1998T11-TAX ABATEMENT
ORDINANCE NO. 91-1-/1
AN ORDINANCE
THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT AND A
TAX ABATEMENT AGREEMENT BY THE
CITY COUNCIL FOR AND WITH
CORONADO PAINT, 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 Coronado Paint 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 Coronado Paint, described as Lot 1,
Block 1, Negley Subdivision and, is within Carnal County and a State
Enterprise Zone as approved by the Texas Department of Commerce on 11
April, 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 Coronado Paint
is approved. The approved rate is 37.77% 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 Coronado Paint.
Approved on first reading the 21st day of April 1998.
PASSED,
'7/}.
~
APPROVED
,1998.
AND
ADOPTED
this
the .5;t.I- day
of
(?L!c1~;4~
Mayor, City of Schertz, Texas
ATTEST:
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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 Coronado Paint Company, (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 97-T-4, 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 98-T-ll which approves this tax
abatement and agreement and authorizes the execution hereof.
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 as the result of the
planned use of the property.
3. Property
a. The real property is described as Lot 1, Block 1, (13.161 acres), in the
Negley Subdivision, (hereinafter called the "Property").
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 1997 base year value established by the Guadalupe County
Appraisal District is $343,946.00.
C. The tax account of the Property is lC2155-0001-00100-00.
-1-
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, a State Enterprise
Zone, Tri-County Business Park, and within Comal County, Texas.
b. The Company represents that the use of the Property is to be as
follows: Warehousing and Distribution of paint and paint products to
wholesalers.
c. The Company estimates it
("Improvements") to the Property
$650,000.00.
will make capital
which will cost
improvements
approximately
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 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 fulf1l.ling the following covenants:
a. Construction of an approximately 21,000 sq ft expansion of an
existing building, the Company represents that the improvement to the
Property will cost approximately $650,000.00 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 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.
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.
-2-
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 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.
g. The Company agrees annually to certify in writing its compliance
with the terms of this Agreement, which certification shall be filed by January
15 of each year during the Term of the Abatement and by January 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, 37.77% of
the entire assessed value of the Improvements located on the Property shall be
exempt from ad valorem taxation for a period of five (5) years.
b. No abatement of taxes shall be granted as to personal property of the
Company installed or maintained within the Property.
c. The abatement shall be for a five year period (the "Term of this
Agreement") commencing on January 1, 1999 (the "Commencement Date"),
and expiring on the 31 December, 2003 (5th) 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.
-3-
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 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 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. 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 (i) recapture 100% of the taxes abated in prior
years and the year in which such discontinuance occurs; and (ii) 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. 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 Guadalupe 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:
-4-
To the Company:
If mailed or delivered:
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.
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 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 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.
-5-
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, 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 5..... day of
ju .>'2. 1998.
Coronado Paint Company
By: (ectt ~{A.t,-
State of Texas:
/}
County of L 0/77 /l.t:-
This inst:n.ypent was acknowledged before me on ~ !J- , ~99L, by
.6/.LL /'Er~r.5d,J , of Coronado Paint Company, a _$~~
corporation, on behalf of said corporation.
(SEAL)
l~~~~
Notary Public in and for the
State of Texas
~J',I7}1'1 /l~TlloV,:5E
(Printed N~e of Notary)
My commission expires: //);/fY
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ATTEST:
Norma Althouse
City Secretary
Seal of the City
For the City of Schertz, Texas
~~
Kerry R. Sweatt
City Manager
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on f2:.~.s: 199 f, by
Kerry R. Sweatt, City Manager of the City of Schertz, Te s, a mUUlClpallty and
body politic formed under the laws of the State of Texas, on behalf of said
municipality.
(SEAL)
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Notary Public in and for the
State of Texas
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(Printed Name of Notary)
My commission expires: 1/11' If f
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PUBLISHER'S AFFIDAVIT
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.THE STATE OF TEXAS, Jv!:'"' q 1/1'
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Ii! (jiJ:i# yJ~;:J
County of Guadalupe JW )% ~
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Before me, the undersigned authority, on this date personally appeared
L A REnOLDS known to me, who, being by duly sworn, on
his oath deposes and says that he/she is the Publisher of The Seguin
Gazette-Enterprise, a newspaper published in said county; that a copy
of the within and foregoing AD was published in said news-
2
paper times before the return day named therein, such publi-
t' b' th f II d t AN ORDINANCE AN ORDlNANCl:
ca Ions elng on e 0 owing a es: BY THE CITY 9QUNCIL BY THE CITY COU
OF HiE CITY OF OF"THE' 'CITY NCIL
AP R I L 26, 1998 SCHERTZ, TEXAS PRO- SCHERTZ TEXA OF
VI DING A TAX ABATE. VIDINO A'TA' ...,S PRO-
MENT AND A TAX ^ ABATe".
APRIL 30, 1998 ABATEMENT AGREE- Z':NT AND. A TAX
MENT FOR AND WITH ATEMENT AGREE-
CORONADO PAINT A MENT FOR AND WITH
PROPERTY OWNER IN CORONADO PAINT A
THE CITY OF SCHERTZ. 'PROPERTY OWNER' IN
ApproVEd on first reading the THE CITY OF SCHERTZ,
21st day of April, 1998, Awrovedon first readinglhe
Nonna Althouse, City Sec. 21st day of April, 1998,
retary, I Nonna Ahhouse, City Sec-
retary. ,:
(
and a newspaper copy of which is h
Sworn to and subscribed before me, this 1
19~.
day of MAY
A.D.,
",~~,..,~U'.9'111 ~
..0;,*/"."") SARAH ME.ORANO~~
( 'i., No1lrYNl1c.S\8lt~T""
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Notary Public, Guadalupe County, Texas
PUBLISHER'S AFFIDAVIT .0::':'3)' I
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f),~l c/o 'II
THE STATE OF TEXAS, ,j~t. il 6. -I J~lif
County of Guadalupe ~~;:'~y*1v~
Q,Vt,t+ ~/ ~ ~'~~ ' ')
Before me, the undersigned authority, on this date personally appeared
L A REYCIOLDS known to me, who, being by duly sworn, on
his oath deposes and says that he/she is the Publisher of The Seguin
Gazette-Enterprise, a newspaper published in said county; that a copy
of the within and foregoing AD was published in said news-
paper 2 times before the return day named therein, such publi-
cations being on the following dates: ORDINANCE NO,9lI-T-11 ORDINANCE-NO~
BY THE CITY COUNCIL BY THE CI1 Y C~N~IL
OF THE CITY OF
'lAY 1 3 1 998 SCHERTZ TEXAS AP- OF THE CITY OF
" , 'SCHERT
PROVING A TAX ABATE- Z, TEXAS AP-
MENT AND A TAX PROVING A TAX ABATE-
ABATEMENT AGREE- MENT AND A TAX
ME NT FOR AND WITH ABATEMENT AGREE-
CORONADO PAINT, A MENT FOR AND WITH
PROPERTY OWNER IN CORONADO PAINT, A
T)-iE CITY OF SCHERTZ, PROPERTY OWNER IN
PASSED, APPROVED THE CITY OF SCHERTZ.
AND ADOPTED the 5th PASSED, APPROVED
dl>Y of May, 1:-1. ' , AND ADOPTED the 5th
~rma A1thOUS, City Set- day of May, 1998,
retary, , Norma Ahhouse, City See-
tt h d I retary,
o a ac e . I -~--~
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MAY 14,1998
and a newspaper copy of which i
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Sworn to and subscribed before me, this
98
19_
A.D.,
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..-:,""0"", ~
f~~;' ." <~\ SARAH MEDRANO
.: -i,.~ i-lOl.1JV.PubIic,S1al~ofT~,
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Notary Public, Guadalupe County, Texas