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Home My WebLink About025513 ORD - 10/14/2003Page 1 of 5 AN ORDINANCE AUTHORIZING THE CITY OF CORPUS CHRISTI TO PARTICIPATE IN THE TEXAS ENTERPRISE ZONE PROGRAM UNDER THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE (ACT); PROVIDING TAX INCENTIVES; REQUESTING THAT CORPUS CHRISTI 2000 ENTERPRISE ZONE REMAIN IN EFFECT; NOMINATING CITGO REFINING AND CHEMICALS COMPANY, L. P. TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT & TOURISM (EDT) THROUGH THE ECONOMIC DEVELOPMENT BANK (BANK) FOR DESIGNATION AS A QUALIFIED BUSINESS AND TRIPLE JUMBO ENTERPRISE PROJECT (PROJECT) UNDER THE ACT; DESIGNATING A LIAISON FOR OVERSEEING ENTERPRISE PROJECTS AND COMMUNICATING WITH INTERESTED PARTIES; AND DECLARING AN EMERGENCY. WHEREAS, the City of Corpus Christi, Texas ("Corpus Christi") 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 those areas; WHEREAS, the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code, as amended, (the "Act") authorizes the designation of enterprise projects within an enterprise zone (or, if the requirements of Section 2303.402 (a) (2) of the Act are met, within an area that does not qualify as an enterprise zone); Whereas, under the 2003 amendments to the Act, the Act is now administered by The Office Of The Governor Economic Development & Tourism (EDT) through the Texas Economic Development Bank (Bank); Whereas, the City has a previously-designated enterprise zone, Corpus Christi 2000 Enterprise Zone, approved by EDT's predecessor agency, the Texas Department of Economic Development, on January 9, 1998, and scheduled under the Act (before the 2003 amendments) to expire on September 1, 2005; and the City requests that this Enterprise Zone remain in effect indefinitely, as authorized by Section 2303.109 of the amended Act, so long as the area qualifies under the amended Act; WHEREAS, with proper notice to the public, a public hearing to consider this ordinance was held on Tuesday, October 14, 2003, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which alt interested persons were allowed to appear and be heard; and 4:\LEG~D~R\D~y~eD.Cudis\MYD~C~2~3\Ec~n~mic.Deve~pm\Enterpri.seZ~ne\1~8~3DC.N~minati.ngC~TG~.Project.Orddoc Page 2 of 5 WHEREAS, the City Council has determined that passage of this ordinance would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City is authorized to participate in the Texas Enterprise Zone Program under the 2003 amendments to the Act. As required by Section 2303.4051 (b) of the Act, the City's local incentives available in each area within an enterprise zone and in each area not in an enterprise zone are identified and summarized briefly in the attached Exhibit A; and at least one of the local incentives is unique to the enterprise zone area. The City is in full compliance with the Act. SECTION 2. The City finds that the City has a previously-designated enterprise zone, Corpus Christi 2000 Enterprise Zone ("Enterprise Zone"), approved by EDT's predecessor agency, on January 9, 1998, and scheduled under the Act (before the 2003 amendments) to expire on September 1, 2005; and the City requests that this Enterprise Zone remain in effect indefinitely, as authorized by Section 2303.109 of the amended Act, so long as the area qualifies under the amended Act. SECTION 3. The City finds that CITGO REFINING AND CHEMICALS COMPANY, L.P (CITGO), or its successor in interest, meets the criteria for designation as an enterprise project under the Act on the following grounds: (a) CITGO is located in the Enterprise Zone and CITGO is a "qualified business" under Section 2303.402 of the Act because CITGO is engaged in the active conduct of a trade or business in the Enterprise Zone and at least twenty-five (25%) percent of its new employees in the Enterprise Zone are residents of an enterprise zone in this state or economically disadvantaged individuals; (b) According to the 2000 Census, the CITGO business facility is located in Census Tract 6, Block Group 1 (88% poverty) and Census Tract 50, Block Group 1 (37% poverty). These two Block Groups exceed the 20% poverty level described in Section 2303.101 of the Act. Therefore, these two block Groups automatically qualify for designation as an enterprise zone; (c) The CITGO project is qualified under Section 2303.404 of the Act because (1) it involves "an expansion, renovation, or new construction"; (2) it will be completed within a predetermined period not to exceed five years; and (3) the CITGO subsidiary maintains separate books and records for the Corpus Christi refinery operations; (d) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the jurisdiction of the City of Corpus Christi; 4 :\L E G-DIR\D oyl e D. C u dis\MY D O C S~003\E co n omic D evel o p m\E n terp ri. s eZon e\100803 DC. N o m in a ti. n gC I TG O. Project. O rd. doc Page 3 of 5 (e) The designation of CITGO as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area in which the enterprise project will be located; and (f) CITGO qualifies for job retention benefits under Section 2303.406 (a) (4) (G) because CITGO is both adding a new business line or product and deleting or decreasing an existing business line or product; and the designation will prevent CITGO's net production capacity from decreasing and will result in the retention of at least 500 existing jobs. SECTION 4. The City finds that CITGO qualifies as a Triple Jumbo Enterprise Project as defined in Section 2303.407 (b) (6) and Section 2303.407 (d) of the Act because CITGO will be making a capital investment in a project in excess of $250,000,000. The City finds that it is in the best interest of the City to nominate CITGO as a Triple Jumbo Enterprise Project under the Act. SECTION 5. The City finds that CITGO meets the criteria for tax relief and other incentives adopted by the City and hereby nominates CITGO as a Triple Jumbo Enterprise Project in accordance with the Act on the grounds that it will be located wholly within the Enterprise Zone, and will create a higher level of employment, economic activity and stability. As required by Section 2303.4051 (c) (2) of the Act, the City's local incentives, including tax incentives, that, at the election of the City Council, are or will be made available to CITGO, the nominated project, are identified and summarized briefly in the attached Exhibit B. SECTION 6. The City designates the City Manager or his designee as liaison to oversee enterprise projects nominated by the City and to perform the other duties described in Section 2303.204 of the Act. The City authorizes the City Manager or his designee to file an application requesting designation of CITGO as a Triple Jumbo Enterprise Project with the Texas Economic Development Bank (Bank), and to execute all documents and agreements necessary to process the application. Further, the City directs the City Manager or his designee to submit to the Bank the information required by section 2303.4052 of the Act and to execute all documents and agreements necessary for the City to participate in the Texas Enterprise Zone Program under the 2003 amendments to the Act. SECTION 7'. Upon approval of the Bank, the Triple Jumbo Enterprise Project will be named CITGO-CORPUS CHRISTI Project. SECTION 8. The Enterprise Project designation must be for a predetermined designation period approved by the Bank, with a beginning date and ending date for the Project; and the designation period for the Project may not exceed five (5) years from date on which the designation is made, as required by Section 2303.404 of the Act. CITGO and the City request that the Bank approve January 1, 2004, as the beginning date and December 31, 2008, as the ending date of the Project. t%EG*DIR\DoyleD Curtis\MYDOCS~2003\Economic Developm\Enterpri.seZone\100803DC.Nominati.ngClTGO.Project. Ord.doc Page 4 of 5 SECTION 9. The enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code, Chapter 312. SECTION 10. The Corpus Christi areas that meet the 2003 requirements in Section 2303.101 of the Act for automatic qualification for designation as an enterprise zone are shown in the attached Exhibit C. SECTION 11. Upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule as to consideration and voting upon ordinances at two regular meetings so that this ordinance is passed upon first reading as an emergency measure on this 14th day of October, 2003. Armando Chapa City Secretary THE CITY OF CORPUS CHRISTI S~muel L. Neal, J¢~ Mayor, The City of Corpus Ch'fisti Doyl~ D(Curtis Chief, Administrative Law Section Senior Assistant City Attorney For City Attorney ~:\LEG-DIR\DoyleD.Curtis\MYDOCS~2003\Economic. Developm\Enterpri seZone\100803DC.Nominati.ngCITGO.Project. Ord.doc Page 5 of 5 C~rL~us Christi, Texas __ . , day of TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas ,2003. For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings. I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully Respectfully, ' Samuel L. N~al, Jr-., Ma~//~ The City of Corpus Chri~i/ Council Members The above ordinance was passed by the following vote: Samuel L. Neal, Jr. (..~,(_~/.~, Brent Chesney Javier D. Colmenero Melody Cooper Henry Garret William Kelly Rex A. Kinnison Jesse Noyola Mark Scott ~:\LEG- DIR\DoyleD.Curt s\MYDOCS~2003\Economic. Developm\E nterpri.seZone\100803DC.Nominati.ngClTGO.Project. Ord.doc Page 1 of 2 Exhibit A incentives offered by the City of Corpus Christi Business and Job Development Corporation business incentives Tax Abatement As approved by the Board - funds for loan participation, guarantees, direct Iow interest loans, rent subsidies, relocation, moving expenses, job training According to investment Section 108 Loan Guarantee Loan Guarantee As approved by Business and Job Development Corporation. As approved by City Council Benefiting Iow income individuals, eliminating slum and blight or addressing an immediate need Community Development Block Grant Grant Funds Benefiting Iow income individuals, eliminating slum and blight or addressing an immediate need Department of Commerce - Economic Development Administration Grant for Public Works Grant Funds Citywide Environmental Clean Deduct costs of Citywide up costs deduction environmental clean up Tax Exempt Revenue Bonds Citywide Bonds Environmental Clean- up Costs HUB Zone Welfare to Work Wage Credit Deduct qualified clean up Citywide costs CTS 59, 56.02, 8, 17, 16.02, 16.01, 9, 15, 10, 13,12,50, 7,11, 5,4, 3) Credit of up to $8,500 per employee Employee must be certified through the State of Texas J:\LEG-DIR\DoyleD.Curtis\MYDOCS~003\Economic D evelopm\Enterpri.seZone\lO0803PG.RevDC.ExhibitA.ToOrd.doc Page 2 of 2 11 Work Opportunity Credit up to $2,400 per Employee must be Wage Credit employee certified through the State of Texas 12 New Markets Tax Credit of up to 39% to In census tracts with 20% Credit__ investors poverty or greater 13 Authorize the City Texas Enterprise Zone Manager to engage in certain public/private partnerships with proposed enterprise zone projects for purposes of offering incentives unique to the proposal. 14 Enterprise Zone Expeditor Texas Enterprise Zone Expeditor 15 Enterprise Zone Signage Texas Enterprise Zone Signage Program 16 Industrial District Payment in lieu of taxes Texas Enterprise Zone - Industrial District 17 Corpus Christi ForeignNot subject to Customs Texas Enterprise Zone - Trade Zone #122 duties or certain excise Port of Corpus Christi taxes. 7-8 Increased Section-;i-79 Deduct additional $35,000 Texas Enterprise Zone- Deduction on machinery and Renewal Community __ equipment 19 Renewal Community Depreciate 50% of the Texas Enterprise Zone - Commercial total qualifying Renewal Community Revitalization expenditure in the first Deduction year the building is placed in service or depreciate over 120 months. 20 Renewal Community Credit of up to $1,500 perTexas Enterprise Zone - Wage Credit employee Renewal Community 21 Zero Percent Capital Exclusion from Capital Texas Enterprise Zone - Gains __ Gains Renewal Community t:\LEG-DIR\Do/leD.Curtis\MYDOCS~2003\Economic. Developm\Enterpri.seZone\100803PG,RevDC.ExhibitA.ToOrd.doc Page 1 of 1 Exhibit B Incentives that may be considered and offered by the City of Corpus Christi to Nominated Texas Enterprise Zone Projects 1) Authorize the City Manager to engage in certain public/private ~artnerships with proposed enterprise zone projects for purposes of offering incentives unique to he proposal. Texas Enterprise Zone 2) Enterprise Zone Expeditor Texas Enterprise Expeditor Zone 3) Signage 4) 5) 6) 7) 8) Enterprise Zone Signage Program Industrial District Corpus Christi Foreign trade Zone #122 Increased Section 179 Deduction Renewal Community Commercial Revitalization Deduction Renewal Community Wage Credit Zero Percent Capital Gains Contract for Payment in lieu of taxes Not subject to Customs duties or certain excise taxes. Deduct additional $35,000 on machinery and equipment Depreciate 50% of the total qualifying expenditure in the first year the building is placed in service or depreciate over 120 months. Credit of up to $1,500 per employee Zero Percent Capital Gains 9) Texas Enterprise Zone Texas Enterprise Zone - Industrial District Texas Enterprise Zone - Port of Corpus Christi Texas Enterprise Zone- Renewal Community Texas Enterprise Zone- Renewal Community Texas Enterprise Zone- Renewal Community Texas Enterprise Zone- Renewal I Community t:\LEG-DIR\DoyleD Cudis\MYDOCS~003\Economic. Developm\Enterpri.seZone\100803PG RevDC.Exhibit B.ToOrd.doc Page 1 of 3 Exhibit C Corpus