Eligible projects involving significant investment may contract with the City to receive sales tax grants, franchise fee grants, water or sewer line extensions, utility tap fee waivers and building permit fee waivers. The City Council may create a Tax Increment Reinvestment Zone where construction of public improvements using tax increment funds are likely to result in significant commercial investment. The cost of improvements within the zone is repaid by the contribution of future tax revenues by each taxing unit that levies taxes on the affected properties. Once the city initiates tax increment financing, counties and school districts may also participate in the tax increment financing program. The City of League City may issue Industrial Development Bonds to finance the construction or purchase of a manufacturing facility for lease to a private entity.
Bonds are payable from the lease revenue.
The League City Economic Development Corporation may issue bonds for industrial development projects. Generally all debt services on the bonds are paid by the business under the terms of a lease, sale or loan agreement. This does not constitute a debt of obligation of the City or the Economic Development Corporation. The Texas Capital Fund Loan Program provides loans through the city government to help finance business machinery and equipment, working capital, purchase of land, new buildings or rehabilitation of existing industrial facilities. The loan maturity is tied to the life of the assets being financed.