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ST1002-AG070925 AGENDA REQUEST FORM F~ tJbL~~?~ -T'H E ' C I T Y , O,~ DEPT: City Manager's Office COrrELL ~' ".,. DATE: September 25, 2007 -'l'- ~*~. , , ITEM #: 1 4 D WORK SESSION D CONSENT o REGULAR ITEM TYPE: PROCEDURAL ITEM CAPTION: Consider approval of a tax incentive policy for Old Town Coppell to take effect on October 1,2007. GOAL(S): EXECUTIVE SUMMARY: City Council reviewed this policy in Work Session in October. This policy addresses incentives specifically for projects in Old Town Coppel!. See attached spreadsheet for a breakdown of available incentives. FINANCIAL COMMENTS: RECOMMENDED ACTION: Approve a tax incentive policy for Old Town Coppell to take effect on October 1,2007. ACTION TAKEN BY COUNCIL: APPROVED BY CITY COUNCIL ON ABOVE DATE Motion to Approve M - Peters S - Tunnell Vote - 6-0 Franklin absent · Libby Ball U . 200.7.10.23 12'17'21 -05'00' I!Old Town Coppell Incentive Policy 1/1 Q) > ;; C Q) lJ C Qi Q. Q. o (.) C :t o I- "C o m 'E Q) E Q) ..... 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Purpose: The City of Coppell seeks to promote and develop Old Coppell through specialized incentives that encourage new development as well as preservation and rehabilitation of existing development. The development of Old Coppell will act as a tool for creating a sense of place based on Coppell's unique, natural and cultural assets. This comprehensive policy for promoting physical revitalization and financial reinvestment in Old Coppell is designed to attract visitors to the area, encourage preservation of existing assets and add new and exciting uses to the vicinity. The purpose of this policy is to provide general guidelines and application instructions for proceeding through the incentive process in Old CoppelI. Assessment for financial assistance shall be on an individual basis; therefore, each incentive package will be considered case-by-case and requires final approval from the Coppell City Councilor their designee. The total package of incentives is generally designed to enhance the economic viability of awarded projects. This approach will allow the City the flexibility necessary to satisfy the unique needs and concerns of each applicant and the needs and concerns of the City and its citizens. This policy does not imply or guarantee that the City of Coppel! will provide tax incentives to any applicant. III. Criteria for Economic Development Incentives: Incentives shall be awarded based on the degree to which the proposed project meets the goals and objectives of the City for Old Coppell. All projects must meet the following minimum criteria to be considered for any tax incentives: (1) Project must be compatible with the Old Coppel! Master Plan and character of Old Coppell in the sole opinion of City Council; (2) Project must meet the minimum development standards and design guidelines set forth in the Coppell Zoning Ordinance. Additional criteria are listed for each type of available incentive. Each applicant must complete the Old Coppell Incentive Application attached as Appendix B and submit a site plan package with the application. IV. Available Incentives: Incentives may be granted for eligible facilities on all or a portion of the increased taxable value of the property over the base year value. Tax Abatements Applicants may receive up to a 75% abatement of real and personal property taxes for a maximum of 5 years. Duration and amount of abatement granted will be based upon capital investment and impact of the project to the area. Abatements are limited to new and/or improved property value. To qualify, the project must have a minimum combined real property and business personal property investment of two-hundred thousand dollars. Projects not meeting this criteria may still be considered and qualify for a smaller incentive based upon City Council's discretion. Sales Tax Rebates For businesses that generate sales tax revenue in the City of Coppell, a rebate of the City's portion of sales tax may be granted. Businesses must have a minimum of two- hundred fifty thousand dollars in annual sales to qualify for the sales tax rebate incentive. Up to 100% of the 1 % collected by the City may be rebated for a maximum of 3 years. Rebates will occur once per year during the month of April. Projects not meeting this criteria may still be considered and qualify for a smaller incentive based upon City Council's discretion. Fee Waivers Projects that qualify may receive up to a 50% waiver of Roadway Facilities Impact Fees, Building Permit Fees or both. Development Incentive The Development Incentive is designed to help spur development in Old Coppell. Applicants can apply for a development incentive to receive reimbursement of typical industry standard loan closing costs. Each applicant is limited to a maximum incentive of $5,000 and will be approved on a case-by-case basis. To qualify for this incentive, the applicant must use a lending institution located within the city limits of the City of Coppell for financing on property, and the applicant must close on the property within 90 days of incentive approval from the City. The applicant must submit the closing cost estimates at the time of incentive consideration. Once the applicant has closed on the property and the loan, documentation must be provided from the Coppell lending institution of choice showing actual closing costs. No reimbursements will be made until the property is under construction and proper documentation has been provided. Facade Grants The City of Coppell has dedicated a pool of funds to aid in the rehabilitation and restoration of the exterior facades of existing property in Old Coppell. The pool of funds will be distributed on a first come, first served basis, and approved projects will be awarded an amount equal to 50% of the actual costs to renovate the exterior fayade. The minimum project cost to be considered is $3,000. To qualify for a fayade grant, exterior fayade renovations must include improvements such as appropriate windows, doors, awnings/canopies, shutters and signage, and any other acceptable improvement - not simply painting the exterior of the building. Projects may include rehabilitation to the entire exterior fayade, but to be considered for a grant, the aforementioned improvements must also enhance the street appeal of the structure. Applicant must submit plans for construction prior to the start of the project along with bids for the improvements. All plans will need to be reviewed and approved by the Planning staff prior to commencement of the project. If plans are rejected, the applicant has the right to appeal to the Planning and Zoning Commission. The project must meet the standards for construction stated within the Historic District of the Zoning Ordinance, the Old Coppell Design Guidelines and other applicable codes. The applicant must begin the project within 90 days of approval and must complete the project within 12 months after commencing. Extensions can be approved on a case-by-case basis at the City's discretion. If approved for a grant, the City of Coppell will rebate 50% of construction costs and material costs once an applicant has completed their structure. Applicant should submit to the City of Coppell receipts at the end of the project, and the City will issue reimbursement checks once per year during the month of April. Regardless of the project cost, the total amount awarded will be capped at $25,000 per structure. , II ~ I PD-188-H 1 L H-S-1125R Appendix A Old Coppell Boundary Map I I I,J I I I II I I I I I I I I I I I I I I I I ~ lilT III IIIIII I Vt...::l\ II.~ ~ l ,\" ~- ~ T1EEEEIEE8:itmE)-:::~EIffiI f-- \,\~~~ ::.u l}- ~. ~~ f---' 1 " ..I- I- €!fI!!\ \.-- f-----: ; 1 =i1 I I-j ; I ~ '::: ':::( ~ ~ '-:::I,W [1 I II I I 11 _.- /.r::::11 ~ r--,,--- Ii __ ...r ~ _I!i= il~ I ~ - ~ I ....1--11 ~ :: I -~ f-- ~ I....... ~ ~::: IH~ I ); 1"" J i..-L- =~"-." U ,,"' 1ilTl~~ wl:}-{i " " ~ Q~ a..., \D~ ~- \ \ f-- I-- f-- n L- I-- ~ - ~ L....,..,L---' ~ ~ ..~=:: ~ ~ ~t: - _::iL- - 1--- - _ f-----1 Tf I . \ \. ~~ ~~hml