HomeMy WebLinkAboutR-2221-9-03RESOLUTION NO. 2221-9-03(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, RENEWING THE POLICY STATEMENT FOR TAX
ABATEMENT GUIDELINES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Allen City Council approved a Resolution on October 18, 2001, adopting a Policy
Statement for Tax Abatement Guidelines; and,
WHEREAS, the Texas Tax Code provides that such policy is effective for two (2) years from the date of
adoption; and,
WHEREAS, the Allen City Council finds that the renewal and extension of said guidelines are necessary
and desirable to support local business growth.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1: The City of Allen hereby renews and extends it policy for tax abatement guidelines
attached hereto as Exhibit "A," incorporated herein.
SECTION 2: The criteria and guidelines as renewed and extended shall generally govern tax abatement
agreements as required by state law.
SECTION 3: This resolution shall become effective immediately upon its passage.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, ON THIS THE 23RD DAY OF SEPTEMBER, 2003.
APPROVED:
Stephen Terrell, MAYOR
ATTEST:
glieney B. Geos TRMC, CIT CRETARY
EXHIBIT "A"
' TAX YEAR 2003
CITY OF ALLEN
TAX ABATEMENT POLICY
The City of Allen is committed to the promotion of high quality development in all parts of the
City and to an ongoing improvement in the quality of life for its citizens. Insofar as these
objectives we generally served by the enhancement and expansion of the local economy, the City
of Allen will, on a case-by-case basis, give consideration to providing tax abatement as a
stimulation for economic development in Allen. It is the policy of the City of Allen that said
consideration will be provided in accordance with the guidelines presented in this document.
Nothing herein shall imply or suggest that the City of Allen is under any obligation to provide tax
abatement to any applicant. All applicants shall be considered on a case-by-case basis.
H. ALLEN ECONOMIC DEVELOPMENT CORPORATION ON TAX ABATEMENT:
Requests for tax abatement shall be reviewed by the Board of Directors of the Allen Economic
' Development Corporation (AFDC). The AEDC Board will review each request. Deliberation of
the AEDC Board relative to the potential impact of a requested action will be based on
information prepared by the requesting party in conjunction with the AEDC Economic
Development Director. On judging the potential impact of a request, the AEDC Board shall
consider the degree to which the project furthers the economic development and general goals of
local taxing entities in support of the Allen community.
The AEDC Board of Directors is responsible for (1) reviewing all information submitted by the
applicant with officials representing local taxing entities, (2) communicating with and updating
these officials as to the status of all applications, and (3) developing a recommendation for
consideration by the respective governing bodies. Also, the AEDC Board along with the
Economic Development Director are responsible for communicating with representatives of local
businesses, the Allen Chamber of Commerce, and the citizens of Allen as to the status of tax
abatement within the community, creation of reinvestment zones, and individual tax abatement
agreements.
III. GUIDELINES FOR TAX ABATEMENT:
The primary issue determining whether or not tax abatement will be approved is the value of
structure to be added. The creation ofjobs, additional personal property value, financial
implications and community development projections will also be considered in a request for tax
abatement.
' Figure 1 presents general guidelines regarding the level of value added, the years of abatement,
and the percent of abatement. However, other criteria may also be applied in determining the
length and amount of abatement, which may be granted to support local business growth.
Resolution No. 2221-9-03(R)
Exhibit "A" — Page 1
' FIGURE 1
Value of Structure Years of Percent of
Added Abatement Abatement
$ 125,000,000
10
25%
$ 110,000,000
9
25%
$ 95,000,000
8
25%
$ 80,000,000
7
25%
$ 65,000,000
6
25%
$ 50,000,000
5
25%
$ 35,000,000
4
25%
$ 20,000,000
3
25%
$ 5,000,000
2
25%
IV. TAX ABATEMENT PROCEDURES:
The procedures as hereinafter delineated shall be utilized in the implementation of the tax
abatement program of the City of Allen.
' Tax abatement applicants shall complete and submit an application for tax abatement as
prescribed by the Economic Development Director for the City of Allen. While the specific
contents of application may vary, it is expected that the information requested will reveal the
precise location of the property, all roadways within 500 feet of the site, and provide a complete
legal description if the property is described by metes and bounds.
Applicants shall complete all information detailed in this document or other material as may be
required and submit them to the Allen Economic Development Corporation, Economic
Development Director, City of Allen, 305 Century Parkway, Allen TX 75013.
LII
AUnlication Review Stens
A. All information in the application package detailed above will be reviewed for completeness and
accuracy. Additional information may be requested as needed.
B. The application may be distributed to the appropriate City departments for internal review and
comments. Additional information may be requested as needed.
C. Copies of the complete application package and staff comments will be provided to the AEDC Board
of Directors.
Resolution No. 2221-9-03(R)
Exhibit "A" — Page 2
' Consideration of the Application:
D. The AEDC Board will consider the application at a regular or called meeting(s).
E. The findings of the AEDC Board will be forwarded, with all relevant materials, to the chief
administrative officer of each taxing entity.
F. The City Council of Allen may consider a resolution calling a public hearing to consider
establishment of a tax reinvestment zone. The amount and length of abatement may vary among
reinvestment zones approved by the City Council.
G. The City Council of Allen may hold the public hearing and determine whether the project is feasible
and practical and would be of benefit to the land to be included in the zone and to the municipality.
H. The City Council of Allen may consider adoption of an ordinance designating the area in the legal
description of the proposed project as a commercial/industrial tax abatement zone.
1. The City Council may consider adoption of a resolution approving the terms and conditions of a
contract between the City and the applicant governing the provision of tax abatement.
J. The governing bodies of Allen Independent School District, Collin County, and Collin County
Community College may consider ratification of and participation in the tax abatement agreement
' between the City of Allen and the applicant.
Resolution No. 2221-9-03(R)
Exhibit "A" — Page 3