Ordinance No. 8,326980709 -6
ORDINANCE NO. 8326
® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, NOMINATING AN AREA AS ENTERPRISE ZONE NO. 2; FINDING
THE AREA MEETS THE REQUIREMENTS OF THE TEXAS ENTERPRISE ZONE
ACT; PROVIDING TAX INCENTIVES APPLICABLE TO BUSINESSES IN THE
AREA; DESIGNATING AN AUTHORIZED REPRESENTATIVE TO ACT IN ALL
MATTERS PERTAINING TO THE NOMINATION AND DESIGNATION OF THE
AREA AS AN ENTERPRISE ZONE AND REINVESTMENT ZONE;
DESIGNATING A LIAISON TO ACT ON ALL MATTERS PERTAINING TO THE
ENTERPRISE ZONE ONCE DESIGNATED BY THE TEXAS DEPARTMENT OF
COMMERCE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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 in severely distressed areas of the City and to provide employment to residents of such
areas; and
WHEREAS, certain conditions exist in such areas 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 areas as
enterprise zones pursuant to the Texas Enterprise Zone Act (the "Act ");
WHEREAS, prior to the nomination of Enterprise Zone No. 2 herein, the City Council held a
public hearing to consider this ordinance on the 9`h day of July, 1998; and
WHEREAS, the area herein nominated as Enterprise Zone No. 2 has a continuous boundary, is
of a size permitted by the Act, is an area of pervasive poverty, unemployment and economic distress,
and is within the incorporated limits of the City; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That all matters and facts set forth in the recitals above are found to be true; and
the processes and procedures therein described are approved as the processes and procedures which the
City Council of the City of Baytown undertook and completed prior to the adoption of this ordinance.
Section 2: That the City Council of the City of Baytown, Texas, hereby nominates the
area, more specifically described in Exhibit "A," which is attached hereto and incorporated herein for
all intents and purposes, as Enterprise Zone No. 2 in accordance with the Act.
Section 3: That the City Council finds that the area described in Exhibit "A" meets all of
the requirements of the Act for designation as an enterprise zone.
Section 4: That the City Council will provide the following incentives, which are
applicable to businesses within the zone which are not applicable throughout the City of Baytown:
• 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 that a business receiving an abatement creates
jobs for qualified employees, as such term is defined in the Act, or increases the amount of
investment in property located within the zone, whether such investment be through
980709 -6a
® expansion, development and/or rehabilitation. The abatement must qualify under either of
the tax abatement programs, described in Exhibit "B," which is attached hereto and
incorporated herein for all intents and purposes.
• The City shall waive or refund any and all building permit fees due or paid for qualified
new development, expansion, or rehabilitation projects.
The City shall 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 5: The incentives described in Section 4 shall not be available to enterprises
primarily involved in the retail sale of alcoholic beverages for on- premise consumption.
Section 6: That the area described in Exhibit "A" is designated as an enterprise zone and a
reinvestment zone subject to the approval of the Texas Department of Commerce.
Section 7: That the City Council directs and designates the Mayor as the City's authorized
representative to act in all matters pertaining to the nomination and designation of the area described
herein as the enterprise zone and as a reinvestment zone.
Section 8: That the City Council further directs and designates the City Manager as liaison
for communication with the Texas Department of Commerce to oversee zone activities and
communications with qualified businesses.
Section 9: 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 9"' day of July, 1998.
ATTEST:
EILEEN P: HALL=; City Clerk
APPROVED AS TO FORM:
ACID RAMIREZ, S ., ity Attorney
® d:klh93\ council\ ordinance \NominatingCnterprisezoneNo2 .Ordinance
2
,� r, A -
PETE C_ ALFARO, Mayor
0 METES AND BOUNDS DESCRIPTION
ENTERPRISE ZONE NO. 2
Beginning at the intersection of the south right -of -way (ROW) of West Texas Avenue and the
west ROW of South Main Street 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 Drive;
Thence, south along the west ROW of North and South Airhart Drive to its intersection with
the south ROW of Oakwood Street;
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
of 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.
® OMyUocumcnts \LcgaNOisccllaneous \M etc s &BoundsEntcrpriscZoncldoc
EXNtbff A
Enternrise Zone No. 2 Metes and Bounds - Paee Solo
0 Tax Abatement Programs
Businesses requesting tax abatement must qualify under the General Tax Abatement or the Target
Investment Support as detailed herein.
I. 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. 1327, passed by the City Council of the City of Baytown on the 25th day of
September, 1997.
II. 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 of the tax due for a period of five years
or $15,000. 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 Enterprise
Zone No. 2. Owners receiving tax exemptions from improvements by renters shall ensure 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 deficiencies on the property by bringing the
same up to the standards of all applicable local, state and federal regulations.
0 d: kIh931 councihordinanceWominatingEnterpriseZoneNo2 .Ordinance
Exhibit "B"