R-97-08-14-13L - 8/14/1997and Cypress Semiconductor, 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 Cypress Semiconductor, Inc.
RESOLVED this 14th day of August, 1997.
WHEREAS, in accordance with Chapter 312, Tax Code, V.A.T.S.,
as amended, and as authorized by Resolution No. R- 95- 08- 24 -13A,
dated August 24, 1995, the City entered into a tax abatement
agreement with Cypress Semiconductor, Inc., regarding property in
Reinvestment Zone No. Nine; and
WHEREAS, the City, the Williamson County Commissioners Court,
ATTEST:
4114 44 I/ ■■••■ ale—dL
LAND, City Secretary
rc: \NITOCS Pt5OLOTI\P5708]hL.VFU /4!
RESOLUTION NO. R- 97 -08- 14 -13L
660
CHARLES C PER, MAYOR
CITY OF ROUND ROCK, TEXAS
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
AMENDMENT NO.1
TO
TAX ABATEMENT AGREEMENT
WITH
CYPRESS SEMICONDUCTOR. INC.
This Amendment No. 1 is entered into this the Pi day oT , 1997 to
amend that certain agreement authorized by City of Round Rock Resolution No. R -95-
08-24-13A on August 24, 1995, and by order of the Williamson County Commissioners
Court on September 5, 1995, to abate certain property taxes of Cypress Semiconductor,
Inc., for the Tax Years 1996 - 2000, inclusive.
WHEREAS, it was the intentionsof 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. That Section 7, "Portion of taxes abated" is amended to read as follows:
7. Portion of taxes abated. 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, Improvements, and
Personal Property 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 1996
Tax Year 1997
Tax Year 1998
Tax Year 1999
Tax Year 2000
These abatements shall be for five (5) tax years beginning January
1, 1996.
C:\ TEXT \ CIT Y\ROWDROC \TA%TBATBW@IDt1.10D /4M
100% abatement
100% abatement
75% abatement
50% abatement
25% abatement
2. Section 10, "Events of Default." shall be amended to read as follows:
10. 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 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, 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:
Director of Finance
Cypress Semiconductor (Texas), Inc.,
17 Cypress Boulevard
Round Rock, Texas 78664
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.
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 / 7 day of _ 1997.
CITY
2.
ROUND ROCK, TEXAS
CHARLES U ' EPPER, MAYOR
ATTEST:
WILLIAMSON COUNTY
COMMISSIONERS COURT
3.
CYPRESS SEMICONDUCTOR (TEXAS), INC.
L✓ERE7 r ik'oLRS . DIR. OF FINANCE
cf -zs -9 7
DATE: August 12,1997
SUBJECT: City Council Meeting, August 14,1997
Item 13.L. Consider resolution authorizing the Mayor to execute
Amendment No. 1 to the Tax Abatement Agreement with
Cypress Seminconductor, Inc.
Staff Resource Person: Joe Vining
Staff Recommendation: Approval
The attached Amendment No. 1 with Cypress Seminconductor, Inc. clarifies for
the Williamson County Appraisal District our intention to include personal
property in this agreement.
ATTEST:
K:RESOLUTION
RS500824A
RESOLUTION NO. R- 95- 08- 24 -13A
WHEREAS, the City Council, on the 27th day of July, 1995, in
Ordinance No. G- 95- 07- 27 -10A, created Reinvestment Zone No. Nine 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
Cypress Semiconductor, Inc., regarding property 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- 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 Cypress
Semiconductor, Inc.
RESOLVED this 24th day of August, 1995.
CHARLES CtJL PPER, 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 ";
Williamson County, duly acting herein by and through the County
Judge, hereinafter referred to as "County "; and Cypress Semiconductor
(Texas), Inc., a Texas corporation, duly acting by and through its
President or any Vice President, hereinafter referred to as "Owner ".
RECITALS
WHEREAS, on the 27th day of July, 1995, the City Council of the
City of Round Rock, Texas, adopted Ordinance No. G- 95- 07- 27 -10A
establishing Reinvestment Zone No. 9, City of Round Rock, Texas for
commercial /industrial tax abatement, hereinafter referred to as
"Ordinance No. G- 95- 07- 27 -10A ", 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, 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 development
in said Reinvestment Zone No.9 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 laws; and
WHEREAS, the Improvements constitute a major investment within
Reinvestment Zone No. 9 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 and County find that there will be no
substantial adverse effects on the provision of governmental services
or on their tax bases and that the planned use of the Premises will
c: �weoccs\ cITr v,exre,ew\crepsss�xu,i.weni::,s
1
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 that property included within
Reinvestment Zone No. 9 which is more fully described in Exhibit "A"
which is made a part hereof and shall be hereinafter referred to as
the "Premises."
2. Construction of Improvements. The Owner shall promptly
commence construction of its facility as described in Exhibit "B" on
the Premises (said facility hereinafter referred to as
"Improvements ".) The total construction cost of the Improvements is
approximately Thirteen Million and no /100 Dollars ($13,000,000.00),
which Improvements are to be substantially complete on or about
December 31, 1995; 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.
3. Completion of Improvements. 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 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 a semiconductor fabrication facility.
4. Provision of lobs. The Owner agrees and covenants that it
will provide and /or retain at least the number of jobs on the
Premises from the completion date of the Improvements throughout the
term of this Agreement according to the following schedule:
Date Retain New Total
On December 31, 1995
On December 31, 1996
On December 31, 1997
On December 31, 1998
On December 31, 1999
290
375
411
436
464
2
85
36
25
28
31
375
411
436
464
495
On December 31, 2000 495 20 515
The Owner shall provide to the City and County annual manpower
reports in the form 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 10 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 percentage of tax abatement for the following
year as provided in paragraph 7 below shall be reduced. The
percentage of tax abatement 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, 1996 Owner has provided
ten percent (10%) fewer jobs than is required, then its abatement
shall be reduced by ten percentage points (i.e. the 100% abatement
shall be reduced ten percentage points to an 90% abatement.) Failure
of the Owner to provide at least seventy -five percent (75 %) of the
number of jobs required by this Agreement shall be considered an
event of default.
6. Application for tax abatement. 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. If any
materially false or misleading information is provided in said
application, City or County shall have the discretion to declare this
Agreement to be in default and City and /or County shall be entitled
to the remedies provided for in paragraph 10.
7. 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 and County, a portion
of ad valorem real property taxes from 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 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:
3
Tax Year 1996
Tax Year 1997
Tax Year 1998
Tax Year 1999
Tax Year 2000
These abatements shall be for five (5) tax years beginning
January 1, 1996.
8. Right of inspection. 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 and operated in accordance with this Agreement
and all applicable Federal, state, and local laws, ordinances, and
regulations. If the City or County determine 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 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 10.
9. Cost of Improvements and personal property added to the
Premises. The Owner agrees and covenants that upon completion of the
Improvements and during the term of this Agreement to add real and
personal property that costs not less than the amounts shown on the
following schedule:
Date Added Cost Per Year
January 1, 1996
January 1, 1997
January 1, 1998
January 1, 1999
January 1, 2000
4
100% abatement
100% abatement
75% abatement
50% abatement
25% abatement
$22,000,000.00
$35,000,000.00
$12,000,000.00
$12,000,000.00
$12,000,000.00
Within sixty (60) days following completion of the Improvements
and by March 1, of each year thereafter, Owner shall provide to the
City and County documentation showing to the satisfaction of the
City and County that the cost of taxable real property, personal
property and equipment is in compliance with the foregoing schedule.
10. 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 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, 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:
Director of Finance
Cypress Semiconductor (Texas), Inc.
17 Cypress Boulevard
Round Rock, Texas 78664
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.
11. Agricultural land. It is understood and agreed by the City,
County, and the Owner that if the Premises have been designated and
taxed as agricultural land pursuant to Chapter 23, Subchapter C, Tax
Code, V.A.T.S., this Agreement shall not be effective and no
abatement will be 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.
12. Authorizations.
5
a) City. This Agreement was authorized by Resolution of
the City Council at its council meeting on the t/ day of
�a_ 1995, authorizing the Mayor to execute the Agreement on
bdflalf of the City.
b) Commissioners Court. This Agreement was authorized by
Resolution or Order of the Williamson County Commissioners Court
at its meeting on the _5 day of S'app{ „„je, 1995, authorizing the
County Judge to execute the Agreement on behalf of the County.
c) Cypress. This Agreement was authorized by Cypress
Semiconductor (Texas), Inc. pursuant authority granted by its
Board of Directors on the iday of ( 1 t . 1995, whereby the
a'rectO�: c,P, ! ,-i ics.was authorized to ex ute this Agreement on
behalf of Cyypr,SS Stm,ca„�,{e._cf8h., a copy of which authorization is
attached hereto as Exhibit "D ".
13. Miscellaneous provisions.
a) City and County representations. 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.
b) Agreement binds successors. The terms and conditions of
this Agreement are binding upon the successors and assigns of
all parties hereto.
c) Assignment. 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;
provided however, Owner may assign its rights under this
Agreement to an entity which is wholly owned by Owner. No
assignment shall be approved if the assignor or assignee are
indebted to the City or County for ad valorem taxes or other
obligations.
d) Owner acting independently. 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.
e) 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,
6
or judgments which may accrue to Owner, City, County, or third
parties arising out of this Agreement.
f) 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 S/&J day of
AT EST:
LAND, City Secretary
CITY F ROUND ROCK, TEXAS
� E
CHARLES CUL ER, Mayor
By:
7
WILLIAMSON COUNTY COMMISSIONERS
COURT
Cypress Semiconductor (Texas), Inc.
, i t s -N I C� A1 crP
Aiwa eQ
EXHIBIT "A"
Property Description
Oakmont Centre Section One, Revised Lot 2
Filed in Williamson County Plat Records
Cabinet F, Slides 129 -133
Cypress Semiconductor
EXHIBIT "B"
Description of Improvements
To Be Constructed
Expansion of facility to include construction of a 27,460 square foot two story
building, for sort, production, cafeteria, and offices. Modernization of existing
facility to allow for expansion of clean room for wafer manufacturing. Increased
employee base, additional equipment in clean room and expanded sort room area
will allow both increased capacity and utilization of the newest wafer
manufacturing technologies.
Construction of a 2,068 square foot central utility/facilities building to support above
expansion and modernization.
txabmt.3.14.95
C. Current assessed value:
Land - $330,184
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: August 22, 1995
Company Name: Cypress Semiconductor (Texas), Inc.
Address: 17 Cypress Boulevard
Round Rock, TX 78664
II. PROTECT INFORMATION:
A. Description of area to be designated as reinvestment zone: (attach map)
Oakmont Centre Section One, Revised Lot 2
B. Description of eligible improvements (real property) to be constructed:
27,460 square foot two story building, for sort, production, cafeteria and
offices. 2,068 square foot central utility building.
Building - $3,870,800
Personal Property - (excluding inventory) - $45,193,950
D. Estimated cost of eligible improvements:
Building and Fixturization: $13,000,000.
Machinery & Equipment: $93,000,000 by 12/31/99
Page 1
Local
Transfer
Total
Est. Salaries
85
85
$1,700K
36
36
771K
25
25
547K
28
28
612K
31
31
686K
E. Description of ineligible (taxable) property to be included in project:
N/A
F. Estimated value of ineligible property:
N/A
G. Estimated value of site as of January 1 preceding abatement agreement:
Land: 330,184
Improvements: 3,870,800
Personal Property: 45,193,950
H. This project is:
( ) A New Plant ( X ) An Expansion ( ) A Modernization
If Modernization:
Estimated economic life of existing plant: years
Added economic life from modernization: years
Tax abatement requested:
100 % of eligible property for year 1.
100 % of eligible property for year 2.
75 % of eligible property for year 3.
50 % of eligible property for year 4.
25 % of eligible property for year 5.
III. ECONOMIC INFORMATION:
Commencement Date:
8/1/95
Completion Date:
12/31/95
# of Construction Jobs
139
txabmt.3.14.95
A. Construction Estimates:
B. Estimated number of jobs to be created:
1. December 31, 1995
2. December 31, 1996
3. December 31, 1997
4. December 31, 1998
5. December 31, 1999
Page 2
Signature of Authorized Company Official
Marian Riemer, Director of Finance
Printed Name and Title of Authorized
Company Official
Company Representative to be contacted:
Address: 17 Cypress Boulevard
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.
txabmt.3.14.95
C Other estimated taxes generated by project:
Sales Tax: Sales & use with respect to building and equipment
Other (Identify):
D. The proposed reinvestment zone is located in:
City: Round Rock
County: Williamson
School District: Round Rock Independent School District (RRISD)
Other Taxing Brushy Creek Water Control & Improvement District #1 of
Jurisdiction: Williamson and Milam Counties
Name: Marian Riemer Title: Director of Finance
Round Rock, Texas 78664
Telephone No.: 512 - 244-5716
Page 3
STATE OF TEXAS
COUNTY OF WILLIAMSON .
txabmt.3.14.95
VERIFICATION
BEFQRE E, the undersigne4Not ;y P b ., othi ,day personally
appeared f •A but b (title) of
(Owner), being by me my sworn on his oath deposed and said that he is y
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.
SUBSCRIBED AND SWORN TO BEFORE ME on th� day o
1V , to certify which witness my hand and official seal.
Lu,Llt„ 1
Notdd Public, State of Texas
Printed Name:
My Commission Expires:
VIRGINIA M. MORENO
I ` i Notary Public, State of Texas
My Commission Expires Jai. t t, 1999
Page 4
OFFICER'S CERTIFICATE
The underfed, Emmanuel Hernandez, hereby certifies as follows:
EXHIBIT D
1. He iv the Vice President, Finance and Administration, and ChiefFinancial Officer of Cypress
Semiconductor Corporation, a Delaware corporation (°Cypress"),
2. Cypress is the holder of a majority of the outstanding common stock and warred stoic of its
subsidiary, Cymem Semiconductor (Texas) Inc„ a Delaware taaporation ("Cypress Texas'9.1
3. Effective August 21, 1995, the Board ofDirectors of Cypress Texas consists of T.J. Rodgers,
Lothar Maier and Emmanuel Hernandez.
4. The following individuals have been appointed by the Board of Directors as officers of
Cypress Texas and serve in the *Cowing capacities u of the date hereof Lothar Maier,
President; Marian Riemer, Treasurer, and Joe Hudgins, Secretary.
5. Each of the foregoing officers has the authority to enter into contracts on behalf of Cypress
Texas in accordance with Delaware law.
Dated: August 21, 1995
(aPOrtaCAMMUsarat
CYPRESS :+ • r. UCTOR CORPORATION
By
Emmanuel Hernandez, Vice President; Finance and
Administration, and Chief Financial Officer
EXHIBIT "E"
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:
Year
Abatement %
Contracted
Expenditures
Value of
Abatement*
1996
100%
$ 35,000,000
$ 171,136
1997
100%
70,000,000
342,272
1998
75%
82,000,000
300,710
1999
50%
94,000,000
229,811
2000
25%
$106,000,000
129,574
$1,173,504
DATE: August 22, 1995 Revised Bluesheet
SUBJECT: City Council Meeting, August 24, 1995
ITEM: 13.A. Consider a resolution authorizing the Mayor to enter into
a tax abatement agreement with Cypress Semiconductor
(Reinvestment Zone #9)
Staff Resource Person: Joe Vining
Staff Recommendation: Approval
Cypress Semiconductor is one of the pioneers of high tech wafer
manufacturing and a leader in this industry. Over the term of this agreement
their employee base will increase from 290 to 515, $13 million dollars in
improvements will be constructed, and $93 million dollars in personal
property will be added to the premises.
New development related to this agreement includes the construction of a
27,460 square foot two story building that will be used for sort and production
related to wafer manufacturing and will also house additional offices and a
cafeteria. Modernization of the existing facility will allow for expansion of a
clean room for the wafer manufacturing. Increased employee base, additional
equipment in the clean room and expanded sort room area will allow both
increased capacity and utilization of the newest wafer manufacturing
technologies. Also planned is the construction of a 2,068 square foot central
utility/facilities building to support above expansion and modernization.
This is a five year tax abatement agreement beginning January 1, 1996 with
the following estimated economic impact:
ECONOMIC IMPACT:
*calculated at current tax rate of .48896/$100 AV
Year
Abatement %
Contracted
Expenditures
Value of
Abatement*
1996
100%
$106,000,000
518,298
1997
100%
$106,000,000
518,298
1998
75%
$106 ,000,000
388,723
1999
50%
$106,000,000
259,149
2000
25%
$106,000,000
129,574
1,814,042
DATE: August 22, 1995
SUBJECT: City Council Meeting, August 24, 1995
ITEM: 13.A. Consider a resolution authorizing the Mayor to enter into
a tax abatement agreement with Cypress Semiconductor
(Reinvestment Zone #9)
Staff Resource Person: Joe Vining
Staff Recommendation: Approval
Cypress Semiconductor is one of the pioneers of high tech wafer
manufacturing and a leader in this industry. Over the term of this agreement
their employee base will increase from 290 to 515, $13 million dollars in
improvements will be constructed, and $93 million dollars in personal
property will be added to the premises.
New development related to this agreement includes the construction of a
27,460 square foot two story building that will be used for sort and production
related to wafer manufacturing and will also house additional offices and a
cafeteria. Modernization of the existing facility will allow for expansion of a
clean room for the wafer manufacturing. Increased employee base, additional
equipment in the clean room and expanded sort room area will allow both
increased capacity and utilization of the newest wafer manufacturing
technologies. Also planned is the construction of a 2,068 square foot central
utility/facilities building to support above expansion and modernization.
This is a five year tax abatement agreement beginning January 1, 1996 with
the following estimated economic impact:
ECONOMIC IMPACT:
*calculated at current tax rate of .48896/$100 AV
Mayor
Charles Culpepper
Mayor Pro-tem
Earl Palmer
Council Members
Robert Stluka
Rod Morgan
Rick Sleazier
Martha Chavez
Jimmc Joseph
City Manager
Robert L. Bennett, Jr
City Attorney
Stephan L Sheers
August 28, 1995
Mike Heiligenstein
County Commissioner, Precinct 1
307 E. Main
Round Rock, TX 78664
re: Cypress Semiconductor Tax Abatement Agreement
Dear Commissioner Heiligenstein:
Enclosed are three originals of the Cypress Semiconductor tax abatement
agreement. Please place it on the Commissioners Court agenda for
consideration on Tuesday, September 5.
Once the documents have been signed, please ask Jane Tablerieu to return all
three documents to me so that I can distribute them.
Very truly your
THE CITY OF ROUND ROCK
221 East Main Street
Round Rock, Texas 78664
512.255 -3612
Mona Ryan, P g Technician
Planning and ommunity Development
enclosures
Fax 512.255.6676 1.800- 735 -2989 (TDD) 1- 800 - 735 -2988 (Voice)
Hand Delivered
WHEREAS, in accordance with Chapter 31
as amended, and as authorized by Resoluti
dated August 24, 1995, the City entered
agreement with Cypress Semiconductor, Inc.,
Reinvestment Zone No. Nine; and
WHEREAS, the City, the Williamson County Commissioners Court,
and Cypress Semiconductor, 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 Cypress Semiconductor, Inc.
RESOLVED this 14th day of August, 1997.
ATTEST:
LAND, City Secretary
K. \XPDUCB \RESOLUTI \RSIOBIIL.HPD /tat,
RESOLUTION NO. R- 97- 08- 14 -13L
2, Tax Code, V.A.T.S.,
on No. R- 95- 08- 24 -13A,
into a tax abatement
regarding property in
1 41,- /
CHARLES CULPEPPER, MAYOR
CITY OF ROUND ROCK, TEXAS
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
AMENDMENT NO.1
TO
TAX ABATEMENT AGREEMENT
WITH
CYPRESS SEMICONDUCTOR. INC. ,/` �,
This Amendment No. 1 is entered into this the /`1 day o�, 1997 to
amend that certain agreement authorized by City of Round Rock Resolution No. R -95-
08-24-13A on August 24, 1995, and by order of the Williamson County Commissioners
Court on September 5, 1995, to abate certain property taxes of Cypress Semiconductor,
Inc., for the Tax Years 1996 - 2000, inclusive.
WHEREAS, it was the intentionsof 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. That Section 7, "Portion of taxes abated" is amended to read as follows:
7. Portion of taxes abated. 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, Improvements, and
Personal Property 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 1996
Tax Year 1997
Tax Year 1998
Tax Year 1999
Tax Year 2000
C: \TEXT\ CITY\ RCUHDRCC \TAXABATE'.N4ENDpl.WPD /kah
100% abatement
100% abatement
75% abatement
50% abatement
25% abatement
These abatements shall be for five (5) tax years beginning January
1, 1996.
2. Section 10 "Events of Default. ", shall be amended to read as follows:
10. 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 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, 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:
Director of Finance
Cypress Semiconductor (Texas), Inc.,
17 Cypress Boulevard
Round Rock, Texas 78664
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.
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 / 7 day of
c7t� , 1997.
CITY OF ROUND ROCK, TEXAS
CHARLES U - EPPER, MAYOR
2.
ATTEST:
WILLIAMSON COUNTY
COMMISSIONERS COURT
CYPRESS SEMICONDUCTOR (TEXAS), INC.
z ✓6 ROIExj- IR. OF FINANCE
- zs - 97
3.
1 (
DATE: August 12,1997
SUBJECT: City Council Meeting, August 14,1997
Item: 13.L. Consider resolution authorizing the Mayor to execute
Amendment No. 1 to the Tax Abatement Agreement with
Cypress Seminconductor, Inc.
Staff Resource Person: Joe Vining
Staff Recommendation: Approval
The attached Amendment No. 1 with Cypress Seminconductor, Inc. clarifies for
the Williamson County Appraisal District our intention to include personal
property in this agreement.