2003T36-TAX ABATEMENTORDINANCE NO. /~,.~ - Y'- ,~ ~,
AN ORDINANCE
TtH!I CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT AND
A TAX ABATEMENT AGREEMENT BY
THE CITY COUNCIL FOR AND WITH
GD BAR FAMILY LIMITED.
PARTNERSHIP, A PROPERTY OWNER
IN TIt~ CITY OF SCHERTZ.
WHEREAS, Section 312 of the Texas Property Tax Code allows
municipalities to abate ad valorem taxes under specific Guidelines and Criteria,
and the City of Schertz has adopted specific Guidelines and Criteria under
these provisions; and,
WHEREAS, the City Council finds that the application for abatement of
ad valorem taxes by GD BAR FAMILY LIMITED PARTHERSHIP, meets those
Guidelines and Criteria, and further finds the terms of the tax abatement
agreement listed at Exhibit i are acceptable; and,
WHEREAS, the property is owned by GD BAR FAMILY LIMITED
PARTNERSHIP, described as approximately 2.138 acres in Guadalupe County,
Texas. All of the 2.138 acres being ha City of Schertz, Guadalupe County,
Texas, together wi~ abutter's rights of access to and from the physlcally open
and publicly mahntained street known as IH$5; and,
WHEREAS, a public hearing was held on /fig/-, ~//~ ,. to receive
public comment on the creation of a re-investment zone named GD BAR
REINVESTMENT ZONE; and
WHEREAS, the terms of the tax abatement agreement will cause no
substantial long term adverse effect on the provision of the City's serm'ces or
tax base, and the planned use of the property will not constRute a hazard to
publlc safety, health or morals; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHER'I~, TEXAS:
THAT, the request for abatement of ad valorem taxes by GD BAR FAMILY
LIMITED PARTNERSHIP, is approved. The approved rate is 25% for 5 years.
Taxes shall be abated on capRal h'nprovements only.
THAT, the City Manager is authorized to enter into an agreement, shown
as Exhibit 1, with GD BAR FAMILY LIMITED PARTNERSHIP
Approved on first reading the~~ of d~~~t--~ ~~ ~
PASSED, APPROVED AND ADOPTED this the ~-~day of ~
,2003.
Al'rEST:
Ma~or, Cit~f Schertz, Texas
City Secretary, City of Schertz
(SEAL OF CITY)
"Exhibit 1"
Tax Abatement Agreement
1. Parties.
This agreement is made and entered into by and between the City of Schertz, Texas (hereinafter called
the "City"), and GD Bar Family Limited Parmership, (hereinafter called the "Company").
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Authorization and Findings.
ao
The agreement is entered into pursuant to:
(1)
Section 312 of the Texas Property Tax Code.
(2) City of Schertz Ordinance, 03-T-02 that establishes the City of Schertz
Guidelines and Criteria for Tax Abatement and Reinvestment Zones (hereinafter
referred to as the "Guidelines and Criteria").
(3) City of Schertz Ordinance, 03-T-35, that establishes a Reinvestment Zone for
the Property to receive Tax Abatement under the Guidelines and Criteria.
(4) City of Schertz Ordinance, 03-T-36, which approves this tax abatement and
agreement and authorizes the execution thereof.
b. The City, by approval of this agreement, hereby finds the terms of this agreement and
the property subject to it, to meet the "Guidelines and Criteria" as adopted, and further finds
there will be:
(1)
tax
No substantial long-term adverse affect on the provision of the City services or
base; and,
(2) No hazard to public safety, health, or morals as the result of the planned use of
the property.
®
Property.
a. The property, (hereinafter called the "Property") is owned by GD Bar Family Limited
Parmership, described as approximately 2.138 acres in Guadalupe County, Texas. All of 2.138
acres being in Guadalupe County, Texas together with abutter's fights of access to and from the
physically open and publicly maintained street known as IH35.
b. Abatements approved will be based on the value of improvements set out on the real
property roll of the Guadalupe County Appraisal District for the Property. The 2002 base year
value established by the Guadalupe County Appraisal District is $430,000.
Tax Abatement Agreement
GD Bar Family Limited Partnership
Page 1 of 7
c. The Project has recently been platted, but not recorded, so no tax account on the
Property has been established.
d. A general description of the improvements to
basic abatement application and attachments.
be made by the Company is set out in the
e
Company Representation and Estimates.
a. The Company represents they are the owners in fee simple of the Property. The
Property is located within the City of Schertz, Vestal Subdivision, Unit 1, and within
Guadalupe County.
b. The company represents that the use of the Property is to be as follows:
Retail Center for Lease.
building for
c. The Company estimates it will make capital improvements (hereinafter referred to as
"Improvements") to the Property, which will cost approximately $805,000.
d. The Company represents that no interest in the Property is presently held by or leased
by and covenants that it shall not sell or lease any interest in the Property to, a member of the
City Council, the Planning and Zoning Commission of the City, the Economic Development
Department, or any other City officer or employee as long as this agreement is in effect.
®
Terms of the Agreement.
This Agreement is conditioned on the Company making the following Improvements to the Property
and fulfilling the following covenants:
a. Construction of approximately 16,100 square feet in a retail center to meet the growing
demand for leaseable space on the 1/35 corridor. The Company represents that the
Improvements to the Property will cost approximately $805,000 and will be completed during
the term of the abatement.
b. The location of the Improvements is more particularly described in a site plan approved
by the City of Schertz Planning and Zoning Commission.
c. The Company covenants and agrees that all Improvements shall at all times comply
with all applicable City building codes and ordinances, including, but not limited to, flood,
subdivision, building, electrical, plumbing, fire and life safety codes and ordinances, as
amended. Further, the company covenants to maintain the Improvements in compliance with
all such building codes and ordinances, and in a neat attractive condition with the landscaped
area described in the site plan approved by the Planning and Zoning Commission of the City.
d. The Company agrees to pay all ad valorem taxes on the Property and on personal
property in a timely manner, whether assessed by the City or any other tax jurisdiction.
Tax Abatement Agreement
GD Bar Family Limited Partnership
Page 2 of 7
e. The Company agrees to furnish the Chief Tax Appraiser of Guadalupe County with
information outlined in Chapter 22, V.A.T.S. Tax Code, as amended, as may be necessary for
tax abatement and for appraisal purposes.
f. The Company agrees to allow inspection of the Property by the City Manager, or a
designee. Such inspection shall be to determine if the terms and conditions of the Agreement
are being met and for the purpose of assuring compliance with applicable City codes and
ordinances. Inspections will be made only after giving a minimum of twenty-four (24) hours
notice and will be conducted in such a manner as to not unreasonably interfere with the
operation of the Property.
g. The Company agrees annually to certify in writing its compliance with the terms of this
Agreement, which certification shall be filed by Janua~ 15th to the City of Schertz of each year
during the Term of the Abatement and by January 15ih of the year following the Term of the
Abatement.
h. In the event the Company leases all or part of the improvements to a third party, the
Company agrees that all benefits accrued from this abatement are to be passed on to the
lessee(s) in a pro rata share.
6. Terms for the Tax Abatement
a. Provided that the Company complies with its obligation under Section 5 of the
Agreement throughout the period of the abatement, twenty-five percent (25%) of the entire
assessed value of the Capital Improvements located on the Property shall be exempt from ad
valorem taxation for a period of five (5) years.
b. No abatement of taxes shall be granted as to personal property of the Company installed
or maintained with the Property.
c. The abatement shall be for a five (5) year period (the "Term of the Agreement")
commencing on January 1, 2004 (the "Commencement Date"), and expiring on December 31,
2008, the fifth (5th) anniversary of the Commencement Date. Additionally, during the Term of
this Agreement, the City agrees not to impose any other taxes or assessments that are intended
to be in lieu of ad valorem taxes on the Company, the Property, or the Improvements.
d. The Company shall pay all ad valorem taxes due on the assessed value of the Property
prior to the beginning of the tax abatement.
e. The Company and/or lessee shall have the fight to protest and contest any or all
appraisals or reassessments of the Property, or the Improvements, and the tax abatement
provided for herein for such property shall be applied to the amount of taxes finally determined,
as a result of such protest or contest, to be due for such property.
®
Default/Recapture.
a. If the Company refuses or neglects to comply with any of the terms of this agreement
or, if any representation made by the Company in the Application for Tax Abatement (or this
Tax Abatement Agreement
GD Bar Family Limited Partnership
Page 3 of 7
agreement) is false or misleading in any material respect and such refusal or default is not cured
within sixty (60) days after notice, this Agreement may be terminated by the City.
b. In the event the Company allows ad valorem taxes on the Property to become
delinquent and fails to timely and properly follow the legal procedures for their protest and/or
contest, this agreement may be terminated by the City.
c. In the event the City determines the Company to be in default of the Agreement, the
City will notify the Company in writing at the address stated in Section 8 of the Agreement,
and if the defaults specified with reasonable particularity in such notice are not cured within
sixty (60) days fi'om the date of such notice, then this Agreement may be terminated upon
written notice to the Company.
If the city terminates this Agreement, taxes without abatement will be due for the year in which
termination occurred and shall accrue without abatement for all tax years thereafter. However,
there shall be no recapture of prior years' taxes abated by virtue of this Agreement.
d. If during the Abatement Period the Company should discontinue all operations in
Schertz, Texas, then the City shall by Ordinance adopted by the City Council have the fight to'
(1) Recapture one hundred percent (100%) of the taxes abated in prior years and the
year in which such discontinuance occurs; and,
(2)
Terminate this Agreement.
e. A total bill for any amounts due under Section 7c or Section 7d hereof will be sent to
the Company and the Company agrees to pay the total amount within sixty (60) days after
receipt. Penalty and interest will not begin to accrue until the Company has failed to pay any of
the amount placed back on the tax roll within sixty (60) days after receipt of the bill, unless
arrangements satisfactory to the City and the Guadalupe County Tax Assessor/Collector has
been made.
8. Notice.
All notices shall be in writing, addressed to the Company or the City at the following addresses. If
mailed, any notice or communication shall be deemed to be received three (3) days after the date of
deposit in the United States Mail, certified mail, remm receipt requested, postage prepaid and properly
packaged for delivery. Unless otherwise provided in this Agreement, all notices shall be delivered to
the following address:
To the Company:
If mailed or personally delivered:
Jason Dixon, Partner
GD Bar Family Limited Parmership
15591 Capital Port
San Antonio, TX. 78249
Tax Abatement Agreement
GD Bar Family Limited Parmership
Page 4 of 7
With copy to:
To the City:
If mailed or personally delivered:
City of Schertz
Atto: City Manager
P.O. Drawer I
Schertz, Texas 78154
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Agreement Approved by City Council.
The City represents that this Agreement has been approved by affirmative vote of a majority of the
members of the Schertz City Council at a regularly scheduled meeting.
10. Assignment.
This Agreement may be assignable to a new owner only with prior City Council approval as reflected
in a duly adopted City Ordinance.
11. General Provisions.
This Agreement is entered into subject to the fights of the holders of outstanding bonds of the City. If
the holders of outstanding bonds of the City exercise any of the fights so as to diminish the effects or
benefits of this Agreement, the City agrees to work with the Company toward establishing an
alternative agreement with terms similar to this Agreement and considering any bondholders' fights.
12. Severability.
In the event any section, subsection, paragraph, subparagraph, sentence, phrase or word herein is held
invalid, illegal, or unenforceable, the balance of the Agreement shall stand, shall be enforceable and
shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph,
subparagraph, sentence, phrase or word. In such event there shall be substituted for such deleted
provision a provision as similar in terms and in effect to such deleted provision as may be valid, legal
and enforceable.
13.
Estoppel Certificate.
Either party hereto may request an estoppel certificate from another party hereto so long as the
certificate is requested in connection with a bona fide business purpose. The certificate, which if
requested, will be addressed to a subsequent purchaser or assignee of the Company, shall include, but
not necessarily be limited to, statements that this Agreement is in full force and effect without default,
if such is the case, the remaining term of this Agreement, the levels of tax abatement in effect, and
such other matters reasonably requested by the party(ies) to receive the certificate.
Tax Abatement Agreement
GD Bar Family Limited Parmership
Page 5 of 7
14. Applicable Law.
This Agreement shall be construed under laws of the State of Texas and is performable in Comal
County and Guadalupe County, Texas.
15.
Binding on Successors and Assigns.
This Agreement will be binding on and inure to the benefit of the parties hereto and their respective
successors and permitted assigns.
16. Date.
This Agreement has been executed by the parties in multiple originals, each having full force and
effect on this the C~ ~ ~ day of ~ ~'4 2004.
For the Company:
By:
Tit
County of Guadalupe
This instrument was acknowledged before me on
~ ^ $o~, CX x ~ c~ , of GD Bar Family Limited Partnership, a t_~ CD
cor~~;~-----,-[ ' ftion.
& E. MATLOCK ~
(SE~ u Co~mOtamr, y P. ublic. S. tat~ oflex,, ~
My commission expires: 5~- ~ ¢ -- o ~
2004, by
Notary Public in and for the State of Texas
~-C~; ,-, C~c~\~, ,~[<~
(printed name of notary)
ATTEST:
By: Norma Althouse
Title: City Secretary
For the
.e
City Manager
Tax Abatement Agreement
GD Bar Family Limited Partnership
Page 6 of 7
Bierschwale, Acting
(S:~I,')I~ ,/x, State of Tex~ ~
~~ My ~~. ~. ~~7 ~
The State of Texas
County of Guadalupe
This instrument was acknowledged before me on ~ /c~~ , 2004, by John
City Manager of City of Schertz, Texas a ~unicipality and body politic formed
My commission expires:
behalf~~of said municipality.
- Notary P~tblic in knd for the S~at~ of Texas
·
(printed name of notary)
Tax Abatement Agreement
GD Bar Family Limited Partnership
Page 7 of 7
THE STATE OF TEXAS,
County of Guadalupe
PUBLISHER'S AFFIDAVIT
Before me, the undersigned authority, on this date personally appeared
. .~,~,! c,-~,., . . ' , known to me, who, being by me duly
sworn,.on his oath deposes and says that he is the Publisher of The Seguin Gazette-
Enterprise, a newspaper of general circulation, published in said county; that a copy
the within and foregoing notice was published in said newspaper / .... time(s) before
the return day named therein, such publications being on the following dates'
FAMILY"i .... :UMrrED
PARTNEIR.9~A" - A
PROPE~ '"' "~NER
IN THE:'.:~ OF
and a newspaper copy of which is hereto attached.
Sworn to d subscribed before me this ¢Y/~ day of
_
, A.D., 2003.
Notary Public, Guadalupe
XaS
THE STATE OF TEXAS,
PUBLISHER'S AFFIDAVIT
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
· ..~,...,? c..-.-,_,~. ,. " , known to me, who, being by me duly
sworn, on his oath deposes and says that he is the Publisher of The Seguin Gazette-
Enterprise, a newspaper of general circulation, published in said county; that a copy of
the within and foregoing notice was published in said newspaper ~ time(s) before
the return day named therein, such publications being on the following dates:
and a newspaper copy of which is hereto attached.
Sw, oA'~
!
to and subscribed before me this
A.D., 2003.
Notary Public, Guadalupe County, Texas