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HomeMy WebLinkAboutRes 2021-07-945 Amending the Economic Development Incentive PolicyRESOLUTION NO. CQQ21T q46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS AMENDING THE ECONOMIC DEVELOPMENT INCENTIVE POLICY TO PROMOTE ECONOMIC DEVELOPMENT AND STIMULATE BUSINESS AND COMMERCIAL ACTIVITY IN THE CITY OF ANNA WHEREAS, the City Council of the City of Anna previously adopted an Economic Development Incentive Policy on December 8, 2020, and an amended version on March 23, 2021; and WHEREAS, the Anna CDC and Anna EDC approved additional amendments to the Policy on July 1, 2021; and WHEREAS, upon further review, the City Council of the City of Anna wishes to adopt said amendments to the Policy. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. The City Council hereby adopts the amended policy, which is attached hereto and incorporated herein as Exhibit "A" Section 2. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 27tn day of July 2021. ATTEST: PROVED: A/V +1r � i i � • I ayor* I9ate Pike '���l/lllllli11111111 CITY OF ANNA, TEXAS RESOLUTION NO. 6145 Page 1 of 1 THE CITY OF Anna iLin is i-inna -*CDC EDC Economic Development Incentives Policy The City of Anna, Texas, (City), in partnership with the Anna Community Development Corporation (CDC) and the Anna Economic Development Corporation (EDC), is committed to the promotion and retention of high quality development that increases economic diversity and sustainability, creates jobs, and provides value to the community. The City considers incentives based on the merit of each project and in accordance with the criteria outlined in this document, the City of Anna Economic Development Strategic Plan, and the City of Anna Strategic Plan. All recipients that are awarded incentives must meet or exceed the criteria and performance standards outlined below and enter into a performance agreement with the City, CDC, and/or EDC. Nothing in this policy shall imply or suggest that the City, CDC, or EDC are under any obligation to provide an incentive to any applicant. All applications are considered on a case -by - case basis. City of Anna Strategic Plan Goal 1: Growing Anna Economy Objectives: 1. Maintain and enhance an effective economic development organization that markets Anna, finds prospects, and closes the deal 2. Expand the commercial tax base 3. Provide more jobs for neighbors 4. Develop parcels along U.S. 75 with viable businesses 5. Have a built -out Business Park 6. Have expanded medical and healthcare services, including Clinic and Outpatient Surgical Center(s) 7. Expand retail, restaurant and entertainment businesses Anna Economic Development Vision Anna has created a balanced and sustainable tax base that invites high qualityjobs and facilitates, excellent quality of life with well -maintained and first-rate infrastructure, and offers a wide range of housing and public facilities that build community identity and pride and engage neighbors in meaningful ways. City of Anna Economic Development Incentive Policy- Updated September 16, 2020 PconomI4 Development Corporation (EDC)& Community Development Corporation (CDC);-, commented [CM1]: update the date in the header? The City has both a Type A and Type B Economic and Community Development Corporation ae aeFup-bycreated under the Texas Development Corporation Act of 1979. The Type A sales tax is primarily intended for manufacturing and industrial development. EDCs may use Type A revenues wWq fund land, buildings, equipment, facilities expenditures, targeted infrastructure and improvements for projects and job creation. The Type B sales tax may be used for any project eligible under Type A rules and several other project types, including quality of life improvements. Type B corporations may pay for land, buildings, equipment, facilities, targeted infrastructure and improvements. -Type B corporations created by cities with a population of 20,000 or less may also use sales tax revenue to fund projects that promote new or expanded business development thal do not create or retain primary jobs. Project Criteria Eligible projects must provide a return on investment (ROI) and benefit for public funds provided. ROI may be determined through an analysis of: • Total capital investment and resulting taxable value generating annual increases of property tax revenue • The number and type of jobs to be created • Estimated ability to generate direct and/or indirect sales tax revenue • Estimated ability to generate future overnight stays that result in future direct hotel occupancy fund revenue and indirect revenue associated with visitors Recommendations for incentives are based on the evaluation of the following: • Fiscal Impact o What is the estimated