Loading...
RE 08-10-93.1 A RESOLUTION OF THE CITY OF COPPELL, TEXAS RESOLUTION NO. 081093.1 RESOLUTION OF THE CITY COUNCIL 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 MINYARD FOOD STORES, INC.; 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 Minyard Food Stores, 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 Agreement, and all matters attendant and related thereto, 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 Coppell, Texas; now, therefore NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, that: 1. The Tax Abatement Agreement, Exhibit "A", having been reviewed by the City Council of the City of Coppell, Texas and found to be acceptable and in the best interest of the City and its citizens, be, and the same is hereby, in all things approved, and the Mayor is hereby authorized to execute the Agreement on behalf of the City of Coppell, Texas; 2. 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; 3. The tax abatement to be granted by the Agreement will not include inventories, supplies, personal property and furnishings of the Premises; 4. The improvements proposed for the Premises will accomplish the tax abatement guidelines of the City of Coppell, Texas. 5. 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 1 AGGO4~DF a copy of the Tax Abatement Agreement approved by this Resolution. 6. This Resolution and the Tax Abatement Agreement 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. 7. This Resolution shall become effective immediately from and after its passage, provided that the Tax Abatement Agreement approved hereby shall be effective as of January 1, 1994, and for the tax year 1994 and following for the term thereof. DULY PASSED AND APPROVI~D by the City Council, City of Coppell, Texas, on the /~ day of /~./z,~,~Z~ ,1993. .J ' APPROVED: CITY OF COPPELL, TEXAS "-" Tom Morton, Mayor ATTEST: Dorothy ~m6ns City Secretary APPROVED AS TO FORM: Peter G. Smith, City Attorney 2 AGG043DF TAX ABATEMENT AGREEMENT STATE OF TEXAS § COUNTY OF DALLAS § This Tax Abatement Agreement ("Agreement") is made and entered into by and between the City of Coppell, Texas ("City"), a home rule city and municipal corporation of Dallas County, Texas, duly acting herein by and through its Mayor, and Minyard Food Stores, Inc. ("Minyard"), a Texas corporation authorized to do business in the State of Texas, duly acting by and through its authorized officers, for the purposes and considerations stated below: WITNESSETH: WHEREAS, on the 13th day of July, 1993, the City Council of the City of Coppell, Texas ("City Council"), passed Ordinance No. 93607 ("Ordinance") establishing Tax Abatement Reinvestment Zone No. 1, City of Coppell, Texas ("Zone"), for commercial- industrial tax abatement, as authorized by Chapter 312 of the Texas Property Tax Code; and WHEREAS, on the 26th day of November, 1991, the City adopted a Policy Statement for Tax Abatement ("Policy Statement"), attached hereto as Exhibit "A" and made a part hereof for all purposes; and WHEREAS, the Policy Statement constitutes appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by the Texas Property 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 an enhanced commercial and industrial economic and employment base of the Coppell area, it is in the best interest of the tax payers for the City to enter into this Agreement in accordance with said Ordinance, Policy Statement and the Texas Property Tax Code; and WHEREAS, the City Council finds that the contemplated use of the premises, the contemplated improvements to the premises in the amount as set forth in this Agreement and other terms hereof are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the Policy Statement, the Ordinance and similar guidelines and criteria adopted by the City, the Texas Property Tax Code and all other applicable laws; and TAX ABATEMENT AGREEMENT - Page 1 AGG04:)CC WHEREAS, the City Council also finds that the improvements sought are feasible and practical 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 Texas Property Tax Code, to the presiding officers of the governing bodies of each of the taxing units in which the premises to be subject to the Agreement is located; and WHEREAS, the City desires to enter into an Agreement with Minyard, the owner of property within the tax abatement reinvestment Zone No. 1 for the abatement of taxes pursuant to Chapter 312 of the Texas Property Tax Code, as amended; NOW THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree as follows: GENERAL PROVISIONS 1. Minyard is the owner of that parcel of land described in Exhibit "B" attached hereto and made a part hereof for all purposes ("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 bond. 3. This Agreement is entered into subject of 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 Coppelt City 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 Property Tax Code, Chapter 312, by the City Tax Abatement Guidelines and Criteria, Ordinance No. 93607 and by resolution of the City Council of the City authorizing execution of this Agreement. 6. Subject to the terms and conditions of this Agreement, the City hereby grants Minyard an abatement of ad valorem taxation as follows: For each year of the Agreement that Minyard's total assessed tax value exceeds the current year tax value by 5.5 million dollars, the tax abatement shall be twenty- five percent (25%) of such excess value and for any year of the Agreement that TAX ABATEMENT AGREEMENT - Page 2 AGG043CC such excess value exceeds ten million dollars tax abatement for such year shall be fifty percent (50%) of such excess value. 7. The period of tax abatement herein authorized shall be five (5) years, beginning on January 1, 1994 and continuing until December 31, 1998. 8. During the period of tax abatement herein authorized, Minyard shall be subject to all City taxation not abated, including but not limited to, sales tax and ad valorem taxation on land, inventory and supplies. BEFINITIONS 9. Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: 10. The Premises shall mean all that parcel of land described on Exhibit "B" attached hereto and incorporated herein for all purposes. 11. 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. 12. Total Assessed Tax Value shall mean the total assessed tax value on January 1 of any tax year of the Premises, any improvements located on the Premises and the tangible personal property located on the Property. 13. Current Year Tax Value shall mean the total assessed tax value for the year in which the Tax Abatement Agreement is executed. 14. First Year of the Tax Abatement Agreement shall mean the tax year beginning January 1, following the year on which the Tax Abatement Agreement is executed. 15. Certified Appraised Value means the appraised value of eligible property owned by Minyard as certified by the Dallas Central Appraisal District as of January 1 of each year in which the tax abatement is granted. PRQPERTY 16. Any improvements, as hereinafter defined, to be the subject of this Agreement shall be those added to the Premises described in Exhibit "B" attached hereto and made a part hereof for all purposes and which shall hereafter be referred to as the Improvements. TAX ABATEMENT AGREEMENT - Page 3 AGG04;~CC 17. Minyard agrees to construct on and within the premises an expansion of one hundred twenty-two thousand three hundred and forty-seven square feet (122,347) square feet to the existing warehouse structure located at 777 Freeport Parkway, Coppell, Texas situated on a sixty-three (63) acre, more or less, tract of land as shown in Exhibit "B" along with improvements to parts of the existing warehouse structure to consolidate Minyard warehousing functions into one location and to provide storage for boxed meat, poultry, dairy and frozen food. Such structure shall allow for a clear height of thirty-two (32) feet and sixty (60) foot wide dock. The exterior of the structure will be insulated with metal panels. The panels at the dock wall are to complement the existing tilt up appearance. The roof system shall be a ballasted EPDM membrane over EPS insulation. The concrete floor sections will vary, depending on pallet weight. A new central ammonia system will also be installed for the expanded area. The approximate cost of the improvements is estimated to be 8.4 million dollars. The Premises and improvements shall be used consistent with the Comprehensive Zoning Ordinance of the City for that area. Minyard agrees that the improvements will be completed prior to February 1, 1994, provided that the owner shall have such additional time to complete the improvements as may be required in the event of force majeure if Minyard is diligently and faithfully pursuing completion of the improvements. Force majeure shall mean any contingency or cause beyond the reasonable control of Minyard including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by actual omissions of Minyard), fires, explosions or floods, and strikes. The date of completion of the improvement shall be defined as the date a Certificate of Occupancy is issued by the City. 18. Subject to the terms and conditions of this Agreement, and subject to the rights of holders of any outstanding bonds of the City, a portion of the ad valorem real property taxes from the Premises otherwise owed to the City shall be abated for a period of five (5) years beginning with tax year 1994. Said abatement shall be on the taxes assessed upon the real property to the extent of its value, including the value of the improvements, for each year abatement exceeds its value for the tax year 1993. It is the intent of the parties that the abatement granted hereby shall extend for a period of five (5) years beginning January 1, 1994 with the tax year 1994 and shall apply only to those immediate planned improvements to the premises and not to future improvements on the premises, unless this Agreement be amended to include such additional improvements. GENERAL REQUIREMENTS 19. Minyard shall provide access to and hereby authorizes inspection of the improvements by employees or authorized representatives of the City. Minyard's representatives shall be permitted to attend the inspections. An inspection shall be preceded by at least twenty-four (24) hours notice, and shall be conducted so as not to interfere unreasonably with the business operations of Minyard and shall comply with Minyard's safety standards. TAX ABATEMENT AGREEMENT - Pa, ge 4 AGG043CC 20. Minyard shall annually render to the Chief Appraiser of the Dallas Central Appraisal District or other applicable entity or agency, a separate value of the land, original structure, expanded 1993 improvements, as defined by Section 11, and any and all information necessary for administration. Aisc, Minyard shall as a part of said annual rendition, itemize value for each and every piece of equipment and/or fixtures, other than inventory. 21. Construction plans for the improvements as described herein shall be filed with the City. The plans for the improvements described herein as filed shall be deemed to be incorporated by reference herein and made a part hereof for all purposes. DEFAULT: RECAPTURE OF TAX REVENUE 22. In the event that the improvements for which an abatement has been granted hereunder are not completed in accordance with this Agreement, or in the event Minyard should breach this Agreement, then Minyard shall be in default of this Agreement. As liquidated damages in the event of such default, all taxes which otherwise would have been paid to the City without the benefit of abatement will become a debt to the City, subject to any and all lawful off-sets, settlements, deductions, or credits to which Minyard may be entitled. 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 as a result of this Agreement shall be recoverable from Minyard and/or the subsequent owner of the Premises and shall constitute a tax lien on the property itself, if Minyard fails to make the improvements or otherwise as in breach of this Agreement. 23. Upon breach by Minyard the City shall notify Minyard in writing. Minyard shall have thirty (30) days from receipt of the notice in which to cure any such default. If the default cannot reasonably be cured within a thirty (30) day period, and Minyard has diligently pursued such remedies as shall be reasonably necessary to cure such default, then the parties may agree in writing to an extension of the period in which the violation must be cured. 24. If Minyard fails to cure the default within the time provided as specified in the written notice of any extension, then the City at its sole option shall have the right to terminate this Agreement. This notice of termination shall made by sending written notice to Minyard and shall be effective for all purposes when deposited in the United States mail addressed to Minyard, postage prepaid, and mailed certified mail, return receipt requested. 25. Upon termination of this Agreement all tax revenue abated as a result of this Agreement shall become a debt to the City as liquidated damages, and shall become due and payable not later than 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 TAX ABATEMENT AGREEMENT - Page 5 AGG04:~CC in the Texas Property 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 Minyard 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. Interest and penalties on the tax revenues abated shall accrue only after expiration of the sixty (60) day payment period. MISCELLANEOUS 26. This Agreement is non-transferable. 27. This Agreement constitutes the entire Tax Abatement Agreement between the parties, supersedes any prior understanding or written or oral tax abatement agreements or representations between the parties, and can be modified only by written instrument subscribed to by both parties. Notwithstanding the foregoing provision, this Agreement does not modify, alter, or amend any other agreement or instrument between the City and Minyard relating to matters other than the abatement of ad valorem taxes with respect to the Premises. 28. It is understood and agreed between the parties that Minyard, in performing its obligation hereunder, is acting independently, and the City assumes no responsibilities or liabilities in connection herewith to third parties, and Minyard agrees to indemnify and hold harmless the City, its officers, agents and employees therefrom. It is further understood and agreed among the parties that the City, in performing its obligation hereunder, is acting independently, and Minyard assumes no responsibilities or liabilities in connection therewith to third parties, and the City agrees to indemnify and hold harmless Minyard, its officers, agents and employees therefrom. 29. Any notice and/or statement required or permitted to be delivered shall be deemed delivered by depositing same in the United States mail, certified mail, return receipt requested, postage prepaid, addressed to the appropriate party at the following addresses, or at such other addresses provided by the parties in writing: Minyard Food Stores, Inc. Attention: Real Estate Department 777 Freeport Parkway Coppell, Texas 75019 City of Coppell P.O. Box 478 Coppell, Texas 75019 TAX ABATEMENT AGREEMENT. Page 6 AGG045CC 30. This Agreement was authorized by resolution of the City Council of the City of Coppell, Texas at a regular Council meeting, such resolution authorizing the Mayor to execute the Agreement on behalf of the City of Coppell. This Agreement shall constitute valid and binding agreement between the City of Coppell and Minyard Food Stores, Inc. when executed. This Agreement shall constitute a covenant running with the land and shall be recorded upon execution in the real property records of Dallas County, Texas. 31. This Agreement is performable in Dallas County, Texas and venue for any action to enforce any provision hereof shall lie exclusively in Dallas County, Texas. The laws of the State of Texas shall apply in all respects to the interpretation of this Agreement. 32. In the event any paragraph, sentence, phrase or word herein is held invalid, illegal, or unconstitutional, the balance of this Agreement shall stand and shall be enforceable and shall be read as if the parties intended at all times to delete said invalid paragraph, sentence, phrase or word. Executed in duplicate originals on the r' ~ day of 1993. Tom Morton, Mayor B }b Miny~rxd Chairman b,~_.xecutive Committee Al-rEST: AFl'EST: Dorothy TT-r'r~ons [ ~ Secretary City Secretary APPROVED AS TO FORM: P-et~r G. Smith City Attorney TAX ABATEMENT AGREEMENT - Page 7 AGG0~3CC STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority on this day personally appeared Tom Morton, Mayor of the City of Coppell, Texas, known to me to be the person and officer whose name is subscribed to the above and foregoing instrument and acknowledged to me that he executed the above and foregoing agreement as an act of the City of Coppell, Texas, for the purposes and consideration therein expressed, and in the capacity therein stated. ,GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of _ ~,/~,/;~,~.~ , 993. ~.,.,~[?~.~..~..,/ My Comm~::~D Expires D ~ ..... ~ Ju~ No~ Public, State of Texas My ~mmission Expires: TAX ABATEMENT AGREEMENT -.Page 8 AGG043CC STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority on this day personally appeared Bob Minyard, known to me to be the person and officer whose name is subscribed to the above and foregoing instrument and acknowledged to me that same was the act of Minyard Food Stores, Inc., and that he executed the same as an act of such company, for the purposes and consideration therein expressed, and in the capacity therein stated. GIV£N UNDER MY HAND AND SEAL OF OFFICE this ,,~7¢/~ day of ~-L~/~/ , 1993. My Commission Expires: TAX ABATEMENT AGREEMENT - Page 9 AGG04'~CC