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HomeMy WebLinkAboutPR 14695: MEDICAL CENTER OF SETX - ENTERPRISE PROJECTt! INTEROFFICE MEMORANDUM ro: STEVE FITZGIBBONS, CITY Mr1NAGER exont: .DALE L. WATSON, DIRECTOR OF PLANNING ~ (~ svslECr: P.R. NO. 14695 - MEDICAI. CENTER OF SOUTHEAST TEXAS DATE: 04/15/08 RECOMMENDATION: I recommend that Proposed Resolution No. 14695 be approved. This Resolution would nominate the Medical Center of Southeast as an enterprise project. BACKGROUND: The Medical Center of Soutleast Texas currently has over 700 employees. Over the next 5 yeazs IASIS anticipates spending over $5 million for projects such as an expansion of the surgery department, improvements to the ambulatory surgery center, digital mammography equipment, and other new equipment. If designated by the~State, The Medical Center would qualify for rebate of state sales and use taxes on qualifying . BUDGETARY/FISCAL EFFECT: None STAFFING/EMPLOYEE EFFECT: None SUMMARY: I recommend that Proposed Resolution No. 14695 be approved. 1 04/15/08 dlw~ RESOLUTION NO. P.R 14695 P.R 14695 04/15/08 dhv NOMINATING THE MEDICAL CENTER OF SOUTHEAST TEXAS, L.P. TO THE OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM ("OOGEDT") THROUGH THE ECONOMIC DEVELOPMENT BANK ("BANK"). FOR DESIGNATION AS A QUALIFIED BUSINESS AND ENTERPRISE PROJECT ("PROJECT^) UNDER THE TEXAS ENTERPRISE ZONE PROGRAM UNDER THE TEXAS ENTERPRISE ZONE -ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE ("ACT"). WHEREAS, the City of Port Arthur ("City") on November 18, 2005, passed Ordinance No. OS-86 electing to participate in the Texas Enterprise Zone Program, and the local incentives offered under this resolution are substantially the same on this date as were outlined in Ordinance No. 05-86; WHEREAS, the Office of the Governor, Economic Development and Tourism ("OOGEDT"), through the Economic Development Bank ("Bank"), will consider the project proposed by THE MEDICAL CENTER OF SOUTHEAST TEXAS, L.P. ("The Medical Center") as an enterprise project pursuant to a nomination and an application made by the City; and, - WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals; and, WHEREAS, pursuant to Chapter 2303, Subchapter F ~of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), The Medical Center has applied to the City for designation as an enterprise project; and, WHEREAS, the City finds that The Medical Center meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: 1. The Medical Center 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 goventing body's jurisdiction located outside of an enterprise zone and at least thirty-five percent (35.0%) of the business' new employees will be residents of an enterprise zone or economically disadvantaged individuals; and P.R 14695 04/15/08 dlw 2. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the azea; and 3. The designation of The Medical Center as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. WHEREAS, the City finds that The Medical Center meets the criteria for tax relief and other incentives adopted by the City and nominates The Medical Center as an enterprise project on the grounds that it will be located at the qualified business site and will create a higher level of employment, economic activity and stability; and WHEREAS, the City finds that it is in the best interesYOf the City to nominate The Medical Center as an enterprise project pursuant to the Act; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: THAT the findings of the City and its actions approving this resolution taken at the council meeting aze hereby approved and adopted. THAT the Medical Center is a "qualified business", as defined in Section 2303.402 of the Act, and meets the criteria for designation as an enterprise project, as set forth in Section 2303, Subchapter F of the Act. THAT the enterprise project shall take effect on the date of designation of the enterprise project by the agency and terminate Five years from that date. READ, ADOPTED AND APPROVED this day of April, A.D. 2008 at a Regulaz Meeting of the City Council of the City of Port Arthur, Texas by the following votes: AYES: MA COUNCILMEMBERS NOES: 04!15/08 dlw ATTEST: CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER ~r~- ~ ~1~ DIRECTOR OF PLANNING MAYOR P.R 14695