Municipal Grants and/or Loans (380 Agreement)
The City Council of the City of League City may provide loans and grants of city funds as well as city employees and equipment to promote economic development projects within the city. Eligible projects involving significant investment may contract with the City to receive sales tax grants, franchise fee grants, water or sewer line extensions, building permit fee waivers and grants for capital recovery fees.
A project may be eligible for tax abatement if it is a business or manufacturing facility, research facility, distribution center, regional service facility, basic industry, or other facility “deemed essential to the City’s growth.” A project may be eligible for abatement of taxes up to 100 percent and for as long as 10 years, depending upon the amount of expenditure and/or the number of employees. Reinvestment in an existing project or expansion of existing facilities may also be eligible for tax abatement.
Freeport Property Tax Exemption
The Freeport Exemption exempts personal property consisting of inventory goods or ores, other than oil, natural gas and petroleum. Eligible property must be transported out of the state within 175 days of acquisition but may first be assembled, stored, manufactured, processed or fabricated locally.
Public Improvement Districts
A Public Improvement District (“PID”) enables a commercial area to make improvements benefiting the area and spread the cost equally among all properties. The City can levy and collect special assessments on property owners within the PID. These assessments may be used to pay the debt service on bonds or they may be used to pay for services directly if no bonds are issued. PID funds may be used to purchase real property in connection with improvements. Improvements include a wide variety of enhancements such as water and wastewater, streets, drainage, parking, landscaping, etc.
Tax Increment Reinvestment Zone
Developers of business property within a defined area (i.e. business parks, service centers) may receive municipal financing assistance through the use of tax increment financing. The City Council may create a Tax Increment Reinvestment Zone (TIRZ) where construction of public improvements using tax increment funds is likely to result in significant commercial investment. The cost of improvements within the zone is repaid by the contribution of future tax revenues by each taxing unit that levies taxes on the affected properties. Once the city initiates tax increment financing, counties and school districts may also participate in the tax increment financing program.
Municipal Management Districts
Municipal Management Districts allow commercial property owners to enhance a defined business area by financing facilities, infrastructure and services beyond those already provided by the municipality. The improvements may be paid for by a combination of self-imposed property taxes, special assessments and impact fees, or by other charges against property owners within the district.
Municipal Development Districts
These districts are financed through an additional sales tax approved by the city’s voters. The district has the capacity to utilize funding for economic development projects from type A and type B funding.
Qualified businesses locating in the zone are eligible for municipal grants to assist in extending public utilities. The business must invest $250,000 in improvements to be eligible for municipal grants.
Industrial Revenue Bonds
Tax Exempt Industrial Revenue Bonds are designed to provide tax-exempt financing for land and depreciable property on eligible industrial or manufacturing projects. The maximum bond amount is $20 million (which can include certain capital and administrative costs). These bonds must receive a reservation under the state's volume limitation ("volume cap") managed by the Texas Bond Review Board. The City of League City Economic Development Department may elect to assist qualifying projects through this process, which saves expense to the company through lower interest rates.
City Financed Infrastructure Improvements
The City may opt to assist or finance all or a portion of the infrastructure that may assist a development project when the City leadership team and City Council determine it to be in the long term interest of the city, particularly in a manner that exceeds the needs of the applicant.