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Consider/Discuss/Act on a Resolution Readopting the City of McKinney Comprehensive Policy Statement on Economic Development and Community Redevelopment Incentives (Tax Abatement Policy)
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DATE: August 21, 2012
DEPARTMENT: Administration
CONTACT: Jason Gray, City Manager
ITEM SUMMARY:
- State law requires that cities offering tax abatements adopt a tax abatement policy every two years.
- McKinney's policy was last readopted in August 23, 2010.
- A set of criteria and abatement standards are detailed in the policy, authorizing Council to grant a 25% abatement for certain projects from a one- to ten-year period, based upon the expected taxable valuation of the project. The policy also allows the Council to vary these standards on a case by case basis.
- No changes in the policy are proposed at this time.
- Changes may be made to the policy at any time after readoption by a ¾ majority of the Council.
- Staff is currently developing a more extensive Economic Incentive Policy for future consideration and adoption.
SPECIAL CONSIDERATIONS:
· No new tax abatement agreements may be entered into by the City until the policy is readopted.
FINANCIAL SUMMARY: None
BOARD OR COMMISSION RECOMMENDATION: N/A