2005T08-Tax Abatement
ORDINANCE NO. ~5 - 7= t1 f
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
REPEALING TAX ABATEMENT 01-T-I0 AND TAX ABATEMENT
AGREEMENT FOR AND WITH TADCOjTRI-COUNTY, LTD., AND
ESTABLISH A NEW A TAX ABATEMENT AND A TAX ABATEMENT
AGREEMENT BY THE CITY COUNCIL FOR AND WITH VERDE REALTY
MASTER LIMITED PARTNERSHIP, 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 Verde Realty Master Limited Partnership 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 Verde Realty Master Limited Partnership,
described as Lot 5, Block 3 of the Tri-County Business and Industrial Park, Unit 1,
located in Guadalupe County, within a reinvestment zone approved by Texas
Department of Commerce on April 11, 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 Verde Realty Master
Limited Partnership, is approved. The approved rate is 57.2 percent for seven (7)
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 Verde Realty Master Limited Partnership.
Approved on first reading the 15th day of Februarv
,2005.
PASSED, APPROVED AND ADOPTED this the
cz. City DC &hortz, Tom
,2005.
ATTEST:
4i~~,~2rtz
(SEAL OF CITY)
.
"Exhibit 1"
. Tax Abatement Agreement
Verde Realty Master Limited Partnership
1. Parties.
This agreement is made and entered into by and between the City of Schertz, Texas (hereinafter called
the "City"), and Verde Realty Master Limited Partnership (hereinafter called the "Company").
2. Authorization and Findings.
a. The agreement is entered into pursuant to:
(I) 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
,";"ud to as the "Guidelines and Criteria").
(3) City of Schertz Ordinance, . which "l'l',vves this tax abatement
and agreement and authorizes the execution thereof.
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 plarmed use of
the property.
3. Property.
a. The property, (hereinafter called the "Property") is owned by Verde Realty Master
Limited Partnership described as Lot 5, Block 3, Tri-County Business Industrial Park Unit 1; as
recorded in Volume 6, Page 306 of the plat records for Guadalupe County and within a state
enterprise zone lis approved by the Texas Department of Commerce on 11 April ,1995 in
Guadalupe County;
b. Abatements approved will be based on the value of i,"1"v /ements set out on the real
property roll of the Guadalupe County Appraisal District for the Property. The 2005 base year
value established by the Guadalupe County Appraisal District is $700,000.
c. 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
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 Park, and within
GuadalupeCounty.
b. The company represents that the use of the Property is to be as follows: speculation
building for Manufacture and Distribution of materials.
c. The Company estimates it will make capital improvements (hereinafter referred to as
"Improvements") to the Property, which will cost approximately $6,292,800.
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 "'l'l',,,,Jmately 224,527 square feet in two buildings for Manufacture
and Distribution of materials. The Company represents that the Improvements to the Property
will cost "'1'l""Aimately $6,292,800 and will be completed during the term of the abatement.
b. The location of the Improvements is more particularly described in a site plan "'l'y,,,/ed
by the City of Schertz Planning and Zouing 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 marmer, 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 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
Tax Abatement Agreement
Page 2 of6
(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 J an~ 15th to the City of Schertz of each year
during the Term of the Abatement and by January IS of the year following the Tenn of the
Abatement.
6. Terms Cor the Tax Abatement
a. Provide that the Company complies with its obligation under Section 5 of the
A&"".~ent throughout the period of the abatement, 57.2% of the entire assessed value of the
Capital Improvements located on the Property shall be exempt from ad valorem taxation for a
period of Seven (7) 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 Seven (7) year period (the "Term of the A&""...ent")
commencing on January 1, 2005 (the "Commencement Date"), and expiring on December 31,
2011, the Seven (7) anniversary of the Commencement Date. Additionally, during the Term of
this A&",,~ent, 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 1',,,~,,,,; 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. DeCault/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 A&~~...ent, 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
Page 3 of6
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 St:llt 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:
Juan J. Gonzalez-Garza
Verde Realty Master Limited Partnership
201 East Main, 4th Floor
El Paso, Texas 79901
With copy to:
To the City:
If mailed or personally delivered:
City of Schertz
Attn: . Interim City Manager
P.O. Drawer I
Schertz, Texas 78154
Tax Abatement Agreement
Page 4 of6
9. Agreement Approved by City Council.
The City represents that this Agreement has been "yy&U led 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 outatanding bonds of the City exercise any of the rights so as to diminish. the effects or
benefits of this A;;o....",ent, the City agrees to work with the Company toward establishing an
alternative 8b' ....",ent with terms similar to this Ae,. ...._ent 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 A&""",ent 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 "o;uYl'el 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 A;;o....",ent 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
Page 5 of6
.
,
This Agreement has been executed by the parties in multiple originals, each having full force and
. effect on this the day of 2005.
For the Company:
By:
Title:
County of Guadalupe
This instrument was acknowledged before me on
of Verde Realty Master Limited
Cv'l'v,..;';on, on behalf ofsaid corporation.
. 2005, by
P8rtn:ership, a
(SEAL)
Notary Public in and for the State of Texas
My commission expires:
(printed name of notary)
ATTEST:
~~
By: Norma Althouse
Title: City Secretary
o Bierschwale
Ti : Interim City Manager
The State of Texas
County of Guadalupe
This instrument was acknowledged before me on ~ - ~ -n c; . 2005, by John
Bierschwale, Interim City Manager of City of Schertz, Texas a mUnicipality and body politic formed
u m~ ~'!'~ :QHl:!~ ::\taw Qn~18, on behalf of said municipality.
; ~,."y.p/J. : ~
: .~'" E. MATLOCK: . 1'""'"'..-)
( ~ .., Notary Public, State of Texa. : . l, f) eL.kA_ . ,~
'"1- "MyComml..ionExpi,nAug.12.2001 . Notary Public in and for the State of Texas
. "tOf'l~ I
! ,
~ - . . .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. . .. .. .. .....' i
My commission expires: 1) , \ d. -OS 9- ~. r\ rY>. ~ -\ \ ..., , ~\('
(printed name ofnotary) .
Tax Abatement Agreement
Page 6 of6
PUBLISHER'S AFFIDAVIT
~.;\/v~ /
O} tfl.~
THE STATE OF TEXAS,
(
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
Jamie Mobley, 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-
Enterprise a, a newspaper published in said county: that a copy of the within a--'
/ time(s) before the ~
AN 'ORDINANCE BY
THE CITY, COUNCIL
OF THE CITY OF
SCHERTZ, TEXAS RE-
PEAUNG TAX ABATE-
MENT ORDt~E
OH-l0 AND TAX
ABATEMENT AGREE-
MENT FOR /1M) WITH
. TADqorrRI-COUNTY
LTD. AND ESTAS-
,LISIiU A NEW 1)(
AGflIilEMENT ORDI-
NANCE . AND TAX
ABATEMENT AGREE-
MENT WITH veRDE
REALlY MASTER UM-
Il'I!DPARTNERSHlP.
Foregoing notice was published in said newspaper
Return day named therein, such publications being on the following dates:
fha-,rl.l.... ~ _ ;)mS- (OA-d. lln 1)5- T- () cf J
e copy of which is hereto attached.
Swom Qd subscri
fore me this
II./-
day of
--
PASSED. APPRQVED
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. A.D., 2005
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Notary Public, Guadalupe County, Texas