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12-06-1994 (City Council) Agenda Packet Agenda Wylie City Council with W. I .S. D. Wylie Municipal Complex December 6, 1994 7:00 p.m. CALL TO ORDER PUBLIC HEARING 1. Hold Public Hearing Related to the Creation of Proposed Reinvestment Zone Number One on a 93 Acre Tract of Land Located at Fm-544 and Sanden Blvd. RE-INVESTMENT ZONE 2. Discuss and Consider Approval of an Ordinance Establishing Reinvestment Zone Number One on a 93 Acre Tract of Land Located at Fm-544 and Sanden Blvd. JOINT MEETING/PUBLIC HEARING 3. Hold Joint Meeting and Public Hearing with Wylie Independent School District Regarding Proposed Tax Abatement Agreement with Sanden International, U.S.A., Inc. ADJOURNMENT OF JOINT MEETING/PUBLIC HEARING CONVENE CITY COUNCIL MEETING TAX ABATEMENT AGREEMENT 4. Discuss and Consider Approval a Resolution Accepting a Proposed Tax Abatement Agreement with Sanden International, U.S.A., Inc. EXECUTIVE SESSION ,I 5. Hold Executive Session Under 551.072 Government Code Regarding the I Acquisition of Park Land 6. Reconvene Into Regular Session and Take Any Necessary Action Resulting from to the Executive Session Adjournment Poste his th 2nd day of December, 1994 at 5:00 p.m. rdlQ tcilshlnq m 'Zane ISSUE The City of Wylie is considering approval of an ordinance establishing reinvestment Zone No. One for commercial/industrial tax abatement. BACKGROUND Sanden International (U.S.A.) has requested tax abatements from the City of Wylie. Background information was prepared for the October 25, 1994 Agenda Communication. The City, serving as lead party in the tax abatement process, must designate the area as a reinvestment zone. FINANCIAL CONSIDERATIONS There are no direct financial considerations associated with the creation of the reinvestment zone. However, the financial considerations related to the tax abatement agreement are outlined with that agenda item. LEGAL CONSIDERATIONS The statutes governing tax abatements are located in Chapter 312 of the Tax Code. The adoption of the Intent to Participate was the first step leading to the formal consideration of a tax abatement agreement. The City Council is being asked to consider creation of a Reinvestment Zone. This zone defines the physical boundaries of the zone which is the property where Sanden is located. The process of designating a zone serves as a tool for the taxing units to designate specific areas for reinvestment and requires any other business desiring a tax abatement to seek approval from each of the taxing units. In its consideration, the City Council must find that the improvements (Sanden's installation of personal property) are feasible and would be of benefit to the zone after the expiration of the tax abatement agreement. City Council must also find that the zone meets one of the applicable criteria for reinvestment zones. Specifically related to Sanden, the criteria met is that the zone is reasonably likely to contribute to the retention or expansion of primary employment and will attract major investment to the area. The designation of the reinvestment zone is accomplished by ordinance passed by majority vote of the City Council (as governing body of lead taxing unit). The designation of the zone lasts for five years and may be renewed for periods not to exceed five years. A tax abatement may continue for up to ten years even if the reinvestment zone is not renewed or its term expires before the end of the term of the abatement. STAFF RECOMMENDATIONS Staff recommends adoption of the ordinance. ATTACHMENT(S) (1) Ordinance Establishing Re-investment Zone (2) Exhibit "A", Legal Description of Proposed Reinvestment Zone (3) October 25, 1994 Agenda Communication. Ad, Sumit ed By Approve y NOTICE OF PUBLIC HEARING The City Council of the City of Wylie will hold a Public Hearing in the Council Chamber of the Wylie Municipal Complex (2000 Hwy. 78 North) on Tuesday, December 6, 1994 to consider creation of Reinvestment Zone No. 1 in accordnace with Article 1066f V.T.C. S . , as amended. Said Reinvestment Zone No. One, commonly referred to as a portion of the Sanden International, U. S .A. , Inc . tract, is fully described as follows : BEING a tract of land out of the Strictland Survey, Abstract No . 341, Collin County, Texas, and being a part of a 153 . 028 acre tract of land conveyed to Nancy Norriss Collie as recorded in Volume 1409, Page 269, Deed Records of Collin County, Texas, and being more particularly described as follows : BEGINNING at a 1/2-inch iron rod found for corner in the South right-of-way line of FM 544 (120 foot R.O.W. ) , same being the Northwest corner of a 50 acre tract of land conveyed to Electro Extraction, Incorporated, a Texas corporation, as recorded in Volume 715, Page 629, Deed Records of Collin County, Texas; THENCE, South 00 degrees 03 minutes 23 seconds West, leaving said South right-of-way line of fm 544 and along the west line of said Electro Extraction, Inc. tract, a distance of 2036. 