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Home My WebLink AboutPO 7307: AMENDING THE CITY'S PREVIOUS ORDINANCE ORDAINING THE CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM RtIX} --14 ( ft\ Itl Cr. J nr1 rtlrun www.PortArthurTx.gov DEPARTMENT OF DEVELOPMENT SERVICES DIVISION OF PLANNING AND ZONING INTEROFFICE MEMORANDUM Date: August 20, 2024 To: The Honorable Mayor and City Council Through: Ronald "Ron" Burton, City Manager, CPM From: Pamela D. Langford, Assistan C Manager— Operations/Director of Development Services sCrSaiii RE: P.O. NO 7307 — A proposed ordinance amending the city's previous ordinance ordaining the City's participation in the Texas Enterprise Zone Program. Introduction: The Port Arthur City Council is being asked to approve Proposed Ordinance No. 7307, amending Ordinance No. 13-54, ordaining the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code ("ACT"). The ordinance includes the updated language required by the state that affects all future nominations to the program. 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. 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 "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 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 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 Port Arthur City Council Approved Ordinance No. 13-54, on November 26, 2013, ordaining its participation in the program. However, the requested amendment adds the required clause, which states the following: "...City finds that it is in full compliance with Chapter 2303, Texas Government Code prior to nomination of an eligible business," as well as providing revisions to the list of local incentives. Adopting 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: The City Council is recommended to approve P.O. NO. 7307, amending Ordinance No. 13-54, ordaining the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code ("ACT"). The ordinance includes the updated language required by the state that affects all future nominations to the program. "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.O. NO. 7307 01/30/2025 PDL PAGE 1 OF 6 ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 13-54 AS IT PERTAINS TO THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS, ORDAINING 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. WHEREAS, the City Council of the City of Port Arthur, Texas ("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 area; and, WHEREAS, the City finds that it is in full compliance with Chapter 2303, Texas Government Code prior to nomination of an eligible business; and, WHEREAS, a public hearing to consider the amendments to this ordinance was held by the City Council on February 11, 2025, at 6:00 p.m.; and, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS, THAT: Section 1: That Ordinance No. 13-54 is herein amended, revising, and replacing the previous list of local incentives. Section 2: The following local incentives identified and summarized briefly in attached Exhibit "A", at the election of the governing body, are or will be made available to the nominated project or activity of the qualified business. P.O. NO. 7307 01/30/2025 PDL PAGE 2 OF 6 Section 3: The enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code, Chapter 312. Section 4: The City of Port Arthur City Council directs and designates its Director of Development Services as the City's liaison to communicate and negotiate with the EDT 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. Section 5: There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities in the area. Section 6: This ordinance shall take effect from and after its passage as the law and charter in such case provides. READ, ADOPTED, AND APPROVED this day of February, A.D. 2025 at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following votes: AYES: MAYOR: COUNCILMEMBERS: NOES: Thurman Bill Bartie, Mayor ATTEST: Sherri Bellard, TRMC, City Secretary P.O. NO. 7307 01/30/2025 PDL PAGE 3 OF 6 APPROVED AS TO FORM: Roxann Pais Cotroneo, City Attorney APPROVED FORAN tor ri N: e.#-, o Id "Ron" Burton, ' 4 Cit Manager aim t. L. OIP Pamela D. Langford, P " Assistant City Manager— Operations/Director of Development Services P.O. NO. 7307 01/30/2025 PDL PAGE 4 OF 6 EXHIBIT "A" Incentives offered by the City of Port Arthur, Texas Name of Incentive Description of Incentive Availability The City may abate taxes on the increase in value of real property improvements and 1 Tax abatement tangible personal property up to 100% of the City-wide estimated total tax increase to be levied on the proposed property improvements for a term not to exceed ten (10) years. 2 Tax increment financing Financing through the creation of tax City-wide increment reinvestment zones. Low-interest loans for The city may offer low-interest loans to 3 Business develop or revitalize the city. City-wide 4 Fee waivers The city may waive or refund any and all City-wide applicable fees due or paid. 5 Infrastructure improvements The County may provide infrastructure City-wide improvements for industries. 6 Zoning changes or variances Allows changes in the zoning and variances. City-wide The city may allow permit applications and 7 Streamlined Permitting supporting materials to be tendered to one City-wide department for distribution to the appropriate county departments. 8 Increased fire and police Safety and protection of city residents. City-wide protection The Port Arthur Police Department (PAPD) Community crime prevention practices Community Policing with its 14 9 Neighborhood Action Groups. Additionally, City-wide programs PAPD supports the Crime Stoppers program. 10 Capital improvements in water The city can provide resources for capital City-wide and sewer facilities improvements. The city is responsible for maintaining and 11 Road repair repairing all public streets and alleys within City-wide the city limits. Creation or improvement of Maintain healthy lifestyle for city residents. 12 parks Parks are located in the city limits and are City-wide responsibility of city government. Low-interest loans for housing Encourage homeownership for city 13 rehabilitation or new City-wide construction residents. 14 Public land for development Strategic sustenance and growth for the City-wide purposes county. P.O. NO. 7307 01/30/2025 PDL PAGE 5 OF 6 Promotion and marketing Port Arthur County Chamber of Commerce 15 services and Port Arthur Economic Development City-wide Corporation. 16 Job training and employment Offered in conjunction with Lamar State City-wide services College. 17 Retraining Program Offered in conjunction with Lamar State City-wide College. 18 Literacy and Employment Offered in conjunction with Lamar State City-wide Skills Programs College and public-school districts. 19 Vocational Education Offered in conjunction with Lamar State City-wide College and public-school districts. Offered by Port Arthur Economic 20 Cash grants Development Corporation (4A Economic City-wide Development Sales Tax) The City may refund the amount of tax paid under the Municipal Sales and Use Tax (Texas Tax Code, Chapter 321) by the Municipal sales and use tax business and remit to the Comptroller of 21 refund Public Accounts up to the maximum extent City-wide authorized by Sections 2303.505 and 2303.506 of the Act, and for a period determined by the City, but which shall not exceed five (5) years. The City may provide loans or grants to 22 Chapter 380 Agreements promote economic development in City-wide accordance with Chapter 380 of the Local Government Code. The city may enter into Industrial District 23 Other Tax Deferrals, Tax Agreements or Payment instead of Tax City-wide Refunds or Tax Incentives (PILOT) Agreements with businesses to promote economic development. 24 Special Public Transportation The city may provide special transportation City-wide Routes or Reduced Fares routes or fares to city residents. Transfer Abandoned Housing The city may transfer abandoned housing to 25 to Individuals or Community individuals or community groups. City-wide Groups One-Stop Permitting, Problem 26 Resolution Center or Resource center for city residents. City-wide Ombudsmen 27 Customized Job Training Offered in conjunction with Lamar State City-wide College and public-school districts. A business incentive exempts some of a 28 Freeport Exemption company's inventory from property taxes. To City-wide be eligible, property must be assembled, stored, manufactured, or fabricated locally P.O. NO. 7307 01/30/2025 PDL PAGE 6 OF 6 and exported out of the state within 175 days of being acquired or imported. Provides an exemption from unnecessary 29 Building Code Exemption building code requirements, impact fees, or City-wide inspection fees. Surplus of the school Use of surplus school buildings or other 30 building(s) underutilized publicly owned facilities as City-wide small business incubators