Agenda

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City Council Regular Meeting

Meeting Date:

10/25/2022

BACKGROUND

At the August 23, 2022 City Council meeting, during consideration of the resolution to discuss approval of the empowerment zone for Main Street, staff was asked about designating the area along the south side of FM 78 as an empowerment zone. There are similarities between the area south of FM 78 and Main Street that warrant these designations as an appropriate tool.

Neighborhood Empowerment Zones are covered under Chapter 378 of the Local Government Code. They are a tool to create affordable housing, including manufactured housing, increase economic development in the zone, increase the quality of social services, education, or public safety provided to residents of the zone, and aid in the rehabilitation of affordable housing in the zone.

In the case of FM 78, like Main Street, the primary focus would be on increasing economic development. It does this by authorizing the City to waive or adopt fees related to the construction of buildings in the zone, including fees related to the inspection of buildings and impact fees, enter into agreements, for a period of not more than 10 years, for the purpose of benefiting the zone, for refunds of municipal sales tax on sales made in the zone, enter into agreements abating municipal property taxes on property in the zone subject to the duration limits of Section 312.204, Tax Code, and set baseline performance standards, such as the Energy Star Program as developed by the Department of Energy, to encourage the use of alternative building materials that address concerns relating to the environment or to the building costs, maintenance, or energy consumption.

GOAL

Promote and enhance commercial activity along FM 78 to promote the economic, cultural and general welfare of the public. The area around Main Street and FM 78 in Schertz once served as the commercial and social hub of the community. The City seeks to improve the image of the area around FM 78 through the inducement of public money to promote local economic development and stimulate business and commercial activities in the City.

COMMUNITY BENEFIT

Encourage the attraction of small businesses that will create local charm and help develop a sense of place in and around FM 78. Promote commercial development. Stabilize and improve property values. Foster civic pride. Strengthen the economy of the City by protecting and enhancing the attractiveness of the FM 78 area to residents and visitors, as well as provide support of local businesses.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approval of Resolution 22-R-98 approving FM 78 East Empowerment Zone and FM 78 West Empowerment Zone.

FISCAL IMPACT

There is no fiscal impact tied directly to the creation of the Neighborhood Empowerment Zones. If the City chooses to waive additional fees or provide other incentives through separate action, the fiscal impact of those decisions will be provided at that time.

RECOMMENDATION

Approve Resolution 22-R-98

Attachments
Res 22 R 98
Exhibit A