Additional Economic Incentives within the City
A. Designation of Enterprise Zone.
The City has nominated an area of the City for designation as an enterprise zone by the State of Texas, acting through its Department of Commerce, under Tex. Rev. Civ. Stat. Ann. art. 5190.7 (the Texas Enterprise Zone Act). Pending approval of the area as an enterprise zone by the State, the City will consider granting several types of economic incentives with the enterprise zone.
1. Sales and use tax refunds.
a. Minimum qualifications. To encourage development of the Enterprise Zone, the City will consider granting sales and use tax rebates to businesses within the Enterprise Zone which:
(1) meet the definition of "qualified businesses" for purposes of Section 3(a)(11) of the Enterprise Zone Act;
(2) meet the qualifications for, and receive designation by the State as an enterprise project as an enterprise project as provided for in Section 10 of the Enterprise Zone Act.
b. Eligible taxes. The City may agree to a refund of its sales and use taxes paid by qualified business designated as a enterprise project on the purchase, lease, or rental of equipment or machinery for use in an enterprise zone or on the purchase of material for use in remodeling, rehabilitating, or constructing a structure in the Enterprise Zone.
c. Agreement required. The City will, by development agreement, consider refunding up to one-half (1/2) of the eligible sales and use tax paid by a qualified business and enterprise project for a period of up to three (3) years.
d. Documentation required. A qualified business and enterprise project entitled to a refund of sales and use tax under this Section by agreement shall pay the entire amount of State and local sales and use taxes at the time of purchase. A qualified business and enterprise project entitled to a refund of sales and use tax by agreement may request a refund once each year in writing. A qualified business and enterprise project entitled to a refund of sales and use tax by agreement must provide documentation necessary to support a refund claim in a form prescribed by the City's Director of Finance.
2. Waiver of permit fees.
By resolution, the City Council may adopt a policy to waive certain building, permit, license or development fees to qualified businesses which have been designated as enterprise projects within the Enterprise Zone.
B. Other economic incentives within the City.
1. Pursuant to authority delegated by the Legislature to cities under Chapter 380 of the Local Government Code, and as authorized by Article 3, Section 52-a of the Texas Constitution, the City will consider making loans or grants of public funds or property, or the selling or leasing City property at or below the fair market value of said property, to promote State or local economic development and to stimulate business and commercial activity within the City.
2. Upon application, the City may consider one or more of the following economic tools to encourage economic development:
a) The City may purchase tracts of land in the City to encourage economic development if it determines that assembly of smaller tracts into larger tracts will promote the sale or development of property over the long term. The City may also purchase land to sell or lease to a qualified business in the City, if it determines that a qualified business meets the minimum requirements for additional incentives set out below
(b) As further authorized by Tex. Rev. Civ. Stat. Ann. art. 5190.7 § 20(b), the City may sell or lease City-owned property to private developers, if the City Council determines that the property is not needed for any other public purpose, and that sale of the property to a private developer will result in capital improvements or the creation of new jobs within the City. The City will generally sell or lease public property at its fair market value, but will consider making a one-time grant to an applicant, or selling or leasing property at less than fair market value, according to the following formula:
| Additional Incentives within the City |
Value of grant, or value of
reduction in lease payments
or sale price |
To qualify for additional incentive, a qualified business must
agree to the following minimum investment in both
improvements to real property (new construction or
expansion of existing facility ) and the creation of new jobs |
| Not to exceed $150,000 |
Not less than $7.5 million |
Not less than 125 new jobs |
| Not to exceed $300,000 |
Not less than $15 million |
Not less than 250 new jobs |
| Not to exceed $450,000 |
Not less than $22.5 million |
Not less than 375 new jobs |
| Not to exceed $600,000 |
Not less than $28 million |
Not less than 500 new jobs |
Incentives under Chapter 380 of the Local Government Code where the investment and number of jobs exceed the chart above will be individually negotiated.
C. Additional economic incentives in Downtown Development Area.
1. Pursuant to authority delegated by the Legislature to cities under Chapter 380 of the Local Government Code, and as authorized by Article 3, Section 52-a of the Texas Constitution, the City will consider making loans or grants of public funds or property, or the selling or leasing City property at or below the fair market value of said property, to promote State or local economic development and to stimulate business and commercial activity in the Downtown Development Area (as shown on Exhibit "A").
2. Upon application, the City of Temple will consider one or more of the following economic tools to encourage economic development in the Downtown Development Area:
(a) The City may purchase tracts of land in the Downtown Development Area to encourage economic development if it determines that assembly of smaller tracts into larger tracts will promote the sale or development of property over the long term. The City may also purchase land to sell or lease to a qualified business in the Downtown Development Area, if it determines that a qualified business meets the minimum requirements for additional incentives set out below.
(b) As further authorized by Tex. Rev. Civ. Stat. Ann. art. 5190.7 § 20(b), the City may sell or lease City-owned property to private developers, if the City Council determines that the property is not needed for any other public purpose, and that sale of the property to a private developer will result in capital improvements or the creation of new jobs in the Downtown Development Area. The City will generally sell or lease public property at its fair market value, but will consider making a one-time grant to an applicant, or selling or leasing property at less than fair market value, according to the following formula:
Additional Incentives in the Downtown Development Area
|
Value of grant, or value of
reduction in lease payments
or sale price |
To qualify for additional incentive, a qualified business must
agree to the following minimum investment in either
improvements to real property (new construction or
expansion of existing facility ) or the creation of new jobs
(25% of the holders of which must be residents of zone or
economically disadvantaged). |
| Not to exceed $6,000 |
Not less than $70,000 |
Not less than 3 new jobs |
| Not to exceed $8,000 |
Not less than $100,000 |
Not less than 5 new jobs |
| Not to exceed $10,000 |
Not less than $175,000 |
Not less than 10 new jobs |
| Not to exceed $15,000 |
Not less than $225,000 |
Not less than 15 new jobs |
| Not to exceed $18,000 |
Not less than $300,000 |
Not less than 20 new jobs |
3. In order for a proposal to be considered for the Additional Incentives under this subsection, an applicant is required to submit a Business Plan detailing sufficient information to evaluate the development and the opportunities for success. A development agreement will provide clauses that insure the return of monetary or real incentives granted for a project in the event that the project is not undertaken within a specified time.
Part 2: If any provision of this ordinance or the application of any provision to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are declared to be severable.
Part 3: This ordinance shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Temple, Texas, and it is accordingly so ordained.
Part 4: It is hereby officially found and determined that the meeting at which this ordinance is passed was open to the public as required and that public notice of the time, place, and purpose of said meeting was given as required by the Open Meetings Act.
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