Res 2007-208 - Laserfiche WebLink

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Economic Development Incentives Policy-June 2007 Page 8 Note: The creation of a TIRZ does not in any way impact the tax rate. TIRZs have no taxing or assessment powers. Property owners within the zone will continue to pay a normally increasing tax bill L. Utility Rate Reductions and Infrastructure Extensions: A. Standard utility incentive: The municipally-owned power, water, and wastewater departments have adopted rate policies that permit reduced rates for customer rate classifications or categories based upon usage. Agreements may be available to reduce utility rates based upon adopted usage categories. B. Standard utility incentive: The City partners with developers on infrastructure improvements. The City's development policy commits city funds to provide for the cost of over-sizing infrastructure when deemed necessary for future development. This policy eliminates the need for developers to absorb the total cost of over-sizing "up front" and then waiting to recover a portion of the costs when future development ties into the improvements. C. Special utility incentive: The City has the capacity and flexibility to offer qualified companies infrastructure improvements and extensions at reduced cost. Such incentives may include improvements to curbs and gutters, street paving, water and wastewater, electrical supply, and public lighting M. Waiver or Modification of Development Regulations/Standards: A development incentive agreement may include provisions for waiving or modifying City development regulations or standards. To be eligible for such a waiver or modification, a development must: 1. Be a unique and regional economic draw with projections to support major direct new tax benefits for the City that far exceed those of the typical development or business; or 2. Incorporate design or construction features or characteristics that exceed City regulations or standards in other respects; or 3. Make a unique or unequaled contribution to development or redevelopment efforts in the City of San Marcos, due to its magnitude, uniqueness to the community, or aesthetic quality. 3. Financial Incentives A. Chapter 380 Grants and Loans: The City Council can provide grants or loans to eligible prospects on a case-by-case basis to promote local economic development and to stimulate business and commercial activity in the City, in accordance with Chapter 380 of the Texas Local Government Code. The grants or loans can be used to facilitate the acquisition or improvement of real property, the acquisition of equipment or facilities, or other purposes directly related to economic development. B. Economic Development Fund: The City Council has created a line item in the General Fund as an incentive war chest for economic development projects. The amount and availability of these funds are subject to City Council approval each budget year. Receipt of these funds by a project is considered on a case-by-case basis by City Council. Please contact Economic Development San Marcos regarding the availability of this fund. C. Industrial Revenue Bonds: The State of Texas Industrial Revenue Bond Program is designed to provide tax-exempt financing of land and depreciable property for eligible industrial or manufacturing projects. The Development Corporation Act allows cities, counties, and conservation/reclamation districts to form non-profit industrial development corporations or authorities on their behalf. The purpose is to issue taxable and tax-exempt bonds for eligible projects in their jurisdictions. The City of San Marcos Industrial Development Corporation acts as a conduit through which funds are channeled. Generally, all debt service on the bonds is paid by the business under the terms of a lease, sale, or loan agreement. As such, it does not constitute a debt or obligation of the City, the Industrial Development Corporation, or the State of Texas. If Revenue bonds would help a prospect, the City stands ready to assist with selecting bond counsel and working to issue the bonds. D. Revolving Loan Funds: The City has available a limited amount of funds to commit to businesses. Applicants should check with the City Community Development Block Grant staff for funding availability. E. Tax Increment Financing (TIF): Tax increment financing is a tax reinvestment tool that allows local governments to fund infrastructure improvements within a defined area. TIFs work by allowing taxing entities to repay the costs of improvements to a designated area with the future tax revenues generated by increased property values. TIFs can be created on a case-by-case basis by the City Council.