1999T09-TAX ABATEMENTNo.
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS, REPEALING
ORDINANCE 98-T-35, AND APPROVING
A TAX ABATEMENT AND A TAX
ABATEMENT AGREEMENT FOR AND
WITH MARK F. KEATTS AND LORI L.
I~F. ATTS LIVING TRUST, A PROPERq%'
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 the Mark F. Keatts and Lori L. Keatts Living 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 the Mark F. Keatts and Lot/L. Keatts
Living Trust, 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 8CHERTZ, TEXAS:
THAT, the request for abatement of ad valorem taxes by the Mark F.
Keatts and Lori L. Keatts Living Trust is approved. The approved rote is
33.42°/$ for five (5) years. Taxes shall be abated on capital imProvements only.
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 the Mark F. Keatts and Lori L. Keatts
Living Trust, (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 ~-7'-~}, 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").
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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 1G-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 capital
("Improvements") to the Property, which will cost
$633,465.72.
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.
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 permanent
employees in the City at the Property will be approximately $275,000
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 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.
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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 expiring on the 31 December, 2004 {Sth) 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.
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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 8chertz, 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:
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To the City:
If mailed or personally delivered:
City of 8chertz
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.
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 ~tl~crJl~arties /f in rn~ul/fiple
· I 'J , /-,
origin, als, each having full force and effect on this the d~/[ dh~ of ~{(' )[:( [
199~. ' '~ ....
For The Comp.any/
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C~ Yc>~
ATTEST:
CITY OF SCHERTZ
By: Ker~ocJR. Sweatt
City Manager
Norma Althouse
City Secretary
Seal of the City
State of Texas:
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rhi. ~n~r~men~,wa. ~ow*ed~ ~ore m~ o~ ~_, ~ )? ~9~, ~y
[ ~'X~/[(_~ ~4")~~ ~f~f the M~k F. Keatts an~~ ~h L~ Keatts Living
Trust, ~-.~ cor~rafion, - on behalf of s~d co~orafion.
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No~ ~blic in ~d for the
~... State of Texas ',
~ ~ ' , ,
~ .~;?~2~ ~ ( nt d Name of Nom~)
~'~', ,~.~ ~ ~mm~n ~ Pri e
My commission expires:~5~;"4 ~-'~
-~-
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on /Z~Z//~ ~-~:~, 199ff, 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)A_/
My commission expires: ../_J/~9
,{
THE STATE OF TEXAS,
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
PUBLISHER'S AFFIDAVIT , '
L.A. REYNOLDS krlowr]
to me, who, being by me duly sworn, on his oath deposes and says that he is the Advertfsing 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'
such publTcat'Jons being on the followfng dates:
times before the return day named therein,
APRIL 29, 1999
and a newspaper copy of which is hereto attached.
AN ORDINANCE
BY THE CITY COUNCIL
OF THE CITY OF
SCHERTZ, TEXAS, RE-
PEALING ORDINANCE 98-
T-35, AND APPROVING A
TAX ABATEMENT AND A
TAX ABATEMENT
AGREEMENT FOR AND
WITH MARK F. KEATS
AND LORI L. KEATS LIV-
ING TRUST, A PROPER-
TY OWNER IN THE CITY
OF SCHERTZ.
Approved on first reading the
6th day of April, 1999.
Norma Althouse,
City Secretary.
Sworn to and subscribed before me, this 3 o t h
Notary Public, Guadaiupe County, Texas
THE' STATE OF TF_NAS,
PUBLISHER'S AFFIDAVIT , )
L.A. REYNOLDS k.,-IOWR
County of GuadaIupe
Before me, the undersigned author/, on this date personally appeared
to me, who, being by me duly sworn, on his oath deposes and says that he is the Advertising Director of
'Fne Seguin Gazett~Enterprise, a newspaper published in sa.id county; that a copy of the within and fore-
going AD
was published in said newspaper' 2
times before the return day named therein,
$
such publicadcr~s being on the following dates:
APRIL 23, 1999
APRIL 29, 1999
and a newspaper copy of which is hereto attached.
Sworn to and subscribed before me, this 3 0 t h
ORDINANCE NO. 99-T-9
BY THE CITy COUNCIL
OF THE CITY OF
SCHERTZ, TEXAS, RE-
PEALING ORDINANCE 98-
T-35, AND APPROVING A
TAX ABATEMENT AND A
TAX ABATEMENT
AGREEMENT FOR AND
WITH MARK F. KEATS
AND LORI L. KEATS LIV-
ING TRUST, A PROPER-
. TY OWNER IN THE CITY
OF SCHERTZ.
Passed, Approved and
Adopted the 20th day of
April, 1999.
Norma A thouse,
Ci~.ty Secretary.
99'
Notary Public, Guadalupe C~unty, Texas
THAT, City of Schertz Ordinance 98-T-35 is repealed in its entirety.
THAT, the City Manager is authorized to enter into an agreement, shown
as Exhibit 1, with the Mark F. Keatts and Ix)ri L. Keatts Living TruoL
Approved on first reading the 6th of April 1999.
PASSED, APPROVED AND ADOPTE~'/this tl~r#day of
ayor, Ctty of Schertz, Texas
ATrEST:
City Secretary, City of Schertz
(SEAL OF CITY)