2003T34-TAX ABATEMENTORDINANCE NO. gl3- T'73~
AN ORDINANCE
THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT AND A
TAX ABATEMENT AGREEMENT BY THE
CITY COUNCIL FOR AND WITH WALKO
INVESTMENTS, 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 WALKO INVESTMENTS, INC., 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, is owned by WALKO INVESTMENTS, INC.,
described as Block 2, Lots 3 & 4 which include approximately 2.6 acres in the
Schertz Industrial Park on Bell North Drive in the City of Schertz, Cornal
County, Texas; and,
WHEREAS, a public hearing was held on /.fEZ' ~2~..,2.6~_~ , to receive
public comment on the creation of a reinvestment zone named WALKO
REINVESTMENT ZONE; 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 h~d 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 WALKO
INVESTEMENTS, INC.,.is approved. The approved rate is 59% for 5 years.
Taxes shall be abated on capital improvements only.
"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 Walko Investments, Inc. (hereinafter called the "Company").
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Authorization and Findings.
a.
The agreement is entered into pursuant to:
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-33, that establishes a Reinvestment Zone for
the Property to received Tax Abatement under the Guidelines and Criteria.
(4) City of Schertz Ordinance, 03-T-34, 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.
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Property.
a. The property, (hereinafter called the "Property") is owned by Walko. described as
Block 2, Lots 3 and 4 which include approximately 2.6 acres in the Schertz Industrial Park on
Bell North Drive in the City of Schertz, Comal County, Texas.
b. Abatements approved will be based on the value of improvements set out on the real
property roll of the Comal County Appraisal District for the Property. The 2002 base year
value established by the Comal County Appraisal District is $109,250.
c. The Project has recently been platted,
Property has been established.
but not recorded, so no tax account on the
d. A general description of the improvements to be made by the Company is set out in the
basic abatement application and attachments.
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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, and within Comal County.
b. The company represents that the use of the Property is to be as follows' Manufacturing
Center for Lease.
c. The Company estimates it will make capital improvements ("Improvements") to the
Property, which will cost approximately $1,100,000.
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.
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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 19,000 square feet for a high precision tool and die
manufacturing facility that supplies the aUtomotive industry in the United States and Mexico.
The Company represents that the Improvements to the Property will cost approximately
$1,100,000 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.
e. The company agrees to furnish the Chief Tax Appraiser of Comal 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
th
during the Term of the Abatement and by January 15 of the year following the Term of the
Abatement.
h. In the event the Company leases all or part of the improvements to a third party, the
Company agrees that all benefits accrued from this abatement are to be passed on to the
lessee(s) in a pro rata share.
6. Terms for the Tax Abatement
a. Provided that the Company complies with its obligation under Section 5 of this
Agreement throughout the period of the abatement, (59%) of the entire assessed value of the
Capital Improvements located on the Property shall be exempt from ad valorem taxation for a
period of 5 years.
b. N° abatement of taxes shall be granted as to personal property of the Company installed
or maintained with the Property.
c. The abatement s,h, all be for a 5 year peri,,od (the "Term of the Agreement") commencing
on January 1, 2004 (the Commencement Date ), and expiring on December 31, 2008, the (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 and/or lessee shall have the fight 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.
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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 fight to:
(1) 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 Comal 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 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:
Jerry Walsh, Owner
Walko Investments, Inc.
P.O. Box 2120
Ann Arbor, MI 48106
With copy to'
To the City:
If mailed or personally delivered:
City of Schertz
Atm' 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 fights of the holders of
Outstanding bonds of the City. If the holders of outstanding bonds of the City exercise any of the fights
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' fights.
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 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 day of 2004.
For the om :
Title: ' ~Jt ~ ~ ~/d/~,f / O ff/,,,o-)
county o f i.b bb 4 /
Th_is ,instrument was acknowledged before me on
/~7. aPK/~' l//~7~i/~ , of Walko Investments, Inc., a
on behalt' of said corporation.
(SEAL)
AMY L. CHALLENGER
Notary Public, Genesee County, MI
M~ Commission Expires Oct. 26 2006
My commission expires:
2004, by
corporation,
NotaryPublic in and for the S~ate of///{F/~...'/r~/7
(printed name of notary)
ATTEST'
C: Acting City Manager
B2¢: Norma Althouse
Title: City Secretary
The State of Texas
County of Guadalupe
This instrument was acknowledged before me on (J-ptt~ ~~'- , 2004, by John
Bierschwale, Acting City Manager of City of Schertz, Texas' ' a municipality and body politic formed
undeg.~elawsof the State of Texas, on behalf of said municipality.
~/~o~~~--~_ JUDIE KAREN GARCIA
(SE _~~~'~ Notary Public
~ik"~~~ State of T.xa, ,~ Notary Public in' and for th;State of Texas
My commission expires. ~~W
(printed name of notary)
THE STATE OF TEXAS,
PUBLISHER'S AFFIDAVIT
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
,,
. ~.,,.,,,,,: c,-~,, ". , known to me, who, being by me duly
sworn,.on his oath deposes and says that he is the Publisher of The Seguin Gazette-
Enterprise, a newspaper of general circulation, published in said county; that a copy of
the within and foregoing notice was published in said newspaper , ,,,t/ _ time(s) before
the return day named therein, such publications being on the following dates:
and a newspaper copy of which is hereto attached.
· THE cITY ·
:~HE .RTZ, T ,EXA,.r.S.
::TAX.. ': ' .AB~T~NT
AND A TAX ,ABATE-
· MENT AGREEMENT
,ElY THE CI~
CiL', .FOR.
' E~""~I¥~ THE
CITY OF SCHERTZ.
Sworn to
subscribed before me this ~,~?~--~day of
a~~
_, A.D., 2003.
-\
CAROL
,: .: ..: ..::'-:-:: :: :::,:~',7:~,::; :..~, ..... ,
Notary Public, Guadalupe County, Texas
THE STATE OF TEXAS,
PUBLISHER'S AFFIDAVIT
County o¢ Guadalupe
Before me, the undersigned authority, on this date personally appeared
· ,,~r~,z c.,-~,.,r . "- , known to me, who, being by me duly
sworn, on his oath deposes and says that he is the Publisher of The Seguin Gazette-
Enterprise, a newspaper of general circulation, published in said county; that a copy of
the Within and foregeing netice was published in said newspaper , / time(s) before
the return day named therein, such publications being on the following dates:
and a newspaper copy of which is hereto attached.
..
8wo{'n to and subscribed before me this //~'//'''
~ A.D. 2003.
day of
Notary Public, Guadalupe County, Texas