HomeMy WebLinkAboutORD 08-015 ORDINANCE NO. 08-015
ENTITLED AN ORDINANCE DESIGNATING AREAS OF THE
CITY OF BEAUMONT AS NEIGHBORHOOD EMPOWERMENT
ZONES #1 AND #2 PURSUANT TO THE TEXAS
NEIGHBORHOOD EMPOWERMENT ZONE ACT (TEXAS LOCAL
GOVERNMENT CODE, CHAPTER 378); PROVIDING TAX
INCENTIVES; ADOPTING TAX ABATEMENT GUIDELINES AND
CRITERIA; AND DESIGNATING A LIAISON TO ACT ON ALL
MATTERS PERTAINING TO THE EMPOWERMENT ZONE.
WHEREAS, the City of Beaumont endeavors to create the proper
economic and social environment to induce the investment of private resources
in productive business and residential enterprises located in areas of the City;
and
WHEREAS, to further this purpose, it is in the best interest of the City to
designate such areas as Neighborhood Empowerment Zones #1 and #2
pursuant to the Texas Local Government Code, Chapter 378; and
WHEREAS, the Council finds and determines that the creation of the
empowerment zones would promote the creation of affordable housing, including
manufactured housing, increase economic development, increase the quality of
social services, education, or public safety provided to the residents in the zones,
or the rehabilitation of affordable housing in the zones; and
WHEREAS, the City Council finds and determines that the creation of the
zones satisfies the requirements of the Texas Redevelopment and Tax
Abatement Act, specifically Tax Code Section 312.202;
NOW, THEREFORE, BE IT ORDAINED BY
THE CITY COUNCIL OF THE CITY OF BEAUMONT:
Section 1.
That the statements and findings set out in the preamble to this ordinance are
hereby, in all things, approved, determined, and adopted.
Section 2.
That the City Council hereby designates the areas set forth in Exhibit A,
attached hereto and incorporated herein for all purposes, as Neighborhood
Empowerment Zones #1 and #2 (herein referred to as the "zones").
Section 3.
That the City Council finds that the zones meet the qualification of the
Texas Local Government Code, Chapter 378.
Section 4.
That the City Council finds that the creation of the zones benefits and is
for the public purpose of increasing the public health, safety, and welfare of the
persons in the City of Beaumont.
Section 5.
That the guidelines and criteria governing tax abatement agreements
attached hereto as Exhibit "B" are hereby adopted. By such action the City of
Beaumont elects to become eligible to participate in tax abatement.
Section 6.
That the City Council directs and designates the City Manager as the
City's authorized representative, to act in all matters pertaining to the designation
of the areas described herein as Neighborhood Empowerment Zones #1 and #2.
Section 7.
That this ordinance shall be effective from and after its passage as
provided by law.
Section 8.
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 9.
That all ordinance or parts of ordinance in conflict herewith are repealed to
the extent of the conflict only.
PASSED BY THE CITY COUNCIL of the City of Beaumont on this the
12th day of February, 2008.
Mayor Becky Ames -
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Boundary Description
for
Ward IV Empowerment Zones
Zone One
STARTING from a Point of Beginning(POB)at the intersection of the east right-of-way line of IH-
10 and the south right-of-way line of the BNSF railroad and going easterly along said railroad right-
o'-way to 11' Street and continuing until reaching the r astern right-of-way he of Fourth Street;
hence south along said eastern right-of-way line of Fourth Street until reaching the southern right-of-
way line of Fannin Street; hence westwardly along said southern right-of-way line of Fannin Street
until reaching the east right-of-way line of IH-10; hence northerly along said east right-of-way line
of IH-10 until reaching the Point of Beginning..
Zone Two
STARTING from a Point of Beginning(POB)at the intersection of the east right-of-way line of the
BNSF railroad right-of-way and the centerline of Washington Boulevard and going in a northeasterly
direction along said railroad right-of-way until reaching the centerline ofdrainage canal 116 belonging
to Drainage District Six; hence turning and extending easterly along the centerline of said drainage
canal 116 until reaching the western right-of-way line of 7' Street; hence northeasterly across 7'
Street to a point on the east right-of-way line of 71'Street at the northern right-of-way line of Terrell
Ave.; hence easterly along said right-of-way line of Terrell Ave. to 4`s Street and continuing on the
same course until reaching the eastern right-of-way line of San Jacinto Street;hence south along said
eastern right-of-way line of San Jacinto Street to the northern right-of-way line of Rockwell Street;
hence easterly along said northern right-of-way line of Rockwell Street until reaching the eastern
right-of-way line of Golaid Street;hence south along the eastern right-of-way line of Golaid Street
until reaching the south right-of-way line of Euclid Street;hence westerly along the south right-of-
way line of Euclid Street until reaching the eastern right-of-way line of 7'Street;hence south along
said eastern right-of-way line of 7* Street until reaching the northern right-of-way line of Cardinal
Drive (U.S.69) and finally the centerline of Cardinal Drive; hence westerly along the centerline of
Cardinal Drive until reaching the eastern right-of-way line ofthe BNSF railroad right-of-way and then
turning and extending northerly along said eastern right-of-way line of the BNSF railroad until
reaching the Point of Beginning(POB).
EXHIBIT "A"
City of Beaumont
Neighborhood Empowerment Zone
Incentive Policy
Program Goals:
It is the City of Beaumont's goal to promote development within its Neighborhood
Empowerment Zones in an effort to improve the local economy and enhance the quality
of life for its citizens. Insofar as these goals are served by enhancing the value of the local
tax base and increasing economic opportunities, the City of Beaumont will give
consideration to providing the following incentives for development within
Neighborhood Empowerment Zones.
Definitions:
A. Abatement: full or partial exemption for ad valorem taxes of eligible properties in a
reinvestment zone designated as such for economic development purposes.
B. Agreement: a contractual agreement between a property owner and a taxing
jurisdiction for the purpose of a tax abatement.
C. Base Year Value: the assessed value of either the applicant's real property and
improvements located in a designated reinvestment zone on January 1 of the year prior to
the execution of the agreement plus the agreed upon value of any property improvements
made after January 1 of that year but before the execution of the agreement, and/or the
assessed value of any tangible personal property located on the owner's real property on
January 1 of the year prior to the abatement period covered by the agreement.
D. Facility: property improvements completed or in the process of construction which
together comprise an integral whole.
E. Real Property: area of land defined by legal description as being owned by the person
applying for a tax abatement, including any improvements thereto, which is to be
improved and valued for property tax purposes, and which is to be included in the
Neighborhood Empowerment Zone.
F. Neighborhood Empowerment Zone: is an area designated as such for the purpose of
providing economic incentives, including a tax abatement, as authorized by the City of
Beaumont in accordance with Texas Local Government Code Annotated Section 378 as
amended.
EXHIBIT "B"
Program Policy:
It is the policy of the City of Beaumont that consideration will be provided in accordance
with the guidelines, criteria and procedures outlined in this document. This policy applies
to the owners of real property. Project consideration will include the potential impact of
the reinvestment project on the immediate and surrounding area.
A. Authorized Facility : Neighborhood Empowerment Zone Incentives may be granted
within a Neighborhood Empowerment Zone for new construction or renovation of single-
family uses for investments of$50,000 or greater and may be granted for all other uses
for investment of$75,000 or greater.
B. Eligible Property : Neighborhood Empowerment Zone Incentives may be granted for
new construction or renovation of owner-occupied single-family homes, office, retail,
restaurant and multi-family residential facilities within a Neighborhood Empowerment
Zone, designated by the City Council of the City of Beaumont, Texas.
C. No incentives shall be granted for development resulting from the relocation of an
eligible facility from one area of the city to within the Neighborhood Empowerment
Zone.
Procedural Guidelines:
Any person, partnership, organization, corporation or other entity desiring that the City of
Beaumont consider providing Neighborhood Empowerment Zone incentives shall be
required to comply with the following procedural guidelines. No representations made
herein considered binding unless and until approved by the City of Beaumont City
Council.
Preliminary Application:
Applicants shall submit a completed"Application for Neighborhood Empowerment Zone
Development Incentives" form for consideration of incentives to the Community
Development Department of the City of Beaumont, 801 Main Street, Beaumont, Texas
77701.
Consideration of the Application:
A. The City Manager will consider requests for incentives in accordance with these
policies, pursuant to Chapter 378 of the Texas Local Government Code. Additional
information may be requested as needed.
B. The City Council may enter into an agreement that outlines the terms and conditions
between the City and the applicant, and governs the provision of the incentives.
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Inspection of the Project:
During the term of such agreement, the City of Beaumont will have the right to inspect
the project facility during regular business hours to ensure compliance with the
agreement and accuracy of the owner certification.
Recapture:
If a project is not completed as specified, or if the terms of the incentive agreement are
not met,the City has the right to cancel or amend the incentive agreement and all
previously waived fees and abated taxes shall become due to the City and liens may be
reattached.
Effect of Sale, assignment or lease of property:
No incentive rights may be sold or assigned without the approval of the City Council.
Any sale, assignment or lease of the property may result in execution of the recapture
provision, as outlined above.
Types of Incentives Available:
Building Fee Waivers
The Building Construction Fee Waiver Program affords property owners an exemption
from planning and building fees associated with new construction or renovation and
occupancy of eligible facilities within the target area.
Expedited Permit Reviews:
In order to facilitate redevelopment within the Neighborhood Empowerment Zones, the
Community Development Department is committed to assisting applicants through the
planning and permit review process as quickly as possible.
Lien Waivers
In order to render properties with Neighborhood Empowerment Zones more marketable,
the Lien Waiver Program affords property owners a release of liens attached to properties
as the result of demolitions or expenditures associated with cutting high grass. Release of
such liens would only be allowed in conjunction with new construction or renovation of
eligible facilities within the target area.
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Construction Tax Abatement
The Construction Tax Abatement Program is an economic development tool designed to
provide incentives for the new construction or renovation of single-family homes, office,
retail, restaurant and multi-family residential facilities within a Neighborhood
Empowerment Zone. The Construction Tax Abatement Program is intended to contribute
to area development by attracting additional capital and human investment to the area as
well as additional residents to support economic development activities within the area.
Value of Abatements: authorized facilities may be granted an abatement on all or a
portion of the increased taxable value of eligible property over the base year value for a
period not to exceed three(3)years.
Tax Abatement Program Guidelines:
The eligibility requirements are as follows:
Investment Abatement Schedule
$50,000&up for residential uses and $75,000&up for all other uses 1000/0 la Year
$50,000 &up for residential uses and $75,000&up for all other uses 100% 2"d Year
$50,000& up for residential uses and $75,000&up for all other uses 100% 3`d Year
Abatement Program Considerations:
A. The final valuation determined by the Jefferson County Appraisal District will be used
to determine the actual yearly tax abatement exemption.
B. The tax abatement shall be granted only to the owner of the property.
C. No tax abatement exemption shall be effective until the applicant has met all of the
eligibility requirements contained in the guidelines and policies, state law, and City of
Beaumont codes.
D. There shall be no retroactive tax abatement exemptions—all tax abatement
exemptions become effective only on or after the date the City Council approves the tax
abatement agreement.
E. The applicant shall agree to hold the City of Beaumont, its agents, employees and
public officials harmless and pay all attorneys' fees that are generated by any dispute
regarding the tax abatement agreement.
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F. Personal and or real property identified before the period covered by the abatement
agreement will not be eligible for abatement.
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