Agenda Information Sheet
DEPARTMENT: Economic Development
CM/ ACM: Bryan Langley
Date: May 23, 2017
SUBJECT
Title
Consider approval of a resolution of the City Council of the City of Denton nominating Mayday Manufacturing Co. to the Office of the Governor, Economic Development and Tourism ("OOGEDT") through the Economic Development Bank ("the Bank") as an Enterprise Project ("Project"); and providing an effective date.
Body
BACKGROUND
Texas Enterprise Zone Program
The Texas Enterprise Zone Program is a State of Texas economic development tool to promote job creation and capital investment in economically distressed areas of the state. Successful applicants are eligible to apply for state sales and use tax refunds on qualified expenditures. The program provides state reimbursement category levels related to the level of capital investment and number of jobs created and/or retained for economically disadvantaged individuals during the designation period. Key aspects of the Texas Enterprise Zone (TEZ) Program are:
* The local city or county must nominate the qualified company as an Enterprise Project and must offer one or more forms of local tax incentive to the company.
* Projects may be physically located in or outside of an Enterprise Zone. The location determines the percent of new employees that must meet economically disadvantaged or Enterprise Zone residence requirements.
* The Enterprise Project must be nominated for a designation period of not less than one year and up to five years, non-inclusive of a 90-day window prior to the application deadline. Employment and capital investment commitments must be incurred and met within this timeframe.
* Denton is eligible for up to four Enterprise Projects plus two additional bonus Enterprise Projects per State biennium. Denton has nominated three Enterprise Projects (WinCo Foods and two concurrent nominations for Peterbilt Motors) during this state biennium.
* The State accepts applications on a quarter...
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