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07/26/2022-4B-Agenda Packet-Regular4B DEVELOPMENT CORPORATION MEETING AGENDA JULY 26, 2022, 6:00 PM 4B DEVELOPMENT CORPORATION REGULAR MEETING HISTORIC CHURCH BUILDING - 403 N 7TH STREET, SANGER, TEXAS CALL THE REGULAR MEETING TO ORDER AND ESTABLISH A QUORUM INVOCATION AND PLEDGE CITIZENS COMMENTS This is an opportunity for citizens to address the Corporation on any matter. Comments related to public hearings will be heard when the specific hearing begins. Citizens are allowed 3 minutes to speak. Each speaker must complete the Speaker’s Form and include the topic(s) to be presented. Citizens who wish to address the Corporation with regard to matters on the agenda will be received at the time the item is considered. The Corporation is not allowed to converse, deliberate or take action on any matter presented during citizen input. DISCUSSION ITEMS 1. Presentation and discussion on the renovations to Porter Park. REPORTS Director of Economic Development 2. Financial Reports. CONSENT AGENDA All items on the Consent Agenda will be acted upon by one vote without being discussed separately unless requested by a Board member to remove the item(s) for additional discussion. Any items removed from the Consent Agenda will be taken up for individual consideration. 3. Approval of Minutes from 06/28/22 ACTION ITEMS 4. Consideration and possible act on electing officers for the Sanger Development Corporation. 5. Consideration and possible action on amending the Economic Development Incentive Policy. 1 6. Reconsider and possible action on the 4B Fiscal Year 2022-2023 Budget. FUTURE AGENDA ITEMS The purpose of this item is to allow the President and Board members to bring forward items they wish to discuss at a future meeting, A Board member may inquire about a subject for which notice has not been given. A statement of specific factual information or the recitation of existing policy may be given. Any deliberation shall be limited to a proposal to place the subject on an agenda for a subsequent meeting. Items may be placed on a future meeting agenda with a consensus of the Corporation or at the call of the President. ADJOURN NOTE: The Corporation reserves the right to adjourn into Executive Session as authorized by Texas Government Code, Section 551.001, et seq. (The Texas Open Meetings Act) on any item on its open meeting agenda in accordance with the Texas Open Meetings Act, including, without limitation Sections 551.071-551.087 of the Texas Open Meetings Act. CERTIFICATION I certify that a copy of this meeting notice was posted on the bulletin board at City Hall is readily accessible to the general public at all times and posted on the City of Sanger website on July 21, 2022, at 12:15 PM. /s/ Stefani Dodson Stefani Dodson, Secretary The Historical Church is wheelchair accessible. Request for additional accommodations or sign interpretation or other special assistance for disabled attendees must be requested 48 hours prior to the meeting by contacting the City Secretary’s Office at 940.458.7930. 2 Percent Budget Actual of Budget Revenue Sales Tax 600,000 452,890 75% Interest Income 10,000 #19,823 198% Total Revenue 610,000 472,713 77% Expenditures Salaries and Benefits 56,700 18,144 32% Transfer to Debt Service Fund 212,500 0% Supplies and Matterials 17,400 7,431 43% Maintenance and Operation 600 280 47% Contract Services 28,175 6,080 22% Grant Expenses 50,000 5,000 10% Total Expenditures 365,375 36,935 10% Revenues Over Expenditures 244,625 435,779 Cash in Bank - Checking 199,980 Certificate of Deposit 284,473 Claim on Cash 1,822,494 Total Cash 2,306,947 May 31, 2022 Fund 4B Sanger Texas Development Corporation 3 Item 2. 6-29-2022 08:08 AM CITY OF SANGER PAGE: 1 BALANCE SHEET AS OF: MAY 31ST, 2022 42 -4B CORPORATION ACCOUNT # ACCOUNT DESCRIPTION BALANCE _____________________________________________________________________________________________ ASSETS ====== 42-00-1000 CLAIM ON CASH 1,822,494.37 42-00-1010 CKG - 4B CASH (2379694) 199,979.53 42-00-1013 CD - 4B #653500 22,149.24 42-00-1014 CD - 4B #659924 21,905.19 42-00-1015 CD - 4B #664243 22,001.01 42-00-1016 CD - 4B #673277 21,954.26 42-00-1017 CD - 4B #686115 21,973.29 42-00-1018 CD - 4B #689521 21,893.69 42-00-1019 CD - 4B #694371 21,978.57 42-00-1020 CD - 4B #697230 22,104.72 42-00-1021 CD - 4B #699934 22,027.75 42-00-1022 CD - 4B #702285 21,838.70 42-00-1023 CD - 4B #706078 21,749.16 42-00-1024 CD - 4B #720097 21,430.98 42-00-1025 CD - 4B #720119 21,466.21 42-00-1153 SALES TAX RECEIVABLE 101,507.68 2,408,454.35 TOTAL ASSETS 2,408,454.35 ============== LIABILITIES =========== 42-00-2000 ACCOUNTS PAYABLE CONTROL 1,297.99 42-00-2403 ACCRUED WAGES PAYABLE 1,340.72 42-00-2900 ENCUMBRANCE ( 6,080.00) 42-00-2910 RESERVE FOR ENCUMBRANCE 6,080.00 42-00-2950 DUE TO GENERAL FUND 67,407.55 TOTAL LIABILITIES 70,046.26 EQUITY ====== 42-00-3015 FUND BALANCE - RESTRICTED 1,920,879.30 TOTAL BEGINNING EQUITY 1,920,879.30 TOTAL REVENUE 472,713.54 TOTAL EXPENSES 55,184.75 TOTAL REVENUE OVER/(UNDER) EXPENSES 417,528.79 TOTAL EQUITY & REV. OVER/(UNDER) EXP. 2,338,408.09 TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 2,408,454.35 ============== 4 Item 2. 6-29-2022 08:12 AM CITY OF SANGER PAGE: 1 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: MAY 31ST, 2022 42 -4B CORPORATION FINANCIAL SUMMARY % OF YEAR COMPLETED: 66.67 CURRENT CURRENT YEAR TO DATE TOTAL BUDGET % YTD BUDGET PERIOD ACTUAL ENCUMBERED BALANCE BUDGET ____________________________________________________________________________________________________________________________ REVENUE SUMMARY TAXES 600,000 64,395.29 452,890.48 0.00 147,109.52 75.48 INTEREST 10,000 323.39 19,823.06 0.00 ( 9,823.06) 198.23 TOTAL REVENUES 610,000 64,718.68 472,713.54 0.00 137,286.46 77.49 EXPENDITURE SUMMARY 74-TRANSFERS 212,500 0.00 0.00 0.00 212,500.00 0.00 76-4B FUND 352,875 5,158.45 55,184.75 6,080.00 291,610.25 17.36 ____________________________________________________________________________________________________________________________ TOTAL EXPENDITURES 565,375 5,158.45 55,184.75 6,080.00 504,110.25 10.84 REVENUE OVER/(UNDER) EXPENDITURES 44,625 59,560.23 417,528.79 ( 6,080.00)( 366,823.79) 922.01 5 Item 2. 6-29-2022 08:12 AM CITY OF SANGER PAGE: 2 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: MAY 31ST, 2022 42 -4B CORPORATION FINANCIAL SUMMARY % OF YEAR COMPLETED: 66.67 CURRENT CURRENT YEAR TO DATE TOTAL BUDGET % YTD REVENUES BUDGET PERIOD ACTUAL ENCUMBERED BALANCE BUDGET ____________________________________________________________________________________________________________________________ TAXES 00-4325 STATE SALES TAX 600,000 64,395.29 452,890.48 0.00 147,109.52 75.48 TOTAL TAXES 600,000 64,395.29 452,890.48 0.00 147,109.52 75.48 INTEREST 00-4800 INTEREST INCOME 10,000 323.39 19,823.06 0.00 ( 9,823.06) 198.23 TOTAL INTEREST 10,000 323.39 19,823.06 0.00 ( 9,823.06) 198.23 ____________________________________________________________________________________________________________________________ TOTAL REVENUE 610,000 64,718.68 472,713.54 0.00 137,286.46 77.49 ============ ============== ============== ============== ============== ======= 6 Item 2. 6-29-2022 08:12 AM CITY OF SANGER PAGE: 3 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: MAY 31ST, 2022 42 -4B CORPORATION 74-TRANSFERS % OF YEAR COMPLETED: 66.67 CURRENT CURRENT YEAR TO DATE TOTAL BUDGET % YTD DEPARTMENTAL EXPENDITURES BUDGET PERIOD ACTUAL ENCUMBERED BALANCE BUDGET ____________________________________________________________________________________________________________________________ 74-TRANSFERS 74-7403 TRANSFER TO DSF 212,500 0.00 0.00 0.00 212,500.00 0.00 TOTAL 74-TRANSFERS 212,500 0.00 0.00 0.00 212,500.00 0.00 ____________________________________________________________________________________________________________________________ TOTAL 74-TRANSFERS 212,500 0.00 0.00 0.00 212,500.00 0.00 7 Item 2. 6-29-2022 08:12 AM CITY OF SANGER PAGE: 4 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: MAY 31ST, 2022 42 -4B CORPORATION 76-4B FUND % OF YEAR COMPLETED: 66.67 CURRENT CURRENT YEAR TO DATE TOTAL BUDGET % YTD DEPARTMENTAL EXPENDITURES BUDGET PERIOD ACTUAL ENCUMBERED BALANCE BUDGET ____________________________________________________________________________________________________________________________ 51-SALARIES AND BENEFITS 76-5110 REGULAR SALARIES 41,400 3,152.10 26,792.85 0.00 14,607.15 64.72 76-5125 LONGEVITY PAY 100 0.00 78.00 0.00 22.00 78.00 76-5128 AUTO ALLOWANCE 3,000 250.00 2,000.00 0.00 1,000.00 66.67 76-5129 CELL PHONE ALLOWANCE 300 25.00 50.00 0.00 250.00 16.67 76-5130 FICA 3,450 252.76 2,166.17 0.00 1,283.83 62.79 76-5140 RETIREMENT 3,900 296.62 2,509.19 0.00 1,390.81 64.34 76-5150 HEALTH INSURANCE 4,200 352.10 2,797.09 0.00 1,402.91 66.60 76-5160 WORKER'S COMPENSATION 250 0.00 0.00 0.00 250.00 0.00 76-5170 T W C 100 0.00 0.00 0.00 100.00 0.00 TOTAL 51-SALARIES AND BENEFITS 56,700 4,328.58 36,393.30 0.00 20,306.70 64.19 52-SUPPLIES AND MATERIALS 76-5210 OFFICE SUPPLIES 500 0.00 99.62 0.00 400.38 19.92 76-5213 COMPUTER HARDWARE 250 0.00 0.00 0.00 250.00 0.00 76-5214 COMPUTER SOFTWARE 3,375 0.00 0.00 0.00 3,375.00 0.00 76-5215 FOOD 200 0.00 0.00 0.00 200.00 0.00 76-5220 POSTAGE 50 6.10 6.10 0.00 43.90 12.20 76-5226 MARKETING & PROMOTION 15,000 428.86 5,947.74 0.00 9,052.26 39.65 76-5235 DUES & SUBSCRIPTIONS 600 360.41 510.41 0.00 89.59 85.07 76-5240 CONFERENCES & TRAINING 800 0.00 867.50 0.00 ( 67.50) 108.44 TOTAL 52-SUPPLIES AND MATERIALS 20,775 795.37 7,431.37 0.00 13,343.63 35.77 53-MAINTENANCE AND OPERAT 76-5332 OFFICE MACHINE LEASE 600 34.50 280.08 0.00 319.92 46.68 TOTAL 53-MAINTENANCE AND OPERAT 600 34.50 280.08 0.00 319.92 46.68 54-CONTRACT SERVICES 76-5425 LEGAL SERVICES 1,000 0.00 0.00 0.00 1,000.00 0.00 76-5430 PROFESSIONAL SERVICES 10,000 0.00 0.00 0.00 10,000.00 0.00 76-5450 TECHNICAL SUPPORT 1,000 0.00 0.00 0.00 1,000.00 0.00 76-5452 WEBSITE 12,800 0.00 6,080.00 6,080.00 640.00 95.00 TOTAL 54-CONTRACT SERVICES 24,800 0.00 6,080.00 6,080.00 12,640.00 49.03 56-GRANT EXPENSES 76-5601 PROMO/COMMUNITY EVENT GR 25,000 0.00 0.00 0.00 25,000.00 0.00 76-5603 PROPERTY ENHANCEMENTS IN 25,000 0.00 5,000.00 0.00 20,000.00 20.00 TOTAL 56-GRANT EXPENSES 50,000 0.00 5,000.00 0.00 45,000.00 10.00 61-CAPITAL OUTLAY 76-6116 PORTER PARK UPDATES 200,000 0.00 0.00 0.00 200,000.00 0.00 TOTAL 61-CAPITAL OUTLAY 200,000 0.00 0.00 0.00 200,000.00 0.00 8 Item 2. 6-29-2022 08:12 AM CITY OF SANGER PAGE: 5 REVENUE & EXPENSE REPORT (UNAUDITED) AS OF: MAY 31ST, 2022 42 -4B CORPORATION 76-4B FUND % OF YEAR COMPLETED: 66.67 CURRENT CURRENT YEAR TO DATE TOTAL BUDGET % YTD DEPARTMENTAL EXPENDITURES BUDGET PERIOD ACTUAL ENCUMBERED BALANCE BUDGET ____________________________________________________________________________________________________________________________ 65-CAPITAL PROJECTS ____________ ______________ ______________ ______________ ______________ _______ 70-DEBT PAYMENTS ____________ ______________ ______________ ______________ ______________ _______ 74-TRANSFER S ____________ ______________ ______________ ______________ ______________ _______ ____________________________________________________________________________________________________________________________ TOTAL 76-4B FUND 352,875 5,158.45 55,184.75 6,080.00 291,610.25 17.36 TOTAL EXPENDITURES 565,375 5,158.45 55,184.75 6,080.00 504,110.25 10.84 ============ ============== ============== ============== ============== ======= REVENUE OVER/(UNDER) EXPENDITURES 44,625 59,560.23 417,528.79 ( 6,080.00)( 366,823.79) 922.01 9 Item 2. 4B DEVELOPMENT CORPORATION MEETING MINUTES JUNE 28, 2022, 6:00 PM 4B DEVELOPMENT CORPORATION REGULAR MEETING HISTORIC CHURCH BUILDING - 403 N 7TH STREET, SANGER, TEXAS CALL THE REGULAR MEETING TO ORDER, ESTABLISH A QUORUM, AND PLEDGE With there being a quorum Jeff Springer called the meeting to order at 6:00 p.m. CITIZENS COMMENTS This is an opportunity for citizens to address the Corporation on any matter. Comments related to public hearings will be heard when the specific hearing begins. Citizens are allowed 3 minutes to speak. Each speaker must complete the Speaker’s Form and include the topic(s) to be presented. Citizens who wish to address the Corporation with regard to matters on the agenda will be received at the time the item is considered. The Corporation is not allowed to converse, deliberate or take action on any matter presented during citizen input. No citizens came forward to speak. CONSENT AGENDA All items on the Consent Agenda will be acted upon by one vote without being discussed separately unless requested by a Board member to remove the item(s) for additional discussion. Any items removed from the Consent Agenda will be taken up for individual consideration. Eddie Piercy made a motion to approve the consent agenda as shown. Carrie Bilyeu seconded the motion. Motion passes unanimously with a 4-0 vote. 1. Approval of the minutes from the May 24, 2022 meeting. REPORTS Director of Economic Development 2. Miracle Field Park Project Economic Development Director Shani Bradshaw presents the project. She explains to the board what a Miracle Field is and how it would be a great addition to our community. 3. 4B Monthly Sales Tax Report - May 31, 2022 Economic Development Director Shani Bradshaw goes over the sales tax report briefly. 10 Item 3. ACTION ITEMS 4. Consideration and possible action on changes to the Property Enhancement Grant program. Economic Development Director Shani Bradshaw explains that she would like to suggest a few changes to the current Property Enhancement Grant. She states that with the cost of construction going up she suggest the grant increase from $5,000 to $10,000. She also suggests to remove the 6-month requirement. The board has a brief discussion about the changes. Eddie Piercy made a motion to approve the changes. Beverly Howard seconded the motion. Motion passes unanimously with a 4-0 vote. 5. Consider and possible action on transferring $25,000 from Promotional and Community Events to the Property Enhancement Grant Program. Economic Development Director Shani Bradshaw explains that the Promotional and Community Event Grant that was created after the construction of the large pavilion has never been used. She suggested that the $25,000 be transfered to the current Property Enhancement Grant. Beverly Howard made a motion to approve. Eddie Piercy seconded the motion. Motion passes unanimously with a 4-0 vote. 6. Consideration and possible action on the 4B Fiscal Year 2022-2023 budget. Economic Development Director Shani Bradshaw presented 2022-23 budget. Carrie Bilyeu made a motion to approve the 2022-2023 budget. Eddie Piercy seconded the motion. Motion passes unanimously with a 4-0 vote. FUTURE AGENDA ITEMS The purpose of this item is to allow the President and Board members to bring forward items they wish to discuss at a future meeting, A Board member may inquire about a subject for which notice has not been given. A statement of specific factual information or the recitation of existing policy may be given. Any deliberation shall be limited to a proposal to place the subject on an agenda for a subsequent meeting. Items may be placed on a future meeting agenda with a consensus of the Corporation or at the call of the President. No future items were discussed. ADJOURN With there being no further items to discuss Jeff Springer adjourns the meeting at 6:45 p.m. 4B Board Representative Stefani Dodson, Secretary 11 Item 3. 4B DEVELOPMENT CORPORATION COMMUNICATION DATE: July 26, 2022 FROM: Shani Bradshaw, Director of Economic Development AGENDA ITEM: Consider and possible act on electing officers for the Sanger Development Corporation SUMMARY:  President and Vice President of the Corporation are elected by the board  Terms are one (1) year  No limitations on the number of consecutive years a person may serve in the same office FISCAL INFORMATION: Budgeted: NO Amount: $0.00 GL Account: XXX.XX.XXXX RECOMMENDED MOTION OR ACTION: Appoint a President and Vice President. ATTACHMENTS: NA 12 Item 4. C 4B DEVELOPMENT CORPORATION COMMUNICATION DATE: July 26, 2022 FROM: Shani Bradshaw, Director of Economic Development AGENDA ITEM: Consideration and possible action on amending the Economic Development Incentive Policy. SUMMARY:  The board amended the Property Enhancement Incentives Policy on June 28, 2022.  Grant amount was increased from $5,000 to $10,000 and the eligibility period was removed from Policy.  Section 3.2.3. of the Economic Development Incentive Policy must be amended since this section of the policy is affected by the removal of the eligibility period in the Grant Policy. FISCAL INFORMATION: Budgeted: NA Amount: $0.00 GL Account: XXX.XX.XXXX RECOMMENDED MOTION OR ACTION: Staff recommends approval. ATTACHMENTS: Economic Development Incentive Policy. 13 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 1 of 13 Sanger, Texas Incentives Policy WHEREAS, the Board of the City’s Type A Industrial Development Corporation (A‐Board), on February 1, 2022 and the Board of the City’s Type B Development Corporation (B‐Board) on October 26, 2021 considered and recommended approval of this Incentives Policy (Policy) to the Sanger City Council (Council); and WHEREAS, upon full review and consideration of this Policy, the Council is of the opinion that this Policy will assist in implementing programs whereby economic development will be promoted and business and commercial activity will be stimulated in the City. BE IT KNOWN, that the Council on March 21, 2022 approved Resolution 2022‐02 adopting the following guidelines and criteria as the City of Sanger’s Incentives Policy. Section 1. Introduction & Goals It is the intent of this Policy to provide guidelines and criteria, requirements, and procedures to evaluate and approve any Incentives deemed necessary by the City for the furtherance of its economic development and community goals. This Policy shall include provisions for Tax Abatement as well as use of Type A and / or Type B economic development sales tax funds, general funds of the City, and any other resources as approved by the Council. Incentives may be considered for both new facilities and for the Expansion or Modernization of existing Facilities and structures. Nothing herein shall imply or suggest that the City is under any obligation to provide any Incentive to any Applicant. The City retains the right to evaluate applications and grant Incentives, if any, as deemed appropriate on a case‐by‐case basis without the necessity of amending any contrary provisions of this Policy. Following are the goals of this Policy: 1.1. When in the best interests of the City, provide Incentives to existing businesses that will enhance the commercial viability and sustainability of existing commercial properties in the City; 1.2. When in the best interests of the City, provide Incentives to attract desired businesses or developers to invest in the City; 1.3. Encourage redevelopment of targeted areas in the City; 1.4. Create or enhance employment opportunities for residents of the City; 1.5. Increase the non‐residential ad‐valorem tax and / or sales and use tax revenue base for the City; and 1.6. Ensure that all policies, procedures and any resulting Incentive Agreements related to the provision of Incentives to stimulate economic development shall comply with all applicable state statutes. Section 2. Definitions The following definitions shall apply to the terms used in this Policy. Act: Shall mean the Development Corporation Act, now codified in Title 12, Subtitle C1, Chapters 501‐505 of the Texas Local Government Code. Agreement: Shall mean an Incentive Agreement as defined herein. 14 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 2 of 13 Agreement in Principle (AIP): Shall mean a non‐binding draft of performance requirements of a Project and any Incentives to be offered by the City. Applicant: Shall mean the Property owner or business occupant signing the Incentives Application. Application: Shall mean the Incentives Application as maintained by Staff. Appraisal District: Shall mean the Denton Appraisal District. Base Year Value: Shall mean the assessed value of the Facility on the 1st of January preceding the execution of an Incentive Agreement. Board‐A: Shall mean the Board of the Type A Industrial Development Corporation of the City. Board‐B: Shall mean the Board of the Type B Development Corporation of the City. City: The City of Sanger, Texas. Where “City” is used in this Policy as an action to be taken or an incentive to be offered, City shall include the A‐Board or B‐Board as authorized or permitted by State Law. Code Violations: Shall be as defined in the City’s adopted building or zoning codes. Construction Costs: The cost of permits, fees, construction materials, and installation labor. All other associated costs are deemed excluded, including, but not exclusively, the following costs: design, engineering, construction document preparation, bidding, and construction financing. Council: The City Council of the City. County: Shall mean Denton County, Texas. Development Corporation: Shall mean the Type A and / or Type B Development Corporation authorized by the Texas Development Corporation Act of 1979 (the Act), now codified in Title 12, Subtitle C 1, Chapters 501‐505 of the Texas Local Government Code, to collect Type A and / or Type B economic development sales and use taxes. Director: Shall mean the Director of Economic Development for the City. Effective Date: The date this Policy was approved by the Council. Employee, Full‐Time: Shall mean any employee of the company that regularly works a minimum of thirty (30) hours per week. Employee, Part‐Time: Shall mean any employee that regularly works less than thirty (30) hours a week. Employees, Full‐Time Equivalent (FTE): Shall mean the number of employees equivalent to full‐time employees, e.g. two part‐time employees working 20 hours each is equal to one full‐time employee. Expansion: Shall mean the addition of buildings, structures, fixed equipment or machinery for the purpose of increasing production capacity. Facility: Shall mean the Property, building and Improvements. Freeport Exemption: If adopted by the City, the Freeport Exemption from ad valorem taxation applies only if qualifying goods, wares, merchandise, ores, and certain aircraft and aircraft parts have been detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating. Grants: Funds provided by the City for a particular Project in accordance with this Policy. Incentive Agreement: Shall mean a written agreement summarizing the performance requirements of a business or developer and the Incentives to be provided by the City upon fulfillment of those performance requirements (e.g Tax Abatement Agreement, Chapter 380 Agreement, Performance Agreement). 15 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 3 of 13 Impact Fees: Fees adopted by the City in accordance with Chapter 395 of the Texas Local Government Code. Improvements: Shall mean the New Construction or Modernization of buildings, interiors, site work, Public Works Improvements, parking and drives, landscaping, irrigation, lighting and specifically excluding land and / or Business Personal Property. Incentives: Shall be as defined in Section 5 herein. Minimum Performance Requirements: Shall be as defined in Section 6 herein. Modernization: Shall mean the replacement and upgrading of existing facilities which increases the productive input or output, updates the technology, or substantially lowers the unit cost of the operation, and extends the economic life of the Facility. This shall not include reconditioning, refurbishing, repairing or completion of deferred maintenance on the Facility or its equipment. New Construction: Shall mean the first‐time construction of Improvements utilizing newly purchased materials, and specifically excluding any remodeling or renovations undertaken after issuance of the first Certificate of Occupancy. Payroll: The company’s total expenditures for all employees for the month immediately preceding the Application, multiplied by twelve (12). Performance Agreement: An agreement meeting the provisions of Section 501.158 of the Texas Local Government Code and entered into by a Type A or Type B Development Corporation prior to providing a direct incentive or making an expenditure on behalf of a business enterprise. Policy: Shall mean this Incentives Policy. Primary Job: A job that is 1) available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide, national, or international markets, infusing new dollars into the local economy; and 2) included in an acceptable sector of the North American Industry Classification System (NAICS) as identified in Section 501.002 (12) of the Act. Project: The initiative or investment to be provided in accordance with the performance standards of any Incentive Agreement providing Incentives. To the extent that any Type A or Type B funds are to be used as Incentives, the Project shall meet the definitions provided in the Act. Project Applicability: Shall be as defined in Section 7 herein. Property: Shall mean the physical parcel of land for which Incentives are being granted. Property – Business Personal: Shall mean the tangible and movable items used in the course of business not permanently affixed to, or part of, the real estate. Examples of Business Personal Property (BPP) include: furniture, machinery and equipment, computers, vehicles, inventory and supplies. Property ‐ Real: Shall mean the Property and the Improvements constructed on the Property. Public Works Improvements: Shall mean improvements that upon completion and acceptance shall be owned and maintained by the City. (e.g. water, sewer, streets, drainage) Recapture (aka Claw‐back): A provision in an Incentive Agreement that states how and to what extent any Incentives provided must be paid back to the City if the required performance criteria are not met. Staff: The City Manager or their designee. Tax Abatement: Shall mean the full or partial exemption from paying ad valorem taxes on real property or tangible personal property in accordance with provisions of Chapter 312 of the Texas Tax Code. Tax Abatement Agreement: Shall mean an agreement to provide Tax Abatement as authorized by Chapter 312 of the Texas Tax Code. It may also be referenced herein as an Incentive Agreement. 16 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 4 of 13 Section 3. General Eligibility The following shall establish the minimum eligibility for receiving Incentives identified in this Policy. 3.1. Properties: Only properties meeting the following requirements at the time an Application is submitted shall be eligible to receive Incentives outlined by this Policy. 3.1.1. Within the City: Property must be located within the City’s municipal boundaries unless provisions for annexation into the City are part of the Incentive Agreement. 3.1.2. Zoning: Property must be zoned for the proposed uses. 3.1.3. Taxes: Property shall be in good standing as it relates to taxes due to the City. 3.1.4. Liens: Property shall be in good standing as it relates to any liens held by the City. 3.1.5. Ownership: Property owners must provide sufficient proof of ownership. 3.1.6. Code Violations: Property must not have any outstanding code violations with the City. 3.1.7. Construction Commencement: Construction for the Facility must not have commenced prior to the approval of an Incentive Agreement. 3.2. Businesses: Only businesses meeting the following requirements shall be eligible to receive Incentives outlined by this Policy. 3.2.1. Taxes: The business shall be in good standing as it relates to taxes due to the City. 3.2.2. Property Owner Approval: Businesses, if not the owner of the property to be occupied, must provide a copy of their lease agreement and support of the Incentives Application from the Property owner prior to City approval of the Application. 3.2.3. Length of Operations: Existing businesses must have maintained operations in the City for six (6) months consecutively in order to receive Incentives. 3.3. Statutory Limitations: It is the intent of the City to comply with all statutory limitations on the use of any Type A or Type B sales and use tax funds for Projects as authorized by the Act. Section 4. Priorities The City has determined that the following are priorities for the Incentives potentially granted pursuant to this Policy. The evaluation of the merits of any Application shall take into consideration whether or not the Application also meets these priorities. 4.1. Geographic Areas: The following are the City’s preferences for providing Incentives in geographic areas of the City. 4.1.1. High Priority: A. I‐35 and F.M. 455 corridors; and B. Areas zoned Industrial or designated industrial on the future land use plan. 4.2. Businesses: The following are the City’s preferences for providing Incentives to certain types of businesses in the City. 4.2.1. High Priority: A. Industrial, manufacturing or logistics; B. Distribution centers; C. Professional / corporate offices; 17 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 5 of 13 D. Retail and restaurants; E. Providers of entertainment; F. Medical services; and G. High sales tax generators. 4.2.2. Low Priority: A. Businesses that could have reflect a negative image for the City; B. Businesses that create pollution, hazardous waste or emissions; and C. Businesses requiring excessive water usage. Section 5. Incentives Following are Incentives that the City, on a case‐by‐case basis, could consider granting for specific Projects depending on the merits of the Project. Incentives, including Tax Abatement, are available to new Facilities and structures and the Expansion and Modernization of existing Facilities and structures. This shall include the redevelopment of existing properties. Applicability for each type of Incentive shall be as shown in Section 7 herein. Any Incentives provided pursuant to this Policy shall not reduce the Base Year Value of the Facility. 5.1. Financial – Ad Valorem Taxes: The City may consider granting the following Incentives relative to Ad Valorem Taxes. 5.1.1. Real Property Tax: The City may consider abating the taxes on Real Property by approval of a Tax Abatement Agreement or by approval of an Incentive Agreement granting back Real Property taxes paid to the City. 5.1.2. Business Personal Property Tax: The City may consider abating the taxes on Business Personal Property by approval of a Tax Abatement Agreement or by approval of an Incentive Agreement granting back Business Personal Property taxes paid to the City. 5.1.3. Inventory Tax: The City grants relief of inventory taxes through their Freeport Exemption if adopted. Inventory that is not eligible for Freeport Exemption is also not eligible for Incentives pursuant to this Policy. 5.1.4. Tax Stabilization / Incremental Increase: In a situation where an existing Facility may be Expanded or Modernized, the City may consider stabilizing the ad valorem taxes collected as of the date of completion and / or an incremental yearly increase to market rates. This shall be accomplished by granting back the increase in taxes paid to the City. 5.1.5. Agricultural Exemption: The City may consider granting back all or a portion of the Ag Exemption City taxes due at the time of development. 5.2. Financial – Sales Tax Grants / Reimbursements: Through approval of an Incentive Agreement, the City may provide Grants of all or a portion of the following sales and use taxes. Where the Project is a retail development, for the purposes of evaluating and granting incentives in accordance with this Policy, sales and use taxes shall be measured net of any business relocations occurring within the City. i.e. if a retail business is currently operating in the City, and relocates to the new development, it’s sales taxes shall be excluded from the calculation of new sales taxes generated. 5.2.1. General Fund Sales Tax: The sales and use taxes going to the City’s general fund. 5.2.2. Development Corporation Sales Tax: The sales tax going to the City’s Type A and / or Type B Development Corporation Sales Tax funds. 18 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 6 of 13 5.3. Financial ‐ Fee Reductions / Credits: The City may consider the reduction or credit of all or a portion of the following fees. This shall not include any charges by third‐parties assisting the City with implementation of services provided by the fees unless so provided in an approved Incentive Agreement. 5.3.1. Impact Fee ‐ Water: Any water Impact Fee charged by the City. This shall not include the “pass‐through” Impact Fees owed to any other Agency. 5.3.2. Impact Fee ‐ Wastewater: Any wastewater (aka sanitary sewer) Impact Fee charged by the City. This shall not include the “pass‐through” Impact Fees owed to any other Agency. 5.3.3. Impact Fee ‐ Roadway: Any roadway Impact Fee charged by the City. 5.3.4. Road Participation Fee: Any roadway participation fee charged by the City. 5.3.5. Drainage Improvement Fee: Any fee charged for the improvement of drainage facilities in the City. 5.3.6. Building Permit Fee: Any fee related to the review of non‐Public Works construction plans and building plans required for the issuance of a building permit. 5.4. Financial ‐ Misc.: The City may consider the following miscellaneous financial Incentives. 5.4.1. Equipment Purchase: Funds provided to assist with or provide for the purchase of equipment that increases production for the business. 5.4.2. Forgivable Loan: An agreement by the City to provide a loan whose repayment may be forgiven under particular circumstances. 5.5. Sales, Lease or Exchange of Land or Buildings: The City recognizes that the sale and conveyance, lease, or exchange of certain property owned by the City may meet the objectives identified in this Policy. In accordance with State Law, the City may consider the sale, lease or exchange of land without the necessity of accepting written bids pursuant to a published notice and at or below market value to further the objectives identified herein. 5.5.1. Build‐to‐Suit / Leaseback: An agreement where the City builds a building or facility to suit the needs of the Applicant in exchange for a commitment from the applicant to lease the facility from the City. 5.5.2. Free / Reduced‐Cost Land: Any provision where the City provides free or reduced‐cost lands to the Applicant. 5.5.3. Free / Reduced‐Cost Building: Any provision where the City provides a free or reduced‐cost building to the Applicant. 5.5.4. Land Lease: Any provision where the City leases rights to City‐owned land to the Applicant to allow construction of their Facility. 5.6. Employment‐Related: The City may consider the following employment‐related Incentives. 5.6.1. Relocation Assistance: Any provision where the City provides assistance to new employees relocating to residency within the City. 5.6.2. Cash for Employment: Any provision where the City provides for one‐time payments to the Business for each new employee of a certain classification established at a new or existing Facility in the City. 5.6.3. Employee Training Assistance: Any provision where the City provides assistance in the training of new employees employed at a new or existing facility in the City. 5.7. Infrastructure Assistance: The City may consider the following infrastructure assistance Incentives. 5.7.1. Water Line Extensions: Participation in all or a portion of the costs of extending water distribution lines to the Facility. 19 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 7 of 13 5.7.2. Sewer Line Extensions: Participation in all or a portion of the costs of extending sanitary sewer lines to the Facility. 5.7.3. Roadway Improvements: Participation in all or a portion of the costs of roadway improvements serving the Facility. 5.7.4. Storm Drainage Improvements: Participation in all or a portion of the costs of storm drainage improvements at or downstream of the Facility. 5.8. Development Cost Participation: The City may consider participation in the following development cost Incentives. 5.8.1. Demolition: Participation in all or a portion of the costs of demolishing existing structures on a property. 5.8.2. Environmental Mitigation: Participation in all or a portion of the costs of mitigating environmental issues on a property. 5.9. Economic Development District Establishment: In instances where the Project is of a significant scope and scale, the City may consider the establishment of unique economic development districts (e.g. Tax Increment Reinvestment Zone, Public Improvement District). 5.10. Hotel Occupancy Tax: The City may consider the use of Hotel Occupancy Tax pursuant to Chapter 351 of the Texas Tax Code. 5.11. Support for State Incentives: The City may consider providing support for the Project in the application and processing of State of Texas incentives. 5.12. Support for Federal Incentives: The City may consider providing support for the Project in the application and processing of Federal incentives (Opportunity Zones, New Market Tax Credits, etc.). Section 6. Minimum Performance Requirements The following shall identify the Minimum Performance Requirements for each project classification. These requirements are new construction, revenues or employees attributable to the Project. Project Classification Min. New Construction Cost Min. New FTE Employees Min. New Taxable Sales1 Notes / Examples Corporate $5,000,000 50 ‐  Significant office uses, e.g. Corporate HQ or regional HQ Industrial $5,000,000 20 ‐  Owner occupied, industrial / logistics business Retail ‐ ‐ $1,000,000  Hotel / Conf. Center $5,000,000 ‐ ‐  Hospitality or entertainment venues including hotels and conference centers Development $5,000,000 ‐ $5,000,000  New development 1Generated annually 20 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 8 of 13 Section 7. Applicability Matrix The following Applicability Matrix shall provide a framework for identifying the potential Incentives that are applicable to various classifications of Projects as identified above. Term and amount of Incentives shall be determined on a case‐by‐case basis. Potential Incentive Project Classification Corporate Industrial Retail Hotel / Conf. Center Develop‐ ment Expansion Tax Abatement X X ‐ X ‐ ‐ Ad Valorem Tax Grants X X ‐ X ‐ X Sales Tax Grants ‐ ‐ X ‐ X ‐ Constr. Sales Tax Grants X X X X X X Fee Reductions / Credits X X X X X X Misc. Financial X X ‐ X ‐ X Land / Building Related ‐ X X X ‐ ‐ Employment Related X X ‐ X ‐ ‐ Infrastructure Assistance X X X X X ‐ Dev. Costs X X X X X ‐ Process Related X X ‐ X X X E.D. Districts ‐ ‐ X X X ‐ HOT ‐ ‐ ‐ X X X State / Fed. Assistance X X X X ‐ Section 8. Administrative Procedures The Applicant shall follow the Administrative Procedures noted below to apply for Incentives as identified herein. 8.1. Pre‐Submittal: All Applicants are encouraged to meet with Staff prior to preparation of an Application. Applicants should contact the Director of Economic Development to set up a meeting. 8.2. Application Requirements: The submittal of an Application is required prior to any evaluation of the request for Incentives. The Application shall include the following information. 8.2.1. General Information: A. The name of the Project. B. The intended use (e.g. Call center, corporate / regional office, professional office, retail, distribution). C. If the Project is a relocation, consolidation or expansion of existing facilities, identify the location of the existing facilities. D. An overview of the Company. 21 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 9 of 13 E. The NAICS Code of the Company’s business. F. A description of the experience and qualifications of the Project Team. G. The type of Project (i.e. retention, expansion, own / lease, new development). 8.2.2. Property Information: A. Property address. B. Lot / Block / Subdivision name if platted. If not platted, a legal description will be required prior to executing any Agreements. C. Appraisal District Property ID numbers. D. Current Appraisal District valuations for all parcels. E. Acreage. F. Current owner and proof of ownership (e.g. deed, appraisal info) 8.2.3. Eligibility of Property: Address the eligibility requirements in Section 3.1. 8.2.4. Eligibility of Business: Address the eligibility requirements in Section 3.2. 8.2.5. Priorities: Address the priorities in Section 4.0. 8.2.6. Project Data: A. Business name. B. Describe the type of building proposed (e.g. number of stories, style, materials) C. Describe the development concept (e.g. single building or campus setting, open space, surface or structured parking) D. Describe the extent that any infrastructure component is enhanced or expanded. E. Provide timing estimates for major milestones of the Project. F. Provide estimates of Project data by phase and date, including but not limited to: i. List the kind, number, use, square footage and location of all the proposed improvements on the property. ii. Total capital investment including acquisitions, Improvements, building costs and equipment. iii. Estimated Appraised Value of all Improvements. iv. Acquisition cost of all Business Personal Property v. Estimated Appraised Value of all Business Personal Property. vi. Number, type, quality and wage levels of new Full‐Time Equivalent (FTE) employees. vii. New Payroll added. viii. Average employees’ annual salary. ix. Employees with salary $50,000 or greater. x. Taxable sales from the Facility. xi. Hotel Occupancy Tax generated (if applicable). 8.2.7. Requested Incentives: The Applicant shall itemize the Incentives (Section 5) they are requesting from the City. These are to be prioritized by order of preference by the Applicant. 22 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 10 of 13 8.2.8. Required attachments and / or exhibits: A. Legal description of the Property. B. Proof of ownership, or contract option or offer. C. Photos of existing conditions D. Drawings, renderings, plans of the proposed Improvements. E. Current ad valorem tax appraised value estimates by the applicable appraisal district showing appraised values for three similar type and size projects within the County. F. If Applicant is not the Property owner: i. Written approval of the Application from the owner ii. Copy of the signed lease agreement 8.2.9. Amendments: Staff may amend the form of the Application as needed to more efficiently evaluate the merits of the requested Incentives. 8.3. Review & Evaluation: Following are criteria to review and evaluate the Application. 8.3.1. Review Criteria: A. Completeness of Application: Completeness of the Application; including all required documentation. B. Application Information: Any information provided in the Application. C. Priorities: Does the Application include a high‐priority business classification or is it located in a high‐priority geographic area? D. General Eligibility: Does the Project meet the General Eligibility requirements? E. Revenues: What are the net tax revenue benefits to the City, both Ad Valorem and Sales Taxes? F. Employment: How many people will be employed by the Project? What are the education level requirements for employment? Are the wages to be paid higher than the average in the area? G. Impacts: An estimation of the positive and negative impacts that the Project might have. i. Cannibalization of Existing Businesses: To what extent does the Project cannibalize the profitability of an existing business? ii. Private Investment Catalyst: To what extent does the Project act as a catalyst for future private investment? iii. City Services: To what extent does the Project have a positive or negative impact on the Services or infrastructure of the City? 8.3.2. Staff Evaluation and Recommendation: The coordinating Staff member shall convene a team of the appropriate Staff members to evaluate the Application. Upon review, Staff shall prepare a recommendation to forward to the City or appropriate Board. A. Site Visit: Prior to formal evaluation of the Application, the Applicant shall allow Staff the opportunity to visit the Property to verify its status prior to any Incentives. B. Financial Analysis: If deemed necessary, Staff shall analyze the financial aspects of the incentive proposal using an appropriate method (return on the investment of Incentives in the Project and / or the timing required for new revenues to “break‐even” with the cost of the proposed Incentives). 23 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 11 of 13 C. Consulting Services: Should a consulting service be deemed necessary by the City to aid in their evaluation (e.g. financial impacts / cost‐benefit analysis, infrastructure impacts or capabilities), the Applicant may be required to submit additional information not required in the Application. Additionally, the City may require that the Applicant participate up front in the cost of obtaining these services. 8.4. Preliminary Discussions: Upon receipt of a satisfactory Application, and preparation of a Staff Recommendation, Staff shall hold preliminary discussions with approving bodies as follows. 8.4.1. A / B Boards: Where funds to be used for any Incentive herein are subject to authorization of the A and / or B Board, the Board shall consider the request for Incentives and make a recommendation to the Council. 8.4.2. Council: The Council shall be briefed on the merits of the preliminary Incentives request and the recommendation of the Board, if any, and advise Staff whether or not to proceed with negotiations of an Agreement in Principle. 8.5. Agreement in Principle: The Director shall lead the negotiation and drafting of a non‐binding Agreement in Principle (AIP) memorializing in writing the Project’s performance requirements and the Incentives to be provided by the City. This shall include engagement of Project representatives, the A and B Boards, City Council and their legal representatives if appropriate. Evolution of changes in the AIP shall be documented via redline/strikeout drafts as progress is made. 8.5.1. Preliminary Approval: Staff shall seek preliminary approval of the AIP from Project representatives, the appropriate Board, and City Council prior to preparation of an Incentive Agreement. 8.6. Incentive Agreement: An Incentive Agreement shall be required for all Projects receiving Incentives from the City in accordance with the following. 8.6.1. Preparation: The Director shall work with legal representatives for the City and / or Board to prepare an Incentive Agreement substantially conforming to the provisions of the Agreement in Principle. A. Allied Agency Engagement: Though not a party to any City Incentive Agreement, Staff shall engage and keep informed any allied agencies (County, School District) contemplating their own incentives for the Project. 8.6.2. Tax Abatement Minimum Requirements: Any Incentive Agreement including Tax Abatement shall include the following at a minimum: A. Improvements: List the kind, number and location of all the proposed improvements on the Property. B. Base Year Value: Provide that the Agreement does not include any reduction in Base Year Values. C. Access: Provide access to and authorize inspection of the property by City employees to ensure that the improvements or repairs are made according to the specifications and conditions in the Agreement. D. Uses: Limit the uses of the property consistent with the general purpose of encouraging development or redevelopment of the zone during the period that property tax exemptions are in effect. E. Recapture Provisions: Provide for the recapture of property tax revenue lost or any Incentives provided as a result of the Agreement if the owner of the Property fails to make the improvements or repairs as provided by the Agreement. F. Term: Describe the term of the Agreement. 24 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 12 of 13 G. Certification: Require the owner of the Property to certify annually to the governing body of each taxing unit that the owner is in compliance with each applicable term of the Agreement. H. Cancellation / Modification: Provide that the City may cancel or modify the Agreement if the property owner fails to comply with the Agreement. 8.6.3. Responsiveness: The offer of Incentives by any Incentive Agreement shall expire ninety (90) days from the date it is provided to the Applicant unless extended in writing by the City. The expiration of any offered Incentive Agreement shall not preclude continued negotiations toward the development of an alternative Agreement. 8.6.4. Approvals: Evaluation and any subsequent approval shall be on a case‐by‐case basis pursuant to the introductory paragraph of Section 1 herein. All Incentive Agreements, including any Tax Abatement Agreement, shall follow and comply with all statutory requirements for notice, hearings and readings where applicable. The following shall be required for approval of Incentives. A. Board Recommendation / Approval: Where funds to be used for any Incentive herein are subject to authorization of either the A or B Board, the Board shall consider the request for Incentives and make a recommendation to the Council. In instances where the Council has previously approved the expenditures, either through approving the Board’s budget or other means as allowed by the Act, the Board shall be the final approval of the Incentive request. B. Council: Unless final approval is authorized by the Board as noted above, the Council shall make the final decision regarding the merits of the Application and the appropriate Incentives to be provided, if any. 8.6.5. Compliance Reporting: All Incentive Agreements shall include requirements for reporting compliance with the provisions of the Agreement prior to disbursement of incentive funds. Section 9. Applicant / Owner Certifications The following Applicant / Owner Certifications shall be included in the submitted Application. 9.1. Application Accuracy: The information provided in this Application, and all that may have been affixed hereto, is true and correct, and that the City may rely on all of the information contained herein, and all that may have been affixed hereto, as being true and correct. 9.2. Incentive Agreement: I (we) acknowledge that an Incentive Agreement will have to be executed prior to receiving any Incentives. 9.3. Discretionary Rights: I (we) acknowledge that the City has the absolute right of discretion in deciding whether or not to approve any Incentive relative to this Application, whether or not such discretion is deemed arbitrary or without basis in fact. Section 10. General Provisions 10.1. Flexibility: The terms and conditions of this Policy are to be considered guidelines during deliberation and evaluation. The City reserves the right to modify the terms and conditions herein at any time, including for any pending application, and may approve a Tax Abatement Agreement or Incentive Agreement and the Incentives related thereto, on terms and conditions contrary to the guidelines of this Policy. 25 Item 5. Sanger, Texas ‐ Incentives Policy ‐ Approved March 21, 2022 ‐ Page 13 of 13 10.2. Section or Other Headings: Section or other headings contained in this Policy are for reference purposes only and shall not affect in any way the meaning or interpretation of this Policy. 10.3. Severability: In the event that any provision of this Policy is illegal, invalid, or unenforceable under present or future laws, the remainder of this Policy shall not be affected thereby. ‐‐‐ Remainder of this page left blank intentionally ‐‐‐ 26 Item 5. Sanger, Texas - Incentives Application - 2022-03-21 - Page 1 of 3 Sanger, Texas Incentives Application Shani Bradshaw Executive Director (940) 458-2059 sbradshaw@sangertexas.org 1 GENERAL INFORMATION a Project Name: b Intended Use (e.g. Call center, corporate / regional office, professional office, retail, distribution): c If project is a relocation or consolidation of existing facilities, identify the location of the existing facilities: d Company Overview: e NAICS Code: (See this link for help) https://www.census.gov/naics f Project Team Experience & Qualifications: g General comments from Applicant (if desired): Yes No Type of Project Notes h Retention of existing business  Years in business at this location? i Expansion or modernization of existing facility  j New business / to own new facility  k New business / to own existing facility  l New business / leasing existing facility  m New business / leasing new facility  n Development  o Other:  2 PROPERTY INFORMATION a Property Address: b Lot / Block / Subdivision Name: c Appraisal District Property ID Numbers: d Current Appraisal District Valuations of all Parcels: e Acres: f Currently owned by: 3 ELIGIBILITY OF PROPERTY [Section 3.1] Yes No Item Notes a Within the City?  b Zoned appropriately for use?  c City taxes in good standing?  d No City liens existing?  e Proof of ownership provided?  f Outstanding code violations?  g Construction has not commenced?  4 ELIGIBILITY OF BUSINESS [Section 3.2] Yes No Item Notes a Business taxes in good standing?  b Tax paying entity?  c If not owner, authorization provided?  d If existing business, in City 6 months?  27 Item 5. Sanger, Texas - Incentives Application - 2022-03-21 - Page 2 of 3 5 PRIORITIES [Section 4] Yes No Preferred Area? Notes a I-35 and F.M. 455 corridors  b Areas zoned Industrial or designated industrial on the future land use plan  Yes No Preferred Business? Notes c Industrial, manufacturing or logistics;  d Distribution centers  e Professional / corporate offices  f Retail and restaurants  g Providers of entertainment  h Medical services  i High sales tax generators  6 PROJECT DATA [Section 8.2.6] a Business Name: b Describe the type of building proposed (e.g. # of stories, style, materials, etc.): c Describe the development concept (e.g. single building or campus setting, open space, surface or structured parking, etc.): d Describe the extent that any infrastructure component of the Town is enhanced or expanded: e Month / Year Timing Notes f First development application  (zoning, site plan, etc.) g Desired approval date  h Ground breaking  i Phase 1 occupancy  j Phase 2 occupancy  k Phase 3 occupancy  Estimated Data by Phase and Date Phase 1 Month / Year Phase 2 Month / Year Phase 3 Month / Year l Building(s) construction in square feet m Construction cost all Improvements n Estimated appraised value of all Improvements o Acquisition cost of all business personal property p Estimated appraised value of BPP q New full-time equivalent (FTE) employees r New payroll added s Average employees annual salary t Employees w salary $50,000 or greater u Benefits provided v Taxable sales from the Facility w Hotel occupancy tax generated x Add notes about any item above: 6.? e.g. Note here 7 Policy Section INCENTIVE(S) REQUESTED In priority order Estimated Full Cost Requested % Term-Yrs Amount a 5.? $ $ b 5. $ $ c 5. $ $ d 5. $ $ e 5. $ $ f 5. $ $ 28 Item 5. Sanger, Texas - Incentives Application - 2022-03-21 - Page 3 of 3 Add justification and / or notes about any item above: 7.? e.g. Note here 8 ATTACHMENTS / EXHIBITS Yes No Item Notes a Legal description of property  b Proof of ownership  c Photos of existing conditions  d Drawing, renderings, plans of the proposed Improvements  If not included in development application e Copy of the signed lease agreement  If Applicant is not property owner f Current AV tax appraised value estimates for 3 similar projects  9 Applicant / Owner Certifications: In accordance with Resolution 2022-03 adopting the Incentives Policy, the undersigned do hereby certify the following: a Application Accuracy: The information provided in this Application, and all that may have been affixed hereto, is true and correct, and that the City may rely on all of the information herein contained, and all that may have been affixed hereto, as being true and correct. b Performance Agreement: I (we) acknowledge that a Performance Agreement (PA) will have to be executed prior to receiving any Incentives. c Discretionary Rights: I (we) acknowledge that the City has the absolute right of discretion in deciding whether or not to approve an incentive relative to this application, whether or not such discretion is deemed arbitrary or without basis in fact. 10 I (we) hereby affirm the Certifications noted above and approve this Incentives Application and the incentive requests identified herein. Property Owner Applicant / Primary Incentives Contact Company: Company: Signed: Signed: Name: Name: Title: Title: W: C: W: C: EM: EM: Address: Address: 29 Item 5. 4B DEVELOPMENT CORPORATION COMMUNICATION DATE: July 26, 2022 FROM: Shani Bradshaw, Director of Economic Development AGENDA ITEM: Discuss and possibly reconsider the 4B Fiscal Year 2022-2023 Budget SUMMARY:  Consider increasing funds for the Porter Park Project FISCAL INFORMATION: Budgeted: YES Amount: $200,000 GL Account: 76-6166 Design Service and Construction Cost Total Budget: $200,000 Professional Services for Renovations to Porter Park: $30,000 (paid) Current Budget Balance: $168,000 RECOMMENDED MOTION OR ACTION: Approve the amended FY 2022-2023 budget. ATTACHMENTS: 4B Budget 30 Item 6. 2019-2020 ACTUAL 2020-2021 ACTUAL 2021-2022 BUDGET 2021-2022 YEAR TO DATE 2021-2022 PROJECTED 2022-2023 REQUESTED $ VARIANCE % VARIANCE 76-5210 OFFICE SUPPLIES - 303 500 100 199 500 - 0.00% 76-5214 COMPUTER HARDWARE - - - - - 1,500 1,500 0.00% 76-5215 COMPUTER SOFTWARE - - - - - 3,500 3,500 0.00% 76-5215 FOOD - - 200 - - 200 - 0.00% 76-5220 POSTAGE - - 50 - - 50 - 0.00% 76-5226 MARKETING & PROMOTION - 5,095 15,000 3,052 5,565 35,000 20,000 133.33% 76-5235 DUES & SUBSCRIPTIONS - 510 600 65 129 8,000 7,400 1233.33% 76-5240 CONFERENCES & TRAINING - 150 800 868 1,735 5,000 4,200 525.00% 76-5280 COMPUTER SUPPLIES - - 250 - - (250) -100.00% 76-5332 OFFICE MACHINE LEASE - - 600 165 329 800 200 33.33% 76-5420 CONTRACTUAL SERVICES - - - - - - - 0.00% 76-5425 LEGAL EXPENSE 185 - 1,000 - - 1,000 - 0.00% 76-5430 PROFESSIONAL SERVICE - 8,615 10,000 - - 143,000 133,000 1330.00% 76-5450 TECHNICAL SUPPORT - 937 1,000 - - 1,000 - 0.00% 76-5451 ANNUAL SOFTWARE SUPPORT - 1,350 3,375 - - (3,375) -100.00% 76-5452 WEBSITE - - 12,800 6,080 12,160 - (12,800) -100.00% 76-5455 COMPREHENSIVE PLAN UPDATE 1,993 40,595 - - - - - 0.00% 76-5499 OTHER EXPENSE - - - - - - - 0.00% 76-5601 PROMO/COMMUNITY EVENT GRANTS - - 25,000 - - 50,000 25,000 100.00% 76-5602 BUSINESS RELIEF PROGRAM 10,000 - - - - - - 0.00% 76-5603 PROPERTY ENHANCEMENTS INCENTIV - - 25,000 5,000 10,000 (25,000) -100.00% 76-6116 PORTER PARK UPDATES - - 200,000 - - CAPITAL REQUEST #1 - CAPITAL REQUEST #2 - CAPITAL REQUEST #3 - CAPITAL REQUEST #4 - CAPITAL REQUEST #5 - TOTALS 12,178 57,555 296,175 15,330 30,117 249,550 153,375 -15.74% GENERAL LEDGER ACCOUNT 31 Item 6. 2019-2020 ACTUAL 2020-2021 ACTUAL 2021-2022 BUDGET 2021-2022 YEAR TO DATE 2021-2022 PROJECTED 2022-2023 REQUESTED $ VARIANCE % VARIANCE 00-4325 STATE SALES TAX 549,145.00 641,438.00 600,000.00 344,049.00 688,099.00 800,000.00 200,000$ 33.33% 00-4800 INTEREST INCOME 5,179.00 3,918.00 10,000.00 13,599.00 27,199.00 30,000.00 20,000$ 200.00% TOTALS 554,324.00 645,356.00 610,000.00 357,648.00 715,298.00 830,000.00 220,000.00 36.07% GENERAL LEDGER ACCOUNT 32 Item 6.