PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Presentation and discussion of modifications to the City’s Chapter 380 Economic Development Program Policy
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
City Council approved the Chapter 380 Economic Development Program Policies and Procedures in July 2015. The Program, in accordance with Chapter 380 of the Texas Local Government Code, allows cities to establish programs for loans or grants of public money and/or personnel and services of city to promote state or local economic development and to stimulate business and commercial activity in the city. The changes are proposed to simplify the policy, expand the number and types of businesses and organizations eligible to receive public funds under Chapter 380 and to permit the City to enter an agreement with two entities- the Faust Hotel and Early Matters New Braunfels.
ISSUE:
The proposed revisions:
• More closely align the policy with statutory language;
• Lowers eligibility thresholds for increased taxable value and sales tax generation;
• Adds language to permit the city to financially support historic preservation projects that may not meet minimum taxable value standards or to non-profit organizations that do not pay property or sales tax or other direct revenues to the City;
• Adds a payback period requirement of up to twenty (20) years for a project if it generates taxable values;
• Removes superfluous language around underwriting and evaluation rationale; and
• Removes the requirement that projects are ineligible for the program if a building permit has been issued for the project.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
There is no fiscal impact to modify the City’s Chapter 380 Economic Development Program Policy - the Policy acts as a guide for future Chapter 380 Agreements.
Recommendation
RECOMMENDATION:
Staff recommends approval of the revised Chapter 380 Economic Development Program Policy.