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09/08/2021-CC-Agenda Packet-JointAGENDA JOINT WORK SESSION CITY COUNCIL, PLANNING & ZONING COMMISSION, 4A INDUSTRIAL DEVELOPMENT CORPORATION, AND 4B DEVELOPMENT CORPORATION WEDNESDAY, SEPTEMBER 8, 2021 5:30 PM HISTORIC CHURCH BUILDING 403 N 7TH STREET SANGER, TEXAS 1.Call Work Session to Order 2.CITIZEN INPUT: (Citizens are allowed 3 minutes to speak. The City Council is unable to respond or discuss any issues brought up during this section.) 3.WORK SESSION: a.TAX INCENTIVE POLICY PRESENTATION Incentive Training and Proposed Tax Incentive Policy. b.COMPREHENSIVE PLAN Presentation and discussion of the Comprehensive Plan. 4.ADJOURN. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the City Website, and on the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and readily accessible to the general public at all times. Said notice was posted on the following date and time, and remained posted continuously for at least 72 hours prior to the scheduled time of said meeting and shall remain posted until meeting is adjourned. September 2, 2021 at 5:30 PM Kelly Edwards, City Secretary City of Sanger, Texas Date/Time Posted This facility is wheelchair accessible and accessible parking spaces are available. Requests for additional accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at (940) 4587930 for further information. Local Incentives Overview (817) 992‐6156 www.EDPBestPractices.com Greg Last, CEO August 25, 2021 Local Incentives Overview •Terminology / Definitions •Statutory authorizations •Project limitations •Special districts •Fund sources and uses •Potential local incentives •Examples 2Introduction Terminology / Definitions •Incentives: Any number of inducements that an agency / community / state might offer to a prospect to entice them to remain, expand, or locate within a preferred area •Incentive Agreement: An agreement identifying business requirements and Agency incentives (Abatement, 380, Perf. Agrmt.) •Grants: Funds provided to businesses in exchange for performance per Ch. 380 •Recapture (Clawbacks): Clause to require repayment of incentives if they don’t perform 3Introduction Terminology / Definitions •Primary Jobs: Defined in LGC Ch. 501 –A job that is 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 –Included in one of the identified sectors of the North American Industry Classification System (NAICS) –Links to LGC on website 4Introduction Terminology / Definitions •Ad Valorem Tax: Taxes on Real and Tangible Business Personal Property •Real Property: Land, buildings, affixed asset •Business Personal Property (BPP): Furniture, fixtures and equipment (FFE) •Sales Taxes: Sales and use taxes –State: 6.25% –Local: Maximum of 2% 5Introduction Terminology / Definitions www.EDPBestPractices.com / Resources 6Introduction 7Statutory Authorizations and Limitations ED Codes & Statutes https://www.edpbestpractices.com/resources/e‐d‐statutes 8Statutory Authorizations and Limitations Development Corporations •Authorized by: The Development Corporations Act of 1979, now in Ch. 501‐ 505 of the Local Government Code (LGC) •Type A Corp: Regulated by Ch. 504 of LGC •Type B Corp: Regulated by Ch. 505 of LGC •MDD: Regulated by Ch. 377 of LGC 9Statutory Authorizations and Limitations A‐B‐MDD Project Limitations •Identified in Chapters 501‐505, 377 of LGC •A primary characteristic is whether or not the “Project” requires Primary Jobs •TEDC Sales Tax Training provided •Important to distinguish the source of funds providing for the incentives 10Statutory Authorizations and Limitations 11Statutory Authorizations and Limitations https://www.edpbestpractices.com/resources/type‐a‐b‐projects Pay Attention to Fund Sources Sources •City General Fund •Type A •Type B •MDD •Hotel Occup. Tax 12Local Incentives Uses •Total flexibility •Primary Job •More flexibility •Most similar to B •Tourism Types of Local Incentives •Ad Valorem Taxes •Freeport •380 Grants •Districts •Hotel Occupancy Tax (HOT) •Financial 13Local Incentives •Employment •Land / Building •Infrastructure •Procedural •Development •“Creative” Tax Abatement •Authorized by Chapter 312 of the Texas Tax Code •Must create Reinvestment Zone •Requires written Agreement •Real and Business Personal Property •Max term of 10 years •School districts cannot participate •County can participate 14Ad Valorem Tax Relief Tax Abatement •The business does not have to pay a portion of the City’s AV taxes •Business may benefit from not paying more than getting the money back •Involves more public hearings, notices, time •Tax Abatement Policy must be no more than two years old 15Ad Valorem Tax Relief Tax Freeze •Typically used in conjunction with significant improvements to a property •Frequently “Historic” renovations •Freezes the City portion of Ad Valorem taxes for a specified number of years •Could be an incremental increase –Year one 100% grant back of increase in taxes –Year two 80% granted back –…After 5 years they pay all taxes due w no grant 16Unique Incentive Programs ISD Value Limitation •Authorized in Chapter 313 of Texas Tax Code •A school district may enter an agreement electing to temporarily tax only a set amount of the investment for a period of up to 10 years •Limit only applies to maintenance and operations tax (M&O) amounts •The limitation does NOT remove property from the tax rolls – it delays the time that new investments go on to the tax rolls at full value 17Ad Valorem Tax Relief ISD Value Limitation •Required Investment: Differs depending on property value of district. A higher level of investment is required in very large or property‐wealthy districts. Smaller / rural districts may offer a more advantageous lower value limitation. •Eligible Property: Land, buildings, and certain tangible personal property, such as machinery and equipment, but NOT inventories 18Ad Valorem Tax Relief Freeport Exemption •Authorized by Texas Tax Code •The Freeport Tax Exemption is a property tax exemption which includes various types of property detained in Texas for a short period of time •The Freeport goods qualify if they leave Texas within 175 days from the date they are brought into or acquired in the State •“Triple Freeport” = City / School / County 19Ad Valorem Tax Relief Freeport Exemption •The exemption applies to goods, wares, ores, and merchandise other than oil, gas, and petroleum products (defined as liquid and gaseous materials immediately derived from refining petroleum or natural gas) and to aircraft or repair parts used by a certificated air carrier •Goods must be in Texas for assembling, storing, manufacturing, repair, maintenance, processing or fabricating purposes 20Ad Valorem Tax Relief Chapter 380 Agreements •Authorized by Chapter 380 of the LGC •“The governing body of a municipality 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 municipality, to promote state or local economic development and to stimulate business and commercial activity in the municipality.” 21Statutory Authorizations and Limitations EDO Performance Agreements •Sec. 501.158. PERFORMANCE AGREEMENTS. •(a) A corporation may not provide a direct incentive to or make an expenditure on behalf of a business enterprise under a project as defined by Subchapter C of this chapter or by Subchapter D, Chapter 505, unless the corporation enters into a performance agreement with the business enterprise. •(b) A performance agreement between a corporation and business enterprise must: –(1) provide, at a minimum, for a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by the corporation under the agreement; and –(2) specify the terms under which repayment must be made if the business enterprise does not meet the performance requirements specified in the agreement. 22Statutory Authorizations and Limitations Grants •Chapter 380, 381 or 501.158 provisions •Ad Valorem Taxes: –The City grants back to the business a portion of the City’s AV taxes paid •Sales Taxes: –The City grants back to the business a portion of the City’s sales taxes generated by the business •EDO Sales Tax (Performance Agreement): –The EDO provides a grant as an incentive 23Grants Grants •More “performance based” •Less notices, hearings, cost, no “zone” •Individual business: A portion of the City sales taxes paid by customers of the business are granted back to the business •Retail development: A portion of the City sales taxes paid by customers of all businesses in the development is granted to developer 24Grants Tax Increment Financing •Authorized by: Chapter 311 of the Texas Tax Code •Must create Reinvestment Zone •Develop Project Plan and Financing Plan •Real Property AV Taxes and / or Sales Taxes •The incremental increase in taxes above a base goes back into the Reinvestment Zone •Be careful when it starts, time flow of $ 25Statutory Authorizations and Limitations Tax Increment Financing 26Statutory Authorizations and Limitations Public Improvement Districts •Authorized by: Chapter 372 of the LGC •Governing body may undertake an improvement project that confers a special benefit on a definable part of the municipality or county or the municipality's ETJ. 27Statutory Authorizations and Limitations Hotel Occupancy Tax •Authorized by Chapter 351 of Texas Tax Code •Must meet two thresholds –Expenditure must promote tourism and the convention and hotel industry –Must meet certain project requirements: Convention Centers; Convention Registrants; Promotional Programs; Arts (15% limit); Historical Uses; Sports Facilities; Signage; Transportation Systems 28Hotel Occupancy Taxes Loans •Loan Guarantee –Provides a guarantee to the lender that the business loan will be paid off •Forgivable Loan –Provides a loan that is “forgiven” a portion at a time over time based on performance >E.G. A five‐year forgivable loan of $50,000 that is reduced by $10,000 each year a business exists in a building •Revolving Loan Program 29Financial Incentives Fee Waivers‐Reductions‐Credits •Entitlement processing fees –Application fees for zoning, site plans, platting •Building Permit Fees –Administrative fees to review building plans and inspect construction –Be careful not to give up fees that are to be paid to third parties (unique fire inspections) –Don’t include certain inspections (holiday, etc.) •Misc. Permit Fees –Signs, tree removal, earth disturbance 30Fee‐Related Incentives Fee Waivers‐Reductions‐Credits •Public Works Review & Inspection –Typically for construction plan review and inspections of public infrastructure –E.g. 5% of public construction costs 31Fee‐Related Incentives Exactions – Impact Fees •Attorneys differ on a City’s ability to “waive” Impact Fees –Can be “credited” against a qualifying project –Can be paid and then “granted” back •Must be “eligible improvements” [on CIP] •Do not give up any “pass‐thru” fees (Regional water supplier) 32Fee‐Related Incentives Exactions •Park Dedication Fees –Can meet by dedication of park land or payment of fees –Rarely used on commercial properties, can be waived / credited with any kind of open space •Storm Drainage Mitigation Fees –Pro‐rated participation in down‐stream costs 33Fee‐Related Incentives Employment Related Incentives •Relocation Assistance: A grant amount per employee that relocates to the City •Cash for Jobs: A grant for each job created (better terminology is Employment Grant) •Employee Recruitment Assistance: A grant amount to provide assistance in the recruiting of employees •Desired Salary: A grant only for those positions that meet a minimum salary 34Employment Incentives Land / Building Related •Free Land: Land conveyed from the City / EDO to the business for free •Free Building: A building conveyed from the City / EDO to the business for free •Build‐to‐Suit / Leaseback: City / EDO builds a building to the specifications of a business and they lease it 35Land / Building Incentives Roadways / Rail •Road participation programs •Road extensions to a project •Rail system enhancements •Rail spur to a site 36Infrastructure Incentives Utilities •Water line oversizing •Utility extensions to site •Internet availability •Electrical redundancy thru transformers and sources •Gas extensions to a site 37Infrastructure Incentives Process Enhancements •Fast‐track entitlement processing –Quicker review, meeting sequencing, readings •Fast‐track permitting –Move plans to the front of the line •Inspections –Dedicated inspector(s) on job site –Do not give up 3rd party costs that you have to pay 38Procedural Incentives Demolition ‐ Temple •City will consider demolishing buildings, signs or parking lots, and disposing of same at City’s costs •Will not demolish buildings with reasonable probability of asbestos unless abated •Will also consider 1:1 matching‐grant for certain aspects of demolition 39Unique Incentive Programs Asbestos Program ‐ Temple •Provide a 1:1 matching‐grant for an owner‐ initiated asbestos survey of a building and for asbestos abatement for a building on eligible property. •Eligible costs include professional fees, labor costs, select demotion / removal costs, and replacement materials 40Unique Incentive Programs “Creative” Incentives •Country Club Memberships •Tickets to entertainment / sky boxes •Street Naming –Bass Pro Drive – Grapevine –ATT Drive – Arlington –1 Cabela Drive – Fort Worth •Signage –Variances as to size and location •Shotguns / entrance gates / boots / etc. 41Creative Incentives Local Incentive Examples •Ad Valorem Taxes (City only) –50% tax abatement on the real and tangible BPP for 10 years –Step down tax abatement of 40% ‐ 30% ‐ 20% ‐ 10% for 4 years –100% grant back of all AV taxes for a period of 10 years from the date of voluntary annexation 42Local Incentive Examples •Sales Taxes –Grant back 50% of all sales taxes collected by the City for a period of 5 years –Grant back 50% of sales taxes collected towards cost of parking garage, NTE 50% of the actual cost of the garage •HOT –Grant back 50% of HOT collected by the City for use in marketing and promotion of hotel –Grant back NTE 15% of HOT collected for 4 years and NTE 50% of the cost of sculptures in park 43Local Incentive Examples •Infrastructure –Grant an amount equal to the difference between an 8” water line and the required 12” water line, NTE $40,000, upon acceptance –Credit the cost of roadway impact fees against the construction of the deceleration lane –Participate in the cost of the off‐site sanitary sewer NTE 50% of actual cost and NTE $200,000 •Employment –Provide a grant of $1,000 for each employee with salary greater than $30,000 and