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Res. 05-16 Granting Tax Abatement Agreements, electing to become elegible to particiapte in Tax abatement & Providing and effective date 04.12.05TOWN OF PROSPER, TEXAS RESOLUTION NO.05-16 A RESOLUTION OF THE TOWN OF PROSPER, TEXAS, ADOPTING A TAX ABATEMENT POLICY FOR ECONOMIC DEVELOPMENT; ESTABLISHING GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENT AGREEMENTS; ELECTING TO BECOME ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the future economic viability of the Town of Prosper depends on the ability to attract new investments through the location of new businesses and the expansion and modernization of existing businesses; and WHEREAS, the Town Council has determined that the creation and retention of job opportunities that result from new economic development is in the best interest of the Town of Prosper; and WHEREAS, the establishment of economic development incentives such as tax abatements may encourage enhancement of the local economy; and WHEREAS, the Town Council wishes to adopt guidelines and criteria governing tax abatement agreements and other business incentives; and WHEREAS, the guidelines adopted herein authorize tax abatement and other incentives for both new facilities and structures and for the expansion or modernization of existing facilities and structures. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER THAT: SECTION 1. The Town Council does hereby adopt a Tax Abatement Policy for Economic Development, attached hereto as Exhibit "A" and incorporated herein for all purposes. This Tax Abatement Policy shall govern all tax abatement agreements considered by the Town from and after the date of Resolution, until said policy expires or is repealed or amended as provided by law. SECTION 2. The Tax Abatement Policy is effective for two (2) years from the date of adoption. During that period, the Tax Abatement Policy may be amended or repealed only by a vote of three -fourths (Y4) of the members of the Town Council. Said Tax Abatement Policy is intended as a guide for use in developing tax abatement and agreements under applicable provisions of the state statutes regulating economic development. SECTION 3. The Town of Prosper hereby elects to become eligible to participate in tax abatement. SECTION 4. The adoption of the Tax Abatement Policy and the Town's election to become eligible to participate in tax abatement as provided herein shall not be construed to require the Town of t Prosper to approve any proposed tax abatement agreement which meets the requirements of the policy. Tax abatement applications shall be reviewed on a case -by -case basis and shall be granted only where the Town Council determines in its sole discretion that the tax abatement is in the best interest of the citizens of Prosper. E; *0910P►ll" This Resolution shall become effective upon its passage. PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS THIS 12th DAY OF April 2005. F Charles Niswant er, Mayor ATTEST: j d4r '/'v anae Jen11" ,Town Se y Resolution No. 05- 1 G T ax Abatement Policy for Economic Development Page 3 EA61 IBI ! 6A9 Town of Prosper Tax Abatement Policy for Economic Development Policy', aterrrerit The Town of Prosper is committed to the promotion and retention of high cl1'1ali4y development in all parts of the Town and to an ongoing improvement in the quality of life for its citizens. Insofar as the enhancement and expansion of the local economy generally serve these objectives, the Town of Prosper will, on a case -by -case basis, give consideration to providing tax abatement to stimulate economic development in Prosper. The Town of Prosper will consider providing this incentive in accordance with the procedures and criteria Outlined in this document. Nothing herein shall imply or suggest that the Town of Prosper is under any obligation to provide tax abatement or any Other business incentive: to any applicant. All applicants shall be considered on a case -by - case basis. Apf kai:31�1t1/ This tax abatement policy establishes guidelines for tax abaternent programs and agreements under the provision of Chapter 312 of the Texas Tax Code. €€€. Criteria Any request for tax abatement shall be reviewed and approved by the Town Council. The Prosper Economic Development Corporation Board of Directors serves as a recommending body to the Town Council regarding whether tax abatements should be offered in each individual case. Their recommendation shall be based upon an evaluation of the narrative responses provided in the Application for Tar Abatemar nt (attached herein) and all accompanying support documents. IV. Value of Abatement Following an assessment of the application package, the Prosper Economic Development Corporation Board of Directors shall determine whether or not it is in the best interest of the Town of Prosper to recommend that abatement or any other incentive be offered to the applicant, Additional consideration beyond the criteria will include such items as the degree to which the projectlapplicant furthers the goals and objectives of the community or meets or compliments a special need identified by Me community. Tax Abatement shall be offered in two categories: 1) Real Property and/or 2) Business Personal Property. Beal Property abatements may be offered to applicants that pursue the construction of new or expanded facilities in which to house the applicable project. The abatement will apply to the value of improvements made. Business Personal Property abatements