HomeMy WebLinkAboutMIN JAN 21 1997 M I N U T IE S > OI'Y OIL B EAAUMONT
Lulu L.smith DAVID W. MOORE, MAYOR Andrew P.Cokinos,Mayor Pro Tem
Guy N.Goodson CITY COUNCIL MEETING Becky Ames
John K.Davis JANUARY 21,1997 Bobbie J. Patterson
Lane Nichols,City Attorney Ray A. Riley,City Manager Patrice Fogarty,City Clerk
The City Council of the City of Beaumont, Texas, met in a regular session on January 21, 1997,
at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:35 p.m. to consider the
following:
OPENING
*Invocation Pledge of Allegiance Roll Call
*Presentations and Recognition
*Public Comments: Persons may speak on scheduled agenda items
*Consent Agenda
Mayor Moore called the meeting to order at 1:35 p.m. The Reverend Johnny Creasong, First
Church of God, gave the invocation. Mayor Moore led the pledge of allegiance.
Present at the meeting were: Mayor Moore, Mayor Pro Tem Cokinos, Councilmembers Smith,
Goodson, Ames, Davis, and Patterson. Also, present were Ray A. Riley, City Manager; Lane
Nichols, City Attorney; Patrice Fogarty, City Clerk; and Barbara Liming, Deputy City Clerk.
Mayor Moore announced that an executive session will be held following the regular session of City
Council in accordance with Section 555.071 of the Government Code to discuss contemplated or
pending litigation: Kenneth Karr, et al v. City of Beaumont, et al; Claim of Charlesetta Cheatham;
and in accordance with Section 551.074 of the Government Code to consider the evaluation of a
public officer or employee: specifically the City Attorney.
• Citizens were invited to comment on the consent and main agenda items. No one wished
to address these subjects.
CONSENT AGENDA
The following consent agenda items were considered:
* Approval of the minutes of the January 7, 1997, meeting;
A. Confirmation of committee appointments - Resolution No. 97-8;
B. Authorize the settlement of a claim - Resolution No. 97-9;
Mayor Pro Tem Cokinos moved to approve the consent agenda.
Councilmember Davis seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Cokinos, Councilmembers
Smith, Goodson, Ames, Davis, and Patterson
Noes: None
GENERAL BUSINESS
1. Receive the Comprehensive Annual Financial Report for FY 1996.
Copies of the Comprehensive Annual Financial Report for FY 1996
were distributed to Council. Mr. Ted Williams representing the City's
independent auditor's, Cook Shaver Parker & Williams, complimented
City Manager Ray Riley, Finance Officer Beverly Hodges, Controller
Paula Labrie and Accounting Department staff for superb accounting
procedures. He said their audit indicates a clean operation and good
financial stability for the City of Beaumont. Mr. Williams recognized
Mr. Gayle Botley from Botley and Harrington, their joint partners as
auditors for the City. Mr. Williams said they have a good working
relationship, not only for the City, but on other projects. Mr. Botley
echoed appreciation for City staff, thanked Cook Shaver Parker &
Williams for the opportunity of working in a very compatible and good
joint venture with them.
After discussion, Mayor Pro Tem Cokinos made a motion to accept the
the Comprehensive Annual Financial Report for FY 1996.
Councilmember Goodson seconded the motion motion. MOTION
PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Cokinos, Councilmembers Smith,
Goodson, Ames, Davis, and Patterson
Noes: None
2. Approve Change Order No. 3 to the contract with ALLCO, Inc. for the South Park Drainage
Project.
Councilmember Patterson moved to adopt Resolution No. 97-10.
Councilmember Davis seconded the motion. MOTION PASSED.
Minutes;1/21/97;Page 2
Ayes: Mayor Moore, Mayor Pro Tem Cokinos, Councilmembers Smith,
Goodson, Ames, Davis, and Patterson
Noes: None
3. Authorize the purchase of a carbon analyzer for use in the Water Reclamation and Water
Production Divisions.
Mayor Pro Tem Cokinos moved to adopt Resolution No. 97-11.
Councilmember Goodson seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Cokinos, Councilmembers Smith,
Goodson, Ames, Davis, and Patterson
Noes: None
4. Approve a contract to provide Fire Department uniforms.
Mayor Pro Tem Cokinos moved to approve Resolution No. 97-12.
Councilmember Davis seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Cokinos, Councilmembers Smith,
Goodson, Ames, Davis, and Patterson
Noes: None
5. Consider approving a bid for the refurbishing of two truck chassis.
Mayor Pro Tem Cokinos raised questions concerning invoking the sales tax application that
would give preference to local vendors, length of warranty with the proposed vendor,
location for possible repairs, and suggested deferring action until more information is
available. Councilmember Goodson and Councilmember Davis added comments about
reevaluating the sales tax analysis application, legal procedures, obligation to taxpayers to
accept low bids, the importance of buying local as much as possible and warranty impact
at an off-site location.
As a courtesy to Mayor Pro Tem Cokinos' request, this item was deferred for two
weeks.
COMMENTS
Councilmember Goodson commented about trying situations last week caused by the ice
storm, especially complimented City staff from the Fire, Police and Public Works
departments for assistance to citizens, cited a specific instance when Fire Department
Minutes;1/21/97;Page 3
personnel assisted in securing a home when a tree limb caused damage to a resident's
home and thanked all City employees for courtesies extended to citizens last week.
Councilmember Davis expressed a desire for a future meeting with Mr. Lee and Mr.
Shepherd in a private setting to discuss questions raised to him and to better
understand the complexity of the situation caused by last week's ice storm.
Councilmember Davis said that yesterday was a great day of celebration of Martin
Luther King's birthday, said he attended several events and was pleased to hear
ministers of all races and all cultural groups speak about the bigger picture of coming
together and understanding the need of coming together as we move into the next
century and said it bodes well for the leadership of the civil rights community and for
progress to be made.
Mayor Moore thanked Mayor Pro Tem Cokinos and councilmembers for standing in
for him while he was in Washington, D. C. While there, Mayor Moore said he went
to several meetings of mayors, met with the City's Washington Assistant, Carolyn
Chaney, and with Congressman Lampson. Also, he said another City staff member
attended a Community Development Conference and that the issues of housing,
welfare and work are critically important. Mayor Moore emphasized that economic
stimulation and crime diminution is helped best by job creation and work opportunity.
He spoke in support of pooling resources for the most impact on economic gain.
Mayor Moore commented that the ice storm brought several issues into focus--the
spirit of our community that encompasses the dream of which Dr. King spoke--said
he saw many tremendous acts of kindness displayed during the storm inconvenience
and complimented the men of First Baptist Church for cooking meals served by the
Red Cross at the temporary shelter located at the Sterling Pruitt Activity Center.
Mayor Moore admonished the Public Works Director and City Manager to
communicate to congressional representatives and citizens the importance of
refunding the ISTEA program, if we are going to be successful in utilizing federal
dollars for local needs. In addressing the drug problem, Mayor Moore commented
that he heard General Cafferty speak about the issue in a most effective and proper
fashion and was very impressed with his views. Mayor Moore announced that a
Council retreat will be held next week to discuss several items for 1997, and that the
regular City Council meeting will not be held.
OTHER BUSINESS
* Review application to reestablish an enterprise zone
At the request of the City Manager, Finance Office Beverly Hodges reviewed Enterprise
Zone designation and elements of a proposed Uniform Tax Abatement Policy, attached as
an exhibit. She said the proposed policy is similar to the 1992 policy and after adoption, a
joint public hearing must be held by the City of Beaumont and Jefferson County.
Minutes;1/21/97;Page 4
PUBLIC COMMENTS (Persons are limited to 3 minutes)
Mr. Ivory Pugh, 5750 Stanford, addressed Council to complain about alleged abuse
by Police Department personnel, asked for a meeting and was advised that because
of his pending lawsuit against the City, such a meeting cannot be arranged at this
time.
Mr. Greg Shepherd, 7880 Stone Circle, addressed Council as the Customer Service
Manager for Entergy to express appreciation to the City for the help and assistance
received last week. He said it was an arduous week for everyone with about 2700
workers in the area restoring power and volunteered to answer any questions
Council might have. He said about 84,000 customers in this area were without power
during peak hours on Monday and was more than experienced during Hurricane
Bonnie. Mr. Shepherd said this was a significant event, commented about the good
will of citizens assisting each other as well as the linemen working to correct the
outage problem.
Mrs. Paubla Ydrogo, 1590 Gilbert, addressed Council to report a utility line is still
down in her front yard after two calls to Entergy, reported a good neighborhood
watch meeting last night with about twenty in attendance, spoke about improvements,
a desire to keep violence at a minimum and working together. Mayor Moore
instructed Mrs. Ydrogo to speak with Mr. Shepherd about the utility line.
Ms. Pierre, 1212 Avenue F, addressed Council to express views about the ice storm,
questioned citizen feedback or input received for Mayor Moore to take to the meeting
with Entergy tomorrow and suggested that statistics be prepared comparing customer
service rendered by Gulf States versus Entergy. Ms. Pierre said she feels customer
service by Entergy is not as good as that received in the past from Gulf States and
said that perhaps a statistical analysis could also help Entergy serve customers
better. She expressed concern for the elderly and need for a plan being in place for
them during emergencies.
Mr. Benny Mendosa, 1156 South Kenneth, reported a good meeting last night, said
there were good reports from neighbors and expressed appreciation to Councilman
Davis and other councilmembers for their support and encouragement.
Mr. Lynn DeMary, 430 East Elgie, addressed Council to claim that since 1994
Entergy has not renewed their previous tree trimming service contracts, said that
tree trimming services are used for emergencies only, not for general maintenance,
and suggested that perhaps this impacted the damage caused by tree limbs falling
across power lines. Mr. DeMary compared little loss of telephone service during the
ice storm compared to great electric outage, commented that the same poles are
often used for both services and the number of telephone company trucks seen
servicing the poles versus Entergy trucks, the length of time dictated by distance to
bring out-of-state personnel in to assist with the restoration.
Minutes;1121197;Page 5
There being no further business, the meeting recessed at 2:52 p.m. to reconvene in executive
session.
Mayor David W. Moore
Patrice Fogarty, OXy Cler
Minutes;1/21/97;Page 6
City of Beaumont _
110,Main St,Room�C"of Beaumont P.O.Box 3827 77704 Fax (4(409)880-3789
8037 2�
To: Ray A. Riley, City Manager
From: Beverly P.Hodges,Finance Officer
Date: Friday, January 17, 1997
Subject: Enterprise Zone - Tax Abatement Policy
Historically, there have been several tax abatements granted in the City designated
Enterprise Zone. As of September 1, 1996, the previous Enterprise Zone designation expired.As
part of a new application we have modified the area of designation(map attached)to exclude
any portion of Orange County and have extended the area within the City limits to include the
area between Fannett Road and I-10.The Enterprise Zone once approved maybe subsequently
amended.
As part of the application process City Council must adopt an abatement policy.The
most recent policy(adopted in 1992)expired in 1994.The abatement policy attached is very
similar to•the 1992 policy.We have removed the job references and added an additional
threshold for projects in excess of$50,000,001.
After adoption of the abatement policy,a joint public hearing must be held by the City of
Beaumont and Jefferson County on the proposed zone and the incentives offered. We are
proposing a joint designation because it would allow for the inclusion of up to twenty square
miles in the zone. Succeeding the hearing, ordinances will be required nominating the proposed
zone for state designation.A formal application is being prepared by City staff for submission
to the Texas Department of Commerce.
EXHIBIT "A"
UNIFORM TAX ABATEMENT POLICY
A- The City of Beaumont herein("Governmental Entity") adopts this policy of tax abatement
("Policy")for a manufacturer who owns real property("Real Property Owner")who proposes 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.
