RE 09-12-95.1 A RESOLUTION OF THE CITY OF COPPELL, TEXAS
RESOLUT ION NO. 091295.1
A RESOLUTION OF THE CITY OF COPPELL, TEXAS, AMENDING THE
GUIDELINES AND CRITERIA FOR TAX ABATEMENT AGREEMENTS; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the enhancement of the local economy is in the best interest of the
citizens of the City of Coppell, Texas; and
WHEREAS, the establishment of economic development incentives such as tax
abatements may encourage enhancement of the local economy; and
WHEREAS, the City Council of the City of Coppell desires to amend its Criteria and
Guidelines for Tax Abatement Agreements by clarifying the eligibility requirements;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS:
SECTION 1. The City of Coppeli, Texas, hereby continues to make tax abatements
available as an economic incentive as authorized by the Property Redevelopment and Tax
Abatement Act codified at Chapter 312 of the Texas Tax Code.
SECTION 2. The City of Coppell Guidelines for Tax Abatements attached hereto
as Exhibit 'A," be and the same are hereby adopted as the amended guidelines and criteria
governing tax abatement agreements for the City of Coppell, Texas, and shall govern all tax
abatement matters considered by the City from and after the effective date of this
resolution. The City shall not enter into any tax abatement agreement unless it finds that
the terms of the agreement and the property subject to the agreement substantially meet the
applicable guidelines and criteria herein adopted. Any agreement executed pursuant to
previously adopted guidelines and criteria shall be governed by the applicable guidelines and
criteria in effect at the time of the execution of the agreement. The guidelines and criteria
adopted herein shall be effective for two (2) years from the date of this resolution. During
that period, the guidelines and criteria may be amended or repealed only by a vote of three-
fourths of the City Council.
AGG059C9
SECTION 3. This resolution shall become effective upon its passage as the law and
charter in such cases provide.
DULYthis RESOLVEDthe ANDof AD~__D b~. ~heAD I) b the, CitY1995.Council of the City of Coppell,
Texas, on /~2. day ~
CITY OF COPPELL, TEXAS
' YOM MORTON, MAYOR
ATTEST:
APPROVED AS TO FORM:
(PGS/ct 8-24-95)
AGGO~gC9
CITY OF COPPELL, TEXAS
GUIDELINES FOR TAX ABATEMENT
GENERAL PURPOSES AND OB.IECTIVES
The City of Copp¢li is committed to the promotion of high quality development in all parts
of the City and to an ongoing improvement in the quality of life for its citizens. Insofar as
these objectives are generally served by the enhancement and expansion of the local
economy, the City will on a case by case basis give consideration to providing incentives as
a stimulus for economic development in Coppell. It is the policy of the City that such
consideration will be provided in accordance with the procedures and criteria outlined in
this document. Nothing herqin shall imp~ or surest that the City. of Coppell is under
ob~gation to provide any incentive £o any_ applicant. ~lll appl;tcants shall be considered on a
case by case bast~
According to the Property Redevelopment and Tax Abatement Act, codified at Chapter 312
of the Texas Tax Code, the City may only grant tax abatement on the increment in value
added to a particular propert~ by specific development proposal which meets the economic
development goals and objectives of the City. The tax abatement may only apply to the real
estate portion of the project or the tangible personal property added to the real estate or
both. Inventory and supplies may not be included.
Tax abatements are granted to the owners of real and personal property; for projects where
the real estate is leased, special terms and conditions may be provided in the agreement.
MINIMUM STANDARDS FOR TAX ABATEMENT
To be considered eligible for a tax abatement, the proposed project and/or property must
meet the following criteria:
Tax Abatement Guideliaea - Page
Ed. 8/17/95
1. An investment of at least $5.5 million in taxable assets. The acquisition cost
of the real estate is not included in computing the amount of taxable assets.
Construction costs are not necessarily indicative of the taxable value of the
property. (The taxable value is determined by the Central Appraisal District
as of January 1 of each year.)
2. The project makes a substantial contribution to redevelopment efforts.
3. The project has high visibility, image impact, or is of a significantly higher
level of development quality.
4. The project is an area which might not otherwise be developed because of
restraints of topography, ownership patterns, site configuration, or other
constraints.
5. The project stimulates concentration of employment and/or commercial
activity.
6. A project submitted for tax abatement shall be subject to fiscal impact
analysis to determine whether or not the services required for the facility will
exceed the amount of taxes generated if an abatement was provided. No tax
abatement will be offered to a project that generates negative costs to the
City.
Applicants must provide a written narrative detailing how a project meets the above
minimum standards.
OBJECTIVE CRITERIA
The following criteria is designed to evaluate specific components common to all applicants.
1. How much property tax base will be added? There must be at least $5.5
million in tax base added to the property to be eligible for tax abatement.
2. How much local annual payroll will be created?
3. How many new jobs will be created?
4. An investment of at least $5.5 million in taxable assets.
Tax Abatement Guidelines - Page 2
Ed. 8/17/95 AGG~FAF
SUBJECTIVE CRITERIA
The applicant must respond in written narrative format to the following:
1. Is the project sponsor a local company?
2. What types and values of public improvements, if any, will be made by the
applicant?
3. Will the applicant be the owner or lessee? If lessee, are occupancy
commitments already existing?
4. Does or can the project meet all relevant zoning, subdivision and other legal
requirements?
5. What impact will the project have on other taxing units?
(Coppell Independent School District)
6. Are the new jobs to be created likely to be filled by Coppell's local labor
force?
7. Will the project increase the business opportunities of existing local
businesses?
8. Is the project consistent with the comprehensive plan of the City?
9. Is the level of quality significantly higher than the typical projects of a similar
use? Are site amenities provided such as landscaping, public art, water
fountains, plazas, etc.?
10. Does the project pose any negative environmental, operational, visual or other
impacts (i.e. pollution, noise, traffic congestion, etc.)?
AMOUNT OF TAX ABATEMENT
The above criteria will be used to determine whether it is in the best interest of the City to
provide tax abatement to a particular applicant. The categories itemized below have been
identified as desirable for the community. Once a determination has been made that a tax
abatement is in the best interest of the City, the value and term of the abatement will be
determined from the following:
Tax Abatement Guidelines - Page 3
Ed. 8/17/95 saa0~F^~
1. Tax abatements are available for both new facilities and structures and for the
expansion and modernization of existing facilities and structures. The City of
Coppell would provide up to 75% tax abatement for a warehousing and
distribution facility, up to 50% abatement for a fabrication and assembly
facility, and 25% for a manufacturing and processing facility. The following
definitions shall apply to the aforementioned categories.
Warehousing and Distribution ~ Temporary storage of materials received
in bulk for later transfer or shipment in
smaller lots and in combination with other
materials received.
Fabrication and Assembly- The connection of standard, previously
manufactured components to form a
consumer product.
Manufacturing and Processing - The combining of raw materials to form
finished products which are physically
altered and result in consumer products.
Any other uses, not elsewhere listed ia this policy, will have to be considered
on an individual basis to evaluate the desirability and compatibility of the
proposed use for th.e community. All determined "desirable uses" by the City
will receive no more than 75% tax abatement.
2. Tax abatements are for a period of five (5) consecutive tax years; however,
the City may delay the commencement of the tax abatement until January 1
of the second year following the year in which the tax abatement agreement
is executed (i.e. tax abatement agreement is entered into during calendar year
1994 -- the first year of taxes subject to abatement would be January 1, 1996).
3. A project may be granted a tax abatement on real and/or personal property
for a period of up to five years, depending on the evaluation of the tax
abatement guideline criteria. The actual percentage of taxes subject to
abatement for each year of an agreement will be determined from the
schedule provided below; and will apply only to the portion of the taxable
value of the real property or of the tangible personal property located on the
real property, or both that exceeds that property's taxable value for the year
in which the agreement is executed (base year). The tax abatement
agreement for tangible personal property may only apply to the personal
property added to the real property after the agreement is executed.
Tax Abatement Guidelines - Page
Ed. 8/17/95
SCHEDULE
Assuming an investment of at least $5.5 Percentage of abatement of the excess
million in taxable assets, the amount bytaxable value
which the total assessed taxable value of
the real property and/or tangible Warehousing and Distribution -
personal property, or both exceeds the Maximum 75%
assessed taxable value for the property in
the year the agreement is executed (base Fabrication and Assembly - Maximum
year). 50%
Manufacturing and Processing -
Maximum 25%
ltaxable value of property for each year of abatement - base year taxable value -- excess taxable value subject to abatement % above]
PROCEDURAL GUIDELINES
Any person, organization or corporation desiring that the City consider providing tax
abatement to encourage location o¥ expanded operation within thc city shall comply with
these procedural guidelines. Nothing within these guidelines, shall be con. rtrued to 5uggest that
the City_ is under any_ obl~ation to provide any_ abatement to any_ applictmt even if certain
criteria are satisfied. The City reserves the right to re_iect any_ applicatiorr
APPLICATION
Applicant should submit an application for tax abatement to the City Manager addressing
the above criteria including a legal description of the property and a plat showing the
precise location of the property, all roadways within five hundred feet of the site, and all
existing zoning and land uses within five hundred feet of the site.
APPLICATION REVIEW PROCESS
The application will be reviewed by the Tax Abatement Committee consisting of the City
Manager, three representatives from the Economic Development Partnership, the Chairman
of the Finance Committee and the City's Tax Assessor. The Committee will serve as an
advisory body to the City Council in determining whether a tax abatement should be offered.
The Committee's recommendation shall be based upon a subjective evaluation of the
Tax Abatement Guidelines - Page
Ed. 8/17/95
completed application. The committee may invite representatives from the Coppell
Independent School District, Dallas County, Tarrant County or Denton County, to
participate in the review.
All information submitted will be reviewed for completeness, accuracy, and according to the
guidelines and criteria. Additional information may be requested as needed.
The application may be distributed to appropriate City departments for internal review and
comments.
Copies of the complete application package and staff comments, if any, will be provided to
other taxing entities (Coppell Independent School District, Dallas, Tm'rant or Denton
County).
The staff will make recommendations on the application to the Tax Abatement Committee.
If needed, the Tax Abatement Committee will meet with the applicant.
The recommendation of the Tax Abatement Committee will be forwarded to the chief
administrative officer of other applicable taxing units.
Based on the recommendation of the Committee the City Council may consider a resolution
calling a public hearing to consider, the establishment of a tax reinvestment zone. (Before
the City may enter into a tax abatement agreement, the property involved must be
designated as a reinvestment zone.)
City Council then holds a public hearing to determine whether or not the property involved
should be designated as a reinvestment zone; and whether the project is feasible and
practical and would be a benefit for to the City after expiration of the agreement. (At the
public hearing, the City staff and/or the applicant may make a presentation following which
interested persons may speak for or against the designation.)
After the public hearing the City council will consider adoption of the resolution desiguat'mg
the area described in the legal description of the proposed project as a tax abatement
reinvestment zone. The resolution will further authorize the City Manager to negotiate an
agreement with the applicant governing the provision of the tax abatement.
ADOPTION OF AGREEMENT
Any tax abatement agreement must include the following:
1. General description of the project.
Tax Abatement Guidelines - Page 6
Ed. 8/17/95 ~,Ga06F~,F
2. Amount of tax abatement.
3. Method for calculating the value of the abatement.
4. Term of the abatement.
5. Legal description of the property.
6. Type, number, location and timetable of planned improvements.
7. Any specific terms or conditions to be met by applicant.
The agreement will be presented to the City Council for adoption whereupon it will be
executed by the City Manager and by the specified official of any other participating taxing
unit.
Should the terms of the tax abatement agreement subsequent~_ not be satisfied, the tax
abatement shall be null and void and all abated taxes wilt immediate!~ become due and
pay_able to the City. of Coppell and any other taxing jurisdiction participating in the tax
abatement _agreement. Provisions to this effect will be incorporated into the agreement.
Tax Abatement Guidelines - Page 7
Ed. 8/17/95 Aaa06FaF