Ordinance No. 11,105ORDINANCE NO. 11,105
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING THE CITY OF BAYTOWN TO PARTICIPATE IN
THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO THE TEXAS
ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE
( "ACT "), PROVIDING TAX INCENTIVES, DESIGNA'T'ING A LIAISON FOR
COMMUNICATION WITH THE INTERESTED PARTIES, AND
NOMINATING NRG TEXAS POWER LLC TO THE OFFICE OF THE
GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM ( "OOGEDT ")
THROUGH THE ECONOMIC DEVELOPMENT BANK ("BANK ") AS A
TEXAS ENTERPRISE PROJECT ("PROJECT "); AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
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WHEREAS, the City Council of the City of Baytown, Texas (the "City ") 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 areas; and
WHEREAS, the Project is not located in an area designated as an enterprise zone: and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Act, NRG Texas Power LLC
has applied to the City for designation as a Texas Enterprise Project; and
WHEREAS, the City finds that NRG Texas Power LLC meets the criteria for tax relief
and other incentives adopted by the City on the grounds that it will be located at the qualified
business site, will create a higher level of employment, economic activity and stability; and
WHEREAS, a public hearing to consider this ordinance was held by the City Council on
April 23, 2009.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: The City nominates NRG Texas Power LLC for Enterprise Project status.
Section 2: The local incentives identified and summarized briefly in the attached Exhibit
"A," at the election of the governing body, may be made available to the nominated Project or
activity of the qualified business site.
Section 3: The enterprise zone areas within the City are reinvestment zones in
accordance with the Texas Tax Code, Chapter 312.
Section 4: The Baytown City Council directs and designates the Director of Planning and
Development Services or his /her designee as the City's liaison to communicate and negotiate
with the OOGEDT through the Bank and enterprise project(s) and to oversee enterprise zone
activities and communications with qualified businesses and other entities in an enterprise zone
or affected by an enterprise project.
Section 5. The City finds that NRG Texas Power LLC meets the criteria for designation
as an enterprise project under Chapter 2303. Subchapter F of the Act on the following grounds:
(a) NRG Texas Power LLC is a "qualified business" under Section 2303.402 of the
Act since it will be engaged in the active conduct of a trade or business at a
qualified business site within the governing body's jurisdiction, located outside of
an enterprise zone and at least thirty -five percent (35 %) of the business' new
employees will be residents of an enterprise zone or economically disadvantaged
individuals; and
(b) There has been and will continue to be a high level of cooperation between
public, private, and neighborhood entities in the area; and
(c) The designation of NRG Texas Power LLC as a Texas Enterprise Project will
contribute significantly to the achievement of the plans of the City for
development and revitalization of the area.
Section 6. The Enterprise Project shall take effect on June 1, 2009, and terminate on
June 1, 2014.
Section 7: 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 affirnlative v�rfe of the City Council of the
City of Baytown this the 23`d day of April, 2009. ��
STEPMEM+I!DONCARLO S,
CI-ONACIO RAMIREZ, SR., Ci y Attorney
Ucobsry IUegallKaren TileslCity CouncillOrdinances1200%April 231NRGCedar Bayou TX CI Nominating Ordinance 04- 14- 09.doc
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Exhibit "A"
A. In any area that is located in the existing City of Baytown enterprise zone, number
EZ268- 010899 -B2, or an area that qualifies as an enterprise zone under Section
2303.101, the following incentives are available:
1. Tax Abatement. The City may abate taxes on the increase in value of real property
improvements and eligible personal property that is located in an enterprise zone or that
is for a state - designated enterprise project. The level of abatement shall be based upon
the extent to which the business receiving the abatement creates or retains jobs for
qualified employees, as such term is defined by the Act, and in accordance with the City
of Baytown Tax Abatement Policy, which is summarized as follows:
OBJECTIVES Primary job creation -- target industries.
Encourage LEEDS development.
Amount abatement -- minimum to be competitive.
Fair to taxing jurisdictions -- It is a local option.
Fair to existing business -- modernization, expansion.
Regional cooperation -- similar abatements.
Flexibility -- toughly enforced variance procedure.
TERMS Year 1 100%
Year 2 100%
Year 3 80%
Year 4 60%
Year 5 50%
Year 6 0%
FACILITIES
Manufacturing.
THAT QUALIFY
Service & distribution.
LEED® certified office building.
Regional entertainment.
Research and development.
Other basic industry.
Class "A° office.
AUTHORIZED
New facilities.
INVESTMENTS
Expansion.
Modernization.
ABATED
Buildings and structure.
Fixed machinery and equipment.
Site improvements.
Office space to administer plant.
NOT ABATED
Land.
Existing improvements.
Construction -in- progress.
Personal property.
Hotels.
Housing.
Pipelines.
Gas and fluid storage.
Electrical generating facilities.
Deferred maintenance.
Property with useful life less than fifteen (15) years.
ECONOMIC
Minimum one million dollar ($1,000,000) investment.
CRITERIA
Retain or create at least five (5) jobs.
No serious adverse affect on jurisdictions.
Exhibit "A," Page 1
2. Industrial District Agreements. The City may offer an industrial district agreement to
qualified new development, expansion or rehabilitation projects.
Waiver of Permit Fees. The City may waive or refund any and all building permit fees
due or paid for qualified new development, expansion or rehabilitation projects.
4. Waiver of Water and Sewer Tapping Fees. The City may 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.
5. One Stop Permitting. The City may allow all permit applications and supporting
materials to be tendered to the Director of Planning and Development Services for
distribution to the appropriate city departments.
B. In any area that is not located within the City of Baytown Enterprise Zone No. EZ268-
010899 -132 or does not qualify as an enterprise zone under Section 2303.101, the
following incentives are available:
1. Tax Abatement. The City may abate taxes on the increase in value of real property
improvements and eligible personal property. The level of abatement shall be based upon
the extent to which the business receiving the abatement creates jobs for qualified
employees, as such term is defined by the Act, and in accordance with the City of
Baytown Tax Abatement Policy. which is attached hereto as Exhibit "A" and
incorporated herein for all intents and purposes.
2. Industrial District Agreements. The City may offer an industrial district agreement to
qualified new development, expansion or rehabilitation projects.
C. In various parts within the corporate limits of the City of Bayto-vrn regardless of whether
the area is located within City of Baytown Enterprise Zone No. EZ268- 010899 -132 or any
other enterprise zone under Section 2303.10, the following incentives are available:
Tax Increment Financing,. The City may create a reinvestment zone for tax increment
financing purposes.
2. Low Interest Loans. The City through the Baytown Industrial Development Corporation
may provide low interest loans to encourage development of projects pursuant to the
Development Corporation Act of 1979. Furthermore, the City through the Baytown
Municipal Development District may provide a small business revolving loan program
based upon participation of conventional lenders.
3. Bonds. The City through the Baytown Industrial Development Corporation may sell
bonds to finance all or part of the cost of one or more projects pursuant to the provisions
of the Development Corporation Act of 1979.
Exhibit "A," Page 2
4. Infrastructure Improvement. The City and the Baytown Municipal Development District
may provide suitable infrastructure improvements necessary to promote or develop new
or expanded business enterprises.
5. Zoning Changes or Variances. The City may amend its zoning ordinance or zoning map
for economic development purposes consistent with its comprehensive plan.
6. Building Code Variances. The City may provide for variances to its building code in
accordance with the Code of Ordinances of the City of Baytown.
7. Streamlined Permitting. The City may provide an expedited review of required permits
as part of its development review process.
Community Crime Prevention Prop-rams. The City may provide Community Crime
Prevention Programs through its Police Department, which may include Crime Stoppers,
DARE, and other similar crime prevention programs.
9. Special Transit Provisions. The City through its Community Development Block Grant
Program may provide transit for elderly and disabled citizens, including transportation
within the corporate limits of the City as well as to the Houston Medical Center.
10. Capital hnprovements in Water and Sewer. The City and the Baytown Municipal
Development District may provide capital improvements in its water and wastewater
systems in order to promote or develop new or expanded business enterprises.
11. Road Repair. The City and the Baytown Municipal Development District may repair
roads in order to promote or develop new or expanded business enterprises.
12. Creation or Improvement of Parks. The City and the Baytown Municipal Development
District may create, make improvements to or otherwise expand parks.
13. Low- Interest Loans for Housing. The City through its Community Development Block
Grant Program may provide low - interest loans for housing to qualified applicants through
the First -Time Homebuyer Assistance Program.
14. Public Land for Development Purposes. They City may enter into long -term lease
agreements in order to make available public land for development purposes.
15. Promotion and Marketing Service. The City and the MDD may engage in promotion and
marketing services in an effort to attract new businesses to the area within the City's
jurisdiction and to encourage the expansion of existing businesses in such area.
16. Job Training. The Lee College District and Han-is County, in cooperation with the
Houston- Galveston Area Council, may provide programs to prepare youth and unskilled
adults for entry into the labor force and to offer job training to economically
disadvantaged persons.
17. Retraining Program. The Lee College District and Harris County may provide a
retraining program, which may include counseling, remedial education, skills training,
Exhibit "A,' Page 3
labor market orientation, job search assistance, job placement, on-the-job-training
referrals, and career development.
18. Literacy Program. The City through its Community Development Block Grant Program
provides a literacy program, which provides one -to -one tutoring to adults in the Baytown
community seeking to improve their basic reading and English skills.
19. Vocation Education. The Lee College District may provide vocational education for the
Baytown community.
20. Other Economic Development. The Baytown Municipal Development District may
provide other economic development incentives so long as they are found to be a project
as defined in Chapter 377 of the Texas Local Government Code.
D. For NRG, as a nominated project, the incentives listed above in Section 3.A and 3.C, to
the extent any portion of NRG is located within the corporate limits of the City, are or
will be made available at the election of the City of Baytown.
However, either a tax abatement agreement or an industrial district agreement may be granted,
but not both.
Exhibit 'A" Page 4