Item 6E
Approve Ordinance No. 1151, 2nd Reading, establishing a Tax Abatement Reinvestment Zone in the City of Southlake, Texas as authorized by the Property Redevelopment and Tax Abatement
Act, Chapter 312 of the Texas Tax Code
Item 6E
Hello Mayor and members of the City Council. This is Alison Ortowski and I will be presenting Item 6E, Ordinance No. 1151
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Aerial View
Fix
Marriott Solana
1 Kirkwood
Sabre Headquarters
Kirkwood Hollow
The reinvestment zone boundaries proposed by this ordinance are shown on this screen. The boundaries align to the property currently owned and under development by TD Ameritrade.
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Background Information
The City entered into a memorandum of understanding with TD Ameritrade to establish mutually-agreed upon terms of a potential future incentive agreement between the two parties. In
addition to establishing infrastructure cost
participation on roadway, water and sewer line construction, the terms of that MOU also included a provision for a 10-year, 90% abatement
of ad valorem and business personal property taxes.
In order to proceed with granting this tax abatement, per Chapter 312 of the Texas Tax Code, the City must first adopt an ordinance
designating a reinvestment zone.
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Chapter 312 - Key Criteria
Chapter 312 specifies that designated zones should inlcude ….[read from slide]
The TD Ameritrade project meets this requirement with its projected development investment and job creation
numbers.
Investment return: ~$300K during abatement; over $1.2 million after abatement expires
Job Creation: 1400 initially; up to 20008
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City of Southlake Strategy Map
The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing
efficiency, fiscal responsibility, transparency, and sustainability.
C1 Achieve the highest standards of safety & security
C2 Provide travel convenience within City & region
C3 Provide attractive & unique spaces for enjoyment of personal interests
C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment
C5 Promote opportunities for partnerships & volunteer involvement
Serve our Customers
Manage the Business
B1 Achieve best-in-class status in all City disciplines
B2 Collaborate with select partners to implement service solutions
B3 Enhance resident quality of life & business vitality through tourism
B4 Provide high quality services through sustainable business practices
B5 Enhance service delivery through continual process improvement
B6 Optimize use of technology
Provide Financial Stewardship
Promote Learning and Growth
F1 Adhere to financial management principles & budget
F2 Invest to provide & maintain high quality public assets
F3 Achieve fiscal wellness standards
F4 Establish & maintain effective internal controls
L1 Ensure our people understand the strategy & how they contribute to it
L2 Enhance leadership capabilities to deliver results
L3 Attract, develop & retain a skilled workforce
L4 Recognize & reward high performers
L5 Empower informed decision-making at all levels in the organization
C6 Enhance the sense of
community by providing excellent customer service and citizen engagement opportunities
L6 Foster positive employee engagement
Deliver on Our Focus Areas
This item supports the City’s strategy through strategic corporate objective C4 (read from slide)
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Questions?
Alison Ortowski, 817-748-8261
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Equivalent to $60 million development
Projected Benefit to the City
Annual Benefit During Abatement $298,263 (avg)
Current Annual Benefit ~$20,000
Annual Benefit After Abatement $1,242,029 (avg)
The creation of this reinvestment zone does not financially obligate the City. However, it does enable the City to enter into a tax abatement agreement with TD Ameritrade as agreed
upon in the MOU.
The agreement will be structured to provide TD Ameritrade with a ten-year, 90% tax abatement for ad valorem and business personal property taxes.
It is estimated
that the value of this abatement is approximately $7.8 million.
The current annual benefit the City receives from the vacant land is approximately $20,000. The annual benefit to
the City during the abatement period is estimated to be $298,263, which means that the annual revenue to the City will increase an estimated $278,263 during ten year abatement period.
Following termination of the abatement, the annual benefit to the City is estimated to increase, on average, to $1,242,029.
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