09/18/2000-CC-Agenda Packet-Work SessionAGENDA
CITY COUNCIL - WORKSHOP
MONDAY, SEPTEMBER 18, 2000
6*00 P.M.
201 BOLIVAR
1. Call Meeting to Order
2. Discuss Possible Ordinance Designating a Certain Area as the Sanger Tax Abatement
Reinvestment Zone No.1, and Guidelines and Criteria for Tax Abatements to Qualified
CommerciaVIndustrial Projects, and a Tax Abatement Agreement Between the City of
Sanger and Walmart Stores East Inc.
3. Adjourn.
Date & Time Posted
This facility is wheelchair accessible and accessible parking spaces are available. Requests
for accommodations or interpretive services must be made 48 hours prior to this meeting.
Please contact the City Secretary's office at (940) 4587930 for further information.
ORDINANCE NO. - la- J0
AN ORDINANCE AMENDING THE CODE OF THE CITY OF SANGER, TEXAS k :7Y4),
AS AMENDED, BY DESIGNATING A CERTAIN AREA AS THE SANGER TAX
ABATEMENT REINVESTMENT ZONE NO. l; PROVIDED THAT THIS ORDINANCE
SHALL BE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING
FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City Council of the City of Sanger, Texas ("City"), desires to promote the
development or redevelopment of a certain contiguous geographic area within its jurisdiction by the
creation of a reinvestment zone for commercial/industrial tax abatement, as authorized by
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WHEREAS, the City has elected to become eligible to participate in tax abatement;
noperty vAthin a reinvestment zone may be eligible for, inter aha, tax abatement, subject to the
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nicipality . •. . • •g by e•lu.•• the guidelinesand criteria forsuch
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hat is located in the reinvestment zone;
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NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SANGER, TEXAS
SECTION 1.
SECTION 44: TAX ABATEMENT REINVESTMENT ZONES DISTRICT TAX ABATEMENT
REINVESTMENT ZONE NO. 1
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Wared to be true and correct. The City, after conducting such hearings and having heard such evidence
.1/• testimony,has 11.•' the following findmgs .1• determinations based •1 the testimony .1• evidence
�uesented to
(a) That a public hearing on the designation of Tax Abatement Reinvestment Zone No. 1 has
been properly called, held and conducted and that notices of such hearings have been
published as required by law and delivered to all taxing units overlapping the territory
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1 .1 is attached hereto 1 • made • " part hereof, :• 1 •
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boundaries as described in Exhibit "A". will result in benefits to the City and the
improvements sought are feasible and practical and would be a benefit to the land to bi.�
included in the reinvestment zone and to the City after the expiration of any
abatement agreements; and
•
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creation of a reinvestment zone as set forth in V.T.C.A. Tax Code, Section
amended, e1 • :♦ 1 that it is reasonably likely as a result of the designation • contribute to the
retention or • . 1 • 1 of primary employment or • attract major • 1 - I11 :1 1 the
!1- that would be a benefit to the property 1• that would contribute to the economic
development :l1 of the
44.2. Designation of Zone.
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ax abatement ai encompassing the area described in Exhibithe hereto and such reinvestin:ii
• / - 1 - - • • - �11 . :• . 1 • 1 . 1 - • - • - . 1 :• Abatement Reinvestment ::1 • 1 - •City of Sanger, Texas. The designation of this zone expires 2 years after the effective date of
44.3. Eligibility for Tax Abatement.
The eligibility for tax abatement of property located in Tax Abatement Reinvestmelrt Zane No. 1,
City of Sanger, Texas, will be governed by the City of Sanger Cnudelines and Criteria for Tax Abatement
to Qualified Commercial/Industrial Projects.
44.4. Effective Date.
This article shall take effect on XX M, 2000,
SECTION 2.
This ordinance shall be cumulative of all provisions of ordinances and of the Code of the
City of Sanger, Texas, as amended, except where the provisions of this ordinance are in direct
conflict with the provisions of such ordinances and such Code, in which event conflicting
provisions of such ordinances and such Code are hereby repealed.
SECTION 3.
It is hereby declared to be the intention of the City Council that the sections, paragraphs,
sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause,
sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not
affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this
ordinance, since the same would have been enacted by the City Council without the
incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph
or section.
SECTION 4.
The City Secretary of the City of Sanger is hereby directed to engross and enroll this
ordinance by copying the caption and effective date in the minutes of the City Council and by
Ming the ordinance in the ordinance records of the City.
SECTION 5.
This ordinance shall take effect and be in full force and effect from and after its passage,
and it is so ordained.
CITY SECRETARY, ROSALIE CHAVEZ
APPROVED AS TO FORM AND LEGALITY:
CITY ATTORNEY
DATE:
EFFECTIVE:
STATE OF TEXAS
COUNTY OF DENTON
KNOW ALL MEN BY THESE PRESENTS:
Effective as of the latest execution date shown immediately prior to the signatures to this
Agreement, the City of Sanger, Texas (the "City"), duly acting herein by and through its Mayor, and
Walmart Stores East Inc. a Texas corporation (and together with its successors and assigns, "Owner"),
hereby enter into this Tax Abatement Agreement (this "Agreement")
WITNESSETH:
WHEREAS, the City Council of the City of Sanger, Texas (the "City Council"), has adopted a
resolution stating that the City elects to be eligible to participate in tax abatement; and
WHEREAS, on the _day of XX���, 2000, the City Council adapted a Tax Abatement
Policy (the "Abatement Policy"), attached hereto as Exhibit A and made a part hereof for all purposes; and
rax Abatement «Code,a«.•ns 312.001 et seq., as amended • •• and
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kgrement in accordance vAth said Abatement Policy and Code, and
Yffier termhereof •• 1u • encouraging development of •e Zone • accordance vAth the
ncluded therem, the Code,and all other applicableand
,xectte thisAgreement on behalf of . 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 are located.
NOW, 'TBEREFORE, the City for good and valuable consideration, the adequacy and
receipt of which are hereby acknowledged, which consideration includes the expansion of
primary employment and the attraction of major investment in the Zone, which contributes to
the economic development of the City and the enhancement of the tax base in the City, and the
Owner and Spectrum, for good and valuable consideration, the adequacy and receipt of which
are hereby acknowledged, which consideration includes the tax abatement set forth herein
below, as authorized by the Code, do hereby contract, covenant and agree as follows:
A. Owner is the owner of that certain parcel of land described on Exhibit B attached hereto
and mach a nart hereof for all nurnnses (the "Premises"). The Premises are located within the
Zone, and the Premises are located within the City limits.
B. The Premises are not in an improvement project financed by tax increment bonds.
C. This Agreement is entered into subject to the rights of the holders of outstanding bonds of
the City.
D. None of the property subject to abatement of taxes under this Agreement is owned or
leased by (i) any member of the City Council, or (ii) any member of a zoning or planning board
or commission of the City.
1
i 1' ' • 1 • C
As a condition to the tax abatement provided herein, Owner, New Owner or an affiliate
(defined below) shall make at a minimum a Two Million Dollar ($2,000,000I Capital Investment
on and within the Premises on or before the third anniversary of the date this Agreement is
executed and delivered by the City. The approximate location(s) of Improvements to be located
on the Premises is reflected on Exhibit C attached hereto. For purposes of this Agreement: (1)
the term "Improvement" shall mean any and all real property improvements to the Premises and
shall include new or renovated buildings, structures and fixtures erected or affixed to land or
existing real property; (2) the term "Capital Investment" means an investment in Improvements
and/or tangible personal property (other than inventory and supplies).
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located on the Premises, as follows:
(1) The Premises and all Improvements constructed thereon M be subject to tax
abatement to the extent the market value thereof, as reflected on the tax rolls of Denton Appraisal
District (the "Tax�Roll ") in each such year, exceeds the value thereof, as reflected on the Tax
Rolls, for the year in which this Agreement is executed.
. tbatement • • • :• herein, excluding• inventory 1 • supplies, and r) tangible personal
)roperty located on the Premises before the execution of this Agreement.
B. The tax abatement rate under this Agreeme�xt for each year of the tax abatement period shall one
percent (1.0%) multiplied by the portion of the value of the Premises, Improvements and tangible
personal property that are subject to abatement, as set forth in paragraphs A.(I) and
C. A one (1) year tax abatement period is hereby granted. This period of abatement shall commence
on January I of the first year following the calendar year in which a certificate of occupancy is issued by
the City for a material Improvement to the Premises (the "Abatement Start Date").
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aw or 1ure legislation. T1 Agreement not to be construed as evidencethat 1 • such exemptions
ipply to the Premises, or personal property . c• on the Premises.
apprais s or assessments of the Premises, or of tfte Improvements tHereon., or on tangivie personal
property, and the tax abatementprovided • herem. for such property •. be applied to the amount of
taxes finally determin4 as a result of such protest or contest, to be due for such property.
Tus ` a ::n :3• 1 . • : • 11 " • - • :« • . 1 :liiir . • 1 . 1 •. • • • 1 . 11 .
Aherwise applyto such property.
N.
CERTIFICATION OF COSTS, CITY ACCESS TO
PREMISES AND USE OF PREMISES AND 1WROVEMENTS
A. On or before April 1st of each year, the Owner shall certify annually to the City whether
the Owner has complied with each applicable term of this Agreement. Such certifications shall
be in a form reasonably satisfactory to the City, and shall include, at a minimum, information
supporting the conclusions of the Owner that each condition and requirement to abatement set
forth in this Agreement has been met or is expected to be met. Failure to timely provide such
certification shall be an Event of Default hereunder.
B. At all times throughout the term of this Agreement, in addition to other rights under
applicable laws, city codes and city ordinances, the City shall, upon giving reasonable notice to
the Owner, have access to the Premises during normal business hours by City employees for the
purpose of inspecting same to insure that the Improvements are constructed and the Premises
used and maintained in accordance with the conditions of this Agreement; provided, however,
that the City shall use reasonable efforts to not interfere with the normal business operations of
the Owner on the Premises.
C. The Premises and Improvements constructed thereon at all times shall be used in a manner
(i) that is consistent with the City's comprehensive zoning ordinance applicable to the Premises,
and (ii) during the period taxes are abated hereunder, is consistent with the general purpose of
encouraging development or redevelopment within the Zone.
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A. If the Owner breaches any of the terms of this Agreement other than the conditions set
forth in Article II hereof, then the Owner shall be in default of this Agreement (an
"Event of Default"). If an Event of Default occurs, the City shall give the Owner
written notice of such Event of Default and if the Owner has not cured such Event of
Default within sixty (60) days of said written notice, this Agreement may be terminated
or modified by the City; provided, however, that if such Event of Default is not
reasonably susceptible of cure within such sixty (60) day period and the Owner has
commenced and is pursuing the cure of same, the Owner may utilize an additional
ninety (90) days. Time in addition to the foregoing one hundred fifty (150) days may
be authorized by the City Council. If this Agreement is terminated for any reason other
than the failure of the conditions set forth in Article II of this Agreement to be met,
then the tax abatement granted under this Agreement shall terminate for the year in
which the notice of the Event of Default is given and all subsequent years (which shall
be the only remedy of the City), it being understood that the tax abatement with respect
to any year prior to the year in which the Event of Default occurs and such notice is
given shall not be forfeited or recaptured.
in
. In the event the Owner does not comply with the conditions set forth in Article II, this
Agreement may be terminated or moed by the City by giving notice and opportunity to cure
as set forth in Article V.A. above, provided that at least 60 days prior to terminating or
modifying this Agreement as a result of the Owner failing to meet the conditions set forth in
Article II, the City shall provide to the Owner written notice of the City's belief that such
conditions have been failed' and shall during such 60-day period engage in good faith efforts
to attempt to resolve any dispute with the Owner concerning whether such conditions have
been failed. In the event that the conditions in Article II hereof are not met due to Force
Majeure (defined below), the Owner shall have such additional time as is reasonably necessary
after such occurrence abates or the effects thereof have dissipated to complete performance
and, provided that the Owner is diligently and faithfully pursuing the completion of
performance, in the event of such Occurrence, the Owner's failure to meet the condition set
forth in Article H hereof shall not be grounds for the City to terminate or modify this
Agreement. The term "Force Majeure" means, without limitation, acts of God, or the public
enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action,
other than the City's legislative zoning authority (unless caused by acts or omissions of the
Owner), fire, explosions, floods and strikes. Variations or additions in the Improvements from
the description provided in the application for the abatement (if any) or any preliminary site
plan shall not constitute either a failure to comply with Article II or an Event of Default,
provided the value of such Improvements is equal to or exceeds the relevant value set forth in
Article H. If this Agreement is terminated as a result of the failure to comply with the
conditions set forth in Article H, then all taxes which otherwise would have been paid to the
City without the benefit of abatement under this Agreement will become due to the City within
thirty (30) days of termination, including all interest at the rate provided for delinquent taxes in
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settlements, deductions, or credits to which the Owner may be entitled. The taxes and interest
due upon termination become delinquent and incur penalties as provided by law for delinquent
ad valorem property taxes if not paid by February I of the year following termination of this
Agreement. The recovery of such taxes shall be the sole remedy of the City in the event of a
default hereunder by the Owner.
VI.
EFFECT OF SALE OR LEASE OF PROPERTY
A. Any assignment of the tax abatement granted pursuant to this Agreement shall require City
approval, which shall not be unreasonably withheld.
B. In the case of any total or partial transfer or assignment of the Premises and/or the tax
abatement provided under this Agreement, either the transferor or the transferee shall notify
the City of such assignment. Any transfer of fee simple title to any portion of the Premises to a
Person which is not a permitted transferee as set forth in Article VI.A above shall result in the
termination for subsequent years of the tax abatement granted under this Agreement with
respect to (a) any Improvement or tangible personal property located on the Premises
transferred or sold, and (b) the portion of the Premises transferred or sold. Any Person who
was an Owner but is no longer an Owner as a result of a valid transfer shall not have any
liability under this Agreement.
C. In the event the Premises are transferred to a future user, then (i) this Agreement shall
automatically be transferred to such transferee, (ii) the tax abatement provided herein
and all attendant rights, liabilities and obligations under this Agreement shall vest in
such transferee as to the property transferred, (iii) Walmart Stores East Inc. shall be
My released from all obligations and liabilities arising under this Agreement, (iv) such
transferee shall be treated as "Owner" under this Agreement, and (v) any activity by
such transferee shall be considered the activity of "Owner" for purposes of determining
whether the conditions of Article H hereof are met.
NOTICE
All notices called for or required by this Agreement shall be addressed to the following,
or such other party or address as either party designates in writing, by certified mail postage
prepaid or by hand delivery:
OWNER:
With a copy to:
Walmart Stores East Inc.
CITY: Ciry Manager
City of Sanger
201 Bolivar
Sanger, Texas 76266
Any parry may change its address by sending written notice to each party to this
Agreement of its new address.
In the event any section, subsection, paragraph, subparagraph sentence, phrase or word
herein is held invalid, illegal, or unenforceable, 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, subparagraph, sentence, phrase or word. In such event there shall be
substituted for such deleted provision a provision as similar in terms and in effect to such deleted
provision as may be valid, legal and enforceable.
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X.
OWNER STANDING
1- §Mner, as a •.rty to'HAs Agreement,1. .- •:-11 �• • ••- .1• f: - •. 1 1
itigation questioning or .1 . :31 !1 f : the validity of i Agreement or 1 of t --underlying
)rdfimces, resolutions,or Council Y• • 1 authorizing Il - and the Owtier shall• " entitled to
ntervene in said lifigation,
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arising under state law under this Agreement shall be the State District Court of Denton County, Texas.
and • i - Ovner. Furthermore, the parties hereto V • :• • - and agree that the doctrine of respondent
superior f not applybetween the City and the Owrier, nor between, the City and any officer, tl :r •
member, agent, employee, 1• or invitees of the Owner.
