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Home My WebLink AboutPACKET APR 04 2006 City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS APRIL 4, 2006 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments • A) Authorize an application for, and acceptance of, new funding for the Southeast Texas Auto Theft Task Force B) Authorize the Convention& Visitors Bureau and their Advisory Committee to participate in the `Adopt A Highway' Program with Texas Department of Transportation • A City of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED: Frank C. Coffin, Jr., Chief of Police MEETING DATE: April 4, 2006 AGENDA MEMO DATE: March 29, 2006 REQUESTED ACTION: Council consider authorizing an application for, and acceptance of, new funding for Southeast Texas Auto Theft Task Force. RECOMMENDATION Administration recommends approval of an application for, and acceptance of, new funding for the Southeast Texas Auto Theft Task Force. BACKGROUND As a result of Title 43, Part III, Chapter 57 of the Texas Administrative Code, local government agencies may apply for one year funding for a State Grant through the Texas Automobile Theft Prevention Authority. The City of Beaumont has been the grantee of the Southeast Texas Auto Theft Task Force since 1993. The Task Force is presently operating on$553,254 funded by the Texas Automobile Prevention Authority. Participating agencies are also providing$110,728 in cash match, and $269,353 in"in-kind" match. The Southeast Texas Auto Theft Task Force is a multi jurisdiction agency comprised of seven personnel from the Beaumont Police Department, and one each from Jefferson County Sheriffs Office, Port Arthur Police Department, and the Hardin County Sheriff's Office. Since the inception of the Task Force, motor vehicle thefts have decreased in Beaumont by 69%from 1,721 in 1992 to 528 in 2005. The Task Force currently covers Jefferson, Orange, Hardin, and Jasper Counties. The Task Force focuses efforts in two areas: investigation, which target thefts for profit, street gang related thefts, and repeat offenders; and public awareness, which uses media campaigns, training and public presentations to promote prevention techniques and awareness. The application for FY2007 is in the amount of$964,214. State funds in the amount of$552,951 are being requested from the Automobile Theft Prevention Authority. The Beaumont Police men will provide 108 228 on a cash match in the form of salaries fuel oil, and Department p $ , maintenance for vehicles. An"in-kind" match of$274,037 will also be provided in the form of salaries for personnel. PREVIOUS ACTION None SUBSEQUENT ACTION None RECOMMENDED BY City Manager and Chief of Police B Ci of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dean Conwell, Executive Director Beaumont Convention& Visitors Bureau MEETING DATE: April 4, 2006 AGENDA MEMO DATE: March 31, 2006 REQUESTED ACTION: Consider authorizing the Convention & Visitors Bureau and their Advisory Committee to participate in the `Adopt A Highway' Program with Texas Department of Transportation. RECOMMENDATION Administration recommends approval of a two-year contract with the Texas Department of Transportation, to allow the Convention & Visitors Bureau and their Advisory Committee to participate in the `Adopt A Highway' Program. BACKGROUND The `Adopt A Highway' Program began in Tyler Texas, allowing volunteers to assist in litter pick up along state highways. The program was a success and has since grown to global status. Many organizations participate by forming groups, and adopting a stretch of highway to maintain. On designated days, the volunteer group will meet, and walk the assigned territory, picking up debris along the way. BUDGETARYIMPACT This is a volunteer program, and no funds are needed. TxDot will provide all the necessities needed during pick-up, such as garbage bags, sticks, and vests. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager. hoot • �= 1W City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS APRIL 4,2006 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 2-4/Consent Agenda * Consent Agenda • GENERAL BUSINESS 1. Consider a request for a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling)District at 4345 Eastex Freeway 2. Consider approving a resolution to accept the Virginia Street Pavement Improvement Project, approve Change Order No. 3 and authorize Final Payment in the amount of$191,163.39 to W. B. Construction and Sons, Inc. 3. Consider approving an ordinance allowing for an additional six(6)months for the parking, use and occupancy of recreational vehicles and travel trailers on residential property as temporary living quarters by property owners while the damage to these properties caused by Hurricane Rita is being repaired 4. Consider adopting a Tax Abatement Policy for the City of Beaumont WORKSESSION * Receive report from Drainage District No. 6 • COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment(Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: ACM Cities' Motion to Deny Centerpoint's Request for Declaratory Relief and