Loading...
HomeMy WebLinkAbout025099 RES - 11/12/2002RESOLUTION ENDORSING THE STATE OF TEXAS RENEWAL COMMERCIAL REVITALIZATION DEDUCTION PROGRAM AND STATE PLAN COMMUNITY ALLOCATION NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council, as the governing body of the City of Corpus Christi, endorses the State of Texas Renewal Community Commercial Revitalization Deduction Allocation Program and State Plan, which is attached to this resolution and marked as Attachment 1. SECTION 2. The City Manager is directed to forward a copy of this resolution to the Executive Director, Texas Department of Economic Development. ATTEST: Armando Chapa City Secretary THE CITY OF CORPUS CHRISTI Samuel L. N~, Jr. Mayor APPROVED: 7th day of November, 2002. James R. Bray Jr. City Attorney R. J~ RCning ~ Firut Asesistant City Attorney R22113A1.doc 2 Corpus Christi, Texas ,2002 The above resolution was passed by/t~e following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison John Longoria Jesse Noyola Mark Scott R22113A1.doc -',:5099 STATE OF TEXAS RENEWAL COMMUNITY COMMERCIAL REVITALIZATION DEDUCTION ALLOCATION PROGRAM General Statement: The 2000 Community Renewal Tax Relief Act (Act} established the Renewal Community Initiative to encourage public-private collaboration to generate economic development in distressed communities. In early 2002, U.S. Department of Housing and Urban Development named forty areas nationwide as Renewal Communities, eligible for a number of federal tax incentives. Two of these areas were in Texas - an area in the City of Corpus Christi and an area in E1 Paso County. In addition to the Federal tax incentives, a number of state and local incentives will be available through the governing entity and the state of Texas. The Act requires each local government designated as a Renewal Community to prepare a tax incentives utilization plan (TIUP) with participation from the community. The TIUP includes how the local, state and federal incentives will be marketed to businesses to increase economic development in the designated area and other commitments made to the Renewal Community. One of the principal federal tax incentives is the commercial revitalization deduction. Under the Act, $12 million is allocated to the state for distribution to each of the renewal communities located in its jurisdiction. The State is required to designate a commercial revitalization agency to carry out plans for allocation and the qualified allocation plan. The State of Texas has designated the Texas Department of Economic Development {TxED} as the state agency to carry out the qualified allocation plan. In order to preserve the local prerogatives contained within the local tax incentive utilization plan, to minimize the cost to the State and to promote the greatest efficiency, the following system is proposed for the State allocation plan. WrATE PLAN 1. Each Renewal Community will file with the Texas Department of Economic Development (qXED) a copy of its U.S. Department of Housing and Urban Page 1 Development approved TIUP and the name, address, and telephone number of the local community's Renewal Community Coordinating Responsible Authority (CORA). By the first working day of November of each year, each Renewal Community's CoRA will submit to the Executive Director of TxED a plan for awarding their $12 million in commercial revitalization deductions. The plan, which will be approved by the Governing body of the Renewal Community, will address the following criteria: a. The application process including public notice, public comment, and submission of applications approved by the Governing Body to the Texas Department of Economic Development. b. Criteria that the governing body of the Renewal Community will utilize to determine eligibility of an application includes: 11 Is the project, in the opinion of the local government, beneficial to the community? (May consider input from public hearixa~, stated COmmUl~ty goals, or other local authority.) 2] Confirmation from the Texas Comptroller of Public Accounts that the applicant is in good standing. 3] Confirmation from the Texas Workforce Commission that the applicant is current on unemployment insurance tax. The local government must determine alTnnnation to the first three criteria pr/or to forwarding the application to the CRA for consideration. The local governing body will forward only eligible applications to the CRA, Upon determining project eligibility at a local level the checklist (Attachment A) shall be completed and a minimum of 10 criteria must be met to obtain state allocation approval. d. Procedure that the governing body of the Renewal Community, acting as the Texas Department of Economic Development's agent, wilt follow in monitoring. eo The application form agreed to and signed by both the applicant and chief executive officer (or equivalent) of the jurisdiction in which the Renewal Community is designated. 3. Following each Renewal Community's governing body's action to nominate projects eligible to receive allocations, each Renewal Community CoRA will submit to TxED: P~e2 a. A certification, executed by the Chief Executive Officer of the governing body, that it has complied with its locally determined allocation plan and to the best of its knowledge the application(s) is complete and meets the requirements of the commercial revitalization deduction (CRD) program, b. Report of the qualified applications received which includes a common selection criterion used for each applicant and a description of the reason for approval or denial for each applicant, c. Copy of each application selected by the governing body to receive CRD allocations, d. Copy of the public notice for the application process, and e. Copy of approved minutes of the governing body's meeting where the CRD applications were discussed and selected. 4. TxED will notify the chief executive officer (or it's equivalent) of the local jurisdiction within which the building is located of such allocation and provides such individual a reasonable opportunity to comment on the allocation. [26 USC §14001 (e) (2) (B)] 5. Under the Federal statute, $12 million of authority is allocated to the State each year for each of the communities. This allocation will remain inviolate for each of the communities from January 1 of each year until October 1 of that year. On October 1, the Texas Department of Economic Development will determine what allocations remain and will pool all remaining allocations. These pooled allocations will be awarded among the Renewal Communities on a first come first served basis. Applications received on or after October 1 of each year must be delivered by certified mail, overnight delivery or hand delivered and must be date/time stamped at the agency. As in all instances the governing body of the Renewal Community must recommend applications for surplus allocations following the application process. (For the calendar year 2002, the date of combination of the allocations shall be November 15, 2002.) 6. The RC CoRA will submit an annual report to qXED describing the status of each active project in their jurisdiction receiving CRD allocations. The annual reports will be due March 1 of each calendar year beginning in 2003 and ending in 2010 and Page 3 reporting on activity ending December 31 of the previous year. The report will include: a. Status of all projects currently in process in addition to those already in service. Including success stories (press releases, news coverage, etc.) b. Impact analysis of the CRD on the NC. c. Number of direct and indirect jobs both new and retained and approximate average salary. d. Estimated administrative costs for the Renewal Community e. Copy of the Renewal Community's annual report to the U.S. Department of Housing and Urban Development P~e4