Ordinance 2002-26
ORDINANCE NO. :J..,)':Yd._: J.G
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WYLIE, COLLIN COUNTY, TEXAS, DESIGNATING
REINVESTMENT ZONE NO.4; PROVIDING ELIGIBILITY OF
THE ZONE FOR INDUSTRIAL TAX ABATEMENT;
CONTAINING FINDINGS THAT THE AREA QUALIFIES TO BE
DESIGNATED AS A REINVESTMENT ZONE AND THE
IMPROVEMENTS SOUGHT ARE FEASIBLE AND
PRACTICABLE AND OF BENEFIT TO THE LAND AND THE
CITY; PROVIDING FOR A SEVERABILITY CLAUSE;
PROVIDING FOR A REPEALING CLAUSE; AND PROVIDING
FOR THE EFFECTIVE DATE OF SAID ORDINANCE.
WHEREAS, the City Council of the City of Wylie, Texas, has caused notice to be
published in a newspaper having general circulation the City of Wylie and has delivered
such notice to the presiding officer of the governing body of each taxing unit that
includes in its boundaries real property described herein; and
WHEREAS, the City Council of the City of Wylie, Texas, has conducted a public
hearing on the designation of the area described herein as a reinvestment zone; and
WHEREAS, the proposed Tax Abatement Agreement by and among the City of Wylie,
Texas and Carlisle Coatings & Waterproofing, Inc., a Deleware Corporation, attached
hereto as Exhibit "A," has been presented to the City Council; and the City Council is of
the opinion. and finds that the terms and conditions thereof should be approved and that
the Mayor should be authorized to execute the Agreement on behalf of the City of Wylie,
Texas.
NO'\V, THEREFORE, BE IT RESOL YED BY THE CITY COUNCIL OF THE
CITY OF WYLIE, COLLIN COUNTY, TEXAS:
SECTION 1. That the City Council of the City of Wylie, Texas, finds that the
area described herein will, if designated as a reinvestment zone, be reasonably likely to
contribute to the retention or expansion of primary employment, or to attract major
investment in the zone that will be of benefit to the property and contribute to the
economic development of the City. The City Council further finds that the improvements
sought are feasible and practicable and would be of benefit to the land to be included in
the zone and to the City after the expiration of the tax abatement agreement.
SECTION 2. That pursuant to the provisions of Section 312.201 of the Texas
Tax Code, the real property described in the Tax Abatement Agreement attached hereto
as Exhibit "A" and made part hereof for all purposes is hereby designated as a
reinvestment zone and for identification is assigned the name "Reinvestment Zone No.
4."
SECTION 3. That the property within Reinvestment Zone No.4 is eligible for
industrial tax abatement effective on January 1, 2002, and for a period of six (5) years.
SECTION 4. The Agreement attached hereto as Exhibit "A" having been
reviewed by the City Council and found to be acceptable and in the best interest of the
City and its citizens, is hereby approved, and the Mayor is hereby authorized to execute
the Agreement on behalf of the City of Wylie, Texas.
SECTION 5. That should any word, sentence, paragraph, subdivision, clause,
phrase or section of this ordinance, or the Code of Ordinances, as amended hereby, be
adjudged or held to be void or unconstitutional, the same shall not affect the validity of
the remaining portions of said ordinance or the Code of Ordinances, as amended hereby,
which shall remain in full force and effect.
SECTION 6. That all ordinances of the City of Wylie, Texas, in conflict with the
provisions of this ordinance shall be, and the same hereby, repealed; however, that all
other provisions of said ordinances not in conflict herewith shall remain in full force and
effect.
SECTION 7. That this ordinance shall take effect immediately from and after its
passage in accordance with the provisions of the Charter of the City of Wylie, Texas, and
it is accordingly so ordained.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
'\VYLIE, COLLIN COUNTY, TEXAS, ON THIS THE 27th DAY OF AUGUST,
2002. . .
