1998T1-TAX ABATEMENT
ORDINANCE NO. tj f'- T- /
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, APPROVING A TAX ABATEMENT
AND A TAX ABATEMENT AGREEMENT FOR AND WITH
414 LLP, A TEXAS COPORATION, ON BEHALF OF
LONE STAR PET SUPPLY, AND A PROPERTY OWNER
IN THE 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 Lone Star Pet Supply, on
behalf of 414 LLP, meets those Guidelines and Criteria, and
further finds the terms of the tax abatement agreement listed
at Exhibit 1 are acceptable; and
WHEREAS, the property owned by Lone Star Pet Supply,
described as Block 1, Lot 3, (5.490 acres) Tri-County Business
and Industrial Park, Unit 1, as recorded in Guadalupe County,
and located within a State Enterprise Zone as created by the
Texas Department of Commerce on
WHEREAS, the terms of the tax abatement agreement will
cause no substantial long term adverse effect on the provision
of the City's services or tax base, and the planned use of the
property will not constitute a hazard to public safety, health
or morals; NOW THEREFORE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS:
THAT, the request for abatement of ad valorem taxes by
414 LLP, on behalf of Lone Star Pet Supply, is approved. The
approved rate is 86.66% for a five (5) year period beginning 1
January, 1998. Taxes shall be abated on capital improvements
only.
THAT, the City Manager is authorized to enter into an
agreement, shown as Exhibit I, with 414 LLP.
Approved on first reading the 16th day of December, 1997.
P~PPROVED AND
t ' 1998.
ADOPTED
this
the t Tt/ day
of
ATTEST:
~~~
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 414
Partnership LTD., for Lone Star Pet Supply Inc., (hereinafter
called the "Company").
2. Authorization and Findings.
a. This agreement is entered into pursuant to:
(1) Section 312 of the Texas Property Tax Code.
(2) City of Schertz Ordinance 97-T-4, which 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 Cf <t - T - J
which approves this tax abatement and agreement and
authorizes the execution hereof.
the
meet
finds
b. The City, by approval of this agreement, hereby finds
terms of this agreement and the property subject to it, to
the "Guidelines and Criteria" as adopted, and further
there wil1 be:
(1) no substantial long-term adverse affect on the
provision of City services or tax base; and
(2) no hazard to public safety, health, or morals as
the result of the planned use of the property.
3. Property
a. The real property is described as Lot 5, Block 3,
(5.490 acres), in the Tri-County Business Park Subdivision,
recorded in Volume 5, page 279B of the Records of Deeds and
Plats in Guadalupe County on 18 January, 1996, (hereinafter
called the "Property").
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 1997 base year
value established by the Guadalupe County Appraisal District is
$215,000.00.
c. The tax account of the Property is IG-1492-0003-00500.
-1-
d. A general description of the improvements to be made by
the Company is set out in the basic abatement application.
4. Company Representations and Estimates.
a. The Company represents they are
simple of the Property. The Property is
City of Schertz, State Enterprise Zone,
Park, and within Guadalupe County, Texas.
the owners in fee
located within the
Tri-County Business
b.
to be
retail
The Company represents that the use of the Property is
as follows: Warehousing and Distribution of sundries to
outlets.
c. The Company estimates it will make capital improvements
("Improvements") to the Property which will cost approximately
$2,400,000.00.
d. The Company represents that a minimum of sixty four
(64) new jobs will be created in the City of Schertz in
connection with the operation of the Company on the Property,
and it will have an annual payroll in the approximate amount of
$1,822,000.00 in facilities located in Schertz, Texas.
e. The Company represents that no interest in the Property
is presently held by or leased by and covenants that it shall
not sel1 or lease any interest in the Property to, a member of
the City Council of the City, 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.
5. Terms of the Agreement.
This Agreement is conditioned on the Company
following improvements to the Property (hereinafter
as the "Improvements") and fulfilling the following
making the
referred to
covenants:
a. Construction of a approximately 90,000 sq ft building,
including office spaces. The Company represents that the
Improvement to the Property will cost approximately
$2,400,000.00 and wil1 be completed during the term of the
abatement.
b. The Company covenants and agrees that a minimum of
sixty-four (64) new permanent positions will be created in the
City of Schertz with the operations of the Company on the
Property within one year of the Commencement Date (defined
below) of the tax abatement. Any permanent jobs created after
the date of execution of this Agreement shall be considered a
new permanent position for purposes of this Agreement.
-2-
c. The location of the Improvements is
described in a site plan approved by the
Planning and Zoning Commission.
more particularly
City of Schertz
d. 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 pIan
approved by the Planning and Zoning Commission of the City.
e.
Property
assessed
The Company agrees to pay all ad valorem taxes
and on persona 1 property in a timely manner,
by the City or any other tax jurisdiction.
on the
whether
f. 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.
g. 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 24 hours notice and will be
conducted in such a manner as to not unreasonably interfere
with the operation of the Property.
h. The Company agrees
permanent employees in the
approximately $1,822,000.00
abatement.
that the
City at
throughout
Company payroll
the Property will
the term of the
for
be
tax
i. The Company agrees annually to certify in writing its
compliance with the terms of this Agreement, which
certification shall be filed by January 15 of each year during
the Term of the Abatement and by January 15 of the year
following the Term of the Abatement.
6. Terms for the Tax Abatement.
a. Provided that the Company complies with its obligations
under Section 5 of this Agreement throughout the period of the
abatement, 86.66% of the entire assessed value of the
Improvements located on the Property shall be exempt from ad
valorem taxation for a period of five (5) years.
-3-
b.
property
Property.
No abatement of taxes shall be granted as to personal
of the Company installed or maintained within the
c. The abatement shall be for a five year period (the
"Term of this Agreement") commencing on January I, 1999 (the
"Commencement Date"), and expiring on the 31 December, 2003
(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 shal1 have the right 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.
7. 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
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 this Agreement, the City will notify the Company in
writing at the address stated in Section 8 of this agreement,
and if the defaults specified with reasonable particularity in
such notice are not cured within sixty days from the date of
such notice, then this Agreement may be terminated upon written
notice to the Company.
If this agreement is terminated by the City, 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.
-4-
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 right
to (i) recapture 100% of the taxes abated in prior years and
the year in which such discontinuance occurs; and (ii)
terminate this agreement.
e. A total bil1 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 days after receipt.
Penalty and interest wil1 not begin to accrue until the company
has failed to pay any of the amount placed back on the tax roll
within sixty days after receipt of the bill, unless
arrangements satisfactory to the City and the Guadalupe County
Tax Assessor/Col1ector have 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 days after
the date of deposit in the United States Mail, certified mail,
return 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 delivered:
Mr. Dennis Stahl
17414 Triton Drive
Schertz, Texas 78154
With copy to:
Mr. & Mrs Dennis Stahl
14302 Ben Brush
San Antonio, Texas 78248
To the City:
If mailed or personally delivered:
City of Schertz
Attn: City Manager
P.O. Drawer I
Schertz, Texas 78154
-5-
9. 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 rights of the
holders of outstanding bonds of the City. If the holders of
outstanding bonds of the City exercise any of their rights 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' rights.
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 10ng 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 ful1 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.
-6-
14. Applicable Law.
This Agreement shall be construed under laws of the State of
Texas and is performable in Guadalupe County, Texas.
15. Binding on Successors and Assigns.
This agreement will be binding on
the parties hereto and their
permitted assigns.
and inure to the benefit
respective successors
of
and
16. Date.
This agreement has been executed by the parties in multiple
originals, each having full force and effect on this the ~
day of D~~~h~, 199~.
~~~
Dennis Stahl
414 Partnership LTD.,
for Lone Star Pet Supply Inc.
