2007T22-Tax Abatement
ORDINANCE NO. 07-T-22
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS,
AMMENDING CITY OF SCHERTZ ORDINANCE NO. 03-T-19;
APPROVING A TAX ABATEMENT AND A TAX ABATEMENT
AGREEMENT BY THE CITY COUNCIL FOR AND WITH E.M. 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 amends City of Schertz Ordinance No. 03-T-19
authorizing a tax abatement agreement with E.M. Limited Partnership,
WHEREAS, L.O. Apartments LTD., Inc., has changed their name/ownership to
E.M. Limited Partnership; and
WHEREAS, the City Council finds that the application for abatement of ad
valorem taxes by E.M. 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 E.M. Limited Partnership described as
approximately 12-acres of a 37.191-acre tract in Vol. 1284, pg. 525, Guadalupe
County, Texas out of the original 40.982-acre tract in Vol. 873, pg. 734, Guadalupe
County, Texas. All of 19.588 acres being in the Toribo Herrera Survey 68, Abstract
No. 153 in the City of Schertz, Guadalupe County, Texas; 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 E.M. Limited
Partnership, is approved. The approved rate is 33.8% for 10 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 E.M. Limited Partnership.
Approved on first reading the aclt4 day of 41~/L
,2007.
PASSED, APPROVED AND ADOPTED this the ,,;,E ayof -118.,'1
ATTEST:
Ci~~hertz
Mayor, CitY of Schertz, Texas
,2007.
"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 E.M. Limited Partnership (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 03-T-18 that establishes a Reinvestment Zone for the
Property to receive Tax Abatement under the Guidelines and Criteria
(4) City of Schertz Ordinance 04-T-21, 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 E.M. Limited Partnership
described as approximately l2-acres of a 37.19l-acre tract in Vol. 1284, pg. 525, Guadalupe
County, Texas out of the original 40.982-acre tract in Vol. 873, pg. 734, Guadalupe County,
Texas. All of 19.588 acres being in the Toribo Herrera Survey 68, Abstract No. 153,
Guadulupe County, Texas, together with abutter's rights of access to and from the physically
open and publicly maintained streets known as IH 35 and Schertz Parkway.
b. Abatements approved will be based on the value of improvements set out on the real
property roll of the Guadulupe County Appraisal District for the Property. The 2002 base year
value established by the Guadulupe County Appraisal District is $540,374.82.
Tax Abatement Agreement
E.M. Limited Partnership
Page 1 of7
c. The Project has recently been platted, but not recorded, so no tax account on the
Property has been established.
d. 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.
a. The Company represents they are the owners in fee simple of the Property. The
Property is located within the City of Schertz, E.M. Limited Partnership and within Guadulupe
County.
b. The company represents that the use of the Property is to be as follows: 256 unit multi-
family residential project including a free standing leasing office/clubhouse.
c. The Company estimates it will make capital improvements (hereinafter referred to as
"Improvements") to the Property, which will cost approximately $13,000,000.00.
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 210,000 square feet in 256 units of Class A multi-family
commercial project which includes a free standing leasing office/clubhouse. The Company
represents that the Improvements to the Property will cost approximately $13,000,000.00 and
will be completed during the term of the abatement.
b. The location of the Improvements is more particularly described in a site plan approved
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.
Tax Abatement Agreement
E.M. Limited Partnership
Page 2 of7
e. The company agrees to furnish the Chief Tax Appraiser of Guadulupe 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.
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.
h. The Company agrees to complete a 1,200- feet in length road according to city
specifications that allows safe circulation throughout the 19.588 acres between the access road
on IH 35 and Schertz Parkway.
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, 33.8% of the entire assessed value of the
Capital Improvements located on the Property shall be exempt from ad valorem taxation for a
period often (10) 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 lO-year period (the "Term of the Agreement")
commencing on January 1, 2005 (the "Commencement Date"), and expiring on December 31,
2014, the (10th) 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.
f. A variance for multi-family commercial property has been granted based on an
agreement with E.M. Limited Partnership, to complete a 1,200-feet in length road according to
city specifications that allows safe circulation throughout the 19.588 acres between the access
road on IH 35 and Schertz Parkway.
Tax Abatement Agreement
E.M. Limited Partnership
Page 3 of7
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.
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:
(l) 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 Guadulupe 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:
Tax Abatement Agreement
E.M. Limited Partnership
Page 4 of?
E.M. Limited Partnership
855 Fawnway
San Antonio, Texas 78258
With copy to:
To the City:
If mailed or personally delivered:
City of Schertz
Attn: City Manager
l400 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
Tax Abatement Agreement
E.M. Limited Partnership
Page 5 of7
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, 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 17th day of Aoril 2007.
2rO;~
By: Marc E. Moldowan
Title: General Partner
County of Guadulupe
I~~ment was acknowledged before me on Aoril l7. 2007 by Marc E. Moldowan. of E.M.
.i ~~~AiR~!tm behalf of said partnership.
~ ... ... Notary PUblic! \( I fJ
State of Texas ~ -:~ . !'() 4/tf _ -^--<.
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~~~~~~~"t';tf,<t."~C(;ce<c;~,\,:~~~~~~~~~~ otary Pu lC In an lor t e tate 0 Texas
My commission expires: "'8- 1';) - 0 ~ Erin Matlock
(printed name of notary)
For the City:
(~~~
By: -Don Taylor /"
Title: City Manager
Tax Abatement Agreement
E.M. Limited Partnership
Page 6 of7
This instrument was acknowledged before me on ~ 3.01 ,2007, by Don Taylor,
City Manager of City of Schertz, Texas a municipalitY and body politic formed under the laws of the
State of Texas, on behalf of said municipality.
~d. 11. ~
Nd;;fu~C in and for the State of Texas
-f"UlJY N. TD kl1-VJ--
(printed name of notary)
ATTEST:
~~
Ffi: Judy tokar
i1tle: City Secretary
The State of Texas
County of Guadalupe
e JUDY N. TOKAR
NOTARY PUBLIC
STATE OF TEXAS
My Commission ExpifIS 12-11-2010
y commISSIon expIres:
-dot 0
Tax Abatement Agreement
E.M. Limited Partnership
Page 7 of7
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Affidavit of Publisher ,,(I / 0/
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STATE OF TEXAS
COUNTY OF BEXAR
City of Schertz
PUBLIC NOTICE
ORDINANCE NO. 07-T-22
An Ordinance by the City
Council of the City of Schertz.
Texas amending City of Schertz
Ordinance No. 03-T-19; approv-
ing a Tax Abatement and a Tax
Abatement Agreement by the
City Council for and with E. M.
Limited Partnership. a property
owner in the City of Schertz.
Approved on first reading
this the 24th day of April 2007.
PASSED. APPROVED.
AND ADOPTED on this the 1st
day of May 2007.
IslHAL BALDWIN
Mayor
Attest: Judy Tokar
City Secretary
Before me, the undersigned authority, on this day personally appeared Helen I. ~J~L' vmu uelllY
by me duly sworn, says on oath that she is Publisher of the Commercial Recorder, a newspaper of
general circulation in the City of San Antonio, in the State and County aforesaid, and that the
Ordinance No. 07-T-22 here to attached has been published in every issue of said newspaper on
the following days, to wit:
05/14/2007.
~) fl /X~
'~d
Sworn to and subscribed before me this 14th day of of May, 2007.
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