2001T08-TAX ABATEMENTORDINANCE NO. ~1-7'-- ~(7
AN ORDINANCE
THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT AND A
TAX ABATEMENT AGREEMENT BY THE
CITY COUNCIL FOR AND WITH THE
TECHNOS CORPORATION, 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 the Technos Corporation 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, 2.02 acres, owned by Technos Corporation is
described as Lot 5, Block 1, Vestal Subdivison (2.02 acres), located in
Guadalupe County.
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 Technos
Corporation is approved. The approved rate is 60.04% for five (5) 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 Technos Corporation.
Approved on first reading the 6th day of March 2001.
PASSED, APPROVED AND ADOPTED this the~~ay of
Mayor, City ~f' Schertz, Texas
,2001.
ATTEST:
City 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 Technos Corporation (hereinafter
called the "Company").
2. Authorization and Findings.
a. This Agreement is entered into pursuant to:
(1) Section 312 of the Texas Property Tax Code.
(2) City of Schertz Ordinance, 99-T-16 which 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 01-T-7, establishing a reinvestment
zone, which encompasses the property, described below.
(4) City of Schertz Ordinance 01-T-8, which approves this
abatement and Agreement and authorizes the execution thereof.
tax
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 City
services or tax base; and,
(2) no hazard to public safety, health, or morals
the planned use of the property.
as the result of
3. Property
The property, (hereinafter called the Property) 2.02 acres, owned by
Technos Corporation, described as Lot 5, Block 1, Unit 4, Vestal Subdivision;
recorded 20 September 2000 in Volume 282-283 in the Comal County Deeds
and Records Office.
b. Abatements approved will be based on the value of improvements set
out on the real property roll of the Guadalupe County Appraisal District for the
Property. The 1999 base year value established by the Guadalupe County
Appraisal District is $30,000.00
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c. The tax account of the Property is not yet established, as the Property
has recently been platted.
d. A general description of the improvements to be made by the
Company is set out in the basic abatement application.
4. Company Representations 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, and within Comal
County.
b. The Company represents that the use of the Property is to be as
follows' Manufacturing of metal products.
c. The Company estimates it will make capital improvements
("Improvements") to the Property, which will cost approximately $685,000.
d. The Company represents that a minimum of 16 new jobs will be
created in the City of 8chertz in connection with the operations on the
Property, and will have an annual payroll in the approximate amount of
$548,000 in facilities located in Schertz, Texas.
e. 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 of the City, 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 (hereinafter referred to as the "Improvements")
and fulfilling the following covenants:
a. Construction of an approximately 10,500-sq. ft building, including
office spaces. The Company represents that the Improvement to the Property
will cost approximately $685,000.00 and will be completed during the term of
the abatement.
b. The Company covenants and agrees that a minimum of sixteen (16)
new permanent positions will be created in the City of Schertz with the
operations of the Company on the Property within one year of the
Commencement Date (defined below) of the tax abatement. Any permanent
jobs created after the date of execution of this Agreement shall be considered a
new permanent position for purposes of this Agreement.
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c. The location of the Improvements is more particularly described in a
site plan approved by the City of $chertz Planning and Zoning Commission.
d. The Company covenants and agrees that all Improvements shall at
all times comply with all applicable City building codes and ordinances,
including, but not 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.
e. 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.
f. 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.
g. 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 24 hours notice and will be conducted in
such a manner as to not unreasonably interfere with the operation of the
Property.
h. The Company agrees that the Company payroll for permanent
employees in the City at the Property will be approximately $548,000.00
throughout the term of the tax abatement,
i. The Company agrees annually to certify in writing its compliance with
the terms of this Agreement, which certification shall be filed by January 15 to
the City of Schertz of each year during the Term of the Abatement and by
danuary 15 of the year following the Term of the Abatement.
6. Terms for the Tax Abatement.
a. Provided that the Company complies with its obligations under
Section 5 of this Agreement throughout the period of the abatement, 90% of the
entire assessed value of the Capital Improvements located on the Property shall
be exempt from ad valorem taxation for a period of three (3) years and 60.2%
for the fourth year.
b. No abatement of taxes shall be granted as to personal property of the
Company installed or maintained within the Property.
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c. The abatement shall be for a four period (the "Term of this
Agreement") commencing on danuary 1, 2002 (the "Commencement Date"), and
expiring on the 31 December, 2005) fourth 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 and 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 ^greementl is false or misleading in any
material respect and such refusal or default is not cured within sixty {601 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 this
Agreement, the City will notify the Company in writing at the address stated in
Section 8 of this Agreement, and if the defaults specified with reasonable
particularity in such notice are not cured within sixty 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 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 fight to (i) recapture 100% of the taxes abated in prior
years and the year in which such discontinuance occurs; and (ii) terminate
this Agreement.
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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 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 within sixty days after receipt of the bill, unless arrangements
satisfactory to the City and the Comal County Tax Assessor/Collector have
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 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 delivered-
T~ch no ~ Corpora, ~ci
'lo~b Fm 3ooCl
With copy to:
To the City:
If mailed or personally delivered'
City of Schertz
Attn: City Manager
P.O. Drawer I
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.
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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 their rights so as to diminish the effects or
benefits of this ^greement, 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 may 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 Comal County and 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 in multiple
originals, each having full force and effect on this the gJ"/day of ZV~lq ;Zoo !
2001.
Seal of the City
State of Texas:
This instrument was acknowledged before me on d---~tI ~~a ,2001, by
Phillip Neal, of Technos Corporation Inc., a Texas corporation, on behalf of
said corporation.
(SEAL)
~~,.~ MARGARET E RAEL ~
~-'~.~'x~=~"~°,'--_ Notary Public S~te of Te~s~
~.[ ~ ~ My Commission ~pires ~
~ AUGUST 22, 2~
NotaryWPul~ic in and~ fo; the
State of Texas
(Print~'d Name of Notary)
My commission exPires:,,y ~-o x
For the CITY OF SCHERTZ
City Manager
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me ct7~ , 2001, by
Dewey P. Cashwell, Jr., City Manager of the City ~)f Schertz, Texas, a
municipality and body politic formed under the laws of the State of Texas,
on behalf of said municipality.
(SEAL)
~8~:tearYo~Tebxlifsin and for'the
(Printed Name of Notary)
My commission expires q-/~-Pg'"
THE STATE OF TEXAS,
County of Guadalupe
PUBLISHER'S AFFIDAVIT
Before me, the undersigned authority, on this date personally appeared ·
'~l%('v,.%~k ,,(t ~-4.~--'1A t '/ , known:'to- me, who, being by me duly sworn, on
his oath deposes and says that he is the Publisher of The Seguin .Gazette-Ente~.dse, a
newspaper published in said county; that a copy of the within and foregoing notice was
published in said newspaper..I _ time(s) before the return day named therein, such
publications being on the following dates:
and a newspaper copy of which is hereto attached.
§wom to and subscribed before me this ,~~ day of ..
:' ' '" *~~~,~~,¢--, .... o · --. '~ . . "- '.-'-..... Nota Public, Guadalu e Coun~:.,Texa~..:;:.~.:?..~.-..,.~
THE ~TATE OF TF:XA$,
County of Guadalupe
PUBLISHER'S AFFIDAVIT
Be. fore me, the undersigned authority, on this date personally appeared -
~_~~ ~ ', knowH'.',ito me, who' being by me duly sworn, on
his oath deposes and says that he is the Publisher of The Seguin Gazette-Enterpdse, a
newspaper published in said county; that a copy of the within and foregoing notice was
published in said newspaper I time(s) before the retum day named therein, such
publications being on the following dates:
and a newspaper copy of which is hereto attached.
Swo,9_rn to and subscribed before me this ,~'~' ~.ay of . ...
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