R-89-1263 - 4/13/1989WHEREAS, the City Council of Round Rock, Texas, on the 9th of
February, 1989 in Ordinance No. 2393, created the Reinvestment Zone
No. One, City of Round Rock, Texas, and
WHEREAS, in accordance with Chapter 312, Tax Code, V.A.T.S. as
amended, the City desires to enter into a tax abatement agreement
with Texas Nuclear Corporation regarding property located in said
Reinvestment Zone, Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized to sign on behalf of the
City the Tax Abatement Agreement attached hereto and incorporated
herein for all purposes.
RESOLVED this 13th day of April, 1989.
ATTEST:
C42RESREINV
LAND, City Secretary
RESOLUTION NO. /Z3'-
MIKE ROBINSON, Mayor
City of Round Rock, Texas
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
This Tax Abatement Agreement ( "Agreement ") is entered into by
and between the City of Round Rock, Texas, a home rule city and
Municipal Corporation of Williamson County, Texas, duly acting herein
by and through its Mayor, hereinafter referred to as "City "; the
Round Rock Independent School District, duly acting herein by and
through its President of the Board of Trustees, the County of
Williamson, Texas, duly acting herein by and through its County
Judge, hereinafter referred to collectively as "Taxing Units "; and
Texas Nuclear Corporation, duly acting by and through its President
or any Vice President, hereinafter referred to as "Owner ".
the
W I T N E S S E T H:
WHEREAS, on the 9th day of February, 1989, the City Council of
City of Round Rock, Texas, passed Ordinance No. 2393 establishing
Reinvestment Zone
commercial /industrial
"Ordinance No. 2393 ", as authorized by Chapter 312, Tax Code,
V.A.T.S. as amended,
WHEREAS, the
Ordinance adopted appropriate
TAX ABATEMENT AGREEMENT
No. One, City of Round Rock, Texas for
tax abatement, hereinafter referred to as
hereinafter referred to as the "Code "; and
City has adopted Ordinance Number 2391, which
guidelines and criteria governing
reinvestment zones and tax abatement agreements to be entered into by
the City as contemplated by the Code; and
TCTAXABATE
WHEREAS, in order to maintain and /or enhance the
commercial /industrial economic and employment base of the Round Rock
area to the long term interest and benefit of the City and Taxing
Units, in accordance with Ordinance No. 2391 and the Code; and
WHEREAS, the contemplated use of the Premises, as hereinafter
defined, the contemplated improvements to the Premises in the amount
as set forth in this Agreement and the other terms hereof are
consistent with encouraging development of said Reinvestment Zone No.
One in accordance with the purposes for its creation and are in
compliance with Ordinance No. 2391 and the guidelines and criteria
adopted by the City and all applicable law; and
WHEREAS, the Improvements as defined below constitute a major
investment within Reinvestment Zone No. One that will substantially
increase the appraised value of property within the zone and will
contribute to the retention or expansion of primary and secondary
employment within the City and Taxing Units; and
WHEREAS, the City finds that there will be no substantial
adverse affect on the provision of city services or on its tax base
and the planned use of the Premises will not constitute a hazard to
public safety, health, or welfare, Now Therefore, the parties hereto
do mutually agree as follows:
1. The property to be the subject of this Agreement shall be
that property described by metes and bounds and map attached hereto
as Exhibit "A" and made a part hereof and shall be hereinafter
referred to as "Premises ".
2.
2. The Owner shall promptly commence construction of its
facility, described in Exhibit "B" on the Premises (hereinafter
referred to as "Improvements ") with total construction cost of
approximately Two Million Seven Hundred Thousand and No /100 Dollars
($2,700,000.00) and to be substantially complete on or about March 1,
1990; provided, that Owner shall have such additional time to
complete the Improvements as may be required in the event of "force
majeure" if Owner is diligently and faithfully pursuing completion of
the Improvements. For this purpose, "force majeure" shall mean any
contingency or cause beyond the reasonable control of Owner
including, without limitation, acts of God or the public enemy, war,
riot, civil commotion, insurrection, governmental or de facto
governmental action (unless caused by acts or omissions of Owner),
fires, explosions or floods, and strikes. The date of completion of
the Improvements shall be defined as the
Occupancy is issued by the City of Round Rock.
3. The
faithfully in
the
Agreement.
Improvements as
of the Improvements
consideration,
Occupancy is
date a Certificate of
Owner agrees and covenants that it will diligently and
a good and workmanlike manner pursue the completion of
a good and valuable consideration of this
Owner further covenants and agrees that all construction
will be in accordance with all applicable state
and local laws and regulations or valid waiver thereof. In further
Owner shall thereafter, from the date a Certificate of
issued until the expiration of this Agreement,
3 .
continuously operate and maintain the Premises as the TN Corporation
Facility of the Texas Nuclear Corporation.
4. The Owner agrees and covenants that the TN Corporation
Facility shall provide employment according to the following
accumulative schedule:
Upon completion - 190 jobs
By
By
By
By
December
December
December
December
31, 1990
31, 1991
31, 1992
31, 1993
- 200
- 210
- 215
- 240
jobs
jobs
jobs
jobs
The Owner shall provide to the City and Taxing Units annual manpower
reports within sixty (60) days following the end of each calendar
year.
Regardless of anything contained herein to the contrary, the
failure by Owner to provide the number of jobs set out in the above
schedule shall not be considered an event of default as defined in
paragraph 6 below unless the number of
than
the actual number of jobs
than the
then the percentage of tax abatement
provided in paragraph 11 below shall be
tax abatement shall be reduced by the same
number of jobs are less than the scheduled
illustration, if the schedule requires 100
seventy -five percent (75 %) of number set out in
provided at the end of
provided is less
the schedule. If
any year is less
jobs actually
scheduled number but is seventy -five percent (75 %) or more,
for the following year as
reduced. The percentage of
percentage that the actual
number of jobs. By way of
jobs by December 31, 1989,
4.
but only 90 jobs are provided, then the tax abatement for 1990 shall
be reduced from 100% to 90 %. If the schedule requires 200 jobs by
December 31, 1993, but only 160 jobs are provided, then the tax
abatement for 1994 shall be reduced from 25% to 5 %.
By way of clarification, failure to provide at least
seventy -five percent (75 %) of the number of jobs shown on the above
schedule shall be considered an event of default of this Agreement.
5. The Owner agrees and covenants that the TN Corporation
Facility shall contain taxable personal Property and equipment with
an assessed value of not less than Three Million Five Hundred
Thousand and No /100 Dollars ($3,500,000.00) by March 1, 1990. Owner
shall provide to the City and Taxing Units a statement of the value
of taxable personal property and equipment within sixty (60) days
following completion of the facility. The City and /or Taxing Units
shall have the option of conducting an appraisal by an appraiser
acceptable to City and /or Taxing Unit to verify the value of said
property and equipment. If the value determined is one hundred and
five percent (105 %) or more of the value certified by the Owner, then
the Owner shall bear the cost of the appraisal; otherwise the cost
shall be born by the City or Taxing Unit requesting such appraisal.
6. In the event that (1) the Improvements for which an
abatement has been granted are not completed in accordance with this
Agreement or (2) Owner allows its ad valorem taxes owed the City
5.
and /or Taxing Units to become delinquent and fails to timely and
properly follow the legal procedures for protest and /or contest of
any such ad valorem taxes;
conditions of this Agreement, then
default. In the event that the Owner
(1), (2), or (3) above, then the City or Taxing Units shall give the
Owner written notice of such default and if the Owner has not cured
such default within thirty (30) days of said written notice, or, if
such default cannot be cured by the payment of money and cannot with
due diligence be cured within a 90 -day period owing to causes beyond
the control of the Owner, this Agreement may be terminated by the
City or Taxing Unit. Notice shall be in writing and shall be
delivered by personal delivery or certified mail to:
TN Corporation
2555 N. IH -35
Round Rock, Texas 78664
damages in the event of default and in accordance with
As liquidated
Section 312.205
otherwise would
the benefit of
abatement (but
interest will be charged at the
as determined by Section 33.01 of
the City and Taxing Units and
or (3) Owner breaches any of the terms or
this Agreement shall be in
defaults in its performance of
, Tax Code, V.A.T.S., as amended, all taxes which
have been paid to the City and Taxing Units without
6.
without the addition of penalty;
statutory rate for delinquent taxes
the Tax Code) will become a debt to
shall be due, owing and paid to the
City and Taxing Units within sixty (60) days of the expiration of the
above mentioned applicable cure period as the sole remedy of the City
and Taxing Units. The City and Taxing Units shall have all remedies
for the collection of the recaptured tax revenue as provided
generally in the Tax Code for the collection of delinquent property
taxes. The parties acknowledge that actual damages in the event of
default and termination would be speculative and impossible to
determine.
7. The City and the Taxing Units each represent and warrant
that the Premises does not include any property that is owned by a
member of their respective councils or boards, agencies, commissions,
or other governmental bodies approving, or having responsibility for
the approval of, this Agreement.
8. The terms and conditions of this Agreement are binding upon
the successors and assigns of all parties hereto. This Agreement
cannot be assigned by Owner unless written permission is first
granted by the City and Taxing Units, which permission shall not be
unreasonably withheld. Regardless of
written notice to City and Taxing Units, subject to the provisions
below. Any assignment shall provide that the assignee shall
irrevocably and unconditionally assume all duties and obligations of
the assignor as set out in the agreement. No assignment shall be
approved if the assignor or assignee are indebted to the City or
Taxing Units for ad valorem taxes or other obligations.
9. It is understood and agreed between the parties that the
the foregoing, it is agreed
that Owner shall have the right to assign this agreement
to Crow - Gottesman - Hill
7.
upon thirty (30) days
owner, in performing its obligations hereunder, is acting
independently, and the City and Taxing Units assume no
responsibilities or liabilities in connection therewith to third
parties. Owner agrees to indemnify and hold City and Taxing Units
harmless from any and all kinds of claims, losses, damages, injuries,
suits, or judgments.
10. The Owner further agrees that the City and Taxing Units,
their agents and employees, shall have reasonable right of access to
the Premises to inspect the Improvements in order to insure that the
construction of the Improvements are in accordance with this
Agreement and all applicable state and local laws and regulations or
valid waiver thereof. After completion of the Improvements, the City
and Taxing Units shall have the continuing right to inspect the
Premises to insure that the Premises are thereafter maintained and
operated in accordance with this Agreement.
11. Subject to the terms and conditions of this Agreement, and
subject to the rights and holders of any outstanding bonds of the
City and Taxing Units, a portion of ad valorem real property taxes
from the Property otherwise owed to the City and Taxing Units shall
be abated. City and Taxing Units hereby acknowledge that they are
not aware of any terms or conditions of any outstanding bonds which
would invalidate this Agreement. Said abatement shall be an amount
equal to the below- stated percentages assessed upon the increased
value of the Property and Improvements over the value in the year in
which this Agreement is executed, in accordance with the terms of
8.
this Agreement and all applicable state and local regulations. The
percentage of abatements are as follows:
Year 1990 100% abatement
Year 1991 100% abatement
Year 1992 75% abatement
Year 1993 50% abatement
Year 1994 25% abatement
These abatements shall be for five years beginning January 1,
1990.
12. The Owner agrees and covenants that the attached
application for tax abatement (Exhibit "C ") is a part of this
agreement, and Owner further warrants that the information provided
in that application is true and correct and that any materially false
or misleading information that is provided to the taxing
jurisdictions may be grounds for termination of the agreement with
possible liability for recovery of abated taxes.
13. It is understood and agreed by the City, Taxing Units, and
the Owner that if the Premises has been designated and taxed as
agricultural land pursuant to Chapter 23, Subchapter C, Tax Code,
V.A.T.S., that this Agreement shall not be effective and no abatement
granted until Owner has removed the agricultural use designation and
all taxes due pursuant to Section 23.55, Tax Code, V.A.T.S., as
amended, (roll back taxes) have been paid.
14. This Agreement was authorized by Resolution of the City
Council at its council meeting on the 13 day of O n
9.
19 Y c k , authorizing the Mayor to execute the Agreement on behalf of
the City.
15. This Agreement was authorized by the Board Minutes of the
Round Rock Independent School
� District at its Board of Trustees
meeting on the c, /
�14 day of `,1,101; fi , 1929, whereupon it was
duly determined that the Board President would execute the Agreement
on behalf of the Round Rock Independent School District.
16. This Agreement was authorized by the minutes of the
Commissioners Court of Williamson County, Texas, at its meeting on
the Y1 day of E1J.4 , 19'_, whereupon it was duly
determined that the County Judge would execute the Agreement on
behalf of Williamson County.
17. This Agreement was entered into by Texas Nuclear
Corporation pursuant to authority granted by its Board of Directors
on the 15th day of March , 1989 , whereby the President was
authorized to execute this Agreement on behalf of Texas Nuclear
Corporation, a copy of which authorization is attached hereto as
Exhibit "D ".
18. This shall constitute a valid and binding Agreement between
the City and Texas Nuclear Corporation when executed in accordance
herewith, regardless of whether any other Taxing Unit executes this
Agreement. If a Taxing Unit executes this Agreement, this shall
constitute a valid and binding Agreement between such Taxing Unit and
Texas Nuclear Corporation when executed on behalf of said parties,
10.
for the abatement of such Taxing Unit's taxes in accordance
therewith.
19. This Agreement is performable in Williamson County, Texas.
Witness our hands this X14 day of
ATTEST:
J•f nne Land, City Secretary
APP D AS TO FORM:
Stephan L. Sheets,
City ttorney
ATTEST:
APPROVED AS TO FORM:
Attorney for Round Rock
Independent School District
ATTEST:
APPROVED AS TO FORM:
Attorney for Williamson County
11.
1931.
CITY O O , TEXAS
By:
Mike Robinson,
Mayor
ROUND ROCK INDEPENDENT SCHOOL
DISTRICT
COMMISSIONERS COURT OF
WILLIAMSON COUNTY
By
n
ATTEST:
APPROVED AS TO FORM:
Attorney for Texas Nuclear
Corporation
12.
TEXAS NUCLEAR CORPORATION
By: r • ✓ A.A I X ,S19
Jo lson, i President
EXHIBIT "A"
Property Description
Lot 1, Block A, Amanda Subdivision, a Subdivision
in Williamson County, Recorded in Cabinet J, Slides
221 -222, Plat Records, Williamson County, Texas.
EXHIBIT "B"
Description of Improvements
To Be Constructed
70,000 square foot manufacturing, warehouse and office expansion, modernize
existing buildings (approximately 24,000 sq. ft.) and modify site for new
facility.
II. PROJECT INFORMATION:
C. Current assessed value:
Sae Item G.
EXHIBIT "C"
APPLICATION FOR TAX ABATEMENT
This is to certify that the statements contained herein are true and correct.
The signers hereof are authorized to make these statements on behalf of the
applicant. The filing of this document acknowledges familiarity and conformance
with guidelines and criteria for granting tax abatement. This application will
become part of the agreement which shall be enforceable and binding on the
applicant. False representations will be grounds for terminating the agreement.
Any such false statements shall be considered a default which renders the
agreement void. This application should be filed with the City Manager of the
City of Round Rock, 221 East Main Street, Round Rock, Texas 78664.
I. APPLICANT INFORMATION: Date February 28. 1989
A. Company Name
Texas Nuclear Corporation
B. Address
9101 Research Blvd.. Austin. Texas 78758
A. Description of area to be designated as reinvestment zone:
(attach map)
Lot 1, Block A. 9.38 acre tract of land. being part of a 55.55
acre tract located in David Curry Survey. Abstract 130. Williamson
County. Texas.
B. Description of eligible improvements (real property) to be
constructed:
65.000 to 75.000 square foot manufacturing, warehouse and
office expansion.
D. Estimated value of eligible improvements:
$2.7 million to $3.2 million
E. Description of ineligible (taxable) property to be included in
project:
Office furniture. lathes. test equipment. laboratory
equipment and other manufacturing equipment
F. Estimated value of ineligible property:
$3.5 million
G. Estimated value of site as of January 1 preceding abatement
agreement:
(1) Land $653.749
(2) Improvements $418.622
(3) Personal Property -
H. This project is:
( )
(x)
( )
A New Plant
An Expansion
A Modernization
If Modernization:
Estimated economic life of existing plant:
Added economic life from modernization:
I. Tax abatement requested:
100 % of eligible property for year
100 % of eligible property for year
75 % of eligible property for year
50 % of eligible property for year
25 % of eligible property for year
III. ECONOMIC INFORMATION:
A. Construction Estimates:
(1) Commencement Date:
(2) Completion Date:
(3) Number of Construct
B. Estimated number of jobs
1. December 31, 1982*
2. December 31, 1922
3. December 31, 19$1
4. December 31, 193
5. December 31, 1992
*Upon completion
Page Two of Exhibit "C"
1.
2.
3.
4.
5.
to be created:
Local Transfer
190
195 5
204 6
207 8
230 10
NA
NA
Mav /June . 1989
December /January . 1989/90
ion Jobs: Unknown
Total
190
200
210
215
240
years
Years
C. Other estimated taxes generated by project:
(1) Sales Taxes: Sales & Use Taxes - $60K /vear
(2) Other (Identify): Construction related - $100.000
D. The proposed reinvestment zone is located in:
(1) City: Round Rock
(2) County: Williamson
Si e of Authorized Company Official
John Nelson. President
Name and Title of Authorized Company Official
Company Representative to be contacted:
Name
Title
Address
Telephone
(3) School District: Round Rock Independent School District
(4) Other Taxing Jurisdiction: Brushy Creek Water Control
Improvement District
Richard Chilinski
Chief Financial Officer
9101 Research Blvd.. Austin. Texas 78758
(512) 836 -0801
Page Three of Exhibit "C"
Upon receipt of the application, the City of Round Rock may also require copies
of the latest annual stockholders report, audited financial statements, bank
reference, and any other information required to evaluate the application.
STATE OF TEXAS
COUNTY OF WILLIAMSON
BEFORE , he ned Notary Public, oh this ay perso ally
appeared_ Lr Gl der, President of rm/o,c/,',.,,/
(Owner), bei by me duly sworn on his oath deposed and said that he
is duly qualified and authorized in all respects to make this
affidavit; that he has read the above and foregoing Application For
Tax Abatement; and that every statement contained in the Application
is within his knowledge and true and correct.
SUBSCRIBED AND SWORN TO BEFORE ME on the / /A day
of ( 4 1 - -1 - , - ( -- i , 1989, to certify which witness my hand and
official seal.
Page Four of Exhibit "C"
VERIFICATION
7 �-- 671.2t�LJ
Nota ublic, S, ate of Texas
Printed Name: 7 'a c JN
My Commission Expi es: 42-(--. Sz_
EXHIBIT "D"
CERTIFICATE OF ADOPTION AND RESOLUTION
The undersigned, Richard Chilinski, hereby certifies that he
is the duly elected, qualified and acting Assistant Secretary of
TEXAS NUCLEAR CORPORATION, a corporation duly authorized and
existing under the laws of the State of Texas, (the "Company ");
that the following is a full, true and correct copy of the
resolution appearing in the records of the Company, and that
said resolution was adopted by a Unanimous Written Consent of
the Board of Directors of said Company as of March 15, 1989; and
the undersigned further certifies that as of the date hereof
said resolution has not been rescinded or modified and is in
full force and effect.
RESOLVED, that the Company be, and it
hereby is, authorized to enter into a Tax
Abatement Agreement by and between the
City of Round Rock, Williamson County, the
Round Rock Independent School District and
the Company (the "Agreement ") relating to
the real property improvements being made
to the Company's facility under
construction in Round Rock, Texas; and
RESOLVED FURTHER, that John B.
Nelson, President of the Company, be, and
he hereby is, authorized to enter into and
execute such Agreement on behalf of the
Company with such changes or modifications
as he may deem appropriate or necessary.
Dated at Austin, Texas, this 15th day of March, 19'89.
Richard Chilinski
Assistant Secretary
DATE: April 11, 1989
SUBJECT: Council Agenda, April 13, 1989
ITEM: 13A. Consider a resolution authorizing the Mayor
to enter into a tax abatement agreement with
Texas Nuclear.
STAFF RESOURCE PERSON: Kathy Mayfield
STAFF RECOMMENDATION: Approval.
ECONOMIC IMPACT: One hundred and ninety (190) jobs will be
created through the relocation of Texas Nuclear to Round
Rock. Approximately 75,000 square feet of manufacturing and
office space will be constructed with an estimated value of
$3.2 million. Personal property is valued at $3.5 million.
Authorizing this tax abatement agreement is the final step
in the City's negotiations with Texas Nuclear. The County
and School District are also scheduled to approve the
agreement very soon.
II. PROJECT INFORMATION:
C. Current assessed value:
See Item G.
EXHIBIT "C"
APPLICATION FOR TAX ABATEMENT
This is to certify that the statements contained herein are true and correct.
The signers hereof are authorized to make these statements on behalf of the
applicant. The filing of this document acknowledges familiarity and conformance
with guidelines and criteria for granting tax abatement. This application will
become part of the agreement which shall be enforceable and binding on the
applicant. False representations will be grounds for terminating the agreement.
Any such false statements shall be considered a default which renders the
agreement void. This application should be filed with the City Manager of the
City of Round Rock, 221 East Main Street, Round Rock, Texas 78664.
I. APPLICANT INFORMATION: Date February 28. 1989
A. Company Name
Texas Nuclear Corporation
B. Address
9101 Research Blvd.. Austin. Texas 78758
A. Description of area to be designated as reinvestment zone:
(attach map)
Lot 1, Block A. 9.38 acre tract of land. being part of a 55.55
acre tract located in David Curry Survey. Abstract 130. Williamson
County. Texas.
B. Description of eligible improvements (real property) to be
constructed:
65.000 to 75.000 square foot manufacturing, warehouse and
office expansion.
D. Estimated value of eligible improvements:
$2.7 million to $3.2 million
E. Description of ineligible (taxable) property to be included in
project:
Office furniture. lathes. test equipment, laboratory
equipment and other manufacturing equipment
F. Estimated value of ineligible property:
$3.5 million
G. Estimated value of site as of January 1 preceding abatement
agreement:
(1) Land $653.749
(2) Improvements $418.622
(3) Personal Property
H. This project is:
( ) A New Plant
(x) An Expansion
( ) A Modernization
If Modernization:
Estimated economic life of existing plant: NA years
Added economic life from modernization: NA years
I. Tax abatement requested:
100 % of eligible property for year 1.
100 % of eligible property for year 2.
75 % of eligible property for year 3.
50 % of eligible property for year 4.
25 % of eligible property for year 5.
III. ECONOMIC INFORMATION:
A. Construction Estimates:
(1) Commencement Date: Mav /June . 1989
(2) Completion Date: December /January . 1989/90
(3) Number of Construction Jobs: Unknown
Page Two of Exhibit "C"
B. Estimated number of jobs to be created:
Local Transfer Total
1. December 31, 1982* 190 - 190
2. December 31, 19$0 195 5 200
3. December 31, 1921 204 6 210
4. December 31, 199 207 _ 8 215
5. December 31, 1922 230 10 240
*Upon completion
C. Other estimated taxes generated by project:
(1) Sales Taxes: Sales & Use Taxes - $60K /year
(2) Other (Identify): Construction related - $100.000
D. The proposed reinvestment zone is located in:
(1) City: Round Rock
(2) County: Williamson
(3) School District: Round Rock Independent School District
(4) Other Taxing Jurisdiction: Brushy Creek Water Control
Ii.rove nt Dis rict
Sire of Aut orized Company Official
John Nelson, President
Name and Title of Authorized Company Official
Company Representative to be contacted:
Name
Title
Address
Telephone
Richard Chilinski
Chief Financial Officer
9101 Research Blvd., Austin, Texas 78758
(512) 836 -0801
Page Three of Exhibit "C"
Upon receipt of the application, the City of Round Rock may also require copies
of the latest annual stockholders report, audited financial statements, bank
reference, and any other information required to evaluate the application.
STATE OF TEXAS
COUNTY OF WILLIAMSON
BEFORE , the undersigned Notary Public, n this.da G p ` ersonally
appeared yi , President of c�
(Owner), be ng by me duly sworn on his oath deposed and said that he
is duly qualified and authorized in all respects to make this
affidavit; that he has read the above and foregoing Application For
Tax Abatement; and that every statement contained in the Application
is within his knowledge and true and correct.
SUBS RIBED AND SWORN TO BEFORE ME on the // � day
of a / , 1989, to certify which witness my hand and
official seal.
Page Four of Exhibit "C"
VERIFICATION
Notary /Ffuolic, St lte of Texas
Printed Name: 72 gayy 00AJ WL
My Commission Expires: