1998T07-TAX ABATEMENT
ORDINANCE NO. fj'-i-7
AN ORDINANCE
THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT
AND A TAX ABATEMENT AGREEMENT
BY THE CITY COUNCIL FOR AND WITH
AER MANUFACTURING INC., 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 Security Capital Industrial Trust, 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 AER Manufacturing Inc., described as
Lot 25, Block 5, (2.385 acres) in the Tri-County Business and Industrial
Park, Unit 3, recorded in Volume 1190, page 685 on2 February, 1996, in the
Guadalupe County Deeds and Records; and, is within 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 1HEREFORE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS:
THAT, the request for abatement of ad valorem taxes by AER
Manufacturing Inc. is approved. The approved rate is 53.11% 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 AER Manufacturing Inc.
Approved on first reading the 17th day of February, 1998.
~ED, APPROVED
~ ,1998.
ATTEST:
AND
ADOPTED
this
at;td '
Mayor, City of Schertz, Texas
~ r2.H~
City Secretary, City of Schertz
(SEAL OF CITY)
i
\
the -Mday
of
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 AER Mfg. Inc., (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 9<( - T - 7 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 25, Block 5, (2.385 acres), in
the Tri-County Business Park Subdivision, Unit 3, recorded in Volume 1190,
page 685 of the Records of Deeds and Plats in Guadalupe County on 2
February, 1996, (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 $97,658.00.
c. The tax account of the Property is IG-3325-3005-02500-00.
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 Guadalupe County, Texas.
b. The Company represents that the use of the Property is to be as
follows: Warehousing and Distribution of remanufactured automobile engines
and other automobile parts to retail outlets.
c. The
("Improvements")
$1,250,000.00.
Company estimates it will make capital
to the Property which will cost
improvements
approximately
d. The Company represents that a minimum of eight (8) new jobs will
be created in the City of Schertz in connection with the operation of the
Company on the Property, and it will have an annual payroll of approximately
$425,000.00 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 28,000 sq ft building, including
office spaces. The Company represents that the Improvement to the
Property will cost approximately $1,250,000.00 and will be completed
during the term of the abatement.
b. The Company covenants and agrees that a mmlmum of eight (8) 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) ofthe 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.
c. The location of the Improvements is more particularly described in a
site plan approved by the City of Schertz 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 $425,000.00
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 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, 53.11% 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.
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:
To the Company:
If mailed or delivered:
Mr. Chris D. Mantzuranis
Executive Vice President
AER Mfg. Inc.
1605 Surveyor Blvd
Carrollton, Texas 75011-0979
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, sentece, 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.
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 Guadalupe 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 _ day of
199_.
AER Mfg., Inc.
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ChrisD.Mantzuranis
Executive Vice President
State of Texas:
County of ~<> \ \q.;,
This instrum~nt was aCknOWledged~ ~~ me on
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corporation, on behalf r said corporation.
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Notary Public and for the
State of Texas
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f. ('''')'1 Notary Public, State Of roxaa
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(Printed Name of Notary)
My commission expires: ....-/10.0 0
ATTEST:
Norma Althouse
City Secretary
Seal of the City
For the City of Schertz, Texas
t;f;~
Keriy~. Sweatt
City Manager
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on ~ / J
1991'., by Kerry R. Sweatt, City Manager of the City of Sche ,Texas, ~
municipality and body politic formed under the laws of the State of Texas, on
behalf of said municipality.
(SEAL)
PORMA f\LTHOUSr
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Notary Public in and for the
State of Texas
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My commission expires: //11 1ft"
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PUBLISHER'S AFFIDAVIT . .:;.-:r~{?
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THE STATE OF TEXAS, Ai tI- ;1/7, [ ;113,c
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County of Guadalupe #J:< ,.?'
Before me, the undersigned authority, on this date personally appeared
L A R::'::rOLDS 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 ne'Nspaper 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: BY ':E~~~NCIL
OF. THE "CITY OF
SCHERTZ, TEXAS Ap.
PROVING A TAX ABATE.
'MENT AND A TAX
ABATEMENT AGREE.
MENT FOR AND WITH
.AER MANUFACTURING,
INC.. A PROPERTY OWN-
ER IN THE CITY OF
SCHERTZ.
Approved on first reading the
17th day of February. 1998.
Nanna Mhouse,
City Secretery
MARCH 20, 1998
M^RCII 2e,lP9B
and a newspaper copy of which is hereto attached.
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-----
Sworn to and subscribed before me, this 27 day of MARCH
19~.
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110 JG," '1'/ ces
- .
- -
AN ORDINANCE
BY lHE CITY COUNCIL
OF lHE CITY OF
SCHERTZ, TEXAS AP-
PFlOVING A TAX ABATE.
MENT AND A TAX
ABATEMENT AGREE-
MENT FOR AND WITH
AER MANUFACTURING.
INC., A PROPERTY OWN.
ER IN THE CITY OF
SCHERTZ.
Approved on first reading the
17th day of February. 1998.
Norma Althouse,
CiltSecretary
A.D.,
. '.'~"..-
"1T~~~\\11
ilj~~ '~:~\, SARAH _ME;Q~ANO
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Notary Public, Guadalupe County, Texas
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PUBLISHER'S 'AFFIDAVIT . "'r: ",,;~1~:
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Before me, the undersigned authority, on this date personally appeared
L A E:::OLDS 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-
ORDINANCE NO. 98- T-7
cations being on the following dates: ~~ T~H~rTYcg~uN~~
SCHERTZ, TEXAS AP-
PROVING A TAX ABATE-
MENT AND A TAX
ABATEMENT AGREE-
r,1ENT FOR AND WITH
AER MANUFACTURING
INC" A PROPERTY OWN-
ER IN THE CITY OF
SCHERTZ,
PASSEO, APPROVEO,
ANO AOOPTED the 3rd
dey of March'f998.
Nonna Althau ,
City Secretary
and a newspaper copy of which is hereto attached.
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THE STATE OF TEXAS,
County of Guadalupe
MARCH 20, 1998
MARCH 26,1998
Sworn to and subscribed before me, this 27
19~."'~
d f MARCH
ay 0
A.D.,
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~ P'~t,,","'\ SARAHMeDFlANO
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I
ORDINANCE NO. 1Il1-T-7
BY THE CITY CUUNCIL
OF THE CITY OF
SCHERTZ, TEXAS AP,
PROVING A TAX ABATE-
MENT AND A TAX
ABATEMENT AGREE-
MENT FOR AND WITH
AER MANUFACTURING
INC., A PROPERTY OWN-
ER IN THE CITY OF
SCHERTZ.
PASSED: APPROVED,
AND ADOPTED lhe 3rd'
daE:8rch.1998.
No AltI1ouee,
City
Notary Public, Guadalupe County, Texas