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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. |
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INITIATED
BY: |
STAFF
SOURCE: Phyllis Colón,
Tax-Assessor Collector |
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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. |
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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. |
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FINANCIAL: Less tax revenue if City
Council approves future tax abatement agreements. |
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RECOMMENDATION: |
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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