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Ordinance 2002-47 ORDlNANCENO. fl~-'il AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WYLIE, COLLIN COUNTY, TEXAS, DESIGNATING REINVESTMENT ZONE NO.5; PROVIDING ELIGffiILITY OF THE ZONE FOR TAX ABATEMENT; CONTAINING FINDINGS THAT THE AREA QUALIFIES TO BE DESIGNATED AS A REINVESTMENT ZONE AND THE IMPROVEMENTS SOUGHT ARE FEASffiLE 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 ofthe City ofWyhe, 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 Home Depot, U.S.A., 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. NOW, THEREFORE, BE IT RESOLVED 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 will 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 ofSectioH 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.5." SECTION 3. That the property within Reinvestment Zone No.5 is eligible for tax abatement effective on January 1, 2004, and for a period often (10) 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 WYLIE, COLLIN COUNTY, TEXAS, ON THIS THE 21st DAY OF NOVEMBER, 2002. ATTEST: TAX ABATEMENT AGREEMENT This Tax Abatement Agreement (the "AGREEMENT") is entered into by and among the City of Wylie, Texas (the "CITY"), a home rule city and municipal corporation of Collin County, Texas, duly acting herein by and through its mayor, and Home Depot U.S.A., Inc. ("HOME DEPOT"), a Delaware corporation, duly acting by and through its herein. WHEREAS, on November 21, 2002 the City Council of the CITY, passed Ordinance No. (the "ORDINANCE") establishing Reinvestment Zone No.5 (the "ZONE"), for tax abatement, as authorized by the Property Redevelopment and Tax Abatement Act, Chapter 312 of the Texas Tax Code, as amended (the "ACT"); and WHEREAS, the CITY has adopted by Resolution No. 2002-1O(R) City of Wylie Economic Development Incentives Guidelines and Criteria (the "GUIDELINES AND CRITERIA"), attached hereto as Exhibit "A", gov~rning tax abatement agreements to be entered into by the CITY as contemplated by the ACT, and WHEREAS, the CITY has concluded a:1d hereby finds that the GUIDELINES AND CRITERIA contain appropriate guidelines and criteria governing tax abatement agreements to be entered into by the CITY as contemplated by the ACT; and WHEREAS, the above-referenced-resolution states that the CITY elects to be eligible to participate in tax abatement; and WHEREAS, the CITY wishes to maintain and enhance the economic and employment base of the Wylie area for the long-term interest and benefit of the CITY in accordance with the Ordinance and the ACT, and WHEREAS, the CITY has concluded and hereby finds that the HOME DEPOT IMPROVEMENTS described herein will create ~ermanent new jobs and investment in the CITY; and WHEREAS, the CITY has concluded and hereby finds that the contemplated use of and IMPROVEMENTS to 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 GUIDELINES AND CRITERIA, the ORDINANCE and similar guidelines and criteria adopted by the CITY, the ACT and all other applicable laws; and Tax Abatement Agreement - 1 / WHEREAS, the CITY has concluded and hereby finds that the contemplated improvements sought are feasible and practicable and will be of benefit to the land to be included in the ZONE and to the CITY after expiration of this AGREEMENT; and WHEREAS, a copy of this AGREEMENT has been furnished, in manner prescribed by the ACT, 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 if'lto an AGREEMENT with HOME DEPOT which, subject to the terms of that certain Purchase Agreement (the "PURCHASE AGREEMENT") dated August 20, 2002 between HOME DEPOT and Greenway-Wylie L.P., will be the owners of the PREMISES (defined below) within the ZONE for the abatement of taxes pursuant to Chapter 312 of the ACT, as amended; NOW, THEREFORE, the parties to this AGREEMENT do mutually agree as follows: GENERAL PROVISIONS 1. HOME DEPOT represents that, subject to the terms of the PURCHASE AGREEMENT, it will own the real property des-:ribed in Exhibit "B" attached hereto and made part hereof for all purposes (as further described in Paragraph 6.A. below, the PREMISES), on or about November 22,2002. HOME DEPOT will be the owner of tangible personal property that will be located on tpe PREMISES. This AGREEMENT is null and void if the IMPROVEMENTS are not substantially complete by March 1, 2004, subject to Force Majuere. TAX ABATEMENT AUTHORIZED 2. This AGREEMENT is authorized by the ACT, and in accordance with the GUIDELINES AND CRITERIA, as approved by resolution of the City Council of the CITY authorizing the execution of this AGREEMENT. 3. Subject to the terms and conditions of this AGREEMENT, the CITY hereby grants HOME DEPOT an abatement of ad valorem taxation on the PREMISES (including the IMPROVEMENTS) and further grants to HOMF DEPOT an abatement of ad valorem taxation for the TANGffiLE PERSONAL PROPERTY (hereinafter defined) to be located on the PREMISES for a period often (10) years in accordance with the schedule described below. The actual percentage of taxes suhject to abatement for each year of this AGREEMENT will apply only to the portion of ASSESSED VALUE (hereinafter defined) of the real property that exceeds the unimproved property's taxable value for the BASE YEAR 2002 (hereinafter defined). The tax abatement agreement for TANGffiLE PERSONAL PROPERTY will only apply to the TAXABLE VALUE of personal property added to the PREMISES after the BASE YEAR 2002. Tax Abatement Agreement - 2 Year Percentage of Abatement 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 4. The time periods above are subject to adjustments based on any adjustment of the FffiST YEAR OF TAX ABATEMENT to other than 2004 pursuant to Paragraph 6D below. 5. The period of tax abatement herein authorized shall be ten (10) years, beginning the FIRST YEAR OF TAX ABATEMENT (hereinafter defined). 6. During the period of tax abatement herein authorized, HOME DEPOT shall be subject to all City taxation not abated, including but not limited to, sales tax, personal property taxes of inventory, and, to the extent not abated hereby, ad valorem taxation on land (i.e., based on the BASE YEAR ASSESSED VALUE). 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 "B" attached hereto and incorporated herein for all purposes including any IMPROVEMENTS and TANGffiLE 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 2002; Tax Abatement Agreement - 3 D. The FffiST YEAR OF TAX ABATEMENT shall begin the later of January 1, 2004 or the January 1 st following substantial completion of the IMPROVEMENTS; E. ASSESSED VALUE means the appraised value of the PREMISES or the TANGmLE PERSONAL PROPERTY, as the case may be, as certified by the Collin County Appraisal District as of January 1 of a given year prior to the application of any exemption (i.e. abatement) subject to the resolution of any contest of ASSESSED VALUE by HOME DEPOT; F. TANGmLE PERSONAL PROPERTY shall mean tangible personal property, equipment and fixtures (other than inventory or supplies) added to the PREMISES subsequent to the BASE YEAR; and G. For purposes hereof, an "Event of Banlu uptcy or Insolvency" shall mean the dissolution or termination of the HOME DEPOT, located on the PREMESIS, cessation of HOME DEPOT as a going business, insolvency, appointment of receiver for any part of HOME DEPOT'S 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 HOME DEPOT and such proceeding is not dismissed within ninety (90) days after filing thereof IMPROVEMENTS 8. HOME DEPOT, subject to the terms of the PURCHASE AGREEMENT, will own the real property, described in Exhibit "B", on or about November 22, 2002 and agrees to maintain and operate one (1) Home Depot home-improvement center of approximately one-hundred twenty-six thousand two-hundred twenty-one (126,221) square feet, comprised of an approximately 94,981 square foot building and an approximately 31,240 square foot garden center (and other ancillary facilities such as reasonably required parking and landscaping more fully described in the construction plans filed by HOME DEPOT with the CITY for the purpose of obtaining a building permit which plans are made part of this AGREEMENT) (the "IMPROVEMENTS"). HOME DEPOT agrees to provide access to and authorize in:.pection of the PREMESIS and IMPROVEMENTS by municipal employees to ensure that the IMPROVEMENTS or repairs are made according to the specifications and conditions of the AGREEMENT. The ASSESSED VALUE of the IMPROVEMENTS exclusive of the land shall be at least Five Million and 00/100 Dollars ($5,000,000) as of the commencement of the FffiST YEAR OF TAX ABATEMENT. Subject to events of casualty, condemnation or Force Majeure and subject to Paragraph 16 below, HOME DEPOT agrees to maintain the PREMISES and occupy the IMPROVEMENTS for a period often (10) years and to locate TANGffiLE PERSONAL PROPERTY on the PREMISES. The annual ASSESSED VALUE of HOME DEPOT'S inventory shall be at least Two Million and Tax Abatement Agreement - 4 00/100 Dollars ($2,000,000). Tax Abatement on the PREMISES is expressly contingent on HOME DEPOT constructing the IMPROVEMENTS on the PREMISES, operating a Home Depot (subject to Paragraph 16 below), installing TANGmLE PERSONAL PROPERTY, and maintaining inventory values according to the terms of this paragraph. 9. Subject to events of casualty, condemnation, or Force Majeure, and subject to Paragraph 16 below, HOME DEPOT agrees to maintain and operate the PREMISES in accordance with all applicable federal, 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. GENERAL REQUIREMENTS 10. HOME DEPOT, upon written request, shall annually certify to the CITY that they are in compliance with each term of the AGREEMENT. 11. The IMPROVEMENTS constructed on the PREMISES shall be used as a Home Depot (subject to Paragraph 16 below) in the manner that is consistent with the City's Zoning Ordinance, as amended, and all other applicable federal, state, and local laws, codes and regulations. DEFAULT: RECAPTURE OF TAX REVENUE 12. If HOME DEPOT fails to (i) construct and complete the IMPROVEMENTS and/or install the TANGmLE PERSONAL PROPERTY in accordance with this AGREEMENT for which an abatement has been granted; (ii) operate the PREMISES as a Home Depot (subject to Paragraph 16 below); (iii) pay in full the real or personal property taxes to the CITY (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 by February 1 following the year in which taxes are assessed); (iv) any "Event of Bankruptcy or Insolvency" occurs; or (v) HOME DEPOT breaches any of the terms and conditions of this AGREEMENT, then HOME DEPOT shall be in default of this AGREEMENT (an "EVENT OF DEFAULT"). In the EVENT OF DEFAULT, the CITY will give HOME DEPOT written notice of such EVENT OF DEFAULT and if HOME DEPOT has not cured the EVENT OF DEFAULT with in thirty (30) days of said written notice, this AGREEMENT may be terminated by the CITY; however, the CITY will not unreasonably withhold extension of said thirty (30) day cure period provided HOME DEPOT commences cure within said thirty (30) day period, as evidenced by HOME DEPOT'S written request for extension and CIT'!'S written acceptance, and thereafter diligently pursues such cure to completion. Tax Abatement Agreement - 5 13. If the EVENT OF DEFAULT is: (i) the failure to construct the IMPROVEMENTS in accordance with this AGREEMENT, and if HOME DEPOT fails to cure such EVENT OF DEFAULT in accordance with this AGREEMENT, as the CITY'S sole remedy, all of the taxes that have been abated pursuant to this AGREEMENT, shall be due and owing to the CITY; or (ii) the failure of HOME DEPOT to maintain and operate the PREMISES for at least five (5) years after the date a certificate of occupancy is issued (subject to casualty, condemnation or Force Majeure, and subject to Paragraph 16 below), and if HOME DEPOT fails to cure such EVENT OF DEFAULT in accordance with this AGREEMENT, as the CITY'S sole remedy, all of the taxes that have been abated pursuant to this AGREEMENT, shall be due and owing to the CITY; or (iii) the failure of HOME DEPOT to maintain and operate the PREMISES for at least ten (10) years after the date a certificate of occupancy is issued (subject to casualty, condemnation or Force Majeure and subject to Paragraph 16 below), but HOME DEPOT has operated and maintained the PREMISES for at least five (5) years after the date a certificate of occupancy is issued (subject to casualty, condemnation or Force Majeure, and subject to Paragraph 16 below" and if HOME DEPOT fails to cure such EVENT OF DEFAULT in accordance with this AGREEMENT, as the CITY'S sole remedy, a portion of the taxes that have been abated pursuant to this AGREEMENT, shall be due and owing to the CITY as follows: (a) if the EVENT OF DEFAULT and failure to cure is following the fifth (5th) but prior to the sixth (6th) anniversary of the date of issuance of the certificate of occupancy, five-tenths (5/10ths) of the taxes that have been abated pursuant to this AGREEMENT, shall be due and owing to the CITY, (b) if the EVENT OF DEFAULT and failure to cure is following the sixth (6th) but prior to the seventh (7th) anniversary of the date of issuance of the certificate of occupancy, four-tenths (4/10ths) of the taxes that have been abated pursuant to this AGREEMENT, shall be due and owing to the CITY, (c) if the EVENT OF DEFAULT and failure to cure is following the seventh (7th) but prior to the eighth (8th) anniversary of the date of issuance of the certificate of occupancy, three-tenths (3/lOths) of the taxes that have been abated pursuant to this AGREEMENT, shall be due and owing to the CITY, (d) if the EVENT OF DEFAULT and failure to cure is following the eighth (8th) but prior to the ninth (9th) anniversary of the date of issuam,;e of the certificate of occupancy, two-tenths (2/10ths) of the taxes that have been abated pursuant to this AGREEMENT, shall be due and owing to the CITY, and (e) if the EVENT OF DEFAULT and failure to cure is following the ninth (9th) but prior to the tenth (10th) anniversary of the date of issuance of the certificate of occupancy, one-tenth (l/10th) of the taxes that have been abated pursuant to this AGREEMENT, shall be due and owing to the CITY. This Paragraph 13 applies only to those EVENTS OF DEFAULT described in this Paragraph 13, and not to any other EVENT OF DEFAULT. 14. In the event the CITY defaults in performance of this AGREEMENT, HOME DEPOT shall give the CITY written notice of default. If the CITY fails to cure the default within thirty (30) days of said written notice, HOME DEPOT shall have the right to seek specific performance of this AGREEMENT as its sole and exclusive remedy. Tax Abatement Agreement - 6 ANNUAL APPLICATION FOR TAX EXEMPTION IS. It shall be the responsibility of HOME DEPOT, pursuant to the TAX CODE, to file an annual exemption application form with tl".e 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; provided however, failure to file the annual exemption only eliminates HOME DEPOT'S abatement for the noncompliant year and is not an EVENT OF DEFAULT. ASSIGNMENT 16. The requirement of this AGREEMENT that HOME DEPOT operate and maintain the PREMISES are subject to this Paragraph 16. The abatement may not be transferred and assigned by HOME DEPOT to a new holder or lessee of the same facility without written approval by the CITY. Consideration of the transfer and assignment by the CITY will not be unreasonably withheld or delayed. NOTICE 17. All notices required by this AGREEMENT shall be addressed to the following, or such other party or address as the parties designat~ 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. I. CITY Mayor and City Manager City of Wylie 2000 Highway 78 North Wylie, Texas 75098 II. Mr. Richard Abernathy City of Wylie City Attorney 1700 Redbud Blvd., Suite 300 P.O. Box 1210 McKinney, Texas 75069-1210 Tax Abatement Agreement - 7 III. HOME DEPOT Home Depot U.S.A., Inc 2455 Paces Ferry Road NW Building C, 20th Floor Atlanta, Georgia 30339-2354 Attn: Vice President, Real Estate Law Group Telephone No. 770-433-8211 Fax No. 770-384-3042 With a copy to: Home Depot U.S.A., Inc. 2800 Forest Lane Dallas, Texas 75234 Attn: Corporate Counsel Fax No. 972-402-39j6 AUTHORIZATION 18. Each party represents that it has full authority to execute this AGREEMENT. SEVERABILITY 19. 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 may 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 20. 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 21. 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. Tax Abatement Agreement - 8 22. The provisions of this AGREEMENT are hereby declared covenants running with the PREMISES and are fully binding on all successors, heirs, and assigns of HOME DEPOT 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. EXHmITS 23. All exhibits to this AGREEMENT are incorporated herein by reference for all purposes wherever reference is made to the same. TIME IS OF THE ESSENCE 24. Time is of the Essence in this AGREEMENT. EXECUTED in duplicate originals this the day of ,2002. CITY OF WYLIE, TEXAS By: JOHN MONDY, MAYOR ATTEST: BARBARA SALINAS, CITY SECRETARY EXECUTED in duplicate originals this the day of ,2002. HOME DEPOT a Delaware Corporation By: ITS: Tax Abatement Agreement - 9 MAYOR'S ACKNOWLEDGEMENT STATE OF TEXAS ~ ~ COUNTY OF COLLIN ~ This instrument was acknowledged before me on the ___ day of 2002 by John Mondy, as Mayor of the City ofWylit.:, Texas. Notary Public In and For the State of Texas Tax Abatement Agreement - 10 HOME DEPOT U.S.A., INC. This instrument was acknowledged before me on the 2002 by , as its day of Notary Public In and For the State of Tax Abatement Agreement - 11 EXHIBIT "A" Economic Development Incentives J. Purpose and Objective The City of Wylie is committed to the promotion of quality development in all parts of the city and to an -ongoing improvement in the quality of life for it's residents. In so far as these objectives are generally served by the enhancement and expansion of th.e local economy. The City of Wylie will, on a case by case basis, give consideration to providing incentives as a stimulation for economic development in Wylie. Nothing herein shall imply or suggest that the City of Wylie is under obligation to provide any incentive to any applicant. All applications shall be considered on a case by case basis. II. Criteria for Economic Development Incentives: The foliawing threshold criteria shall be used to determine whether any Economic Development Incentives shall be granted to new projects: 1.) The proposed project must create at least ten (10) or more jobs by the end of the abatement period. 2.) The proposed project must provide for an invest taxable assets within three (3) years from the commencement of construction. 3.) The project must meet all relevant zoning requirements. 4.) Generally to be eligible, a project must consist of an industrial, commercial, or warehouse use. . In addition to the minimum requirements stated above, the following subjective criteria shall be considered prior to granting any economic development incentive. 5.) Is the project consistent with the comprehensive plan with or of the City of "Yylie? 6.) What types and costs of public improvements and services (sewer main extensions, streets, alleys, etc.) will be required of the City? What types and values of public improvements if any will be made by the applicant? The City of Wylie recognizes the importance of expansion of the existing business as a key. element in the economic development of the City. Therefore/ different criteria for incentive eligibility have been developed for business expansion. In or .' eligible for abatement, an expanding business must meet the following criteria: 1.) The project must create ten (10) or more jobs by the end abatement period. .., 2.) The project must result in an addition of $500,000 in assessed value within the first year of the abatement. 3.) The project must also meet the criteria as stated previously in this section. '. . 1/1. 'Types of Incentives It is the intent of the City of Wylie to evaluate the offering of economic development incentives on a case by case basis. This individualized design of a total incentive package is intended to allow a maximum flexibility in addressing the unique concerns of each applicant while enabling the City to better respond to the changing needs of the community. Below is a chart which reflects the percentage amount to be abated: NEWLY CREATED VALUE MAXIMUM TAX ABATEMENT OVER 5 YEAR PERIOD $3 million + 400% . $2 million - $2,999,999 300% $1 million - $1,999,999 200% EXPANDED VALUE $2.5 million + 400% $1,500,000 - $2,499,999 $500,000 - $1,499,999 300% 200% Abatements may be granted for terms from two to five (2 - 5) years but may be extended to the limits as specified by state law. Abatements of greater than five (5) years may be considered, only if it can be clearly demonstrated that it is economically . beneficial to the City to do so. Abatement periods in excess of five (5) years must be 'approved by a three-quarter vote of the full City Council. The above chart reflects the maximum tax incentive to be eligible for over a period not to exceed five (5) years. No applicant may take a percentage greater than 100% in any given year. For example, the qualified applicant may choose to take the 200% abatement over a ~o (2) year period at 100% each year; or may e.xtend it to 50% each year for four (4) years. The same method would apply to the 300% and 400% abatement. Please 'keep in mihd that the percentages stated ori the right are the maximum amounts. ~ '. IV. Application Procedures Any person applying for Economic Development Incentives will be required to comply with several application procedures. Once the application has been completed, the application will be forwarded to the joint committee on economic development incentives consisting of elected officials from each of the taxing entities. V. Recapture The City of Wylie will have very specific performance standards that will be measured to ensure that the qualified applicant is adhering to the guidelines, as set forth, and the Economic Development Incentive Policy. In the event that the company or individual fails to keep current on aq-valorem or other taxes, or violates the terms and conditions of the abatement agreement in any fashion; the City of Wylie will have the option along with the other taxing entities, to recoup any tax monies that were abated: VI. Assignment The abatement may be transferred and assigned by the holder to a new owner or lessee of the same facility upon approval of the City Council; subject to the financial capacity of the assignee and provided that all conditions and obligations in the' abatement agreement are guaranteed by the execution of a new contractual agreement with the City of Wylie. - VII. Sunset Provisions The guidelines and criteria are affective upon the date of their adoption and will remain in force for two (2) 'years. At which time all reinvestmen~ zones and tax abatement contracts created pursuant to its provisions, will be reviewed by the City Council of Wylie to determine whether the goals of th~ abatement program has been achieved. Based upon that review, the guidelines and criteria may be modified, renewed or eliminated. VIII. Neite In order for Wylie to have a successful Economic Development Incentive Policy,. the City of Wylie must receive cooperation from the other taxing entities, Le., Wylie ISO, Collin County and Collin County Community College District. Should more than one (1) ef'\tity grant tax abatements, it would be my recommendation that a joint comrTlittee on taJS abatement be established consi~ljng of two (2) elected officials from each of the 'taxing l:lnits to review and consider each applicant. ~ EXHmIT "B" PROPERTY DESCRIPTION Lot 3, Block A, The Greenway Addition BEING all that certain lot, tract or parcel of land located in the E. C. Davidson Survey, City of Wylie, Collin County, Texas, and being a portion of that certain called 49.7438 acre tract of land conveyed to John P. Pennington Investments, Inc, according to the deed filed for record in Volume 2893, Page 788 of the Deed Records of Collin County, Texas, and being more particularly described by metes and bounds as follows: BEGINNING at a 1/2 inch iron rod set with a cap stamped "Pate Engrs.", said iron rod being on the Northwesterly right-of-way line of the Atchison, Topeka and Santa Fe Railroad right-of-way (a 150 foot wide right-of-way), said iron rod also being the Southwest corner of that certain tract of land conveyed to Hardcast, Inc, and described as Tract 1 in the deed filed for record in Volume 2646, Page 156, Deed Records, Collin County, Texas; THENCE South 52 deg. 15 min. 30 sec. West, aloflg the Northwesterly right-of-way line of said railroad, a distance of 702.98 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; THENCE North 37 deg. 44 min. 30 sec. West, departing the Northwesterly right-of-way line of said railroad, a distance of 59.26 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; THENCE North 85 deg. 26 min. 00 sec. West, a distance of279.24 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs.", said iron rod being on the East right-of-way line of Westgate Way (a 65 foot wide right-of-way); THENCE North 04 deg. 34 min. 00 sec. East, along the East right-of-way line of said Westgate Way, a distance of339.46 feet, to a 5/8 inch iron rod found with a cap, said iron rod being the beginning ofa curve to the left having a radius of357.50 feet; THENCE continuing along the East right-of-way line of said Westgate Way and in a Northwesterly direction and along said curve to the left having a central angle of 25 deg. 41 min. 15 sec., an arc length of 160.28 feet, said curve also having a long chord which bears North 08 deg. 16 min. 37 sec. West, 158.94 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; THENCE North 64 deg. 33 min. 30 sec. East, departing the East right-of-way line of said Westgate Way, a distance of 41.03 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; Tax Abatement Agreement - 12 THENCE North 32 deg. 00 min. 57 sec. East, a distance of311.54 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; THENCE South 87 deg. 45 min. 43 sec. East, a distance of 155.97 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; THENCE South 57 deg. 59 min. 03 sec. East, a distance of 166.96 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; THENCE South 87 deg. 45 min. 43 sec. East, a distanc.:. of 130.26 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; THENCE South 57 deg. 59 min. 02 sec. East, a distance of 229.90 feet, to a 1/2 inch iron rod set with a cap stamped "Pate Engrs."; THENCE North 02 deg. 22 min. 01 sec. East, a distance of 79.31 feet, to a 5/8 inch iron rod found for the most Westerly Southwest corner of the aforementioned Hardcast, Inc., Tract 1; THENCE South 87 deg. 32 min. 59 sec. East, a distance of 50.32 feet, to a 5/8 inch iron rod found for an ell corner in the West boundary line of said Hardcast, Inc., Tract 1; THENCE South 02 deg. 30 min. 15 sec. West, a distance of 272.02 feet, to the POINT OF BEGINNING and containing 11.5530 acres (503,247 square feet) ofland. Tax Abatement Agreement - 13 THE WYLIE NEWS wvermg Wylie, Sachse, Murphy and the surronnding area 110 N. Ballard 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___~~__~2_~~~~ff~___________________________________________ Chad Engbrock, owner and publisher Subscribed and sworn to before me this the ~ day of ~. witness my hand and seal of office. ,2003 to certify which tJ vc, ~. v( /)~7 MOONE.'( AOA \... Public NoUll'f.. ioJl&$ s_..., 01.02.07 My comm. ta)(fl. Notary The Public State in and of for Texas My Commission expires ?l1-o1-c)? .