Ordinance 13-T-09 CST Diamond LP-Final Executred Doc 4-16-13ORDINANCE NO. 13 -T -09
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
APPROVING AN ASSIGNMENT AND AN AMENDMENT TO A TAX
ABATEMENT AGREEMENT BY THE CITY COUNCIL FOR AND
WITH CST DIAMOND, L.P., A COMPANY OPERATING 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 has previously found that an application for
abatement of ad valorem taxes for the benefit of Valero Diamond, L.P. ( "Valero ")
met those Guidelines and Criteria, and the City and Valero entered into Tax
Abatement Agreement (the "Agreement "); and
WHEREAS, the property occupied by Valero under this Agreement is
described as a 7.2170 acre tract of land located at 6413 Tri County Parkway,
Lot 7, Block 1 of the Tri - County Business 8v Industrial Park in the City of
Schertz, Comal County, Texas (the "Property"); and
WHEREAS, the Property is owned by ProLogis Exchange 6413 Tri - County
Parkway LLC ( "ProLogis "), and Valero leases 130,000 square feet of the
Property from ProLogis (the "Leased Space "); and
WHEREAS, Valero desires to assign the Agreement to an affiliate, CST
Diamond, L.P. ( "CST "), and the lease of the Leased Space will be assigned to
CST; and
WHEREAS, the City has determined to authorize the assignment of the
Agreement from Valero to CST and to amend the Agreement to reflect such
assignment and to clarify certain provisions of the Agreement; and
WHEREAS, the terms of the assigned and amended Agreement will cause
no substantial long term adverse effect on the provision of the City's services or
tax base, and the 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 assignment of the abatement to CST is hereby
approved.
THAT, the City Manager is authorized to enter into an assigned and
amended agreement, shown as Exhibit 1, with CST.
THAT, the original Agreement with Valero relating to the Property and the
Leased Space was authorized pursuant to Ordinance No. 05 -T -21, which is
hereby replaced to the extent of any conflict with this Ordinance.
PASSED AND APPROVED on first reading this the 9th day of April, 2013.
PASSED, APPROVED AND ADOPTED on second reading this the 16th day
of April, 2013.
CITY OF SC HERTZ--TEXAS
Michael R. Carpenter, Mayor
ATTEST:
l
Bre ennis, City Secretary
(CITY SEAL)
Assigned and Amended Tax Abatement Agreement
CST Diamond, L.P.
1. Parties.
This Assigned and Amended Tax Abatement Agreement (this "Amendment ") is made and entered into
by and between the City of Schertz, Texas (hereinafter called the "City"), and CST Diamond, L.P. (the
"Company "), as assignee of Valero Diamond, L.P. ( "Valero').
2. Authorization and Findings.
a. This Amendment assigns, amends, and replaces a Tax Abatement Agreement dated
June 27, 2005 between the City and Valero and is entered into pursuant to:
(1) Section 312 of the Texas Property Tax Code.
(2) City of Schertz Ordinance, 12 -T -15 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, 13 -T -09, which approves this Amendment and
authorizes the execution thereof.
b. The City, by approval of this Amendment, hereby finds the terms of this Amendment
and the property subject to it, 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 use of the
property.
3. Property.
a. The property (hereinafter called the "Property ") previously occupied by Valero and now
occupied by the Company is described as a 7.2170 acre tract of land located at 6413 Tri County
Parkway, Lot 7, Block 1 of the Tri - County Business .& Industrial park, Comal County and is
owned by ProLogis Exchange 6413 Tri -County Parkway LLC ("ProLogis "), and
square feet of the Property is leased by ProLogis to the' Company, as assignee of Valero (the
"Leased Space ");
b. Abatements approved are based on the value of improvements set out on the real
property roll and machinery and equipment (but not inventory) roll of the Comal County
Appraisal District for the Property.
Tax Abatement Agreement
CST Diamond, L.P.
Page 1 0£7
C. 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 and the Leased Space by the
City Manager, or his designee. Such inspection shall be to determine if the terms and
conditions of this Amendment 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 unreasonably
interfere with the operation of the Property and the Leased Space.
g. The Company agrees annually to certify in writing its compliance with the terms of this
Amendment, which certification shall be filed by January 15th to the City of each year during
the Term of this Amendment and by January 15`h of the year following the Term of this
Amendment.
6. Terms for the Tax Abatement
a. Provided that the Company complies with its obligation under Section 5 of this
Amendment throughout the period of the abatement, 90% of the entire assessed value of the
Improvements located on the Property shall be exempt from ad valorem taxation for a period of
ten (10) years after January 1, 2006.
b. Provided that the Company complies with its obligation under Section 5 of this
Amendment throughout the period of the abatement, 90% of the entire assessed value of the
Personal Property for machinery and equipment (not inventory) located in the Leased Space
shall be exempt from ad valorem taxation for a period of ten (10) years after January 1, 2006.
C. The abatement shall be for a ten (10) year period (the "Term ") which commenced on
January 1, 2006 (the "Commencement Date "), and which expires on December 31, 2015, the
tenth (10`h) anniversary of the Commencement Date. Additionally, during the Term 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, the Leased Space, the Improvements or the
Personal Property.
d. The Company or its lessor, ProLogis, shall have the right to protest and contest any or
all appraisals or reassessments of the Property, the Leased Space, the Improvements, or the
Personal Property 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.
e. The Company acknowledges that the immediate beneficiary of the abatement on the
improvements ts— iesmr, Protugig,-butthe- Company- receives - such - benefit- indireetly-though
the tez ns of its lease of the Leased Space.
7. Default/Recapture.
Tax Abatement Agreement
CST Diamond, LP.
Page 3 of 7
If to CST Diamond L.P: CST Diamond, L.P.
Name: Rz q 'sy Eckk l
Attention:
\'
Address:
4�a^ rkx -'\c, t lo a- U
If to the City: City of Schertz, Texas
Attention: City Manager
1400 Schertz Parkway
Schertz, Texas 78154
9. Amendment Approved by City Council.
The City represents that this Amendment 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 Amendment may be assignable to an entity other than the Company only with prior City Council
approval as reflected in a duly adopted City Ordinance.
11. Original Agreement.
The City and the Company agree that this Amendment amends and replaces the original Agreement
described in Section 2a of this Amendment.
12. General Provisions.
This Amendment 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 Amendment, the City agrees to work with the Company toward establishing an
alternative agreement with terms similar to this Amendment and considering any bondholders' rights.
13. Severability.
in e event any section, subsection, paragrap , gubparagraph— sentence,hr reirris-hei
invalid, illegal, or unenforceable, the balance of this Amendment 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.
Tax Abatement Agreement
CST Diamond, L.P.
Page 5 of 7
For the City:
. ... .. . ... . 41.- .,,..... .
By: John C. Kessel
Title: City Manager
The State of Texas
County of Guadalupe
This instrument was acknowledged before me on 2013, by John C.
Kessel, City Manager of City of Schertz, a Texas a muhicipality and body politic formed under the
laws of the State of Texas, on behalf of said municipality.
(SEAL)
Pao y-Pub fic-in and for the State of Texas
My commission expires:
(printed name of notary)
N=YYPublic
Public
of Texas
St
jy CbWppVp 6p.10
Tax Abatement Agreement
CST Diamond, L.P.
Page 7 of 7