R-93-04-12-4A - 4/12/1993WHEREAS, DELL COMPUTER CORPORATION ( "DELL ") is one of the
fastest growing Fortune 500 companies in the world, and
WHEREAS, DELL is in need of expanding its facilities to
accommodate its expected continuing growth, and
WHEREAS, DELL has expressed to the CITY OF ROUND ROCK ( "CITY ")
its desire to maintain its strong competitive position in the computer
industry by entering into a "partnership" with a local governmental
entity in the form of a mutually beneficial economic development
program, and
WHEREAS, §380.001 Local Government Code provides that a
municipality may establish a program ( "Program ") to promote local
economic development and to stimulate business and commercial activity
in the municipality, and
WHEREAS, the City Council has determined that the Program
described in Exhibit A will meet the goals set forth in said §380.001
and will be of mutual benefit to both parties, NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS, THAT
The Mayor is hereby authorized and directed to offer to DELL a
§380.001 Program in exchange for DELL locating its needed expansion
facilities in the City of Round Rock, and
RSDELL
RESOLUTION NO. k-93-01-/- 2/7)
ATTEST:
BE IT FURTHER RESOLVED, THAT
The offer of the Program shall be as generally outlined in
Exhibit A which is attached hereto and incorporated herein, and
BE IT FURTHER RESOLVED, THAT
Upon acceptance by DELL of the offer as outlined in Exibit A, the
City Manager and City Attorney are authorized and directed to begin
immediately to negotiate and draft the final documents to implement
the Program.
RESOLVED this 12th day of April, 1993.
NE
LAND, City Secretary
2.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
RSDELL -A
EXHIBIT A
r.
The terms of the §380.001 Program to be offered to DELL in
exchange for DELL locating its needed expansion facilities to the
City of Round Rock are as generally outlined below:
1. The CITY agrees to share with DELL the proceeds of all
sales and use tax directly generated by DELL in the City
as follows:
a) The CITY will retain as its share of the sales and
use tax the one -half cent of the tax devoted to the
reduction of ad valorem property tax and 37.5% of
the remaining sales and use tax revenue.
b) DELL will receive as its share of the sales and
use tax, 62.5% of the tax proceeds other than the
one -half cent devoted to the reduction of ad
valorem property tax.
2. When DELL moves a significant portion of its facilities
to Round Rock, the CITY agrees to share with DELL the
proceeds of the CITY'S ad valorem tax collected by the
CITY on property owned or leased by DELL as follows:
a) For the first five (5) years of the agreement, DELL
will receive a refund of 100$ of the ad valorem tax
payment.
b) For the second five (5) years of the agreement,
DELL will receive a refund of 75% of the ad valorem
tax payment.
c) For the remaining term of the agreement, DELL will
receive a refund of 50% of the ad valorem tax
payment.
3. The CITY agrees to construct and fund needed infra-
structure improvements in the approximate amount of
$500,000.
4. Applicable permit fees will be waived, with the exception
of steel inspection fees.
5. The CITY will cooperate in the issuance of Industrial
Revenue Bonds in the approximate amount of $50 million to
fund the land acquisition and construction costs of
buildings having approximately 600,000 square feet of
area. The bonds will not be an obligation of the City,
but will be secured solely by DELL'S share of the tax
proceeds outlined in paragraphs 1. and 2. above and its
lease payments for the facilities.
6. The CITY will devote the necessary personnel to DELL'S
project to assure that it is permitted and constructed in
the least amount of time as is possible.
7. The term of the initial agreement will be for 20 years
with provisions for renewal.
2.
Jtr I bI;UtLL C,Ultlt•UItK ; - lb - U4 : 4 :44Cl1
Ilily 15, 1994
11441 ('nmPuler ('n po. IInu
U-503 Arburvmnr 1Nrd
Araan. laws 787.w./209
Mr. David Kautz
Director of Finance
City of Round Rock
221 E. Main Street
Round Rock, Texas 78664
7ilejihone 512.338.4400
7idelnt 3/1.77&365
l)tLL IAA MN b12 2bb bb/b:; 1/ 1
Dear David:
1 am writing to update you on the status of the action items from our meeting on July 8th. You should have
received by fax today a copy of the request for release of information mailed to Sandra Joseph in the State
Comptroller's Office. You should also receive a copy of the real estate appraisals today. The sales tax
summary will be delivered to you on Monday. July 18th. Thc final item I need rovide you with is
information on Dell purchases. You should have this information by the end o ul •
If you have any questions or need additional information, please contact me at (512) 728 -3366.
Sincerely,
e „ La)(J. (0,49,..)
Cynthia A. Oakes
State and Local Tax Manager
01-111 U1•ULL1 t.Vla U1Ln
L
Dell Computer Corporation
950 A.- hr.orwrr 177rJ.
Auxli*, 71•,0, 78759 7799
July 15, 1994
Ms. Sandra Joseph
State Comptroller Office
P.O. Box 13528
Austin, Texas 78711
Re: Release of information
cc; Mr. David Kautz
• 1 • 1.40rx •
1;4rphnar 5@-778,4300
'i 1.[.rx 517.728.765.7
UtLL IAA Utrl 512 255 6676;# 1/ 1
Dear Ms. Joseph:
Under the incentive agreement Dell has with the City of Round Rock, Dell will submit information to the
City at the end of each calendar month regarding the City sales tax collected and remitted to the State
Treasurer supporting the calculation of the Program Payment. The City has requested access to
iafomiation the State has regarding Dell because they are required to independently verify the sales tax
numbers provided for in the Program Payment calculation.
Therefore, Dell authorizes the City of Round Rock City Manager, Robert L. Bennett, Jr., and/or Director
of Finance, David Kautz, to request and receive any and all reports or information regarding sales and use
taxes collected, paid or refunded on behalf of any of the following Dell entitles.
Dell Marketing L.P. 1- 74- 2616805 -4
Dell Direct Sales L.P. 1-74-2616804-7
Dell Catalog Sales 1..P. 1 -74- 2683839 -1
Dell World Trade L.P 1 - 2622003 -
Dell Products L.P. 1 -74- 2616803 -9
Doll USA L.P. 1-74-2616802-1
DellWare Direct L.P. Applied for
Such requests would include monthly Texas Sales and Use Tax Reports, monthly Direct Pay Reports ,
amended returns , audit adjustments and any other requests for information the Comptroller may have
regarding City of Round Rock sales and use tax collected by, paid by or refunded to a Dell entity. This
authorization is effective for requests for information for periods on or after August 1, 1994 and should
remain in effect until such time that you are notified by Dell to discontinue honoring the requests of the
City regarding the release of Information related to Dell.
If you have any questions or need additional information regarding this authorisation, please contact
Cynthia A. Oakes in our State and Local Tax Department at (512) 728 -3366.
R. Thomas Armstrong
Vice President Tax and Administration