RE 08-09-94.1 A RESOLUTION OF THE CITY OF COPPELL, TEXAS
RESOLUTION NO. 080994.1
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
~ the establishment of economic development incentives such as tax
abatements tony encourage enhancement of the local economy; and
WliEREA~, the City Council of the City of Coppell desires to nmend its Criteria and
Guidelines for Tax Abatement Agreements by clarifying the eligibility requirements;
NOW, THERRI~ORE, BE IT RESOLVED BY THE CIT~ COUNCIL OF THE ~
OF COPPELL, TEXAS..
SECTION L The City of Coppell, 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 3~2 of the Texas Tax Code.
SECTION 2. The City of Coppell Guidelines for Tax Abatements attached hereto
as Exlu'bit '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 thi~
resolution~ The City shall not enter into any tax abatement agreement ~mless 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 appllcable 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 thi~ resolution_ Dur~
that period, the guidelJnes and criteria may be amended or repealed only by a vote of three-
fourths of the City Council.
SECTION 3. This resolution shall become effective upon its passage as th~ law and
charter in such cases provide.
DULY RESOL~ AND ADOPTED by the City Council of the City of Coppell,
Texas, on this the ~ day of ~cYrY ON 1'--~'~CO)4'
pPEI I: TEXAS
~M MORTON, MAYOR
~ITY
SECRETARY
APPROVED AS TO FORM:
O s/s
CITY OF COPPELL, TEXAS
GUID~LnqF. S FOR TAX ~..BATEMENT
G~ PURPOSES AND ORIF, CTIONS
The City of Coppell is committed to the promotion of hiih quality development in all parts
of the City and to an ongoing improvement in the q,~llty of life for its c/tizens. Insofar as
these objectives are generally sen, ed by the enhancement and expansion of the local
economy, the City will on a case by case bash give consideration to provMin_o 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
tbi~ doo~ment. Noting ken~ du3ff ~ or ~ ~mt t/se (~ of CoppaV b und~
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/m~ment/n ~
added to a par//cu/ar/wo/m~y 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
beth. 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 gOR TAX ABATEMENT
To be considered eli~ole for a tax abatement, the proposed project and/or property must
meet the followin~ criteria:
1. An investmant of at least ~ milton in taxable assets. The acquisition cost
of the real estate is not included itl computing the mount of taxable assets.
Construct/on costs are not neces~Jy indicative of the taxable value o/the
property. (The taxable value is determined by the Central Appraisal D{strict
as of J~n,,~ry 1 of each year.)
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2. The project mslres a substantial contn'oution to redevelopment efforts.
3. The project has high visibil/ty, image impact, or is of a s/~,ni~cantly higher
level of development quality.
4. The projea is an area which might not otherwise be developed because of
restraints of topography, ownership patterns, site configuration, or other
5. The project stlmulates concentration of employment and/or commercial
licants must provide a written narrative detailing how a project meets the above
minlmnm standards.
O~ CiffI~RIA
The foliowing criteria is designed to evaluate specific com?onents common to all applicant.
1. How much propel~ t~x base will be added? There must be at least
million in ~ base added to the property to be eli~'ole for tax abatement.
2. How m~ch local anuual payroll will be created?
3. HOW m~ny new jobs will be created?
4. An investment of at least $~..~ million in taxable asset~.
The applicant must respond in written narrative format to the following:
1. Is the project sponsor a local company?
2. What types and values of public improvements, ff any, will be made by the
applicant?
3. Will the at~plicsnt be the owner or lessee? If lessee, are occupancy
4. Does or can the project meet all relevant zonin~ subdivision and other legal
requirements?
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5. V~ im.na~t will the project have on other taxing traits?
(Coppell Independent School District)
6. Are the new jobs to be created likely to be filled by Coppell's local labor
force?
7. Will the project increase the business oppo~mi6es of exis6n~ local
~nmln~?
