96T27-SECURITY CAPITAL INDUSTRIAL TRUST
ORDINANCE NO.
~-T~1
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, APPROVING A TAX ABATEMENT
AND A TAX ABATEMENT AGREEMENT FOR AND WITH
SECURITY CAPITAL INDUSTRIAL TRUST, 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 Security Capital Industrial
Trust, 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 Security Capital
Industrial Trust described as Lot 1 and 5, Block 1, (12.341
acres) in the Tri-County Business and Industrial Park,
recorded in Volume 5, Pages 7a and 7b, Plat Records of
Guadalupe County on 26 December, 1985, and is within a
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
Security Capital Industrial Trust is approved. The approved
rate is 90% for ten (10) years. Taxes shall be abated on
capital improvements only.
THAT,
agreement,
Trust.
the City Manager is authorized to enter into an
shown as Exhibit 1, Security Capital Industrial
Approved on first reading the 20th
ADOPTED
day of August, 1996.
the 3,.,i day
of
PA~~D, APPROVED AND
. ~ "'/L/'<./ , 1996.
. ,
c
/L.
Mayor, City of
fie 1c:/l1
Schertz, Texas
ATTEST:
AI.I f)~ 13Mf'/p-v
~il City Secretary, City of Schertz
(SEAL OF CITY)
Tax Abatement Agreement
1. Parties.
This agreement,
City of Schertz,
Security Capital
"Company") .
is made and entered
Texas (hereinafter
Industrial Trust
into by and between
called the "City"),
(hereinafter called
the
and
the
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 94-T-33, 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
this tax
execution
of Schertz Ordinance 96-T-27
abatement and agreement and
hereof.
which approves
authorizes the
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 to be improved under this Agreement
(hereinafter called the "Property") is described as
follows: Lots 4 and 5, Block 1 Tri-County Business and
Industrial Park Subdivision.
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
1995 base year value established by the Guadalupe county
Appraisal District is $156,490.00.
c. The tax accounts of the Property are
1G3325-1001-00400-00 and 1G3325-2001-00500-00.
-1-
d.
the
and
A general description of the improvements to be
Company is set out in the application attached
made a part hereof.
made by
hereto
4. Company Representations and Estimates.
a. The Company represents they are the owners in fee
simple of the Property. The Property is located within a
State of Texas Reinvestment Zone and within Guadalupe
County, Texas.
b.
will
this
The Company represents that the use of the Property
be consistent with the existing authorized zoning for
area.
c. The Company estimates it
("Improvements") to the
approximately $6,000.000.00.
will make capital improvements
Property which will cost
d. The Company represents that a mlnlmum of twenty (20)
jobs will be created in connection with the operation of
the Company on the Property, and it will have an annual
payroll in the approximate amount of $500,000.00 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 requirements:
a. The
Property
completed
Company agrees that the Improvements
will cost approximately $6,000,000.00 and
during the term of the abatement.
to the
will be
b. The Company covenants and agrees that a minimum of
twenty (20) new permanent positions will be created 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 more
described the application attached hereto and
hereof.
particularly
made a part
d. The Company covenants and agrees that all Improvements
constructed in the Reinvestment Zone shall at all times
comply with all applicable Guadalupe County and 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 prior written 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 payroll for permanent
employees in the City at the Property will be approximately
$500,000.00 throughout the term of the tax abatement.
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.
j. 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 passed on to
the lessee(s) in a pro rata share.
-3-
k. In the event the Company leases all or part of the
Improvements to a third party, the Company agrees that the
terms in paragraphs b an h above related to the number of
jobs and payroll shall remain in effect and be a
responsibility of the Company.
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, ninety percent (90%) of the entire assessed
value of the Improvements located in the Guadalupe County
Appraisal District in each such year, shall be exempt from
ad valorem taxation.
b. No abatement of taxes shall be granted as to personal
property of the Company (or lessee) installed or maintained
within the Reinvestment Zone.
c. The abatement shall be for a ten (10) year period (the
"Term of this Agreement") commencing on January 1, 1997
(the "Commencement Date"), and expiring on 31 December,
2006. 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 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. The sixty (60) day cure period may
be extended an additional sixty (60) days upon written
notice by either party.
-4-
b. In the event the Company (or lessee) 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
(60) days from the date of such notice, then this Agreement
may be terminated upon written notice to the Company. The
sixty (60) day cure period may be extended an additional
sixty (60) days upon written notification by either party.
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.
d. If during the Abatement Period all operations at the
Property are discontinued, 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 and may be mailed,
telecopied, or sent by overnight delivery. 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. If any notice or communication
is sent by telecopy or overnight delivery, then such notice or
communication shall be deemed delivered upon receipt.
-5-
Unless otherwise provided in this agreement, all notices shall
be delivered to the following address:
To the Company:
If mailed or delivered:
Property Management
3453 IH-35 North, Suite 109
San Antonio, Texas 78219
Telephone: 210/212-9292
Telefax: 210/271-7618
With Copy to:
SCI Development Services Incorporated
Attn: Robert Watson
14100 E. 35th Place
Aurora, Colorado 80011
Telephone: 303/375-9292
Telefax: 303/576-2600
And With Copy to:
Mayer, Brown, & Platt
Attn: Ronald M. Shoss
700 Louisiana, Suite 3600
Houston, Texas 77002
Telephone: 713/546-0504
Telefax: 713/224-6410
To the City:
If mailed or delivered:
City of Schertz
Attn: City Manager
P.O. Drawer I
Schertz, Texas 78154
Telephone: 2l0/658-35l0
Telefax: 210/659-3204
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.
-6-
10. Assignment.
This agreement may be assignable to a new owner provided (i)
the net worth of the assignee is over $25,000,000.00; (ii) the
assignee's primary business is industrial leasing; (iii) the
Company certifies to the good reputation of the assignee; and
(iv) the assignee assumes the Company's obligations under this
Agreement.
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 use its best efforts toward establishing an
alternative agreement with terms similar to this Agreement and
considering any bondholders' rights.
l2. 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.
l3. 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.
l4. Applicable Law.
This Agreement shall be construed under laws of the State of
Texas and is performable in Guadalupe County, Texas.
-7-
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.
l6. Date.
This agreement
origina14 9.each
day of h "
has been executed by the parties in multiple
having full force and effect on this the ~
199,8.}
ATTEST:
~U-/ a&~
Norma Althouse
City Secretary
Seal of the City
State of Texas:
County of 1)~~A~
This instrument was
~...\'M.~ ~ 0 , 199il
Ru.Il,' ',T1\L 1"'~...s,.tJ.lf. Ta.'tJT
behalf of said corporation.
(SEAL)
,4*";;\"!iJ~;\
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"~~.?~',~~"
MARIA C, ELIAS
MY COMMISSION EXPIRES
July 16, 2000
e.e-c.u. \,.
CITY OF SCHERTZ
By:
acknowledged
by ST~\J,,"~
\'\c..jO-AQ
U~lO-'C/ . QQ~[lA)
Notary Public in and for the
State of Texas
'l1~l?ji\ r t'/U)..')
(Printed Name of Notary)
My commission expires: 7/1{,/:?ooo
before
I~- MeyeR.
corporation,
me
on
of
on
,
-8-
THE STATE OF TEXAS
COUNTY OF GUADALUPE
Th~ instrument was? ackp/lwledged c before me on
Ah-Uh.<* ';?S , 199tr, by ~y:J? .....{t)F.ATrCity 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)
~'1U--' lluk4e./
Notary Public in and for the
sz of Texas
/17.4 /h...T/lCV5L
, (Printed Name of Notary)
rm~~:'..i'; t ~__ '-'-;;
rJO:2rj ;":;:)1,:, ~~~::" c\
r.;y Co:n'-:li~s:2i1 L;j;r~o r~'.I_ :~, ,c'.
My commission expires: 11;f~rj'
-9-
PUBLISHER'S AFFIDAVIT') . )
'1 " yi<. (1-:'-<' )< J
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Before me, the undersigned authority, on this date personally appeared L. A - REYNOLDS
THE STATE OF TEXAS,
County of Guadalupe
I
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 published in said county; that a copy of the within and foregoing
times before the return day named therein, such
ORDINANCE NO 91H-27
AN ORDINANCE
By The City Council of the
City of Schell<, lexas, ap-
proving ~ tax abatement
and a tax abatement
agreement for and with
security capital industrial
trust, a property owner in the
City of Schertz,
Pasftll: approved and
adopted the 3rd day of Sep-
tember, 1996, ..
Nonna Althouse
tiity Secretary.
AD was published in said newspaper
;>
publications being on the following dates:
SRP~RMRP.R 17, 1qqh
SEPTEMBER 1Q, 1qqh
and a newspaper copy of which is hereto attached.
~,
Sworn to and subscribed before me, this 24th day of SEPTEMBER
ORDINANCE NO 96- T -27
AN ORDINANCE
By The City Council of the
City of Sc;hertz, Texas, ap-
prov;ng a tax abatement
and a tax abatement
agreement for and wi.th
security capital industnal
trust, a property
owner in the City of Schertz.
Passed. approved and
adopted the 3rd day of Sep-
tember. 1996.
Norma Althouse,
City Secretary.
A.D.,19 Q6 .
l M'T~II~ ~
!~!' . {~\ RUTH AYERS
t*:,if}.f NoIalyPubl~,SGi!OITelas
\<1';>-'" /~ 1 MyCommissionE:qliles12.21-1900
'1\\::~OF'-,-0Y
......~~_......
Notary Public, Guadalupe County, Texas
County of Guadalupe
'...."..
PUBLISHER'S AFFIDAVIT
W ~,fl11 Jir
p {Li~ ;JJ. .' ' r::l
:J d- f L~1rft I fJ
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--- e,r
JU))J;;Pf If I t96
I
THE STATE OF TEXAS,
Before me, the undersigned authority, on this date personally appeared L . A. REYNOLDS
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 published in said county; that a copy of the within and foregoing
AD was published in said newspaper
and a newspaper copy of which is hereto attached.
times before the return day."_amed therein, such
AN ORDINANCE
BY THE CITY COUNCIL
OF THE ClTY OF
SCHERTZ, 'tEXAS, AP- AN ORDINANCE
PROVING A TAX ABATE- BY THE CITY COUNCIL
MENT AND A TAX OF THE CITY OF
ABATEMENT AGREEM- SCHERTZ, TEXAS, Ap.
NET FOR AND WITH SE- PROVING A TAX ABATE,
CURITY CAPITAL INDUS- MENT AND A TAX
TRIAL TRUST, A PROP-
ERTY OWNER IN THE ABATEMENT AGREEM-
CITY OF SCHERTZ, NET FOR AND WITH SE.
Approved on first reading the CURITY CAPITAL INDUS-
20th day of August, 1996, TRIAL TRUST, A PROP,
Nanna Althouse, ERTY OWNER IN THE
,~_ City Secretary CITY OF SCHERTZ,
, --- -........ Approved on first reading the
'" 20th day of August, 1996,
___ / Norma Althouse,
, City Secretary
11 0 Legal ~otlces
--...............--~ -
2
publications being on the following dates:
AUGUST 25, 1996
AUGUST 29, 1996
......
Sworn to and subscribed before me, this 29th
day of AUGUST
A.D., 19 96
Notary Public, Guadalupe County, Texas