the certificate of termination; (4) attach to each certificate evidencing the filing of the certificate of termination an original of the certificate of termination; and (5) deliver a certificate evidencing the filing of the certificate of termination and the attached certificate of termination to: (A) the representative of the terminated corporation; and (B) the governing body of the terminated corporation's authorizing unit. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.405. EFFECT OF ISSUANCE OF CERTIFICATE EVIDENCING FILING OF CERTIFICATE OF TERMINATION. The corporate existence ends on the issuance of the certificate evidencing the filing of the certificate of termination except for the purpose of: (1) any suit or other proceeding; and (2) appropriate corporate action by a director or officer under this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.406. ASSETS ON TERMINATION. On termination the title to all funds and property owned by the corporation is transferred to the corporation's http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS authorizing unit. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 501.407. TERMINATION WITH TRANSFER OF ASSETS TO TYPE A CORPORATION. On approval of the governing bodies of each unit and corporation involved, a corporation that is not a Type A corporation may transfer all of the corporation's assets to a Type A corporation and terminate its existence as provided by this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER J. HURRICANE IKE DISASTER RELIEF Sec. 501.451. APPLICABILITY. This subchapter applies only to a corporation the creation of which was authorized by a unit wholly or partly located in the Hurricane Ike disaster area, as defined by Section 704, Heartland Disaster Tax Relief Act of 2008 (Pub. L. No. 110-343). Added by Acts 2009, 81st Leg., R.S., Ch. 991 (H.B. 3854), Sec. 1, eff. June 19, 2009. Sec. 501.452. PROJECTS RELATED TO HURRICANE IKE DISASTER AREA. For a corporation to which this subchapter applies, in this subtitle, "project": (1) includes an undertaking the costs of which are eligible to be paid from the proceeds of qualified Hurricane Ike disaster area bonds under Section 704, Heartland Disaster Tax Relief Act of 2008 (Pub. L. No. 110-343); and (2) does not include: (A) a qualified residential rental project, as defined by Section 142(d), Internal Revenue Code of 1986; or (B) a project the costs of which are payable from qualified mortgage bonds, as defined by Section 143, Internal Revenue Code of 1986. Added by Acts 2009, 81st Leg., R.S., Ch. 991 (H.B. 3854), Sec. 1, eff. June 19, 2009. Sec. 501.453. PROJECTS NOT ADMINISTERED BY ECONOMIC DEVELOPMENT OFFICE. A project authorized under this subchapter and bonds issued to pay all or part of the cost of a project under this subchapter are not subject to the requirements of Subchapter F. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS Added by Acts 2009, 81st Leg., R.S., Ch. 991 (H.B. 3854), Sec. 1, eff. June 19, 2009. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.501.htm\[9/22/2014 3:35:01 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS LOCAL GOVERNMENT CODE TITLE 12. PLANNING AND DEVELOPMENT SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT CHAPTER 505. TYPE B CORPORATIONS CHAPTER 505. TYPE B CORPORATIONS SUBCHAPTER A. GENERAL PROVISIONS Sec. 505.001. DEFINITION. In this chapter, "authorizing municipality" means the municipality that authorizes the creation of a Type B corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.002. APPLICABILITY OF CHAPTER. This chapter applies only to: (1) a municipality: (A) that is located in a county with a population of 500,000 or more; and (B) in which the combined rate of all sales and use taxes imposed by the municipality, this state, and other political subdivisions of this state having territory in the municipality does not exceed 8.25 percent on the date of any election held under or made applicable to this chapter; (2) a municipality: (A) that has a population of 400,000 or more; (B) that is located in more than one county; and (C) in which the combined rate of all sales and use taxes imposed by the municipality, this state, and other political subdivisions of this state having territory in the municipality, including taxes imposed under this chapter, does not exceed 8.25 percent; or (3) a municipality to which Chapter 504 applies. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.003. AUTHORITY TO CREATE CORPORATION. (a) A municipality may authorize the creation under this subtitle of a Type B corporation. (b) A municipality may not authorize the creation of more than one Type B corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS 1, 2009. Sec. 505.004. CONTENTS OF CERTIFICATE OF FORMATION. The certificate of formation of a Type B corporation: (1) must state that the corporation is governed by this chapter; and (2) may include in the corporation's name any word or phrase the authorizing municipality specifies. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.005. CORPORATION NOT SUBJECT TO CERTAIN PROVISIONS. Sections 501.203,501.205, 501.251-501.254, 501.255(a) and (b), 501.256, and 501.257 do not apply to a corporation under this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER B. GOVERNANCE OF CORPORATION Sec. 505.051. BOARD OF DIRECTORS. (a) The board of directors of a Type B corporation consists of seven directors. (b) A director is appointed by the governing body of the authorizing municipality for a two-year term. (c) A director may be removed by the governing body of the authorizing municipality at any time without cause. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.052. RESTRICTION ON BOARD MEMBERSHIP. (a) Each director of a Type B corporation authorized to be created by a municipality with a population of 20,000 or more must be a resident of the municipality. (b) Each director of a Type B corporation authorized to be created by a municipality with a population of less than 20,000 must: (1) be a resident of the municipality; (2) be a resident of the county in which the major part of the area of the municipality is located; or (3) reside: (A) within 10 miles of the municipality's boundaries; and (B) in a county bordering the county in which most of the area of the municipality is located. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS (c) Three directors of a Type B corporation must be persons who are not employees, officers, or members of the governing body of the authorizing municipality. (d) Notwithstanding Subsections (a)-(c), if a municipality terminates a Type A corporation's existence and authorizes the creation of a Type B corporation, a person serving as a director of the Type A corporation at the time of termination may serve on the board of directors of the Type B corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.053. OFFICERS. The board of directors of a Type B corporation shall appoint: (1) a president; (2) a secretary; and (3) other officers of the corporation the governing body of the authorizing municipality considers necessary. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.054. QUORUM. A majority of the entire membership of the board of directors of a Type B corporation is a quorum. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.055. LOCATION OF BOARD MEETINGS. (a) Except as provided by Subsection (b), the board of directors of a Type B corporation shall conduct all meetings within the boundaries of the authorizing municipality. (b) If the authorizing municipality is located in a county with a population of less than 30,000, the board of directors of a Type B corporation may conduct a board meeting within the boundaries of the county. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 473 (H.B. 479), Sec. 2, eff. June 17, 2011. Sec. 505.056. RESTRICTIONS ON REGISTERED AGENT AND OFFICE. (a) The registered agent of a Type B corporation must be an individual who is a resident http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS of this state. (b) The registered office of a Type B corporation must be located within the boundaries of the authorizing municipality. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER C. POWERS AND DUTIES Sec. 505.101. APPLICABILITY OF OTHER LAW; CONFLICTS. A Type B corporation has the powers granted by this chapter and by other chapters of this subtitle and is subject to the limitations of a corporation created under another provision of this subtitle. To the extent of a conflict between this chapter and another provision of this subtitle, this chapter prevails. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.102. CONTRACT WITH OTHER PRIVATE CORPORATION. A Type B corporation may contract with another private corporation to: (1) carry out an industrial development program or objective; or (2) assist with the development or operation of an economic development program or objective consistent with the purposes and duties specified by this subtitle. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.103. LIMITATION ON USE OF REVENUES FOR PROMOTIONAL PURPOSES. A Type B corporation may spend not more than 10 percent of the corporate revenues for promotional purposes. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.104. BOND REPAYMENT. (a) Bonds or other obligations that mature in 30 years or less and that are issued to pay the costs of projects of a type added to the definition of "project" by Subchapter D may be made payable from any source of funds available to the Type B corporation, including the proceeds of a sales and use tax imposed under this chapter. (b) Bonds or other obligations that by their terms are payable from the tax proceeds: (1) may not be paid wholly or partly from any property taxes imposed http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS or to be imposed by the authorizing municipality; and (2) are not a debt of and do not give rise to a claim for payment against the authorizing municipality, except as to sales and use tax revenue held by the municipality and required under this chapter to be delivered to the Type B corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.1041. APPRAISAL REQUIRED BEFORE PURCHASE OF PROPERTY WITH BOND PROCEEDS. A Type B corporation may not purchase property for a project wholly or partly with bond proceeds until the corporation obtains an independent appraisal of the property's market value. Added by Acts 2011, 82nd Leg., R.S., Ch. 719 (H.B. 782), Sec. 2, eff. September 1, 2011. Sec. 505.105. EMINENT DOMAIN. A Type B corporation may exercise the power of eminent domain only: (1) on approval of the action by the governing body of the authorizing municipality; and (2) in accordance with and subject to the laws applicable to the authorizing municipality. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.106. LIABILITY. (a) The following are not liable for damages arising from the performance of a governmental function of a Type B corporation or the authorizing municipality: (1) the corporation; (2) a director of the corporation; (3) the municipality; (4) a member of the governing body of the municipality; or (5) an employee of the corporation or municipality. (b) For purposes of Chapter 101, Civil Practice and Remedies Code, a Type B corporation is a governmental unit and the corporation's actions are governmental functions. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS SUBCHAPTER D. AUTHORIZED PROJECTS Sec. 505.151. AUTHORIZED PROJECTS. In this chapter, "project" means land, buildings, equipment, facilities, expenditures, and improvements included in the definition of "project" under Chapter 501, including: (1) job training as provided by Section 501.162; and (2) recycling facilities. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.152. PROJECTS RELATED TO RECREATIONAL OR COMMUNITY FACILITIES. For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for use for professional and amateur sports, including children's sports, athletic, entertainment, tourist, convention, and public park purposes and events, including stadiums, ball parks, auditoriums, amphitheaters, concert halls, parks and park facilities, open space improvements, museums, exhibition facilities, and related store, restaurant, concession, and automobile parking facilities, related area transportation facilities, and related roads, streets, and water and sewer facilities, and other related improvements that enhance any of the items described by this section. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.153. PROJECTS RELATED TO AFFORDABLE HOUSING. For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for the promotion of development and expansion of affordable housing, as described by 42 U.S.C. Section 12745. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.154. PROJECTS RELATED TO WATER SUPPLY FACILITIES AND WATER CONSERVATION PROGRAMS. For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for: (1) the development or improvement of water supply facilities, including dams, transmission lines, well field developments, and other water supply alternatives; or http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS (2) the development and institution of water conservation programs, including incentives to install water-saving plumbing fixtures, educational programs, brush control programs, and programs to replace malfunctioning or leaking water lines and other water facilities. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.155. PROJECTS RELATED TO BUSINESS ENTERPRISES THAT CREATE OR RETAIN PRIMARY JOBS. For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to promote or develop new or expanded business enterprises that create or retain primary jobs, including: (1) a project to provide public safety facilities, streets and roads, drainage and related improvements, demolition of existing structures, general municipally owned improvements, and any improvements or facilities related to a project described by this subdivision; and (2) any other project that the board of directors in the board's discretion determines promotes or develops new or expanded business enterprises that create or retain primary jobs. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.156. PROJECTS RELATED TO BUSINESS ENTERPRISES IN CERTAIN MUNICIPALITIES. For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for the development, retention, or expansion of business enterprises if the project is undertaken by a Type B corporation authorized to be created by a municipality: (1) that has not for each of the preceding two fiscal years received more than $50,000 in revenues from sales and use taxes imposed under this chapter; and (2) the governing body of which has authorized the project by adopting a resolution only after giving the resolution at least two separate readings conducted at least one week apart. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.1561. PROJECTS RELATED TO AIRPORT FACILITIES IN CERTAIN MUNICIPALITIES. For purposes of this chapter, "project" includes land, http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for the development or expansion of airport or railport facilities, including hangars, maintenance and repair facilities, cargo facilities, and related infrastructure located on or adjacent to an airport or railport facility, if the project is undertaken by a Type B corporation authorized to be created by a municipality: (1) that enters into a development agreement with an entity in which the entity acquires a leasehold or other possessory interest from the corporation and is authorized to sublease the entity's interest for other projects authorized by Sections 505.151 through 505.156; and (2) the governing body of which has authorized the development agreement by adopting a resolution at a meeting called as authorized by law. Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.014(a), eff. September 1, 2009. Amended by: Acts 2009, 81st Leg., R.S., Ch. 150 (S.B. 2052), Sec. 2, eff. September 1, 2009. Sec. 505.157. PROJECTS RELATED TO BUSINESS ENTERPRISES IN LANDLOCKED COMMUNITIES. (a) In this section, "landlocked community" means a municipality that: (1) is wholly or partly located in a county with a population of two million or more; and (2) has within its municipal limits and extraterritorial jurisdiction less than 100 acres that can be used for the development of manufacturing or industrial facilities in accordance with the municipality's zoning laws or land use restrictions. (b) For a landlocked community that authorizes or has authorized the creation of a Type B corporation, "project" also includes expenditures found by the board of directors to be required for the promotion of new or expanded business enterprises in the landlocked community. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.158. PROJECTS RELATED TO BUSINESS DEVELOPMENT IN CERTAIN SMALL MUNICIPALITIES. (a) For a Type B corporation authorized to be created by a municipality with a population of 20,000 or less, "project" also includes the land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements found by the corporation's board of directors to promote new or http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS expanded business development. (b) A Type B corporation may not undertake a project authorized by this section that requires an expenditure of more than $10,000 until the governing body of the corporation's authorizing municipality adopts a resolution authorizing the project after giving the resolution at least two separate readings. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.159. HEARING REQUIRED TO UNDERTAKE PROJECT. (a) Except as provided by Subsection (b), a Type B corporation shall hold at least one public hearing on a proposed project before spending money to undertake the project. (b) A Type B corporation the creation of which was authorized by a municipality with a population of less than 20,000 is not required to hold a public hearing under this section if the proposed project is defined by Subchapter C, Chapter 501. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Amended by: Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.015(a), eff. September 1, 2009. Sec. 505.160. ELECTION REQUIRED FOR PROJECT; PETITION. (a) A Type B corporation may undertake a project under this chapter unless, not later than the 60th day after the date notice of the specific project or general type of project is first published, the governing body of the authorizing municipality receives a petition from more than 10 percent of the registered voters of the municipality requesting that an election be held before the specific project or general type of project is undertaken. (b) The governing body of the authorizing municipality is not required to hold an election after the submission of a petition under Subsection (a) if the voters of the municipality have previously approved the undertaking of the specific project or general type of project: (1) at an election ordered for that purpose by the governing body of the municipality; or (2) in conjunction with another election required under this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS Sec. 505.161. PUBLIC PURPOSE DESIGNATION; EXEMPTION FROM TAXATION. (a) The legislature finds for all constitutional and statutory purposes that: (1) a project of the type added to the definition of "project" by this subchapter is owned, used, and held for a public purpose for and on behalf of the municipality that authorized the creation of the Type B corporation; and (2) except as otherwise provided by this section, Section 501.160 of this subtitle and Section 25.07(a), Tax Code, do not apply to a leasehold or other possessory interest granted by a Type B corporation during the period the corporation owns projects on behalf of the authorizing municipality. (b) A project is exempt from ad valorem taxation under Section 11.11, Tax Code, for the period described by Subsection (a)(2) of this section. (c) This subsection applies only if the voters of the authorizing municipality of a Type B corporation have not approved the adoption of a sales and use tax for the benefit of the corporation under Section 505.251. An ownership, leasehold, or other possessory interest of a person other than the corporation in real property constituting a project of the corporation described by this section: (1) is subject to ad valorem taxation under Section 25.07(a), Tax Code; or (2) if the interest was created under an agreement entered into by the corporation before September 1, 1999, is covered by the provisions of the law codified by this section that govern ad valorem taxation of the ownership, leasehold, or other possessory interest that were in effect on the date the agreement was executed. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER E. SPORTS VENUE PROJECTS AND RELATED INFRASTRUCTURE Sec. 505.201. DEFINITIONS. In this subchapter: (1) "Related infrastructure" has the meaning assigned by Section 334.001. (2) "Sports venue" means an arena, coliseum, stadium, or other type of area or facility that is primarily used or is planned for primary use for one or more professional or amateur sports or athletics events and for which a fee is charged or is planned to be charged for admission to the sports or athletics events, other than occasional civic, charitable, or promotional events. The term does not include an arena, coliseum, stadium, or other type of area or facility that is or will be owned and operated by a state-supported institution of higher education. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.202. ELECTION: USE OF TAX PROCEEDS FOR SPORTS VENUE PROJECTS. (a) An authorizing municipality may submit to the voters of the municipality a ballot proposition that authorizes the Type B corporation to use the sales and use tax, including any amount previously authorized and collected, for a specific sports venue project, including related infrastructure, or for a specific category of sports venue projects, including related infrastructure. (b) The project or category of projects described by Subsection (a) must be clearly described on the ballot so that a voter is able to discern the limits of the specific project or category of projects authorized by the proposition. If maintenance and operating costs of an otherwise authorized facility are to be paid from the sales and use tax, the ballot language must clearly state that fact. (c) The authorizing municipality may submit the ballot proposition at: (1) an election held under another provision of this subtitle, including the election at which the proposition to initially approve the adoption of a sales and use tax for the benefit of the Type B corporation is submitted; or (2) a separate election to be held on a uniform election date. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.203. PUBLIC HEARING PRECEDING ELECTION. Before an election may be held under Section 505.202, a public hearing must be held in the authorizing municipality to inform the municipality's residents of the cost and impact of the project or category of projects. At least 30 days before the date set for the hearing, notice of the date, time, place, and subject of the hearing must be published each week until the date of the hearing in a newspaper with general circulation in the municipality in which the project is located. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.204. LIMITATION ON SUBSEQUENT ELECTION. If a majority of the voters voting on the issue do not approve a specific sports venue project or a specific category of sports venue projects at an election under Section 505.202, another election concerning the same project or category of projects may not be held before the first anniversary of the date of the most recent election http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS disapproving the project or category of projects. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.205. SUBSEQUENT APPROVAL OF ADDITIONAL PROJECTS. Prior approval of a specific sports venue project at an election or completion of a specific sports venue project approved at an election does not prevent an authorizing municipality from seeking voter approval of an additional project or category of projects under this subchapter to be funded from the same sales and use tax that is used to fund the previously approved sports venue project. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.206. EFFECT OF SUBCHAPTER ON ELECTION AUTHORITY. This subchapter does not affect an authorizing municipality's authority to call an election under this chapter to impose a sales and use tax for any purpose authorized by this chapter after the sales and use tax described by this subchapter is, in accordance with Section 505.258, no longer collected. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER F. SALES AND USE TAX Sec. 505.251. TAX AUTHORIZED. The governing body of the authorizing municipality by ordinance may adopt a sales and use tax for the benefit of a Type B corporation if the tax is approved by a majority of the voters of the municipality voting at an election held for that purpose in accordance with Chapter 321, Tax Code. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.252. SALES TAX. (a) If the authorizing municipality adopts the tax under Section 505.251, a tax is imposed on the receipts from the sale at retail of taxable items within the municipality at the rate approved at the election. (b) The rate of a tax adopted under this chapter must be equal to one- eighth, one-fourth, three-eighths, or one-half of one percent. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS 1, 2009. Sec. 505.253. USE TAX. (a) If the authorizing municipality adopts the tax under Section 505.251, an excise tax is imposed on the use, storage, or other consumption within the municipality of tangible personal property purchased, leased, or rented from a retailer during the period that the tax is effective within the municipality. (b) The rate of the excise tax is the same as the rate of the sales tax portion of the sales and use tax and is applied to the sale price of the tangible personal property. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.254. SPECIFICATION OF TAX RATE ON BALLOT. In an election held to adopt the sales and use tax under this chapter, the ballot proposition must specify the rate of the tax to be adopted. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.255. ADOPTION OF TAX AT ELECTION TO REDUCE OR ABOLISH TAX FOR TYPE A CORPORATION. A municipality that holds an election to reduce the rate of or abolish a tax imposed under Chapter 504 may in the same proposition or in a separate proposition on the same ballot adopt a tax under this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.256. APPLICABILITY OF TAX CODE. (a) Chapter 321, Tax Code, governs the imposition, computation, administration, collection, and remittance of the sales and use tax, except as inconsistent with this chapter. (b) Except as provided by this subsection, the tax imposed under this chapter takes effect as provided by Section 321.102(a), Tax Code. If an election is held under this chapter at the same time an election is held to impose or change the rate of the additional municipal sales and use tax, the tax under this chapter and the imposition or change in rate of the additional municipal sales and use tax take effect as provided by Section 321.102(b), Tax Code. (c) After the effective date of the taxes imposed under this chapter, the adoption of a sales and use tax or the attempted adoption of a sales and use tax by the authorizing municipality or another taxing jurisdiction having territory http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS in the municipality does not impair the taxes imposed under this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.2565. LIMITATION ON DURATION OF TAX. (a) At an election held under Section 505.251, the authorizing municipality may also allow the voters to vote on a ballot proposition to limit the period for imposition of a sales and use tax. (b) An authorizing municipality that has imposed a tax for a limited time under this section may extend the period of the tax's imposition or reimpose the tax only if the extension or reimposition is approved by a majority of the voters of the municipality voting at an election held for that purpose in the same manner as an election held under Section 504.257. Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.016(a), eff. September 1, 2009. Sec. 505.257. REDUCTION OF TAX WITHIN REGIONAL TRANSPORTATION AUTHORITY. Notwithstanding any other provision of this chapter, a tax imposed under this chapter by an authorizing municipality that is located within the territorial limits of a regional transportation authority and that has been added to the territory of the authority under Section 452.6025, Transportation Code, is subject to reduction in the manner prescribed by Section 452.6025, Transportation Code. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.2575. LIMITED SALES AND USE TAX FOR SPECIFIC PROJECT. (a) At an election held under Section 505.251, the authorizing municipality may also allow the voters to vote on a ballot proposition to limit the use of the sales and use tax to a specific project. (b) A Type B corporation created to perform a specific project as provided by this section may retain its corporate existence and perform any other project approved by the voters of the authorizing municipality at an election held for that purpose in the same manner as Section 504.260 provides for an election held under Section 504.251. Before spending money to undertake a project, a Type B corporation shall hold a public hearing as otherwise provided by this chapter. Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.016(a), eff. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS September 1, 2009. Sec. 505.258. CESSATION OF COLLECTION OF TAXES. A sales and use tax imposed under this chapter may not be collected after the last day of the first calendar quarter that occurs after the Type B corporation notifies the comptroller that: (1) all bonds or other obligations of the corporation, including any refunding bonds, payable wholly or partly from the proceeds of the sales and use tax imposed under this chapter, have been paid in full; or (2) the total amount, exclusive of guaranteed interest, necessary to pay in full the bonds and other obligations has been set aside in a trust account dedicated to the payment of the bonds and other obligations. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.259. ELECTION REQUIREMENT FOR CERTAIN MUNICIPALITIES. The election requirement under Section 505.251 is satisfied and another election is not required if the voters of the authorizing municipality approved the imposition of an additional one-half cent sales and use tax at an election held before March 28, 1991, under an ordinance calling the election that: (1) was published in a newspaper of general circulation in the municipality at least 14 days before the date of the election; and (2) expressly stated that the election was being held in anticipation of the enactment of enabling and implementing legislation without further elections. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER G. USE OF TAX PROCEEDS Sec. 505.301. DELIVERY OF TAX PROCEEDS. On the authorizing municipality's receipt from the comptroller of the proceeds of the sales and use tax imposed under this chapter, the authorizing municipality shall deliver the proceeds to the Type B corporation. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.302. PAYMENT OF PROJECT COSTS, BONDS, OR OTHER OBLIGATIONS. The proceeds of the sales and use tax imposed under this chapter may be used to: http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS (1) pay the costs of projects of the types added to the definition of "project" by Subchapter D; or (2) pay the principal of, interest on, and other costs relating to bonds or other obligations issued by the Type B corporation to: (A) pay the costs of the projects; or (B) refund bonds or other obligations issued to pay the costs of projects. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.303. PAYMENT OF MAINTENANCE AND OPERATING COSTS; ELECTION. (a) The costs of a publicly owned and operated project purchased or constructed under this chapter include the maintenance and operating costs of the project. (b) The proceeds of taxes may be used to pay the maintenance and operating costs of a project, unless not later than the 60th day after the date notice of the specific use of the tax proceeds is first published, the governing body of the authorizing municipality of the Type B corporation undertaking the project receives a petition from more than 10 percent of the registered voters of the municipality requesting that an election be held before the tax proceeds may be used to pay the maintenance and operating costs of a project. (c) The governing body of the authorizing municipality is not required to hold an election after the submission of a petition under Subsection (b) if the voters of the municipality have previously approved at an election ordered for that purpose by the governing body or in conjunction with another election required under this chapter that: (1) the costs of a publicly owned and operated project purchased or constructed under this chapter include the maintenance and operating costs of the project; and (2) the tax proceeds may be used to pay the maintenance and operating costs of a project. (d) An authorizing municipality is not required to hold an election under this section if the municipality: (1) is located in a county with a population of more than 1.3 million; and (2) has held before February 1, 1993, an election under this chapter at which the additional sales tax was approved. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS Sec. 505.304. PAYMENT FOR CERTAIN WATER-RELATED PROJECTS: ELECTION REQUIRED. (a) A Type B corporation may not use proceeds from the sales and use tax to undertake a project described by Section 505.154 unless the use of tax proceeds for that purpose is authorized by a majority of the voters voting at an election held in the municipality for that purpose. (b) The ballot in an election held under this section shall be printed to provide for voting for or against the proposition: "The use of sales and use tax proceeds for infrastructure relating to __________ (insert water supply facilities or water conservation programs, as appropriate)." (c) An election held under this section may be authorized by the governing body of an authorizing municipality subsequent to an earlier election authorized under Section 505.251. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.305. PAYMENT FOR CLEANUP OF CONTAMINATED PROPERTY; ELECTION. (a) The economic development office, with the assistance of the Texas Commission on Environmental Quality, may encourage a Type B corporation to use proceeds from the sales and use tax imposed under this chapter for the cleanup of contaminated property. (b) Notwithstanding any other provision of this chapter, a Type B corporation may use proceeds from the sales and use tax for the cleanup of contaminated property only if the use of tax proceeds for that purpose is authorized by a majority of the voters voting at an election held in the authorizing municipality for that purpose. The ballot in an election held under this subsection shall be printed to provide for voting for or against the proposition: "The use of sales and use tax proceeds for the cleanup of contaminated property." Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. SUBCHAPTER H. TERMINATION OF CORPORATION Sec. 505.351. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to a Type B corporation created on or after September 1, 1999. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.352. ELECTION TO TERMINATE EXISTENCE OF CORPORATION ON PETITION. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS (a) The governing body of an authorizing municipality shall order an election on the termination of the existence of the Type B corporation on receipt of a petition requesting the election that is signed by at least 10 percent of the registered voters of the municipality. (b) The authorizing municipality shall hold the election on the first available uniform election date that occurs after the time required by Section 3.005, Election Code. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.353. BALLOT. The ballot for an election held under Section 505.352 shall be printed to permit voting for or against the proposition: "Termination of the __________ (name of corporation)." Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.354. TERMINATION OF EXISTENCE OF CORPORATION. (a) If a majority of the votes cast at an election held under Section 505.352 approve the termination, the Type B corporation shall: (1) continue operations only as necessary to meet the obligations the corporation incurred before the date of the election, including paying the principal of and interest on the corporation's bonds; and (2) liquidate the corporation's assets and apply the proceeds to satisfy the corporation's obligations, to the extent practicable. (b) After the Type B corporation has satisfied all of the corporation's obligations, any remaining assets of the corporation shall be transferred to the authorizing municipality, and the existence of the corporation is terminated. (c) The authorizing municipality shall promptly notify the comptroller and the secretary of state of the date the existence of a Type B corporation is terminated under this subchapter. (d) A tax imposed under this chapter may not be collected after the last day of the first calendar quarter that begins after the authorizing municipality provides notice under Subsection (c). Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. Sec. 505.355. ELECTION REJECTING TERMINATION. If less than a majority of the votes cast at an election held under Section 505.352 approve the termination, Section 505.354 has no effect. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\] LOCAL GOVERNMENT CODE CHAPTER 378. NEIGHBORHOOD EMPOWERMENT ZONE LOCAL GOVERNMENT CODE TITLE 12. PLANNING AND DEVELOPMENT SUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENT CHAPTER 378. NEIGHBORHOOD EMPOWERMENT ZONE CHAPTER 378. NEIGHBORHOOD EMPOWERMENT ZONE Sec. 378.001. DEFINITION. In this chapter, "zone" means a neighborhood empowerment zone created by a municipality under this chapter. Added by Acts 1999, 76th Leg., ch. 305, Sec. 1, eff. May 29, 1999. Sec. 378.002. CREATION OF ZONE. A municipality may create a neighborhood empowerment zone covering a part of the municipality if the municipality determines 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; (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. Added by Acts 1999, 76th Leg., ch. 305, Sec. 1, eff. May 29, 1999. Sec. 378.003. ADOPTION OF ZONE. (a) A municipality may create a zone if the governing body of the municipality adopts a resolution containing: (1) the determination described by Section 378.002; (2) a description of the boundaries of the zone; (3) a finding by the governing body that the creation 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, benefits and is for the public purpose of increasing the public health, safety, and welfare of the persons in the municipality; and 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. (b) A municipality may create more than one zone and may include an area in more than one zone. Added by Acts 1999, 76th Leg., ch. 305, Sec. 1, eff. May 29, 1999. Sec. 378.004. MUNICIPAL POWERS. In addition to other powers that a municipality may exercise, a municipality may: (1) waive or adopt fees related to the construction of buildings in http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.378.htm\[3/5/2015 2:09:16 PM\] LOCAL GOVERNMENT CODE CHAPTER 378. NEIGHBORHOOD EMPOWERMENT ZONE the zone, including fees related to the inspection of buildings and impact fees; (2) enter into agreements, for a period of not more than 10 years, for (2) enter into agreements, for a period of not more than 10 years, for the purpose of benefiting the zone, for refunds of municipal sales tax on sales the purpose of benefiting the zone, for refunds of municipal sales tax on sales made in the zone; made in the zone; (3) enter into agreements abating municipal property taxes on property (3) enter into agreements abating municipal property taxes on property in the zone subject to the duration limits of Section 312.204, Tax Code; and in the zone subject to the duration limits of Section 312.204 , Tax Code; and (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. Added by Acts 1999, 76th Leg., ch. 305, Sec. 1, eff. May 29, 1999. Amended by Acts 2001, 77th Leg., ch. 1263, Sec. 5, eff. Sept. 1, 2001. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.378.htm\[3/5/2015 2:09:16 PM\] LOCAL GOVERNMENT CODE CHAPTER 380. MISCELLANEOUS PROVISIONS RELATING TO MUNICIPAL PLANNING AND DEVELOPMENT LOCAL GOVERNMENT CODE TITLE 12. PLANNING AND DEVELOPMENT SUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENT CHAPTER 380. MISCELLANEOUS PROVISIONS RELATING TO MUNICIPAL PLANNING AND CHAPTER 380. MISCELLANEOUS PROVISIONS RELATING TO MUNICIPAL PLANNING AND DEVELOPMENT DEVELOPMENT Sec. 380.001. ECONOMIC DEVELOPMENT PROGRAMS. (a) The governing body of a Sec. 380.001. ECONOMIC DEVELOPMENT PROGRAMS. (a) The governing body of a municipality may establish and provide for the administration of one or more municipality may establish and provide for the administration of one or more programs, including programs for making loans and grants of public money and programs, including programs for making loans and grants of public money and providing personnel and services of the municipality, to promote state or local providing personnel and services of the municipality, to promote state or local economic development and to stimulate