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Home My WebLink AboutOrdinance - 2007-O0116 - Approving Participation In Texas Enterpirse Zone Program, Providing Tax Incentiv - 11/08/2007First Reading November 8, 2007 Item No. 6.4 ORDINANCE NO. 2007---00116 Second Reading November 20, 2007 Item No. 5.14 AN ORDINANCE APPROVING THE CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO TEXAS GOVERNMENT CODE CHAPTER 2303, PROVIDING TAX INCENTIVES, DESIGNATING A LIAISON FOR COMMUNICATION WITH INTERESTED PARTIES AND NOMINATING WESTX PACKAGING COMP ANY TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT & TOURISM THROUGH THE ECONOMIC DEVELOPMENT BANK AS AN ENTERPRISE PROJECT. WHEREAS, the City Council of the City of Lubbock, Texas (City) desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the City and to provide employment to residents of such area; and WHEREAS, the project or activity is located in an area designated as an enterprise zone; and WHEREAS, the City has previously-designated enterprise zones, approved by the Office of the Governor Economic Development and Tourism (EDT)'s predecessor agency, Enterprise Zone No. EZ305-090100-LN, approved September I, 2000, which will expire September 1, 2008 and Enterprise Zone No. EZ306-090100-LS, approved September 1, 2000, which will expire September I, 2008, which the City requests remain in effect until the original expiration date; and WHEREAS, the City is in compliance with Chapter 2303 of the Texas Government Code (Act), and pursuant to Subchapter F of the Act, WesTx Packaging Company has applied to the City for designation as a single Enterprise Project (Project); and WHEREAS, the City finds that WesTx Packaging Company meets the criteria for tax relief and other incentives adopted by the City on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; and WHEREAS, a public hearing to consider this ordinance was held by the City Council on November 8, 2007; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1: THAT the facts and recitations contained in the preamble ofthis ordinance are hereby found and declared to be true and correct. SECTION 2: THAT the City nominates WesTx Packaging Company for enterprise project status (single). SECTION 3: THAT the following local incentives, at the election of the governing body, are or will be made available: a) Jurisdiction-Wide: i. The City may abate taxes on Industrial projects on the increase in value of real property improvements and eligible personal property jurisdiction-wide. The level of abatement shall be based upon the extent to which the business receiving the abatement creates jobs for qualified employees, in accordance with the City of Lubbock Industrial Tax Abatement Policy, and with qualified employee being defined by the Act. 11. Freeport goods, as described in Art. 8, Sec. 1-j(a) of the Texas Constitution and Section 11.25 of the Texas Tax Code, are tax exempt pursuant to City of Lubbock Resolution No. 6142, passed December 16, 1998. b) In the Enterprise Zones: 1. The City may abate taxes on Commercial projects on the increase in value of real property improvements and eligible personal property that locate in one of the following designated enterprise zone block groups: Lubbock 2000 South Enterprise Zone until September 1, 2008 Lubbock 2000 North Enterprise Zone until September 1, 2008 EZ Block Groups: Census Tract 1.0 Block Group 1 Census Tract 1.0 Block Group 4 Census Tract 2.01 Block Group 1 Census Tract 2.02 Block Groups 1 and 2 Census Tract 3.01 Block Groups 1, 2 and 3 Census Tract 3.02 Block Groups 1, 2, 5, 7, and 9 Census Tract 6.07 Block Groups 1 and 2 Census Tract 9.00 Block Groups 1, 4 and 5 Census Tract 10.00 Block Groups I, 2, and 4 Census Tract 12.00 Block Group 1 and 7 Census Tract 13.00 Block Groups I Census Tract 14.00 Block Groups 1, 2 Census Tract 24.00 Block Groups I, 2, and 3 Census Tract 25 .00 Block Group 1 The level of abatement shall be based upon the extent to which the business receiving the abatement creates jobs for qualified employees and the amount of investment in real property improvements, in accordance with the City of Lubbock Commercial Tax Abatement Policy, and with qualified employees being defined by the Act. ii. The City may make a refund of building permit fees for businesses located in designated enterprise zones as shown in (b )i. above, in accordance with the City of Lubbock Building Permit Fee Refund Policy. SECTION 4: THAT the following enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code, Chapter 312: Lubbock 2000 South Enterprise Zone until September I , 2008 Lubbock 2000 North Enterprise Zone until September 1, 2008 EZ Block Groups: Census Tract 1.0 Block Group 1 Census Tract 1.0 Block Group 4 Census Tract 2.01 Block Group 1 Census Tract 2.02 Block Groups 1 and 2 Census Tract 3.01 Block Groups 1, 2 and 3 Census Tract 3.02 Block Groups 1, 2, 5, 7, and 9 Census Tract 6.07 Block Groups 1 and 2 Census Tract 9.00 Block Groups 1, 4 and 5 Census Tract 10.00 Block Groups 1, 2, and 4 Census Tract 12.00 Block Group 1 and 7 Census Tract 13.00 Block Groups 1 Census Tract 14.00 Block Groups 1, 2 Census Tract 24.00 Block Groups 1, 2, and 3 Census Tract 25.00 Block Group 1 SECTION 5: THAT the City of Lubbock City Council directs and designates its Capital Improvement Project Manager as the City's liaison to communicate and negotiate with the EDT through the Bank and enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. SECTION 6: THAT the City finds that WesTx Packaging Company meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: (a.) WesTx Packaging Company is a "qualified business" under Section 23 03 .402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site located in an enterprise zone in the governing body's jurisdiction and at least twenty-five percent (25%) of the business' new employees will be residents of an Enterprise Zone or economically disadvantaged individuals; and (b.) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities in the area; and (c.) The designation of WesTx Packaging Company as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. SECTION 7: THAT the enterprise project shall take effect on the date of designation of the enterprise project by EDT and terminate five (5) years after the date of designation. SECTION 8: THAT if any section, paragraph, clause or provision ofthis Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. PASS ED by the City Council on first reading this 8th day of November , 2007. PASS ED by the City Council on second reading this 20thday of November, 2007. -=o;i!;_/,;.11-1" .A:"'--- DA VIDA.MILLER, MAYOR ATTEST: D ..e..O ec, ,C ~ca:Garza City Secretary , Assistant City Development Services APPROVED AS TO FORM: ~~c:Y~k-~ Linda L. Chamales, Senior Attorney Office Practice Section le: cityatt/Linda/Ordinances/ Enterprise Zone Activation October 22. 2007 THE STATE OF TEXAS 00J'\.(L fv\L ~e1 COUNTY OF LUBBOCK -. 1 ORPl!MHC!HP'toiz.otiu Al r 1•1. • ., • , AN ORDINANCE APPROVIN Before me ,an ..,. r.eems a Notary Public in and for Lubbock Count· TJl~HcJ'l,Ht~r1c1PAr,o~ • ZCIJ'lEJ?RoGu..-,.'tlJflu~E day personally appeared Krista Ramirez of the Southwestern [g JPt~ i~H:'1ltl'o\f' ~~Wr'OING TAX INCENTIVES: Corporation, publishers of the Lubbock Avalanche-Journal -Morning, and Sunday, who being b, fN°1ifNl~UN~1J0Mf~ • N OM, N 11~ ~iRTJ.,,EJN~ did dispose and say that said newspaper has run continuously for more than fifty-two weeks pr ~~1:KAl~'/8 t~MC~Nt ro govERNOR ECONOM~~ insertion of this Legal Notice 1T~~~bii:N:~lU~~CkY~ i~~rti?:1~~ic?.ii~: As AN No. _______________ at Lubbock County, Texas anami1, ~u ...... _..: printed copy of the Legal Notice is a true copy of the original and was printed in the Lubbock : t'anche-Joumal on the folowing f "'!' _Q'.lfgi i.,., t I Rz82:::Z Jc5'.;?~ = ~ ;;!_"] \ · q_ :l, Inside Sales Manas.er LUBBOCK AVALANCHE-JOURNAL Morris Communication Corporation Subscribed and sworn to before me this FORM58-10 JAN O 7 2008 CITY SECRETARY WB~TEXAS JJ£m_ (2 ~ ;W11;wr NOT ARY PUBLIC in and for the State of Texas my commission Expires Sll/2011 J_'(\/}. day of ALAN C WEEMS Notary Public. Sta~ of Texas Mv eomrrussion Expire$ May07, 2011