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HomeMy WebLinkAboutPR 21073: APPROVING THE CONTINUED USE OF EDC SALES AND USE TAX WITHIN THE CITY P. R. No. 21073 09/18/19 gt RESOLUTION NO. A RESOLUTION APPROVING THE CONTINUED USE OF SECTION 4A SALES AND USE TAX WITHIN THE CITY OF PORT ARTHUR FOR THE COST OF LAND, BUILDINGS, EQUIPMENT, FACILITIES, AND IMPROVEMENTS FOUND BY THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION BOARD OF DIRECTORS TO BE REQUIRED OR SUITABLE FOR THE PROMOTION OF DEVELOPMENT AND EXPANSION OF AFFORDABLE HOUSING, AS DESCRIBED BY 42 U.S.C. 12745, WITH A PROJECT AREA BOUNDED BY ATLANTA STREET ON THE WEST, 8T" STREET ON THE NORTH, NASHVILLE STREET ON THE EAST AND 5TH STREET ON THE SOUTH WITHIN THE CITY OF PORT ARTHUR, TEXAS, WHICH IS A CATEGORY OF PROJECTS UNDER SECTION 505.153 OF THE LOCAL GOVERNMENT CODE (TYPE B ECONOMIC DEVELOPMENT CORPORATION), WITH THE CONDITION IT WILL BE LIMITED TO SINGLE FAMILY DWELLINGS AND THE TOTAL ANNUAL SPENDING BY THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION WILL NOT EXCEED $300,000. WHEREAS, at the May 7, 2016 Election, the voters approved Proposition No, 2 on the ballot which stated that for the next three (3) years, commencing on October 1, 2016 and extending until September 30, 2019, shall the existing Section 4A (Type A Economic Development Corporation) Sales and Use Tax within the City of Port Arthur shall be utilized for the cost of land, buildings, equipment, facilities, and improvements found by the City of Port Arthur Section 4A Economic Development Corporation Board of Directors to be required or suitable for the promotion of development and expansion of affordable housing, as described by 42 U.S.C. 12745, with a project area bounded by Atlanta Street on the west, 8th Street on the north, Nashville Street on the east and 5th Street on the south within the City of Port Arthur, Texas, which is a category of projects under Section 505.153 of the Local Government Code (Type B Economic Development Corporation), with the condition it s.pr21073 will be limited to single family dwellings and the total annual spending by the City of Port Arthur Section 4A Economic Development Corporation will not exceed $300,000; and WHEREAS, said Proposition also stated that said period of time can be extended an additional three (3) years by the City Council by a two-thirds (2/3) vote of the City Council after reviewing public comment on the proposed cost and impact of the project; and WHEREAS, at the City of Port Arthur Section 4A Economic Development Board's (PAEDC) Special Board Meeting held September 9, 2019, the PAEDC Board of Directors recommended that City Council extend Proposition 2 for an additional three (3) years (see attached memorandum from Floyd Batiste, CEO of the PAEDC attached as Exhibit"A''); and WHEREAS, pursuant to the PAEDC Board of Directors recommendation, the City Council held a public hearing on September 24, 2019, as to the continued use of the existing Section 4A (Type A Economic Development Corporation) Sales and Use Tax within the City of Port Arthur shall be utilized for the cost of land, buildings, equipment, facilities, and improvements found by the City of Port Arthur Section 4A Economic Development Corporation Board of Directors to be required or suitable for the promotion of development and expansion of affordable housing, as described by 42 U.S.C. 12745, with a project area bounded by Atlanta Street on the west, 8th Street on the north, Nashville Street on the east and 5th Street on the south within the City of Port Arthur, Texas, which is a category of projects under Section 505.153 of the Local Government Code (Type B Economic Development Corporation), with the condition it will be limited to single family dwellings and the total annual spending by the City of Port Arthur Section 4A Economic Development Corporation will not exceed $300,000 through September 30, 2022. s.pr21073 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council, by a 2/3 vote, has approved the extension of three (3) years (until September 3, 2022) for the use of existing Section 4A (Type A Economic Development Corporation) Sales and Use Tax within the City of Port Arthur shall be utilized for the cost of land, buildings, equipment, facilities, and improvements found by the City of Port Arthur Section 4A Economic Development Corporation Board of Directors to be required or suitable for the promotion of development and expansion of affordable housing, as described by 42 U.S.C. 12745, with a project area bounded by Atlanta Street on the west, 8th Street on the north, Nashville Street on the east and 5th Street on the south within the City of Port Arthur, Texas, which is a category of projects under Section 505.153 of the Local Government Code (Type B Economic Development Corporation), with the condition it will be limited to single family dwellings and the total annual spending by the City of Port Arthur Section 4A Economic Development Corporation will not exceed $300,000. Section 3. That a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ,ADOPTED AND APPROVED on this day of September, A.D., 2019, at a Meeting of the City Council of the City of Port Arthur, by the following vote: AYES: s.pr21073 Mayor: Councilmembers: NOES: Thurman "Bill" Bartle, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: Af e‘oi-iorf a gf" i..•no, City Attorney APPROVED FOR ADMINISTRATION: Ron Burton, Interim City Manager s.pr21073 EXHIBIT "A" s.pr21073 PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION MEMORANDUM TO: SHERRI BELLARD, CITY SECRETARY FROM: FLOYD BATISTE, CEO SUBJECT: EXTEND AFFORDABLE HOUSING PROGRAM/PROPOSITION NO. 2 DATE: SEPTEMBER 12, 2019 CC: RON BURTON, INTERIM CITY MANAGER At their Special Board Meeting held September 9, 2019,the PAEDC Board of Directors discussed the Council's option to renew the Affordable Housing Program for an additional three (3)years. It is the PAEDC Board of Directors recommendation that Council extend Proposition No. 2 for an additional three (3)years. FB:jmc 501 Procter Street,Ste. 100•Port Arthur,TX 77640 Tel: 409-963-0579•Fax: 409-962-4445