G-09-10-22-10A1 - 10/22/2009ORDINANCE NO. 4,001.-(0.-Z-Z-IVAI
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ROUND ROCK, TEXAS ESTABLISHING THE CITY'S
PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM
PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER
2302, TEXAS GOVERNMENT CODE; DESCRIBING AVAILABILITY
OF CERTAIN LOCAL INCENTIVES; DESIGNATING A LIAISON;
NOMINATING DRESSER, INC. AS A QUALIFIED ENTERPRISE
PROJECT THROUGH NOTICE TO THE TEXAS ECONOMIC
DEVELOPMENT BANK; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Round Rock, Texas
desires to create the proper economic and social environment to
induce the investment of private resources in productive
business enterprises located in certain areas of the City, and
to provide employment to residents of such areas; and
WHEREAS, the project or activity considered herein is not
located in an area designated as an enterprise zone; and
WHEREAS, pursuant to the Texas Enterprise Zone Act,
V.T.C.A., Government Code, Chapter 2303 (the "Act"),
specifically in accordance with Section 2303.404, Subchapter F
of the Act, Dresser, Inc. has applied to the City for
designation as an enterprise project;
WHEREAS, the City finds that Dresser, Inc. meets the
criteria for incentives adopted by the City on the grounds that
it will be located at a qualified business site, that being 3814
Jarrett Way, Austin, Texas 78728-1212, and 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 October 22, 2009; Now, therefore
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND
ROCK, TEXAS:
Section 1
The City hereby nominates Dresser, Inc. for enterprise
project status.
Section 2
In accordance with V.T.C.A., Government Code, Section
2303.4051, the City hereby identifies and summarizes
local
incentives that, at the election of the governing body, are or
may be made available to Dresser, Inc.:
A. Tax abatement, deferral, refunds, or other tax
incentives: The City may offer tax abatements for new business
construction and existing industry expansions, as well as
personal property tax abatements associated with real property.
The level of abatement is based upon the extent to
business receiving the abatement creates jobs for
employees, in accordance with the City's Tax
Guidelines, with "qualified employee" being defined by
which the
qualified
Abatement
the Act.
B. Programs to improve and increase value of real estate
and new investment: The City may provide programs to improve
and increase the value of real estate and new investment,
including:
(1) Freeport Tax Exemption
(2) Foreign Trade Zones: The City was instrumental
in the formation of the Foreign Trade Zone of Central Texas.
Foreign trade zones are areas where foreign and domestic
merchandise is generally considered to be in international trade
and, as such, goods can be brought into a zone without formal
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U.S. Customs entry or incurring duties or excise taxes, unless
and until they are imported into the United States.
(3) Chapter 380 Grants
C. Regulatory relief: The City may provide regulatory
relief to businesses, including:
(1) Zoning changes or variances
(2) Reductions or exemptions from inspection fees
(3) Streamlined permitting
D. Enhanced municipal services: The City may provide
enhanced municipal services to businesses, including:
(1) Improved police and fire protection
(2) Institution of community crime prevention
programs
(3) Special public transportation routes or reduced
fares
E. Improvements in community facilities: The City may
provide improvements in community facilities, including:
(1) Capital improvements in water and sewer
facilities
(2) Road repair
(3) Creation and improvement of parks
F. Improvements to housing: The City may provide
improvements to housing, including:
(1) Low-interest loans for housing rehabilitation,
improvement, or new construction
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G. Business and industrial development services: The
City may provide business and industrial development services,
including:
(1) Creation of special permitting processes and
programs
(2) Promotion and marketing services
H. Job training and employment skills programs: The City
may provide, through its funding of other agencies, job training
and employment services, including:
(1) Retraining programs
(2) Literacy and employment skills programs
(3) Vocational education
(4) Customized job training
Section 3
In accordance with V.T.C.A., Government Code, Section
2303.204, the City Council hereby directs and designates its
director of economic development for the Round Rock Economic
Development Partnership as the City's liaison to oversee
enterprise projects it has nominated and to communicate and
negotiate with the Texas Economic Development Bank or the Texas
Economic Development and Tourism Office within the Office of the
Governor, with the enterprise project, and with other entities
in an enterprise zone or affected by an enterprise project,
including a qualified business, within the jurisdiction of the
City.
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Section 4
The City Council hereby finds that Dresser, Inc. meets the
criteria for designation as an enterprise project under the Act
on the following grounds:
A. Dresser, Inc. is a "qualified business" under Section
2303.402 of the Act;
B. There has been and will continue to be a high level of
cooperation between public, private, and neighborhood entities
in the area;
C. The designation of Dresser, 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 5
The enterprise project shall take effect on the date of
designation of the enterprise project by the Texas Economic
Development and Tourism Office within the Office of the
Governor, and shall terminate on the same date five (5) years
therefrom.
Section 6
This Ordinance shall be and become effective immediately
upon and after its proper passage and approval.
The City Council hereby finds and declares that written
notice of the date, hour, place and subject of the meeting at
which this Ordinance was adopted was posted and that such
meeting was open to the public as required by law at all times
during which this Ordinance and the subject matter hereof were
discussed, considered and formally acted upon, all as required
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by the Open Meetings Act, Chapter 551, Texas Government Code, as
amended.
READ and APPROVED on first reading this the day of
, 2009.
y�}READ, APPROVED and ADOPTED on second reading this the
2)1 day of , 2009.
ATTEST:
/1(1,t/L- (atte
SARA L. WHITE, City Secretary
ALAN MCGRAW, Mayor
City of Round Rock, Texas
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DATE: October 15, 2009
SUBJECT: City Council Meeting — October 22, 2009
ITEM: 10A1. Consider an ordinance establishing the City's participation in the Texas
Enterprise Zone Program and nominating Dresser, Inc. as a qualified enterprise
project. (First Reading)
Department: Administration
Staff Person: Jim Nuse, City Manager
David Kautz, Assistant City Manager/CFO
Justification:
Dresser, Inc. (Dresser Wayne), located in Round Rock, designs and makes products for the gas dispenser
market. The company also develops and markets software to support the gas dispenser industry. With
annual product sales of $245 million and 633 total employees (including 197 contract and temporary
employees), the company is a major employer for Round Rock.
The company has a critical need to improve operating efficiencies and has identified approximately $7.5
million in future capital improvements to its plant location that will help in this regard.
Under a state Enterprise Zone program administered by the Texas Economic Development Bank, a
portion of state sales tax paid for applicable capital expenditures could be refunded to the company if
the company retains jobs in our community.
Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures.
The level and amount of refund is related to the capital investment and jobs created (or retained as
defined under the program rules) at the qualified business site.
Local communities must nominate a company as an Enterprise Project in order to participate in the
Enterprise Zone Program. Communities may nominate projects, for a designation period up to five
years, non-inclusive of a 90 -day window prior to the application deadline. Employment and capital
investment commitments must be incurred and met within this timeframe.
Projects may be physically located in or outside of an Enterprise Zone.
• If located within a zone, the company commits that at least 25% of their new employees will
meet economically disadvantaged or enterprise zone residence requirements.
• If located outside of a zone, the company commits that at least 35% of their new employees will
meet economically disadvantaged or enterprise zone residency requirements.
Under limited statutory provisions, an enterprise project designation may be granted for job retention
and this designation may supersede the 35% economically disadvantaged requirement mentioned
above.
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Strategic Plan Relevance
City support of and participation of this program is in complete compliance with the Council's Strategic
Plan Highest Priority Goal 16: Develop financial capital needed to support business growth and
development, and improve the financial advantages of operating in the City. To achieve this goal the
City, in partnership with the Chamber of Commerce, will pursue venture capitalists as well as various
state and federal funding sources.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources:
Background Information:
Public Comment:
A required public hearing is being held earlier in the meeting on Oct. 22