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93-T-24 TAX ABATEMENTORDINANCE NO. Q -- 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 provisions; 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, 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 Mr. Rex Bornmann is approved. The approved rate is 26 %; and, THAT, the City Manager is authorized to enter into an agreement, shown as Exhibit 1, with Mr. Rex Bornmann. Approved on first reading the 7th day of December, 1993 PASSED, APPROVED AND ADOPTED this the A_day of 1993. yor, City of T'chertzWTexas ATTEST: cretary, 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 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 -24, which establishes the City of Schertz Guidelines and Criteria for Tax Abatement and Reinvestment Zones. (3). City of Schertz Ordinance 92 -T -16, establishing the Pecan Drive Reinvestment Zone which encompasses the property described below. (4). City of Schertz Ordinance, 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 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 on the 1993 rolls of the Guadalupe County Appraisal District for the Property. The 1992 base year value is $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 $316,725.00. 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. e. The Owner agrees and assures that Capital Improvements to the property will exceed $316,725.00, and that such improvements will be completed in calendar year 1994. f. Other Taxing Entities. Other taxing entities are encouraged to provide abatements as listed below. Should other taxing entities elect to adopt this agreement, item 6a(2) is optional. 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; (1) a 16% abatement of Cities ad valorem taxes based capital improvements made on the property. sz (2) a 10% abatement of ad valorem taxes as a result of being a business based in the City of Schertz. (3) The total abatement authorized is 26 %, and will be assess against the NEW capital improvements to the property. b. The period of the abatement will be six years. The period shall begin on 1 January, 1994, and continue until 31 December, 1999. 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 City at the following communication shall be the date of deposit otherwise provided in delivered to the follow To the Owner: writing, addressed to the Owner or the addresses. If mailed, any notice or deemed to be received three days after in the United States Mail. Unless this agreement, all notices shall be ing address: -If mailed or personally delivered: Mr. Rex Bornmann 124 Pecan Drive Schertz, Texas 78154 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. 10. Assignment This agreement may be assignable to a new owner only with City Council approval as reflected in a duly adopted City Ordinance. Q= 11. Date This agreement has been executed by the parties in multiple originals, each having full force and effect on this the 3 day of �� �,�k 1993. OWNER: Rex Bornmann State of Texas County of This instrument was acknowledged before me on 1) &r c-M t,V*ra 3 , 1993, by Rex Bornmann . .TUNE G. KRA.U}S CITY OF SCHERTZ Ker y R Sweatt Cit ager ATTEST: gneK ause ty Secretary Seal of the City -5- ary Public in and for the to of Texas