HomeMy WebLinkAboutR-1672-1-99RESOLUTION NO. 1672-1-99
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, RENEWING AND EXTENDING THE POLICY STATEMENT
FOR TAX ABATEMENT GUIDELINES.
WHEREAS, the Allen City Council adopted Resolution No. 1428A -5-96(R) on May 16, 1996, containing a
Policy Statement for Tax Abatement Guidelines; and,
WHEREAS, Section 312.002 of the Texas In Code provides that such guidelines are effective for two (2)
years from the date adopted; 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 its 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.
' DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 7TH DAY OF JANUARY, 1999.
ATTEST:
J Mor on, CMC, CITY SECRETARY
APPROVED:
Stephen Terrell, MAYOR
DECEMBER 16, 1998
CITY OF ALLEN
TAX ABATEMENT POLICY
I. GENERAL PURPOSE AND OBJECTIVES:
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 are 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.
Il. ALLEN ECONOWC DEVELOPMENT CORPORATION ON TAX ABATEMENT:
Requests for tax abatement shall be reviewed by the Board of Directors of the
Allen Economic Development Corporation (AEDC). 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 Economic Development Director for the City of Allen. 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 Economic
Development Director are responsible for communicating with representatives of
local businesses through 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.
TAX ABATEMENT POLICY 1672-1-99(R)
1 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 of jobs, additional personal
property value, financial implications and community development projections
will also be considered in 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.
FIGURE 1
Value of
Years
Percent
Structure
of
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°x6
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 the 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 Economic Development
Director, One Butler Circle, Allen, TX 75013.
TAX ABATEMENT POLICY
1672-1-99(R)
Application Review Steps:
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.
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 within each reinvestment zone
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.
I. 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.
TAX ABATEMENT POLICY
1672-1-99(R)