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R-92-1758 - 10/22/1992RESOLUTION NO. l 76 u 'v WHEREAS, the City Council of Round Rock, Texas, on the 25th day of June, 1992 in Ordinance No. 2578 created the Reinvestment Zone No. Three, 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 McNeil Consumer Products Company, a division of McNeil - PPC, Inc., regarding property located in said Reinvestment Zone No. Three, 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 to sign on behalf of the City the Tax Abatement Agreement with McNeil Consumer Products, a division of McNeil - PPC, Inc. RESOLVED this 22nd day of October, 1992. ATTEST: E LAND, City Secretary CH A R1 -ES ekt.PEPPE Pao en City of Round Rock, Ma Texas yor THE STATE OF TEXAS COUNTY OF WILLIAMSON § and r 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 "; the County of Williamson, Texas duly acting herein by and through its County Judge, hereinafter referred to as the "County "; and McNeil Consumer Products Company, a division of McNeil - PPC, Inc., a New Jersey corporation, duly acting by and through its Officers, hereinafter referred to as to as "Owner ". WITNESSETH: WHEREAS, on the 25th day of June, 1992, the City Council of the City of Round Rock, Texas, passed Ordinance No. 2578 establishing Reinvestment Zone No. Three, City of Round Rock, Texas for commercial /industrial tax abatement, hereinafter referred to as "Ordinance No. 2578 ", 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; McNeil Tax Abatement Agreement /Application 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. Three 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. Three 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 County; and WHEREAS, the City finds that there will be no substantial adverse effect 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 located within Reinvestment Zone No. Three, described by metes and bounds and the map attached hereto as Exhibit "A" and made a part hereof and shall be hereinafter referred to as "Premises ". McNeil Tax Abatement 2 Agreement /Application 2. The Owner shall promptly commence the construction and installation of the Improvements, described in Exhibit "B" on the Premises with a value of approximately $15,000,000 and to be substantially complete by July 30, 1993 provided, that Owner shall have such additional time to install 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. 3. The Owner agrees and covenants that it will diligently and faithfully in a good and workmanlike manner pursue the installation of the Improvements as a good and valuable consideration of this Agreement. Owner further covenants and agrees that all installation and 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 hereafter, until the expiration of this Agreement, continuously operate and maintain the Premises as the McNeil Consumer Products Company Southwest Manufacturing Plant. 4. In the event that (1) the Improvements for which an abatement has been granted are not installed in accordance with this Agreement or (2) Owner allows its ad valorem taxes owed the City and /or County to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem taxes; or (3) Owner breaches any of the terms or conditions of McNeil Tax Abatement 3 Agreement /Application 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 Couhty. Notice shall be in writing and shall be delivered by personal delivery or certified mail to: ' MCNEIL CONSUMER PRODUCTS COMPANY 4001 North IH 35 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 and 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 damages in the event of default and termination would be speculative and impossible to determine. McNeil Tax Abatement 4 Agreement /Application 5. Owner shall provide to the City and County a statement of the value of taxable personal property and equipment within sixty (60) days following completion of each Phase the Improvements. The City and /or County shall have the option of conducting an appraisal by an appraiser acceptable to City and /or County 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 County requesting such appraisal. The taxable value shall be determined on a uniform and equal basis of assessment by the methods used by the Williamson County Tax Appraisal District. 6. The City and the County each represent and warrant that the Premises and /or Improvements do 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. 7. 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. McNeil Tax Abatement 5 Agreement /Application 8. 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. 9. 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 installation of the Improvements are in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After "installation 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. 10. 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 taxes from the Improvements 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 value of the Improvements, in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements is as follows: McNeil Tax Abatement 6 Agreement /Application Year 1993: 20% abatement Year 1994: 20% abatement Year 1995: 20% abatement Year 1996: 20% abatement Year 1997: 20% abatement These abatements shall be for five years beginning January 1, 1993. 11. 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 this Agreement with possible liability for recovery of abated taxes. 12. 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 council meeting on the4, Zn/i day of back taxes) have been paid. 13. This Agreement was authorized by Resolution of the City Council at its e d-kw , 1911 authorizing the Mayor to execute the Agreement on behalf of the City. 14. This agreement was authorized by the minutes of the Commissioners Court of Williamson County, Texas, at its meeting on the c'14 day of Bthbt , McNeil Tax Abatement 7 Agreement /Application 1992, whereupon it was duly determined that the County Judge would execute the agreement on behalf of Williamson County 15. This Agreement was entered into by Owner pursuant to authority granted by its Board of Directors on the / day of edit - , 1992, whereby art officer was authorized to execute this Agreement on behalf of Owner, a copy of which authorization is attached hereto as Exhibit D. 16. This shall constitute a valid and binding Agreement between the City and Owner when executed in accordance 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 Owner when executed on behalf of said parties, for the abatement of the County's taxes in accordance therewith. 17. This Agreement is performable in Williamson County, Texas. Witness our hands this oR(a u " day of 0 C btA.- , 19 9 McNeil Tax Abatement Agreement /Application ATTEST: • Stepha L. Sheets, City Attorney APP ecretary ED AS TO ORM: AP ROVED S TO FORM: I I Pe -rta.Be'ley Attorney for McNeil Consumer Products Co. - - - CITY O1r'O D OCK, TEXAS �� a By: �. COMMISSIONERS COURT OF WILLIAMSON COUNTY By: 1. C. bait, Cinty Judge McNEIL CONSUMER PRODUCTS CO., Division of McNeil - PPC, Inc. By: By: , V ` (.7" Michael D. Gowen Mark Letner McNeil Tax Abatement 9 Agreement /Application EXHIBIT A Property Description FIELD NOTES McNE[L CONSUMER PRODUCTS CO. ROUND ROCK, TEXAS FIELD NOTES FOR A 64.28 ACRE TRACT OF LAND OUT OF THE EPHRAIM EVANS SURVEY, ABSTRACT NO. 212, BEING ALSO THE REMAINING 45.44 ACRES OF THAT CERTAIN 94.39 ACRE TRACT OF LAND CONVEYED TO McNEIL LABORATORIES, INC. BY A WARRANTY DEED • RECORDED 114 VOLUME 657 PAGE 659, AND THE REMAINING 18.83 ACRES OF THAT CERTAIN 38.58 ACRE TRACT CONVEYED TO McNEIL LABORATORIES, INC. BY WARRANTY DEED RECORDED IN VOLUME 657 PAGE 655 OF THE WILLIAMSON COUNTY OFFICIAL RECORDS. SAID REMAINING 64.28 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at an iron pin on the south Right -of -Way line of Chandler Road (County Road No. 114), said iron pm being the northeast corner of the 64.28 acre tract herein described and the northwest corner of Lot 1, Block "A ", Oakmont Centre Section Two as recorded in Cabinet F, Slide 174 of the Plat Records, Williamson County, Texas, and from which beginning point the northeast corner of the said 94.39 acre tract of which the 64.28 acre tract described herein is a part of bears the N 70° 17' 00" E, 630.00' and N 19° 38' 36" W, 25.07'; THENCE S 19° 54' 10" E, along the southeast line of the 64.28 acre tract herein described, at 490.88' passing the southwest corner of Lot 1 and northwest corner of Lot 2 of said Oakmont Centre Section Two, at 664.21' passing the southwest corner of Lot 2 of said Oakmont Centre Section Two and the northwest corner of Lot 1, Oakmont Centre Section Five, a subdivision recorded in Cabinet F, Slide 140 of the Plat Records, Williamson County, in all 1500.36' to an iron pin at the southwest corner of Lot 1, Oakmont Centre Section Five, said iron pin being also on the north line of Lot 2 of Oakmont Centre Section Five, for the southeast corner of the 64.28 acre tract herein described; THENCE with the south line of the 64.28 acre tract herein described, and the north and west lines of Lot 2, Oakmont Centre Section Five, the following nine (9) courses: 1. N 72° 56' 57" W, 24.01' to an iron pin; 2. N 58° 11' 00" W, 157.52' to an iron pin; 3. S 68° 40' 00" W, 112.66' to an iron pin; 4. ` S 56° 03' 00" W, 373.98' to an iron pin; 5. S 23° 19' 15" W, 29.41' to an iron pin; 6. S 10° 26' 30" W, 69.49' to an iron pin; 7. ' S 6° 45' 30" E, 79.34' to an iron pin; 8. S 18° 57' 45" W, 45.05' to an iron pin; 9. S 34° 14' 45" E, 226.38' to an iron pin on the north line of Lot 3, Oakmont Centre Section Five pin for the southeastmost corner of the 64.28 acre tract herein described; McNeil Tax Abatement 10 Agreement /Application FIELD NOTES Page 2 THENCE S 69° 59' 14" W, with the southmost line of the 64.28 acre tract herein described and the north line of Lot 3 Oakmont Centre Section Five, at 26.84' passing the east line of the said 38.58 acre of which the 64.28 acre tract herein described is a part of, in all 136.51' to an iron pin at the northeast corner of a 2.35 acre park tract as described in Volume 871 Page 369 of the Official Records, Williamson County, Texas; THENCE S 65° 03' 23" W, 238.66' with the southmost line of the 64.28 acre tract herein described and the north line of the said 2.35 acre park tract to an iron pin on the northwest corner of said 2.35 acre tract, being also the northeast corner of a 2.00 acre park tract as described in Volume 871 Page 374 of the Official Records, Williamson County, Texas; THENCE with the southmost line of the said 64.28 acre tract herein described and the north line of the said 2.00 acre park tract the following two (2) courses: 1. S 65° 00' 00" W, 163.40' to an iron pin; 2. S 72° 10' 00" W, 229.93' to an iron pin for the southmost corner of the said 64.28 acre tract herein described, said iron pin being also the northwest corner of the said 2.00 acre park tract, and located on an east line of a 14.064 acre park tract as described in Volume 778 Page 330 of the Official Records, Williamson County, Texas; THENCE with the west and south lines of the said 64.28 acre tract herein described and the east and north lines of the said 14.064 acre park tract the following four (4) numbered courses: 1. N 33° 51' 59" W, 529.14' to an iron pin; 2. S 76° 25' 00" W, 171.83' to an iron pin; • 3. N - 51° 10' 00" W, 172.71' to an iron pin; 4. N 80° 50' 00" W, 173.46' to an iron pin for a southwest corner of the 64.28 acre tract herein described, being also on the west line of the said 38.58 acre tract of which the 64.28 acre tract described herein is a part of, and being on the east Right -of -Way line of Inter - regional Highway 35; THENCE with the west lines of the said 64.28 acre tract herein described and the east Right -of -Way line of Inter - regional Highway 35, the following four (4) numbered courses: 1. N•0° 52' 19" W, 113.29 to an iron pin, being the northwest corner of the said 38.58 acre tract of which the 64.28 acre tract described herein is a part of, and the westmost corner of the.said 9439 acre tract of which the 64.28 acre tract described herein is also a part of; 2. N 1° 02' 00" W, 326.48 to a concrete monument on the point of curvature of a curve to the right; 3. with said curve to the right having a radius of 1095.90', a central angle of 20° 51' 15 ", an arc length of 398.88', and a chord which bears N 9° 20' 0" E, 396.68' to a concrete monument; 4. N 15° 48' 00" E, 461.51' to an iron pin for the northwest corner of the 64.28 acre tract herein described, from which iron pin a concrete monument for the northwest corner of the said 94.39 acre tract of which the 64.28 acre tract herein described is a part of bears N 15° 48' 00" E, 31.18'; ' THENCE N 70° 18' 28' E, 1338.57 with the north line of the said 64.28 acre tract herein described and the south Right -of -Way line of Chandler Road (County Road No. 114) to the point of BEGINNING and containing 64.28 acres of land. That 1, Jose M. Gil, a Registered Professional Land Surveyor, do hereby state :eat the field notes provided hereon are true and correct to the best of my knowledge prepared from all available documents. Jose M. GO, R.P.L.S. FIELD NOTES Page 3 NCNEIL CONSUMER PRODUCTS CO. FIELD NOTE STCN 140 02 . 0714 52618 n 0' 62 10' 4 1132. 011020 0202.. n 2 20 00 0 p5TAn • 226.50' m $ . An6 • pa' A 01110 100600 0 0 004-TA • 20 51' K i �\ • n p / \ .%• 0 PLACE OF EEGINNING G \ \ N \m a\ '\ \ \ \ - s r n 1? ' 20 36' Y A_ 2sor EXHIBIT B Description of Improvements To Be Constructed Rotogranulation New Granulation Equipment Vial Line Environmental Compliance Pouch Line Equipment New Business Equipment - THP New Business Equipment - Sage Other Building McNeil Tax Abatement 11 Agreement /Application 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: ! C� /Z � 3 / n /?/ A. Company Name: McNEIL CONSUMER PRODUCTS COMPANY, a Division of McNeil - PPC, Inc. B. Address: 4001 North IH 35, Round Rock, Texas 78664 PROTECT INFORMATION: A. Description of area to be designated as reinvestment zone: (attach map) Reference Exhibit A B. Description of eligible improvements (real and personal property) to be constructed: Reference Exhibit B C. Current assessed value: $12,235,000 D. Estimated value of eligible improvements: 1992 - 1993 $15,000,000 E. Description of ineligible (taxable) property to be included in project: Existing buildings and land McNeil Tax Abatement 12 Agreement /Application F. Estimated value of ineligible property: Land: $ 1,439,000 Buildings and Improvements: $10,796,000 G. Estimated value of site as of January 1 preceding abatement agreement: (1) Land: $1,439,000 (2) Improvements: $5,138,000 (3) Personal Property: $5,658,000 H. This project is: ( ) A New Plant (Machinery and equipment in existing building) ( '1) An Expansion ( ) A Modernization If Modernization: Estimated economic life of existing plant: N/A years Added economic life from modernization: N/A years I. Tax abatement requested: 20% of eligible property for year 1. 20% of eligible property for year 2. 20% of eligible property for year 3. 20% of eligible property for year 4. 20% of eligible property for year 5. III. ECONOMIC INFORMATION: A. Construction Estimates: (1) Commencement Date: June, 19 92 (2) Completion Date: July, 1993 (3) Number of Construction Jobs: unknown B. Estimated number of jobs to be created: Not applicable. Purpose of abatement is job retention. McNeil Tax Abatement 13 Agreement /Application C. Other estimated taxes generated by project: D. The proposed reinvestment zone is located in: (1) Sales Taxes: Sales tax on equipment (2) Other (Identify): (1) City: Round Rock (2) County: Williamson (3) School District: Round Rock Independent School District (4) Other Taxing Jurisdiction: County Education District Water Control and Improvement District McNeil Tax Abatement 14 Agreement /Application pi( a/14w Signature of Authorized Company Official Michael D. Gowen, Plant Manager Name and Title of Authorized Company Official Company Representative to be contacted: Michael D. Gowen Name Plant Manager Title 4001 N. IH 35, Round Rock, Texas Address (512) 388 -6157 Telephone Federal Tax ID No.: 1- 22- 1922092 -3 State Tax ID No.: 22- 1922092 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. :15 McNeil Tax Abatement Agreement/Application STATE OF /Ey COUNTY OF W /LL IAmSOnJ § 'a + VERIFICATION BEFORE ME, the undersigned Notary Public, on this day personally appeared Michael D. Gowen, Plant Manager of McNeil Consumer Products Company, a division of McNeil - PPC, 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 the 013 day of 'r- mPSFA. 19 , to certify which witness my hand and official seal. Notary Public, State of TEX,45 Printed Namec,/),4A1y.✓E L. GAL) My Commission Expires: !a-14 -96 1. McNeil Tax Abatement 16 . Agreement /Application STATE OF NEW JERSEY COUNTY OF MIDDLESEX I, Peter D. Bewley, Assistant Secretary of McNeil - PPC, Inc., a corporation duly authorized and existing under the laws of the State of New Jersey, 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 McNeil - PPC, Inc. on 6 d2 i & 2 I / J 552— , and that said resolutions have not been rescinded, amended, or modified: IN WITNESS WHERE OF, I have hereunto set my and seal of said corporation on this the j day of Oc.�l ) , 1992. "RESOLVED, that the McNeil Consumer Products Company Division 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 4001 North IH 35, Round Rock, Texas, to be used for custom manufacturing and packaging. FURTHER RESOLVED, that Mark Letner, Vice - President - Operations 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." EXI-IIBIT D CERTIFICATE OF ADOPTION AND RESOLUTION Assistant Secretary of McNeil - PPC, Inc. McNeil Tax Abatement Agreement /Application STATE OF NEW JERSEY COUNTY OF MIDDLESEX § BEFORE ME, the undersigned authority, on this day personally appeared Peter D. Bewley, Assistant Secretary of McNeil - PPC, Inc., a corporation, known to me to be the person who name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity herein stated and as the act and deed of said corporation. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the /se' day of O!.i'ober- , 1992. ) ,� -f :, Notary Public, State of view Jersey f' PEARLENE HUFF NOTARY PUBLIC OF NEW JERSEY My Commission Expires Mar. 27, 1990 McNeil Tax Abatement 18 Agreement /Application DATE: October 20, 1992 SUBJECT: City Council Meeting, October 22, 1992 ITEM: 9.A. Consider a resolution authorizing the Mayor to enter into a tax abatement agreement with McNeil Consumer Products Co., a Division of McNeil - PPC, Inc. STAFF RESOURCE PERSON: Joe Vining STAFF RECOMMENDATION: Approval The proposed tax abatement agreement between McNeil Consumer Products Co., the City of Round Rock and Williamson County will result in a $15,000,000 investment for their plant expansion, the addition of new machinery and equipment phased over five years. The estimated abatement requested is as follows: The Williamson County Commissioner's Court has scheduled action on this item for their October 26th meeting. A copy of the proposed Tax Abatement Agreement is attached. Economic Impact: Estimated Estimated Tax Percentage City County Year Abatement Abatement Abatement 1993 20% $18,738 $10,998 1994 20% $18,738 $10,998 1995 20% $18,738 $10,998 1996 20% $18,738 $10,998 1997 20% $18,738 $10,998 Totals: $93,690 $54,990 • The scheduled plant expansion will result in job retention, and result in • $93,690 estimated total tax abatement over five years. Mayor Mike Robinson Mayor Pro -tem Charles Culpep CounoilMem Robert Stlaka November 23, 1992 Ms. Donna Moff Chief Appraiser Williamson County Tax Appraisal District Post Office Box 1085 Georgetown, TX 78627 - 1085 RE: Tax Abatement: all real and personal property improvements, McNeil Consumer Products, Inc., Reinvestment Zone No. 3 (reference exhibit A field notes of tax abatement agreement) Dear Ms. Moff: THE CITY OF ROUND ROCK ' 221 East Main Street Round Rock, Texas 78664 512- 255 -3612 The City of Round Rock approved Ordinance No. 2578 on June 25, 1992 which designated the above noted property as a reinvestment zone for commercial/industrial tax abatement. The enclosedTax Abatement Agreement for the above noted property abates ad valorem taxes on all real and personal property improvements constructed after June 25. 1992 for a period of five years. The taxes will be abated as follows: 1993 taxes - 20% 1994 taxes - 20% 1995 taxes - 20% 1996 taxes - 20% 1997 taxes - 20% The land value and improvements in place prior to June 25, 1992 are not subject to the tax abatement. I have attached a copy of the Tax Abatement Agreement signed by all government entities and the ordinance which created the reinvestment zone. Please arrange to have your tax bills for 1993 through 1997 reflect this tax abatement. Thank you for your as stance. If you have any questions, please contact me. Joseph Plann erel , AI P, Director ommunity Developm Rod Morgan closure: Tax abatement Rick Stewart Earl tter Jim mmy Joanne Land, _Assistant City-Manager/City-Secretary yJ Joseph c � City Manager Robert L. Bennett, Jr. David Tynan, McNeil Consumer Products, Inc., 4001 N 1H35, Round Rock, City Attorney Texas 78664 Stephan L. Sheets Fax 512-255-6676 1-800-735-2989 (TDD) 1 - 800 - 735 - 2988 (Voice) 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 "; the County of Williamson, Texas duly acting herein by and through its County Judge, hereinafter referred to as the "County "; and McNeil Consumer Products Company, a division of McNeil - PPC, Inc., a New Jersey corporation, duly acting by and through its Officers, hereinafter referred to as to as "Owner ". WITNESSETH: WHEREAS, on the 25th day of June, 1992, the City Council of the City of Round Rock, Texas, passed Ordinance No. 2578 establishing Reinvestment Zone No. Three, City of Round Rock, Texas for commercial /industrial tax abatement, hereinafter referred to as "Ordinance No. 2578 ", 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 McNeil Tax Abatement 1 Agreement /Application 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. Three 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. Three 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 County; and WHEREAS, the City finds that there will be no substantial adverse effect 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 located within Reinvestment Zone No. Three, described by metes and bounds and the map attached hereto as Exhibit "A" and made a part hereof and shall be hereinafter referred to as 'Premises ". McNeil Tax Abatement 2 Agreement /Application 2. The Owner shall promptly commence the construction and installation of the Improvements, described in Exhibit "B" on the Premises with a value of approximately $15,000,000 and to be substantially complete by July 30, 1993 provided, that Owner shall have such additional time to install 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. 3. The Owner agrees and covenants that it will diligently and faithfully in a good and workmanlike manner pursue the installation of the Improvements as a good and valuable consideration of this Agreement. Owner further covenants and agrees that all installation and 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 hereafter, until the expiration of this Agreement, continuously operate and maintain the Premises as the McNeil Consumer Products Company Southwest Manufacturing Plant. 4. In the event that (1) the Improvements for which an abatement has been granted are not installed in accordance with this Agreement or (2) Owner allows its ad valorem taxes owed the City and /or County to become delinquent and fails to timely and properly follow the legal procedures for protest and /or contest of any such ad valorem taxes; or (3) Owner breaches any of the terms or conditions of McNeil Tax Abatement 3 Agreement /Application 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: MCNEIL CONSUMER PRODUCTS COMPANY 4001 North IH 35 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 and 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 damages in the event of default and termination would be speculative and impossible to determine. McNeil Tax Abatement 4 Agreement /Application 5. Owner shall provide to the City and County a statement of the value of taxable personal property and equipment within sixty (60) days following completion of each Phase the Improvements. The City and /or County shall have the option of conducting an appraisal by an appraiser acceptable to City and /or County 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 County requesting such appraisal. The taxable value shall be determined on a uniform and equal basis of assessment by the methods used by the Williamson County Tax Appraisal District. 6. The City and the County each represent and warrant that the Premises and /or Improvements do 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. 7. 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. McNeil Tax Abatement 5 Agreement /Application 8. 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. 9. 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 installation of the Improvements are in accordance with this Agreement and all applicable state and Local laws and regulations or valid waiver thereof. After installation 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. 10. 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 taxes from the Improvements 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 value of the Improvements, in accordance with the terms of this Agreement and all applicable state and local regulations. The percentage of abatements is as follows: McNeil Tax Abatement 6 Agreement /Application Year 1993: 20% abatement Year 1994: 20% abatement Year 1995: 20% abatement Year 1996: 20% abatement Year 1997: 20% abatement These abatements shall be for fire years beginning January 1, 1993. 11. 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 this Agreement with possible liability for recovery of abated taxes. 12_ 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. 13. This Agreement was authorized by Resolution of the City Council at its council meeting on the4,.?&D day of � (? fi LttJ , 1990) authorizing the Mayor to execute the Agreement on behalf of the City. 14. This agreement was authorized by the minutes of the Commissioners Court of Williamson County, Texas, at its meeting on the a 01:4 day of 0thbi McNeil Tax Abatement 7 Agreement /Application 1992, whereupon it was duly determined that the County Judge would execute the agreement on behalf of Williamson County 15. This Agreement was entered into by Owner pursuant to authority granted by its Board of Directors on the /C- day of (9deft - 1992, whereby an officer was authorized to execute this Agreement on behalf of Owner, a copy of which authorization is attached hereto as Exhibit "D ". 16. This shall constitute a valid and binding Agreement between the City and Owner when executed in accordance 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 Owner when executed on behalf of said parties, for the abatement of the County's taxes in accordance therewith. 17. This Agreement is performable in .Williamson County, Texas. Witness our hands this alo day of 0 tit btk- ,19 9Y. McNeil Tax Abatement 8 Agreement /Application ATTEST: Stepha L. Sheets, City Attorney AP f ROVED S TO FORM: Pe -r 1. Be ' ley At orney for McNeil Consumer Products Co. By: CITY O, 'rOU; D HOCK, TEXAS I Mike Robikisen; 1�Ia}/o� Ckr-L3 1 ' r COMMISSIONERS COURT OF WILLIAMSON COUNTY By: C=• Ctnty Judge McNEIL CONSUMER PRODUCTS CO., Division of McNeil - PPC, Inc. By: ,2 J By: Mark Letner Michael D. Gowen McNeil Tax Abatement 9 Agreement /Application EXHIBIT A Property Description FIELD NOTES McNEIL CONSUMER PRODUCTS CO. ROUND ROCK, TEXAS FIELD NOTES FOR A 64.28 ACRE TRACT OF LAND OUT OF THE EPHRAIM EVANS SURVEY, ABSTRACT NO. 212, BEING ALSO THE REMAINING 45.44 ACRES OF THAT CERTAIN 94.39 ACRE TRACT OF LAND CONVEYED TO McNEIL LABORATORIES, INC. BY A WARRANTY DEED RECORDED IN VOLUME 657 PAGE 659, AND THE REMAINING 18.83 ACRES OF THAT CERTAIN 38.58 ACRE TRACT CONVEYED TO McNEIL LABORATORIES, INC. BY WARRANTY DEED RECORDED IN VOLUME 657 PAGE 655 OF THE WILLIAMSON COUNTY OFFICIAL RECORDS. SAID REMAINING 64.28 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at an iron pin on the south Right-of-Way line of Chandler Road (County Road No. 114), said iron pin being the northeast corner of the 64.28 acre tract herein described and the northwest corner of Lot 1, Block "A ", Oakmont Centre Section Two as recorded in Cabinet F, Slide 174 of the Plat Records, Williamson County, Texas, and from which beginning point the northeast corner of the said 94.39 acre tract of which the 64.28 acre tract described herein is a part of bears the N 70° 17' 00" E, 630.00' and N 19° 38' 36" W, 25.07'; THENCE S 19° 54' 10" E, along the southeast line of the 64.28 acre tract herein described, at 490.88' passing the southwest corner of Lot 1 and northwest corner of Lot 2 of said Oakmont Centre Section Two, at 664.21' passing the southwest corner of Lot 2 of said Oakmont Centre Section Two and the northwest corner of Lot 1, Oakmont Centre Section Five, a subdivision recorded in Cabinet F, Slide 140 of the Plat Records, Williamson County, in all 1500.36' to an iron pin at the southwest corner of Lot 1, Oakmont Centre Section Five, said iron pin being also on the north line of Lot 2 of Oakmont Centre Section Five, for the southeast corner of the 64.28 acre tract herein described; THENCE with the south line of the 64.28 acre tract herein described, and the north and west lines of Lot 2, Oakmont Centre Section Five, the following nine (9) courses: 1. N 72° 56' 57" W, 24.01' to an iron pin; 2. N 58° 11' 00" W, 157.52' to an iron pin; 3. S 68° 40' 00" W, 112.66' to an iron pin; 4. S 56° 03' 00" W, 373.98' to an iron pin; 5. S 23° 19' 15" W, 29.41' to an iron pin; 6. S 10° 26' 30" W, 69.49' to an iron pin; 7. S 6° 45' 30" E, 7934' to an iron pin; 8. S 18° 57' 45" W, 45.05' to an iron pin; 9. S 34° 14' 45" E, 226.38' to an iron pin on the north line of Lot 3, Oakmont Centre Section Five pin for the southeastmost corner of the 64.28 acre tract herein described; McNeil Tax Abatement 10 Agreement /Application FIELD NOTES Page 2 THENCE S 69° 59' 14" W, with the southmost line of the 64.28 acre tract herein described and the north line of Lot 3 Oalunont Centre Section Five, at 26.84' passing the east line of the said 38.58 acre of which the 64.28 acre tract herein described is a part of, in all 136.51' to an iron pin at the northeast corner of a 2.35 acre park tract as described in Volume 871 Page 369 of the Official Records, Williamson County, Texas; THENCE S 65° 03' 23" W, 238.66' with the southmost line of the 64.28 acre tract herein described and the north line of the said 235 acre park tract to an iron pin on the northwest corner of said 2.35 acre tract, being also the northeast cornet- of a 2.00 acre park tract as described in Volume 871 Page 374 of the Official Records, Williamson County, Texas; THENCE with the southmost line of the said 64.28 acre tract herein described and the north line of the said 2.00 acre park tract the following two (2) courses: 1. S 65° 00' 00" W, 163.40' to an iron pin; 2. S 72° 10' 00" W, 229.93' to an iron pin for the southmost corner of the said 64.28 acre tract herein described, said iron pin being also the northwest corner of the said 2.00 acre park tract, and located on an east line of a 14.064 acre park tract as described in Volume 778 Page 330 of the Official Records, Williamson County, Texas; THENCE with the west and south lines of the said 64.28 acre tract herein described and the east and north lines of the said 14.064 acre park tract the following four (4) numbered courses: 1. _--N 33° 51' 59" W, 529.14' to an iron pin; 2. S 76° 25' 00" W, 171.83' to an iron pin; 3. N 51° 10' 00" W, 172.71' to an iron pin; 4. N 80° 50' 00" W, 173.46' to an iron pin for a southwest corner of the 64.28 acre tract herein described, being also on the west line of the said 38.58 acre tract of which the 64.28 acre tract described herein is a part of, and being on the east Right -of -Way line of Inter - regional Highway 35; THENCE with the west lines of the said 64.28 acre tract herein described and the east Right -of -Way line of Inter - regional Highway 35, the following four (4) numbered courses: 1. N•0° 52' 19" W, 113.29 to an iron pin, being the northwest corner of the said 38.58 acre tract of which the 64.28 acre tract described herein is a part of, and the westmost comer of the.said 94.39 acre tract of which the 64.28 acre tract described herein is also a part of; 2. N 1° 02' 00" W, 326.48 to a concrete monument on the point of curvature of a curve to the right; FIELD NOTES Page 3 3. with said curve to the right having a radius of 1095.90', a central angle of 20° 51' 15 ", an arc length of 398.88', and a chord which bears N 9° 20' 0" E, 396.68' to a concrete monument; 4. N 15° 48' 00" E, 461.51' to an iron pin for the northwest corner of the 64.28 acre tract herein described, from which iron pin a concrete monument for the northwest corner of the said 94.39 acre tract of which the 64.28 acre tract herein described is a part of bears N 15° 48' 00" E, 31.18'; THENCE N 70° 18' 28' E, 1338.57' with the north line of the said 64.28 acre tract herein described and the south Right -of -Way line of Chandler Road (County Road No. 114) to the point of BEGINNING and containing 64.28 acres of land. That I, Jose M. Gil a Registered Professional Land Surveyor, do hereby state :nat the field notes provided hereon are true and correct to the best of my knowledge prepared from all available documents. Jose M. Gil, R.P.LS. MC `fEIL- COI`ESUI"l R PRODUCTS CO. I✓���o SOY S <E C 113 226 46 5 D' 52' 19 u CH050 5505410 5 5 20' 55. 5 001101105 + 355,x5' ARC 35066 RADIUS 2 955D - DELTA D' 51 15 CNA O N 0 Uw 3�J L FLAGS OF BEGINNING V 0 p,0 ..-::::A— ZS°l \ \ o \ \\ ° °4 t - \ 1 ° o \ . \ \ o \ NN-C'6 \ \ iN \ \ \ ° ° \ \ \ i/\ \ \ \\ \ \ \ \ \ SCALE r = so0' \ \ - \ \ \ \ \ !1 > 1 \ \ \ O \ \ \ " : \ \ 1 11 \ T I 1 \ • 3 1-4 ° \\ c eh' l0 \ / \ e °yh °& \ I 1 \\ i \ 1 1 \ vs' x n" \ \ \ \ \ '5--5 i7 i \ i , fir 's +.•-�� - \ \ N EXHIBIT B Description of Improvements To Be Constructed Rotogranulation New Granulation Equipment Vial Line Environmental Compliance Pouch Line Equipment New Business Equipment - THP New Business Equipment - Sage Other Building McNeil Tax Abatement 11 Agreement /Application 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: 9k 3 iqZ A. Company Name: McNEIL CONSUMER PRODUCTS COMPANY, a Division of McNeil - PPC, Inc. B. Address: 4001 North IH 35, Round Rock, Texas 78664 II. PROTECT INFORMATION: A. Description of area to be designated as reinvestment zone: (attach map) Reference Exhibit A B. Description of eligible improvements (real and personal property) to be constructed: Reference Exhibit B C. Current assessed value: $12,235,000 D. Estimated value of eligible improvements: 1992 -1993 $15,000,000 E. Description of ineligible (taxable) property to be included in project: Existing buildings and land McNeil Tax Abatement 12 Agreement /Application F. Estimated value of ineligible property: Land: $ 1,439,000 Buildings and Improvements: $10,796,000 G. Estimated value of site as of January 1 preceding abatement agreement: (1) Land: $1,439,000 (2) Improvements: $5,138,000 (3) Personal Property: $5,658,000 H. This project is: ( ) A New Plant (Machinery and equipment in existing building) ( ) An Expansion ( ) A Modernization If Modernization: Estimated economic life of existing plant: N/A years Added economic life from modernization: N/A years Tax abatement requested: 20% of eligible property for year 1. 20% of eligible property for year 2. 20% of eligible property for year 3. 20% of eligible property for year 4. 20% of eligible property for year 5. III. ECONOMIC INFORMATION: A. Construction Estimates: (1) Commencement Date: June, 19 92 (2) Completion Date: July, 1993 (3) Number of Construction Jobs: unknown B. Estimated number of jobs to be created: Not applicable. Purpose of abatement is job retention. McNeil Tax Abatement 13 Agreement /Application C. Other estimated taxes generated by project: (1) Sales Taxes: Sales tax on equipment (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) Other Taxing Jurisdiction: County Education District Water Control and Improvement District McNeil Tax Abatement 14 Agreement /Application pike,z4-4,1 Signature of Authorized Company Official Michael D. Gowen, Plant Manager Federal Tax ID No.: 1 - 22 - 1922092 - 3 Name and Title of State Tax ID No.: 22- 1922092 Authorized Company Official Company Representative to be contacted: Michael D. Gowen Name Plant Manager Title 4001 N. IH 35, Round Rock, Texas Address (512) 388 -6157 Telephone 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. McNeil Tax Abatement 15 Agreement /Application STATE OF /E x As COUNTY OF WILL inMSonf VERIFICATION BEFORE ME, the undersigned Notary Public, on this day personally appeared Michael D. Gowen, Plant Manager of McNeil Consumer Products Company, a division of McNeil - PPC, 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 the v?.:3 day of..Prrm a , 19 clA , to certify which witness my hand and official seal. nn Notary Public, State of 7 Printed Name :f0,4Rt L.. 44w My Commission Expires: ! McNeil Tax Abatement 16 Agreement /Application STATE OF NEW JERSEY COUNTY OF MIDDLESEX § § § EXIIIBIT D CERTIFICATE OF ADOPTION AND RESOLUTION I, Peter D. Bewley, Assistant Secretary of McNeil - PPC, Inc., a corporation duly authorized and existing under the laws of the State of New Jersey, 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 McNeil - PPC, Inc. on 6 c }-P--1 1 ` )552— , and that said resolutions have not been rescinded, amended, or modified: "RESOLVED, that the McNeil Consumer Products Company Division 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 4001 North IH 35, Round Rock, Texas, to be used for custom manufacturing and packaging. FURTHER RESOLVED, that Mark Letner, Vice - President - Operations 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 and seal of said corporation on this the /` day of 60- 1992. i Assistant Secretary of McNeil - PPC, Inc. McNeil Tax Abatement 17 Agreement /Application STATE OF NEW JERSEY COUNTY OF MIDDLESEX § BEFORE ME, the undersigned authority, on this day personally appeared Peter D. Bewley, Assistant Secretary of McNeil - PPC, Inc., a corporation, known to me to be the person who name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity herein stated and as the act and deed of said corporation. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the /sfr day of IOID4e.Y , 1992. Notary Public, State of N Jersey PEARLENE HUFF NOTARY PUBLIC OF NEW JERSEY My Commission Expires Mar.27, 1996 McNeil Tax Abatement 18 Agreement /Application ORDINANCE NO. g5/ S' AN ORDINANCE DESIGNATING A CERTAIN AREA AS REINVESTMENT ZONE NO. THREE FOR COMMERCIAL /INDUSTRIAL TAX ABATEMENT, CITY OF ROUND ROCK, TEXAS, ESTABLISHING THE BOUNDARIES THEREOF AND OTHER MATTERS RELATING THERETO. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: WHEREAS, the City Council of the City of Round Rock, Texas (the "City "), desires to promote the development or redevelopment of a certain contiguous geographic area within its jurisdiction by the creation of a reinvestment zone for commercial /industrial tax abatement, as authorized by Chapter 312, Tax Code, V.A.T.S. (the "Code "); and WHEREAS, the City Council called a public hearing for 7:00 P.M. on the 25th daycof June, 1992, to consider establishment of a reinvestment zone, such date being at least seven (7) days after the date of publication of the notice of such public hearing and the notification of other taxing jurisdictions as required by the Code; WHEREAS, the City held such public hearing after publishing notice of such public hearing, and giving written notice to all taxing units overlapping the territory inside the proposed reinvestment zone; and WHEREAS, the City at such hearing invited any interested persons to appear and contend for or against the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory described in the Ordinance calling such hearing should be included in such proposed reinvestment zone, the concept of tax abatement; and WHEREAS, the proponents of the reinvestment zone offered evidence, both oral and documentary, in favor of all of the foregoing matters relating to the creation of the reinvestment zone, and opponents of the reinvestment. zone appeared to. contest creation of the reinvestment zone; 1 ( NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,THAT: SECTION 1: The facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct. SECTION 2: The City Council, after conducting such hearings and having heard such evidence and testimony, has made the following findings and determinations based on the testimony presented to it: (a) That a public hearing on the adoption of the reinvestment zone has been properly called, held, and conducted and that notices of such hearings have been published as required by law and mailed to all taxing units overlapping the territory inside the proposed reinvestment zone; and (b) That the boundaries of the reinvestment zone should be the area as described in Exhibit A attached hereto, and (c) That creation of the reinvestment zone for commercial /industrial tax abatement with boundaries as described above will result in benefits to the City and to the land included in the zone and the improvements sought are feasible and practical; and (d) That the reinvestment zone as defined above meets the criteria for the creation of a reinvestment zone as set forth in Section 312.202 of the Code in that it is "reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City"; and 2 SECTION 3: Pursuant to Section 312.201 of the Tax Code, V.A.T.S., the City hereby creates a reinvestment zone for commercial /industrial tax abatement encompassing only the area described in section 2 of this ordinance and such reinvestment zone is hereby designated as Reinvestment Zone No. Three, City of Round Rock, Texas. SECTION 4: The reinvestment zone shall take effect on the adoption of this Ordinance and shall expire five years after such date. SECTION 5: If any portion of this Ordinance shall, for any reason, be declared invalid by any court or competent jurisdiction, such invalidity shall not affect the rerriaining provisions hereof. Alternative 1. b1� READ, PASSED, and ADOPTED on first reading this ,25 — day /YL ,199 (e) That the reinvestment zone as defined above meets the criteria for the creation of a reinvestment zone as set forth in the City of Round Rock criteria and guidelines adopted by Ordinance No. 2556, on December 12th, 1991. By motion duly made, seconded and passed with an affirmative vote of all the Council members present, the requirement for reading this Ordinance on two separate days was dispensed with. 3 Alternative 2. ATTEST: 4 READ and APPROVED on first reading this the day of 199 READ, PASSED, and ADOPTED on second reading this the of ,199 0,1 01,1, MIKE ROBINSON, Mayor City of Round Rock, Texas day Exhibit A FIELD NOTES McNEIL CONSUMER PRODUCTS CO. ROUND ROCK, TEXAS FIELD NOTES FOR A 64.28 ACRE TRACT OF LAND OUT OF THE EPHRAIM EVANS SURVEY, ABSTRACT NO. 2x2, BEING ALSO THE REMAINING 45.44 ACRES OF THAT CERTAIN 94.39 ACRE TRACT OF LAND CONVEYED TO McNEIL LABORATORIES, INC. BY A WARRANTY DEED RECORDED IN VOLUME 657 PAGE 659, AND THE REMAINING 18.83 ACRES OF THAT CERTAIN 38.58 ACRE TRACT CONVEYED TO McNEIL LABORATORIES, INC. BY WARRANTY DEED RECORDED IN VOLUME 657 PAGE 655 OF THE WILLIAMSON COUNTY OFFICIAL RECORDS. SAID REMAINING 64.28 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS A FOLLOWS: BEGINNING at an iron pin on the south Right -of -W t line of Chandler Road (County Road No. 114), said iron pin being the northeast co /ner of the 64.28 acre tract herein described and the northwest corner of Lot 1, Block "5A ", Oakmont Centre Section Two as recorded in Cabinet F, Slide 174 of the Plat Records,,Williamson County, Texas, and from which beginning point the northeast corner of the said 94.39 acre tract of which the 64.28 acre tract described herein is a part of bears the N 70° 17' 00" E, 630.00' and N 19° 38' 36" W, 25.07'; ti THENCE S 19° 54' 10" E, along the southeast line of the 64.28 acre tract herein described, at 490.88' passing the southwest corner of Lot 1 and northwest corner of Lot 2 of said Oakmont Centre Section Two, at 664.21' passing the southwest corner of Lot 2 of said Oakmont Centre Section Two and the northwest corner of Lot 1, Oakmont Centre Section Five, a subdivision recorded in Cabinet F, Slide 140 of the Plat Records, Williamson County, in all 1500.36' to an iron pin at the southwest corner of Lot 1, Oakmont Centre Section Five, said iron pin being also on the north line of Lot 2 of Oakmont Centre Section Five, for the southeast corner of the 64.28 acre tract herein described; THENCE with the south line of the 64.28 acre tract herein described, and the north and west lines of Lot 2, Oakmont Centre Section Five, the following nine (9) courses: 1. N 72° 56' 57" W, 24.01' to an iron pin; 2. N 58° 11' 00" W, 157.52' to an iron pin; 3. S 68° 40' 00" W, 112.66' to an iron pin; 4. S 56° 03' 00" W, 373.98' to an iron pin; 5. S 23° 19' 15" W, 29.41' to an iron pin; 6. S 10° 26' 30" W, 69.49' to an iron pin; 7. S 6° 45' 30" E, 79.34' to an iron pin; 8. S 18° 57' 45" W, 45.05' to an iron pin; 9. S 34° 14' 45" E, 226.38' to an iron pin on the north line of Lot 3, Oakmont Centre Section Five pin for the southeastmost corner of the 64.28 acre tract herein described; FIELD NOTES Page 2 THENCE S 69° 59' 14" W, with the southmost line of the 64.28 acre tract herein described and the north line of Lot 3 Oakmont Centre Section Five, at 26.84' passing the east line of the said 38.58 acre of which the 64.28 acre tract herein described is a part of, in all 136.51' to an iron pin at the northeast corner of a 2.35 acre park tract as described in Volume 871 Page 369 of the Official Records, Williamson County, Texas; THENCE S 65° 03' 23" W, 238.66' with the southmost line of the 64.28 acre tract herein described and the north line of the said 2.35 acre park tract to an iron pin on the northwest corner of said 2.35 acre tract, being also the northeast corner of a 2.00 acre park tract as described in Volume 871 Page 374 of the Official Records, Williamson County, Texas; THENCE with the southmost line of the said 64.28 acre t 'act herein described and the north line of the said 2.00 acre park tract the following two (2) courses: 1. S 65° 00' 00" W, 163.40' to an iron pin;' 2. S 72° 10' 00" W, 229.93' to an iron pin: for the southmost corner of the said 64.28 acre tract herein described, said iron pin being also the northwest corner of the said 2.00 acre park tract, and located on an east line of a 14.064 acre park tract as described in Volume 778 Page 330 of the Official Records, Williamson County, Texas; THENCE with the west and south lines of the said 64.28 acre tract herein described and the east and north lines of the said 14.064 acre park tract the. following four (4) numbered courses: 1. N 33° 51' 59" W, 529.14' to an iron pin; 2. S 76° 25' 00" W, 171.83' to an iron pin; 3. N 51° 10' 00" W, 172.71' to an iron pin; 4. N 80° 50' 00" W, 173.46' to an iron pin for a southwest corner of the 64.28 acre tract herein described, being also on the west line of the said 38.58 acre tract of which the 64.28 acre tract described herein is a part of, and being on the east Right - - Way line of Inter - regional Highway 35; THENCE with the west lines of the said 64.28 acre tract herein described and the east Right - of - Way line of Inter regional Highway 35, the following four (4) numbered courses: 1. N•0° 52' 19" W, 113.29 to an iron pin, being the northwest corner of the said 38.58 acre tract of which the 64.28 acre tract described herein is a part of, and the westmost comer of the said 94.39 acre tract of which the 64.28 acre tract described herein is also a part of; 2. N 1° 02' 00" W, 326.48 to a concrete monument on the point of curvature of a curve to the right; FIELD NOTES Page 3 3. with said curve to the right having a radius of 1095.90', a central angle of 20° 51' 15 ", an arc length of 398.88', and a chord which bears N 9° 20' 0" E, 396.68' to a concrete monument; 4. N 15° 48' 00" E, 461.51' to an iron pin for the northwest corner of the 64.28 acre tract herein described, from which iron pin a concrete monument for the northwest corner of the said 94.39 acre tract of which the 64.28 acre tract herein described is a part of bears N 15° 48' 00" E, 31.18'; THENCE N 70° 18' 28' E, 1338.57' with the north line of the said 64.28 acre tract herein described and the south Right -of -Way line of Chandler Road (County Road No. 114) to the point of BEGINNING and containing 64.28 acres of lang. That I, Jose M. Gil, a Registered Professional Land Surveyor, do hereby statc : nat the field notes provided hereon are true and correct to the best of my knowledge prepared from all available documents. Jose M. Gil, R.P.L.S. MCh IIL_ CONSUN1S PRODUCTS �ISI_D HOTS S �STCI--I n 1. 00 0 28 10 8 0 62 19 11329' CN000 00ARING N 9' 20 00 e g6TANCE - 9988E ARC a 0980' RAMS 109590 OeLTA 20 51' 6' 6 n °P m � G O ' 61N or N 2 PLACE OF BEGINNING \ . N 19' 36' 8 {{�� 250T ii�' 12 \ \ \ \\ \ '. \ p p \ 0 , \ \ o o • \ Y o \ \ @ \ ' s \\ \ G \ O 0 \ \ \ \ \\ N \ \ \\ SCALE r = SOO' a \\ \ \\ \ % c \ \ \ v @ ' s \\ \ \ \ ` \ o II \ i 1 1 \ ? i 3 7 \\ ▪ bN 0 \ I a y^' io a \ I 1 \ \ \ \ \ \\ \\ -..._---- 7 /j V0< 2 ary i \ \ \ 2 \ ♦x g, is � \\ CO. as amended, and as authorized by Resolution No. 1758R, dated October 22, 1992, the City entered into a tax abatement agreement with McNeil Consumer Products Company, a Division of McNeil - PPC, Inc., regarding property in Reinvestment Zone No. Three; and WHEREAS,the City, the Williamson County Commissioners Court, WHEREAS,in accordance with Chapter 312, Tax Code, V.A.T.S., and McNeil Consumer Products Company, a Division of McNeil - PPC, Inc intended for the agreement to include the abatement of personal property taxes; and WHEREAS,the parties desire to amend the agreement to include language evidencing their intentions; 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 an behalf of the City that certain Amendment No. 1 to the Tax Abatement Agreement with McNeil Consumer Products Company, a Division of McNeil - PPC, Inc. RESOLVED this 14th day of August, 1997. ATTEST: LAND, City Secretary R:\ NPOOOS \RzSOLOSI\A47OB1lJ.NPD/k,E RESOLUTION NO. R- 97- 08- 14 -13J CHARLES CUiatER, MAYOR CITY OF ROUND ROCK, TEXAS THE STATE OF TEXAS COUNTY OF WILLIAMSON AMENDMENT NO.1 TO TAX ABATEMENT AGREEMENT WITH MCNEIL CONSUMER PRODUCTS CO. A DIVISION OF MCNEIL -PPC, INC. This Amendment No. 1 is entered into this the /`t' day of 1987 to amend that certain agreement authorized by City of Round Rock Resoluti No. 1758R, dated October 22. 1992, and by order of the Williamson County Commissioners Court on October 26, 1992, to abate certain property taxes of McNeil Consumer Products Company, a Division of McNeil - PPC, Inc., for the Tax Years 1993 - 1997, inclusive. WHEREAS, it was the intention of all parties that said above referenced Tax Abatement Agreement was to include the abatement of personal property taxes; and WHEREAS, the parties desire to include language in said Agreement evidencing their intentions; NOW THEREFORE, the parties hereby do mutually agree to amend said Agreement as follows: 1. Paragraph 4. is amended to read as follows: 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 or personal property 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 such ad valorem or personal property 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 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 by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: I: \VDU \ CITY \ADUNDBDC \SAAABATEUMlCNX.IL /k.h 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 and County without the benefit of abatement (without the addition of penalty, but interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) shall become a debt owed by Owner 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. 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 damages in the event of default and termination would be speculative and impossible to determine. 2. That Paragraph 10 is amended to read as follows: 10. Subject to the terms and conditions of the Agreement, and subject to the rights of the holders of any outstanding bonds of the City and County, a portion of ad valorem real property taxes and personal property taxes assessed against the Premises 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 Premises 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: Tax Year 1993 Tax Year 1994 Tax Year 1995 Tax Year 1996 Tax year 1997 McNeil Consumer Products Company 4001 North IH 35 Round Rock, Texas 78664 20% abatement 20% abatement 20% abatement 20% abatement 20% abatement These abatements shall be for five (5) tax years beginning January 1, 1993. 3. Retroactive application. It is the intentions of the parties that this Amendment No. 1, shall be effective as of the effective date of the original Tax Abatement Agreement, as if this amendment was fully written therein at such time. 2. ATTEST: Witness our hands this day of LLt1 „7 1997. CI / OF ROUND ROCK, TEXAS CHARLES PEPPER, MAYOR WILLIAMSON COUNTY COMMISSIONERS COURT MCNEIL CONSUMER PRODUCTS CO., . A DIVISION OF MCNEIL - PPC, INC. P64-Nrr /� 01 ,4 -7 � anuel A. Solis !vim ITS Plant 3. )/ 9- I(8-9 /{ N TYJUDGE I I DATE: August 12,1997 SUBJECT: City Council Meeting, August 14,1997 Item: 13.J. Consider resolution authorizing the Mayor to execute Amendment No. 1 to the Tax Abatement Agreement with McNeil Consumer Products Company, a Division of McNeil - PCC, Inc. Staff Resource Person: Joe Vining Staff Recommendation: Approval The attached Amendment No. 1 with McNeil Consumer Products Company, a Division of McNeil -PCC, Inc. clarifies for the Williamson County Appraisal District our intention to include personal property in this agreement.