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HomeMy WebLinkAboutRES 22-219RESOLUTION NO. 22-219 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby adopts the City of Beaumont's Reinvestment Zone Tax Abatement Policy attached hereto as Exhibit "A." The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of September, 2022. APM araAa - Mayor Robin Mouton - CITY OF BE.A,UMONT REINVES'K MENT ZONE . TAB ABATEMENT POLICY BHiLOOPHY" Tax-abatemetit is -an cconam�ic.development strategy to znitigatc the substantialcosts usually, " associated With thc-constluction du new or cxpansio4 of an existing'facility that enhances -the' economic: andlox social base of the community. Because property tax ravonue is the means to pxovide vital community services, it is:the position -of City of Beaumont that. tax abatement.be . utilized sp lThigly, and. only after careful consideration of the economic impact on: the community: Nothing herein shall.im�ply or warrant that the City ofBeaumont'is under any obligation to ,larovide tax abatement to any applicant, JCLIGIBiLffY This poiioy, document providos criteria for eligibility -and policy implementation as -adopted. by the City Council.of the City of -Beaumont, iir accordan=with'Texas Tax Code, Chapter 312, " otherwise•kaown as the Property Redevelopment and Tax Abatment Aat-(Act), governing property tax abatement'agreemonts.within Reinvestment Zones. All -applications will be considexed:on a cage -by -case basis. The following types .of entetprises e i e eligible to apply for tax abatement. industrial/Manufacturing -.activities such as engaging in the mechanical or. chemical txaztsfoin atlon of materials or substances 1YAb new products, assembling component parts of manufactured products, if the new.pxaduet is neither a structhre nar other fixed =' provem,.ent; and:blending of materials, such as lubricating oils,.plastic-toxtns or liquors,..Other eligible activitmes iricluda-specialty resins and polymers, pharmaceuticals, medical devices and �paoialty foods. Distribution •- activities described as the wholesale distribution of -durable and/or riQndurable goods,.such as motor vehicles, fiuniture,-Xumber and other -construction materials, pxofessional and commercial 6quipnment, electrical goods, hardware and plumbing and heating equipment, paper . and paper,proaucts, apparel and groceries. . Central adinisl ative office services �- examples �inchide perfornning management, s-qpport services or telecommunication funotions for.xelated. entitles. .. Pxoperties st bject to a Texas Commission on Environmental Quality- (TCEQ) ValuntatT Cleanup•Program•A.greement, - . Eligible property for which abatement may be� granted -includes non residential,xeal. property and/or tangible.persanal property ocaied on thereat property other than that personal:pitopexty EXHIBIT "A" that was located on the ,real property at -My time before the abatement agreement is executed, : Abatement of taxes Shall -be the .valuo-of real or,personal property located on#ha property.for : each year, of the Tax Abatement Agreement anly•to the extent, that the value for' the year exceeds . the value: fox the year' zn which•the_agreement was executed. E o life, ire of less thenton eyears lis. property are inventory or supplies. Personal property with a us also not eligible for tax abatement: A . The City of B eaumont herein C .Cloverntn.ental Entity") adopts these •guidelines and criteria for tax abatement ("Policy") for real property owner's who propose a project ("Project") to develop, redevelop and rx prove taxable qualifying'real�property (<`Rea� Property"). -The Govexnmerital Entity is willing to provide a subsidy to a Real Property Ownar.in the form of a:ipecial exemption from ccrtaintae.provided the Real Property Owner agrees to accept and abide by this Policy. If tlie.Real Property owner leases said . property to a third party, the Governmental Entity, may requi e. assuraxnees that the . conditions•outlined in this policy for the Roal Property Owner will'be met, B . The abatement of ad valorem taxes on Real Property Improvements mi ©rElaud Fill b l - Piol orty will be evaluated and determined according to the following fmula : srlbject to-the.rem.aining terms. of this policy. ; NLawR 9r'1`tE PI1 tCENT O CRBATIGll CAPITAL COST Or' FULL-TIm.,TOBS ; 'V'ALU� To ABATED' THi;PROJECT (OR) TO BE CRT,A.T ID $ 04 500,000 Nut Applicable, . 