HomeMy WebLinkAboutResolution No. 2008-53RESOLUTION NO. R2008-53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF FRIENDSWOOD, TEXAS, APPROVING
AMENDMENTS TO THE CITY OF FRIENDSWOOD'S
CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM
POLICIES AND PROCEDURES.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS:
Section 1. That amendments to the City of Friendswood's Chapter 380 Economic
Development Program Policies and Procedures, a true and correct copy of which is
attached hereto as Exhibit "A" are hereby adopted by the City Council of the City of
Friendswood, Texas.
Section 2. That the City Council hereby affirms that it will consider applications
for Chapter 380 economic development incentives, in accordance with State law, and
instructs the City's Economic Development Coordinator to receive and process such
requests in accordance with the Policies and Procedures adopted hereby.
PASSED, APPROVED, AND RESOLVED this the 16th day of June, 2008.
D vid J.H. Smi
Mayor
ATTEST
Melinda K. Welsh
Deputy City Secretary O� FR, iv
A.
LZ o
C� G
OF
Chapter 380 Economic Development Program
Policies and Procedures
Effective October 21, 2002
I. General Statement of Purpose and Policy
The City of Friendswood is committed to the promotion of quality
development in all parts of the city and to an ongoing improvement of the
quality of life for its citizens. The City has previously developed economic
development programs and incentives designed to encourage expansion and
relocation of businesses in the city. Now the City seeks to enhance its
economic development efforts to stimulate commercial activity and to attract
quality development by establishing these Chapter 380 Economic
Development Program Policies and Procedures.
These Policies and Procedures are established in an effort to develop and
expand the local economy by promoting and encouraging development and
expansion of businesses and industries that enhance the City's economic
base and diversify and expand job opportunities. The ultimate goals and
public purposes of programs established hereunder are to stimulate and
diversify the local economy, reduce unemployment, and protect and enhance
the City's fiscal ability to provide high quality municipal services to
Friendswood residents.
In furtherance of these objectives, the City of Friendswood will, on a case -
by -case basis, give consideration to providing economic incentives to
business applicants in accordance with these Policies and Procedures as
authorized by Chapter 380 of the Texas Local Government Code, as
amended from time to time.
Nothing in this document is intended to imply or suggest that the City of
Friendswood is under any obligation to provide economic incentives to any
applicant. All applicants shall be considered on a case -by -case basis. The
decision to approve or'deny economic incentives shall be at the discretion of
the Friendswood City Council. Each applicant granted economic incentives
from the Chapter 380 Economic Development Program (also referred to as
Program) under these Policies and Procedures must enter into an agreement
with the City of Friendswood containing all terms required by these Policies
and Procedures and state law, or as deemed necessary and appropriate by the
City Council.
II. Definitions
A. Agreement. A contractual agreement between an applicant and the
City for the purpose of an economic incentive.
B. Business. A commercial enterprise that operates and conducts
business for profit.
C. Business Personal Property. Property used by a business and
which is not real property, and excluding inventory.
D. City. The City of Friendswood, Texas, and all its governing and
operating bodies.
E. Council. The City Council of the City of Friendswood, Texas.
F. Expansion. The addition of improvements and business personal
property subject to ad valorem taxes to an existing facility, but
excluding inventory.
G. Facility. Improvements which, when completed, together
comprise an integral whole.
H.Improvement. A building, structure or fixture erected on or
affixed to land.
I. Incentive. Any City participation or contribution permissible
under Chapter 380, as amended, of the Texas Local Government
Code.
J. Modernization. The replacement or upgrading of existing
facilities, which increases the productive input or output, updates
the technology, substantially lowers the unit cost of operation, or
extends the economic life of the facility. Modernization may result
from the construction, alteration, or installation of improvements.
It shall not be for the purpose of reconditioning, refurbishing,
repairing, or completion of deferred maintenance.
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K. Project. A business and/or facility that is to be considered for an
economic incentive.
L. Real Property. Shall mean land and all permanent improvements
constructed or erected on the land.
III. Program Requirements For Incentive Consideration
A. Incentives may be granted for new facilities, expansion or modernization
of existing facilities that add new taxable values to the ad valorem tax rolls,
and to businesses renovating or occupying existing facilities within the city
limits of Friendswood. To be considered for incentives as a Chapter 380
Economic Development Program under these Policies and Procedures, a
project must at least meet the following minimum requirements below.
B. Incentives established under this Program shall be provided only to the
extent that the revenue realized by the City and attributable to a project
exceeds a minimum amount established by the Agreement. The public
benefit or amount of revenue realized by the City and attributable to the
project must be commensurate with value of any incentives granted under
this Program.
For Basic Industries and Office Proiects:
1. New Capital Investment Incentive: A project may be
considered if it will:
a. result in a minimum increased taxable value in Real and
Business Personal Property for the City of $1,000,000
for a new business relocating to Friendswood; or
b. result in a minimum increased taxable value for the
City of $500,000 of Real and Business Personal
Property for an existing business established and
operating within the city limits.
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For Proiects That Will Occupy Existinz Facilities:
2. Renovation and Improvement of Existing Facilities
Incentive: A project may qualify by demonstrating that it
will:
a. be a business undertaking a new lease of a minimum of
25,000 square feet of existing single -tenant space from
an unrelated third party; and
b. provide justification for incentives based upon
• the type and number of jobs to be created or
retained;
• additional revenues created for the City from sales
tax and tax on Business Personal Property and
inventory;
• the business is listed as a target industry for the city
(Attachment A);
• the market conditions and growth potential for the
business activity; or
• any combination of the above.
For New Retail Proiects:
3. New Retail: A retail business project may be
considered under the Program if:
a. the type of business is a retail business listed as a
target industry for the city (Attachment A); and
b. it will result in new Real Property and Business
Personal Property, excluding inventory, of at least $1
million.
Downtown Zone Proiects:
4. New Projects or Renovation of Existing Facilities:
a. result in a minimum increased taxable value for the
City of $250,000 of Real and Personal Property within
the downtown district zone (see boundaries map).
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Other Proiects:
5. Any other project may be considered if it is specifically
determined by the Community and Economic
Development Committee and City Council to bring
extraordinary benefit to the City consistent with this
policy.
IV. Types of Economic Incentives
A. Grant incentives offered under these Policies and Procedures may be
utilized for:
a. relocation assistance;
b. land and/or building acquisition costs;
c. building improvements or renovation;
d. utility line extension/connections;
e. payment of water and sewer impact fees;
f. extension of public roads;
g. drainage improvements;
h. downtown zone improvements - paved sidewalks,
facades, street lighting, signage, benches; or
i. any other purpose approved by City Council.
B. Depending upon the number of employees, wage levels, capital
improvements, inventory, and type of business, other types of incentives
allowed by Chapter 380, Texas Local Government Code, as amended from
time to time, may be considered.
V. Denial of Incentives
1. All eligible applications for incentives shall be considered on a
case -by -case basis as set forth herein, and the decision to
approve or deny any incentive shall be made at the discretion of
the City Council.
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2. A project shall not be eligible for incentives if a building permit
has been requested for the project prior to making application in
accordance with these Policies and Procedures.
VI. Application Process
A. Required Information: In order for the City to evaluate a request for
economic incentive and to determine the level at which an applicant
qualifies for incentives, the applicant shall complete a Project Impact
Worksheet (Attachment B) which will be used to perform an economic
impact analysis for the proposed project. Additional information may be
included to further describe the project and may be required to provide a
comprehensive evaluation. Businesses are encouraged to include any
information regarding ancillary benefits associated with the project such as
the ability of the project to attract other projects to the city.
B. Application Submittal: Completed application should be submitted to
the Economic Development Coordinator, City of Friendswood, 910 S.
Friendswood Drive, Friendswood, Texas 77546.
C. Application Review: Upon receipt of completed application, the
Community and Economic Development Committee will review the
application and make a recommendation for approval/denial to City Council.
VII. Approval of Incentives: Upon approval of any incentives
authorized by City Council, before the City of Friendswood's
incentive grant will be made to the applicant, the applicant shall
complete and fulfill:
a. the basis upon which the incentives were considered,
i.e. by creating new capital investment,
renovating/improving an existing building, etc.; and
b. shall be a member of the Friendswood Chamber of
Commerce.
Col
Attachment A - Last Update10/02/02
City Wide Target Industry List
CITY WIDE
NAICS Code
Short Title
SIC Code
3254
Pharmaceutical and Medicine Manufacturing
283
334
Computer & Electronic Product Manufacturing
or Assembly
3364
Aerospace Product and Parts Manufacturing
372
3391
Medical Equipment and Supplies
Manufacturing
2599, 382,
384, 385,
5995
42
Wholesalers
51
442
Furniture and Home Furnishing stores
5712
443
Electronics and Appliance stores
5722
448
Clothing Apparel department stores
5651
452
General Merchandise stores
5311
513
Telecommunications
481
514
Information and data processing services
4812, 4899
514191
On -Line Information Services (internet access
and service providers)
7375
51421
Data Processing Services
7374, 7379,
7389
52
Finance & Insurance (Corporate Headquarters
Only)
63
54
Professional, Scientific & Technical Services
54133
Engineering Services
8711
5417
Scientific Research and Development Services
56142
Telephone Call Centers
621-622
Health Care Offices, Hospitals, Outpatient
Clinics
71
Arts, Entertainment, and Recreation
712
Museums, Historical Sites and Similar
Institutions
8412, 8422,
7999
721110
Hotel and Conference center
7011
72210
Full -service Restaurants — dine -in only with no
drive -through lane, pay after you eat
Attachment B
Date
PROJECT CONTACT
Name
Address
INCENTIVE WORKSHEET
PROJECTS
OFFICE OF ECONOMIC DEVELOPMENT USE
THIS SECTION
Project Name
Given
GENERAL PROJECT DATA
Company Name
Location
Address
Company
Phone
Fax
E-Mail
Mobil
Web Address
New Construction Y N
Expansion Y N
Type of Circle One: Corporation Partnership Renovation to
Business Proprietorship Other Existing Building Y N
Real Property If Relocation list
Legal Descrip current location:
County
Tax Acct #s
Primary Type of
Product or Service
Anticipated Open Date
NAICS
Circle One: R&D Hqtrs. Wholesale
Basic Industry Office Retail Other
SALES AND INVENTORY
Estimated Annual
Sales by Facility
Percent Subject
to Local Sales
Tax
Year 1 $ %
At Full Operation $ (year) %
Estimated Annual
Growth (percent)
Estimated Annual
Purchases of
Operating items Inventory
Subject to Local
Sales Tax
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FACILITY AND CONSTRUCTION INVESTMENT
Percent Subject to
Estimated construction start date Amount Local Sales Tax
Estimated Construction Material Purchases: $ %
Estimated New Furniture and Equipment Purchases: $ %
Est. $ of Operating Purchases from Local Service Firms
Anticipated
Size of
Facility (Square Feet)
Year 1
Year 2
Year 5
Lease Terms
Lease Dates
UTILITY IMPACT
Value of Property before Improvements
Business
Personal
Land Real
Investment in Improvements and Bus. Personal Property
Business Personal
Land Real
Water Sewer
Average monthly
usage by the facility: Gal Gal
Investment needed for
the new facility: $ $
EMPLOYMENT CHARACTERISTICS
Total Number of
Employees
Year 1
At Full Operation
Percent Annual
Growth %
By
Type Employee Percentage
Executive % $
Professional % $
Administrative
Technical
Skilled Trades
Semi -Skilled
Trades
Unskilled Trades
% $
% $
% $
% $
% $
Total Facility Payroll 1 $
Number of Jobs Retained/Created in Friendswood
Number of Annual Visitors:
Average Duration of Stay:
I_1
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OUTLINE FOR IMPACT STATEMENT OF BUSINESS
I. Information about the Business
a.
History
b.
Ownership
C.
Divisions/locations
d.
When, where you started
e.
State of organization
f.
Directors and Officers
g. Provide copy of annual report/submission to Dun & Bradstreet
II. Reasons for economic development incentives. Include any special
considerations.
III. Describe the project
a. Facts about the proposed site (acreage, cost, location, ownership, and
proposed use).
b. Submit map of metes and bounds or other valid legal property description
of the property.
C. Type and value of proposed improvements (budget, list of fixed in place
equipment to be included in the project).
d. Project timeline --construction start date and end date.
e. Environmental impact information must be provided, noting any
anticipated impacts of the project on the environment, including, but not
limited to storm water runoff, floodplains location, wetlands impact,
waste(s) generated, hazardous waste/hazardous substances/regulated
substances used or generated, noise levels, and state and federal
environmental permits and registrations held or required.
f. All other governmental assistance/incentives being requested or already
approved for the project, (e.g. SBA loan, Freeport Tax Exemption).
IV. Jobs
a. Provide information on current level of employment, including: (1) current
payroll; and (2) breakdown of current employment by zip code. Attach a
copy of the company's most recent filing with the Texas Workforce
Commission or other supporting documentation that can be used to
determine actual employment level at time of application.
b. Provide information on the projected job creation associated with the
project, including: (1) new employee needs; e.g. skilled vs. non -skilled,
level of education, experience, etc; (2) proposed pay scale; (3) any training
which the company will provide to its new employees; (4) upward
mobility opportunities, career tracks, etc. available to less educated and
experienced workers; and (5) if this is a consolidation, information on
number of "new hires" vs. "transfers."
C. Provide information on construction jobs to be created by project.
d. Provide statement of commitment to equal opportunity hiring.
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V. Competition with local business
a. List any competition or similar businesses in the area.
VI. How will this project attract new business?
VII. Provide information on alternative site considerations/and incentives being
offered the company.
VIII. If leasing property, please attach copy of lease. If company owns or is
purchasing land, please attach copy of deed or executed contract -option to
purchase.
APPLICATION WILL NOT BE CONSIDERED COMPLETE UNTIL
ALL THE REQUIRED INFORMATION HAS BEEN SUBMITTED
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