MINUTES
WATAUGA CITY COUNCIL
SPECIAL MEETING
MONDAY, APRIL 10, 2006
CITY HALL COUNCIL
CHAMBERS,
7:00 P.M.
The City Council of the City of
Henry J. Jeffries Mayor
Ernest P. Koontz Mayor Pro Tem
Richard Helmick Council Member
Mike Steele Council Member
Pete Beierschmitt Council Member
Seth Thomas Council Member
Lee W. Griffin Council Member
Jerry Adams Council Member
and
Kerry Lacy City Manager
Mark G. Daniel City Attorney
Nancy J. Meadows City Secretary
PRE-COUNCIL:
Mayor Jeffries called the pre-council meeting to
order.
CITIZEN’S OPEN FORUM:
None.
PUBLIC COMMENT BY CITY COUNCIL IN RESPONSE TO CITIZEN’S OPEN FORUM:
None.
DISCUSSION OF CITY COUNCIL AGENDA:
There was no discussion of the City Council agenda.
CALL TO ORDER:
Mayor Jeffries
called the special session to order.
INVOCATION:
Council Member
Steele gave the invocation.
PLEDGE TO THE FLAG:
Mayor Jeffries led the
Pledge of Allegiance to the Flag and the Texas Pledge.
APPROVAL OF AGENDA
AS CONSTITUTED IN PRE-COUNCIL MEETING:
Council Member Koontz made
a motion to approve the agenda as constituted in pre-council. Council Member Steele seconded the motion,
which prevailed by the following vote:
AYES:
NOES: None
NEW BUSINESS:
1.
Discussion and action on guidelines and criteria for
economic development incentives for the City of
Mrs. Ashley Stathatos with GSBS went over the first draft of the proposed policy for guidelines and criteria for Economic Development Incentives.
Mrs. Stathatos explained that Council would be the one to approve anything given as incentives. Mrs. Stathatos explained what could be considered an incentive including financial as well as non-financial incentives such as fast track building permits.
She explained there are several arguments for using incentives. They are proven to work and may help seal the deal. Some projects will not be approved without them. Incentives even the “playing field”. It also helps cities keep competitive with other cities.
There are also several arguments against using incentives. They have a tendency to displace existing businesses. It can take away municipal tax dollars and increase the cost of municipal services and shifts the tax burdens to residents.
It was noted that in a perfect world, incentives should only be offered when the city can prove that the business would not consider moving into the city or expanding without the incentives being provided.
It was explained that in reality, it would be a benefit versus cost scenario. Do the benefits of offering the incentives outweigh the costs?
Mrs. Stathatos explained that there is a benefits versus costs checklist to go by to determine if a project would be good for economic development incentives. This includes the level of investment in the community, the number of jobs created or retained, the type of jobs created or retained, the targeted industry, and is it located next to a strategic planning area.
The Watauga incentive policy would follow the guidelines of Local Government Code and Chapter 380 that addresses tax abatements, which would allow loans, grants, and rebates of city funds at minimal or no charge.
Some discussion items in Chapter 380 of the Local Government Code include sales tax rebates, property tax rebates, sales taxes, rebate maximums are usually 10%, basic criteria for a minimum investment amount and the minimum number of jobs created.
Council Member Thomas explained that he is open to all tax abatements that are available.
Council Member Griffin had questions about the reinvestment zone and what areas would be covered in the reinvestment zone.
Mrs. Stathatos explained that what he was discussing was more of a strategic planning area.
There was a general discussion that followed regarding the difference with incentives and strategic planning.
Mayor Pro Tem Koontz had concerns about businesses knowing what type of incentives are available and the city controlling the incentives.
Mr. Lacy explained that Council controls what incentives they want to allow.
Council Member Adams asked if the incentives would be similar or identical to what is provided by other cities.
Mrs. Stathatos said it would be similar but not identical so as to keep the city competitive.
Council Member Steele stated that he agreed with Council Member Thomas that the city needs to keep their options open as far as incentives go.
There was much discussion concerning the Parks Development Corporation and Crime Control District sales tax being excluded from the tax incentives and abatements.
Council Member Koontz made a
motion to have GSBS come back with a second draft of guidelines and criteria
for economic development incentives for the City Council, City Manager and City
Attorney to review. Council Member
Steele seconded the motion, which prevailed by the following vote:
AYES:
NOES: None
EXECUTIVE SESSION:
Pursuant to the Open Meetings Act, Chapter 551 of the Texas, Government
Code, Mayor Jeffries will announce that the City Council will convene in
executive session (closed session) in the Council Chamber Conference Room, 7105
Whitley Road, pursuant to Section 551.087: Deliberation Regarding Economic
Development Negotiations as follows:
1)
to discuss or deliberate about Brooks Crossing Shopping Center regarding
commercial or financial information that the governmental body has received
from a business prospect that the governmental body seeks to have locate, stay,
or expand in or near the territory of the governmental body and with which the
governmental body is conducting economic development negotiations; or
2)
to deliberate the offer of a financial or other incentive to a business
prospect described by Subdivision (1)
Mayor Jeffries recessed the special meeting at 8:41
p.m. and the City Council convened in Executive Session in the Conference Room.
The City Council will return to open session in the City Council Chamber
for possible discussion and action as a result of the Executive Session as
follows:
1)
Discussion and action on Brooks Crossing Shopping Center regarding
commercial or financial information that the governmental body has received
from a business prospect that the governmental body seeks to have locate, stay,
or expand in or near the territory of the governmental body and with which the
governmental body is conducting economic development negotiations; or
2)
Discussion and action on the offer
of a financial or other incentive to a business prospect described by
Subdivision (1)
Mayor Jeffries reconvened the special meeting at
9:23 p.m. with all members present.
Council Member Steele moved to instruct the consulting firm to seek more information and report back to Council at a later date. Council Member Koontz seconded the motion, which prevailed by the following vote:
AYES:
NOES: None
ADJOURNMENT:
With there being no further business to conduct at this time, Mayor Jeffries adjourned the meeting at 9:25 p.m.
APPROVED: this _____ day of ___________ 2006.
SIGNED: this _____ day of ___________ 2006.
APPROVED:
____________________
Henry J. Jeffries, Mayor
ATTEST:
____________________________
Nancy J. Meadows, City Secretary