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1992T17- MR. REX BORNMANN ORDINANCE NO. 93-T-I'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 MR. REX BORNMANN, 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 provisio~~; and WHEREAS, the City Council finds that Mr. Rex Bornmanns application for abatement of ad valorem taxes 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 Mr. Rex Bornmann, described as a 3.36 acre tract out of the George Gesche tract and recorded Volume 2, page 142 of the map records of Gualalupe 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 July 21st, 1992, 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, Mr. Rex and, the request for abatement of ad valorem taxes by Bornmann is approved. The approved rate is 30%; 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 Mr. Rex Bornmann, hereinafter called the Owner. 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 92-T-2, as amended, which establishes the City of Schertz Guidelines and Criteria for Tax Abatement and Reinvestment Zones. (3). City establishing the property of Schertz Ordinance 9,) -7-/(, , a Reinvestment Zone which encompasses described below. (4) . Ci ty of Schertz Ordinance 'l:J -j- /7, 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 constitute a hazard to public morals. property will safety, health, not or 3. Property a. The property is described as follows: a 3.36 acre tract, out of the George Gesche tract, recorded in Volume 2, Page 142, Guadalupe County Map records on 24 October, 1991, hereinafter call the Property. The street address is 113 Pecan Drive. b. Abatements approved will be based of the Guadalupe County Appraisal Property. The 1992 base year value is on the 1992 rolls District for the $46,825.00. -1- c. The tax account of the property is 2G0221 0000 04530. 4. Owners' Representations a. The Owner represents he is the owner in fee simple of the Property. b. The Owner represents he is the owner of CFTI Hardwood Cabinets Incorporated. c. The Owner represents the company will make improvements to the property in excess of $75,000.00. 5. Terms of the Agreement a. The Owner agrees to maintain currency of ad valorem tax payments to all local taxing entities. b. The Owner agrees to maintain the property in good repair and condition during the abatement period. c. The Owner agrees to furnish the Chief Tax Appraiser of Guadalupe County with such information as may be necessary for appraisal purposes of real property. d. The Owner 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. 6. Tax Abatement. a. If the Owner complies with the terms of paragraph 5 of this agreement for the period of the abatement, the Owner shall be entitled to a 20% abatement of Cities ad valorem taxes based capital improvements made on the property. In addition, the owner will be provided an additional 10% abatement of ad valorem taxes as a result of being a business based in the City of Schertz. b. The period of the abatement will be six years. The period shall begin on 1 January, 1993, and continue until 31 December, 1998. -2- 7. Default and Recapture a. If the Owner refuses or neglects to comply with any of the terms of this agreement or, if any representation made by the Owner 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 Owner allows ad valorem taxes on the Property to become delinquent and fail 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 Owner to be in default this agreement, the City will notify the Owner 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 Owner decides to relocate CFTI Hardwood Products, Inc. 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. A total bill will be sent to the Owner and the Owner agrees to pay the total amount within sixty days after receipt. Penalty and Interest will not begin to accrue until the Owner 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 Assessor have been made. -3- 8. Notice All notices shall be in writing, addressed to the Owner 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 Owner: -If mailed or personally delivered: 1"2.4P~ ::Pt2..",,- S:.........-:z.. Te...4S 7 81 ~4-- 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 of the City of Schertz City Council by the affirmative vote of a majority of members at a regularly scheduled meeting. lO. Assignment This agreement may Council approval Ordinance. be assignable to a new owner only with City as reflected in a duly adopted City -4- 11. Date This agreement originals, each day of Rv'Gt."i! . has been executed having full force 1992. by the parties in multiple and effect on this the ~ OWNER: Rex Bornmann eQ. State of Texas ( ( County of 0(. kc-1<<L-v t.' '<(. j This instrument Il () (/' ,-if (- was acknowledged before me on , 1992, by Rex Bornmann. .~:ot. Z6/0[lll saJld~'3 UOISSIWI1JOJ ~w '~;'!f:{f'fO~}J~;~..; :.~,~ mal 10 aietS 'Jllqnd ~Jl?lON 3SnVeJ')f .0 3NOr ...../"'~ l ~~~ CITY OF SCHERTZ .~~~ City Manager ATTEST: 9#r~ une Kraus City Secretary Seal of the City -5- THAT, the City Manager is authorized to enter into an agreement, shown as Exhibit 1, with Mr. Rex Bornmann. PASSED, APPROVED AND I7IJQu.,r ,1992. , ADOPTED day of July, 1992. this the ~ay of Approved on first reading the 21st ATTEST: ( C' Y Secretary, (SEAL OF CITY)