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HomeMy WebLinkAboutORD 15-055ORDINANCE NO. 15-055 ENTITLED AN ORDINANCE DESIGNATING AREAS OF THE CITY OF BEAUMONT AS NEIGHBORHOOD EMPOWERMENT ZONE #6 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 pursuant to the Texas Local Government Code, Chapter 378; and, WHEREAS, the Council finds and determines that the creation of the empowerment zone #6 in the Lamar University neighborhood 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 zone, or the rehabilitation of affordable housing in the zone; and, WHEREAS, the City Council finds and determines that the creation of the zone 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 Zone #6 (herein referred to as the "zone") Car,tinn q That the City Council finds that the zone meets the qualification of the Texas Local Government Code, Chapter 378. Section 4. That the City Council finds that the creation of the zone benefits and is for the public purpose of increasing the public health, safety, and welfare of the persons in the City of Beaumont. Corrfinn r% 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 Zone #6. law. RPrfinn 7 That this ordinance shall be effective from and after its passage as provided by RPrfinn R 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 ordinances or parts of ordinances 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 8th day of December, 2015. U w EMPOWERMENT ZONE NUMBER SIX The City of Beaumont Empowerment Zone Number Six. Said area being more fully described below as follows: STARTING at the Point of Beginning, at the southwest corner of the described area, being the intersection of the centerline of Cardinal Drive (aka State Highway 69) and the centerline of S. Kenneth Avenue; Then with the centerline of S. Kenneth Avenue approximately 2120 ft. northwest to the intersection of the centerline of S. Kenneth Avenue and the centerline of Florida Avenue; Then with the centerline of Florida Avenue approximately 235 ft. west to the intersection of the centerline of Florida Avenue and the centerline of Kenneth Avenue; Then with the centerline of Kenneth Avenue approximately 3020 ft north to the intersection of the centerline of Kenneth Avenue and the centerline of W. Woodrow Avenue; Then with the centerline of W. Woodrow Avenue approximately 90 ft east to the intersection of the centerline of W. Woodrow Avenue and the centerline of Kenneth Avenue; Then with the centerline of Kenneth Avenue approximately 3150 ft north to the intersection of the centerline of Kenneth Avenue and the centerline of Elgie Street; Then with the centerline of Elgie Street approximately 1080 ft east to the intersection of the centerline of Elgie Street and the centerline of Highland Avenue, also being the intersection of Highland Avenue and E. Elgie Street; Then with the centerline of E. Elgie Street approximately 1695 ft east to the intersection of the centerline of E. Elgie Avenue and the centerline of S. Martin Luther King Parkway; Then with the centerline of S. Martin Luther King Parkway approximately 1300 ft southeast to the intersection of the centerline of S. Martin Luther King Parkway and the centerline of Adams Street; Then in a northeast direction along the northwest property line of the Southeast Texas Food Bank, described as Plat B-16, Tract 188-X, JW bullock Survey, Abstract 7, to the southwest right- of-way line of the Kansas City Southern Railroad; Then with the southwest right-of-way line of the Kansas City Southern Railroad approximately 4910 ft southeast to the northwest right-of-way line of the Union Pacific Railroad; EXHIBIT "A" Then with the northwest right-of-way line of the Union Pacific Railroad approximately 1274 ft to the centerline of S. Martin Luther King Parkway and centerline of the Union Pacific Railroad; Then in a southeast direction along the centerline of S. Martin Luther King Parkway approximately 1934 ft to the intersection of S. Martin Luther King Parkway and the north right- of-way line of East Cardinal Drive (aka State Highway 69). Then meandering along the north right-of-way line of E. Cardinal Drive (aka State Highway 69) and W. Cardinal Drive approximately 7415 ft west to the intersection of the centerline of W. Cardinal Drive (aka State Highway 69) and the centerline of S. Kenneth Avenue, arriving at the Point of Beginning. Lamar Neighborhood Empowerment Zone (#6) Rice Wire orroeraeisr BEAUMON* T• E• X- A- 8 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. Incremental Value: the amount of assessed value of the project that is in addition to the Base Year Value of applicant's real property at their prior location. 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. G. 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 EXHIBIT "B" improved and valued for property tax purposes, and which is to be- included in the Neighborhood Empowerment Zone. H. Substantial Investment: a project deemed as an eligible facility under this policy, that exceeds $5,000,000 in capital investment. 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, hotel and meeting facilities, 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, excepting projects considered "Substantial Investments," as defined herein. 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. 2 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. 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. 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 a municipal tax 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, except as outlined below. Tax Abatement Program Guidelines: The eligibility requirements are as follows: Investment Municipal Tax Abatement Schedule $50,000 & up for residential uses and 100%; or 100% of the incremental value for Substantial I't Year I $75,000 & up for all other uses Investments relocating within the City_ $50,000 & up for residential uses and 100%; or 100% of the incremental value for Substantial na $75,000 & up for all other uses Investments relocating within the City_ $50,000 & up for residential uses and 100%; or 100% of the incremental value for Substantial �d $75,000 & up for all other uses Investments relocating within the City. 3 Year $5,000,000 or more for any eligible 100% for new investments and the incremental value forF4Year use Substantial Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for 5�' Year use Substantial Investments relocating within the City. ($5,000,000 or more for any eligible 100% for new investments and the incremental value for6�' Year use Substantial Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for to use Substantial Investments relocating within the City. 17 Year 4 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. F. Personal and or real property identified before the period covered by the abatement agreement will not be eligible for abatement.