Christi Areas meeting the 2003 Requirements for Texas Enter ~rise Zone (Sections 2303.101 and 2303.109 1 (See note atend of chart) 1 Renewal Community (expires 12/09) 1 (See note at end of chart) 1 Texas Enterprise Zone (expires 9/05) 3 1 Census block group with 20% poverty or greater 3 2 Census block group with 20% poverty or greater 3 1, 2 Renewal Community (expires 12/09) 3 1, 2 Texas Enterprise Zone (expires 9/05/ 4 1 Census block group with 20% poverty or greater 4 2 Census block group with 20% poverty or greater 4 3 Census block group with 20% poverty or greater 4 1,2, 3 Renewal Community (expires 12/09) 4 1,2, 3 Texas Enterprise Zone (expires 9/05) 5 1 Census block group with 20% poverty or greater 5 1 Texas Enterprise Zone (expires 9/05) 6 1 Census block group with 20% poverty or greater 6 3 Census block group with 20% poverty or greater 6 4 Census block group with 20% poverty or greater 6 5 Census block group with 20% poverty or greater 6 (See note at end of chart) 1, 2, 3, 4, 5, 6, 7, 8 Texas Enterprise Zone (expires 9/05) 7 1 Census block group with 20% poverty or greater 7 1 Texas Enterprise Zone (expires 9/05) 7 (See note at end of chart) 2 Texas Enterprise Zone (expires 9/05) 7 3 Census block group with 20% poverty or greater 8 1 Census block group with 20% poverty or greater 8 1 Texas Enterprise Zone (expires 9/05) 8 (See note at end of chart) 2 Texas Enterprise Zone (expires 9/05) 8 3 Census block group with 20% poverty or greater 8 3 Texas Enterprise Zone (expires 9/05) 9 1 Census block group with 20% poverty or greater 9 2 Census block group with 20% poverty or greater 9 3 Census block group with 20% poverty or greater 9 4 Census block group with 20% poverty or greater 9 5 Census block group with 20% poverty or greater 10 1 Census block group with 20% poverty or greater 10 2 Census block group with 20% poverty or greater 10 3 Census block group with 20% poverty or greater 10 4 Census block group with 20% poverty or greater 10 1, 2, 3, 4 Renewal Community (expires 12/09) 10 1,2, 3, 4 Texas Enterprise Zone (expires 9/05) 11 1 Census block group with 20% poverty or greater 11 2 Census block ~lroup with 20% poverty or greater 11 1, 2 Renewal Community (expires 12/09) 11 1,2 Texas Enterprise Zone (expires 9/05/ 12 1 Census block group with 20% poverty or greater 12 1 Texas Enterprise Zone (expires 9/05) 12 2 Census block group with 20% poverty or greater 12 2 Texas Enterprise Zone (expires 9/05) 12 3 Census block group with 20% poverty or greater 12 3 Texas Enterprise Zone (expires 9/05) 13 1 Census block group with 20% poverty or greater 13 2 Census block group with 20% poverty or greater 13 3 Census block group with 20% poverty or greater 13 4 Census block group with 20% poverty or greater 4:\LEG~D~R\D~y~eD~Curtis\MYD~CS~3\Ec~n~mic.Deve~pm\Enterpri.seZ~ne\1~8~3PG~RevDC~E~hibit~.T~rd.doc Page 2 of 3 14 2 Census block group with 20% poverty or greater 15 1 Census block group with 20% poverty or greater 15 2 Census block group with 20% poverty or greater 15 3 Census block group with 20% poverty or greater 15 4 Census block group with 20% poverty or greater 16.01 1 Census block group with 20% poverty or greater 16.01 2 Census block group with 20% poverty or greater 16.01 3 Census block group with 20% poverty or greater 16.01 4 Census block group with 20% poverty or greater 16.02 1 Census block group with 20% poverty or greater 16.02 2 Census block group with 20% poverty or greater 16.02 3 Census block group with 20% poverty or greater 17 1 Texas Enterprise Zone (expires 9/05) 17 2 Census block group with 20% poverty or greater 17 2 Texas Enterprise Zone (expires 9/05) 17 3 Texas Enterprise Zone/expires 9/05) 17 4 Census block group with 20% poverty or greater 17 5 Census block group with 20% poverty or greater 17 6 Census block group with 20% poverty or greater 17 7 Census block group with 20% poverty or greater 17 7 Texas Enterprise Zone (expires 9/05) 18.01 1 Census block group with 20% poverty or greater 18.01 4 Census block group with 20% poverty or greater 18.01 4 Texas Enterprise Zone (expires 9/05) 18.01 5 Census block group with 20% poverty or greater 18.01 5 Texas Enterprise Zone (expires 9/05) 1802 I Census block group with 20% poverty or greater 19.01 3 Census block group with 20% poverty or greater 19.01 4 Census block group with 20% poverty or greater 19.01 5 Census block group with 20% poverty or greater 19.01 6 Census block group with 20% poverty or greater 19.01 7 Census block group with 20% poverty or greater 19.02 I Census block group with 20% poverty or greater 19.02 2 Census block group with 20% poverty or greater 20 1 Census block group with 20% poverty or greater 20 3 Census block group with 20% poverty or greater 20 5 Census block group with 20% poverty or greater 20 6 Census block group with 20% poverty or greater 20 7 Census block group with 20% poverty or greater 21 4 Census block group with 20% poverty or greater 21 5 Census block group with 20% poverty or greater 22 2 Census block group with 20% poverty or greater 22 4 Census block group with 20% poverty or greater 23.01 2 Census block group with 20% poverty or greater 27.03 4 Census block group with 20% poverty or greater 30 2 Census block group with 20% poverty or greater 30 3 Census block group with 20% poverty or greater 30 4 Census block group with 20% poverty or greater 31 7 Census block group with 20% poverty or greater 33.01 I Census block group with 20% poverty or greater 33.02 2 Census block group with 20% poverty or greater 34.01 1 Census block group with 20% poverty or greater 34.02 3 Census block group with 20% poverty or greater 35 2 Census block group with 20% poverty or greater 36.01 4 Census block group with 20% poverty or greater 36.02 2 Census block group with 20% poverty or greater 36.03 3 Census block 9roup with 20% poverty or greater 4 :\LEG-DI R\DoyleD. C urtis\MYDOCS~003\Economic D evelopm\E nterpri.seZone\100803PG. RevDC. ExhibitC .ToOrd. doc Page 3 of $ 50 1 Census block group with 20% poverty or greater 50 (See note at end of chart) 2 (place 9999) Texas Enterprise Zone (expires 9/05) 54.06 1 Census block group with 20% poverty or greater 56.01 3 Census block group with 20% poverty or greater 56.01 4 Census block group with 20% poverty or greater 56.01 5 Census block group with 20% povert), or greater 56.02 I Census block group with 20% poverty or greater 56.02 2 Census block group with 20% poverty or greater 56.02 3 Census block group with 20% poverty or greater 56.02 5 Census block group with 20% poverty or greater 56.02 6 Census block group with 20% poverty or greater 56.02 7 Census block group with 20% poverty or greater 58.02 1 Census block group with 20% I:)overt¥ or greater 59 1 Census block group with 20% poverty or greater 59 2 Census block group with 20% poverty or greater Note: A Census Tract marked "(See note at end of chart)" denotes an area that upon expiration of the designation will be subject to the 20% poverty rule for continuation in the Texas Enterprise Zone (numbers in bold italics [1,2, 3, 4, 5, 6, 7, 8] indicate the affected block groups in the census tract). ~:\LEG-D~R\D~y~eD.Curtis\MYD~CS~3\Ec~n~mic.Deve~pm\Enterpri.seZ~ne\1~8~3PG.RevD~.Exhibit~.T~rd.doc State of Texas County of Nueces PUBLISHER'S AFFIDAVIT SSi CITY OF CORPUS CHRISTI Ad # 4703557 PO # Before me, the undersigned, a Notary Public, this day personally came Diana Hinoiosa, who being first duly sworn, according to law, says that she is Credit Manager of the Corpus Christi Caller-Times, a daily newspaper published at Corpus Christi in said City and State, generally circulated in Aransas, Bee, Brooks, Duval, dim Hogg, Jim Wells, Karnes, Kenedy, Kleberg, Live Oak, Nueces, Refugio, San Patricio, Victoria and Webb Counties, and that the publication of, NOTICE OF PASSAGE OF ORDINANCE NO. which the annexed is a true copy, was inserted in the Corpus Christi Caller-Times and on the World Wide Web on the Caller-Times Interactive on the 20TH day(s)of OCTOBER, 2003. $120.55 TWO {2 ) Time(s) Credit Manager Subscribed and sworn to me on the date of OCTOBER 21, 2003. Notary Public, Nueces County, Texas ROSA MARIA FLORES Print or Type Name of Notary Public My commission expires on 04/23/05. _ Corpus Christi Caller-Times, Monday, October 20, 2003/13~ OF PASSAGE OF ORDINANCE NO. 025513 Ordinance authorizing the City of Corpus Christi to participate in the Texes Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code (Act); providing tax incentives; requesting that Corpus Christi 2000 Enterprise Zone nominating Refining Chemicals L.P. to the Office of the Governor Economic Oeve[opment and Toudsm (EDT) through the Economic Development Bank (Bank for designation as a Qua ed Business and Triple Jumbo Enterprise Proj- ect (Project) under the Act; and designatin{~ a liaison for ovemee~ng Enterprise Projects and communicating with interested parties. This on:linance was passed and approved by the City Council of the City of Corpus Christi on October 14, 2003. /s~ Armando Chapa City Secretar'/ City of Corpus Christi