Motion to Discuss Centerpoint's Petition for Review, GUD Docket No. 9630 Shane Landry v City of Beaumont Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Lenny Caballero at 880-3716 three days prior to the meeting. � 1 April 4, 2006 Consider a request for a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling) District at 4345 Eastex Freeway City of Beaumont �• Council Agenda Item � c TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Public Works Director MEETING DATE: April 4, 2006 AGENDA MEMO DATE: March 21, 2006 REQUESTED ACTION: Council consider a request for a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling)District at 4345 Eastex Freeway. RECOMMENDATION The Administration recommends denial of a specific use permit to allow a drinking place in a GC- MD (General Commercial-Multiple Family Dwelling)District at 4345 Eastex Freeway. BACKGROUND Frederick J. Smith, Jr. has applied for a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling)District. The property is located at 4345 Eastex Freeway. The night club will not provide"adult entertainment". Proposed hours of operation will be 9 p.m. -2 a.m.,Tuesday-Sunday. The applicant states that the club will cater to adults 30 years and older. In 2002, a specific use permit was approved by the City Council allowing a drinking place at this address. This approval was based upon a condition that the occupancy of the night club be limited to 244 persons. This limitation was based upon the number of parking spaces(61)that the applicant could provide. Based upon the square footage of the club, 116 spaces are required. A capacity limit of 240 persons reflects the current 60 parking spaces that the Traffic Manager has approved. The ultimate capacity of the club will also be determined by the Fire Marshall. His determination will be based upon a number of factors that will be considered at the time of the issuance of the certificate of occupancy. Two businesses now occupy the subj ect property,Aaron's Rentals and an insurance office. The club will be open when the other businesses are closed. In March, 2 004, the original specific use permit was rescinded because that night club began providing adult entertainment which was in violation of the original specific use permit. At the meeting of March 28, 2006, City Council deferred action for one week and asked staff to investigate a number of issues pertaining to this item. Staff talked with the TABC and was told that a public club can have a beer and wine license and still allow BYOB. However,the bottle must remain in the hands of the customer and he must take it with him when he leaves. A beer and wine license does not allow normal sales past 12 midnight. A club owner can apply for a late hours permit that allows sales until 2 a.m. There can be no consumption of alcohol past 2:15 a.m. The original application for Club Fusion was submitted on January 25, 2002. It listed Jerry Jones as the applicant and property owner. The current application lists Frederick J. Smith, Sr. as the applicant and Jerry Jones as the property owner. On March 28, 2006,the Planning Manager spoke with Jerry Jones and he stated that he and Gradey Caldwell are the owners of the property. Mr.Jones stated that he will not be involved with the day- to-day operations of the club. The Tax Roll lists Eastex Square, Inc. as the owner of the property. Jones and Caldwell are Eastex Square, Inc.'Mr. Jones stated that he signed the current application. BUDGETARYIMPACT None. PREVIOUS ACTION The Planning Manager had recommended approval to the Planning Commission subject to the following conditions: • Limit the occupancy to a maximum of 240 persons or obtain approval of a special exception to the parking requirements from the Zoning Board of Adjustment. • No adult entertainment will be permitted. At a Joint Public Hearing held March 20, 2006, the Planning Commission voted 7:0 to deny a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling). On March 28, 2006, the City Council deferred action on this item for one week. SUBSEQUENT ACTION None. ' RECOMMENDED BY Planning Commission, City Manager, Public Works Director and the Planning Manager. ORDINANCE NO. ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A DRINKING PLACE IN A GC-MD (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT LOCATED AT 4345 EASTEX FREEWAY IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. WHEREAS,the City Council for the City of Beaumont desires to issue a specific use permit to Frederick J. Smith, Jr. to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling) District located at 4345 Eastex Freeway, being Plat D22, Tract 53, F. Bigner Survey, City of Beaumont, Jefferson County, Texas, containing 0.996 acres, more or less, as described on Exhibit"A" attached hereto and made a part hereof for all purposes; and, WHEREAS, the City Council is of the opinion that the issuance of such specific use permit is in the best interest of the City of Beaumont and its citizens subject to the following conditions; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling) District located at 4345 Eastex Freeway, being Plat D22, Tract 53, F. Bigner Survey, City of Beaumont, Jefferson County, Texas, containing 0.996 acres, more or less, as described on Exhibit "A" attached hereto and made a part hereof for all purposes, is hereby granted to Frederick J. Smith, Jr., his legal representatives, successors and assigns subject to the following conditions: 1. Limit the occupancy to a maximum of 240 persons or obtain approval of a special exception to the parking requirements from the Zoning Board of Adjustment. 2. No adult entertainment will be permitted. Section 2. That the specific use permit herein granted is expressly issued for and in accordance with each particular and detail of the site plan attached hereto as Exhibit "B" and made a part hereof for all purposes. Section 3. Notwithstanding the site plan attached hereto and made a part hereof for all purposes, the use of the property herein above described shall be in all other respects subject to all of the applicable regulations contained in Chapter 30 of the Code of Ordinances of Beaumont, Texas, as amended. PASSED BY THE CITY COUNCIL of the City B y o Beaumont this the 4th day of April, 2006. - Mayor Guy N. Goodson - r - y ' {' •. _• . Act Fill 1817-P: Request for a specific use permit to allow a drinking place in a GC-MD NORTEE f (40neral Commercial:Multiple Family Dwelling)District. , L-oration: 4345 Eastex Freeway A Applicant: Frederick Smith SCALE 40 t M :7: •° .Q • ��;sr rt :t ,, 1 SU L 1 f DpR I roa. . j 1P Jv. ; - - ' '- t't •.�- ..�: ;} Ned .. ... 4—�' •�dh2 ,J t o- ` M1 tzs i - j i .� .jl'5g . ... f�f S - 1 '�. � '{ -`� _ LY' •BPS.` \u! �i. - � ! BIT « RMs EXHIBIT , 1 ,. A' • � Lease / 1 El• . 1 .y qqii 1 ; ,. - ----r-- . Aaron's Store 1 — -r� I � I i f 1 W - - 1 t4 ' RECEIVED CITY OF BEAUMONT FLA'INN?NG DIV! J �.�n QG c bcadl 5Irr ?4 _1 --- - -- c�-c ua C) d can 1�.. Xci S r ------ _.--------------- _ L4 Alp-- -- ---_ Ak Le- �� c�m►1 . � �er� -��n i cs� uxnc ..n_ Ie- ` �--- -- _ - { 1�-- 1 l3 I 2 April 4, 2006 Consider approving a resolution to accept the Virginia Street Pavement Improvement Project, approve Change Order No. 3 and authorize Final Payment in the amount of$191,163.39 to W. B. Construction and Sons, Inc. 0 City of Beaumont : Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: April 4, 2006 AGENDA MEMO DATE: March 23, 2006 REQUESTED ACTION: Council consider a resolution to accept the Virginia Street Pavement Improvement Project, approve Change Order No. 3 and authorize Final Payment in the amount of$191,163.39 to W. B. Construction and Sons, Inc. RECOMMENDATION Administration recommends acceptance of the Project, approval of Change Order 3 in the amount of($50,393.20) and authorize Final Payment to W. B. Construction and Sons, Inc. in the amount of$191,163.39. BACKGROUND On March 16, 2004, the City Council awarded W. B. Construction and Sons, Inc. the contract for the Virginia Street Pavement Improvement Project for the amount of $2,598,065.77. Change Order No. 1 was issued authorizing the contractor to construct sidewalks on both sides of Virginia Street and to remove and replace a portion of the existing pavement on St. Louis Street. Change Order No. 2 reimbursed the contractor for renewal of the insurance for the duration of the additional work. Change Order No. 3 in the amount of($50,393.20) is required to adjust the estimated quantities on the project to reflect the actual quantities used during the performance of the project. This change order will decrease the contract amount to $2,733,972.57. The MBE participation for this project is not required due to the contractor being a certified minority contractor. BUDGETARY IMPACT Project is funded as a part of the Capital Program. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Public Works Director VIRGINIAFINAL Council Meeting: April 4,2006 CITY OF BEAUMONT DATE: MARCH 23, 2006 PROJECT: VIRGINIA STREET PAVEMENT IMPROVEMENT PROJECT OWNER: CITY OF BEAUMONT CONTRACTOR: W. B. CONSTRUCTION AND SONS, INC. CHANGE ORDER NO. 3 (FINAL) THE FOLLOWING CHANGES IN THE PLANS AND/OR SPECIFICATIONS ARE HEREBY MADE: Adjust the Estimated Quantities to reflect the Actual Quantities used in completing the project. ORIGINAL CONTRACT AMOUNT: $2,598,065.17 NET FROM PREVIOUS CHANGE ORDERS NOS. 1 AND 2 $2,784,365.77 TOTAL AMOUNT OF THIS CHANGE ORDER: $ (50.393.20) PERCENT OF THIS CHANGE ORDER: 1.94 TOTAL PERCENT CHANGE TO DATE: 4.97% NEW CONTRACT AMOUNT: $2,733,972.57 ACCEPTED BY: CONTRACTOR APPROVED BY: JORIS P. COLBERT, CITY ENGINEER TOM WARNER, DIRECTOR OF PUBLIC`WORKS KYLE HAYES, CITY MANAGER ATTESTED BY: CITY CLERK 3 April 4, 2006 Consider approving an ordinance allowing for an additional six (6) months for the parking, use and occupancy of recreational vehicles and travel trailers on residential property as temporary living quarters by property owners while the damage to these properties caused by Hurricane Rita is being repaired 11j7aj7 City of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Public Works Director MEETING DATE: April 4, 2006 AGENDA MEMO DATE: March 27, 2006 REQUESTED ACTION: Council