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Lecessary to tins Agreement purniant to the procedures set forth in Title I 11, Chapter 312, of the Code.
TAX ABATEMENT OBLIGATIONS
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mut or prevent anyof t other taxing etrtities named 1 :• i - - f from providing tax a•. - 11 :;• • the Owrietj
EXECUTED this day of , 20005 by the City.
EXECUTED this day of , 2000, by Owner.
ATTEST:
Rosalie Chavez, City Secretary
City Attorney
V6Talmart Stores East Inc.,
a Texas corporation
CITY OF SANGER
Tommy Kincaid, Mayor
By:
Name:
Title:
uAjJUjjbXjjMMCLI lye& I M11
STATE OF TEXAS
COUNTY OF DENTON
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this
day personally appeared Mayor of the City of Sanger, Texas, a municipal corporation,
known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to
me that the same was the act of the said City of Sanger, Texas, a municipal corporation, that he was duly
authorized to perform the same by appropriate resolution of the City Council of the City of Sanger, and
that he executed the same as the act of said City for the purpose and consideration therein expressed and
in Ala tharain ctntarl
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of , 2000.
Notary Public, State of Texas
My commission expires
EXHIBIT A
CITY OF SANGER GUIDELINES AND CRITERIA
FOR TAX ABATEMENT TO
QUALIFIED COMMERCIALANDUSTRIAL PROJECTS
The City of Sanger 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 of the tax base and expansion and diversification of the local economy, the
City of Sanger will, on a case -by -case basis, give consideration to providing tax abatement, pursuant to
the Property Redevelopment and Tax Abatement Act, V.T.C.A., Tax Code, Sections 312.001 through
Z 1'f 'N10 no Fr^rn +;,, +n +;,, omsmrlcui no a C&im„la+inn fnr arnnnmin arrnx4b nnrl diversifcatinn in
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Sanger. Consideration will be given to both new facilities and structures and for the expansion or
modernization of existing facilities and structures. Priority consideration will be given to those projects
that result m little or no additional cost to the City and/or projects that create greater than 50 new jobs.
Proposed abatement agreements will be considered in accordance with the guidelines, criteria and
procedures outlined in this document. Nothing herein shall imply or suggest that the City of Sanger is
under any obligation to provide tax abatement to any applicant. All applicants shall be considered on a
case -by -case basis.
312, the city of Sangermay grant abatement • 1 the incremental- a/ . a particularproperty t1 ,
t is
improved pursuant to a specificdevelopment proposal, 1 .1 meets 1 - economic goals and objectives
the City, The abatement• • only to the incremental1 1 valuation.The abatementalso
apply to tangible personal property located m. the reinvestment zone after the execution of an abatement
agreement,including inventory 1• supplies.
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't-ropUlly ' :• - - • • 11 all , i •I WL ' • . all a1 A", / ' • i • - • 1 1 111 ai • / ` •
=nomic development purposes. i I the
reinvestment ai • i " there -will• ' permitted • , " 11 ai •
1" increase1 value I real and tangible personal property, inventory andsupplies•
certificated • . - 11 GI be offered • / within- designated i 1/1 GI 1 1 - 1 •
only to those industries identified in Section 111, Definitions, "Eligible Enterprises".
Any request for tax abatement must involve a development project, excluding land, with either (i) a
minimum incremental increase in value of $2 million dollars or (ii) a minimum cost of $2 million
dollars.
The project must have high visibility, image impact or be of a significantly higher level of
development quality than that which currently exists in the City.
The project must generate a higher concentration of employment potential than would
otherwise be achieved.
Taxpayers desiring to enter into an abatement agreement with the City of Sanger must file an
application for tax abatement with the City, provided, however, that with respect to any
abatement of one year or less in duration and one percent or less in abatement amount, no
application is required. The application must address the factors listed below.
It is understood the information provided will be, out of necessity, estimates only. The applicant
should endeavor to provide the most accurate estimates possible based upon available
information. The applicant may be requested by the City to describe the logics/methodologies
utilized to supply supporting documentation.
Number of new jobs created in Sanger.
Identify and describe the kind, number and location of all proposed improvements to the
property, as well as the land area and cost, and discuss the development schedule of the
proposed improvements. In addition, the City may request the square footage of the proposed
project.
Identify the infrastructure construction that will be required to serve the proposed project and
the estimated cost of said construction.
FISCAL IlViPACT
Amount of direct property and sales tax generated.
Cost to the City of Sanger to provide municipal services to the proposed project.
Rezoning and platting/replatting required.
Impact on the City of Sanger.
Impact on local school districts.
Impact on all other taxing entities with jurisdiction over the property subject to the proposed
abatement agreement.
The criteria outlined in this section will be used by the City staffto determine whether or not to
recommend to the City Council that it is in the best interest of the City of Sanger and other
affected taxing entities that tax abatement be offered to a particular applicant. Specific
considerations will include the degree to which the individual project furthers the goals and
objectives of the community, as well as the relative impact of the project on the community.
I11 � �Ia1M �
"Eligible Enterprises" shall mean commercial or industrial property, facilities or enterprises that
show high promise of creating new jobs and positive economic spill -over effects beneficial to
the City.
► 11� ' 1 1�.y
After following and complying with all statutory and other requirements and after a
determination is made that a tax abatement agreement should be entered into with the
applicant, the vahte and term of the abatement will be determined by the following guidelines:
11 1 1: 1 I 1' Mmilan
1. The project must be an eligible industry as defined in Section III. Definitions.
2. The investment must involve a project, exchxding land, with either (i) a minimum
incremental increase in value of $2 million or (ii) a minimum cost of V million.
3. The project must comply with all criteria defined in Section II above.
1 . The rate of tax abatement with respect to any tax abatement agreement shall not exceed
SO% of the value of real property and shall not exceed 50% of the value of tangible
personal property other than inventory and supplies (but including inventory and supplies
of certificated air carvers) eligible for tax abatement under Chapter 312 of the Texas Tax
Code.
2. To determine if the project meets the minimum eligibility requirement, the applicant will
certify to the City the cost or value of the property for which the abatement is
requested.
3. The tax abatement period shall not exceed ten (10) years.
4. Any tax abatement granted a project will become effective on January 1st of the year
following the issuance of a Certificate of occupancy (CO) for the new facilities unless
otherwise specified in the tax abatement agreement. The total acreage of the project
shall be assessed at 100 percent market valuation upon execution of the abatement
agreement, unless otherwise addressed in the tax abatement agreement.
S Tf A nrniect is nit cntxmleted as specified in the tax abatement agreement, the City has
the right to cancel the abatement agreement and abated taxes shall become due to the
City and other affected taxing units as provided by law.
Any person, partnership, organization, corporation or other entity desiring that the City of
Sanger consider providing tax abatement to encourage location of operations within the City
shall be required to comply with the following Procedural guidelines. Nothing within these
guidelines shall imply or suggest that the City of Sanger is under any obligation to provide tax
abatement in any amount or value to any applicant.
Preliminary Application Steps
A. Applicant shall submit an "application for tax abatement." However, with respect to any
abatement of one year or less in duration and one percent or less in abatement amount,
no application is required.
B. Applicant shall address all the factors required to be addressed in Section II above.
C. City may request applicant to provide substantiation of the economic feasibility of the
overall project to assist in determining the long-term benefit to the City.
D. A complete legal description of the property shall be provided.
E. Applicant shall complete all forms and information detailed in items A through D above
and submit them to the City of Sanger, P. 0. Box 1i29, Sanger, Texas 76266.
Application Review Steps
G. All information in the application package detailed above will be reviewed for
completeness and accuracy. Additional information may be requested as needed.
H The application may be distributed to the appropriate City departments for internal
review and comments. Additional information may be requested as needed.
I. Copies of the complete application package and staff comments will be provided to the
City Council.
Consideration of the Application
J. The City Council will consider the application at meetings conducted pursuant to the
Open Meetings Act and the Property Redevelopment and Tax Abatement Act.
