HomeMy WebLinkAboutRes 06-19 Adopting Economic Development Incentive PolicyTOWN OF WESTLAKE
RESOLUTION NO. 06-19
A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE,
TEXAS, ADOPTING AN ECONOMIC DEVELOPMENT INCENTIVE POLICY.
WHEREAS, the flown of Westlake, Texas, relies upon the generation of Sales and Use
Taxes for basic city operations; and
WHEREAS, the Town of Westlake aggressively pursues sales tax producing enterprises
that meet the Town's high development standards; and
WHEREAS, Chapter 312 of the Texas Tax Code requires that guidelines and criteria be
adopted by the Board of Aldermen before entering into any Economic Development Agreement
that provides reimbursement of taxes; and
WHEREAS, Chapter 380 of the Texas Local Government Code allows the Board of
Aldermen to create policies for economic development and any related grants or incentives.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE
TOWN OF WESTLAKE, TEXAS:
SECTION 1: The above findings are hereby found to be true and correct and are
incorporated herein in its entirety.
SECTION 2: The Board of Aldermen of the Town of Westlake, Texas, adopts the
attached Exhibit A, Town of Westlake Economic Development Incentive Policy and directs the
Town Manager to immediately submit an Economic Development Agreement to the Board of
Aldermen consistent with the terms of this policy.
PASSED AND APPROVED ON THIS 8th DAY OF MAY, 2006.
ATTEST:
T an Dwinnell, To ;,-n Secretary
APPRO F RM:
L. anton o o Attorney
Scott Bradfey, Mayor
Trent O. Petty, TVdn Manager
EXHIBIT A
Town of Westlake
Economic Development Incentive Policy
Section I. General Purpose and Objectives
The Town of Westlake, Texas, ("Town") is committed to the promotion and retention of
high quality development in all parts of the Town as park of an overall effort to improve
the quality of life for its residents. Since these objectives can be served, in part, by the
expansion of its commercial business, retail, and mixed use base, the Town will, on a
case-by-case basis, give consideration to providing tax abatements, economic
development grants, loans, and other incentives (collectively referred to as "Incentives")
as may be allowed by law as stimulation for selected economic development within the
community. It is the policy of the Town that consideration will be provided in
accordance with the criteria set forth in this document. Nothing within this policy shall
imply or suggest that the Town is under any obligation to provide Incentives to any
applicant. All applicants ("Applicants") for any Incentives shall be considered on a case-
by-case basis.
Section II. Applicability
This Economic Development Incentive Policy (the "Policy") establishes guidelines and
criteria for Incentives as allowed for by the provisions of Chapter 312 of the Texas Tax
Code, and other economic grants, loans, or incentives as authorized by Chapter 380 of the
Texas Local Government Code, the Development Corporation Act, Article 5190.6, Tex.
Rev. Civ. Stat., Article III, Section 52-a of the Texas Constitution, and other applicable
laws. Any Incentive approved by the Town's Board of Aldermen ("Board of Aldermen")
pursuant to the Policy must be memorialized in an agreement to be executed and
approved by the Town and applicant (the "Incentive Agreement").
Section III. Tax Abatement Criteria
A. Any application for tax abatement shall be reviewed and approved or disapproved
by the Board of Aldermen and, if applicable, consider the recommendations of the
Westlake Development Corporation and/or the Westlake 4A Corporation. In general, the
application will be considered based upon the following:
• The `value added' to the community by the Applicant's proposed project;
• The likelihood of the development of the proposed project without
abatements;
• The comparison of the use of abatements versus the use of other potential
incentives.
B. Specific considerations for approving tax abatement applications will be based
upon the degree to which the proposed project:
• Furthers the goals and objectives of the Town as expressed in the Town's
Comprehensive Plan, Planned Development District Ordinances, and
infrastructure plans;
• Impacts the Town's costs and ability to provide municipal services;
• Impacts the local environment, housing market, and available infrastructure;
• Offers potential for long term payback in tax and/or other revenues for the
Town's investment;
• Potentially stimulates other desirable economic development within the Town.
