Ordinance No. 5,849910425 -15
ORDINANCE NO. 5849
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS NOMINATING AN AREA AS ENTERPRISE ZONE NO. 2
PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT (TEXAS CIVIL
STATUTES, ARTICLE 5190.7); PROVIDING TAX INCENTIVES;
DESIGNATING AN AUTHORIZED REPRESENTATIVE TO ACT IN ALL
MATTERS PERTAINING TO THE NOMINATION AND DESIGNATION OF
THE AREA DESCRIBED HEREIN AS AN ENTERPRISE ZONE AND
REINVESTMENT ZONE; AND FURTHER DESIGNATING A LIAISON TO
ACT ON ALL MATTERS PERTAINING TO THE ENTERPRISE ZONE ACT
ONCE DESIGNATED BY THE TEXAS DEPARTMENT OF COMMERCE.
WHEREAS, the City Council of the City of Baytown, Texas
desires to create the proper economic and social environment to
induce the investment of private resources in productive business
enterprises located in severely distressed areas of the City and
to provide employment to residents of such area; and
WHEREAS, certain conditions exist in such area which
represent a threat to the health, safety, and welfare of the
people of such area; and
WHEREAS, it is necessary and in the best interest of the
City to nominate such area as an Enterprise Zone pursuant to the
Texas Enterprise Zone Act (Texas Civil Statutes, Article 5190.7,
the "Act); NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City hereby nominates the 2791 acre
area more specifically described below as Enterprise Zone No. 2
in accordance with the Act:
Beginning at the intersection of the south Right of Way (ROW) of
West Texas Avenue and the west ROW of South Main and running
thence west along the alignment of the south ROW of West Texas
Avenue to the west ROW of North Pruett street;
Thence, north along the west ROW of North Pruett Street to its
intersection with the south ROW of West Lobit Avenue;
Thence, west along the south ROW of West Lobit Avenue to its
intersection with the southwest ROW of Decker Drive;
Thence, north along the southwest ROW of Decker Drive to its
intersection with the west ROW of North Airhart Driver
Thence, south along the west ROW of North and South Airhart Drive
to its intersection with the south ROW of Oakwood Street;
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Thence, southwest along the alignment of Baytown Avenue and the
Southern Pacific Railroad to its intersection with the City
Limits adjoining Black Duck Bay;
Thence, southeast along the City Limits adjoining Black Duck Bay
and Tabbs Bay to the west ROW of Causeway Road:
Thence, north along the west ROW of Causeway Road to its
intersection with the north ROW State Highway 146;
Thence, northeast along the north ROW of State Highway 146 to its
intersection with the west ROW of South Main Street:
Thence, north along the west ROW of South Main Street to its
intersection with the south ROW of West Texas Avenue and the
Point of Beginning.
Section 2: That the City Council f inds the above
described area meets the qualifications for designation as an
Enterprise Zone under the provisions of the Act.
Section 3: That the City Council will provide certain
tax and other incentives applicable to business enterprises in
the zone which are not applicable throughout the City as follows:
The City shall abate taxes on the increase in value of real
property improvements for qualified businesses that locate or
expand in the designated Enterprise Zone. The level of abatement
shall be based upon the extent to which the business receiving
the abatement creates jobs for qualified employees or increases
the amount of investment expended on the expansion, development,
and /or rehabilitation of properties located within the zone in
accordance with attached Exhibit A. Qualified employee shall be
defined by Section 3 (a)(11) of the Texas Enterprise Zone Act,
Article 5190.7.
The City will waive or refund any and all building permit
fees due or paid for such development, expansion, or
rehabilitation project.
The City will waive or refund any and all water and sewer
tapping fees due or paid for qualified new developments or
redevelopment projects involving qualified buildings within the
zone.
The City shall offer low- interest loans using the City's
HUD -CDBG Revolving Loan Fund to assist businesses /property owners
in carrying out eligible projects.
Section 4: The incentives described in Section 3 above
shall not be available to enterprises primarily involved in the
retail sale of alcoholic beverages for on- premise consumption.
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Section 5: That the area described in this ordinance is
designated as an Enterprise Zone and a Reinvestment Zone, subject
to the approval of the Texas Department of Commerce.
Section 6: That the City Council directs and designates
Emmett Hutto, Mayor, as the City's authorized representative to
act in all matters pertaining to the nomination and designation
of the area described herein as an Enterprise Zone and a
Reinvestment Zone.
Section 7: That the City Council further directs and
designates Bobby Rountree, City Manager, as liaison for
communication with the Texas Department of Commerce to oversee
zone activities and communications with qualified businesses.
Section 8: That a public hearing to consider this
ordinance was held by the City Council on April 25, 1991.
Section 9: That this ordinance shall take effect
immediately from and after its passage by the City Council of the
City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 25th April, 1991.
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OETT O. HUTTO, Mayor
ATTEST:
EIL'EENap. HALL, City Clerk
McLEMORE, Assistant City Attorney
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TAX ABATEMENT PROGRAMS
Businesses requesting tax abatement must qualify under the
General Tax Abatement or the Targeted Investment Support.
1. General Tax Abatement
The amount of tax abated on an increment in value added to
the ad valorem value of the property will be determined by the
City's Tax Abatement Guidelines and criteria as set forth in
Resolution No. 1001 passed by the City Council of the City of
Baytown on November 12, 1987.
2. Targeted Investment Support
Increased value of property improved in accordance with the
program objectives shall be exempt from paying city property
taxes for the lesser amount of either (a) the tax due for a
period of five (5) years, or (b) until a cumulative tax exemption
not to exceed $15,000 is attained. The cumulative tax exemption
shall not exceed the total amount of the qualifying
renovation /development investment.
Eligible applicants include owners and renters of buildings
and properties within the Enterprise Zone. Owners receiving tax
exemption from improvements by renters shall insure that renters
received rent concessions equal to the value of the cumulative
tax exemption.
Eligible activities include cosmetic and code renovations to
existing commercial and industrial buildings and development of
new commercial and industrial buildings. To qualify for this
program, the applicants must remedy all code deficiency-pre-
existing on the Property.
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