1994T29- AMERICAN FREIGHTWAYS INCORP
ORDINANCE NO.
ff--i- 02 '1
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, APPROVING A TAX ABATEMENT
AND A TAX ABATEMENT AGREEMENT FOR AND WITH
AMERICAN FREIGHTWAYS INCORPORATED, 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 American Frieghtways
Incorporated meets those Guidelines and Criteria, as amended,
and further finds the terms of the tax abatement agreement
listed at Exhibit 1 are acceptable; and
WHEREAS, the property owned by American Freightways
Incorporated, described as an 18.2 acre tract out of Lot 15 ,
Tri-County Development Park, recorded in Volume 5, Pages
82-84, Map Records of Comal County, Texas, is within a
Reinvestment Zone as defined by the Texas Property Tax Code
and as established by the City Council; and
WHEREAS, a public hearing was held on 4 October, 1994, to
hear public comment; 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
American Freightways Incorporated is approved. The approved
rate is 90% for the first seven (7) years and 60% for the 8th
year. Taxes shall be abated on capital improvements only.
THAT, the City
agreement, shown as
Incorporated.
Manager is authorized to enter into an
Exhibit 1, with American Freightways
Approved on first reading the 4th day of October, 1994.
PAS~~PROVED AND
. , 1994.
ADOPTED
this
the
It'day
of
y;le 4d"~
Mayor, City of Schertz, Texas
ATTEST:
AI^ / ,-f: ~ t2Ld~-u.<2--U
~! 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
American Freightways Incorporated, 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
establishes
Criteria for
of
the
Tax
Schertz
City of
Abatement
Ordinance 92-T-2, which
Schertz Guidelines and
and Reinvestment Zones.
(3). City
establishing
the property
of Schertz Ordinance 9'1-T--().8,
a Reinvestment Zone which encompasses
described below.
(4) . Ci ty of Schertz Ordinance 91{- T~J. 'I, which
approves this tax abatement and agreement.
b. The City of Schertz, 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) the planned use of the property will not
constitute a hazard to public safety, health, or
morals.
3. Property
a. The property is described as follows: a 18.2 acre
tract, out of the George M. Dolson Survey No. 96,
Abstract 120, Comal County, Texas, recorded in Volume 5,
pp 82-84, Map Records of Comal County, Texas, on 23
February, 1993, hereinafter call the Property.
-1-
b. Abatements approved will be based on the rolls of the
Guadalupe County Appraisal District for the Property.
The 1993 base year value is $272,655.00.
c. The tax account of the property is lC2326-0000-0l500.
4. Company Representations
a. The Company represents they are the owners in fee
simple of the Property.
b. The Company represents they will make capital
improvements to the property in excess of $3,300,000.00.
c. The
excess of
Texas.
Company represents they will have a payroll in
$2,000,000.00 in facilities located in Schertz,
5. Terms of the Agreement
a. The Company agrees to maintain currency of ad valorem
tax payments to all local taxing entities.
b. The Company agrees to maintain the property in good
repair and condition during the abatement period,
including the landscaped area describe in the Site Plan
approved by the Planning and Zoning Commission.
c. The Company agrees to furnish the Chief Tax Appraiser
of Guadalupe County with such information as may be
necessary for appraisal purposes.
d. 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. 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
facility.
e. The Company assures the City that capital
improvements to the property will be in excess of
$3,300,000.00 for tax abatement purposes. Such capital
improvements to be completed in calendar year 1995.
f. The Company assures the City that the annual company
payroll for employees in the Schertz facility will be in
excess of $2,000,000.00 for tax abatement purposes during
the entire tax abatement period.
-2-
g. Other Taxing Entities. Other taxing entities are
encouraged to provide abatements as listed below.
6. Terms for the Tax Abatement.
a. If the Company complies with the terms of paragraph 5
of this agreement for the period of the abatement, the
Owners shall be entitled to:
(1) 90% abatement of ad valorem taxes for a period
of seven (7) years on Capital Improvements.
(2) 60% abatement of ad valorem taxes for the eighth
(8th) year on Capital Improvements.
b. The period of the abatement will be eight years. The
period shall begin on 1 January, 1995, and continue until
31 December, 2002.
7. Default and 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
is false or misleading in any material respect 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 this agreement, the City will notify the Owners
in writing at the address stated in Section 8 of this
agreement, and if such is not cured within sixty days
from the date of such notice (the Cure Period), then this
agreement may be terminated upon written notice to the
Owners. 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. In the event the Company decides to relocate the
operations of American Freightways Incorporated, outside
the City limits of Schertz, Texas, during the abatement
period, the City shall by an Ordinance adopted by City
Council have the right to recapture 100% of taxes abated
in prior years and the year in which relocation occurs.
-3-
e. A total bill 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 Owners have 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. Unless
otherwise provided in this agreement, all notices shall be
delivered to the following address:
To the Company:
~If mailed or personally delivered:
AMERICAN FREIGHTWAYS ATr: DONNA GASTON
2200 FORWARD DRIVE
HARRISON. AR 72601
With required copy to:
(Attorney)
To the City:
-If mailed or personally delivered
City of Schertz
Attn: City Manager
P.O. Drawer I
SChertz, Texas 78154
9. Condition
This agreement is conditioned entirely upon the approval
City of Schertz City Council by the affirmative vote
majority of members at a regularly scheduled meeting.
10. Assignment
of the
of a
This agreement may be assignable to a new owner only with City
Council approval as reflected in a duly adopted City Ordinance.
-4-
11 . Date
This agreement
originals, each
day of Cblvhllf
has been executed
having full force
1994.
by the parties in multiple
and effect on this the 6D~
AMERICAN FREIGHTWAYS INCORPORATED
State of T
ltt Vru l'fe.,;,4t..l ACLO,'oU'^(j
t'=\ \ ~-:-:D..S
County of: &::::cv'\.e
This instrume~ was aCknoWle~ed before
1994, by J1 e/lo. ./Y1 ~ 0 J<.
/"
me on
(J~-ft)-bo /1 o?ll,
Notary Public in and for the
State of Texas
ATTEST:
~nt<U t2~ Alii, /l,)~~t
\J.........June Krause . /~ J j
r - City Secretary
Seal of the City
-5-
THE STATE OF TEXAS,
PUBLISHER'S AFFIDAVIT
/j; !Lt~iz;f:i;lfci Ii}'
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County of Guadalupe j /
Before me, the undersigned authority, on this date personally appe~::t<~ Dk.(~ S
J (" j i
I
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 published in said county; that a copy of the within and foregoing
~\~ was published in said newspaper --::v
times before the return day named therein, such
publications being on t following dates:
QRqINANCENO.94-T-29 k bY Jl-
BY THE CITY COUNCIL
QF SCHERTZ, TEXAS, ,\ \. )-' l ~)C).J'e~/r 3-
APPROVING A TAX
.(BATEMENT AND A TAX
ABATEMENT AGREE-
r.iENT FOR AND WITH
--1MERICAN FREIGHT-
WAYS INCORPORATED,
p-assed, approved and
adopted the 18th day of
October, 1994.
NOnna Althouse
Oeputy City Sacretary
and a newspaper copy of which is hereto attached,
1 <>y.'
ORDlNANCij NO. 94- T-29
SY THE cl'rY COUNCIL
OF SCHERTZ, TEXAS,
APPROVING A TAX
~ATEMENT AND A TAX
ABATEMENT AGREE-
~ENT FOR AND WITH
AMERICAN FREIGHT-
WAYS INCORPORATED.
Passed. approved and
Odopted the 18th day of
Qctober, 1994.
Nonna Althouse
l)eputy City Seeretary
Sworn to and subscribed before me, this If)
day of A)C~it!-;1Aj~ (-
A D 19 ~'/.'
.., ~
.6f~I,
I~O/' ~-...,(.. \
,( "",'~ CHERYL SOSA
('\*,).~ NlltlryPu:!lic,SlateofTem
''.L'''\' /' i MyComrnisslOflExpiresFtll13 1996
.~".. '.............. ,.""or .
11,:F: Of ~~1-/
.....-..,--
a~ ~<:;O~U-
Notary Public, Guadalupe County, Texas