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HomeMy WebLinkAboutRES 88-066 IDA ITER R E S 0 L U T 1 0 N WHEREAS, the previously adopted "Manufacturing Tax Abatement Policy" for the City of Beaumont expired in April of 1987 ; and, WHEREAS, a new "Manufacturing Tax Abatement Policy;1 is being proposed; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the Manufacturing Tax Abatement Policy of the City of Beaumont, substantially in the form attached hereto as Exhibit "A" , be, and the same is hereby, adopted by the City Council of the City of Beaumont and such policy shall be the Manufacturing Tax Abatement Policy for the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1988. Mayor - THE CITY OF BEAUMONT MANUFACTURING TAX ABATEMENT POLICY The purpose of this document is to establish a uniform policy of tax abatement for manufacturers who own qualifying real property willing to execute tax abatement contracts designed to provide long-term significant positive economic impact to the community by utilizing the area contractors and work force to the maximum extent feasible, and by developing, redeveloping and improving real property. Furthermore, a manufacturer who owns real property requesting tax abatement within a reinvestment zone must, prior to the inception of project(s) subject to an abatement contract, agree to expend a designated sum of money or provided a certain number of jobs, as follows: PERCENT OF VAIUE CAPITAL COST OF NO. OF NEW FULL-TIME TO BE ABATED THE PROTECT OR PERMANENT JOBS CREATED 0% 0 - 1,000,000 0 - 25 25% 1,000,001 - 2,500,000 26 - 50 50% 2,500,001 - 5,000,000 51 - 75 75% 5,000,001 - 10,000,U00 76 - 100 100% OVER 10,000,000 OVER 100 Only that increase in the fair market value of the real property directly resultant from the development, redevelopment and improvement specified in the contract will be eligible for abatement and then only to the extent that such increase exceeds any reduction in the fair market Exhibit "A" value of other real property of an owner located within the jurisdiction creating the reinvestment zone. The length of an abatement contract will be five years from the successful completion of the development or two years after commencement of construction, whichever is earlier, redevelopment, or improvement of the project or one-half of the project' s useful life, whichever is less. The City Manager will create an advisory committee composed of one member representing each affected taxing jurisdiction to inform and concur in the review of applications for tax abatement. The City Manager will recommend contract terms and adoption or rejection of all such applications to the City Council. This policy is effective as of April 5, 1988, and shall at all times be kept current with regard to the needs of the City of Beaumont and reflective of the official views of the City Council and shall be reviewed annually. This policy is mutually exclusive of existing Industr .al District Contracts and does not apply to applications from owners of real property in areas deserving of special attention.