RE 12-12-95.3 A RESOLUTION OF THE CITY OF COPPELL, TEXAS
RESOLUTION NO. 121295.3
A RESOLUTION OF THE CITY OF COPPELL, TEXAS, APPROVING THE
TERMS AND CONDITIONS OF A TAX ABATEMENT AGREEMENT BY AND BETWEEN
THE CITY OF COPPELL, TEXAS, AND MEPC QUORUM PROPERTIES II, INC. FOR
THE PROPERTY DESIGNATED AS TAX ABATEMENT REINVESTMENT ZONE NO. 8;
AUTHORIZING ITS EXECUTION BY THE MAYOR; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City Council has been presented a proposed Tax Abatement
Agreement by and between the City of Coppell, Texas, and MEPC Quorum Properties II,
Inc., a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference;
and
WHEREAS, upon full review and consideration of the proposed Agreement, and all
matters attendant and related thereto, the City Council is of the opinion and finds that a
Tax Abatement Agreement substantially meeting the terms and conditions hereof should be
approved, and that the Mayor should be authorized to execute such Agreement on behalf
of the City of Coppell, Texas;
NOW~ THEREFORE~ BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS, that:
1. The City Council finds that the improvements proposed to be built upon the
Premises described in the Agreement will enhance the economic vitality of the
community through a combination of new capital investment, increased sales
tax revenues, and the creation of additional job opportunities.
2. The tax abatement to be granted by the Agreement will not include
inventories and supplies.
3. The improvements proposed for the Premises will accomplish the tax
abatement guidelines of the City of Coppell, Texas.
4. The City Manager delivered to the presiding officer of the governing body of
each taxing unit in which the property subject to the Tax Abatement
Agreement is located, a written notice that the City of Coppell, Texas, intends
to enter into the Agreement. The notice given by the City Manager included
a copy of Tax Abatement Agreement which is substantially meeting the terms
and conditions of the Tax Abatement Agreement approved by this Resolution.
5. This Resolution and a Tax Abatement Agreement substantially meeting the
terms and conditions of the Tax Abatement Agreement attached hereto are
hereby approved by the affirmative vote of the majority of the members of the
City Council of the City of Coppell, Texas, at a regularly scheduled meeting
of the City Council.
6. This Resolution shall become effective immediately from and after its
passage, provided that the Mayor is authorized to execute a Tax Abatement
Agreement substantially meeting the terms and conditions of the Tax
Abatement Agreement attached hereto. After execution by all parties, the
Tax Abatement Agreement shall be effective for the tax year 1997 and
following for the term thereof.
DULY RESOLVED AND ADOPTED by the City Council of the City of Coppell,
Texas, on this the 12th day of December, 1995.
CITY OF COPPELL, TEXAS
TOM MORTON, MAYOR
ATI'EST:
LIIX~DA ORAU, CITY
SECRETARY
APPROVED AS TO FORM:
PETER G. SMITI~ CITY ATTORNEY
(PGS/jcm 12-04-95)
AGG07A52
STATE OF TEXAS §
§ TAX ABATEMENT AGREEMENT
COUNTY OF DALLAS §
This Tax Abatement Agreement (the "Agreement") is entered into by and between
the City of Coppell, Texas (the "City"), a home role city and municipal corporation of Dallas
County, Texas, duly acting herein by and through its Mayor, and MEPC Quorum Properties
II, Inc. ("MEPC"), a Delaware corporation, acting by and through its authorized officer.
WITNESSETH:
WHEREAS, on the 12th day of December, 1995, the City Council of the City of
Coppell, Texas, (the "City"), passed an Ordinance (the "Ordinance") establishing Tax
Abatement Reinvestment Zone No. 8 (the "Zone"), for commercial/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, on the 12th day of December, 1995, the City adopted an amended
guidelines for tax abatement (the "Tax Abatement Guidelines") attached hereto as Exhibit
"A" and made a part hereof for all purposes; 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 commercial and industrial
economic and employment base of the Coppell area, it is in the best interests of the
taxpayers for the City to enter into this Agreement in accordance with said Ordinance, the
Tax Abatement Guidelines and the Tax Code; and
WHEREAS, MEPC's expansion efforts described herein will create permanent new
jobs in the City; and
WHEREAS, the City Council finds that the contemplated use of the Premises
(hereinafter defined), the contemplated improvements to the Premises in the amount set
forth in this Agreement, and the other terms hereof are consistent with encouraging
development of the Zone in accordance with the purposes for its creation and/or in
compliance with the Tax Abatement Guidelines, the Ordinance adopted by the City, the Tax
Code and all other applicable laws; and
WItEREAS, the City Council 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 expiration of this Agreement; and
WHEREAS, a copy of this Agreement has been furnished, in the manner prescribed
by the Code, to the presiding officers of the governing bodies of each of the taxing units in
which the premises to be subject to this Agreement is located; and
WHEREAS, the City desires to enter into an agreement with the MEPC, the owner
of property within the Tax Abatement Reinvestment Zone No. 8 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 prima~y employment, the attraction of
major investment in the Zone, which contributes to the economic development of Coppell
and the enhancement of the tax base in the City, the parties agree as follows:
GENERAL PROVISIONS
1. MEPC is the owner of that real property described in Exhibit "B" attached
hereto and made a part hereof for all purposes (the "Premises"), which Premises are located
within the city limits of the City and within the Zone.
2. The Premises are not in an improvement project financed by tax increment
bonds.
3. This Agreement is entered into subject to the rights of the holders of
outstanding bonds of the City.
4. The Premises are not owned or leased by any member of the Coppell City
Council or any member of the Coppell Planning and Zoning Commission, or any member
of the governing body of any taxing units joining in or adopting this Agreement.
TAX ABATEMENT AUTHORIZED
5. This Agreement is authorized by the Texas Property Redevelopment and Tax
Abatement Act of the Texas Tax Code, Chapter 312, and in accordance with the City Tax
Abatement Guidelines and Criteria, and approved by resolution of the City Council of the
City authorizing the execution of this Agreement.
Tax Abatement Agreement - Page 2 AGG07A55
6. Assuming an investment of at least $3 million in taxable assets, and subject
to the terms and conditions of this Agreement, the City hereby grants MEPC an abatement
of ad valorem taxation on real and/or personal property of seventy-five percent (75%) for
a period of five (5) years. The actual percentage of taxes subject to abatement for each year
of this Agreement will apply only to the portion of the taxable value of the real property
and of the tangible personal property located on the real property, that exceeds that
property's taxable value for the year in which this Agreement is executed (base year/1995).
The tax abatement for tangible personal property may only apply to the personal property
added to the real property after this Agreement is executed. Taxable value of property for
each year of abatement less base year taxable value = excess taxable value subject to
abatement % above.
7. The period of tax abatement herein authorized shall be five (5) years,
beginning on January 1, 1997 and continuing until December 31, 2001, unless otherwise
amended by the parties pursuant to the Tax Code.
8. During the period of tax abatement herein authorized, MEPC shall be subject
to all City taxation not abated, including but not limited to, sales tax and ad valorem
taxation on any other land, inventory and supplies.
DEFINITIONS
9. Wherever used in this Agreement, the following terms shall have the meanings
ascribed to them:
A. The Premises shall mean the property described on Exhibit "B" attached
hereto and incorporated herein for all purposes including any improvements and
personal property excluding inventory which is added to the property subsequent to
the execution of this Agreement;
B. The Improvements shall mean the contemplated improvements described
herein located on the Premises and as further described in the plans submitted to the
City, including but not limited to buildings, structures, tangible personal property,
equipment, and fixtures added to the Premises other than inventory.
C. The TotalAssessed Tax Value shall mean the total assessed taxable value
on January 1 of any tax year of the Premises, any Improvements located on the
Premises and the tangible personal property, excluding inventory, located on the
Premises.
D. The Base Year Tax Value shall mean the total assessed taxable value for
the year in which the Tax Abatement Agreement is executed (1995).
Tax Abatement Agreement - Page 3 AGGO?A55
E. The First Year of the Tax Abatement Agreement shall be 1997, unless
otherwise agreed to by the parties.
F. Certified Appraised Value means the appraised value of the Premises owned
by MEPC as certified by the Dallas Central Appraisal District as of January 1 of
each year in which the tax abatement is granted.
IMPROVEMENTS
10. MEPC owns a 7.534 acre tract of land known as the Freeport North Addition,
Coppell, Texas, being described in Exhibit "B" and agrees to construct on the Premises
approximately 132,500 square feet of warehousing, office and distribution facilities. The cost
of the Improvements should exceed $3 Million Dollars. The approximate location of such
Improvements are shown on the Site Plan of the Premises attached hereto as Exhibit "C"
and made a part hereof for all purposes. Nothing in this Agreement shall obligate owner
to construct Improvements on the Premises, but said Improvements are a condition
precedent upon initiation of tax abatement pursuant to this Agreement.
11. Subject to the terms and conditions of this Agreement, MEPC is entitled to
an abatement of ad valorem taxation on real property and personal property of seventy-five
percent (75%), conditioned upon MEPC, its successors or assigns diligently constructing the
aforesaid improvements.
CONSTRUCTION OF IMPROVEMENTS
12. As a condition precedent to the initiation of tax abatement pursuant to this
Agreement, MEPC will diligently and faithfully, in good and workmanlike manner, pursue
the completion of the contemplated improvements on or before June 1, 1996, as good and
valuable consideration for this Agreement, and that all construction of the Improvements
will be in accordance with all applicable state and local laws, codes, and regulations, (or
valid waiver thereof); provided, that MEPC shall have such additional time to complete and
maintain the Improvements as may be required in the event of "Force Majeure," if MEPC
is diligently and faithfully pursuing completion of the Improvements. For this purpose,
"Force Majeure" shall mean any contingency or cause beyond the reasonable control of
MEPC including, without'limitation, acts of God or the public enemy, war, riot, civil
commotion, insurrection, adverse or inclement weather, government or de facto
governmental action (unless caused by acts or omissions of MEPC), fires, explosions or
floods, strikes, slowdowns or work stoppages.
13. MEPC agrees to maintain the Improvements during the term of this
Agreement in accordance with all applicable state and local laws, codes, and regulations.
Tax Abatement Agreement - Page 4 Aaa0?A55
14. The City, its agents and employees shall have the right of access to the
Prenfises during construction to inspect the Improvements at reasonable times and with
reasonable notice to MEPC, as the case may be, and in accordance w/th their visitor access
and security policies, in order to insure that the construction of the Improvements are in
accordance with this Agreement and all applicable state and local laws and regulations (or
valid waiver thereof).
GENERAL REQUIREMENTS
15. Construction plans for the Improvements constructed on the Premises will be
filed with the City. The plans for such Improvements as filed shall be deemed to be
incorporated by reference herein and made a part hereof for all purposes.
16. MEPC agrees from the date a certificate of occupancy is issued until the
expiration of this Agreement to continuously operate and maintain the Premises as an office,
warehouse and distribution center, or any other activity consistent with local zoning, in
compliance with all applicable federal, state and local laws.
17. After completion of the improvements, MEPC shall certify in writing to the
City the construction cost of the Improvements. Such certification shall be signed by all
parties to this Agreement and shall then be attached hereto as Exhibit "D", and such Exhibit
shall become a part of this Agreement for all purposes. MEPC shall annually certify to the
City that they are in compliance with each term of this Agreement.
18. The Premises and the Improvements constructed thereon at all times shall be
used in the manner (i) that is consistent with the City's Comprehensive Zoning Ordinance,
as amended, and (ii) that, during the period taxes are abated hereunder, is consistent with
the general purposes of encouraging development or redevelopment within the Zone.
"Outside storage on the premises shall be in accordance with an "outside storage plan"
approved by the City."
DEFAULT: RECAPTURE OF TAX REVENUE
19. In the event MEPC 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 (provided MEPC retains its right to timely and
properly protest such taxes or assessment); or (iii) breaches any of the terms and conditions
of this Agreement, then MEPC, after the expiration of the notice and cure periods described
in Paragraph 20 below, shall be in defanlt of this Agreement. As liquidated damages in the
event of such default, MEPC shall, within sixty (60) days after demaud, 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 Abatement Agreement - Page
Tax Code as amended but without penalty. The parties acknowledge that actual damages
in the event of default termination would be speculative and difficult to determine. The
parties further agree that any property tax revenue lost, including interest as a result of this
Agreement, shall be recoverable against MEPC, its successors and assigns and shall
constitute a tax lien on the Premises itself and shall become due, owing and shall be paid
to the City within sixty (60) days.
20. Upon breach by MEPC of any obligations under this Agreement, the City shall
notify MEPC in writing. MEPC shall have sixty (60) days from receipt of the notice in
which to cure any such default. If the default cannot reasonably be cured within a sixty (60)
day period, and MEPC has diligently pursued such remedies as shall be reasonably necessary
to cure such default, then the parties shall automatically extend the period in which the
violation must be cured for an additional sixty (60) days.
21. If MEPC fails to cure the default within the time provided as specified in
Paragraph 20 above or, as such time period may be extended, then the City at its sole option
shall have the right to terminate this Agreement by written notice to MEPC.
22. Upon termination of this Agreement pursuant to Paragraph 20 above, all tax
revenue abated with respect to the terminated party 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 sixty (60) days after a notice of termination is made. The City shall have all
remedies for the collection of the recaptured tax revenues provided generally in the Tax
Code for the collection of delinquent property tax. The City at its sole discretion has the
option to provide a pay back 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 the terminated party with
respect to the Premises, as determined by the Dallas Central Appraisal District, multiplied
by the tax rate of the years in question, as calculated by the City Tax Assessor-Collector.
Penalties as provided for delinquent taxes shall accrue after expiration of the sixty (60) day
payment period.
ANNUAL APPLICATION FOR TAX EXEMPTION
23. It shall be the responsibility of MEPC, pursuant to the Texas Tax Code, to file
an annual exemption application form with the Chief Appraiser for each appraisal district
in which the eligible taxable personal property has situs. A copy of the exemption
application shall be submitted to the City for review.
SUCCESSORS AND ASSIGNS
Tax Abatement Agreement - Page 6 t~GGOTA55
24. This Agreement shall be binding on and inure to the benefit of the parties to
it and their respective legal representatives, successors, and assigns. This Agreement may
be assigned with the consent of the City, which consent shall not be unreasonably withheld.
NOTICE
25. All notices required by this Agreement shall be addressed to the following, or
other such other party or address as either party designates in writing, by certified mail,
postage prepaid or by hand delivery and shall be deemed to be delivered only upon actual
receipt thereof:
If intended for MEPC, to;
MEPC Quorum Properties, II, Inc.
15303 Dallas Parkway, Suite 100, LB 10
Dallas, Texas 75248
If intended for City, to:
City of Coppell, Texas
City Manager
P. O. Box 478
Coppell, Texas 75019
CITY COUNCIL AUTHORIZATION
26. This Agreement was authorized by resolution of the City Council authorizing
the Mayor to execute this Agreement on behalf of the City.
SEVERABILITY
27. In the event any section, subsection, paragraph, sentence, phrase or word
herein is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand,
shall be enforceable and shall be read as if the parties intended at all times to delete said
invalid section, subsection, paragraph, sentence, phrase or word.
APPLICABLE LAW
28. 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 Dallas
County, Texas. This Agreement is performable in Dallas County, Texas.
ENTIRE AGREEMENT
Tax Abatement Agreement - Page 7 AGG07A55
29. 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 cannot be modified without written
agreement of the parties to be attached to and made a part of this Agreement.
30. The provisions of this Agreement are hereby declared covenants running with
the Premises and are fully binding on all successors, and assigns of MEPC who acquire any
right, title, or interest in or to the property, or any part thereof. Any person who acquires
any right, title, or interest in or to the property, 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 property.
RECORDATION OF AGREEMENT
31. A certified copy of this Agreement shall be recorded in the Deed Records of
Dallas County, Texas.
EXECUTED in duplicate originals this the /_~ ~ay of ~/~'ff~E'~, 199~.
CITY OF COPPELI_o TEXAS MEPC Quorum Properties II Inc.
B¢.~.~/~x. o ~ ~_.~,.c/~J''----~
By:
TOM MORTON, MAYOR HOWARD GARFIELD
Title: VICE PRESIDENT
APPROVED AS TO FORM:
~-~R G. S' I~~, cITY ATTORNEY By:
(PGS/ct 12-6-95) Title:
Tax Abatement Agreement - Page 8 AGG0~'.~55
MAYOR'S ACKNOWLEDGEMENT
STATE OF TEXAS
COUNTY OF DALLAS §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of
Texas, on this day personally appeared Tom Morton, Mayor of the City of Coppell, Texas,
a municipal corporation, known to me to be the person and officer whose name is
subscribed to the foregoing instrument and acknowledged to me that the same was the act
of the said City of Coppell, Texas, a municipal corporation, that he was duly authorized to
perform the same by appropriate resolution of the City Council of the City of Coppell, and
that he executed the same as the act of said City for the purpose and consideration therein
expressed and in the capacity therein stated.
~ GIVEN UNDER MY HAND AND SEAL OF O ICE this the I~~ day of
N(Qtar~ Publi~,-St~te df Texas
My Commission Expires:
Tax Abatement Agreement - Page 9 AGGOTA55
CORPORATE ACKNOWLEDGEMENT
STATE OF TEXAS §
COUNTY OF DALLAS §
BEFORE ME, the undersigned authority a Notary Public in and for the State of
Texas, on this day personally appeared Howard Garfield, being the Vice President of
MEPC Quorum Properties II, Inc., a Delaware corporation, known to me to be the person
and officer whose name is subscribed to the foregoing instrument and acknowledged to me
that the same was the act of the said corporation, and that he executed the same as the act
of said corporation for the purpose and consideration therein expressed and in the capacity
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this the day of
, 19
Notary Public, State of Texas
My Commission Expires:
Tax Abatement Agreement - Page 10 Aa~07a55
CITY OF COPPELL, TEXAS
GUIDELINES FOR TAX ABATEMENT
GENERAL PURPOSES AND OBJECTIVES
The City of Coppell is committed to the promotion of high quality development in all parts
of the City and to an ongoing improvement in the quality of life for its citizens. Insofar as
these objectives are generally served by the enhancement and expansion of the local
economy, the City will on a case by case basis give consideration to providing incentives as
a stimulus for economic development in Coppell. It is the policy of the City that such
consideration wig be provided in accordance with the procedures and criteria outlined in
this document. Nothing_ herein shall imp~_ or su_eg_est that the City_ of Coppell is under
ob~gation to provide any_ incentive to any_ applicant. All applicants shall be considered on a
case bY case basis.
According to the Property Redevelopment and Tax Abatement Act, codified at Chapter 312
of the Texas Tax Code, the City may only grant tax abatement on the increment in vah;e
added to a varticularproperty by specific development proposal which meets the economic
development goals and objectives of the City. The tax abatement may only apply to the real
estate portion of the project or the tangible personal property added to the real estate or
both. Inventory and supplies may not be included.
Tax abatements are granted to the owners of real and personal property; for projects where
the real estate is leased, special terms and conditions will be required in the agreement.
Tax Abatement Guidelines - Page 1
Ed. 12/6/95 ~ EXHIBIT
MINIMUM STANDARDS FOR TAX ABATEMENT
To be considered eligible for a tax abatement, the proposed project and/or property must
meet the following criteria:
1. An investment of at least $5.5 million in taxable assets. The acquisition cost
.. of the real estate is not included in computing the amount of taxable assets.
Construction costs are not necessarily indicative of the taxable value of the
property. (The taxable value is determined by the Central Appraisal District
as of January 1 of each year.)
2. The City may consider tax abatement for an investment less than $5.5 million
in taxable assets based upon City evaluation of economic development factors,
including but not limited to: the location of taxable inventory on the property;
the amount of sales tax which the project or property will generate for the
City; and the amount of any rollback taxes triggered by the development or
project.
3. The project makes a substantial contribution to redevelopment efforts.
4. The project has high visibility, image impact, or is of a significantly higher
level of development quality.
5. The project is an area which might not otherwise be developed because of
restraints of topography, ownership patterns, site configuration, or other
constraints.
6. The project stimulates concentration of employment and/or commercial
activity.
7. A project submitted for tax abatement shall be subject to fiscal impact
analysis to determine whether or not the services required for the facility will
exceed the amount of taxes generated if an abatement was provided. No tax
abatement will be offered to a project that generates negative costs to the
city.
8. Applicants must provide a written narrative detailing how a
development/project meets the above minimum standards.
Tax Abatement Guidelines - Page 2
Ed. 12/6/95 AGG0?ATI:
OBJECTIVE CRITERIA
The following criteria is designed to evaluate specific components common to all applicants.
1. How much property tax base will be added? There must be at least $5.5
million in tax base added to the property to be eligible for tax abatement.
2. .. How much local annual payroll will be created?
3. How mauy new jobs will be created?
4. How much sales tax will be generated?
5. How much taxable inventory will be located on the property?
6. An investment of less than $5.5 million taxable assets may be eligible for tax
abatement based upon the evaluation of other economic development factors,
including but not limited to: the location of taxable inventory on the property;
the amount of sales tax which the property or project will generate for the
City; and the amount of any rollback taxes triggered by the development or
the project.
Tax Abatement Guidelines - Page 3
Ed. 12/6/95 A~GOT/17F
SU-BJEC~ CRITERIA
The applicant must respond in written narrative format to the following:
1. Is the project sponsor a local company?
2. What types and values of public improvements, if any, will be made by the
.. applicant?
3. Wffi the applicant be the owner or lessee? If lessee, are occupancy
commitments already existing?
4. Does or can the project meet all relevant zoning, subdivision and other legal
requirements?
5. What impact will the project have on other taxing units?
(Coppell Independent School District)
6. Are the new jobs to be created likely to be filled by Coppell's local labor
force?
7. Will the project increase the business opportunities of existing local
businesses?
8. Is the project consistent with the comprehensive plan of the City?
9. Is the level of quality significantly higher than the typical projects of a similar
use? Are site amenities provided such as landscaping, public art, water
fountains, plazas, etc.?
10. Does the project pose any negative environmental, operational, visual or other
impacts (i.e. pollution, noise, traffic congestion, etc.)?
Tax Abatement Guidelines - Page 4
Ed. 12/6/95 AGG07ATF
AMOUNT OF TAX ABATEMENT
The above criteria will be used to determine whether it is in the best interest of the City to
provide tax abatement to a particular applicant. The categories itemized below have been
identified as desirable for the conununity. Once a determination has been made that a tax
abatement is in the best interest of the City, the value and term of the abatement will be
determined..from the following:
1. Tax abatements are available for both new facilities and structures and for the
expansion and modernization of existing facilities and structures. The City of
Coppell would provide up to 75% tax abatement for a warehousing and
distribution facility, up to 50% abatement for a fabrication and assembly
facility, and 25% for a manufacturing and processing facility. The following
definitions shall apply to the aforementioned categories.
Warehousing and Distribution - Temporary storage of materials received
in bulk for later transfer or shipment in
smaller lots and in combination with other
materials received.
Fabrication and Assembly- The connection of standard, previously
manufactured components to form a
consumer product.
Manufacturing and Processing - The combining of raw materials to form
finished products which are physically
altered and result in consumer products.
Any other uses, not elsewhere listed in this policy, will have to be considered
on an individual basis to evaluate the desirability and compatibility of the
proposed use for the community. All determined "desirable uses" by the City
will receive no more than 75% tax abatement.
2. Tax abatements are for a period of five (5) consecutive tax years; however,
the City may delay the commencement of the tax abatement until January 1
of the second year following the year in which the tax abatement agreement
is executed (i.e. tax abatement agreement is entered into during calendar year
1994 -- the first year of taxes subject to abatement would be January 1, 1996).
3. A project may be granted a tax abatement on real and/or personal property
Tax Abatement Guidelines - Page 5
Ed. 12/6/95 AGGOTAFF
for a period of up to five years, depending on the evaluation of the tax
abatement guideline criteria. The actual percentage of taxes subject to
abatement for each year of an agreement will be determined from the
schedule provided below; and will apply only to the portion of the taxable
value of the real property or of the tangible personal property located on the
real property, or both that exceeds that property's taxable value for the year
in which the agreement is executed (base year). The tax abatement
agreement for tangible personal property may only apply to the personal
.. property added to the real property after the agreement is executed.
Tax Abatement Guidelines - Page 6
Ed. 12/6/95 AGG0?A7F
SCHEDULE
Amount of Taxable Value Percentage of abatement
Subject to Percentage of the excess taxable value
of Abatement
Warehousing and Distribution -
The am.Qunt by which the total assessed Maximum 75%
taxable value of the real property and/or
tangible personal property, or both Fabrication and Assembly - Maximum
exceeds the assessed taxable value for the 50%
property in the year the agreement is
executed (base year). Manufacturing and Processing -
Maximum 25%
[taxable value of prol~rty for each year of abatement - base year taxable value = excess taxable value subject to abatement % above]
PROCEDURAL GUIDELINES
Any person, organization or corporation desiring that the City consider providing tax
abatement to encourage location or expanded operation within the city shall comply with
these procedural guidelines. Nothing within these _guidelines shall be construed to ~eeest that
the City is under any ob~gation to provide any abatement to any a~t~licant even ~f certain
criteria are satisfied. The City_ reserves the r~ht to re_iect any_ application.
APPLICATION
Applicant should submit an application for tax abatement to the City Manager addressing
the above criteria including a legal description of the property and a plat showing the
precise location of the property, all roadways within five hundred feet of the site, and all
existing zoning and land uses within five hundred feet of the site.
APPLICATION REVIEW PROCESS
The application will be reviewed by the Tax Abatement Committee consisting of the City
Manager, three representatives from the Economic Development Partnership, the Chairman
of the Finance Committee and the City's Tax Assessor. The Committee will serve as an
advisory body to the City Council in determining whether a tax abatement should be offered.
Tax Abatement Guidelines - Page 7
Ed. 12/6/95 A~OZA?F
The Committee's recommendation shall be based upon a subjective evaluation of the
completed application. The committee may invite representatives from the Coppell
Independent School District, Dallas County, Tarrant County or Denton County, to
participate in the review.
All information submitted will be reviewed for completeness, accuracy, and according to the
guidelines and criteria. Additional information may be requested as needed.
The applica, tion may be distributed to appropriate City departments for internal review and
comlnents.
Copies of the complete application package and staff comments, if any, will be provided to
other taxing entities (Coppell Independent School District, Dallas, Tarrant or Denton
County).
The staff will make recommendations on the application to the Tax Abatement Committee.
If needed, the Tax Abatement Committee will meet with the applicant.
The recommendation of the Tax Abatement Committee will be forwarded to the chief
administrative officer of other applicable taxing units.
Based on the recommendation of the Committee the City Council may consider a resolution
calling a public hearing to consider the establishment of a tax reinvestment zone. (Before
the City may enter into a tax abatement agreement, the property involved must be
designated ns a reinvestment zone.)
City Council then holds a public hearing to determine whether or not the property involved
should be designated as a reinvestment zone; and whether the project is feasible and
practical and would be a benefit to the City after expiration of the agreement. (At the
public heating, the City staff and/or the applicant may make a presentation following which
interested persons may speak for or against the designation.)
After the public hearing the City council will consider adoption of an ordinance designating
the area described in the legal description of the proposed project as a tax abatement
reinvestment zone. After designation of the tax reinvestment zone, the City Manager will
negotiate an agreement with the applicant governing the provision of the tax abatement.
Tax Abatement Guidelines - Page 8
Ed. 12/6/95 ^~O?A?F
ADOPTION OF AGREEMENT
Any tax abatement agreement must include the following:
1. General description of the project.
2. Amount of tax abatement.
3. Method for calculating the value of the abatement.
4. Term of the abatement.
5. Legal description of the property.
6. Type, number, location and timetable of planned improvements.
7. Any specific terms or conditions to be met by applicant.
The agreement will be presented to the City Council for adoption and execution by the City
Manager and any other participating taxing unit.
Should the terms of the tax abatement agreement subs _equenttv not be satisfied, the tax
abatement shall be md! and void and ail abated taxes will immedlate~_ become due and
payable to the City_ o_f CoppeI1 and any other t_nrlng _'mrisdiction participating in the tax
abatement ~_ eernent. ~ns to this e__ffect will be incorporated into the _agreement.
Tax Abatement Guidelines - Page 9
Ed. 12/6/95 AaaO?^?F
PRO]F-AW
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