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R-97-08-14-13I - 8/14/1997WHEREAS, in accordance with Chapter 312, Tax Code, V.A.T.S., as amended, and as authorized by Resolution No. R- 93- 05- 27 -10A, dated May 27, 1993, the City entered into a tax abatement agreement with Micro -Bac International, Inc., regarding property in Reinvestment Zone No. Six; and WHEREAS, the City and Micro -Bac International, Inc., intended for the agreement to include the abatement of personal property taxes; and WHEREAS, the parties desire to amend the agreement to include language evidencing their intentions; 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 Micro -Bac International, Inc. RESOLVED this 14th day of August, 1997. ATTEST: Ai Ai /L o�. E LAND, City Secretary w:\ereoacmnhsoivrx\wsioei4x .wen /knh RESOLUTION NO. R- 97- 08- 14 -13I HARLES CULPEPPER, MAYOR CITY OF ROUND ROCK, TEXAS THE STATE OF TEXAS COUNTY OF WILLIAMSON AMENDMENT NO.1 TO TAX ABATEMENT AGREEMENT WITH MICRO -BAC INTERNATIONAL. INC. This Amendment No. 1 is entered into this the I7' day o , 1997 to amend that certain agreement authorized by City of Round Rock Resol�on No. R -95- 05-27-10A on May 13, 1995, to abate certain property taxes of Micro -Bac International, Inc., for the Tax Years 1995 - 1997, 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 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 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 by written notice to Owner. Such notice shall be in writing and shall be delivered by personal delivery or certified mail to: Micro -Bac, International, Inc. 9607 Gray Blvd. Austin, Texas 78758 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 I: \rear \CITY\aa NDACC \uxnfATEUn1NICRO.BPC /ten 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, 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 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. The percentage of abatements are as follows: Tax Year 1995 Tax Year 1996 Tax Year 1997 90% abatement 60% abatement 30% abatement These abatements shall be for three (3) tax years beginning January 1, 1995. 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. Witness our hands this /i day of , 1997. CI OF ROUND ROCK, TEXAS CHARLES ' U '' EPPER, MAYOR ATTEST: MICRO -BAC INTE jATIONAL, INC. DATE: August 12,1997 SUBJECT: City Council Meeting, August 14,1997 Item: 13.I. Consider resolution authorizing the Mayor to execute Amendment No. 1 to the Tax Abatement Agreement with Micro -Bac International, Inc. Staff Resource Person: Joe Vining Staff Recommendation: Approval The attached Amendment No. 1 with Micro -Bac International, Inc. clarifies for the Williamson County Appraisal District our intention to include personal property in this agreement.