R-97-08-14-13M - 8/14/1997as amended, and as authorized by Resolution No. R- 95- 08- 24 -13B,
dated August 24, 1995, the City entered into a tax abatement
agreement with Prudential Overall Supply, Inc., regarding property
in Reinvestment Zone No. Eleven; and
WHEREAS, the City, the Williamson County Commissioners Court,
and Prudential Overall Supply, Inc., intended for the agreement to
include the abatement of personal property taxes; and
WHEREAS, Prudential Overall Supply, Inc. experienced
unexpected delays in the construction of their facility and in
order to realize the full benefit of the agreement, Prudential
Overall Supply, Inc. has requested that the starting date be
delayed until January 1997; and
WHEREAS, the parties desire to amend the agreement to include
language evidencing their intentions and to begin the agreement in
1997; Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS
1(:\WP000S \RESOIOTI\SS70814N WPO /keh
RESOLUTION NO. R- 97- 08- 14 -13M
WHEREAS, in accordance with Chapter 312, Tax Code, V.A.T.S.,
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 Prudential Overall Supply, Inc.
RESOLVED this 14th day of Aug ust, 1997.
CHARLES CUL 14K, MAYOR
CITY OF ROUND ROCK, TEXAS
ATTEST:
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E
LAND, City ecretary
2
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
AMENDMENT NO.1
TO
TAX ABATEMENT AGREEMENT
WITH
PRUDENTIAL OVERALL SUPPLY. INC.
This Amendment No. 1 is entered into this the /ti day of 1997 to
amend that certain agreement authorized by City of Round Rock Resolu n No. R -95-
08-24-13B on August 24, 1995, and by order of the Williamson County Commissioners
Court on September 19, 1995, to abate certain property taxes of Prudential Overall
Supply, Inc., for the Tax Years 1997 - 1999, inclusive.
Tax Year 1997
Tax Year 1998
Tax Year 1999
I: \ TEXT \ CITY \BCONDBUC \TA%ABATE \NffADq I.PCS /kale
90% abatement
60% abatement
30% abatement
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. 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 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:
These abatements shall be for three (3) tax years beginning January
1, 1997.
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:
Prudential Overall Supply
John Thompson
P.O. Box 11210
Santa Ana, CA 92711 -1210
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 day of 1997.
CITY • F ROUND ROCK, TEXAS
CHARLES C
2.
PPER, MAYOR
ATTEST:
ATTEST:
WILLIAMSON COUNTY
COMMISSIONERS COURT
,CO NTY JUDGE
PRUDENTIAL OVERALL SUPPLY, INC.
G � f.L'�1 /OZ7-0a , ITS _ .tom
3.
DATE: August 12,1997
SUBJECT: City Council Meeting, August 14,1997
Item: 13.M. Consider resolution authorizing the Mayor to execute
Amendment No. 1 to the Tax Abatement Agreement with
Prudential Overall Supply, Inc.
Staff Resource Person: Joe Vining
Staff Recommendation: Approval
The attached Amendment No. 1 with Prudential Overall Supply, Inc. clarifies for
the Williamson County Appraisal District our intention to include personal
property in this agreement.