18 feet to a 1/2-inch iron pipe found by a stone marker for corner in the North right-of-way line of C.C. & S . F. Railroad (variable R.O.W. ) (75 foot from centerline at this point) , same being the Southwest corner of said Electro Extraction, Inc. tract; THENCE, South 52 degrees 16 minutes 00 seconds West, along said North right-of-way line of the C .C. & S . F. Railroad and the south line of the above mentioned 158 . 028 acre tract, a distance of 2005 . 56 feet to a 1/2 inch iron rod found for corner marking the East line of a tract of land conveyed to James H. Hale recorded in Volume 754, Page 514, Deed Records of Collin County, Texas, as occupied on the ground; THENCE, North 01 degrees 52 minutes 56 seconds East, leaving said north right-of-way line of the C.C. & S . F. Railroad, and with a barbed wire fence marking the said East Line of said J.H. Hale tract as occupied on the ground for distance of 1159 . 50 feet to a 1/2 inch iron rod set corner on the West line of aforesaid 158 . 028 acre tract; THENCE, North 83 degrees 04 minutes 49 seconds West, with a barbed wire fence marking the North side of said J.H. Hale tract as occupied on the ground for a distance of 22 . 72 to a 1/2-inch iron rod set for the corner on the West line of aforementioned 158 . 028 acre tract; THENCE, North 01 degrees 11 minutes 58 seconds, East, with the West line of said 158 . 028 acres acre tract, - distance of 86 . 48 feet to a 1-inch iron rod set in the corner of the dirt road; THENCE, North 04 degrees 17 minutes 26 seconds East, along the centerline of said dirt road, a distance of 882 . 51 feet to a 1-inch iron rod set for the corner in the center of the dirt road; THENCE, North 05 degrees 14 minutes 51 seconds East, continuing along the center of said dirt road, a distance of 339 . 65 feet to a 1-inch iron rod set for corner in the center of said dirt road; THENCE, North 03 degrees 40 minutes 25 seconds East, continuing along the centerline of said dirt road, a distance of 240 . 87 feet to 1-inch iron rod set for the corner in the center of said dirt road; THENCE, North 03 degrees 58 minutes 59 seconds West, continuing along the centerline of said dirt road for a distance of 674 . 69 feet to a 1-inch iron rod set for corner in the center of said dirt road in the South right-of-way line of said FM 544 (variable right- of-way at this point) ; THENCE, South 76 degrees 48 minutes 50 seconds East, along said South line of FM 544, a distance of 17 . 97 feet to a concrete monument found for corner at the south end of a corner clip; THENCE, North 50 degrees 50 minutes 44 seconds East, along the said corner clip of FM 544 and along a fence, a distance of 67 . 27 feet to a concrete monument found for corner in the South right-of-way line (120 foot R.O.W. ) of said Fm 544, same being a point in a curve to the left having a central angle of 09 degrees 38 minutes 57 seconds, a radius of 5789 . 58 feet, a tangent distance of 488 . 67 feet, and chord bearing and distance of South 82 degrees 34 minutes 41 seconds East, 973 . 87 feet; THENCE, southeasterly, along said South Right-of-Way line of FM 544 and with said curve to the left, an arc distance of 975 . 02 feet to a concrete monument found for corner at the end of said curve to the left; THENCE, South 87 degrees 24 minutes 10 seconds East, continuing along the said South right-of-way line of FM 544, a distance of 466.25 feet to the POINT OF BEGINNING and containing 4, 094, 565 square feet or 93 . 998 acres of land, more or less . City of Wylie, Texas To be published: November 22, 1994 r _RimmmisommininiminimmilmaimmaimilWylle City Council Agenda Communication for October 25, 1994 # 9 Tax Abatement Agreement with Sanden, U.S.A. ISSUE The purpose of this item is to consider a resolution establishing the intent of the City of Wylie to enter into a tax abatement agreement by and between the City of Wylie, Texas, the Wylie Independent School District (WISD), the County of Collin, the Collin County Community College District and Sanden International (U.S.A.), Inc.; and authorizing the City Manager to negotiate on behalf of the City of Wylie,the terms and conditions of a tax abatement agreement, consistent with adopted guidelines, for submittal of said agreement for full review and consideration by the City Council. BACKGROUND The City of Wylie received a letter, dated September 15, 1994, from the Sanden International (U.S.A.), Inc. The letter served to formally request assistance in obtaining the appropriate tax abatements from the City of Wylie. A copy of the letter is included as an attachment. The parts localization and increased production projects planned