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EXHIBIT "A"
COUNTY OF COLLIN
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TAX ABATEMENT AGREEMENT
STATE OF TEXAS
This Tax Abatement Agreement (the "Agreement") is entered into by and among
the City of Wylie, Texas (the "CITY"), and Carlisle Coatings & Waterproofing, Inc.,
("CARLISLE") acting by and through their respective authorized officers.
WITNE S SETH:
WHEREAS, the City Council of the CITY, passed an Ordinance (the
"ORDINANCE") establishing Reinvestment Zone No. 4 (the "ZONE"), for industrial
tax abatement, as authorized by the Property Redevelopment and Tax Abatement Act,
Chapter 312 of the Texas Tax Code, as amended (the "TAX CODE"); and
WHEREAS, the CITY has adopted guidelines for tax abatement (the "TAX
ABATEMENT GUIDELINES"), and
WHEREAS, the TAX ABATEMENT GUIDELINES contain appropriate
guidelines and criteria governing tax abatement agreements to be entered into by the
CITY as contemplated by the TAX CODE; and
WHEREAS, the CITY has adopted a resolution stating that it elects to be eligible
to participate in tax abatement; and
WHEREAS, in order to maintain and enhance the industrial economic and
employment base of the Wylie area, it is in the best interest of the taxpayers for the CITY
to enter into this AGREEMENT; and
WHEREAS, CARLISLE improvements described herein will create permanent
new jobs in the CITY; and
WHEREAS, the City Council finds that the use of the PREMISES (hereinafter
defined), and other terms hereof are consistent with encouraging development of the
ZONE in accordance with the .purposes for its creation and in compliance with the TAX
ABATEMENT GUIDELINE'S, the ORDINANCE adopted by the CITY, the TAX
CODE and all other applicable laws; and
WHEREAS, the City Council finds that the improvements accomplished will be
of benefit to the land to be included in the ZONE and to the CITY after expiration of this
AGREEMENT; and
Tax Abatement Agreement - 1
WHEREAS, a copy of this AGREEMENT has been furnished, in manner
prescribed by the TAX CODE, to the presiding officers of the governing bodies of each
of the TAXING UNITS in which the PREMISES is located; and
WHEREAS, the CITY desires to enter into an AGREEMENT with
CARLISLE, the owners of Property within the ZONE for the abatement of taxes
pursuant to Chapter 312 of the TAX CODE, as amended;
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein and for good and other valuable consideration, the adequacy and receipt
of which is hereby acknowledged, including the expansion of primary employment, the
attraction of major investment in the ZONE, which contributes to the economic
development of the CITY, the parties agree as follows:
GENERAL PROVISIONS
1. CARLISLE purchased from the Wylie Economic Development Corporation (the
"WEDC") and is the owner of the real property described in Exhibit "A" attached hereto
and made part hereof for purposes as the ("PREMISES"), which PREMISES is located
within the city limits of the CITY and within the ZONE. CARLISLE is the owner of
tangible personal property that will be located on the PREMISES.
2, The PREMISES is not owned by any member of the Wylie City Council, or any
member of the Wylie Planning and Zoning Commission, or any member of the governing
body of any taxing units joining or adopting this AGREEMENT.
TAX ABATEMENT AUTHORIZED
3. This AGREEMENT is authorized by the TAX CODE, and in accordance with
the TAX ABATEMENT GUIDELINES, as approved by resolution of the City Council
of the CITY authorizing the execution of this AGREEMENT.
4. Subject to the terms and conditions of this AGREEMENT, the CITY hereby
grants CARLISLE an abatement of ad valorem taxation on the PREMISES and further
grants to CARLISLE an abatement of ad valorem taxation for the TANGIBLE
PERSONAL PROPERTY to be located on the PREMISES for a period of five (5)
years in accordance with the schedule described below. The actual percentage of taxes
subject to abatement for each year of this AGREEMENT will apply only to the portion
of TAXABLE VALUE (hereinafter defined) of the real property that exceeds the
unimproved property's taxable value for the BASE YEAR 2001 (hereinafter defined).
