2022-2-Resolution-Approving an Incentives Policy-03/21/2022RESOLUTION NO. 2022-2
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
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Page 1 of 4
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
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 February 1, 2022 considered and recommended
approval of the Policy to the Council; and
WHEREAS, the Board of the STDCon October 26, 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.
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SECTION S.
This Resolution shall become effective from and after its passage.
PASSED AND APPROVED this the 21st day of March, 2022.
11111111 Thomas Muir, Mayor
ATTEST: \ �F \ S A N
Kelly EdArds, City Secretary
T E
Resolution - Incentives Policy
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EXHIBIT A
Incentives Policy
Resolution - Incentives Policy
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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 2022-2 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 - 2022-03-21 - Page 1 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 1" 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.
Cam: 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.
Count : 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).
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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.
Proiect: 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.
Proiect 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.
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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 theApplication.
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. 1-35 and F.M. 455 corridors; and
B. Areas zoned Industrial or designated industrial on the future land useplan.
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 - 2022-03-21 - Page 4 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;
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 taxesgenerated.
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.
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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 bythe
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.S. 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.
S.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.
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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 considerthe 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.
Min. New
Min. New
Min. New
Project
Construction
FTE
Taxable
Notes / Examples
Classification
Cost
Employees
Sales'
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.
• Hospitality or entertainment
$5,000,000
-
-
venues including hotels and
Center
conference centers
Development
$5,000,000
-
$5,000,000
• New development
'Generated annually
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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.
Project Classification
Hotel /
Potential Incentive
Develop -
Corporate
Industrial
Retail
Conf.
Expansion
ment
Center
Tax Abatement
X
X
-
X
-
-
Ad Valorem
X
X
-
X
-
X
Tax Grants
Sales Tax Grants
-
-
X
-
X
-
Constr. Sales Tax
X
X
X
X
X
X
Grants
Fee Reductions /
X
X
X
X
X
X
Credits
Misc. Financial
X
X
-
X
-
X
Land / Building
X
X
X
-
-
Related
Employment Related
X
X
-
X
-
-
Infrastructure
X
X
X
X
X
-
Assistance
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 existingfacilities.
D. An overview of the Company.
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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 anyAgreements.
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:
L 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.
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8.2.8. Required attachments and / orexhibits:
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 theApplication.
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 - 2022-03-21 - Page 10 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 asfollows.
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 - 2022-03-21 - Page 11 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 - 2022-03-21 - Page 12 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 Policy - 2022-03-21 - Page 13 of 13
SANGER
*TEXAS
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) http://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2012
Project Team Experience & Qualifications:
f
Eg
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
•
I
New business / leasing existing facility
•
m
New business / leasing new facility
•
n
Development
•
0
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 - 2022-03-21 - Page 1 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 8.13]
a
Business Name:
b
Describe the type of building proposed (e.g. # of stories, style, materials, etc.):
Describe the development concept (e.g. single building or campus setting, open space, surface or
c
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
I
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.
1
1 $
$
Add justification and / or notes about any item above:
7.a
I e.g. Note here
Sanger, Texas - IncentivesApplicotion - 2022-03-21 - Page 2 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 propertyowner
f
Current AV tax appraised value
estimates for 3 similar projects
•
9
Applicant / Owner Certifications: In accordance with Resolution # 2022-2 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
1 (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:
Sanger, Texas - IncentivesApplicotion - 2022-03-21 - Page 3 of 3