consider passage of an ordinance allowing for an additional six (6) months for the parking, use and occupancy of recreational vehicles and travel trailers on residential property as temporary living quarters by property owners while the damage to these properties caused by Hurricane Rita is being repaired. RECOMMENDATION The Administration recommends approval of an ordinance allowing for an additional six(6)months for the parking,use and occupancy of recreational vehicles and travel trailers on residential property as temporary living quarters by property owners while the damage to these properties caused by Hurricane Rita is being repaired. BACKGROUND Due to extensive property damage caused by Hurricane Rita, on October 11, 2005, City Council approved Ord.No. 05-078 which allows residents to park,use and occupy recreational vehicles and travel trailers on their properties while repairs to their homes are being made. This ordinance specified a time frame of six (6) months. However, due to many unresolved issues, there are still a large number of individual property owners who are unable to get back in their homes. Allowing the continued use of recreational vehicles and travel trailers as living quarters for an additional six (6) months would benefit those whose homes are still under construction. It would be in the best interest of these residents to allow them to remain close to their properties during this time of repair. It not only allows them to protect their property by being there,but also allows them to remain in the City of Beaumont while their properties are being repaired. BUDGETARY IMPACT None. PREVIOUS ACTION At a Public Hearing held on October 11,2005,the City Council approved Ord.No. 05-078 allowing for a period of six (6) months the parking, use and occupancy of recreational vehicles and travel trailers on residential property as temporary living quarters by property owners while the damage to these properties caused by Hurricane Rita is being repaired. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, City Attorney, Public Works Director ORDINANCE NO. ENTITLED AN ORDINANCE EXTENDING FOR A PERIOD OF SIX (6) MONTHS THE PARKING, USE AND OCCUPANCY OF RECREATIONAL VEHICLES OR TRAVEL TRAILERS AS TEMPORARY LIVING QUARTERS ON RESIDENTIAL PROPERTY DURING THE PERIOD OF REPAIR OR RECONSTRUCTION OF DAMAGE TO PROPERTY CAUSED BY HURRICANE RITA; PROVIDING FOR SEVERABILITY; AND PROVIDING A PENALTY. WHEREAS, on October 11, 2005, City Council approved Ordinance No. 05-078 allowing for a period of six (6) months the parking, use and occupancy of recreational vehicles or travel trailers as temporary housing during the period of repair or reconstruction of hurricane-damaged properties; and, WHEREAS, a large number of individual property owners are presently unable to occupy their residences; and, WHEREAS, the City Council has determined that it is in the best interest of the City of Beaumont to extend the privilege for an additional six (6) month period to allow recreational vehicles or travel trailers to be occupied on residential property as temporary housing during the period of repair or reconstruction of hurricane-damaged properties NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. THAT it is hereby permitted for an additional period of six (6) months from the effective date of this ordinance the parking, use, and occupancy of recreational vehicles or travel trailers on residential property as temporary living quarters by property owners 10 while the damage to these properties caused by Hurricane Rita is being repaired. Section 2. shall b unlawful for an person to ark an such recreational vehicle or travel It sha a y p p y trailer used for purposes of occupancy as temporary living quarters on any street, highway, alley, sidewalk, or other public place in the City of Beaumont. Section 3. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end, the various portions and provisions of this ordinance are declared to be severable. Section 4. That any person who violates any provision of this ordinance shall, upon conviction, be punished, as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 4th day of April, 2006. - Mayor Guy N. Goodson - 4 April 4, 2006 Consider adopting a Tax Abatement Policy for the City of Beaumont City of Beaumont Council Agenda Item � c TO: City Council FROM: Kyle Hayes, City Manager MEETING DATE: April 4, 2006 AGENDA MEMO DATE: March 31, 2006 REQUESTED ACTION: Council consider adopting a Tax Abatement Policy for the City of Beaumont BACKGROUND The City of Beaumont's Tax Abatement Policy is adopted every two years by the City Council and was last adopted on April 6, 2004. The Administration worked with Beaumont Chamber of Commerce officials on the Policy two Y ears ago whereby significant changes were proposed and adopted. Eligible business activities were expanded as well as the thresholds for capital investments and full-time jobs to be created. The Policy being recommended for adoption is unchanged from the existing Policy and is attached for your review. As stated on page one of the