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R-98-05-14-10D2 - 5/14/1998RESOLUTION NO. R -98-05-14-10D2 WHEREAS, pursuant to §380.001 of the Texas Local Government Code, the City is authorized to establish an Economic Development Program for making loans and grants of public money to promote local economic development, and WHEREAS, Gardner D. Atkinson, Jr. and Henrietta Atkinson, wish to participate in said Economic Development Program, and WHEREAS, the City desires to enter into an Economic Development Program Agreement with Gardner D. Atkinson, Jr. and Henrietta Atkinson to provide a tax reimbursement for certain real property located at 310 W. Main Street, 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 an Economic Development Program Agreement with Gardner D. Atkinson, Jr. and Henrietta Atkinson. 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, and the Act. RESOLVED this 14th day of May, 19 4021'1 CHARLESR, Mayor EST: City of Round Rock, Texas ANNE LAND, City Secretary K:\WPDOCS\RESOLWI\R80514D2.WPD/scg ECONOMIC DEVELOPMENT PROGRAM AGREEMENT This Economic Development Program Agreement ("Agreement") is made and entered into by and between THE CITY OF ROUND ROCK, TEXAS (the "City"), a municipal corporation, and GARDNER D. ATKINSON and HENRIETTA ATKINSON (the "Applicant"), for the purposes and considerations stated below: RECITALS: WHEREAS, pursuant to §380.001 of the Texas Local Government Code, the City is authorized to establish an Economic Development Program for making loans and grants of public money to promote local economic development, and WHEREAS, the Applicant desires to participate in the Economic Development Program by entering into this Agreement; NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Authorization. This Agreement is authorized by §380.001 of the Texas Local Government Code. 2. Definitions. Base Year means, with respect to the Eligible Tract, the Tax Year 1996. Base Year Valuation means the valuation on the Williamson County tax roll for an Eligible Tract for the Base Year. Eligible Tract means the property more particularly described in Exhibit "A", attached hereto and incorporated herein. Eligible Tract Property Tax Revenue means the Property Tax Revenue collected with regard to the Eligible Tract. Eligible Value means, with regard to the Eligible Tract for a Program Year, the difference between the valuation of the Eligible Tract for the Program Year less the Base Year Valuation of the Eligible Tract. Program means the Economic Development Program established by this Agreement. Program Payment means the amount paid by the City to the Applicant under the Program. C:\TEXT\ROUNDROC\REIMBATK.WPD/cdc Program Year means, with respect to the Eligible Tract, any of the first ten (10) full Tax Years following 1996. Property means that portion of the real property more particularly described on Exhibit A. Property Tax Revenues means the amount of property tax collected by the City on the Eligible Value of the Property. Tax Year shall have the same meaning as in Texas Property Tax Code Section 1.04(13), as amended from time to time. As of the date of execution of this Agreement, Tax Year means a calendar year. 3. Term. This Agreement shall be effective as of the date of execution by both parties, and shall remain in effect so long as the Applicant complies with all terms and conditions of this Agreement. 4. Program Payment. (a) The Base Year for the Eligible Tract 1996. The Base Year Value for the Eligible Tract is $70,984.00. Program Years for the Eligible Tract shall begin in 1996 and shall continue for ten (10) years. (b) The Program Payment consists of a reimbursement to the Applicant of the Property Tax Revenues paid by the Applicant. (c) The Applicant shall provide the City with a written notice each time that property taxes are paid to the City which will result in Property Tax Revenues to the City. The notice shall set forth the Eligible Tract, the Program Year to which the payment relates, and the amount of the Program Payment due to the Applicant. As soon as practicable thereafter, the City shall pay the corresponding Program Payment to the Applicant. The Applicant shall forfeit all rights to a Program Payment for a Program Year if tax payments for that year are delinquent, pursuant to provisions of the Texas Tax Code. 5. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the transaction contemplated herein. This Agreement may only be amended, altered, or revoked by written instrument signed by the City and the Applicant. 6. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the parties, their respective successors and assigns. The Applicant may assign all or part of its rights and obligations hereunder only upon prior written approval of the City, which approval shall not be unreasonably withheld or delayed. 7. Notice. Any notice and/or statement required and permitted to be delivered shall be deemed delivered by depositing same in the United States mail, certified with return receipt requested, postage prepaid, addressed to the appropriate party at the following addresses, or at such other addresses provided by the parties in writing; APPLICANT: CITY: 8. Interpretation. Gardner Atkinson 1604 Pin Oak Round Rock, Texas 78664. Joe Vining Director of Planning 221 East Main Street Round Rock, Texas 78664 Regardless of the actual drafter of this Agreement, this Agreement shall in the event of any dispute over its meaning or application, be interpreted fairly and reasonably, and neither more strongly for or against any party. 9. Applicable Law. This Agreement is made, and shall be construed and interpreted under the laws of the State of Texas and venue shall lie in Williamson County, Texas. 10. Severabilitv. In the event any provision of this Agreement is illegal, invalid, or unenforceable under present or future laws, then, and in that event, it is the intention of the parties hereto that the remainder of this Agreement shall not be affected thereby, and it is also the intention of the parties to this Agreement that in lieu of each clause or provision that is found to be illegal, invalid, or unenforceable a provision be added to this Agreement which is legal, valid and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. ATTEST: a2mAtv el/nzt- J ANNE LAND, City Secretary CIT OF ROUND ROCK, TEXAS CHARLIE CULPIIVICMAYOR APPLICANT GARDNER D. ATKINSON 1 HENRIETTA ATKINSON J EXHIBIT "A" Page 1 of 1 Property Description Lot 8 & 9, Block 25, Round Rock City of, Williamson County, Texas. 5 Downtown Reinvestment Zone Abatement 206 W P►VS�N P 108 106 306 306 2 202 106 105 103 7, ROUND R4C1(gVE 212 210 108 N CPA 400 405 � PVE 407 410 1 211 209 303 200 309 306-.w 206 212 101 407 409 306 304 302 113 106 310V 105 203 NP' 409 102 ,N 51 209 � 110 N 410 MA NPA 106 307 110 108 IPA (P(P 208 405 403 409 407 N 105 302 N.A 310 109 BPCop P Date: May 8,1998 Subject: City Council Meeting, May 14, 1998 Item: 10.D.2. Consider a resolution authorizing the Mayor to enter into a Section 380.001 of the Local Government Code Economic Development Program agreement with Gardner D. Atkinson, Jr. and Henrietta Atkinson. This agreement grants a ten year tax reimbursement, estimated at $209.70, on the increased value of the premises and improvements for renovations and additions to the existing structure(s) over the value set in 1996. The property is located at 310 W. Main Street (Lots 8 and 9, Block 25, City of Round Rock) which is in the Downtown Reinvestment Zone. Applicant: Gardner D. Atkinson, Jr. Staff Resource Person: Joe Vining, Planning Director. This is a program payment agreement that consists of a reimbursement to the applicant of the property tax revenues beginning in 1996. The applicant will provide the City with a yearly written notice each time property taxes are paid to the City that identifies the eligible tract, the program year to which the payment relates, and the amount of the payment due to the applicant. As soon as practicable thereafter, the City will pay the corresponding program payment to the applicant. However, the applicant will forfeit all rights to a program payment for a program year if tax payments for that year are delinquent. The appraised value of this property in 1996 was $70,984.. The applicant pays taxes on this base value for ten years. The appraised value of this property in 1997 was $76,546. Using the current ad valorem rate of .37707/$100, the amount to be reimbursed is estimated at $20.97 per year for ten years, or approximately $209.70. $76,546 increased value (1997) -70,984 fixed taxable base (1996) $5,562 value eligible for tax reimbursement $5,562/ 100=$55.62 55.62 X .37707= $20.97 10 yrs estimatedprogram payment $209.70