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HomeMy WebLinkAboutRES 042605-Q - Tax Abatement TurncoRESOLUTION NO. 49 T 05 Q A RESOLUTION STATING THAT THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS ELECTS TO BECOME ELIGIBLE TO PARTICIPATE IN A PROPERTY TAX ABATEMENT FOR TURNCO TOOL & INSTRUMENT, INC.; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Property Redevelopment and Tax Abatement Act (Chapter 312 of the Texas Tax Code, Vernon's Texas Codes Annotated (the "Act")) states that a taxing unit may not enter into a property tax abatement agreement unless the governing body has adopteda resolution stating that the taxmg unit elects to become eligible to participate in a tax abatement (Tex. Tax Code 312.002(a)); and WHEREAS, in addition, the Act states that the governing body must establish guidelines and criteria governing tax abatement agreements, which guidelines are effective for a period of two (2) years (Tex. Tax Code 312.002(c)); and WHEREAS, on February 11, 2003, the City Council adopted guidelines and criteria governing tax abatement agreements as set forth in the "City of Georgetown Principles for Economic Development Incentives." The 2003 guidelines state in part that, "the City of Georgetown may offer tax abatements for commercial or industrial new business construction, or facility expansion, as well as business personal property tax associated with real property. City abatements are granted through an approved contract with the Georgetown City Council." The 2003 guidelines further outline the standards for determining benefits and the process for considering incentive proposals; and WHEREAS, the 2003 guidelines have expired and the City Council will have an opportunity to consider new guidelines in the near future; and WHEREAS, on March 22, 2005, the City Council of the City of Georgetown, Texas (the "City") met in executive session to consider a proposal to enter into a property tax abatement agreement with Turnco Tool & Instrument, Inc ("Turnco") to induce Turnco to locate its business in the City; and WHEREAS, the purpose of this Resolution is to commence the process for adopting a property tax abatement agreement with Turnco. Resolution No. 40/2O ©S- Intent to Participate in Tax Abatement for Turnco Tool & Instrument, Inc. Page 1 of 3 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS: Section 1: The City Council finds and declares that the declaration of intent to participate in a property tax abatement agreement with Turnco Tool & Instrument, Inc. is in confoinnance with the following Policy Statements in the City's Century Plan: 1.0 The community enjoys the benefits of well -planned land use in which conflicting needs are balanced. 9.0 Citizens and commercial goods move safely and efficiently throughout all parts of the City. 10.0 Georgetown's citizens and businesses enjoy an attractive community with a unique sense of place and a positive, identifiable image, at a cost which is consistent with other city social and economic priorities. 13.0 All municipal operations are conducted in an efficient business -like manner and sufficient financial resources for bothcurrent and future needs are provided. 15.0 The City manages its resources in a sound and fiscally conservative manner. Section 2. The City Council will establish guidelines and criteria governing tax abatement agreements by the City which shall provide for the availability of tax abatement for both new facilities and structures and for the expansion or modernization_ of existing facilities and structures and which shall be effective for two years from the date adopted, as required by Section 312.002(a) and (c) of the Texas Tax Code. Section 3. The City Council hereby resolves that it intends to become eligible to participate in a tax abatement agreement with Turnco as authorized by the Act, if it finds that the terms of the agreement and the property subject to the agreement meet the applicable guidelines and criteria adopted by the governing body, and if all other applicable provisions of the Texas Tax Code and other applicable law are satisfied. Section 4. If any provision, section., subsection, sentence, clause or phrase of this Resolution, or the application of same to any person to set circumstances, is for any reason held to be unconstitutional, void or invalid, the validity of the remaining provisions of this Resolution or their application to other persons or set of circumstances shallnot be affected thereby, it being the intent of the City Council in adopting this Resolution that no portion hereof or regulations connected herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any portion hereof and all provisions of this Resolution are declared severable for that purpose. Section 5. This Resolution is effective immediately upon its passage. Resolution No. Oa, �^ intent to Participate in Tax Abatement for Turnco Tool & instrument, Inc. Page 2 of 3 RESOLVED AND ADOPTED on the ; t °' day of 2005. CITY OF GEORGETOWN, TEXAS Gary lon, Mayor City of Georgetown, Texas ATTEST: APPROV AS TO FO By: By: Sandra Lee Patricia Carls City Secretary City Attorney Resolution No 04/2 05— Intent to Participate in Tax Abatement for Turnco Tool & Instrument, Inc. Page 3 of 3