ORDER NO. 19682 APPROVAL OF AMENDMENT TO RESOLUTION NO. 19476 (THE ENTERPRISE ZDNE CONCEPTS) BY PROVIDING FOR A NEW SCHEDULE OF TAX ABATEMENT WHEREAS, the Commissioners' Court o£ Kerr County desires to encourage economic development in severely distressed areas o£ the County and to provide employment to residents o£ such areas; and WHEREAS, Resolution No. 19476 was passed on April 19, 1990 in response to this desire; and WHEREAS, this resolution was designed to provide a schedule o£ tax abatement for new structures and improvements to existing structures which are located within the "Enterprise Zone" as well as provide abatement based on job creating; and WHEREAS, concerns were voiced by the Kerrville Independent School District Board that the tax abatement schedule was not sensitive enough to the spirit o£ "job creation"; NOW, THEREFORE, UPON MOTION MADE BY COMMISSIONER RAY, SECONDED BY COMMISSIONER MORGAN, THE COMMISSIONERS' COURT DF KERR COUNTY, TEXAS UNANIMOUSLY APPROVED BY A BUDRUM VOTE OF THE THREE COMMISSIONER'S PRESENT THAT, the schedule o£ tax abatement as described in Section 1, part (d) o£ Exhibit "A" o£ Resolution No. 19476, be amended to read as per attached copy o£ City o£ Kerrville Ordinance No. 9-13. CITY OF KERRVILLE, TEXAS Ordinance No. 90-13 AN ORDINANCE AMENDING ORDINANCE NO. 90-10 (THE ENTERPRISE ZONE ORDINANCE) BY PROVIDING FOR A NEW SCHEDULE OF TAX ABATEMENT VERSUS THE ONE CITED IN EXHIBIT "B" OF THE ORIGINAL ORDINANCE. WHEREAS, the City Council of the City of Kerrville, Texas desires to encourage economic development in severely distressed areas of the city and to provide employment to residents of such area; and WHEREAS, Ordinance No. 90-10 was passed on second reading on May 8, 1990 in response to this desire; and WHEREAS, this ordinance was designed to provide a schedule of tax abatement for new structures and improvements to existing structures which are located within the "Enterprise Zone" as well as provide abatement based on job creation; and WHEREAS, concerns were voiced by the Kerrville Independent School District Board that the tax abatement schedule was not sensitive enough to the spirit of "job creation; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KERRVILLE, KERB COUNTY, TEXAS: THAT the schedule of tax abatement as provided in Section 3, B of Ordinance 90-10, a s described in Section 1, part (d) of Exhibit "B", be amended to read as follows: ' Proiect Costs or Jobs = Percent Taxes Abated by Year {whichever is greater) 1st yr.-2nd yr.-3rd yr.-4th yr-5th yr 150,000- 250,000 or 5-15 75% 50% 35%-- 15% 0% 250,001- 400,000 or 16-23 75°s 55% 40$ 25% 10% 400,001- 600,000 or 24-31 75°s 60% 45% 30% 15$ __ 600,001- 800,000 or 32-39 80% 65°s 50$ 35% 20% 800,001-1,000,000 or 40-47 85% 70% 55s 40% 25% 1,000,000-1,250,000 or 48-55 90% 75% 60°s 50°s 30% 1,250,001-1,500,000 or 56-63 95°s 80% 65% S5% 35% 1,500,001-1,750,000 or 64-71 100% 85% 70% 60% 40% 1. Any project with project costs more than $1,750,00 0 or creating more than 71 new jobs will be individually negotiated. AND THAT the rest of Ordinance 90-10 remain the same as previously passed. ;, Attachment 3a, page 1 of 8 (additio - ~ -- n) t 4 Project Costs or Jobs =Percent Taxes Abated by Year (whichever is greater} 1st yr.-2nd yr.-3rd yr.-4th yr-5th yr $100,001- 200,000 or 2- 5 75% 60% 50% 40% 30% 200,001- 300,000 or 6- 9 75% 65°s 55°s 45°s 35°s 300,001- 400,000 or 10-13 80°s 70% 60% 50% 40% 400,001- 500,000 or 14-17 85% 75% 65% 55% 45% 500,001- 600,000 or 18-Z1 90% 80% 70% 60% 50°s 600,001- 700,000 or 22-24 95% 85% 75% 65% 55°s 700,001- 800,000 or 25-28 100% 90% 80°s 70% 60% Any project with costs in excess of $800,000, or more than 28 new jobs created, will be individually negotiated. 3. Expansion, modernization or new construction, of commercial facilities and structures in areas other than the Central Business District of the City. Project Costs or Jobs =Percent Taxes Abated by Year (whichever is greater) 1st yr.-2nd yr.-3rd yr.-4th yr-5th yr $100,001- 200,000 or 2- 5 70% 50°s 40% 30% 20% 200,001- 300,000 or 6- 9 70% 55% 45% 35% 25% 300,001- 400,000 or 10-13 70% 60% 50% 40% 30% 400,001- 500,000 or 14-17 75% 65% 55% 45% 35% 500,001- 600,000 or 18-21 80% 70°s 60°s 55% 40% 600,001- 700,000 or 22-25 85°s 75% 65% 60% 50% 700,001- 800,000 or 26-29 90% 80% 70% 65% 55% 800,001- 900,000 or 30-33 95% 85% 75% 70% 60% 900,001-1 ,000,000 or 34-37 100% 90°s 80% 75% 65°s Any project with costs in excess. of, $1,000,000, or more_than_ 37 new jobs created, will be individually negotiated. (e) Approved projects that further improve their facilities, or in the case of industry, create new jobs, during the period of their agreement for tax abatement, are eligible to negotiate a new contract with the City under the guidelines herein as to the additional improvements, leaving in place the original agreement as to the prior improvements. (f) If a modernization project includes facility replacement, the abated value shall be the value of the new unit(s) less the value of the old unit(s). (g} Each year's abatement percentage will be based upon that year's evaluation. ,. ... .. ...-.+..:n a+-.,«.. c;,am. ',::; :>.. ,.._ .,.._. ;....,_ _ .. ,_,,,,, ,,, ,,,;,' .-., G. is ~ .. - - ~~~~~- ~.,, ..., t_ CITY OF KERRVILLE, TEXAS Ordinance No. 90-13 AN ORDINANCE AMENDING ORDINANCE NO. 90-10 (THE ENTERPRISE ZONE ORDINANCE) BY PROVIDING FOR A NEW SCHEDULE OF TAX ABATEMENT VERSUS THE ONE CITED IN EXHIBIT "B" OF THE ORIGINAL ORDINANCE. WHEREAS, the City Council of the City of Kerrville, Texas desires to encourage economic development in severely distressed areas of the city and to provide employment to residents of such area; and WHEREAS, Ordinance No. 90-10 was passed on second reading on May 8, 1990 in response to this desire; and WHEREAS, this ordinance was designed to provide a schedule of tax abatement for new structures and improvements to existing structures which are located within the "Enterprise Zone" as well as provide abatement based on job creation; and WHEREAS, concerns were voiced by the Kerrville Independent School District Board that the tax abatement schedule was not sensitive enough to the spirit of "job creation; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KERRVILLE, KERB COUNTY, TEXAS: r _ ~~ THAT t c ~„ gr-©v-ided- ~~~'~~ ~~ ~a a c n .in..~ectlon,. --3 =-~-a~=_= ~ des ribed in 5 ection 1, part (d) of Exhibit ,8", be amended to Xead as follows: Proiect Costs or Jobs = Percent Taxes Abated by Year (whichever is greater) 1st yr.-2nd yr.-3rd yr.-4th yr-5th yr 150,000=- 250,000 or 5-15 75$ 50$ 35$.. 15% 0$ 250,001- 400,000 or 16-23 75$ 55$ 40$ 25$ 10$ 400,001- 600,000 or 24-31 75$ 60$ 45'a 30°s 15$ _ 600,001- 800,000 or 32-39 80$ 65$ 50$ 35$ 20$ 800,001-1,000,000 or 40-47 85$ 70$ 55$ 40$ 25$ 1,000,000-1,250,000 or 48-55 90% 75$ 60°s 50$ 30% 1,250,001-1,500,000 or 56-63 95$ 80$ 65$ 55$ 35$ 1,500,001-1,750,000 or 64-71 100$ 85% 70$ 60% 40$ 1. Any project with project costs more than $1,750,00 0 or creating more than 71 new jobs will be individually negotiated. AND THAT the rest of Ordinance 90-10 remain the same as previously passed. UV ~' Attachment 3a, page 2 of 8 (addition) - _~ ~ ySProject Costs or Jobs =Percent Taxes Abated by Year `~5 (whichever . is greater) 1st yr.-2nd yr.-3rd yr.-4th yr-5th yr ' $100,001- 200,000 or 2- 5 75% 60% 50% 40% 30% 200,001- 300,000 or 6- 9 75% 65% 55°s 45°s 35°s 300,001- 400,000 or 10-13 80% 70% 60% 50% 40% 400,001- 500,000 or 14-17 8S% 75% 65°s 55% 45% 500,001- 600,000 or 18-21 90% 80°s 70% 60% 50% 600,001- 700,000 or 22-24 95% 85% 75% 65% 55% 700,001- 800,000 or 25-28 100% 90% 80% 70% 60% Any project with costs in excess of $800,000, or more than 28 new jobs created, will be individually negotiated. 3. Expansion, modernization or new construction, of commercial facilities and structures in areas other than the Central Business District of the City. Project Costs or Jobs =Percent Taxes Abated by Year (whichever is greater) 1st yr.-2nd yr.-3rd yr.-4th yr-5th yr }~~ $100,001- 200,000 or 2- 5 70% 50% 40% 30% 20% ~~i 200,001- 300,000 or 6- 9 70% 55% 45% 35% 25% f 300,001- 400,000 or ZO-13 70% 60% 50% 40°s 30°s bn°% 400,001- 500,000 or 14-17 75% 65% 55% 45% 35% 500,001- 600,000 or 18-21 80% 70°s 60% 5S% 40% 600,001- 700,000 or 22-25 85% 75% 65°s 60°s 50% 700,001- 800,000 or 26-29 90% 80% 70°s 6S% 55% 800,001- 900,000 or 30-33 95% 85% 75% 70°s 60% 900,001-1 ,000,000 or 34-37 100% 90°s 80% 75% 65% Any project with costs in excess. of $1,000,000, or more than 37 new jobs created, will be individually negotiated. (e) Approved projects that further improve their facilities, or in the case of industry, create new jobs, during the period of their agreement for tax abatement, are eligible to negotiate. a new contract with the City under the guidelines herein as to the additional improvements, leaving in place the original agreement as to the prior improvements. (f} If a modernization project includes facility replacement, the abated value shall be the value of the new unit(s) less the value of the old unit(s). (g) Each year's abatement percentage will be based upon that year's evaluation. _.K ,.~,, .,... ....,w_ .~ .__ ....-..,,... z -.: ,..a , COMMISSIONERS' COURT AGENDA REQUEST • pi FncF FURNISH ONE ORIGINAL AND SEVEN COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT MADE BY: Gordon Morgan OFFICE: County Commissioner, Precinct 1 MEETING DATE: AuQUSt z, 1990 TIME PREFERRED: SUBJECT: (PLEASE BE SPECIFIC): Presentation on Economic Development. CSTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: NAME OF PERSON ADDRESSING THE COURT: Phil Neighbors Time for submitting this request for Court to assure that the matter Is posted In accordance wtth Article 6252- 17 Is as follows: • Meetings held on second Monday: 12:00 P. M. previous Wednesday • Meetings held on Thursdays: 5:00 P. M. prevtous Thursday. If preferable, Agenda Requests may be made on office stationery with the above Information attached. TIiIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests well be screened by the County Judge's Office to determine If adequate information has been prepared for the Court's formal consideration and action at time of Court meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity.