R-10-11-09-10B1 - 11/9/2010RESOLUTION NO. R -10-11-09-10B1
WHEREAS, South Education — Texas LLC ("South Education") is a leading higher education
entity, and
WHEREAS, South Education has expressed to the City of Round Rock ("City") its desire to
locate a branch university in the City which will provide new jobs, as well as education opportunities
for future job seekers, and
WHEREAS, §380.001 Local Government Code provides that a municipality may establish a
program ("Program") to promote local economic development and to stimulate business and
commercial activity in the municipality, and
WHEREAS, the City Council has determined that the Program described in Exhibit "A" will
meet the goals set forth in said §380.001 and will be of mutual benefit to both parties, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the City offers to South Education a §380.001 Program in exchange for South Education
locating a branch university in the City of Round Rock, and
BE IT FURTHER RESOLVED
That the offer of the Program shall be as generally outlined in Exhibit "A" attached hereto and
incorporated herein for all purposes.
The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was
open to the public as required by law at all times during which this Resolution and the subject matter
hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
O:\wdox\SCClnts\0112\ 1005\MUNICIPAL \00207000. DOC
RESOLVED this 9th day of November, 2010.
AL N MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
SARA L. WHITE, City Secretary
EXHIBIT A
The terms of the §380.001 Program to be offered to South Education in exchange for South
Education 's locating its branch university in the City of Round Rock are as generally outlined below:
1. The City agrees to make program payments to South Education calculated on the basis
of an agreed upon portion of the property tax revenues actually received by the City for
the leased space that South Education occupies, plus 100% of the personal property tax
paid by South Education.
2. The term of the Program shall terminate on December 31, 2014.
3. The terms and provisions of the Program will be set out in more detail in the Economic
Development Program Agreement of even date herewith.
3
ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY
Mayor
Alan McGraw
Mayor Pro -Tem
Carlos T. Salinas
Councilmembers
Rufus Honeycutt
George White
Joe Clifford
John Moman
Kris Whitfield
City Manager
James R. Nuse, P.E.
City Attorney
Stephan L. Sheets
July 16, 2010
Dear Mr. Glatz,
The City of Round Rock is pleased to submit a response to Project Oak. We are
encouraged by your interest in our community and the existing commercial office,
LEED Certified building in Frontera Vista. This location offers a very favorable site
with convenient access to the airport and all sections of the Austin Metro area.
The proposal we are prepared to submit to our City Council is very straight forward
and contains two components for the prospect. First, Round Rock is prepared to
offer a cash program payment equal to three years of ad valorem tax abatement for
the pro rata share of the taxes paid for the real estate occupied in Frontera Vista.
This payment would occur in January and would reflect the actual taxes paid on
square feet occupied. These payments fall under Section 380 of the Texas Local
Government Code which authorizes cities to establish economic development
programs that may include such payments.
Second, Round Rock is prepared to offer a building permit fee waiver for all tenant
finish out.
The tenant finish out permit varies in cost due to the amount and complexity of the
improvements. In addition, we pledge to expedite the approval process of your
permit and will do everything we can to ensure a smooth transition into your new
facility.
We look forward to sitting down with the prospect to work out the details and the
timing of formalizing the agreement before submitting to the City Council. Please
feel free to contact me at 512-218-5410 or Charley Ayres at 512-921-1972 if you
have any questions.
incerely,
ame
City
R. Nuse, P.E.
nager
Cl of Round Rock, Texas
CITY OF ROUND ROCK ADMINISTRATION DEPARTMENT, 221 East Main Street. Round Rock, Texas 78664
Phone 512.218.5410 • Fax 512.218.7097 • www.roundrocktexas.gov
ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY
Agenda Item No. 1081.
Ci Council Agenda Summary Sheet
Consider a resolution approving an Economic Development Program to encourage South
Agenda Caption: Education — Texas LLC to locate a branch university in Round Rock
Meeting Date: November 9, 2010
Department: Administration
Staff Person making presentation: Cindy Demers
Assistant City Manager
Item Summary:
The City of Round Rock is prepared to establish an Economic Development Program with South University in
exchange for locating a branch university in the City. Two components of this program are a cash payment equal to
three years of ad valorem tax abatement for the pro rata share of the taxes paid for the real estate and personal
property occupied in Frontera Vista and a building permit fee waiver for all tenant finish out.
Authority for entering into an agreement of this type is provided by Section 380 of the Local Government Code. A
requirement of Section 380 is the establishment of a program to promote local economic development and to
stimulate business and commercial activity in the municipality.
Strategic Plan Relevance:
16.0 — Develop financial capital needed to support business growth and development, and improve the financial
advantages of operating in the City.
Cost: N/A
Source of Funds: N/A
Date of Public Hearing (if required): N/A
Recommended Action: Approval