Tax Abatement

Purpose

The City of Mission is committed to the promotion of quality development in all parts of the city and to an ongoing improvement in the quality of life for its citizens. Insofar as these objectives are generally served by the enhancement and expansion of the local economy, the City of Mission will , on a case-by-case basis, give consideration to providing tax abatement incentives as a stimulation for economic development in Mission. It is the policy of the City of Mission that said consideration will be provided in accordance with the procedures and criteria outlined in this document. However, nothing herein shall imply or suggest that the City of Mission is under obligation to provide any incentive to any applicant. All applicants shall be considered on a case-by-case basis.

Criteria

The following threshold criteria shall be used to determine whether any tax abatement incentives shall be granted:

  1. The proposed development and/or redevelopment must create at least 10 or more jobs and $500,000 payroll.
  2. A capital investment of at least $1,000,000 is required.
  3. The proposed development and/or redevelopment does not include property that is owned or leased by a member of the City Council of the City of Mission nor by a member of the Planning and Zoning Commission; and
  4. The business is classified as one of the following:
    1. Basic Manufacturing Industries which manufacture a product for sale or resale.
    2. Regional office, warehousing, and/or distribution facilities.
    3. Scientific and Industrial research and development facilities.
    4. Process and Storage industries
    5. Any other commercial enterprise that is deemed appropriate.

      6. A - E -- SUBJECT TO ABATEMENT SCHEDULE A

    6. Facilities built for use by public or private higher educational institutions (post high school).

      7. F -- SUBJECT TO ABATEMENT SCHEDULE B

      In addition to the minimum requirements stated above, the following subjective criteria shall be considered prior to granting any tax abatement incentive:

  5. Is the project consistent with the comprehensive plan of the City of Mission?
  6. What types and cost of public improvements and services (water and sewer main extension, streets and alley, etc.) will be required of the City?
  7. What types and values of public improvements if any, will be made by the applicant? The project conforms to all the requirements of the City's zoning ordinance.
Types of Incentives

It is the intent of the City of Mission to customize the offering of tax abatement incentives on a case-by-case basis. This individualized design is intended to allow maximum flexibility in addressing the unique concerns of each applicant while enabling the City to better respond to the changing needs of the community.

The criteria outlined above will be used to determine whether it is in the best interest of the City of Mission to provide any tax abatement incentives to a particular applicant. The degree to which the specified project furthers the goals and objectives of the total value of the tax abatement incentives provided. As a general rule, no tax abatement will be provided to any applicant which abates more than 100% of the estimated total tax increase to be levied on the proposed property improvements and such abatement shall not exceed a term of 10 years.

Process

Any person, business or corporation desiring that the City of Mission provide tax abatement incentives to encourage their location or expansion of operations within the city limits or the extraterritorial jurisdiction of Mission shall be required to comply with the following application procedures. However, nothing within these guidelines shall imply or suggest that the City is under obligation to provide any incentive to anyone.

Any applicant desiring tax abatement incentives shall file an application request which shall include at least the following information:

  1. A map or plat showing the precise location of the property, all roadways within 200 feet of the site, and all existing zoning and land uses within 200 feet of the site.
  2. If the property is described by metes and bounds, a complete legal description should be provided.
  3. A brief description of the proposed improvements or expansion and its projected costs; the type of business operation proposed; the number and type of jobs created, including information pertaining to anticipated job transfers, the projected date of operation, and the type and value of any economic development incentives requested.
  4. Any other information about the proposed project as may be required by the City or as deemed desirable.

Once the application has been received, the information submitted will be reviewed by the City Manager for completeness and accuracy. The City Manager will then distribute the application to the appropriate department heads for internal review and comments. Following staff review, copies of the complete application package and staff comments will be provided to the City Council and to other taxing entities that may be willing to participate in offering tax abatement incentives. Generally, the City Council, staff and other taxing entities will discuss the proposed application at a work session prior to its formal consideration by the City Council. Following the work session, the City Manager may be requested to obtain other information prior to further consideration of the application.

At a subsequent regular City Council meeting, the application for any tax abatement incentive may be considered. The City will comply with certain public notice and hearings are required as mandated by state law under the Property Redevelopment and Tax Abatement Act prior to the designation of a reinvestment zone and execution of a tax abatement agreement. Prior to final approval, all legal documents to effect such reinvestment zone(s) and tax abatement agreements shall be drafted and approved by the City Attorney.

Contact:

City Manager
City of Mission
900 Doherty Avenue
Mission, Texas 78572
Telephone: (956) 580-8662
Facsimile: (956) 580-8669