Policy, because property tax revenue is the means to provide vital community services, it is the position of the Administration that tax abatement be utilized sparingly and only after careful consideration of the economic impact on the community. The Policy provides criteria for eligibility and policy implementation in accordance with the Texas Tax Code,Chapter 312, otherwise known as the Property Redevelopment and Tax Abatement Act, governing property tax abatement agreements. All applications are considered on a case-by-case basis. In determining how and with whom tax abatement will be utilized, the City will examine the potential return on the public's investment, including net jobs created, jobs retained, broadening of the tax base and competitive impact upon existing industries and businesses. Approval is contingent upon final consideration and action by the City Council. BUDGETARY IMPACT None. RECOMMENDED BY City Manager. CITY OF BEAUMONT TAX ABATEMENT POLICY PHILOSOPHY 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 services, it is the position of City of Beaumont that tax abatement be utilized sparingly, and only after careful consideration of the economic impact on the community. Nothing herein shall imply or warrant that the City of Beaumont is under any obligation to provide tax abatement to any applicant. ELIGIBILITY This policy document provides criteria for eligibility and policy implementation as adopted by the City Council of the City of Beaumont,in accordance with Texas Tax Code, Chapter 312,otherwise known as the Property Redevelopment and Tax Abatement Act (Act), governing property tax abatement agreements. All applications will be considered on a case-by-case-basis. The following types of enterprises are eligible to apply for tax abatement. • Industrial/Manufacturing - activities such as engaging in the mechanical or chemical transformation of materials or substances into new products;assembling component parts ofmanufactured products, if the new product is neither a structure nor other fixed improvement; and blending of materials, such as lubricating oils, plastic toxins or liquors. Other eligible activities include specialty resins and polymers, pharmaceuticals, medical devices and specialty foods. • Distribution - activities described as the wholesale distribution of durable and/or nondurable goods, such as motor vehicles, furniture, lumber and other construction materials,professional and commercial equipment, electrical goods, hardware and plumbing and heating equipment, paper and paper products, apparel, and groceries. • Central administrative office services - examples include performing management, support services or telecommunication functions for related entities. • Properties subject to a Texas Commission on Environmental Quality (TCEQ) Voluntary Cleanup Program Agreement Eligible property for which abatement may be granted includes non-residential real property and/or tangible personal property located on the real property other than that personal property that was 1 located on the real property at any time before the abatement agreement is executed. Abatement of taxes shall be the value of real or personal property located on the property for each year of the Tax Abatement Agreement only to the extent that the value for the year exceeds the value for the year in which the agreement was executed. Excluded from eligible personal property are inventory or supplies. Personal property with a useful life of less than ten years is also not eligible for tax abatement. A. The City of Beaumont herein("Governmental Entity") adopts these guidelines and criteria for tax abatement("Policy")for real property owners who propose a project("Project")to develop, redevelop and improve taxable qualifying real property("Real Property"). The Governmental Entity is willing to provide a subsidy to a Real Property Owner in the form of a special exemption from certain taxes provided the Real Property Owner agrees to accept and abide by this Policy. If the Real Property owner leases said property to a third party,the Governmental Entity may require assurances that the conditions outlined in this policy for the Real Property Owner will be met. B. The abatement of ad valorem taxes on Real Property Improvements and Eligible Personal Property will be evaluated and determined according to the following formula and will be subject to the remaining terms of this policy. NUMBER OF NEW PERCENT OF CREATED CAPITAL COST OF FULL-TIME JOBS VALUE TO BE ABATED THE PROJECT (OR) TO BE CREATED $0 - $500,000 Not Applicable 100%for 2 yrs after project completion $ 500,001 - $2,000,000 20-30 100% for 3 years $2,000,001 - $3,500,000 31-40 100% for 4 years $3,500,001 - $5,000,000 41-50 Individual Case Basis $5,000,001 or more 51 or more 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. All existing jobs as well as those created must be maintained throughout the term of a tax abatement agreement. C. With respect to a Project with a minimum investment of$5,000,001, each tax abatement request will be individually reviewed by the Governmental Entity and approved or declined based on the merits of the application. The percentage of taxes abated is one hundred percent abatement until Project Completion, not to exceed the first and second Tax Year. The percentage of taxes abated for the first through fifth Tax Years next following Project Completion shall be that percentage of abatement granted by the Governmental Entity at the time of application. The City Council may extend the abatement period longer than the periods stated above if warranted based on an analysis of the direct economic impact. 