C. Term of the Abatement — A tax abatement may be granted for a maximum of ten
years. The term of the abatement may be granted for a lesser number of years depending
upon the anticipated `value added' to the Town.
Section IV. Value of the Project
The amount of the Incentive will be determined by the Board of Aldermen based upon
the merits of the economic development project (the "Project'), including, but not limited
to, the factors referenced in paragraph III. B. (above) and the following specific economic
considerations:
total capital investment;
added employment;
generation of other tax revenues.
Incentives may be granted only for the additional value of eligible property
improvements described in the Project and listed in the executed tax abatement
agreement. Target thresholds are established as expected qualifying levels for abatement
consideration as indicated in paragraphs A and B as follows:
A. For New Businesses or Development - The Project must be reasonably expected
to produce an added value of five million dollars ($5,000,000) in real and personal
property improvements within the Town of Westlake; or to create a minimum of 200 fall -
time jobs, or to generate annual sales tax revenues to the Town of at least $100,000.
B. For Expansion or Modernization of Existing Businesses or Development — The
Project must be reasonably expected to produce an added value of two million dollars
($2,000,000) in real and personal property improvements within the Town, or to create a
minimum of 100 full time jobs, or to generate additional annual sales tax revenues to the
Town of at least $50,000.
Section V. Inspection, Verification and Incentive Modification
The terms of an Incentive Agreement shall include the Town's right to:
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(a) require the submission of an annual certification of compliance for the property
receiving an Incentive; (b) conduct an on-site inspection of the project in each year
during the life of the Incentive to verify compliance with the terms of the Agreement and
the Policy; and (e) reduce or eliminate the Incentive if the applicant has failed to comply
with the requirements of the Incentive Agreement.
Section VI. Evaluation
Upon completion of the Project, the Town shall no less than annually evaluate each
Project receiving an abatement to insure compliance with the terms of the agreement.
Any incidents of non-compliance will be reported to all affected taxing units.
Section VII. Severability and Limitation
In the event that any section, clause, sentence, paragraph or any part of this Policy shall,
for any reason, be adjudged by any court of competent jurisdiction to be invalid, such
invalidity shall not affect, impair, or invalidate the remainder of the guidelines and
criteria in this Policy.
Section VIII. Expiration and Modification
This Policy is effective upon the date of its adoption and will remain in force for two
years, at which time Incentive Agreements created pursuant to its provisions will be
reviewed by the Board of Aldermen to determine whether the objectives of the Policy are
being achieved. Based upon that review, this Policy may be modified, renewed or
eliminated. However, any Incentive Contracts created pursuant to this Policy will remain
in effect according to their respective terms without regard to any change to this Policy
unless mutually agreed by the parties.
Section IX. Economic Development Grants, Loans, and Other Incentives
A. Any application for economic development grants, loans, and other incentives
shall be reviewed and approved'or disapproved by the Board of Aldermen. In the review
process, the Board of Aldermen will, if applicable, consider the recommendations of the
Westlake Development Corporation and/or the Westlake 4A Corporation. Any such
economic development grants, loans, and other incentives may come from any one or
combination of the following:
• Grants or loans as authorized by Chapter 380 of the Texas Local Government
Code;
• The general Sales and Use taxes of the Town;
• Sales and Use taxes collected pursuant to section 4A and/or 4B of Article
5190.6, Tex. Rev. Civ. Stat.; and/or
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Any other lawful source of revenue of the Town including, but not limited to,
bond or other debt financing which further the purpose of economic
development.
B. To be eligible to apply and qualify for consideration of any grants, loans, and
other incentives under this Section, the applicant must submit documentation, and enter
into an Incentive Agreement, which indicates the specific details of the Project and
compliance with the Policy.
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