1994T27- RAMANDA INN LTD.
ORDINANCE NO. f.tj-r-;?'I
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, APPROVING A TAX ABATEMENT
AND A TAX ABATEMENT AGREEMENT FOR AND WITH
RAMADA INN LTD.
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 Ramada Inn Ltd.
application for abatement of ad valorem taxes, meets those
Guidelines and Criteria, as amended, and further finds the
terms of the tax abatement agreement listed at Exhibit 1 are
acceptable; and
WHEREAS, the property owned by Ramada Inn Ltd. described
as Lot 8, Block 2, Unit 1, Tri-County Business Park, recorded
in Volume 5, page 195A, in Guadalupe County, Texas, on 31
March, 1994, a 2 acre tract, is within a Reinvestment Zone as
defined by the Texas Property Tax Code and as established by
the City Council; and
WHEREAS, a public hearing was held on 4 October, 1994, to
hear public comment; 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,
Ramada Inn
period of
and,
the request for abatement of ad valorem
Ltd. is approved. The approved rate is
9 years on capital improvements to the
taxes by
90% for a
property;
THAT, the City Manager is authorized to enter into an
agreement as outlined in Exhibit 1.
Approved on first reading the 4th day of October, 1994.
PAS~~APPROVED AND
:.u>>-, , 1994.
ADOm~;i ;h:~,
~, :Gkd&C~,---
Mayor, City of Schertz, Texas
~day
of
ATTEST:
Ji ,'7JM--fr~ ~<J-U
fYt-H Ci ty Secretary, City of Schertz
(SEAL OF CITY)
Exhibit 1
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
Ramada Inn Ltd., hereinafter called the OWners.
2. Authorization and Findings
a. This agreement is entered into pursuant to:
(1). Section 312 of the Texas Property Tax Code.
(2). City
establishes
Criteria for
of
the
Tax
Schertz
City of
Abatement
Ordinance 92-T-2, which
Schertz Guidelines and
and Reinvestment Zones.
(3). City
establishing
the property
of Schertz Ordinance Cft{. T-) C ,
a Reinvestment Zone which encompasses
described below.
(4). City of Schertz Ordinance q'l-T-j.7, which
approves this tax abatement and agreement.
b. The City of Schertz, 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) the planned use of the
constitute a hazard to public
morals.
property will
safety, health,
not
or
3. Property
a. The property is described as follows: Lot 8, Block
2, Unit 1, a 2 acre tract, out of the Tri-County Business
Park, recorded in Volume 5, page 195A, in Guadalupe
County, Texas, on 31 March, 1994.
b. Abatements approved will be based on the rolls of the
Guadalupe County Appraisal District for the Property.
The 1994 base year value is $304,920.00
-1-
4. Owners' Representations
a. The Owners represent they are the owners in fee
simple of the Property.
b. The Owners represent they are the owners of Ramada
Inn Limited.
c. The Owners represent the company will make capital
improvements to the property in excess of $1,300,000.00.
d. The Owners
in excess of
Schertz, Texas.
represent the company will have a payroll
$220,000.00 in facilities located in
e. The Owners represent the company will generate in
excess of $8,500.00 annually to the City of Schertz in
the form of direct sales taxes, and in excess of $59,000
in Hotel/Motel taxes, defined as other revenue in the
Guidelines and Criteria.
5. Terms of the Agreement
a. The Owners agree to maintain currency of ad valorem
tax payments to all local taxing entities.
b. The Owners agree to maintain the property in
repair and condition during the abatement period,
maintain compliance with landscaping requirements
approved by the Planning and Zoning Commission in
Site Plan.
good
and
as
the
c. The Owners agree to furnish the Chief Tax Appraiser
of Guadalupe County with such information as may be
necessary for appraisal purposes.
d. The Owners agree 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. 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 facility.
e. The Owners assure the City that capital improvements
to the property will be in excess of $1,300,000.00 for
tax abatement purposes. Such capital improvements to be
completed in calendar year 1995.
-2-
f. The Owners assure the City that the company annual
payroll for employees in the Schertz facility will be in
excess of $220,000 for tax abatement purposes.
g. The Owners assure the City of Schertz will receive
annual revenues in the form of Sales Tax in excess of
$8,500 for tax abatement purposes, and annual revenues in
excess of $59,000 in the form of Hotel/Motel taxes.
h. Other Taxing Entities. Other taxing entities are
encouraged to provide abatements as listed below. Should
other taxing entities elect to adopt this agreement,
items 6a(2) and (3) below are optional.
6. Terms for the Tax Abatement.
a. If the Owners comply with the terms of paragraph
this agreement for the period of the abatement,
Owners shall be entitled to:
5 of
the
(1) 90% abatement of ad valorem taxes against
capital improvements made on the property.
the
(2) Of the 90%, 8.8% of the abatement of ad valorem
taxes is based on a payroll of $220,000.00 from a
Schertz facility.