2 The period of time that the taxes are abated will be referred to as the "Abatement Period". The "first Tax Year" is defined as the first full calendar year next following the commencement of construction of the Project. PROPERTIES SUBJECT TO VOLUNTARY CLEANUP AGREEMENT Tax abatement may apply to properties that are subject to a Voluntary Cleanup Program Agreement as executed with the Texas Commission on Environmental Quality (TCEQ) in accordance with §361.601 et.seq. of the Health and Safety Code for the cleanup or removal of a hazardous substance or contaminant from the environment, as follows: Capital Expenditure Abatement Years Minimum of$250,000 100% 1 75% 2 50% 3 25% 4 Tax abatement for such properties shall not exceed four years and will take effect on January 1 of the year following the date the property owner receives a certificate of completion for the property. The City of Beaumont may cancel or modify the agreement if it determines that the use of the land is changed from the use specified in the certificate of completion, and the new use may result in an increased risk to human health or the environment. D. Prior to beginning the actual construction work or buying personal property for the Project proposed for tax abatement, the Real Property Owner requesting tax abatement within a lawfully created reinvestment zone must: (1) Provide the Governmental Entity with(a)a description ofthe Project clearly defining and delineating the work to perform; (b) a statement agreeing to expend a designated amount ("Project Cost")for the Project and,ifthe abatement is based on Required Jobs,a separate statement agreeing that the required minimum number of full-time jobs will be created("Required Jobs") and maintained during the term of the Contract;(c)an explanation as to how the Project will provide long term significant positive economic benefit to the community, the Governmental Entity and its taxpayers; (d) information as to what attempt will be made to utilize Jefferson County contractors and workers;and(e)information as to what attempt will be made to utilize Jefferson County minority contractors and workers. (2) Furnish the Governmental Entity with a written statement that tax abatement will be a significant factor in determining whether the Project for the development, redevelopment or improvement of the Real Property will take place. (3) Agree to execute a Contract with the Governmental Entity containing the covenants 3 and conditions required by the Governmental Entity. E. Should the Governmental Entity agree a to grant an abatement to the Real Property Owner after compliance with the procedure outlined above, then: (1) Subject to the terms and conditions of the Contract, a stipulated percentage as set forth above of those particular ad valorem real property taxes ("Taxes") which are generated by virtue of fair market value created("Created Value") solely due to the construction and completion of the Project on the real Property will be abated. (2) The Period of Construction ("Construction Period") for the Project shall not go beyond the end of the second Tax Year. During the Construction Period the Real Property Owner must actually expend the Project Cost. (3) Within six months next following the end ofthe Construction Period,the Project must be operational; i.e., it must actively serve the purpose for which it is designed. (4) In the event the Project is either: (a) Not complete at the Minimum Cost by the end of the Construction Period;or (b) Is timely completed at the Minimum Cost but is not operational within six months next following the end of the Construction Period;or (c) Is timely completed but the Required Jobs are not created or maintained as set forth in paragraph(B); or (d) Is timely completed at the Minimum Cost, is operational within six months next following the end ofthe Construction Period and,ifapplicable,meets the job requirements,but its operations are discontinued for a continuous period of six months, then the Contract shall terminate with respect to the Project and so shall the abatement ofTaxes for the Created Value of the Project. The Taxes otherwise abated with respect to the Project shall be paid to the Governmental Entity on the date specified by law,or,if such date has passed, then within sixty (60) days of the accelerated termination of the Abatement Period. (5) Employees and/or designated representatives of the Governmental Entity will have access to the Project during the term of the contract for inspection purposes so as to determine if the terms and conditions ofthe Contract are being met. All inspections will be made only after the giving of twenty-four (24) hours prior notice and will only be conducted in such a manner as to not unreasonably interfere with the construction and/or operation of the Project. All inspections will be made with one or more representatives ofthe Real Property Owner,and in accordance with its safety standards. 