may be offered to applicants that pursue the purchase or long-term AGENDA N0. Resolution No. 05-I1. Tax Abatement Policy for Economic Development Page 4 lease of existing facilities. The abatement will apply to the value of now peG-z�(-)nal property brought into the Towo of Prosper. Once a determination has been made that tax abatement should be offered, the value and term of the abatement will be determined based upon information providers in the applicant's narrative response. V. Expiration and Modification A. This Tax Abatement Policy for Economic Development is effective upon the date of its adoption and will remain in force for two years, at which time, all reinvestment zones and tax abatement contracts created pursuant to its provision will be reviewed by the Town Council to determine whether the goals of the abatement program have been achieved. Based upon that review, the Policy may be modified, renewed or eliminated. B. Prior to the date for review, as defined above, the Tax Abatement Policy may be modified by a three -fourths V1) vote of the Town Council, as provided for in Chapter 312 of the Texas Tax Code, AGENDA NO. Resolution No. 05- IG Tax Abatement Policy for Economic Development Page 5 Town of Prosper Application for Tax Abatement Please submit three (3) copies of the following application and supporting information to the Town of Prosper, Attention: Douglas C. Mousel, Town Administrator, P. O. Box 307, 113 W. Broadway Street, Prosper, TX. 75078. (Refer questions to Douglas C. Mousel at 972-346-2640 or doug mouse! ,pr©sl�eCkgpy). 1. APPLICANT CONTACT INFORMATION: A. Company Requesting Abatement: B. Mailing Address: C. Phone: Fax: D. Contact Person: E. Contact's Company Name / Address (if different) Web Page: Title: F. Contact's Phone: Fax: Cell: Email. 2. PROPERTY OWNER INFORMATION: A. Property Owner's Name: B. Mailing Address: C. Phone: Fax: D. Email: 3. PROPERTY OWNER'S REPRESENTATIVE: A. Owner's Representative's Name: B. Mailing Address: C. Phone: Fax: D. Email: Web Page: Web Page: AGENDA NO. Cell: Cell: Resolution No. 05-_ — Tax Abatement Policy for Economic Development Page 6 4. BASIC DATA: A. Property Lou-ition (including school district jurisdiction): B. Property Address: C. Property Legal Description / Total Acreage (Provide survey if by metes and bounds): 5. PV!0JECT DESCRIPTION: Please describe the following aspects of the project. A. Intended Use: (e.g. hotel, retail, industrial, manufacturing, medical, wholesale, research/development, call center, corporate office, professional office, etc.) B. Is the project existing, expanding, new, relocating from another city/county in Texas or relocating from another state? If a relocation or consolidation, please give location of current facilities. Will the occupancy be Owner/Occupied or Landlord/Tenant? If leasing, what is the length of the lease? C. Is the project compatible with the Town's Comprehensive Plan? Yes No _ Will a zoning change be necessary to accommodate the project? Yes — No _ D. Is there adequate infrastructure available to the site? Is not, please detail required improvements. AGENDA NO. Resolution No. 05-16 Tax. Abatement Policy for Economic Development Page 7 6. DEVELOPMENT CONCEPT: Please describe the development ooncp.pt for the project. A. Building Type: R of stories, archi€er iural style, materials, etc. B. Development Concept: (single building or campus setting, open space, surface or structured parking, acreage, vehicular access, etc.) - 7. TIMING QUESTIONS: Please provide an estimation of the following timing questions. Reference Month/Year Item a. First development application z( b. Ground breaking c• Phase I a­upancy 8. PROJECT CRITERIA: site Reference Category Approximate Dates by Phase Phase I - Phase If - Phase III - - building construction in Wonth/Yr) (M_onthlYr), Month/Yr)_ a- - square feet s.f. s.f. s.f. $ $ b. Construction value $ $ C. -a-.--Annual Personal property value $ $ - sales tax value $ $ $ generated & collected in _ Prosper) e. Total full-time employees f. Employees with annual salary of $50,000 or reater g- Average annual employee $ $ $ salary_ $ h. Total annual a roll $ $ i. Percentage of employees residing in Collin County AGENDA N0. Resolution No. 05A— Tax Abatement Policy for Economic Development Page 8 Ref: Provide any additional notes here regarding any of the items above (e.g. 8a — Notes 9. COMMUNITY IMPACT,,' .; A. How will this project affect existing businesses? B. What effect would the project have on the local housing market? C. Will development of the project create any environmental impact? (Air quality, water quality, visual quality, etc.) 10, ABATEMENT REQUESTED: Please note extent of abatement requested, A. Tax Abatement i. % of real property for years. ii. % of personal property for years. B. Any other incentives being requested? (i.e., other than tax abatement) C. Please describe the necessity in requesting property tax abatement or other incentives and summarize the overall economic impact on the Town of Prosper. AGENDA NO. Resolution No. 05- 14 i a% Abatement Palley for Economic Development( Page 8 1 I. SUPPORTING INFORMATION PROVIDED: yc� NO Itam (10 copies each or B/W original for reproduction) Company description Annual Report ® — Cover letter with request Conceptual development layout ® — Financial or credit rating report or similar evaluation ® Costlbenefrt analysis for the `town ® Other: _ ® Other: -- — —_ 12. GENEI UA.L COMMENTS FROM APPLICANT: (Provide any comments here or on additional attached pages.) AGENDA N0.