HomeMy WebLinkAboutIR 7757 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7757
To the Mayor and Members of the City Council September 14, 1993
rem Subject: PROPOSED REVISION TO THE TAX ABATEMENT
PROCEDURES FOR PROJECTS LOCATED WITHIN STATE
DESIGNATED ENTERPRISE ZONES
As required by state statute, on December 8, 1992 the City Council adopted the attached
Policy Statement entitled "Tax Abatements on Commercial/Industrial Projects - City of
Fort Worth". The tax abatement enabling legislation requires that, before entering into
a tax abatement agreement, City Council must designate the specific property as a
reinvestment zone. However, the legislation exempts property within a state designated
enterprise zone from this additional requirement. Simply stated, a state designated
enterprise zone is in fact a reinvestment zone.
Before a reinvestment zone is created, the legislation requires that a public hearing be
held. Seven days prior to the hearing, notification of the hearing must be: (a) given via
certified mail to the presiding officer of each taxing unit which has in its boundaries real
property to be included in the proposed reinvestment zone, and (b) published in the
official newspaper of record. Currently, these requirements are met by requiring the
Council to act on two M&C's (including an ordinance).
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Beginning with Sundance West L the City's first tax abatement agreement, the staff chose
to include a reinvestment zone designation with every tax abatement agreement--even
if the property is located in an enterprise zone. This approach was taken to ensure
consistency in processing and to provide an additional forum for any public comment.
Analysis of the 14 existing tax abatement agreements indicates that 9 (or 64.3%) of these
agreements are in the existing enterprise zones.
In the spirit of"reinventing" government, the Economic Development staff has reviewed
the need for the additional step of declaring a reinvestment zone within an enterprise
designation area. It was concluded that this is an unnecessary, time consuming and
expensive step for both the applicant and the City.
The staff is preparing an amendment to the policy which will incorporate the state law
language into the process for tax abatement in the designated enterprise zone areas.
This proposed change will not restrict the public's opportunity to address each tax
abatement application. It is the staffs opinion that it will streamline the process and
hopefully help to generate new growth in the City's enterprise zones.
The proposed changes will be forthcoming in the near future with an effective date of
October 1, 1993.
—
Bob Terrell
Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS