R-92-1739 - 8/27/1992RESOLUTION NO. /#139
WHEREAS, the City Council, on the 27th day of August, 1992, in
Ordinance No. oSJ (� , created Reinvestment Zone No. Four in the
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
William P. Vince and The Innovative Business Accelerator, Inc.
regarding property located in said Reinvestment Zone No. Four, and
WHEREAS, the Council has determined that all requirements of the
guidelines and criteria adopted by Ordinance No. 2556 have been
complied with, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS
That the Mayor is hereby authorized and directed to execute on
behalf of the City a Tax Abatement Agreement with William P. Vince and
The Innovative Business Accelerator, Inc.
ATTEST:
RS08272A
RESOLVED this 27th day of August, 1992.
LAND, City Secretary
761W-4,
MIKE ROBINSON, Mayor
City of Round Rock, Texas
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
TAX ABATEMENT AGREEMENT
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'; County of Williamson, Texas duly acting herein by
and through its County Judge, hereinafter referred to as the "County" ; and The
Innovative Business Accelerator, Inc., duly acting by and through its President or
any Vice President, and William P. Vince, hereinafter collectively referred to as
"Owner ".
WITNESSETH:
WHEREAS, on the 27th day of August, 1992, the City Council of the City of
Round Rock, Texas, passed Ordinance No. 2582 establishing Reinvestment Zone
No. 4 , City of Round Rock, Texas for commercial /industrial tax abatement,
hereinafter referred to as "Ordinance No. 2582", as authorized by Chapter 312, Tax
Code, V.A.T.S. as amended, hereinafter referred to as the "Code "; and
WHEREAS, the City has adopted Ordinance Number 2556, which Ordinance
adopted appropriate guidelines and criteria governing reinvestment zones and tax
abatement agreements to be entered into by the City as contemplated by the Code;
and
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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 County, in accordance with Ordinance No. 2556 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. 4 in accordance with the purposes for
its creation and are in compliance with Ordinance No. 2556 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. 4 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 with the City and County; 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. 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 for buildings and equipment of
approximately $555,000.00 and to be substantially completed in accordance with the
phasing shown in Exhibit B provided, the 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 date a Certificate of Occupancy is issued by the City of Round Rock.
3. The Owner agrees and covenants that it will diligently and faithfully in
a good and workmanlike manner pursue the completion of the Improvements as a
good and valuable consideration of this Agreement. Owner further covenants and
agrees that all construction of the Improvements will be in accordance with all
applicable state and local laws and regulations or valid waiver thereof. In further
consideration, Owner shall thereafter, from the date a Certificate of Occupancy is
issued until the expiration of this Agreement, continuously operate and maintain
the Premises as The Innovative Business Accelerator, Inc. .
4. 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 or County to become delinquent and fails
to timely and properly follow the legal procedures for protest and /or contest of any
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such ad valorem taxes; or (3) Owner breaches any of the terms or conditions of this
Agreement, then this Agreement shall be in default. In the event that the Owner
defaults in its performance of (1), (2), or (3) above, then the City or County 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 County. Notice shall be in writing and shall be
delivered by personal delivery or certified mail to:
The Innovative Business Accelerator, Inc.
115 East Bagdad Avenue
Round Rock, Texas 78664
As liquidated damages in the event of default and in accordance with Section
312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been
paid to the City or County without the benefit of abatement (but without the
addition of penalty; interest will be charged at the statutory rate for delinquent taxes
as determined by Section 33.01 of the Tax Code) will become a debt to the City and
County and shall be due, owing and paid to the City and County within sixty (60)
days of the expiration of the above mentioned applicable cure period as the sole
remedy of the City and County. The City and County 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
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damages in the event of default and termination would be speculative and
impossible to determine.
5. The City and the County 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.
6. 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 County, which
permission shall not be unreasonably withheld. 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 County for ad valorem taxes or other
obligations.
7. It is understood and agreed between the parties that the Owner, in
performing its obligations hereunder, is acting independently, and the City and
County assume no responsibilities or liabilities in connection therewith to third
parties. Owner agrees to indemnify and hold City and County harmless from any
and all kinds of claims, losses, damages, injuries, suits, or judgments.
8. The Owner further agrees that the City and County, 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
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regulations or valid waiver thereof. After completion of the Improvements, the
City and County shall have the continuing right to inspect the Premises to insure
that the Premises are thereafter maintained and operated in accordance with this
Agreement.
9. Subject to the terms and conditions of this Agreement, and subject to
the rights and holders of any outstanding bonds of the City and County, a portion of
ad valorem real property taxes from the Property otherwise owed to the City and
County shall be abated. City and County 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 this Agreement and all applicable state and local regulations. The
percentage of abatements are as follows:
Year 93 100 % abatement
Year 94 100 % abatement
Year 95 100 % abatement
Year 96 100 % abatement
Year 97 100 % abatement
These abatements shall be for 5 years beginning January 1, 1993.
10. 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
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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.
11. It is understood and agreed by the City, County, 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.
12. This Agreement was authorized by Resolution of the City Council at its
council meeting on the 27th day of August, 1992, authorizing the Mayor to execute
the Agreement on behalf of the City.
13. This Agreement was authorized by the minutes of the Commissioners
Court of Williamson County, Texas, at its meeting on the 8th day of September
1992, whereupon it was duly determined that the County Judge would execute the
agreement on behalf of Williamson County.
14. This Agreement was entered into by Johan S. Gervais pursuant to
authority granted by its Board of Directors on the 21st day of August, 1992 , whereby
the Chairman was authorized to execute this Agreement on behalf of The
Innovative Business Accelerator, Inc., a copy of which authorization is attached
hereto as Exhibit D.
15. This shall constitute a valid and binding Agreement between the City
and The Innovative Business Accelerator, Inc. when executed in accordance
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herewith, regardless of whether the County executes this agreement. If the County
executes this Agreement this shall constitute a valid and binding agreement
between the County and The Innovative Business Accelerator, Inc. when executed
on behalf of said parties, for the abatement of the County's taxes in accordance
therewith.
16. This Agreement is performable in Williamson County, Texas.
Witness our hands this 8th day of
September 19 92 .
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ATTEST:
4
nne Land, City Secretary
CITY OF RQ . • K, TEXAS
By:
Mike Robinson, Mayor
COMMISSIONERS COURT OF
WILLIAMSON COUNTY
OWNER
The Innovative Business Accelerator, Inc.
By: : .. .. G '�.
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Johan S. Gervais, Chairman
William P. Vince, Individually
' EXHIBIT "A"
Property Description
FIELDNOTE DESCRIPTION of 2.1327 acres, (92,900 square feet) of land situated in the Wiley Harris
Survey, Abstract No. 298, Williamson county, Texas and more particularly being all of that certain 2.132
acre tract of land conveyed to Cecil L. Slayton by instrument of record in Volume 1289, Page 386, et.seq.
Williamson County Deed Records, said 2.1327 acres of land being more particularly described by metes
and bounds as follows:
BEGINNING at a concrete highway monument, market 102 +40, found in the easterly right -of-
way line of U.S. Highway No. 81, (South Mays Street); 80 feet wide, said monument bears N 17° 20' 38"
W, 294.61 feet from a concrete highway monument found at an angle point in the said easterly right -of-
way line;
THENCE, along said easterly right -of -way line, N 28° 42' 51" E, 104.16 feet to a 1/2" iron rod
set in the southerly line of East Bagdad Avenue, (80 feet wide);
THENCE, along said southerly line, N 72° 39' 22" E, 435.25 feet to a 1/2" iron rod set for
corner, same being in the westerly line of that certain remainder tract originally conveyed as 57.36 acres
to International and Great,Northern Railroad Company by instrument of record in Volume 22, Page 441,
et seq. Williamson County Deed Records;
THENCE, departing said southerly line and along the common line of said remainder tract and the
herein described tract, S 17° 20' 38' E. 122.48 feet to a 1/2" iron rod set for corner, said rod bears N
27° 03' 49" W, 50.00 feet northerly from the centerline of the main tracks of the Missouri Pacific Railroad
Company, as located and constructed;
THENCE, 330.00 feet along the arc of a non - tangent curve to the left, said curve being
concentric with said centerline and having a chord bearing S 59° 26' 47" W. 329.80 feet, a radius of
2708.78 feet and a central angle of 06° 58' 48" to a point for corner;
THENCE, S 34° 02' 37" E, 10.00 feet to a 1/2" iron rod set for corner, said rod being radial and
distant 40.00 feet from the centerline of said tracks;
THENCE, 203.00 feet along the arc of a non - tangent curve to the left, said curve being
concentric with said centerline and having a chord bearing S 53° 48' 06" W, 202.95 feet, a radius of
2698.78 feet and a central angle of 04° 18' 35° to a 1/2" iron rod set for corner in the aforementioned
easterly right -of -way line of U.S. Highway No. 81, said rod bears N 17° 20' 38" W, 4.40 feet from a
concrete highway monument found in said easterly right -of -way line;
THENCE, along said easterly right -of -way line N 17° 20' 38" W, at 47.51 feet pass a concrete
highway found, and continuing at 133.23 feet pass a concrete highway monument found, and continuing,
in all, a distance of 200.72 feet to the POINT OF BEGINNING, and CONTAINING 2.1327 acres (92,900
square feet) of land area within these metes and bounds.
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EXHIBIT "B"
Description of Improvements
To Be Constructed
Phase 1. (To be completed by Dec. 31, 1992)
Remodeling and finishing out of existing 1 story office building with a value
of not less than ($15,000).
Phase 2. (To be completed by Dec. 31, 1993)
a. Construction of a small 2 story office building (approx. 4,000 S.F.) using
existing ,shell of lumber storage building (with a value of not less than
$60,000) in compliance with the city ordinance.
b. Conversion of warehouses into light manufacturing space, including
upgrading of utilities, insulation, etc. (with a value of of less than
$80,000).
Phase 3. (To be completed by Dec. 31, 1994)
a. Purchase and installation of specific manufacturing equipment (with a
value of not less than $400,000).
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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: August 12, 1992
A. Company Name: The Innovative Business Accelerator, Inc.
B. Address: 115 E. Bagdad Avenue, Round Rock, Texas 78664
II. PROTECT INFORMATION:
A. Description of area to be designated as reinvestment zone: (attach map)
(See Exhibit "A ")
B. Description of eligible improvements (real property) to be constructed:
(See Exhibit "B")
C. Current assessed value: $251,898
D. Estimated value of eligible improvements: $555,000.00
E. Description of ineligible (taxable) property to be included in project:
Present real estate and improvements.
F. Estimated value of ineligible property: $259,494.00
G. Estimated value of site as of January 1 preceding abatement agreement:
(1) Land: $116,088.00
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H. This project is:
(2) Improvements: $143,406.00
(3) Personal Property: -0- (To be removed)
( ) A New Plant
(X) An Expansion
( ) A Modernization
If Modernization:
Estimated economic life of existing plant:
Added economic life from modernization:
Tax abatement requested:
100 % of eligible property for year 1.
100 % of eligible property for year 2.
100 % of eligible property for year 3.
100 % of eligible property for year 4.
100 % of eligible property for year 5.
III. ECONOMIC INFORMATION:
A. Construction Estimates:
(1) Commencement Date: September, 1992
(2) Completion Date:
(3) Number of Construction Jobs: 4 - 6
B. Estimated number of jobs to be created:
1. December 31, 1992 3
2. December 31, 1993 10
3. December 31, 1994 15
4. December 31, 1995 15
5. December 31, 1996 15
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Phase I:
Phase II:
Phase III:
Total:
years
years
December 31, 1993
December 31, 1994
December 31, 1995
Bl. Estimated number of companies in incubation or graduated:
NUMBER OF
NEW NUMBER OF IBA
COMPANIES TO GRADUATE
YEAR OF ENTER IBA COMPANIES
OPERATIONS INCREMENTAL TOTAL INCREMENTAL TOTAL
1 6 6 0 0
2 6 12 0 0
3 6 18 4 4
4 6 24 4 8
5 6 30 4 12
6 4 16
7 4 20
The actual number of jobs created per company will naturally vary from
company to. company. Entry level companies typically start out with
between one and three employees, graduating companies typically have
between five and ten employees, and at year five, the companies have
between 40 and 75 employees, based on industry statistics.
C. Other estimated taxes generated by project:
(1) Sales Taxes: ± $8,000.00
(2) Other (Identify):
D. The proposed reinvestment zone is located in:
(1) City: Round Rock
(2) County: Williamson
(3) School District Round Rock Independent School District
(4) County Education District
(5) Water Control Improvement District
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( -
Signature of Authorized Company Official
Johan S. Gervais, Chairman
(Name and Title of Authorized Company Official)
Company Representative to be contacted:
Name: Johan S. Gervais
Title: Chairman
Address: 115 E. Bagdad Avenue, Round Rock, Texas 78664
Telephone: (512) 388 -9678
STATE OF TEXAS
COUNTY OF WILLIAMSON .
VERIFICATION
BEFORE ME, the undersigned Notary Public, on this day personally appeared
Johan S. Gervais, Chairman of Innovative Business Accelerator (Owner), being 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.
tJ�
SUBSCRIBED AND SWORN TO BEFORE ME on the c27 day of 19
to certify which witness my hand and official seal.
4 CHRISTINE R. MARTINEZ
Notary Public, State of Texas
My Commission Expires
JUNE 22, 1993
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My Commission Expires:
R
Notary Public, fate of Texas
Printed Name: NkISt /AUK /, mAk 1 AJEZ.2
-aa
Upon receipt of the application, the City of Round Rock may also require copies of
the latest annual stockholders report, audited financial statements, bank references,
and any other information required to evaluate the application.
STATE OF TEXAS §
§
COUNTY OF WILLIAMSON §
EXHIBIT "D"
CERTIFICATE OF ADOPTION AND RESOLUTION
I, Dennis W. Barnes, Secretary of the Innovative Business Accelerator, Inc., a
corporation duly authorized and existing under the laws of the State of Texas, do
hereby certify that the following resolutions appear in the records of the corporation,
and that said resolutions were unanimously adopted by unanimous consent of the
Board of Directors of Innovative Business Accelerator, Inc. on August 21, 1992, and
that said resolutions have not been rescinded, amended, or modified:
"RESOLVED, that Johan S. Gervais be and it hereby is, authorized to
enter into a Tax Abatement Agreement by and between the City of
Round Rock and Williamson County for the abatement of certain
property taxes in conjunction with the corporation expanding it's
facilities located at 115 East Bagdad Avenue, Round Rock, Texas, to be
used for business incubation.
FURTHER RESOLVED, that Johan S. Gervais be, and he hereby is,
authorized to enter into and execute said Tax Abatement Agreement
on behalf of the corporation with such changes or modifications as he
may deem appropriate and deeds and he is hereby authorized and
directed to do and perform any and all acts and deeds and to execute
any additional documents necessary to effectuate the intent and
purpose of the preceding resolution."
IN WITNESS WHERE OF, I have hereunto set my hand on this the 21st day
of August, 1992.
°QQM^u h,AQ 0
Secretary of
The Innovative Business Accelerator, Inc.
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STATE OF TEXAS:
COUNTY OF WILLIAMSON:
VERIFICATION
BEFORE ME, the undersigned Notary Public, on this day personally appeared
Dennis W. Barnes, Secretary of the Innovative Business Accelerator, Inc., (Owner),
being 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 ae �f day o 4 1993, to
certify which witness my hand and official seal.
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0 ut.o.L.. ; (1 • (1 6�.MAD
NotaiPublic, State of Texas
Printed Name:
My Commission Expires:
DATE: August 25, 1992
SUBJECT: City Council Meeting, August 27, 1992
ITEM: 12.A. Consider a resolution authorizing the Mayor to enter into a tax
abatement agreement with Innovation Business Accelerator.
RESOURCE PERSON: Joe Vining
STAFF
RECOMMENDATION: Approval
The attached tax abatement agreement will provide a 100% tax abatement for a five
year period for new development and improvements proposed for 2.1327 acres of
land located at 115 East Bagdad Avenue. The proposed development is a Business
incubator. The agreement requires the following:
1) A minimum number of incubator clients for each of the next 5 years.
2) An investment of $155,000 by December 1993 and a total investment of
$555,000 over the life of the contract.
A business incubator is expected to have a significant positive effect on future
business expansion in Round Rock.
Economic Impact: The projected tax abatement is approximately as follows:
Year 1- $ 93
Year 2 - $ 961
Year 3 - $3441
Year 4 - $3441