for the Wylie facility invclve approximately $40 million in capital equipment investment as well as an additional 360 employees. The City Manager has been meeting with Sanden officials over the last several months to discuss these plans. Sanden's expansion plans will have a tremendous economic impact on the city's tax base,and will provide additional employment opportunities for the city and surrounding area. In addition to these economic benefits, Sanden has proven to be an ideal corporate citizen. Many of it's employees are actively involved in a host of business, civic and education related activities throughout the City of Wylie. The City Manager will begin negotiations with Sanden to establish the specific terms and conditions of the tax abatement agreement. Established as the "lead taxing entity", discussions have taken place with the other taxing units to establish a timeline of actions that are required to be taken by each governing body. FINANCIAL CONSIDERATIONS Terms and conditions of the agreement have not been negotiated. Therefore,no specific financial considerations can be presented. Sanden's appraised value currently is approximately $52 million. )esuEe- 466E-Aib ( ES a iv-ri IQ 0 e N '- FINANCIAL CONSIDERATIONS Terms and conditions of the agreement have not been negotiated. Therefore,no specific financial considerations can be presented. Sanden's appraised value currently is approximately$52 million. The addition of 360 new employees will increase the total work force to over 750. Consistent with the City of Wylie's adopted guidelines, Sanden would be eligible for the maximum tax abatement, over a period of five years, of 400%. Each taxing unit that chooses to participate,must approve the identical terms and conditions. The Wylie Independent School District has informed the City that it can not participate in any agreement that exceeds a 33% abatement, per year. Doing so would result in the WISD losing state funding. LEGAL CONSIDERATIONS The statutes governing tax abatements are located in Chapter 312 of the Tax Code. The adoption of the Intent to Participate is the first step leading to the formal consideration of a tax abatement agreement. This action does not bind the City Council to approve an agreement. During November, City Council will be asked to consider creation of an Reinvestment Zone. In December, City Council will be asked to formally consider approval of the Tax Abatement agreement. Descriptions of these actions will be provided in corresponding Council Communications. BOARD/COMMISSION RECOMMENDATIONS N/A STAFF RECOMMENDATIONS Staff recommends adoption of the resolution. ATTACHMENT(S) Letter to the City Manager from Sanden, dated September 15, 1994, Resolution --TrYtLk_ t A Submitted By Approved By ISSUE The purpose of this item is to consider a resolution approving the terms and conditions of an agreement by and between the City of Wylie, the Wylie Independent School District, the County of Collin, the Collin County Community College District and Sanden International(U.S.A.), establishing a reinvestment zone in the City of Wylie, and providing for a commercial/industrial abatement for Sanden International (U.S.A.), Inc. BACKGROUND The City of Wylie received a letter, dated September 15, 1994, from the Sanden International (U.S.A.), Inc. The letter served to formally request assistance in obtaining the appropriate tax abatements from the City of Wylie. The parts localization and increased production projects planned for the Wylie facility were originally estimated at approximately$40 million in capital equipment investment. City Council approval on October 23 of a Resolution of Intent to participate in an agreement with Sanden authorized the City Manager to begin negotiations on the specific terms and conditions of a Tax Abatement Agreement (Agreement). The amount of investment committed to by Sanden in the Agreement is a total of$30 million. The Agreement provides for a 33% abatement each year for six years on the appraised value of the personal property expansion as follows: 1st Year $24 million 4th Year $30 million 2nd Year $30 million 5th Year $30 million 3rd Year $30 million 6th Year $6 million The first year abatement is based on the personal property expansion expected to be completed by December 31, 1994 and subsequent years are based on total estimated personal property expansion expected to be completed by December 31, 1995. The sixth year partial abatement of$6 million combined with the first year partial abatement of$24 million satisfies Sanden's request to receive five years of abatement for it's full investment, although the abatement is spread over a six year period. The other major deal point is the Agreement requires the personal property expansion to "remain on the premises a minimum of eight (8) years, or unless it is abandoned". The "abandonment" clause was requested by the Sanden. This allows the company the flexibility of replacing a piece of machinery that has become technologically obsolete, rather than keeping it on the premises just because the Agreement says so. The depreciation schedule on the personal property is seven (7) years. The full $30 million investment will not be on the premises before December 31, 1994. Therefore, the concept of a two tier installation was developed. The "Primary Installation" of$24 million in personal capital equipment will occur before December 31, 1994 and the "Secondary Installation" of$6 million will occur before December 31, 1995. FINANCIAL CONSIDERATIONS See Attachment "B" for specific fiscal impacts. LEGAL CONSIDERATIONS The statutes governing tax abatements are located in Chapter 312 of the Tax Code. In Octonber, the Council approved a resolution of the Intent to Participate. This was the first step leading to the formal consideration of a tax abatement agreement. We are now prepared to consider the formal agreement. Neither the former resolution nor the ordinance creating the zone bind the City Council to approve the agreement. STAFF RECOMMENDATIONS Staff recommends adoption of the resolution. ATTACHMENT(S) (1) Letter to the City Manager from Sanden, dated September 15, 1994. (2) Fiscal Impact Charts (3) Proposed Tax Abatement Agreement (4) Resolution Submittetl By Approved By RESOLUTION NO. A RESOLUTION OF THE CITY OF WYLIE, TEXAS, APPROVING THE TERMS AND CONDITIONS OF AN AGREEMENT BY AND BETWEEN THE CITY OF WYLIE, TEXAS, THE WYLIE INDEPENDENT SCHOOL DISTRICT, THE COUNTY OF COLLIN, THE COLLIN COUNTY COMMUNITY COLLEGE DISTRICT AND SANDEN INTERNATIONAL (USA), INC. (SANDEN), ESTABLISHING A REINVESTMENT ZONE IN THE CITY OF WYLIE, TEXAS, AND PROVIDING FOR A COMMERCIAL/INDUSTRIAL ABATEMENT FOR SANDEN INTERNATIONAL(USA),INC.,AND AUTHORIZING ITS EXECUTION BY THE CITY MANAGERYtND PROVIDING AN EFFECTIVE DATE. WHEREAS,the City Council has been presented a proposed Agreement by and between the City of Wylie, Texas, the Wylie Independent School District, the County of Collin, the Collin County Community College District and Sanden International (U.S.A.), Inc. (Sanden), establishing a Reinvestment Zone in the City of Wylie, Texas, and providing for a commercial/industrial tax abatement for Sanden, a copy of which is attached as Exhibit "A" ("Agreement"); and WHEREAS,upon full review and consideration of the Agreement, the City Council is of the opinion that the terms and conditions of the Agreement should be approved, and that the City Manager, shall be authorized to execute it on behalf of the City of Wylie; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. The Terms and Conditions of the Agreement having been reviewed by the City Council of the City of Wylie and found to be acceptable and in the best interests of the City of Wylie and its citizens, are hereby in all things approved. SECTION 2. The City Manager is hereby authorized to execute the Agreement and all other documents in connection therewith on behalf of the City of Wylie, substantially according to the terms and conditions set forth in the Agreement. DULY RESOLVED ON THIS THE 6TH day of-NO E B R, 1994 APPROVED ATTEST THE STATE OF TEXAS ) COUNTY OF COLLIN ) AGREEMENT This Agreement is entered into, effective as of January 2, 1994, by and between the City of Wylie, Texas, a home rule city and Municipal Corporation of Collin County, Texas, duly acting herein by and through its City Manager, the "CITY"; the Wylie Independent School District, duly acting herein by and through its Superintendent; the County of Collin, Texas, duly acting herein by and through its County Judge, and the Collin County Community College District of Collin County, Texas, duly acting herein by and through its President of the Board of Trustees, collectively the "TAXING UNITS", and Sanden International (U.S.A.), Inc., duly acting by and through its Executive Vice President and Chief Operating Officer, the "OWNER". WITNESSETH: WHEREAS, the City Council of the City of Wylie, Texas, passed Ordinance No. establishing Reinvestment Zone No. 1, City of Wylie, Texas for commercial/industrial tax abatement, the "ORDINANCE", as authorized by V.T.C.A. Tax Code, Chapter 312, the "STATUTE"; and WHEREAS, the CITY has adopted a revised Policy Statement for Tax Abatement by Resolution No. 93-11 stating that it elects to be eligible to participate in tax abatement (the "POLICY STATEMENT"); and Agreement 3 City - Taxing Units - Sanden International (U.S.A.), Inc. WHEREAS, the POLICY STATEMENT constitutes appropriate guidelines and criteria governing tax abatement agreements to be entered into by the CITY as contemplated by the STATUTE; and WHEREAS, in order to maintain and/or enhance the commercial/industrial economic and employment base of the Wylie area for the long term interest and benefit of the CITY and TAXING UNITS, in accordance with said ORDINANCE and STATUTE; and WHEREAS, the PERSONAL PROPERTY to be located on the PREMISES, as those terms are hereinafter defined, in the amount as set forth in this Agreement and the other terms hereof are consistent with encouraging development of said Reinvestment Zone No. 1 in accordance with the purposes for its creation and are in compliance with the intent of the POLICY STATEMENT and the ORDINANCE and similar guidelines and criteria adopted by the CITY and other TAXING UNITS and all applicable laws. NOW THEREFORE, the parties hereto do mutually agree as follows: 1 . The PERSONAL PROPERTY to be the subject of this Agreement shall be situated on that property described by metes and bounds attached hereto as EXHIBIT A and made a part hereof, the "PREMISES". For purposes of this Agreement, PERSONAL PROPERTY shall mean those items set forth in Exhibit "B". 2. The OWNER will install PERSONAL PROPERTY, on the PREMISES in an amount determined by the Collin County Appraisal District of not less than 24 million dollars ($24,000,000) on or before December 31, 1994, representing the "Primary Installation" and an additional installation of personal property in an amount determined by the Collin County Appraisal District of not less than 6 million dollars ($6,000,000) on or before December 31, 1995, representing the "Secondary Installation", for a total installation of personal property whose value as determined by the Collin County Appraisal District is an amount of not less than 30 million dollars ($30,000,000); provided, that OWNER shall have such additional time to complete the installation as Agreement 4 City - Taxing Units - Sanden International (U.S.A.), Inc. may be required if (i) OWNER is delayed or prohibited from completing either installation in the event of "force majeure" or (ii) if in the sole opinion of the CITY, the OWNER has made substantial progress toward completion of the installation. For purposes of this Agreement, "force majeure" shall mean any contingency or cause beyond the reasonable control of OWNER including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of OWNER), fire, explosion or flood, and strikes. 3. OWNER covenants and agrees that all installations will be in accordance with all applicable state and local laws and regulations or valid waiver thereof. In further consideration, OWNER will thereafter, from the date of this Agreement, unless it is abandoned, continuously keep and maintain the PERSONAL PROPERTY, or any replacements required, on the PREMISES and tax rolls of the CITY and TAXING UNITS for a period of eight (8) years, beginning January 1, 1996 and ending December 31, 2003 and for the following described purposes: The research, development, design, and manufacturing, assembly and distribution of automobile air conditioning compressors and turbo rotary compressors, and related parts and systems. 4. In the event that (1) the Primary and/or Secondary Installation is not completed in accordance with this Agreement; or (2) OWNER allows its ad valorem taxes owed the CITY and TAXING UNITS for the PREMISES to become delinquent and fails to timely and properly follow the legal procedures for protest and/or contest of any such ad valorem taxes; or (3) the initial value of the PRIMARY AND SECONDARY INSTALLATIONS subject to ad valorem taxes as certified by the Central Appraisal District (including any adjustment resulting in a protest) is less than the value referenced in Section 3 of this Agreement; or (4) OWNER fails to keep the PERSONAL PROPERTY (or any replacements required) for which the abatement is granted on the PREMISES and TAX ROLLS of the CITY and TAXING UNITS for a period of eight (8) years, beginning January 1, 1996 and ending December 31, 2003, or unless it is abandoned; or (5) Agreement 5 City - Taxing Units - Sanden International (U.S.A.), Inc. OWNER breaches any of the material terms or conditions of this Agreement; then this Agreement shall be in default. In the event that the OWNER defaults in its performance of (1), (2), (3), (4,), or (5), then the CITY or TAXING UNITS shall give the OWNER written notice of such default and if the OWNER has not cured such default, or obtained a waiver thereof from the appropriate authority, within thirty (30) days of said written notice, this Agreement may be terminated by the CITY or TAXING UNITS. As liquidated damages in the event of default, all taxes which otherwise would have been paid to the CITY and TAXING UNITS without the benefit of abatement (but without the addition of penalty; interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Property Tax Code of the State of Texas) will become a debt to the CITY and TAXING UNITS and shall be due, owing and paid to the CITY and TAXING UNITS within sixty (60) days of the expiration of the above mentioned applicable cure period as the sole remedy of the CITY and TAXING UNITS. The parties acknowledge that actual damages in the event of default and termination would be speculative and difficult to determine. 5. The CITY and the TAXING UNITS each represent and warrant that the PERSONAL PROPERTY does not include any property that is owned by a member of their respective councils or boards, agencies, commissions, or other governmental bodies approving, or having responsibility for the approval of this Agreement. 6. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. This Agreement cannot be assigned by OWNER unless written permission is first granted by the CITY and TAXING UNITS, which permission shall be at the sole discretion of the CITY and TAXING UNITS, except that an assignment to a wholly-owned subsidiary of OWNER, is permissible; however, OWNER agrees to give written notice to the CITY and TAXING UNITS of any such assignment within thirty (30) days of such assignment. Agreement 6 City - Taxing Units - Sanden International (U.S.A.), Inc. 7. The OWNER further agrees that the CITY and TAXING UNITS, their agents and employees, shall have reasonable right of access, upon reasonable notice, to the PREMISES to inspect the installation in order to insure that the PERSONAL PROPERTY located on the PREMISES is in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After any installation, the CITY and TAXING UNITS shall have the continuing right, subject to OWNER'S reasonable security requirements and upon reasonable notice, to inspect during normal business hours the PERSONAL PROPERTY to insure that the PERSONAL PROPERTY is thereafter maintained and kept on the PREMISES in accordance with this Agreement. 8. Subject to the terms and conditions of this Agreement, and subject to the rights of holders of any bonds of the CITY and TAXING UNITS outstanding as of the date of this Agreement, a portion of ad valorem property taxes from the Primary and Secondary Installations located on the PREMISES otherwise owed to the CITY and TAXING UNITS will be abated. Fot the first (1st) year, said abatement shall be in an amount equal to 33 percent (33%) of the taxes assessed upon the value of the Primary Installation; for the second (2nd), third (3rd), fourth (4th), and fifth (5th) years, the abatement will be in an amount equal to 33 percent (33%) of the taxes assessed upon the value of the Primary Installation and Secondary Installation; for the sixth (6th) year, the abatement will be in an amount equal to 33 percent (33%) of the taxes asssessed upon the value of the Secondary Installation; provided that the OWNER shall have the right to protest and/or contest any assessment of the PERSONAL PROPERTY and said abatement shall be applied to the amount of taxes finally determined to be due as a result of any such protest and/or contest. The abatement will extend for a period of six (6) years beginning January 1, 1995 and ending December 31, 2000. 9. Notices required to be given to any party to this Agreement shall be given personally or by registered or certified mail, return receipt requested, postage prepaid, addressed to the party at its address as set forth below, and, if given by mail, shall be Agreement 7 City - Taxing Units - Sanden International (U.S.A.), Inc. deemed delivered as of the date deposited in the United States mail: For CITY by notice to: City of Wylie Attention: Steven P. Norwood City Manager P.O. Box 428 Wylie, Texas 75098 with copy to: Abernathy, Roeder, Robertson & Joplin Attention: Richard Abernathy P.O. Box 1210 McKinney, Texas 75069-1210 For TAXING UNITS by notice to: Wylie Independent School District Attention: Dr. H. John Fuller Superintendent P.O. Box 490 Wylie, Texas 75098-0490 Collin County, Texas Attention: Ron Harris County Judge Collin County Commissioners Court 210 S. McDonald McKinney, Texas 75069 Collin County Community College District of Collin County, Texas Attention: John Anthony President of Board of Trustees 2200 West University McKinney, Texas 75069 Agreement 8 City - Taxing Units - Sanden International (U.S.A.), Inc. For OWNER by notice to: Sanden International (U.S.A.), Inc. Attention: Tom Schooley Executive Vice President Chief Operating Officer 601 South Sanden Blvd. Wylie, Texas 75098 with copy to: Sanden International (U.S.A.), Inc. Attention: Rod Taylor General Manager Human Resources 601 South Sanden Blvd. Wylie, Texas 75098 Any party may change the address to which notices are to be sent by giving the other parties written notice in the manner provided in this paragraph. 10. This Agreement was authorized by Resolution of the City Council at its Council meeting on the 6th day of December, authorizing the City Manager to execute the Agreement on behalf of the City. 11 . This Agreement was authorized by Resolution of the Board of Trustees of the Wylie Independent School District at a meeting on the 6th day of December, whereupon it was duly determined that Superintendent would execute the Agreement on behalf of the Wylie Independent School District. 12. This Agreement was authorized by the minutes of the Commissioners Court of Collin County, Texas, at its meeting on the 12th day of December, 1994, whereupon it was duly determined that the County Judge would execute the Agreement on behalf of Collin County. 13. This Agreement was authorized by the Board Minutes of the Board of Agreement 9 City - Taxing Units - Sanden International (U.S.A.), Inc. Trustees of Collin County Community College District at its Board Meeting on the 12th day of December, 1994, whereupon it was duly determined that the President would execute the Agreement on behalf of Collin County Community College District. 14. This Agreement was entered into by Sanden International (U.S.A.), Inc. pursuant to authority granted by its Board of Directors, whereby the Executive Vice President and Chief Operating Officer was authorized to execute this Agreement on behalf of Sanden International (U.S.A.), Inc. 15. This shall constitute a valid and binding Agreement between the CITY and Sanden International (U.S.A.), Inc. when executed in accordance herewith, regardless of whether any or other TAXING UNIT executes this Agreement. This shall constitute a valid and binding Agreement between such TAXING UNIT and Sanden International (U.S.A.), Inc. when executed on behalf of said parties, for the abatement of such TAXING UNIT's taxes in accordance herewith. This Agreement is performable in Collin County, Texas, witness our hands this day of , 19 ATTEST: CITY OF WYLIE, TEXAS Mary Nichols, CITY SECRETARY Steven P. Norwood CITY MANAGER APPROVED AS TO FORM: Richard Abernathy, CITY ATTORNEY Agreement 10 City - Taxing Units - Sanden International (U.S.A.), Inc. ATTEST: BOARD OF TRUSTEES OF WYLIE INDEPENDENT SCHOOL DISTRICT Dr. H. John Fuller SUPERINTENDENT APPROVED AS TO FORM: ATTORNEY FOR WYLIE INDEPENDENT SCHOOL DISTRICT ATTEST: COMMISSIONERS COURT OF COLLIN COUNTY COUNTY JUDGE APPROVED AS TO FORM: ATTORNEY FOR COLLIN COUNTY ATTEST: COLLIN COUNTY COMMUNITY COLLEGE DISTRICT PRESIDENT APPROVED AS TO FORM: ATTORNEY FOR COLLIN COUNTY COMMUNITY COLLEGE DISTRICT Agreement 11 City - Taxing Units - Sanden International (U.S.A.), Inc. ATTEST: SANDEN INTERNATIONAL (U.S.A.), INC. Tom Schooley EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER Agreement 12 City - Taxing Units - Sanden International (U.S.A.), Inc. EXHIBIT 'A' Legal Description Reinvestment Zone No. Agreement 13 City - Taxing Units - Sanden International (U.S.A.), Inc. LEGAL DESCRIPTION OF WYLIE SITE Being a tract of land out of the Duke Strickland Survey, Abstract No . 341, Collin County, Texas, and being a part of a 153 . 028 acre tract of land conveyed to Nancy Morriss Collie as recorded in Volume 1409, Page 269, Deed Records of Collin County, Texas, and being more particularly described as follows : BEGINNING at a 1/2-inch iron rod found for corner in the South right-of-way line of FM 544 (120 foot R.O.W. ) , same being the Northwest corner of a 60 acre tract of land conveyed to Electro Extraction, Incorporated, a Texas corporation, as recorded in Volume 715, Page 629, Deed Records of Collin County, Texas; THENCE, South 00 degrees 03 minutes 23 seconds West, leaving said South right-of-way line of FM 544 and along the West line of said Electro Extraction, Inc. tract, a distance of 2036 . 18 feet to a 1/2-inch iron pipe found by a stone marker for corner in the North right-of-way line of C.C. & S . F. Railroad (variable R.O.W. ) (75 foot from centerline at this point) , same being the Southwest corner of said Electro Extraction, Inc. tract; THENCE, South 52 degrees 16 minutes 00 seconds West, along said North right-of-way line of the C.C. & S . F. Railroad and the South line of the above mentioned 158 . 028 acre tract, a distance of 2005. 56 feet to a 1/2 inch iron rod found for corner marking the East line of a tract of land conveyed to James H. Hale recorded in Volume 754, Page 514, Deed Records of Collin County, Texas, as occupied on the ground; THENCE, North 01 degrees 52 minutes 56 seconds East, leaving said North right-of-way line of the C.C. & S . F. Railroad, and with a barbed wire fence marking the said East Line of said J.H. Hale tract as occupied on the ground for a distance of 1159 . 50 feet to a 1/2 inch iron rod found for corner at a fence corner; THENCE, North 83 degrees 04 minutes 49 seconds West, with a barbed wire fence marking the North line of said J.H. Hale tract as occupied on the ground for a distance of 22 . 72 to a 1/2-inch iron rod set for corner on the West line of aforementioned 158 . 028 acre tract; THENCE, North 01 degrees 11 minutes 58 seconds, East, with the West line of said 158 . 028 acre tract, - distance of 86 . 48 feet to a 1-inch iron rod set for corner in the center of a dirt road; THENCE, North 04 degrees 17 minutes 26 seconds East, along the centerline of said dirt road, a distance of 882 . 51 feet to a 1-inch iron rod set for the corner in the center of said dirt road; THENCE, North 05 degrees 14 minutes 51 seconds East, continuing along the center line of said dirt road, a distance of 339 . 65 feet to a 1-inch iron rod set for corner in the center of said dirt road; THENCE, North 03 degrees 40 minutes 25 seconds East, continuing along the centerline of said dirt road, a distance of 240 . 87 feet to 1-inch iron rod set for the corner in the center of said dirt road; THENCE, North 03 degrees 58 minutes 59 seconds West, continuing along the centerline of said dirt road for a distance of 674 . 69 feet to a 1-inch iron rod set for corner in the center of said dirt road in the South right-of-way line of said FM 544 (variable R.O.W. at this point) ; THENCE, South 76 degrees 48 minutes 50 seconds East, along said South line of FM 544, a distance of 17 . 97 feet to a concrete monument found for corner at the South end of a corner clip; THENCE, North 56 degrees 50 minutes 44 seconds East, along the said corner clip of FM 544 and along a fence, a distance of 67 . 27 feet to a concrete monument found for corner in the South right-of-way line (120 foot R.O.W. ) of said FM 544, same being a point in a curve to the left having a central angle of 09 degrees 38 minutes 57 seconds, a radius of 5789. 58 feet, a tangent distance of 488 . 67 feet, and a chord bearing and distance of South 82 degrees 34 minutes 41 seconds East, 973 . 87 feet; THENCE, Southeasterly, along said South right-of-way line of FM 544 and with said curve to the left, an arc distance of 975 . 02 feet to a concrete monument found for corner at the end of said curve to the left; THENCE, South 87 degrees 24 minutes 10 seconds East, continuing along the said South right-of-way line of FM 544, a distance of 466 . 25 feet to the POINT OF BEGINNING and containing 4, 094, 565 square feet or 93 . 998 acres of land, more or less . EXHIBIT 'B' PERSONAL PROPERTY (A DETAILED DESCRIPTION IS FORTHCOMING) A. Primary Installation B. Secondary Installation Agreement 14 City - Taxing Units - Sanden International (U.S.A.), Inc. • S DEN SANDEN INTERNATIONAL (U.S.A.), INC. 601 SOUTH SANDEN BLVD.,WYLIE,TX 75098-4999 TEL.NO.(214)442-8400 TELEX 212306(SANDEN DAL) I ' September 15, 1994 Mr. Steve Norwood City Manager P.O. Box 428 ' Wylie, Texas 75098 Dear Mr. Norwood: ' We would like to thank you for meeting with us over the last few months to discuss our upcoming parts localization and increased production projects for the Wylie facility. We recently received authorization form our Headquarters to issue the press releases on the projects. As you are aware these plans ■ will involve approximately $40 million in capital equipment ■ investment as well as an additional 360 employees in our Wylie facility. We would like to officially request your assistance in obtaining the appropriate tax abatements from the City of Wylie to aid Sanden in accomplishing these very important projects. Please feel free to contact us regarding any questions or and additional information that you may require. ' Best regards, SANDEN INTERNATIONAL (USA) , INC. 61/7,4/7/,4 4%/. 4.417 Tom Schooley Rod Tayl r Exec. V.P./COO7 Gen.Mgr. Human Resource 1 rt-0338 ..... ... •.n C•ire Tn ens CM ITU C•►unch,tit Ufl WV,it TY 751162A-4 Q4 Tax Abatement Request Sanden ❑ $30 million expansion (personal property) ❑ Effective date - - January 2, 1995 ❑ Additional tax generated based on $0.635/$100 valuation $1.55/School $0.260/County $0.098/College Year 1 - - $24M City School County College 100 % collected $152,400 $372,000 $62,400 $29,400 33% abatement 50,800 124,000 20,800 9,800 66% collected 101,600 248,000 41,600 19,600 Years 2-5 - - $3OM 100% collected $190,500 $465,000 $78,000 $29,400 33% abatement 63,500 155,000 26,000 9,600 66% collected 127,000 310,000 54,000 19,600 Abatement RequestTax Sanden (continued) ❑ $30 million expansion (personal property) ❑ Effective date - - January 2, 1995 ❑ Additional tax generated based on $0.635/$100 valuation $1.55/School $0.260/County $0.098/College Year 6 - - $6M C _N School County College 100 % collected $38,100 $93,000 $15,600 $5,880 33% abatement 12,700 31,000 5,200 1,960 66% collected 25,400 62,000 10,400 3,920 Six Year - Total 100% collected $952,500 $2,625,000 $390,000 $147,000 33% abatement 317,500 775,000 130,000 49,000 66% collected 635,000 1,550,000 260,000 98,000 Total Abatement - All Entities $1,271,500