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HomeMy WebLinkAboutResolution - 2020-R0080 - Texas Enterprise Zone Program - Tyler Technologies - 02/25/2020 Resolution No. 2020-R0080 Item No. 8.15 February 25, 2020 RESOLUTION WHEREAS, on November 21, 2013 the City of Lubbock (City) previously passed Ordinance No. 2013-00108 electing to participate in the Texas Enterprise Zone Program, a copy of which is attached and incorporated as if fully set forth herein. The local incentives offered under this resolution are the same on this date as were outlined in Ordinance No. 2013-00108; and WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), Tyler Technologies, Inc. has applied to the City for designation as an enterprise project; and WHEREAS, the Office of the Governor Economic Development and Tourism (EDT) through the Economic Development Bank will consider Tyler Technologies, Inc. as an enterprise project pursuant to a nomination and an application made by the City; and WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones, to Veterans, and to economically disadvantaged individuals; and WHEREAS, the City finds that Tyler "Technologies, Inc. meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: (1) Tyler Technologies, Inc. is a "qualified business" under Section 2303.402 of the Act since it is engaged in the active conduct of a trade or business at a qualified business site located in an enterprise zone and at least twenty-five percent (25.0%) of the business' new employees are residents of an enterprise zone, or Veterans, or economically disadvantaged individuals; and (2) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and (3) The designation of Tyler Technologies, Inc. as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area; and WHEREAS, the City finds that Tyler Technologies, Inc. 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 retain a higher level of employment, economic activity and stability; and, the City finds that it is in the best interest of the City to nominate Tyler Technologies, Inc. as an enterprise project pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: 1. THAT the findings of the City and its actions approving this resolution taken at the council meeting are hereby approved and adopted; 2. THAT the City finds that Tyler Technologies, Inc. is a "qualified business", as defined in Section 2303.402 of the Act and meets the criteria for designation as an enterprise project, as set forth in Section 2303, Subchapter F of the act; 3. THAT the enterprise project shall take effect on the date of designation of the enterprise project by the EDT and terminate five years after the date of designation; and 4. THAT pursuant to Tyler Technologies, Inc. application for designation as an enterprise project and the above findings, the City hereby nominates Tyler Technologies, Inc. to the Office of the Governor Economic Development and "Tourism through the Economic Development Bank as an enterprise project pursuant to the Act; and the City's Designated Liaison is authorized to submit an application and nomination on behalf of Tyler Technologies Inc. PASSED BY THE CITY COUNCIL ON 25th day o ebruai , 2020. Daniel Pope, Mayor ATTEST: Rebe ca Garza, City Secrk ary APPROVED AS TO CONTENT: Blu Kostelich, Chief Financial Officer 1' OVED AS TO FORM: elli Leisure, Assistant City Attorney Ros.I;RY TVICI-Tech 02.06.20 First Reading Second Reading i November 7,2013 November 21,2013 Item No.6.2 ORDINANCE NO. Item No. 5.4 j 2013-00108 AN ORDINANCE AMENDING ORDINANCE NO. 2007-00116 REGARDING TME CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO TEXAS GOVERNMENT CODE CHAPTER 2303, BY REVISING THE LIST OF ENTERPRISE ZONE BLOCK GROUPS, EXPANDING THE LIST OF TAX INCENTIVES, DESIGNATING A LIAISON FOR COMMUNICATION WITH INTERESTED PARTIES AND NOMINATING X-FAB TEXAS, INC. TO TIME OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT & TOURISM THROUGH THE ECONOMIC DEVELOPMENT BANK AS AN ENTERPRISE PROJECT. I 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 City Council of the City of Lubbock desires to amend Ordinance 2007-00116, the ordinance approving the City's participation in the Texas Enterprise Zone Program, by updating the enterprise zone block groups to the most current census and by expanding the list of tax incentives;and WHEREAS, the City is in compliance with Chapter 2303 of the Texas Government Code (Act), and pursuant to Subchapter F of the Act, X-FAB TEXAS,INC has applied to the City for designation as a single Enterprise Project (Project);and WHEREAS, the project or activity is located in an area designated as an enterprise zone; and WHEREAS, the City finds that X-FAB TEXAS, INC. 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, the City finds that a notice that a public hearing would be held prior to the amendment of the ordinance regarding the City's participation in the Texas Enterprise Zone Program and stating the date, time and location of the hearing; the provisions for any tax or other incentives applicable to the enterprise zone program; the name of the qualified business whose project is being nominated for enterprise project designation; and the location of the qualified business site; was published not later than the seventh calendar day before the date of the hearing and a copy of the notice was sent to the Office of the Governor, and WHEREAS, a public hearing to consider this ordinance was held by the City Council on November 7,2013;NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT,Ordinance No. 2007-00116 is amended to read as follows: "SECTION 1: THAT the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2: THAT the City nominates X-Fab Texas, Inc. 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 i with the City of Lubbock Industrial Tax Abatement Policy, and with qualified employee being defined by the Act. ii. Freeport goods, as described in Art. 8, Sec. i j(a) of the Texas i 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. ' iii. Zoning ordinances of the City may be amended in such a manner as to promote economic development. iv. The Zoning Board of Adjustment may grant a variance or a special exception for a particular property on a case-by-case basis. v. Three Tax Increment Finance Reinvestment Zones have been established within the City. I I vi. As a part of its ongoing capital improvements program, the City replaces and upgrades its water and sewer infrastructure as required. vii. The City has an ongoing park improvement project relating to playgrounds and pavilions. viii. Annual maintenance and repair of roads citywide is provided through an ongoing capital improvements program. ix. The City has a Community Development program funded from J Community Development Block Grants and the HOME program for granting low interest loans for housing rehabilitation or new construction. J x. Lubbock Economic Development Alliance (LEDA), the City's � 4A economic development sales tax corporation, and Market l Lubbock Economic Development Corporation (Market Lubbock), which is funded almost entirely by the City of Lubbock, provide marketing and promotion services for the City to targeted businesses. i xi. LEDA, the 4A Economic Development Corporation for Lubbock, and Market Lubbock work with new and existing businesses, as part of their programs, to provide job training and job creation incentives to eligible companies on a case-by-case basis. xii. The City participates in Workforce Solutions South Plains, the local workforce development board, to provide job training, re- training,and employment services for local employers. b) In the Enterprise Zones: i. 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: EZ Block Groups: Census Tract 2.01 Block Group I and 2 Census Tract 2.02 Block Group I Census Tract 3.01 Block Groups 1,2 and 3 Census Tract 3.02 Block Groups 1,2,4,and S Census Tract 6.07 Block Groups 1 and 2 Census Tract 9.00 Block Groups i and 4 Census Tract 10.00 Block Groups 1, 2,and 3 Census Tract 12.00 Block Group 2 and 3 Census Tract 13.00 Block Groups 1,2,and 3 Census Tract 14.00 Block Groups 1,2,3,4,and 5 Census Tract 23.00 Block Groups 1 and 2 Census Tract 24.00 Block Groups 1,3,4,and 5 i 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. iii. The City may under appropriate circumstances sell real property f owned by the municipality and located in the enterprise zone in accordance with Texas Local Government Code Section �! 2303.513. SECTION 4: THAT the following enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code,Chapter 312: EZ Block Groups: i Census Tract 2.01 Block Group 1 and 2 Census Tract 2.02 Block Group 1 Census Tract 3.01 Block Groups 1,2 and 3 i Census Tract 3.02 Block Groups 1,2,4,and 5 Census Tract 6.07 Block Groups 1 and 2 Census Tract 9.00 Block Groups 1 and 4 Census Tract 10.00 Block Groups 1,2, and 3 Census Tract 12.00 Block Group 2 and 3 Census Tract 13.00 Block Groups 1, 2,and 3 Census Tract 14.00 Block Groups 1,2, 3,4,and 5 Census Tract 23.00 Block Groups 1 and 2 Census Tract 24.00 Block Groups 1, 3,4,and 5 SECTIONS: THAT the City of Lubbock City Council directs and designates its Executive Director of Budget 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. i SECTION 6: THAT the City finds that X-Fab Texas, Inc. meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: (a.) X-Fab Texas,Inc. is a"qualified business"under Section 2303.402 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 X-Fab Texas, Inc. 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 S: THAT if any section, paragraph, clause or provision of this 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." PASSED by the City Council on first reading on—November 7 , 2013. PASSED by the City Council on second reading on November 21 , 2013. I e Karen Gibson, Ma�or Pro Tern ATTEST: eecca Garza Cit, Secretary APPROVED AS TO CONTENT: 640-Aj Cheryl Arock,Executive Director of Budget APPROVED AS TO FORM: Linda L. Chamales, Economic Development Attorney le cigaulindalordin:mces/Cnlerpnse Zone Actimion Amendment doc Ocloba 30,2013