RE 04-11-89.3 A RESOLUTION OF THE CITY OF COPPELL, TEXAS
RESOLUTION NO. 041189.3
A RESOLUTION OF THE CITY OF COPPELL, TEXAS, ADOPTING A TAX
ABATEMENT POLICY STATEMENT; STATING THE GENERAL PURPOSE AND
OBJECTIVES; PROVIDING CRITERIA FOR TAX ABATEMENT CONSIDERATION;
ESTABLISHING A TAX ABATEMENT COMMITTEE; PROVIDING MINIMUM STANDARDS
FOR TAX ABATEMENT CONSIDERATION; PROVIDING PROCEDURAL GUIDELINES FOR
APPLICATION FOR TAX ABATEMENT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, enhancement of the local economy is in the best interest of the
citizens of Coppell; 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 Coppell wishes to adopt criteria
and guidelines governing tax abatement agreements,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS:
Section 1
That the COPPELL POLICY STATEMENT FOR TAX ABATEMENT attached hereto
as Exhibit "A", be, and the same is hereby adopted as the tax abatement policy for
the City of Coppell and shaU govern all tax abatement matters considered by the City
from and after April 1, 1989.
Section 2
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 as a guide for use
in developing tax abatement programs and agreements under the provisions of the
Property Redevelopment and Tax Abatement Act of the State of Texas, and
notwithstanding the policy herein established, the City Council of the City of Coppell
retains the right to act within the provisions of such act without the necessity of
amending the general po]icy herein adopted.
Section 3
An application fee in the sum of $1,250.00 shall be paid by any applicant at the
time of filing the "Application for Tax Abatement" provided for under the policy herein
adopted.
Seetion 4
This resolution shall become effective upon its passage as the law in such cases
provides.
DILLY RESOLVED AND ADOPTED by the City Council of the City of Coppell,
Texas, on the //'~'~lay of ~ ~ , 1989.
THE CITY OF COPPELL, TEXAS
ATT~T:
APPROVED AS TO FORM: City Secretar~ ~-~
Attachment A
CO?PELL
POLICY STATEMENT
FOR
TAX ABATEMENT
I. General Purpose and Objectives
The City of Coppell is committed to the promotion of high quality
development in all parts of the City; and to an on§oing 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 of Coppell will, on a case-by-case basis, give consideration to
providing tax abatement as a stimulation for economic development in
Coppell. It is the policy of the City of Coppell that said consideration
will be provided in accordance with the procedures and criteria outlined
in this document. Nothing herein shall imply or su§gest 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.
The City of Coppell may grant tax abatement on the increment in value
added to a particular property by a specific development proposal which
meets the economic development goals and objectives of the City of
Coppell. The tax abatement shall apply only to the real estate portion
of the project, personal property will not be included. Tax abatements
are qranted to the owners of real property; for projects where property is
leased, special terms and conditions may be set in the a~reement qoverninq
each specific tax abatement.
II. Criteria
Any request for tax abatement shall be reviewed by the Tax Abatement
Committee, said committee membership being comprised of one City of
Coppell Council representative, who should act as chairman, and two City
of Coppell Economic Board representatives. Other members may be comprised
of two Coppell Independent School District representatives, two Dallas
County representatives and two Denton County representatives.
The Tax Abatement Committee serves as a recommending body to the taxing
entities regarding whether economic development incentive should be
offered in each individual case. Their recommendation shall be based upon
a subjective evaluation of the completed "Application for Tax Abatement".
EXHIBIT "A"
III. Minimum Standards for Tax Abatement
To be considered eli§ible for a tax abatement, the proposed project and/or
property must meet at least two of the following criteria:
A. Project involves a minimum increase in property value of
300% for new project; 50% for expansion; or an investment of
at least $1 million in taxable assets.
B. 'Project makes a substantial contribution to redevelopment
efforts or special area plans by enhancing either functional
or visual characteristics, i.e., parking, circulation,
facades, materials, signs, historic structures, etc.
C. Project has high visibility, image impact, or is of a
si§nificantly higher level of development quality.
D. Project is an area which might not otherwise be developed
because of constraifts of topography, ownership patterns, site
configuration, etc.
E. Project can serve as a prototype and catalyst for other
development of a higher standard.
F. Project stimulates concentrations of employment and/or
commercial activity.
G. Project generates greater employment than would otherwise be
achieved, i.e., commercial/industrial vs. residential or
manufacturing vs. warehouse.
Applicants must provide written narrative detailing how project meets
these minimum standards.
IV. Value of Incentives
The subjective criteria outlined in "Application for Tax Abatement" will
be used by the Tax Abatement Committee in determining whether or not it is
in the best interests of the affected taxing entities to recommend that
tax abatement be offered to a particular applicant. Specific
considerations will include the degree to which the individual project
furthers the goals and objectives of the
community, as well as the relative impact of the project. Once a
determination has been made that a tax abatement should be offered, the
value and term of the abatement will be determined by referencing the
following table:
Value of Years Percent
Structure of of
Added Abatement Abatement
0 - $ 1,000,000 -0- -0-
$1,000,001-$ 2,500,000 up to 5 years up to 25%
$2,500,001-$ 5,000,000 .... 10 ..... 50%
$5,000,001-$10,000,000 " "15 " .... 50%
over $10,000,000 15 years " "50%
V. Procedural Guidelines
Any person, organization or corporation desiring that Coppell consider
providing tax abatement to encourage location or expansion of operations
within the city limits of Coppell shall be required to comply with the
following procedural guidelines. Nothing within these guidelines shall
imply or suggest that Coppell is under any obligation to provide tax
abatement in any amount or value to any applicant.
Preliminary Application Steps
A. Applicant shall complete the attached "Application for Tax
Abatement."
B. Applicant shall address minimum standards outlined in Section III
above in letter format.
C. Applicant shall prepare a plat showing the precise location of the
property, all roadways within 500 feet of the site, and all existing
land uses and zoning within 500 feet of the site.
D. If the property is described by metes and bounds, a complete legal
description shall be provided.
E. The "Application for Tax Abatement" shall be complete and the
original and four (4) copies submitted to the City Manager or his
designate, City of Coppell, P.O. Box 478, Coppell, Texas 75019.
F. An application fee of $1,250 is due and payable upon submittal of
the application.
Application Review Steps
G. All information in the application package detailed above will be
reviewed for completeness and accuracy by the City Manager designate
within ten (10) working days. Additional information may be
requested as needed.
H. The application will be distributed to the appropriate City
departments for internal review and comment and returned to the City
Manager designate within ten (10) working days. Additional
information may be requested as needed.
I. Copies of the complete application package and staff comments will
be provided to the Tax Abatement Committee by the City Manager
designate.
Consideration of the Application
J. The Tax Abatement Committee will consider the application at a
regular or called meeting(s). Additional information may be
requested as needed.
K. The recommendation of the Tax Abatement Committee will be forwarded,
with all relevant materials, to the chief administrative officer of
each taxing entity.
L. The City Council of Coppell may consider a resolution calling a
public hearing to consider establishment of a tax reinvesfment zone.
M. The City Council of Coppell may hold the public hearing and
determine whether the project is "feasible and practical and would
be of benefit to the land to be included in the zone and to the
municipality."
N. The City Council of Coppell may consider adoption of an ordinance
designating the area described in the legal description of the
proposed project as a commercial/industrial tax abatement zone.
0. The City Council may consider adoption of a resolution approving the
terms and conditions of a contract between the City and the
applicant governing the provision of the tax abatement.
Should the City Council determine that it is in the best interests
of the City of Coppell to provide Tax Abatement to a particular
applicant, a resolution shall be adopted declaring
that, under the §uidelines and criteria established herein, the
applicant is eligible for abatement and the tax abatement district
is established. The resolution shall further authorize the City
Manager to ne§otiate an a§reement with the applicant governin§ the
provision of the abatement.
An agreement must include at least the following specific items:
* General description of the pro3ect
* Amount of the tax abatement
* Duration of the abatement
* Legal description of the property
* Type, number, location and timetable of planned
improvements
* Any specific terms and conditions to be met by
applicant
The agreement shall then be presented to City Council for adoption,
whereupon it shall be executed by the Mayor.
Should the terms of the agreement subsequently not be satisfied, the
tax abatement shall be null and void, and all abated taxes shall
immediately be paid to the City of Coppell and all other taxing
jurisdictions participating in the tax abatement agreement.
Provisions to this effect shall be incorporated into the agreement.
It is the intention of the City to establish a tax abatement policy
and negotiate agreements which are legally subject to being adopted
under the laws of the State of Texas. Should any provision of this
plan or any agreement made hereunder be determined to be in conflict
with the Statutes and Laws of this state, such state laws shall be
controlling.
P. The governing bodies of Coppell Independent School District, and
Dallas County may consider ratification of and participation in the
tax abatement agreement between the City of Coppell and the
applicant.
Q. This policy will be reviewed annually or as needed.
TAXABATE.PLC