2006T31 - TAX PHASE INORDINANCE NO. 06 -T -31
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX PHASE -IN AND TAX PHASE -IN
AGREEMENT BY THE CITY COUNCIL FOR AND WITH
CLOSNER EQUIPMENT CO. INC., 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 tax phase -in of ad
valorem taxes by Closner Equipment Co. Inc. meets those Guidelines and Criteria,
and further finds the terms of the Tax Phase -In Agreement listed at Exhibit 1 are
acceptable; and
WHEREAS, the property owned by Closner Equipment Co. Inc., described
as 7.981± acre tract Block 1, Lot of the Closner -FM 2252 Subdivision, located on
FM 2252 just north of FM 482, in the City of Schertz, Comal County, Texas; and,
WHEREAS, the terms of the Tax Phase -In 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 tax phase -in of ad valorem taxes by Closner
Equipment Co. Inc., is approved. The approved rate is 90% for nine (9) years,
and 35% for one (1) year. Taxes shall be abated on capital improvements only.
THAT, the City Manager is authorized to enter into an agreement, shown as
Exhibit 1, with Closner Equipment Co. Inc.
Approved on first reading the y day of -JuAJ6 , 2006.
PASSED, APPROVED AND ADOPTED this the tft day of JAY ,
2006.
ATTEST:
8fidy T ar, City Secretary
"Exhibit 1"
Tax Phase -In Agreement
Closner Equipment Co. Inc.
1. Parties.
This agreement is made and entered into by and between the City of Schertz, Texas (hereinafter
called the "City "), and Closner Equipment Co. Inc. (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, 06 -T -09 that establishes the City of Schertz
Guidelines and Criteria for Tax Phase -In and Reinvestment Zones (hereinafter
referred to as the "Guidelines and Criteria ").
(3) City of Schertz Ordinance, , which approves this Tax Phase -In 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 Closner Equipment Co.
Inc. described as 7.981± acre tract Block 1, Lot 1 of the Closner -FM 2252 Subdivision,
located on FM 2252 just north of FM 482, Schertz, Comal County, Texas;
b. Phase -ins 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 2006 base
year value established by the Comal County Appraisal District is 100,000.
C. The Project has recently been platted, so a tax account on the Property has been
established.
Tax Phase -In Agreement
Closner Equipment Company, Inc.
Page 1 of 7
d. A general description of the improvements to be made by the Company is set out in the
basic phase -in application and attachments.
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, Closner FM 2252 Subdivision, and
within Comal County.
b. The company represents that the use of the Property is to be as follows: speculation
building for Office /Warehouse /Service facility.
C. The Company estimates it will make capital improvements (hereinafter referred to as
"Improvements ") to the Property, which will cost approximately 750,000.
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 15,000 square foot facility of Office/Warehouse /Service
facility. The Company represents that the Improvements to the Property will cost
approximately 750,000 and will be completed during the term of the phase -in.
b. The location of the Improvements is more particularly described in a site plan pending
approval 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 phase -in and for appraisal purposes.
Tax Phase -In Agreement
Closner Equipment Company, Inc.
Page 2 of 7
f. The Company agrees to allow inspection of the Property by the Interim 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.
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 Phase -In and by January 15th of the year following the
Term of the Phase -In.
6. Terms for the Tax Phase -In
a. Provide that the Company complies with its obligation under Section 5 of the
Agreement throughout the period of the phase -in, 90% for nine (9) years, and 35% for
one (1) year 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 phase -in of taxes shall be granted as to personal property of the Company installed
or maintained with the Property.
C. The phase -in shall be for a ten (10) year period (the "Term of the Agreement ")
commencing on January 1, 2007 (the "Commencement Date "), and expiring on
December 31, 2016, the ten (10) year 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 Phase -In.
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 Phase -In 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 Phase -In (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.
Tax Phase -In Agreement
Closner Equipment Company, Inc.
Page 3 of 7
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.
If the city terminates this Agreement, taxes without phase -in will be due for the year in
which termination occurred and shall accrue without phase -in 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 Phase -in 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 pri or years and the
year in which such discontinuance occurs; and,
(2) Terminate this Agreement.
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:
G. Bennett Closner
Closner Equipment Co. Inc.
1415 W. Poplar St.
San Antonio, Texas 78207
With copy to:
Tax Phase -In Agreement
Closner Equipment Company, Inc.
Page 4 of 7
To the City:
If mailed or personally delivered:
City of Schertz
Attn: City Manager
1400 Schertz Parkway
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 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 Phase -In in effect, and such other matters reasonably requested by the party(ies) to receive
the certificate.
Tax Phase -In Agreement
Closner Equipment Company, Inc.
Page 5 of 7
14. Applicable Law.
This Agreement shall be construed under laws of the State of Texas and is perfonnable 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.
This Agreement has been executed by the parties m ltip'le originals, each having full force
and effect on this the day of 2006.
For the Company:
ter-
By:
Title: _�{��. to
County of Comal
This instrument was acknowledged before me on 4) P ,�,,: ; �� 2006, by
C� � of Closner Equipment Co. Inc a -T ,e xrA-
e
* t Notary Public y
5 State of Texas
(
4 Comm. EXP. 08 -12 -2009 y
y Notary Public in and for the State of Texas
:G�G�'�GSGrG�G�SG�G�CSCrLti �:G�'fv'cG�Y.�GS'�GiG�G�G
My commission expires: - I a -a Do s--, 6Y1 rak \ o c_ f:�
(printed naive of notary)
For the City:
By: Don Taylor
Title: City Manager
ATTEST:
QAW
- � X-6L �-ae- Judy T ar
,i e: City ecretary
Tax Phase -In Agreement
Closner Equipment Company, Inc.
Page 6 of 7
The State of Texas
County of Guadalupe
This instrument was acknowledged before me on S , o � P ,,,,,b-p k 11 , 2006, by Don Taylor,
City Manager of City of Schertz, Texas a municipality and body politic formed under the laws of the
�nicipality.
ERIN MATLOC y
�* Notary Public y n_
5 State of Texas ' t-cr fN-\ a-a
Comm?. FNp.08 -12 -2M y Notary Public in and for the State of Texas
�GiG�GSG�GY.�iG4:�;�E,r�•_` ":.: %`G�cG�e��G�G�GSG�G6
My commission expires: - I o1
(printed name of notary)
Tax Phase -In Agreement
Closner Equipment Company, Inc.
Page 7 of 7
Attest: Judy Tokar
Before me, the undersigned authority, on this day personally appeared Helen I. Lu City Secretary
by me duly sworn, says on oath that she is Publisher of the The Herald, a newspapel 7/24
circulation in the City of San Antonio, in the State and County aforesaid, and that the ORDINANCE
NO. 06 -T -31 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
APPROVING A TAX PHASE -IN AND TAX PHASE -IN AGREEMENT BY THE CITY COUNCIL
FOR AND WITH CLOSNER EQUIPMENT CO., INC., A PROPERTY OWNER IN THE CITY OF
SCHERTZ. App here to attached has been published in every issue of said newspaper on the
following days, to wit: 07/27/2006.
Sworn to and subscribed before me this 27th day of of July, 2006.
:STELLA A. OROZCO
NOTARY PUBLIC
* swe OF TEXAS
s� My COMM. INP,03- 994009
rVOLK, MU 1 RAC
ORDINANCE NO. 06 -T -31
Affidavit of Publisher
AN ORDINANCE BY THE
CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS AP-
PROVING A TAX PHASE -IN
STATE OF TEXAS
AND TAX PHASE -IN AGREE-
MENT BY THE CITY COUNCIL
FOR AND WITH CLOSNER
COUNTY OF BEXAR
EQUIPMENT CO., INC., A
PROPERTY OWNER IN THE
CITY OF SCHERTZ.
CITY OF SCHERTZ
Approved on first reading
this the 20th day of June, 2006
PASSED, APPROVED,
AND ADOPTED on this
_the
18th day of July 2006.
/s /HAL BALDWIN
Mayor
Attest: Judy Tokar
Before me, the undersigned authority, on this day personally appeared Helen I. Lu City Secretary
by me duly sworn, says on oath that she is Publisher of the The Herald, a newspapel 7/24
circulation in the City of San Antonio, in the State and County aforesaid, and that the ORDINANCE
NO. 06 -T -31 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
APPROVING A TAX PHASE -IN AND TAX PHASE -IN AGREEMENT BY THE CITY COUNCIL
FOR AND WITH CLOSNER EQUIPMENT CO., INC., A PROPERTY OWNER IN THE CITY OF
SCHERTZ. App here to attached has been published in every issue of said newspaper on the
following days, to wit: 07/27/2006.
Sworn to and subscribed before me this 27th day of of July, 2006.
:STELLA A. OROZCO
NOTARY PUBLIC
* swe OF TEXAS
s� My COMM. INP,03- 994009