Tax Abatement Agreement - 2
Year
Percenta~e of Abatement
1
2
3
4
5
80%
80%
80%
80%
80%
5. The period of tax abatement herein authorized shall be five (5) years, beginning
the FIRST YEAR OF TAX ABATEMENT (hereinafter defined).
6. During the period of tax abatement herein authorized, CARLISLE shall be
subject to all City taxation not abated, including but not limited to, sales tax and ad
valorem taxation on land to the extent not abated hereby.
DEFINITIONS
7. Wherever used in this AGREEMENT, the following terms shall have the
meanings ascribed to them:
A. The PREMISES shall mean the real property described in Exhibit
"A" attached hereto and incorporated herein for all purposes including any
improvements and TANGIBLE PERSONAL PROPERTY, which is added to
the property subsequent to the BASE YEAR;
B. The IMPROVEMENTS shall mean the improvements located on
the PREMISES and as further described herein, including but not limited to
buildings and structures added to the property;
C. The BASE YEAR shall mean the year immediately preceding the
addition of IMPROVEMENTS to the PREMISES subsequently being the year
immediately preceding the execution of the Tax Abatement AGREEMENT
(2001).
D. The FIRST YEAR OF TAX ABATEMENT shall begin January
1,2002.
E. TAXABLE VALUE means the appraised value of the
PREMISES or the TANGIBLE PERSONAL PROPERTY, as the case may be,
as certified by the Collin County Appraisal District as of January 1 of a given
year.
F. TANGIBLE PERSONAL PROPERTY shall mean tangible
personal property, equipment and fixtures other than inventory, or supplies added
to the PREMISES subsequent to the BASE YEAR;
Tax Abatement Agreement - 3
G. For purposes hereof, an "Event of Bankruptcy or Insolvency"
shall mean the dissolution or termination of CARLISLE existence as a going
business, insolvency, appointment of receiver for any part of CARLISLE
property and such appointment is not terminated within ninety (90) days after
such appointment is initially made, any general assignment for the benefit of
creditors, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against CARLISLE and such proceeding is not dismissed
within ninety (90) days after filing thereof.
IMPROVEMENTS
8. CARLISLE owns the real property described in Exhibit "A" and agrees to
maintain one office building/warehouse building of approximately 107,000 square feet
(and other ancillary facilities such as reasonably required parking and landscaping more
fully described in the submittals filed by CARLISLE with the CITY) (the
"IMPROVEMENTS"). The costs of the IMPROVEMENTS exclusive of the land
shall be at least Four Million Eight-Hundred Thousand ($4,800,000). CARLISLE
agrees to maintain the PREMISES and occupy the IMPROVEMENTS for a period of
ten (10) years and to locate TANGIBLE PERSONAL PROPERTY on the
PREMISES.
9. Subject to events of casualty, condemnation, or Force Majeure, CARLISLE
agrees to maintain the PREMISES in substantial accordance with all applicable state and
local laws, codes, and regulations for a period of not less than ten (10) years after the date
a certificate of occupancy is issued for the IMPROVEMENTS or until the CITY and the
T AXING UNITS have received ad valorem taxes from the PREMISES in an amount
equal to all the ad valorem taxes abated herein whichever occurs first.
GENERAL REQUIREMENTS
10. CARLISLE shall certify in writing to the CITY the construction cost of the
IMPROVEMENTS (including, but not limited to, all architectural and engineering fees,
loan fees and other normal and customary soft costs). CARLISLE shall annually certify
to the CITY to the best of their knowledge that they are in substantial compliance with
each term of the AGREEMENT.
11. The PREMISES constructed thereon at all times shall be used in the manner that
is consistent with the City's Zoning Ordinance, as amended.
DEFAULT: RECAPTURE OF TAX REVENUE
12. In the event that CARLISLE fails in performance of any of the following
conditions: (i) completion of the IMPROVEMENTS in accordance with this
AGREEMENT or in accordance with applicable State or local laws, codes or
regulations; (ii) have any delinquent ad valorem or State sales taxes owed to the CITY
Tax Abatement Agreement - 4
(provided such party retains the right to timely and properly protest and/or contest such
taxes or assessments and the tax abatement will be applied to the amount of taxes finally
determined to be due as a result of such protest or contest); (iii) upon the occurrence of
any "Event of Bankruptcy or Insolvency"; or (iv) breaches any of the material terms and
conditions of this AGREEMENT, then CARLISLE, after the expiration of the notice
and cure periods described herein, shall be in default of this AGREEMENT ( an
"EVENT OF DEFAULT"). As liquidated damages in the event of EVENT OF
DEFAULT, and during the continuance of such EVENT OF DEFAULT, CARLISLE
shall, within thirty (30) days after demand, pay to the CITY all taxes which otherwise
would have been paid to the CITY without benefit of a tax abatement with interest at the
statutory rate for delinquent taxes as determined by Section 33.01 of the TAX CODE, as
amended, but without penalty.
13. Upon material breach by CARLISLE of any material obligations under this
AGREEMENT, the CITY shall notify CARLISLE in writing. CARLISLE shall have
thirty (30) days from receipt of the notice in which to cure any such default. If the default
cannot reasonably be cured within a thirty (30) day period, and CARLISLE commences
action reasonably calculated to cure such default within the thirty (30) day period and
continues thereafter to diligently and continuously pursue the same to conclusion,
CARLISLE shall have up to, but not exceeding, an additional ninety (90) days in which
to effectuate the cure of such breach. If the default cannot be reasonably cured within
such period, the CITY may, in its reasonable discretion extend the period in which the
violation must be cured.
14. If CARLISLE fails to cure the default within the time provided herein or, as such
time period may be extended, an EVENT OF DEFAULT shall be deemed to have
occurred and during the continuance of such EVENT OF DEFAULT the CITY at its
sole option shall have the right to terminate this AGREEMENT by written notice to
CARLISLE.
15. Upon termination of this AGREEMENT by CITY, all tax revenue abated as a
result of this AGREEMENT shall become a debt to the CITY as liquidated damages and
shall become due and payable not later than thirty (30) days after a notice of termination
is made. The CITY shall have all remedies for the collection of delinquent property tax.
The CITY at its sole discretion has the option to provide a repayment schedule. The
computation of tax revenue abated for the purposes of the AGREEMENT shall be based
upon the full TAXABLE VALUE without tax abatement for the years in which tax
abatement hereunder was received by CARLISLE with respect and/or the TANGIBLE
PERSONAL PROPERTY as the case may be, as determined by the Collin County
Appraisal District, multiplied by the tax rate of the years in question, as calculated by the
Collin County Tax Assessor-Collector. Penalties as provided for delinquent taxes shall
accrue after the expiration of the thirty (30) day payment period.
Tax Abatement Agreement - 5
ANNUAL APPLICATION FOR TAX EXEMPTION
16. It shall be the responsibility of CARLISLE, pursuant to the TAX CODE, to file
an annual exemption application form with the Chief Appraiser for each appraisal district
in which the eligible taxable property has situs. A copy of each exemption application
shall be submitted to the CITY.
SUCCESSORS AND ASSIGNS
17. This AGREEMENT shall be binding on and inure to the benefit of the party to it
and its respective heir, executor, administrator, legal representatives, successors, and
assigns. This AGREEMENT may be assigned to affiliates of CARLISLE without the
CITY's consent. Any other assignment shall require the consent of the CITY, such
consent not to be unreasonably withheld, conditioned or delayed.
NOTICE
18. All notices required by this AGREEMENT shall be addressed to the following,
or such other party or address as the parties designate in writing, by certified mail,
postage prepaid, return receipt requested, or by hand delivery. Any notice required or
permitted to be delivered hereunder shall be deemed received three (3) business days after
deposited in an official depository under the regular care and custody of the United States
Postal Service and sent by United States Mail, postage prepaid, certified mail, return
receipt requested, addressed to the party at the address set forth below or on the day
actually received in sent by courier or otherwise hand delivered. No notice of change of
address shall be effective until ten (10) days following deposit of the same in an official
depository under the regular care and custody of the United States Postal Service as
aforesaid.
1.
CITY
Mayor and City Manager
City of Wylie
2000 Highway 78 North
Wylie, Texas 75098
2.
Mr. Richard Abernathy
City of Wylie City Attorney
1700 Redbud Blvd., Suite 300
P.'O. Box 1210
McKinney, Texas 75069-1210
3.
CARLISLE General Manager
Carlisle Coatings & Waterproofing, Inc.
903 West Hensley Lane
Wylie, Texas 75098
Tax Abatement Agreement - 6
Carlisle SynTec Legal Department
171 03 Ritner Road
Carlisle, P A 17078
AUTHORIZATION
19. This AGREEMENT was authorized by ordinance of the City Council
authorizing the Mayor to execute this AGREEMENT on behalf of the CITY.
SEVERABILITY
20. In the event any section, subsection, paragraph, sentence, phrase or word herein is
held invalid, illegal or unconstitutional, the balance of this AGREEMENT, shall be
enforceable and shall be enforced as if the parties intended at all times to delete said
invalid section, subsection, paragraph, sentence, phrase or word; and such invalid, illegal,
unconstitutional or unenforceable section, subsection, paragraph, sentence, phrase or
word shall be substituted by a section, subsection, paragraph, sentence, phrase or word as
near in substance thereto as may be valid, legal, constitutional and enforceable.
APPLICABLE LAW
21. This AGREEMENT shall be construed under the laws of the State of Texas.
Venue for any action under this AGREEMENT shall be the State District Court of
Collin County, Texas.
ENTIRE AGREEMENT
22. This AGREEMENT embodies the complete agreement of the parties hereto,
superseding all oral or written previous and contemporary agreements between the parties
and relating to the matters in this AGREEMENT, and except as otherwise provided
herein cannot be modified without written agreement of the parties to be attached to and
made part of this AGREEMENT.
23. The provisions of this AGREEMENT are hereby declared covenants running
with the PREMISES and are fully binding on all successors, heirs, and assigns of
CARLISLE who acquire any right, title, or interest in or to the PREMISES or any part
thereof. Any person who acquires any right, title, or interest in or to the PREMISES, or
any part hereof, thereby agrees and covenants to abide by and fully perform the
provisions of this AGREEMENT with respect to the right, title or interest in such
PREMISES.
EXHIBITS
24. All exhibits to this AGREEMENT are incorporated herein by reference for all
purposes wherever reference is made to the same.
Tax Abatement Agreement - 7
EXECUTED in duplicate originals this the
day of
,2002.
CITY OF WYLIE, TEXAS
By:
JOHN MONDY, MAYOR
ATTEST:
By:
BARBARA SALINAS, CITY SECRETARY
EXECUTED in duplicate originals this the
day of
,2002.
CARLISLE COATINGS &
WATERPROOFING,INC.
a Deleware Corporation
By:
ALTON HARVEY, CFO
EXECUTED in duplicate originals this the
day of
,2002.
COUNTY OF COLLIN
By:
RON HARRIS, COUNTY JUDGE
EXECUTED in duplicate originals this the
day of
,2002.
COLLIN COUNTY COMMUNITY
COLLEGE DISTRICT
By:
SAM E. ROACH, CHAIRMAN
Tax Abatement Agreement - 8
MAYOR'S ACKNOWLEDGEMENT
STATE OF TEXAS ~
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COUNTY OF COLLIN ~
This instrument was acknowledged before me on the day of
2002, by John Mondy, as Mayor of the City of Wylie, Texas.
Notary Public In and For the State of Texas
Tax Abatement Agreement - 9
CARLISLE'S ACKNOWLEDGEMENT
STATE OF TEXAS ~
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COUNTY OF COLLIN ~
This instrument was acknowledged before me on the day of
2002, by Alton Harvey, as CFO of Carlisle Coatings & Waterproofing, Inc.
Notary Public In and For the State of Texas
Tax Abatement Agreement - 10
COUNTY'S ACKNOWLEDGEMENT
STATE OF TEXAS ~
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COUNTY OF COLLIN ~
This instrument was acknowledged before me on the day of
2002, by Ron Harris, as County Judge of Collin County, Texas.
Notary Public In and For the State of Texas
Tax Abatement Agreement - 11
COLLEGE DISTRICT'S ACKNO'\VLEDGEMENT
STATE OF TEXAS ~
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COUNTY OF COLLIN ~
This instrument was acknowledged before me on the day of
2002, by Sam E. Roach, as Chairman of the Collin County Community College District.
Notary Public In and For the State of Texas
Tax Abatement Agreement - 12
EXHIBIT "A"
PROPERTY DESCRIPTION
Being a tract of land more particularly described as Lot 3, Block B, of Premier Industrial
Park South, First Revision, an addition to the City of Wylie, Collin County, Texas,
according to the plat thereof recorded in the Cabinet L, Page 427, Map Records, Collin
County, Texas.
Tax Abatement Agreement - 13
THE WYLIE NEWS
Covering Wylie, Sachse, Murphy and the surrounding area
liON. Ballard St.
P.O. Box 369
Wylie, Texas 75098
972.442.5515
Fax 972.442.4318
STATE OF TEXAS
COUNTY OF COLLIN
Before me, the undersigned authority, on this day personally appeared Chad Engbrock, of THE WYLIE
NEWS, a newspaper regularly published in Collin County, Texas and having general circulation in Collin
County, Texas, who being by me duly sworn deposed and says that the foregoing attached
th-J( ;( {J 0.1. - <"2 ( . entk CQ 0 (I J. - a. ~ . {)y-zJ2... ,;;. 0 0 ~ - d 3 [)-rQ d.. 0 O.L - a v -;:t '1
was published in said new;paper on the followin'g dates, to-wit: '
)~r
, 2002, and
, 2002.
C1!t~
Subscribed and sworn to before me this the ;<~
to certify which witness my hand and seal of office.
day of t2*
, 2002,
PATTI J. 8Af<ER
Notary Public
Slate of Texas
My Comm. Exp. 07-31-05
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Notary Public in and for
The State of Texas
r;-3/-05
1fJ -D3 {)tJ
My Comnlission Expires
ORDINANCE NO.
2002-26
AN ORDINANCE OF
THE CITY COUNCIL OF
THE CITY OF WYLIE,
COLLIN COUNTY,
TEXAS, DESIGNATING
REINVESTMENT ZONE
NO.4; PROVIDING ELI-
GIBILITY OF THE
ZONE FOR INDUSTRI-
AL TAX ABATEMENT;
CONTAINING FIND-
INGS THAT THE AREA
QUALIFIES TO BE DES-
IGNATED AS A REIN-
VESTMENT ZONE AND
THE IMPROVEMENTS
SOUGHT ARE FEASI-
BLE AND PRACTICA-
BLE AND OF BENEFIT
TO THE LAND AND
THE CITY; PROVIDING
FOR A SEVERABILITY
CLAUSE; PROVIDING
FOR A REPEALING
CLAUSE; AND PROVID-
ING FOR THE EFFEC-
TIVE DATE OF SAID
Mayor John Mondy
Attest:
Barbara A Salinas
City Secretary