HomeMy WebLinkAboutR16-351304
RESOLUTION NO. R16-351
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW,
TEXAS ADOPTING GUIDELINES AND CRITERIA FOR GRANTING TAX
ABATEMENTS IN REINVESTMENT ZONES DESIGNATED WITHIN THE
CITY LIMITS OF THE CITY OF PLAINVIEW, TEXAS; AND PROVIDING
THAT THIS RESOLUTION SHALL BECOME EFFECTIVE FROM AND
AFTER ITS PASSAGE AND ADOPTION.
WHEREAS, the creation and retention of job opportunities that bring new wealth is
of the highest civic priority; and
WHEREAS, new jobs and long-term investment will benefit the area economy,
provide needed opportunities, strengthen the real estate market, generate tax revenue,
support local services, and generally, enhance the economic base of the City of Plainview,
Texas; and
WHEREAS, the City must compete with other localities across the nation currently
offering tax inducements to attract new industrial plants and commercial businesses as well
as assure the retention of existing businesses and industries and their expansion; and
WHEREAS, any tax incentives offered in the City would reduce needed tax revenue
unless strictly limited in application to those new and existing businesses that bring new
wealth to the community; and
WHEREAS, the abatement of property taxes, when offered to attract primary jobs in
industries that bring in money from outside a community instead of merely re -circulating
dollars within a community, has been shown to be an effective method of enhancing and
diversifying the area's economy; and
WHEREAS, the Texas Tax Code, Chapter 312, Property Redevelopment and Tax
Abatement Act, requires the establishment of guidelines and criteria governing tax
abatement agreements by the City before entering into tax abatement agreements; and
WHEREAS, the City Council hereby determines such tax abatement agreements
are in the best interest of this community in the promotion of economic development and
adopts such Guidelines and Criteria for Tax Abatement to be used in granting tax
abatements in reinvestment zones designated within the City of Plainview, Texas.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Plainview,
Texas that:
SECTION 1: The City of Plainview, Texas has elected and does hereby elect to
become eligible to participate in tax abatement.
SECTION 2: The City of Plainview's Tax Abatement Guidelines and Criteria 2016,
attached hereto and incorporated herein, are hereby approved and adopted. These
Guidelines and Criteria shall be effective from the execution date for a period of two years.
SECTION 3: A copy of said City of Plainview's Tax Abatement Guidelines and
Criteria 2016 are attached hereto as Exhibit "A" and incorporated as a part hereof for all
intents and purposes.
SECTION 4: An identical copy of said City of Plainview Tax Abatement Guidelines
and Criteria 2016 shall be filed in the Office of the City Secretary.
SECTION 5: The City of Plainview urges the governing bodies of the other taxing
units levying ad valorem taxes upon property within the incorporated City limits cooperate
with the City to promote economic development in the City of Plainview.
SECTION 6: The City of Plainview respectfully requests that each taxing unit within
incorporated City limits consider said City of Plainview Tax Abatement Guidelines and
Criteria 2016 favorably.
SECTION 7: That this Resolution shall be in full force and effect from and after its
passage and adoption.
PASSED AND ADOPTED this /2411 day of JainU�' , 2016.
AT. =ST:
Belinda Hinojosa, City Se ry
APP: • D AS CONTENT:
Jeffr '- r, City Manager
APPROVED AS TO FORM:
Leslie Spea�'Sd'hmidt, ity Attorney
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Wendell Dunlap, Mayor
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Resolution RI6-351
EXHIBIT "A"
CITY OF PLAINVIEW, TEXAS
TAX ABATEMENT
GUIDELINES AND CRITERIA
EFFECTIVE: JANUARY 12, 2016
THROUGH: JANUARY 12, 2018
Guidelines and Criteria 3
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TABLE OF CONTENTS
SECTION I
GENERAL PURPOSE Page
DEFINITIONS 7
Abatement of Taxes 7
Abatement Agreement 7
Advanced Technologies 7
Agriculture Facility 7
Base Year Value 7
City 8
Corporate Headquarters 8
Distribution Center Facility 8
Economic Life 8
Existing Facility or Structure 8
Expansion of Existing Facilities or Structures 8
Facility 8
Improvements to Real Property or Improvements 8
Manufacturing Facility 8
Modernization 9
New Facility or Structure 9
Other Basic Industry 9
Permanent Job 9
Productive Life 9
Real Property 9
Regional Service Facility 9
Research Facility 9
Tangible Personal Property 10
SECTION 11
ABATEMENT AUTHORIZED
Reinvestment Zone 10
Intent of Criteria and Guidelines 10
Authorized Facility 10
Creation of New Value 10
New Facilities 11
Expansion /Modernization 11
Eligible Property 11
Ineligible Property 11
Owned/Leased Facilities 12
Economic Qualifications 12
Taxability 12
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SECTION 11I
Page
APPLICATION 13
SECTION IV
PUBLIC HEARING 15
SECTION V
OBJECTIONS TO THE ABATEMENT 16
SECTION VI
AGREEMENT 16
SECTION VII
RECAPTURE 17
SECTION VIII
ADMINISTRATION 18
SECTION IX
ASSIGNMENT 19
SECTION X
CONFIDENTIALITY OF PROPRIETARY INFORMATION 19
SECTION XI
LEGAL NOTICE TO POTENTIAL APPLICANTS 19
SECTION XII
SUNSET PROVISION 20
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GUIDELINES AND CRITERIA
FOR GRANTING TAX ABATEMENT IN A REINVESTMENT ZONE
DESIGNATED WITHIN THE CITY LIMITS OF PLAINVIEW, TEXAS
WHEREAS, the creation and retention of job opportunities that bring new wealth is
of the highest civic priority; and
WHEREAS, new jobs and Tong -term investment will benefit the area economy,
provide needed opportunities, strengthen the real estate market, generate tax revenue,
support local services, and generally, enhance the economic base of the City of Plainview,
Texas; and
WHEREAS, the City must compete with other localities across the nation currently
offering tax inducements to attract new industrial plants and commercial businesses as well
as assure the retention of existing businesses and industries and their expansion; and
WHEREAS, any tax incentives offered in the City would reduce needed tax revenue
unless strictly limited in application to those new and existing businesses that bring new
wealth to the community; and
WHEREAS, the abatement of property taxes, when offered to attract primary jobs in
industries that bring in money from outside a community instead of merely re -circulating
dollars within a community, has been shown to be an effective method of enhancing and
diversifying the area's economy; and
WHEREAS, the Texas Tax Code, Chapter 312, Property Redevelopment and Tax
Abatement Act, requires the establishment of guidelines and criteria governing tax
abatement agreements by the City before entering into tax abatement agreements; and
WHEREAS, the City Council hereby determines such tax abatement agreements
are in the best interest of this community in the promotion of economic development and
adopts such Guidelines and Criteria for Tax Abatement to be used in granting tax
abatements in reinvestment zones designated within the City of Plainview, Texas.
NOW, THEREFORE, the following Guidelines and Criteria for granting tax
abatement in Reinvestment Zones designated within the City are hereby promulgated and
adopted:
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SECTION I
GENERAL PURPOSE
The City of Plainview ("City") is committed to promoting high quality development as
well as improving the quality of life for the citizens residing within the City of Plainview,
Texas. The City recognizes these objectives generally serve enhancement and expansion
of the local economy. The City will, on a case by case basis, give consideration to
providing a tax abatement in accordance with the Texas Tax Code Ann., Chapter 312,
(Vernon's 2015) as stimulation for economic development within the City. The City's policy
will be in accordance with the guidelines and criteria herein set forth and in conformity with
the Texas Tax Code. Nothing contained herein shall imply, suggest or be understood to
mean that the City is under any obligation to provide tax abatement to any applicant. All
tax abatement applications will be considered on a case by case basis.
DEFINITIONS
(a) Abatement of Taxes: The full or partial exemption from ad valorem taxes of
certain real and/or personal property for, both, new facilities and structures and the
expansion or modernization of existing facilities and structures in a Reinvestment Zone
designated by the City of Plainview, Texas for economic development purposes for a
period of time not to exceed ten (10) years in accordance with the Texas Tax Code,
Chapter 312, Property Redevelopment and Tax Abatement Act.
(b)Abatement Agreement: A contractual Agreement between a property owner
and the City of Plainview for the purposes of tax abatement on qualified property located
within a Reinvestment Zone or a designated Enterprise Zone.
(c) Advanced Technologies: Advanced manufacturing which requires higher skills
and results in higher wages and investment.
(d) Agriculture Facility: Buildings, structures, and major earth structure
improvements, including fixed machinery and equipment, the primary purpose of which is
processing, refining, packaging, and distributing food and/or fiber products in commercially
marketable quantities.
(e) Base Year Value: The assessed value of property eligible for tax abatement in
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the Reinvestment Zone or designated Enterprise Zone on January 1, preceding the
effective date of an Abatement Agreement as defined herein, plus the agreed upon value
of eligible property improvements made after January 1 but before the execution of the
Agreement.
(f) Citv: The City of Plainview, Hale County, Texas.
(g) Corporate Headquarters: The facility or portion of a facility where corporate
staff employees are physically employed and where the majority of the company's
financial, personnel, legal, planning or other headquarters related functions are handled
whether on a national, regional, or division basis.
(h) Distribution Center Facility: Buildings and structures, including fixed machinery
and equipment or any other Tangible Personal Property, used or to be used primarily to
receive, store, service or distribute goods or materials owned by the Facility operator where
a majority of the goods or services are distributed to points beyond the City of Plainview.
(i) Economic Life: The number of years a property improvement is expected to be
in service at the facility. However, the number of years shall not exceed the depreciation
allowance specified in the United States Internal Revenue Code.
(j) Existing Facility or Structure: A facility as of the execution date of the Tax
Abatement Agreement located in or on Real Property eligible for tax abatement.
(k) Expansion of Existing Facilities or Structures: The addition of buildings,
structures, machinery or equipment to a facility for purposes of increasing production
capacity or services.
(I) Facility: Real Property improvements eligible for tax abatement, including the
building or structure erected on such property and/or any Tangible Personal Property
located in or on such property.
(m) Improvements to Real Property or Improvements: The construction,
addition, structural upgrading, replacement, or completion of any facility located upon, or to
be located upon, Real Property, as herein defined, or any Tangible Personal Property
placed in or on said Real Property.
(n) Manufacturing Facility: Buildings and structures, including fixed machinery
and equipment or any other Tangible Personal Property, the primary purpose of which
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is or will be the manufacture of tangible goods or materials or the processing of such
goods or materials by physical or chemical change to a finished product.
(o) Modernization: A complete or partial demolition of facilities and the complete or
partial reconstruction or installation of a facility of similar or expanded production capacity.
Modernization may result from the construction, alteration, or installation of buildings,
structures, fixed machinery or equipment. Modernization shall include improvements for
the purpose of increasing productivity or updating the technology of machinery and
equipment, or both.
(p) New Facility or Structure: The construction of a Facility on previously
undeveloped Real Property eligible for tax abatement which is placed into service by
means other than or in conjunction with expansion or modernization.
(q) Other Basic Industry: A Facility other than an Advanced Technologies Facility,
Agriculture Facility, Corporate Headquarters Facility, Distribution Center Facility,
Manufacturing Facility, Regional Service Facility, or Research Facility, which produces
goods or services or which creates new or expanded job opportunities and services a
market of which 50% of revenues come from outside Hale County, Texas.
(r) Permanent Job: A new employment position created by a business that has
provided employment to an employee a full time (2080 annual man hours) job after
construction and during the abatement period.
(s) Productive Life: The number of years a property improvement is expected to
be in service in a facility.
(t) Real Property: Land on which improvements are to be made or fixtures placed.
(u) Regional Service Facility: Buildings and structures, including fixed machinery
and equipment or any other Tangible Personal Property, used or to be used to service
goods where a majority of the goods being serviced originate outside of the City of
Plainview.
(v) Research Facility: Buildings and structures, including fixed machinery and
equipment or any other Tangible Personal Property, used or to be used primarily for
research or experimentation to improve or develop new tangible goods or materials or to
improve or develop the production processes thereto.
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(w) Tangible Personal Property: Any Personal Property, not otherwise defined
herein, which is necessary for the proper operation of any type of Facility.
SECTION II
ABATEMENT AUTHORIZED
(a) Reinvestment Zone: To be eligible for tax abatement the owner must own
taxable Real Property which is the subject of the tax abatement within a Reinvestment
Zone and/or Enterprise Zone designated by City Ordinance and must enter into a written
Agreement with the City, wherein the owner agrees to make specified improvements or
repairs to the property in conformity with the City's comprehensive plan. Tax abatement
amounts and terms shall be determined on a case by case basis, however, in no event
shall taxes be abated for a term in excess of ten (10) years. The amount of taxable value
of improvements to be abated and the term of the abatement shall be determined by the
City in all cases where tax abatement property is within the City limits. A Reinvestment
Zone that is a State Enterprise Zone is designated for the same period in accordance with
Texas Government Code, Chapter 2303, Enterprise Zones.
(b) Intent of Criteria and Guidelines: The intent of the Criteria and Guidelines, as
set forth herein, is to establish the minimum standards which an applicant for tax
abatement must meet in order to be considered for such status by the City.
(c) Authorized Facility: A type of business or industry that the City Council
determines would primarily fall within the following classifications: Advanced Technologies
Facility, Agriculture Facility, Corporate Headquarters Facility (national, regional or division),
Distribution Center Facility, Manufacturing Facility, Research Facility, Regional Service
Facility, Other Basic Industry, or any other Commercial Enterprise providing goods and
services involving financial, commercial, or industrial aspects and connected with
commerce. Though the project is not included as a target industry, the Council may find
that a company has the potential of generating additional, significant economic
development opportunities to the City of Plainview and consider a tax abatement in the
company's behalf.
(d) Creation of New Value: Tax abatement may only be granted for the additional
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value of eligible property improvements made subsequent to and specified in a Tax
Abatement Agreement between the City of Plainview and the property owner, subject to
such limitations as City and State may require. The productive life of the improvements
must exceed 15 years.
(e) New Facilities: The project will have an increased appraised ad valorem tax
value of at least $500,000.00, excluding land, upon completion of the anticipated
improvements based upon the Hale County Appraisal District's assessment of the eligible
property and create a minimum of five (5) permanent full-time jobs.
(f) Expansion/Modernization: The project must prevent the loss of payroll, or
retain, increase or create payroll on a permanent basis in the City of Plainview and have an
increased appraised ad valorem tax value of at least $500,000, excluding land, upon
completion of the anticipated expansion or modernization based upon the Hale County
Appraisal District's assessment of the eligible property and create a minimum of five (5)
permanent full-time jobs. If a minimum of five (5) full-time jobs are not included, but the
project will prevent the loss or retention of payroll in the City, then such applicant will be
considered for a business expansion and/or modernization as long as the project is located
within a Reinvestment Zone. The project shall not solely and primarily have the effect of
transferring employment from one part of the City to another.
(g) Eligible Property: Tax abatement may be extended to the value of buildings,
structures, fixed machinery and equipment, site improvements plus the office space and
related fixed improvements necessary for the operation and administration of the facility.
The cost of City services required for the development should not exceed the amount of
taxes generated if abatement is provided. All development must conform to the City of
Plainview's Code of Ordinances as well as the state and federal law applicable.
(h) Ineligible Property: The following types of property shall be fully taxable and
ineligible for tax abatement: Real Property; inventories; supplies; tools; furnishings and
other forms of movable personal property; vehicles; vessels; aircraft; housing (single family
and multi -family); hotel and/or motel accommodations; furniture; deferred maintenance
investments; property to be rented or leased except as provided in Section 11 (i);
improvements for the generation or transmission of electrical energy not wholly consumed
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by a new facility or expansion; any improvements, including those to produce, store or
distribute natural gas, fluids or gases, which are not integral to the operation of the facility;
improvements to real property that have a productive life of less than 15 years; and
property owned or used by the State of Texas or its political subdivisions or by any
organization owned, operated or directed by a political subdivision of the State of Texas.
(i) Owned/Leased Facilities: If a leased facility is granted tax abatement, the
Agreement shall be executed by both the lessor and the lessee. The leaseholder must
have a lease commitment of at least five (5) years and make eligible improvements to the
Real Property.
(j) Economic Qualifications: In order to be eligible for designation as a
Reinvestment Zone and receive tax abatement of the planned improvement, it must create
full-time employment for at least five (5) new people on a permanent basis for a new facility
locating in the City. A business expanding and/or modernizing must provide at least five
(5) additional employment jobs and/or retain full-time employment for at least five (5)
people on a permanent basis. "Full-time" employment shall mean forty (40) hours per
week or equivalent. In addition, the owner/applicant must document and satisfactorily
evidence that tax abatement is necessary to maintain its competitiveness on the local,
state, national or world markets. Further, the planned improvement must not have the
effect of transferring employment from one part of Hale County to another. The business
must be a producer, manufacturer, or distributor of goods and services primarily distributed
outside Hale County. Additionally, the total expenditure for the construction of eligible
property must exceed $500,000.00. A schedule of tax abatement is attached hereto as
Appendix "A" and incorporated herein.
(k) Taxability: From the execution of the abatement to the end of the Agreement
period, taxes shall be payable as follows:
(1) The value of ineligible property as provided in Section II (h) shall be fully
taxable;
(2) The base year value of existing eligible property as determined each year
shall be fully taxable; and,
(3) The additional value of the new eligible property shall be fully taxable at
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the end of any abatement period.
SECTION III
APPLICATION
(a) Any present or potential owner of taxable property located in the City of
Plainview, Texas may request the designation of a reinvestment zone and a tax abatement
by filing a written application with the City Manager of the City of Plainview, Texas through
the City Secretary's office prior to initiating any work on the project. A non-refundable
cashier's check in the sum of Five Hundred and No/100 Dollars ($500.00) (application fee)
must be submitted with the application, said sum to be used to offset the City's
administrative expenses. An application for tax abatement must be filed prior to the
commencement of any construction, alteration, or installation of any improvements related
to a proposed new facility, expansion, or modernization.
(b) The application shall be signed by the owner accompanied by the following
unless the City has waived a requirement that it has deemed unnecessary to properly
evaluate the request:
(1) A general description of the proposed use and the general nature and
extent of the modernization, expansion or new improvements to be
undertaken;
(2) A descriptive list of the improvements which will be a part of the facility;
(3) An estimate of the cost of the improvements;
(4) An estimate of the number of employees during construction and
thereafter to operate the facility;
(5) A detailed time schedule for undertaking and completing the planned
improvements;
(6) Such financial and other information as required by the City to enable it to
evaluate the financial capacity of the applicant;
(7) A completed incentive application from the Plainview/Hale County
Economic Development Corporation;
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(8) A site plan showing the precise location of the property and all
improvements to such location, all roadways within 500 feet of the site, and
all existing zoning and land uses within 500 feet of the site, including a
complete legal description, if the property is described by metes and
bounds, for the property proposed as a Reinvestment Zone;
(9) In the case of modernization, a statement of the assessed value of the
facility, separately stated for real and personal property, shall be given for
the tax year immediately preceding the application.
The application form may require such financial and other information as the City of
Plainview City Council deems appropriate for evaluating the financial capacity and other
factors of the applicant. An application form is attached hereto as Appendix "B" and
incorporated herein.
(c) After receipt of the completed application, the City Manager and/or his designee
shall review the application to determine if it qualifies for abatement under the terms of the
guidelines and criteria.
(d) Feasibility. After receipt of an application for abatement, the City shall consider
the feasibility and the impact of the proposed tax abatement. The study of feasibility shall
include, but not be limited to, an estimate of the economic effect of the abatement of taxes
and the benefit to the City of Plainview and the property to be covered by such abatement.
(e) The City Council shall not establish a Reinvestment Zone or enter into a Tax
Abatement Agreement if it finds that the request for abatement was filed after the
commencement of construction, alteration, or installation of improvements related to a
proposed new facility, expansion, or modernization or if the applicant deliberately provided
false or misleading information that is material to the application.
(f) The tax abatement applicant shall have the burden to demonstrate that tax
abatement should be granted. The City shall have full authority to request any additional
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information from the applicant that the Plainview City Council deems necessary to assist in
considering such application.
(g) The total duration of an abatement shall in no instance exceed the term of ten
(10) years.
SECTION IV
PUBLIC HEARING
An Ordinance designating an area as a Reinvestment Zone, in accordance with
Texas Tax Code Ann., Sections 312.201 and 312.202 (Vernon's 2015), may not be
adopted by the City until the City Council has held a Public Hearing on the designation and
has found:
(1) That the improvements sought are feasible and practical;
(2) That the improvements sought would be a benefit to the land to be
included in the zone and the City after the Agreement entered into with the
Owner has expired;
(3) That the area of the proposed Reinvestment Zone is reasonably likely, as
a result of the designation, to contribute to the retention or expansion of
primary employment or attract major investment in the zone that would be
a benefit to the property;
(4) That the improvements sought would contribute to the economic
development of the City; and
(5) That the improvements sought would rehabilitate existing property.
At the hearing, interested persons shall be entitled to speak and present evidence
for or against the designation.
Not later than the seventh (7th) day before the date of such hearing, notice of the
hearing must be published in a newspaper having general circulation in the City of
Plainview. Notice of said hearing shall be made by delivering in writing to the presiding
officer of the governing body of each taxing unit, which includes in its boundaries real
property that is to be included in the proposed Reinvestment Zone, a copy of the Notice of
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Public Hearing. Such Notice of Public Hearing shall be placed in the mail, postage -paid,
properly addressed, and sent by certified mail with return receipt requested.
SECTION V
OBJECTIONS TO THE ABATEMENT
Neither a Reinvestment Zone nor a Tax Abatement Agreement shall be authorized if
it is determined that:
(1) There would be a substantial adverse effect on the provision of
government service or tax base;
(2) The applicant has insufficient financial capacity;
(3) Planned or potential use of the property would constitute a hazard to
public safety, health or morals;
(4) Violation of laws of the United States, State of Texas, or Ordinances of the
City of Plainview would occur; or
(5) The application for tax abatement was submitted after the commencement
of construction, alteration, or installation of improvements related to the
new facility or structure, and/or the modernization or expansion of an
existing facility or structure; or
(6) Pending litigation by applicant against the City of Plainview exists.
(7) Owner/Applicant is delinquent in the payment of City of Plainview taxes.
SECTION VI
AGREEMENT
After approval of a tax abatement application within a designated Reinvestment
Zone and a public hearing, the City of Plainview City Council shall formally pass a
resolution and execute a Tax Abatement Agreement with the owner of the facility and/or
lessee as required in the Texas Tax Code, Chapter 312. The City Council may impose any
conditions in a Tax Abatement Agreement that the Council deems necessary to promote
the purposes of these guidelines. Not later than the seventh day before the City enters into
a tax abatement agreement, a Notice of intent to enter into a tax abatement agreement
shall be delivered to the presiding officer of the governing body of each of the taxing units
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in which the property to be subject to the agreement is located. The Notice must include a
copy of the proposed Tax Abatement Agreement. A Notice is presumed delivered when
placed in the mail, postage paid, and properly addressed to the appropriate presiding
officer. A Notice properly addressed and sent by registered or certified mail for which a
return receipt is received by the sender is considered to have been delivered to the
addressee. The failure to deliver the Notice does not affect the validity of the agreement.
SECTION VII
RECAPTURE
(a) In the event that the facility is completed and begins producing product or
service, but subsequently discontinues producing product or service for any reason
exempting fire, explosion or other casualty or accident or natural disaster, for a period of
one year during the abatement period, then the Agreement shall terminate and so shall the
abatement of the taxes for the calendar year during which the facility no longer produces.
The taxes otherwise abated for the calendar year shall be paid to the City of Plainview
within sixty (60) days from the date of termination.
(b) Should the City of Plainview determine that the company or individual is in
default according to the terms and conditions of its Agreement, the City shall notify the
company or individual in writing at the address stated in the Agreement, and, if the default
is not cured within sixty (60) days from the date of notice ("Cure Period"), the Agreement
may be terminated.
(c) In the event that the company or individual:
(1) Allows its ad valorem taxes owed the City of Plainview to become
delinquent and fails to timely and properly follow the legal procedures for the
company's or individual's protest and/or contest; or
(2) Violates any of the terms and conditions of the Abatement Agreement and
fails to cure any default with the Cure Period,
then the City may terminate such Agreement, and all taxes previously abated by virtue of
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the Agreement shall be recaptured and paid within sixty (60) days of the termination and
Cure Period.
(d) If the Tax Abatement Agreement is terminated for any reason whatsoever and
taxes are not paid within the time period herein specified, then the provisions of the Texas
Tax Code, Section 33.01 (Vernon's 2015) will apply.
SECTION VIII
ADMINISTRATION
(a) Each year, the company or individual receiving abatement shall furnish the City
with information as may be necessary for abatement.
(b) Annual Evaluation and Reports. Upon completion of construction, the City of
Plainview shall annually evaluate each Facility receiving abatement, to ensure compliance
with the Agreement and report possible violations of the Agreement. The Owner shall
certify to the City Council of the City of Plainview each year that the Owner is in compliance
with each applicable term of the Agreement. In addition, the Owner shall file a "Buy Local"
Annual Report, attached hereto as Appendix "C" and incorporated herein, which shows the
dollar amount of materials, labor, and number of jobs created within the City of Plainview
and/or Hale County, Texas.
(c)The Agreement shall stipulate that employees and/or designated representatives
of the City of Plainview will have access to the Reinvestment Zone and Real and/or
Tangible Personal Property subject to the Abatement Agreement during the abatement
term to inspect the facility and determine whether the Agreement terms and conditions are
being met. All inspections will be made only after the giving of twenty-four (24) hours prior
notice and will only be conducted in such manner as to not unreasonably interfere with the
construction and/or facility operation.
(d) All documents related to tax abatements, including annual certifications, will be
kept on file with the City Secretary.
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(e) No extension to the period of tax abatement will be granted.
SECTION IX
ASSIGNMENT
Tax abatement may be transferred and assigned by the holder to a new owner or
lessee of the same facility upon the approval by Resolution of the City Council, subject to
the financial capacity of the assignee, and provided all conditions and obligations in the
Tax Abatement Agreement are guaranteed by the execution of a new contractual
agreement with the City of Plainview. No assignment or transfer shall be approved if the
parties to the existing Agreement, the new owner or new lessee, are liable to the City of
Plainview or any affected jurisdiction or other taxing agency for outstanding taxes or other
obligations.
