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HomeMy WebLinkAbout028424 RES - 11/17/2009Page 1 of 3 RESOLUTION ADOPTING THE CITY OF CORPUS CHRISTI ECONOMIC DEVELOPMENT INCENTIVE POLICIES 2009 — 2011 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, adopts the City of Corpus Christi Economic Development Incentive Policies 2009 — 2011. The policies are attached to this resolution as Attachment A. SECTION 2. The Economic Development Incentive Policies 2009 — 2011 replace the following guidelines, criteria, plans, policies, and procedures: • City of Corpus Christi Chapter 380 Economic Development Program Policies and Procedures, adopted on December 9, 2006, by Resolution 027105. • City of Corpus Christi Guidelines and Criteria for Granting Tax Abatement, adopted on April 8, 2008, by Resolution 027646. • Corpus Christi Business and Job Development Corporation's Guidelines and Criteria for Granting Business Incentives, adopted on May 13, 2003, by Resolution 0252958; as amended on July 27, 2004, by Resolution 025375; on April 25, 2006, by Resolution 026757; and by Resolution April 10, 2007, by Resolution 027214. • Corpus Christi Commercial Revitalization Local Plan, adopted on October 27, 2009, by Resolution 028380. • Corpus Christi Renewal Community Tax Incentive Utilization Plan, adopted on December 17, 2002, by Resolution 025149. • Corpus Christi Tax Incentive Policy for Large Retail/Mixed Use Development and Redevelopment, adopted on June 26, 2007, by Resolution 027322. • City of Corpus Christi Texas Enterprise Zone Policy, adopted on November 13, 2007, by Resolution 027477. • Ordinance authorizing the designation of land areas located within the extraterritorial jurisdiction of the City of Corpus Christi as industrial districts and approving standard form industrial district agreement, adopted on November 26, 1980, by Ordinance 15898; as amended by Ordinances 15941 on December 17, 1980; 16129 on March 18, 1981; 16167 on April 1, 1981; 16601 on October 14, 1981; 18023 on January 14, 1984, 028424 2009-2011 Economic Development Incentive Policies -- RESOLUTION 11112009 Page 2 of 3 022092 on November 29, 1994; 022201 on 28 March 1995, 022360 on September 19, 1995; and 025703 on April 13, 2004. SECTION 3. The City Manager is directed to forward a copy of this resolution and the City of Corpus Christi Economic Development Incentive Policies 2009 — 2011 to the Executive Director, Texas Department of Economic Development. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI det�!4•A& Joe Ad ie Mayor APPROVED AS TO FORM: November 12, 2009. By: R. ,may Fining First Assistant City Attorney for City Attorney 2009-2011 Economic Development Incentive Policies -- RESOLUTION 11112009 Page 3of3 Corpus Christi, Texas / 7 of AlB'1//al4- , 2009 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla G. Leal John E. Marez Nelda Martinez Mark Scott 84 4 2009-2011 Economic Development Incentive Policies -- RESOLUTION 11112009 City of Corpus Christi Economic Development Incentive Policies 2009 - 2011 Adopted by Resolution # 028424 on November 17, 2009 TABLE OF CO1 TFN1S Section 1: Introduction to the City Page 4 Section 11: Position Statement 6 Section 111: Local Incentives 12 Tax Abatement 13 Chapter 380 Agreement 20 Tax Increment Financing 23 Public Improvement District 25 Industrial District 28 Business & Job Development Corporation (Type A) 31 Freeport Exemptions 34 Fast Track Permitting Process 36 Large Retail/Mixed Use Development & Redevelopment 38 Renewal Community 42 Development Fee Reduction/Waiver 46 Community Air Service Development Initiative 48 High Speed Connection 50 Waiver of Tap Fees for Water and Wastewater 51 Small Business Disabled Access Credit 53 Natural Gas Home Builder Rebate Program 55 Section IV: State Incentives 58 Municipal Management Districts 59 Municipal Development Districts 62 Municipal Utility Districts 65 1 Municipal Setting Designations 68 Neighborhood Empowermerr Zone 72 Texas Leverage Fund 74 North American Free Trade Agreement (NAFTA) IZ 78 Emerging Technology Fund 80 Skills Development Fund 82 Economic Development Refund 85 Industrial Revenue Bond Program 87 Section 108 Loan Guarantee Program 89 Enterprise Zones 93 Texas Enterprise Fund Program 97 Texas Industry Development Loan Program 99 Texas Preservation Trust Fund Grant Program 101 Section V: Federal Incentives 104 Brownfields Economic Development Initiative (BEDI) 105 Economic Development Initiative (EDI) 107 Economic Development Administration 109 Federal Historic Preservation Tax Incentives Program 111 New Markets Tax Credit Program 115 Section VI: Small Business Support Guidelines 117 Section VII: Maps 147 Downtown 148 Corpus Christi (North) Beach 149 Padre Island 150 -2 Renewal Communities 151 Section Vlll: Application 152 Fee Schedule 160 3 Corpus Christi is part of the Corpus Christi Standard Metropolitan Statistical Area (SMSA), which includes three counties: Nueces, San Patricia, and Aransas. Corpus Christi and the surrounding region is culturally rich and diverse and offers excellent educational opportunities, beautiful climate, land and sea based recreation, a strong economy, exceptional healthcare facilities, and affordable living. Located on the Gulf of Mexico, Corpus Christi has a warm subtropical climate providing an ideal destination for business expansion and relocation. Corpus Christi has an energetic population of over 290,000 people with a median income of $41,416 and a median age of 33 years old. As the sixth best mid-sized City for jobs (Forbes, 2009) and the Second Best City for riding out a recession (Business Weekly, 2009) Corpus Christi's economy is diversified with great potential for growth. Key drivers of the local economy are the Port of Corpus Christi, port industries, and tourism. The petrochemical industry refines over fifty percent of oil consumed in Texas. Additionally, the Port of Corpus Christi is the sixth largest U.S. port and deepest inshore port on the Gulf of Mexico. Shipping through the Port of Corpus Christi provides the advantage of a strategic central location. The Port's modern multi-purpose facilities are ideal for a variety of cargos, and the warm, arid climate creates the perfect setting for year-round operations. The City is the sixth most popular tourist destination in the state. Also located in Corpus Christi are Texas A&M University — Corpus Christi, Del Mar College, Corpus Christi Naval Air Station, and several regional medical centers. Corpus Christi and its surrounding areas are well located as a drive market to San Antonio, Austin and Houston, the Rio Grande Valley and Mexico. Several key state and federal highways connect Corpus Christi to U.S. and Mexico markets. Interstate 37; U.S. Highway 77 and 181; and Texas State Highway 44, 35, and 361 are located only miles from Corpus Christi, with direct access provided via wide, uncontested streets. The Corpus Christi regional economy continues to see growth in tourism and economic development. Coupled with a prime location along the Gulf Coast, Corpus Christi offers developers the ability to create truly remarkable and unique developments. 5 Econornic Incentive Policies Pcsition Statement & Guidelines Introduction: Corpus Christi is graced with wonderful natural resources such as a beautiful Bayfront, Padre Island, Corpus Christi Beach, great industrial base, numerous tourist related attractions and sporting events, the 6th largest port in the US, and a strong community college, as well as a four (4) year university. One of the City's top priorities is to aggressively promote and grow our community. To address this priority, the Economic Development Department revised incentive policies and identified catalyst areas for growth and development. It is our intent to provide information that is business -friendly, where you can learn about the key benefits each incentive provides, obtain eligibility criteria and an application form. Position Statement: The City of Corpus Christi (the City) is committed to: • Creation of wealth in the City and Region. • Work with Nueces County and Del Mar College to coordinate appropriate economic development incentives and projects for the City and the Region. • Recruit, retain and promote high quality development in all parts of the City and Region. • Seek ongoing improvements in the quality of life, quality of jobs and quality of community for all citizens. • Diversification of the local economy. • Support and grow existing industries. • Provide employment opportunities for unemployed and underemployed residents. • Create jobs paying salaries higher than the SMSA's average wages. • Protection of the Environment. • Recruitment and retention of good corporate citizens. • Support the incubation of emerging technology projects. These goals can be met, in Targe part, through the enhancement and expansion of the local economy. To promote growth in catalyst areas of the City, more favorable economic incentives will be provided in the following areas (see attached maps for the boundaries of these areas provided in Section VII, page 147): • Renewal Community Census Tracts (includes downtown and Corpus Christi Beach) • Padre and Mustang Island 7 • Industrial District • Any other blighted or underdeveloped area which may be identified by the City Council Objectives: • To support existing large and small primary employers and to recruit new primary employers to locate in the City/Region. • To support existing and new large and small non -primary employers to grow and prosper. • To identify and assist developers to commit, invest, and build new high quality sales, hotel/motel and ad valorem tax generating projects compatible with the City's Comprehensive Plan and demographics. • To assist landowners to develop potential office, hotel and retail sites to their highest and best use. • To reduce sales tax leakage. • To identify eligibility for incentives using the following categories: 1. Green energy projects. 2. Manufacturing (determined by appropriate NAICS codes). 3. Research and Development. 4. Engineering Services. 5. Health Care (nursing, laboratory and other related medical fields). 6. Corporate headquarters/support centers. 7. Warehousing and Distribution. 8. Tourism (venues and events that will attract no less than 50% of attendees from outside the region). 9. Retail. 10. Commercial Redevelopment. Process: The decision to grant incentives will be based on a review of each incentive application and offered only upon a clear demonstration of substantial and significant public benefit. Certain projects, particularly those requesting Texas Local Government Code Chapter 380 agreements, a Tax Increment Financing (TIF), and/or Targe retail development and redevelopment, may be required to: • Agree to a background check. 8 • Commission an economic impact study to include return on investment data. This study will be done by a firm of the City's choice at the developer's expense. • Provide financial assurance that funds will be available to finance the project if an agreement with the City is satisfactory to the developer, the lender and City. Applicants must be current in payment of ad valorem property taxes to be eligible for any incentive from the City. In reviewing a request for City incentives, the staff will consider the following: 1. Project location. 2. Size of the project based upon the investment in the site, facilities infrastructure. 3. As applicable, offered. 4. Impact on sales, property and hotel/motel taxes. 5. Potential for future expansion and increased employment. 6. Retention of existing employees. 7. Diversification of the regional economy. 8. Inclusion of disadvantaged, minority or women -owned contractors, suppliers etc. 9. Impact of project specific issues upon local infrastructure of the City. 10. Incentives which may be available from federal or state gov 11. Impact on the City's budget or other financial impact. 12. Waiver of Economic Development fees in which the competing with other localities. and number and types of jobs created, wages and benefits Local Incentives: businesses as responsibilities ernment. City may be • Tax Abatement • Chapter 380 Agreement • Tax Increment Financing (TIF) • Public Improvement District (PID) • Industrial District • Corpus Christi Business and Job Development Corporation (Type A) • Freeport Exemptions • Fast Track Permitting Process • Large Retail/Mixed Use Development and Redevelopment • Renewal Community • Development Fee Reduction/Waiver • Community Air Service Development Initiative 9 Sta • High Speed Connection • Waiver of Tap Fees for Water and Wastewater • Small Business Disabled Access Credit • Natural Gas Home Builder Rebate Program Incentives: • Municipal Management Districts (MMD) • Municipal Development Districts (MDD) • Municipal Utility Districts • Municipal Setting Designations • Neighborhood Empowerment Zone • Texas Leverage Fund • North American Free Trade Agreement (NAFTA) • Emerging Technology Fund • Skills Development Fund • Economic Development Refund • Industrial Revenue Bond Program • Section 108 Loan Guarantee Program • Enterprise Zone Program • Texas Enterprise Fund Program • Texas Industrial Development Loan Program • Texas Preservation Trust Fund Grant Program Federal Incentives: • Brownfields Economic Development Initiative (BEDI) • Economic Development Initiatives (EDI) • Economic Development Administration (EDA) Grants • Federal Historic Preservation Tax Incentive Program • New Markets Tax Credit Program Timelines: Staff will provide a prompt response to incentive requests and will make every effort to finalize incentive agreements in an expeditious manner. However, because some projects may require zoning or agreements that will require studies to be done and approval by the Corpus Christi Business and Job Development Corporation (CCBJDC) and City Council, developers are asked to work closely with staff to ensure the projects move forward in a timely manner. Compliance: All incentives will be formalized by a written agreement between the City and/or CCBJDC and the recipient business. The business will be required to meet - 10 - certain performance criteria as stipulated in the agreement. if applicable, staff will consider the following: 1. Capital investment in both real and personal property 2. Compliance with wage and medical insurance requirements 3. Compliance with applicable governments laws, rules and regulations 4. Compliance with conditions imposed by the Incentive Agreement The City reserves the right to audit a company to assure compliance with the terms and conditions of the Agreement. If performance criteria are not met, the City may discontinue the Agreement, use the claw back provision or authorize a partial payment and/or may require incentives already paid to be repaid in full or in part. Each project will be evaluated on an individual basis. During changing economic conditions which adversely impact the recipient business, the City and/or CCBJDC may consider a modification, amendment or discontinuation of the Incentive Agreement. Should this occur, the City will honor any incentive committed prior to the discontinuation of the agreement. Incentive Agreements may not be transferred, or otherwise conveyed to another party unless agreed to by the City. The City Council reserves the right to waive or modify any of these requirements or policies if it is in the City's best interest in considering project applications for incentives. THE POLICIES IN SECTION III, IV and V ARE EXECUTIVE SUMMARIES INTENDED FOR EASE OF USE BY DEVELOPERS AND BUSINESSES AND TO HIGHLIGHT THE BENEFITS AVAILABLE. AT THE END OF EACH POLICY THE FOLLOWING ARE PROVIDED: • THE ENTIRE POLICY (WHERE APPLICABLE). • APPLICATION FORM INFORMATION. • STAFF OF THE CITY'S ECONOMIC DEVELOPMENT DEPARTMENT, THE CCREDC OR OTHER APPROPRIATE ENTITY - 11 - TA X AAT FSI E,1 'HITT Policy Description: The Property Redevelopment and Tax Abatement Act, Chapter 312 of the Texas Tax Code, www.statutes.legis.state.tx.us/Docs/TX/pdf/TX.312.pdf, authorizes counties, cities and school districts to provide property tax abatement for limited periods of time as an inducement for the development or redevelopment of a property. The City of Corpus Christi (City) would like to establish certain areas for particular emphasis in offering enhanced temporary tax abatement for economic development such as the federally designated Renewal Community comprised of Census Tracts 1,3,4,5,7,10,11,13,35, and 50, Downtown, Corpus Christi (North) Beach, and Padre/Mustang Islands and any other catalyst area identified by the City Council. The City would like to provide enhanced temporary tax abatement for economic development by locally -owned enterprises building new facilities or engaged in modernization or expansion projects. The City Council reserves the right to waive or modify this policy. Eligibility Criteria: o Authorized Facilities. A Facility generally may be eligible for abatement in any area of the City if it is one of the following: Basic Industrial, Manufacturing or Service Facility Regional Distribution Center Facility Regional Telecommunications/Data Processing Center Facility Regional Visitor/Amusement Facility Petrochemical Facility A Facility located in the Renewal Community, Downtown or Corpus Christi (North) Beach or other catalyst areas identified by the City Council additionally may be eligible if it is a Multi -Family Housing Facility, a Mixed -Use Facility, or if it includes retail facilities, hotel accommodations or any other facilities as determined by the City Council on a case-by-case basis. Abatement may be granted for a New Facility or for improvements to any of the above existing facilities for the purpose of Modernization or Expansion. o Period of Abatement. Abatement may be granted effective with the January 1 valuation date immediately following the date of execution of the Agreement. Abatement may be allowed for a period of up to ten (10) years. - 13 - o Completion of Construction. (1) The completion of construction will be deemed to occur upon the earliest of the following events: A. When a certificate of occupancy is issued for the Facility (if the Facility is located within the City), B. When commercial production of a product or provision of a service is achieved at the Facility, C. When the architect or engineer supervising construction issues a certificate of substantial completion, or some similar instrument, or D. Two (2) years after the date of the Agreement. (2) The above determination may be made by the City offering the abatement, in its sole and absolute discretion, based upon the above criteria and such other factors as the jurisdiction may deem relevant. The determination of the completion of construction will be conclusive, and any judicial review of such determination must be governed by the substantial evidence rule. o Abatement Percentage. Temporary property tax abatement may be authorized for the development of a New Facility or Expansion or Modernization that meets either qualification criteria of capital investment or a qualification criteria based upon a combination of the number of new jobs created plus average salary. (1) The capital investment qualification criteria is as follows: Added Value from Capital Investment Abatement Level $2,000,000 to $10,000,000 Level 1 $10,000,001 to $50,000,000 Level 2 $50,000,001 to $150,000,000 Level 3 $150,000,001 to $500,000,000 Level 4 Over $500,000,000 Level 5 The qualification for abatement by capital investment shall be based upon the added value of Eligible Property as reflected on the tax rolls by the Nueces County Appraisal District. - 14 - (2) The combination of new jobs and salary criteria is as follows: Provided that, obtaining temporary tax abatement based solely on the creation of such new jobs shall be further conditioned on the requirement for the improvement or repair of property in order to meet the minimum requirements of the Act. (3) Any New Facility, Expansion, Modernization that is located within the Renewal Community, Downtown, Corpus Christi (North) Beach or Padre/Mustang Island and any other catalyst area identified by the City Council or that is a Locally -Owned Facility shall be increased by one level above the standards set forth above, with a minimum level of 3 for any such project. Further, if a Facility qualifies under both criteria, the Facility will be increased by one level above the higher level of qualification. (4) Any New Facility, Expansion, Modernization that will utilize the Leadership in Energy and Environmental Design (LEED) Green Building Rating System may be increased at least one level above the qualifying level for abatement. (5) Abatement for a small business facility providing Added Value of at least $250,000 may be considered within the Renewal Community, Downtown, Corpus Christi (North) Beach or Padre/Mustang Island and any other catalyst area identified by the City Council or as a Locally -Owned Facility by the City Council on a case-by-case basis. (6) Upon compliance with the above criteria, the percentage of tax abated may be in accordance with the following schedule, with 100% abatement in each case during the construction period of up to two years: - 15 - Average Salary Up to $50.000 Average Salary $50,001 to $70,000 Average Salary Over $70,000 20 to 99 New Jobs Level 1 Level 2 Level 3 100 to 199 New Jobs Level 2 Level 3 Level 4 200 or more New Jobs Level 3 Level 4 Level 5 Provided that, obtaining temporary tax abatement based solely on the creation of such new jobs shall be further conditioned on the requirement for the improvement or repair of property in order to meet the minimum requirements of the Act. (3) Any New Facility, Expansion, Modernization that is located within the Renewal Community, Downtown, Corpus Christi (North) Beach or Padre/Mustang Island and any other catalyst area identified by the City Council or that is a Locally -Owned Facility shall be increased by one level above the standards set forth above, with a minimum level of 3 for any such project. Further, if a Facility qualifies under both criteria, the Facility will be increased by one level above the higher level of qualification. (4) Any New Facility, Expansion, Modernization that will utilize the Leadership in Energy and Environmental Design (LEED) Green Building Rating System may be increased at least one level above the qualifying level for abatement. (5) Abatement for a small business facility providing Added Value of at least $250,000 may be considered within the Renewal Community, Downtown, Corpus Christi (North) Beach or Padre/Mustang Island and any other catalyst area identified by the City Council or as a Locally -Owned Facility by the City Council on a case-by-case basis. (6) Upon compliance with the above criteria, the percentage of tax abated may be in accordance with the following schedule, with 100% abatement in each case during the construction period of up to two years: - 15 - Year Level 1 Level 2 Level 3 Level 4 Levels Year 1* 100% 100% 100% 100% 100% Year2* 100% 100% 100% 100% 100% Year 3 100% 100% 100% 100% 100% Year4 75% 100% 100% 100% 100% Year5 50% 75% 100% 100% 100% Year6 25% 50% 75% 100% 100% Year 7 25% 50% 75% 100% Year 8 25% 50% 75% Year 9 25% 50% Year 10 25% *The period of construction may extend up to two years. (7) The percentage of abatement provided each year under the Agreement shall be based upon the information provided as of January 1 of each year after the completion of construction; provided that, for a project that completes construction after June 30 the calculation date shall commence on January 1 of the second year after completion of construction. A. For projects qualifying based on capital expenditures creating Added Value, the percentage shall be determined based on the Added Value established for that year (the actual amount of abatement may vary from year to year based upon property valuations and employment levels). B. For projects qualifying based on the number of new jobs and average salary, the percentage shall be determined based on the employment information provided. (8) During the period of construction of the Facility and extending until the first calculation date provided above, the Owner may receive an abatement percentage based upon the criteria set forth in the Owner's application for abatement approved by the governing body of the City. The construction period may last up to two years. A. Economic Qualification. In order to be eligible for tax abatement, the planned improvement: - 16 - (1) Must create no later than the January 1 following the completion of construction and maintain throughout the remainder of the term of the Agreement, the required number of permanent full-time jobs in the City of Corpus Christi; or (2) Must be determined by the City Council not to adversely affect competition in the local market with established local businesses in a manner that exceeds the economic benefit of the project. o Compliance Requirements. (1) Creation of New Value. Abatement may only be granted for the additional value of eligible property improvements made subject to and listed in an Agreement between the City and the property owner and ground lessor (if applicable), subject to such limitations as said jurisdiction may require. The economic life of the improvements must exceed the term of the Agreement. (2) Eligible Property. Abatement may be extended to the value of the improvements to real property, including buildings, structures, fixed or movable machinery and equipment (excluding motor vehicles, vessels and aircraft), and site improvements, plus office space and related improvements necessary to the operation and administration of the Facility together with appreciation in land values for projects in the Renewal Community, Downtown or Corpus Christi (North) Beach and any other catalyst area identified by the City Council. (3) Ineligible Property. The following types of property are fully taxable and ineligible for abatement: inventories; supplies; vehicles; vessels; aircraft; deferred maintenance; improvements for the transmission of electrical energy not wholly consumed by a New Facility, Modernization or Expansion; or improvements to real property which have an economic life of less than 15 years; unless any of the above types of property are specifically authorized by the City. (4) Taxability. From the execution of the Agreement to the end of the abatement period, taxes will be payable as follows: A. The value of Ineligible Property is fully taxable; B. The Base Year Value of existing Eligible Property as determined each year is fully taxable; - 17 - C. The Added Value of new Eligible Property is taxable in the manner described above: and D. The Added Value of rew property not related to the "New Facility" is fully taxable. (6) Environmental and Worker Safety Qualifications. In determining whether to grant a tax abatement, consideration will be given to compliance with all state and federal laws designed to protect human health, welfare, and the environment ("environmental laws") that are applicable to facilities in the State of Texas owned or operated by the owner of the facility or lessee, its parent, subsidiaries and, if a joint venture or partnership, to every member of the joint venture or partnership ("applicants"). Consideration may also be given to compliance with environmental and worker safety laws by applicants at other facilities within the United States. (6) Tax Increment Reinvestment Zones (TIRZ). Projects located within a TIRZ must be evaluated to determine how any Tax Abatement will impact the zone and the zone's financing plan. How to Apply: o Written Application. Any present or potential owner of taxable property may request tax abatement by filing a written application with the City Manager of the City, if such property is within the City limits. o Contents of Application. The application shall consist of a completed application form accompanied by: a general description of the new improvements to be undertaken; a descriptive list of the improvements for which abatement is requested; a list of the kind, number and location of all proposed improvements of the property; a map and property description; and a time schedule for undertaking and completing the proposed improvements. In the case of a Modernization or Expansion project, a statement of the assessed value of the Facility, separately stated for real and personal property, must be given for the tax year immediately preceding the application. The application form may require such financial and other information as the City deems appropriate for evaluating the financial capacity of the City and other relevant factors of the applicant. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. The City shall not grant any incentive unless the business submits a full and complete application and provides additional information as may be requested. - 18 - 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. An application fee is based on a sliding scale and can be viewed on pg. 90 in the fee schedule. The fee must be paid in the form of a check or money order and made payable to the City of Corpus Christi, Texas. Additional Resources: Development Services www. cctexas. com/developmentservices Corpus Christi Regional Economic Development Corporation www.ccredc.com - 19 - CHAP ' _1 ER 380 ECC TOM C DFVFLOPMENT PROGRA:M`' Policy Description: The City of Corpus Christi will, on an individual basis, give consideration to providing economic incentives to an applicant in accordance with the policies and procedures as authorized by Chapter 380 of the Texas Local Government Code www.statutes.legis.state.tx.us/DocsiLG/pdf/LG.380.pdf. The governing body may 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 City, to promote local economic development and stimulate business and commercial activity. Priority will be given to projects which are in Catalyst Areas. Recipients who are granted 380 Economic Development benefits are strongly encouraged to support the local community with cash contributions, volunteer support and in-kind services. In particular, the City seeks support for the downtown area, arts and cultural projects and community organizations. Moreover, for retail projects, consideration must be given to small local businesses in the form of reduced rents or other financial support on the project site. The City Council reserves the right to waive or modify this policy. Eligibility Criteria: o The following are required: (1) Commission economic impact study; (2) Agreement to background check; (3) Submittal of letter of financial assurance. o To be considered for incentives under the Chapter 380 Economic Development Program, a project must at least meet the following minimum requirements: (1) The Project: A. Will result in a substantial capital investment or increased taxable value for the City in real and business personal property (excluding inventory and supplies); or B. Will result in the creation and/or retention of full-time permanent jobs and each job shall pay at least a "living wage." For the purposes of this program "living wage" shall mean that annual amount determined - 20 - by the U.S. Department of Health and Human Services for the Lower 48 states being at the poverty level for a family of four, divided by 2,080 hours per year(http:llaspe.hhs.govioovertyt09poverty.shtml); or C. Will result in substantial increase of sales tax revenue. (2) In addition, the project A. Will make a unique or unequaled contribution to development or redevelopment efforts in Catalyst Areas of Corpus Christi, due to its magnitude, significance to the community or aesthetic quality; or B. Will enhance the City's fiscal ability to provide high quality municipal services for the safety, comfort and enjoyment of Corpus Christi residents; or C. Will utilize the Leadership in Energy and Environmental Design (LEED) Green Building Rating System for development and redevelopment projects. o A Project shall not be eligible for incentives under these policies and procedures if a building permit has been issued for the project prior to making application in accordance with these policies and procedures, except a project providing job retention as set forth in (1).B. above o Incentives provided in accordance with these policies and procedures will be provided only to the extent that the revenue realized by the City and attributable to a project exceeds a minimum amount established by the agreement. The public benefit or amount of revenue realized by the City and attributable to the project must be commensurate with the value of any incentives granted under this program. How to Apply: An applicant may be required to provide additional information to show compliance with minimum Program requirements. If City staff determines minimum Program requirements have been met, City staff shall prepare and present a proposed Agreement with the applicant to the City Council. The City Council may consider the proposed Agreement and may take action on the proposal as it deems appropriate. Nothing in these policies and procedures and nothing in the application form and process shall create any property, contract, or other legal right to have the City Council consider or grant incentives. -21 - Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Eoonomic Development Office at (361) 826-3850 to request the application or visit www.cctexas.comleconomicdevelcpment to download the application. The City shall not grant any incentive unless the business submits a timely and complete application that 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. An application fee of $5,000 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. Additional Resources: Development Services www.cctexas.com/developmentservices Corpus Christi Regional Economic Development Corporation www.ccredc.com - 22 - TAX INC M :I 1N T E I yTAN ( it` G Policy Description: Described in Chapter 311 of the Texas Tax Code, www.statutes.legis.state.tx.us/Docs/TX/pdf/TX.311.pdf, Tax Increment Financing (TIF) is a tool that local governments can use to publicly finance needed public and structural improvements and enhanced infrastructure within a defined area. These improvements usually are undertaken to improve the economic condition of a designated area, to promote the viability of existing businesses and to attract new commercial enterprises to the 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. Specifically, 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. The additional tax revenue that is received from the affected properties is referred to as the tax increment. Each taxing unit determines what percentage of its tax increment, if any, will be committed to the repayment of the costs of financing the public improvements. Priority will be given to projects which are in Catalyst Areas. Recipients who are granted Tax Increment Financing are strongly encouraged to support the local community with cash contributions, volunteer support and in-kind services. In particular, the City seeks support for the downtown area, arts and cultural projects and community organizations. Moreover, for retail projects, consideration must be given to small local businesses in the form of reduced rents or other financial support on the project site. The City may consider Tax Abatement in TIF zones, however, an evaluation will be done to ensure the granting of the abatement will not impair the financing of the TIF development Eligibility Criteria: o The following are required: (1) Commission economic impact study; (2) Agreement to background check; (3) Submittal of letter of financial assurance. o The program is designed strictly for public improvements. - 23 - o The program encourages redevelopment and new develop!, ient. o Payment of the project is dependant upon the generation of future tax revenues. o A City may not create a reinvestment zone if: (1) More than 10 percent of the property in the proposed zone, excluding property that is publicly owned, is used for residential purposes; or (2) The total appraised value of taxable real property in the proposed zone and in existing reinvestment zones exceeds 15 percent of the total appraised value of taxable real property in the City and in the industrial districts created by the City. How to Apply: Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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. An application fee of $5,000 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. Additional Resources Development Services www.cctexas.com/developmentservices -24- IMPR.OVEMEN1 DISTRICTS Policy Description: Described in Chapter 372 of the Texas Local Government Code, www.statutes.legis.state.tx.us/DocsiLG/pdf/LG.372.pdf, Public Improvement Districts (PIDs) are created by a City and authorized by the State of Texas to provide limited special services and improvements above and beyond what is normally provided by the local jurisdiction. The purpose of a PID is to encourage and increase the likelihood of new businesses taking stake in certain locales. This may also include park, recreation, and cultural improvements or creation or improvements of pedestrian malls. PIDs are funded by property owners inside the district by paying special property assessments into a fund that is administered by an advisory board. Generally, the City Council overseeing the PID will establish and approve a five-year plan that may be renewed in the future. Eligibility Criteria: o A City may initiate a district after it receives a petition requesting the establishment of a Public Improvement District. o A signed petition is required before the establishment of the PID is final. o The funds raised are provided by those most directly affected by the improvements. o Requires a majority of property owners in the area to agree on a tax increase. o The amount of revenue to be generated.is directly related to the available taxable property in the area. There are no additional state funds added to the revenue. o The uses of the fund are restricted to items related to infrastructure improvements. How to Apply: o A petition for the establishment of a public improvement district must state: (1) The general nature of the proposed improvement; (2) The estimated cost of the improvement; - 25 - (3) The boundaries cf the proposed assessment district; (4) The proposed method of assessment, which may specify included or excluded classes of assessable property; (5) The proposed apportionment of cost between the public improvement district and the City or county as a whole; (6) Whether the management of the district is to be by the City or county, the private sector, or a partnership between the City or county and the private sector; (7) That the persons signing the petition request or concur with the establishment of the district; and (8) That an advisory body may be established to develop and recommend an improvement plan to the governing body of the City or county. o The petition is sufficient if signed by: (1) Owners of taxable real property representing more than 50 percent of the appraised value of taxable real property liable for assessment under the proposal, as determined by the current roll of the appraisal district in which the property is located; and (2) Record owners of real property liable for assessment under the proposal who: A. Constitute more than 50 percent of all record owners of property that is liable for assessment under the proposal; and B. Own taxable real property that constitutes more than 50 percent of the area of all taxable real property that is liable for assessment under the proposal. o The petition may be filed with the City Secretary or other officer performing the functions of the City Secretary. o If a petition that complies with this subchapter is filed, the City may make findings by resolution as to the advisability of the proposed improvement, its estimated cost, the method of assessment, and the apportionment of cost between the proposed improvement district and the City or county as a whole. - 26 - o Before holding the hearing required by Section 372.009, the governing body of the City may use the services of municipal employees, the governing body of the county may use the services of county employees, or the governing body of the City or county may employ consultants to prepare a report to determine whether an improvement should be made as proposed by petition or otherwise or whether the improvement should be made in combination with other improvements authorized under this subchapter. The governing body may also require that a preliminary estimate of the cost of the improvement or combination of improvements be made. o Public improvement district may be established and improvements provided by the district may be financed under this subchapter only after the governing body of the City or county holds a public hearing on the advisability of the improvement. Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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. Additional Resources: Development Services www.cctexas.com/developmentservices - 27 - I T U ST IAT , DISTRICT Policy Description: Described in Chapter 42 of the Texas Local Government Code, www.statutes.legis.state.tx.us/Docs/LGipdf/LG.42.pdf, the Industrial District contractually protects industries located in the district from annexation and City requirements such as permitting and platting. The Contract provides a platform for the City and Industry to negotiate a payment to the City in lieu of taxes. In addition, the contract offers an opportunity for the business to obtain fire protection from the City. Eligibility Criteria: o The governing body of a City may designate any part of its extraterritorial jurisdiction as an industrial district and may treat the designated area in a manner considered by the governing body to be in the best interests of the City. o The governing body may make written contracts with owners of land in the industrial district: (1) To guarantee the continuation of the extraterritorial status of the district and its immunity from annexation by the City for a period not to exceed 15 years; and (2) With other lawful terms and considerations that the parties agree to be reasonable, appropriate, and not unduly restrictive of business activities. (3) The City will utilize the standard form Industrial District Agreement as amended by Ordinance 15898, authorizing the City Manager, or designee, to execute Industrial District Agreements based on the revised standard form and to file the Industrial District Agreements in the official records of the County where the affected land is located. Benefits: Properties in the Industrial District pay a reduced rate, in lieu of taxes, as shown below: o Payment, in lieu of taxes, at 100% of the assessed land value. o Improvements: - 28 - (1) Less than $3,000,000 cumulative value: 60% of normal City tax. (2) More than $3,000,000 cumulative value: 60%, taxed in incremental amounts until 60% cap is reached Year 1 6% Year 2 12% Year 3 19% Year 4 26% Year 5 34% Year6 42% Year 7 50% Year 8 58% Year 9 60% Year 10 60% o Land in the Industrial District is currently protected from annexation for ten years. o Zoning/Permitting: (1) Businesses in the Industrial District are exempt from zoning and permitting requirements. In addition, platting may be waived if the seller submits for approval by the City Council a site plan, both the buyer and seller enter into agreement that if buyer's use of the property materially changes platting shall be required and seller remains solely responsible for any payments in lieu of taxes unless the buyer enters into a supplemental Industrial District contract with the City. How to Apply: Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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. - 29 - 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 cf said informaticn. 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. An application fee of $500 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. Additional Resources: Development Services www.cctexas.com/developmentservices Corpus Christi Regional Economic Development Corporation www.ccredc.com :)USE\ ESS JOB FVFLCP 'TN1 ` CORPORATION Policy Description: Described in Chapter 504 of the Texas Local Government Code, www.statutes.leqis.state.tx.us/Docs/LG/pdf/LG.504. df, the Corpus Christi Business & Job Development Corporation (CCBJDC) gives local communities the ability to adopt optional local sales and use tax as a means of improving the economic health and prosperity of their citizens. On November 5, 2002, residents of the City of Corpus Christi overwhelmingly passed Proposition 2: New and Expanded Business Enterprises, which authorize the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent (1/8th cent) to be imposed for 15 years. The City Council reserves the right to waive or modify this policy Eligibility Criteria: o Under Proposition 2 and as required by Ordinance 024952, funds approved for the promotion and development of new and expanded business enterprises can only be used for the following projects and not others: (1) Education/Skills Development. These funds will be used to make grants to companies and organizations to provide training, retraining and education to insure the knowledge and skills required for the jobs of the future are in place. (2) Business Development/Incubation. These funds will be used to develop programs and facilities that assist small and start-up companies that have the ability to produce jobs for the future. (3) Jobs. These funds will be used to assist companies in the creation of meaningful, wealth producing jobs (jobs that bring in dollars from outside of the community) in Corpus Christi. Funds will be available to both existing and new companies. o Business Incentives Authorized (1) Incentives authorized for Large Employers: A. Land, facilities, equipment & infrastructure grants; B. Loan participation/guarantees; C. Direct low interest loans; - 31 - 0. Rent subsidies; E. Relocation and moving expense grants; F. Job training grants/loans; and G. Business incubation activities. (2) Incentives authorized for Small Business: A. Small Business start up grants/loans; B. Business Incubation grants/loans; and C. Business Incubator development. o Wage Requirement: In order to count as a job under an Agreement, the job shall pay at least a living wage." For the purposes of this provision, living wage shall mean that annual amount determined by the U.S. Department of Health and Human Services for the Lower 48 States being at the poverty level for a family of four, divided by 2,080 hours per year (http://aspe.hhs.gov/poverty/09poverty.shtml). In determining if this requirement is met, the Board may also consider other compensation factors or employee benefits that enhance the employees' compensation packages as a whole. Accordingly, the Corporation, through its Project Agreement with the City, may adjust the living wage target under these Guidelines and Criteria and insert a specific target in each Agreement to govern the incentive offered. With regard to job training, a job shall pay at least an amount determined by the Act in order to count as a job under the Agreement. In determining an incentive based on new jobs, the following matrix shall be considered. New Gross Payroll Incentive per New Job $30,000 per new job Up to $750 per new job for training $30,000 to $40,000 per new job $751 to $5,000 per new job $40,001 to $50,000 per new job $5,001 to $10,000 per new job >$50,000 per new job $10,001 + per new job How to Apply: Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. - 32 - Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit WWW. cctexas.comieconcmicdevelopment to download the application. 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. An application fee of $100 — Small Businesses and $1,000 — Large (Primary) Businesses 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. Additional Resources: Development Services www.cctexas.com/developmentservices Corpus Christi Regional Economic Development Corporation www.ccredc.com FRFEPO.R t EXFMPTION Policy Description: Described in Chapter 11 of the Texas Tax Code, www.statutes.legis.state.tx.us/Docs' T Xipdf/TX.11.pdf, this incentive is designed to exempt some or a company's entire inventory from property taxes. The exemption is subtracted from the market value of the inventory or property determined under Section 23.12 to determine the taxable value of the inventory or property. The chief appraiser shall determine the percentage of the market value of inventory or property owned by the property owner in the preceding calendar year that was contributed by Freeport goods. The chief appraiser shall apply that percentage to the market value of the property owner's inventory or property for the current year to determine the appraised value of Freeport goods for the current year. Property that meets the requirements of Article VIM, Sections 1-j(a)(1) and (2), of the Texas Constitution and that is transported outside of this state not later than 175 days after the date the person who owns it on January 1 acquired it or imported it into this state is Freeport goods regardless of whether the person who owns it on January 1 is the person who transports it outside of this state. Eligibility Criteria: o To be eligible, property must be assembled, stored, manufactured or fabricated locally and then exported out of the state within 175 days after the property was acquired or imported into the state. How to Apply: To receive an exemption, a person claiming the exemption must apply for the exemption. To apply for an exemption, a person must file an exemption application form with the chief appraiser for each appraisal district in which the property subject to the claimed exemption has situs. www.ncadistrict.com/ To receive an exemption, the eligibility for which is determined by the claimant's qualifications on January 1 of the tax year, a person required to claim an exemption must file a completed exemption application form before May 1 and must furnish the information required by the form. A person who after January 1 of a tax year acquires property that qualifies for an exemption must apply for the exemption for the applicable portion of that tax year before the first anniversary of the date the person acquires the property. For good cause shown, the chief appraiser may extend the deadline for filing an exemption application by written order for a single period not to exceed 60 days. - 34 - The comptroller, in prescribing the contents of the application form for each kind of exemption, shall ensure that the form requires an applicant to furnish the information necessary to determine the validity of the exemption claim. The form must require an applicant to provide the applicant's name and driver's license number, personal identification certificate number, or social security account number. The comptroller shall include on the forms a notice of the penalties prescribed by Section 37.10, Penal Code, for making or filing an application containing a false statement. The comptroller shall include, on application forms for exemptions that do not have to be claimed annually, a statement explaining that the application need not be made annually and that if the exemption is allowed, the applicant has a duty to notify the chief appraiser when the applicant's entitlement to the exemption ends. Additional Resources: Development Services www.cctexas.com/developmentservices Corpus Christi Regional Economic Development Corporation www.ccredc.com - 35 - .FAST '.I RAC . P FMI 1 -TING PROCESS Policy Description: The City of Corpus Christi is dedicated to progressive development and is committed to streamlining and simplifying, where possible, their governmental permitting processes to accommodate developing and expanding businesses' need for fast, efficient action to make this an attractive climate for such businesses. The City Council reserves the right to waive or modify this policy Eligibility Criteria: o Services are available to any project; however, priority will be given to large and small primary employers. o Services may include all aspects of development: zoning, platting, right of way easement closures, infrastructure construction, special agreements, building permitting and construction. How to Apply: o Process begins by scheduling an Early Assistance Meeting (no Fee). o Project manager is assigned (no Fee). o Expedited and concurrent permit processing (i.e., zoning, platting, building permits, etc.) (no surcharges for expediting services) o Multi -disciplinary team is assembled to review project scope and needs with developer. o Project critical path is created, timelines and fees are calculated. o Fast Track reviews of plans are available at a higher fee. (1) Review of plans submitted under initial permit application is completed in 5 to 10 working days, depending on project complexity. (2) Review of plan revisions is completed in 2 to 3 working days. (3) Inspection services are available for extended contractor work days or work weeks, upon request. (4) Increased fees will be based on overtime costs plus administrative overhead. - 36 - Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.comieconomicdevelopment to download the application. Meetings may be scheduled by phone at (361) 826-3569 or through the Development Services web page at: www.cctexas.com/develoomentservices 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. The fee must be paid in the form of a check or money order and made payable to the City of Corpus Christi, Texas. Additional Resources: Corpus Christi Regional Economic Development Corporation www.ccredc.com - 37 - LARG IH RIE 1 AIL 1 MIXED US F D FY , ,OP' r1EN .1 87, RED tH IFLOPMF1\ 1 Policy Description: Approved by the City of Corpus Christi on June 2a, 2007, Resolution Number 027322, Large Retail/Mixed Use Development & Redevelopment applies to large retail development and redevelopment and mixed use projects, and 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. The City will only utilize this incentive for projects occurring in areas targeted for growth, redevelopment or designated as blighted and located in census tracts which are part of the Renewal Community program or Corpus Christi (North) Beach and Padre/Mustang Islands. The City may consider the use of Tax Increment Financing (TIF), a Public Improvement District (PID), a 380 Agreement and/or any appropriate financing vehicle to provide tax incentives for eligible projects. Priority will be given to projects which are in Catalyst Areas. Recipients who are granted a Large Retail/Mixed Use Development & Redevelopment incentive are strongly encouraged to support the local community with cash contributions, volunteer support and in-kind services. In particular, the City seeks support for the downtown area, arts and cultural projects and community organizations. Moreover, for retail projects, consideration must be given to small local businesses in the form of reduced rents or other financial support on the project site. The City Council reserves the right to waive or modify this policy Eligibility Criteria: o The following are required: (1) Commission economic impact study (2) Agreement to background check (3) Submittal of letter of financial assurance. o Applicants must, at a minimum, satisfy the following requirements (each development/redevelopment project will be considered on a case by case basis): (1) Generate a positive economic impact to include employment, sales tax revenues to the City, ad valorem taxes, and personal property - 38 - 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. (2) Describe how the project will contribute to revitalization activities in the zone or in the surrounding area of the community. (3) Describe how the input of nearby neighborhood residents and businesses will be or has been solicited in the planning process. (4) 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. (5) 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. (6) 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. (7) Agree that only new tax increment revenue generated by the facility will be used for payment of the incentives. (8) Agree that any sales tax revenues generated by operations which relocate with the same or Tess 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 the Gross Floor Area which represents the increase shall not be considered part of the relocation but shall be treated as new store sales. (9) Demonstrate commitment to the quality of the development, the project area, and project completion. (10) Job creation is required and will be considered on a case by case basis. (11) Develop a "destination retail or mixed use" facility. (12) In order to qualify as a large retail and/or mixed use development, the project must offer a facility value of no less than $10,000,000. (13) Demonstrate that the project reduces retail leakage or captures - 39 - new retail sales not currently in the City. (14) Establish a re'ccatien percentage no greater that 30% based on square footage at the onset of discussion with the City and for inclusion in the tax incentive agreement. if 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 that 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. (15) M/WBE 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 M/WBE goals and commitments must be met: A. Any project costs for infrastructure improvements that will be contemplated under a tax incentive agreement and/or TIF project plan will require the applicant to utilize local contractors and suppliers with a minimum qoal of 40% for locally purchased labor and supplies. B. A minimum goal of 25% is also required for the use of historically -underutilized businesses (minority and women - owned enterprises). C. 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. How to Apply: Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. The City shall not grant any incentive unless the business submits a full and complete application and provides additional information as may be requested. - 40 - 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. Additional Resources: Development Services www.cctexas.com/developmentservices Corpus Christi Regional Economic Development Corporation www.ccredc.com -41 - RENR.EN.LWAL COMMUNITY P elicy Description: A Renewal Community (RC) is defined as a distressed area that the Federal government has targeted for development where businesses are eligible for tax incentives. The incentives are provided to spur business and job growth in communities which have had high levels of poverty and unemployment. Businesses can claim the tax incentives by operating in and hiring residents of these areas. Tax incentives consist of wage credits and Commercial Revitalization Deductions (CRDs) as shown below: Wage Credits: CRDs $1,500 per year per RC resident employed $2,400 per year work opportunity tax credit for each eighteen (18) to twenty-four (24) year-old RC resident hired. Every year, the City of Corpus Christi is allocated $12 million in CRDs to disperse among Renewal Community projects. These funds will be allocated based upon the following percentages: 85% or $10,200,000 for Targe projects and 15% or $1,800, 000 for small projects. A single business can receive up to $10 million for building or rehabilitating commercial property in any one of the ten (10) renewal community census tracts. Eligibility Criteria: Applications must meet the following_criteria: o The expenditures of the project meet the statutory requirement of the allowable Commercial Revitalization expenditures. o The CRD deduction is less that $10 million. o The project will add value to the existing tax base. o The project proposes to directly or indirectly create or retain a minimum of ten (10) permanent full-time jobs in the Renewal Community o The Project is located in one of the following Renewal Community census tracts: 1,3,4,5,7,10,1113,35,50. - 42 - o The project is eliminating slum or blight in a particular area within the Renewal Community. o The Project must be completed by the end of the second calendar year in which the allocation is made. The CRD can be applied to the depreciable costs of a new building or the costs associated with an existing building that is substantially rehabilitated. o If there are multiple project applications, the following value scale will be used: (1) Large Project Selection Priorities A. The project provides residential units in the Downtown area. B. The project redevelops a vacant building or lot in the Downtown area. C. The project is located in the Industrial District with significant job creation at wages exceeding $50,000 per year per job. D. The project provides for significant job creation at wages exceeding $40,000 per year per job. E. Projects may be given full point value if the capital investment exceeds $10 million. F. Project is a public/private partnership with the City and/or is a project of the Corpus Christi Regional Economic Development Corporation (CCREDC). G. The following chart provides a point value for scoring Large projects: Large Project Selection Criteria Point Value Residential in Downtown Area, CC (North) Beach 30 Redevelopment in Downtown Area, CC (North) Beach 25 Industrial District Job Creation $50,000 + per year per job 20 Job Creation at $40,000 + per year per job 15 Project Investment exceeds $10 million 10 (2) Small Project Selection Priorities A. The project provides residential units in the Downtown area. - 43 - B. The project redevelops a vacant building or lot in the Downtown area. C. Each job shall pay at least a :'living wage.;' D. The project creates between 2-10 jobs. Projects may be given full point value if job creation is 10. E. Projects may be given full point value if the capital investment is $1 million. F. The following chart provides a point value for scoring Small projects: Small Project Selection Criteria Point Value Residential in Downtown Area, CC (North) Beach 30 Redevelopment in Downtown Area, CC (North) Beach 25 Job Creation — each job will pay at least a "living wage" 20 Project creates between 2-10 jobs 15 Project Investment is $1 million 10 How to Apply: The Renewal Community Commercial Revitalization Deduction program allows taxpayers to deduct 50 percent of their qualified expenditures in the year the building is placed in service or deduct qualified expenditures depreciated over a 120 -month period, beginning with the month in which the building is placed in service. This is not a grant, loan or funding source. The program certifies allocations of commercial revitalization deductions to the taxpayer. The taxpayer is responsible for filing the deduction on their Federal income tax return. Please consult your tax advisor to discuss this program and how you can benefit. Criteria: o Must be located in Census Tract 1,3,4,5,7,10,11,13,35, or 50. o The building and its structural components will be placed in service by the taxpayer in the Renewal Community or substantially rehabilitated by the taxpayer and is placed in service after the rehabilitation in the Renewal Community. o The expenditures for the project meet the statutory requirement for the allowable Commercial Revitalization expenditures. o Request of allocation is less that $10 million. - 44 - o The applicant is current on monies due to the Texas Comptroller of Public Accounts and the Texas Workforce Commission has confirmed that the applicant is current on unemployment insurance tax. o The applicant demonstrates the likelihood that the project can be completed within the time required by law to claim the CRD. o The applicant has the financial support needed to complete the project. o The applicant has a contract on the property on which the project will be rehabilitated or constructed or has ownership title to the property. Applications should be submitted to: Irma Caballero Economic Development City of Corpus Christi 1201 Leopard Street, 5th Floor Corpus Christi, TX. 78401 Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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. Additional Resources: Development Services www.cctexas.com/developmentservices - 45 - FVE_LOI ? EN T FFE : F;TJ l I / WAIVER Policy Description: The Economic Development Office, in coordination with Development Services; may offer reduced development fees or a waiver of development fees to these projects which meet the specific eligibility criteria. In an effort to create economic growth in specific catalyst areas the reduction or waiver of development fees will be utilized as an incentive. The identified catalyst areas are: o Renewal Community Census Tracts (includes downtown and Corpus Christi (North) beach) o Padre/Mustang Islands o Other blighted or underdevelopment areas identified by the City Council The City Council reserves the right to waive or modify this policy. Eligibility Criteria: o Projects must be determined as 4A eligible projects; and o Projects must provide proof of job creation. Benefits: o Projects locating in one of the identified catalyst areas may receive a 50% reduction of the following development fees: A. Plan Review B. Building Permit C. Platting Ordinance D. Zoning Ordinance o Any Targe or small primary employer recommended for incentives by the Corpus Christi Regional Economic Development Corporation may have its development services fees waived. A waiver of Penalty fees, due to City error, may be given to any project. A waiver of fees will be made for projects in which the City is competing with other localities. - 46 - All other projects located throughout the City may be eligible for up to a 25% reduction of specified development fees based on the total benefit to the City including total capital investment, number of jobs created, average annual salary per job, and 10 -year total of property and sales taxes from the facility. The Economic Development Office may provide a reduction or waiver of Application Fees for those projects locating in an identified catalyst area. Multi- family housing projects may not be eligible. How to Apply: Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopemnt to download the application. You may also contact the Development Services Department at (361) 826-3569 or visit www.cctexas.com/developmentservices for more information. 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 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 Additional Resources: Corpus Christi Regional Economic Development Corporation www.ccredc.com - 47 - COMMUNITY ATR SER J H T' N TTA 1 IV Policy Description: The purpose cf the Community Air Service Development Initiative (CASDI) is to encourage new non-stop air service and competition at the Corpus Christi International Airport (CRP) by providing temporary assistance to an airline: 1) beginning new nonstop service, 2) providing an increase in aircraft seating configuration by 25 -percent or, 3) introducing a first class seating product to the market. For purposes of this incentive program, an increase in aircraft seating configuration of 25 -percent or the introduction of a first class seating product shall be referenced as "aircraft upgrade." Eligibility Criteria: CASDI is available to any airline meeting the defined criteria commencing August 1, 2009. The program does not apply to any subsequent carrier that offers service to the same market unless it is an aircraft upgrade. There are no limits to the number of new destinations that the program applies to for any individual carrier. o Length of program: CASDI length is negotiable based on the size of aircraft, frequency, and any other applicable factors as determined by the Airport Director. o Components: Any airline that introduces new non-stop service or an aircraft upgrade will be eligible to receive a per-enpianement (revenue passenger) credit, for a temporary period, on the new non-stop service or aircraft upgrade. o Marketing: Any airline that introduces new non-stop service or an aircraft upgrade shalt be eligible to receive marketing support from the airport. All media plans and other marketing efforts must be approved by the Airport Director in order to qualify for payment. o The new non-stop service must be one that has not been provided within the previous twelve (12) months. o Market incentives shall be implemented in a manner, in addition to promoting the new or improved service, shall also promote the Corpus Christi International Airport. - 48 - Payments and Funding: All activity associated with the new service or upgrade in aircraft type will be included in the calculation of rates and charges. The Airport Director is authorized to administer the CASDI within the funding limitations established by the airport's budget, using non -airline revenues, as approved by the Corpus Christi City Council. How to Apply: Applicants seeking incentives must contact the Corpus Christi international Airport at (361) 289-0171 or www.corpuschristiairport.com. Additional Resources: Economic Development www.cctexas.com.economicdevelopment - 49 - SIGH Sl - FD COIN T E C 1 ISO 1 Policy Description: The City of Corpus Christi owns one of the most advanced telecommunications infrastructures in the country. The City is served by a 144- sq. mi. mesh Wifi network, and has more than 3,500 strand miles of fiber-optic cabling installed. Use of these facilities may be available as an incentive under certain circumstances. We can trade facilities use for services and can engage in cost- sharing activities for new installations. We may have other options available so long as we do not violate state laws that prevent us from selling telecommunications services directly to the public or commercial concerns. Eligibility Criteria: This incentive may be available to any project after review and consideration from the City Council. How to Apply: For more information regarding this incentive policy please contact the MIS department at (361) 826-3735 or visit www.cctexas.com/MIS/. Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopemnt to download the application. 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 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 Additional Resources: Economic Development www.cctexas.com.economicdevelopment - 50 - WAIVER OF TAP 1HS FOR. WA I F R A1\ n WAST ' FWAl' FR Policy description: As established by the WaterNVastewater Department, a waiver of tap fees for water and wastewater can be eligible for infill lots located in designated areas throughout the City with existing infrastructure. This policy is for existing residential lots in impoverished and low-income areas or designated zones. Eligibility Criteria: o Projects must be located in an impoverished, blighted or low-income area as described by City Council. o Projects must provide proof of location in designated areas. o Projects must be verified by the Water/Wastewater Department and be screened by Development Services. How to Apply: Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. For more information regarding this incentive please contact the Development at (361) 826-3569 or visit www.cctexas.com/developmentservices. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. The City shall not grant any incentive unless the homebuilder or homeowner 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 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 - 51 - Additional Resources: Water Department WNW. cote X?S.ccr'/wate'iiintdeX.cfii':. - 52 - SMALL BUSINESS DISABLED ACCESS CREDIT Policy Description: Two tax incentives are available to help cover the cost of making improvements. The first is a tax credit that can be used for architectural adaptations, equipment acquisitions, and services such as language interpreters. The second is a tax deduction that can be used for architectural or transportation adaptations. The tax credit is subtracted from your tax liability after you calculate your taxes, while a tax deduction is subtracted from your total income before taxes, to establish your taxable income. Eligibility Criteria: Tax Credit o The tax credit, established under Section 44 of the Internal Revenue Code, was created in 1990 specifically to help small businesses cover ADA -related eligible access expenditures. A business that for the previous tax year had either revenues of $1,000,000 or less or 30 or fewer full-time workers may take advantage of this credit. The credit can be used to cover a variety of expenditures, including: • Provision of readers for customers or employees with visual disabilities • Provision of sign language interpreters • Purchase of adaptive equipment • Production of accessible formats of printed material (i.e., Braille, Targe print, audio tape, computer diskette) • Removal of architectural barriers in facilities or vehicles (alterations must comply with applicable accessibility standards) • Fees for consulting services (under certain circumstances-)- The ircumstances) The tax credit cannot be used for the costs of new construction. It can be used only for adaptations to existing facilities that are required to comply with the ADA. The amount of the tax credit is equal to 50% of the eligible access expenditures I a year, up to a maximum expenditure of $10,250. There is no credit for the first $250 of expenditures. The maximum credit, therefore, is $5,000. Tax Deduction The tax deduction, established under Section 190 of the Internal Revenue Code, is now a maximum of $15,000 per year a reduction from $35,000 that was available through December 31, 1990. A business (including active ownership of - 53 - an apartment building) of any size may use this deduction for the removal of architectural and transportation barriers. The rendslations under Section 190 must comply,w,ith applicable accessibility standards. Small businesses can use these incentives in combination if the expenditures incurred qualify under both Section 44 and Section 190. For example, a small business that spends $20,000 for access adaptations may take a tax credit of $5,000 (based on $10,250 of expenditures) and a deduction of $15,000. The deduction is equal to the difference between the total expenditures and the amount of the credit claimed. How to Apply: For more information regarding this incentive policy please contact the Human Relations department at (361) 826-3190 or visit www.cctexas.com/humanrelations/. Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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 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 NiU. URAL , AS HOME BUILD FR R EBAT : P OG -TA Policy Description: The City of Corpus Christi Gas Department has implemented an incentive program with new opportunities that will encourage builders and developers to offer Natural Gas as a standard feature in all future projects they build in Corpus Christi. This program is implemented in accordance with City Code of Ordinances, Chapter 55, Utilities, Section 65, Builders Incentive Program. The Natural Gas Home Builder Rebate Program will promote builders and developers to share the commitment with the City of Corpus Christi Gas Department to provide projects with long term money saving opportunities by using efficient Natural Gas appliances. The program will be funded out of the Gas Load Development Organization from the Gas Department's 2009-10 operating budget. Eligibility Criteria: The incentive package is offered to all builders and developers that commit to building future residential homes with Natural Gas. Each home must have a minimum of three outlets placed strategically for the following natural gas appliances in the following order: o Natural Gas water heater o Natural Gas clothes dryer o Natural gas cook top and/or Natural Gas Furnace A $1,000 rebate will be given to the builder after an inspection of the appliances from the Corpus Christi Gas Department Marketing Representative on each home meeting the criteria above. The Corpus Christi Gas Department will install up to 100 feet of service line, provide an anode -less service riser and meter against the house at a pre -designated point of entry. Builders are asked to give proper notice for service line installation to take place without obstructions for the necessary equipment to dig the trench to install the service line. All gas lines installed inside the house will be the responsibility of the builder. In addition to the $1,000 rebate and the service line installation, builders will be included in advertisements with the City of Corpus Christi Gas Department. Builders will be recognized as Natural Gas Home Builders in the Corpus Christi Caller Times, City Utility Bill Inserts, at Home Expos, Corpus Christi Builders Association, and our website. Rebates of $75.00 for the pool heater and fireplace are still applicable. This program cannot be used in conjunction with any other program. - 55 - Additionally, the Gas Department has the Natural Advantage Horne Rebate Program, which offers two options to encourage the use of Natural Gas in new and existing residential development projects. o Option One: A $500 rebate will be given for each housing unit that is built or retrofitted with a Natural Gas water heater, a natural gas yard lamp and two additional natural gas appliance outlets. These outlets are to be strategically placed to connect a natural gas stove/cook top, clothes dryer, or furnace. The natural gas yard lamp will be installed "turnkey" by the City Of Corpus Christi Gas Department. o Option Two: A rebate in the amount specified will be given for each natural gas appliance installed in a new home or for each natural gas appliance conversion in an existing home as listed below. Water -Heater $300.00 Furnace $200.00 Clothes Dryer $50.00 Stove/cook top $50.00 Fireplace $75.00 Pool Heater $75.00 Total $750.00 How to Apply: For more information regarding this incentive please contact the Gas Department at (361) 885-6910 or visit our website: www.cctexas.com. Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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 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 - 56 - Additional Resources: Development Services www.cctexas.com/d eve lopmertserrices Economic Development www.cctexas.com/economicdevelopment - 57 - SECTION IV - 58 - MUN J ESI PAT 1 ML _A GIEM.EN I INS i R1CTS Policy Description: Described in Chapter 375 cf the Texas Local Government Code, www.statutes.legis.state.tx.us/Docs/LG/pdf/LG.375.pdf, Municipal Management Districts (MMD) are districts necessary to promote, develop, encourage, and maintain employment, commerce, economic development, and the public welfare in the commercial areas of municipalities and metropolitan areas of the state. This is an economic tool that allows commercial property owners to enhance a defined business area. A district, such as the Downtown Management District (DMD), is normally created within an existing commercial area to finance facilities, infrastructure, and services beyond those already provided by individual property owners or by the City. The improvements may be paid for by a combination of self-imposed property taxes, special assessments, and impact fees, or by other charges against property owners within the district. The district is created to supplement, not to supplant, the municipal services provided by the City. The creation of a district is essential to further the public purposes of development and diversification of the economy of the state, the elimination of unemployment and underemployment, and the development or expansion of transportation and commerce and is in the public interest. The district has the power to levy an ad valorem property tax for water, wastewater, drainage, road, or mass transit improvements that are located inside and outside the district. A district may also levy impact fees pursuant to the state impact fee act (Chapter 395 of the Local Government Code). Under special circumstances, a district may levy special assessments against the benefited property within the district. These assessments may be used to pay for ail or part of the construction or maintenance of the following types of improvements: landscaping, lighting, signs, streets and walkways, drainage, solid waste, water, sewer, power facilities, parks, historic areas, works of art, parking facilities, transit systems, and other similar improvements. The assessments may also fund supplemental services for advertising, economic development, business recruitment, promotion of health and sanitation, public safety, traffic control, recreation, and cultural enhancement. MMDs are created by either specific enactment by the Texas Legislature or through an administrative process administered by the Texas Commission on Environmental Quality (TCEQ). - 59 - Eligibility Criteria for TCEQ created MMDs: o A District may be created only: (1) In an area devoted primarily to commercial development and business activity inside the boundaries of a City with a population of at least 25,000; or (2) In an area devoted primarily to commercial development or business activity. o A district created may include the extraterritorial jurisdiction of a City with a population of at least 25,000 if the area has an assessed valuation of $500 million or more according to the rolls of the central appraisal district for the year preceding the date of creation of the district. How to Apply: Before a district may be created, the TCEQ must receive a petition requesting creation of the district. o The petition must be signed by: (1) The owners of a majority of the assessed value of the real property in the proposed district, according to the most recent certified county property tax rolls; or (2) 50 persons who own real property in the proposed district if, according to the most recent certified county property tax rolls, more than 50 persons own real property in the proposed district. o The petition must: (1) Describe the boundaries of the proposed district by metes and bounds or, if there is a recorded map or plat and survey of the area, by lot and block number; (2) State the specific purposes for which the district will be created; (3) State the general nature of the work, projects, or services proposed to be provided, the necessity for those services, and the costs as estimated by the persons filing the petition; (4) Include a name of the district, which must be generally descriptive of the location of the district, followed by "Management District"; - 60 - (5) Include a proposed list of initial directors that includes the directors' experience and initial term of service; and (6) Include a resolution of the governing body of the City in support of the creation of the district. The TCEQ or a person authorized by the TCEQ shall set a date, time, and place for a hearing to consider each petition received. The TCEQ or authorized person shall issue a notice of the date, time, and place of hearing. The notice must state that each person has a right to appear and present evidence and testify for or against the allegations in the petition, the form of the petition, the necessity and feasibility of the district's project, and the benefits to accrue. The TCEQ or authorized person shall publish notice of the hearing in a newspaper of general circulation in the City in which the proposed district is located once a week for two consecutive weeks. The first publication must occur not later than the 31st day before the date on which the hearing will be held. At a hearing set under Section 375.023, the TCEQ shall examine the petition to determine its sufficiency. Any interested person may appear before the TCEQ in person or by attorney and offer testimony on the sufficiency of the petition and whether the district is feasible and necessary and would be a benefit to all or any part of the land proposed to be included in the district. Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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. The applicant shall provide supporting documentation upon request. 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. Additional Resources: Development Services www.cctexas.com/developmentservices - 61 - MUIN1CIPAT DEVFLOPN FN DIS 1 RICTS Policy Description: Described in Chapter 377 of the Texas Local Government Code, www.statutes.legis.state.tx.us/Docs/LG/pdf/LG.377.pdf, a City may call an election on the question of creating a municipal development district under this chapter to plan, acquire, establish, develop, construct, or renovate one or more development projects beneficial to the district. The district is created if a majority of the registered voters of the proposed district voting at the election favor creation of the district. A district shall establish by resolution a fund known as the development project fund. The district may establish separate accounts within the fund, which shall be deposited into the development project fund: the proceeds from any sales and use tax imposed by the district; all revenue from the sale of bonds or other obligations by the district; and any other money required by law to be deposited in the fund. The district may use the money in the development project fund only to: pay the costs of planning, acquiring, establishing, developing, constructing, or renovating one or more development projects in the district; pay the principal of, interest on, and other costs relating to bonds or other obligations issued by the district or to refund bonds or other obligations; or pay the costs of operating or maintaining one or more development projects during the planning, acquisition, establishment, development, construction, or renovation or while bonds or other obligations for the planning, acquisition, establishment, development, construction, or renovation are outstanding. A district may issue bonds, including revenue bonds and refunding bonds, or other obligations to pay the costs of a development project. The district, by order, may impose a sales and use tax. The City will give priority for the creation of an MDD project locating in Catalyst Areas. Eligibility Criteria: o A City may create a district as approved in this chapter in: (1) All or part of the boundaries of the City; (2) AH or part of the boundaries of the City and all or part of the boundaries of the City 's extraterritorial jurisdiction; or (3) All or part of the City's extraterritorial jurisdiction. - 62 - o The City may include territory outside of the City cnly to the extent that territory is in the City's extraterritorial jurisdiction. How to Apply: A City may call an election on the question of creating a municipal development district under this chapter to plan, acquire, establish, develop, construct, or renovate one or more development projects beneficial to the district. o The order calling the election must: 1. Define the boundaries of the district; and 2. Call for the election to be held within those boundaries. o The ballot at an election held under this section must be printed to permit voting for or against the proposition: "Authorizing the creation of the Municipal Development District (insert name of district) and the imposition of a sales and use tax at the rate of of one percent (insert one- eighth, one-fourth, three-eighths, or one-half, as appropriate) for the purpose of financing development projects beneficial to the district." o The district is created if a majority of the registered voters of the proposed district voting at the election favor creation of the district. o If a majority of the registered voters of the proposed district voting at the election to create the district vote against creation of the district, the City may not hold another election on the question of creating a municipal development district before the first anniversary of the most recent election concerning creation of a district. Applicants seeking 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. - 63 - Local Action Required: Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.comleconomicdevelcpmeft to download the application. An application fee of $2,000 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. Additional Resources: Development Services www.cctexas.com/developmentservices - 64 - MU 1C1PAT , T1L1' 'Y DISTRIC 'S Policy Description: Created under Chapter 54 of the Texas Water Code, a Municipal Utility District (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission of Environmental Quality (TCEQ) to provide water, sewage, drainage and other services within the MUD boundaries. The publically elected Board of Directors manages and controls all of the affairs of the MUD subject to the continuing supervision of the Texas Commission of Environmental Quality. The Board establishes policies in the interest of its residents and utility customers. A MUD may adopt and enforce all necessary charges, fees and taxes in order to provide district facilities and service. MUD tax rates, like all property tax rates, vary according to property values and debt requirements. MUD rates generally decline over time as the MUD is built out and operating and debt service costs are shared by more homeowners. In addition to their common functions of water and wastewater service, MUDs are legally empowered to engage in conservation, irrigation, electrical generation, firefighting, solid waste collection and disposal, and recreational activities (such as parks, swimming pools, and sports courts). A MUD can provide for itself the recreational amenities that are approved by the Board of Directors and funded by the District. Eligibility Criteria: A majority of property owners in the proposed district petitions the Texas Commission of Environmental Quality to create a MUD. The TCEQ evaluates the petition, holds a public hearing, and grants or denies the petition. After approval, the TCEQ appoints five temporary members to the MUD's Board of Directors, until an election is called to elect permanent Board members, to confirm the MUD's creation, and to authorize bonds and taxing authority for bond repayment. Developers are prohibited from serving or placing employees, business associates, or family members on the MUD Board of Directors. Developers must pay for or put up a letter of credit equal to 30% of the cost of subdivision utilities. This requirement ensures against "fly-by-night operators" who are not committed to the success of the MUD. The "30% rule" also offers protection to MUD residents in the event that a subdivision is not built according to schedule. Unless they are voting residents within a MUD, developers have no authority or control over the MUD's Board of Directors. If they are voting members of a district, they have the same power to vote and attend Board meetings as any other resident. - 65 - How to Apply: When it is proposed to create a district, a petition requesting creation shall be filed with the TCEQ. The petition shall be signed by a majority in value of the holders of title of the land within the proposed district, as indicated by the tax rolls of the central appraisal district. If there are more than 50 persons holding title to the land in the proposed district, as indicated by the tax rolls of the central appraisal district, the petition is sufficient if it is signed by 50 holders of title to the land. The petition shall: o Describe the boundaries of the proposed district by metes and bounds or by lot and block number, if there is a recorded map or plat and survey of the area; o State the general nature of the work proposed to be done, the necessity for the work, and the cost of the project as then estimated by those filing the petition; and o Include a name of the district which shall be generally descriptive of the locale of the district followed by the words Municipal Utility District, or if a district is located within one county, it may be designated " County Municipal Utility District No. ." No land within the corporate limits of a city or within the extraterritorial jurisdiction of a city, shall be included in a district unless the city grants its written consent, by resolution or ordinance, to the inclusion of the land within the district in accordance with Section 42.042, Local Government Code. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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. The applicant shall provide supporting documentation upon request. 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. - 66 - Additional Resources: Development Services www.cctexas.com/developmentservices - 67 - MUNICIPAL SFT 1 INT'' 1 ) .1- S 'GNA IONS Policy Description: The 78th Texas Legislature passed HB 3152 (Texas Health and Safety Code 361.801-08) a Municipal Setting Designations (MSDs) statute, effective September 1, 2003 governing the potability of groundwater and the requirements for removing contaminants from groundwater. The law authorized the Texas Commission on Environmental Quality (TCEQ) to receive, process, and certify MSD applications for properties with contaminated groundwater that are located in cities or their extraterritorial jurisdiction. The TCEQ can certify an application only if there is local city support. The city has the choice to either support or not support an MSD application. Because of the need for city support, city officials can expect to be contacted by persons who wish to pursue state certification of an MSD. Cities can also pursue MSDs for their own use. The MSD law creates a Tess expensive and faster alternative to the existing state environmental regulations governing the investigation and cleanup of contaminated groundwater. The statue substitutes a municipal ordinance or restrictive covenant for TCEQ regulations to protect the public against exposure to contaminated groundwater. The MSD statute limits investigation and remediation requirements for contaminated groundwater on MSD properties when that groundwater is not used and will not be used in the future for potable water. Instead of restoring or controlling the contaminated zone so its groundwater can be used as potable eater, a prohibition is placed on the designated groundwater beneath the MSD property to prevent its use as potable water. Because people or animals, fish, and plants may be exposed to the contamination in other ways, the law still allows the TCEQ to require the contamination to b.e investigated and remediated for other concerns unrelated to potable -water use. For example, the inhalation of vapors originating from the groundwater contaminants or the discharge of groundwater contaminates to lakes or streams can be a concern. Eligibility Criteria: The statute specifies two eligibility requirements: 1. The proposed MSD property must be within the corporate limits or extraterritorial jurisdiction of a municipality authorized by statue. 2. There must be a public water supply system that meets state requirements that "supplies or is capable of supplying drinking water" to - 68 - the MSD property and all properties within one-half mile of the MSD property. Any of the following "persons" can apply for an MSD: o An individual o A corporation o An organization o A government (including a local government) or governmental subdivision or agency o A business trust, partnership, association, or any other legal entity. How to Apply: The MSD statue requires the applicant to provide a letter to notify the parties identified below that an MSD application is submitted to the TCEQ. The notice must be completed in advance of, or at the same time as, an application is submitted to the TCEQ. Specifically, the notice letter must be sent to: o Each municipality: ■ In which the MSD property is located • With a boundary located within on half mile from the MSD property boundary, or • That owns or operates a water supply well located within five miles from the MSD property Boundary; o Each owner of a "private water well registered with the TCEQ" that is located within 5 miles from the MSD property boundary; and o Each retail public utility that own or operates a groundwater supply well located within five miles of the MSD property boundary In the notice letter, the applicant is required to: o Identify the location of the proposed MSD property; o State the reason for the MSD certification; - 69 - c State that municipalities and retail public utilities can make comments to the TCEQ; o Identify the type of groundwater contaminants; and o Name the party responsible for the contamination. Notified parties have up to sixty days after they receive the notice letter to file comments with the TCEQ, if they choose to do so. The TCEQ cannot take action to deny or certify the application until sixty days after the notified parties receive those notices. The city is not required by statute to accept, process, or support MSD applications. However, for an MSD to be certified by the TCEQ, municipal support for the application is paramount. Therefore, MSD certification is significantly controlled by the city. For the city where the proposed MSD property is located, the statue allows an MSD application to be certified only if that city council adopts either: o An ordinance to prohibit potable use of the designated groundwater from beneath the MSD property and to appropriately restrict other uses of, and contact with, the designated groundwater; or o A resolution that supports the filing of a restrictive covenant by the applicant that is enforceable by the municipality to prohibit potable use of designated groundwater from beneath the MSD property and to appropriately restrict other uses of, and contact with, the designated groundwater. As with cities and retail public utilities (RPUs), the TCEQ's role is established by statute. The TCEQ is to receive and process applications, verify that proposed MSD properties meet statutory eligibility requirements, and verify that applications are administratively complete. If the MSD property is statutorily eligible and the application is complete, then the TCEQ will certify the application. For additional information contact the Texas Commission on Environmental Quality at (512) 239-1000 or visit www.tceq.state.tx.us Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. 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. The applicant shall provide supporting documentation upon request. - 70 - 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. Additional Resources: Development Services www.cctexas.com/developmentservices - 71 - 'NEIGHBORHOOD F 1\4FCWF MF.N 1 ZONE Policy Description: Described in Chapter 378 of the Texas Local Government Code, www.statutes.legis.state.tx.us/Docs/LG/pdf/LG.378.pdf, a City may create a Neighborhood Empowerment Zone as long as the zone promotes the creation of affordable housing, including manufactured housing, in the zone; an increase in economic development in the zone; an increase in the quality of social services, education, or public safety provided to residents of the zone; or the rehabilitation of affordable housing in the zone. A City may create more than one zone and may include an area in more than one zone. In addition to other powers that a City may exercise, a City may: (1) waive or adopt fees related to the construction of buildings in the zone, including fees related to the inspection of buildings and impact fees; (2) enter into agreements, for a period of not more than 10 years, for the purpose of benefiting the zone, for refunds of municipal sales tax on sales made in the zone; (3) enter into agreements abating municipal property taxes on property in the zone subject to the duration limits of Section 312.204, Tax Code; and (4) set baseline performance standards, such as the Energy Star Program as developed by the Department of Energy, to encourage the use of alternative building materials that address concerns relating to the environment or to the building costs, maintenance, or energy consumption. Eligibility Criteria: o In order to create the zone, the City must create a resolution containing the following: (1) A description of the boundaries of the zone; (2) A finding by the governing body that the creation of the zone benefits and is for the public purpose of increasing the public health, safety, and welfare of the persons in the City; and (3) A finding by the governing body that the creation of the zone satisfies the requirements of Section 312.202, Tax Code. How to Apply: 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. - 72 - 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. Local Action Required: Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. An application fee of $2,000 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. Additional Resources: Development Services www.cctexas.com/developmentservices Neighborhood Services www.cctexas.com/neighborhoodservices/ Community Development www.cctexas.com/communitydevelopment/ - 73 - TEXAS LEY .FB AG F FU iND Policy Description: Introduced in 1992, the mission of the Texas Leverage Fund (TLF), http://governor.state.tx.us/files/ecodev/TLF Guidel.ines.pdf, is to be a customer driven program, designed to provide communities a way to leverage local funds with state funds to assist small business expansions, business recruitment and export opportunities to position Texas as a globally competitive economic region. The Texas Leverage Fund allows Economic Development Corporations ("EDCs") to leverage their economic development sales and use tax receipts collected by authority of the Act ("Tax Receipts") by providing an alternative source of easy to access capital with favorable terms. Communities may leverage future sales tax revenues to support job retention or creation. Available for interim, long-term or gap financing, TLF loans provide flexible financing terms to match the unique needs of communities, with maturities ranging from 5, 10 and 15 years, with no pre -payment penalty. Future sales tax revenues serve as collateral for loan repayment with required debt service coverage ratios specified in the Texas Leverage Fund Program Guidelines. Pledged tax collections not needed for actual debt service are available for other projects. Loan proceeds must be used to pay eligible "costs" of "projects" as defined by the Development Corporation Act of 1979 (the Act), as amended. Under Section Type A of the Act, examples of eligible costs include land, buildings, machinery and equipment for manufacturing and industrial operations. Under Section 4B of the Act, examples of eligible costs include sports, athletic, entertainment and public park purposes and events. Eligibility Criteria: o Land, building, equipment, facilities, and improvements for development or expansion; o Infrastructure improvements necessary for economic development tied to a specific business or documented as part of an economic development plan; o Improvements in direct support of revitalizing downtown in order to increase tourism activities; o Convention centers and related improvements; - 74 o Auditoriums, amphitheatres, concert halls, parks and park facilities, open space improvements, stadiums/ballparks, exhibition facilities, and related automobile facilities. How to Apply: o The purpose of the financial assistance and the use of funds must comply with all applicable requirements of the Act. EDCs are permitted to use proceeds of the loan from the Economic Development and Tourism Division (the "Division") to the EDC ("Program Loan") to fund any projects. Further, funds must be used for eligible "costs" as defined in the Act. o Participating cities must have a general obligation or a point in time rating of Baa or better by Moody's Investors Service, or an equivalent rating from a nationally recognized rating service. If a City has no rating or a rating of less than Baa, the Debt Service Coverage Ratio based on total Projected Debt Service must exceed the ratios set forth in these Guidelines by a factor of 0.50 as of the closing date. o No EDC in a City with a general obligation bond rating of Baa or better shall have a single project greater than three million dollars ($3,000,000). No EDC in a City with a general obligation bond rating less than Baa or no rating shall have a single project more than two million dollars ($2,000,000). o No Program Loan may be amortized for a period longer than fifteen (15) years. o Participating cities must not have experienced a "Largest Four Year Sales Tax Decline" of greater than ten percent (10%) as determined by the following formula: (HIGH - LOW) X 100 HIGH Wherein "LOW" shall mean the lowest sum of total sales tax revenue receipts collected by the City for any calendar year (adjusted for changes in sales tax rates) during the four (4) year period preceding the date of calculation, as determined from the most recent June 30 or December 31 reports, as applicable, for which sales tax data is available, and "HIGH" shall mean the highest sum of sales tax revenue receipts collected for any calendar year (adjusted for changes in sales tax rates) during this same period and which occurred in a calendar year preceding the calendar year in which the LOW occurred. -75- c All Program Leans must be secured by a first lien pledge cf Tax Receipts sufficient, as of the closing date, to comply with a "Debt Service Coverage Ratio" based on loan term and the "Largest Fifteen Year Sales Tax Decline". o All Program Loans must be on a parity with or superior to any other obligations secured by the Tax Receipts and owing or incurred while any portion of the Program Loan is outstanding to insure that the Division will have no less than an equal claim to all pledged Tax Receipts. o If Parity Obligations exist or are incurred during the term of the Program Loan, the Debt Service Coverage Ratio based on total Projected Debt Service must exceed the ratios set forth above by a factor of 0.1 as of both the closing date of the Program Loan and the closing date of any Parity Obligations subsequently incurred. o The Program Loan shall be cross -defaulted with all Parity Obligations and the Division must be notified in advance of the issuance of any Parity Obligations. o The Program Loan shall bear a variable interest rate equal to the "prime rate" as quoted in the Wall Street Journal, Southwest Edition. o The Program Loan shall provide for equal monthly principal and interest payments, payable by wire transfer on the first business day of each month. Payment amounts shall be adjusted by the Division upon a change in interest rate or a prepayment to amortize the loan over its original term. o All repayments to the EDC in excess of the scheduled payments including prepayments, insurance proceeds not reinvested in the collateral, or proceeds from the disposition of an asset shall be used by the EDC to prepay a like principal amount on the Program Loan. o The EDC must provide the Division with an opinion of counsel to the EDC, in prescribed form and substance, to the effect that the requisite tax election was held, that no litigation has been filed relating to such election, and that the EDC was formed in accordance with statutory requirements and is authorized to enter into the loan agreement. Local Action Required: Please contact the Corpus Christi Regional Economic Development Corporation at (361) 882-7448 to request the application or visit http://www.ccredc.com/ - 76 - Additional Resources: Economic Development www.cctexas.com/economicdevelopment Development Services www.cctexas.com/developmentservices -77- ORrF7 AMERICAN TREE TRADE, AGRL7 LMEN, T CNA .F 1.A) MPA.CT 70N Policy Description: Described in Chapter 379 of the Texas Local Government Code, www.statutes.legis.state.tx.us/Docs/LG/pdf/LG.379.pdf, the North American Free Trade Agreement (NAFTA) Impact Zone may be created or adopted by a City if it is determined the creation of the zone would promote: Business opportunities for local business in the zone; an increase in economic development in the zone; employment opportunities for residents in the zone. Eligibility Criteria: o The City may create a zone if it adopts a resolution containing: 1. A description of the boundaries of the zone; and 2. A finding by the governing body that the creation of the zone satisfies the requirements of Section 312.202, Tax Code. o The City may create more than one zone and may include an area in more than one zone. o Additional powers — The City may: (1) Waive or adopt fees related to the construction of buildings in the zone, including fees related to the inspection of buildings and impact fees; (2) Enter into agreements, for a period of not more than 10 years, for the purpose of benefiting the zone, for sales tax refunds or abatements of municipal sales tax on sales made in the zone; (3) Enter into agreements abating municipal property taxes on property in the zone subject to the duration limits of Section 312.204, Tax Code; and (4) Set baseline performance standards, such as the Energy Star Program as developed by the Department of Energy, to encourage the use of alternative building materials that address concerns relating to the environment or to building costs, maintenance, or energy consumption. -78- How to Apply: 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. Local Action Required: Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. An application fee of $2,000 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. Additional Resources: Corpus Christi Regional Economic Development Corporation www.ccredc.com - 79 - F M _F R GING F i IN'O I `O€Y IF N ID Policy Description: The Emerging Technology Fund (ETF), created by the Texas Legislature at the urging of Governor Rick Perry, provides Texas with an unparalleled advantage by expediting the development and commercialization of new technologies, and by recruiting the best research talent in the world. Matching and commercialization funds coupled with additional federal and outside investments mean new technology is emerging in Texas. http://members.texasone.us/site/PageServer?pagename=tetf homepage The Governor has appointed a blue-ribbon ETF Advisory Committee composed of seventeen (17) individuals who are industry leaders in Texas and/or who are nationally recognized researchers from public or private institutions of higher education in Texas. The appointed members of the ETF advisory committee volunteer their time to serve staggered two-year terms, subject to the pleasure of the governor. The ETF Advisory Committee reviews commercialization and matching grant proposals, and makes recommendations, through evaluation processes, to the Governor, Lt. Governor and Speaker. Eligibility Criteria: o An emerging technology industry participant is eligible for funding if the activity to be funded: (1) Will result in the creation of high-quality new jobs in this state, immediately or over a longer period; or (2) Has the potential to result in a medical or scientific breakthrough or a breakthrough in the area of clean energy. o Incentives for commercialization activities — in allocating money from the fund, priority shall be given to proposals that: (1) Involve emerging scientific or technology fields that have a reasonable probability of enhancing this state's national and global economic competitiveness; (2) May result in a medical or scientific breakthrough or a breakthrough in the area of dean energy; (3) Are collaborative between any combination of private or nonprofit entities and public or private agencies or institutions in this state; - 80 - (4) Are matched with other available funds, including funds from the private or nonprofit entity or institution of higher education collaborating on the project; or (5) Have a demonstrable economic development benefit to this state. o In allocating money from the fund, priority shall be given to proposals that accelerate commercialization into production by targeting programs that: (1) Address federal or other major research sponsors' priorities in emerging scientific or technology fields; (2) Are interdisciplinary; (3) Are collaborative with a combination of public or private institutions of higher education in this state; (4) Are likely to result in a medical or scientific breakthrough or a breakthrough in the area of clean energy; or (5) Have a demonstrable economic development benefit to this state. How to Apply: Please visit the Emerging Technology Fund website at www.emergingtechfund.com to download the application. Additional Resources: Economic Development www.cctexas.com/economicdevelopment Corpus Christi Regional Economic Development Corporation www.ccredc.com - 81 - SKILLS D -'V FT ,OPM-N, FUND Policy Description: Described in Chapter 303 of the Texas Labor Code, www.statutes.legis.state.tx.us/Docs/LA/pdf1LA.303.pdf, the Skills Development Fund removes administrative barriers that impede the response of public community and technical colleges, community-based organizations, and the Texas Engineering Extension Service to industry and workforce training needs and to develop incentives for public community and technical colleges, community-based organizations, and the Texas Engineering Extension Service to provide customized assessment and training in a timely and efficient manner. Eligibility Criteria: o The fund is composed of money transferred into the fund under Section 204.123 (Holding Fund); and any amounts appropriated by the Legislature for the purpose of this chapter from the general revenue fund. The skills development fund may be used by public community and technical colleges, community-based organizations, and the Texas Engineering Extension Service as start-up or emergency funds for the following job - training purposes: (1) Developing customized training programs for businesses and trade unions; and (2) Sponsoring small and medium-sized business networks and consortiums. o Money from the skills development fund may not be used to pay the training costs and other related costs of an employer who relocates the employer's worksite from one location in this state to another in-state location. o An employer may not apply both to a public community or technical college for customized training and assessment from the college through a grant issued to the college under the skills development fund program established under this chapter and for a grant under the Texas Enterprise Fund program established under Subchapter E, Chapter 481, Government Code, unless the employer and the college file an application for concurrent participation in both programs that complies with any rules adopted by the Texas Workforce Commission on concurrent participation. In awarding any grant under this chapter, the City Council shall consider giving priority to training incentives for small businesses. - 82 - o The Texas Engineering Extension Service shall focus the service's training activities under this chapter on programs that: are statewide in nature; or are not available from a local junior college district, a local technical college, or a consortium of junior college districts. o This section does not prohibit the Texas Engineering Extension Service from participating in a consortium of junior college districts or with a technical college that provides training under this chapter. o A community-based organization may apply for money to participate in a training program only in partnership with a community and technical college or the Texas Engineering Extension Service. A community-based organization providing services regulated by the state shall provide evidence of any certification, license, or registration required by law. o The Texas Higher Education Coordinating Board shall review all customized training programs biennially to verify that state funds are being used appropriately by public community and technical colleges and the Texas Engineering Extension Service under this chapter. o In awarding any grant under this chapter, the City Council shall consider giving priority to training incentives for small businesses. How to Apply: The Proposal Submission Form is based on the requirements set forth in the Texas Labor Code, Chapter 303 and the Texas Administrative Code, Chapter 803. All requested information is in adherence to the Skills Development Fund program statute and rules, which applicants can find on the TWC web site at: http://www.twc. state.tx. us/svcs/funds/sdfintro. html. A high quality proposal is one that will demonstrate 1) the strong participation of businesses that identify the skills they need to expand their workforce; 2) collaboration with the local workforce and economic development entities; and 3) commitments to help Texans increase their skills levels and wages. Proposals may be submitted year round, however, they will be reviewed on a quarterly basis. TWC will keep applicants informed of the status of their proposals throughout the evaluation period. An applicant will be notified within 10 working days from date of receipt that the proposal was received and whether or not it contains all the required components. The notification will also indicate if the applicant must address specific deficiencies before TWC can begin the proposal evaluation process. - 83 - In addition, TWO will make every effort to notify applicants within 45 working days of the quarter submission date if the proposal has been approved for funding. (Important Note: if extensive and/or multiple Requests for Information are necessary during the review process, it may affect the 45 - day target.) Applicants must submit a complete proposal package by mail. The package must contain all the required components, including original signatures, and must be received at TWO by the due date. Please send proposal packages to the following address: Texas Workforce Commission Workforce Business Services, Room 212-T Attention: Dana Mays/Debbie Hall 101 E. 15th Street Austin, Texas 78701 Additional Resources: Economic Development www.cctexas.com/economicdevelopment Corpus Christi Regional Economic Development Corporation www.ccredc.com ECONOMIC L) ''y IFL O M FN °!T 1L R EFILTN _) Policy Description: Described in Chapter 111 of the Texas Tax Code, www.statutes.legis.state.tx.us/Docs/TX/pdf/TX.111.pdf, the Economic Development Refund provides for state tax refunds to qualified property owners who entered into property tax abatement agreements after January 1, 1996 with a City or county, but not a school district. Property owners with tax abatement agreements entered into on or before January 1, 1996 are not eligible for these state refunds. Eligibility Criteria: o To be eligible for a refund, a property owner must have paid in full ad valorem taxes to a school district and established a new business in a reinvestment zone or expanded or modernized an existing business located in the zone. o Since entering into a City or county abatement agreement, the property owner must have increased the business's payroll by at least $3 million, specific to its property in Texas. Or, the owner must have increased the abated property's appraised value by at least $4 million from the initial base year of the tax abatement agreement. o The amount of the refund that can be paid by the comptroller in a calendar year is limited to the amount of taxes paid and postmarked by the person after any applicable tax credit. The refund period is limited to the lessor of five years or the duration of the tax abatement agreement. o A property owner's potential refund equals the school property taxes paid by the owner in that tax year. o The maximum refund is the lesser of the school taxes paid or the amount of net sales and use tax and net franchise tax paid for the tax year. o The total for all refunds collectively may not exceed $10 million. If the eligible refunds claimed exceed $10 million, the comptroller shall proportionally reduce the amount of each refund. How to Apply: o Application for the refund is submitted to the comptroller at http://www.window.state.tx.us/. The application must: - 85 - 1. Be made on the form prescribed by the comptroller; 2. Have attached a tax receipt from the assessor and collector of taxes for the school district showing full payment of school district ad valorem taxes on the property for the tax year for which the refund is sought; and 3. Include sufficient information for the comptroller to determine the portion of the ad valorem taxes paid to a school district by the person for the applicable tax year on the property that the person would not have been required to pay if the school district had entered into a tax abatement agreement concerning the property that included the same terms, including terms governing the portion of the property that is to be exempt from taxation under the agreement, as specified by the municipal or county tax abatement agreement on which the refund amount is to be based. o A person applying for a refund must certify to the comptroller that the person is in compliance with each term of the tax abatement agreement entered into with the City or county. o If the relevant tax abatement agreement has not been filed with the comptroller and the Texas Department of Commerce, the comptroller may not act on the application until the agreement is on file. o If, after a review or audit, the comptroller determines that the person applying for the refund is not in compliance with each term of the appropriate tax abatement agreement, the comptroller may not act on the refund application until the person comes into compliance and shall notify the City or county of the person 's noncompliance. o Applications for refund must be filed before August 1 of the year following the tax year for which the person applying has paid ad valorem taxes described by Section 111.301(a). Within 90 days thereafter, the comptroller shall compute the total amount eligible for refund. Property owners must submit a refund application to the Comptroller's office before August 1 of the year following the property tax year. Additional Resources: Economic Development www.cctexas.com/economicdevelopment -86- INDUSTRIAL REVENUE y 1-" ON PROGRAM GRA Policy Description: The State of Texas Industrial Revenue Bond Program (IRB) is designed to provide tax-exempt or taxable financing for eligible industrial or manufacturing projects as defined in the Development Corporation Act of 1979 (Act). The Act allows cities, counties, conservation and reclamation districts to form non-profit industrial development corporations (IDCs) or authorities on their behalf. The purpose is to provide bonds for projects within their jurisdictions. The IDC acts as a conduit through which monies are channeled. Generally, bond debt service is paid by the business under the terms of a lease, sale or loan agreement. As such, it does not constitute a debt or obligation of the governmental unit, the IDC or the State of Texas. Eligibility Criteria: o The IDC issuing the bonds must pass a declaration of official intent resolution (tax-exempt only); a bond resolution approving the project; set the bond amount; and make findings required by state law; o The governmental unit of the IDC must pass a resolution that approves the corporate resolution and the project. All terms of the bond sale are negotiated among the appropriate parties and documents are prepared by legal counsel. How to Apply: The IDC submits an application to the Economic Development and Tourism Division of the Governor's Office (OOGEDT) and the Office of the Attorney, General simultaneously. However, the Attorney General will not give final approval until they receive an approval letter from the OOGEDT. Once all approvals have been granted, the IDC can issue the bonds and finance the project from the proceeds. Each application for approval shall be accompanied by a nonrefundable filling fee in the amount equal to one-tenth of 1.0% of the face amount of the bond issue or $25,000, whichever is less, but in no event less than $500. This fee is payable to the department upon the initial filing of such application. 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 - 87 - 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. Local Action Required: Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment or the Corpus Christi Regional Economic Development Corporation at www.ccredc.com to download the application. An application fee of $2,000 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. Additional Resources: Development Services www.cctexas.com/developmentservices Economic Development www.cctexas.com/economicdevelopment SECTIOIN 108 LOAN GUARANI -1F'. H PROGRAM Policy Description Described in Title 24 — Housing and Urban Development, Part 570 — Community Development Block Grants — in the Code of Federal Regulations, Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. Section 108 provides communities with a source of financing for economic development, housing rehabilitation, public facilities, and large- scale physical development projects. This makes it one of the most potent and important public investment tools that HUD offers to local governments. It allows them to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects that can renew entire neighborhoods. Such public investment is often needed to inspire private economic activity, providing the initial resources or simply the confidence that private firms and individuals may need to invest in distressed areas. Section 108 loans are not risk-free, however, local governments borrowing funds guaranteed by Section 108 must pledge their current and future CDBG allocations to cover the loan amount as security for the loan. Loan commitments are often paired with Economic Development Initiative (EDI) or Brownfield Economic Development Initiative (BEDI) grants, which can be used to pay predevelopment costs of a Section 108 -funded project. They can also be used as a loan loss reserve (in lieu of CDBG funds), to write-down interest rates, or to establish a debt service reserve. This incentive is for City use only. Eligibility Criteria: o Eligible applicants include the following public entities: (1) Metropolitan cities and urban counties (i.e. CDBG entitlement recipients); (2) Nonentitlement communities that are assisted in the submission of applications by States that administer the CDBG program; and (3) Nonentitlement communities eligible to receive CDBG funds under the HUD -Administered Small Cities CDBG program (Hawaii). The public entity may be the borrower or it may designate a public agency as the borrower. -89- o Activities eligible for Section 108 financing include: (1) Economic development activities eligible under CDBG; (2) Acquisition of real property; (3) Rehabilitation of publicly owned real property; (4) Housing rehabilitation eligible under CDBG; (5) Construction, reconstruction, or installation of public facilities (including street, sidewalk, and other site improvements); (6) Related relocation, clearance, and site improvements; (7) Payment of interest on the guaranteed loan and issuance costs of public offerings; (8) Debt service reserves; (9) Public works and site improvements in colonias; and (10) In limited circumstances, housing construction as part of community economic development, Housing Development Grant, or Nehemiah Housing Opportunity Grant programs. o For purposes of determining eligibility, the CDBG rules and requirements apply. As with the CDBG program, all projects and activities must either principally benefit low- and moderate -income persons, aid in the elimination or prevention of slums and blight, or meet urgent needs of the community. How to Apply: If the City is interested in applying for a Section 108 Guaranteed Loan, contact your local HUD office in advance for help in preparing an application. The program has no forms, but the following is the process required (as described in 24 CFR 570.704, "Application Requirements:" o Pre -submission and Citizen Participation Requirements: 1. Development of a proposed application. 2. Compliance with CDBG citizen participation public hearings. 3. Publication of the proposed application. - 90 - 4. Preparation of the final application. 5. Inclusion of the final application in the Consolidated Plan. o Application Submission Requirements: 1. Description of compliance with CDBG National Objectives and Eligible Activities. 2. Schedule for repayment. 3. Certifications. After consulting with the local HUD office and the preparation of the final application, the local office will conduct a "due diligence and compliance review", where a Community Planning and Development representative will check to ensure compliance with the above process, as well as verify national objectives, eligible activities, and certifications. Once this review is complete, the office will forward the application to the Section 108 staff in HUD headquarters along with a recommendation of approval or disapproval. Upon arrival in HUD's main office, the application will be assigned to a staff underwriter, who will examine the application in detail. It is at this stage that the requested loan terms and additional security offered will be examined. It is customary for the staff reviewer to be in contact with the local HUD office representative as well as the Applicant in order to resolve questions or issues which may arise during the review. Upon completion of the review, a Project Review Panel (consisting of headquarters staff and the local HUD office representative) will examine the application, suggest ways to resolve issues, request additional information, or recommend the application be approved. Once an application has received an, approval recommendation, it is forwarded to the Secretary of HUD for final approval and release. The length of time the application approval process takes depends on the individual application. For questions on a specific application, contact your local HUD office or the staff underwriter in HUD headquarters who is reviewing the application. - 91 - Additional Resources: Community Development WNW. c Texas.comicommunit'idevelopmentl Economic Development www.cctexas.com/economicdevelopment - 92 - T ERP ISE 170-1 ES Policy Description: Chapter 2303 of the Texas Government Code, www.statutes.legis.state.tx.us/Dccs/GV/gdf/GV.2303.Odf, Enterprise Zone Program, states that the purpose of this chapter is to establish a process that clearly identifies severely distressed areas of the state and provides incentives by the state and local government to induce private investment in those areas by removing unnecessary governmental regulatory barriers to economic growth and to provide tax incentives and economic development program benefits. Designation of an area as an enterprise zone is also designation of the area as a reinvestment zone for tax increment financing, tax abatement, and limitations on appraised value. Eligibility Criteria: o An area automatically qualifies for designation as an enterprise zone if the area is: (1) A block group, as defined by the most recent federal decennial census available at the time of designation, in which at least 20 percent of the residents of the block group have an income at or below 100 percent of the federal poverty level; (2) An area designated by the federal government as a renewal community, a federal empowerment zone, or a federal enterprise community, including any developable area approved by the federal agency responsible for making that designation. o A qualified business may request that the governing body of a city or county in which the qualified business is located apply to the bank (Texas Economic Development Bank) for designation of a project or activity of the , business as an enterprise project. o The enterprise project designation must be for: (1) An expansion or relocation from out-of-state, an expansion, renovation, or new construction, or other property to be undertaken by a qualified business; and (2) A predetermined designation period approved by the bank which may not be for less than one year or more than five years. o The maximum number of enterprise slots that the bank may designate for each nominating body during a biennium is: - 93 - (1) Nine, if the nominating body is the governing body of a City or county with a population of 250,000 or more. Criteria for Potentia! Sales Tax Refund Level of Capital Investment Maximum Number of Jobs Allocated Maximum Potential Refund Maximum Refund Per Job Allocated $40,000 to $399,999 10 $25,000 $2,500 $400,000 to $999,999 25 $62,500 $2,500 $1,000,000 to $4,999,999 125 $312,500 $2,500 $5,000,000 to $149,999,999 500 $1,250,000 $2,500 Double Jumbo Project $150,000,000 to $249,999,999 500 $2,500,000 $5,000 Triple Jumbo Project $250,000,000 or more 500 $3,750,000 $7,500 How to Apply: A qualified business may request that the governing body of a City or county in which the qualified business is located apply to the bank for designation of a project or activity of the business as an enterprise project. The governing body may apply to the bank for the designation of the project or activity of a qualified business as an enterprise project only after it submits to the bank the order or ordinance and other information that complies with the requirements. An application must contain an economic analysis of the plans of the qualified business for expansion, revitalization, or other activity with regard to the enterprise project, including: o The number of employment positions in existence at the qualified business site on the 91st day before the application deadline; o The number of new permanent jobs the enterprise project commits to create during the designation period presented in the form of a tabular listing of: - 94 - (1) The classification titles of those jobs; and (2) The number of jobs and salary range for each classification title; (3) The number of permanent jobs the enterprise project commits to retain during the designation period presented in the form of a tabular listing of: A. The classification titles of the retained jobs; and B. The number of retained jobs and salary range for each classification title; (4) The amount of investment to be made by the enterprise project; (5) A complete description of the projected schedule for completion of the specific activity described by Section 2303.404(b) to be undertaken by the enterprise project; (6) Other information the bank requires; (7) A description of the local effort made by the nominating body, the qualified business, and other affected entities to develop and revitalize the jurisdiction of the governmental entity nominating the project or activity; and (8) If the nominating body is applying for a double or triple jumbo enterprise project, as defined by Section 2303.407, an indication of which level of designation is being sought. Applicants seeking incentives must file an application for Economic Incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application. You may also request zone designation by applying to the Corpus Christi Regional Economic Development Corporation at www.ccredc.com 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. - 95 - 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 cr consultant and will ensure conformance with these guidelines. Additional Resources: Development Services www.cctexas.com/developmentservices 1 !t XAS 1 iFRPBJ.S D PROGRAM Policy Description: At Gov. Rick Perry's request, the 78th Texas Legislature established the Texas Enterprise Fund (TEF) in 2003 to provide financial resources to help strengthen the state's economy. Described in Chapter 481 of the Texas Government Code, http://www.statutes.legis.state.tx.us/Docs/GV/pdf/GV.481.pdf, The Texas Enterprise Fund, the largest "deal -closing" fund of its kind in the nation, continues to attract businesses and jobs to Texas. The TEF can be used for a variety of economic development projects, including infrastructure development, community development, job training programs and business incentives. The fund is intended to attract high -impact facilities that have the opportunity to provide high returns for taxpayer investment. The governor controls allocations out of the Enterprise Fund with the consent of the lieutenant governor and speaker. The TEF gives Texas the competitive edge in attracting new business to the state or assisting with the substantial expansion of an existing business. To date, the Texas Enterprise Fund has brought more than 51,874 new jobs to the state, generating more than $13.7 billion in capital investment. Eligibility Criteria: o Projects that are considered for the Enterprise Fund support must: (1) Demonstrate a project's worthiness; (2) Maximize the benefits to the State of Texas; and (3) Realize a significant rate of return of the public dollars being used for the economic development of Texas. o Capital investment, job creation, wages generated, financial strength of the applicant, applicant's business history, analysis of the relevant business sector, and federal and local government and private sector financial support of a project will all be significant factors in approving the use of the Enterprise Fund. o The Governor's Office works closely with local leaders to tailor incentive packages that best meet the needs of local communities and businesses. Recruiting new business and helping to expand existing business is a dynamic process. - 97 - How to Apply: If you have a project that can benefit from the Texas Enterprise Fund, an application must be submitted to the Office of the Governor, Economic Development & Tourism Division, which provides information on how funds are to be utilized and how the proposed project meets the criteria of the program. For more information on the Texas Enterprise Fund, call 512-936-0101 or visit http://governor.state.tx.us/ecodev/financial resources/texas enterprise fund/. Additional Resources: Economic Development www.cctexas.com/economicdevelopment Corpus Christi Regional Economic Development Corporation www.ccredc.com -98- T EXAS INDUSTRY DEME LOFM F T 1 • LOAN PROGRAM Policy Description: WOVEZWAZZKV.7:1' The Texas Industry Development Program (TID) operates within a non-profit entity, Texas Small Business Industrial Development Corporation (TSBIDC). The TSBIDC was incorporated under the Development Corporation Act of 1979, Texas Civil Statute, Article 5190.6. The Office of the Governor Economic Development and Tourism administers the TID program. The Texas Industry Development (TID) Loan Program provides capital to Texas communities at favorable market rates with a single A or higher credit rating. The main objective of TID is to support projects that will stimulate the creation of jobs and corporate expansion and relocation. TID loans can be used for a variety of purposes, including the purchase of land, buildings, construction, machinery and equipment. TID financing is available for loans above $5,000,000. TID loans are generally requested by a community's economic development corporation, or EDC. Eligibility Criteria: Eligible projects must meet the project definition as outlined in the Texas Industry development Program guidelines, Development Corporation Act of 1979 and all appropriate State, Federal, and Internal Revenue regulations as applicable to the program The following is the definition for eligible projects: o The land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements (one or more) that are for the creation or retention of primary jobs and that are found by the board of directors to be required or suitable for the development, retention, or expansion of manufacturing and industrial facilities, research and development facilities, military facilities, including closed or realigned military bases, transportation facilities (including but not limited to airports, hangars, airport maintenance and repair facilities, air cargo facilities, related infrastructure located on or adjacent to an airport facility, ports, mass commuting facilities, and parking facilities), sewage or solid waste disposal facilities, recycling facilities, air or water pollution control facilities, facilities for the furnishing of water to the general public, distribution centers, small warehouse facilities capable of serving as decentralized storage and distribution centers, primary job training facilities for use by institutions of higher education, and regional or national corporate headquarters facilities. - 99 - Flow to Apply: For additional information en a Loan Assistance Program please contact (512) 936-0100 or visit: http://governor.stats.tx.us`ecodevifinanciai resources/loan assistance/ Additional Resources: Economic Development www.cctexas/economicdevelopment Corpus Christi Regional Economic Development Corporation www.ccredc.com -100- TEXAS FRJ SI R'YA1TO1 TRUST 115: GRANT _PROGRAM Policy Description: Texans have inherited a wide array of historic architecture and archeological sites that reflect the diversity of all those who have called Texas home. The most serious problem facing historic preservation in Texas is the rapid deterioration and destruction of thousands of Texas' historic and pre -historic sites. To meet this challenge, the 71st Texas Legislature established the Texas Preservation Trust Fund (TPTF) in 1989. This interest-earning fund of public and private money is administered as matching grants to qualified applicants for the acquisition, survey, restoration, preservation or for the planning and educational activities leading to the preservation of historic architectural and archeological properties and associated collections of the State of Texas. Competitive Grants are awarded on a one-to-one match basis and are paid as reimbursement of eligible expenses incurred during the project. Types of Preservation Grants include: o Development ("preservation," "restoration," "rehabilitation," and "reconstruction," as defined by the Secretary of the Interior's Standards for the Treatment of Historic Properties, 1995) architecture costs include professional fees to supervise actual construction, the costs of construction, and related expenses approved by the Commission; or archeology costs necessary for stabilizing or repairing damage sustained at an archeological site or for protective measures; or o Acquisition of absolute ownership of eligible historic resources an related costs and professional fees; or o Planning costs necessary for the preparation of property specific historic structure reports, historic or cultural resource reports, preservation plans, maintenance studies, resource surveys, local and regional preservation plans or surveys, and/or feasibility studies; or for professional inventory and/or rehabilitation of state associated held -in -trust archeological collections, professional archeological investigation for site assessment or data collection purposes and the subsequent analysis and reporting of those results to address specific and significant archeological issues to aid with archeological site planning. o Heritage Education costs necessary for training individuals and organizations about historic resources and historic preservation techniques. - 101 - Eligibility Criteria: o To be considered eligi,ie for grarassistance projects including buildings/structures, landscapes or archeological sites must have a required historic designation or be eligible to receive one. o Preservation grants can be made to any public or private entity that is the owner, manager, lessee, maintainer, potential purchaser of an eligible property, or any public or private entity whose purpose includes historic preservation. Note: If applicant is not the owner of the historic property, then the owner must be aware of the application and agree to follow all rules and conditions of the THC that are required for receipt of funds for development or planning projects. o Applicants eligible to receive grant assistance must provide a minimum of one dollar in matching cash to each state dollar for approved project costs. o To be considered for grant funding, the commission will select initial applicants to submit detailed project proposals. The project proposal consists of professional documents describing in detail how the proposed work will be carried out. A qualified professional should prepare the project proposal and all project proposals for acquisition, development and planning must be consistent with preservation standards (Architecture: The Secretary of the Interior's Standards for the Treatment of Historic Properties, 1995; Archeology: Secretary of the Interior's Standards and Guidelines for Archeology and Historic Preservation, 1983, as appropriate; Curatorial: Consistent with standards outlined in Curatorial Facility Certification Program).The project proposal must be reviewed and selected for grant funding by the THC prior to any construction work being undertaken. o All acquisition and development projects will be required to grant an easement, in a format acceptable to the Commission, to ensure the long- term preservation of the grant-assisted property. However, architectural properties and archeological sites are exempt from the easement if the property/site is designated a State Archeological Landmark (SAL) or if there is an existing conservation easement equivalent to the program requirements. The easement shall run with the land and be enforceable by the State of Texas, and its duration will be based upon the cumulative amount of grant assistance as follows: - 102 - less than $10 O00 10 years from the start of the easement $10,000 - $30,000 15 years from the start of the easement $30,001 - $50,000 20 years from the start cf the easement Greater than $50 000 30 years from the start of the easement How to Apply: Applications will be available early each year to public or private entities for projects involving eligible historic properties, sites or projects. There are two steps in the grant application process. First, all applicants are required to submit brief application forms for the Texas Historical Commission (THC) to review prior to each year's deadline. The THC will select the highest priority projects from the initial applications and invite those applicants to move forward to the second step. Successful applicants will continue the process by submitting detailed project proposals and budgets. Full project proposals will be considered by the Commission in the fall of each year. The exact timetable will be published on the THC web site as grant cycles are announced. The Texas Preservation Trust Fund Grant program is an opportunity to save and protect Texas' threatened historic structures and significant archeological sites. For additional information and to be placed on the grant application mailing list, please contact the Texas Historical Commission, Architecture Division, P.O. Box 12276, Austin, TX 78711, (512) 463-6094 or view THC's web site at www. thc. state.tx. us. Additional Resources: Economic Development www.cctexas.com/economicdevelopment Corpus Christi Regional Economic Development Corporation www.ccredc.com Development Services www.cctexas.com/developmentservices - 103 - SECTION V - 104 - BROW N FI FDS F CONCC DEVELOPMEN ' INITIATIVE (BEM Policy Description: The Brownfields Economic Development Initiative (BEDI) is a key competitive grant program that HUD administers to stimulate and promote economic and community development. BEDI is designed to assist cities with the redevelopment of abandoned, idled and underused industrial and commercial facilities where expansion and redevelopment is burdened by real or potential environmental contamination. The purpose of the BEDI program is to spur the return of brownfields to productive economic use through financial assistance to public entities in the redevelopment of brownfields, and enhance the security or improve the viability of a project financed with Section 108 -guaranteed loan authority. Therefore, BEDI grants must be used in conjunction with a new Section 108 -guaranteed loan commitment. BEDI projects must increase economic opportunity for persons of low and moderate -income or stimulate and retain businesses and jobs that lead to economic revitalization. Eligibility Criteria: o CDBG entitlement communities and non -entitlement communities are eligible to receive loan guarantees. o A request for a new Section 108 loan guarantee authority must accompany each BEDI application. BEDI and Section 108 funds must be used in conjunction with the same economic development project. How to Apply: BEDI funds are used as the stimulus for local governments and private sector parties to commence redevelopment or continue phased redevelopment efforts on brownfields sites where either potential or actual environmental conditions are known and redevelopment plans exist. HUD emphasizes the use of BEDI and Section 108 Loan Guarantee funds to finance projects and activities that will provide near-term results and demonstrable economic benefits. HUD does not encourage applications whose scope is limited only to site acquisition and/or remediation (i.e., land banking), where there is no immediately planned redevelopment. BEDI funds are used to enhance the security or to improve the viability of a project financed with a new Section 108 guaranteed loan commitment. Please refer to the Department of Housing and Urban - 105 - Development http://www.hud.gcv/officeslcod/ecci oHcdeveiccr?entInrad ramS/bediiir:dex.cfm fcr funding announcements. Applicants seeking incentives must file an application for Economic incentives before the request can be considered. Please contact the City of Corpus Christi's Economic Development Office at (361) 826-3850 to request the application or visit www.cctexas.com/economicdevelopment to download the application, or contact Peggy Sumner, Director of Environmental Services, at (361) 826-1868. 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. Additional Resources: Corpus Christi Regional Economic Development Corporation www.ccredc.com Development Services www.cctexas.com/developmentservices - 106 - ECONOMIC 1C DEVELOP E Policy Description: Authorized by section 108(q) of the Housing and Community Development Act of 1974, EDI provides grants to local governments to enhance both the security of loans guaranteed through the Section 108 Loan Program and the feasibility of the economic development and revitalization projects they finance. EDI has been the catalyst in the expanded use of loans through the Section 108 Program, one of the most potent public investment tools that HUD offers to local governments. Because Section 108 loans represent a potential risk to local governments' Community Development Block Grant (CDBG) allocations which governments pledge against potential repayment shortfalls, the EDI program offers communities a way to decrease the level of risk to their CDBG funds. HUD's Economic Development Initiative helps local governments manage and reduce this risk in at least two different ways. A local government may use an EDI grant to provide additional security for the Section 108 loan (as a loan-loss reserve or debt -service, for example), thereby reducing the exposure of its CDBG funds in the event of a default in loans made locally with the 108 funds. Or it may use this flexible grant to simply make the project more feasible by paying some of the project costs with grant funds or by reducing the interest rate to be paid from a revolving loan fund. Increasing access to capital for entrepreneurs and small business has emerged as a key component of the job growth strategy powered by the EDI grant program. This incentive is for City use only. Eligibility Criteria: o Competitive EDI grant funds can only be used in projects also assisted by the Section 108 Loan Program; such projects may involve activities such as property acquisition; rehabilitation of publicly owned property; housing rehabilitation; economic development activities; acquisition, construction, reconstruction, or installation of public facilities; and for colonies, public works and other site improvements. How to Apply: Please refer to the Department of Housing and Urban Development htt.://www.hud. •ov/offices/c •d/economicdevelo • ment/•ro• rams/bedi/index.cfm for funding announcements. - 107 - Additional Resources: Economic Development WNW. cctexa.s.con-i economiccevelccment - 108 - FCONOMIC D ,V ,FLCFM F T ADMINISTRATION ,T REAUTHORIZATION A_CT OF' 2004 iriteMVXVIEAUTZattrazm.— 0:r Policy Description: This establishes the reauthorization and improvement of the Economic Development Administration programs authorized by the Public Works and Economic Development Act of 1965. The bill strengthens the agency's ability to assist economically distressed communities by providing increased flexibility and a focus on performance. Economic development assistance programs include: o Public Works: The Public Works program grants support efforts to attract new industry, encourage business expansion, diversify local economies and generate or retain higher -skill, higher -wage jobs and investments by revitalizing, expanding and upgrading physical infrastructure. Examples of infrastructure and development facility investments supported by this program include water and sewer system improvements, skill -training facilities, industrial and business parks, industrial access roads, port and harbor improvements, business incubator facilities, multi -tenant manufacturing facilities and tourism facilities. o Economic Adjustment: Grants through the Economic Adjustment program assist communities facing the most severe of economic crises, specifically the temporary or permanent change of the local or regional economic structural base. These changes may be the result of events such as military base closings, catastrophic natural or terrorist disasters or major plant closings. Three main types of activities are funded through this program: 1) strategy or capacity -building investments that help communities organize and carry out a planning process resulting in a CEDS; 2) implementation investments, including construction of public works facilities, technical assistance, disaster mitigation assistance and local capacity building investments; and 3) revolving loan fund investments that capitalize an intermediary to make loans to local businesses that otherwise cannot access commercial credit. o Planning: The planning program for Economic Development Districts, Indian Tribes and Redevelopment Areas provides grants to support the formulation and implementation of economic development programs designed to create or retain full-time permanent jobs and income for the unemployed and underemployed in areas of economic distress. The program is designed to build the local capacity for comprehensive and collaborative economic development activities o Technical Assistance: Investments funded under the Technical Assistance program are designed to assist communities in analyzing the feasibility of an economic development investment, respond to developmental - 109 - opportunities, build and expand local organizational capacity in distressed areas. University Centers, which assist in analyzing and implementing economic development projects and programs and provide technology - transfer assistance, are funded under this program. o Research: Through its Research program, EDA measures the performance of economic development investments and develops and disseminates to practitioners information about economic development issues. o Trade Adjustment Assistance: The Trade Adjustment Assistance program funds a national network of 12 Trade Adjustment Assistance Centers to provide technical assistance to certified U.S. manufacturing firms and industries economically injured as the result of international trade competition. How to Apply: Please refer to the Economic Development Administration http://www.eda.gov/InvestmentsGrants/Investments.xml for funding announcements. Additional Resources: Economic Development www.cctexas.com/economicdevelopment F.D F,_RAL HISTORIC F.R_ESfR. 1 AT IO N TAX l '1 �L � '- C N �L 1 V E PROGRAM Policy Description: Described in Title 36 of the Code of Federal Regulations, part 67, the Department of the Interior provides regulations governing procedures for obtaining historic preservation certifications. The Federal Historic Preservation Tax Incentives Program is one of the Federal government's most successful and cost-effective community revitalization programs. The Preservation Tax Incentives reward private investment in rehabilitating historic properties such as offices, rental housing, and retail stores. The National Park Service administers the program with the Internal Revenue Service in partnership with State Historic Preservation Offices. The tax incentives promote the rehabilitation of historic structures of every period, size, style and type. They are instrumental in preserving the historic places that give cities, towns and rural areas their special character. The tax incentives for preservation attract private investment to the historic cores of cities and towns. They also generate jobs, enhance property values, and augment revenues for State and local governments through increased property, business and income taxes. The Preservation Tax Incentives also help create moderate and low-income housing in historic buildings. Through this program, abandoned or under used schools, warehouses, factories, churches, retail stores, apartments, hotels, houses, and offices throughout the country have been restored to life in a manner that maintains their historic character. Eligibility Criteria: o 20% Tax Credit: (1) The historic building must be listed in the National Register of Historic Places or be certified as contributing to the significance of a "registered historic district." (2) After rehabilitation, the historic building must be used for an income-producing purpose for at least five years. Owner -occupied residential properties do not qualify for the federal rehabilitation tax credit. (3) The project must meet the "substantial rehabilitation test." In brief, this means that the cost of rehabilitation must exceed the pre - rehabilitation cost of the building. Generally, this test must be met within two years or within five years for a project completed in multiple phases. - 111 - (4) The 20% tax credit for histcric preservation is meant to preserve histcric buildings, and not to create buildings that lock cld, but that are in effect new buildings. Thus. the Preservation Tax Incentives are not available where there is insufficient historic material to preserve at the outset of the rehabilitation. Once the integrity of a building has been lost due to deterioration, damage, or previous alterations, it can never be regained. While new material can exactly copy significant features, material integrity itself can never be re-created. It is important to select a building for rehabilitation that retains its basic physical integrity before rehabilitation. (5) The 20% rehabilitation tax credit applies to any project that the Secretary of the Interior designates a certified rehabilitation of a certified historic structure. The 20% credit is available for properties rehabilitated for commercial, industrial, agricultural, or rental residential purposes, o 10% Tax Credit: (1) The 10% rehabilitation tax credit is available for the rehabilitation of non -historic buildings placed in service before 1936. (2) As with the 20% rehabilitation tax credit, the 10% credit applies only to buildings -not to ships, bridges or other structures. The rehabilitation must be substantial, exceeding either $5,000 or the adjusted basis of the property, whichever is greater. And the property must be depreciable. (3) The 10% credit applies only to buildings rehabilitated for non- residential uses. Rental housing would thus not qualify. Hotels, however, would qualify. They are considered to be in commercial use, not residential. (4) Projects undertaken for the 10% credit must meet a specific physical test for retention of external walls and internal structural framework: A. At least 50% of the building's external walls existing at the time the rehabilitation began must remain in place as external walls at the work's conclusion, and B. At least 75% of the building's existing external walls must remain in place as either external or internal walls, and C. At least 75% of the building's internal structural framework must remain in place. - 112 - The 10% rehabilitation tax credit applies only to non -historic buildings first placed in service before 1936 and rehabilitated fcr non-residential uses. The 20% rehabilitation tax credit applies only to certified historic structures, and may include buildings built after 1936. The twa credits are mutually exclusive. Buildings listed in the National Register of Historic Places are not eligible for the 10% credit. Buildings located in National Register listed historic districts or certified State or local historic districts are presumed to be historic and are therefore not eligible for the 10% credit. In general, owners of buildings in these historic districts may claim the 10% credit only if they file Part 1 of the Historic Preservation Certification Application with the National Park Service before the physical work begins and receive a determination that the building does not contribute to the district and is not a certified historic structure. How to Apply: Owners seeking certification of rehabilitation work must complete Part 2 of the Historic Preservation Certification Application - Description of Rehabilitation. Long-term lessees may also apply if their remaining lease is 27.5 years for residential property or 39 years for nonresidential property. The owner submits the application to the State Historic Preservation Office (SHPO). The SHPO provides technical assistance and literature on appropriate rehabilitation treatments, advises owners on their applications, makes site visits when possible, and forwards the application to the National Park Service (NPS), with a recommendation. The NPS reviews the rehabilitation project for conformance with the Secretary of the Interior's Standards for Rehabilitation, and issues a certification decision. The entire project is reviewed, including related demolition and new construction, and is certified, or approved, only if the overall rehabilitation project meets the Standards. Both the NPS and the IRS strongly encourage owners to apply before they start work. After the rehabilitation work is completed, the owner submits Part 3 of the Historic Preservation Certification Application -Request for Certification of Completed Work to the SHPO. The SHPO forwards the application to the NPS, with a recommendation as to certification. The NPS then evaluates the completed project against the work proposed in the Part 2 -Description of Rehabilitation. Only completed projects that meet the Standards for Rehabilitation are approved as "certified rehabilitations" for purposes of the 20% rehabilitation tax credit. The NPS charges a fee for reviewing applications, except where the total rehabilitation cost is under $20,000. Fees are charged according to a two-tiered system: a preliminary fee and a final fee. The $250 preliminary fee covers NPS - 113 - review of proposed work. The final fee covers NPS review of completed projects. The final fee depends on the rehabilitation costs, according to the fee schedule below. The preliminary fee is deducted from the final fee. Payment should not be sent until requested by NPS. The NPS will not issue a certification decision until payment has been received. Fee Size of Rehabilitation $500 $20,000 to $99,000 $800 $100,000 to $499,999 $1,500 $500,000 to $999,999 $2,500 $1,000,000 or more For more information please contact Heritage Preservation Services National Park Service at (202) 513-7270 or visit www.nps.gov/history/hps/TPS/tax/. Additional Resources: Economic Development www.cctexas.com/economicdevelopment Corpus Christi Regional Economic Development Corporation www.ccredc.com Development Services www.cctexas.com/developmentservices - 114 - NEW MARKETS '1AX CR DIT Policy Description: Funded by the Community Development Financial Institutions Fund (CDFI), the New Market Tax Credit Program (NMTC) permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDE). Substantially all of the qualified equity investments must in turn be used by the CDE to provide investments in low-income communities. The audit provided to the investors totals 39% of the cost of the investment and is claimed over a seven (7) year credit allowance period. First three years credit is equal to 5% of the total amount paid for the stock or capital investment at the time of purchase. The final four years the credit is 6% annually. Investors may not redeem their investments in CDEs prior to the conclusion of the seven-year period. Eligibility Criteria: o An organization wishing to receive awards under the NMTC Program must be certified as a CDE by the Fund. o To qualify as a CDE, an organization must: (1) Be a domestic corporation or partnership at the time of the certification application; (2) Demonstrate a primary a mission of serving, or providing investment capital for, low-income communities or low-income persons; and (3) Maintain accountability to residents of low-income communities through representation on a governing board of or advisory board to the entity. o An organization that is currently certified as a CDFI by the CDFI Fund or designated as a Specialized Small Business Investment Company by the Small Business Administration automatically qualifies as a CDE and may register to become a CDE via the folowing online registration link: For more detailed information, please refer to the CDE Certification page. How to Apply: For current information and application materials please visit www.cdflfund.gov/what we do/applicants.asp or contact the New Markets Tax Credit Support Line at (202) 622-6355. - 115 - Additional Resources: Economic Development Office w'NDN.cctexas.com/economicdevelocemnt - 116 - SECTION VI ,i',&111X . GENERAL STATEMENT OF PURPOSE The City of Corpus Christi (the "City") recognizes the significant contributions of small businesses to the local economy. The City will support the start-up of new small businesses as well as the development, growth, and retention of existing small businesses by offering efficient services and technical assistance through the Economic Development Office, Development Services, Neighborhood Services, Purchasing and Engineering Departments or any other appropriate city department. The Corpus Christi Business and Job Development Corporation (4A Board) incentive program also offers funding for the promotion and development of new and expanded business enterprises. The City will also partner with other community organizations which provide services to small businesses and will offer a resource directory and referrals as requested or needed. The City of Corpus Christi reserves the right to determine the eligibility of an applicant for 4A Board funds and programs and the terms and conditions of any assistance to be provided to any small business based on Small Business Support Guidelines and Criteria. Nothing herein shall be construed to limit the authority of the City to examine each request and/or application for assistance before it on a case-by-case basis and determine in its sole and absolute discretion whether or not the proposed project should be granted any assistance and whether the project complies with the Small Business Support Guidelines and Criteria, is feasible, and whether or not the proposed assistance will enhance the City's economic base. Inclusion in the Small Business Guidelines and Criteria of other programs and services is intended to assist small businesses and is provided for informational purposes only. Information on eligibility services and programs provided by other groups is not an endorsement or an assurance of the quality of services which may be provided. All information provided to or developed by the City regarding Small Business Support Guidelines and Criteria services may be subject to disclosure under the Texas Public Information Act. The City of Corpus Christi City Council shall have discretion to vary, alter, and/or waive any guideline or criteria set forth herein when such variance, alteration, and/or waiver shall be in the public interest and in furtherance of the purposes and goals of the City as determined. THE CITY MAY REQUIRE THAT FUTURE LARGE BUSINESS INCENTIVE AGREEMENTS INCLUDE A PROVISION TO SUPPORT SMALL LOCAL BUSINESSES. This provision may be in the form of capital or other forms of assistance which may be needed by small businesses. - 118 - H. AUTHORITY The City adopted this policy by Resolution No. 027468 on October 30, 2007. The policy is intended to provide guidance to city staff and applicants regarding programs and services available for small businesses. III. DEFINITION OF SMALL BUSINESSES: A for-profit employer located within the City limits of Corpus Christi with 49 or less full-time employees, or an interested party requesting assistance for the start-up of a business which is in conformance with the definition above. IV. ELIGIBILITY REQUIREMENTS Each program offered within this document may have specific eligibility criteria. Please contact the specific provider for detailed information. V. HOW TO GET HELP To obtain information and assistance you may contact the City's Economic Development Department located at City Hall, 1201 Leopard Street, 5th floor or by calling (361) 826-3850 or go to: http://www.cctexas.com/economicdevelopment/ VI. SMALL BUSINESS START UPS AND EXISTING SMALL BUSINESS EXPANSIONS SUPPORT Listed below are services available, through the City or its business partners to small businesses. The City's Economic Development Department will assist interested parties in accessing these services and will maintain and or revise these guidelines and criteria, subject to council approval, as may be needed. There are a variety of programs to directly assist small businesses, ranging from providing detailed information on City and regional services to help with startup questions and providing assistance with permitting issues. The City also provides online bidding registration, tax incentive forms, and grant application forms via the internet. The Small Business Support Guidelines and Criteria support both small business start-ups and existing small business expansions. - 119 - A. Direct Assistance Exhibit A. 10 key steps to Starting a Business (121) Exhibit B. Corpus Christi Business Fund Alliance (128) Exhibit C. Small Business Advocacy Program (SBAP) (131) Exhibit D. Procurement Technical Assistance Center (PTAC) (133) Exhibit E. Business Resources and Technology Link (134) • Corpus Christi Regional Economic Development Corporation (CCREDC) • Small Business Development Center (SBDC) • Corpus Christi Regional Transportation Authority DBE Certification • SCORE • Downtown Management District (DMD) B. Development and Retention Programs The Economic Development Office, in partnership with the business community and economic development agencies, administers several programs for small business development and retention to create a more healthy economy for Corpus Christi. • Corpus Christi Business and Job Development Corporation (4A Board) • Renewal Community • ACCION Texas C. Small Business Advocacy and Support Groups The Economic Development Office is an advocate for small business concerns and provides information and services to ensure that small businesses have a voice in many issues that affect their ability to succeed. Links are provided for business associations which are available to support small businesses: • Corpus Christi Black Chamber of Commerce • Corpus Christi Chamber of Commerce • Corpus Christi Digital Community Development Corporation- WIFI • Corpus Christi Hispanic Chamber of Commerce • Downtown Merchants Association • Flour Bluff Business Association • North West Business Association • Small Business Council • West Side Business Association - 120 - EXHIBIT A 10 -KEY STEPS TO STARTING A BUSINESS Corpus Christi bletd 101 AI -America City Ci� tyof Corpus Christi The City of Corpus Christi Economic Development Office 10 Key Steps to Starting a Business (For businesses within Corpus Christi city limits) There are several key steps to starting a business in the City of Corpus Christi. The steps may vary according to the type of business you intend to start, but the following 10 steps will give you a general idea. Note: Many of the following steps can be researched and accomplished by first visiting the respective web sites listed, rather than calling or visiting agency offices. For those business start-ups that do not have access to the Internet, you may visit any of the City's Community Service Centers or Public libraries to get online. 1. Get Basic information The City of Corpus Christi main library provides significant resource materials, including information on market research, trademark and service marks, how-to books on a variety of businesses and industries, etc. The Central library also offers workshops on computer hardware/software use and small business related material including patent, trademark and copyright issues. For more information, contact: City of Corpus Christi Central Library 805 Comanche Corpus Christi, TX 78401 (361) 826-7000 Website: http:l/www.cclibraries.com/ - 121 - The U.S. Small Business Administration has a Business Resource Center which provides free access to a variety of information, education and training designed to help entrepreneurs start, operate and grow their business. In addition, there is on-site free counseling provided by the Seriice Corps of Retired Executives (SCORE). For more information contact: U.S. Small Business Administration 3649 Leopard Street Suite 411 Corpus Christi, TX 78408 (361) 879-0017 ext. 21 http://www.sba.gov/localresources/district/tx/harlingen/ SCORE 3649 Leopard Street Suite 411 Corpus Christi, TX 78408 (361) 879-0017 ext. 22 http://www.score-corpus-christi.orq/ 2. Create a Business Plan A business plan is like a roadmap; it shows you where you are in relation to where you want to be. Whether you believe in a business plan or not, starting a business involves many ideas that need to be documented and actions that need to be taken. Many businesses fail without a business plan, and furthermore, banks require one prior to being considered for a loan. Contact: Small Business Development Center 3209 S. Staples Corpus Christi, TX 78411 (361) 698-1021 http://www.delmar.edu/sbdc/ 3. Determine a Business Name The name you chose for your business is very important. If the name you choose is your own legal surname and a one -word description (such as JohnSmith Roofing) then you are not required to register a fictitious business name. If you choose a business name that does not meet these parameters (such as JS Expert Roofing) and your business is not registered with the state then state law requires you to file an assumed name certificate with Nueces County. Please note that this statement does not protect the business name. Nueces County Clerk Office 901 Leopard Street Corpus Christi, TX 78401 (361) 888-0580 http://www.co.nueces.tx.us/countyclerk/ - 122 - 4. Determine the Legal Structure of the Business Several legal structures exist in the state of Texas. Your choice of legal structure will affect your income taxes and personal liability. Most businesses start as a Sole Proprietorship or a General Partnership and are generally the least complicated. Limited Partnerships, Limited Liability Partnerships, Corporations, and Limited Liability Companies must register with the Secretary of State. You are strongly advised to contact your own accountant or attorney for advice and assistance in determining the best legal structure for you and your business. Texas Business Portal (512) 463-5455 website: http://www.texasonline.com/portal/tol 5. Determine the Business Activity Type There is a classification system for business activity types in Corpus Christi, which identifies a business activity and determines many of the start-up requirements and where the business can be located. Determine the general business activity type from the list below. The same list is also provided with Business Tax Certificate application. Agriculture (11) Transportation and Warehousing (48-49) Educational Services (61) Mining (21) Information Services (51) Health Care/Social Assistance (62) Utilities (22) Finance and Insurance (52) Arts/Entertainment/Recreation (71) Construction (23) Real Estate/Rental/Leasing (53) Accommodation/Foodservices (72) Manufacturing (31-33) Professional/Scientific/Technical (54) Other Services (81) Wholesale (42) Management Services (55) Public Administration (92) Retail (44-45) Administrative Support (56) U.S. Census Bureau 4600 Silver Hill Road Washington, DC 20233 website: http://www.census.gov/ 6. Select a Site and Determine Zoning and Site Permit Requirements Determining zoning requirements prior to signing a lease or contract is imperative. You must check with the City to see if the type of business you plan to operate is legal in the desired location. You can usually receive same day information on the status of your location if you have the proposed business address and a description of the business when you contact: City of Corpus Christi Development Services Department 2406 Leopard Street Corpus Christi, TX 78408 website: http://www.cctexas.com/developmentservices Zoning- (361) 826-3583 - 123 - Permits- (361) 826-3282 If operating from home, you must follow the requirements for Home Occupations. You can obtain this information by contacting: City of Corpus Christi Accounts Receivable/Collections Office 1201 Leopard Street Corpus Christi, Texas 78401 361-826-3060 Neighborhood Services Code Enforcement 1201 Leopard Street Corpus Christi, TX 78469 (361) 826-3170 website: http://www.cctexas.com/neighborhoodservices 7. Obtain Any Special Licenses and Permits The business activity type chosen determines the licenses and permits needed to operate a business legally. Some of the key contacts are listed below. The Texas Online database provides detailed information on the business permit, license and registration requirements from all levels of government. The information includes a description of the requirement, the name, address, and telephone number of the agency, and frequently, a direct Zink to that agency's Internet web pages. The information identified is specific to the type of business and its location in Texas. Texas Online website: http://www.state.tx.us/ For a list of Regulated Occupations and Professional Services, contact: Texas Department of Licensing and Regulation website: http:// www.license.state.tx.us/ For information on Crime Prevention Services contact: City of Corpus Christi Police Department -Special Operations Division (361) 826-2849 website: http://www.cctexas.com/police/ Businesses selling tangible personal property in the state of Texas must apply for Seller's Permit/Resale Number Texas Comptroller of Public Accounts 111 E. 17th. Street - 124 - Austin, TX 78774-0100 (800) 252-5555 website: http:l/',w,w.window.state.tx.us/taxpermitl Businesses engaged in selling goods by weight or volume must register the devices with the County Agriculture, Weights and Measures Office. Permits must usually be obtained by: import/export businesses, agricultural -related production, and businesses using pesticides. Texas Department of Agriculture (512) 463-7476 website: http:l/www.agr.state.tx.usl Business engaged in: selling or handling food products, operating a pool or spa, handling hazardous materials, underground storage tanks, medical wastes, x-ray equipment, or waste handling must contact: City/County Health Department 1702 Horne Road Corpus Christi, TX 78415 (361)826-7200 website: http:/Iwww.cctexas.com/health Other permits and licenses may also be required. 8. Get Tax Information Several types of taxes may be levied on businesses including income tax, employment tax and Sales Tax. For more information contact: Texas Comptroller of Public Accounts 111 E. 17th. Street Austin, TX 78774-0100 Sales and use Tax (800) 252-5555 Franchise Tax (800) 252-1381 Certificates of Good Standing (800) 252-1386 website: http://www.window.state.tx.us/ Texas Comptrollers of Public Accounts 400 Mann Suite 600 Corpus Christi, TX 78401 (361) 882-1234 website: http://www.window.state.tx.us For state employment taxes visit the Texas Workforce Commission Information center: Texas Workforce Commission 3649 Leopard Street, Suite 600, 78408-3233 (361) 882-2873 website: http://www.twc.state.tx.us - 125 - For federal tax information and a copy of the "Small Business Resource Guide" and invaluable tool to help business owners understand the basics contact: Internal Revenue Service (800) 829-1040 website: http://www.irs.gov/ 9. Employer Responsibilities A whole new set of responsibilities arises when a business hires employees. Employers must register as an employer and obtain a federal Employer Identification Number (EIN), pay additional taxes, withhold, match and submit employee withholdings, must obtain worker's compensation insurance and adhere to employee eligibility regulations. The EIN, also known as a Federal Tax Identification Number, is a nine -digit number that the IRS assigns to business entities. The IRS uses this number to identify taxpayers that are required to file various business tax returns. EINs are used by employers, sole proprietors, corporations, partnerships, non-profit organizations, trust and estates, government agencies, certain individuals and other business entities. Federal Employer ID numbers can be obtained by completing form SS -4 on-line or calling: Internal Revenue Service (800) 829-4933 website: http://www.irs.gov/businesses/small/article/0„id=102767,00.html Get information on state requirements, taxes and services for employers by contacting: Texas Workforce Commission 3649 Leopard Street, Suite 600, 78408-3233 (361) 882-2873 website: http://www.twc.state.tx.us 10. Determine if a Business Tax Certificate (License) is Required For information contact: (City) City of Corpus Christi Accounts Receivable/Collections Office 1201 Leopard Street Corpus Christi, Texas 78401 361-826-3060 (County) Nueces County Clerk Office 901 Leopard Street Corpus Christi, TX 78401 (361) 888-0580 - 126 - http://wAniv.co.nueces.tx.uslcountyclerk/ (Statewide) Texas Comptrollers of Public Accounts 400 Mann Suite 600 Corpus Christi, TX 78401 (361) 882-1234 website: http://www.window.state.tx.us City of Corpus Christi Community Service Centers The following organizations offer computer access to the general public. Small Business Development Center 3209 S. Staples (361) 698-1021 By following these key steps, the process should run more smoothly. If you need additional information please contact the City of Corpus Christi Economic Development Office. City of Corpus Christi Economic Development Office 1201 Leopard Street Corpus Christi, TX 78469 (361) 826-3850 e-mail: irmaca(c�cctexas.com website: http://www.cctexas.com/economicdevelopment/ - 127 - EXHIBIT B Corpus Christi Fund Alliance (CCFA) Program Description: The Corpus Christi Business Fund Alliance (CCBFA) was formed in August 2007 to form partnerships with local financial entities to help communities grow economically stronger through outreach, financing programs, technical assistance and training. CCBFA Loan Programs: • Community Development Block Grant (CDBG) o Micro -enterprise assistance that allows grantees and or private or public organizations to facilitate economic development through the establishments, stabilization and expansion of micro -enterprises with CDBG assistance. o CDBG funds may be used to provide: technical assistance, and o general support, not subject to the 15% cap on public services. The following are examples of general support: • Child care • Transportation • Counseling • Peer support programs o Eligibility of services is subject to availability of funding, creation of jobs for the low -medium income population and identification of service needs as CDBG national objective. o For additional information or to apply, please call (361) 826-3017 or visit their website at: http://www.cctexas.com/communitydevelopment/ • Corpus Christi Business and Job Development Corporation (4A Board) The 4A Board was created to facilitate the creation of jobs through grants and loans to businesses and organizations by offering incentives. Funds are approved for the following projects: Educational and Skills Development, Business Development/Incubation and Jobs for small and - 128 - medium to large business services. The following business categories may apply: Medium to Large Business Services • Offers financial incentives for the creation of jobs through grants • Funds are approved for the following projects: Education and Skills Development; Business Development/Incubation and Job creation • For additional information or to apply, please call (361) 826- 3850 or visit our website at http://www.cctexas.com/economicdevelopment/ Small Businesses Services • Offer microloans for small businesses through ACCION Texas for up to $50,000 • For additional information or to apply, please call (361) 698- 2421 or visit their website at http://www.acciontexas.orq • Small Business Administration (SBA), 504 Loan Program o $50,000 to $2 million o Loans for businesses within the state of Texas o 90% financing on owner -occupied real property and 10% owner equity o For additional information or to apply, please call (361) 879-0017 or visit their website at http://www.sba.gov/tx/harlingen • Small Business Administration (SBA) Community Express Loan Program o Serves Minorities, Women, Veterans and low to moderate income areas, Hub Zones and other SBA designated areas. o Loan amounts of $5K up to $50K in even $1,000 increments o Unsecured, 10 year term, No prepayment penalty, No tax returns, 85% SBA Guarantee o Prime + 4.75% -adjusted quarterly for loans $5,000-$25,000 o Prime + 3.75% adjusted quarterly for loans $26,000-$50,000 o For additional information or to apply, please call (361) 879-0017 or visit their website at http://www.sba.gov/tx/harlingen • Small Business Administration Express Loan Program o Connects borrowers and lenders with an innovative and simplified approach to small business financing. o Maximum loan amount for the new SBAExpress has been increased to $350,000. - 129 - o Maximum Interest rate, which may be fixed or variable, prime rate and can vary depending on the size of the lo c For addit onal information or to apply, please call (361) visit their web at http:iiwww.sba.gov/tx/harlingen - 130 - is tied to the an. 879-0017 cr Exhibit C City of Corpus Christi Procurement Division Small Business Advocacy Program Small Business Advocacy Program (SBAP) The City Procurement Division is committed to assisting local small businesses grow and prosper. Towards that end, the City Procurement Division will encourage soliciting informal bid opportunities from local small businesses where adequate competition exists. The Procurement Division through the SBAP assists local small businesses and historically underutilized businesses (HUBs) including Minority business enterprises (MBE) and Women owned business enterprises (WBE). Registration through the City's Procurement Division website will assist these business enterprises to obtain information regarding City contracts. Companies wanting to do business with the City are required to complete a Request for Supplier Information packet. This form is available for completion and can be submitted online on the City's Website. Use the following webpage address to pull up the form: http://www.cctexas.com/purchasing/supplier addform.cfm The individual completing the form will enter the company name, the address, contact information and phone and facsimile numbers. Additionally, the type(s) of products and/or services that the business can provide will need to be completed. These products and services are cross referenced to category numbers that are used by the City to identify businesses that can provide the products or services that are being procured. We also request all suppliers to identify if they are HUB certified and whether they can be classified as a Corpus Christi Small Business. The City Purchasing Department is working with Del Mar College PTAC to establish a database of contract bid and award data for the purpose of establishing a baseline. The baseline will in turn provide a tool to help City Purchasing evaluate possible goals for contract awards for small business and HUB businesses. Another project in negotiation is an improvement of the City Purchasing On-line Vendor registration. The goal of this project is to provide decentralized city purchasing activities access to the vendor registration database, allow decentralized and centralized City Purchasing the ability to generate reports from the database, and to provide a mechanism to track - 131 - contract bids and awards for the future to allow for evaluation. The goal is to improve access and contracting opportunity for Corpus Christi small businesses and Corpus Christi HUB businesses. - 132 - EXHIBIT D Procurement Technical Assistance Center (PTAC) Procurement Technical Assistance Center (PTAC) The Procurement Technical Assistance Center (PTAC) is partially funded by the Department of Defense and is designed to increase the number and type of businesses selling products and services to government agencies. The PTAC can help any business interested in doing federal, state, or local government contracting through the following services: • Free Confidential Counseling • Federal, State and Local Registrations and Certifications • Plan Room with Plans for Area Government Projects • Website posting of Federal, State and Local Contracting Opportunities • Access to Bid Packages, Plans and Specifications • Access to Dodge Reports for South Texas • Bid Match Service • Interpretation of Bid Documents, Proposal Assistance • Network Opportunities with Area Governmental Agencies • Seminar and Workshops on a Variety of Procurement topics • Assistance with Conversion to Electronic Commerce • Certification for Disadvantaged Business Enterprise (DBE) -Available through the Regional Transportation Authority (link) For more information or to apply, please call (361) 698-1025 or visit PTAC online at: http://www.delmar.edu./sbdc/ptac.html - 133 - EXHIBIT E BUSINESS RESOURCE LISTING CITY OF CORPUS CHRISTI SERVICES Community Development The mission of Community Development is to enhance the quality of life, health, and welfare of Corpus Christi citizens by assisting in the maintenance and development of affordable housing and providing safe and viable neighborhoods through; • Planning, implementation and administration of the City's Community Development Block Grant, HOME, Emergency Shelter Grants Program, and Continuum of Care. • Community Development provides guidance and program oversight in the implementation of the Consolidated Plan and the Corpus Christi Strategic Plan to End Homelessness. Contact information: City Hall Community Development Department 2406 Leopard Street Corpus Christi, TX 78408 (361) 826-3017 http://www.cctexas.com/communitydevelopment/ Development Services The City Council identified a successful "One -Stop Shop" Development Center as a community priority. The Development Services Department is responsible for all planning, development and permitting activities in Corpus Christi. The. department is organized into a single business unit, consisting of Building Inspections, Planning and Special Services. Goals for the department include: • Enhance the City's outreach efforts to promote economic development in cooperation with the Chamber of Commerce and the Economic Development Corporation. • Implement new permitting and inspections software, including on-line permitting and inspection request options. • Quicker turnaround on inspection results for customer benefits. • Implement on-line payment for permit fees. • Improvement of infrastructure plan review. • Improvement of plat acceptance procedures. - 134 - Quick, consistent turnaround time on commercial and residential plan review. • Implement the Unified Development Code, which will consolidate Zoning, Platting and other associated codes of the City. • Install a front counter area so that over-the-counter business can be transacted for all divisions within the department. Contact information: City Hall Development Services Department 2406 Leopard Street Corpus Christi, TX 78408 Website: http://www.cctexas.com/developmentservices Zoning- (361) 826-3583 Permits- (361) 826-3282 Economic Development Office The Economic Development Office supports the start up of new small businesses as well as the development, growth, and retention of existing small businesses by offering a variety or programs and services to small business owners and potential business investors. These include: tax incentive application assistance, referrals, research, presentations and information. The Economic Development Office also manages the following programs that offer financial assistance and other services to small businesses: • Corpus Christi Business and Job Development Corporation • ACCION TEXAS • Corpus Christi Regional Economic Development Corporation • Corpus Christi Prospector In addition to refunds on state and sales use tax and tax abatement, Corpus Christi Renewal Community (RC) provides Federal tax incentives which allow targeted businesses to reduce their tax liability. These will include the following programs: • Federal Tax Savings Opportunity • Renewal Community Wage Credits • Welfare to Work Credits • Work Opportunity Tax Credits • Commercial Revitalization Deductions • Section 179 Deductions • Historic Tax Credit • Tax Abatement - 135 - Contact information: City Hall Economic Development Office 1201 Leopard Street Corpus Christi, TX 78469 (361) 826-3850 http://www.cctexas.com/economicdevelopment/ Engineering Engineering Services is responsible for all City construction contracts, including: • Preparation of bid/contract documents • Development of plans and specifications • Advertising • Bid opening • Construction administration and payments Some departments assume a greater role in some aspects of construction projects due to specialized expertise or resource availability, i.e. Airport, Water, and Wastewater. Construction contracts are reviewed by the Department of Risk Management and the City Attorney prior to award. Minor maintenance work or service calls are handled by individual departments and governed by Purchasing Department policies and procedures. Contact information: City Hall Engineering Services 1201 Leopard Street Corpus Christi, TX 78401-2825 (361)826-3506 http://wwvv.cctexas.com/enqineerinq/ Municipal Information Services MIS department function is to assist in the delivery of quality products and services by managing the enterprise data center for GIS, HTE, KRONOS and PeopleSoft systems and by providing connectivity & customer services that will allow for the optimum usage of enterprise data as well as effective and efficient data, voice and video communications. Our mission is to offer 24x7 service to our customers for all problems, requests and questions pertaining to their business processes. - 136 - Contact information: City Hall Municipal Information Systems 1201 Leopard St. Corpus Christi, TX 78401 (361)826-3740 http://www.citynet.cc/?fuseaction=main.view&page=972 Geographic Information Systems Access the City's GIS Web Site and view interactive maps. • Zoom in to view the base map, points and lines for water, storm water, gas, and sewer, city limits, annexations, Area Development Plans, Street ROW, zoning, land use, and center lines, as well as street signs, lights, and subdivisions. • Data is continually added to the GIS in order to make it functional for those departments and citizens that require access to this information. • You can also access a number of Digital Maps in pdf format, including Council Member Districts, Area Development Plans, Census Tracts, Street Maps, Current Land Use, Zoning, Economic Development and Political Maps. For more information on either GIS or conventional maps of the City of Corpus Christi, please contact the GIS Group at (361) 826-3532 or the Development Services at (361) 826-3240. Contact information: City Hall Geographical Information Systems 1201 Leopard St. Corpus Christi, TX 78401 (361)826-3532 http://www.gissites.com/corpus/ Neighborhood Services The mission of Neighborhood Services is to protect and improve the quality of life, health, and welfare of Corpus Christi citizens by: • assisting in the maintenance and development of safe and viable neighborhoods • to ensure the health and life safety of citizens of Corpus Christi by obtaining compliance with the technical construction codes adopted by the City - 137 - • To protect and improve the quality of life, health and welfare of the community through enforcement of the housing, health and zoning regulations Contact information: City Hall Neighborhood Services 1201 Leopard St Corpus Christi, TX 78401 (361)826-3234 http://www.cctexas.com/neiohborhoodservices/ Zoning and Code Enforcement Administration (361) 826-2489 http://www.cctexas.com/neighborhoodservices/ OTHER COMMUNITY RESOURCES Corpus Christi Black Chamber of Commerce The Black Chamber of Commerce was organized to promote the growth and stability of Black/minority enterprises in the city of Corpus Christi, Texas and other surrounding areas as follows: • To work with present as well as future industry and interested private citizens to establish a favorable business climate for Black/minority enterprises in the Coastal Bend area; • To identify creative and innovative business opportunities; • To maintain and disseminate business information to Chamber members; • To provide networking opportunities with industry, financial institutions, government agencies, civic groups, Black/minority businesses, educational and cultural interest the area; and • To provide and maintain suitable facilities to conduct the business of the Black Chamber. Contact information: Corpus Christi Black Chamber of Commerce 3209 S. Staples, Rm. 165 Corpus Christi, TX 78411 (361) 877-3634 http://ccblackchamber.tripod.com/ - 138 - Corpus Christi Chamber of Commerce An advocate of the local business community in problem solving, promotion of economic development and various critical areas of local, county and state issues. • Networking opportunities through Business after hours mixers, new member coffees, small business luncheons and various special events • Internet exposure via Chamber's website business directory and CorpusChristiDaily.com with hyperlinks • Business referrals. • Chamber lobby display for business cards and literature for members • Welcome and relocation packet for military base opportunity • Membership in the U.S. Chamber of Commerce Federation Partnership • Grand opening and Ribbon cutting ceremonies • Business directory listing of Chamber membership • E -Blasts of weekly Chamber event reminders and monthly newsletters • Advertisement of brands through member sponsorships • Business Development resource • Issue manager groups that cover a wide range of interests such as Education -Workforce, Governmental Affairs, Infrastructure, Technology, Military affairs, Small Business issues and Ambassadors • Outreach services • Leadership Corpus Christi program Contact information: Corpus Christi Chamber of Commerce 1201 N. Shoreline Blvd. Corpus Christi, Texas USA 78401 (361) 881-1800 http://www.corpuschristichamber.orq/ Corpus Christi Hispanic Chamber of Commerce (CCHCC) , CCHC serves as the small business liaison between the business community and the community at large. The CCHC serves the community through active participation in education, leadership, public affairs, and creating business opportunities for its members. • Business network of counselors, teachers and mentors • Partnerships with SBA, SBDC and WorkSource • Advocates the growth and development of small, minority and women owned businesses • Offers personalize training seminars in networking, marketing, small business development and leadership - 139 - Contact information: Corpus Christi Hispanic Chamber r of Commerce 615 N. Upper Broadway. Ste 4".0 Corpus Christi, TX. 78477 (361) 887-7408 http://www.cchispanicchamber.org/ Corpus Christi Regional Economic Development Corporation (CCREDC) The CCREDC is the economic development organization responsible for the retention, expansion and recruitment of primary employers, regardless of employee size, in, and to, Corpus Christi. • The primary focus of the retention, expansion and recruitment efforts is to assist primary employers in the retention and/or creation of high -paying primary jobs and capital investment in Corpus Christi. • A primary employer is a business in which at least 70% of its goods and/or services are sold to customers that are located more than 50 miles from Corpus Christi, thereby brining outside dollars into Corpus Christi and increasing the wealth of the city and its residents. Contact information: Corpus Christi Regional Economic Development Corporation 800 N. Shoreline Boulevard Suite 1300 South Corpus Christi, Texas 78401 (361) 882-7448 http://ccredc.com Procurement Technical Assistance Center (PTAC) The Procurement Technical Assistance Center (PTAC) is partially funded by the Department of Defense and is designed to increase the number and type of businesses selling products and services to government agencies. The PTAC can help any business interested in doing federal, stare, or local government contracting through the following services: • Free Confidential Counseling • Federal, State and Local Registrations and Certifications • Plan Room with Plans for Area Government Projects • Website posting of Federal, State and Local Contracting Opportunities • Access to Bid Packages, Plans and Specifications • Access to Dodge Reports for South Texas • Bid Match Service • Interpretation of Bid Documents, Proposal Assistance • Network Opportunities with Area Governmental Agencies - 140 - • Seminar and Workshops on a Variety of Procurement topics • Assistance with Conversion to Electronic Commerce Contact information: Del Mar College Small Business Development Center 3209 S. Staples Corpus Christi, TX 78411 (361) 698-1021 http://wvvw.delmaredu/sbdc/ptac.html Service Corps of Retired Executives (SCORE) SCORE stands for Service Corps of Retired Executives and is affiliated with the Small Business Administration (SBA), an agency of the United States. SCORE advises and counsels small business entrepreneurship by the following means: • Face to Face meetings • Conduct workshops • Furnish small business related written materials and text manuals to clients • Business counseling via email, telephone conferencing and office trips • Publication of articles of interest and knowledge to small business • Referral Services Contact information: SCORE -Chapter 21 3649 Leopard Street, Suite 411 Corpus Christi, TX 78408 (361) 879-0017 ext. 22 http://www.score-corpus-christrorq Small Business Administration (SBA) The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. SBA's District Offices are responsible for the delivery of SBA's many programs and services throughout the country. Services available include: • Free counseling, advice and information on starting a business through the Service Corps of Retired Executives (SCORE). • Financial assistance for new or existing businesses through guaranteed loans made by area bank and non-bank lenders. - 141 - • Free consulting services through the network of Small Business Development Centers. SBOCs also conduct training events throughout the district - some require a nominal registration fee. • Assistance to businesses owned and controlled by socially and economically disadvantaged individuals through the Minority Enterprise Development Program. • Women's Business Ownership Representatives are available to advise women business owners. • Special loan programs are available for businesses involved in international trade. • Guaranteed loans are available for credit -worthy veterans. Contact information: SBA 3649 Leopard Street, Suite 411 Corpus Christi, TX 78408 (361) 879-0017 ext. 21 http://www.sba.00v/localresources/district/tx/harlingen/index.html Small Business Development Center (SBDC) The Del Mar College SBDC provides free consulting and technical assistance to the local small business community. The SBDC mission is to simply help small businesses start and grow. The SBDC program supports the growth and development of the Coastal Bend economy by assisting in job creation, economic diversification, and business expansion. • Free and confidential counseling • Business Plan preparation • Loan packaging • Marketing research • Seminars and workshops on a wide variety of business topics such as QuickBooks, Marketing, Advertising, Starting a business step by step, Business Taxes Made Easy, etc. • Free Online Training Opportunities • Assistance in developing and implementing quality controls • Assistance to women, low-income and minority entrepreneurs including credit counseling, personal finance management counseling, small business management and loan packaging • Outreach activities to inform women, low-income and minority entrepreneurs of services available - 142 - Contact information: Small Business Development Center 3209 S. Staples Corpus Christi, TX 78411 (361) 698-1021 http://www.delmar.edu/sbdcl Texas A & M University Corpus Christi (TAMUCC) The Office of Community Outreach at TAMUCC is dedicated to achieving the Imperatives of Momentum 2015 by building successful community/University partnerships, engaging faculty and students, and providing programs to meet community needs. Contact information: Higher education- Main switchboard (361) 825-5700 http://www.tamucc.edu Continuing Education and Professional Development Courses • Online courses • Open enrollment workshops and seminars • Customized training programs • Faculty researchers and consultants -innovative ideas & advanced knowledge in wide range of fields • Access to statewide A&M system faculty and resources Contact information: Community Outreach 6300 Ocean Drive, NRC 2200 Corpus Christi, Texas 78412 (361) 825-5966 http://outreach.tamucc.edu Skilled Workers- • A&M -CC Graduates (Bachelors, Masters and Doctoral graduates) • A&M -CC Students • Part-time workers (paid) • For -credit internships (paid and unpaid) • Work study students (subsidized workers for eligible non -profits) • Service learning and experiential -learning projects (student classroom projects) - 143 - Contact information: Career Services Office 6300 Ocean Drive Corpus Christi, TX 78412 361-825-2628 http://career-services.tamucc.edu - 144 - APPENDIX A DEFINITIONS 10 Key Steps to Starting a Business Guide -A step by step guide developed by the City of Corpus Christi Economic Development Department to assist persons interested in starting a business. ACCION Texas- A local micro -lending program that assist small business owners obtain capital by buying down the interest of their qualified loans. Corpus Christi Business Fund Alliance -Coordination of local financial resource organizations that support small businesses. Corpus Christi Digital Community Development Corporation (CCDCC)- The CC Digital Community Development Corporation is a non-profit corporation created by the City of Corpus Christi to leverage the City's WiFi infrastructure for the advancement of community, including government, public safety, education, business, health care, and residents. The primary service of the corporation is to provide the Corpus Christi community with expanded access and competitive commercial Internet services, and ensure ISPs have opportunities to participate. Corpus Christi Business and Job Development Corporation (4A Board) - The goals of the 4A Board is to facilitate the creation of jobs through grants and loans to businesses and organizations by offering incentives. Corpus Christi Prospector- City of Corpus Christi Economic Development Office Geographic Information System site that provides information and mapping for available commercial properties along with workforce demographics, business information and interactive maps. Corpus Christi Regional Economic Development Corporations (CCREDC)- The Corpus Christi Regional Economic Development Corporation organizes, coordinates, and leads the expansion of the Corpus Christi region's economic base through actions and programs that encourage and cause retention, expansion, and recruitment of industrial, manufacturing, distribution, and service employers. Disadvantaged Business Enterprise (DBE)- Federal program managed by the United States Department of Transportation to recruit socially and/or economically disadvantaged firms. Procurement Technical Assistance Center (PTAC)- The Procurement II Technical Assistance Center (PTAC) is partially funded by the Department of Defense and is designed to increase the number and type of businesses selling 1 - 145 - products and services to government agencies. The PTAC can help any business interested in doing federal, state, or local government contracting through their small business services. Renewal Community- Corpus Christi's Renewal Community provides special federal tax incentives to businesses located in the Renewal Community which includes 1990 census tracts 1, 3, 4, 10 and 11 and 2000 census tracts 5, 7, 13, 35, and 5. SCORE- stands for Service Corps of Retired Executives and is affiliated with the Small Business Administration (SBA), an agency of the United States. SCORE advises and counsels small business entrepreneurship. Small Business- A for-profit employer located within the City limits of Corpus Christi with 49 or less full-time employees, or an interested party requesting assistance for the start-up of a business which is in conformance with the definition above. Small Business Advisory Committee (SBAC) - The SBAC was created to advise the Economic Development Office on projects and programs to initiate, enhance, or research for the purpose of retaining, expanding, creating small and historically underutilized businesses. Small Business Advocacy Program (SBAP)- Targeted at local small businesses and historically underutilized businesses including Minority business enterprises (MBE) and women owned business enterprises (WBE). To help them obtain City contracts. To help them obtain other business opportunities associated with businesses receiving incentives from the City of Corpus Christi. Small Business Development Center (SBDC)- The Del Mar College SBDC provides consulting and technical assistance to the local small business community. The SBDC mission is to simply help small businesses start and grow. The SBDC program supports the growth and development of the Coastal Bend economy by assisting in job creation, economic diversification, and business expansion. Texas Unified Certification Program (TUCP)- The Regional Transportation Authority in cooperation with the United States Department of Transportation and the Texas Department of Transportation certify Disadvantaged Business Enterprises (DBE) under 49 CFR, Part 2B, 26. SECTION VII SUBJECT: DOWNTOWN Traffic Engineering Div. Engineering Services Dept. - 148 - SCALE: N.T.S. AERIAL FLOWN 2006 11#!111111 VIII Mine SUBJECT: NORTH BEACH JANUARY 30, 2008 Traffic Engineering Div. Engineering Services Dept. - 149 - SCALE: N.T.S. AERIAL FLOWN 2008 MEW 0111•111 SUBJECT: PADRE ISLAND Traffic. Engineering Div. Engineering Services Dept. - 150 - SECTION VIII j city of on _ Corpus E. Christi For City Use Only Date Received APPLICATION FOR INCENTIVES Date of Application: Catalyst Areas: Corpus Christi (North) Beach, Downtown, Padre/Mustang Islands, Renewal Community Census Tracts Check All Incentives Applicant Is Applying For: Tax Abatement Tax Increment Financing Public Improvement District Type A Renewal Community Enterprise Zone 380 Agreement Municipal Management District Industrial District Freeport Exemption Fast Track Permitting Process Industrial Revenue Bond Large Retail/Mixed Use Development & Redevelopment NAFTA Impact Zones Neighborhood Empowerment Zone Economic Development Refund (See Attached Fee Schedule for each incentive) Municipal Development Districts Brownfields SECTION I — APPLICANT INFORMATION AND BUSINESS DESCRIPTION Company Name: Address: City: State: Zip: Principal Contact Name: Title: Mailing Address: - 153 - City: State: Zip: Telephone: Fax: E-mail Address: 1.1 Indicate ownership of applicant company: Private Public 1.2 Indicate applicants type of business entity, i.e., proprietorship, partnership, joint venture, or corporation: 1.3 Identify applicant's state of registration or incorporation, if applicable: 1.4 Identify business headquarters location (City, state): 1.5 Identify individual who will sign for the business entity. 1.6 Does/will the applicant own or lease the project land and/or facility: If leased, indicate lease term: Expiration date: 1.7 Indicate applicant's total workforce: Full-time: Part-time: 1.8 Provide applicants existing Nueces County Appraisal District tax account numbers: Real Property: Personal Property: Inventory/Supplies: 1.9 Identify the owner(s) of the real and/or personal property if applicant is not the owner: 1.10 Is the company delinquent in the payment of ad valorem taxes to any taxing unit located in Nueces County: Yes No If yes, explain: 1.11 Will your project diversify the local economy? Yes No If yes, explain: 1.12 Explain how you will include disadvantaged, minority or women -owned businesses as suppliers and/or contractors. 1.13 Describe any city infrastructure improvements your project may require. 1.14 Please list any state or federal incentives you have applied for. SECTION H — PROJECT DESCRIPTION 2.1 Type of facility (check): Agribusiness Aviation Biotechnology Basic Industrial Manufacturing Service Facility Petrochemical Facility Warehouse/Distribution Center Environmental Technology (clean or green technology) Telecommunication/Data Processing Center Visitor/Amusement Facility Significant Projects in Catalyst Areas, including but not limited to mixed-use and multifamily housing Engineering Services _ Medical Corporate Headquarters _ Commercial Redevelopment Retail Other: 2.2 Indicate project location (street address): 2.2.1 Is the project located in a Catalyst Area? 2.2.2 If yes, pjovide name of Catalyst Area. 2.3 Type of project: New Construction Expansion or modernization Lease Development or improvements 2.4 Fully describe the proposed project, including capital improvements (real and personal property) to be undertaken, the facility's use, and the product or service to be produced: 2.4.1 Provide the equity and total project investment. 2.5 Zoning required for operation: 2.5.1 Current Zoning: - 155 - 2.5.2 1s the property platted? Yes No 2.5.3 Is the property served by adequate infrastructure? Water: Wastewater: Storm Water: Gas: 2.5.4 Is a master plan amendment required before infrastructure can be extended? 2.5.5 Are off-site traffic control improvements required? Yes No 2.6 Briefly justify how this incentive(s) is/are necessary for the project to be completed: 2.7 Provide a timeline for the project completion, indicate commencement and completion dates: SECTION III — PROJECT VALUATIONS 3.1 As provided by the Nueces County Appraisal District, indicate the appraised values of the following: Land (excluding acquisition costs) Value: Date: Existing real property Value: Date: Existing personal property Value: Date: 3.2 Indicate the estimated project improvement values: Real property: Personal property: I nventory/supplies: SECTION IV — PROJECT JOB CREATION 4.1 Number of new, permanent jobs to be created: Full-time: — Part-time: 4.2 Number of jobs retained: Full-time: Part-time: - 156 - 4.3 indicate the number of new, full-time jobs tc be created for each year of the project: Year New Retained 1 Executive 2 Professional 3 4 5 Administrative Year New Retained 6 7 8 9 10 4.4 Indicate the project impact on the following job classifications: Number of Full -Time Jobs Avg. Annual Salary Number of Positions Created Number of Positions Retained Executive Professional Managerial Administrative General Labor — Other Total 4.5 Estimate the impact of the project on sales, property, and hotel/motel taxes. 4.6 Does the project have future expansion potential. 4.7 Describe the benefits package to be offered to employees: - 157 - 4.8 Describe the investment in training/education that will be made for jobs created* SECTION V — OTHER PROJECT INFORMATION 5.1 Has the company or any of its affiliates been cited, currently under investigation, or have litigation pending for any violations of Federal, State, or Local laws, codes or ordinances: Yes No If yes, indicate the nature/status of violation(s) 5.2 Is any interest in the proposed project presently held by a member of the Corpus Christi City Council or other City official or employee: Yes No If yes, please indicate person 5.3 If required, indicate your agreement to: • Authorize a background check. • Commission an economic impact study. • Provide financial assurances. Note: Background check and economic impact study will be done by a firm of the City's choice at applicant's expense. - 158 - APPLICATION ATTACHMENTS The following information supports various application sections and is needed to fully evaluate the company for incentives. Applications will not be considered until all the required information is received: SECTION I — APPLICANT INFORMATION AND BUSINESS DESCRIPTION 1. Provide information regarding the applicant company's description, including corporate structure, annual financial statement or prior year report, and organization chart identifying affiliates and subsidiaries, if any. SECTION II — PROJECT DESCRIPTION 2. Indicate property description and attach a map showing the location of the existing and proposed improvements and the legal description SECTION ID — OTHER PROJECT INFORMATION 3. Provide an assessment of the proposed project's environmental impact, and any remediation and/or compliance plan associated with the project, which would have the effect of minimizing the negative impact of the project on the environment. 4. Please describe any other State or Federal incentives you are applying for with regard to this project: 5. Include a letter of authorization for signing authority for the person signing this application. - 159 - APPLICATION FEE SCHEDULE Note: Applications will be processed once the required payment has been received by the City as per the Fee Schedule. Applicants applying for multiple incentives will receive a "bundle fee". The application fee should be made by check or money order and payable to the City of Corpus Christi, Economic Development Department. INCENTIVE # OF EMPLOYEES FEE Tax Abatement 0-15 16-99 100-499 500 + $0 $500 $1,000 $1,500 380 Agreement $5,000 Tax Increment Financing $5,000 Industrial District $500 Type A Small Business Large Business (Primary) $100 $1,000 Industrial Revenue Bond $1,000 Municipal Management District $5,000 Public Improvement District $5,000 Fast Track Permitting Process Subject for Review Bundle Fee Incentives Subject for review *The City may waive economic Development fees in which the City is competing with other localities. - 160 - CERTIFICATION I certify that I am authorized to sign the incentive application and that the information provided in this application is true and correct. I understand that the information provided will become a part of any agreement with the City of Corpus Christi. I also understand and certify that I have read the policy guidelines for each policy in which I am applying for and am familiar with the provisions contained therein. The application must be complete and returned for consideration prior to the submission of an application for a building permit or the issuance of a certificate of occupancy, whichever comes first. Upon receipt of this application, the City of Corpus Christi shall require such financial and other information as may be deemed appropriate for evaluating the financial capacity and other factors of the applicant. For more information or questions agree to a background check, will commission an economic impact study, and will provide financial assurances, if required. The background check and economic impact study will be done by a firm of the City's choice at applicant's expense. Signature: Date: Printed Name: Title: Company Name: Complete applications should be submitted to: Director of Economic Development City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 - 161 -