1998T35-TAX ABATEMENT
ORDINANCE NO. f,f-i-3S
AN ORDINANCE
BY THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT AND A
TAX ABATEMENT AGREEMENT FOR
AND WITH KEACO INC., 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 Keaco Inc., 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 Keaco Inc., described as Lot 28, Block
5 of the Tri-County Business and Industrial Park, and, is within a State
Enterprise Zone as approved by the Texas Department of Commerce on 11
April, 1995; and,
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 Keaco Inc., is
approved. The approved rate is 33.42% for five (5) years. Taxes shall be
abated on capital improvements only.
THAT, the City Manager is authorized to enter into an agreement, shown
as Exhibit 1, with Keaco Inc.
Approved on first reading the ,hi day of])a;lJt)f'.~1998.
PASSED, APPROVED
J):;eE/llI3E.e ,1998.
AND
ADOPTED
this
the /..5TII day
of
Mayor, City of Schertz, Texas
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 Keaco 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 98-T-35, which approves this, tax
abatement and agreement and authorizes the execution hereof.
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) 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 28, Block 5, (1.529 acres), in the
Tri-County Business Park Subdivision, recorded in Volume 4, page 343-346 of
the Records of Deeds and Plats in Guadalupe County, (hereinafter called the
"Property").
-1-
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 1998 base year value established by the Guadalupe County
Appraisal District is $67,930.00.
c. The tax account of the Property is 1 G-3325-2006-00600.
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 the owners in fee simple of the
Property. The Property is located within the City of Schertz, State Enterprise
Zone, Tri-County Business Park, and within Guadalupe County, Texas.
b. The Company represents that the use of the Property is to be as
follows: Manufacture and Distribution of Packaging Material of all kinds.
c. The Company estimates it will make
("Improvements") to the Property, which will
$633,465.72.
capital improvements
cost approximately
d. The Company represents that a minimum of seven (7) 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 $275.000.00 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 sell 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 making the following
improvements to the Property (hereinafter referred to as the "Improvements")
and fulfilling the following covenants:
a. Construction of an approximately 12,800 sq ft building, including
office spaces. The Company represents that the Improvement to the Property
will cost approximately $633,465.72 and will be completed during the term of
the abatement.
-2-
b. The Company covenants and agrees that a minimum of seven (7) 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.
c. The location of the Improvements is more particularly described in a
site plan approved by the City of Schertz Planning and Zoning Commission.
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 plan approved by the Planning and Zoning
Commission of the City.
e. 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.
f. The Company agrees to fumish 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 that the Company payroll for
employees in the City at the Property will be approximately
throughout the term of the tax abatement.
permanent
$275,000
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 to
the City of Schertz of each year during the Term of the Abatement and by
January 15 of the year following the Term of the Abatement.
-3-
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, 33.42% 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.
b. No abatement of taxes shall be granted as to personal property of the
Company installed or maintained within the Property.
c. The abatement shall be for a five year period (the "Term of this
Agreement") commencing on January 1, 2000 (the "Commencement Date"),
and explnng on the 31 December, 2004 (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 shall 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.
-4-
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 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 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 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 days after receipt of the bill, unless arrangements
satisfactory to the City and the Guadalupe County Tax Assessor/Collector 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:
With copy to:
-5-
To the City:
If mailed or personally delivered:
City of Schertz
Attn: City Manager
P.O. Drawer I
Schertz, Texas 78154
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 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.
14. Applicable Law. This Agreement shall be construed under laws of the
State of Texas and is performable in Guadalupe County, Texas.
-6-
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 _day of
199_.
For The Company
By:
CITI OF SCHERTZ
By: Kerry R. Sweatt
City Manager
ArrEST:
Norma Althouse
City Secretary
Seal of the City
State of Texas:
County of
This instrument was acknowledged before me on
,of Keaco Inc., a
corporation, on behalf of said corporation.
,199_, by
(SEAL)
Notary Public in and for the
State of Texas
(Printed Name of Notary)
My commission expires:
-7-
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on , 199_, by
Kerry R. Sweatt, City Manager of the City of Schertz, Texas, a
municipality and body politic formed under the laws of the State of Texas,
on behalf of said municipality.
(SEAL)
Notary Public in and for the
State of Texas
(Printed Name of Notary)
My commission expires:
-8-
DRAFT
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 Keaco Inc., (hereinafter called the
"Company").
2. Authorization and Findings.
a. This agreement is entered into pursuant to:
(1) Section 312 ofthe 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 which approves this tax
abatement and agreement and authorizes the execution hereof.
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) 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 28, Block 5, (1.529 acres), in the
Tri-County Business Park Subdivision, recorded in Volume 4, page 343-346 of
the Records of Deeds and Plats in Guadalupe County, (hereinafter called the
" Property") .
-1-
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 1998 base year value established by the Guadalupe County
Appraisal District is $67,930.00.
c. The tax account of the Property is IG-3325-2006-00600.
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 the owners in fee simple of the
Property. The Property is located within the City of Schertz, State Enterprise
Zone, Tri-County Business Park, and within Guadalupe County, Texas.
b. The Company represents that the use of the Property is to be as
follows: Manufacture and Distribution of Packaging Material of all kinds.
c. The Company estimates it
("Improvements") to the Property,
$633,465.72.
will make capital
which will cost
improvements
approximately
d. The Company represents that a minimum of seven (7) 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 $275.000.00 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 sell 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 making the following
improvements to the Property (hereinafter referred to as the "Improvements")
and fulfilling the following covenants:
a. Construction of an approximately 12,800 sq ft building, including
office spaces. The Company represents that the Improvement to the Property
will cost approximately $633,465.72 and will be completed during the term of
the abatement.
-2-
b. The Company covenants and agrees that a minimum of seven (7) 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.
c. The location of the Improvements is more particularly described in a
site plan approved by the City of Schertz Planning and Zoning Commission.
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 plan approved by the Planning and Zoning
Commission of the City.
e. 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.
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 that the Company payroll for
employees in the City at the Property will be approximately
throughout the term of the tax abatement.
permanent
$275,000
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 to
the City of Schertz of each year during the Term of the Abatement and by
January 15 of the year following the Term of the Abatement.
-3-
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, 33.42% 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.
b. No abatement of taxes shall be granted as to personal property of the
Company installed or maintained within the Property.
c. The abatement shall be for a eight year period (the "Term of this
Agreement") commencing on January 1, 2000 (the "Commencement Date"),
and expiring on the 31 December, 2004 (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 shall 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.
-4-
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 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 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 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 days after receipt of the bill, unless arrangements
satisfactory to the City and the Guadalupe County Tax Assessor/Collector 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:
With copy to:
-5-
To the City:
If mailed or personally delivered:
City of Schertz
Attn: City Manager
P.O. Drawer I
Schertz, Texas 78154
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 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.
14. Applicable Law. This Agreement shall be construed under laws of the
State of Texas and is performable in Guadalupe County, Texas.
-6-
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 m multiple
originals, each having full force and effect on this the _day of
199
For The Company
By:
CITY OF SCHERTZ
By: Kerry R. Sweatt
City Manager
A TrEST:
Norma Althouse
City Secretary
Seal of the City
State of Texas:
County of
This instrument was acknowledged before me on
,of Keaco Inc., a
corporation, on behalf of said corporation.
,199_, by
(SEAL)
Notary Public in and for the
State of Texas
(Printed Name of Notary)
My commission expires:
-7-
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on , 199_, by
Kerry R. Sweatt, City Manager of the City of Schertz, Texas, a
municipality and body politic formed under the laws of the State of Texas,
on behalf of said municipality.
(SEAL)
Notary Public in and for the
State of Texas
(Printed Name of Notary)
My commission expires:
-8-
Keaco Inc.
Capabilities
KEACO Inc. was founded in 1991 to manufacture and provide packaging
products for surface mount electronic components. Since our inception, we
have grown with the industry and widened our product offerings. KEACO is
now recognized as a leader in the industry and one of the fastest growing
privately held corporations in America, averaging more than 100 percent
growth per year. We are currently building a new facility that is scheduled for
completion during the first quarter of 1999. This new facility will be
expandable and will have a state-of-the-art carrier tape manufacturing
department specifically designed for the proper flow of work to achieve even
greater manufacturing efficiency. KEACO utilizes the latest in production
machinery and molds that are not only reliable, but also faster than the
competition. Increased speed in our industry means reduced cost for the
customer.
Quality
KEACO is currently beginning the process of ISO 9000 certification and should
be certified by year-end 1999. Statistical process control is heavily relied on
and is illustrated in our current quality manual that is in baseline compliance
to Mil-I-45208A. We utilize the latest technology in video inspection equipment
that is absolutely amazing in accuracy and detail. All production carrier tape
has 100 percent inspection on all embossed pockets, which greatly assists our
efforts in reaching our goal of zero defects.
Reliable
We also pride ourselves on an excellent record of on-time deliveries. In fact, we
have received preferred vendor status, certified supplier and ship to stock
status with many of our customers. These types of actions from our customers
tell you that we do things right - the first time. This also allows a comfort level
for our customers because they know they can rely on us and expect on-time
deliveries without the hassles of running out of stock. KEACO maintains a
large stock of our core items to ensure quick deliveries when sudden uptums
in business demand such actions.
Research and Development
KEACO has an ongoing research and development program that stays on top of
any industry changes. We participate in electronic industry committees, sub-
committees, and working groups that enable us to focus on our industry's
needs. The latest in CAD software is used for in-house design and conceptual
development of new products.
Global Presence
KEACO has a global presence and currently works with companies from five
continents. Our Asian business partner, CCD Enterprises, has all items
readily available in Singapore, Malaysia, Indonesia, China, and the Philippines.
Duplicate machinery and tooling exists in Asia since many of our products are
manufactured at both locations. This allows our global customers to have the
same products at U.S. facilities as well as overseas, which creates uniformity
and product consistency. Our new facility under construction in San Antonio
will be located in a foreign trade zone that could possibly help some of our
existing and potential customers, depending on their locations.
Send questions and comments to our e-mail address:
info@keaco-smt.com
Mailing address:
KEACO, Inc.
P.O. Box 47638
San Antonio, TX 78265
Phone: (210) 657-7565 Fax: (210) 657-2341
Toll Free Phone: 1-800-730-3083 Toll Fee Fax:
1-888-745-9227
SMD ReelsCarrier TapeCover TapeBarrier
BagsDesiccantsHumidity
Indicator CardsAdditional
Products
13 November 1998
To: Mayor and City Council
From: Kerry R. Sweatt, City Manager
~Cl.Q
Subject: Tax Abatement Request (Keaco Inc.)
On 15 October 1998 the City of Schertz Economic Development Commission
met to consider a request for tax abatement by Keaco Inc. The request met all
the requirements of our Guidelines and Criteria.
Keaco Inc. is a distributor and manufacturer of all types of packaging products,
primarily in the computer industry. A company fact sheet off their web site is
attached for your review. They are moving, from San Antonio, into a new
12,800 sq.-ft. building in Tri-County Business Park. The commission, after
reviewing the Keaco Inc. request, unanimously recommended approval of a
33.42% tax abatement on capital improvements for a five (5) year period. Mr.
Mark F. Keats, President of Keaco Inc. represented the company.
Please note the package does not contain a request for a Re-Investment Zone.
The reason is they will be locating in the State Enterprise Zone, which is
automatically a Re-lnvestment Zone.
Attached are the application, an evaluation by staff, a draft ordinance, the draft
abatement agreement, and a company profile.
I ~ KEACO
KEACO INC.
P.O. Box 47638
San Antonio, TX 78265
Tel (210) 657-7565
FAX (210) 657-2341
September 10, 1998
City of Schertz, Texas
1400 Schertz Parkway
P.O. Drawer I
Schertz, TX 78154
Attn: Mr. Mark Marquez
Dear Mr. Marquez:
This letter is in reference to our request for consideration for a standard tax and
jobs abatement including possible future use of the special abatements for a
foreign trade zone and enterprise zone.
Following you will find the required information for application:
The project will consist of an office/manufacturing/warehouse facility of
approximately 12,800 square feet as permitted and approved by the City of
Schertz. The overall project cost is broken down as follows:
Land (Including survey and re-plat) - $ 67,930.00
Building Construction (including architecture, Civil Engineering, -$633,465.72
Landscape Design, Structural Engineering, Soil Testing,
Electrical Engineering, Appraisal and City of Schertz Fees)
Total Building Cost including Land -$701,395.72
----------
----------
The current value of fixed assets (after depreciation)
The average inventory of products at KEACO
-$150,000.00
-$120,000.00
An aggressive growth strategy is in place to increase both
machinery (fixed assets) by introducing new products and
the jobs required to support and operate these machines.
KEACO has 7 fulltime employees with an annual payroll of -$275,000.00
(KEACO employment is expected to grow in Schertz)
These jobs consist of Management, Administrative, Engineering, Quality and
Production/Assembly.
The original lot # 6, Block 5 of unit 2 was subdivided into two separate lots.
The Tax I.D. of the property before subdivision was 1 G3325-2005-00600. A
new number will soon be assigned for the subdivided lot which is lot 28, block
5 in Tri County Business Park in which KEACO will be located.
The site plan for the facility as approved by the zoning and permitting
departments of the City of Schertz is attached.
We appreciate your consideration for these abatements and we look forward
to relocating to Schertz. Meanwhile, if you have any questions or comments,
please do not hesitate to contact me.
Best regards,
KEACO INC.
;Jt) t~
Mark:1:a~' .
President
Encl.: Site Plan
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KEA TTS/CL()SE SUBDIVISION
BEIi'13 LOT 28 BLOO< :. 1.529 ACl6
TRHn.NTY BUSI/>ESS & IJlWSTRIAl PAfI< LNIT 2
VOlLM: 4. PAG:S 343-346
CITY OF SOBrz. GUAOALlff COLNTY.TEXAS.
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Evaluation of a Tax Abatement Request by Keaco Inc.
On 10 September 1998, a tax abatement request from Keaco Inc. was received.
The abatement request was accepted on 11 September 1998.
Keaco Inc., is a wholesale supplier of packaging materials of all types. I have
attached a company profile off their Intemet Web Page.
Keaco Inc. is planning a 12,800-sq. ft. building. The estimated cost of the
building is $633,465.72. Equipment and inventory, appraised as Personal
Property for tax purposes, is estimated at $270,000.00.
The basis of the request is $633,465.72 of capital improvements to property in
the City of Schertz and job creation in Schertz with a payroll value of
$275,000.00. The company expects to employ approximately 7 people. The
proposed site is an approximately 5 acre tract in Tri-County Business Park.
Current value of the property is estimated at $67,930.00. The property is
located in Guadalupe County.
An evaluation of this abatement request based on our guidelines and criteria is
as follows:
Abatement Percentages
Capital Improvements of $633,930.00
First $75,000
Remaining $558,930.00@ 1% per $45,000
Payroll
$275,000.00 @ 1% per $25,000
10.00%
12.42%
11. 00%
Total Percentage Authorized
33.42%
Recommend Approval of a tax abatement of ad valorem taxes on Capital
Improvements for Keaco Inc. at a rate of 33.42% per year for a period of 5
years, beginning 1 January 2000.
Dollar Values of Keaco Project
Current Values Projected Values
Land $ 67,930.00 $ 67,930.00
Improvements $ $ 633,465.72
Personal Property $ $ 270,000.00
Total Values $ 67,930.00 $ 971,395.72
Tax Rate 0.3554 0.3554
Tax Revenue
Land $ 241.42 $ 241.42
Improvements $ $ 2,251.34
Personal Property $ $ 959.58
Total Ad Valorem Revenues $ 241.42 $ 3,452.34
Additional Revenues
Payroll $ $ 275,000.00
Multiplier @2 1% $ $ 2,750.00
Sales Tax $ $
Total Annual Revenues to the City $ 241.42 $ 6,202.34
Minus Abatement of Capital Improvements
at 33.42% $ 752.40
Difference From Current Revenues $ 510.97 .
Total Annual Cost of Abatement $ 752.40
Total Revenues to the City over the 5 Year Term $ 31,011.70
Minus Cost of Abatement over the 5 Year Term $ 3,761.98
Minus Current Revenues over the 5 Year Term $ 1,207.12
Total Net Revenues to the City over the 5 Year Term $ 26,042.60
Total Net Revenues Cover the Cost of the Abatement by:
6.92 to1
Ad Valorem Revenues cover the Cost of the Abatement by:
Annual Cost Per Job
$
4.59 to!
107.49
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Before me, the uncersigned authcrity, on this date personally appeared L. A. REYNOLDS
....... , ; '-.- ~";;"""""''''''' - ..~ ~
PUBLISHER'S AFFIDAVIT
"
THE STATE OF TEXAS,
County of Guadalupe
I
known
to me, who, being by me duly swom, on his oath deposes and says that he is the Advertising Director of
Tne Seguin Gazette-Enterprise, a newspaper published in said county; that a copy of the within and fore-
AD
1 times before the retum day named therein,
going
was pubiishee in said newspaper'
such publications being on the following dates:
ORDINANCIi' NO. 98- T-35
BY THE CITY COUNCIL
OF ,.THE CITY OF
SCHERTZ, TEXAS, Ap.
PROACHING A TAX
ABATEMENT AGREE.
MENT FOR AND WITH
KEACO INC" A PROPER-
TY OWNER IN THE CITY
OF SCHERTZ,
Passed, Approved and
Adopted the 1511I day of Do-
cember, 1998,
Norma Atthouse, CiIy Sec-
retary,
DECEMBER 27, 1998
and a newspaper copy of which is hereto attached.
Swom to and subscribed before me, this
29thdayof
nFr.F.MRF'R
.,
~' ^::~~~~~"ll
1 {."'c.\\ SARAH MeDRANO
~ ~" . i: N;J1l\/yPuDilc.StaliotTellaS
!, \/,r... ,,'. / MyCummissionExpirns07-22-2001
S \:,.,~~,,~~....~~::.""
,-,,,,-,-
~~~~~"
ORDINANCE NO, 98- T-35
BY THE CITY COUNCIL
OF THE 'CITY OF
SCHERTZ, TEXAS, Ap.
PROACHING A TAX
ABATEMENT AGREE-
MENT FOR AND WITH
KEACO INC" A PROPER-
TY OWNER IN THE CITY
OF SCHERTZ,
Passed, Approved apd
Adopted the 15th day of Do-
cember, 1998,
Norma Atthouse, CiIy Sec-
retary,
A.D., 19 OR
Notary Public, Guadalupe County, Texas
~
"
PUBLISHER'S AFFIDAVIT /) I;'''' (If) I
I '!!il) J,
/,;;> j-- ,1-~5~ r':;; 1/ ":1/ I' 11/\,
-x ,\l\\"lj If 0"1,1
; '(to, ", -;.4,'
U,L f'" "It ,I' f -
I,d.
" 'fI'
.I d ( . 1.//
#,j I,
THE STATE OF icXAS,
County of Guacalupe
Before me, the uncersigned authority, on this date personally appeared L. A. REYNOLDS
known
to me, who, being by me duly swam, on his oath deposes and says that he is the Advertising Director of
The Seguin Gazette-Enterprise, a newspaper published in said county; that a copy of the within and fore-
going
AD
was published in said newspaper'
2 times before the rerum day named therein,
DECEMl1l:;'D
, 7 1 Q Q A
,
! "\ AN ORDINANCE
BY THE <?ITY OF
SCHERTZ, TEXAS, AP.
PROVING A TAX ABATE.
MENT AND A TAX
ABATEMENT AGREE.
MENT FOR AND WITH
KEACO INC" A PROPER.
TY OWNER IN THE CITY
if OF SCHERTZ,
,. Approved on first reading the
1 $I day of December, 1998,
_ Nonna Althouse. CiIy Sec-
retary. Ai
11 Q Leg. . wtlces
such publications being on the following dates:
AN ORDINANCE
BY THE CITY OF
SCHERTZ, TEXAS, AP-
PROVING A TAX ABATE.
MENT AND A TAX
ABATEMENT AGREE-
MENT FOR AND WITH
KEACO INC" A PROPER.
TY OWNER IN THE CITY
OF SCHERTZ,
Approved on filsl reading the
1st day of December, 1998
Norma Althouse, City Sec-
retary.
TH:~FMRFR 24. 1998
and a newspaper copy of which is hereto attached.
(-----
~
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Sworn to and subscribed before me, this 2 8 t h
day of
DECEMBER
A.D., 19 98
f(r
'::-~-;--;;~'';:~:~\''I
j='~G~ .c- "0\/ SARAH MEDRANO
~. i\. ~
~. "7<';" . ~ NotaryPlAllic,SIa1€olT~
"" .... ,/'-1 . f MvCommissiooExpires07-22.2001
"II;:~~\~:,/,.,~.'.~,'~~:/
.,
~~~~
Notary Public, Guadalupe C<lunty, Texas
~