2003T14-TAX ABATEMENTORDINANCE NO. ~~'"'",~-
AN ORDINANCE
THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT AND A
TAX ABATEMENT AGREEMENT BY THE
CITY COUNCIL FOR AND WITH
TADCO/TRI-COUN~ II LTD., A
PROPERTY OWNER IN THE CITY OF
SCHERTZ AND PROVIDING A
REPEALING CLAUSE.
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 TADCO/Tri-County II Ltd., 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, 14.07 acres, is owned by TADCO/Tri-County II
Ltd., described as described as .9198 acre out of Lot 8, 2.290 acres out of Lot 9
and 1.985 acres out of Lot 14, Block 5 of the Tri-County Business and
Industrial Park Unit 2 Subdivision, Comal County, Texas and Lots 15, 16, 17,
18, 19, Block 5 of the Th-County Business and Industrial Park Unit Three
Subdivision, Guadalupe County, Texas; and,
WHEREAS, a public hearing was held on April 1, 2003, to receive public
comment on the creation of TADCO Park II 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,
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 TADCO/Tri-County II Ltd. (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 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-12 that establishes a
Reinvestment Zone for the Property to receive Tax Abatement under the
Guidelines and Criteria.
(4) City of Schertz Ordinance 03-T-14, which approves this tax
abatement and agreement and authorizes the execution thereof.
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 City
services or tax base; and,
(2) no hazard to public safety, health, or morals as the result of
the planned use of thc property.
3. Property
a. The property, (hereinafter called the Property, 14.07 acres, is owned
by TADCO/Tri-County II Ltd., described as .9198 acre out of Lot 8, 2.290 acres
out of Lot 9 and 1.985 ~acres out of Lot 14, Block 5. of the Th-County Business
and Industrial Park Unit 2 Subdivision, Comal County, Texas and Lots 15, 16,
17, 18, 19, Block 5 of the Th-County Business and Industrial Park Unit Three
Subdivision, Guadalupe County, Texas.
,
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 2002 base year value established by the Guadalupe County
Appraisal District is $245,103.89.
c. The Project has recently been platted, but not recorded, so no tax
account of the Property has been established.
d. A general description of the improvements to be made by the
Company is set out in the basic abatement application and attachments.
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 Park, and within Comal and Guadalupe County.
b. The Company represents that the use of the Property is to be as
follows' Wholesale distribution and Office Space.
c. The Company estimates it will make capital improvements
("Improvements") to the Property, which will cost approximately
$6,388,733.00.
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 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 making the following
improvements to the Property (hereinafter referred to as the "Improvements")
and fulfilling the following covenants'
a. Construction of approximately 264,300 feet in two buildings,
including office spaces. The Company represents that the Improvement to the
Property will cost approximately $6,388,733.00 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 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.
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 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
15 to the City of Schertz of each year 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(si in a pro rata share.
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, 53.3% of
the entire assessed value of the Capital Improvements located on the Property
shall be exempt from ad valorem taxation for a period of 10 years.
b. No abatement of taxes shall be granted as to personal property of the
Company installed or maintained within the Property.
c. The abatement shall be for a 10 year period (the "Term of this
Agreement"} commencing on January 1, 2005 (the "Commencement Date"),
and expiring on the 31 December, 2014 {10th) 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.
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 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 (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 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 delivered:
Robert Hunt
Trinity Asset Development Company
100 NE Loop 410, Suite 900
San Antonio, TX 78209
With copy to:
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 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' 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 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 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 and Guadalupe 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
oo3.
For The Company
County of Guadalupe
This instrument ~vas acknowledged before me on /~'? oY~ , 2003,
./~z~e~7- ~L), .~/~- , of TADCO/Tri-County II Ltd., a"'~.~,4_.4 ~7-z~.
corporation, on behalf of said corporation.
(SEAL)
Notary Public in and for the
State of Texas
(Printed Name of Notary)
My commission expires'~~,~
ATTEST:
For the CITY OF SCHERTZ
City Manager
Norma Althouse
City Secretary
Seal of the City
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on ~/~ , 2003, by
Mark Marquez, 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 and for the
State of Texas
(Printed Name of Not~_
My commission expires:/..~v~. ~
PUBLISHER'S APFII~AVIT
THE STATE OF TEXAS,
· e .
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
, known to me, who, being by me duly
, ,'F~ ~'! t" .-'n~ ....
swam, 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; ~a~ a ccpy of
~ ~me(s) before
the within and foregoing notice was published in said newspaper ,
the return day named therein, such publications being on [he following dates:
AN
THE
and a newspaper copy of which is hereto attached.
TaX
TADCO/TRI-CO~UN~
' LTD.., A
OF SCHERTZ ' ~:
PROVIDING
PEALING. CLAUSE.
Swam to and subscribed before me this _~,~~ day of
'-~ _.~. , A.D., 2003.
CAROL ANN AVERY
Notary ~l~c Sta~ at Texas
I~j Comm~on Exl)~ ~-31-2~
Notary Public, Guadalupe County, Texas
THE STATE OF TF_XAS,
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
· .. , known to me, who, being by me duly
sworn, on his oa~ deposes and says that he is the Publisher of The Seguin G~ette-
Enterprise, a newspaper of general circulation, published in said county; that a copy of
the within and foregoing notice 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.
THE ~ ~ . OF
TAX ~
_ ~^ocorm~Cou..w
JIFLTD., A PROPERTY
~3WNER'~N THE crrY
OF SCHERTZ. AND.
, PROVIDING, A RE-,
Swo~~~/~_)subscribed before me this~~',
//m' / , oo3.
d~y of
Notary Public, Guadalupe County,
Texas