AGENDA CAPTION:
Title
Consider approval of Resolution 2021-165R, nominating Cooperative Laundry SMS, LLC’s location of a new facility in San Marcos as an enterprise project under the Texas Enterprise Zone Program; and declaring an effective date.
Body
Meeting date: August 17, 2021
Department: Economic Development
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Background Information:
Cooperative Laundry is requesting nomination for the State of Texas Enterprise Zone program which refunds the State’s sales and use tax on qualified expenditures. This is a competitive application evaluated by the State, and companies must meet minimum capital investment thresholds and create or retain jobs that employ economically distressed individuals, enterprise zone residents, or veterans. The designation is up to a five-year period, and the Texas Comptroller’s Office administers all refunds.
Certain eligibility requirements include:
1. Jobs counted for benefit must have an average wage which meets or exceed the average county wage (for Hays County this is $44,629 per year).
2. Employment and capital investment commitments must be met prior to the expiration of the designation period.
3. 25% of the company’s new employees must meet economically disadvantaged, enterprise zone residency, or veteran requirements.
4. Only full-time jobs qualify for consideration.
City of San Marcos Ordinance No. 2011-42 amended Ordinance No. 2004-76 which ordained the City’s participation in the Texas Enterprise Zone Program and established local incentives which, at the election of the governing body, may be offered to qualified businesses.
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Recommendation:
Staff recommends approval of a resolution nominating Cooperative Laundry to the State of Texas Enterprise Zone Program.