Title
Consideration of and action on a resolution to nominate Deer Park Refining Limited Partnership as an Enterprise Zone Project under the Texas Enterprise Zone Program.
Body
Summary:
It is proposed the following be nominated as Enterprise project under the Texas Enterprise Zone program”
• Name of legal entity for nomination- Deer Park Refining Limited Partnership
• Amount of capital investment over 5-year designation period- $250 million
• Number of retained jobs- 500
The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state (census block groups with a poverty level greater than 20 percent).
Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. Qualified expenditures include building materials, machinery and equipment, electricity, gas and tangible property purchased and consumed in the normal course of business, and taxable services.
The level and amount of refund is related to the capital investment and jobs created at the qualified business site. In addition, local communities must offer incentives to participants under the Enterprise Zone Program, such as tax abatement, tax increment financing, one-stop permitting, and other incentives developed by participating communities.
Communities may nominate projects for a designation period up to five years, not including a 90-day window prior to the application deadline. Employment and capital investment commitments must be incurred and met within the five-year time frame.
Deer Park has previously sponsored three Enterprise Zone nominations for the following local businesses; Shell Refinery, Lubrizol, Rohm & Haas Texas, Inc.
Fiscal/Budgetary Impact:
Recommended action
Approve the resolution nominating Deer Park Refining Limited Partnership as an Enterprise Zone Project under the Texas Enterprise Zone Program.