1. Tax Abatement Policy Renewal
Presented by Robert Sturns, Economic Development Manager
Housing & Economic Development Department May 4, 2010

2. Presentation Objectives
Discuss the State legislation that requires adoption of a Tax Abatement Policy
Outline the proposed changes to the existing Tax Abatement Policy
Receive direction regarding the Proposed Tax Abatement Policy and discuss next steps

3. Tax Abatement Policy Legislation
Chapter 312 of the Texas Tax Code requires that a municipality have “established guidelines and criteria governing tax abatement agreements”
The “established guidelines and criteria” are effective for two years from the date adopted.
Last policy was adopted on June 16, 2008

4. Proposed Changes
Reduce threshold on capital investment from $10.0 M to $5.0 M for Commercial/Industrial, Mixed-Use and Business Expansion projects
Reduce threshold on capital investment from $5.0 M to $2.0 M on residential projects eligible for abatement
For multi-family residential and mixed-use projects, applicant will commit to a set number or certain percentage of handicap accessible units
Reduce the application fee from $15,000 to an amount TBD with a minimum $2,000 being non-refundable

5. Proposed Changes
Favorable consideration will be given to applicants for tax abatement that provide equal benefits for all employees
Consideration for an additional 10% abatement for a LEED certified project (project would have to actually get the certification)
Remove language in the policy regarding the applicant’s Board of Directors
Clean-up language regarding evaluation by Council Committee

6. Next Steps Final Policy will be provided in June HED Committee packet
Receive feedback from HED Committee
Place an M&C and resolution on the June 15th Council agenda for consideration of the Tax Abatement Policy

7. Tax Abatement Policy Renewal
Questions/Comments/Conclusion