HomeMy WebLinkAbout01-30-1996
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CITY COUNCIL AGENDA PACKET
January 30, 1996
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AGENDA
CITY OF DENTON CITY COUNCIL
January 30, 1996
Joint Session of the City of Denton City Council and the Denton
Independent School District Board of Trustees on Tuesday, January
30, 1996 at 5:30 p.m. in the Assembly Room DISD Central Services,
1307 N. Locust Street, Denton, Texas at which the following items
will be considered:
1. Receive a report and hold a discussion regarding tax
abatement.
A. Current Policy
B. Process
C. Policy Comparisons
2. Receive a report and hold a discussion regarding the economic
development environment.
A. PHH Fantus Study
B. Incentive "Tool Box"
3. Receive a report and hold a discussion regarding tax increment
financing.
4. Receive a report and hold a discussion regarding future
meetings.
C E R T I F I C A T E
I certify that the above notice of greeting was posted on the
bulletin board at the City Hall of the City of Denton, Texas, on
the day of , 1996 at o~clock (a.m.)
(P.m.) -
CITY SECRETARY
NOTE: THE ASSEMBLY ROOM OF THE DISD CENTRAL SERVICES IS
ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH
DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE
INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT
LEA6T 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING.
PLEASE CALL THE CITY SECRETARY'S OFFICE AT 566-8309 OR
USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY
CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE
INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S
OFFICE.
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OVERVIEW OF CURRENT J'~~----- •
DENTON POLICY FOR
TAX ABATEMENT
1. JOINT POLICY: The current policy provides for participation by the City of Denton,
Denton Independent School District and Denton County.
Of the other metroplex city policies reviewed, only Plano and McKinney have similar
joint policies.
2. QUALIFIED APPLICANTS: The policy provides for abatement for basic industry,
distribution centers and corporate headquarters.
Many other polices include office, commercial, retail and residential projects.
3. APPLICATION PROCESS: The policy provides that each application be submitted to
the City, reviewed by the Joint Tax Abatement Committee, and then taken to each
governing board for approval,
a) The applicant is required to provide ten years of projected:
value (building, equipment, personal property, and inventory)
ad valorem tax revenues for each taxing jurisdiction
sales and sales tax revenues
employment
payroll
training requirements
utility requirements
housing needs
increase in students
operating budget
b) The applicant must also provide:
financial statements for the past five years
records of openings, closings, relocations and mergers for the past 15 years
record of training for handicapped and chronically unemployed
Most of the cities surveyed do not require such detailed information, Most require
project-specific information and a profile of the firm.
c) if the project is not located within a reinvestment zone, the policy, provides that the
City may establish a reinvestment zone for the project.
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Agenda
ON daio OPO trrerrtPeliey
_Page 2
4. CONFIDENTIALITY: Our current policy requires the applicant to submit the above
information to be included in the formal application. As such, this information becontes
' subject to the Open Records Act. We have been informed that privately held companies
are very reluctant to publicly disclose this information.
Other cities have addressed the confidentiality issue by reviewing (but not retaining) the
financial records. In this way, the records are not subject to the Open Records Act.
5. VALUE OF INCENTIVE:
a) Threshold: $5 Million for new industry
$4 Million for existing industry
b) Length of Abatement: Two to ten years, depending upon amount of new valuation.
As the amount of new valuation increases, the number of years for abatement
increases. ($5 Million = 2 years and $100 Million _ 10 years)
c) Additional incentive: The policy provides for additional incentives in the way of tax
increment financing (TIF) for projects which extend infrastructure (roads and utilities)
that open new development sites.
Note: A TIF could be offered in place of an abatement or in conjunction with
abatement. However, the total combined percent of abatement and TIF cannot exceed
100%. (Example: 25% Abatement plus 75% TIF. The abatement would provide a
tax incentive to the company, and the TIF would apply towards the cost to extend the
infrastructure,)
US 11) 13a8 1,21 96
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DENTON POLICY FOR
Amh
TAX ABATEMENT
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1. GENERAL PURPOSE AND OBJECTIVES
The City of Denton (City), the Denton Independent School District (DISD) and
Denton County are committed to the promotion of high quality development in all parts
of the city and to an ongoing improvement in the quality of life for its citizens. Insofar
as these objectives are generally served by the enhancement and expansion of the local
economy, the City of Denton, DISD, and Denton County, will on a case-by-case basis,
give consideration to providing tax abatement as a stimulation for economic development
in Denton. It is the policy of the City and DISD that said consideration will be provided
in accordance with the procedures and criteria outlined lin this document. Nothing
herein shall imply or suggest that the City, DISD or Denton County are under any
obligation to provide tax abatement to any applicant. All applicants shall be considered
on a case-by-case basis.
Tax inducements, as described in this policy, will be considered for new,
expanding and modernizing basic Industries, corporate office headquarters and
distribution centers.
H. CRITERIA
Any request for a tax abatement shall be reviewed by the Joint Committee on Tax
Abatement, said Committee being comprised of two elected officials from each of the
taxing entities involved. One additional staff person from each jurisdiction shall be
appointed to serve as a nonvoting, ex officio member of the committee.
The Joint Committee on Tax Abatement ser, es as a recommending body to the taxing
entities regarding whether economic development incentives should be offered in each
individual case. Their recommendation shall be based upon an evaluation of the following
criteria which each applicant will be requested to address In narrative format:
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Nist;ry and Philosophy of the firm:
a) Nature of products and geographic penetration.
b) Financial statements for past five years or life of firm whichever is
shorter.
c) Chronology of plant openings, closings, is relocations over past 15 years.
d) Record of mergers and financial restructuring during last five years.
e) Record of employment and training provided for handicapped and
chronically unemployed.
2. Project Specifications:
a) Provide plat of project including s11 roadways, !and use and zoning within
504 feet of site. Legal description of site is required.
b) Is the project a relocation or new facility to expand operations. If
relocation, give current location.
c) Project Investment in real and personal property at the above site for
each of the next ten years.
d) Project permanent employment for next ten years resulting from the new
investment. Indicate number of jobs that will be filled by people from
outside the metroplex. Include estimated average annual salary on new
jobs.
e) What is the total current payroll and the projected payroll when project
is completed.
f) Describe employment training requirements including provisions for
training handicapped and chronically unemployed if applicable.
g) Project utility (gas, electricity, water, etc.) usage for each of next ten
years.
h) Estimate the infrastructure (streets, sewer, water, etc.) requirements
necessary to operate the new facility.
1) Estimate the annual operating budget for next ten years.
J) Will the occupants of the project be owner or lessees? If lessees, are
occupancy commitments already existing?
k) Gi,re the name, address, and telephone number of contact person.
3. The community impact of the project:
a) Project the value of real and persenai property that will be added to the
tax rolls.
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b) Using current rates estimate the additional xe
generated by the project without considering any proposed abatement for
each of the affected taxing entities for each of the next ten years.
c) For each taxing entity indicate the amount of tax abatement requested for
each of next ten years.
d) Estimate the increase in Investment in other local businesses resulting
from the project for the next ten years.
e) Estimate the increased housing needs in the area resulting from the
project for ten years.
f) Estimate the increase in the tax rolls for each taxing entity for the next
ten years.
g) Estimate the infrastructure construction that would be required because
of the growth resulting Indirectly from the project.
h) Provide the specific detail of any businesses/residents that will be
displaced and assistance that will be available from the requesting entity.
i) Estimate the increase in students by grade level resulting from the
project including the multiplier effect (indirect growth) for the next ten
years. Show the increase for each impacted school district.
j) Provide description of any historically significant area included within
the project's area. If any, give detail of how the historically significant
area will be preserved.
k) Provide information of any detrimental effect on existing businesses,
recreational areas, and residential area.
1) Provide details of any benefit to an area of the community targeted for
revitalization /redevelopment.
M. VALUE OF INCENTIVES
The criteria outlined in Section II will be used by the Joint Committee on Tax
Abatement in determining whether or not it is in the best interests of the affected taxing
entities to recommend that tax abatement be offered to a particular facility. Specific
considerations will Include the degree to which the Individual project furthers the goals
and objectives of the community, as well as the relative Impact of the project. New,
expanding and modernizing businesses will be eligible for abatement if the minimum
threshold, as described below, is met.
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Em Once a determination has been made that a tax abat
value and term of the abatement will be determined by re bl
TABLE 1: Establishes maximum length of abatement according to assessed real
property value of Improvements and personal property.
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MAXIMUM MAXIMUM
VALUE OF STRUCTURE YEARS OF PERCENTAGE OF
AND PERSONAL PROPERTY ABATEMENT ABATEMENT
100 10 258
8o 9 258
65 8 258
50 7 258
35 6 25%
20 5 258
15 4 258
10 3 258
5 2 258
If an existing business is located within the boundaries of the participating
jurisdictions and decides to expand or relocate within such boundaries, the actual value
of the structure shall be multiplied by 1258 prior to utilizing Table 1. If the expanding
or relocating business is abandoning any property or improvements within the
jurisdictions, the value of this abandoned property shall be subtracted from the new
value figure prior to multiplying the value by 1258.
The tax abatement shall not apply to any portion of the lard value of the project.
Applicants agreeing to extend infrastructure Improvements (streets and utilities)
to improve other industrial sites which can be max keted by the Chamber of Commerce
Economic Development Director may be eligible for a greater tax benefit than those
described above by utlUzIng tax increment financing procedures. The offering of such
an inducement will be evaluated on a case-by-case basis dependent upon the applicant's
ability to make available improved industrial sites.
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Preliminary Application 1^ 3b~
IV. PROCEDURAL GUIDELINES
1 Any person, organization or corporation desiring that the City or DISD consider
providing tax abatement to encourage location or expansion of facilities within the limits
of the jurisdictions shall be required to comply with the following procedural guidelines.
Nothing within these guidelines shall imply or suggest that either the City, or
DISD, is under any obligation to provide tax abatement to any applicant.
A. Applicant shall complete the attached "Application for Tax Abatement."
B. Applicant shall address all criteria outlined in Section If above in narrative
form.
C. Applicant shall prepare a map showing the precise location of the property
and all roadways within 500 feet of the site.
D. If the property is described by metes and bounds, a complete legal
description shall be provided.
E. Applicant shall complete all forms and information detailed In Items A through
D above and submit them to the City Manager, City of Denton, 215 E.
McKinney, Denton, TX 76201.
ApplicatioReview Steps
F. All Information in the application package detailed above will be reviewed for
completeness and accuracy. Additional Information may be requested as
needed.
G. The application will be distributed to the appropriate City and DISD
departments for internal review and comments. Additional information may
be requested as needed.
H. Copies of the complete appHcation package and staff comments will be
provided to the Joint Committee on Tax Abatement.
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Consideration of the Application
I. The Joint Committee on Tax Abatement will consider the application at a
regular or called meeting(s). Additional information may be requested as
needed.
J. The recommendation of the Joint Committee on Tax Abatement will be
forwarded, with all relevant materials, to the chief administrative office of
each taxing entity.
K. The City Council of Denton may consider a resolution calling a public hearing
to consider establishment of a tax reinvestment zone.
L. The City Council of Denton may hold the public hearing and determine
whether the project is "feasible and pract Ical and would be of benefit to the
land to be included in the zone and municipality." Special consideration shall
be given to policies noted in the Denton Development Plan when designating
a tax reinvestment zone.
M. The City Council of Denton may consider adoption of an ordinance
designating the area described In the legal description of the proposed
project as a commercial/Industrial tax abatement zone.
N. The City Council may consider adoption of a resolution approving the terms
and conditions of a contract between the City and the applicant governing
the provision of the tax abatement and the commitments of the applicant.
Should the commitments subsequently not be satisfied, the tax abatement
shall be null and void, and all abated taxes shall be paid immediately to the
City of Denton and all other taxing jurisdictions participating in the tax
abatement agreement. Provisions to this effect shall be Incorporated Into the
agreement.
0. The governing bodies of the various taxing entities may consider ratification
of and participation in the tax abatement agreement between the City of
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Denton and the applicant.
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ft1nc Any tax abatement agreement will address various of
limited to, the following:
1. General description of the project;
2. Amount of the tax abatement and percent of value to be abated each year;
3. Method of calculating the value of the abatement;
4. Duration of the abatement, including commencement date and termination
date;
5. Legal description of the property;
e. Kind, number, location and timetable of planned improvements;
7. Specific terms and conditions to be met by applicant;
8. The proposed use of the facility and nature of construction;
9. Contractual obligations in the event of default, violatwn of terms or
conditions, delinquent taxes, recapture, administration and assignment.
Annual Evaluation
Upon completion of construction, the Joint Committee on Tax Abatement shall
annually evaluate each facility receiving abatement to insure compliance with the
agreement and report possible violations of the agreement to the taxing entities.
Transfer or Assignment
A contract for tax abatement may be transferred or assigned by the original
applicant to a new owner upon the approval of the various taxing jurisdictions after such
a recommendation is made by the Joint Committee on Tax Abatement.
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APPENDIX A
Definitions
A. "Abatement" means the full or partial exemption for ad valorem taxes of eligible
properties in a reinvestment zone designated as such for economic development
purposes.
B. "Agreement" means a contractual agreement between a property owner and a
taxing jurisdiction for the purpose of tax abatement.
C. "Basic industries" are defined in the Denton Development Plan as those which
produce goods or services at least 51% of which arc directed to serve perple
outside of the City of Denton and are listed in the Standard Industrial
Classification (SIC) of the Department of Commerce, excapt for groups 52-59
under retail trade.
D. "Expansion" means the addition of buildings, structures, fixed machirary, or
equipment for the purpose of increasing production capacity.
E. "Facility" means property improvements completed or in the process of
construction which together comprise an integral whole.
F. "Joint Committee on Tax Abatement" is a group of representatives from Denton
County, the City of Denton, and the Denton Independent School District
formed to study and evaluate any proposal regarding the offering of tax
abatements within the community. The Committee will consist of two elected
representatives from each governmental entity and one staff member from each
entity. The staff members shall serve as nonvoting, ex officio members.
G. "Modernization" means the replacement and upgrading of existing facilities
which increases the productive input or output, updates the technology, or
substantially lowers the unit cost of operation, and extends the economic life of
the facility. Modernization may result from the construction, alteration, or
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installation of buildings, structures, fixed machinery, or equipment. It shall
not be for the purpose of reconditioning, refurbishing, repairing, or
completion of deferred maintenance.
H. "New facility" means a property previously undeveloped which is placed into
service by means other than expansion or modernization.
1. "Reinvestment Zone" is an area designated as such for the purpose of tax
abatement as authorized by Subchapter B, Municipal Tax Abatement, Title 33
Local Taxation, Vernon's Texas Codes Annotated.
J. "Tax increment financing" is the use of some or all of increased property tax
revenue resulting from the redevelopment of an area to finance
develolment-related costs in that district. Tax In'rfiement financing divides
tax revenue from the area into two categories. Taxes on the predevelopment
value of the tax base (the tax increment base) are kept by each taxing body,
while some or all of the taxes from the increased value of property resulting
from redevelopment (the tax increment) are deposited by each jurisdiction in a
tax increment fund. Money In the tax increment fund is used to repay
TIF-backed bonds that are Issued to finance public Improvements in the
redevelopment area.
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APPLICATION FOR TAX ABATEMENT
1
I. Property Owner
'i Mailing Address
Telephone Number
2. Property Owner's Representative
Mailing Address
Telephone Number
3. Property Address
Property Legal Description
(Provide attachments if' by metes and bounds)
4. Located within: City of Denton
D.I.S.D
Denton County
5. Description of Project:
6. Date projected for occupancy of projectlinitlation of operations:
7. Narrative response to criteria questions In Section II attached.
7es_ No_
Comments :
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Agenda ?lo.
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Tax Abatement Guidelines and Criteria
Tarrant County
Dallas County
City of Allen
City of Arlington
City of ]Benbrook
City of Burleson
City of Carrollton
City of Cedar Hill
City of Cleburne
City of Coppell
City of Dallas
City of Denton
City of Euless
City of Farmers Branch
City of Fort Worth
City of Garland
City of Grand Prairie
City of Grapevine
City of Haltom City
City of Hurst
City of frying
City of Lancaster
City of Lewisville
City of Mansfield
City of McKinney
City of Mesquite
City of North Richland Hills
City of Plano
City of Richardson
City of The Colony
City of Weatherford
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TaeN 1. OeraUd comOadson of Tax A"Oreenl P04001
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Mnwv+rn Inveslmom AeouktA A nrmwn Joe Creation Ao4t W
JuFI%4#C On Ol
New Md.rury faislirq vNuauy Mow industry Etnlmq Idaaimww a0alm,enl Marwnuel Un01n Omar Ol
ledtrauy
rarranl Cowry 12.000.000 13.000.000 none wecd,ed none 4"01e4 100% 30 yaars
Oaeas Cownly ISA00.000 to 12,500.000 to 100 a 800 pda, $010400 601d 100%, detaww"V 10 Nan
130.000.000, 170,000,000. dope"" on at" pea, on typo W aoiect
depr+an0 an arw depw+dn0 an area dedendN on
nom
A1hn 15,000.000 15.000,000 none Swirled none wrcdnd 25 % 2 10 50 years,
dope"" «
mvasurem
AAnppn 110.000.000 06.000.000 none 504044 none aoec,44 100% 10 years
8akn spulmos No abnentent OMwd
Ee01erd No abatement 0041
benereek 13.000.000 13,000.000 80 80 100% 140 vows
8wlgon 11,000.000 1750.000 :0 10 60 10 yon, •.erwvtd
of 500% over
10 yeah P 1
CUMONn 15.000.000 16.000.000 none 10401,64 erene opeul,d 20 n 76%, dep*Wft on 3 to 10 Venn.
rrwstmuy doperadinpon
NvNIRNnt ,0
Cedar Md 1500.000 1500.000 lone ►oecded none IpoeiMd 20 ao 31 d*Owxl;rq M 2 to S yeah, depending
SNOWY VAA mouse", On prdoerev yalw
emolovanent. peyne and nuea w
Wool us rsvW%Al I
Coeburn! 11.000.000 11.000,000 20 26 2s 14 16%. deperad p« 2 to S Ners, dopsfoft
4" O 1
an investlnw ►,d 1
empbynMM MnOWyment
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MinirwrA invsasmem Rooyired !00 Gefeon Regrind
1h.nsdiclioa Poe" rWut4Y Fsislog Ma"Mum bbalfewM MgeAnWnt4pg, Od+t1 OA
New Indt,sary 1.101109 nd-l r
1
ConeY»Fe }w bbalf/Mnt arena
COppM 15.500.000 11,500,000 Acne WC-rrd soAe specif.ed 2S w 50%. deoledbp on 5 waft
inratnWA
11,000.000 w 10 to 500. 10 to 500. 10 to 100%. depeAdmO 5 to 10 yoafg MW*g'^i
Oggge $50,000,00 .
150.000.000. 150.000.000. awrarw on deoeAd++O on an bogtan on 1004.41A
aoew*a on depusdiA9 on loceuon dceton
7ocgl.on wcac en
OeAtOA $5.000.000 $4,000.000 roAd epecaled Aww soeat4d 25 % 2 to qem.
6dpw4m on
NWf1nIfM
Ossaa Ne eofate'~Ml oNaeO
(~1r1eM Mdf No Atl4 nM1 010owl
11.000.000 11.000.000 10 10 20 so S096, depenirq @A 10 pafs
(44U
Furnafs N+ndi 110.000.000. or 110.000.000, of nond specified none womw 30% 5 Vows
300% ilKfead A SO% dwngN iA m
propMlY vetYe yOpMtY ~otn
Howfr Mowed Oid rot rN UA turf. el l*4~4 eggs
Fat Worth sS00.000 to IS00.000 to Aond ►Wwod MOM eppeddd 100% kEl 110.000.000. 110.000.000.
depertdirtd on doper Am an ucabon IocelioA
65.000.000 er 11.000.000, a none spenMO •ede 600040 10 to 100%. deowwov X70% nuass N 50% irweae N on point trtt: ..A
veMe nNA 15,000.000 15.000.000 2S
G )S % rand hgmo '
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MNrnun in.estw`ant Paovira0 Mnwrru~ Jee C~6 ali011 IleawW
lw~tdietwn „
Nsw Indulvy Eafsunq magstry Naw nduury (miloAs Ma.inti,ar a0a4errarrt Maaim~in Lanpill OWar yr
lydu stry
Graonna 15.000.000 IS,000,000 e"W %"W*d r%a tpar+lb" 20 to 75%. Oap"4" an 3 to 10 years.
inwltmMa daputd-nQ 04
inrei tesent
Haltom City $2,000.000 11.000.000 ONN soecihd none apacil-ed SO % 10 vaira
Huts% $1,000,000 61,000,000 10 10
20 to 50% 10 wars cakularsd as
200 to $00%
OwI fan yetis
Ywp 600.000 /Qusra 800.000 sq we 1.000 1.000 2S to e0% d
Isar ZMIb'^9 in 6 t0 5 wars
b"Aa'b siu, ertyrpyreaep
Ofd oavrM
KMer NO sAStswant oMtrad
Lanessrw sIS0,000 6250.000 S 5 $00% 10 yeas
Lw04we1 66,000.000 12,000,000 trans W 04d nano leearred 30 % 10 wan
Msnalmw s i.000.000 61,000,000 1S !3 10 to 100%bpMd►6 SalIQ, OOP AV on
on lrrm&vw" MtRame~ 65.000,000 66,000.000 nary sob"" no" /Nelratd 23 % 2 to 10 yaMi.
dead"" on
J
nwNrnent f)
Meso~rfe •2.000.000 62,000,000 rona sOecrRed nory lyari/iy 100 !a 10 y+srl
110nA FkMMf Kb !3,000.000 11.300.000 10 10 100% 10 yore 1~~
11.000.00 11,000,000 Awe sweio" WA som%d I >r 10 ei 1.
p en
mom
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Mawmym Inrattmant Aaprvad M^rnvm Job clemon A~*d "
M
Jw4JKTen
Naw Industry ESiatina Moutisry Now vWYstry EsiI" malvnvm sbalsmant UtuaawnL40 gin Oirm
1ndt,atn ,D
A-cnafow 15,000,000 15.000.000 ron0 bpacd ad nern SpOCifed 2S % 2 10 1Q raafs. '
d*cmo.)" CA
~ lnwetwMt
Rov"" No abatlfnent eRS.gd
TM Colony (3.000.000 11.000,000 none spoofed n0na a0ocifrd 0p % 2 so 10 WWI,
d.0w4n0 00
"sg~t
%valau0a Me WMUnont offNad
woatwoid 1250.tiQ0 1750.000 10 10 20 to 10 d.p0nerp en 0 a t0 roa,s.
DOM 1ymm oaparWnp 00 Odnt
tyaWll
wtwa SanMmant Ne abatanwn effard
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Table 2
Comparison of abatement poliCieS
Sorted by Minimum Investment for New Industry
Maximum abaremenl and Perm i$ based on smallest allowed yrojecl
Min mum Minimupr. Max Max
New Existing New Exist Abate Term
Rank Cot Investment S) Investment (S) Jobs Jobs (411 (years)
I Lancaster 5250,000 5250,000 S 5 I00 IO
2 Weatherford S250,000 $250,000 10 10 20 3
31CedarH-11 $500.000 $500,000 0 0 20 2
4 Foil Worth 5500,000 $500,000 0 O 100 10
6 Burleson $1.000,000 5750,000 10 10 50 101
8 Cleburne $1,000,000 $1,000,000 26 28 25 ?
7 Dallas $1,000,000 51,000,000 10 10 10 6
8 Euless 51.000,000 51,040,000 10 10 20 10
9 Hurst 51,000.000 51,000,000 10 10 20 10
10Imangfield $1,000.000 51,000000 7S 75 10 5
11 Plano $1,000.000 51,000,000 0 0 23 1
12 Haltom Cot 52,000,000 $1,000,000 0 0 50 10
13 Mesquite S2,000,000 $2.000,000 O 0 100 40
14 Benbrook S3,000.000 $3,000,000 60 60 100 10
15 IN, RichlandHit($ $3,000,000 $1,500,000 10 10 100 10
18 The Colon 53,000,000 $3,000,000 0 0 30 2
17 Allen 55,000,000 $5,000,000 0 0 252
181CerrOlllon $5,000,000 55,000.000 0 0 26--1-----31
19 Denton 53,000.000 $4,000,000 0 0 25 2
20 Garland _ S5,000.000 $5,000,000 0 0 50 5
21 Grand Prairie 55,000,000 55,000,000 25 25 75 10
22 Grapevine 55,000,000 55,000,000 0 0 20 3
231Lewisvdle SS,040,000 $5,000,000 0 0 30 10
20 McKinney $5,000,000 $5,000,000 0 0 25 2
25 Richardson 55,000,000 55,000,000 0 0 25 2
26 Cop ell SS,500,000 $5,500,000 0 0 25 S
27 Arlin ton 510,000,000 $10000,000 0 0 100 10
28 Fatrners Branch 510-000.000 510,000,000 0 0 30 5
29 Irvin $13,000,000 $13.000,000 1000 1000 25 4
Minimum $250,000 5250,000 0 0 10 1
Maximum $13.000,000 $13,000,000 1000 1000 100 10
Average S3,620,690 $3,491,379 43 43 43 6
M
AUG-17-95 THU 11739 8. 4909EIS.Q~~ F.11
.!;,ands
Agenda Item
oats. 1- 3 L~ -4~----
Table 3
Comparison of abatement policies
Sorted by Minimum Investment for Industry Expansion
Maximum abatement and letm is based on smallesj allowed protect
Minimum Minimum Max Max
New Existing New Exist Abate Term
Rank Citv Investment Investment S Jobs Jobs % ( ears)
I Lancaster S250,000 $250,000 3 6 100 10
2 Weatherford $250,000 $250,000 10 10 20 3
3 Cedar Hill $500.000 $500,000 0 0 20 2
4 Fort Worth $500,000 $500,000 0 0 100 10
5 6urleson $1,000,000 $750,000 10 10 50 10
6 Cleburne 51,0160-.- $1, 26 26 25 2
7 Dallas ;1,000,000 $1,000,000 10 10 IO S
6 Euless $1,000,000 $1,000,000 10 t0 20 10
9 HaltomCil S2,000,000 $1,000,000 0 0 SO f0
10 Hurst $1,000,000 51,000,000 10 10 20 10
1I Mansfield $1,000A00 $1,000,000 1S 75 tp 6
12 Plano _ S1,000,000 St,000,000 0 0 15 I
13 N.Rlchtand HiIIS 53,000,000 61,500,000 10 10 100 10
14 Mesquite $2,000.000 $2,000,000 0 0 100 10
15 Benbrook 53,000,000 $3,000,000 60 60 100 i0
16 The, Colon $3,000.000 $3,000,000 O 0 30 2
17 Denton $5,000,000 $4,000,000 0 0 25 2
18 Atlen $5,000,000 0,000,000 0 O 2S 2
191cafioillon 55,000.000 SS,o00,000 0 0 20 3
20 Garland $5,000,000 55,000,000 0 0 60 5
21 Grand Prairie 55,000,000 55,000,000 25 25 75 10
22 Grapevine $5,000,000 $5,000,000 0 0 20 3
23 Lewisville $5,000,000 $5,000,000 0 0 30 10
24 McKinney $5,000,000 65,000,000 0 0 25 2
25 Richardson $5,000,000 $5.000,000 O 0 25 2
26 Cop ell $5,500,000 ;5,500,000 0 0 25 5
27 Arlin on 510.000,000 $10,000,000 0 0 100 10
28 Farmers Branch $10,000,000 S10,000,000 0 0 30 6
29 Irvin $13,000,000 $13,000,000 1000 100d 25 4
Minimum 5250,000 $250,000 0 0 10 1
Maximum $13,000,000 613,000,000 1004 1000 100 10
Average 13,620,690 $3,491,379 43 43 41 6
AVO-17-93 THU 11:40 24,
F.12
Table G
Comparison of abaternant policies
Sorted by Minimum Jobs for New Industry
hlsximum abalemenr and term is based on smallest allowed project
Minimum Minimum Max Max
New Existing New Exist Abate Term
Rank City Investment (S Investment S Jobs Jobs %
1 !Allen 55.000,000 r {ears)
$5,000,000 0 0 25 2
2 Arlin ton $10,000,000 $10,000,000 0 0 100 10
3 Carrolllon 55,000,000 $5.000,000 0 0 20
4 Cedar Hill 5500.000 SS00,000 0 0 20 3
Coppelf 02
S $5,50,000 15,500,000 0 O 25 5
6 Denton $5,000,000 54,000,000 0 0 25
7 Farmers Branch $10,000,000 $10.000,000 0 30 2
8 [Fort Worth 5500,000 $500,000 0 0 100 5
0 16
9 Garland $5,000,000 $5,000,000 0
10 Gra evine 35.000.000 $5,000,000 0
50 5
11 Haflom City S2,000,000 0 20 3
12 )Lewisville $1,000,000 0 0 50 10
65,000.000 $5,000,000 0 0 30 i0
13 McKinney 35,000,000 55,000,000 0 O 45
14 Mesquite $2,000,000 $2,000,000 0 2
13 Prano $1,000.000 s1,000,000 0 0 125 10
16 Richardson $5,000,000 !5,000,000 0 1
0 25
17 The Colon 13,000,000 $3,000,000 0 0
30 2
18 flancaster $250,000 $260,000 6 2
19 Burleson $1,000,000 5 100 10
20 Dallas !750.000 10 10 SO IO
511000,000 51,000,000 10 10 IO $
21 Euless 51,000,000 $1,000,000 10 10 20 10
22 Hurst $1,000,000 $1,000,000 10 10 20 10
23 N.RichlandHills $3,000,000 $1,500,000 10 to 100
24 Weatherford $250,000 $250,000 10 10 20 10
25 Grand Praise $5.000,000 $5,000,000 25 25 75 3
26 Cleburne 51,000,000 $1,000,000 26 25 25 10
27 Banbrook $3,000,000 53,000,000 60 60 100 2
28 Mansfiald 11,000,000 10
29 Irving $1,000,000 75 73 t0 5
(13,000,000 913,000,000 1000 1000 25 4
Minimum $250,000 3250,000 0 0 10
Maximum $13,000,000 5130000_0 1000 1000 100 10
Avgra a 53,620,690 03,491,379 43 43 43
6
" AI~G-17-y3 TNU 11 :~0
S l AWQ~
4VOIS Item ^
T41ile S
Comparison of abatement policles
Sorted by Maximum Abatement Offered
Maximum abatement and term based on smallest allowed proiect
Minimum Minimum
Max Max
New
Rank Cit Existing New Exist Abate Term
Y Investment S) Investment Jobs jobs % ears)
I Ailin ton $10,000,000 $10,000,000 0 10
2 Senbrook $3,000,000 0 100
3 Fort worth $3,000,000 60 60 100 10
4 Lancaster $500,000 6500,000 0 0 100
52501000 $250,000 S 10I
5 Mesquite $2.000,000 S 100 10
6 N.Richland Hilts $2.0 100 0 0 100 10
53,000,000 $1,500,000 70 f0 100 t0
7 Grand Prairie $6,000,000
8 Burleson $5'000.000 25 25 75 10 .
51,000.000 $750,000 f0 10 SO
9 Garland 35,000,000 $5,000.000 0 0 10
10 Haltom City 32,000,000 S
11 Farmers Branch $1000'000 0 0 i0
$10,000,000 $10,000,000 0 0 30 0
12 Lewisville $5,000.000 55,000,000 0 5
13 The Colon $3,000,000 E3,000,1D00 0 0 30 10
14 Allen $3,000,000
5 5 .000.000 0 O 0 25 36 2
t5 Cleburne p
15 C et1 51,000,000 $1,000,000 26 26 2S 2
17 Denton $5,500,000 65,500,000 0 0 2S 5
18 ton $3'000000 $4.000,000 0 0 25
$13,000.000 313.000, 000 1000 1000 23 2
19 McKinne $5,000,000 $5,000,000 2
20 Piano $1,000,000 O 0 25 2
21 Ricnardson $1,000,000 0 0 25 I
22 Carrollton 55,000,000 $5,000,000 O 0 25 2
23 Cedar Hirt $5.000,000 $5,000,000 0 0 20 3
24 Cedar $500,000 $500,000 0 0 20 2
25 tines raoevine $1.000,000 $1,000,000 10 10 20 10
$5,000.000 $5,000,000 0 0 20 3
26 Hurst $1,000.000
27 weat;,e~tord $1,000,000 10 10 20 10
27 Wee $250,000 $250,000 10 10 20 3
29 Mansfield d st,0o0,000 $1,000,000 10 10 10
S 1,000,000 $1,000,000 75 75 10 5
Minimum $250,000 3
Maximum $250,000 0 0 70 t
$13,000,000 $13,000,000 1000 1000 100 10
Avera a $3,610.690
$3,491379 4? 43 43
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• AUG-17-33 THU 1j:41
1 [AgcmC3 lien cable 6
Comparison of abatement policies
5orled by Maximum Term pllered
Alaxlmum abatement and term is based on Smallest allowed project
Minimum Minimum Max Max
New Existing New Exist Abate Term
i Rank Cit Investment (S) Investment (S Jobs Jobs (tb) years)
F-2 $10,000.000 it000000 0 0 00 10
Senbrook 53.000.000 53,000,000 60 60 100 10
3Igurie3on $1.400,000 5750,000 t0 10 50 10
i Euless $1.000,000 51,000,000 t0 10 20 10
5 (Fort worth $500,000 5500,000 O 0 too to
6IGrandPrairie $5.000.000 $5.000.040 25 25 75 f0
7 Haltom City $2,000,000 $1,040,000 0 0 50 10
8 Hurst 51,000.0003 1,000100 10 t0 20 10
9 lancasler 5250.000 5250.000 S 5 100 10
10 Lewisville $5,000,000 SS.000.000 0 0 30 10
11 Mesquite 52,000,000 52,000,000 0 0 100 10
12 N.Aichland HIIIL $3,000,000 51,500,000 10 10 f00 t0
13 ICop ell $5,500.000 $5,500,000 0 0 25 8
14 Callas $1,000.000 51,000,000 t0 10 10 6
75 Parmerg Branch $10.000,000 $10,000,000 0 0 30 5
16 Garland $5,000,000 55,000,000 0 0 50 5
17 Mansfield $1,000,000 SI,000.000 75 75 10 5
f 8 !Irvin 513.000,000 $13,000,000 1000 1000 25 4
19 Carrollton 55,000,000 $5,000,000 0 0 20 3
20 Grap@vine 55.000,000 55,000,000 0 0 20 3
21 Weatherford $250,000 52501000 10 10 20 3
22lAlfen $5,000,000 $5,000,000 0 O 25 2
23 Cedar Hill SS00.000 5500,000 0 0 20 j-
24 Cleburne 51,040,000 $1,000.000 28 28 25 2
25 Denton 55.000,000 $4,000,000 0 0 25 2
26 McKmne 55,000,400 55.000NO 0 0 25 2
27 Aichatdson $5.000,000 $5,000,000 0 0 25 2
28 The Colon $3,000,000 $3,000,000 0 0 30 p
29 Piano $1.000,000 $1,000,000 0 0 25
RAveFOge m $250,000 $250.000 0 o 10 1
m $13,000000 $13,000,000 1000 1000 100 10
53,620,690 $3,491,379 43 43 /J 6
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REVIEW OF TAX ABATEMENT POLICIES
Based on Increased Value of
NIR's MAX
City Threshhold Percent Years Structural Fixed Equip/ Comments
Improvements Machinery
Allen $5 Million 250/6** 10 yrs x Fl.-xible - can vary from guidelines
Carrollton $5 Million* 20-25% 10 yrs x* * Valuation includes building and land.
I
Expansion - 30*,0 At least 250 jobs
increase over current
valuation If leased - at least 5 year lease
Coprell $5.5 Million** 75%*** 5 yrs x x "Can vary
500"0 ***75;6 warehouse/distribution
25% 50% fabric ation/assembly
25% manufacturing
V
Dallas $1 Million' 100° o 10 yrs * Can vary - very structured - too many
_ variables to list.
Fort Worth $10 Million (or could 100% 10)IS x Must increase employment in Fort Worth
be as low as $500,000 Minimum investment of $500,000
or 50016 increase in Must utilize Ft. Worth companies in
appraised value) if construction and for supplies and services.
Located in innei pity; . 1
or Provides inner city Proof tests.
employment 1) not yet issued building permit d r
2) evidence of need for tax abatement
MST- D: 7390:1115/96 Page 1
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REVIEW OF TAX ABATENI ENT POLICIES
Based on Increased Value of
Max Max
Cite Threshhold Percent Years Structural Fixed Equip/ Comments
Improvements Machinery
Garland 300° o added valuation 100% 10 yrs x No warehouse/distribution unless ancillary to
or manufacturing or production process.
50% added valuation if
expansion
or $5 Million
Lancaster $250,000 1000/0 10 yrs x x Create at least 5 jobs
Lewisville $5 Million (new) 30% 10 yrs x x
$2 Million (expansion)
McKinney $5 Million"* 25%** 10 yrs x x Can vary in percentage and threshhold
(Joint Policy)
Mesquite $2 Million 1000.1D 10 yrs x x Amount of abatement and term of agreement
open.
Policy addresses owned/leased propert and;
assignment of abatement to lessee PIS.
Piano $1 Million 25°~"* 10 yrs x x Flexible - can vary from guidelines
(Joint policy)
MS/ED. 7390:1/5/96 Page 2
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Apenda No.
OVERVIEW OF
fit. rr.
PHI{ FANTUS COMPETITIVE ANALYSIS A:endatflsm
1. ECONOMIC DEVELOPMENT PROGRAM STRUCTURE
A. Establish new organization structure by:
Raising and expending more money
Setting appropriate expectations
Focusing on brand-building
B. Adopt the economic development sales tax by 1/2 cent and earmark the revenue
generated strictly for economic development activity such as attracting new
business, assisting expanding enterprises, and creating newjob opportunities.
if. EDUCATIONAL ASSETS
A. Better leverage the assets of Denton' higher education institutions
Involve the universities in ongoing economic development activities.
- Convene a panel to include university representatives to define the
cooperative effort in economic development.
B. Design a public relations program that simultaneously enhances the universities'
respective images and Denton's brand image.
C. Jointly sponsor events such as conferences and symposia.
D. Leverage UNrs intercollegiate sports.
E. Provide training opportunities and link businesses with programs provided at the
universities and community college.
F. Devote more energy, to working with the Denton ISD on programs that train high
school students for positions that local businesses will need to fill.
111. REGULATORY PROCESS
Establish an effective mechanism for continuing dialogue between city officials and
business leaders.
1V. BUSINESS RETENTION
Adopt an account management process, geared toward retention, that focuses on
anticipating customer needs and encouraging expansion activities of existing 'L isinesses.
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ARMS ft. (60
V. MARKETING
Perform thorough analysis of manufacturing activity in Dallas, Tarrant, Collin and
Denton counties to identify customers/suppliers of existing businesses (cluster analysis).
VI. INDUSTRIAL SITES
I
Enhance the Denton product by improving infrastructure (especially available sites and
buildings) that will assist with the attraction of new business.
Develop a business park
Develop spec distribution center
Obtain firm market prices for industrial parcels
Increase efforts to find occupant for the Texas Instruments building
VII. INFRASTRUCTURE
A new effort should be made with the Texas Department of Transportation to add a new
entrance/exit ramp on I-35 near the Municipal Airport.
VIII. AIR QUALITY
A strong education program should be launched in coordination with North Texas Air
Coalition to make Denton area residents aware of the adverse economic impacts and
health hazards resulting from continuing status as a Moderate Non-Attainment Area.
IX. METROPLEX RELATIONSHIP
Increase Denton's visibility within the Metroplex and cement ties with the Dallas {
Chamber of Commerce,
X. BRAND MANAGEMENT
A. Establish a brand image for Denton as being a stand-alone university community
with a hometown atmosphere that is close enough to Dallas to offer businesses the
critical advantages inherent in being in the Metroplex Region,
B. Begin developing a revised incentives package that is consistent with the "brand
image" of the city and be meaningful to the kinds of businesses Denton decides to
target. It will be critical to include training programs and perhaps to develop one
or two incentives that ato unique to Denton.
C. Begin positioning Denton to benefit from NAFTA related trade through a
selective advertising campaign.
r
~ipenda t;o. to` GUS
Avon hen
GLOSSARY OF ECONOMIC DEVELOPME
TIF Tax Increment Financing. Provided for under Section 311 of the
Tax Code. Typically used to retire debt on infrastructure
improvements (roads and utilities). Assessed value of the property
and its improvements is "frozen" at current rate. Ad valorem tax
revenues resulting from additional valuation (new buildings,
equipment, personal property and inventory) are dedicated to the
debt service. All or a portion of the increased revenues may be
dedicated to retire the debt.
REINVESTMENT ZONE A Reinvestment Zone is a geographic area defined by a
municipality. Reinvestment zones can be established for either
Tax Increment Financing (under Section 311 of the Tax Code) or
for tax abatement purposes (under Section 312 of the Tax Code).
ENTERPRISE ZONE An Enterprise Zone is a geographic area designated by a
municipality for the purpose of promotin3 economic development
and providing jobs to the economically disadvantaged. Businesses
who locate within an Enterprise Zone and agree to hire 25510 of the
company's new employees from either zone residents or
economically disadvantaged, may receive state and local
incentives.
EDC An Economic Development Corporation (provided for under the
Development Corporation Act) is a non-profit corporation
established by a municipality. Under the Act a city may call an
election (or 10 percent of the voters may petition the city to call an
election) to impose a sales tax. The revenues from the sales tax are
dedicated to economic development programs and projects and
may be used:
- to acquire buildings, land and equipment
- to pay the principal and interest on debt
improve airports that are an integral part of an industrial park
- make improvements to support waterbome commerce
to use for other purposes that are in the best interest of the city
E/D SALES TAX The E/D Sales Tax is the sales tax dedicated to economic
development.
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Agenda f:o,
Glossary of co;h°81AICe Meg '
Ortc ^
EDTC The Economic Development Transition Committee was
appointed by the City Council and the Chamber of Commerce
Board of Directors to oversee the economic development program
at the Chamber. In addition, the Committee has been charged with
the responsibility of assessing our current economic development
program, studying other successful programs, and making
recommendations to the City and Chamber on how economic
development should be structured and funded in Denton.
CDD A County Development District enables a county to designate a
geographic area for development. A CDD requires approval of the
majority of the voters within the district. A CDD may:
acquire and dispose of projects
provide for general promotion and tourist advertising of the
district
issue bonds
impose and pledge sales tax revenues toward projects
borrow money
establish public improvement districts, road improvement
districts, TIF's, etc.
FREEPORT The Freeport Exemption was adopted by all th.•ee taxing
jurisdictions in 1990. Freeport provides ad valorem tax exemption
on qualified inventory that is held no longer than 175 days and is
transported out of the State.
IRB Tax exempt Industrial Revenue Bonds may be available for
qualifying manufacturing projects. Advantages to IRB's are:
- Access to long-term financing
- Lower interest rates
- No income tax on interest earned by bond purchasers
Increase in community's tax and employment base
COST/BENEFIT
ANALYSIS A Cost/Benetit Analysis summarizes the statistical research of a
project to ensure the resulting benefit of a project does not exceed
the cost of the project.
TYPES OF INCENTIVES AND ENABLING LEGISLATION
Capital Subsidies: Operating Tax Exemptions:
Financing of land, building Corporate income tax exemptions
Financing of equipment and machinery Exemptions on inventories (Freeport)
Interest subsidies Exemptions on raw materials
Bond financing (taxable or non taxable IRB's) Sales tax exemptions
Infrastructure improvements Enterprise Zone credits
Grants Sales tax exemptions on equipment
Accelerated depreciation
Capital T Incentives: Export exemptions
Tax abatements on land and improvements
Sales tax exemption
Accelerated depreciation
Operating Subsidies: Enabling Legislation:
Training of employees Tax increment financing
Recruiting, screening of employees Economic development Fales tax (4A and 4B)
Tax credits County development districts
Loan guarantees Texas Leverage Fund
Rebate relocation expenses
Reduction of permit fees _
Utility rate reductions '
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ECONOMIC DEVELOPMENT TODAY:
THE NEW REALITY
EXTERNAL
Reality #1: Economic Development is increasingly competitive and complex.
Reality #2: Businesses' location and expansion decisions are placing a greater
emphasis on incentives and tax concessions.
Reality #3: The Sales Tax for Economic Development has revitalized the way cities
fund and conduct economic development programs
INTERNAL
Reality #4: No city: owns a job; owns a company; has a guaranteed future.
Reality #5: Cities do not inherit the factors necessary to attract and keep industry;
they create Mem.
Reality A: Denton's economic future rests squarely on its citizens and enlightened
leadership.
QiIRS 1611Af
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North American Development Organizaticins, 1995
J' • i
I b i oryanaal~ona
610 16 agwaatwna
Mwo than IO orparnzaKq
• • Si i'i. _J O
Source: Site Selecrion Magazine, April 1995 y :7
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WHAT PRO$i, eECTS =S k ~k x 5
MANUFACTURING OFFICE
LOCATIONS LOCATIONS
Property Tax Abatements 87% 50%
Work Force Training 83% 46%
Below-market Bond Financing 40% 14%
Reduced-cost Land 40% 14%
Low-interest Loans 37% 18%
Below-market Lease Rates 23% 41%
Grants 23% 9%
Free Land 20% 14%
Reduced-cost Building 6% 27%
Free Building 3% _
Source: Conway Data Survey of Corporate Real Estate IRxeculives, December 1992 • January 1993
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COMMUNITY FINANCIAL ASSISTANCE PROGRAMS
FOR BUSINESS
• Direct Loans
• Loan Guarantees
• Loan Subsidies (interest forgiveness or write-down)
• Deferred Loans
• Grants
• Bonds (Industrial Revenue Bonds - non-taxable)
• Bonds (taxable)
• Equity
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CREATING A WINmWIN SITUATION
WITH INCENTIVES
INCENTIVES SHOULD BE:
I. Part of a Comprehensive Economic Development Strategy
2. Based on a business evaluation (due diligence)
- that takes into consideration collateral value and ability to perform
3. Be supported by a cost/benefit analysis
4. Viewed as an investment
5. Designed to pay for themselves (if possible)
6. Negotiated
Minimize what the competition is doing
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8. Part of a contract that prescribes the company's performance
9. Available to all firms that satisfy eligibility criteria
10. Targeted to firms hi basic industries ,
ll. Periodically monitored for performance/costs/benefits
fill
~nasptsypNl
MAP
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TYPICAL PROFILE OF
LOCAL ECONOMIC DEVELOPMENT ORGANIZATIONS
Private sector Public Sector
Funding membership/Contributions Tax RevenueslCDBG Funds
Governing Body Board elected by membership Board appointed
Legal Form Non-Profit 501(c)(6) or 501(c)(3) Corporation Board/Commission/Corporation
Functions usually prescribed by law
Economic Development Functions Variety of functions
1. Private sector confidence I. Continuous funding
2. Confidential negotiations 2. Access to government funds
3. Less political 3. Access to incentives
Operational Advantages 4. Program continuity 4. Broad support
5. Infrastructure improvements may be facilitated
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Texas Leverage Fund
P=POM The Texas Leverage Fund (TLF) is an "economic
development bank" offering an added source of financing to
communities that have passed the economic development
sales tax to make loans to local businesses for expansion or
to recruit new industries.
Commerce's Role: Commerce will loan funds directly to the local Industrial
Development Corporation (IDC) to finance eligible projects.
Sales tax revenues pledged need only be sufficient to cover
projected annual debt service at the required debt service
coverage ratio. This allows cities to leverage their economic
development sales tax and to pursue additional projects.
ibt'lity: ■ IDCs formed by Texas cities which have passed the local
asks tax to fund economic development may borrow from
the TLF subject to the "Program Guidelines" (most cities
may vote on the tax unless they have reached the 2 cent
local maximum). The IDC may finance a project for an
individual, a business, a non-profit or a governmental
entity (the "User").
Use &Procee& ■ Proceeds must be used to pay eligible "costs" of "projects" as
defined by the Development Corporation Act of 1979, as
amended (the "Act"). Land, buildings, machinery and
equipment for manufacturing, industrial, commercial and
certain infrastructure projects are generally eligible. The
TLF can be used for interim, long-term or gap financing.
Terms: ■ The maximum loan amount is generally 4.5 times the ~
IDC's annual sales tax revenues up to $4,000,000.
■ Maturities up to 15 years.
■ Monthly principal and interest payments at "Prime"
floating (as quoted in the Wall Street Journal). Fixed
interest rates will be priced upon request.
■ Terms of the financing provided by the IDC will be
negotiated between the IDC and the User and must comply
with Commerce's "Program Guidelines."
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3LOPMENt PLANNING AND DEVELOPMENT 1380.
Title 11 VUk 0 Now I
Historical and Statutory Notes
Prior Laura:
Acts 1989, 71st Leg., ch 1066.
Veroor s Ann.Civ.St. art 8280-15, 1 29te).
may dissolve
[Sections 375266 to 375280 reserved for expansion]
SUBCHAPTER N. CONTRACTS WITH DISTRICT
137521111. Contracts rith District i
Notwithstanding any ot},er law to the contrary, a state agency, municipality, county, other
political subdivision, corpxation, individual, or other entity may contract vtith a district
without L-ther authoriraton to rlL-y out the purposes of this chapter.
Added by Acts 1991, 72nd Leg., ek 16, 1 13.Wa), eH. Aug. 26, 1991.
on written Illstorical and i tstutory Notes
Prior Laws
tsed on the Arts 1989, 71 at Leg., ch. 1056.
ds, streets, Veroona Ann.Ctv.SL arL 8280.15, 1 19.
empt from [Chapters 376 to 379 reserved for expansion]
lost recent
' CKAPTIM 380. MISCELLANEOUS PROVISIONS RELATING
TO MUNICIPAL PLANNING AND DEVELOPMENT
sect" Section
380.001. Economic Development Programs. 380.002• Economic Develcpment Grants by Cer-
tain Municipalities.
WESTLAW Electronic Research
See WESTLAW Electronic Research Guide fol-
n which a lowing the Preface.
adopt an
4 380.001. Economic Development Programs
ante with (a) The governing body of a municipality may establish and provide for the administration
sumes all of one or more programs, including programs for making loans and grants of public money
and providing personnel and services of the municipality, to promote state or local economic
development and to stimulate business and commercial activity in the municipality.
rb, The governing body may:
11, administer a program by the use of municipal personnel;
(2) contract with the federal government, the state, a political subdivision of the state, a
nonprofit organization, or any other entity for the administration of a program; and
131 accept contributions, gips, or other resources to develop and administer a program.
Added by Acts 1989, 71st Leg., ch. 555. 1 1, eff June N, 19~(9.
Notes of Decisions
Bonds 3 Validity I
standing Purpose 2
in accor-
1. Validity
Section 3y0.M of the Local Government Cede,
which the legislature enacted pursuant to article
115
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PLANNING AND DEVELOPMENT
§ 380.001 Title 12
NON t
Ill. section 52-a of the Texas Constitution, is municipality has established in accordance with
constitutional. Op.AttyGen.1992, No. DM-I& seEnt the bonds ction 3380001. but only if t lily desires to issue
2. Purpose must be in an a.nount and the extent provided by
The lmuniciure intended section a o in to sus the municipality's charter, and, second, a mglo6ty
designed municipalities to otter ■ Hoge or f incem ives of the dui ualified property tax-paying Voters
deli enL' to promote state or local economic decel- voting at an 0.election held to consider the bond '
opmnt OpAtty.Gen.1992 No. DM-185. issue must have approved the issuance. OpAtty. '
' 2 Bonds e
A home-rule municipality may issue bonds to Gen.1990 No. DM-185.
,
fund an economic development program that their
1380.002. Economic Development Grants by Certain Municipalities `
(a) A home-rule municipality with a population of more than 100,000 may create programs
for the grant of public money to any organization exempt from taxation under Section 501(x)
of the internal Revenue Code of 19861 as an organization described In Section 601(c)(3) of
that code 1 for the public purposes of development and diversification of the economy of the
state, elimination of unemployment or underemployment in the state, and development or
expansion of commerce in the state. The grants must be in furtherance of those public
purposes and shall be used by the recipient as determined by the recipient's governing board
for programs found by the municipality to be in furtherance of this section and under
conditions prescribed by the municipality,
(b) The funds granted by the municipality shall be derived from any source lawfully
available to the municipality under its charter or other from , ad valorem tom the proceeds of
bonds or other obligations of the municipality payable
Added by Arta 1991, 72nd Leg, ch. 16,1 13.05W, elf. Aug. K 1991. Amended by Acts 1991, 72nd Leg..
Ist C.S., ch. 4, i 25.02, eff. Aug. 22, 1991.
126 US.CA 1 501(a).
126 US.CA 1 501(03).
Historical and Statutory Notes
Prior f.awa,
Acts 1989, 71st Leg., ch. 215.
Vernon's Ann.Civ.SL art 11R2m.
SUBTITLE B. COUNTY PLANNING AND DEVELOPMENT
CHAPTER 381. COUNTY DEVELOPMENT AND GROWTH
Section
381.004. Community and Economic Development
Programs in Certain Counties.
Cross References
Permanent improvements for institutions of
higher education, see Vernon's Ann.Civ.St, art
1182n.
§ 381.001. County Industrial Commission
(See main toll me for (a) and (b))
(c) In a county %ith a population of 14,320 to 14,340, or 15,500 to 15,600, or 17,710 to 17,600,
or 22,900 to 23,000, a person appointed to the commission also must be serving or must have
served on an industrial foundation committee, commissioners court, municipality's governing
body, or school board. In addition, in those counties information obtained by the commission
shall be available to the commissioners court.
(See main tolume for (d) to (pJ
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Agenda No.~
Agenda Item
Dato ab --is
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COUNTY DEVELOPMENT DISTRICT
By Tom Leonard'
The Commissioners Court of any Texas County with a population
of 400,000 or less may create County Development Districts ("CDD"s)
upon petition of the owners of all of the land within the COD. No
city consent is required. If the petitioners persuade the
commissioners court that the COD will "serve the public purpose of
attracting visitors and tourists to the county," the Commissioners
Court creates the COD after a hearing and appoints five temporary
directors.
The Temporary Board of Directors calls an election within the
boundaries of the COD for the confirmation of the creation of the
COD and the imposition of a sales tax of up to 1/2 of one cent. If
the election passes, the members of the Board of Directors become
permanent directors and serve four-year, staggered terms. The
Commissioners court appoints successor directors and may remove a
director on petition by a majority of the remaining directors. The
directors receive no compensation and must be qualified voters
within the county in which the COD is located.
A County Development District has the following powers:
1. The power to "...acquire and dispose of projects...."
2. The power to "...provide for general promotion and
tourist advertising of the district and its vicinity and
to conduct a marketing program to visitors..."
3. The powers "...of a municipal management district created
under Chapter 375, Local Government Code..." which are
not inconsistent with the COD Act.
4. " ..all of the other power, authority, rights and duties
which will permit accomplishment of the purposes for
which the district was created..."
The statutory definitions of "project" and "ccst," together
with a copy of the Municipal Management District Act, are attached
hereto for a more comprehensive understanding of the powers of a
COD.
' Founder and Chief Executive Officer of Leonard Hurt Terry
& Blinn, a law firm with offices in Austin, Dallas, Houston and
Washington, D.C. which was instrumental in the enactment of the
County Development District legislation.
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The CDD may exercise the right of emine t domain ifi•the. CDD is
not located within the boundaries of a muni 'pa ity~-.3
The CDD may impose a hotel occupancy tax not to exceed 74 o
a hotel room located within a CDD but outside a municipality.
The CDD may issue bonds and pledge the sales and use tax and
other revenues available to the CDD. The bonds may be issued to
pay all or part of the cost of a project, to pay administrative and
operating expenses, to create reserve funds for the bonds, and to
pay all issuance costs of the bonds. In addition, the CDD is
authorized to borrow money for any corporate purpose.
The CDD's sales and use tax may not cause the combined rate of
all local sales and use taxes within the CDD to exceed 24. If a
municipality adds a sales and use tax to the territory within a
CDD, which would cause the combined sales and use tax to exceed 2V,
then the CDD's tax is reduced so that the combined tax will equal
2%. However, to the extent that the CDD has pledged its sales and
use tax to the repayment of bonds, then the municipality must pay
the CDD the amount the CDD would have collected prior to the
imposition of the municipality's sales and use tax. These payments
continue until the bonds of the CDD are paid.
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ApMda ~ ~
Apanda Aam
oato_~
OVERVIEW OF
TAX INCREMENT FINANCING
1. Reinvestment Zone: In order for municipalities to establish
tax increment financing (TIF) districts, they must designate the
area as a reinvestment zone as provided under Section 311 of the
Tax Code.
a) The reinvestment zone must meet one or more of certain
criteria, such as being
* a blighted area,
* a predominately open area, that impairs the
municipality's growth,
* in or adjacent to a federally assisted new
community, or
* in a designated enterprise zone.
b) The reinvestment zone must be a contiguous geographic
area.
c) It must be determined that development or redevelopment
would not occur solely .through private investment.
~d) The reinvestment zone may not be created if:
* more than 1011 of property is used for residential
purposes
* total appraised value of property in zone exceeds
lstr of total appraised value of municipality.
2. Procedure:
1 a) The governing body of the Municipality must prepare a
preliminary financing plan before formal proceedings to
designate the reinvestment zone. A copy must be sent to
each taxing jurisdiction within the zone.
b) The municipality must hold a public hearing regarding the
TIF project.
c) Taxing jurisdictions {other than the municipality) must
be notified in writing 50 days prior to public hearing
for ordinance.
d) Public hearing must be published in newspaper seven days
prior to hearing.
e~ Municipality is required to make formal presentation to
the County and School District.
f) No later than 15 days after receipt of the 50-day notice,
each affected taxing unit is required to appoint a
representative to meet with the municipality.
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3. Ordinance: The -.u:ic:pa::ty prepares the ordinance which:
ai Describes the boundaries of the reinvestment zone.
b) Creates the board of directors 'two-year terms)
• No more than 15 members
Each affected taxing unit (other than
municipality) appoints one member.
Municipality can appoint no more than ten
members.
C) Board adopts a project and `finance plan and establishes
TIF fund.
4. TIF Fund:
a! Tax increments are increases in ad valorem tax revenue
i-posed on property by taking jurisdictions.
bi Taxing jurisdictions collect all their own taxes and pay
the appropriate increment to the fund.
C; Taxing jurisdictions may choose not to pay any of tax
increment into TIF Fund.
d) Funds can be expended only for debt service on bonds and
notes and to pay project costs. Funds may be invested in
same many as other municipal funds.
e) After completion of project or term of TIF, any remaining
funds are returned to the taxing jurisdictions in
proportion to the respective shares and total amount
deposited into the fund.
f) Tax increment debt is not subject to authorization
election, petition. cr referendum.
5. Termination Zone:
a) Zone terminates on earlier of:
Date designated .he ordinance creating zone,
• Date on wh:c:. a: project costs, and tax increment
bonds .-ave I cen ca:-
b) Tax Increment Bonds ^ust Tature wit^in 20 years of the
date of their issue.
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TAX INCREM -96-00s
NT FIN AN " 1_~0_
'What is it? -
Tax increment financing involves the pledging of future real
property taxes generated by accelerated new development to
fund the public infrastructure improvements which make the
development and the resulting taxes possible. Procedurally, tax
increment financing requires:
1) qualifying the area as an eligible reinvestment area (will
discuss later;
2) defining the boundaries of the tax increment district;
3) "freezing" the assessed value of land and improvements
within the district as of the last assessment date;
4) diverting real property taxes generated by increases in
the assessed value above the "frozen" base to a tax
increment fund; and,
5) using the tax increment funds to pay for improvements
as needed or a repayment source for tax increment
bonds,
Texas law allows for diversion of real property taxes from each of
the taxing jurisdictions, but does not require participation by these
jurisdictions.
'History
- Originated in California during the early 1950's
- Was a response to a need by local governments to generate local
matching funds for federally funded redevelopment projects
- Majority of TIFs were established during the 1980's
Established in Texas in 1981 (Currently 59 TIF Districts)
In 1989, International City Managers Association conducted a survey
on TIF's in 300 cities with 189 responding. Of those responding,
128 used TIF's TQ~
{RCftt~
Of the 128 cities which have used T1Fs 48% had 1, 16% had 2 with
the remaining 36% having from 3 - 15 TIF's
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*Advantages associated with TIF include:
It provides significant capital to economically feasible development
projects
Property owners pay no more than the normal tax burden
Tax increment bonds are not counted against the municipality's
bonded indebtedness
The full tax base and revenues become available to all taxing bodies
upon project completion and bond retirement
•Disadvantages associated with TIF include:
Tax increment financing generally represents a more complex
process than does grant administration
'~--.chance for de;ays in implementation is relatively high;
Local control of TIF brings additional accountability to the
municipality. In other words, project failures cannot be blamed on
compromises required by adherence to federal regulations.
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•Most likely users of TIF
- Municipalities'. with primarily commercial economic bases
- Cities with interest in expanding economics
- Municipalities with populations of 10.000 and over
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Aoenda No. S
AJsnda Item
*Project and Financing Plans oao:,,. J~3`p
. board of directors shall prepare and adopt a project plan and
financing plan, submit to municipality
project plan must include:
* map showing existing uses and conditions of property
and a map showing proposed improvements to and uses
of that property
* proposed changes of zoning, master plan, building
codes, etc.
* list of estimated non-project costs
* method of relocating persons displaced by
implementation of plan
financing plan must include:
* list describing estimated project costs, including
administrative expenses
* list of kind, number and location of proposed public
works or improvements
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* an economic feasibility study
* amount of bonded indebtedness to be incurred
* time when costs are to be incurred
* description of methods of financing all estimated project
costs, expected sources of revenue
* current total appraised value of zone
* estimated captured appraised value of zone during each
year of existence
duration of zone
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- municipality must approve project plan and fin
ordinance
board may amend plan, but must be approved by ordinance after
public hearing if area, costs, bonded indebtedness, etc, are increased
•Tax Increments, Bonds and Notes
- municipality may issue bonds or notes to pay project costs
- payable solely from tax increment fund
issued by ordinance without further approval except attorney general
- exempt from all taxes
- may be issued in one or more series
fully negotiable
- not a general obligation of the municipality
may not be included in computation of debt of the municipality
may not issue in an amount exceeding total cost of implementing
project plan
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- must mature within 20 years
•Termination or Reinvestment Zone
terminates the earlier of:
* date designated in the ordinance
* date when all project costs, tax increment bonds and
interest on those bonds have been paid in full
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•Reasons given by respondents for not using TIF
- Application and potential of TIF are not fully understood by local
officials
- Inforrr,ation about TIF is not available
Limited staff time precludes its use
Overly complicated by state regulation
Lack of opportunity for use, tax burden too large if project fails, no
need, property tax rates too low to generate significant revenues, and
location of projects not acceptable for TIF.
•Goals of TIF Districts
- Attract new businesses
Promote downtown development or redevelopment
Retain or expand existing businesses
•Revenue generation in TIF Districts (128 users)
Exceeded project costs by more than 2090 16%
Exceeded project costs 5 - 20% 25%
Covered project costs +l- 5% 34%
Fell short of project costs 5 - 2090 5%
Fell short of project costs more than 20% 5%
Not sure 15%
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•Recommendations on the use of TIF /~~'9Co
Explain to the public and elected officials the purpose, process, and
restrictions applying to the use of TIF
Use an aggressive staff to target developers and their needs by
pursuing infrastructure improvements
- Establish clear guidelines and policies for the use of TIF to insure
accurate expectations
- Be careful - conservative - in financial projections of TIF district
economic growth potential and resulting income
- Keep revenue stream ahead of development costs
- Communicate with other taxing entities at the beginning concerning
the long term benefits of the TIF district
• Do not use TIF programs to underwrite business costs
Use a knowledgeable. professional consultant
Analyze thoroughly the need for public assistance, the dollar amount
involved. and the best time to participate with private sector
developers or businesses
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A~ead~ No. (y
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Criteria for Reinvestment Zone Cr.
An area must impair growth, retard provision of housing, constitute
economic or social liability and be a menace to public health because
of:
* substantial number of substandard structures
+ predominance of inadequate sidewalks or street layout
* faulty lot layout-size, accessibility, etc.
+ unsanitary or unsafe conditions
* deterioration of site or other improvements
* defective or unusual conditions of title
+ conditions that endanger life or property
be predominantly open
- be-in a federally assisted new community
petition submitted by owners of 50% of appraised value in area
*Restrictions on Composition of Reinvestment 'Lone
may not create a zone if:
* more than 10% of property (excluding publicly owned)
used for residential
* appraised value exceeds 15% of total appraised %alue in
the municipality
- may not change boundaries of existing zone if area to be added does
not meet the two criteria above
may not create or change zone if boundaries would contain more
than 15% of appraised value of county or school district
residential means property occupied by house having fewer than five
living units
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*Powers of Municipality °
- cause project plans to be prepared, approve and implement plans
- acquire real property by purchase, condemnation or other means to
implenterit plans or sell property
- enter into agreements necessary to implement project plans may
include conditions, restrictions or covenants that run with the land
consistent with project plan
acquire blighted, deteriorated, undeveloped or
inappropri ately developed property for preservation or
restoration of historic site, beautification or
conservation, provision of public works; or
' acquire, construct, reconstruct or install public works,
inc!uri+ig utilities, streets, street lights, water and sewer,
pedestrian malls and walkways, parks, flood and
drainage facilities, educational facilities, or parking
facilities.
•Composiiion of Board of Directors
- c,lnsists of at least 5 and not more than 15 members: each taxing
unit in the zo:te may appoint l member, municipality may appoint
not more than 10
if zone designated by petition of owners with at least 50% of
property value, tFen board consists of 9 members: each school
district or county appoints 1, state senator and state representative
representing zolie are members, remainder are from municipality
- appointed for 2 year terms
- to be eligible for board a member must:
* he a qualified voter of municipality
* be at least 13 and own real property in zone
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Denton Independent School District
TAX ABATEMENT STUDY
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January 30, 1996
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INTROLUCTION
In June, 1989, a task force composed of representatives from Denton County, the
City of Denton, and the Denton Independent School District was formed to study
and evaluate the question of offering tax abatements within the community. A
unified tax abatement policy evolved through this process.
During the fall, 1995, a similar task force has been activated to review the current
tax abatement policy, explore other economic development incentives, and educate
the governing bodies about economic development. Members of the task force
include Eulene Brock and John Biles, City of Denton, Don Hill and Kirk Wilson,
Denton County, and Jerry Falbo and Jim Alexander, Denton Independent School
` District. Staff members from the City of Denton include Rick Svhela, Betty
McKeon, Linda Ratliff, Kathy DuBose, and Herb Prouty, and staff members from
the Denton Independent School District include Albert Thomas and Gilbert
Bernstein. Jeff Carey serves as the staff liaison with Denton County.
As part of the review process of the tax abatement policy, both the City of Denton
and the Denton Independent School District will survey governmental entities in the
metroplex area to determine the diversity of economic development and abatement
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policies. The committee will then analyze its current policy to determine if any changes
must be made.
It must be noto-d that in Senate Bill 7, adopted by the Texas Legislature in 1993, and
subsequently, Senate Bill 1, adopted by the Texas Legislature in 1995, changed
state law by penalizing school districts that granted abatements by reducing their
state funding. Prior to 1993, school districts received no penalties in state funding
for granting tax abatements.
This study consider tax abatement practices in various selected metroplex school
districts. Once these practices have been identified, the current policy can be
reviewed and modified to meet the competitive demands of the mid-90's.
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SCHOOL DISTRICT TAX ABATEMENTS
In an effort to determine the tax abatement practices of metroplex school districts, the
Denton Independent School District developed a questionnaire (see appendix A) which
it sent to twenty-one (21) neighboring districts. Table I identifies the districts that were
surveyed. Fourteen (14) districts (67%), highlighted in gray, responded to the survey.
Table H indicates whether a district has a tax abatement policy, whether it provides a
Freeport Exemption, or whether any abatements or tax incentives have been given.
According to this study, four (4) of the fourteen (14) respondents (291/o) have a
formalized abatement policy. Seven (7) school districts (50%) have approved a total
of twenty-one (21) abatements over a period of several years. Three (3) of these
districts have no formalized abatement policy. No school district has provided any
Tax Increment Financings (TIFs), no 4B arrangements have been made, and no other
incentives have been given. Four (4) of the school districts (29%) provide the Freeport
Exemption.
Table III further analyses the tax abatements granted. The Carrollton-Farmers Branch
ISD has provided one (1) abatement. No monies were involved since the affected area
crossed school district boundaries, and only unimproved land was in the Carrollton-
Farmers Branch School District. State law, however, required that all governmental
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entities in the affected area be made a part of the abatement process.
The Mesquite ISD has provided six (6) abatements from 1988 to 1994. Market value
of the property abated range from approximately $3.0 million to $5.5 million with a
20% to 30% abatement from three (3) to six (6) years.
The Allen ISD granted seven (7) abatements ranging from $1.0 thousand to almost $8.0
million. All abatements are for 100% of market value from six (6) to ten (10) years.
The Lewisville ISD has approved one (1) abatement. The market value: of the property
was $200 million. The abatement granted was 25% for a period of two (2) years.
The Garland ISD has provided two (2) abatements. No market value was given,
however one (1) abatement showed a declining percentage abated over a ten (10) year
period. The other abatement was a fifty (501/o) percent for fifty (50) years.
n
The Arlington ISD has also granted two (2) abatements. No market value or time
frame was provided for this study.
The Grand Prairie ISD has approved two (2) abatements. The market value of one
(1) property was $9,164,520. The abatement granted was 50% for ten (10) years.
No market value is designated for the second abatement; however it will be 50% for
an eight (8) year time period.
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TABLE I
SCHOOL DISTRICTS SURVEYED
FOI2 TAX ABATEMENTS
1. Irving ISD 12. Plano ISD
2. Lewis4ISU 13. McKinney 1SD
3' HEB ISb 14. Sherman ISD
4. Arlington IS"
15. Dennison ISD
5' prairie ISD 16. Desoto ISD
6. Fort Worth ISD 17. C-F$ JSD
7. Dallas ISD 18. `Grapevine=Coffeyville IS 1)
8• Mesquite ISD 19. Northwest ISD
9. Nand IS: D;' 20, ''Keller ISO
10. Richardson ISD 21. Denton ISD
11. Allen ISD
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TABLE II
TAX ABATEMENT STUDY - SCHOOL DISTRICTS
TAX' OTHER
NAME OF AMTEMENT #ABATEMENTS iTIFS /4B INGENT:dSS ;.FREEPORT
SCHOOL DI$TRICT pOLICX GIVEN GIVEN : ARRAtfGEM$NTS GIVEN E7KEMpTIQN
YES NO YES NO
HEB ✓ 0 0 0 0 ✓
KELLER ✓ 0 0 0 0 ✓
„ZAPEVINE-
COLLEYVILLE ✓ 0 0 0 0 ✓
SHERMAN ✓ 0 0 0 0 ✓
C-FB ✓ 1 0 0 0 ✓
DENNISON ✓ 0 0 0 0 ✓
DENTON ✓ 0 0 0 0 ✓
DESOTO ✓ 0 0 0 0 ✓
MESQUITE ✓ 6 0 0 0 ✓
ALLEN ✓ 7 0 0 0 ✓
LEWISVILLE ✓ 1 0 0 0 ✓
Garland ✓ 2 0 0 0 ✓
Arlington ✓ 2 0 0 0 ✓
Grand Prairie ✓ 2 0 0 0 ✓
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TABLE III
TAX ABATEMENTS GRANTED BY SCHOOL DISTRICTS
h NANX OF NAM OF ABATED " MARICET VAl.VF Y~AF s
p23TRICT ; CCNlFANY (Improvc anis) 4 ABATZ0 ABATED t50t~f£NTS-,
r Several years ago the District
C_F'B GTE NA NA NA granted an abatement to GTE along
with the Irving ISD as the
property crossed district
boundaries. The abatement was for
improvements only .end only land
was in C-FB.
MESQUITE 1. pop BOYS 1. $5,245,195 25% 6 1/6/88 Approved
2. Gulf state Toyota 2. $3,200,000 208 3 2/8/89 Approved
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3. AT 6 T 3. $5,477,360 308 6 11./20/89 Approved
4. AT 6 T 4. $4,900,000 308 6 10/1190 Approved
5. Medical Center 5. $5,000,000 208 5 5/20/91 Approved
of Mesquite
6. Brookshire 6. $4,500,000 208 5 11/7/94 Approved
Grocery
ALLEN 1. TRW 1. $2,059,705 1008 10
2. TRW 2. $3,358,881 100% 10
3, Quest Medical 3. $5,223,735 10018 6
4. TRW 4. $7,904,114 1008 10
5, TRW 5. $ 24,678 100% 10
6. TRW Redi 6. $ 1,200 1008 10
7, Quest Medical 7. $6,160,484 1608 6
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TABLE III
' TAX ABATEMENTS GRANTED BY SCHOOL DISTRICTS
!IAMB OF NAM OP ABATED 1lARRBT v74Y/l1t Yi:ARS N
COMPAtiT ~YmproVMU~nC~I~ ABATED J►BA1Y.D CO!lSf~tYg
DIST[tICT
LL ISVILLE 1. Frito Lay 1. $200,000,000 258 2
GARLAND 1. Varco 1. NA 508/408/ 1/2/3/ since statutory changes were
208/08 4-10 enacted in 1993, the district has
no longer abated any taxes.
2. E Systems 2. NA 503 50 Without legal change,the district
does not plan to abate in the
future.
ARLINGTON 1. General Motors 1. NA NA NA We let our policy expire after the
provisions in SB 6 placed a
2. National 2. NA NA NA penalty on school districts
semiconductor granting abatements after 5/31/93.
a
GAD PRAIRIE 1. Poly-America, inc. 1. $9,169,510 508 10 iEach case is
ndividually onaitstown merit.
2. DSC Logistics, Inc. 2. None to Date 503 8
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ANALYSIS OF TAX ABATEMENT QUESTIONNAIRES
Actual questionnaires completed by each school district can be found ai Appendix B.
While the Mesquite ISD indicates that it has a tax abatement policy, in actuality, the
~ city uses its policy. Once an abatement is requested, the superintendent of schools and
the city manager get together and determine its merits on a case by case basis.
Recommendations are then made to individual governing bodies.
The Lewisville ISD policy makes a strong statement to the taxpayers about when tax
abatement is encouraged and when it is not. At least $10 million must be contributed
to the tax base before abatement is considered.
Both the Garland ISD and Arlington ISD make a strong statement against granting
abatements in light of the penalty in state funding imposed in 1993. The Garland ISD
still maintains its policy although no abatements since 1993 have been granted. The
Arlington ISD has allowed its policy to expire, and the Grand Prairie ISD evaluates
each case individually on its own merit.
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APPENDIX A
ABATEMENT QUESTIONNAIRE
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Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district:
2. Name of person completing questionnaire:
3. Does your school district have a lax abatement policy? ❑ Yes ❑ No
If yes, please attach a copy ofyour abaten:nnt policy when you return this questionnaire.
4. Has your school district approved any tax abatements? ❑ Yes ❑ No
if yes, please complete the following chart for each company for which taxes have been
abated:
NAME OF COMPANY MARL= VALUE % OF VALUE ABATED A OF YEARS ABATED
.
5. Has your district been Involved in Tax Increment Financings MF's)? ❑ Yes ❑ No
if yes, please complete the following chart for each TIF that has been granted:
TYPE OF TIF AMOUNT OF YEARS OF
' , PROJECT FINANCED PROJECT FINANCINO
NAME OF COMPANY (I.E., ROAD, BUILDING, ETC.
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G. Has your district been involved in any 413 corporate arrangements? ❑ Yes ❑ No
if yes, please indicate the name of the companies and the nature of the arrangements on
the back d this questionnaire.
7. Has your district been involved In providing any other incentives to companies?
❑ Yes O No If yes, please list these incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? 0 Yes ❑ No
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APPENDIX B
TAX ABATEMENT
QUESTIONNAIRE RESPONSES
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Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: 9EB isD
2. Name of person completing questionnaire: Kr. Elo Nobavitza
I 3. Does your school district have a tax abatement policy? ❑ Yes U /No
If yes, please attach a copy of your abatement policy when you return this questjonnaire.
4. Has your school district approved any tax abatements? O Yes C~ No
If yes, please complete the following chart for each company for which taxes have been
abated:
NAME Or COMPANY MARKET VALUE % OF VALVE ABATED #OFYEARsABATED
5. Has your district been involved In Tax Increment Financings (TIF's)? ❑ Yes ❑ No
If yes, please complete the following chart for each TtF that has been granted:
TYPE OF TIF AMOUNT of YEARS OF
PROJECT FINANCED PROJECT FINANCING
NAME OF COMPANY (I.E., ROADS BUILDINGo ETC.)
6. Has your district been Involved in any 413 corporate arrangements? ❑ Yes No
If yes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
7. Has your dis ct been involved in providing any other incentives to companies?
❑ Yes No If yes, please list these incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? ❑ Yes W'Ro
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Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Keller 1sD
I ,
2. Name of person completing questionnaire: Mr. Ron Yagia
3. Does your school district have a tax abatement policy? ❑ Yes 0 No
If yes, please attach a copy of your abatement policy when you return this questionnaire.
4. Has your school district approved any tax abatements? U Yes 8 No
If yes, please complete the following chart for each company for which taxes have been
abated:
NAME OF COMPANY MARKET VALUE % OF VALUE ABATED TI OFYEARBABATED
5. Has your district been Involved in Tax Increment Financings (T1F's)? ❑ Yes ® No
If yes, please complete the following chart for each T1F that hC.s been granted:
TYFE of TIF AMOUNT OF YEARS OF
PnwEcT FINANCED PROJECT FINANcrxo
NAME OF COMPANY (I.E., ROAD, BUILDINO, ETC.
6. Has your district been involved in any 413 corporate arrangements? ❑ Yes ® No
if yes, please indicate the naive of the companies and the nature of the arrangements On
the back of this questionnaire.
7. Has your district been Involved in providing any other Incentives to companies?
❑ Yes ® No If yes, please list these Incentives on the back of this questionnaire.
' 8. Does your school district offer the Freeport exemption? ❑ Yes ® No
B-2
Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Grapevine-Coileyville lsD
2. Name of person completing questionnaire:- IIr. Larry Groppel
3. Does your school district have a tax abatement policy? O Yes LINO
Ifyes, please attach a copy ofyour abatement policy when you return this questionnaire.
4. Has your school district approved any tax abatements? O Yes Gr"'No
If yes, please complete the following chart for each company for which taxes have been
abatcd:
NAME OF COMPANY MARKET VALUE % OP VALUE ABATED # or YEARS ABAreD
5. Has your district been involved In Tax Increment Financings (TIF's)? U Yes No
please complete the following chart for each TIF that has been granted:
~r
TYPE OF TIF AMOUNT of YEARS OF
PROJECT FINANCED PROJECT FINANCING
NAME OF COMPANY (I.E., ROAD, BUILDING, ETC.)
6. Has your district been involved in any 413 corporate arrangements? U Yes Ur" ho
If yes, please indicate the naine of the companies and the nature of the arrangements on
the back of this questionnaire.
7. Has your dispct been Involved in providing any other Incentives to companies?
U Yes O' No if yea, please list these Incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? U Yes O No
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Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Sherman IsD
2. Name of person completing questionnaire:_ Mr. David McConkey
3. Does your school district have a tax abatement policy? O Yes ❑ No
If yes, please attach a copy ofyour abatement policy when you return this questionnaire.
y 4. Has your school district approved any tax abatements? ❑ Yes d/No
If yes, please complete the following chart for each company for which taxes have been
abated:
NAME OF COMPANY MARKET VALUE % OF VALUE ABATED OF YEARS ABATED
5. Has your district been involved in Tax Increment Financings (TIF's)? ❑ Yes No
if yes, please complete the following :hart for each TIF that has been granted:
Tym OF TIF AMOUNT OF YEARS OF
PROJECT FIxmcsD PROJECT FIxmciNa
NAME OF COMPANY (I.E., ROAD, BUILDINO, ETC.)
6. Has your district been involved in any 413 corporate arrangements? O Yes Fr/N0
If yes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
7. Has your di"ct been involved in providing any other incentives to companies?
❑ Yes W No If yes, please list these incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? 0 Yes W' No
B-4
Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Carrollton-Faraers Branch ISD
2. Name of person completing questionnaire: Mr. Mark Hyatt
3. Does your school district have a tax abatement policy? ❑ Yes U No
If yes, please attach a copy ofyour abatement policy when you return this questionnaire.
4. Has your school district approved any tax abatements? Q Yes O No
if yes, please complete the following chart for each company for which taxes have been
abated:
I
NAME OF COMPANT MARKET VALUE % of VALUE ABATED # OFYEAR9ABATED
r///l eJ0 /f[ ~sYli/
>~/r~/ F✓, ~j 1.~, ,n~I ~+-LS ~ i~ J~! e ~~o~./ ~ J ~ ii rr.-.~ ✓~e
' bo11/'.l/ j ~n[ ~~V/i^~.'1 WAi !i/ /.T/!✓✓I r.. ~'l if pr~J. I.i
5. Has your district been Involved in Tax Increment Financings (TIF's)? ❑ Yes rd'10
If yes, please complete the following chart for each TIF that has been granted:
TYPE OF TIF Amourcr OF YEARS OF
PROJECT FINANCED PROJECT FINANCING
NAME OF COMPANY (I.E., ROAD, B'JILDINO, ETC.)
6. Has your district been involved in any 413 corporate arrangements? O Yes W-IN-o
if yes, please indicate the name of the companies and the nature of the arrangements on
the baac of this questionnaire.
7. Has your dis ct been involved in providing any other incentives to companies?
❑ Yes L No If yes, please list these incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? O Yes U '-No
B-S
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Denton Independent School District
TAIL ABATEMENT QUESTIONNAIRE
1. Name of school district: Denison IsD
2. Name of person completing questionnaire; H. W. "Buddy" Holland
~ 3. Does your school district have a tax abatement policy? ❑ Yes
If yes, please attach a copy ofyour abatement oli ~o
. p cywhen youreturn this questionnaire.
4. Has your school district approved any tax abatements? ❑ Yes WINO
If yes, please complete the following chart for each company for which taxes have been
abated:
NAME OF COMPANY -MARKCT VALVE % OF VALUE ABATED ii OF YEARBASATED
5. Has your district been involved in Tax Increment Financings (TI F's)? ❑ Yes
if yes, please complete the following chart for each W that has been granted: No
TYPE of TIF AMouNT of YEAPs OF
)PROJECT FINANCED PROJECT FINANCING
NAME OF COMPANY (I,E.P ROADS GUILDINOt ETC.)
r
6. Has your district been involved in any 413 corporate arrangements? ❑ Yes No
If yes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
+ 7. Has your di Pict been involved in providing any other incenUves to companies?
❑ Yes 51 No If yes, please list these incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? l] Yes 0 No
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Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Desoto IsD
2. Name of person completing questionnaire: Dr. Marvin Judab
3. Does your school district have a tax abatement policy? ❑ Yes
Ifyes, please attach a copy ofyour abatement policy when you return this questionnaire.
4. Has your school district approved any tax abatements? 0 Yes WNo
If yes, please complete the following chart for each company for which taxes have been
abated:
NAME OF COMPANY MARKET VALVE
_ % 1F V_1LAE ABATED i1 OF YEARS ABATED
5. Has your district been involved in Tax Increment Financings CT1F's}? ❑ Yes No
If yes, please. complete the following chart for each 71F that has been granted:
TYPE OF TIP' AMOUNT OF
PEARS OF
PROJECT FutmcED PROJE
NAME OF COMPANY CT PINANC[NO
(I,E., ROAD, HVILDINO, ETC.
6. Has your district been involved In any 4B corporate arrangements? ❑ Yes No
If yes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
7. Has your disWct been Involved to providing any other incentives to companies?
0 Yes iff No If yes, please list these Incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? U Yes QrNo
B-7
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Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Mesquite iSD
2. Name of person completing questionnaire: 4k. -ways2-stza.b}ta, Mr- nn n A r h r ; ge r
It 3. Does your school district have a tax abatement policy? ® Yes ❑ No
If yes, please attach a copy ofyour abatement policy when you return this questionnaire.
4. Has your school district approved any tax abatements? 9 Yes ❑ No
If yes, please complete the following chart for each company for which taxes have been
abated: Information attached
NAME OF COMPANY MARMM VALVE % OF VALUE ABATED # OFYEARSABATED
s
5. Has your district been involved in Tax Increment Financings (TIF's)? ❑ Yes 0' No
If yes, please complete the following chart for each T1F that has been granted:
TYPE OF TIF AmoumT OF YEARS OF
r PRwEcr FINANCED PROJECT FINANCING
NAME OF COMPANY (I.E., ROAD, BUILDING, ETC.)
A
F
6. Has your district been involved in any 413 corporate arrangements? ❑ Yes S No
if yes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
s 7. Has your district been involved in providing any other incentives to companies?
O Yes A No If yes, please list these incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? ❑ Yes W( No
B-8
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316 Tax Abatement
In order to promote high quality development, the school district and City of Mesquite
agree to work together in a tax abatement program. The district will concur with the City in
granting the abatement when the guidelines and criteria have been met as listed in
Administrative Guideline 316. The City will notify the Superintendent of any proposed
abatement before it is acted on by the City. The agreement will be reviewed periodically,
a
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01/18/96 12;03 0214 289 8105 MESQUITE ISD ®001
Sh.piaQ Tomorrow fod Y
Mespsim ro 906Wset 3F*R Ma lm
7 A FAX
405 E. Davis SL • Mesquite. Texas 75149 9 214288-6411
.ATTENTION: Mr. Gilbert Bernstein
COMPUY: Denton ISD
Telephone
Fax $17-381-1093
SENDER: Don Acheiger
Telephone (214) 882-7390
Fax (214) 289-6105
You should receive ! pages, including this cover.
CONIlViENrS :
Reference 316 Administrative Guidelines
There are no written Administrative Guidelines, If the City Council
decides they vent to grant ■ tax abatement, the City Manager and the
Superintendent of Schools gat tngether and discuss it. It is then
presented to the Bnard and the Board and City Council will discuss.
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City of Mesquite
Tax Abatement Program
0 Tax Abatement program initiated in April, 1988, in accordance with Chapter 312, Texas
Property Tax Code.
• Offered as an incentive to attract new business to the city and to encourage expansion of
existing business, resulting in the creation of jobs in the community.
• Value of business property on the tax roll must be increased a minimum of $2 million to
qualify for tax abatement consideration.
• The primary criteria applied in evaluating abatement applications are the value of
proposed improvements, number of jobs created, and rrmual payroll.
e Since beginning of the program in 1988, only six tax abatement agreements have been
executed, and one of these fared to meet the terms of the agreement and received no
abatement.
• Up to 100% abatement for a period of up to 10 years is authorized, though approvals to
date have ranged from 20% for 3 years to 30% for 6 years.
• Effectiveness of program has been enhanced in the fact that MISD has joined with the
City in approving on identical terms each of the six tax abatement applications processed
to date. (City and School taxes amount to approximately 80% of the total ad valorem tax
bill.)
• Total amount of taxes abated to date is $372,000, while the amount of taxes collected
during the abatement periods on the value of improvements made to the same properties
is over $1,000,000.
-A
0 During the seven-year period since the adoption of the Tax Abatement Policy, 5 projects
valued at $25.1 trillion have been granted tax abatement, while over 3600 non-residential
projects valued at $212.5 million have been issued permits without tax abatement
consideration
B-11
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TAX ABATEMENT AGREEMENTS
Summary
CITY OF MESQUITE
(As of Apri] 1, 1995)
PEP BOYS
Project: Regional Administrative Office and Distribution Center
Value of Improvements: $5,245,691
Jobs Created: 150
Annual Payroll: $1,675,000
Approved Abatement: 25% for 6 years
Date Approved: June 6, 1988
Effective Date of Abatement: January 1, 1989
Value of Abatement to Date: $98,531.23
City $29,932.04
School $58,599.19
GULF STATES 10Y,QT
• Project: Vehicle Processing and Distribution Facility
Value of Improvements: $3,200,000
Jobs Created: 37
• Annual Payroll: $700,000
Approved Abatement: 20% for 3 years
Date Approved: February 6, 1989
Effective Date of Abatement: N/A'
Value of Abatement to Date: N/A
' Applicant failed to tweet the km of the agreement. 7be project did not result in andeipated value of Improvements and no turs
wut abated
M
Project: Expansion and Modernization
Value of Improvements: $5,477,360
Jobs Created: 303
Annual Payroll: $15,000,000
Approved Abatement: 30% for 6 years
Date Approved: November 20, 1989
Effective Date of Abatement: January 1, 1990
+ Value of Abatement to Date: $85,150.70
City $29,155.57
Scbool $55,995.13
B-12
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Tax Abatement Summary
Page 2
AT&T
Project: Expansion, Modification and Installation of Manufacturing Facilities
Value of Improvements: $4,900,000
Jobs Created: 600
Annual Payroll: $13,000,000
Approved Abatement: 30% for 6 years
Date Approved: October 1, 1990
Effective Date of Abatement: January 1, 1991
Value of Abatement to Date: $99,221.41
City $34,150.17
School $65,071.24
MEDICAL CENTER OF MESOUITI
Project: Hospital Expansion (new Open Heart Surgery Center, new Emergency
Department, Expanded Outpatient Center)
Value of Improvements: $5,000,000
Jobs Created: 100
Annual Payroll: $2,496,000
Approved Abatement: 20015 for 5 years
Date Approved: May 20, 1991
Effective Date of Abatement: January 1, 1993
Value of Abatement to Date: $9,143.88
City $2,374.80
School $6,769.08
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BROOKSHIRE GROCERY CO.
Project: Construction of Buildings
Value of Improvements: 54,500,000
Jobs Created: 135
Annual Payroll: $1,320,000
Approved Abatement: 20% for 5 years
Date Approved: November 7, 1994
Effective Date of Abatement: January 1, 1997
Value of Abatement to Date: Abatement has not begun
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j\/jESQUiTE INDEPENDENT SCHOOL DISTRICT ,uw+bb
405 East Davis, Mesquite, Texas 75149 d'
JOHN HORN, Ed. D.
