R-96-02-08-10E - 2/8/1996WHEREAS, the City Council, on the 14th day of September, 1995,
in Ordinance No. G- 95- 09- 14 -9Q, created the Downtown Reinvestment Zone
in the City of Round Rock, Texas, and
WHEREAS, in accordance with Chapter 312, Tax Code, V.A.T.S., the
City desires to enter into tax abatement agreements with certain
property owners located in said Reinvestment Zone No. Nine, and
WHEREAS, the Council has determined that all requirements of
the guidelines and criteria adopted by Ordinance No. G- 95- 09 -14 -9P
have been complied with, and
WHEREAS, the City desires to utilize a uniform document for all
such abatements within the DRZ, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS
That the City Council hereby authorizes and approves the form
attached hereto as Exhibit "A" for all tax abatement agreements within
the Downtown Reinvestment Zone.
RESOLVED this 8th day of February, 1996.
ATTEST:
AIi dLIL' -
:. ESOLUTION
RS500824A
E LAND, City Secretary
RESOLUTION NO. R- 96- 02- 08 -10E
CHARLES CU FZDPER, Mayor
City of Round Rock, Texas
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 "; and the
undersigned, hereinafter referred to as "Owner ".
RECITALS
WHEREAS, on the 14th day of September, 1995, the City Council,
adopted Ordinance No. G- 95- 09 -14 -9Q establishing the Downtown
Reinvestment Zone, (the "DRZ "), City of Round Rock, Texas for
residential /commercial tax abatement, hereinafter referred to as
"Ordinance No. G- 95- 09- 14 -9Q ", 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 No. G- 93- 12- 09 -9G, and
amended said Ordinance in Ordinance No. G- 95- 09- 14 -9P, 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, the contemplated use of the Premises (as hereinafter
defined) and Improvements (as hereinafter defined) as well as the terms
of this Agreement are consistent with encouraging conservation and
protection of said DRZ in accordance with the purposes for its creation
and are in compliance with Ordinance No. G- 95- 09 -14 -9P and the
guidelines and criteria adopted by the City and all applicable laws;
and
WHEREAS, the Improvements constitute an investment within the DRZ
that will increase the appraised value of the Premises within the zone;
and
WHEREAS, the City finds that there will be no substantial adverse
effects on the provision of governmental services or on its tax base
and that 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. Property Subject to Agreement. The property to be the subject
of this Agreement shall be a tract or parcel of land located within
the DRZ which tract or parcel is more fully described in Exhibit "A"
which is made a part hereof and shall be hereinafter referred to as the
"Premises."
2. Application for Tax Abatement. The Owner agrees and covenants
that the attached application for tax abatement (Exhibit "B ") is a part
L \TEXT \CCRR \DRZ WPD /mc
1
of this Agreement, and Owner further warrants that the information
provided in that application is true and correct. If any materially
false or misleading information is provided in said application, City
shall have the discretion to declare this Agreement to be in default
and City shall be entitled to the remedies provided for in Paragraph 5.
3. Portion of Taxes Abated. Subject to the terms and conditions
of this Agreement, and subject to the rights of the holders of any
outstanding bonds of the City, a portion of ad valorem real property
taxes from the Premises otherwise owed to the City shall be abated.
City hereby acknowledges that it is 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.
CHECK APPLICABLE BOX:
❑ For new construction on a vacant lot, the City will grant
a five (5) year tax abatement for 75% of the increased
value of the Premises and Improvements over the value in
the year in which this Agreement is executed. Additionally,
the City will waive all water and wastewater impact fees.
❑ For renovations and additions to existing structures, the
City will grant a ten year tax abatement as described above
for 100% of the increased value of the Premises and
Improvements over the value in the year in which this
Agreement is executed.
❑ Any structure, including real property, whose appraised
value according to the Williamson County Appraisal
District, is less than $30,000 for one year previous to the
year in which an abatement is sought, is eligible for tax
abatements under this Agreement without achieving the
required points in the appropriate Checklist.
4. Right of Inspection. The Owner further agrees that the City,
its 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 shall have the continuing
right to enter upon and inspect the Premises at any reasonable time
to determine whether the Premises are 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 Premises, the City may, in
addition to any other authorized enforcement action, provide to the
2
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, of
any right to any tax abatement 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 Paragraph 5.
5. Events of Default. 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 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 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, this Agreement may be terminated by
the City 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 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 shall be due, owing and paid to the City within sixty
(60) 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.
6. Miscellaneous Provisions.
a) City representations. The Owner represents and
warrants that the Premises do not include any real property
that is owned or leased by a member of its respective
council or by a member of the Planning and Zoning
Commission of the City.
b) Agreement binds successors. The terms and
conditions of this Agreement are binding upon the
successors and assigns of all parties hereto.
c) Owner acting independently. It is understood and
agreed between the parties that the Owner, in performing
3
ATTEST:
its obligations hereunder, is acting • independently, and
the City and _County assume no responsibilities or
liabilities in connection therewith to third parties.
d) Owner's Indemnity. During the term of this
Agreement, Owner agrees to indemnify and hold City and
County harmless from any and all kinds of claims, losses,
damages, injuries, suits, or judgments which may accrue to
Owner, City, County,' 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.
Witness our hands this day of
19
JOANNE LAND, City Secretary
CITY OW ROUND ROCK, TEE1S
CHARLES CULPEPPER, Mayor
OWNER
4
EXHIBIT "A"
Page 1 of 1
Property Description
5
1 Owner /Applicant:
2 Address of structure:
Exhibit "B"
Tax Abatement Application
Downtown Reinvestment Zone
3 Date of Application: Telephone Number:
4 Type of construction: circle either commercial or residential and
check either renovation or new construction
a) Commercial renovation:
new construction:
b) Residential renovation:
new construction:
5 Williamson County Appraised value for year of application:
6 Estimated value of construction:
7 Attachments included:
A. Copies of receipts showing cost of work completed:
B. Copy of Certificate of Occupancy /Final Inspection Certificate
C. Architecturual checklist
D. Photographs of complete work
Signature: Date:
Notes:
P &CD Approval • to be completed by P &CD
1 Property is within the Downtown RetnvestmentZone
2 Cost of Construsttonfrenpvatien Downtown Reinvestment
Zone requlretnents Include cost figures and/or% of value
3 Structur moots architectural checklist
4 All copies of attachments have itictuded
Step -by -Step Process for Tax Abatement
Reinvestment Zone
Boundary:
Step 1
Step 3
Step 4
NOTE:
Step 5
The downtown reinvestment zone is defined geographically by the Round Rock
Original Plat, further defined by IH -35, Brushy Creek, the west line of the
original P.A. Holder Survey, the IG &N railroad, and Lake Creek. Property must
be in the downtown reinvestment zone to apply for tax abatement.
a) Owner requests a preconstruction meeting with the Department of Planning and
Community Development (p &cd) staff, 221 E. Main St., 3rd Floor, 255 -3612.
Parties will discuss proposed new construction or renovations and what needs to
be accomplished to meet the Architectural Checklist and receive a tax abate-
ment.
b) Owner requests abatement application from p &cd. The structure must: a) reach
the necessary amount of points in the Reinvestment Zone Architectural Checklist
and b) any improvements or renovations must be valued at 25% or $25,000,
whichever is less of the property's value. NOTE: All existing features that
comply with the guidelines and are in good condition can be counted in the total
points needed for renovations and additions. Photographs showing the existing
details of the structure should be attached to the application.
Step 2 a) Owner obtains a building permit from the Building Inspection Department (BID)
located at 2008 Enterprise, 218 -5550.
b) - The BID will issue a Certificate of Occupancy (CO) or Final Inspection indicat-
ing completion of work.
Owner submits application for the Downtown Reinvestment Zone abatement to
p &cd after work has been completed. Receipts and cancelled checks or other
verifiable bid or estimates of work completed, along with a copy of the CO
should be attached to the application to verify that the work has been completed
and that the renovations are valued at $25,000 or 25% of the structures ap-
praised value. Deadline for submitting the application is March 31st of each
year.
a) City staff verifies that construction is in accordance with the application and
meets the above requirements. This verification will be done every year of the
abatement.
b) City will use the appraised value calculated by the Williamson County Appraisal
District for all existing and appraised value at the time the application for the tax
abatement is submitted.
An appeals process through the Development Review Board is available
should the application be denied.
City approves the abatement. Once the abatement has been given, the City may
revoke the abatement if the owner alters the structure in a way that detracts from
the reinvestment zone requirements or does not maintain the property.
•
DATE: February 6,1996
SUBJECT: City Council Meeting, February 8, 1996
ITEM: 10.E. Consider a resolution approving the form of the tax
abatement agreement for the Downtown Reinvestment
Zone.
Staff Resource Person: Hugh Bender
Staff Recommendation: Approval
This resolution creates a standard legal form for approving individual
abatements within the Downtown Reinvestment Zone. Staff will provide a
brief summary of the process required by individual property owners in order
to obtain this abatement.
Attachments: Resolution
Step By Step Process For Tax Abatement
Tax Abatement Application Form