RE 12-12-95.2 A RESOLUTION OF THE CITY OF COPPELL, TEXAS
RESOLUTION NO. 121295.2
A RESOLUTION OF THE CITY OF COPPELL, TEXAS, ADOPTING
AMENDED GUIDELINES, CRITERIA AND PROCEDURE FOR TAX ABATEMENT
AGREEMENTS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, enhancement of the local economy is in the best interest of the citizens
of the City of Coppell; and
WHEREAS, the establishment of economic development incentives such as tax
abatement may encourage enhancement of the local economy; and
WHEREAS, the City Council of the City of Coppell desires to continue to elect to
be eligible to participate in tax abatement and to continue the previous criteria and
guidelines governing tax abatement agreements,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS:
SECTION 1. The City of Coppell, Texas, hereby continues its election to participate
in tax abatement as authorized by the Property Redevelopment and Tax Abatement Act of
the State of Texas.
SECTION 2. The "CITY OF COPPELL, TEXAS GUIDELINES, CRITERIA AND
PROCEDURE GOVERNING TAX ABATEMENT AGREEMENTS," 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 and shall govern all tax
abatement matters considered by the City from and after the effective date of this
resolution. The City Council shall not enter into a Tax Abatement Agreement unless it
finds that the terms of and the property the subject of the agreement meet the applicable
guidelines and criteria herein adopted. Provided, however, 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 such agreement.
SECTION 3. This resolution shall become effective upon its passage as the law in
such cases provides.
1 AGGOTA7E
DULY RESOLVED AND ADOPTED by the City Council of the City of Coppell,
Texas, on this the 12th day of December, 1995.
CITY OF COPPELL, TEXAS
TOM MORTON, MAYOR
ATTEST:
LIND-A' GRAU, CITY-SECRETARY
APPROVED AS TO FORM:
FLUTER G. SMIT~, 'CITY ATTORNEY
(PGS/ct 12/6/95)
2 AGGO7A7E
ClTY OF COPPELL, TEXAS
GUIDELINES FOR TAX ABATEMENT
GENERAL PURPOSES AND OBJECTIVES
The City of Coppell 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 herein shall irnp~_ or su_egest that the City_ o_£ Co_~vell is under
obligation to provide any_ incentive to any a_vplicant. All a_vplicants shall be conddered on a
case b~v case basi~
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 oro_ven~ 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 will be required in the agreement.
Tax Abatement Guidelines - Page 1
Ed. 12/6/95 ._._ AGGO7ATF
MINIMUM STANDARDS FOR TAX A~ATEMENT
To be considered eligible for a tax abatement, the proposed project and/or property must
meet the following criteria:
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 City may consider tax abatement for an investment less than $5.5 million
in taxable assets based upon City evaluation of economic development factors,
including but not limited to: the location of taxable inventory on the property;
the amount of sales tax which the project or property will generate for the
City; and the amount of any rollback taxes triggered by the development or
project.
3. The project makes a substantial contribution to redevelopment efforts.
4. The project has high visibility, image impact, or is of a significantly higher
level of development quality.
5. The project is an area which might not otherwise be developed because of
restraints of topography, ownership patterns, site configuration, or other
constraints.
6. The project stimulates concentration of employment and/or commercial
activity.
7. 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.
8. Applicants must provide a written narrative detailing how a
development/project meets the above minimum standards.
Tm'( Abatement Guidelines - Page 2
Ed. 12/6/95 AGGOTATF
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. How much sales tax will be generated?
5. How much taxable inventory will be located on the property?
6. An investment of less than $5.5 million taxable assets may be eligible for tax
abatement based upon the evaluation of other economic development factors,
including but not limited to: the location of taxable inventory on the property;
the amount of sales tax which the property or project will generate for the
City; and the amount of any rollback taxes triggered by the development or
the project.
Tax Abatement Guidelines - Page 3
Ed. 12/6/95 AGGOTATV
SUB.~ 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.)?
Tax Abatement Guidelines - Page 4
Ed. 12/6/95 P, GGOZP,?}:
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:
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 in this polic3~, will have to be considered
on an individual basis to evaluate the desirability and compatibility of the
proposed use for the 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
Tax Abatement Guidelines ~ Page 5
Ed. 12/6/95 AG~OZA?F
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 6
Ed. 12/6/95
SCHEDULE
Amount of Taxable Value Percentage of abatement
Subject to Percentage of the excess taxable value
of Abatement
Warehousing and Distribution -
The amount by which the total assessed Maximum 75%
taxable value of the real property and/or
tangible personal property, or both Fabrication and Assembly - Maximum
exceeds the assessed taxable value for the 50%
property in the year the agreement is
executed (base year). Manufacturing and Processing -
Maximum 25%
[taxable 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 or expanded operation within the city shall comply with
these procedural guidelines. Noth~e_ within these _euidelines shall be construed to su_~g_est that
the City_ is under any obligation to vrovide any_ abatement to any_ applicant even if certain
criteria are satis_~ed. The Ci~_ resen, es the r~ht to reject an~ application.
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 thc 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.
Tax Abatement Guidelines - Page 7
Ed. 12/6/95 AGG07A7F
The Committee's recommendation shall be based upon a subjective evaluation of the
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, Tarrant 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 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 an ordinance designating
the area described in the legal description of the proposed project as a tax abatement
reinvestment zone. After designation of the tax reinvestment zone, the City Manager will
negotiate an agreement with the applicant governing the provision of the tax abatement.
Tax Abatement Guidelines - Page 8
Ed. 12/6/95 AGG0?A?F
ADOPTION OF AGREEMENT
Any tax abatement agreement must include the following:
1. General description of the project.
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 and execution by the City
Manager and any other participating taxing unit.
Should the terms o_f the tax abatement ~_ eement subsequently not be satisfied, the tax
abatement shall be null and void and all abated taxes will immediately become due and
payable to the City o_f Co~t~ell and any_ other taxing _Jurisdiction participating in the tax
abatement ~_ eement. Provisions to this e__flea will be incorporated into the agreement.
Tax Abatement Guidelines - Page 9
Ed. 12/6/95 ^aa0ZAZF