business and commercial activity in the economic development and to stimulate business and commercial activity in the municipality. For purposes of this subsection, a municipality includes an area municipality. For purposes of this subsection, a municipality includes an area that: (1) has been annexed by the municipality for limited purposes; or (2) is in the extraterritorial jurisdiction of the municipality. (b) The governing body may: (b) The governing body may: (1) administer a program by the use of municipal personnel; (1) administer a program by the use of municipal personnel; (2) contract with the federal government, the state, a political subdivision of the state, a nonprofit organization, or any other entity for the administration of a program; and (3) accept contributions, gifts, or other resources to develop and administer a program. (c) Any city along the Texas-Mexico border with a population of more than 500,000 may establish not-for-profit corporations and cooperative associations for the purpose of creating and developing an intermodal transportation hub to stimulate economic development. Such intermodal hub may also function as an international intermodal transportation center and may be colocated with or near local, state, or federal facilities and facilities of Mexico in order to fulfill its purpose. Added by Acts 1989, 71st Leg., ch. 555, Sec. 1, eff. June 14, 1989. Amended by Acts 1999, 76th Leg., ch. 593, Sec. 1, eff. Sept. 1, 1999. Amended by: Acts 2005, 79th Leg., Ch. 57 (H.B. 918), Sec. 1, eff. May 17, 2005. Sec. 380.002. ECONOMIC DEVELOPMENT GRANTS BY CERTAIN MUNICIPALITIES. (a) A home-rule municipality with a population of more than 100,000 may create programs for the grant of public money to any organization exempt from taxation http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.380.htm\[3/5/2015 2:10:53 PM\] LOCAL GOVERNMENT CODE CHAPTER 380. MISCELLANEOUS PROVISIONS RELATING TO MUNICIPAL PLANNING AND DEVELOPMENT under Section 501(a) of the Internal Revenue Code of 1986 as an organization described in Section 501(c)(3) of that code for the public purposes of development and diversification of the economy of the state, elimination of unemployment or underemployment in the state, and development or expansion of commerce in the state. The grants must be in furtherance of those public purposes and shall be used by the recipient as determined by the recipient's governing board for programs found by the municipality to be in furtherance of this section and under conditions prescribed by the municipality. (b) A home-rule municipality may, under a contract with a development corporation created by the municipality under the Development Corporation Act (Subtitle C1, Title 12), grant public money to the corporation. The development corporation shall use the grant money for the development and diversification of the economy of the state, elimination of unemployment or underemployment in the state, and development and expansion of commerce in the state. (c) The funds granted by the municipality under this section shall be (c) The funds granted by the municipality under this section shall be derived from any source lawfully available to the municipality under its charter derived from any source lawfully available to the municipality under its charter or other law, other than from the proceeds of bonds or other obligations of the or other law, other than from the proceeds of bonds or other obligations of the municipality payable from ad valorem taxes. municipality payable from ad valorem taxes. Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.06(a), eff. Aug. 26, 1991. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 4, Sec. 25.02, eff. Aug. 22, 1991; Acts 2001, 77th Leg., ch. 56, Sec. 1, eff. Sept. 1, 2001. Amended by: Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.26, eff. April 1, 2009. Sec. 380.003. APPLICATION FOR MATCHING FUNDS FROM FEDERAL GOVERNMENT. A municipality may, as an agency of the state, provide matching funds for a federal program that requires local matching funds from a state agency to the extent state agencies that are eligible decline to participate or do not fully participate in the program. Added by Acts 1995, 74th Leg., ch. 1051, Sec. 1, eff. June 17, 1995. http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.380.htm\[3/5/2015 2:10:53 PM\] This is an Unaudited Statement. City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Previous ReportFY 2014-15FY 2013-14 Unaudited Beginning Fund Balance 9/30$ 3,322,635$ 3,322,635$ 2,768,155 Plus Year to Date Revenues: 1/2 Cent Sales Tax 217,072 649,604 569,498 Interest Income 1,380 1,958 2,007 Total Revenues 218,452 651,562 571,505 Equals Total Resources 3,541,087 3,974,197 3,339,660 Less Year to Date Expenditures: Payroll 22,739 38,226 26,704 Supplies 110 441 411 Services & Charges (Memberships, Training, Advertising, Legal, Utilities) 117,326 127,013 78,950 Capital Outlay - - 32,083 * Debt Service Transfer 270,954 451,590 395,227 Total Expenditures 411,129 617,271 533,376 Estimated Year to Date Fund Balance as of 2/28/2015$ 3,129,958$ 3,356,926$ 2,806,284 Commitments Project Nebula/Ineos**$ 700,000 Richard Industrial Group 10,000 ACT Independent Turbo Service, Inc. 426,000 Debt Service Reserve 1,083,817 $ 2,219,817 Adjusted Year to Date Fund Balance$ 1,137,109 Projection Through Year End Adjusted Year to Date Fund Balance$ 1,137,109 Plus: Estimated Sales Tax 1,559,026 Plus: Transfer from CIP for District 23 Street Paving (recinded by 4B) 175,000 Less: Estimated Operational Costs (269,113) Less: Debt Service Transfers (632,227) Projected Year End Fund Balance$ 1,969,795 Sales tax revenues for Fiscal Year 2015 are estimated to be $2,208,630. (2.5% growth over FY2014) Previously Funded Projects (Funding in Fund 015 - General CIP Fund) BudgetExpendituresBalance Façade Grants 300,000 81,570 218,430 Total 300,000 81,570 218,430 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. **EDC Coordinator awaiting termination letter.