20••30 ' 100% for 2 yrs. after project completion $ 500,601- $2,0001000 31.40 . 100% dot years ' $2;000,001- $3,500,000 1 50 100%for4years $3.,500,061 $5;i)00,000 51or.m:ore Tndlvidual Case Basis $5,000,001 or Moro A full-time. equivalent employment position -is -one that provides at leao0 hourssrq Dons within the City's taxing lu_risdictian. The number o full=tzrne equrvalent mP y . P is determined by adding the total number ofhours worked and/ok -actual paid leave (such as vacation', sick leave, jury duty). of all employees, less overtime hours, and dividing that slum by 2,080: p ll:existing jobs as well as tb ase created must be, inairitained throughout the.terin of a lax abatement agreement.. C, ViTitb tespect to a Project with.a minimum investment of $S,Ooo,00l, each tax'abateznent request will be individually.reviewed by'the Governmental Entity and approved o declined basedon the merits of the.application. •The percentage of taxes abated is nne hundred percent abatement: until Project Coznpietiozr, not to exceed the Cyst and second Tax Year, The percentage of taxes abated fort first.through. fth Tad Years rre t . followlrig.Project Completkon shall be, that percentage'of,abatement granted l y the. Governm-ental'Entity of the time of the application. The Mty.Council. may extend the abatement period longer than the -periods stated .above, -if he direct economic impact, warranted based on an analysis of t2 The period of time.that.the tapes are abated will be referred to ds.the `.`Abaternerit Period",. 'The "first Tax Year" is defined as the fast full calen.dai year zaext following tie • commencement of construction of the Project. PROPFRTMS S"JUiCT TO voMNT- ARY CLX.ANUP AGni R Wt NT 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 §30.,601 et. seq. of the Health and'.Secty- Codo.for the cleanup or removal of a ha2ardous substance or contaminant from the environment, as follows: Capital Expenditure Abaterxrexrt• Years Minimum of wo,000 100% 1 75% 2 50% 3. 25% d 'Tak abatement for such,p:rope�'ties' shall not exceed foul' years a►ird wi11 take effeet'on January. 1. of the' aar following the datd the p�oPerty.owirdr receives a cer� fficate of completion -for the property. The City of Beaumont may, cancel or modify the agrecment if it determines that the ' use of the land is changed fitom the -use specified in the cortificate.of completion, and the new use' may result in an increased risk to human. health or the environment. D, Prior to beginning the actual consh-action work or buying personal property for' the Pxojectproposed for.tax abatement, the Real Property. Owner requesting tax abatement within. a lawfully created roinve'stment zone must; (1) Provide the Governmental Entity. with (a) a description, of the -Project clearly defining and .delineating -the work to perform; (6) a statemcht agreeing to expend' a. designated amount ("Project Cost") for'.thoTroject and, jf the abatet�ent is based on Required Jobs, a separate statement.agreeifg that thexequired minrm11m 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 positivc economic bene ff t to the community; the Goveinmental•Entity,and its taxpayers; (d) information as to what attel i t will be, made to utilize Jefferson County contractors and �vorlcers; 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 �w itten'statemenf that tax -abatement will .be a slgriifxcant factor.in deteirmining Whether'the Project for, the: develoliment," " redevelopment or iirrprovenie. o the Real Property will take:place,, (3). Agree to exccu,:e a Contract with.the Governmental Entity,containing the covenants and conditions•regw- red by the Governmental l ntity. . E: Shculd•the .Goveffimerztal'Entity agree to. grant an abatemerit•to. the Real Property. Owner afte 'corripliWe with the prci duxe outlined above, thbn: (1) Subject to the terms and conditiozis ofthe contract, a stipulated per. centaga-as.set forth _above of those particular :ad-valarom real property; axes ("Taxes") which -are gonexated by vhtue of fair market value created ("Cicated Value") solely, due to the construction and connpietion of the Project on the real Property will be abated.. . (2) The. Reriod of Consil uction. ('ConstructionPeriod").fox.tha ProjectAdll.:iot ga .. :. beyond the end of the second Tax.Year. During the Gonstxucian Period -the,. R cal Property Qwner.must actually expend the. Project' Cnst. (} Wztliiu six months next following the end -of the, Construction, Period, the -Project - must be operational; i.., it must actively serve the purpose for which it -is .(4) Xri the event the.Project is either:. (a) Not completc at the Minimum Cost b� the•end of fihe;Consiruuction Period; or (b) is timely'completed at the'MW—ra m Cost -but is not operational within -six monfilis.next.following the end.,of the ConstructionL Period; or- (q) Is timely campleted:but the Regw-ried Jobs.are not created of maintained as set forth in.paragraph (B); or (d) Xs timely coYntpleted at.tho Mihimum Cost, is operational within six ; mO* htbs next -following the -c d of the.Constxuctxon.�exzod and;.if applicable, meets the jo"b mquirements, but-its'Qperatf6As-are discontinued for a continuos s.perlod of -six months, tlienthe Contract shall terminate_ _ with respect to the Project and so shall the .abatement of Taxes for the - Created Vale ofthe:Project; The. Taxes. othervwiseabated with zespeot to the'Prgjcct. shall be iiaid to tiro-Gover=piital.'Entity oh•the'dafe-specifi'ed - by law, or, if such date has passed, then within sixty (6Q.days ofihe- " accelerated teXmiination of the A,batomogt Period, {5) Employees and/or designated repi:esehtatives of the Governmental Entily,-will. have. accessito,the Project during -the term of the conttact for inspecAion purposcs• . so as to ceteimiirieifthe terms. and conditions-ofthe-Contract are being.met: All: inspections-will•be made only after the.givivg-of twenty&ur-(2- 4) hou'�s pizor notice and will only. be conducted hi. such•a mariner as •to not rlm'easonably., ' inteaferowiththe co'nstructiori and/or operatics ofthe Project. All irtspeotions will be made with pno 02 move more ofthe,Redt Prdpeiiy Owner; and in :. acaordance'With its safety standards, (6) In the event that (a).The Rear Property Ownef allow its ail-valorein taxes owed the Governincirtal Entity to.:beconm..dclingrxetrt 4nd fails to timely- and: ropexly follow.. the legalprocedt res for thcirprotest'and/or.contest; ox'(b) the'Rdal Pr4erty - . Owner violates'any *of the term 'and conditions of the Con�Zact, 6d fails.to cuz:e during the Cum Period -(as hereafter provided), than the Contract may be - -terminated by. the G'ro-ernmentaMniiiy, and-atil taxes otherwise abated'by virtue of the Contract.will be•recaptured and paid to tl-ie Go vernm'ental Entity by the Real Property Owner -within sixty (60) days of -the termination, . (7} ' Theteim "Base Year Valud" as bsed•herein is.the•maxkei value of all ealty improvements of the'Real Property' Owner located withi4,the taxing entity, as of yarwary, I. of e year -a corrtraot'is'execrzted.les:s the abated Value of:all' l?rojects' granted•tho Real Property Ownef by'the taxing entity. for- the "Base Ydar" The :.. 'term.`_`Taxa6le Value".:is determined by. deducting the arxrounti b f any abatements . = granted for that Tai Year from the appraised':markot value'oi'all,realty; improvenrrerits.oi'tlre Real Property Owner located within that taxing exitity:. If.on: : January l4'of any Tax Y-ear'all'of tlae•legally determined'r.eatiy irrrproycments. owned by the'Real Property Owner wzthix the jurisdiction ofthe.Qavernmental ' Entity. is•less-than the legally determined'Base Ydar Value and/or in the .event drat' the Real'I',xoperty Owner reduces their ad.valoiem taxes ozr,personal'prope#y otherwise payable to,the,Govertimental Entityby•part cipating.ir ' foxcign txade zorae•ar; by ha�►ing otherwise taxable.pzbperiy e cmpted`pursuant to special legislation, e.g.,AW "PreeportAmeadnient" ("Special Trcatmenr!), then tha• abaternent otlrcr wise available shall be reduced by one dollar -for .eaah.:tiollarAat Ah taxable value is'less'thanthe Base Year: Valud-and- also, for oach'dollai•of tax reduction attributable to Speoial.Treatment;'pxo-�ided,. h*owevor hat iir no event ' shall the.offsct exceed the Cleated Value of the Project otherwisef subjedi to the a_Wement of taxes. {8) . Notwithstanding.any other provisloh herein to the contrary in'the e'verit that the Governmental Entity:adopting tll s -Pohcy is x:e461rcd• to adopt a tax rate which wobld subjeetthe Etrtit-'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; raaridated by the judiciary; expenses required to rap*, rebuild ot; - .. rohabilitate improvements which-are-d'amagcd or.desiroyed;*ar due to.a sigrtificant decline in value of a•major industrial. oorhplex.lpcated ixr the • jurisdiction of the. Entlty,,then the.Entity'may allocate thc'taxable value.necessary. to.x•edgca-the . • actual rate.bolow'the •rollliack.rate to the Owners. of abated prdpeity-based on the Owner's prorate. share of the total abated value for the current tax year:. (9) Shauld.the Gover ental Entity, determine that the Real -Prop ty.Qwnez is in default ' ' tlx rn. e teams and eonOtIons.ofthe-Contzaet, then the Governmental Eniity will notzfy.:'the�Real•.Pjrc .ierty Owvher•at the address stated in the •Contraci af'sucli . claimed'defa lt, and if such is Aot cured within sixty (60) days from the date of such notice (".Cairc Period"), the •Contract may I O'tezminated by fh Governmental ' Entity, .Anyizotice o default -shall -be In writing and -shall be given by personal del v0ry. of by certified rxtail; return receipt iequasted, In the:cvent:the•notice'is affected, by persenal delivery, the date •and-hoimof actual deliviery shall'b'e the time, and date of suclx.notice to fhc Business, Absent a postal �stri e.or.the % stoppage; gf the,:mails; in the- event of donyczy of notice'by: registered or ce��ifF'ecl I. Wted-'States_ail' the date and h,ouz follgwing.48 hours aftor th&' afe'and ho�ir at Which the se$led enydlope containing the notice -is. deposltcfln'fhe .United States imail; properly addressed, and: with postage prepaid, shall be the time and date of such notice to Real.Provtt* 4wher. - The Gavet>tit�ehtal•E,ntity 'adoPting•this•Policy shall hav' e.thc fz ral decision with x'espect ; to its,izrterpretatzon and, also; as to whetlrer.th-e m' =' ' '-standaads.set forth above have been x ret by tl�e Real Property ' Owner. ; this Policy shall terminate:oix the second anniversary from the date of its' adoption b �� • 1 Governmental Entity. . • • y ; AgkLXCA O, q For. additional•inform:ation-on tax abatement, can#actthe,Plannizr &••Comm Deparixrient'at (40.9) 'S-8(?-3100, In:detet niniiig how a-aad-w.ith Whom tax abaetn Dwill b-emoz utilized, the Ciiy.will e7�amizro the potential, return on the public's:investrnent, iixcluding riet jobs •creaied, j'obs'retained,=bt.•oadeixing ofthe tax base, expaWon ofti e.ecoriomic base and cempetziive: irhPaet upon king industries and-husitwsses. Approval is contingentupon•l al consideration and action b the Bcamxaont Ci COUhcil. To the.extent'permitted.by law, ty: � _ information provided, by an applicant in connection with a rettuest fox.tax ahateme4t.1' _ confidential and -not subject to pulilxc disclosure until the tax abatement agrNmeni is•executcd. 6 Application .fox -Tax• Abatement •Czty of Beaumont Tfi v6fdfftsatfnrx' wtlE became part of the Tait Ab . ment A•gtecmetrts and arty lmowingly false rapiesanfation� wlll tfre voiding ofths agrecmcz�t, An o''iglnal cdpy Qft}ris request should be subraltted is the'9 Ci of Seauhzont P. 0: Bdx 827, Beatunozrt' Texas 77704; . ba giound;s for mmunliyDevelopmentDcpartmmt; -aft I— Applicant infox unatainzz , Applzcatxou Date Co,'mpany Name: Address; Telephone, : Cuzxent Number.oEmployees: Az ual ales:,, , Employees xn..Taxing J'arisdiation: Beaumont Address: ; Years iri re ersOn County: :.. Legal-.C(jseT: Address: ; Corporation Has. the .Applicarit.Co t'zoprlotorsliip mpany recently been cited-pr cuz� ontXy izr�dOr invesiigat�on f'or an ' violaiians o£liederal; Mate, aizd/or.Czty laws, codes, Or ordinances? y ( ).No () Yes If yes;:please provide rd;etaijed'infomatioseparate sheet Opapen on the natuxe and'statzs of the.'violaiion(s)-on,a..