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HomeMy WebLinkAbout027908 RES - 10/21/2008Page 1 of 3 RESOLUTION NOMINATING PROJECTS TO THE OFFICE OF THE GOVERNOR FOR RENEWAL COMMUNITY COMMERCIAL REVITALIZATION DEDUCTIONS WHEREAS, the Department of Housing and Urban Development designated the City of Corpus Christi's Census Tracts 1, 3, 4, 5, 7, 10, 11, 13, 35, and 50 as a "Renewal Community" eligible to share in tax incentives to stimulate job growth and promote economic development; WHEREAS, the Renewal Community designation provides federal tax incentives to businesses located in the Renewal Community; WHEREAS, each Renewal Community may allocate $12 million of Commercial Revitalization Deductions per year and up to $10 million per project for substantially rehabilitated or newly construction buildings in the Renewal Community; WHEREAS, a business can deduct 50 percent of the building in the first year the building is placed in service or deduct the full amount of eligible expenditures pro rata over 10 years; WHEREAS, each Renewal Community may make the following types of allocations of the Commercial Revitalization expenditure amounts — an allocation in the calendar year in which a qualified revitalization building is placed in service; a binding commitment to make an allocation of a specified dollar amount to a qualified revitalization building in the calendar year in which the building is placed in service; and a carryover allocation; WHEREAS, each Renewal Community must submit to the Office of the Governor a plan for awarding its $12 million in Commercial Revitalization Deductions ("Allocation Plan"); WHEREAS, on December 19, 2006, the City Council adopted its Allocation Plan, titled "City of Corpus Christi Commercial Revitalization Local Strategic Plan for the City's Renewal Community Commercial Revitalization Deduction Allocation Program" ("Local Strategic Plan") to submit to the Office of the Governor; and WHEREAS, under its Local Strategic Plan, the City published notice of the Commercial Revitalization Deduction application process, received applications, and reviewed applications for compliance with the Local Strategic Plan; WHEREAS, the City desires to nominate three (3) projects for allotments totaling $5,150,000 for 2008 to complete the allocation for the current year; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, 027908 C:\Documents and Settings\jayr\My Documents\JayR\Economic Development\Res-NominateList-CCRCCRD 10142008.DOC Page 2 of 3 SECTION 1. The following project is approved by the City of Corpus Christi and nominated for approval by the Office of the Governor to certify the following allocation of the Commercial Revitalization Deductions totaling $5,150,000: 1. Pietsch Realty Investments, LLC, to receive an allocation for $600,000 from the 2008 Commercial Revitalization Deduction for a building located at 326 N. Chaparral. 8 - 10 jobs will be created. 2. UBP Properties, LLC, to receive an allocation for $1,500,000 from the 2008 Commercial Revitalization Deduction for a building located at 807 N. Upper Broadway. 1 - 2 jobs will be created. 3. Nueces Bay WLE, LP, to receive a binding commitment for an allocation of $2,100,000 from the 2009 Commercial Revitalization Deduction for a building located at 2002 E. Navigation Boulevard, subject to the following upon approval by the City Council in 2009: a. Project will be placed in service by December 31, 2009 b. Funding is secured c. Land/property acquisition is complete or under lease d. Full-time jobs are created or retained. SECTION 2. The City Manager, or designee, is authorized to execute a certification to the Office of the Governor that the City of Corpus Christi has followed the procedure in its Allocation Plan, to the best of his or her knowledge, and the application approved in this Resolution is complete and meets the requirements of the commercial revitalization deduction program. ATTEST: Armando Chapa City Secretary Approved:�October 14, 2008 R. Jz R.4ininq/ First Assistant City Attorney for City Attorney THE CITY OF CORPUS CHRISTI Henry G- rett Mayor 027908 C:\Documents and Settings\jayr\My Documents\JayR\Economic Development\Res-NominateList-CCRCCRD 10142008.DOC Corpus Christi, Texas it ISE _ of O0 6PA , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon 027908 Page 3 of 3 C:\Documents and Settings\jayr\My Documents\JayR\Economic Development\Res-NominateList-CCRCCRD 10142008.DOC