12-T-31 SEDC Creation of Certain Tax Abatement AgreementsORDINANCE NO: 12 -T -31
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS CLARIFYING, RATIFYING, AND REAFFIRMING
PRIOR ACTIONS OF THE CITY AND THE SCHERTZ ECONOMIC
DEVELOPMENT CORPORATION REGARDING THE CREATION OF
CERTAIN REINVESTMENT ZONES AND THE APPROVAL OF
CERTAIN TAX ABATEMENT AGREEMENTS AND ECONOMIC
DEVELOPMENT INCENTIVES AGREEMENTS WITH THE
FOLLOWING PARTIES: VALERO DIAMOND, L.P., PROLOGIS
DEVELOPMENT SERVICES, INC., PROLOGIS, VERDE TRI- COUNTY,
LTD., CORRIDOR HOTEL II, LTD., THE CAPITAL GROUP
COMPANIES, INC., EYE CARE CENTERS OF AMERICA, INC., LONE
STAR PET SUPPLY, LTD., L.L.P., AND JAVANOOK, LLC; REPEALING
ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH
THIS ORDINANCE; PROVIDING AN EFFECTIVE DATE; DECLARING
AN EME RGENCY; AND OTHER MATTERS IN CONNECTION
THEREWITH
WHEREAS, pursuant to Ordinance No. 03 -T -02, the City of Schertz (the "City ")
adopted Guidelines and Criteria for Tax Abatement and Reinvestment Zones (the "2003 Tax
Abatement Guidelines "), which 2003 Tax Abatement Guidelines were effective from January
1, 2003 through December 31, 2004, and which guidelines established a program for tax
abatements related to Chapter 312 of the Texas Tax Code, referred to as the "Property
Redevelopment and Tax Abatement Act";
WHEREAS, pursuant to Ordinance No. 06 -T -09, the City adopted Guidelines and
Criteria for Tax Phase -In and Reinvestment Zones that replaced the 2003 Tax Abatement
Guidelines (the 112006 Tax Abatement Guidelines "), which 2006 Tax Abatement Guidelines
were effective from March 7, 2006 through March 6, 2008, and which guidelines established a
program for tax abatements related to the Property Redevelopment and Tax Abatement Act;
WHEREAS, pursuant to Ordinance No. 09 -T -02, the City adopted the City of Schertz
Economic Development Incentive Policy (the "2009 Economic Development Incentives
Policy "), which set forth certain guidelines and criteria for economic development incentives
programs by the City, including, without limitation, those authorized by Chapter 380 of the
Texas Local Government Code ( "Chapter 380 ") and the Property Redevelopment and Tax
Abatement Act, and which policy was effective from January 27, 2009 through January 26,
2011;
WIIEREAS, pursuant to Ordinance No. 12 -T -15, the City adopted the City of Schertz
Economic Development Incentive Policy (the "2012 Economic Development Incentives
Policy "), which 2012 Economic Development Incentives Policy replaced the 2009 Economic
Development Incentives Policy and approved certain guidelines and criteria for economic
development incentives programs by the City, including, without limitation, those authorized by
Chapter 380 and the Property Redevelopment and Tax Abatement Act, and which policy is
effective from August 14, 2012 through August 13, 2014;
WHEREAS, the City and the City of Schertz Economic Development Corporation, an
industrial economic development corporation (the "SEDC "), have entered into various tax
abatement agreements and economic development incentives agreements, including, without
limitation, those agreements described below (collectively, the "Agreements "), since the
adoption of the 2003 Tax Abatement Guidelines;
WHEREAS, the Agreements include the following: (1) Tax Abatement Agreement
between the City and Valero Diamond, L.P. approved pursuant to Ordinance No. 05 -T -21 on
May 17, 2005 (the "Valero Agreement'); (2) Tax Abatement Agreement between the City and
ProLogis Development Services, Inc. approved pursuant to Ordinance No. 05 -T -35 on July 19,
2005 (the "First ProLogis Agreement "); (3) Tax Abatement Agreement between the City and
ProLogis approved pursuant to Ordinance No. 08 -T -14 on March 11, 2008 (the "Second
ProLogis Agreement "); (4) Tax Abatement Agreement between the City and Verde Tri- County,
Ltd. approved pursuant to Ordinance No. 05 -T -09 on March 1, 2005 and amended by Ordinance
No. 05 -T -26 on June 7, 2005 (the "Verde Agreement "); (5) Tax Abatement Agreement between
the City and Corridor Hotel II, Ltd. approved pursuant to Ordinance No. 07 -T -28 on June 19,
2007 (the "Corridor Agreement'); (6) Development Agreement among the City, the SEDC,
and The Capital Group Companies, Inc. ( "Capital Group ") approved pursuant to Resolution
No. 10 -R -48 on August 24, 2010 (the "Capital Group Agreement'); (7) Infrastructure
Development Agreement between the SEDC and Eye Care Centers of America, Inc. approved
pursuant to Resolution 09 -R -02 on January 20, 2009 (the "Eve Care Centers Agreement "); (8)
Development Agreement between the SEDC and Lone Star Pet Supply, Ltd., L.L.P. approved
pursuant to Resolution No. 10 -R -27 on June 1, 2010 (the "Lone Star Pet Agreement "); and (9)
Development Agreement among the City, the SEDC, and Javallook, LLC approved pursuant to
Resolution No. 11 -R -50 on November 1, 2011 (the "Javallook Agreement');
WHEREAS, at a meeting of the SEDC Board of Directors on November 29, 2012, the
SEDC Board of Directors approved clarifying, ratifying, and reaffirming certain actions, terms,
and conditions related to the Agreements, and the SEDC further voted to recommend that the
City Council of the City take similar actions; and
WHEREAS, the City Council of the City has determined that it is in the best interests of
the City to clarify, ratify, and reaffirm certain actions, terms, and conditions related to the
Agreements, as more fully set forth in this Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. The Valero Agreement:
(a) Although the 2003 Tax Abatement Guidelines were not in effect at the
time that the Valero Agreement was approved and authorized by the City, pursuant to the express
reference in the Valero Agreement to the 2003 Tax Abatement Guidelines, the City Council of
the City approved and authorized Guidelines and Criteria for Tax Abatement and Reinvestment
50510373.4 - 2 -
Zones equivalent to those contained within the 2003 Tax Abatement Guidelines to be effective as
of the date that the Valero Agreement was approved and authorized by the City (the "Valero
Program Guidelines ");
(b) Although Ordinance No. 05 -T -21 approving the Valero Agreement did not
specifically reference the establishment and designation of a reinvestment zone pursuant to
Section 312.201 of the Property Redevelopment and Tax Abatement Act, the City Council of the
City established and designated the "Property" described in the Valero Agreement (the "Valero
Property") as a reinvestment zone as of the date that the Valero Agreement was approved and
authorized by the City, pursuant to the affirmative statement in the Valero Agreement approved
by Ordinance No. 05 -T -21 that the Valero Agreement met the Valero Program Guidelines, which
required that the Valero Property be designated as a reinvestment zone;
(c) To the extent that the Valero Program Guidelines were not approved and
authorized as of the date that the Valero Agreement was approved and authorized by the City,
the City Council hereby approves and authorizes the Valero Program Guidelines to have been
effective as of the date that the Valero Agreement was approved and authorized by the City; and
(d) To the extent that the Valero Property was not established and designated
as a reinvestment zone pursuant to Ordinance No. 05 -T -21, the City Council hereby establishes
and designates the Valero Property as a reinvestment zone effective as of the date that the Valero
Agreement was approved and authorized by the City.
Section 2. The First ProLogis Agreement:
(a) Although the 2003 Tax Abatement Guidelines were not in effect at the
time that the First ProLogis Agreement was approved and authorized by the City, pursuant to the
express reference in the First ProLogis Agreement to the 2003 Tax Abatement Guidelines, the
City Council of the City approved and authorized Guidelines and Criteria for Tax Abatement and
Reinvestment Zones equivalent to those contained within the 2003 Tax Abatement Guidelines to
be effective as of the date that the First ProLogis Agreement was approved and authorized by the
City (the "First ProLogis Program Guidelines "); and
(b) To the extent that the First ProLogis Program Guidelines were not
approved and authorized as of the date that the First ProLogis Agreement was approved and
authorized by the City, the City Council hereby approves and authorizes the First ProLogis
Program Guidelines to have been effective as of the date that the First ProLogis Agreement was
approved and authorized by the City.
Section 3. The Second ProLogis Agreement:
(a) Although the 2006 Tax Abatement Guidelines were not in effect at the
time that the Second ProLogis Agreement was approved and authorized by the City, pursuant to
the express reference in the Second ProLogis Agreement to the 2006 Tax Abatement Guidelines,
the City Council of the City approved and authorized Guidelines and Criteria for Tax Abatement
and Reinvestment Zones equivalent to those contained within the 2006 Tax Abatement
Guidelines to be effective as of the date that the Second ProLogis Agreement was approved and
authorized by the City (the "Second ProLogis Program Guidelines ");
50510373.4 - 3 -
(b) Although Ordinance No. 08 -T -14, approving the Second ProLogis
Agreement did not specifically reference the establishment and designation of a reinvestment
zone pursuant to Section 312.201 of the Property Redevelopment and Tax Abatement Act, the
City Council of the City established and designated the "Property" described in the Second
ProLogis Agreement (the "Second ProLogis Property ") as a reinvestment zone as of the date
that the Second ProLogis Agreement was approved and authorized by the City, pursuant to the
affirmative statement in the Second ProLogis Agreement approved by Ordinance No. 08 -T -14,
that the Second ProLogis Agreement met the Second ProLogis Program Guidelines, which
required that the Second ProLogis Property be designated as a reinvestment zone;
(c) To the extent that the Second ProLogis Program Guidelines were not
approved and authorized as of the date that the Second ProLogis Agreement was approved and
authorized by the City, the City Council hereby approves and authorizes the Second ProLogis
Program Guidelines to have been effective as of the date that the Second ProLogis Agreement
was approved and authorized by the City; and
(d) To the extent that the Second ProLogis Property was not established and
designated as a reinvestment zone pursuant to Ordinance No. 08 -T -14, the City Council hereby
establishes and designates the Second ProLogis Property as a reinvestment zone effective as of
the date that the Second ProLogis Agreement was approved and authorized by the City.
Section 4. The Verde Agreement:
(a) Although the 2003 Tax Abatement Guidelines were not in effect at the
time that the Verde Agreement was approved and authorized by the City, pursuant to the express
reference in the Verde Agreement to the 2003 Tax Abatement Guidelines, the City Council of
the City approved and authorized Guidelines and Criteria for Tax Abatement and Reinvestment
Zones equivalent to those contained within the 2003 Tax Abatement Guidelines to be effective as
of the date that the Verde Agreement was approved and authorized by the City (the "Verde
Program Guidelines ");
(b) Although Ordinance No. 05 -T -09, as amended by Ordinance 05 -T -26,
approving the Verde Agreement did not specifically reference the establishment and designation
of a reinvestment zone pursuant to Section 312.201 of the Property Redevelopment and Tax
Abatement Act, the City Council of the City established and designated the "Property" described
in the Verde Agreement (the "Verde Property ") as a reinvestment zone as of the date that the
Verde Agreement was approved and authorized by the City, pursuant to the affirmative statement
in the Verde Agreement approved by Ordinance No. 05 -T -09, as amended by Ordinance 05 -T-
26, that the Verde Agreement met the Verde Program Guidelines, which required that the Verde
Property be designated as a reinvestment zone;
(c) To the extent that the Verde Program Guidelines were not approved and
authorized as of the date that the Verde Agreement was approved and authorized by the City, the
City Council hereby approves and authorizes the Verde Program Guidelines to have been
effective as of the date that the Verde Agreement was approved and authorized by the City; and
50510373.4 - 4 -
(d) To the extent that the Verde Property was not established and designated
as a reinvestment zone pursuant to Ordinance No. 05 -T -09, as amended by Ordinance 05 -T -26,
the City Council hereby establishes and designates the Verde Property as a reinvestment zone
effective as of the date that the Verde Agreement was approved and authorized by the City.
Section 5. The Corridor Agreement:
(a) Although Ordinance No. 07 -T -28, by which the City Council authorized
and approved the Corridor Agreement, did not specifically reference the establishment and
designation of a reinvestment zone pursuant to Section 312.201 of the Property Redevelopment
and Tax Abatement Act, the City Council of the City established and designated the "Property"
described in the Corridor Agreement (the "Corridor Property ") as a reinvestment zone as of the
date that the Corridor Agreement was approved and authorized by the City, pursuant to the
affirmative statement in the Corridor Agreement approved by Ordinance No. 07 -T -28, that the
Corridor Agreement met the 2006 Abatement Guidelines (which guidelines, by reason of a
scrivener's error, were referenced in the Corridor Agreement as having been adopted pursuant to
Ordinance No. 06 -T -06 as opposed to the correct Ordinance No. 06- T -09), and which required
that the Corridor Property be designated as a reinvestment zone; and
(b) To the extent that the Corridor Property was not established and
designated as a reinvestment zone pursuant to Ordinance No. 07 -T -28, the City Council hereby
establishes and designates the Corridor Property as a reinvestment zone effective as of the date
that the Corridor Agreement was approved and authorized by the City.
Section 6. The Capital Group Agreement:
(a) The Capital Group Agreement, which authorized and approved certain
economic development incentives pursuant to Chapter 380 and the 2009 Economic Development
Incentives Policy, stated that the economic development incentives applied to a certain tract of
land that was to be acquired by the Capital Group. For clarification, the City hereby establishes
that the referenced tract of land is the tract of land more particularly described as Lot 3, Block 9
of the Verde Enterprise Business Park Unit 6A, recorded as Document Number 11- 006944 in the
Plat Records of Guadalupe County, Texas as shown on the plat thereof set forth on Exhibit "A"
attached hereto and incorporated herein for all purposes.
Section 7. The Eve Care Centers Agreement and The Lone Star Pet Agreement:
(a) The City hereby clarifies, ratifies, and reaffirms that the Eye Care Centers
Agreement and the Lone Star Pet Agreement, which both authorized certain economic
development incentives, were authorized and approved by the City pursuant to Chapter 380 and
the 2009 Economic Development Incentives Policy.
Section 8. The Javallook Agreement:
(a) Although the 2009 Economic Development Incentives Policy was not in
effect at the time that the Javallook Agreement was approved and authorized by the City (and
which agreement the City hereby clarifies, ratifies, and reaffirms was authorized pursuant to
Chapter 380), pursuant to the express reference in the Javallook Agreement to the 2009
50510373.4 - 5 -
Economic Development Incentives Policy, the City Council of the City approved and authorized
an Economic Development Incentives Policy equivalent to the policy contained within the 2009
Economic Development Incentives Policy to be effective as of the date that the Javallook
Agreement was approved and authorized by the City (the "Javallook Program Guidelines ");
(b) To the extent that the Javallook Program Guidelines were not approved
and authorized as of the date that the Javallook Agreement was approved and authorized by the
City, the City Council hereby approves and authorizes the Javallook Program Guidelines to have
been effective as of the date that the Javallook Agreement was approved and authorized by the
City; and
(c) Due to a scrivener's error, Section 1 of Resolution No. ll -R -50 (the
resolution approving the Javallook Agreement) referenced SPV instead of Javallook. The City
Council hereby clarifies that the reference to SPV was a scrivener's error and should have been a
reference to Javallook.
Section 9. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a
part of the judgment and findings of the Council.
Section 10. All ordinances, or parts thereof, which are in conflict or inconsistent with
any provision of this Ordinance are hereby repealed to the extent of such conflict, and the
provisions of this Ordinance shall be and remain controlling as to the matters resolved herein.
Section 11. This Ordinance shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 12. If any provision of this Ordinance or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Ordinance and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
hereby declares that this Ordinance would have been enacted without such invalid provision.
Section 13. It is officially found, determined, and declared that the meeting at which
this Ordinance is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Ordinance, was
given, all as required by Chapter 551, as amended, Texas Government Code.
Section 14. Pursuant to Section 4.09(e) of the City Charter, by vote of not less than
two- thirds of the members of the City Council present at the meeting at which this Ordinance
was first considered, the City Council has determined that an emergency exists which requires
immediate action, and this Ordinance is hereby adopted on a single reading, and this Ordinance
shall be effective upon the date hereof and any publication required by law.
50510373.4 - 6 -
PASSED, APPROVED and ADOPTED ON FIRST AND FINAL READING, the 4th
day of December, 2012.
CITY OF S TZ S
ayor
ATTEST:
City Secretary
(CITY SEAL)
50510373.4 - 7 -
Exhibit "A"
The Capital Group Agreement Property Description
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