From
Marty Wieder
Title
Resolution Establishing the City of Grand Prairie's Chapter 380 Economic Development Program
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
The City originally created an Office of Economic Development more than 20 years ago to oversee economic development programs authorized by Texas law and approved by the City Council. Included among those programs are ones authorized by Chapter 380 of the Texas Local Government Code (the “Program”), to promote state and local economic development and to stimulate business and commercial activity in the City. Grand Prairie has determined that this Program will directly establish a public purpose- and that all transactions involving the use of public funds and resources in the establishment and administration of the Program as authorized will promote state and local economic development and will stimulate and promote business and commercial activity in the City.
The City of Grand Prairie operates an Economic Development Program which seeks to build wealth and create a sustainable economic environment in and around the City limits. Among other objectives, the Grand Prairie Economic Development Program:
Ø Encourages a positive, business-friendly atmosphere-which permits all City Departments entrepreneurial opportunities to help foster and expedite new investments and projects;
Ø Seeks to remove obstacles toward property acquisition, investment, construction and safe operations;
Ø Builds on and maximizes the City’s aviation, aerospace and automotive research, design and component manufacturing or assembly history;
Ø Capitalizes on Grand Prairies’ location in the middle of 8+ million people in North Central Texas.
The City of Grand Prairie Economic Development Program utilizes several tools to facilitate wealth creation, investment, applied technology, well-paying careers and sales tax revenue generating ventures; including:
Ø Chapter 312 Tax Abatements (on both real and personal property investments) for higher investment advanced technology, research and development, manufacturing and assembly;
Ø Chapter 380 sales and/or real property tax rebates, particularly in association with projects constructed within Tax Increment Reinvestment Zone (TIRZ) #1 and #3;
Ø Occasional grants through a redevelopment and revitalization fund established by the Type B Grand Prairie Sports Facilities Development Corporation;
Ø Attractive leases and/or sales of City-owned parcels within TIRZ #1 and #3;
Ø Grants when appropriate as funded by the City of Grand Prairie Local Government Corporation and/or the Grand Prairie Economic Development Foundation;
The City will continue to use due caution in the analysis of any tax, fee, or water and wastewater incentives that are used to encourage development. Ideally, a cost/benefit (fiscal impact) analysis will be performed as a part of such analysis. Annually, the City will also assess the current boundaries of the tax increment reinvestment zones and determine their ongoing viability.
Financial Consideration
N/A
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, ESTABLISHING AN ECONOMIC DEVELOPMENT PROGRAM PURSUANT TO CHAPTER 380 OF THE LOCAL GOVERNMENT CODE, TO BE ADMINISTERED BY THE ECONOMIC DEVELOPMENT DEPARTMENT; CONTAINING FINDINGS AND OTHER PROVISIONS RELATED TO THE SUBJECT
WHEREAS, Article 3, Section 52-a of the Texas Constitution authorized the legislature to provide for the creation of programs and the making of loans and grants of public money for certain specified public purposes; and
WHEREAS, pursuant to such authorization, the legislature passed Chapter 380 of the Texas Local Government Code ("Local Government Code"), which authorizes municipalities to establish certain economic development programs (hereinafter referred to as a "Chapter 380 Program"); and
WHEREAS, Section 380.001 of the Local Government Code permits a municipality to establish and provide for the administration of one or more Chapter 380 Programs to promote state or local economic development and to stimulate business and commercial activity in the municipality, including programs for making loans and grants of public money and providing personnel and services of the municipality; and
WHEREAS, under Section 380.001 of the Local Government Code, the governing body of a municipality may administer a Chapter 380 Program by the use of municipal personnel, and may accept contributions, gifts, or other resources to develop and administer a Chapter 380 Program; and
WHEREAS , pursuant to Section 380.002 of the Local Government Code, a home-rule municipality with a population of more than 100,000 may create Chapter 380 Programs for the grant of public money to any organization exempt from taxation under Section 501(a) of the Internal Revenue Code of 1986 (the "Code"}, as an organization described in Section 50l(c)(3) of the Code (a "Tax Exempt Organization"), for the following public purposes:
(i) development and diversification of the economy of the state;
(ii) elimination of unemployment or underemployment in the state; and
(iii) development or expansion of commerce in the state; (collectively, the "Public Purposes "); and
WHEREAS , any grant under Section 380.002(a) of the Local Government Code must be in furtherance of the Public Purposes, and shall be used by the recipient as determined by the recipient's governing board for programs found by the municipality to be in furtherance of Section 380.002 of the Local Government Code, and under conditions prescribed by the municipality; and
WHEREAS, Section 380.002 of the Local Government Code also a municipality to grant public money to a development corporation created by this municipality under the Development Corporation act for the purposes specified in Section 380.002(b); and
WHEREAS, the funds granted by the municipality under Section 380.002 shall be derived from any source lawfully available to the municipality under its charter or other law, other than from the proceeds of bonds or other obligations of the municipality payable from ad valorem taxes; and
WHEREAS, under Section 380.003 of the Local Government Code, a municipality may, as an agent of the State, provide matching funds for a federal program that requires local matching funds from a state agency, to the extent state agencies that are eligible decline to participate or do not fully participate in the program ; and
WHEREAS, the Director of the Economic Development Department has recommended that the City of Grand Prairie more formally establish a Chapter 380 Program which will permit the City to provide loans, grants, and/or matching funds under any or all sections of Chapter 380 of the Local Government Code as may be determined by the City Council; and
WHEREAS, in order to establish guidelines for Chapter 380 assistance eligibility, the Director of the Economic Development Department has recommended that City Council adopt the "Criteria for Chapter 380 Assistance" set forth in Exhibit "A" to this Resolution; and
WHEREAS, a Chapter 380 Program will benefit the City by stimulating business and commercial activity within Grand Prairie;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. The City Council hereby adopts the findings set out in the preamble hereof and hereby establishes the City of Grand Prairie Chapter 380 Program under the provisions of Chapter 380 of the Local Government Code. The purposes of the Chapter 380 Program shall be:
(i) to make grants or loans of public money and to provide personnel and/or services of the City of Grand Prairie for the purpose of promoting state or local economic development and to stimulate business and commercial activity in the City of Grand Prairie, pursuant to Chapter 380 of the Local Government Code;
(ii) to accept contributions, gifts or other resources pursuant to Section 380.001 of the Local Government Code, for the purpose of developing and administering the program;
(iii) to make grants of public money under Section 380.002 of the Local Government Code, to one or more Tax Exempt Organizations, or other entities authorized to receive such grants under Section 380.002 of the Local Government Code; and
(iv) to provide matching funds under Section 380.003 of the Local Government Code for a federal program that requires local matching funds from a state agency to the extent state agencies that are eligible decline to participate or do not fully participate in the program.
SECTION 2. The Program shall be administered by the Director of the Economic Development Department or such Director's designee (the "Director"). Qualified applicants for Chapter 380 assistance shall generally meet the "Criteria for Chapter 380 Assistance" guidelines attached hereto as Exhibit "A"; provided, however, that the Director may propose an application for assistance which does not meet all the criteria if, in the opinion of the Director , the application is otherwise meritorious. Proposals for grants, loans or matching funds to qualified applicants which are recommended by the Director may be presented to the appropriate Council committee. Proposals which are recommended shall be presented to City Council for consideration and approval, and for appropriation of any necessary funds. Funding for the Program's loans, grants and matching funs shall be provided on a case by case basis, based upon the recommendations of the Director, as approved by City Council.
SECTION 3. That this Resolution shall be and become effective immediately upon and after its adoption and approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 15th DAY OF DECEMBER 2020.