	City Council
	Agenda Request
Agenda Of:	10-17-06	Agenda Request No:		VI C
Initiated By:	regina morales	Responsible Department:		economic development
Presented By:	regina morales Director of Economic Development	Department Head:		regina morales, director
		Additional Department. Head (s):		n/a
Subject / Proceeding:	create reinvestment 2006-06 zone for wholesale distribution of consumer products project. hold public hearing and conduct first reading of ordinance no.1591
Exhibits:	ordinance no.1591
Clearances			Approval
Legal:	joe morris, city attorney		Executive Director:	joe esch, business & intergovernmental relations
Purchasing:	n/a		Asst. City Manager:	n/a
Budget:	n/a		City Manager:	Allen Bogard
Budget
Expenditure Required: $			n/a
Amount Budgeted/Reallocation: $			n/a
Additional Appropriation: $			n/a
Recommended Action
Hold public hearing and approve first reading of Ordinance no. 1591.
Executive Summary
Reinvestment Zone 2006-06 is being created for a wholesale distribution project of consumer goods. The Company is proposing a two-phased project that will include two buildings on different parcels of land. Phase I will consist of a 299,346 sq.ft. facility on 17.665 –acres and Phase II will be a 315,284 sq.ft. facility on 17.862-acres within the proposed zone. The new facilities will encompass their distribution operations. Full projected build out of both sites is expected to produce over $47 million in new capital investments and create 80 jobs. Comprehensive details of the project will be forthcoming on the second reading of Ordinance 1591 and consideration of proposed tax abatement agreements. The creation of a reinvestment zone is required prior to consideration of a tax abatement agreement. The Business Incentive Committee has reviewed the project and concurs with staff recommendation to create the reinvestment zone. This proposed zone has unique characteristics, as the two projects are on two different parcels of land and we wish to provide the same terms on both sites. The oversizing of the zone is based on the County’s requirement to establish a contiguous reinvestment zone. Additional land has been included in Reinvestment Zone 2006-06 to create an inclusive contiguous zone between both the 17.665-acre site on West Airport and the 17.862-acre site on Gillingham Lane.
Exhibits

ORDINANCE NO. 1591

AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, CREATING REINVESTMENT ZONE NO. 2006-06 FOR 82.24 ACRES OF LAND LOCATED NEAR THE INTERSECTION OF WEST AIRPORT BOULEVARD AND GILLINGHAM LANE IN THE SUGAR LAND INDUSTRIAL PARK.

WHEREAS, the Property Redevelopment and Tax Abatement Act (Tax Code § 312 et seq.) authorizes cities to create reinvestment zones and enter into tax abatement agreements with the owners of qualifying properties in reinvestment zones; and

WHEREAS, the City has received an application requesting tax abatement for real property improvements to be located in the zone; and

WHEREAS, the zone is eligible for tax abatement; and

WHEREAS, a public hearing, for which notice was given as required by law, was held at which interested persons were given an opportunity to present evidence for and against the creation of the zone; and

WHEREAS, the City Council has found that the improvements sought to be located in the proposed reinvestment zone are feasible and practical and would be a benefit to the land to be included in the zone and to the City after the expiration of a tax abatement agreement; and

WHEREAS, the creation of the reinvestment zone will be reasonably likely to contribute to the retention or expansion of primary employment or to attract major investment into the zone that would be a benefit to the property located therein and that will contribute to the economic development of the City of Sugar Land; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

Section 1. That Reinvestment Zone No. 2006-06 is created for the real property described in Exhibit A, attached to and incorporated into this ordinance by reference.

Section 2. That the Reinvestment Zone created herein is eligible for commercial-industrial tax abatement as provided by law.

Section 3. That Reinvestment Zone No. 2006-06 expires five years from the date of this ordinance.

APPROVED on first consideration on ________________________, 2006.

ADOPTED upon second consideration on _____________________, 2006.

______________________

David G. Wallace, Mayor

ATTEST:

____________________________

Glenda Gundermann, City Secretary

Reviewed for Legal Compliance: