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Regular Meeting January 18, 2007 Page 5 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS RESCINDING AND REPEALING ORDINANCE 1989 -70 PERTAINING TO TAXATION OF FREEPORT PROEPRTY FOR TAX YEARS 2007 AND THEREAFTER; AMENDING ARTICLE 4 OF CHAPTER 78, AD VALOREM TAXATION, OF THE CITY OF SAN MARCOS CODE OF ORDINANCES TO ADD A NEW SECTION, EXEMPTION OF FREEPORT PROPERTY; AND PROVIDING AN EFFECTIVE DATE. Mr. Guerrero moved to remove the Resolution from the table, and Mr. Jones seconded the motion, which passed unanimously. Mr. Guerrero moved for approval of an Ordinance on first reading, Mr. Jones seconded the motion. Mr. O'Leary stated in 1989 the Texas constitution was amended to allow local taxing entities to exempt goods in transit. He stated the Council adopted an Ordinance which allowed this property to continue to be subject to ad valorem taxes. He stated there has been some request to rescind the Ordinance so that these goods will now be exempt from ad valorem taxes. He stated that Economic Development San Marcos has conducted a survey of the San Marcos Manufacturers Association members and concludes that the impact to the City of this exemption would be approximately $202,100.00. He also stated if adopted, the Freeport exemption is irrevocable and any future Freeport property would be exempt from ad valorem taxes. Mayor Narvaiz stated that citizens have signed up to speak regarding this item. 1) Don Nash stated he is the Vice Chairman of Economic Development Board. He stated the Freeport exemption would bring new business to our community; recruitment of businesses as well as manufacturing and national distribution centers. He feels the City would get 140% return on the Freeport exemption, which would help the growth of our community. He encouraged the Council to support the Freeport exemption. 2) Margie Moore, Director of Global Marketeering, read two letters of support for the Freeport exemption. She stated she feels Texas continues to lose business because they can not compete. 3) Paul Nielson, Private Manufacturing Corp., stated he has 40 plus years in the manufacturing business. He stated San Marcos Manufacturers provide scholarships to high schools and Texas State University by contributing more than $10,000 per year. He also stated San Marcos Manufacturing provides jobs, networking opportunities, educational support and volunteers to San Marcos. 4) Jerry Hearne, Tyco - Widelite, stated he has 25 years in the commercial field. He stated the economic development is a very competitive process, 80% to 90% do all their work by looking at the websites and San Marcos could get passed up without even knowing, because the City does not offer the Freeport exemption. Mr. Bose stated if the Council adopts this Ordinance then the decision is final and cannot be rescinded. He stated he feels losing $200,000.00 is a lot to lose. He stated he feels everyone should work together and pay their full share. Mr. Jones stated he feels by adopting this Ordinance it will help with economic development opportunity, which will provide more jobs and improve the quality of life. He stated he feels this Ordinance will also help keep the manufactures we already have. Mr. Guerrero stated he feels this Ordinance has potential to bring additional jobs and improve our future. He also stated when the City loses manufactures, and then the City