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Home My WebLink AboutPR 23873: CALLING FOR A PUBLIC HEARING, TO CONSIDER THE CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM AND NOMINATING MOTIVA ENTERPRISES, LLC , City o/ _ ort mbar Ti'crs www.Po rtArt h u rTx.gov DEPARTMENT OF DEVELOPMENT SERVICES DIVISION OF PLANNING AND ZONING INTEROFFICE MEMORANDUM Date: August 5, 2024 To: The Honorable Mayor and City Council Through: Ronald "Ron" Burton, City Manager, CPM From: Pamela D. Langford, Assistant City Manager— Operations/Director of Development Services RE: P.R. NO 23873 —A resolution calling for a public hearing to consider the City's participation in the Texas Enterprise Zone Program and nominating Motiva Enterprises, LLC, as a qualified business and enterprise project. Introduction: The Port Arthur City Council is being asked to approve Proposed Resolution No. 23873, calling for a public hearing to consider adopting a new Texas Enterprise Zone Ordinance pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code ("ACT"). The ordinance will include the updated language as required by the state and will nominate Motiva Enterprises, LLC as an Enterprise Zone Project. Furthermore, the ordinance will designate Motiva Enterprises, LLC as the City's Liaison to communicate and negotiate with the Economic Development and Tourism (EDT) office through the Bank and enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. Background: In accordance with Chapter 2303 of the Texas Government Code, all nominating jurisdictions, including cities and counties, must update their Enterprise Zone Ordinances to align with the new state requirements. This update coincides with the state of Texas' regulations and must be completed before the nomination of any eligible business. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 The Texas Enterprise Zone Program (EZP) is a state sale and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state. For a business to receive state tax incentives under the Texas Enterprise Zone Program, the local community must nominate it for enterprise project designation. Each local community has a limited number of projects allocated, and the state has a maximum of 105 that can be awarded per biennium. Applications are accepted quarterly, with the deadlines on the first working day of March, June, September, and December. Applications received after 5:00 p.m. for each quarterly application deadline date will not be considered for that current round. The municipality or county must nominate a qualified business as an enterprise project by an ordinance or order as applicable. The ordinance or order must establish the local incentives being offered to the business seeking enterprise project designation. Local incentives may be established for all zone areas separately or individually, as well as areas of the jurisdiction outside of a zone area. The ordinance or order must state by position who will act as a liaison for the local program with the state and nominate the qualified business for enterprise project status. Subsequent project nominations may be done by resolution if the local incentives offered are the same as outlined in the original ordinance or order. The adoption of the new Texas Enterprise Zone Ordinance is a critical step in ensuring that the City of Port Arthur remains compliant with state regulations and continues to foster economic development within our community. Your prompt attention to this matter is crucial for timely execution and compliance with state requirements. Budget Impact: None Recommendation: It is recommended that the City Council approve P.R. No. 23873, calling for a public hearing to consider adopting a new Texas Enterprise Zone Ordinance pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code ("ACT"). A public hearing shall be held on Tuesday, August 27, 2024, at 6:00 p.m. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P.R. NO. 23873 08/02/2024 PAGE 1 OF 3 RESOLUTION NO. A RESOLUTION CALLING A PUBLIC HEARING TO CONSIDER THE CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE ("ACT"), PROVIDING TAX INCENTIVES, DESIGNATING A LIAISON FOR COMMUNICATION WITH INTERESTED PARTIES, AND NOMINATING MOTIVA ENTERPRISES, LLC TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT AND TOURISM (OOGEDT) THROUGH THE ECONOMIC DEVELOPMENT BANK FOR DESIGNATION AS A QUALIFIED BUSINESS AND ENTERPRISE PROJECT UNDER THE TEXAS ENTERPRISE ZONE PROGRAM UNDER THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE. WHEREAS, the City of Port Arthur (the "City") previously passed Ordinance No. 13-54 on November 26, 2013, electing to participate in the Texas Enterprise Zone Program, and the local incentives offered under this resolution are the same on this date as were outlined in Ordinance No. 13-54; and, WHEREAS, on June 12, 2023, Governor Abbott approved legislation, H.B. 1515, which amends the Texas Enterprise Zone Program requirements by expanding the definition of qualified employee, and modifying the initial application process, allowing a certified copy of the ordinance and meeting minutes of all public hearings conducted with respect to the program to be submitted as a digital scan of a certified copy; and, WHEREAS, in accordance with Chapter 2303 of the Texas Government Code, all nominating jurisdictions, including cities and counties, must update their Enterprise Zone Ordinances to align with the new state requirements; and, WHEREAS, the municipality or county must nominate a qualified business as an enterprise project by an ordinance or order as applicable. The ordinance or order must establish the local incentives being offered to the business seeking enterprise project P.R. NO. 23873 08/02/2024 PAGE 2 OF 3 designation. Local incentives may be established for all zone areas separately or individually, as well as areas of the jurisdiction outside of a zone area. The ordinance or order must state by position who will act as a liaison for the local program with the state and nominate the qualified business for enterprise project status. WHEREAS, the City desires to pursue the creation of the proper economic and social environment 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 other economically disadvantaged individuals; and, WHEREAS, pursuant to Chapter 2303 of the Texas Government Code, a public hearing must precede a nomination for a qualified business as an enterprise project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT the facts and opinions in the preamble are true and correct. THAT a public hearing to consider the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, and providing a nomination for Motiva Enterprises, LLC to the Office of the Governor Economic Development and Tourism for designation as a qualified business and Enterprise Project shall be held on August 27, 2024, at 6:00 p.m. in the City Council Chambers, Fifth Floor, City Hall, 444 4th Street, Port Arthur, Texas, or by telephonic and videoconferencing. THAT notice of the public hearing shall be published at least seven [7] days prior in the City's official newspaper before going to the City Council. THAT a copy of the caption of this Resolution is spread upon the Minutes of the City Council. P.R. NO. 23873 08/02/2024 PAGE 3 OF 3 READ, ADOPTED, AND APPROVED this day of August, A.D.2024, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: MAYOR COUNCILMEMBERS: NOES: Thurman Bill Bartie, Mayor ATTEST: Sherri Bellard, TRMC, City Secretary APPROVED AS TO FORM: 0,... tz_L, Ja es lack, Esq., Interim ity Attorney APPROVED ADMINISTRATION: R "Ron" B City n e Pamela D. Langford, Assist t City Manager-Operations/ Director of Development Services