RE 06-28-94.2 A RESOLUTION OF THE CITY OF COPPELL, TEXAS
RESOLUTION NO. 062894.2
A RESOLUTION OF THE CITY OF COPPELL, TEXAS, AMENDING THE
GUIDEUNES AND CRITERIA FOR TAX ABATEMENT AGREEMENTS; AND PROVIDING
AN EFFECTIVE DATE.
V,I'IEREA$, enhancement of the local economy is in the beat interest of the
citizens of the City of Coppell, Texas; and
WHEREAS, the establishment of economic development incentives such as tax
abatement may encourage enhancement of the local economy; and
WHEREAS, the governing body of the City of Coppall desires to continue to elect
to be eligible to participate in tax abatement and to amend its criteria and guidelines
governing tax abatement agreements;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPEM., TEXAS:
SECTION 1. The City of Coppall, Texas, hereby continues its election to
participate in tax abatement 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, TEXAS GUIDEMNES AND
CRITERIA' attached hereto as Exhibit "A,' be and the same ere hereby adopted as the
emended guidelines and criteria governing tax abatement agreements for the City of
Coppall, 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 a tax abatement
agreement unless it finds that the terms of the agreement and the property sUbject to the
agreement meet the applicable guidelines and criteria herein adopted. Provided,
however, any agreement executed pursuant to previously adopted guidelines and criteria
shall be govemed by the applicable guidelines and cr'~eria in effect at the time of the
execution of such agreement. The guldalinss and criteria herein adopted shall be
effective for two (2) years from the date of this resolution and during that period may be
amended or repealed by a vote of three-fourths of the governing body of the City of
Coppell, Texas.
A~OS81D
SECTION 3. The policy herein adopted shall, 8t the discretion of the City
Council, be renewed annually from time to time as needed.
SECTION 4. This resolution shall become effective upon its passage as the
law and charter in such cases provide.
DULY RESOLVED AND ADOP'I~ by the City Council of the City of Coppell,
Texas, on this the ~$ day of .~~, 1994,
CITY OF COPPEI. L, TEXAS
ATTEST:
UNDA GRAU, ASSISTANT CITY SECRETARY
APPROVED AS TO FORM:
~ORNEY
EXHIBIT "A"
CITY OF COPPELL, TEXAS
GUIDEUNES AND CRITERIA
GOVERNING TAX ABATEMEHT AGREEMENTS
General Pu _moee and Obleotlvee
The City of Coppell, Tex,~._s is committed to the promotion of highly qualified
development in all parts of the City; and to an ongoing improvement of the quality of life
of its citizens. Insofar as these objectives are generally sewed by the enhancement and
expansion of the local economy, the City of Coppell will, on a case by case basis, give
consideration to providing tax abatement as a stimulation for economic development in
the City of Coppell. It shall be the policy of the City of Coppell that said consideration will
be provided in accordance with the guidelines and criteria outlined in this document.
Nothing herein shall Imply or suggest that the City of Coppell is under any obligation to
provide tax abatement to any applicant. All applicants shall be considered on a case by
case basis.
Any request for tax abatement shall be reviewed by the Tax Abatement Committee,
comprised of one City of Coppell Council representative, who shall act as Chairman, and
two City of Coppell Economic Development Board representatives. The committee may
invite mpre--aa~tatives from Coppell Independent School Dis~rict, Dallas County or Denton
County, to participate in the review of a tax abatement request. The tax abatement
committee shall serve as a mcommendlng body to the Coppell City Council regarding
whether economic development inoentJve should be offered in each individual case. The
committee's reoommendation shall be based upon a subjective evaluation of the
completed 'application for tax abatement."
The application for tax abatement will provide the City with a legal description of
the property involved and the basis of the applicant's proposal which should show a plan
designed to increase the value of the taxable real property and tangible personal property
located on the real property. Based upon this application the applicant and the City will
arrive at a 'proposed' agreement which is then reduced to writing and tendered to the
City as an offer on the part of the applicant, subject to being accepted by the City after
a public hearing is held to determine whether or not the property involved should be
designated as a Reinvastment Zone and after the City Council has found that the
improvements sought ere feasible and ~¢~tl and would be a benefit to the City after
expiration of the agreement.
The public hearing is handled in the same way as a public hearing for a zoning
case with city staff describing the area to be considered, the improvements to be mede
by the applicant and how such improvements will benefit the property and the City. The
applicant will then make his presentation which will be followed by interested persons
wishing to be heard either for or against the designation. Thereafter, the public hearing
is dosed.
Before the City is able to enter into the tax abatement agreement the property
involved must be designated a ralnvastment zone. The City will conduct a public hearing
and must find: 'that designation of the area as a reinveetment zone will be reasonably
likely to contribute to lyre retention or expansion of primary employment or attract major
investment in the zone that would be a benefit to the property and would contribute to
the economic development of the city.' After making the finding the City may then adopt
an ordinance designating the area as a reinvestment zone.
Thereafter, and if there ere no changes to the agreement as a result of the public
headng ~ City Council may approve the agreement and authorize the Mayor to execute
Guldetlnee and Criteria
1. Availability and Term of Tax Abatement Agreement. Tax abatement shall
be available for both new facilities and structures, and for the expansion or modernization
of existing facilities and structures. All tax abatement agreements shall be for a term of
five (5) years.
2. Minimum 8tandarc~ for Tax Abatement. To be considered eligible for tax
abatement, the property must be designated as a ralnvastment zone. Therefore, the
applicant in its application should present a plan which if Implemented would be
reasonably likely to contnl~ute to the retention or expansion of primary employment or
attract major investment that would benefit the property and would cor,~-;bute to the
economic development of the City.
3. The "Rmt year of any agreement* shall be the tax year beginning
January 1 following the year in which the tax abatement agreement is executed.
4. Doflnltlorm. As used in this Section 4 and Section 5 below, the following
words or phrases sha~ have the following meaning.
"The property' shall mean the real property described in the
applicant's application for tax abatement which shall be the
real property over Whl~ the applicant is seeking a
reinveatmant zone designe~on.
"Total messed tax value" shall mean the total assessed tax
value on January 1 of any tax year, of "the property," any
improvements located on "the property" and the tangible
personal property located on "the property."
"Current year tax value" shall mean the "total assessed tax
value" for the year in which the tax abatement agreements is
executed.
5. The percentage of tax abatement for each year of an agreement that the
applicant's total assessed tax value exceeds the current year tax value shall be
determined by the following schedule:
The amount by which the total Percentage of abatement of
assessed tax value exceeds excess value
the current year tax value
$5.5 million 25%
$6.0 million 30%
$7.0 million 35%
$6,0 million 40%
$9.0 million 45%
$10.0 million 50%
6. The policy herein adopted shall, at the discretion of the City Council, be
reviewed annually or from time to time as needed. Said policy is intended'to be a guide
for use in developing tax abatement programs and agreements under the provialone of
the Property Redevelopment and Tax Abatement Act, codified at Chapter 312 of the
Texas Tax Code.
NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P.
LAW~ENC~ W. ,JACKSON .Attorneys & Couaselo~ at Law
ROBERT L DILLA~O Ill ~.800 ~ ~ KATH~INE
,..cTc~ e. a~rm 500 No~tfl Aka~l Rocor L. C~LL~D. J~.
DA'vlD M. BERM~N ]~mlln% ~ 75201 H. LO~JIS NICHOLS
BRUCE ^. STOC,~D (214) 934-3333
Fax (214) 9~,-3334
FILE COPY
June 21, 1994
VIA FACSIMILE TRANSMISSION AND HAND DELIVERY
Mr. Jim Witt
City Manager
City of Coppell
P.O. Box 478
Coppeil, Texas 75019
Dear Jim:
Pursuant to your request enclosed please find a proposed Resolution of the City
Council amending the tax abatement guidelines and criteria.
Please note that Section 312.002(c) of the Texas Tax Code provides that guidelines
and criteria are effective from two years and may not be amended or repealed during that
period except by three-fourths vote of the City Council. Accordingly, please check with
Unda Grau to determine the last date upon whLch the guidelines and criteria ,were
amended to determine whether~ vote is requireo Tor t~e aooptlon Of the
'~[~:,J l, luk~e~llnes.
'Thank you for your atterttion to this matter.
Very truly yours,
NICHOLS, JACKSON, DILLARD, HAGER & SMITH, LLP.
Ide~r G. smith
PGS/gh
Enclosure