• { - � • ' Is any interest iYx• the lirojeat:�ptesently held.by a rnexnher a . . •. .. and Zoniirg Comrnission,-or and ty eployee7 Ci1n .fth� Betuxzont City Cotirrcxl; P1arnirg i ( ) No ( )Yes :4ttach a tlesci tio» of the 4PPlicant Co1jany, a h7cluding br iefhtstar y, rinrrual statement; f available.: 'ara e' cor p t sfr ucture, ' arrd business plan and Part-.II—.,Projeet.Ynformation LocationAdchess: Legal DesOlption; Tax Met: NumNrs: Attach statement fully axplalning project, describe existing site qnd iyysprove1nants, describe allproposed improventet?ts andp•avide-list of improvenients and equlputettt fat^�hich abatement fs requsstec 1f available, Provide a mcrp sho3ving location of existing attd proposed•itnpi'ovenrents, . ectzon A - Ec�►nomic Developm6nt Type of Nullity/abatement; --------------- rnd�astrial M nufactming Brown fields site Describe pxoduct or service to 'be provided: Pa't III — I3;conomxe xnfox'matiprt Co'nstructxon, Estimate; Start Date: Completion Date: Centfal A,dmiiustrativd office 'sexvices .Distribution. Other Contract Amount: ' 'Peak Constmoiion Jobs; If Modoi-alzatlon: . Esiimated'c4rrei1t economic life of structure Added.economic life from modernization. yeaxs .years Pe ianent Job. Creatiori/Retentian:' Current employment Jobs to be Retained., F1111-tune jobs -created at opening. 20 at•3 years , _.. __, 2Q dm. (A M1l-e equivalent position is one that provldes at least 2,080 haurs annuaity within the City's taxing jur)sdic#[ont) Provide information, if a_ ailable on (1) new eMPloyee-needs; e..g, skilled vs, non»skkilled; level oteducation, exparierice, i?}•y t�`aiing the company will pavide io its new erziployees; ' (3) attach a list of r ew jobs'to be. created. by -job class with associated wage, a�cl salazy xaxtges. Also,. provide ari average• wage :for hourly;jbbs and an average salary for manager�zent ,jobs; (4) attadh.a list of benefits provided to employees, Indicate employees'dependents ; have access to the company's .health plan; (5) attach a list doscribing'tlre Type of incentive and/or assistance you Will be requesting frorirz • other City departments and/or, utilify corn = (6) desaribu any • y parries; goodwill bexrefits our compalry will Provide to the co mmunity, .- n. VALiJE t3I�T 3 i LAND PAl2sol�A i,'XZUr3t Y aft�e on J'antiary.l PwGCeding abatement McRow- k-�8 Estitnafedvaiuo pf netiv abatable investment IYD E. J)JT R.N Aiffmated valnc pfprogBrtics not subjopt to aEratemnnt i. e: invento sti fes .. ftez af'end astimaf o:Fabaternentorom vafue ofl�r Duty sabjOet to ad'vaf ... - . Pigase'stato the mefBod used to"detoimine the esfimafed value ofgroposed irn rove g ments.O. e, appraisal gr&ns.trd sees, eto.) ' .•{I), Pra'vide�e:Gove'' nn?cntal Entity with, (a) a staterzzent agree de'sigt�ated'.axz�otut:(��project Cast'') For tl ePzojeat'aud;gthegto expend. oxx Required Jobs, a geparate'stati mc)nt agrecin that: abaterxrent is -based nUmbez of izl'I-time �bs will be created « g � the r'ecluiicd the'terrn of �e.Coxltxact• .b { Required Jobs") and aintaixzcd duzinfg , J. an expltznatzon as.to.how.tbe Pr*ot.will provide a long terms Ngnifldant Positive ecorzotr�ic ben f t to the'c Govsrnment� Entity. and ifs.ta a er's c i °�tYr .ilie • _ made to utilize Bea P �' () z�forxrzation as to what•attempt mill be. . umoxrt contractors and workers,, atterlpt will b6-mad&to utilize Bea ,, and {d).rnfortnatio.,a. s to llhaj . workers, aril (e)•in aIniatioxz as fie t atte Jefferson CaUnty, contractors and " or16-H-etson'Couu Mp will.be,n de•to u`tzIize:$eaum6nt. 'r�nority poritractors and 'wor'l exs. : (2) Futxosh the Govexnl�erital E�ntitytit'vwith:a writteir l�ta be•a signifjcant.�act�r in d P-tementthat tag abateineni wz ll �g whether the'r'ojcct fr the developtnt;nt, redevelom0n oz• Xmpzavenxerlt oitho e Real'zopezty will take lace. . • {) ;Agree to execute d ContY'act wiih.th ,•Govezninent Enti auc .coridztions requited by the, CQyez:�e t i Entz ' Qnt arziri •thp cov.0r 4nts , tY Corn' an Re resentative to be.Contacted: Alathonzed'Com azz Official: Mthozi'zed .Signaiur'e Addxe NMe' ' arid- Title ss: 9 r