Loading...
November 7, 1996 . . . SCHERTZ ECONOMIC DEVELOPMENT COMMISSION MINUTES NOVEMBER 7, 1996 SCHERTZ MUNICIPAL COMPLEX ITEM #1 CALL TO ORDER: The meeting was called to order at 7:00 p.m. Borgfeld, Chairman. by Mr. Lew THOSE PRESENT: THOSE ABSENT: Lew Borgfeld Harry Richburg Byron Williams Tim Fetter W. J. Sweatt Robert Vallance, Sr. Ben Davis Jackie Jones Stacy Ware Henry Gutierrez Jeff Zunker Eric White STAFF PRESENT: Kerry R. Sweatt Mark Marquez Earleen Ehlers ITEM #2 APPROVAL OF MINUTES: Ms. Jackie Jones made the motion to approve the minutes as presented, Mr. Tim Fetter seconded the motion which carried unanimously. ITEM #3 WELCOME TO NEW MEMBER STACY WARE: Mr. Mark Marquez welcomed newest member to the Board, Mr. Stacy Ware. Everyone expressed their appreciation for his interest in being on the Board. ITEM #4 REVIEW/DISCUSSION-TAX ABATEMENT GUIDELINES & CRITERIA: Mr. Marquez explained that the guidelines and criteria will sunset on December 31, 1996. He submitted recommended changes to the guidelines and discussed each change in depth. To summize; abatement standard term changed from six to five years, amounts of capital improvement over initial investment $75,000 for an additional one percent abatement went from $50,000 to $45,000. Extended abatement times went from 1 to 4 years to 1 to 5 years in order that a maximum of ten years could be given. Tightening of application procedures was discussed requiring company making application to supply . . . -2- description of project including estimated values of capital improvements to be made to property, personal property, land/price and inventory. Description of kinds and number of jobs and estimated payroll, as well as description of products or services if sales tax is base of abatement. The tax I.D. of the property is needed as well as a site plan showing building footprint, landscaping, fencing, etc. Also added was the requirement for representatives of the company requesting abatement to attend public hearings, council meetings, and commission meetings where the abatement is being discussed. One very important addition is a paragraph explaining the responsiblilty of the company requesting abatement to provide a letter to the taxing entity certifying it meets or exceeds criteria for which abatement was approved, on or prior to January 15th of each year during the term of the abatement; and that failure may constitute a default causing termination of the abatement. Mr. Richburg asked if the school and county still receive tax. Mr. Marquez said yes, that is correct, although county may decide to abate as well. We do not encourage abatements from the school district. full the tax Ms. Sweatt asked if the criteria and guidelines are competitive with other cities in the area. Mr. Marquez answered with our guidelines are more conservative. Mr. Sweatt said that our guidelines are very close to the County guidelines. Mr. Marquez said that the one places abate personal property. compared to others. major difference is that some So, we are still conservative Mr. Vallance asked if more conservative means less competitive. Mr. Marquez said that having published guidelines allows the companies to know up front what is available so that they deal with him after weeding out other cities. It may be that in some cases the companies do not even contact Mr. Marquez because the guidelines and criterion are not enough to meet their needs. Mr. Fetter asked if there is flexibility in the guildelines. Mr. Marquez said that there are variances, but personal property issues will probably come up again. It seems that large manufacturing companies with a lot of personal property are looking for abatements that include personal property. Mr. Marquez went on to explain that the Board should look at these abatements as investments. What is our threshhold and what are we willing to invest to have certain types of businesses relocate here. Mr. Davis relocated answered asked if there were big companies that to Schertz after looking at the area. Mr. that he receives many calls and has mailed have not Marquez out many . . . -3- packages of guidelines and criteria. Many companies have not followed through once getting all the necessary information. Mrs. Sweatt added that businesses relocating have wanted existing buildings and Schertz did not have any available. Ms. only also Jones the those said that it might be good for the Board to know companies who make it to the abatement process, who contact us, but do not wish to move here. not but Mr. Davis said he just wanted to know if the Board was approving abatements for companies that were going to relocate to Schertz whether they had taxes abated or not. Mr. Marquez reiterated that because guidelines and criteria are published and open to the public, companies are using them to make the decision to move to Schertz. They expect that if they meet the criterion that the abatement will be given. Ms. W.J. Sweatt moved to accept the 1996 "proposed" City of Schertz Guidelines and Criteria for Tax Abatement and Reinvestment Zones as written. Mr. Bob Vallance seconded the motion which was approved unanimously. ITEM #5 - DISCUSSION/FOLLOW-UP OF BUSINESS APPRECIATION DINNER: Ms. Sweatt discussed the 7th Annual Business Appreciation Dinner and estimated that approximately 190 people attended. She stressed that more help is needed because the dinner is growing. The dinner will probably be moved to the Knights of Columbus hall next year and La Pasadita's table will be moved to the other side of the room from where they normally are to help with the flow of people. (K of C agreed on the $150 as long as the dinner did not fall on the same day as their Bingo which is Thursday and Sunday nights.) She noted that there were too many door prizes. A discussion ensued on the type of speaker for next year. Ms. Sweatt added that they should start earlier next year than they did this year. More time was needed to set up. She also wanted to express her appreciation to the Fire and Streets Departments for all their help and support in preparing for the dinner. She asked that a thank you note be given to each department. Ms. Jones stated that the Commission owes a word of thanks and applause to Wanda Jean Sweatt and Petra Marquez as well as Dot Harborth and Kermit who were instrumental in putting on the dinner. ITEM #6 COMMISSION MEMBER COMMENTS: Mr. Williams said that he had heard negative comments the City of Schertz regarding permits and inspections. Marquez said that he would look into the matter. about Mr. No other member comments. . . . -4- ITEM #7 STAFF COMMENTS: Mr. Marquez handed meet with resident Discussion to be for out a sheet on "20 industry: " for the next meeting. reasons why you need to the members to read. ITEM #8 CHAIRMAN'S COMMENTS: No comments, other than the discussion on the tax abatement information was very enlightening. ITEM #9 SET NEXT MEETING DATE: Next meeting set for the third Thursday in January which is January 16, 1997; 7:00 p.m. at the Municipal Building. ITEM #10 ADJOURN: Ms. Sweatt made a motion to adjourn which was seconded by Mr. Tim Fetter. Motion carried. : B6:~~~"E~~ Chairman Recording Secretary . AGENDA Schertz Economic Development Commission Meeting Schertz Municipal Complex November 7, 1996 7:00 p.m. 1. Call to order 2. Approval of Minutes 3. Welcome to New Member Stacy Ware 4. Review/Discussion-Tax Abatement Guidelines & Criteria 5. Discussion/Follow-Up of Business Appreciation Dinner 6. Commission Member Comments 7. Staff Comments 8. Chairman's Comments . 9. Set Next Meeting Date 10. Adjourn . . . . Date: October 30, 1996 To: Chairman & Members Schertz Economic Development Commission From: Mark Marquez Economic Development Coordinator Subject: Information Memo l. Welcome to Mr. Stacy Ware, our newest member. 2. One of the key issues to consider during this meeting is our Tax Abatement Guidelines and Criteria. They will sunset on December 31, 1996, and the Commission must make recommendations to City Council on changes, if any, and continuation. Attached to your agenda is a copy of the current criteria and the changes I recommend. The intent of my recommendation is to raise the threshold needed to reach our maximum level of 90% for ten years. While adjusting the threshold is warranted, I believe it is essential the program maintain stability and predictability. Several options are available to achieve that objective. First, we can change our standard abatement from six years to five years. Second, we can simply raise the dollar figure allowed for each percentage of abatement. The third option changes our term from six years to five years, lowers the figure for each percentage of abatement. The third option is the recommended option. Several charts are attached that describe the outcome of this change. I have also revised the application process for more clarity. I have not tried to address abatement of personal property at this writing. If it is an essential element to land a desirable prospect, I will bring it forward as a variance. This issue requires more indepth discussion because it goes to the heart of our program. We currently focus on capital improvements as a way to expand our "permanent" tax base. The question now revolves around shifting the focus of our program toward different types of companies, and what is needed to attract them. 3. Business Appreciation Dinner. My reading of the Business Appreciation Dinner was a "good show." Many glowing comments were received about the decorations, and special kudos are deserved for Mrs. Sweatt and her crew. We did have some glitches that require correction, but overall an excellent event. . . . -2- 4. For those of you who did not receive the ICMA Economic Development book, you may stop by my office to get one. I will also have them at the meeting. 5. Also included in the package is a copy of the Austin/San Antonio Corridor Council "Crosstalk." I have made arrangements (for a small charge) to have copies for each member. I have also made arrangements with .the Texas Economic Development Council (TEDC) to have copies of their newsletter as well. 6. Finally, I have California sponsored Council. I believe it trip to Corridor just returned from a by the Austin/San was successful. marketing JI.ntonio 10. 11. . 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. . ECONOMIC DEVELOPMENT COMMISSION NOVEMBER 7, 1996, 7:00 P.M. SIGN-IN SHEET 1. 2. 3. 4. 5. 6. ~~ 7. 8. 9.