1998T2-TAX ABATEMENT
ORDINANCE NO. f J-. / -;L
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, APPROVING A TAX ABATEMENT
AND A TAX ABATEMENT AGREEMENT FOR AND WITH
INTERPLASTIC CORPORATION, AND A REPEALING
PROVISION.
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 Interplastic Corportation
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 Interplastic Corporation
is described as Lot 27, Block 5, (1.488 acres) in Tri-County
Business and Industrial Park Unit 3, as recorded in Volume 5,
page 370A on 22 August, 1997, in the plat records of Guadalupe
County, and is within a Texas Enterprise Zone as approved by
the Texas Department of Commerce 11 April, 1995.
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
the Interplastic Corporation is approved. The approved rate
is as follows: 90% for Year 1; 60% for Year 2; 36.5% for
Year 3, and none thereafter. The term for the tax abatement
begins 1 January, 1999. Taxes shall be abated on capital
improvements only.
THAT,
agreement,
Corporation.
the City Manager is authorized to enter into an
shown as Exhibit 1, with the Interplastic
THAT, City of Schertz Ordinance 97-T-22 is repealed in
its entirety.
Approved on first reading the 16th
PASSED, APPROVED AND
~~ ' 1991.
ADOPTED
day of December, 1997.
this the {,rll day
of
ATTEST:
exas
~ aL~~
City Secretary, City of Schertz
(SEAL OF CITY)
Exhibit 1
Tax Abatement Agreement
1. Parties.
This agreement, is made and entered into by and
City of Schertz, Texas (hereinafter called the
Interplastic Distribution Group Incorporated,
called the "Company").
between the
"City"), and
(hereinafter
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
which approves this tax abatement
authorizes the execution hereof.
9~ - T - d-.
and agreement
and
the
meet
finds
b. The City, by approval of this agreement, hereby finds
terms of this agreement and the property subject to it, to
the "Guidelines and Criteria" as adopted, and further
there will be:
(1) no substantia 1 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 27, Block 5, Unit
3, (1.488 acres), in the Tri-County Business and Industrial
Park, recorded in Volume 5, pages 370A Plat Records of
Guadalupe County, Texas (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.
c. The tax account of the Property is IG-3325-3005-02-000.
-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, Tri-County Business and Industrial Park, and
within Guadalupe County, Texas.
b. The Company represents that the use of the Property is
to be as fol1ows: Warehousing and distribution of resins and
related products.
c. The Company estimates it will make capital improvements
("Improvements") to the Property which will cost approximately
$600,000.00.
d. The Company represents that a m~n~mum of seven (7) new
jobs wil1 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 in the approximate amount of $350.000.00 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
following improvements to the Property (hereinafter
as the "Improvements") and fulfilling the following
making the
referred to
covenants:
a. Construction of an approximately 15,000 sq ft building,
including office spaces. The Company represents that the
Improvement to the Property will cost approximately $600,000.00
and will be completed during the term of the abatement.
b. The Company covenants and agrees that a minimum of
seven (7) 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.
-2-
c. The location of the Improvements is more
described in a preliminary site plan approved by
Schertz Planning and Zoning Commission.
particularly
the City of
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
to be approved by the Planning and Zoning Commission of the
City.
e.
Property
assessed
The Company agrees to pay all ad valorem taxes
and on personal property in a timely manner,
by the City or any other tax jurisdiction.
on the
whether
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 al10w 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 $350,000.00 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, taxes on Capital Improvments only shall be abated as
follows: 90% Year 1; 60% Year 2; 36.5% Year 3, and none
thereafter.
-3-
b.
property
Property.
No abatement of taxes shal1 be granted as to personal
of the Company installed or maintained within the
c. The abatement shall be for a three year period (the
"Term of this Agreement") commencing on January 1, 1999 (the
"Commencement Date"), and expiring on the 31 December, 2001
(3rd) 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 wil1 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.
-4-
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 fol1owing address:
To the Company:
If mailed:
Interplastic Distribution Group
Attn: Ervin E. Nothnagal
10856 Vandale
San Antonio, Texas 78216
If delivered:
Interplastic Distribution Group
Attn: Customer Service Manager
xxxxxx
Schertz, Texas
78154
With copy to:
Mark J. Brost, Vice President
Interplastic Corportation
1225 Willow Lake Blvd
St. Paul, Minnesota 55100-5145
-5-
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
shal1 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 10ng as the certificate is requested in
connection with a bona fide business purpose. The certificate,
-6-
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
the parties hereto and their
permitted assigns.
and inure to the benefit
respective successors
of
and
16. Date.
This agreement has been executed
originals, ~having full force
day of f1,A" 1997.
by the parties in multiple
and effect on this the S l".;f
Interp1astic Distribution
Group I)lcorpor
CITY OF SCHER Z
~ swec:fi-
City Manager
By:
ATTEST:
~"-#.--' tl!d"-<. L...:l..k~ I
Norma Althouse
City Secretary
Seal of the City
State of Texas:
County ofi!i.Lt1dd~
-7-
This instrument was acknowledged before me on
DP~PMbe~ ~\, 1991-, by Mark J. Brost, of Interplastic
Distribution Group Incorporated, a Minnesota corporation, on
behalf of said corporation.
(SEAL)
IVAN M. LEVY
N01A1't' ftIIUC . MlNNOOT A.
MY COMMISSION EXPIRES
JANUARY 31, 2000
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Notary Public in and r the
State of Minnesota, County of
Ramsey
JvQ.^ jIo\. kvv
(Printed Name~f Notary)
My commission expires: '-~I-oo
THE STATE OF TEXAS(
COUNTY OF GUADALUPE( ss.
This instrument
/l! /fA!<! II l,y
the City of
formed under
municipality.
was acknowledged before me on
, 1991, by Kerry R. Sweatt, City Manager of
Schertz, Texas, a municipality and body politic
the laws of the State of Texas, on behalf of said
(SEAL)
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AN ORDINANCE
BY THE CITY COUNCIL
OF THE CITY OF
SCHERTZ. TEXAS AP-
PROVING A T1X ABA TE-
ME NT AND A TAX
ABATE~T fAG~-
MENT FOR AND WITH
INTERPLASTIC CORPO.
RA nON, AND A REPEAL-
1NG PROVISION.
Approved on first reading the
16th day of December,
1997.
Norma Althouse,
~i!y _~~~r~~ary.
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FEBRUARY 1, 1998
FEBRUARY 5, 1998
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AN OR
BY THE C
OF THE', CITY OF
SCHERTZ,'TEXAS AP.
PROVING ATAX ABATE-
MENT AND A TAX
ABATEMENt AGREE-
MENT FOR' AND WITH
INTERPLASnC CORPO-
RATION, AND A REPEAL-
ING PROVISION.
Approved on first reading the
16th day of December,
1997.
Nonna Althouse,
City Secretary.
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FEBRUARY 1, 1998
ORDINANCE NO. T-2
BY THE CITY CO CIL
OF THE CITY i OF
SCHERTZ, TEXAS" AP.
PROVING A TAX ABlITE.
MENT AND A TAX
ABATEMENT AGREE.
MENT FOR AND WITH
INTERPLASTIC CORPO.
RATION, AND A REPEAL.
ING PROVISION,
PASSED, APPROVED
AND ADOPTED the 6th
day of January, 1996,
Norma Althouse,
City Secretary.
ORDINANCi;- NO. 98- T.2
BY THE CITY COUNCIL
OF THE CITY OF
SCHERTZ, TEXAS Ap.
PROVING A TAX ABATE-
MENT AND A TAX
ABATEMENT AGREE.
MENT FOR AND WITH
INTERPLASTIC CORPO-
RATION, AND A REPEAL.
ING PROVISION,
PASSED, APPROVED
AND ADO TED the 6th
day of Jan ry, 1998.
Norma Alth S9,
City Secret
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