AGENDA CAPTION:
Title
Consider approval of Resolution 2015-58R nominating Epic Piping, LLC (fka United Weld Operations, LLC) to the Office of the Governor, Economic Development and Tourism, through the Economic Development Bank as an Enterprise Project pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code; designating a liaison for the communication with interested parties; and providing an effective date.
Body
Meeting date: May 19, 2015
Department: City Manager's Office
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
CITY COUNCIL GOAL: Economic Vitality and Responsible Finances
BACKGROUND:
The City of San Marcos passed Ordinance No. 2004-76, which ordained the City's participation in the Texas Enterprise Zone Program and established local incentives for qualified businesses. The Texas Enterprise Zone Program is an economic development tool for cities to partner with the State of Texas to promote job creation and capital investment in "economically distressed" areas of the state.
Companies nominated by the City of San Marcos are eligible to participate in the Enterprise Zone Program, and may apply for state sales and use tax refunds on qualified expenditures (the Draft Epic Piping Enterprise Zone application is attached). The level and amount of refund is related to the capital investment and jobs created or retained at the qualified business site. This is a refund of state sales and use taxes, and has no fiscal impact to the City.
The City may nominate projects for a designation period up to five years. Employment and capital investment commitments must be incurred and met within this timeframe.
The City has previously nominated two projects for participation in the Enterprise Zone program: Genlyte Thomas Group, LLC, Wide-Lite Division (Ordinance No. 2004-76), and CFAN Company (Ordinance No. 2011-42).