2004T 36-TAX ABATEMENTORDINANCE NO. O ZI - 7-7 J-4
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
REPEALING TAX ABATEMENT 98 -T -12 AND TAX ABATEMENT
AGREEMENT FOR AND WITH ALAMO PACKAGING INC., AND
ESTABLISHING A NEW TAX ABATEMENT ORDINANCE AND TAX
ABATEMENT BY THE CITY COUNCIL FOR AND WITH SAFEGUARD
SECURITY SERVICES, 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 SAFEGUARD SECURITY SERVICES 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 SAFEGUARD SECURITY SERVICES, Ltd,
described as Lot 1, Block 3 of the Tri- County Business and Industrial Park, and, is
within a reinvestment zone 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 Safeguard Security
Services, Ltd. is approved. The approved rate is 82.2 PERCENT for TWO 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 SAFEGUARD SECURITY SERVICES, Ltd.
Approved on first reading the day of 2004.
PASSED, APPROVED AND ADOPTED this the ay of , 2004.
Mayor, City of Schertz, Texas
ATTEST:
4 §ecrh , City of Schertz
(SEAL OF CITY)
RECEIVED
"Exhibit 1" NOV 0 5 7004
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 Safeguard Security Services, Ltd. (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, , 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 Safeguard Security
Services, Ltd. described as Block 3, Lot 1 of the Tri- County Business and Industrial Park,
Guadalupe County;
b. Abatements approved are based on value of improvements set out in the real property
roll of the Guadalupe County Appraisal District established in 1997 as $67,394.00. A general
description of the improvements to be made by the Company is set out in the basic abatement
application and attachments.
4. Company Representation and Estimates.
Tax Abatement Agreement
Safeguard Security Services, Ltd.
Page 1 of 6
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 Park, and within Guadalupe
County.
b. The Company represents that the use of the Property is to be as follows: for
Manufacture and Distribution of security products.
C. The Company estimates capital improvements (hereinafter referred to as
"Improvements ") to the Property, were approximately 1,300,000 in 1999.
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. Purchase of approximately 63,000 square foot facility for Manufacture and Distribution
of materials. The Company represents that the previous improvements to the Property cost
approximately 1,300,000 in 1999 and were completed during said year.
b. The location of the Improvements is more particularly described in a site plan approved
by the City of Schertz Planning and Zoning Commission in 1999.
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 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.
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
notice and will be conducted in such a manner as to not unreasonably interfere with the
operation of the Property.
Tax Abatement Agreement
Safeguard Security Services, Ltd.
Page 2 of 6
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, 82.22 % of the entire assessed value of the
Capital Improvements located on the Property shall be exempt from ad valorem taxation for a
period of Two (2) 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 Two (2) year period (the "Term of the Agreement ")
commencing on January 1, 2005 (the "Commencement Date "), and expiring on December 31,
2006, the second (2nd) 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
sixty (60) days from the date of such notice, then this Agreement may be terminated upon
written notice to the Company.
Tax Abatement Agreement
Safeguard Security Services, Ltd.
Page 3 of 6
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 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:
Rick Snelling
Safeguard Security Services, Ltd.
4728 Goldfield, Bldg 8
San Antonio, Texas 78218
With copy to:
To the City:
If mailed or personally delivered:
City of Schertz
Attn: City Manager
P.O. Drawer I
Schertz, Texas 78154
Tax Abatement Agreement
Safeguard Security Services, Ltd.
Page 4 of 6
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 parries 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
Safeguard Security Services, Ltd.
Page 5 of 6
This Agreement has been executed by the rties in multiple originals, each having full force and
effect on this the /64— day of'CVhii3k2 2004.
For the Company:
< - -F
71r. k:6 WM4 JKC6/90-fY
By:
Title: L
County of Guadalupe
instrument was acknowledged before me on 10 2004 by
of Safeguard Security Services, Ltd., a C;IEW % t 11141VX CEIZ
corporation.
=� ' Dayle Evans
:*Notary Public, State of Texas t
My Commission Expires F'�-
JULY 01, 2005
Notary Public ih and for the State of Texas
My commission expires: —�
(printed name of notary)
For the
ATTEST:
by Althouse
Title: City Secretary
The State of Texas
County of Guadalupe
sc w- ale
City Manager
This instrument was acknowledged before me on `{moo c 200, by John
Bierschwale, Interim City Manager of City of Schertz, Texas a municipality and body politic formed
—li s s, on behalf of said municipality.
E. MATLOCK
' Notary Public, State otTexas
My Commission Expires Aug. 12, 2005
rF � Notary Public in and for the State of Texas
:r
My commission expires:
(printed name of notary)
Tax Abatement Agreement
Safeguard Security Services, Ltd.
Page 6 of 6
PUBLISHER'S AFFIDAVIT
THE STATE OF TEXAS,
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
r7 �r„�, , 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 notice was
published in said newspaper time(s) before the return day named therein, such
publications being on the following dates:
and a newspaper copy of which is hereto attached.
Sworn to and subscribed before me this l® day of
, A.D., 2004.
N� Y R,aft, slax of Tams
Cem;nfE," Feb 25. 2006
ORDINANCE'/
NO. 04T�6 1
AN ORDINANCE BY
THE CITY COUNCIL
OF THE CITY OF
SCHERTZ. TEXAS.
REPEALING TAX
ABATEMENT 98 -T -12
AND TAX ABATE-
MENT AGREEMENT
FOR AND WITH ALA -
MO PACKAGING INC.,
AND ESTABLISHING A
NEW TAX ABATE-
MENT ORDINANCE
AND TAX ABATE-
MENT BY THE CITY
COUNCIL FOR AND
WITH SAFEGUARD
SECURITY SERV-
ICES, A PROPERTY
OWNER IN THE CITY
OF SCHERTZ.
PASSED, APPROVED
AND ADOPTED the
2nd day of November
2004
Deputy City Secretary,
Mary Ybarra
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
TAMMY rrnl, , 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 notice was
published in said newspaper time(s) before the return day named therein, such
publications being on the following dates:
N
a7
and a newspaper copy of which is hereto attached.
Sworn to and subscribed before me this day of
A.D., 2004.
MA86!>II U L WRKSON
• • NoWy Pak, We of Texas
my cortnnkaka Exfes Feb 25. 2006
AN ORDINANCE,,
AN ORDINANCE Or
THE CITY COUNCIL
OF THE CITY OF
SCHERTZ, TEXAS,
REPEALING TAX
ABATEMENT 98 -T -12
AND TAX ABATE-
MENT AGREEMENT
FOR AND WITH ALA -
MO PACKAGING INC.,
AND ESTABLISHING A
NEW TAX ABATE-
MENT ORDINANCE
AND TAX ABATE-
MENT BY THE CITY
COUNCIL FOR AND
WITH SAGEGUARD
SECURITY SEFjX-
ICES, A PROPERTY
OWNER IN THE CITY
OF SCHERTZ.
Approved on the first
reading the 19th day of
October, 2004.
City Secretary,
Norma Althouse
Notary Public, Guadalupe County, Texas