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2004T24-Tax Abatement ORDINANCE NO. e'l- 7=02'/ AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING A TAX ABATEMENT AND A TAX ABATEMENT AGREEMENT FOR AND WITH CORRIDOR HOTEL, LTD., A PROPERTY OWNER IN THE CITY OF SCHERTZ. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: WHEREAS, Section 312 of Texas Property Tax Code allows municipalities to abate and 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 the abatement of ad valorem taxes by Corridor Hotel, LTD., meets those Guidelines and Criteria, and further finds the terms of the tax abatement agreement listed at Exhibit I are acceptable, and WHERAS, the property owned by Corridor Hotel, LTD., described as a 2.33 acre tract ofland out of the John Saladin Survey No. 404, Guadalupe County, Texas; currently being platted as Lot 2, Block 1, Hampton Inn Subdivision in Guadalupe County, Schertz, Texas; 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 Corridor Hotel, LTD., is approved. The approved rate is 79% for ten (10) 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 Corridor Hotel, LTD. Approved on first reading the ~ day of ?' J.(j 2004. PASSED, APPROVED AND ADOPTED this the ..jld day of 2004. ATTEST: J~Gl~,~ (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 Corridor Hotel, Ltd. (hereinafter called the "Company"). 2. Anthorization and Findings. a. 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, 04-T-24, which approves this tax abatement and agreement and authorizes the execution there of. b. The City, by approval of this agreement, hereby finds the terms oftbis 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 the 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 property, (hereinafter called the "Property") is owned by Corridor Hotel, Ltd. described as a 2.33 acre tract of land out of the John Saladin Survey No. 404, Guadalupe County, Texas; currently being platted as Lot 2, Block 1, Hampton Inn Subdivision in Guadalupe County, Schertz, Texas. 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 2005 base year value established by the Guadalupe County Appraisal District is 156,034.06. 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 be made by the Company is set out in the basic abatement application and attachments. Tax Abatement Agreement Corridor Hote~ Ltd. DQ"",_l_",.f'7 4. 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, Hampton Inn Corridor, and within GuadalupeCounty. b. The company represents that the use of the Property is to be as follows: speculation building for hotel. c. The Company estimates it will make capital improvements (hereinafter referred to as "Improvements") to the Property, which will cost approximately $4,286,000.00. 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. 5. 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 56,000 square foot facility of hotel. The Company represents that the Improvements to the Property will cost approximately $4,286,000.00 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. e. The company agrees to furnish the Chief Tax Appraiser of Guadalupe County with information outlined in Chapter 22, VAT.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 Tax Abatement Agreement Corridor Hote~ Ltd. D.."'''''l.....f'7 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 January 15th to the City of Schertz of each year during the Term of the Abatement and by January 15th of the year following the Term of the Abatement h. The Company agrees to comply with the provisions of City Ordinance #96- T -5 Room Occupancy Tax as it exists or as amended. 6. Terms for the Tax Abatement a. Provide that the Company complies with its obligation under Section 5 of the Agreement throughout the period of the abatement, 79% of the entire assessed value of the Capital Improvements located on the Property shall be exempt from ad valorem taxation for a period of ten (10) 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 ten (10) year period (the "Term of the Agreement") commencing on January 1, 2005 (the "Commencement Date"), and expiring on December 31, 2014, the ten (lOth) 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. DefaultlRecapture. 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 the Agreement, the City will notify the Company in writing at the address stated in Section 8 of the Agreement, Tax Abatement Agreement Corridor Hotel, Ltd. p.,..,....-:Zr..f7 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. 