Agenda - View Meetings (All) (6604066556)

(7)(a)

CITY COMMISSION REGULAR MTG

Meeting Date:

11/20/2024

Approve Ordinance 2024-28, amending the City’s existing ordinances pertaining to Texas Enterprise Zones and nominating a specific Union Carbide Corporation project as an enterprise project.

Submitted For:

Kristin Edwards

Submitted By:

Kristin Edwards, Economic Development

Department:

Economic Development

Information

ACTION REQUEST

Approve Ordinance 2024-28, amending the City’s existing ordinances pertaining to Texas Enterprise Zones and nominating a specific Union Carbide Corporation project as an enterprise project.

BACKGROUND (Brief Summary)

The City of Texas City was approached by a third-party consultant hired by Union Carbide Corporation, i.e., Dow Chemical, to pursue a Texas Enterprise Zone designation for a $37 million project.
A Texas Enterprise Zone is a State sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.

The City’s role is to provide an updated list of available incentives in the community, which Dow can reflect in their state-level application, and to nominate the project for enterprise project status. The City has not committed to, nor is expected to, provide any of the incentives listed in the attachment to Dow Chemical. What we will be asking tonight is for the City Commission’s approval of Ordinance 2024-28, which updates our original ordinance allowing for Texas Enterprise Zones (2004-42), as well as Ordinance 2013-13 that amended the initial ordinance.

The changes outlined in Ordinance 2024-28 expand the list of available incentives in Texas City and recognize that Union Carbide “meets the criteria for tax relief and other incentives … on the grounds that it will be located at the qualified business site, [and] will create a higher level of employment, economic activity and stability.”

With the City Commission's approval, Union Carbide Corporation will move forward with their application to the State of Texas for an enterprise zone designation.

RECOMMENDATION

Approve Ordinance 2024-28, amending the City’s existing ordinances pertaining to Texas Enterprise Zones and nominating a specific Union Carbide Corporation project as an enterprise project.

Fiscal Impact

Funds Available Y/N:

Amount Requested:

Source of Funds:

Economic Development Corporation

Account #:

801-050-53111

Fiscal Impact:

There is no fiscal impact associated with the approval of this Ordinance.

Attachments

Ordinance - Texas Enterprise Zone

Union Carbide - Written request

Ordinance