2016 City News Releases

Posted on: May 5, 2016

City of Sugar Land Strengthens Economic Incentive Programs

Sugar Land, TX - Sugar Land City Council and the Sugar Land Development Corporation (SLDC) recently increased minimum requirements for tax abatements and direct incentives used to attract targeted businesses.

The effort was intended to ensure Sugar Land remains a leading location for primary employment and corporate headquarters.

“Our focused but aggressive economic development tools have played an important role in our economic success,” said Sugar Land City Manager Allen Bogard. “Actions taken to strengthen requirements for business incentives will continue to play a pivotal role in attracting capital investment and new jobs to the City of Sugar Land. This ensures a strong economy that helps pay for the quality services our residents expect and supports one of the lowest tax rates in the state.”

It has been more than 10 years since substantial policy changes were made to the minimum requirements in the City’s tax abatement guidelines and the SLDC’s direct incentive policy. The following changes were made to strengthen minimum requirements for incentives and solidify Sugar Land’s position as a regional employment center and corporate headquarters destination.

  • The minimum capital investment requirements were increased in both policies, with the addition of a stronger, tiered structure to provide guidance for the percentage of abatement offered in the tax abatement guidelines.
  • The minimum number of jobs and average salary requirements were increased in the SLDC incentive policy.
  • A minimum amount of leased square footage was added to the SLDC incentive policy.
  • Changes to the targeted industry list were made in both policies to be more consistent with the City’s strategic plan and current practice.

To encourage economic growth, three primary business incentive tools are used to encourage business investment. Each has its own unique purpose and role in supporting economic development in Sugar Land:

  • Value-added tax abatements focus on attracting capital investment and property tax value through real and personal property, as well as inventory which is not eligible for abatement. The City does not lose anything through value-added tax abatements, as the development would not have occurred without the abatement. Such projects result in significant property tax value and revenue to the City after the abatement expires, and economic growth generated by these agreements fully benefits the local school districts, as school districts do not participate in abatements.
  • Performance-based direct incentives are provided by the SLDC, a special economic development corporation approved by Sugar Land voters in 1993. Funded by a voter-approved .25 cent sales tax, the SLDC supports the retention and recruitment of primary employment projects such as Schlumberger, First Data, Nalco Champion, Applied Optoelectronics and Minute Maid. It is important to note that the estimated total direct and indirect benefits of any project receiving an incentive from SLDC must exceed the total direct incentives offered.
  • Third, Sugar Land’s City Council may choose to enter into sales-tax sharing agreements with companies that generate significant new sales tax within the city of Sugar Land. Since these are new dollars created within Sugar Land, the City loses nothing by sharing the funds and creates new revenue streams for the City.

The City of Sugar Land has achieved its sustainable, strong local economy through an aggressive, focused economic development program that creates opportunities for new business investment and jobs. Sugar Land now has more than 63,500 jobs and is home to high-profile regional and international corporations housed in more than 25 million square feet of commercial space, including more than 15 Fortune 500 companies with a significant presence. Further, Sugar Land’s assessed commercial valuation has more than doubled in just over a decade—increasing by over $2 billion.

“The City’s growing economy provides an excellent location for relocating and expanding companies to thrive, and we are proud to be recognized as a regional employment and business center of excellence,” said Bogard.

Facebook Twitter Google Plus Email

Other News in 2016 City News Releases

Holiday Waste Collection, Tree Recycling

Posted on: December 13, 2016

Deadline Nears for Citizen Academies

Posted on: December 12, 2016

Police Searching for Female Bank Robber

Posted on: December 5, 2016

Police Searching for Hit-and-Run Driver

Posted on: October 13, 2016

City Manager Submits Proposed Budget

Posted on: July 21, 2016

Credit Card Thiefs Caught on Video

Posted on: June 15, 2016

Sugar Land Named Tree City USA

Posted on: May 6, 2016

Early Voting Begins April 25

Posted on: April 15, 2016

Sugar Land Receives Clean Audit

Posted on: February 22, 2016

Crime Rate in Sugar Land Hits Historic Low

Posted on: February 18, 2016

EGGStravaganza set for March 19

Posted on: February 17, 2016

Ethics Task Force Applications Accepted

Posted on: February 5, 2016

Sugar Land Receives A+ From Citizens

Posted on: January 22, 2016

Cultural Kite Festival Set for Feb. 27

Posted on: January 21, 2016