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<br />I <br /> <br />I <br /> <br />I <br /> <br />e <br /> <br />e <br /> <br />Economic Development Incentives Policy <br />June 2006 <br /> <br />Page 5 <br /> <br />C. Utility Infrastructure: <br />1. Standard utility incentive: The municipally-owned power, water, and wastewater departments <br />have adopted rate policies that permit reduced rates for customer rate classifications or <br />categories based upon usage. Agreements may be available to reduce utility rates based upon <br />adopted usage categories. <br /> <br />2. Standard utility incentive: The City partners with developers on infrastructure improvements. The <br />City's development policy commits city funds to provide for the cost of over-sizing infrastructure <br />when deemed necessary for future development. This policy eliminates the need for developers <br />to absorb the total cost of over-sizing "up front" and then waiting to recover a portion of the costs <br />when future development ties into the improvements. <br /> <br />3. Special utility incentive: The City has the capacity and flexibility to offer qualified companies <br />infrastructure improvements and extensions at reduced cost. Such incentives may include <br />improvements to curbs and gutters, street paving, water and wastewater, electrical supply, and <br />public lighting. <br /> <br />D. Waiver or Modification of Development Regulations/Standards: A development incentive <br />agreement may include provisions for waiving or modifying City development regulations or standards. To <br />be eligible for such a waiver or modification, a development must: <br /> <br />1. Be a unique and regional economic draw with projections to support major direct new tax benefits <br />for the City that far exceed those of the typical development or business, or <br /> <br />2. Incorporate design or construction features or characteristics that exceed City regulations or <br />standards in other respects; or <br /> <br />3. Make a unique or unequaled contribution to development or redevelopment efforts in the City of <br />San Marcos, due to its magnitude, uniqueness to the community, or aesthetic quality. <br /> <br />2. Property Tax Abatement Incentives <br />The City of San Marcos offers property tax abatement for new or expanded commercial or industrial <br />construction, as well as business personal property taxes associated with real property. City abatements <br />are granted through a contract approved by the San Marcos City Council. After qualification, the City will <br />assist applicants in seeking abatement agreements with the other taxing authorities. <br /> <br />3. Sales Tax Rebate Incentives <br />A. Eligibility Criteria <br />In addition to the eligibility criteria for incentives listed above, a project for which sales tax rebates are <br />requested must meet the following minimum requirements <br /> <br />1. The project must either: <br /> <br />Result in a minimum increased taxable value for the City of $25,000,000 in real and business personal <br />property (excluding inventory and supplies), or <br /> <br />Result in a minimum increased taxable value for the City of $250,000 in real and business personal <br />property (e)(cluding inventory and supplies) in the Downtown Zoning District; or <br /> <br />Result in a minimum increased taxable value for the City of $15,000,000 in real and business personal <br />property (excluding inventory and supplies) for the redevelopment -but not relocation-01 existing <br />businesses; or <br /> <br />Will result in a sales tax increase of at least $500,000 to the City over the most recently completed fiscal <br />year <br /> <br />I <br /> <br />I <br /> <br />I <br />