Additional information may be requested as needed.
u 'TAW %rite (rrnmM� Yr�av (:nnett�P.T a YACn�17i'1Ml (;A��71tQ' A 117)�'111C I10ATIY1� to C(111i1d8T
establishment of a reinvestment zone.
L. The City Council may hold the public hearing and determine whether the creation of the
reinvestment zone would contribute to the retention or expansion of primary
employment or would attract major investment in the zone and would contribute to the
economic development of the City.
M. The City Council may consider adoption of an ordinance designating the axea described
in the legal description of the proposed project as a commercial/industrial reinvestment
zone for tax abatement.
N. The City Council may consider adoption of a resolution that approves the terms and
conditions of an agreement between City and the application, and governs the provision
of the tax abatement. At minimum the agreement shall include the following:
1. General description of the project;
2. Amount of the tax abatement;
3. Duration of the abatement;
4. Type, number and location of planned improvements;
5. Any specific terms and conditions to be met by the applicant; and
G. Any provisions required by law.
O. The governing bodies of any other applicable taxing units may consider ratification of
and participation in the tax abatement agreement between the City of Sanger and the
applicant.
P. Should the terms of the agreement not be satisfied, the tax abatement shall be subject to
cancellation as provided in the tax abatement agreement, and all abated taxes shall be paid
to the City of Sanger and all other taxing jurisdictions participating in the tax abatement
agreement as provided by law. If a project granted a tax abatement ceases to operate or is
no longer in conformance with this policy statement, the tax abatement agreement shall
not remain in effect for the period of time during which the project is not operating or is
r_
not in conformance. The City of Sanger may negotiate with the recipient of a tax
abatement to waive the recapture provisions or to terminate the agreement.
The City of Sanger reserves the right to verify the applicant's creditworthiness prior to
granting a tax abatement and to review the financial condition of the Project during the
term of the abatement. The City of Sanger also reserves the right for a representative to
inspect the facilities of the applicant during the term of the abatement and to verify the
information provided in the tax abatement agreement. Provisions to this effect shall be
incorporated into the agreement.
VI. EFFECT OF SALE, ASSIGNMENT OF
LEASE OF PROPERTY
No tax abatement rights maybe sold, assigned, or leased unless otherwise specified in the tax
abatement agreement. Any sale, assignment or lease of property which is not permitted in the
tax abatement agreement results in a forfeiture of all tax abatement rights as to the property
sold, assigned or leased, unless the City agrees to ratify the transfer.
ORDINANCE NO.
AN ORDINANCE AMENDING TI-lr� CODE OF THE CITY OF BANGER, TEXAS (1992),
AS AMENDED, BY DESIGNATING A CERTAIN AREA AS THE SANGER TAX
ABATEMENT REINVESTMENT ZONE NO. 1; PROVIDED THAT THIS ORDINANCE
SHALL BE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING
FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING FOR AN EFFECTIVE
DATE.
WI�REAS, the City Council of the City of Sanger, Texas ("City"), desires to promote the
development or redevelopment of a certain contiguous geographic area within its jurisdiction by the
creation of a reinvestment zone for commercial/industrial tax abatement, as authorized by
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WHEREAS, the City has elected to become eligible to participate in tax abatement;
)roperty within a reinvestment•1" may be eligible for, II- abatement, :il • e•' to the
3roveming body of 1 - municipality esta• 1 i • by .. • III • / the guidelines ai • criteria forsuch
• 1 • :;i i • i • :SI • . " 11 mil . !• �' 11 �I i 1 ' • 1 ' • • - • • • -
hat is located in the reinvestment zone;
WHEREAS, a public hearing in a regularly scheduled meeting before the City Council was held
at XXX p.m. on the XXXXXXKXXXX, 2000, such date being at least seven (7) days after the date of
publication of the notice of such public hearing as required by the Texas Tax Code;
:�11pVippIr .1• bpieWk,• 01 UOMMLi- Ulfa&JAILIFIAI luo• ••• �•, IiIIIIW�Wq 1' •• 1•. • i'
proposed 1 tll :;1 • 1 - mifieffier or part of the territorydescribed in this ordinance s1 • f • "
included 1 such proposed 1 tll :!1 • 1 ' and the concept of tax abatement.
NOW THEREFORE, BE IT ORDAINED BY TIC CITY COUNCIL OF THE CITY OF
BANGER, TEXAS:
SECTION 1.
1 . 1 - . / i • . • - • 1 - • / • - • • it �:.. �• 1 - -. . 11 11 . �. •
. • •� 1 ! • • 1 • / 1 •. � •' i - � �:/ A .• ' • . all aii ' :i i tli �1 • 1 -
Ahch shall read as follows:
SECTION 440 TAX ABATEMENT REINVESTMENT ZONES DISTRICT TAX ABATEMENT
REINVESTMENT ZONE NO. 1
i . / - r 1 . AW1f • 1 :. i 1 - . - . it . - . 1 t N i . 1 i - - . t 11 . 1 •
declared to be true and correct.1' City, after conducting such hearings It having heard such evidence
and • • ii • 1 has made i - 1 ' following findings 1 • determinations based • 1 the testimony .0 • evidence
:)resented •
(a) That a public hearing on the designation of Tax Abatement Reinvestment Zone No. 1 has
been properly called, held and conducted and that notices of such hearings have been
published as required by law and delivered to all taxing units overlapping the territory
inaiAp thn nrnnnaPrl rainvachtiPnt 'nnP and
• 1 . • - t t I I • , i 1 ' - 1 :+ • 11 :YI t l 1 . • - • • 11 • . - • " • : • 1 i •
"X Wbich is attached hereto and made a part hereof, and
i. 1- -.Ail • 1- - 1 111111 i1- • t1111- 1• •. :Iii �:1 1
boundaries t. described / Exhibit1 benefits to the City and the
improvements sought • - and practicaland would • - a benefit -.1 • the land to be
included in the reinvestment zone .1• to the City after the expiration of u
abatement ag:- it ei and
creation of a reinvestment zone as set forth in V.T.C.A. Tax Code, Section 312.202, as
amended, in that it is reasonably likely as a result of the designation to contribute to the
retention or •• . 1 i 1 of primary employment or • attract major • 1 111 / in the
•i' that would be a benefit to the property and that would contribute to the : •1.11
development of the
� '� � - dal . • • / • • 1 -
: • • 1 11 1 t !1/ 1 • 1 - 1 - • - i :� •11 ::1 • 1 - • • 11 11 - M / •I
abatement encompassing the area described 1 Exhibitattached hereto et• i • such reinvestment
•/" is hereby designated .1• shall hereafterbe designated as Tax Abatement 'll :'.11 - i .. Veit Zone No.
City of If- The designation of 1 t1' expires 2 years after the effective date of /
is
ordinance and may be renewed for periods not to exceed 2 years.
44.3. Eligibility for Tax Abatement.
The eligibility for tax abatement of property located in Tax Abatement Reinvestment Zone No. 1,
City of Sanger, Texas, will be governed by the City of Sanger Guidelines and Criteria for Tax Abatement
to Qualified Commercial/Industrial Projects.
44.4. Effective Date.
This article shall take effect on 2000.
SECTION 2.
This ordinance shall be cumulative of all provisions of ordmances and of the Code of the
City of Sanger, Texas, as amended, except where the provisions of this ordinance are in direct
conflict with the provisions of such ordinances and such Code, in which event conflicting
provisions of such ordinances and such Code are hereby repealed.
SECTION 3.
It is hereby declared to be the intention of the City Council that the sections, paragraphs,
sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause,
sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not
affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this
ordinance, since the same would have been enacted by the City Council without the
incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph
or section.
SECTION 4.
The City Secretary of the City of Sanger is hereby directed to engross and enroll this
ordinance by copying the caption and effective date in the minutes of the City Council and by
filing the ordinance in the ordinance records of the City.
SECTION S.
This ordinance shall take effect and be in full force and effect from and after its passage,
Mu it is so ordained.
CITY SECRETARY, ROSALIE CHAVEZ
CITY ATTORNEY
DATE:
EFFECTIVE: