R-08-11-13-12F3 - 11/13/2008RESOLUTION NO. R -08-11-13-12F3
WHEREAS, Sysco Corporation ("Sysco") has outgrown its
facilities in Round Rock and is actively investigating available
sites on which to locate its business; and
WHEREAS, the City Council desires to offer Sysco a financial
incentive package to encourage Sysco to relocate and expand its
facilities within the city limits of Round Rock; Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
In consideration for Sysco's relocating and expanding its
facilities within the city limits of Round Rock, the City Council is
prepared to enter into one or more written incentive agreements
containing the following terms:
1) A seventy-five percent (75%) ad valorem tax abatement for
ten years on new improvements and personal property
originally constructed or installed at the new Sysco
operations site.
2) A Section 380 agreement whereby economic development
program payments will be made to Sysco based upon sales
tax revenue received by the City from Sysco related sales.
Beginning with the opening of the new facility and
continuing for ten years, the City will make program
payments equal to one-quarter of the local sales taxes
collected by Sysco above Sysco's Base Year Total Sales Tax
Collections indexed by the Consumer Price Index (CPI -All
Urban Consumers). This incentive component applies to
taxable product sales made by Sysco. (Base Year is defined
0:\WDOX\RESOLUTI\R81113F3.DOC/rmc
as the full year of local sales taxes generated from
product sales immediately preceding the opening of the new
facility).
3) The City agrees to provide two traffic signal lights as
needed at the intersections of Mesa Ridge/Old Settlers and
Greenhill/Old Settlers at a cost of approximately $30,000.
4) City will support Sysco's efforts to seek a standard
property tax abatement proposal for Sysco from Williamson
County.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 13th day of November, 2008.
SARA L. WHITE, City Secretary
2
ALAN MCGRAW, Mayor
City of Round Rock, Texas
DATE: November 6, 2008
SUBJECT: City Council Meeting — November 13, 2008
ITEM: 12F3. Consider a resolution approving the general terms of a financial
incentive package to encourage Sysco to relocate and expand its
facilities within the city limits of Round Rock.
Department:
Staff Person:
Justification:
Administration
Jim Nuse, City Manager
Sysco has been in the Round Rock community for over 2 decades. They have been very
successful and need to build a new, state of the art facility. They can build it in various
communities but prefer Round Rock. This proposed agreement keeps this viable growing
company in town. Over 95% of sales tax generated by Sysco comes from outside Round Rock,
therefore they import sales tax. Additionally the current sales tax level will not be shared with
Sysco.
Funding:
Cost: N/A
Source of Funds: N/A
Outside Resources:
Background Information: N/A
Public Comment: N/A