2005T34-Tax Abatement
ORDINANCE NO. &.5- T- Jt./
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT AND TAX ABATEMENT AGREEMENT
BY THE CITY COUNCIL FOR AND WITH TC II LAND, L.P., 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 TC II Land, L.P. 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 TC II Land, L.P., described as Block 1, Lot 8,
located in the City of Schertz, Comal County, 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 TC II Land, L.P., is
approved. The approved rate is 76.5 % percent for Six (6) 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 TC II Land, L.P.
Approved on first reading the .j/sf day of ~ ' 2005.
PASSED, APPROVED AND ADOPTED this the ayof
ATTEST:
~~ ~
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CI Secre ry, CIty of Schertz
Mayor, City of Schertz, Texas
,2005.
(SEAL OF CITY)
"Exhibit 1"
Tax Abatement Agreement
TC II Land, L.P.
1. Parties.
This agreement is made and entered into by and between the City of Schertz, Texas (hereinafter called
the "City"), and TC II Land, L.P. (hereinafter called the "Company").
2. Authorization 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, 05- T -34, 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 TC II Land, L.P.
described as Block 1, Lot 8, Comal County;
b. Abatements approved will be based on the value of improvements set out on the real
property roll of the Comal County Appraisal District for the Property. The 2005 base year
value established by the Comal County Appraisal District is $693,890.
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
TC II Land, L.P.
Page I of6
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, Tri-County Business & Industrial Park, Unit
Two, and within Comal County.
b. The company represents that the use of the Property is to be as follows: speculation
building for Warehouse and service center with flexibility for manufacturing, office, office
service center, or distribution.
c. The Company estimates it will make capital improvements (hereinafter referred to as
"Improvements") to the Property, which will cost approximately $4,500,000.
d. The Company represents that no interest in the Property is presently held by or leased
by and covenants that it shall not sell or lease any interest in the Property to, a member of the
City Council, the Planning and Zoning Commission of the City, the Economic Development
Department, or any other City officer or employee as long as this agreement is in effect.
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 162,123 square foot facility of Warehouse and service
center with flexibility for manufacturing, office, office service center, or distribution. The
Company represents that the Improvements to the Property will cost approximately $4,500,000
and will be completed during the term of the abatement.
b. The location of the Improvements is more particularly described in a site plan approved
by the City of Schertz Planning and Zoning Commission.
c. The Company covenants and agrees that all Improvements shall at all times comply
with all applicable City building codes and ordinances, including, but no 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 Comal County with
information outlined in Chapter 22, V.A.T.S. Tax Code, as amended, as may be necessary for
tax abatement and for appraisal purposes.
f. The Company agrees to allow inspection of the Property by the City Manager, or a
designee. Such inspection shall be to determine if the terms and conditions of the Agreement
Tax Abatement Agreement
TC II Land, L.P.
Page 2 of6
are being met and for the purpose of assuring compliance with applicable City codes and
ordinances. Inspections will be made only after giving a minimum of twenty-four (24) hours
notice and will be conducted in such a manner as to not umeasonably 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.
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, 76.5 % of the entire assessed value of the
Capital Improvements located on the Property shall be exempt from ad valorem taxation for a
period of Six (6) 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 Six (6) year period (the "Term of the Agreement")
commencing on January 1,2007 (the "Commencement Date"), and expiring on December 31,
2012, the Six (6) 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 the Agreement, the
City will notify the Company in writing at the address stated in Section 8 of the Agreement,
and if the defaults specified with reasonable particularity in such notice are not cured within
Tax Abatement Agreement
TC II Land, L.P.
Page 3 of6
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 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:
(1) Recapture one hundred percent (100%) of the taxes abated in prior years and the
year in which such discontinuance occurs; and,
(2) Terminate this Agreement.
e. A total bill for any amounts due under Section 7c or Section 7d hereof will be sent to
the Company and the Company agrees to pay the total amount within sixty (60) days after
receipt. Penalty and interest will not begin to accrue until the Company has failed to pay any of
the amount placed back on the tax roll with sixty (60) days after receipt of the bill, unless
arrangements satisfactory to the City and the Comal 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:
David M. Adelman
TC II Land, L.P.
100 Sandau, 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
TC II Land, L.P.
Page 4 of6
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 ofthe 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 Comal
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
TC II Land, L.P.
Page 5 of6
This Agreement has been executed by the parties in multiple originals, each having full force and
effect on this the q\'V day of f.c.Q.....rv-"'l 2006.
For the Company:
~au9f---
By: ~o..",J M. A;A~ \~......
Title: \J.P. ~ G<-~c...Q fc.W~
County of Comal
This instrument was acknowledged before me on T e~r<JI'(i\.1 '1
OA\1ln m. i\nfA.,\NlA".! , of TC II Land, L.P., a 1~j!\) Lir-"'le\)ri \)IV\\NO\)lc\V)
behalf of said corporation.
