HomeMy WebLinkAboutRES 00-198 RESOLUTION NO. j /2 9,P
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Council hereby approves the adoption of a philosophy for tax abatement
and a program for financial incentives substantially in the form attached hereto as Exhibit
"A"
PASSED BY THE CITY COUNCIL of the City of Beaumont this the d/ day of
Al" , 2000.
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- Mayor -
G AMRESOLUTRAGENDA1.RES
CITY OF BEAUMONT
PHILOSOPHY FOR TAX ABATEMENT AND
PROGRAM FOR
FINANCIAL INCENTIVES
Tax abatement is an economic development strategy to mitigate the substantial
costs usually associated with the construction of a new or expansion of an existing
facility that enhances the economic and/or social base of the community. Because
property tax revenue is the means to provide vital community set-vices, it is the
position of the City of Beaumont that tax abatement be utilized sparingly, and only
after careful consideration of the economic impact on the community and similar
type businesses located in the city.
Financial incentives, such as direct financial payments to a business, may be
considered if a substantial large number of new jobs will be created or there are
unusual circumstances that warrant additional consideration. Financial incentives
will be used sparingly, and only after careful consideration of the economic impact
on the community and similar type businesses located in the city.
Financial incentives may be considered if the capital investment made by a
company or the number of new jobs created is consistent with the City of Beaumont
Tax Abatement Policy. Financial incentives will only be considered if the
minimum capital investment is greater than $1,000,000 or at least 26 new full-time
jobs will be created. A full-time equivalent employment position is one that
provides at least 2,080 hours annually within the City's taxing jurisdiction. The
number of full-time equivalent employment positions is determined by adding the
total number of hours worked and/or actual paid leave (such as vacation, sick leave,
jury duty) of all employees, less overtime hours, and dividing that sum by 2,080.
EXHIBIT "A"