R-2016-3456 - 5/12/2016RESOLUTION NO. R-2016-3456
WHEREAS, United Parcel Service, Inc. and BT -OH, LLC, (herein collectively referred
to as "UPS") has expressed to the City of Round Rock ("City") its desire to locate a distribution
and warehouse facility to the City which will provide jobs and additional tax base to the City,
WHEREAS, §380.001 Local Government Code provides that a municipality may
establish an economic development program ("Program") to promote local economic
development and to stimulate business and commercial activity in the municipality, and
WHEREAS, the City Council has determined that the Program described in Exhibit "A"
will meet the goals set forth in said §380.001 and will be of mutual benefit to both parties, Now
Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the City offers to UPS a §380.001 Program in exchange for UPS locating a
distribution and warehouse facility in the City, and
BE IT FURTHER RESOLVED
That the offer of the Program shall be as generally outlined in Exhibit "A" attached
hereto and incorporated herein for all purposes.
The City Council hereby finds and declares that written notice of the date, hour, place
and subject of the meeting at which this Resolution was adopted was posted and that such
meeting was open to the public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted upon, all as required by
the Open Meetings Act, Chapter 551, Texas Government Code, as amended.
0112.1604; 00356872
RESOLVED this 12th day of May, 2016.
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
!�"n �
SARA L. WHITE, City Clerk
EXHIBIT A
ECONOMIC DEVELOPMENT PROGRAM
The terms of the §380.001 Economic Development Program to be offered to United
Parcel Service, Inc., ("UPS") in exchange for UPS's locating a distribution and warehouse
facility in the City of Round Rock are as generally outlined below:
UPS's obligations:
1.1. UPS agrees to purchase a tract of land containing approximately 50 acres (the
"Property").
1.2 UPS agrees to construct a distribution and warehouse facility containing
approximately 100,000 square feet (the "Facility").
1.3 UPS agrees to invest at least $70,000,000 in Facility improvements and personal
property.
1.4 UPS agrees to employ at least 314 full-time equivalent employees in the Facility.
2. City's obligations:
2.1 City shall, subject to UPS's satisfaction of its obligations set out above, make the
Economic Incentive Payments to UPS based upon ad valorem property taxes on
the Facility paid by UPS as follows:
Year Percentage of Property Tax Paid
2019
100%
2020
100%
2021
100%
2022
75%
2023
75%
2024
50%
2025
50%
2026
25%
2.2 In addition, the City shall, subject to UPS's satisfaction of its obligations set out
above, make the Additional Economic Incentive Payments to UPS as follows:
Year Amount of Annual EIP's
2019 $250,000
2020 $250,000
3. The terms and provisions of this Program will be set out in more detail in the Economic
Development Program Agreement of even date herewith.
3