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 ofthis 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 one hundred percent (100"10) 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 with 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, 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 personally delivered: Lewis Westerman Corridor Hotel, Ltd. 900 Isom Road, Suite 300 San Antonio, Texas 78216 To the City: If mailed or personally delivered: City of Schertz Attn: City Manager P.O. Drawer I Schertz, Texas 78154 Tax Abatement Agreement Corridor Hotel, LId. 1>...",,,,, A ",-r'7 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 the 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 my 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. 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. Tax Abatement Agreement Corridor Hotel, Ltd. p."......., ^f''7 This Agreement has been executed by the parties in multiple originals, each having full force and effect on this the n t \... day of S" "l' 2005. For the Company: CORRIDOR HOTEL, LTD. By: Corridor Hote~ G.P., LLC, it's Genenl P~er _ \iU...:.~. 'tVlCh By: Lewis F. Westerman Title: Executive Vice President County of Guadalupe t was knowledged before me on\~~ ,2005, by lJl;, . or Hotel, G.P., LLC, a Texas Limited Liability company, on behalf of KIM GARVEN Notary Public STATE OF TEXAS My Comm. Exp. 06-16--2008 Notary . c in and for the State of Texas My commission expires: ()&, -ll.o--/~~ ~1IJ"j' 0 (printed name 0 notary) For the City: cJ----- ~ :;:.> ------ .....~ -:~-- . ./ By:-;on Ta;I;- -- - // . Title: City Manager ATTEST: ary Interim City Secretary The State of Texas County of Guadalupe Tax Abatement Agreement Corridor Ho~ Ltd. O","_hn,t'l This instrument was acknowledged before me on .3" '-'C,..,. 8. 0 , 2005, by Don Taylor, City Manager of City of Schertz, Texas a municipality and body politic formed under the laws of the St ,~. -. . ~ A .. -..... l't mClpa 1 y. .1>>:,,"11'&7' fl~"('~ E. MATLOCK (8 ,~_ ..1 NolaryPubllc,StaleotTexas , \.<1';0 .".<0 My Commission ExpiresAug. 12, 2005 l ,,:r,"t.~, \$ -X. ,^",,-...c.- My commission expires: S' I'd - 0 S '5--. 0(\ "^-\ >,L. Notary Public in and for the State of Texas {; ,,' " f\'> p \\ 0 c K (printed name of notary) Tax Abatement Agreement Corridor Hote~ Ltd. '0"'..... 7..../"7 .. '., ~ BARS HOP&OLES COMPANY April 17, 2006 Ms. Jaime Osborne, RP.A Deputy Chief Appraiser Guadalupe Appraisal District 3000 N. Austin Street Seguin, Texas 78155 VL4 FEDERAL EXPRESS Re: Property Tax Abatement Hampton Inn & Suites Schertz, Texas Dear Jaime: Enclosed is the Application for Property Tax Abatement Exemption which I have completed and signed for the owner, Corridor Hotel, Ltd. Please let me know if you need anything else in this regard. Sinceyjly, ~~+.~ Lewis F. Westerman Executive Vice President LFW/kag Enclosure cc: Mr. Don E. Taylor / City Manager, City of Schertz Post Office Drawer I Schertz, Texas 78154 David Skrehot, Barshop & Dles Julian Ball, CBIZ Property Tax Solutions, Inc. 900 150M ROAD. SUITE 300 SAN ANTONIO. TEXAS 78216 210.366.3555 FAX 344.0140 WWW.BARSHOP-OlE5.COM _-60-1t6{Rev:B0318} .- - (11.28(12f89) Rule9.416} 1';06 - APPLICATION FOR PROPERTY TAX ABATEMENT EXEMPTION Appraisal district name Phone (area oode Bfld number) Guadalupe Appraisal District (830) 303-3313 Address 3000 N. Austin Street, Seguin, Texas 78155 Thia application covers property you owned on January 1 of this year. You must file the completed application between January 1 and April 30 of this year. Be sure to attach any additional documents requested. You must apply for this exemption every year, it will not be automatically renewed. Step 1: Owner's nama Owne~s CORRIDOR HOTEL, LTD. name and Present mailing address address 900 ISOM ROAD, SUITE 300 City, state, ZIP Code Phone (area oode and number) SAN ANTONIO, TEXAS 78216 . (210) 366-3555 Name of person preparing this application I Drlver's Ucanse, Personal 1.0. CertIficate,. or I Title LEWIS F. WESTERMAN Socl.1 See"rity N"mbor', TDL 01219890 EXEC VP lYpe of owner D Association [l] Corporation * o Nonprofit corporatton D Leasehold o Individual Step 2: legal description Describe the LOT 3, BLOCK I, HAMPTON INN SUBDIVISION IN GUADALUPE COUNTY, SCHERTZ, TX property Appraisal district account number (OptfonaJ) If you applied Please list the taxing units that have agreed to abate your taxes and attach copies of the abatement agreement for each unit. last year end CITY OF SCHERTZ nothing hes chenged, end/or your egreement(s) were not Are the terms and duration of each taxing unit's agreement different or Identical? modified, skip D Diffe_t D Identlca.l N/A this step end Step 3. Sign in If different, please copy this fonn for each taxing unit and complete step 2 for each unit. In the area where you listed the the renewel taxing units, please circle the taxing unit that you are summarizing. section below. If identical, please describe the nature of the abatement agreements for this year by completing the following: If you complete D Lump sum exemption of $ Step 2 with [ZJ Percentage exemption of 79 % attachments, D Other (Attach a statement describing the method of calculating abatement. Give dollar value to be exempted this year.) return to this original page Does the agreement abate taxes on personal property? .............................................. Ves D No IlJ fo complete Yes [ZJ NoD step 3. Are you in compliance with the agreement? ................................................................. If "No," attach a statement explaining the reason for non-complance. Step 3: By signing this application, you certify that this Infonnation is true and correct to the best of your knowledge and belief. Sign end sign Autho"~.,""'~~ tv" - Oate date the hD .: ~. ~ APRIL 17,2006 application On behalf of (name of organlzBtlon) Title CORRIDOR HOTEL, LTD. EVP OF GEN. PARTNER RENEWAL I certify that the information given in the application filed for _ is still true and correct to the best of my knowledge and of existing belief. exemption sign Authorized signature Date hD On behalf of (nan?6 of organization) Title If YOU make e false statement on this application, you could be found guilty of a Class A misdemeanor or a state jail felony uncler Texas Penal Code Section 37.10. l6u are required to give us this fnformation OIl this form, In order to perform fax related functions for this offles, Section 11.43 of the 1i1x Code authorizes this office to I8QU8st this Information to determIne t8x compliance. The ohlef appraiser is I9qlJfred fo keep the Information conffdentleJ and not CJl6fl to public fnspection, except to eppreJsaJ office employees who sppreJS9 ptopeJ1y and.as authorized by Section 11.48(b}, 1i1x Code. * LIMITED PARTNERSHIP WITH CORPORATE GENERAL PARTNER ORDINANCE NO. e'l- 7=02'/ AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING A TAX ABATEMENT AND A TAX ABATEMENT AGREEMENT FOR AND WITH CORRIDOR HOTEL, LTD., A PROPERTY OWNER IN THE CITY OF SCHERTZ. BE IT ORDAINED BY lHE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: WHEREAS, Section 312 of Texas Property Tax Code allows municipalities to abate and 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 the abatement of ad valorem taxes by Corridor Hotel, LTD., meets those Guidelines and Criteria, and further finds the terms of the tax abatement agreement listed at Exhibit I are acceptable, and WHERAS, the property owned by Corridor Hotel, LTD., described as a 2.33 acre tract ofland out of the John Saladin Survey No. 404, Guadalupe County, Texas; currently being platted as Lot 2, Block 1, Hampton fun Subdivision in Guadalupe County, Schertz, Texas; 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: ' TIIAT, the request for abatement of ad valorem taxes by Corridor Hotel, LTD., is approved. The approved rate is 79% for ten (10) years. Taxes shall be abated on capital improvements only. THAT, the City Manager is authorized to enter into an agreement shown as Exhibit I, with Corridor Hotel, LTD. I I I I I I I I , I Approved on first reading the ~ day of 7'~ 2004. PASSED, APPROVED AND ADOPTED this the .J ld day of 2004. ATTEST: ~cr:L%,~~ (SEAL OFClTY) "Exhibit 1" 1. Parties. Tax Abatement Agreement This agreement is made and entered into by and between the City of Schertz, Texas (hereinafter called the "City"), and Corridor Hote~ Ltd. (hereinafter called the "Company"). 2. Authorization and Fiudings. a. 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, 04-T-24, which approves this tax abatement and agreement and authorizes the execution there of. 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 the 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 property, (hereinafter called the "Property") is owned by Corridor Hotel, Ltd. described as a 2.33 acre tract of land out of the John Saladin Survey No. 404, Guadalupe County, Texas; currently being platted as Lot 2, Block I, Hampton Inn Subdivision in Guadalupe County, Schertz, Texas. 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 2005 base year value established by the Guadalupe County Appraisal District is 156,034.06. c. The Project has recently been platted, but not recorded, so no tax account on the Property has been established. d. A general description ofthe improvements to be made by the Company is set out in the basic abatement application and attachments. Tax Abatement Agreement Corridor Hote~ Ltd. 'D"'......1...f''1 4. 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, Hampton Inn Corridor, and within GuadalupeCounty. b. The company represents that the use of the Property is to be as follows: speculation building for hotel. c. The Company estimates it will make capital improvements (hereinafter referred to as "Improvements") to the Property, which will cost approximately $4,286,000.00. 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. 5. 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 56,000 square foot facility of hotel. The Company represents that the Improvements to the Property will cost approximately $4,286,000.00 and will be completed during the term ofthe abatement. b. The location of the Improvements is more particularly described in a site plan approved by the City of Schertz Plarming 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 marmer, whether assessed by the City or any other tax jurisdiction. e. The company agrees to furnish the Chief Tax Appraiser of Guadalupe County with information outlined in Chapter 22, V.AT.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 Tax Abatement Agreement Corridor Hote~ Ltd. Dan... ".<;,>-f'''1 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 January 15th to the City of Schertz of each year during the Term of the Abatement and by January 15th of the year following the Term of the Abatement. h. The Company agrees to comply with the provisions of City Ordinance #96- T -5 Room Occupancy Tax as it exists or as amended. 6. Terms for the Tax Abatement a. Provide that the Company complies with its obligation under Section 5 of the Agreement throughout the period of the abatement, 79% of the entire assessed value of the Capital Improvements located on the Property shall be exempt from ad valorem taxation for a period often (10) 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 ten (10) year period (the "Term of the Agreement") commencing on January 1,2005 (the "Commencement Date"), and expiring on December 31, 2014, the ten (loth) 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. DefaultIRecapture. 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 the Agreement, the City will notify the Company in writing at the address stated in Section 8 of the Agreement, Tax Abatement Agreement Corridor Hotel, Ltd. V~___".nf''7 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. If the city terminates this Agreement, taxes without abatement will be due for the year in which termination occurred and shaU accrue without abatement for aU tax years thereafter. However, there shaU 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 shaU by Ordinance adopted by the City Council have the right 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 hereofwiU be sent to the Company and the Company agrees to pay the total amount within sixty (60) days after receipt. Penalty and interest wiU not begin to accrue until the Company has failed to pay any of the amount placed back on the tax roll with 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, 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: Ifmailed or personally delivered: Lewis Westerman Corridor Hotel, Ltd. 900 Isom Road, Suite 300 San Antonio, Texas 78216 To the City: If mailed or personally delivered: City of Schertz Attn: City Manager P.O. Drawer I Schertz, Texas 78154 Tax Abatement Agreement Corridor Hote~ Ltd. P.".._.II...-r'7 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 ofthe City exercise any of the 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 ifthe 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 my 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. 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. Tax Abatement Agreement Corridor Hotel, Ltd. 'P"'''''''''L'o,.f'7 This Agreement has been executed by the parties in multiple originals, each having full force and effect on this the \ 7 { h day of -S I". r'\., 2005. For the Company: CORRIDOR HOTEL, LTD. By: Corridor HoteL G.P., LLC, U'sGene~i~ k By: Lewis F. Westerman Title: Executive Vice President Not blic in and for the State of Texas My commission expires:'C/.p-I~~ ~l1J (printed name of notary) For the City: C----- =~ BY:! Don ;;~~ Title: City Manager ATTEST: m . aV{,~/J1.&.' - By: ary Title: Interim ity Secretary The State of Texas County of Guadalupe Tax Abatement Agreement Corridor Hote~ Ltd. :Q.,."'....,;"...f"7 This instrument was acknowledged before me on .3'-1\ '\. ~Of ' 2005, by Don Taylor, City Manager of City of Schertz, Texas a municipality and body politic formed under the laws of the State of Texas, on behalf of said municipality y commISSIOn expIres: Tax Abatement Agreement Corridor Hotel, Ltd. D.,........7 ",f'7 .u-oS ~. )\ ' -, o. " I 'Lt-!' ~ Not1uy Public in and for the State of Texas C( , :, rY, .0. \ \ . v t (printed name of notary) PUBLISHER'S AFFIDAVIT \~\~) \~?' ::I OS 1: cl5 THE STATE OF TEXAS, County of Guadalupe Before me, the undersigned authority, on this date personally appeared Maggie Clarkson ,known to me, who, being by me duly sworn, on her oath deposes and says that she is the Business Manager of The Seguin Gazette- Enterprise, a newspaper published in said county; that a copy of the within and foregoing notice was published in said newspaper I time(s) before the return day named therein, such publications being on the following dates: .:Jc,{ / V / c;( ~ ,:;( CYJ c/ I and a newspaper copy of which is hereto attached. Y"n4- n<" c.~ -' ~- - ./ and subscribed before me this ~ ~ay of , A.D., 2004. =~ :;~~")~:2Z:?\_~-) ?';;~?:l~~~~?l?l~?l?:.~~:i'YQ:.~~:;'",-~ ~~~X;;;;,~ CAROL ANN AVERY ~ ~ nl"f~;& .*) . t ~~ " ~ \Y ,,/.) I'Jnaf}'rr.aJIIICStallofTexas ~ ~ ~~>:7:'~~,f>- MyGommlsslooExpires08.31-2004 ~ ':_,;;'~~C,-:r.' '-)r,~;c'~'{i'{cG~<1r(,l'(;~~t:(:~j't';~"":1";r.(.~:~,:; ,~- Notary Public, Guadalupe County, Texas PUBLISHER'S AFFIDAVIT . THE STATE OF TEXAS, County of Guadalupe Before me, the undersigned authority, on this date personally appeared Tommv C~O'" , known to me, who, being by me duly s'.'Iorn, on his oath deposes and says that he is the Publisher of The Seguin Gazette-E:Lterj:r:se. a newspaper published in said count'j; that a copy of the within and foregoing r.otic: was published in said newspaper J time(s) before the retum day named therein, SiX:-t publications being on the fclrawing dates: ,T uJy II. ;;; 00+ .' and a newspaper copy of which is hereto attached. ~ - ~... (1;;>= (' Sworn I~scrihed before m, llili< \ . AD., 2004. /Y day of . CN,OL ANN AVEIW . i'Mar,' Pi"iF(: $1abt of TeX<lB ~{VComfi'!;s:-;lOiitxpf{$\i08-31_2Ci04 . Notary Public, Guadalupe County, Texas the [j';';dR'eCordS.}~ 'aggregate am~unt . . uadalupe County, .01 the judgments. exes. to which instJU. against . the property . . "nls relere~ may pl,us all costs Of suit and . . "fo/;a.J,th9r'$,~,.TI'!~!'MAY liE .. 1ieSC/Ipli6tJ of Af;ll)I'i'fONAl 'fAXES . ~tliiCt) . "Dl!E,ONTHE PROP- . Y"~,".I\">""i ...I;RJ'":(. WHICH.I:lAVE . "upOnth~.~:"". 13E11'N .' .ASSeS$ED . flsi.91. sltid "dll(~nd- S1NCe.THE DATE 9F . ants or theirattomey, a JUDGMENT. For more . sllflicient portion of the Inlormaljj)n, q<lntsc! . j)roperty described your ,auQmey or LiNE. . 8bOve'shali be sOld to ElARGER GOGGAN . s~tisfy said judgment. 13LAIR~.. SAMPSON. . 'n!il.l'$.l. penjllties, . arid .,,1J,P. at (512)447-6675.. '~....'i;':.. ;y..:.,~ "'sc'CJ!.YECfl" J ~ ...tlght 01 rectempli(ln' ...", ~ :~'J::.~=~~~ :J:1.~ .: IrIJI'(8$t. tl\ereln.to ..... '~""'Y <Ifi!iill!.1f1!\; ~. prope'!Y. ~ Sclt$CIly~ · 1lf;~l!\<\'rJ ,~~ oil Wil['l\9lit a pUblic · '.~ln,\hf1 .;li\iI, In"~nli(jn .tuesday. . ;~.. ,...,tTt ;July 20. 'l\Ql}4; at 7:00 . i !!"', ,'-$il!l-, pm ,inltle Ml,II1/clpal . ,.~'9,/#"~ 99mplex.,. 'CQuncil . !lhiii;:~~'IC'~~" '. ~a.:w-: : ; 'one iJri '. ,lhereJo, 'Si:~e~,'rex8s\' -n,,; . may ,be .~ed. under purpdsa 01 the hearing . . th~ proVIsions 01 law. is to raceive citizen i". . SSld sale to ~ made pulon establishing a . by me to satisfy tt)e . Re7n~ent Zone lor . . Judgment rendered In 'CorrldorHotSl LId '. the ,above stylad and. .,' ,..,. " . num~red . ca~se',to- At.'" . '; '! 'geth~,'."It\h .' Jnt9c!lSl, iriv" '~lJitr,'6; . :'i~~'~'~'P';) . ' " S"rvI<l\lsm~y'iriol~de: consuliations, lield iri-. veSligations; "analyses. leasibility studies, pre- limirnlryengin~l1ng' Ie' P0rts.' grant; appliCation ailslstani:!l. pelrnitting, publi9 'p~e.l)~tionS; 1~$IeiJfil1l\S$hall Coilt8Ct ;,. RMdy SMw"nn, PUblic \Narks DirectOr at' 830-832- . 7304 lor, the entire Re- quest.lor PrOposal. Firms should submit eight (8) copies ,01 their propesal,~; ,in.,; a~ cl~rty . ..