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G-07-06-28-10A1 - 6/28/2007 ORDINANCE NO. AN ORDINANCE DESIGNATING LOT FIVE (5), BLOCK A, RESUBDIVISION OF THE REMAINDER OF LOT 2, CORRIDOR PARK I, A SUBDIVISION IN TRAVIS COUNTY, TEXAS, AS REINVESTMENT ZONE NO. 24 (KOMICO) FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT, CITY OF ROUND ROCK, TEXAS, ESTABLISHING THE BOUNDARIES THEREOF AND OTHER MATTERS RELATING THERETO. WHEREAS, the City Council of the City of Round Rock, Texas (the "City") , desires to promote the development or redevelopment of a certain contiguous geographic area within its jurisdiction by the creation of a reinvestment zone for commercial/industrial tax abatement, as authorized by Chapter 312, Tax Code, V.A.T.S. (the "Code") ; and WHEREAS, the City Council called a public hearing for 7 :00 P.M. on the 26th day of April, 2007, to consider establishment of a reinvestment zone, such date being seven (7) days after the date of publication of the notice of such public hearing and the notification of other taxing jurisdictions as required by the Code; and WHEREAS, the City at such hearing invited any interested persons to appear and contend for or against the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory described in the Ordinance calling such hearing should be included in such proposed reinvestment zone, the concept of tax abatement; and WHEREAS, the proponents of the reinvestment zone offered evidence, both oral and documentary, in favor of all of the foregoing matters relating to the creation of the reinvestment 0:\wdox\ORDINANC\070628A1.WPD/xmc/0112-0709 zone, and no opponents of the reinvestment zone appeared to contest creation of the reinvestment zone; Now Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: I. That the facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct. II. The City Council, after conducting such hearings and having heard such evidence and testimony, has made the following findings and determinations based on the testimony presented to it: (a) That a public hearing on the adoption of the reinvestment zone has been properly called, held, and conducted and that notices of such hearing have been published as required by law and mailed to all taxing units overlapping the territory inside the proposed reinvestment zone; (b) That the boundaries of the reinvestment zone should be the area as described in Exhibit A; (c) That creation of the reinvestment zone for industrial tax abatement with boundaries as described above will result in benefits to the City and to the land included in the zone and the improvements sought are feasible and practical; (d) That the reinvestment zone as defined above meets the criteria for the creation of a reinvestment zone as set forth in Section 312 .202 of the Code in that it is reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City; and (e) That the reinvestment zone as defined above meets the criteria for the creation of a reinvestment zone as set forth in the City of Round Rock criteria and guidelines amended and readopted by Ordinance No. G-06-03-09-8B1 on March 9th, 2006. 2 . III. Pursuant to Section 312 .201 of the Tax Code, V.A.T.S. , the City hereby creates a reinvestment zone for commercial/industrial tax abatement encompassing only the area described in Exhibit "All and such reinvestment zone is hereby designated as Reinvestment Zone No. 24 (KOMICO) , City of Round Rock, Texas. IV. A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. B. The invalidity of any section or provision of this ordinance shall not invalidate other sections or provisions thereof. C. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance 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. Alternative 1. By motion duly made, seconded and passed with an affirmative vote of all the Council members present, the requirement for reading this ordinance on two separate days was dispensed with. READ, PASSED, and ADOPTED on first reading this �F_ day of QU&1k,/ 2007. 3 . Alternative 2 . READ and APPROVED on first reading this the day of , 2007 . READ, APPROVED and ADOPTED on second reading this the day of 2007 . Mayor iVY0AXfRound Rock, Texas ATTEST: CHRISTINE R. MARTINEZ, City Secr tary 4 . 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. 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: February 1,2007 Company Name: Komico Technology.Inc .Address: 2112 Clipper Court Fremont.CA 94538 II. PROJECT INFORMATION: A. Description of area to be designed as reinvestment zone: (attach map) Resub of the remainder of Lot 2 Corridor Park I (201 Michael An elo Way Austin TX 78728) B. Description of eligible improvements (real property)to be constructed: Komico is purchasing a buil ane located at 201 Michael An lg,�o Way and w'1 rn iz the interior to facilitate their iner operaucm' C. Current assessed value: 13,922,400 $482.704 for the land $3.439.696 for the improvements D. Estimated value of eligible improvements: $1,500,000 I�1 "A" E. Description of ineligible (taxable)property to be included in project: Not vet available F. Estimated value of ineligible property: Not vet available. G. Estimated value of site as of January 1 preceding abatement agreement: Land: $482,704 Improvements: $3A39,696 Personal: Property.$00 H. This project is: ( )A New Plant ( )An Expansion (X)A Modernization If Modernization: Estimated economic life of existing plant:--20L_years Added economic life from modernization: 5 years III.ECONOMIC INFORMATION: A. Construction Estimates: FCommencement Date: Com letion Date: #of Const;:t:� Feb. 1,2007 March 31,2007 1 B. Estimated number of jobs to be created: 50 Number of Primary Jobs one year after Completion Date: _50 Number of Non-Primary Jobs one year after Completion Date: _0 "Primary Jobs"means a job that is available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide,national, or international markets infusing new dollars into the local economy. C. Estimated sales taxes generated by project: The amount of annual sales subject to local sales tax: $ C. Estimated sales taxes generated by project: The amount of annual sales subject to local sales tax: S D. Estimated annual payroll: The amount of annual payroll: $ Z, OC7 Signature of Authorized Company Official Wv&!a AA C410 Printed Name and Title of Authorized Company Official Company Representative to be contacted: Name:�o.y IA CA61 Title: P -�at� r�.c�gyp.{►.1� Amoss. Taj---Aw J"�t --4044al-en Nil JA tr ,�•�... Tel 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. 3 KO M ICO USA (Reinvestment Zone 0'24,5.542 ac.) f►E W Louis Henna Blvd (SH 45) f r I � It DATE: June 21, 2007 SUBJECT: City Council Meeting - June 28, 2007 ITEM: 10A1. Consider an ordinance designating a 5.542-acre tract of land, as Reinvestment Zone No. 24 (Komico) for Industrial Tax Abatement. (First Reading) Deoa,_rtment: Administration Staff Person: David Kautz, Assistant City Manager/CFO Justification: This reinvestment zone will enable the company to establish a U.S. facility that provides important client services to Samsung. The company will provide quality jobs as well as occupy and renovate a vacant structure formerly owned by Photronics. Cost: N/A Source of funds: N/A Outside Resources:. Joe Vining, V.P. of Economic Development, Round Rock Chamber of Commerce Backaround Information: Komico is a South Korean company that is a primary servicer of equipment for Samsung. This will be their first US facility and provides a reduction of time in the turnaround of essential equipment in Samsung's process. Public Comment: A public hearing was held on April 26, 2007.