Policy Statement for Economic Development Incentives
I. GENERAL PURPOSE AND OBJECTIVES
Any request for incentives shall be evaluated based upon a subjective review of the following criteria that each applicant will be requested to address in narrative as well as an application form to be provided by the City’s Economic Development Department.
- How much real and personal property value will be added to the tax roll?
- How much direct sales tax will be generated?
- How will this project affect existing business?
- What infrastructure construction would be required?
- What is the total projected annual operating budget of this facility?
- What effect would the project have on the local housing market?
- What environment impact, if any, would be created by the project?
- How compatible is the project with the City’s comprehensive plan?
- What effect would the project have on other taxing entities?
- How many jobs would be brought to Rowlett?
- What types of jobs would be created?
- What would be the total annual payroll?
III. VALUE INCENTIVES
IV. AVAILABLE INCENTIVES
The City of Rowlett may consider providing one or a combination of any of the following economic development incentives:
A. Tax Abatement
The City will consider providing tax abatements for real and/or personal property. A Cost/Benefit Analysis will be performed to determine the feasibility of the project. Once a determination has been made that a tax abatement should be offered, the subject, value and term of the abatement will be determined by referencing the following schedule:
Tax Abatement for Real and/or Personal Property
|Amount of Capital Investment
|Years of Abatement
|% of Abatement
|$60,000,000 or greater
B. Fee Waivers
Reduction or elimination of any city fees associated with the development of the project.
C. Infrastructure Improvements
Provision of, or participation in, the extension of community infrastructure to the project site, including water, wastewater, drainage or road improvements.
D. Loans and Grants
The City may consider providing loans and grants of City funds, may underwrite or guarante loans and financial obligations, and may acquire, purchase, convey or assign loans and grants and any rights or obligations arising thereunder, as permitted by Section 380.001 of the Texas Local Government Code.
E. Fast Track City Services
A fast track service involving all inspections, permitting and planning activities may be provided. The City’s development coordinator would be assigned to assist with the progress of the project.
V. TARGETED INCENTIVES
Along with Section IV., the City of Rowlett may consider providing one or a combination of any of the following targeted incentives in order to further the strategic objectives as outlined in Realize Rowlett 2020:
A. Job Creation
The City may consider an incentive for the creation and maintenance of jobs within the City by offering a grant for companies that create or relocate a minimum of 25 full-time jobs. The company must maintain the number of jobs created and/or relocated for at least a two-year period to receive the total grant payment. Each job eligible for grant payment must pay at least 100% of the average annual wage for Dallas County, as determined by the United States Dept. of Labor, Bureau of Labor Statistics.
For each job paying 100-124% of the average annual wage for Dallas County, the incentive is $3,000 per job, payable as $1,500 each year over a two year period.
For each job paying 125% or more of the average annual wage for Dallas County, the incentive is $5,000 per job, payable as $2,500 each year over a two year period.
The maximum grant amount cannot exceed 50% of the net new ad valorem and business personal property taxes paid annually to the City as a result of the project.
B. Specialty Retail, Entertainment, and Restaurant
The City may consider providing incentives to “destination” retailers and restaurants that have the capability to attract customers from outside the area and fit well into the existing retail/restaurant economy to provide new and different shopping, dining, and/or entertainment experiences. Local, Regional, and National retailers or restaurants may apply if they meet the above qualifications. This incentive may also be considered for existing “destination” retailers and restaurants that are expanding or relocating if their added square footage is a minimum of 50% larger than their current space.
In order to qualify for incentives, “destination” retailers and restaurants must own the property, otherwise they are required to sign a minimum five-year lease with the property owner. Based on the value of the incentive requested, the City may require the tenant to sign a lease for a period longer than five years. Consideration for incentives shall require a return on investment (ROI) for the City; any and all incentives under this provision shall be limited by an ROI of 10:1 (for example, a $1 million investment, maximum incentive would be $100,000).
Incentives that may be considered for a destination retailer or restaurant as outlined above are as follows:
- Matching Grants
- The City may reimburse up to 50% of the costs of tenant improvements (including FFE – fixtures, furniture, and equipment).
- Grease Trap Rebate
- The City may consider a rebate equal to fifty percent (50%) of the cost to purchase and install or upgrade an existing grease trap up to a maximum of $7,500 per project for “destination” restaurants.
These incentives will be evaluated on a case-by-case basis so that the total incentive package may be designed specifically for each project as well as provide maximum flexibility for an incentive package that accommodates the unique needs of each project. The City will require a recapture provision on all incentives granted. These recapture provisions would specify requirements a company must fulfill in order to continue to receive incentives and would specify the process for recapture of incentives should a company be in default of its contract with the City. Nothing herein shall imply or suggest that the City of Rowlett is under any obligation to provide incentives to any applicant.
CITY OF ROWLETT ECONOMIC DEVELOPMENT INCENTIVES PROCEDURAL GUIDELINES
Any person, organization or corporation desiring that the City of Rowlett consider providing incentives to encourage location or expansion of operations within the city limits of Rowlett shall comply with the following procedural guidelines. Nothing within these guidelines shall imply or suggest that Rowlett is under any obligation to provide incentives to any applicant.
Preliminary Application Steps
- Applicant shall complete the attached Application for Incentives. Included in said application shall be a statement regarding the applicant’s desire for consideration of available incentives listed in the Policy Statement for Economic Development Incentives.
- Applicant shall address all criteria questions outlined in Section II of the Incentive Policy Statement.
- Applicant shall prepare a plat showing the precise location of the property and all roadways within 500 feet of the site.
- If the property is described by metes and bounds, a complete legal description shall be provided.
- Applicant shall complete all forms and information and submit them to the Director of Economic Development, City of Rowlett, Texas, P.O. Box 99, Rowlett, TX 75030.
Once an application has been submitted to the Director of Economic Development, it shall be regarded as a matter of public record and will be available for inspection by the public. Any proprietary information included as a part of the application should be so indicated, marked in advance and supplied in such a manner so as to be readily separated from the remainder of the application.
Consideration of the Application
- The application will be sent to the Rowlett Economic Development Advisory Board for review and comments. Additional information may be requested as needed.
- The Economic Development Advisory Board will make a recommendation to the City Council regarding the incentive request.
- The City Council will consider the application at a regular or called meeting(s). Additional information may be requested as needed.
- If a tax abatement is being considered, the City Council may consider a resolution calling a public hearing to consider establishment of a tax reinvestment zone and to determine whether the project is feasible and practical and would be of benefit to the land to be included in the zone and municipality.
- If a tax abatement is being considered, the City Council may consider adoption of an ordinance designating the area described in the legal description of the proposed project as a commercial/industrial tax abatement zone.
- If a tax abatement is being considered, the City Council may consider adoption of a resolution approving the terms and conditions of a contract between the City and the applicant governing the provision of the tax abatement.
- The final decision on any incentive application will rest with the City Council.