1995T31-ESTABLISHING THE VESTAL STEEL REINVESTMENT ZONE
ORDINANCE NO.
fl5- ;-3/
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, ESTABLISHING THE VESTAL
STEEL REINVESTMENT ZONE
WHEREAS, the Texas Property Tax Code, Section 312, allows
the creation of Reinvestment Zones; and,
WHEREAS, the property described, a 39.344 acre tract out of
the George M. Dolson survey #197, Abstract 120, Volume 5, pages
82-84, Map records of Comal County, and recorded as Vestal
Subdivision 1, on 24 August 1995, Volume 11, pages 275-276 in the
Plat Records of Comal County, and is currently zoned for Light
Industrial use (M-l); and,
WHEREAS, it is the belief of the City Council that by
establishing the Vestal Steel Reinvestment Zone, it is reasonably
likely to contribute to the retention or expansion of primary
employment or to attract major investment in the zone that would
benefit the property and would contribute to the economic
development of the property; and
WHEREAS, it has been the stated policy of this Council to
support and promote the economic development of this community;
and
WHEREAS, a Public Hearing was held to hear comments from
the citizens on 3 October, 1995; NOW THEREFORE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS:
THAT the City Council
Reinvestment Zone under
Texas Property Tax Code.
hereby establishes the Vestal Steel
the provisions of Section 312 of the
Approved on first reading the 3rd of October, 1995.
PAS~ APPROVED AND
~LtAJ ,1995
ADOPTED
day
of
Mayor,
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
City of Schertz, Texas (hereinafter called the
Vestal Steel Specialties Inc., (hereinafter
"Company") .
between
"City") ,
called
the
and
the
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 94-T-33, 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
which creates the
Schertz Ordinance 9 fi - ~ .3 /
Vestal Steel Reinvestment Zone.
(4) City of Schertz Ordinance
which approves this tax abatement
authorizes the execution hereof.
9~- T - 3d..
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 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 to be improved under this Agreement
(hereinafter called the "Property") is described a 39.344 acre
tract out of the George M. Dolson survey #197, Abstract 120,
Volume 5, pages 82-84, Map Records of Comal County, and
recorded as Vestal Subdivision 1, on 24 August 1995, Volume 11,
pages 275-276 in the Plat Records of Comal County, and is
currently zoned for Light Industrial use (M-l).
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 1995 base year
value established by the Guadalupe County Appraisal District is
$5194.00.
-1-
c. The tax account of the Property prior to re-plat is
2C0120-0000-01200.
d. A general description of the improvements to be made by
the Company is set in the tax abatement application.
4. Company Representations and Estimates.
a.
simple
Vestal
The Company represents they are the owners in fee
of the Property. The Property is located within the
Steel Reinvestment Zone and within Comal County, Texas.
b. The Company represents that the use of the Property is
compatible with local zoning regulations.
c. The Company estimates it will make capital improvements
("Improvements") to the Property which will cost approximately
$730,000.00.
d. The Company represents that a m1n1mum of ten (10) jobs
will be created in connection with the operation of the Company
on the Property, and it will have an annual payroll in the
approximate amount of $493,000.00 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. The Company
Property will cost
completed during the
represents that the Improvement
approximately $790,000.00, and
term of the abatement.
to
will
the
be
b. The Company covenants and agrees that a minimum of ten
(10) new permanent positions will be created 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
described in a site plan approved by the
Planning and Zoning Commission.
more
City
particularly
of Schertz
d. The Company covenants and agrees that all Improvements
constructed in the Reinvestment Zone 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 approve 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 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 $493,000.00 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, 50.82% of the entire assessed value of the
Improvements located in the Guadalupe County Appraisal District
in each such year, shall be exempt from ad valorem taxation.
-3-
b. No abatement of taxes shall be granted as to personal
property of the Company installed or maintained within the
Vestal Steel Reinvestment Zone.
c. The abatement shall be for a six year period (the "Term
of this Agreement") commencing on January l, 1996 (the
"Commencement Date"), and expiring on the December 31st, 2001
(6th) 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.
-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 following address:
To the Company:
If mailed:
\ 7"\<\3
sv\+~''''r-z
Attention: )
RE [) I R01\J
-r C "'As
W A-LTfZR... V ES 1Io.L
If delivered:
--.J 1'1 '\ <.. R ~ D \Rol-J
Sc:.\-+"'\IL."T~ \1':"iAS
Attention: ~((. lJU-rJOrL-
With copy to:
-5-
To the City:
If mai1ed or personally delivered:
City of Schertz
Attn: City Manager
P.O. Drawer I
Schertz, Texas 78154
9. Agreement Approved by City Counci1.
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 on1y 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
a1ternative 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
a11 times to delete said inva1id 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. The certificate,
which if requested, will be addressed to a subsequent purchaser
-6-
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 by the parties in multiple
originalS,~each having full force and effect on this the ~
day of ~~~ 1995.
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"COMPANY"
t
CITY OF
By: K rr Sweatt
City Manager
ATTEST:
~?UG I2Lz/ -"'-'{~ R ~
Norma Althouse
City Secretary
Seal of the City
State of Texas:
ClU/iD/'lLljPE
County of
-7-
This /l_ instrument was
c.A!TOL3e:,e ,;(~' 1995,
v'E6TIIL ~<i7ZEL< ~M1LTIE$-:M~' a
behalf of said corporation.
aCkno~edged
by '/TLTE.e
be~re me
J t'e::3f/1L- ,
corporation,
on
of
on
(SEAL)
~~
Notary Public in and for the
State of Texas
~,6?;/9 /fLTllocJ5E
(Printed Name of Notary)
~ NORMA AlTHOUSE
~. NallryPubllc.St2teofTexas
J' S~ MyCommlsslonExpJresNov.9,19Sf:
My commission expires: ~i/, ~ Iffi'
THE STATE OF TEXAS
COUNTY OF GUADALUPE
Thi~ instrument was acknowledged before me on
{&rot?J€e J?1- , 1995, by Kerry R. Sweatt, City Manager of
the City of SChertz, Texas, a municipality and body politic
formed under the laws of the State of Texas, on behalf of said
municipality.
(SEAL)
~
Notary Public in
State of Texas
au4c~
and for the
d.e/ll/'l #,LTIfOtJ5E
(Printed Name of Notary)
My commission expires: ,A~t! e!'l tJf
NORMA ALTHOUSE
NotalyPupl1c, $tate of Texas
My Commission Expires Nov. Q 19ge
,
~
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PUBLISHER'S AFFIDAVIT
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THE STATE OF TEXAS,
AN ORIlIII'ANCE
BY THE CITY COUNCIL
OF THE CITY OF
SCHERTZ, TEXAS, ES-
TABLISHING THE VESTAL
STEEL REINVESTMENT
ZONE.
Approved on first reading Ihe
3rd day 01 October, 1995.
Nonna Anhouse, Cily See-
~tary.
County of Guadalupe
AN ORDlNARcE
BY THE CITY COUNCIL
OF THE CITY OF
SCHERTZ, TEXAS, ES-
TABLISHING THE VESTAL
STEEL REINVESTMENT
ZONE. '
Approved on first reading the
3rd day 01 October, 1995.
Norma Althouse,
CiIy Sacrata~
I
Before me, the undersigned authority, on this date personally appeared L _ A _ REYNOLDS
known
to me, who, being by me duly swam, en his oath deposes and says that he is the Puclisher of Tne Seguin
Gazette-Enterprise, a newspaper published in said county; that a copy of the within and foregoing
AD
was published in said newspaper ::;l,
times before the return day named therein, such
publications being on the following dates:
()tk,\&A/ V I l C{ (L \
;e)c, ~< (~ le( C( '5 t' LUt-d Q[t-~ , - Cc Lc1?(/ W{[J-
and a newspaper copy of which is hereto attached.
Sworn to and subscnbed before me, thisJ le' D1- day of eX!)(\ kX~
A.D., 19 c( ~~
r-"":~~'~;-;~", .
s "',:""..."', {'I,
f ~~,'-^<o \ MARGARET L CLARKSON
t. ~'\,+7 ,,' i NotarVPI"~'1f,StateG!TE)"~;.
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'-MO-A-~ 0 A A c.,~ ~-J
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Notary Public, Guadalupe c~tinty, Texas
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County of Guadalupe
PUBLISHER'S AFFIDAVIT <
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THE STATE OF TEXAS,
Before me, the undersigned authority, on this date personally appeared L. A. REYNOLDS
known
to me, who, being by me duly swam, on his oath deposes and says that he 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 newspaper c;) times before the return day named therein, such
publications being on the following dates:
C~ c\Jv~\
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(;l.d- \ \ 9.~ S
\
ORDINANCE NO" .T~1
BY THE CITY COUNCIL
OF ,THE. CITY OF
SCHERTZ, T~XAS, ES-
TABLISHING lliE VESTAL
STEEL REINVESTMENT
ZONE.
PASSED, APPROVED,
AND ADOPTED the 17th
day 01 October, 1995.
Norma Ahhouse,
City Secretary
ORDINANCE NO., 95-T~1
BY THE CITY COUNCIL
OF THE CITY OF
SCHERTZ, 'TE!'XAS, ES-
TABLISHING THE VESTAl
STEEL REINVESTMENT
ZONE.
PASSED, APPROVED,
AND ADOPTED the 17th
day of October, 1995.
Nonne Atthouse,
City Secretary
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)
and a newspaper copy of which is hereto attached.
".____..__u _"__
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Sworn to and subscnbed before me, this(,;) V ~ay of (~) (~U ~ "
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A.D., 19 / ').
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Notary Public, Guadalupe CoUnty, Texas
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