B. Subject to the remaining terms of this Policy, the abatement of ad valorem taxes on Real
Property shall be according to the following formula:
PERCENT OF CREATED CAPITAL COST OF
VALUE TO BE ABATED THE PROJECT
0% 0 - 1,000,000
30% 1,000,001 - 2,500,000
40% 2,500,001 - 5,000,000
50% 5,000,001 - 10,000,000
Weighted Average 10,000,001 - 50,000,000
Individual Case Basis 50,000,001 or more
C. With respect to a Project with a minimum construction cost of$50,000,001, 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 are 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
1
application. With respect to weighted average, the percentage of taxes abated for a Project with a
minimum construction cost of between$10,000,001 and $50,000,000 are: one hundred percent
abatement until the Project is complete not to exceed the first and second Tax Year; ninety
percent abatement for the first Tax Year next following the timely and successful completion of
the Project("Project Completion"); seventy-five percent abatement for the second Tax Year next
following Project Completion; sixty percent abatement for the third Tax Year next following
Project Completion; forty-five percent abatement for the fourth Tax Year next following Project
Completion; and twenty percent abatement for the fifth Tax Year next following Project
Completion. With respect to a Project under$10,000,000, the period of abatement is seven years;
limited, however, to no more than five Tax Years next following Project Completion.
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. The term"Tax Year' is defined as a calendar year.
D. Prior to beginning the actual construction work on 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 of the Project clearly
defining and delineating the work to perform; (b) a statement agreeing to expend a designated
amount ("Project Cost") for the Project; (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
2
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 and conditions required by the Governmental Entity.
E. Should the Governmental Entity agree 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 of the 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
3
Period; or
(c) Is timely completed at the Minimum Cost, is operational within six
months next following the end of the Construction Period, but its
operations are discontinued for a continuous period of twelve
months, then the Contract shall terminate with respect to the
Project and so shall the abatement of Taxes 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 of the 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 of the Real Property Owner, and in
accordance with its safety standards.
(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
4
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
industrial 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 that"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 industrial realty improvements of the Real Property Owner located
within that taxing entity. If on January 1 st of any Tax Year all of the legally determined realty
improvements owned by the Real Property Owner within the jurisdiction of the 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 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
5
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
effected 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, and with postage prepaid, shall be the time and date of
such notice to the Real Property Owner.
F. The Governmental 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.
6
City of Beaumont, Texas
UP. -MEMORANDUM A 1
January 15, 9997
TO: Beverly Hodges, Finance Officer
FROM: Bob Pearce, Business Development Specialist
SUBJECT. Proposed Enterprise Zone Application
The City of Beaumont's enterprise zone expired September 1, 1996. An enterprise zone is an area
designated by the Texas Department of Commerce (TDOC) that offers a combination of state and
local economic incentives in order to promote economic development, provide employment
opportunities, and encourage new investment in economically distressed areas. Staff has identified
an area for enterprise zone designation by TDOC (please see attached map).
State incentives may include:
• sales and use tax refund on machinery and equipment purchases
• franchise tax refund
• priority status for other state programs designed to assist growth industries
Local incentives may include:
• ad valorem property tax abatements
• local sales tax refunds on machinery and equipment purchases
• financing assistance
Attached please find a listing of all local incentives which may be offered.
An area must meet the following distress thresholds mandated by TDOC to be eligible for zone
designation:
• unemployment rate at least one and one-half times the state rate (state rate currently 6.0%)
• below poverty level income on the part of at least 20% of zone residents
The zone proposed by staff meets the criteria by virtue of the following statistics:
• unemployment rate is 12.3%, over two times the state rate
• 29.2% of the zone's 7,668 residents below poverty level income
The proposed zone should achieve an expanded level of new development over the previous zone
as most of the property within the zone is currently zoned for industrial and manufacturing uses.
Additionally, the entire zone has primary access to all modes of product transportation: rail, water,
and interstate highway.
The application process for state designation of an enterprise zone is as follows:
• public hearing held by joint applicants (City and Jefferson County), discussing incentives to
be offered and inviting residents' comments
• passage of ordinance by joint applicants nominating the proposed zone for state designation
• formal application prepared by staff submitted to TDOC for consideration (state decision
typically takes 30-60 days)
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ENTERPRISE ZONE
AREA IN CITY OF BEAUMONT 0
AREA IN JEFFERSON COUNTY Q
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Span of Cardinal Drive between MLK Parkway ETJ w
and Fanned Road is to be used only as a ETd
connector of the two primary zone areas, and
will not offer zone incentives.
