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HomeMy WebLinkAboutR-1383-11-95RESOLUTION NO. 1_383-11-95(R) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, C O L L I N COUNTY, TEXAS, SUPPORTING THE NOMINATION OF PHOTRONICS-TOPPAN TEXAS, INC., AS AN ENTERPRISE PROJECT PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT ('TEXAS GOVERNMENT CODE, CHAPTER 2303). WHEREAS, the Texas Department of Commerce ("Commerce") designated the City of Allen Enterprise Zone (the "Zone") on April 23, 1993; and, WHEREAS, Commerce will consider Photronics-Toppan Texas, Inc. ("Photronics, Inc.") as an enterprise project pursuant to a nomination and an application made by the City of Allen, Texas (the "City"); and, WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the Zone and to provide employment to residents of the Zone and to other economically disadvantaged individuals; and, WHEREAS, pursuant to Chapter 2303, the Texas Enterprise Zone Act, Texas Government Code (the "Act"), Photronics, Inc. has applied to the City for designation as an enterprise project; and, WHEREAS, the City finds that Photronics, Inc. meets the criteria for designation as an enterprise project under Chapter 2303 of the Act on the following grounds: Photronics, Inc. is a "qualified business" under Section 2303.401(a) of the Act since it will be engaged in the active conduct of a trade or business in the Zone and at least twenty-five percent (25 %) of the business' new employees will be residents of a Zone within the City's jurisdiction or economically disadvantaged individuals; 2. Photronics, Inc. is located in the Zone, or has made a substantial commitment to locate in the Zone, which has an unemployment rate of not less than one and one-half (11h) times the state unemployment rate; 3. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the Zone; and, 4. The designation of Photronics, Inc. as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the Zone. WHEREAS, the City finds that Photronics, Inc. meets the criteria for tax relief and other incentives adopted by the City and nominates Photronics, Inc. on the grounds that it will be located wholly within the Zone, will create a higher level of employment, economic activity and stability; and, WHEREAS, the City finds that it is in the best interests of the City to nominate Photronics, Inc. as an enterprise project pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, THAT: The findings of the City and its actions approving this resolution taken at the council meeting are hereby approved and adopted. BE IT FURTHER RESOLVED that Photronics, Inc. is a "qualified business", as defined in Section 2303.401(a) of the Act, and meets the criteria for designation as an enterprise project, as set forth in the Act. BE IT FURTHER RESOLVED that the enterprise project shall take effect on the date of designation of the enterprise project by Commerce and terminate five (5) years after that date of designation. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS, ON THE 16TH DAY OF NOVaIBE- R , 1995. APPROVED: oe Farmer, MAYOR ATTEST: dy Mo ' on, CITY SECRETARY Resolution No. 1383-11-95 (R) Page 2 PESOLUTION. 140. 1383-11-95(R) State of Texas Department of Commerce TEXAS ENTERPRISE ZONE PROGRAM STATE INCENTIVES Up to $1.25 million in state sales or use tax refunds of taxes paid for building materials and machinery and equipment for use in the enterprise zone by a state designated enterprise project at the rate of no more than $250,000 per year. Refund is based upon a $2,000 refund for each of 110% of the new permanent jobs the designated project commits to create in its application for a 5 -year designation, that are certified by the Texas Department of Commerce to have been created and which taxes have been verified by the State Comptroller of Public Accounts to have been paid on qualified items. Franchise tax reductions for state designated enterprise projects to be based on 50% reduction of increased apportioned taxable capital or 5% apportioned earned surplus income as calculated on each franchise tax report during the 5 -year designation period. The project may choose the calculation that provides it the greater benefit. Enterprise project designations are limited to no more than 4 qualified businesses within an enterprise zone per year, each of which is nominated by the applicable city and/or county that governs the enterprise zone in which the qualified business will be located. Refunds or reductions may not be applied for until September 1, 1993 by enterprise projects designated after August 31,1991. A level of employment must be certified by Commerce to be continuous for at least three years from a point of refund or the enterprise project may be subject to recapture of the refunds by the Comptroller of Public Accounts with interest. • A one-time state sales tax refund of up to $5,000 of taxes paid for machinery and equipment for use in the enterprise zone by a qualified business that has operated in a state designated enterprise zone for at least three years and retains at least 10 jobs. The refund is based upon $500 for each job retained. Limited to 3 qualified businesses per year in state designated enterprise zones of an applicant governing body/bodies' jurisdiction. • A one-time franchise tax refund of up to $5,000 based upon $500 for each new job created by a qualified business in a state designated enterprise zone when at least 10 new jobs have been created. Limited to 3 qualified businesses in state designated enterprise zones of an applicant governing body/bodies' jurisdiction per year. • Classification by the Public Utilities Commission as a qualified business in a state designated enterprise zone eligible for up to 5% reduction on electric utility rate upon negotiation with local electric utility service provider. • Priority and preference for all economic development programs of the Texas Department of Commerce and potential for priority or preference for other programs administered by the State. TDOC 1/8/92 CB ill RESOLUTION NO. 1383-11-95(R) ALLEN ENTERPRISE ZONE ALLEN- TEXAS 4 II ff"� CITY OF ALLEN CERTIFICATION LETTER RE: Photronics, Inc., City of Allen, Texas To the best information and belief of the City of Allen, Texas the information contained in the above referenced Enterprise Project Application is true and correct. The governing body representative and designated liaison for the City of Allen Enterprise Zone has read the Texas Enterprise Zone Act and the Enterprise Zone Program Rules and are familiar with the provisions contained therein as evidenced by the signatures incorporated herein. Signed this 16th day of November, 1995. Joe Farmer avid N. Pitstick Mayor Director of Economic Development Governing Body Representative Governing Body Designated Liaison ONE BUTLER CIRCLE ALLEN, TEXAS 75013 214/727-0100