(3) Of the 90%, 20% of the abatement of ad valorem
taxes is based on Sales Tax Revenues to the City of
$8,500.00, and $59,000 in Hotel/Motel tax revenues.
(4) Total Abatement Authorized is 90%, and will be
assessed against the capital improvements on the
property.
b. The period of the abatement will be nine (9) years.
The period shall begin on 1 January, 1995, and continue
until 31 December, 2003.
7. Default and Recapture
a. If the Owners refuse or neglect to comply with any of
the terms of this agreement or, if any representation
made by the Owners in the Application for Tax Abatement
is false or misleading in any material respect this
agreement may be terminated by the city.
b. In the event the Owners allow ad valorem taxes on the
Property to become delinquent and fail to timely and
properly follow the legal procedures for their protest
and/or contest this agreement may be terminated by the
city.
-3-
c. In the event the City determines the Owners to be in
default this agreement, the City will notify the Owners
in writing at the address stated in Section 8 of this
agreement, and if such is not cured within sixty days
from the date of such notice (the Cure period), then this
agreement may be terminated upon written notice to the
Owners. If this agreement is terminated by the city,
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. In the event the Owners decide to relocate Ramada Inn
Ltd., outside the City limits of Schertz, Texas, during
the abatement period, the City shall by an Ordinance
adopted by City Council have the right to recapture 100%
of taxes abated in prior years and the year in which
relocation occurs.
e.. A total bill will be sent to the Owners and the
Owners agree to pay the total amount within sixty days
after receipt. Penalty and Interest will not begin to
accrue until the Owners have 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 Owner 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. Unless
otherwise provided in this agreement, all notices shall be
delivered to the following address:
To the Owners:
-If mailed or personally delivered:
Prapip Upadhyay
17401 IH-35
Schertz, Texas 78154
With required copy to:
(Attorney)
-4-
To the City:
-If mailed or personally delivered
City of Schertz
Attn: City Manager
P.O. Drawer I
Schertz, Texas 78154
9. Condition
This agreement is conditioned entirely upon the approval of
the City of Schertz City Council by the affirmative vote of a
majority of members at a regularly scheduled meeting.
10. Assignment
This agreement may
Council approval
Ordinance.
be assignable to a new owner only with City
as reflected in a duly adopted City
11. Date
This agreement
originals, each
day of October,
has been executed
having full force
1994.
by the parties in multiple
and effect on this the 17th
OWNERS:
For Ramada Inn Ltd
Prapip Upadhyay
~~~
State of Texas (
(
County of GOIT,..{()-L..-" 1'<:'
This instrument was acknowledged before me on ()ci~hp/c /'7
1994, by Ramada Inn Ltd.
,
?
e
JUNE G. KRAUSE
NotIryPllbllc.Stalt101ill~as
My Comm/>>iOll hplns. 11-3ll-11
and for the
-5-
CITY OF SCHERTZ
/~\'
K. \\~~
Kerry . ~att - ~
City Manager
ATTEST:
, t:)~~~/Jj
r June Krause ; {kUf' .le~.I-
City Secretary l ~
Seal of the City
-6-
PUBLISHER'S AFFIDAVIT
I
County of Guadalupe
If''' 1 r;;~j.< ~~tl
/IJ,l,!tft- ,1 <I'
J/, qtj~ ,
V,). ",/ i (J /
;J 0 t? )i/~
I~- 0'1f/ ' ;il) J P /
fI" t', ~{""
J 0 "-fY-1'11
I~/~
THE STATE OF TEXAS,
Before me, the undersigned authority, on this date personally appeared
1(& KI/~s 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
~ 'CA was published in said newspaper 0 -' times before the return day named therein, such
publications being on th
1I0wing dates:
."
t/'
.
~)l1
f j7tttrJ/2:;~~, /9~
OADINANCEt<<).94-T-27 8flDtNANCE NO, 94-T-27
liy THE CITY COUNCIL By THE CITY COUNCIL
OF THE CITY OF eF THE CITY OF
~CHERTZ, TEXAS, Ap. ~~HERTZ, TEXAS, AP.
~ROVING A TAX ABATE. eROVING A TAX ABATE.
""NT AGR MENT FOR MENT AGREEMENT FOR
~ND WITH MADA INN AND WITH RAMADA INN
L TO, P and ~tD. Passed, approved and
edopted of adopted the 18th day of
El(:tober, October, 1994. '
(\) L'/onna An NOnna Althousa
*~~. '-"--
day of 'uO 1~~Y A.D., 19!2i.
and a newspaper copy of which is hereto attached.
Sworn to and subscribed before me, this
/0
'I."P,Y.PUe'.
~O/'''- "~,\<",\
.r, ~"',",',- \) CHERYL,SOSA
\ l;1~ ,'. ~PubllC,StaEofTexas
~~, ..<'" MtCoolrT1iSslon Expires Feb. 3, 1998
l\~~;;;'__'"
(I~~
Notary Public, Guadalupe County, Texas