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Tml 380 Agreement

The Landkreis can also develop and manage a program for the conclusion of a tax reduction agreement. This tool allows counties to negotiate directly with developers and businesses. Under the agreement, performance indicators are subject to incentives. For example, to secure the revenue tax refund, Kyle City Council on Wednesday voted to approve a development agreement with PGI Investments for its 47-a-hectare land on Yarrington Rd. & Interstate-35. The application was 6-0; Councillor Daphne Tenorio was at a conference. This evolution has been called “Project Teal” in recent months, when city staff negotiated the agreement with pGI. Under the terms of the agreement, the City of Kyle will encourage economic development in accordance with Chapter 380 of the Texas Local Government Code. The programs that are considered “must be intended to promote the economic development of the state or local by stimulating commercial and commercial activities in the city,” according to the Code. Chapter 380 of the Texas Local Government Code allows Texas municipalities to provide a grant or loan of urban funds or services to promote economic development. A Section 380 development agreement avoids the need for state incentives in advance and only intervenes when a project is operational, thus avoiding the prospect of development failure. Mayor Todd Webster said at the meeting: “I think the development agreement with the PIC is the best outcome for all parties involved.

Under a Section 380 agreement, a developer and a tax authority negotiate a contract to provide VAT incentives for the project that meets the performance criteria. The agreement is expected to help the company offset some construction and infrastructure costs. These and other development agreements with the City of Kyle are available on our website. You can find more information about 380 agreements on the Texas Municipal League website: www.tml.org/legal_pdf/Chapter380-Local-GovCode.pdf “We`re going to take 100 percent of property taxes,” Councillor Travis Mitchell said Wednesday night.

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