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HomeMy WebLinkAboutResolution 1998-021 RESOLUTION NO. 98-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS AMENDING GUIDELINES & CRITERIA FOR GRANTING TAX ABATEMENT IN REINVESTMENT ZONES CREATED IN THE CITY OF NORTH RICHLAND HILLS. WHEREAS, the North Richland Hills City Council has previously adopted a set of "Guidelines & Criteria" for granting tax abatement in reinvestment zones created within the City of North Richland Hills, Texas; and WHEREAS, the adopted "Guidelines & Criteria" authorize abatements for approved manufacturing, research, regional distribution, regional service, regional entertainment/tourism, regional retail, regional health care or other basic industry facilities; and WHEREAS, the "Guidelines & Criteria" presently allow the value of an abatement to total 100 percent of the value of eligible property improvements in a single year; and WHEREAS, the North Richland Hills City Council has taken an informal position in the past year of limiting the value of future abatements to not exceed 50 percent of value of eligible property in a single year; and WHEREAS, the present "Guidelines & Criteria" definitions for regional retail and regional entertainment/tourism facilities differ as to geographic source of a majority of revenues and amount of minimum investment required for abatement qualification; and WHEREAS, both regional retail and regional entertainment/tourism facilities can generate large amounts of sales tax revenues for the City. NOW THEREFORE BE IT RESOLVED that the North Richland Hills City Council does hereby amend the "Guidelines & Criteria" for granting tax abatement in reinvestment zones created within the City of North Richland Hills, Texas, as follows (items changed or amended are underlined): Section 1, DEFINITIONS: (n) "Regional Entertainment/Tourism Facility" means buildings and structures, including fixed machinery and equipment, used or to be used to provide entertainment and/or tourism-related services, from which a majority of revenues generated by activity at the facility are derived from outside North Richland Hills. Resolution 98- 21 Page 2 Section 2, ABATEMENT AUTHORIZED, (I) Economic Qualification, (1) and (3), and (h) Value and Term of Abatement to read as follows: (1) For a new facility (with the exception of a regional retail or regional entertainment/tourism facility), be reasonably expected to invest not more than three million dollars ($3,000,000) in the facility (including both eligible and ineligible property) within three years from commencement of construction and be expected to create employment for not less than 10 persons associated with production of goods and services as the authorized facility on a full-time permanent basis in the City of North Richland Hills. (3) For regional retail and regional entertainment/tourism facilities, be reasonably expect to invest not less than five million ($5,000,000) in the facility (including both eligible and ineligible property) with three years from the commencement of construction and be expected to create employment for not less than 10 persons associated with the production of goods and services at the authorized facility on a full-time, permanent basis in the City of North Richland Hills. (h) Value and Term of Abatement. Abatement shall be granted effective with the January 1 valuation date immediately following the date of execution of the agreement. The value and term of abatement on new eligible property shall be determined as follows: The value of the abatement shall be equal to 500 percent of investment by the business in eligible property described in Section 2(3), above. The City Council or its designated representative, shall work with the applicant, prior to the execution of an abatement agreement, to determine the exact schedule for the abatement. Under no circumstances shall the value of the abatement exceed .5..Q percent of the value of eligible property in a single year, and the duration of an abatement agreement shall not exceed 10 years or one-half (1/2) the economic life of the eligible property, whichever is less. Resolution 98- 21 Page 3 PASSED AND APPROVED this 27th day of April, 1998. APPROVED: / ! , . LJ.)l·V own, Mayor ATTEST: . '~ì / / ~/t;((2<;//{ f.-)é¿t~ì-- \ -" '-Patricia Hutson, City Secretary APPROVED AS TO WORDING AND CONTENT: . I '1' l' ~",~,.j~t·~-'\'^,\ \" ". ,,' i fl, f," \~"\'v, "\'\~" \" 'j \., -J .J ¡ \. . MartY)Meder, Director of Economic Development APPROVED.AS TO (P.RM AN~ LEGALITY: \" /,/, '. j/S:' Re M~Entire~ A:~ fO~ the c~