` ±
Superintendent of Srho°!s
January 17,1996 ~h
Mr. Gilbert Bernstein
Denton ISD
Office of the Asst. Superintendent
for Administrative Services
P. O. Box 2387
Denton, TX 76202
Dear Mr. Bernstein:
In response to your letter dated January 11, 1996, I am returning the competed
questionnaire along with a copy of our Policy 316 Tax Abatement and a copy of the
City of Mesquite Tax Abatement Program. I hope this will help in the study you are
conducting.
Plea;,e feel free to contact me if you have any questions.
Sincerely,
Don Achziger
Associate Superintendent
Business Services
enclosures-3
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Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Allen IsD
2. Name of person completing questionnaire: Mr. Steve vest
3. Does your school district have a tax abatement policy? ❑ Yes t~ No Noy Fri ,.,9c
Ifyes, please attach a copy ofyour abatement policy when you return this questionnaire.
4. Has your school district approved any tax abatements? Gr'Yes ❑ No
if ycs, please complete the following chart for each company fur which taxes have been
abated:
NAME OF COMPANY MARM VALUE % OF VALUE ABATED A OFYEARSABATED
TRW 2,059,705 100% 10
TRW 3,358,881 100% TO
Quest Medical 5,223,735 100% 6
ThW 71904,1,14 100% 10
TRW 24,678 100% 10
TRW Redi 1,200 T00% 10
Quest Medical 6,160,484 100% 6
5. Has your district been involved in Tax Increment Financings (TIF's)? ❑ Yes No
If yes, please complete the following chart for each TIF that has been granted:
TYPE of TIF AMOUNT OF YEARS OF
PROJECT FuimcED PROJECT FINANciNo
NAME OF COMPANY (I.E., ROAD, HUILDiNO, ETC.
1
1i
6. Has your district been involved in any 413 corporate arrangements? ❑ Yes JNo
r Ifyes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
= 7. Has your district been involved in providing any other incentives to companies?
❑ Yes ❑ No If yes, please list these Incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? /Yes ❑ No
S-15
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Denton Independent School District
TAR ABATEMENT QUESTIONNAIRE
I. Name of school district: Levisvii2e ISD
2. Name of person completing questionnaire: Kr. Ton Ziaaerer
3. Does your school district have a tax abatement policy? W Yes O No
If yes, please attach a copy ofyour abatement policy when you return this questionnaire.
4. Has your school district approved any ta% abatements? 4 Yes O No
If yes, please complete the following chart for each company for which taxes have been
abated:
NAME OF COMPANY MARM VALUE fib OF VALVE ABATED #OFYEARS ABATED
FRIT0 LAY 200 MILLION 25% 2
5. Has your district been involved i*I Tax Increment Financings MF"s)? U Yes Q No
If yes, please complete the following chart for each TIF that has been granted:
TYPE of TIF AMOVNT OF YEARS OF
PROJECT FDVANCED PROJECT FINANCING
NAME OF COMPANY (I.E., ROAD, BUILDINO, ETC.)
if
i4
6. Has your district been involved in -iriy 413 corporate arrangements? O Yes ® No
R If yes, please Indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
i1 7. Hao your &striet been involved in providing any other incentives to companies?
U Yes U No if yes, please list these incentives on the back of this questionnaire.
td~ 8. Does your school district offer the Freeport exemption? iii Yes O No
~q r. 16
LEWISVILLE ISO
061901
LOCAL REVENUE SOURCES:
AO VALOREM TAXES CCG
(LOCAL)
DELINQUENT Penaltys interest, and cost of collection
TAXES to taxes paid after the shall be added
delinquency
with current legal rates, date, in accordance
The District shall fmPose an additional 15% penalty on
all taxes, Penaltys and interest due on taxes that are
delinquent on or after July 1 when It has contracted with
a private attorney for collection. This penalty shall be
secured by a tax lion. The District's tax collector shall
notify the taxpayer of the delinquency and the additional
tax penalty thirty to sixty days before July 1.
The Superintendent shell report to the Board regarding the
District's delinquent taxes and present recommendations
concerning a systm for collecting delinquent taxes.
TAX ABATEMENT The District has a responsibility under the Constitu- #
STATEMENT OF POLICY tion and laws of the State of Texas to furnish an
efficient system of public free schools In cooper-
ation with the State of Texas. The Board of
Trustees is desirous of taking appropriate action to
provide an adequate tax base per student. When
the number of students increases, more tax base Is
needed. It is not the intent of the District to
subsidize or encourage development that would
have naturally occurred in the District within five
years. Therefore, Lewisville Independent School
District will only participate In tax abatement
projects that e'sther significantly increase the
' District's per student property tax base when,
without these abatements, the proposed economic
activity would not have otherwise occurred, either
at ths'proposed level of Investment and/or at the
same location. Furthermore, in accordance with
State Lew, when the District does participate in tax
abatement projects, it shall only abate taxes on the
lnergass in value of the property generated through
the project.
ISSUED DATE: 08/17/87 ADOPTED: APR 1 2 1381 AMENDED:
a UPDATE 30 1 of A
CCG (L)A_1 a-ii
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CCG
(LOCAL)
MINIMUM PROJECT In addition to the conditions stated above, the
QUALIFICATIONS District will only consider participating In tax
abatement projects when the following minimum
prerequisites are met:
1. If a relocation/new construction project
Increases the District's per student property
tax base and the total tax base by at least
$10 million dollars, and
2. The involved firm certifies that it is an Equal
Opportunity Employer.
While a proposed tax abatement project may meet
these minimum qualifications, the District is still
under no obligation to provide an abatement.
PROJECT EVALUATION Tax abatement requests will be considered on a
GUIDELINES case-by-case basis, using the following criteria:
' AND CRITERIA
' 1. Location of proposed project.
2. Level/nature/type of projected Investments.
3. Nature of firm's business.
4. Financial stability of firm.
r 5. Relocation/expansion of firm.
6. Impact of project on local economy and on
~s the District's property tax base.
7. Ability to protect the environment and
historically significant areas/structures.
8. Prospects for alternative/compa,able
development at the proposed site without
tax abatement.
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Denton Independent School District
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TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Garland IsD
2. Name of person completing questionnaire: Ms. Lyme Rlgx
1 ,
3. Does your school district have a tax abatement policy? Yes 0 No
If yes, please attach a copy ofyour abatement policy when you return this questionnaire.
4. Has your school district approved any tax abatements? Yes ❑ No
If yes, please complete the follov, tg chart for each corn ny for which taxes have been
abated: Pe Pin 4o V? 9 3
NAME OF COMPANY MARKET VALUE % OF VALUE ABATED #OFYEAasABATBD
Varo SUJy~I3_0~20-- 10 (-Ps
~rs I Z 3 4-10
p S.
~-'Sys(PmS 5'G`7e
Stnu skims la,.~ chcv,~~c,a e,.Gc of uti. 159 3• 44--c dI sir, u( ha4 ru-u ~
a6aled 4" es. l %44\out Ie ckfL'K~c' ~~t c~tsfrccl cio~sY~o~ p(aN ~o h~E,
5. Has your district been involved in Tax Increment Financings (TIF's)? ❑ Yes No t*.{„,
If yes, please complete the following chart for each TIF that has been granted: a TTPE or TIF AMOUNT O:' YEARS OF
+ PROJECT FINANCED PROJECT FINANCING
NAME OF COMPANY (I.E., ROAD, BUILUINO, ETC.)
6• Has your district been involved in any 46 corporate arrangements? 0 Yes No
If yes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
7. Has your district been involved in providing any other Incentives to companies?
❑ Yes No if yes, please list these incentives on the back of this questionnaire.
k~ 8. Does your school district offer the Freeport exemption? ❑ Yes No
CS 8-19
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Denton Independent School District
to
TAX ABATEMENT QUESTIONNAIRE
tv
1. Name of school district: Arlington IsD
2. Name of person completing questionnaire: M6., I ,rlene Carle
I' 3. Does your school district have a tax abatement policy? ❑ Yes ,k3 No
' lfyes please attach y of ~yyo,u~r alb tement policy when you return this questionnaire.
a~iswa.r E y; 4 -Ta . -A&4A 4 4UAk a ?e".ij 411-
47Has your sc ooTI s"tIrli Ztappro~ved any tax abatement's? 4 Yes ❑ No
If yes, please complete the following chart for each company for which taxes have been
abated: Ii~iaa to 5,8 7 -Ak"444-
NAME or COMPANY MARKET VALUE fib OP VALUE ABATED #orYEARBABATED
. 1.4uR~ttaJ~ ~rru; ~Gcae~uttec
5. Has your district been involved in Tax Increment Financings (TIF's)? ❑ Yes ;d No
If yes, please complete the following chart for each TIF that has been granted;
TYPE Or TIF AMOUNT Or YEARS Or
PROJECT FINANCED PROJECT FINANCING
NAME Or COMPANY (I.E., ROAD, BUILDING, ETC.)
f
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6. Has your district been involved in any 413 corporate arrangements? O Yes 0 No
9 If yes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
ff
f 7. if as your district been involved in providing any other incentives to companies?
❑ Yes ¢4 No if yes, please list these incentives on t:Ie back of this questionnaire.
8. Does your school district offer the Freeport exemption? 0 Yes 14 No
L B-20
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Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
i~
* 1. Name of school district: Denton ISD
2. Name of person completing questionnaire: ciib rt s
~ ~ 3. Does your school district have a tax abatement policy? ® Yes U No
a lfyes, please attach a copy ofyour abatement policy when you return this questionnaire.
4. Has your school district approved any tax abatements? ❑ Yes ® No
If yes, please complete the following chart for each company for which taxes have been
abated:
NAME OF COMPANT MARKET VALUE % Or VALUsAmTED #OrYLusAaATED
8. Has your district been involved in Tax Increment Financings Mrs)? ❑ yes t8 No
If yes, please complete the following chart for each TIP that has been granted:
Trm or TIF AMotmr or Yz"s or
PRW= FINANCED PROJECT FINANCING
NAME Or COUPANT ([.E., ROAD, BUDAIROP We.)
i~
6. Has your district been involved in any 413 corporate arrangements? ❑ Yes ® No
If yes, please indicate the name of the companies and the nature of the arrangements on
the back of this questionnaire.
7. Has your district been Involved in provid+:,g any other incentives to companies?
O Yes O No If yes, please list these Incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? 13 Yes ❑ No
B-21
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Once a determination has been made that a tax abatement should be offered, the
IX
value and term of the abatement will be determined by referencing the following table:
r
i TABLE 1: Establishes maximum length of abatement according to assessed real
property value of Improvements and personal property.
fa
i
VALUE OF STRUCTURE MAXIMUM MAXIMUM
s AND PERSONAL PROPERTY ABATEM NT PERCENTAGE ABATEMENT F
100 10 25%
80 9 25%
65 8 25%
e 50 7 25%
35 6 25%
20 5 25%
' 15 4 25%
10 3 25%
5 2 254
It an existing business Is located within the boundaries of the participating
jurisdictions and decides to expand or relocate within such boundaries, the actual value
of the structure shall be multiplied by 125% prior to utilizing Table 1. If the expanding
or relocating business Is abandoning any property or improvements, within the
li
jurisdictions, the value of this abandoned property shall be subtracted from the new
r value figure prior to multiplying the value by 125%.
The tax abatement shall not apply to any portion of the land value of the project.
1!
Applicants agreeing to extend Infrastructure improvements (streets and utilities)
to improve other industrial sites which can be marketed by the Chamber of Commerce
Economic Development Director may be eligible for a greater tax benefit than those
described above by utilizing tax increment financing procedures. The offering of such
an inducement will be evaluated on a case-by-case basis dependent upon the applicant's
ability tp make available Improved Industrial sites.
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6
jj
t
V
Denton Independent School District
TAX ABATEMENT QUESTIONNAIRE
1. Name of school district: Grand Prairie ISD
2. Name of person completing questionnaire: Nih~xrl:linc~ earl H Husfeld
3. Does your school district have a tax abatement policy? ❑ Yes No
Ifyes, please attach a copy ofyour abatement policy when you return this/uestionnaire.
Each case evaluated individually, on it's own merit.
4. Has your school district approved any tax abatements? )V Yes O No
If yes, please complete the following chart for each company for which taxes have been
14 abated:
I`
NAME OF COMPANY MARM VALUE % or VALUE ABATED R oFYFARSABATED
i
IF
,t Poly-America, Inc. $9,164,510.00
501 10 years
it
DSC Logistics, Inc. None to date. 50% ' 8 years
5. Has your district been involved in Tax Increment Financings ('CIF's)? ❑ Yes No
If yes, please complete the following chart for each TIF that has been granted:
TYPE OF TIF AMoun OF YEARS OF
' PROJECT FINANCED PROJECT FINANCING
NAME OF COMPANY (I.E., ROAD, RUILDINO, ETC.)
a
e
6. Has your district been involved in any 413 corporate arrangements? U Yes No
If yes, please indicate the name of the companies and the nature of the arrangemen son
the back of this questionnaire.
1 7. Has your district been involved in providing any other incentives to companies?
U Yes X No If yes, please list these incentives on the back of this questionnaire.
8. Does your school district offer the Freeport exemption? U Yes No
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