Res 2007-208 - Laserfiche WebLink

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Economic Development Incentives Policy-June 2007 Page 7 . Will result in a sales tax increase of at least $500,000 to the City over the most recently completed fiscal year. Note: An increased taxable value qualifier may be waived as consideration for a pioneering retail development anticipated to spur significant additional investment in a desired location or if development is proposed for an underutilized, obsolete industrial building in the downtown area where redevelopment is expected to stimulate additional development in the surrounding area. 2. In addition, the project must a. Qualify as a target industry according to these policies and procedures; or b. Make a unique or unequaled contribution to development or redevelopment efforts in the City of San Marcos, due to its magnitude, significance to the community or aesthetic quality. 3. In addition, if the project involves new development, it must serve a regional market. Additional Considerations Other factors to be considered by the City Council in determining whether to authorize an agreement for sales tax rebates are: 1. The number and types of jobs to be created or retained (full-time vs. part-time)-describe wages and indicate if insurance benefits are provided. 2. Whether City utilities will be used. 3. Whether the project incorporates high quality architecture and site design, including landscaping and public amenities, beyond the minimum required by the City Code as represented in architectural drawings, site plans and landscaping plans. 4. The financial capacity of the applicant to undertake and complete the proposed project. 5. Whether the applicant has applied or is qualified for other incentive programs. 6. The market conditions and growth potential for the project's business activity. 7. Any other factors the City Council finds helpful and relevant to accomplishing the City's economic development objectives. Level of Incentives Incentives established for any project will be provided to the extent that the revenue realized by the City and attributable to the project exceeds a minimum amount established in the Economic Development Agreement to be entered into by the City and the applicant. The public benefit or amount of revenue realized by the City and attributable to the project must equal or exceed the value of any incentives granted under the application. The City will not rebate more than 75% of sales taxes in any year. I. San Marcos Municipal Airport: A developer that invests $500,000 or more in improvements to property leased from the City at the San Marcos Municipal Airport will be eligible for a credit of up to 5% of the total investment for site preparation expenses against fixed rental payments due under the lease. J. Special Downtown Reinvestment Zone: Provides for a tax phase-in, on a case-by-case basis, within the Central Business Area downtown. The City has been designated as a Texas Main Street City. The Main Street program has a fac;ade improvement grant that can be used for such things as signage or new canopies. K. Tax Increment Reinvestment Zone: In the state of Texas, a TIRZ may be city-initiated or petitioned by property owners. A TIRZ may be petitioned when property owners constituting more than 50% of the appraised value of the area submit a petition to the City. A TIRZ may be created for one of three reasons: . to address inner city deterioration; . to develop raw land in suburban fringe areas; or . to proactively address the decline of major activity centers A TIRZ sets a geographic boundary around a particular area within a city. These boundaries can be used to allow for tax increment financing (TIF) or other tax-related agreements. For example, a TIRZ may be established to allow businesses within the area to apply for various kinds of tax phase-ins. In any case, a TIRZ must be set up separately and before tax increment financing may be considered. Once the TIRZ is created, then negotiations regarding any tax-related agreement can begin; it is possible to set up a TIRZ and then have it stand alone, not related to any financial agreement.