HomeMy WebLinkAboutResolution - 2197 - Adopt Policy - Economic Development Incentive - Special Assistance To Industries - 11_21_1985Resolution #2197
November 21, 1985
Agenda Item #19
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A RESOLUTION ESTABLISHING A POLICY OF THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS RELATING TO SPECIAL ASSISTANCE TO INDUSTRIES FOR THE
PURPOSES OF ENHANCING THE ECONOMIC BASE OF THE CITY OF LUBBOCK, TEXAS.
WHEREAS, the City Council believes that the enhancement of the economy
of the City of Lubbock is in the best interests of its citizens; and
WHEREAS, certain advantages are available by State Law that may be
applied to prospective companies or businesses that may stimulate those
companies or businesses to bring their facilities to the City of Lubbock or
to an existing company in the City of Lubbock to expand its business and
thereby provide additional jobs; and
WHEREAS, there are certain criteria that should be met both to assure
compliance with the law and to assure that the general economic health of
the City will be improved; and
WHEREAS, the Council is interested in indicating its willingness to
consider the following economic incentives under certain circumstances:
1. Tax Increment Financing
2. Urban Renewal Tax Increment Financing
3. Tax Abatement
4. Industrial Development Bonds
5. Contribution of Infrastructure
6. Urban Development Action Grant
7. Other incentives that may become available.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK, TEXAS, that the following criteria shall be used by the City
Council in determining whether or not assistance will be offered to a
business.
1. The proposed business must clearly add to the economic base of
the City. In determining compliance with this criterion, the
company must show that additional jobs are being provided and
that the jobs being proposed will not simply displace other
similar jobs in the community.
2. The geographic location of the business or industry must meet all
relevant legal guidelines.
3. Favorable consideration will be given to those businesses or
industries where other affected taxing jurisdictions have been
contacted and have indicated their approval.
4. Additional consideration will be given according to responses on
the following:
a. How many new jobs will be created?
Rating: 1 to 10 new jobs - 10 points
11 to 20 new jobs - 15 points
21 plus new jobs - 25 points
b. How much annual payroll will be generated?
Rating: $100,000 to $500,000 - 10 points
$500,001 to $800,000 - 15 points
$800,001 plus - 25 points
C. How much property tax base is added?
Rating: $500,000 to $1,000,000 - 5 points
$1,000,001 to $2,000,000 - 10 points
$2,000,001 plus - 20 points
d. What is the ratio of private equity invested to the value of
the public program to be applied?
Rating: 1:3 ratio - 5 points
1:2 ratio - 10 points
1:1 ratio - 20 points
e. Does the new business or industry provide training programs
to encourage upward job mobility?
Rating: Minimal - 3 points
Moderate - 5 points
High - 10 points
BE IT FURTHER RESOLVED THAT in addition to the desired affirmative
responses on questions 1 through 4, application scores shall be rated as
follows:
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60 points or less - minimally acceptable (eligible for no funding or
partial funding)
61 to 80 points - moderately acceptable (eligible for partial to
full funding)
80 plus points - acceptable (eligible for full funding)
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Failure to meet the standards noted above will not preclude projects from
qualifying in situations involving extenuating circumstances.
Passed by the City Council this 21St day of November , 1985.
ATTEST:
tt& Boyd, City Secretary
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APPROVED AS TO CONTENT:
Robert Massengale, Asfiistant City Manager
APPROVED AS TO FORM:
o n C. Ross, Jr., City Attorney
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