Enterprise Zone Incentives
• City Tax Abatement-Abatement of city's portion of ad valorem property taxes based
upon capital expenditure of a qualified business.
• Jefferson County Tax Abatement- Same as above but for county's portion of taxes.
• City Sales and Use Tax Abatement- Refund of city's sales and use tax on local
purchases of machinery, equipment and building materials by a qualified business.
• Jefferson County Sales and Use Tax Abatement- Same as above but for county.
• Historical Tax Abatement- "Freezes" assessed value for ad valorem taxes for ten years
on historically significant sites, as determined by the Landmark Commission.
• Tax Increment Financing - Establishment of reinvestment zones which use new property
tax revenue generated by private development to finance public improvements within the
zone (streets, parking, open space, utilities, etc.).
• Special Assessment Districts -Additional tax levies requested by property owners in
commercial districts to provide for common public works improvements.
• Revolving Loan Fund - Provides below-market rate financing for new or expanding
businesses in the zone.
• HUD Section 108 Loan Guarantee- City guarantee of HUD financing for public
improvements and land acquisition in support of job-creating qualified businesses.
• Tax Exempt Revenue Bonds - Council may approve issuance of tax exempt revenue
bonds by developers of commercial, industrial, medical, or housing related projects to
assist in fixed asset and start-up financing for qualified businesses.
• Downtown Revitalization Loan Program - Build, Inc. loans to qualified businesses for
revitalization of structures in the central business district.
• EDA Public Works Grants- City will apply for grants from the Economic Development
Administration to provide capital for improvements needed to support new,job-creating
private development in the zone.
• Improvement of Bus Services- City will consider reduced or free bus transportation to
qualified business employees working in the zone.
• Repair, Vacation, Demolition of Substandard Structures-City will aggressively enforce
repair, vacation, or demolition of substandard structures within the zone.
• Enterprise Zone Ombudsman - City and county officials will appoint an ombudsman as
the contact person for potential qualifying businesses desiring to locate in the zone.
• Public Works Improvements - Public works improvements which will aid in maintaining an
orderly pattern of growth for economic development projects within the zone.
• Green Belt Areas - City will consider developing green belt areas for businesses that
donate land.
• Lease or Sale of Public Land at Reduced Cost- City will pursue the attainment of public
land resources in order to facilitate economic development through below-market sale or
lease of available land to qualified businesses.
• Job Training - City will apply to state Smart Jobs Fund for training employees of qualified
businesses in the zone.
• Reduced Water and Sewer Connection Fees - City will consider discounting water and
sewer connection fees for qualified businesses locating within the zone.
• Waiver of Performance Bond -The city will ease its performance bond requirements for
public works contracts in the zone (streets, sidewalks, drainage, curb and gutter) to the
extent allowed by Texas law.
• Enterprise Zone Signage Program - City will design and erect signs identifying the zone,
which will increase the public's awareness of it, ideally increasing the likelihood of a
potential business locating within the zone.
• Listing Service of Abandoned/In-arrears Tax Properties - A listing of abandoned and in-
arrears tax properties in the zone for distribution to businesses considering location in the
zone.
• Day Care Tax Incentives and Lease Discounts-The city will consider leasing public
property to qualified zone businesses desiring to establish day-care services for its
employees.
• Small Business Development Center- SBDC at John Gray Institute will provide technical
assistance to those interested in forming or expanding small businesses in the zone.
• Foreign Trade Zone- Foreign Trade Zone of Southeast Texas allows qualified
businesses to: import, assemble and export goods duty-free; collect rebates of excise
taxes on goods for export; and avoid inventory taxes on goods held.
• Port of Beaumont Incentives - Reduced wharfage rates, land lease rates, and
transportation costs for qualified businesses locating within Port property.
• Minority Business Enterprise Program-City will provide enhanced opportunities for
minority and woman-owned businesses to bid for construction contracts and professional
services agreements.