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AI# 10497
Regular City Council Meeting
7.4.
02/22/2022:
Information
Agenda Item
Resolution - Finance:
Consider a resolution approving and adopting Guidelines and Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock, in accordance with the Property Redevelopment and Tax Abatement Act.
Item Summary
The Guidelines and Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock have expired, and in order for the City of Lubbock to continue participating in tax abatement, new guidelines have to be adopted. The guidelines proposed are the same as the prior adopted guidelines.
Below is a summary of the Proposed Industrial Tax Abatement Guidelines.
• General Purpose: To promote high quality development in all parts of the City.
• Maximum Term: 10 Years
• Eligible Property: Improvements to Real Property and Tangible Personal Property
• Non-Eligible Property: Real Property; inventories or supplies; tools; furnishings and other forms of movable personal property; vehicles; aircraft; housing; boats; hotel accommodations; motel accommodations; retail businesses; property owned by the State of Texas or any State agency; and, property owned or leased by a member of the affected Jurisdiction that did not have an active tax abatement in place before they became a member of the governing body.
• Types of Companies: Advanced Technologies and Manufacturing; Manufacturing; Research and Development; Medical Services (as defined in Section II Definitions); Warehouse/Distribution; Corporate Headquarters of a Regional/National Service Center; Information and Data Centers; or, the project is not included as a target industry, but has the potential of generating additional significant economic development opportunities to Lubbock.
• Location: Allow industrial tax abatement anywhere within the jurisdiction in a reinvestment zone.
• Other Eligibility Requirements: To qualify for industrial tax abatement, a company must modernize or expand an existing facility or construct a new facility and be a producer, manufacturer or distributor of goods and services of which 50% or more are distributed outside of Lubbock County.
• Investment/Job Criteria:
The project will add at least $1 million in real property improvements, or $2 million in new personal property, or 25 new permanent jobs, if the facility is a new company to Lubbock.
The project will add at least $500,000 in real property improvements, or $1 million in new personal property, or 15 new permanent jobs, if the facility is an existing company.
• Qualifiers: Approving the guidelines does not obligate the jurisdiction to provide tax abatement to any applicant.
• Variances: The City Council can vary any of the requirements not required by statute, with a three-quarter vote.
If approved, the effective date of the Industrial Tax Abatement guidelines will be February 22, 2022.
Fiscal Impact
None
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Resolution - Tax Abatement for Industrial
Industrial Guidelines
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