R-2946-9-10RESOLUTION NO. 29469-101 R)
' A RESOLUTION OF THE CITY COUNCIL OF THIS CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ADOPTING AN AMENDED POLICY STATEMENT FOR TAX
ABATEMENT GUIDELINES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Allen City Council previously approved a Resolution 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 adoption of amended 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 adopts the amended 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 14TH DAY OF SEPTEMBER, 2010.
APPROVED:
Akaza
Stephen Arrell, MAYOR
ATTEST:
Shelley B. George, CITY SECRETARY
EXHIBIT "A"
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. 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, and any tax abatement agreements are subject to approval
by the Allen City Council.
II. 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 (AEDC). The AEDC Board will review each request. Deliberation by the
AEDC Board relative to the potential impact of a requested abatement will be based on information
prepared by the requesting party in conjunction with the AEDC Economic Development Director.
Further, the AEDC Economic Development Director shall collaborate with the Allen City Manager
' on any tax abatement requests. 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.
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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 to 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 factor determining whether or not tax abatement will be approved is the value of
structure and/or business personal property to be added. The creation of jobs, financial implications
and community development projections will also be considered in a request for tax abatement.
Figure I 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. 2946-9-10(R), Page 2
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FIGURE 1
Value of Structure Years of Percent of
Added Abatement Abatement
$ 5,000,000- 15,000,000
5
40%
$ 15,000,000- 100,000,000
10
40%
$ 100,000,000+
10
50%
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,
provide a complete legal description (if the property is described by metes and bounds), provide
projected job growth, and provide estimations for the projected capital investment.
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, care of the Economic
Development Director, at the address listed on the AEDC website, www.allentx.com.
Avolication 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.
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 call a public hearing to consider establishment of a tax abatement
reinvestment zone. The amount and length of abatement may vary among tax abatement reinvestment
zones approved by the City Council.
G. The City Council of Allen may hold a public hearing to determine whether the project is feasible 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 reinvestment zone.
Resolution No. 2946-9-10(R), Page 3
I. The City Council may consider adoption of a resolution or ordinance 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.
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Resolution No. 2946-9-IO(R), Page 4