R-95-10-12-13L - 10/12/1995RESOLUTION NO. R- 95- 10- 12 -13L
WHEREAS, Security Capital Industrial Trust, Inc, ( "Security
Capital ") is in need of expanding its facilities to accommodate
expected growth, and
WHEREAS, Security Capital has expressed to the City of Round
Rock ( "City ") its desire to expand in the City, and
WHEREAS, §380.001 Local Government Code provides that a
municipality may establish an economic development program ( "Program ")
to promote local economic development 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 COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the mayor is hereby authorized and directed to offer to
Security Capital a §380.001 Program in exchange for Security Capital
constructing facilities and providing new jobs in the City, and
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.
RESOLVED this 12th day of October, 1995.
ATTEST:
K. \RSSOLOTI \RS51013L.WP0 /kg
E LAND, City Secretary
CHARLES CU ER, Mayor
City of Round Rock, Texas
Exhibit "A"
The terms of the §380.001 Program to be offered to Security
Capital in exchange for Security Capital locating facilities and
providing jobs in the City of Round Rock is generally outlined below:
1. Subject to Security Capital constructing facilities in the
City and providing significant new jobs to the City, the
City agrees to share with Security Capital the proceeds of
the City's ad valorem property tax collected by the City on
property owned or leased by Security Capital as follows:
a) For the first year of the agreement, Security Capital
will receive a refund of ninety percent (90 %) of the
ad valorem tax payment.
b) For the second year of agreement, Security Capital
will receive a refund of sixty percent (60 %) of the ad
valorem tax payment.
c) For the third and final year of the agreement,
Security Capital will receive a refund of thirty
percent (30 %) of the ad valorem tax payment.
2
Year
Refund %
Contracted
Expenditures
Value of
Refund*
1996
90%
$ 1,580,891
$ 6,066
1997
60%
$ 1,580,891
4,044
1998
30%
$ 1,580,891
2,022
$12,132
DATE: October 10, 1995
SUBJECT: City Council Meeting, October 12, 1995
ITEM: 13.L. Consider a resolution establishing an Economic
Development Program pursuant to §380.001, Local
Government Code in exchange for Security Capital
Industrial Trust, Inc. locating an industrial facility in the
City.
Staff Resource Person: Joe Vining
Staff Recommendation: Approval
This resolution establishes the terms of the economic development program
which will allow a three year ad valorem tax rebate of city taxes only. The
terms of this program differ from the standard tax abatement contracts in that
the company will receive a full tax bill and will be able to discount the tax due
by the percentages allowed under the agreement.
The industrial facility which has been located in Round Rock is Mag Rabbit, a
firm that reproduces software magnetically and the software manuals for
distribution in the computer industry.
This three year tax rebate beginning January 1, 1996 for constructing facilities
and providing new jobs will have the following estimated economic impact:
ECONOMIC IMPACT:
*calculated at current tax rate of .42635/$100 AV
Substitute 13.L
DATE: October 10, 1995
SUBJECT: City Council Meeting, October 12, 1995
ITEM: 13.L. Consider a resolution establishing an Economic
Development Program pursuant to §380.001, Local
Government Code in exchange for Security Capital
Industrial Trust, Inc. locating an industrial facility in the
City.
Staff Resource Person: Joe Vining
Staff Recommendation: Approval
This resolution establishes the terms of the economic development program
which will allow a three year ad valorem tax rebate of city taxes only. The
terms of this program differ from the standard tax abatement contracts in that
the company will receive a full tax bill and will be able to discount the tax due
by the percentages allowed under the agreement.
The industrial facility which has been located in Round Rock is Mag Rabbit, a
firm that reproduces software magnetically and the software manuals for
distribution in the computer industry.