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2007-02-26 CITY COUNCIL PUBLIC HEARING MEETING MINUTESPUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON FEBRUARY 26, 2007, AT 6:30 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. Mayor Reid called the meeting to order at 7:00 p.m. with the following present: Mayor Mayor Pro -Tem Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Secretary Tom Reid Richard Tetens Kevin Cole Helen Beckman Felicia Kyle Steve Saboe Bill Eisen Darrin Coker Young Lorfing Others in attendance: Danny Cameron Public Works Director; Jack Colbath Director of Fire Services; Paul Jamison Fire Chief; Claire Manthei Director of Finance; Fred Welch Executive Director of Economic Development Corporation; Rick Overgaard Assistant Director of Finance; Johnny Spires Assistant Police Chief. PURPOSE OF HEARING — TO CONSIDER THE CREATION OF A REINVESTMENT ZONE AND TAX ABATEMENT FOR TEXAS HONING, INC., AND W & N ENTERPRISES IN ACCORDANCE WITH SECTION 312.201 OF THE TAX CODE AND CITY OF PEARLAND'S GUIDELINES FOR GRANTING TAXING ABATEMENTS. Mr. Darrin Coker, City Attorney. STAFF REVIEW OF THE CREATION OF A REINVESTMENT ZONE AND TAX ABATEMENT FOR TEXAS HONING, INC., AND W & N ENTERPRISES IN ACCORDANCE WITH SECTION 312.201 OF THE TAX CODE AND CITY OF PEARLAND'S GUIDELINES FOR GRANTING TAXING ABATEMENTS. Mr. Darrin Coker, City Attorney. City Attorney Darrin Coker stated this item is part of the City's Business Retention Program. This Tax Abatement will recreate a Reinvestment Zone that had previously expired. There are two parties to the proposed abatement process. Texas Honing is the party that will create the jobs and bring in the fixed equipment. The other party is W & N Enterprises, which is a partnership that was created by Texas Honing for the purpose of obtaining financing for the building they will construct. If the Reinvestment Zone is created, it will be treated as one agreement. The purpose of the public hearing is to verify the proposed improvements are feasible and will benefit the land. CITIZEN COMMENTS: None. Page 1 of 2 — 2/26/2007 COUNCIL/STAFF DISCUSSION: Councilmember Saboe asked if the City is granting 100% abatements relatively often or would it make sense to grant abatements at a lower percentage. City Manager Bill Eisen stated in the six years he has been with the City of Pearland there has not been a 100% tax abatement agreement. Executive Director of Economic Development Corporation Fred Welch stated, in the past, it has been typical to grant a tax abatement in the area of 60%. Discussion ensued between Council, Mayor Reid, City Manager Bill Eisen, and Executive Director of Economic Development Corporation Fred Welch regarding the Reinvestment Zone. ADJOURNMENT Meeting was adjourned at 7:24 p.m. Minutes approved as submitted and/or corrected this the 12th day of March, A.D., 2007. '::::� -i �&l Tom Reid Mayor Page 2 of 2 — 2/26/2007