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HomeMy WebLinkAboutR-2434-9-05RESOLUTION NO. 2434-9-05(R) A RESOLUTION OF THE CITY COUNCIL OF THIS 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 September 13, 2005, 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 adopting; 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. 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 13va DAY OF SEPTEMBER, 2005. APPROVED: Stephek Terrell, MAYOR ATTEST: Shelley B. George RMC, CITY AtRETARY EXHIBIT "A" ' TAX YEAR 2005 CITY OF ALLEN TAX ABATEMENT POLICY 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. 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 (l) 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. DI. 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 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 Resolution No. 2434-9-05tR1, Page 2 determining the length and amount of abatement, which may be granted to support local business growth. ' 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% I LIM 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 infomration 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. 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. IC. Copies of the complete application package and staff comments will be provided to the AEDC Board of Directors. Resolution No. 24349-05iR1, Page 3 Consideration of the Application: D. The AEDC Board will consider the application at a regular or called meeting(s). E. The findings of the AFDC 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 commereial/industrial tax abatement zone. II. 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. 2434-9-05(R), Page 4