8. Is th~ project comistont with tho comprel~mivo pl~ of t. he ~?
9. Is the lc'vol of qu~L[~7 si~onlflc~tly higher th~n th~ L~ic~d projects o{
use? Are site amenities provided such as landsam_~in~ public re't, water
fountains, plazas, etc.?
10. Does the project pose any negative environmental, operational, visual or other
im?agts (i.e. pollution~ noise, traffic col~estiol~ etc.)?
~J~OUNT OF T~
provide tax abatement to a parflo~r applicant. Once a determlnnfion has boon m~[~ that
a tax abatement is in the best interest of the City, the value and term of the abatement will
be determined from the following:
1. Tax abatements are available for both new facilities and structures; and for
the ~ and moderni~tion of existing facilities and sm~ctures.
2. Tax abatements for a period of five ($) consecutive tax years; however, the
City may delay the oomm~ilcement of th~ tax abatement tmfl[ Zamlary I of
the second year following the year in which the tax abatement agreement is
executed (i.e. tax abatement asreement is entered into durin~ calendar year
1994 - the first year of taxes subject to abatement would be January 1, 1996).
A project may be granted a tax abatement on real and/or personal property
of up to fifty percsat (50~) for a period of up to five (~) years. The actual
percentase of taxes subject to abatement for each year of an a~reement
be determfned from the schedule provided below;, and will apply only to the
portion of the taxable value of the real propel~y or of the ~n~ble 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 yeur).
The tax abatement asreement for tangible personal property may only apply
to the personal property added to the real property aP, er the agreement is
The amount by which the total Percentage of abatement of the
assessed taxable value of the excess taxable value
real property and/or t~n~ble
personal property, or both
value for the property in the
year the agreement is executed
(base year)
$ 5-q million 25 qb
For each full increment of
$100,000 of exce~ taxable .~56 qb additional
value above $5,.5 million up
to $9.9 million
$10.0 million 50 qb
Any person, or?ni~tlon or corporation des~rlng that the City consider providin~ tax
abatement to encour~e lo~tion or expanded operation within the city shall comply with
Applicant should submit an application for tax abatement to the City Manager add.,ew.dng
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 s/te, and all
existing zoning and land uses within five hundred feet of the site.
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APPLICATION BEVIEW PRO~KSS
The application will be reviewed by the. Tax Abatement Comralttee con~fi~ of the City
Manager, representatives from the Economic Development Board and the City Council
The Committee will serve a~ an advisory body to the Cit~ ~ in determlnln~ whether
a tax abatement should be offered. The Committee's recommendation shall be based upon
a subjective evaluation of the completed application. The committee may invite
representatives from the CoppeH 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 accordln~ to the
guidelines and criteria. Additional informstion rosy be requested as needed.
The application may be distn'vuted to appropriate City depa~/ments for internal review and
comments.
Copies of the complete application package and staff comments, if any, will be provided to
other talin5 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 ~ meet with the applicanL
The recommendation of the T~x Abatement Committee will be forwarded to the chief
administrative officer of other applicable ta~in~ ~mlts.
Based on the recommendation of the Committee the City CotlllCil may coils/dot & resolution
calling a public hearin~ to comfier the establtqhment of a ~x reinvesm~nt 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 feam'ble and
practical and would be a benefit for to the City after expiration of the agreement. (At the
public hearln~ the City stn~ and/or the applicant may make a presentation foHowlng which
interested persons may speak for or agnln~ the desJ~euntion.)
After the public hearing the City council will consider ndoption of the resolution de~gnating
reinvestment zone. The resolution will further authorize the City Manager to ne~)tiate an
agreement with the applicant governing the provision of the tax abatement.
ADOPTION OF AGB~M]/NT
Any tax abatement agreement must include the follow~uE~
1. General description of the project.
2. Amount of tax abatement.
3. Method for calculstlnE 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 parficip~tln~ t~
nni~.
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