O-89-2391 - 1/26/1989ORDINANCE NO.
AN ORDINANCE ADOPTING GUIDELINES AND CRITERIA GOVERNING
REINVESTMENT ZONES AND TAX ABATEMENT AGREEMENTS WITHIN THE
CITY LIMITS OR EXTRATERRITORIAL JURISDICTION OF ROUND ROCK,
TEXAS.
WHEREAS, the City of Round Rock must compete with other
localities across the nation currently offering tax abatements and
other incentives to attract new industry; and
WHEREAS, new jobs and industries will benefit the local ecomony,
strengthen the real estate market, and generate future tax revenue;
and
WHEREAS, pursuant to Section 312.201 of the Tax Code, V.A.T.S.,
the City may not designate an area as a reinvestment zone and may not
enter into a tax abatement agreement unless the City Council has
established guidelines and criteria governing tax abatement
agreements, and
WHEREAS, to
guidelines
achieve
and criteria
were
a coordinated effort, the following
submitted to the Round Rock Independent
School District and the Williamson County Commissioner's Court for
their review and comment;
NOW THEREFORE, BE IT ORDAINED BY THE CITY OF ROUND ROCK, TEXAS
That the following guidelines and criteria governing tax
abatement agreements within the city limits and extraterritorial
jurisdiction of the City are hereby adopted.
SECTION I.
AUTHORIZATION OF ABATEMENT
A. Economic Qualifications. In order for the owner of property
within a reinvestment zone to be eligible to receive tax
abatement, the owner must show that the planned project will:
1. be a major investment in the zone that will substantially
increase the appraised value of property within the zone;
and
2. contribute to the retention or expansion of primary and
secondary employment within the City.
C38ORDREINV
B. Creation of New Value. Abatement may be granted for only the
increased assessed value of eligible property and property
improvements made subsequent to and listed in an abatement
agreement between the City of Round Rock and the property owner
and lessee (if required), subject to such limitations as the
City of Round Rock may require.
C. Agricultural Exemptions Denied. No tax abatement shall be
granted for any property unless and until full market value
taxes have been paid for five years prior to the execution of a
tax abatement agreement.
D. Industrial Districts. No tax abatement shall be granted for any
property included in an Industrial District.
E. Eligible Property. Tax abatement agreements may exempt from
taxation all or part of the increase in the value of the
property over its value in the year in which the agreement is
executed.
F. Owned/Leased Facilities. If a leased facility is granted an
abatement, the tax abatement agreement shall be signed by both
the lessor and the lessee.
G. Value and Term of Abatement. Abatement shall be granted
effective on January 1 of the year following the date of
execution of the tax abatement agreement. The percentage of the
increase abated shall be determined in each tax abatement
agreement, however, no tax abatement agreement shall exceed five
(5) years.
SECTION II
PUBLIC HEARING AND APPROVAL
A. Prior to entering into any tax abatement agreement, the City
may, at its option, hold a public hearing at which interested
persons shall be entitled to speak for or against the approval
of the tax abatement agreement.
B. Before approving any tax abatement agreement, the City must find
that the terms of the proposed agreement meet these Guidelines
and Criteria and that:
2.
1. there will be no substantial adverse affect on the
provision of city services or on its tax base; and
2. the planned use of the property will not constitute a
hazard to public safety, health, or welfare.
SECTION III
AGREEMENT
A. In addition to the specific requirements of the 312.205, Tax
Code, the tax abatement agreement shall include the following:
1. an estimated increase to be abated and the current assessed
value of property;
2. a percent of increase to be abated each year;
3. a commencement and expiration date of abatement;
4. a proposed use of improvement, nature of construction, time
schedule, map, and property description; and
5. an estimated number of jobs involved per year for the life
of tax abatement agreement.
SECTION IV
ASSIGNMENT
A. Tax abatement agreements may be assigned to a new owner or
lessee of the improvements with the written consent of the City
of Round Rock, which consent shall not be unreasonably
withheld. Any assignment shall provide that the assignee shall
irrevocably and unconditionally assume all duties and
obligations of the assignor as set out in the agreement. No
assignment shall be approved if the assignor or assignee are
indebted to the City for ad valorem taxes or other obligations.
SECTION V
AMENDMENTS TO GUIDELINES
A. These Guidelines and Criteria are effective upon the date of
their adoption and will remain in force for two (2) years, at
which time all Reinvestment Zones and tax abatement agreements
created pursuant to its provisions will be reviewed by the City
of Round Rock to determine whether the goals have been achieved.
B. These Guidelines and Criteria are mutually exclusive of existing
Industrial District agreements.
3.
Alternative 1.
By motion duly made, seconded and passed with an affirmative
vote of all the Council members present, the requirement for reading
this ordinance on two separate days was dispensed with.
READ, PASSED, and ADOPTED on first reading this day
of , 1989.
Alternative 2.
READ and APPROVED on first reading this the day
of , 1989.
READ, APPROVED and ADOPTED on second reading this the cZ,46 day
ATTEST:
1989.
NE LAND, City Secretary
21,4 LL.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
4.
DATE:
SUBJECT:
ITEM:
January 24, 1989
Council Agenda, January 26, 1989
7F. Consider an ordinance adopting criteria
and guidelines for Reinvestment Zones.
(First Reading)
STAFF RESOURCE PERSON: Bob Bennett, Steve Sheets
STAFF RECOMMENDATION: Adopt the ordinance. The criteria was
discussed at a previous work session. The Council asked
that we visit with County Commissioners and School Board
Members to get their input. The Commissioners and the School
Board have no significant problems with the criteria. The
ordinance is required to move forward with any reinvestment
zone.
ECONOMIC IMPACT: