R-95-11-09-10B - 11/9/1995RESOLUTION NO. R- 95- 11- 09 -10B
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 previously adopted Resolution No.
R- 95- 10- 12 -13L approving the Program, and
WHEREAS, an Economic Development Program Agreement has been
prepared which will implement the Program, 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 the Economic Development Program Agreement with
Security Capital, a copy of said Agreement being attached hereto and
incorporated herein.
RESOLVED this 9th day of November, 1995.
ATTEST:
E LAND, City Secretary
K: \BESOLVII \RS51109B.NPD /sls
4
CHARLES CUAP PER, Mayor
City of Round Rock, Texas
1. Authorization.
2. Definitions.
RECITALS:
r
( JUL ? 1996
ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
(".!f
This Economic Development Program Agreement ( "Agreement ") is
made and entered into on this 9th day of November, 1995 by and
between SECURITY CAPITAL INDUSTRIAL TRUST (the "Company "), a
Maryland real estate investment trust, and the CITY OF ROUND ROCK
(the "City "), a home -rule city and municipal corporation, for the
purposes and consideration stated below:
WHEREAS, the City has adopted Resolution No. R- 95- 10- 12 -13L
establishing an Economic Development Program and authorizing this
Agreement as part of the Economic Development Program; and
WHEREAS, the Company desires to participate in the Economic
Development Program by entering into this Agreement;
NOW, THEREFORE, in consideration of the mutual benefits and
promises contained herein and for other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:
This Agreement is authorized by §380.001 of the Texas Local
Government Code and by Resolution No. R- 95- 10- 12 -13L of the City.
a) Program means the Economic Development Program established
by the City pursuant to Local Government Code §380.001 and under
the Resolution referenced in Section 1. above.
b) Program Payment means the amount paid by the City to the
Company each year under the Program.
c) Property means the property subject to this Agreement which
is more fully described in Exhibit "A" which is made a part hereof.
d) Property Tax Revenues means the amount of property tax
collected by the City on real and personal property owned or leased
by the Company to the extent its assessed value for that year
exceeds its assessed value for 1994. With respect to property
leased by the Company, Property Tax Revenues includes that portion
of annual property tax, prorated on a daily basis, which is
C. \WpOOCS \AC:T? \A2ATm EN \SECURITY \ECODEVAO.uef /cia
1
attributable to the period during which the Company was the lessee
of such property.
3. Term.
This Agreement shall be effective as of the date of this
Agreement as aforesaid. This Agreement shall remain in full force
and effect for tax years 1995, 1996, and 1997.
4. Provision of iobs. The Company agrees and covenants that it
will provide and /or retain at least the number of jobs on the
Property throughout the term of this Agreement according to the
following schedule:
Date Retain New Total
On December 31, 1995 67 39 97
On December 31, 1996 97 39 136
On December 31, 1997 136 14 150
The Company shall provide to the City annual manpower reports
in the form attached hereto as Exhibit "B" 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 Company to provide the number of jobs set out in the
above schedule shall not be considered an event of default as
defined in Section 8. below unless the number of jobs actually
provided is less than seventy -five percent (75 %) of the 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 amount of the Program Payment
for that tax year, as provided in Section 6. below, shall be
reduced. The percentage of tax rebated in the form of Program
Payments shall be reduced by the same percentage that the actual
number of jobs bears to the scheduled number of jobs. By way of
illustration, if on December 31, 1995 Company has provided ten
percent (10 %) fewer jobs than is required, then its Program Payment
shall be reduced by ten percentage points (i.e. the Program Payment
equal to 90% of Property Tax Revenues shall be reduced ten
percentage points to 80% of Property Tax Revenues.) Failure of the
Company to provide at least seventy -five percent (75 %) of the
number of jobs required by this Agreement shall be considered an
event of default.
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5. Program Payment.
Within sixty (60) days of receipt of a written request from
Company for a Program Payment, along with a copy of a paid property
tax receipt, the City shall pay the Program Payment to the Company.
6. Computation of Program Payment.
Subject to the terms and conditions of this Agreement, a
portion of the Property Tax Revenues attributable to the Property
and paid by the Company to the City shall be rebated to the Company
in the form of annual Program Payments. Said Program Payments shall
be an amount equal to the below - stated percentages assessed upon the
increased value of the Property over its value in 1994, in
accordance with the terms of this Agreement and all applicable state
and local regulations. The amount of annual Program Payments will
be a percentage of Property Tax Revenues as follows:
Tax Year
1995
1996
1997
Percentage of Property
Tax Revenues
90%
60%
30%
These Program Payments shall be for three (3) tax years
beginning with the 1995 tax year.
7. Right of inspection.
The Company agrees that the City, its agents and employees
shall have the right to enter upon the Property at any reasonable
time to inspect the improvements constructed thereon 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 shall have
the continuing right to enter upon and inspect the Property at any
reasonable time to determine whether the Property is thereafter
maintained and operated in accordance with this Agreement and all
applicable Federal, state, and local laws, ordinances, and
regulations. If the City determines that a violation of a Federal,
state or local law, ordinance or regulation exists on the Property,
the City may, in addition to any other authorized enforcement
action, provide to the Company written notice of such violation.
For the purposes of this Agreement, the Company shall have ten (10)
days from the date of the notice to cure or remedy such violation.
If the Company fails or refuses to cure or remedy the violation
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within the ten (10) day period, the Company is subject to the
forfeiture, at the sole discretion of the City, of any right to any
Program Payment for a portion of the period or the entire period
covered by this Agreement. In addition, the failure or refusal to
cure or remedy the aforesaid violation shall be considered a
default of this Agreement under Section 8.
8. Events of default.
In the event that (1) Company allows its ad valorem taxes owed
the City 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 (2) Company breaches any of the terms or
conditions of this Agreement, then this Agreement shall be in
default. In the event that the Company defaults in its performance
of (1) or (2) above, then the City shall give the Company written
notice of such default and if the Company has not cured such
default within ten (10) days of said written notice, this Agreement
may be terminated by the City by written notice to Company.
As liquidated damages in the event of default all taxes which
otherwise would have been paid to the City without the benefit of
this Agreement (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
Company to the City and shall be due, owing and paid to the City
within thirty (30) days of the expiration of the above mentioned
applicable cure period. The City 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.
9. Mutual Assistance.
The City and the Company shall do all things necessary or
appropriate to carry out the terms and provisions of the Agreement
and to aid and assist each other in carrying out such terms and
provisions.
10. Representations and Warranties.
The City represents and warrants to the Company that the
Program and this Agreement are within the scope of its authority
and the provisions of its charter and that it is duly authorized
and empowered to establish the Program and enter into this
Agreement. The Company represents and warrants to the City that it
has the requisite authority to enter into this Agreement.
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11. Notice.
Any notice and /or statement required and permitted to be
delivered shall be deemed delivered by depositing same in the
United States mail, certified with return receipt requested,
postage prepaid, addressed to the appropriate party at the
following address, or at such other addresses provided by the
parties in writing, or by facsimile transmission to the fax numbers
below:
COMPANY:
With a Copy to:
CITY:
With a Copy to:
12. Miscellaneous provisions.
Security Capital Industrial Trust
1411 East 35th Place, Suite 100
Aurora, Colo. 80011 -1618
Fax Number: (303)375 -8581
Security Capital Industrial Trust
5420 LBJ Freeway, Suite 375
Dallas, Texas 75240
Fax Number: (214)770 -2290
Bob Bennett, City Manager
City of Round Rock
221 E. Main Street
Round Rock, Texas 78664
Fax Number: (512) 255 -6676
Stephan L. Sheets,
City Attorney
309 E. Main Street
Round Rock, Texas 78664
Fax Number: (512) 255 -8986
a) Section or Other Headings. Section or other headings
contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this
Agreement.
b) Assignment. This Agreement cannot be assigned by Company
unless written permission is first granted by the City. No
assignment shall be approved if the assignor or assignee are
indebted to the City for ad valorem taxes or other obligations.
c) Company acting independently. It is understood and agreed
between the parties that the Company, in performing its obligations
hereunder, is acting independently, and the City assume no
5
responsibilities or liabilities in connection therewith to third
parties.
d) Company's Indemnity. During the term of this Agreement,
Company agrees to indemnify and hold City harmless from any and all
kinds of claims, losses, damages, injuries, suits, or judgments
which may accrue to Company, City, or third parties arising out of
this Agreement.
e) Venue. This Agreement is performable in Williamson County,
Texas, and venue for any suit arising hereunder shall be in
Williamson County, Texas.
f) Interpretation. Regardless of the actual drafter of this
Agreement, this Agreement shall, in the event of any dispute over
its meaning or application, be interpreted fairly and reasonably,
and neither more strongly for or against any party.
g) Severability. In the event any provision of this Agreement
is illegal, invalid, or unenforceable under present or future laws,
then, and in that event, it is the intention of the parties hereto
that the remainder of this Agreement shall not be affected thereby,
and it is also the intention of the parties to this Agreement that
in lieu of each clause or provision that is found to be illegal,
invalid, or unenforceable a provision be added to this Agreement
which is legal, valid, and enforceable and is as similar in terms
as possible to the provision found to be illegal, invalid or
unenforceable.
h) Attorneys' Fees. In the event any legal action or
proceeding is commenced to enforce or interpret provisions of this
Agreement, the prevailing party in any such legal action shall be
entitled to recover its reasonable attorneys' fees and expenses
incurred by reason of such action.
i) Entire Agreement. This Agreement contains the entire
agreement between the parties with respect to the transaction
contemplated herein.
j) Amendment. This Agreement may only be amended, altered,
or revoked by written instrument signed by the Company and the
City.
k) Successors and Assigns. This Agreement shall be binding
on and inure to the benefit of the parties, their respective
successors and assigns.
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1) Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be considered an original, but
all of which shall constitute one instrument.
A
Witness our hands this - 1 — day of November, 1995.
ATTEST:
1
SECRETARY
•0 /.IL AL
THE CITY OF ROUND ROCK
By: S1)" M' / 14/-
Charles C. Cu pepper
Mayor, City of Round Rock
SECURITY CAPITAL INDUSTRIAL TRUST
BY:
7
DESCRIPTION
FOR A 3.801 -ACRE (165,559- SQUARE -FOOT) TRACT OF LAND
SITUATED IN THE ANDREW SPREECHER SURVEY NO. 101,
ABSTRACT NO. 719 IN TRAVIS COUNTY, TEXAS, BEING A
PORTION OF A 9.46 -ACRE TRACT KNOWN AS THE
"RESUBDIVISION OF LOT 1, CORRIDOR PARK 1 ", A
SUBDIVISION ACCORDING TO THE PLAT THEREOF RECORDED IN
VOLUME 85, PAGE 185C AND PAGE 185D OF THE PLAT RECORDS
OF TRAVIS COUNTY, TEXAS, BEING ALSO A PART OF A
REMNANT PORTION OF LOT 1 OF "CORRIDOR PARK I ", A
SUBDIVISION ACCORDING TO THE PLAT THEREOF RECORDED IN
VOLUME 85, PAGE 65D, PAGE 66A AND PAGE 66B OF SAID
PLAT RECORDS BEING ALSO A PORTION OF A PROPOSED
13.912 -ACRE SUBDIVISION TO BE KNOWN AS CORRIDOR PARK
1B (A REPLAT), SAID 3.801 -ACRE TRACT BEING MORE
PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
BEGINNING FOR REFERENCE on a point, being an interior ell corner
of Lot 5 of "Northridge Acres No. 2" a subdivision according to the plat
thereof recorded in Volume 14, Page 84 of said Plat Records, being also the
common westerly corner of Lot 1 and Lot 2 of said "Resubdivision of Lot 1,
Corridor Park 1 ", being also an angle point in the northwesterly boundary line
of Lot 1 of said proposed "Corridor Park 1B ", thence with the southeasterly
boundary line of said Lot 5, same being the northwesterly boundary line of
said Lot 1 of "Resubdivision of Lot 1, Corridor Park 1 ", being also the
northwesterly boundary line of Lot 1 of said proposed "Corridor Park 1B"
replat, same being in part the southeasterly boundary line of a 14.934 -acre
portion of a tract of land designated Tract II and conveyed to Tom E. Nelson,
Jr. Trustee No. II, by instrument recorded in Volume 10084 Page 93 of the Real
Property Records of said County, N29 °56'37 "E a distance of 364.14 feet and
N30 31'33 "E a distance of 10.00 feet to a point being the most westerly corner
and POINT OF BEGINNING hereof;
THENCE with the southeasterly boundary line of said Tract II, same
being the northwesterly boundary line of Lot 1 of said "Resubdivision of Lot
1, Corridor Park 1 ", being also the northwesterly boundary line of Lot 1 of
said proposed "Corridor Park 1B ", N30 ° 31'33 "E for a distance of 295.67 feet to
an angle point;
THENCE continuing with said southeasterly boundary line, same
being the northwesterly boundary line of Lot 1 of proposed "Corridor Park 1B ",
in part with the northwesterly boundary line of Lot 1 of said "Resubdivision
of Lot 1, Corridor Park 1 ", and in part with the northwesterly boundary line
of the aforementioned remnant portion of Lot 1 of said "Corridor Park I ",
N30 °36'32 "E at a distance of 35.47 feet pass a point being the northwest
corner of Lot 1 of said "Resubdivision of Lot 1, Corridor Park 1 ", being also
the southwest corner of said remnant portion of Lot 1 of "Corridor Park 1 ",
continue on said course for a total distance of 137.00 feet to the northwest
corner hereof, from which an angle point in the northwesterly boundary line of
Lot 1 of said proposed "Corridor Park 1B ", same being the southerly boundary
line of said 14.934 -acre tract bears N30 °36'32 "E a distance of 68.43 feet;
3.801 -Acre Tract
Page 2
THENCE departing said southeasterly boundary line, through the
interior of Lot 1 of said proposed "Corridor Park 1B ", being also the interior
of said remnant portion of Lot 1, S59 ° 23'28 "E for a distance of 363'.46 feet to
a point in the northwesterly right -of -way line of Jarrett Way (60 -foot right -
of -way width), said point being in the easterly boundary line of Lot 1 of
proposed "Corridor Park 1B ", being also a point in the easterly boundary line
of said remnant portion of Lot 1 of "Corridor Park I" subdivision, for the
northeast corner hereof;
THENCE with said right -of -way line, being the easterly boundary
line of Lot 1 of proposed "Corridor Park 1B ", being also the easterly boundary
line of said remnant portion of Lot 1 of "Corridor Park I" subdivision,
S30 ° 28'05 "W for a distance of 96.74 feet to a point of curvature of a curve to
the left being the transitional curve from the northwesterly right -of -way line
of Jarrett Way to the southwesterly right -of -way line of Michael Angelo Way
(60 -foot right -of -way width), said point being the southeast corner of said
remnant portion of Lot 1 "Corridor Park I ", being also the northeast corner of
Lot 1 of said "Resubdivision of Lot 1, Corridor Park 1 ";
THENCE with the northeasterly boundary line of Lot 1 of said
"Resubdivision of Lot 1, Corridor Park 1 ", continuing with said right -of -way
line, being also the easterly boundary line of Lot 1 of proposed "Corridor
Park 1B ", with the arc of said curve, having a radius of 330.00 feet, an
interior angle of 41 ° 56'31 ", an arc length of 241.58 feet and a chord which
bears S09°29 45"W for a distance of 236.22 feet to a paint being the southeast
corner hereof;
THENCE departing said right -of -way line, through the interior of
Lot 1 of the proposed "Corridor Park 1B ", same being the interior of Lot 1 of
said " Resubdivision of Lot 1 , Corridor Park 1 ", the following two (2) courses
and distances:
1. S78 °31'26 "W for a distance of 171.73 feet to an angle point
hereof;
2. N59 ° 28'27 "W for a distance of 320.91 feet to the POINT OF
BEGINNING and containing 3.801 acres (165,559 square feet)
of land.
Prepared from records and office calculations by Baker - Aicklen & Associates,
Inc.
CJC:ek
Job No. 730 - 501 -22
October 6, 1994
EXHIBIT "B"
MANPOWER REPORT
I, of
(Owner) do certify that on December 31, 19_ there were full time employees
at
STATE OF TEXAS §
§
COUNTY OF WILLIAMSON §
Signature:
Printed Name:
Title:
Date:
BEFORE ME, the undersigned Notary Public, on this day personally
appeared of (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; and that every statement contained
in the Manpower Report is within his knowledge and true and correct.
SUBSCRIBED AND SWORN TO BEFORE ME on the day
of ,19 to certify which witness my hand and official
seal.
Notary Public, State of Texas
Printed Name:
My Commission Expires:
DATE: November 7, 1995
SUBJECT: City Council Meeting, November 9, 1995
ITEM: 10.B. Consider a resolution authorizing the Mayor to enter into
an agreement for 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 program differs from the standard tax abatement contracts in that the
company will receive a full tax bill; however, a pro -rated refund of city ad
valorem taxes will be made in exchange for Security Capital Industrial Trust,
Inc. locating an industrial facility (Mag Rabbit) and providing new jobs in
Round Rock.
Mag Rabbit reproduces software magnetically for distribution in the computer
industry.
This three year tax rebate beginning January 1, 1996 will have the following
estimated economic impact:
ECONOMIC IMPACT:
*calculated at current tax rate of .42635/$100 AV
Contracted
Value of
Year
Refund %
Expenditures
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: November 7, 1995
SUBJECT: City Council Meeting, November 9, 1995
ITEM: 10.B. Consider a resolution authorizing the Mayor to enter into
an agreement for 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 program differs from the standard tax abatement contracts in that the
company will receive a full tax bill; however, a pro -rated refund of city ad
valorem taxes will be made in exchange for Security Capital Industrial Trust,
Inc. locating an industrial facility (Mag Rabbit) and providing new jobs in
Round Rock.
Mag Rabbit reproduces software magnetically for distribution in the computer
industry.
This three year tax rebate beginning January 1, 1996 will have the following
estimated economic impact:
ECONOMIC IMPACT:
*calculated at current tax rate of .42635/$100 AV
Mona Ryan
City of Round Rock
221 East Main Street
Round Rock, Texas 78664
Dear Mona:
WRW/lkm
:enclosure
IIIII
SCI CLIENT SERVICRS
Incorporated
July 25, 1996
RE: Economic Development Program Agreement
Enclosed are two originals of the above referenced agreement which have been executed by
Security Capital Industrial Trust. Please have these signed and one fully executed original returned
to our office for our files.
Should you have any questions, please do not hesitate to contact our office.
C \WEWIN6uaxhREaESLETTERS1299.WPD
Best Regards,
SCI CLIENT SERVICES
INC ORATED
William Robert Wendt
9101 Wall Street •Austin, Texas 78754 • (512) 719 -9292
R- 1/- 0I - /O,g