HomeMy WebLinkAbout027322 RES - 06/26/2007Page 1 of 2
A RESOLUTION
APPROVING IN THE CITY OF CORPUS CHRISTI TAX INCENTIVE
POLICY FOR LARGE RETAIL/MIXED USE DEVELOPMENT AND
REDEVELOPMENT
WHEREAS, there is a need to develop a policy to guide decisions regarding
granting of tax incentives for large retail/mixed use development and
redevelopment.
NOW, THEREFORE, E, E IT RESOLVED ED DY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. That the City Corpus Christi fax incentive policy for large
retail/mixed use development and redevelopment attached hereto is approved.
ATTEST:
Armando Chapa
City Secretary
APPROVED AS TO FORM: M: June 20, 2007
G. ry '1 Smith
Assistant City Attorney
For the City Attorney
027322
Cl
F CORPUS CHRISTI
rr.1AlUa
ryGare
Mayor
H:1LE -CIF 1 hared\ ary l genda\2OO71 -2 1F e-TaxincentivePolio forL rge etail.do
{
Page 2 of 2
Corpus Christi, Texas
2L4Of (Vile_
2007
The above resolution was passed by the following vote:
Henry Garrett
Melody Cooper
Larry Eli undo, Sr.
Mike Hummel!
r elI
Bill Kelly
Priscilla G. Leal
John E. Marez
Nelda Martinez
Michael McCutchon
02732'2
FI:\LEG-DIMS hared\ aryl\agendal20o 1 - \Fes -Taxan ntivePoIi yforLarg F taiI.do
......,
i...,0%.,•%,..."
Cityof
Corpus
Christi
1111111111111111
Tax Incentive Policy
Large Retail/Mixed Use
Development & Redevelopment
Approved June 26, 2007
Resolution #027322
TABLE OF CONTENTS
Page
Section 1 Policy Statement 3
Section 11 Applicability 3
Section 111 Authority 4
Section IV Guiding Principles for Consideration of Tax 4
Incentive Applications
Section V Participation by Other Taxing Entities 6
Section VI Initial Review 6
Section VI! Requirements for New Large Retail Projects 7
Section VIII Requirements for Redevelopment Projects 8
Section IX City Review 9
Section X Qualifying Expenditures 10
Section XI Financial Requirements 10
Section XII Other Policy Considerations 11
Section XIII Application Process 12
Section XIV Fee 12
Appendix A Definitions 13
Appendix B Application Form 15
2
I. Policy
The City of Corpus Christi (the City) is committed to improving the quality of life for its
citizens by the promotion of quality development in all parts of the City. This policy and
procedures are established in an effort to sustain, develop and expand the local
economy by promoting and encouraging development and redevelopment projects that
enhance the City's economic base, diversify and/or expand job opportunities which
create additional local and regional revenue and enhance the City's fiscal ability to
provide high quality municipal services for the safety, comfort and enjoyment of
residents throughout the city.
Each applicant granted tax incentives under this policy and procedures must enter into
an agreement with the City containing all terms required by this policy and by state law
to protect the public interest of receiving a public benefit in exchange for public funds,
assets and services invested to stimulate economic development in the City. An
applicant may request a meeting(s) with appropriate City staff prior to submitting an
application in order to obtain information and seek clarification of the City's Tax
Incentive Policy or Tax Increment Financing (TIF) requirements. The meeting will be
scheduled through the Economic Development Office.
A preliminary review will be completed by City staff within 20 working days to ensure
compliance with these guidelines. If the application does not meet the criteria the
applicant will be notified and will have 14 working days to supply required information. If
the required information is not submitted within this time no further action on the
application will be taken and 50% of the fee paid will be refunded.
All project information provided to or developed by the City may be subject to disclosure
under the Texas Public Information Act.
Nothing in this policy shall imply that the City is under any obligation to provide
economic incentives to any applicant. Each applicant will be evaluated on the basis of
individual merits. The decision to approve or deny economic incentives shall be at the
sole discretion of the City Council.
The City Council may vary, alter, and/or waive any of the criteria set forth herein when
such variance, alteration and/or waiver is in the public interest.
This policy supplements the City's Chapter 380 Economic Development Program
Policies and Procedures.
11. Applicability
This policy applies to large retail development and redevelopment and mixed use
projects. The City encourages projects which address goals or priorities established by
the City Council for blighted areas or areas targeted for development. All projects must
demonstrate significant increases in sales tax revenues and ad valorem property values
and revenues.
3
Support for Small Businesses will be addressed through a Small Business Policy and
through existing programs. The City's Economic Development Office is responsible for
support to small business concerns.
111. Authority
A. Local Authority. The City of Corpus Christi adopted these guidelines by Resolution
No. 027322 on June 27, 2007. The policy is intended to provide guidelines to City
Staff and interested parties regarding the use of tax incentives for retail and mixed
use development and redevelopment.
B. statutory Authority. Tax Incentives will be provided in accordance with the
procedures and criteria outlined in this policy as authorized by Title 12 and Chapter
380 of the Local Government Code and Chapter 311 of the Texas Tax Code.
IV. Guiding Principles for Consideration of Applications for
Tax Incentives
A. Goal of the City It is the City's goal to utilize tax incentives for projects occurring in
areas targeted for growth, redevelopment or designated as blighted and/or located in
census tracts which are part of the Renewal Community Program.
B. Financino vehicle The City may consider the use of Tax Increment Financing (TIF),
a Public Improvement District (P1D), a 380 Agreement and/or any other appropriate
financing vehicle to provide tax incentives for eligible projects.
C. If an applicant request the creation of a TIF District the applicant must provide:
1. Summary which includes a general description of the proposed TIF, including the
proposed boundaries, an overview of the proposed projects and proposed levels
of participation by each taxing entity. Summary should be no more than one
page.
2. A legal description (metes and bounds) and a map of the real property proposed
for designation as a TIF.
3. An economic impact study as directed by the City and paid by the developer, as
noted in Section 311.003 of the Texas Tax Code to address site, city and other
retailer impacts.
4. A minimum of 4 years of tax value information from the Nueces County Tax
Appraisal District for all properties in the proposed TIF.
5. A proposed Project Plan as described in Sections 311.003 and 311.011 of the
Texas Tax Code, with complete tax increment projections for the entire term of
the TIF.
6. A TIF may be created pursuant to Sec. 311.003 of the Texas Tax Code by the
City Council adopting an ordinance designating a contiguous geographic area to
be a reinvestment zone. City Council may make this designation upon finding
the area substantially arrests or impairs the sound growth of the City, retard the
provision of housing accommodations, or constitute an economic or social liability
and be a menace to the public health, safety, morals, or welfare in its present
condition and use because of the presence of: (A) a substantial number of
4
substandard, slum, deteriorated, or deteriorating structures; the
predominance of defective or inadequate sidewalk or street layout; (C) faulty
lot layout in relation to size, adequacy, accessibility, or usefulness; (D) unsanitary
or unsafe conditions; (E) the deterioration of site or other improvements; (F) tax
or special assessment delinquency exceeding the fair value of the land; (G)
defective or unusual conditions of title; (H) conditions that endanger life or
property by fire or other cause; or (1) structures, other than single-family
residential structures, less than 10 percent of the square footage of which has
been used for commercial, industrial, or residential purposes during the
preceding 12 years; be predominantly open and, because of obsolete platting,
deterioration of structures or site improvements, or other factors, substantially
impair or arrest the sound growth of the City; be in a federally assisted new
community located or in an area immediately adjacent to a federally assisted new
community; OR be an area described in a petition requesting that the area be
designated as a reinvestment zone, if the petition is submitted to the governing
body of the municipality or county by the owners of property constituting at
feast 50 percent of the appraised value of the property in the area according
to the most recent certified appraisal roll for the county in which the area is
located.
All information must be provided in both paper and electronic form. A
minimum of 5 copies of the information must be submitted.
D. The estimated time to complete an application for a TIF district is approximately six
(6) months. Applications for the creation of a TIF district must be submitted by
June 30th of each year in order for the TIF to be established in the same
calendar year.
E. The City may consider tax incentive participation of ad valorem and sales tax
increments at a rate of less than 100% of the tax increment. This participation of the
tax increment will continue until the termination date of the ordinance creating and or
amending the zone or until the date on which all TIF project costs and interest have
been paid in full, whichever occurs first.
F. The City may provide a tax incentive through either annual grants and/or loans
based on a percentage of the sales and use tax received by the City from the sale of
taxable items by the applicant within the project area. The applicant will be
required to provide suitable documentation of sales and use tax together with such
supporting documentation as may be required by the City.
G. Beginning on the ad valorem tax effective date, the City may provide payment of a
portion of the incremental Ad Valorem tax revenues.
H. The City will not consider tax incentive and/or TIF proposals or agreements that
exceed a 25 year term from the date of opening of the development.
1. There shall be no risk to the City should the collection of sales or property tax fall
below projected levels in the project area. In no event shall the City be liable for
payment of sales or property tax rebates that have not been generated through
incremental sales tax collections and incremental increases in property tax
revenues.
5
J. Any other consideration for incentives which are not included as part of a Tax
Incentive and/or 380 agreement and not specified in the policy will be considered on
a case by case basis.
K. Other project incentives provided by the City or other governmental entities (trust,
CDBG, TXDOT funds, etc) will be considered by the City in the final agreement
and may result in a reduction of tax incentives provided by the City.
L. The developer shall certify to the City that the developer or any branch, division, or
department of the developer does not and will not knowingly employ an
"undocumented worker." The term "undocumented worker" shall have the same
meaning given such term in Sec. 2264.001, Texas Government Code. This
certification shall be required of all developers seeking incentives commencing
September 1, 200 7.
M. Other qualifying factors which may be considered:
1. An expansion of the trade area will occur.
2. Mixed use facilities with housing as a component of the project will be offered.
3. Additional spin off economic activity will occur.
4. The neighborhood in which the facility is located will be improved.
5. Xeriscaping and other landscaping measures to reduce water consumption will
be included.
I. Tax incentives will not be approved if there is a negative effect on the City's
municipal bond rating.
O. The City's office of Economic Development will receive and evaluate all tax
incentive proposals.
P. The City's Finance office will be responsible for all TIF administration unless
otherwise specified by the City Council in the Financial Agreement.
V. Participation by Other Taxing Entities
Section 311 .013 of the Texas Tax Code provides that other local taxing entities retain
the right to determine the amount of the tax increment that each will retain, or each may
decide to retain all of the tax increment. The City will enter into written agreements with
all participating taxing entities to specify the conditions for payment of the tax increment
into a TIF, the portion of the tax increment to be contributed by each entity to the TIF
and the term of the agreement.
VI. Initial Review
Consideration for tax incentives will be based on the applicant's ability to address the
following:
6
A. Demonstrate that "but for" the granting of tax incentives through the creation of a
TIF or request for a 380 agreement, quality development is not likely to occur in the
proposed area without tax incentives. The City will review the developer's pro forma
to determine if tax incentives are necessary.
B. Development or redevelopment is appropriate for an area provided that public
infrastructure is constructed to support the revitalization of the area; and
C. Demonstrate that the use of a TIF or 380 agreement is the appropriate tool for a
project requesting public investment; and
D. The area proposed for the TIF or 380 agreement will have an increase in real
property taxable value following completion of construction; and
E. Provide full disclosure of all incentive costs and any information required to
compute the direct and/or indirect costs of providing City services to the new
facility.
Vil. Requirements for New Large Retail Projects
Applicants must, at a minimum, satisfy the following requirements:
A. Generate a positive economic impact to include employment, sales tax revenues to
the City, ad valorem taxes, and personal property taxes that exceed the City's
investment of public funds. While personal property taxes will be considered in
making the determination of positive economic impact, personal property taxes will
not be included as part of any Tax Incentive Agreement.
B. Describe how the project will contribute to revitalization activities in the zone or in the
surrounding area of the community.
C. Describe how the input of nearby neighborhood residents and businesses will be or
has been solicited in the planning process.
D. Comply with all City master plans, zoning ordinances, building codes and other
applicable City Ordinances. Projects exceeding plan requirements may be
considered for additional incentives.
E. Agree to hold the City, its agents, employees and public officials harmless and shall
pay all attorney's fees generated due to any dispute regarding the tax incentive.
F. Provide information regarding the gap in funding needed to construct the project.
Staff will evaluate cost, expenses and revenue, and consider market conditions to
determine if gap exists.
G. Agree that only new tax increment revenue generated by the facility will be used for
payment of the incentives.
7
H. Agree that any sales tax revenues generated by operations which relocate with the
same or less square footage from other areas of the City to the project will not be
included in the calculation of any tax incentives to be provided. In the event the new
store in the Project is larger than the closed store, the percentage of Gross Floor
Area (ars such term is defined in industry standards) which represents the increase
shall not be considered part of the Relocation but shall be treated as new stores
sales.
I. Demonstrate commitment to the quality of the development, the project area, and
project completion.
J. M/WBE Goals & Utilization of Local Contractors and Su tiers In compliance with
the requirements set forth in Section 311.0101 of the Texas Tax Code and before
the start of any phase of the public improvements the following M/W E goals and
commitments must be met:
1. Any project costs for infrastructure improvements that will be contemplated under
a Tax Incentive Agreement ander a TIF project plan will require the applicant to
utilize local contractors and suppliers with a minimum goal of 30% for locally
purchased labor and supplies.
2. A minimum goal of 25% is also required for the use of historically—underutilized
(minority and women -owned business enterprises).
3. Compliance with these provisions will be assured through a Fair Share
Agreement between the City and the Applicant. Verification of compliance will be
done by an independent contractor selected by the City. Cost for this
independent verification shall be borne by the applicant. Procedures for
compliance monitoring will be specified in the Tax Incentive Agreement.
• •
K. Generate no less than 500 new jobs and make reasonable efforts to make these
jobs available to local residents.
L. Develop a "destination retail or a mixed use" facility.
M. In order to qualify as a large retail and/or mixed use development, the project must
offer a facility value of no less than $50,000,000.
N. Demonstrate that the project reduces retail leakage or captures new retail sales not
currently in the City.
O. Establish a relocation percentage of no greater than 30% based on square footage
at the onset of discussions with the City and for inclusion in the tax incentive
agreement. If the relocation percentage is exceeded within two (2) years after the
opening date of the development, the developer will lose all tax incentives with the
exception of offsite City infrastructure. The developer agrees that no more than 15%
of the total gross floor area of the retail space in the project may come from any one
existing multi -tenant retail facility in the City of Corpus Christi.
VISI. Requirements for Redevelopment Projects
Applicants must at a minimum, satisfy the following requirements:
8
A. Each redevelopment project will be considered on a case by case basis.
B. In order to qualify as a large redevelopment and/or mixed use, the project must offer
a facility value of no Tess than $1O,000,000.
C. Job creation is required and will be considered on a case by case basis.
D. impact on sales tax and/or ad valorem tax revenues will be the determining factor in
evaluation of these projects for incentives.
E. Agree that any sales tax revenues generated by operations which relocate with the
same or less square footage from other areas of the City to the project will not be
included in the calculation of any tax incentives to be provided. In the event the new
store in the Project is larger than the closed store, the percentage of Gross Floor
Area (as such term is defined in industry standards) which represents the increase
shall not be considered part of the Relocation but shall be treated as new stores
sales.
F. Establish a relocation percentage of no greater than 30% based on square footage
at the onset of discussions with the City and for inclusion in the tax incentive
agreement. If the relocation percentage is exceeded within two (2) years after the
opening date of the development, the developer will lose all tax incentives with the
exception of offsite city infrastructure costs. The developer agrees that no more
than 15% of the total gross floor area of the retail space in the project may come
from any one existing multi -tenant retail facility in the City of Corpus Christi.
G. MANBE Goals & Utilization of Local Contractors and Suppliers In compliance with
the requirements set forth in Section 311.0101 of the Texas Tax Code and before
the start of any phase of the public improvements the following MiWBE goals and
commitments must be met:
1. Any project costs for infrastructure improvements that will be contemplated under
a Tax Incentive Agreement and/or a TIF project plan will require the applicant to
utilize local contractors and suppliers with a minimum goal of 30% for locally
purchased labor and supplies.
2. A minimum goal of 25% is also required for the use of historically—underutilized
(minority and women -owned business enterprises).
3. Compliance with these provisions will be assured through a Fair Share
Agreement between the City and the Applicant. Verification of compliance will be
done by an independent contractor selected by the City. Cost for this
independent verification shall be borne by the applicant. Procedures for
compliance monitoring will be specified in the Tax Incentive Agreement.
IX. City Review
Once a project demonstrates compliance with the above requirements, City staff will
determine:
A. Impact 0n the City's general fund if a TIF designation or 380 Agreement is used.
9
B. Potential for success of the TIF or project.
C. Appropriate level of participation by the City.
D. Risks associated with the creation of the TIF or use of other form of tax increment
sharing.
E. Evaluate the use of other economic development tools in lieu of a TIF.
X. Qualifying Expenditures
Tax incentives must be used as authorized by Chapter 311 of the Texas Tax Code.
Some examples include:
• Off site public infrastructure
• Public infrastructure on site
• Public utilities
• Underground utilities where feasible
• Public spaces/facilities
• Public Art
• Streetscapes
• Road Improvements
• Landscaping
• Other aesthetic improvements
• Traffic signals
• Street lighting
• Pedestrian hardscapes
• Fountains/water features
• Grading
• Public parking facilities
• Public transit related improvements in accordance with Secs. 311.010 and
311.01005 of the Texas Tax Code
XI. Financial Requirements
A. The applicant shall meet all the eligibility requirements contained in this policy, the
project agreement, state law, and City codes.
B. The applicant shall demonstrate financial solvency to be considered by the City for
tax incentives. This may be demonstrated by providing a financial statement,
complete sources and uses budget, a detailed cash flow statement or a letter of
credit from an appropriate financial institution.
C. Prior to entering into a Tax Incentive Agreement the applicant must also demonstrate
the financial capacity to complete the project as proposed. Proposed security,
collateralization, or credit enhancement must also be provided.
I. The applicant must also demonstrate a gap in financing for the project e.g. the
profitability and feasibility of the project both with and without public assistance,
10
including a detailed explanation of the developer equity contribution into the project
and the overall proposed financial structure of the project).
E. A construction period agreeable to the City shall be included in the Tax incentive
Agreement.
F. There shall be no risk to the City should the collection of sales or property tax fall
below projected levels in the project area. In no event shall the City be liable for
payment of sales or property tax rebates that have not been generated through
incremental sales tax collections and incremental increases in property tax
revenues.
G. Incentive payment for any construction cost of infrastructure shalt not exceed 15% of
the total amount of the projected investment in the project. In no circumstance will
the City share more than the negotiated amount for additional infrastructure or
amenities improvements. The City's preference is to pay for off-site rather than on-
site infrastructure improvements.
H. If "relocation" occurs, sales and ad valorem tax revenue generated by those
properties shall not be included in the calculation of the sales.
1. A project obtaining support from other governmental entities shall be given greater
consideration for tax incentives.
J. Breach of Contract and notification provisions will be established in the project
agreement.
K. Monitoring practices will be established in the Tax Incentive Agreement. The City
will, as part of its annual audit, include all TiF projects in the audit. In addition,
monitoring for contract compliance will be done no less than twice per year. During
the monitoring process, the City will make maximum use of required State and
Federal submissions for the determination of contract compliance. Auditing and
monitoring procedures established in the Tax Incentive Agreement must comply
with these requirements and must clearly describe the monitoring activity,
responsible party, and reporting requirements.
L. Any incentives provided are subject to recovery upon default of the applicant. The
tax incentive agreement shall provide for notice of default and opportunity to cure
the default. In the event a default is not cured, the Agreement shall provide for
recovery of incentives paid, suspension of incentive payments, and/or cancellation
of incentive payments as determined to be appropriate by City Council. If the
development is sold, the Tax Incentive Agreement may not be assigned without the
prior written consent of the City acting by and through its City Council, which consent
shall not be unreasonably withheld.
XII. Other Policy Considerations
A. The City may, at its discretion, provide expedited permitting, waivers or reductions of
building permit fees, inspection fees and utility tapping fees.
11
B. Additional consideration will be given to projects paying higher than the City's median
wage for the industry/business applying for incentives.
C. The applicant is encouraged to provide a mix of both local/regional and national
retailers.
D. The applicant is encouraged to allocate a percent of space to local small businesses
and provide rent buy downs and relocation expenses for up to two years or provide
financial support for small business initiatives of the City.
E. Any project which has, as a component of its project, the development of a business
park serving the needs of primary employers will be given greater consideration for
incentives.
F. The project will not create any negative environmental impacts and will comply with
all environmental regulations.
G. Incorporation of a green development concept will be given greater consideration for
incentives.
H. Funds from the Corpus Christi Business and Job Development Corporation are
not available for retail incentives.
I. Smart growth concepts as defined by EPA shall be considered by the City in the
project evaluation.
J. Priority consideration will be given to construction companies that pay employees at
or above the median wage in Corpus Christi.
XIII. Application Process
Applicants seeking tax incentives must file an application for Economic Incentives
before the request can be considered.
The City shall not grant any incentive unless the business submits a full and complete
application and provides additional information as may be requested. The accuracy of
the information in the application is the sole responsibility of the applicant. Upon
request the applicant shall provide supporting documentation. Any misstatement of or
error in fact may render an application null and void and may be cause for repeal of any
ordinance adopted in reliance of said information.
If it is determined that the application meets these guidelines a full and financial
programmatic review will be conducted. This review may be done by City Staff, an
outside agency or consultant and will ensure conformance with these guidelines.
XIV. Fee
12
An application fee of $5000 will be submitted at the same time the application for
economic incentives is submitted.
The fee must be paid in the form of a check or money order and made payable to the
City of Corpus Christi, Texas. The fee will offset some of the administrative cost to
process the application and finalize the Tax Incentive request.
13
APPENDIX "A"
A. Relocation - The movement of an existing retail business from other areas of the
City to a new development which is provided tax incentives. The City shall use a
time period of two (2) years to make this determination beginning on the date the
new development is opened. Square footage of the original location will
determine the reduction of tax increment revenues to be retained by the City and
which will not be used as part of the tax incentives provided to a developer.
E. Full -Time Equivalent (FTE) -- number of actual hours worked by an employee in a
standard work week divided by 40 hours.
C. Tax Increment Financing (TIF) - defined as a tool used by Local governments to
publicly finance needed structural improvements and enhanced infrastructure
within a defined area. The cost of improvements to the area is repaid by the
contribution of future tax revenues by each taxing unit that levies taxes against
the property. Each taxing unit can choose to dedicate all, a portion of, or none of
the tax revenue that is attributable to the increase in property values due to the
improvements within the reinvestment zone. Tax increment financing may be
initiated by either a petition of the affected property owners or by a City Council.
D. Public Improvement District (PID) - allows a City to levy special assessments on
real property to aid in funding improvements in these districts. A petition must
be submitted to the City as referenced in Section 372.002 of the local Government
Code.
E. Tax Increment Reinvestment Zone (TIRZ) - a defined area in which Tax Increment
Financing, a tool governed by the TIF ACT in Chapter 311 of the Texas Tax Code,
can be used by local governments to publicly finance needed residential and
commercial public improvements and enhanced infrastructure within the Zone. To
be designated a TIRZ, areas must be economically distressed, unproductive, under-
developed or blighted, and impair the City's gro►th because of those factors or be
included in a petition of a least 50% of the property owners within the Zone.
F. Property Tax Abatement - An agreement, which cannot exceed ten (10) years,
executed by a taxing jurisdiction to abate its property taxes in percentages from 0 to
100% over a fixed period of time.
G. 380 Agreements - Agreements executed pursuant to the requirements of Section
380.001 of the Texas Tax Code for Economic Development Programs which allow
a governing body of a municipality to establish and provide for the
administration of one or more programs, including programs for making loans, and
grants of public money and providing personnel and services of the municipality,
to promote State and local economic development and to stimulate business and
commercial activity in the municipality.
H. Mixed-use developments - a single project containing two or more occupancy types
(residential, office or retail) which utilizes a minimum of 15% of the total project
occupancy square footage for residential purposes.
14
1. Permanent jobs - New jobs that will be created as a direct result of the development
and will remain filled for a minimum of two (2) years after the completion of
construction.
J. Regional Draw - a development project that, due to its unique characteristics, will
draw population from throughout the City, the region, and possibly beyond.
K. Retail Development - Establishments engaged in selling goods or merchandise to
the general public for personal or household consumption, and rendering
services incidental to the sale of such goods. Characteristics of retail trade
establishments are (1) the establishment is usually a place of business and is
engaged in activity to attract the general public to buy; (2) the establishment buys
and receives as well as sells merchandise; (3) the establishment may process
some of the products, but such processing is incidental or subordinate to the selling
activities; and retail establishments sell to customers for their own personal or
household use.
15
APPENDIX "B"
City of Corpus Christi
Application for Tax Incentives for
Large Retail /Mixed Use
Development and/or Redevelopment
1. Fequestor:
Mailing Address: -- -- - Telephone: Fax:
Cell Phone: Email:
2. Project Address:
Property Legal Description (metes & bounds):_-- - - — -- -- -
3. Project Description:
4. Type of Incentive Requested: 380 T1F PID other
5. The City's Tax Incentive Policy requires:
A. Justification for the request for tax incentives: T
B. Provide a pro forma will be provided when requested by the City. Yes No
C. Explain why the proposed development is appropriate for the area and what public
infrastructure will be built?
D. Will the project result in an increase in real property taxable value upon completion of
construction. Yes No
E. Provide supporting documentation for the projected increase in real property taxable
value. Yes No
6. New Large Retail/Mixed Use Developments must:
A. Document how the development will have a positive economic impact which exceeds the
City's investment of public funds.
16
Employment:
Sales Tax:
Ad Valorem:
Personal Property Tax:
E. Explain how the development will revitalize the project area and surrounding
community:
C. Describe how you will or have solicited input from nearby neighborhood residents and
businesses.
D. Provide assurances that your development will comply with:
1. City Master Plan
2. Zoning Ordinance
3. Building Codes
Yes No
E. Agree to hold the City and its agents harmless and pay attorney fees for any tax
incentive dispute. Yes No
F. Agree that only new tax increment revenue will be used for payment of the incentives.
Yes No
G. Agree that sale tax revenues generated by operations which relocate with same or less
square footage to the project will not be included in calculation of tax incentive.
Yes No
H. Agree to utilize local contractors and suppliers a minimum of 30% for locally purchased
labor and supplies. Yes No
1. Agree to minimum goal of 25% for use of historically underutilized enterprises
(M/WBE)._______¥es No
J. Generate no less than 500 new jobs and make reasonable efforts to make these jobs
available to local residents. Yes No
K. Is the project "destination retail" Yes No "mixed use" Yes No
L. Facility value is $50,000,000 or greater. Yes No
M. Provide documentation of retail leakage and how you will capture new retail sales.
N. Agree to a relocation percentage of 30% or less based on square footage. Yes No
7. Requirements irer ents for Redevelopment ment Projects
A. Facility value is $10,000,000 or greater. Yes No
B. New job creation will be:
17
C. What increase will be realized in sales or ad valorem tax revenue as a result of your
project. °o
D. Agree to a relocation percentage of 30% or less based on square footage.
Yes No
E. Agree to utilize local contractors and suppliers with a minimum of 30% for locally
purchased labor and supplies. Yes No
F. Agree to a minimum goal of 25% for use of historically -underutilized enterprises
(M/WBE). Yes No
8. Other Policy Considerations
A. Agree that project will not create any negative environmental impacts. Yes No
B. Will your project incorporate a green development concept? Yes No
9. Application Fee attached Yes No
l certify that the information contained herein is true and correct.
Printed Name and Title
Signature (Must be signed by a corporate officer with signature authority)
Date
Completed request should be submitted:
Director of Economic Development
City of Corpus Christi
P. 0. Box 9277
Corpus Christi, TX 78469-9277
18