2000T09-TAX ABATEMENTORDINANCE NO. ~
AN O RDINANC E
THE CITY OF SCHERTZ, TEXAS,
APPROVING A TAX ABATEMENT AND A
TAX ABATEMENT AGREEMENT BY THE
CITY COUNCIL FOR AND WITH
PROLOGIS TRUST, A PROPERTY
OWNER IN THE CITY OF SCHERTZ,
REPEALING ORDINANCE 99-T-21, AND
DECLARING AN EMERGENCY.
WHEREAS, Section 312 of the Texas Property Tax
municipalities to abate ad valorem taxes under specific Guidelim
and the City of Schertz has adopted specific Guidelines and
these provisions; and,
WHEREAS, the City Council finds that the application fo:
ad valorem taxes by ProLogis Trust meets those Guidelines an.
further finds the terms of the tax abatement agreement listed a
acceptable; and,
WHEREAS, the property owned by ProLogis Trust, desc:
acre tract out of the George Dolson survey No. 96, A-7, City of
County in Volume 411, pp. 848 of the deed records of Comal
and is within a State Enterprise Zone as approved by the Texas
Commerce on 11 April, 1995; and,
WHEREAS, the terms of the tax abatement agreement
substantial long term adverse effect on the provision of the Cil
tax base, and the planned use of the property will not constitr
public safety, health or morals; and,
WHEREAS, timely action is required to assure other taxin
the opportunity to act on a similar measure, NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCH
THAT, the request for abatement of ad valorem taxes by P~
approved. The approved rate is 80% for ten (10) years. Taxes s
on capital improvements only.
Code allows
;s and Criteria,
Criteria under
r abatement of
:1 Criteria, and
t Exhibit 1 are
ribed as a 9.8
gchertz, Comal
2ounty, Texas,
Department of
will cause no
~'s services or
rte a hazard to
.g entities have
ERTZ, TEXAS:
'oLogis Trust is
hall be abated
THAT, the City Manager is authorized to enter into an ag~
as Exhibit 1, with ProLogis Trust.
THAT, this ordinance repeals City of Schertz Ordinance
entirety,
THAT, the need for timeliness requires this ordinance to
an emergency requiring the suspension of the Charter pro
ordinance be passed on the day it is introduced, and such Chin
accordingly suspended and this ordinance is declared to be
measure, and shall take effect and be in full force immediately
its passage on the date shown below.
PASSED, APPROVED AND ADOPTE!2} this the 4th day of April 2
/
Mayor, Ci~ of Scher~, Texas
ATI'EST:
City Secretary, City of Schertz
(SEAL OF CITY)
· eement, shown
99-T-21 in its
be acted on as
vision that no
'ter provision is
an emergency
from and after
)00.
Exhibit 1
Tax Abatement Agreement
1. Parties.
This Tax Abatement Agreement ("Agreement") is made and entered into by and
between the City of Schertz, Texas (hereinafter called the "City' ), and ProLogis
Development Services Incorporated (hereinafter called the "Com' ~any").
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, which establishes thC City of Schertz
Guidelines and Criteria for Tax Abatement and Reinw stment Zones
(hereinafter referred to as the "Guidelines and Criteria").
(3) City of Schertz Ordinance ~_~-T-~.~., 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 t~rovision of City
services or tax base; and,
(2) no hazard to public safety, health, or morals
the planned use of the property.
3. Property
a. The real property is described as a 9.8 acre tract o~t of the George
Dolson survey No. 96, A-7, City of Schertz, Comal County in %"olume 411, pp.
848 of the Deed Records of Comal County, Texas (herein~zfter called the
"Property"). The Property is located in Comal County and Gua.dalupe County,
Texas.
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as the result of
b. Abatements approved will be based on the value of im
out on the real property roll of the Guadalupe County Appraisal
Property. The 1998 base year value established by the Gua
Appraisal District is $123,816.00.
c. The tax account of the Property is unknown at thi
parcels are being combined and re-plated.
d. A general description of the improvements to be
Company is set out in the basic abatement application.
4. Company Representations and Estimates.
a. The Company represents they are the owners in fe
Property. The Property is located within the City of Schertz,
Zone, Tri-County Business Park, and within Comal County
County, Texas.
b. The Company represents that the use of the Prop,
follows: Lease of space to tenants that meet the zoning require
Manufacturing.
c. The Company represents it will make capital
("Improvements") to the Property, which will cost
$5,600,000.00.
d. The Company estimates that a minimum of fifty (50)
created in the City of Schertz, in connection with the operatior
the Property, and estimates that these new jobs will have an ax
the approximate amount of $1,300,000.00 in facilities local
Texas.
e. The Company represents that no interest in the Prope
held by or leased by and covenants that it shall not sell or lease
the Property to, a member of the City Council of the City, th
Zoning Commission of the City, the Economic Development Dep
other City officer or employee as long as this agreement is in eff¢
5. Terms of the Agreement.
This Agreement is conditioned on the Company making
improvements to the Property (hereinafter referred to as the"
and fulfilling the following covenants:
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provements set
District for the
.dalupe County
s time, several
made by the
e simple of the
tate Enterprise
tnd Guadalupe
;rty is to be as
ments for Light
improvements
approximately
2ew jobs will be
.s of tenants on
~nual payroll in
:ed in Schertz,
~rty is presently
any interest in
Planning and
artment, or any
:ct.
the following
Improvements")
a. Construction of an approximately 160,000-sq. ft buil
office spaces. The Company covenants and agrees that the Im'
be completed during the term of the tax abatement.
b. The Company estimates that a minimum of fifty (50)
positions will be created in the City of Schertz with the operatio~
the Property within one year of the Commencement Date (defin,
tax abatement. Any permanent jobs created after the date of e:
Agreement shall be considered a new permanent position for 1:
Agreement.
c. The location of the Improvements is more particularl!
site plan approved by the City of Schertz Planning and Zoning C
d. The Company covenants and agrees that all Improw
all times comply with all applicable City building codes a:
including, but not limited to, flood, subdivision, building, elect~
fire and life safety codes and ordinances, as amended. Furthe
covenants to maintain the Improvements in compliance with a
codes and ordinances, and in a neat attractive condition with
area described in the site plan approved by the Plannit.
Commission of the City.
e. The Company agrees to pay all ad valorem taxes on tl
on personal property in a timely manner, whether assessed by
other tax jurisdiction.
f. The Company agrees to furnish the Chief Tax Apprais¢
County with information outlined in Chapter 22, V.A.T.S.
amended, as may be necessary for tax abatement and for apprai
g. The Company agrees to allow inspection of the Prop~
Manager, or a designee. Such inspection shall be to determine
conditions of the Agreement are being met and for the purp
compliance with applicable City Codes and ordinances. Inst
made only after giving a minimum of 24 hours notice and will
such a manner as to not unreasonably interfere with the o
Property.
h. The Company agrees that the payroll for permanent e
City at the Property will be approximately $1,300,000.00 throt
of the tax abatement.
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ding, including
)rovements will
new permanent
s of tenants on
,~d below)of the
lecution of this
,urposes of this
described in a
ommission.
;ments shall at
~d ordinances,
'ical, plumbing,
?, the Company
1 such building
the landscaped
~g and Zoning
~e Property and
the City or any
,~r of Guadalupe
Tax Code, as
.sal purposes.
~rty by the City
.f the terms and
>se of assuring
)ections will be
)e conducted in
~eration of the
mployees in the
~ghout the term
i. The Company agrees annually to certify in writing its c
the terms of this Agreement, which certification shall be filed bjy
the City of $chertz of each year during the term of the tax ab~
danuary 15 of the year following the term of the tax abatement.
j. In the event the Company leases all or part of the ImF
third party, the Company agrees that all benefits accrued from
are to be passed on to the lessee{s) in a pro rata share.
k. In the event the Company leases all or part of the Im[
third party, the Company agrees that the terms in paragraphs
related to the number of jobs, and payroll shall remain in effec
fails to maintain such requirements, the tax abatement shal
subject to Section 7.
6. Terms for the Tax Abatement.
a. Provided that the Company complies with its ob:
Section 5 of this Agreement throughout the period of the tax ab~
the entire assessed value of the capital Improvements located
shall be exempt from ad valorem taxation for a period of ten (10'~
b. No abatement of taxes shall be granted as to personal
Company installed or maintained within the Property.
c. The abatement shall be for a ten year period (th,
Agreement") commencing on January 1, 2000 (the "Comme~
and expiring on the 31 December, 2009 (10th) anni~
Commencement Date. Additionally, during the Term of this
City agrees not to impose any other taxes or assessments that
be in lieu of ad valorem taxes on the Company, the P~
Improvements.
d. The Company shall pay all ad valorem taxes due ¢
value of the Property prior to the beginning of the tax abatemenl
e. The Company and/or the lessee shall have the right
contest any or all appraisals or reassessments of the P~
Improvements, and the tax abatement provided for herein fo~
shall be applied to the amount of taxes finally determined, as
protest or contest, to be due for such property.
-4-
ompliance with
danuary 15 to
.tement and by
,rovements to a
this abatement
~rovements to a
., and h. above
t. If the lessee
1 lapse and be
ligations under
ttement, 80% of
>n the Property
years.
property of the
= "Term of this
xcement Date"),
'ersary of the
Agreement, the
are intended to
· operty, or the
,n the assessed
to protest and
operty, or the
such property
result of such
7. Default/Recapture.
a. If the Company refuses or neglects to comply with any
this agreement or, if any representation made by the Ce
Application for Tax Abatement (or this Agreement) is false or mi
material respect and such refusal or default is not cured within
after notice, this Agreement may be terminated by the City.
b. In the event the Company allows ad valorem taxes on
become delinquent and fails to timely and properly follow the h
for their protest and/or contest, this agreement may be terminal
c. In the event the City determines the Company to be ix
Agreement, the City will notify the Company in writing at the ac
Section 8 of this agreement. If the defaults specified w
particularity in such notice are not cured within sixty days fr
such notice, then this Agreement may be terminated upon writt
Company. The city may agree to extend the cure period for an
(60) days upon written request by the Company.
If the City terminates this agreement, taxes without abatement
the year in which termination occurred and shall accrue withou
all tax years thereafter. However, there shall be no recaptur~
taxes abated by virtue of this Agreement.
d. If during the tax abatement period all operations by
Property are discontinued for a period of at least 180 consecuti'
if due to a casualty, condemnation, or other force majeure eve
City shall by Ordinance adopted by the City Council have
recapture 100% of the taxes abated in prior years and the yem
discontinuance occurs; and (ii) terminate this agreement; pr
the City shall first provide the Company with notice and n
(following such 180 day period) to cure such discontinuance of
to either recapturing any taxes or terminating this Agreemenl
this paragraph.
e. A total bill for any amounts due under Section 7c.
hereof will be sent to the Company and the Company agrees
amount within sixty days after receipt. Penalty and interest x
accrue until the company has failed to pay any of the amount
the tax roll within sixty days after receipt of the bill, unles
satisfactory to the City and the Guadalupe County Tax Assesso~
been made.
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of the terms of
mpany in the
sleading in any
sixty (60)days
the Property to
,~gal procedures
:ed by the City.
~ default of this
.dress stated in
ith reasonable
'om the date of
en notice to the
additional sixty
will be due for
t abatement for
of prior years'
tenants at the
~e days, (except
',nt(s)), then the
the right to (i)
in which such
~vided however
inety (90) days
~perations prior
as set forth in
or Section 7d.
~o pay the total
rill not begin to
placed back on
~ arrangements
/ Collector have
8. Notice.
All notices shall be in writing, addressed to the Company or
following addresses. If mailed, any notice or communication s
to be received three days after the date of deposit in the Unit
certified mail, return receipt requested, postage prepaid and prc
for delivery. Unless otherwise provided in this agreement, all ~
delivered to the following address:
To the Company:
If mailed or delivered:
ProLogis Development Services Incorporated
Property Management
3453 IH-35 North, Suite 109
San Antonio, Texas 78219 Ph. (210} 212-9292
With copy to:
ProLogis Development Services Incorporated
Attn: David Daniel
14100 E. 35th Place
Aurora, Colorado 80011 Ph (303) 375-9292
And a copy to:
Mayer, Brown & Platt
Attn: Ronald M. Shoss
700 Louisiana, Suite 3600
Houston, Texas 77002
Ph (713) 546-0504
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 repre:
Agreement has been approved by affirmative vote of a majority
of the Schertz City Council at a regularly scheduled meeting.
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the City at the
hall be deemed
ed States Mail,
,perly packaged
~otices shall be
sents that this
of the members
10. Assignment. This agreement may be assignable to a new
the City's consent provided (i) the net worth of the as
$25,000,000.00 or a lesser amount with the City's consent (ii
primary business is ownership, operating and managing real p~
Company certifies to the good reputation of the assignee; and (:
assumes the Company's obligation under this agreement. Fai
above provisions, this agreement may be assignable to a new c
prior approval of the Schertz City Council at a regularly sch¢
The Company shall notify the City of any assignment within thir
11. General Provisions. This agreement is entered into subject
the holders of outstanding bonds of the City. If the holders
bonds of the City exercise any of their rights so as to diminisl
benefits of this Agreement, the City agrees to work with the C,
establishing an alternative agreement with terms similar to this
considering any bondholders' rights.
12. Severability. In the event any section, subsectk
subparagraph, sentence, phrase or word herein is held inv
unenforceable, the balance of the Agreement shall stand, shall
and shall be read as if the parties intended at all times to del
section, subsection, paragraph, subparagraph, sentence, phra
such event there shall be substituted for such deleted provisio~
similar in terms and in effect to such deleted provision as ma~.
and enforceable.
13. Estoppel Certificate. Either party hereto may reque~
certificate from another party hereto so long as the certificate
connection with a bona fide business purpose. The certit
requested, will be addressed to a subsequent purchaser or
Company, shall include, but not necessarily be limited to, state
Agreement is in full force and effect without default, if such
remaining term of this Agreement, the levels of tax abatemer.
such other matters reasonably requested by the party(ies)
certificate.
14. Applicable Law. This Agreement shall be construed un,
State of Texas and is performable in Comal County and Gua
Texas.
15. Binding on Successors and Assigns. This agreement wil
and inure to the benefit of the parties hereto and their respe~
and permitted assigns.
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owner without
signee is over
the assignee's
.'operty; (iii)the
iv) the assignee
ling any of the
.wner only with
.duled meeting.
ty (30) days.
to the rights of
of outstanding
~l the effects or
)mpany toward
Agreement and
n, paragraph,
~lid, illegal, or
be enforceable
ere said invalid
se or word. In
~ a provision as
~ be valid, legal
~t an estoppel
is requested in
icate, which if
assignee of the
ments that this
.s the case, the
t in effect, and
to receive the
der laws of the
dalupe County,
be binding on
rive successors
16. Date.
originals, each having full force and effect on
ATTEST-
Norma Althouse
City Secretary
Seal of the City
STATE OF COLORADO
COUNTY OF ADAMS
This agreement has been executed by the part:
For The Company
ProLogis Deve~o~ent Servl;~, IncTorated
By:
Name' David B. Daniel
Title First Vice President
For the CITY OF SCHERTZ
City Manager
This instrument was acknowledged before me on Marct
2000, by David B. Daniel, First Vice President of ProLog
Services Incorporated, a Delaware corporation, on
corporation.
-~-:~y ' in ar~c~ for the -
State of Colorado
(Prlint~d'lqame' ~)f Notary)
My commission expires:0~'18'2c~)~'
.es in multiple
2000.
-8-
is Development
>ehalf of said
THE STATE OF TEXAS
COUNTY OF GUADALUPE
This instrument was acknowledged before me on ~
Kerry R. Sweatt, City Manager of the City of Schertz, Texas
and body politic formed under the laws of the State of Tex
said municipality.
(SEAL)
Notary Public in and for the
State of Texas
(Printed Name of Notary)
My commission expires'
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_~rl,, 2000, by
a municipality
~s, on behalf of
PUBLISHER'S AFFIDAVIT
THE STATE OF TEXAS,
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
known to me, who, being by me duly sworn, on his oath deposes and ss
Publisher of The Seguin Gazette-Enterprise, a newspaper published in
a copy of the within and foregoing notice was published in said newspa
before the return day named therein, such publications being on the foil
L. A. Reynolds,
ys that he is the
;aid county; that
~er 2 times
)wing dates'
Gazette-Enterprise April 11,2000
PennySaver April 13, 2000
and a newspaper copy of which is hereto attached.
Sworn to and subscribed before me this , day of April, A.D., 2000
Notary Public, Guadalu e County, Texas