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Home My WebLink About028835 RES - 11/09/2010Page 1 of 2 RESOLUTION AMENDING THE CITY OF CORPUS CHRISTI ECONOMIC DEVELOPMENT INCENTIVE POLICIES 2009 — 2011 TO INCORPORATE THE CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPORATION'S AMENDED GUIDELINES AND CRITERIA FOR GRANTING BUSINESS INCENTIVES, WHICH RECOGNIZE NON-STANDARD EMPLOYEES WHEREAS, on November 17, 2009, the City Council by Resolution 028424, adopted the City of Corpus Christi Economic Development Incentive Policies 2009 – 2011, which incorporated the Corpus Christi Business & Job Development Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, the Board of Directors, Corpus Christi Business & Job Development Corporation, on October 18, 2010, adopted amendment to the Corporation's Guidelines and Criteria for Granting Business Incentives, which recognizes non-standard employees (a copy of the amendment is attached to and incorporated into this resolution as Exhibit A); and WHEREAS, the City's Incentive Policies need to updated to reflect the amendment to the Corporation's Guidelines and Criteria; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The description of the Local Incentive for the Business & Job Development Corporation (Type A) in the City of Corpus Christi Economic Development Incentive Policies 2009 – 2011 is revised . A copy of the revised incentive policy is attached to and incorporated into this resolution as Exhibit A. ATTEST: Armando Chapa City Secretary APPROVED: 3rd day of November, 2010. R. Jaeng First ssistant City Attorney For City Attorney THE CITY OF CORPUS CHRISTI Joe Mayor 028835 Incentive Policies -- Non -Standard Employee Amendment Resolution -- 11032010 ame INDEXED Page 2 of'2 Corpus Christi, Texas of AfOlValdkAi, 2010 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry R. Elizondo, Sr. Kevin Kieschnick Priscilla Leal John E. Marez Nelda Martinez Mark Scott ,d47 -z, 7fr Akf /lat 028835 Incentive Policies -- Non -Standard Employee Amendment Resolution -- 11032010 EXHIBIT A BUSINESS & JOB DEVELOPMENT CORPORATION Policy Description: Described in Chapter 504 of the Texas Local Government Code, www.statutes.legis.state.tx.us/Docs/LGlpdf/LG.504.pdf, the Corpus Christi Business & Job Development Corporation (CCBJDC) gives local communities the ability to adopt optional focal 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 (118th cent) to be imposed for 15 years. The City Council reserves the right to waive or modify this policy Eligibility Criteria: 0 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) EduoationlSkills 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 Developmentllncubation. 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. 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. (3) 0 Business Incentives Authorized (1) Incentives authorized for Large Employers: A. Land, facilities, equipment & infrastructure grants; B. Loan participation/guarantees; A-1 Incentive Policies -- Non -Standard Employee Amendment Exhibit A --11012010 C. Direct low interest loans; D. 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. 0 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 matrices shall be considered. New Gross Payroll Incentive per New Job for Employees New Gross Payroll $30,000 per new job Incentive per New Job $30,000 to $40,000 per new job $40,001 to $50,000 per new job >$50,000 per new job Up to $750 per new job for training $751 to $5,000 per new job $5,001 to $10,000 per new job $10,001- per new job A-2 Incentive Policies -- Non -Standard Employee Amendment Exhibit A —11012010 New Gross Payroll Incentive per New Job for Contractors and Consultants New Gross Payroll <$33,000 per new iob Incentive per New Job $33,000 to $44,000 per new, job Up to$750 per new iob for training $751 to $5,000 per new iob $44,001 to $55,000 per new lob >$55,000 per new iob $5,001 to $10,000 per new iob $10,001+ per new job 0 Definition of Job: "Job" means a full time employee or an individual hired as a contractor, consultant, or leased employee. The contractor or consultant must have a home address in the Corpus Christi Metropolitan Statistical Area. 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 826-3312 to request the application or visit www.cctexas.comleconomicdevelopment 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 A-3 Incentive Policies -- Non -Standard Employee Amendment Exhibit A —11012010