SECTION X
CONFIDENTIALITY OF PROPRIETARY INFORMATION
Subject to Texas Government Code, Chapter 552, Public Information, information
provided to the City of Plainview in connection with an application or request for the
creation of a Reinvestment Zone for the purpose of tax abatement which describes the
specific processes or business activities to be conducted or the equipment or other
property to be located on the property for which tax abatement is sought is confidential and
not subject to public disclosure until the tax abatement agreement is executed in
accordance with Texas Tax Code Ann., Section 312.003 (Vernon's 2015). Nevertheless,
the City shall not be liable for any disclosure of the application if such disclosure is required
by law. The information in the City of Plainview's custody after the agreement is executed
will be treated as confidential only as allowed by law.
SECTION XI
LEGAL NOTICE TO POTENTIAL APPLICANTS
The adoption of these "Guidelines and Criteria" by the Plainview City Council does
not:
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(a) Limit the discretion of the City Council to decide whether to enter into a specific
Tax Abatement Agreement;
(b) Limit the discretion of the City Council to delegate to its employee the authority
to determine whether or not the governing body should consider a particular application or
request for tax abatement; or
(c) Create any property, contract, or other legal right in any person to have the
governing body consider or grant a specific application or request for tax abatement.
SECTION XII
SUNSET PROVISION
These "Guidelines and Criteria" are effective for two years from the date adopted.
During that period, the "Guidelines and Criteria" may be amended or repealed only by a
vote of three-fourths (%) of the members of the City Council.
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APPENDIX "A": SCHEDULE OF TAX ABATEMENT
CategoryA
AMOUNT OF VALUATION OF
ELIGIBLE PROPERTY AS
Category B
AVERAGE NUMBER
OF NEW EMPLOYEES
MAXIMUM PERCENTAGE OF TAXES ABATED EACH
YEAR DURING A 10 -YEAR AGREEMENT
DETERMINED BY THE HALE
DURING THE
NoTE: The actual amount of abatement allowed in any agreement
COUNTY APPRAISAL
TWELVE CALENDAR
shall be in the sole discretion of the City of Plainview City Council
DISTRICT
MONTHS PRIOR TO
and shall be subject to negotiations by the parties to the
THE TAX
agreement
ASSESSMENT DATE
OF JANUARY 1
From
To
From
To
1
2
3
4
5
6
7
8
9
10
$ 500,000.00
$ 1,000,000.00
5
25
100
75
50
25
0
0
0
0
0
0
$ 1,000,000.00
$ 2,500,000.00
26
45
100
100
75
50
25
0
0
0
0
0
$ 2,500,001.00
$ 4,000,000.00
46
60
100
100
100
75
50
25
0
0
0
0
$ 4,000,001.00
$ 5,000,000.00
61
75
100
100
100
100
75
50
25
0
0
0
$ 5,000,001.00
$10,000,000.00
76
85
100
100
100
100
100
75
50
25
0
0
$10,000,001.00
Above
86
Above
100
100
100
100
100
100
100
100
100
100
During the first year folowing the completion of new construction or construction of improvements, and for
each subsequent year during the term of an abatement agreement executed pursuant to the Guidelines
and Criteria, the percentage of taxes abated shall be based on: (1) the valuation of eligible property
(Category A); or (2) the average number of additional employees (Category B). The determination of
which category to use in determining the percentage of taxes abated shall be according to which category
provides the greater percentage of abatement.
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APPENDIX "B"
COMPANY REPRESENTATIVE TO BE CONTACTED (Please type or print):
Name: Title: Phone:
Address:
(Street or P. O. Box) (City) (State) (Zip)
Signature of Company Official
INSTRUCTIONS
Applicants and projects must meet the requirements established by the CITY OF
PLAINVIEW, TEXAS TAX ABATEMENT PLAN.
The "Guidelines and Criteria", for example, set out regulations governing eligible facilities,
eligible and ineligible improvements, terms and economic qualifications. Conformance with
all sections, however, is required for eligibility.
APPLICANT INFORMATION
The taxing unit may consider applicant's financial capacity in determining whether to enter
into an Abatement Agreement. Established companies for which public information is
available, or the wholly owned businesses of such companies, should include with the
application a copy of their latest annual report to stockholders. Other applicants and new
companies should attach a statement showing when the company was established,
business references (name, contact, and telephone number of principal bank, accountant,
and attorney) and may be required to submit an audited financial statement and business
plan.
PROJECT INFORMATION
Only facilities listed in Section 11 of the "Guidelines and Criteria" may receive abatement.
Check the "Guidelines and Criteria" definitions in Section I to see if the project qualifies.
ECONOMIC INFORMATION
Permanent Employment Estimates - In estimating the permanent employment, include
the total number of jobs retained or created at this site by your firm as well as known
permanent jobs of service contractors required for operation.
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Estimated Appraised Value on Site - The value January 1, preceding abatement, should
be the value established by the Hale County Appraisal District. If the applicant must
estimate value because the taxable value is not known or is combined with other properties
under a single tax account, please so state. To qualify, the abated properties must be
expected to result in an addition to the tax base after the period of abatement expires.
Projections of value should be a "best estimate" based on taxability in Texas. The
projection of project values not abated should include personal property and ineligible
project -related improvements, such as office space in excess of that used for plant
administration, housing, etc.
APPLICATION FOR TAX ABATEMENT
OF PROPERTY LOCATED IN THE CITY OF PLAINVIEW
The filing of this document acknowledges familiarity and conformance with "Guidelines
and Criteria for Granting Tax Abatement in a Reinvestment Zone Designated within
the City Limits of Plainview, Texas" (attached). This application will become part of the
Agreement, and any knowingly false representations will be grounds for the City of
Plainview to void this Agreement. An original copy of this request should be submitted to
City Secretary, City of Plainview, Texas, 901 Broadway, Plainview, Texas 79072.
APPLICANT INFORMATION
(Please type or print.)
Company Name:
Address: Phone:
Number of Employees: Annual Sales:
( ) Corporation ( ) Partnership ( ) Proprietorship
MUST SUBMIT ANNUAL REPORT (See instructions)
THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
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PROJECT INFORMATION
Type of Facility (see instructions):
( ) Manufacturing Facility ( ) Distribution Center Facility ( ) Agriculture Facility
( ) Research Facility ( ) Regional Services Facility ( ) Corporate Headquarters Facility
( ) Advanced Technologies Facility ( ) Other Basic Industry
Location Address and Legal Description:
ATTACH MAP SHOWING PROPOSED SITE
Describe Product or Service to be Provided:
Attach Site Plan in accordance with Guidelines and Criteria at Section III(b)(8)
(attached)
Attach a completed incentive application from the Hale County Economic Development
Corporation in accordance with Guidelines and Criteria at Section III(b)(7)(attached).
Project Description: Attach statement fully explaining project. Describe existing site and
improvements. Describe all proposed improvements, and provide a list of improvements
and equipment for which abatement is requested.
( ) New Plant ( ) Expansion ( ) Modernization
ECONOMIC INFORMATION
Construction Estimates:
Start Date (Month/Year):
Completion Date (Month/Year):
Construction Man Hours:
Peak Construction Jobs (Number):
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IF MODERNIZATION:
Estimated Economic Life of Existing Plant is years.
Added Economic Life From Modernization is years.
Permanent Employment Estimates (FTE's):
Current Plant Employment:
Number of Plant Jobs: ( ) Retained ( ) Created
At Start/Opening: in Year:
5 Years Into Operation: in Year:
Estimated Appraised Value on Site
Value January 1 Preceding Abatement
Agreement
Estimated Value of Abated Properties After
Abatement Expires
Value Upon Completion of Project (Include
Personal Property and Project Improvements
not Subject to Abatement)
Personal Improve -
Property ments Land
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APPENDIX "C"
"Buy Local" Annual Reports
The following information shall be reported to the Governmental Unit on a calendar -
year basis during the first four years of the tax abatement program:
1. Dollar amount spent for materials* (local).
2. Dollar amount spent for materials* (total).
3. Dollar amount spent for labor** (local).
4. Dollar amount spent for labor** (total).
5. Number of jobs created in the construction project (local).
6. Number of jobs created in the construction project (total).
7. Number of jobs created on permanent basis (local).
8. Number of jobs created on permanent basis (total).
* "Materials" is defined to include all materials used in excavation, site improvement,
demolition concrete, structural steel, fire proofing, piping, electrical, instruments, paintings
and scaffolding, insulation, temporary construction facilities, supplies, equipment rental in
construction, small tools and consumables. This term does not include major items of
machinery and equipment not readily available locally.
** "Labor" is defined to include all labor in connection with the excavation, site
improvement, demolition, concrete construction, structural steel, fire proofing, equipment
placement, piping, electrical, instruments, painting and scaffolding, insulation, construction
services, craft benefits, payroll burdens, and related labor expenses. This term does not
include engineering services in connection with the project design.
The term "Local" as used to describe manufacturers, suppliers, contractors and labor shall
include firms, businesses, and persons who reside in or maintain an office in the City of
Plainview or Hale County.
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