CITY OF SCHERTZ
~1;:~
City Manager
By:
ATTEST:
~~ t2L~
Norma Althouse
City Secretary
Seal of the City
County of
State of Texas:
,&'/.Pc~
-7-
This instrument was acknowledged before me on December 17,
19 ll, by Dennis W. Stahl, of 414 Partnership LTD, a Texas
Limited Partnership, on behalf of said Limited Partnership.
(SEAL)
Notary Public in
State of Texas
1~, /-((
Name of
C
(Printed
~ffrl9-
NOta y)
My commission expires:
6-28-98
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me
c;r~ 9 ,1991:., by Kerry R. Sweatt, City
of the Cit of Schertz, Texas, a municipality and body
formed under the laws of the State of Texas, on behalf
municipality.
on
Manager
politic
of said
(SEAL)
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Notary Public in and for the
State of Texas
NORMA ALTHOUSE
Notary Public, Stlte of TeX3$
My Commlssiorl ExpIres Nov. 9. 1998
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AIoem t7 HI- T tI CJU -5 E
(Printed Name of Notary)
My commission expires: 1/ /c; If r
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ORDIDNANCE
.NO.98-T-1
BY THE CITY COUNCIL
OF THE CITY OF
SCHERTZ. TEXAS AP-
PROVING A TAX ABATE-
MENT AND A TAX
ABATEMENT AGREE-
MENT FOR AND WITH
414 LLP, A TEXAS COR-
PORATION. ON BEHALF
OFLONESTARPETSU~
PLY AND PROPERTY
OWNER IN THE CITY OF
SCHERTZ.
PASSED, APPROVED
AND ADOPTED the 6th
day of January, 1998.
Norma Althouse
City Secretary, '
"
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FEBRUARY I, 1998
FEBRUARY 5, 1998
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FEBRUARY
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f ....'iir.. '.' '0. '\ SARAH MEDRANO
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ORDtNA~E NO. 98-T"1
BY 1tlE CITY COUNCIL
OF THE d1v' OF
SCHERTZ, TEXAS Ap.
PROVING A TAX ABATE-
MENT AND A TAX
ABATEMENT AGREE.
MENT FOR AND WITH
414 LLP. A TEXAS COR.
PORATION. ON BEHALF
OF LONE STAR PET SUP.
PLY AND PROPERTY
OWNER IN THE CITY OF
SCHERTZ.
PASSED, APPROVED
AND ADOPTED the 6th
day of Januaoy, 1998.
Nanna Althouse,
City Secretaoy.
98
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AN oR1ANCE . .
BY THE CI COUNCIL
OF THE CITY OF
SCHERTZ, XAS Ap.
PROVING A tAX ABATE.
MENT AND A TAX AN ORDINANCE
ABATEMENT A,GREE. BY THE CITY COUNCIL
OF THE CITY OF
MENT FOR ANP WITH SCHERTZ, TEXAS Ap.
414 LLP, A TEXAS COR. PROVING A TAX ABATE-
PORATION, ON BEHALF MENT AND A TAX
OF LONE STAR PET SUP- ABATEMENT AGREE-
PLY, AND A PROPERTY MENT FOR AND WITH
OWNER IN THE CITY OF 414 LLP, A TEXAS COR-
SCHERTZ. PORATION, ON BEHALF
Approyed on hi --.g the OF LONE STAR PET SUP-
the 16th .-y 01 December, PLY, AND A PROPERTY
1997. OWNER IN THE CITY OF
Norma Althouse SCHERTZ.
City Sacratary. ' Approved on filS! reading the
the 16th day Of{ecember.
') 1997.
Norma Althous I
--.'
City Secretary.
11 O. Legal Notices
scch cctiiC2.tfcr:s :==:~C cr. the ~cilC',lii:-:,: Cc.~2S:
. - -
FEBRUARY 1, 1998
FEBRUARY 5, 1998
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SWGm to end sL!bs.:;;;::ed before ~e, ~~is
6
day of FEBRUARY
A.!J.,19
98
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/',<1')0 _'. _ "", E My CommISSion Expires 07-22-2001
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Net;:;rf Pubiic, Gu;:;c3Iu;::e C.::unty, Texas