COUNCIL COMMUNICATION

DATE:

 

04/07/03

 

SUBJECT:    FINAL READING ORDINANCE NO. 2003-O-090

 

ESTABLISHING GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENTS BY THE CITY OF LAREDO; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE AND PUBLICATION.

 

INITIATED BY:

 

Larry Dovalina, City Manager

 

 

STAFF SOURCE:

 

Phyllis Colón, Tax-Assessor Collector

 

 

PREVIOUS COUNCIL ACTION:

On June 15, 1998, City Council passed ordinance 98-O-141 which established for the first time guidelines & criteria governing tax abatements by the City of Laredo.  State law requires that the guidelines are only effective for a two year period therefore, it is necessary to re-adopt the guidelines and criteria every two years.

 

 

BACKGROUND:

 

Since 1998, the City of Laredo has offered a tax abatement program.  In the past, the director of the Laredo Development Foundation indicated that companies who were considering locating in Laredo asked if the City of Laredo has a tax incentive program.  In 1998, the Laredo Development Foundation (“LDF”) recommended that tax abatement incentives be initiated in the City of Laredo.  As a result, the Cit of Laredo adopted through Ordinance No. 98-O-141 Guidelines and Criteria as prepared by the Laredo Development Foundation.  Since then, the City has worked well with the existing guidelines and criteria.

 

Presently, the City of Laredo has to re-adopt the guidelines and criteria in accordance with state law.

 

 

FINANCIAL:

 

Less tax revenue if City Council approves future tax abatement agreements.

 

 

 

RECOMMENDATION:

 

Approval of Ordinance.

 

 

 

 

ORDINANCE NO. 2003-O-090

 

ESTABLISHING GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENTS BY THE CITY OF LAREDO; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE.

 

            WHEREAS, the Laredo Development Foundation recommends that tax abatement incentives be initiated in the City of Laredo; and

 

            WHEREAS, the City Council finds that tax abatements, in accordance with the “Guidelines and Criteria Governing Tax Abatements by the City of Laredo,” attached hereto as Exhibit “A” and incorporated herein for all purposes, contributes to the economic development of the City in furtherance of the policies and objectives of the City as authorized in Chapter 312 of the Texas Tax Code and Section 380.001 of the Texas Local Government Code, and will assist the City in achievement of its objectives to create jobs for the citizens of the City, build the tax base of the City, and provide an attractive inducement to companies to build capital intensive projects in the City.

 

NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO, TEXAS THAT:

 

Section 1.        Guidelines and Criteria Governing Tax Abatements Adopted.

 

In accordance with the requirements in Section 312.002 of the Texas Tax Code, the City of Laredo hereby adopts the “Guidelines and Criteria Governing Tax Abatements by the City of Laredo” attached hereto as Exhibit “A” and incorporated for all purposes.

 

Section 2.        No Limits.

 

Adoption of the guidelines and criteria stated in Section 1 herein does not:

 

(1)        Limit the discretion of the City Council to decide whether to enter into a specific tax abatement agreement;

 

(2)        Limit the discretion of the City Council to delegate to its employees the authority to determine whether or not the City Council should consider a particular application or request for tax abatement; or

 

(3)        Create any property, contract, or other legal right in any person to have the City Council consider or grant a specific application or request for tax abatement.

 

Section 3.        Effectiveness of Guidelines.

 

The guidelines and criteria adopted in section 1 herein shall be effective for two (2) years from the effective date of this ordinance.  During that period, the said guidelines and criteria governing tax abatements may be amended or repealed only by a vote of three-fourths of the members of the City Council.

 

Section 4.        Effective Date.

 

This ordinance shall become effective upon passage and approval.

 

Section 5.        Severability

 

If any provision, section, subsection, sentence, clause or phrase of this ordinance, or the application of same to any person or set of circumstance is for any reason held to be unconstitutional, void, invalid or for any reason unenforceable, the validity of the remaining portion of this ordinance or its application to other person or sets of circumstances shall not be affected thereby, it being the intent of the City Council of the City of Laredo in adopting this ordinance that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity, and all provisions are declared severable for that purpose.

 

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR on this the _______ day of March, 2003.

 

 

 

 

______________________

ELIZABETH G.  FLORES

MAYOR

 

 

ATTEST:

 

_______________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

 

APPROVED AS TO FORM:

JAIME L.  FLORES

CITY ATTORNEY

 

 

BY: _________________________

       VALERIA M. ACEVEDO

       ASSISTANT CITY ATTORNEY