total value of capital investment for buildings, other real property improvements and furniture, fixtures, and equipment? o What is the total projected annual operating budget of the facility? o What is the value of real and business personal property that will be added to the tax rolls? o How much direct sales tax will be generated? o How much Infrastructure construction be required? o What is the estimated return on public investment? • Employment Impact o How many permanent jobs will be brought to Anna? o How many jobs will be retained? o What types of jobs will be created? o What will the total annual payroll be? o What Is the average annual salary ofjobs created and/or retained? • Community Impact o How compatible is the project with the City's Comprehensive Plan and Economic Development Strategic Plan goals? o How does the project support quality of life benefits such as preservation of open space and development enhancements? o What effect would the project have on the local housing market? o What environmental impact, if any, will be created by the project? o What effect would the project have on other taxing entities? 2 1 P a g e City of Anna Economic Development Incentive Policy — Updated September 16, 2020 Targeted Priorities The City may consider providing incentives for projects that further the City's strategic plans. • Job Creation — The City may consider an incentive for the creation and maintenance of jobs by offering a grant payment for companies that create or relocate a minimum of 25 full-time jobs within the City. The company must maintain the number of jobs created and/or relocated for at least a 5-year period to receive the total grant payment. Each job eligible for grant payment must pay at least 100% of the average annual wage for Collin County, as determined by the United States Dept. of Labor, Bureau of Labor Statistics. • Downtown — The City may consider incentives for projects within or immediately surrounding the City's downtown that advance the goals of the Downtown Master Plan. Incentives may include grants or reimbursement for improvements to new or existing buildings, pedestrian corridors, fagades, murals or public art, iconic signage and/or lighting. • Niche / Specialty Retail, Entertainment. Restaurant — The City may consider providing incentives to "destination" retailers or restaurants that have the capability to attract customers from outside the area, serve as a catalyst for other development in the area, and/or provide new and different shopping, dining, or entertainment experiences. • Office — The City may consider providing incentives for corporate headquarters and/or regional offices as well as multi -tenant offices for professional services (accountants, engineers, architects, medical, information technology, lawyers, advertising and media, management consulting, financial, insurance, wealth management, actuary, etc.). • Distribution and Logistics — The City may consider providing incentives to support the supply chain of existing primary employers and better serve current and future neighbors. • Advanced and Light Manufacturing — The City may consider providing incentives for corporate headquarters and/or regional service locations. • Medical / Healthcare — The City may consider providing incentives to provide additional medical and healthcare related businesses to support the existing and better serve current and future neighbors. • Data Centers — The City may consider providing incentives for projects including data centers to support current and future businesses. List of Available Incentives The following may be offered by the City, CDC, and/or EDC for economic development projects that meet eligibility criteria. Not all tools are available for each project and any incentive is at the discretion of the Anna City Council and/or CDC and EDC Board. Investment from the City does not preclude other state, county or local incentives. • Chapter 380 Agreements — Authorized under Chapter 380 of the Texas Local Government Code, this agreement between the taxpayer and taxing entity offers a variety of fee -based or tax -based incentives, including grants, loans, or rebates to promote local economic development and stimulate business and commercial activity. • Economic Development Grants — The City has both Type A and Type B sales tax corporations. Funds may be available to finance qualified projects as determined by the Boards of the EDC and/or CDC. • Fee Reductions / Waivers — The City may consider decreasing or waiving certain development fees on eligible projects. 31 Page City of Anna Economic Development Incentive Policy — Updated September 16, 2020 • Triple Freeport Tax Exemption — The City, Anna Independent School District, and Collin County all allow freeport exemption on certain types of tangible personal property (i.e. inventory, etc.) from ad valorem property taxation provided the property is: o Acquired in or imported into Texas to be forwarded out of the state. o Detained in Texas for assembling, storing, manufacturing, processing, or fabricating purposes by the entity acquiring or importing it. o Transported out of state within 175 days after the date acquired or imported it into Texas. o Applications for freeport exemptions must be filed with the Collin County Appraisal District. • Infrastructure Assistance — The City may facilitate development through enhancement of water, sewer, and/or roadway infrastructure relevant to sites selected for significant projects as needed. • Modification of Development Reaulations / Standards — The City may provide provisions for modifying development standards or regulations for unique developments that support major new tax benefits for the City or incorporates construction or design features that far exceed the City's regulations. • Property Tax Rebates / Abatements — Authorized by Chapter 312 of the Texas Property Tax Code, the City may exempt all or a portion of the increase in the value of real and/or business personal property from taxation. A cost benefit analysis will be performed to determine the feasibility of the project as well as the percentage and terms of abatement. All abatements are subject to final approval of the City Council. • Public Improvement Districts (PID) — Authorized by Chapter 372 of the Texas Local Government Code, the City may finance the cost of qualified improvements within a defined area. Applications for a PID must be made separately from other incentives. Please refer to the City of Anna Public Improvement District Policy. • Tax Increment Reinvestment Zone (TIRZ) — Authorized by Chapter 311 of the Texas Tax Code, the City may use tax increment financing to enter into economic development and infrastructure reimbursement agreements to pay for improvements. The TIRZ, whether City -initiated or petitioned by the property owners, sets up a geographic boundary that can be used develop raw land and proactively address decline or deterioration. Note: The creation of a TIRZ may specify how tax revenue is allocated or spent but does not in any way impact the tax rate as TIRZs have no taxing or assessment powers. Statement on Tax Abatement The Property Development and Tax Abatement Act, Chapter 312, Texas Tax Code, allows the City to establish its own criteria for tax abatements. Tax abatements may be offered in two categories: 1) real property and/or 2) business personal property. Real property abatements may be offered to applicants that pursue the construction of new or expanded facilities in which to house the applicable project. The abatement will apply to the assessed value of improvements made. Business personal property abatements may be offerred to applications that pursue the purchase or long-term lease of existing facilities. The abatement will apply to the assessed value of new personal property brought into the taxing jurisdiction. Assessed value shall mean the taxable value of real property improvements and business personal property as determined by the county appraisal district in which the property is located. 4 1 P a g e City of Anna Economic Development Incentive Policy — Updated September 16, 2020 Value of Incentives The subject criteria outlined herein will be used in determining whether it is in the best interest of the City, CDC and EDC to provide incentive(s). Specific considerations include how the individual project furthers the goals and objectives of the community and the impact of the project. The public benefit or amount of revenue realized by the City and attributable to the project must equal or exceed the value of any incentives granted under the application. Eligible Activities Incentive funds may be used for one or more of the following to assist development or redevelopment: • Capital investment related to real property construction and acquisition • Improvements to an existing building • Infrastructure • Site enhancements such as upgraded aesthetics or amenities • Other purposes which bring value to the community as determined by the Anna City Council, EDC and CDC Exclusionary Factors While a project may meet all minimum project qualifications, it will not be considered for public investment if any of the following factors apply: • The project would, for any reason, result in a net reduction of the ad valorem tax valuation of facilities in the City owned by the company, or its parent, subsidiary or affiliated companies • The company is not in good legal or financial standing with the State of Texas (or other state if not formed in Texas), Collin County, or City • The company is not registered to do business in Texas as evidenced by the records of the Texas Secretary of State • The financial condition of the company is such that the ability of the company to meet its obligations is uncertain Public Information While Section 522.131 of the Texas Government Code (Public Information Act) makes information related to economic development negotiations between the City and business prospect confidential, any information provided by an applicant may be subject to release to the public pursuant to the Act. It is the responsibility of the applicant to clearly identify proprietary or confidential information it wishes to protect from release. According to Section 312.003 of the Texas Tax Code, part of an application that describes the specific process or business activities to be conducted or equipment or other property is not subject to public disclosure until the incentive agreement is executed. The City will make reasonable attempts to notify the applicant if a request is made for information that is indicated as confidential so that the applicant may assert its rights to be withheld from release to the Texas Attorney General. 5 1 P a g e City of Anna Economic Development Incentive Policy— Updated September 16, 2020 Application The first step for any applicant is to submit an application and include information detailing the criteria outlined above. For the application to be complete, the applicant shall prepare a map or other documents that show the precise location of the property. The map or other documents should show the existing uses and conditions of real property, proposed improvements and uses, and proposed zoning changes if applicable. Additional documentation should also show compatibility with the City of Anna's current Comprehensive Plan and applicable building codes and City ordinances. An application forfinancial or other incentives shall not be considered an application for a permit under Chapter 245 of the Texas Local Government Code. Applications are submitted through a third -party software program and can be found online at https://opportunityannatx.mm/the-edo-cdc/. Application Review Procedural Guidelines • All information in the application package will be reviewed for completeness and accuracy. • The City, EDC and CDC will not enter into an incentive agreement with any business entity unless, in accordance with Section 2252.908 of the Texas Government Code and rules adopted by the Texas Ethics Commission, a disclosure of interested parties is submitted. (Referenced: Form 1295) https:/Aw .ethics.state.tx.us/filinginfo/1295/ • The attached disclosure form is required to be executed before a notary and submitted before any incentives will be considered. • The City's Economic Development Department will review the application with the City Manager and appropriate City departments for internal review and comments. Additional information may be requested as needed. • The Anna Community Development Corporation (CDC) Board and/or Anna Economic Development Corporation (EDC) may serve as an advisory body which makes recommendations to the City Council regarding whether economic development incentives should be offered in each individual case. The CDC and/or EDC Board may also provide incentives using CDC/EDC funds when appropriate. All meetings of the CDC/EDC Board shall be held in compliance with the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Additional information may be requested as needed. • The CDC/EDC Board may consider adoption of a resolution approving the terms and conditions of a contract between the CDC/EDC and the applicant. • If the City Council decides to grant a tax abatement, it shall call a public hearing to consider establishment of a tax reinvestment zone in accordance with Section 312.201 of the Tax Code. This does not preclude the City from entering into a Chapter 380 agreement that may have incentives similar to those derived by tax abatement. • The City Council may consider adoption of an ordinance or resolution approving the terms and conditions of a contract between the City and the applicant governing the provision of the tax abatement or incentive and the commitments of the applicant, including all terms required by Section 312.205 of the Tax Code and other terms and conditions as the City Council may require • The City reserves the authority to enter into tax abatement agreements at differing percentages and/or terms, consistent with the requirements of the Texas Tax Code. The 6 1 P a 9 a City of Anna Economic Development Incentive Policy — Updated September 16, 2020 City also reserves the authority to enter into incentives agreements under Chapter 380 of the Texas Local Government Code. • Those receiving incentives will be required to enter into a performance agreement. Projects that do not meet performance measures are subject to recapture of all or a portion of the incentive value. 7 1 P a g e ANNA ECONOMIC DEVELOPMENT CORPORATION RESOLUTION NO. 07012021 A RESOLUTION OF THE ANNA ECONOMIC DEVELOPMENT CORPORATION AMENDING THE ECONOMIC DEVELOPMENT INCENTIVE POLICY TO PROMOTE ECONOMIC DEVELOPMENT AND STIMULATE BUSINESS AND COMMERCIAL ACTIVITY IN THE CITY OF ANNA WHEREAS, the EDC Board adopted the Economic Development Incentive Policy at a regular meeting on October 1, 2020 that was subsequently amended on March 4, 2021, and WHEREAS, after further review and consideration, the EDC wishes to amend the policy; NOW THEREFORE, BE IT RESOLVED BY THE ANNA ECONOMIC DEVELOPMENT CORPORATION, THAT: Section 1. Recitals Incorporated The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Approval of Amendments The Anna Economic Development Corporation hereby approves amendments to the Economic Development Incentive Policy attached hereto as Exhibit A. PASSED AND APPROVED by the Anna Economic Development Corporation this 1 st day of July 2021. APPROVED: :nonyD Rlcha«I:nn Lul 19, 20211733 COT Anthony Richardson, EDC President ATTEST: 7" l) Rocio Gonzalez, EDC Secretary ED Incentive Policy Edit EDC 07012021 Final Audit Report 2021-07-20 Created: 2021-07-14 By: Taylor Lough (tlough@annatexas.gov) Status: Signed Transaction ID: CBJCHBCAABAABPGbmWSzopzd-iTLgi89v3M320ndLWni "ED Incentive Policy Edit EDC 07012021" History Document created by Taylor Lough (tlough@annatexas.gov) 2021-07-14 - 9:43:46 PM GMT- IP address: 75.108.187.3 r Document emailed to Anthony D Richardson (anthony@opportunityannatx.com) for signature 2021-07-14 - 9:44:02 PM GMT Email viewed by Anthony D Richardson (anthony@opportunityannatx.com) 2021-07-19 - 10:37:39 PM GMT- IP address: 172.58.111.183 &0 Document e-signed by Anthony D Richardson (anthony@opportunityannatx.com) Signature Date: 2021-07-19 - 10:38:33 PM GMT - Time Source: server- IP address: 172.58.111.183 . Document emailed to Rocio Gonzalez (rociocgonzalez@yahoo.com) for signature 2021-07-19-10:38:35 PM GMT Email viewed by Rocio Gonzalez (rociocgonzalez@yahoo.com) 2021-07-20-1:18:34 AM GMT- IP address: 24.32.1.71 d© Document e-signed by Rocio Gonzalez (rociocgonzalez@yahoo.com) Signature Date: 2021-07-20 - 5:19:23 PM GMT - Time Source: server- IP address: 72.48.190.69 Agreement completed. 2021-07-20 - 5:19:23 PM GMT 0 Adobe Sign ANNA COMMUNITY DEVELOPMENT CORPORATION RESOLUTION NO. 07012021 A RESOLUTION OF THE ANNA COMMUNITY DEVELOPMENT CORPORATION AMENDING THE ECONOMIC DEVELOPMENT INCENTIVE POLICY TO PROMOTE ECONOMIC DEVELOPMENT AND STIMULATE BUSINESS AND COMMERCIAL ACTIVITY IN THE CITY OF ANNA WHEREAS, the CDC Board adopted the Economic Development Incentive Policy at a regular meeting on October 1, 2020 that was subsequently amended on March 4, 2021, and WHEREAS, after further review and consideration, the CDC wishes to amend the policy; NOW THEREFORE, BE IT RESOLVED BY THE ANNA COMMUNITY DEVELOPMENT CORPORATION, THAT: Section 1. Recitals Incorporated The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Approval of Amendments The Anna Community Development Corporation hereby approves amendments to the Economic Development Incentive Policy attached hereto as Exhibit A. PASSED AND APPROVED by the Anna Community Development Corporation this 1 st day of July 2021. APPROVED: ATTEST: 1n;hony U Richardson (W % 2021 15.01 CUT) Anthony Richardson, CDC President a 10 Rocio Gonzalez, CDC Secretary ED Incentive Policy Edit CDC 07012021 Final Audit Report 2021-07-09 Created: 2021-07-09 By: Taylor Lough (tlough@annatexas.gov) Status: Signed Transaction ID: CBJCHBCAABAAGpHNaPx2KnLNxj60gW90_XDAIsPzGj7O "ED Incentive Policy Edit CDC 07012021" History Document created by Taylor Lough (tlough@annatexas.gov) 2021-07-09 - 7:25:37 PM GMT- IP address: 75.108.187.3 �y Document emailed to Anthony D Richardson (anthony@opportunityannatx.com) for signature 2021-07-09 - 7:26:27 PM GMT Email viewed by Anthony D Richardson (anthony@opportunityannatx.com) 2021-07-09 - 8:00:43 PM GMT- IP address: 24.32.6.3 6o Document e-signed by Anthony D Richardson (anthony@opportunityannatx.com) Signature Date: 2021-07-09 - 8:01:14 PM GMT - Time Source: server- IP address: 24.32.6.3 �. Document emailed to Rocio Gonzalez (rociocgonzalez@yahoo.com) for signature 2021-07-09 - 8:01:16 PM GMT Email viewed by Rocio Gonzalez (rociocgonzalez@yahoo.com) 2021-07-09 - 9:03:33 PM GMT- IP address: 72.48.190.69 &0 Document e-signed by Rocio Gonzalez (rociocgonzalez@yahoo.com) Signature Date: 2021-07-09 - 9:04:32 PM GMT - Time Source: server- IP address: 72.48.190.69 0 Agreement completed. 2021-07-09 - 9:04:32 PM GMT Adobe Sign