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19 Regular Meeting January 22, 1990 Page 2 Mayor Morris opened the public hearing and asked if anyone wished to speak for or against the Ordinance. R. G. Phillips stated he thought reinvestment zones were an unwise policy, and that a petition is circulating lead by Pat Price in opposition to reinvestment zones. No one else wished to speak, so Mayor Morris closed the public hearing. Mr. Hernandez moved for adoption of the Ordinance on third and final reading and Mr. Moore seconded the motion. Mr. Moore stated the criteria set out in State Law to establish reinvestment zones as written in Section 2 of the Ordinance, "is an area that is reasonably likely as a result of a designation as a reinvestment zone to contribute to the rentention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City of San Marcos." The Council voted unanimously for adoption of the Ordinance on third and final reading. Mayor Morris introduced for consideration a public hearing and adoption of a Resolution, the caption which was read as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING THE TERMS AND CONDITIONS OF TAX ABATEMENT AGREEMENTS BETWEEN THE CITY AND SAN MARCOS FACTORY STORES, LTD., AND VF FACTORY OUTLET, INC., AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENTS ON BEHALF OF THE CITY; AND DECLARING AN EFFECTIVE DATE. Mayor Morris opened the public hearing and asked if anyone wished to speak for or against the Resolution. Janace Wade, Chairman of the Board of Directors of the Chamber of Commerce, read a unanimous letter of support from thß Board of Directors, a copy of which is attached. Bill Coddington stated he had made his comments in the newspaper and on the radio regarding tax abatements. He said the City should try to help the people already here and look at other options. He has not seen any progress made. R. G. Phillips said there is nothing productive taking place as the tax abatement is not bringing in outside capital. He stated five years tax abatement is too long, and thinks two years would be enough. He stated to quote Jane Wilson's article in the newspaper, "It is unfair to retail stores in San Marcos," and he agrees with this statement. Mike Hammer of Town and Country Auto Ranch stated we need more jobs in San Marcos and he is supportive of the mall. He stated only through growth will we succeed. Jane Wilson speaking on behalf of the San Marcos Neighborhoods for Growth in Progress stated tax abatements are basically unfair to the establishment. Garland Warren stated this business is helping his business. Whatever development occurs will bring more revenue to the City, and this is progress. He stated the New Braunfels' mall is doing big business and generating a large sales tax increase. Jack Lindstrom stated he has been involved with the Economic Development Council since its inception. He stated the same people ~ilio are complaining about tax abatements coTIplained when Walmart Warehouse did not locate in San Marcos but went to New Braunfels. Mr. Lindstrom stated there is a change in merchandising throughout the country, and competition of other cities is great. He stated this mall will locate on the Corridor somewhere, and we need the jobs in San Marcos. Jane Hughson stated she supports the tax abateTIent agreements for the mall. She thinks it will help keep San Marcos dollars and bring in more. Steve Smith stated he is in support of the mall locating in San Marcos. Jesse Estrada stated his recollection of Prime and VF before the Planning Commission was in an orderly manner and the changes requested were justifiable. He is in support of the mall. Bill Stouffer asked how the abatement works with the promise of jobs. The Council advised him if the jobs do not reach fruition, the abatement will be null and void, and that additionally, Prime will contribute $70,000 after the end of one year towards a transit system to be used in the City's match for