lives in the City 44Local Incentive Examples Carillon – 256 Acres Mixed‐Use 45Case Study 1 ‐ Carillon Program Payment Example 46Case Study 1 ‐ Carillon 47Case Study 1 ‐ Carillon 48Case Study 1 ‐ Carillon Forest Park Medical Center 49Case Study 2 – Forest Park Medical City Incentives Used •Grant 80% of the Ad Valorem real and business personal property •Construct 4‐lane blvd. adjacent to property •Construct 12” water line along frontage •Construct 8” sewer line to property •Reduce fees by 50% •Waive Park Dedication requirements •Shorten approval process where possible 50Case Study 2 – Forest Park Medical Discussion / Q & A •Definitions •Statutory •Permitted Projects •Financial •Employment •Land / Building 51Discussion / Q & A •Infrastructure •Districts •Procedural •Creative •Examples •Resources at www.EDPBestPractices.com –Texas Administrative Code –Texas Tax Code –Local Government Code –Attorney General E.D. Opinions 52Resources(817) 992‐6156 www.EDPBestPractices.com Thank You! Greg Last RESOLUTION NO. ______ A RESOLUTION OF THE CITY OF SANGER, TEXAS, APPROVING THE TERMS AND CONDITIONS OF AN INCENTIVES POLICY TO PROMOTE ECONOMIC DEVELOPMENT AND STIMULATE BUSINESS AND COMMERCIAL ACTIVITY IN THE CITY; ESTABLISHING GUIDELINES AND CRITERIA FOR APPROVAL OF TAX ABATEMENTS AND OTHER INCENTIVES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Texas Development Corporation Act of 1979 (the Act), now codified in Title 12, Subtitle C1, Chapters 501‐505 of the Texas Local Government Code, authorizes communities to collect Type A and / or Type B economic development sales and use taxes; and WHEREAS the residents of the City of Sanger (City) on May 2, 1998 passed an election approving the collection of a 0.50% sales and use tax for the benefit of a Type A Economic Development Corporation (Type A Sales Tax); and WHEREAS, the City Council of the City (Council) on May 16, 1998 passed a Resolution ratifying said election and adopting the Type A Sales Tax effective as of October 1, 1998 establishing the Sanger Texas Industrial Development Corporation (STIDC) as a Type A Economic Development Corporation; and WHEREAS, the Board of the STIDC on January 7, 2020 and the Council on March 16, 2020 approved amended Bylaws for the STIDC; and WHEREAS, the Articles of Incorporation for the STIDC were filed with the State of Texas on November 19, 1998; and WHEREAS the residents of the City of Sanger, Texas (City) on May 2, 1998 passed an election approving the collection of a 0.50% sales and use tax for the benefit of a Type B Economic Development Corporation (Type B Sales Tax); and WHEREAS, the City Council of the City (Council) on September 21, 1998 passed Resolution 09‐21‐98 ratifying said election and adopting the Type B Sales Tax effective as of October 1, 1998 establishing the Sanger Texas Development Corporation (STDC) as a Type B Economic Development Corporation; and WHEREAS, the Board of the STDC on April 14, 2020 and the Council on May 4, 2020 approved amended Bylaws for the STDC; and WHEREAS, the Articles of Incorporation for the STDC were filed with the State of Texas on February 26, 1999; and WHEREAS, Chapter 312 of the Texas Tax Code, cited as the Property Redevelopment and Tax Abatement Act, authorizes municipalities to grant tax abatements upon establishing guidelines and criteria for tax abatement agreements; and WHEREAS, Chapter 380 of the Texas Local Government Code authorizes municipalities to establish and provide for the administration of programs that promote economic development and stimulate business and commercial activity in the City; and WHEREAS, Section 501.158 of the Texas Local Government Code requires that an Economic Development Corporation, prior to providing a direct incentive or making an expenditure on behalf of a business enterprise, enter into a Performance Agreement that includes certain provisions defined in that Section; and WHEREAS, the City hereby elects to be eligible for tax abatement as provided for in the guidelines and criteria established in the Policy; and WHEREAS, the City desires to attract high‐quality long‐term investment and the creation of new jobs and to stimulate business and commercial activity in the City; and Sanger, Texas ‐ Resolution _________ ‐ Incentives Policy ‐ 2021‐06‐17 ‐ Page 1 of 3 WHEREAS, the City recognizes the importance of retaining existing businesses, attracting new businesses, and providing for the redevelopment of sub‐standard properties; and WHEREAS, the City, the STIDC and the STDC each desire to replace the current incentives policy adopted in 2007 with the Incentives Policy (Policy) attached as Exhibit A; and WHEREAS, the Board of the STIDC on ________, 2021 considered and recommended approval of the Policy to the Council; and WHEREAS, the Board of the STDC on ________, 2021 considered and recommended approval of the Policy to the Council; and WHEREAS, upon full review and consideration of the Policy and all matters attendant and related thereto, the Council is of the opinion that the Policy will promote economic development and stimulate business and commercial activity in the City and establish guidelines and criteria for approval of tax abatements and other incentives. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this Resolution are hereby found and declared to be true and correct. SECTION 2. The City Council finds that the guidelines and criteria of the Policy will promote economic development and stimulate business and commercial activity in the City. SECTION 3. The City Council hereby adopts the Policy authorizing the City to participate in tax abatement and other incentives and take other specified actions, in accordance with the guidelines and criteria outlined in the Policy. SECTION 4. The guidelines and criteria of the Policy, having been reviewed by the City Council of Sanger and found to be acceptable and in the best interest of the City and its citizens and businesses, are hereby approved. SECTION 5. This Resolution shall become effective from and after its passage. PASSED AND APPROVED this the ______ day of _________, 2021. ________________________ Thomas Muir, Mayor ATTEST: ____________________________ City Secretary Sanger, Texas ‐ Resolution _________ ‐ Incentives Policy ‐ 2021‐06‐17 ‐ Page 2 of 3 Sanger, Texas ‐ Resolution _________ ‐ Incentives Policy ‐ 2021‐06‐17 ‐ Page 3 of 3 EXHIBIT A Incentives Policy Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ Page 1 of 13 Sanger, Texas Incentives Policy WHEREAS, the Board of the City’s Type A Industrial Development Corporation (A‐Board), on ________, 2021 and the Board of the City’s Type B Development Corporation (B‐Board), on _______, 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 ________, 2021 approved Resolution ________ 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. Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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 C1, 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). Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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. Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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; Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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. Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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 a ssistance 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. Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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 uni que 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 ‐50$5,000,000Corporate  e.g.Significant office uses, Corporate HQ or regional HQ ‐20$5,000,000Industrial  industrial /Owner occupied, logistics business Retail ‐ ‐ $1,000,000  Hotel / Conf. Center ‐‐$5,000,000  Hospitality or entertainment venues including hotels and conference centers $5,000,000‐$5,000,000Development  New development 1Generated annually Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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. Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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. Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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). Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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. Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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. Sanger, Texas ‐ Incentives Policy ‐ 2021‐06‐17 ‐ 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 ‐‐‐ Sanger, Texas ‐ Incentives Application ‐ 2021‐06‐17 ‐ Page 1 of 3 Shani Bradshaw Executive Director (940) 458‐2059 sbradshaw@sangertexas.org Sanger, Texas Incentives Application 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) http://www.census.gov/cgi‐bin/sssd/naics/naicsrch?chart=2012 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.A] 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.B] 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?  Sanger, Texas ‐ Incentives Application ‐ 2021‐06‐17 ‐ Page 2 of 3 5 PRIORITIES [Section 4.0] Yes No Preferred Area? Notes a  b  c  Yes No Preferred Business? Notes d  e  f  g  h  6 PROJECT DATA [Section 8.B] 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.n 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. $ $ Add justification and / or notes about any item above: 7.a e.g. Note here Sanger, Texas ‐ Incentives Application ‐ 2021‐06‐17 ‐ Page 3 of 3 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 # __‐____ 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: