12/12/1991, Public Hearing Meeting MinutesPage 1850
AGENDA
KENNEDALE CITY COUNCIL
PUBLIC HEARING - DECEMBER 12, 1991
COMMUNITY CENTER
Mayor Steve Radakovich called the meeting to order at 7:35 PM.
Members present were Mayor Radakovich, Robert Mundy, Pete
Kirkpatrick, Tom Boone and Ron Kovach. Mark Wright was absent.
Staff in attendance were Ted Rowe, Linda Jones, Vicki Thompson,
Linda Royster, Joey Highfill, Jerry Kirkpatrick, Pat McCarroll and
Attorney Don Driver.
PUBLIC HEARING HO. 1 - To receive comments regarding creating a
reinvestment zone ar~d related variance in the 500 block of South
Dick Price Road.
Mr. Bill Gress of Heidelberg Harris Corporation located at 501
South Dick Price Road, stated that the creation of the reinvestment
zone is the next step of the process to allow the City of Kennedale
to enter into an agreement with Heidelberg Harris and with the
Kennedale I.S.D. and Tarrant County. Heidelberg is going through a
major transition phase and a decision will be made on December 15,
1991 in Germany as to which plant(s) will be closed or down sized.
Their purpose is to guarantee that Heidelberg is going to be a long
and lasting partner with the City of Kennedale. One of the ways of
doing that is to enter into an agreement on an abatement on the
taxation of the property. That would lock in the corporation for a
10 year period. If Heidelberg violates the rules of the abatement
program, the city, school and county would receive 100 percent of
all back taxes that are abated. That is to guarantee that no one
Page 1851
is out any money. The second advantage to the
year Tarrant Appraisal District will perform a~
Heidelberg has stated to be an abatement.
investments Heidelberg is going to make into the
company will be replacing equipment that is 7 to 10
city is that each
Z audit of what
This verifies the
business. The
years old.
Mr. Melvyn Douglas, Attorney for Heidelberg Harris stated that the
abatement concept does not reduce the existing taxes. The impact
is on future investments of the facility. The criteria adopted by
the city is similar to North Richland Hills. That set of criteria
was specifically adopted and the contract that was entered into by
the City of North Richland Hills was with respect to someone that
was developing an undeveloped tract of land, by way of placing a
building on it for offices. Therefore that set of criteria had no
need to cover items of equipment. Their set of criteria also
provides for granting variances. It is difficult to write up a set
of blanket criteria to fit every situation. Therefore, different
types of businesses applying for a reinvestment zone would apply
for different variances to the criteria.
Ted Rowe clarified the variance to just include items of equipment
and furnishings that would be purchased and brought into the
facility, in addition to the value of any building expansion. Mr.
Rowe furnished a draft agreement for Council to review that cannot
be finalized until the reinvestment zone is established. Staff and
Heidelberg is now working together on the agreement to meet the
time schedule before the end of the year. The assessment date is
January 1, therefore the agreement has to be in place prior to that
date. The school and county have 90 days to enter into the
agreement after the city agreement is approved. The school and
county must enter into an agreement identical to the city's
agreement if they decide to participate. The school district has
rl
Page 1852
i
~~
indicated a strong desire to participate.
Ted Rowe explained that the taxable value on the rolls stay the
same regardless if the equipment is no longer located at
Heidelberg. Heidelberg will pay taxes on the value stated on the
1991 tax roll.
Mr. Ron Roudon, K. I. S. D. school board member, asked if Heidelberg's
value was $50 million after the ten year abatement period, would
they pay taxes on the X50 million value? Mr. Douglas stated yes.
Motion by Pete Kirkpatrick, second by Robert Mundy to adjourn the
public hearing at 8:05 PM. Motion carried unanimously.
APPR ED:
~ ~~~jl~~~o/
~-
~Mayor Steve Radakovich
ATTEST:
,t~'~~a_/ T~-~~-F~-1L
City Secretary