SUBJECT
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Public Hearing and Introductory Ordinance re-adopting Guidelines & Criteria Governing Tax Abatements by the City of Laredo in accordance with the requirements in Section 312.002 of the Texas Property Tax Code; adding a new section of investment levels to the Guidelines for the Central Business District (CBD), Section 3.6(D); providing for severability; providing for an effective date of February 22, 2024 through February 21, 2026; and providing for publication.
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PREVIOUS COUNCIL ACTION
On February 22, 2022, City Council passed Ordinance 2022-O-023, which established guidelines & criteria governing tax abatements by the City of Laredo. State law requires that the guidelines are only effective for a period of two years; therefore, it is necessary to re-adopt the guidelines and criteria every two years.
BACKGROUND
Since 1998, the City of Laredo has offered a tax abatement program. In the past, the director of the Laredo Development Foundation indicated that companies who were considering locating in Laredo asked if the City of Laredo has a tax incentive program. In 1998, the Laredo Development Foundation (LDF) recommended that tax abatement incentives be initiated in the City of Laredo. As a result, the City of Laredo adopted through Ordinance No. 98-O-141 Guidelines and Criteria as prepared by the Laredo Development Foundation. Since then, City Council has been re-adopting guidelines & criteria in accordance with state law.
COMMITTEE RECOMMENDATION
Not Applicable.
STAFF RECOMMENDATION
recommendation
Approval of Ordinance.
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Fiscal Impact
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Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
The City will receive less revenue if City Council approves future tax abatement agreements.