4 (6) In the event that(a)The Real Property Owner allows its ad valorem taxes owed the Governmental Entity to become delinquent and fails to timely and properly follow the legal procedures for their protest and/or contest;or(b)the Real Property Owner violates any of the terms and conditions of the Contract,and fails to cure during the Cure Period(as hereafter provided),then the Contract may be terminated by the Governmental Entity,and all taxes otherwise abated by virtue of the Contract will be recaptured and paid to the Governmental Entity by the Real Property Owner within sixty(60) days of the termination. (7) The term "Base Year Value" as used herein is the market value of all realty improvements of the Real Property Owner located within the taxing entity as of January 1 of the year a contract is executed less the abated value of all projects granted the Real Property Owner by the taxing entity for the"Base Year". The term"Taxable Value"is determined by deducting the amount of any abatements granted for that Tax Year from the appraised market value of all realty improvements of the Real Property Owner located within that taxing entity. If on January 1 st of any Tax Year all ofthe legally determined realty improvements owned by the Real Property Owner within the jurisdiction ofthe Governmental Entity is less than the legally determined Base Year Value and/or in the event that the Real Property Owner reduces their ad valorem taxes on personal property otherwise payable to the Governmental Entity by participating in a foreign trade zone or by having otherwise taxable property exempted pursuant to special legislation,e.g.,the"Freeport Amendment" ("Special Treatment"),then the abatement otherwise available shall be reduced by one dollar for each dollar that the taxable value is less than the Base Year Value and, also, for each dollar of tax reduction attributable to Special Treatment; provided, however, that in no event shall the offset 0 exceed the Created Value of the Project otherwise subject to the abatement of taxes. (8) Notwithstanding any other provision herein to the contrary in the event that the Governmental Entity adopting this Policy is required to adopt a tax rate which would subject the Entity to a tax rollback election under Section 26.07 of the Property Tax Code, and this increase is caused by requirements set forth by the State;mandated by the judiciary;expenses required to repair, rebuild or rehabilitate improvements which are damaged or destroyed;or due to a significant decline in value of a major industrial complex located in the jurisdiction of the Entity, then the Entity may allocate the taxable value necessary to reduce the actual rate below the rollback rate to the Owners of abated property based on the Owner's prorata share of the total abated value for the current tax year. (9) Should the Governmental Entity determine that the Real Property Owner is in default in the terms and conditions of the Contract, then the Governmental Entity will notify the Real Property Owner at the address stated in the Contract of such claimed default,and if such is not cured within sixty(60)days from the date of such notice("Cure Period"),the Contract may be terminated by the Governmental Entity. Any notice of default shall be in writing and shall be given by personal delivery or by certified mail, return receipt requested. In the event the notice is affected by personal delivery,the date and hour of actual delivery shall be the time and date of such notice to the Business. Absent a postal strike or the stoppage of the mails, in the event of delivery of notice by registered or certified United States mail, the date and hour following 48 hours after the date and hour at which the sealed envelope containing the notice is deposited in the United States mail,properly addressed, 5 and with postage prepaid, shall be the time and date of such notice to the Real Property Owner. F. The Go v e rnmental Entity adopting this Policy shall have the final decision with respect to its interpretation and,also,as to whether the minimum standards set forth above have been met by the Real Property Owner. G. This Policy shall terminate on the second anniversary from the date of its adoption by the Governmental Entity. APPLICATION For additional information on tax abatement, contact the City Manager's office at(409) 880-3708. In determining how and with whom tax abatement will be utilized,the City will examine the potential return on the public's investment,including net jobs created,jobs retained,broadening ofthe tax base, expansion of the economic base and competitive impact upon existing industries and businesses. Approval is contingent upon final consideration and action by the Beaumont City Council. To the extent permitted by law, information provided by an applicant in connection with a request for tax abatement is confidential and not subject to public disclosure until the tax abatement agreement is executed. 0 ! 6 Application for Tax Abatement City of Beaumont This application will become part of the Tax Abatement Agreements and any knowingly false representations will be grounds for the voiding of the agreement. An original copy of this request should be submitted to Kyle Hayes,City Manager,City of Beaumont,P.O. Box 3827,Beaumont,Texas 77704. Part I- Applicant Information Application Date / / Company Name: Address: Telephone: Current Number of Employees: Annual Sales: Employees in Taxing Jurisdiction: Beaumont Address: Years in Jefferson County: Legal Counsel: Address: Telephone: ❑Corporation ❑Partnership ❑Proprietorship Has the Applicant Company recently been cited or currently under investigation for any violations of Federal, State, and/or City laws, codes, or ordinances? ( ) no ( ) yes If yes, please provide detailed information on the nature and status of the violation(s) on a separate sheet of paper. Is any interest in the project presently held by a member of the Beaumont City Council, Planning and Zoning Commission, or any City employee? ( ) no ( ) yes Attach a description of the Applicant Company, including a brief history, corporate structure, and business plan and annual statement, if available. Part II- Project Information 0 Location Address: Legal Description: Tax Acct. Numbers: Attach statement fully explaining project, describe existing site and improvements, describe all proposed improvements and provide list of improvements and equipment for which abatement is requested. If available, provide a map showing location of existing and proposed improvements. Section A- Economic Development Type of Facility/abatement: • Industrial ❑ Central Administrative office services • Manufacturing ❑ Distribution ❑ Brown fields site ❑ Other Describe product or service to be provided: Part III- Economic Information Construction Estimate: Contractor: Start Date / / Contract Amount Completion Date / / Peak Construction Jobs If Modernization: Estimated current economic life of structure years Added economic life from modernization years Permanent Job Creation/Retention: Current employment Jobs to be Retained: Full-time jobs created at opening 20 at 3 years 20 (A full-time equivalent position is one that provides at least 2,080 hours annually within the City's taxing jurisdiction.) Provide information, if available, on (1) new employee needs; e.g. skilled vs. non-skilled, level of education, experience, etc; (2) any training which the company will provide to its new employees; (3) attach a list of new jobs to be created by job class with associated wage and salary ranges. Also, provide an average wage for hourly jobs and an average salary for management jobs; (4) attach a list of benefits provided to employees. Indicate if employees' dependents have access to the company's health plan; (5) attach a list describing the type of incentive and/or assistance you will be requesting from other City departments and/or utility companies; (6) describe any goodwill benefits your company will provide to the community. Personal Property (Furniture fixtures and Estimated Appraised Value on Site Land Improvements equipment) Value on January 1 proceeding abatement Estimated value of new abatable investment Estimated value of properties not subject to abatement(i.e. inventory,supplies) Estimated value of property subject to advalorem tax at end of abatement *Please state the method used to determine the estimated value of proposed improvements(i.e. appraisal of plans and specs, etc.) (1) Provide the Governmental Entity with(a) a statement agreeing to expend a designated amount("Project Cost") for the Project and, if the abatement is based on Required Jobs, a separate statement agreeing that the required minimum number of full-time jobs will be created ("Required Jobs") and maintained during the term of the Contract;(b)an explanation as to how the Project will provide a long term significant positive economic benefit to the community,the Governmental Entity and its taxpayers; (c) information as to what attempt will be made to utilize Jefferson County contractors and workers; and (d) information as to what attempt will be made to utilize Jefferson County contractors and workers; and (d) information as to what attempt will be made to utilize Jefferson County minority contractors and workers. (2) Furnish the Governmental Entity with a written statement that tax abatement will be a significant factor in determining whether the Project for the development, redevelopment or improvement of the Real Property will take place. (3) Agree to execute a Contract with the Government Entity containing the covenants and conditions required by the Governmental Entity. Company Representative to be Contacted: Authorized Company Official: Name: Authorized Signature Title: Name and Title Address: Telephone: