1999T08-TAX ABATEMENTAN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, APPROVING A TAX
ABATEMENT AND A TAX ABATEMENT
AGREEMENT BY THE CITY COUNCIL FOR
AND WITH ALAMO HOLLY SALES AND
SERVICE INC., 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 Alamo Holly 8ales & Service Inc., meets those Guidelines
and Criteha, and further finds the terms of the tax abatement agreement listed
at Exhibit 1 are acceptable; and
WHEREAS, the property owned by Alamo Holly Sales & Service Inc.,
described as Lot 1, Block 4, (1.541acres) in the Tri-Countv Business and
Industrial Park, recorded in Volume 5, pages 7a and 7b, of the t~ecords of Deeds
and Plats in Guadalupe County on 26 December 1985; and, is within a State
Enterprise Zone as approved by the Texas Department of Commerce on 11 April,
1995; 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 Alamo Holly Sales
and Service Inc., is approved. The approved rate is 90% for two (2) years and
15% for year 3. Taxes shall be abated on capital improvements only.
THAT, the City Manager is authorized to enter into an agreement, shown as
Exhibit 1, with Alamo Holly Sales and Service Inc.
Approved on first reading the 6 April 1999.
PASSED, APPROVED AND/~? this the _~k//day of
999.
Mayor, City of Schertz, Texas
ATTEST:
City Secretary, City of Schertz
(SEAL OF CFFf)
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 Alamo Holly Sales and Service Inc.,
(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 8chertz Ordinance 98-T-36, 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 8chertz Ordinance 99-T-8, which approves this tax
abatement and agreement and authorizes the execution hereof.
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 the property.
3. Property
a. The real property is described as Lot 1, Block 4, Unit 3, (1.541 acres},
in the Tri-County Business and Industrial Park recorded in Volume 5, pages 7a
and 7b, of the Records of Deeds and Plats in Guadalupe County on 26 December
1985 {hereinafter called the "Property").
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 1998 base year value established by the Guadalupe County
Appraisal District is $97,658.00.
c. The tax account of the Property is 1C3325-3004~00100.
d. A general description of the improvements to be made by the Company
is set out in the basic abatement application.
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, a State Enterprise
Zone, Th-County Business Park, and within Comal County, Texas.
b. The Company represents that the use of the Property is to be as
follows: Sales and Service of Food Processing Equipment.
c. The Company estimates it will make capital improvements
("Improvements") to the Property, which will cost approximately $275,000.00.
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 an approximately 12,000 sq ft building expansion of
the existing Alamo Holly building. The Company represents that the
Improvements to the Property will cost approximately $275,000.00 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.
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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 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, 90% of the entire
assessed value of the new Improvements located on the Property shall be exempt
from ad valorem taxation for a period of two (2) years, and 15% for the third year.
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 three year period (the "Term of this
Agreement") commencing on January 1, 2000 {the "Commencement Date"), and
expiring on the 31 December, 2002 {3rd) 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.
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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) daysafter 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 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 amounts 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:
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To the Company:
If mailed or delivered:
Mr. Gary Palmer
President
Alamo Holly Sales & Service Inc.
6600 Guada Coma Drive
Schertz, Texas 78154
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 rights 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 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 ~3,d. day of ~
199_~.
For Alamo Holly Sales & Service Inc.
~ary Palmer~---
President
State of Texas:
County of ~d,q-~A~/--0?E-
T~r~/~ainstrgg~ent was ackno~tledged lp~fore me on
r ..... , fl/o y ,a
on behalf of said corporation.
_/~p~/g, o~J,, 199~__, by
. ~Z'X./~< ..... corporation,
(SEAL)
Notary Public in and for the
Sta~vf Texas
(Printed Name of Notary)
My commission expires:
ATTEST:
Norma Althouse
City Secretary
Seal of the City
For the City of Schertz, Texas
Ke~'i~j~l~. Sweatt
City Manager
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on ~_~ ~ 199_~, by
Kerry R. 8weatt, City Manager of the City of Schertz, Texas, a m~nicipality 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 Narr~e Of Notary)
My commission expires:
-7-
THE STATE OF TEXAS,
County of Guadalupe
PUBLISHER'S AFFIDAVIT
Before me, the undersigned authorfty, on this date personaJly appeared ~..A. REYNOLDS
k~own
to me, who, being by me duly sworn, on his oath deposes and says that he is the Advertising Director of
The Seguin Gazette-Enterprise, a newspaper published in said county; that a copy of the within and fore-
going AD
was published in sa~d newspaper'
such publications being on the followfng dates:
APRIL 23, 1999
.APRIL 29, 1999
times before the return day named therein,
and a newspaper copy of which is hereto attached.
AN ORDINANCE --
BY THE CITY COUNCIL :IL
OF THE CITY OF )F
SCHERTZ, TEXTS, AP- p.
PROVING- A TAX' ABATE-
I::_
MENT AND A TAX
ABATEMENT AGREE-
MENT BY THE CITY .y
COUNCIL FOR AND D
WITH ALAMO HOLLY
SALES AND SERVICE
INC., A PROPERTY OWN- N-
ER IN THE CITY OF DF
SCHERTZ.
Approved on first reading the the
6th day of April, 1999.
Norma Althouse,
C_ity Secretary_._ ....
Swom to and subscribed before me, this
30th day of
99'
Notary Public, Guadalupe County, Texas
THEE STATE OF TEXAS,
County of Guadalupe
PUBLISHER'S AFFIDAVIT
Before me, the undersigned author~/, on this date personaJly appeared
L.A. REYNOLDS knowrl
to me, who, being by me duly swam, on his oath deposes and says that he is the AdverlJsing Director of
%ne Seguin Gazette-Enterprise, a newspaper published in said county; that a copy of the within and fore-
gcing ~.z) was published in sam newspaper' 2 times before the
return day named therein,
such publicadcns being on the following dates:
APRIL 23, 1999
APRIL 29, 1999
and a newspaper copy of which is hereto attached.
ORDINANCE NO. 99-T-8
BY THE CITY COUNCIL
OF. THE CITY OF
SCHERTZ, TEXAS, AP-
PROVING A TAX ABATE-
MENT AND A TAX
ABATEMENT AGREE-
MENT BY' THE CITY
COUNCIL FOR AND
WITH ALAMO HOLLY
SALES AND SERVICE
INC., A PROPERTY OWN-
ER IN THE CITY OF
SCHERTZ.
Passed, Approved and
Adopted the 20th day of
April, 1999.
Norma AIthouse,
City Secretary.
~,ty ~ecretary.
Swam to and subscribed before me, this 3otb .day of A~'RZL
A.D., 19 99'
Notary Public, Guadalupe County, Texas