| Ordinance 2nd Reading - Business Development: Consider Ordinance No. 2024-O0146, ordaining the participation by the City of Lubbock in the Texas Enterprise Zone Program, pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code; nominating United Supermarkets, L.L.C., located at 5801 Martin Luther King Jr. Boulevard, to the Office of the Governor, Economic Development and Tourism through the Economic Development Bank as an Enterprise Project; providing tax incentives; designating a liaison for communication with interested parties; directing staff to submit an application in conjunction with nomination; designating the effective period for the Enterprise Project; providing a savings clause; and providing for publication. |
On November 5, 2024, the City Council approved the first reading of the ordinance.
The City of Lubbock received a request from United Supermarkets, L.L.C. to nominate their company to the Office of the Governor, Economic Development and Tourism (EDT), to be considered for an Enterprise Zone Project Designation. This nomination would allow United Supermarkets, L.L.C. to compete for an Enterprise Zone Project designation, which would give them access to State incentives including State sales tax rebates.
The City can only nominate the project. The designation is a competitive process, so the application by United Supermarkets, L.L.C. will be competing with any other applications submitted to the State in the December 1, 2024 submission round. Only the State can designate an Enterprise Zone Project.
Due to changes that are needed to the existing nominating ordinance, which was approved November 2, 2020, a public hearing is required. The purpose of the public hearing is to receive any input concerning the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, to consider possible tax incentives to be offered to projects, and to nominate United Supermarkets, L.L.C. as a State-designated Enterprise Zone Project.
The changes to the Ordinance, not including grammatical changes, are listed below:
- The City is in full compliance with Chapter 2303 of the Texas Government Code prior to nomination of an eligible business (which is a new legislative requirement);
- Section 3, II: Updated the number of Tax Increment Financing Reinvestment Zones to four (One district is currently being considered by the City Council);
- Section 3, IV: Added the Economic Development Sales Tax (4A) contribution as a possible available incentive;
- Section 3, V: Added Chapter 380 as a possible available incentive;
- Section 3, VI: Added Other Tax Deferrals, Tax Refunds or Tax Incentives as a possible available incentive;
- Section 3, XIII: Added language to specify types of Customized Job Training available for possible incentives;
- Section 3, XVI: Updated language to include thecommunity policing model and new infrastructure;
- Section 3, XVIII: Added Special Public Transportation Routes and Reduced Fares as a possible available incentive;
- Section 3, XIX: Added Low-Interest Loans for Business as a possible available incentive;
- Section 3, XX: Added Inspection Fee Exemption as a possible available incentive;
- Section 3, XXI: Added Provision of Publicly Owned Land for Development Purposes as possible available incentive;
- Section 3b: Removed from Ordinance (not applicable for this nomination); and
- Section 6a: Updated requirements to reflect that 35% of the business' new employees will be residents of an Enterprise Zone due to the business site location being outside of an enterprise zone.
The public hearing was conducted as a separate agenda item, prior to consideration of this ordinance, as required by law. |
