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R-95-03-23-10A - 3/23/1995ATTEST: 4 LAND, City Secretary JO ESOLUTION 55503235 RESOLUTION NO. /l' 9 J �3 - 23 - 0/9 WHEREAS, the City Council, on the 23rd day of March, 1995, in Ordinance No. G- 95- 03- 23 -9A, created Reinvestment Zone No. Seven 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 the CINTAS Corporation regarding property located in said Reinvestment Zone No. Seven, and WHEREAS, the Council has determined that all requirements of the guidelines and criteria adopted by Ordinance No. G- 93- 12 -09 -9G 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 the CINTAS Corporation. RESOLVED this 23rd day of March, 1995. THE STATE OF TEXAS COUNTY OF WILLIAMSON CB /CINTAS.WP TAX ABATEMENT AGREEMENT k- 95-- 03 -J3 -/; 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" and CINTAS Corporation, duly acting by and through its President or any Vice President, hereinafter referred to as "Owner ". WITNES SETH: WHEREAS, on the 23rd day of March. 1995 the City Council of the City of Round Rock, Texas, passed Ordinance No. G- 95- 03 -23 -9A establishing Reinvestment Zone No. 7, City of Round Rock, Texas for commercial/industrial tax abatement, hereinafter referred to as "Ordinance No. G- 95- 03- 23 -9A" 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 G- 93- 12- 09 -90, 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 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. G- 93- 12 -09 -9G 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. 2 in accordance with the purposes for its creation and are in compliance with Ordinance No. G- 93-12-09-9G 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. 7 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 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 of approximately Three Million Eight Hundred Thousand Dollars and no /100's ($3,800,000.00) and to be substantially complete on or about March 31, 1996; provided, that Owner shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if Owner is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Owner), fires, explosions or floods, and strikes. The date of completion of the Improvements shall be defined as the 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 2. 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 CINTAS Corporation. 4. The Owner agrees and covenants that the Improvements shall provide employment according to the following accumulative schedule: By December 31, 1997: 75 jobs By December 31, 1998: 85 jobs By December 31, 1999: 95 jobs The Owner shall provide to the City and County annual manpower reports, attached hereto as Exhibit "E" and made a part hereof, within sixty (60) days following the end of each calendar year. Regardless of anything contained herein to the contrary, the failure by Owner to provide the number of jobs set out in the above schedule shall not be considered an event of default as defined in paragraph 6 below unless the number of jobs actually provided is less than seventy - five percent (75 %) of number set out in the schedule. If the actual number of jobs provided at the end of any year is less than the scheduled number but is seventy-five percent (75 %) or more, then the percentage of tax abatement for the following year as provided in paragraph 11 below shall be reduced. The percentage of tax abatement shall be reduced by the same percentage that the actual number of jobs are less than the scheduled number of jobs. By way of illustration, the schedule requires 75 jobs by December 31, 1997, but if only 68 jobs are provided, then the tax abatement for 1997 shall be reduced from 90% to 80% (i.e. 69 / 75 = 90% of required jobs, thus 90% less 10 %). Similarly, the schedule requires 95 jobs by December 31,1999, but if only 76 jobs are provided, then the tax abatement for 1999 shall be reduced from 30% to 10% (i.e. 76 / 95 = 80% of required jobs, thus 30% less 20 %). By way of clarification, failure to provide at least seventy-five percent (75 %) of the number of jobs shown on the above schedule shall be considered an event of default of this Agreement. 3. 5. The Owner agrees and covenants that the Premises shall contain taxable personal Property and equipment with an assessed value of not less than that shown on the following cumulative schedule: Upon completion: $1.500,000.00 Dec. 31 1997 $1.500,000.00 Dec. 31 1998 $1.570.000.00 Dec. 31 1999 $1,640,000.00 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 the facility. 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. 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 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: 4. CINTAS CORPORATION 6800 CINTAS Blvd., PO Box 625737 Cincinnati, OH 45262 -5737 Attn: Scott Clark 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 and 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. 7. 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. 8. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. This Agreement cannot be assigned by Owner unless written permission is first granted by the City and County, which permission shall not be unreasonably withheld. No assignment shall be approved if the assignor or assignee are indebted to the City or County for ad valorem taxes or other obligations. 9. 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 5. and hold City and County harmless from any and all kinds of claims, losses, damages, injuries, suits, or judgments. 10. The Owner further agrees that the City and County, their agents and employees shall have the right to enter upon the Premises at any reasonable time to inspect the Improvements in order to determine whether the construction of the Improvements is in accordance with this Agreement and all applicable Federal, State, and Local laws, ordinances, and regulations or valid waiver thereof. After completion of the Improvements, the City and County shall have the continuing right to enter upon and inspect the Premises at any reasonable time to determine whether the Premises are thereafter maintained an operated in accordance with this agreement and all applicable Federal, State, and Local laws, ordinances, and regulations. If the City or County determines that a violation of a Federal, State or Local law, ordinance or regulation exists on the Premises, the City or County may, in addition to any other authorized enforcement action, provide to the Owner written notice of such violation. For the purposes of this Agreement, the Owner shall have ten (10) days from the date of the notice to cure or remedy such violation. If the Owner fails or refuses to cure or remedy the violation within the ten (10) day period, the Owner is subject to the forfeiture, at the discretion of the City and/or County, of any right to any tax abatement for a portion of the period or the entire period covered by the Tax Abatement Agreement. 11. Subject to the terms and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City and 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: 6. Year 1997 2Q% abatement Year 1998 60% abatement Year 1999 30% abatement These abatements shall be for 3 years beginning January 1 1997. 12. The Owner agrees and covenants that the attached application for tax abatement (Exhibit "C ") is a part of this agreement, and Owner further warrants that the information provided in that application is true and correct and that any materially false or misleading information that is provided to the taxing jurisdictions may be grounds for termination of the agreement with possible liability for recovery of abated taxes. 13. It is understood and agreed by the City, 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. 14. This Agreement was authorized by Resolution of the City Council at its council nd, meeting on the day of dA r/v , 19 9.4-authorizing the Mayor to execute the Agreement on behalf of the City. 15. This Agreement was entered into by CINTAS Corporation pursuant to authority granted by its Board of Directors on the 1 lth day of November, 1994, whereby the Assistant Secretary was authorized to execute this Agreement on behalf of CINTAS Corporation a copy of which authorization is attached hereto as Exhibit "D ". 16. This shall constitute a valid and binding Agreement between the City and CINTAS Corporation when executed in accordance herewith. 19. This Agreement is perfo able in Williamson County, Texas. Witness our hands this AS day of n it c �C� , 19 g.� 7 ATTEST: APPROVED A TO FORM: Sheets, City Atto ey 8. CITY OF ROUND ROCK, TEXAS By: V CHARLES C PPER, Mayor ATTEST: By rinte Name: IMINTSIMIL Title S ' • - ' APPROVED AS TO FORM: By: Printed Name: Ho ' -,- Attorney for Corporation APPROVED AS TO FORM: GG� By: Name: Attorney for Williamson County 9. CINTAS CORPORATION By: Prin d N4Ene. Title: Wee_ COMMISSIONERS COURT OF WILLIAMSON COUNTY omit T ea 6 e 6lil�tht By: C . J DOERFLER, C ty Judge EXHIBIT "A" Page 1 of 3 Property Description Lot 5A, Replat of Lot 5, Oakmont Center Section Seven (5.00 acres of land) 10 AUSTIN SURVEYORS P.O. BOX 110243 AI1.2124.7X 71210 2105 JUSTIN Lea 4111 TM-WHOM (3I7)434f503 Exhibit A Page 2 of 3 FIELD NOTES FOR 5.000 ACRES All that certain tract or parcel of land situated in the Ephraim Evans Survey . A -212. in Williamson County, Texas and being all of Lot 5 in Block A of Oakmont Centre Section Seven as recorded in Cabinet I Slide 296 of the Plat Records of Williamson County, Texas and being more particularly described by metes and bounds as follows: BEGINNING at an iron pin found on the North line of Oakmont Drive for the East corner of Lot 3 in Block A of Oakmont Sentre Section Five as recorded in Cabinet F, Slide 139 of the above mentioned Plat Records and the South corner of the above mentioned Lot 5 for the South corner of this tract. THENCE N 18 ° 58'51" w with the Southwest line Of the said Lot 5 546.58 feet to an iron pin set for the Northwest corner of this tract. THENCE S 87 ° 37'53" E 569.61 feet to an iron pin set on the West line of Cypress Drive for the Northeast corner of this tract. THENCE S 02 ° 22'07" V1 with the West line of. Cypress Drive 410.13 feet to an iron pin set in the PC of a curve to the right said curve having a'radius of 25.00 feet and a central angle of 90 °01'13 ". THENCE with the arc of the said curve 39.28 feet the long chord of which bears S 47 °22'45" W 35.36 feet to an iron pin set on the North line of Oakmont Drive for the PT of the said curve. THENCE H 87 ° 37'20" W 100.00 feet to an iron pin found in the PC of n curve.to the left said curve having a radius of 430.00 feet and a central angle of 28 °32'57 ". THENCE with the arc of the said curve 214.26 feet the long chord of which bears S 78 °06'10" W 212.05 feet to an iron pin found for the PT of the said curve. THENCE S 63 ° 57'24" W 45.61 feet to the POINT OF BEGINNING containing 5.000 acres of land, more or less. I, Claude F. Hinkle Jr, a Registered Professional Land Surveyor, do hereby certify that these field notes accurately represent the results of an on- the - ground survey made under my supervision during December of 1994 and are correct to the best of my knowledge and belief. Date 1 1. Claude F. Hinkle, Jr. R.P.L.S. 04629 /2 -zi- 94/ U-) z U Exhibit A Page 3 of 3 12. EXHIBIT "B" Description of Improvements To Be Constructed The proposed facility is to be a 40,000 square foot, single story masonry constructed facility. Approximately 31,000 square feet will be used to process rental uniforms, including laundering, sortation, finishing and mending operations. Approximately 9,000 square feet will be used as a general purpose office facilities. The processing facility will be equipped with industrial washing machines, gas fired industrial dryers, conveying systems, pressing and finishing stations. The office facility will be equipped with standard office furnishings, including desks, chairs, file cabinets, personal computers and the like. The facility will be able to accommodate 14,000 square feet of future expansion and include 120 parking spaces. 13. 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 A. Company Name: CINTAS CORPORATION /CINTAS R.U.S., INC. B. Address: 6800 CINTAS Blvd., PO Box 625737 Cincinnati, OH 45262 -5737 II. PROJECT 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: As described in Exhibit B C. Current assessed value: $334,000.00 D. Estimated value of eligible improvements: $3,500,000.00 E. Description of ineligible (taxable) property to be included in project: Land (5.00 acres) (Lot 5A, Replat of Lot 5, Block A, Oakmont Center Section 7) F. Estimated value of ineligible property: $334,000.00 G. Estimated value of site as of January 1 preceding abatement agreement: (1) Land: $ 334,000.00 H. This project is: )A New Plant ( ) An Expansion ( ) A Modernization If Modernization: Estimated economic life of existing plant: n/a years Added economic life from modernization: n/a years 14. Company Representative to be contacted: Name: ltz T ^ I J �� Title: 11 Address:( �'� tirrr� r .u. , ti- -Z7 / Telephone: 66, .. "-;) 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. 16. I. Tax abatement requested: 90% of eligible property for year 1. 60% of eligible property for year 2. 30% of eligible property for year 3. III. ECONOMIC INFORMATION: A. Construction Estimates: (1) Commencement Date: March 15, 1995 (2) Completion Date: December 31, 1995 (3) Number of Construction Jobs: 50 B. Estimated number of jobs to be created: Local Transfer Total Est. Salaries 1. December 31, 1997 19 56 75 1,800,000.00 2. December 31, 1998 29 56 85 2,100,000.00 3. December 31, 1999 39 56 95 2,400,000.00 C. Other estimated taxes generated by project: (1) Sales Taxes: 1996: $78,000 1997: $90,000 1998: $104,000 1999: $119,000 (2) Other (Identify): None 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 Jurisdictions: Water Control & Improvement District 43 of Williamson, Milani and Lee Counties 15. Signature of Authorized Company Official: By:/►+�` Pn edName: T..,es T Cats Title: Vic e Pre oaf ewt- STATE OF ‘4 Lc COUNTY OF X // VERIFICATION BE O ME, the undersigned Notary Public, on this day personally ppeared <<t � c.- , V4 c At d. 6.44 is of n v 3 a leart Pig (Owner), being by me duly sworn on his oath deposed and sa6 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. By: 4.4,4 P inted Name: lk o f T• C p 4 -e Title: U k-e Pet,' Jext— SUBSCRIBED AND SWORN TO BEFORE ME on the day of /AC t tryi, 1995, to certify which witness my hand and official seal. 17. • • • • a kit Nota>ublic, State of Te Printed Name: My Commission Expires: ELIZABETH A. BRZEZICKI Notary Public. State of Ohio My Commission Expires Mar. 25,1995 EXHIBIT "D" Resolution or Other Authorization Of Owner's Board of Directors 18. • • 214436/11/11/94 Aiet731T D CERTIFICATE OF THE SECRETARY OF CINTAS -RUS, INC. The undersigned, being the duly appointed and authorized Assistant Secretary of CINTAS -RUS, INC. (the "Corporation "), hereby certifies that attached hereto are true and accurate copies of the resolutions duly adopted by the Board of Directors of the Corpora- tion; such resolutions were duly adopted pursuant to authority granted in the By -Laws of such entity; each of the resolutions attached hereto is in full force and effect on the date hereof; and no such resolution has been revoked, modified, supplemented, or amended in any respect as of the date hereof. IN WITNESS WHEREOF, the undersigned has executed and delivered this Certificate as of the llth day of November, 1994. Assistant Secretary WHEREAS, the Board of Directors of CINTAS -RUS, INC. (the "Corporation ") has reviewed and considered the terms and conditions of the proposed Tax Abatement Agreement (the "Agreement ") to be executed by and between the Corporation and the City of Round Rock, Texas, a home rule city and Municipal Corporation of Williamson County, Texas, pursuant to which the City of Round Rock has agreed to award tax abatements to the Corporation in exchange for the Corporation's agreement to located and build a facility in the City of Round Rock. "RESOLVED: That the entering into of the Agreement by the Corporation is hereby ratified and confirmed and that the Corpora- tion complete and consummate the transactions provided for therein; and that the actions of any and all employees or officers of the Corporation, including but not limited to the actions of the President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary in negotiating, executing and carrying out the provisions of the Agreement are hereby approved, ratified and confirmed; and BE IT FURTHER RESOLVED: That any of the foregoing referenced officers of the Corporation shall be and hereby are authorized and directed to perform and shall satisfy all terms and conditions of the transactions provided for in the Agreement and shall execute and deliver on behalf of the Corporation any and all documents necessary or desirable to carry out such transactions in such forms as the officer executing the same may approve, whose execution shall finally and conclusively evidence such approval of the Corporation. 214383.1/11/11/94 • • ACTION TAKEN IN A WRITING BY ALL MEMBERS OF THE BOARD OF DIRECTORS OF CINTAS -RUS, INC. I EXHIBIT "E" MANPOWER REPORT , VC• ''f1Pmt-dttwl of CINTAS Corporation (Owner) do certify that on December 31, 19`Jthere were MK individuals employed full time at CINTAS Corporation. STATE OF -3 64-2 -) VOA/Lc COUNTY OF `dvN 19. Prirfted Name: Title: V , es/ eA1 Date: 3 /t3r9f BEFORE 1 the dm' otary Public, on this day personally appeared 41/ � of CINTAS Corporation (Owner), being by me dulorn of his oath deposed and said that he is duly qualified and authorized in all respects to make this affidavit; and that every statement contained in the Manpower Report is within his knowledge and true and correct. SUBSCRIBED) AND S WOJN TO BEFORE ME on the ,3 •3 day of 1.41i1. t c ' , 19 I_3 , to certify which witness my hand and official seal. Not. *'ublic, State of Printe. ame: My Commission Expires: r ELIZABETH A BRZEZICKI Nottry Public, State of Ohio My Commission Expires Mar. 28,1995 DATE: March 21, 1995 SUBJECT: City Council Meeting, March 23, 1995 ITEM: 10.A. Consider a resolution authorizing the Mayor to enter into an agreement for tax abatement with CINTAS Corporation Staff Resource Person: Joe Vining Staff Recommendation: Approval CINTAS is relocating to Round Rock and building a new facility of approximately 40,000 square feet in the Oakmont Center industrial park. Approximately 31,000 square feet will be used to process rental uniforms including laundering, sortation, finishing and mending operations. Approximately 9,000 square feet will be used as office facilities. The processing facility will be equipped with industrial washing machines, gas fired industrial dryers, conveying systems, processing and finishing stations. The facility will be able to accommodate 14,000 square feet of future expansion. CINTAS will employ a minimum of 95 employees at full operation. The company will operate two shifts per day, 5 days per week. The capital investment by CINTAS in their new facility will total approximately $3.8 million; the abatement will be on $3.5 million ($2.0 million for the improvements and $1.5 million for equipment). Using the current rate for the city and county, the value of the abatement is summarized below: % City AV County AV Year Abatement (.48896/$100) (.3542/$100) 1997 90% 15,402 11,157 ' 1998 60% 10,268 7,438 1999 30% 5,134 3,719 $30,804 $22,315 ECONOMIC IMPACT: Refer to abatement summary above. K:, `"crS \KG90LOtI \KS7OB1,6.WPD /kab RESOLUTION NO. R- 97- 08- 14 -13G WHEREAS,in accordance with Chapter 312, Tax Code, V.A.T.S., as amended, and as authorized by Resolution No. R- 95- 03- 23 -10A, dated March 23, 1995, the City entered into a tax abatement agreement with CINTAS Corporation regarding property in Reinvestment Zone No. Seven; and WHEREAS, the City, the Williamson County Commissioners Court, and CINTAS Corporation intended for the agreement to include the abatement of personal property taxes; and WHEREAS,CINTAS Corporation experienced unexpected delays in the construction of their facility and in order to realize the full benefit of the agreement, CINTAS Corporation has requested that the starting date be delayed until January 1998; and WHEREAS, the parties desire to amend the agreement to include language evidencing their intentions and to begin the agreement in 1998; 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 that certain Amendment No. 1 to the Tax Abatement Agreement with CINTAS Corporation. RESOLVED this 14th day of August, 1997. CHARLES CULPE ER, MAYOR CITY OF ROUND ROCK, TEXAS ATTEST: LAND, City Secretary 2 THE STATE OF TEXAS COUNTY OF WILLIAMSON I:\ MKT \ CItY\ ROUNDPOC \TAXABATE\11N11CIN.TAS /kaA AMENDMENT NO.1 TO TAX ABATEMENT AGREEMENT WITH CINTAS CORPORATION This Amendment No. 1 is entered into this the 1-I day of 1997 to amend that certain agreement authorized by City of Round Rock Resolu ' n No. R -95- 03-23-10A on March 23, 1995, and by order of the Williamson County Commissioners Court on March 28, 1995, to abate certain property taxes of CINTAS Corporation for the Tax Years 1998 - 2000, 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 6. is amended to read as follows: 6. In the event that (1) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement or (2) Owner allows its ad valorem 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: 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 11 is amended to read as follows: 11. 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 the original Agreement was 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 1998 Tax Year 1999 Tax Year 2000 CINTAS Corporation 6800 CINTAS Blvd. P.O. Box 625737 Cincinnati, OH 45262 -5737 Attn: Scott Clark 90% abatement 60% abatement 30% abatement These abatements shall be for three (3) tax years beginning January 1, 1998. 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: ATTEST: Witness our hands this day of 3. Cl F ROUND ROCK, TEXAS CHARLES L PPER, MAYOR WILLIAMSON COUNTY COMMISSIONERS COURT CINTAS CORPORATION L.�lLL G,a�E 1997. , ITS \hel mv_. -- DATE: August 12,1997 SUBJECT: City Council Meeting, August 14,1997 Item: 13.G. Consider a resolution authorizing the Mayor to execute Amendment No. 1 to the Tax Abatement Agreement with Cintas Corporation. Staff Resource Person: Joe Vining Staff Recommendation: Approval The attached Amendment No. 1 with Cintas Corporation clarifies for the Williamson County Appraisal District our intention to include personal property in this agreement.