,,"Ut~
(S ~~~ PHIUP A. KOlOVSON
{*( 'i*! MY COMMISSION EXPIRES
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My commission expires: I le-I LO~U
,Pu ic in and for the State of Texas
1/!rfJ 4 MWrI
(printed name of notary)
For the City:
~~
By: Don Taylor
Title: City Manager
ATTEST:
The State of Texas
County of Guadalupe
, 2006, by
corporation, on
This instrument was acknowledged before me on fY\,fA ~ I~OO(p , 2006, by Don Taylor,
~PtJ;...~~ ~~~~S~, Texas a municipality and body politic formed under the laws of the
i &..i~.').y fTex~bf 81 municipality.
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'. ) Comm. Exp. 08-12-2009 :;>- (J I I -/ "
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My commission expires: <fr\~ -,9,a;:=:) 'L (' ~ " (O\c! l 0 vIe
(printed name of notary)
Tax Abatement Agreement
TC II Land, L.P.
Page 6 of6
200
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Seale: 1. - 200'
BEARING SOURCE:
~sW"rR.".&~'ffr\rrB~S1NESS &
RECORDED IN VOLUME B. PAGES 121-1204-
IRON PIN ....T ALL PROPERT'{ CORNERS
OR AS SHOWN.
LEGEND:
a.s,L. _' eulLDING SETBACK UNE
pp ,. POWERPOL.E
o _ UNOERGROUND CABLE SIGN &: P.V,C. CLEAN OUT
~ - FIRE H'l'UAANT
. - WATER VALVE
400
.
(RECORD)
tV CURVE DATA
A= 16'41'12"
R = 600.00'
T = 87.99'
L = 174.74'
C = 174.13'
(RECORD)
@ CURVE DATA
A - 50'00'04"
R = 600.00'
T = 279.79'
L = 523.61'
C = 507.15'
(RECORD)
@ CURVE DATA
A - 85'50'58'"
R = 41 .00'
T = 38.13'
L = 61.43'
C = 55.85'
(RECORD)
@ CURVE DATA
A - 10'00'09"
R = 940.00'
T = 82.26'
L = 164.10'
C = 163.89'
GUADAlUPE COUNTY
R~lrmON~ k j:'A~FUF'NTS
VOLUME 719. PAGE 199 a.p.R.
VOLUME 735, PAGE 123:!1 O.P.R.
VOLUME 76J, PAGE 309 a.p.R.
VOLUME 1056. PAGE 501 a.p.R.
VOLUME 11:55, P,6.GE 972 a.p.R.
VOLUME 1278, PAGE 839 D.R.
VOLUME 1412. PAGE 270 a.p.R.
VOLUME 180. PAGE 1615 C.R.
VOl.U~E 417, PAGE 470 D.R.
COMAL COUNlY
RESTRICTION & EASEMENTS
VOLUME 417. PAGE 1 a.p.R.
VOLUME #4. PAGE -40 C.P,R.
VOLUME 497, PAGE 422 C.P.R.
VOLUME. 900, PAGE 500 C.P.R.
VOLUME 908, PAGE see a.p.R.
O(X;UMENT NO. 9706012214
OOCUMEtfT NO. 459700
DOCUMENT NO. 9706017096
DOCUMENT NO. ga0600390e
DOCUMENT' NO. 9906005929
DOCUMENT NO. 990602.1075 O.P.R.
DOCUMENT NO. 200006026880 O,P.R.
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COWMfSStON No.
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0..11' OS/25/05
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PUBLISHER'S AFFIDA VIT
THE STATE OF TEXAS,
County of Guadalupe
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Before me, the undersigned authority, on this date personally appeared
Chris Lykins, known to me, who, being by me duly sworn, on his oath
Deposes and says that he is the Managing Editor of The Seguin Gazette-
~...:!!!
THE qlrvCOUl'!CIL
OF TH~ .Cl'lY'OF. .
SCHERTZ,..' .;T~S'
APPRoVlma'A . ...1Ai
'AaAfEMENT~~"
TAX. ABA~I!!NT!
AGAeEMENT BY"ilie
CITY COUNCIL FOR
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OWNER IN TIllE IJl'l~\'
01' ~mA1Z. .
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IIlg the 21st dayo! June
2005
PASSED, APPROVED
AND ADOPTED this
the 19tH of JuIJ\.llOO6
=~ S$O~ry,
Enterprise a. 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:
'3 L' \ 'i
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And a newspaper copy of which is hereto attached.
a;2...
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Notary Public, Guadalupe County, Texas
,A.D., 2005
day of
~:./;~~,;~~~~7~~;.~~~N
t:l,' ~~ My Conwnlsslon ~i~~ n>> 25. 2006
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