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HomeMy WebLinkAboutResolution No. 01-04 ORI$1 AL CITY OF THE COLONY, TEXAS RESOLUTION NO. O / - c.~4 A RESOLUTION OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT AGREEMENT BY THE CITY OF THE COLONY AND PIZZA INN, INC.; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the Mayor of the City of The Colony is hereby authorized to execute a Tax Abatement Agreement by the City of The Colony and Pizza Inn, Inc. Section 2. That a true and correct copy of the Tax Abatement Agreement is attached hereto and incorporated herein. Section 3. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED by the City Council of the City of The Colony, Texas this 15th day of January, 2001. APPROVED: William W. Manning, Mayor ATTEST: Patti A. Hicks, TRMC, City Secretary PIZZA INN, INC. TAX ABATEMENT AGREEMENT STATE OF TEXAS § COUNTY OF DENTON § This Tax Abatement Agreement ("Agreement") is entered into by and between the City of The Colony, Texas ("City"), a Home Rule City and municipal corporation of Denton County, Texas, duly acting herein by and through its Mayor, and Pizza Inn, Inc. (hereinafter referred to as "Owner"), a Missouri corporation, acting by and through its authorized officers for the purposes and considerations stated below (the City and the Owner are hereinafter referred to together as the "Parties"). WITNESSETH: WHEREAS, on or about ~x.~, 200~, the ity Council of the City of The Colony, Texas, passed Ordinance No. ~ (the "Zone"), for commercial 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, the City has adopted guidelines and criteria for tax abatement pursuant to Section 312.002 of the Tax Code by passage of Resolution No. 93-26 on the 14th day of October, 1993, (the "Tax Abatement Guidelines") attached hereto as Exhibit "A" and made a pan 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 economic and employment base of the area, it is in the best interests of the taxpayers for the City to enter into this Agreement in accordance with the Ordinance, the Tax Abatement Guidelines, and the Tax Code; and WHEREAS, the Owner's relocation and expansion efforts described herein will create permanent new jobs in the City; and WHEREAS, the City Council finds that the contemplated use of the Property (hereinafter defined), the contemplated improvements to the Property 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 PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMI~Pizza Inn - Tax Abatement Agmt. (Client copy).doc Page 1 compliance with the Tax Abatement Guidelines, the Ordinance adopted by the City, the Tax Code, and all other applicable laws; and WHEREAS, the City Council finds that the improvements sought are feasible and practicable and would benefit 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 subject to this Agreement are located. NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, including the expansion of primary employment, 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, the Parties agree as follows: I. DEFINITIONS 1. Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: A. "Property" shall mean the Land and any improvements and personal property, excluding inventory and supplies, which are added to the Land subsequent to the execution of this Agreement. B. "Improvements" shall mean the contemplated improvements described herein located on the Property 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 Property other than inventory. C. "Total Assessed Tax Value" shall mean the total assessed taxable value on January 1 of any tax year of the Property, and Improvements located on the Property, and the tangible personal property, excluding inventory, located on the Property. D. "Base Year Tax Value" shall mean the Total Assessed T~ Value for the year in which the Tax Abatement Agreement is executed (200~).~s~ E. "The First Year of the Tax Abatement Agreement" shall be 200~, unless otherwise agreed to by the Parties. PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMP~Pizza Inn - Tax Abatement Agmt. (Client copy).doc Page 2 F. "Certified Appraisal Value" means the appraised value of the Property as certified by Denton County Appraisal District as of January 1 of each year in which the tax abatement is granted. G. "Current Year Tax Value" means the Total Assessed Tax Value for the year in which the tax abatement agreement is executed. II. GENERAL PROVISIONS 1. Owner will develop (or under contract to purchase) that parcel of land described in Exhibit "B" which is attached hereto for all purposes (the "Land"), which Property is located within the city limits of the City and within the Zone. 2. The Land is 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 Property is not owned or leased by any member of the City of The Colony City Council or any member of the City Planning and Zoning Commission, or any member of the governing body of any taxing units joining in or adopting this Agreement. 5. All improvements shall conform to the City's Comprehensive Zoning Ordinance, as amended, and the City's Comprehensive Plan, and all other applicable ordinances and regulations. III. TAX ABATEMENT AUTHORIZED 1. 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. 2. Subject to the terms and conditions of this Agreement, the City hereby grants an abatement of ad valorem taxation on real and personal property of seventy percent (70%) for a period of five (5) years. The actual percentage of value and taxes subject to abatement for each year of this Agreement 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 this Agreement is executed (base year: 200~). The tax abatement agreement for tangible personal property may only apply to the personal property added to the real property after this Agreement is executed. Taxable PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMP~Pizza Inn - Tax Abatement Agmt. (Client copy).doc Page 3 value of property for each year of abatement less base year taxable value equals excess taxable value subject to the abatement percentage above. 3. The period of ta~,a~atement herein authorized shall be fivA~ (5) years, beginning on January 1,200[ lfi'd~continuing until December 31,200~, ~'l'~s otherwise terminated or extended as set forth herein or amended by the Parties pursuant to the Texas Tax Code. 4. During the period of tax abatement herein authorized, Owner 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. IV. IMPROVEMENTS 1. Owner has purchased or will purchase the Property and agrees to construct improvements to the Property for corporate offices and a distribution facility, consisting of 40,000 square feet of corporate offices for its national headquarters, and 100,000 square feet for its distribution and training center. The approximate locations of such Improvements are shown on the Site Plan of the Property 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 Property, but said Improvements are a condition precedent upon initiation of tax abatement pursuant to this Agreement. 2. Subject to the terms and conditions of this Agreement, Owner is entitled to an abatement of ad valorem taxation on its real property and personal property of seventy percent (70%) for a period of five (5) years. V. CONSTRUCTION Of IMPROVEMENTS 1. As a condition precedent to the initiation of tax abatement pursuant to this Agreement, Owner shall diligently and faithfully, in a good and workmanlike manner, pursue the completion of the contemplated improvements before December 31,2001, as good and valuable consideration for this Agreement. All construction of the Improvements shall be in accordance with all applicable state and local laws, codes, and regulations (or valid waiver thereof); provided that Owner shall have such additional time to complete and maintain the Improvements as may be required in the event of "Force Majeure" while Owner 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 Owner including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, adverse weather, government or de facto governmental action (unless earned by acts or omissions of Owner), fire, explosion, flood, strike, work slowdowns or stoppages. PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMPLPizza Inn - Tax Abatement Agmt. (Client copy).doc Page 4 2. Owner agrees to maintain the Property and the Improvements during the term of this Agreement in accordance with all applicable state and local laws, codes, and regulations. 3. The City, its agents and employees shall have the right of access to the construction to inspect the Improvements at reasonable times and with reasonable notice to Owner and in accordance with Owner's 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). VI. GENERAL REQUIREMENTS 1. Construction plans for the Improvements constructed on the Property 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. 2. Owner agrees from the date a certificate of occupancy is issued until the expiration of this Agreement to continuously operate and maintain the Property as a business center, or any other activity consistent with local zoning, in compliance with all applicable federal, state and local laws. 3. After completion of the improvements, Owner 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. 4. The Property 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. VII. DEFAULT: RECAPTURE OF TAX REVENUE 1. In the event Owner fails in performance of the requirements of this Agreement by: (i) failing to complete the Improvements in accordance with this Agreement or in accordance with applicable State or local laws, codes, or regulations; (ii) having any delinquent ad valorem or State sales taxes owed to the City (provided Owner retains the right to timely and properly protest such taxes or assessment); or (iii) breaching any of the terms and conditions of this Agreement, then Owner, after the expiration of the notice and cure periods described in Paragraph 2 below, shall be in default of this Agreement. As liquidated damages in the event of such default, Owner shall, within sixty (60) days after demand, 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 Code, as PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMPLPizza Inn - Tax Abatement Agmt. (Client copy).doc Page 5 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 Owner, its successors and assigns and shall constitute a tax lien on the Property itself and shall become due, owing, and shall be paid to the City within sixty (60) days. 2. Upon breach by Owner of any obligations under this Agreement, the City shall notify Owner in writing. Owner 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 Owner 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. 3. If Owner fails to cure the default within the time provided as specified in Paragraph 2 above or as such time period may be extended, then the governing body of the City, at its sole option, shall have the right to terminate or modify this Agreement by written notice to Owner. 4. Upon termination of this Agreement pursuant to Paragraph 2 above, 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 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 payback 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 Owner with respect to the Property, as determined by the Denton County 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. VIII. ANNUAL APPLICATION FOR TAX EXEMPTION 1. It shall be the responsibility of Owner, 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. IX. ANNUAL CERTIFICATION 1. It shall be the responsibility of the Owner to certify annually to the City and to the governing body of each taxing unit that the Owner is in compliance with each applicable term of this Agreement. PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMP~Pizza Inn - Tax Abatement Agmt. (Client copy).doc Page 6 X. SUCCESSORS AND ASSIGNS 1. This Agreement shall be binding on and inure to the benefit of the Parties to it and their respective heirs, executors, administrators, legal representatives, successors, and assigns. This Agreement may be assigned with the consent of the City. XI. NOTICE 1. 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: If intended for Owner, to: Pizza Inn, Inc. 5050 Quorum Drive Suite 500 Dallas, TX 75240 Attn: Ronald W. Parker, President with copy to: If intended for City, to: City of The Colony City Hall 6800 Main Street The Colony, Texas 75056 Attn: Patti Hicks, Interim City Manager, City of The Colony with copy to: Gordon R. Hikel, City Attorney Hayes, Coffey & Berry, P.C. 1710 Westminster P.O. Box 50149 Denton, Texas 76206 XlI. CITY COUNCIL AUTHORIZATION 1. This Agreement was authorized by resolution of the City Council authorizing the Mayor to execute this Agreement on behalf of the City. PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMP~Pizza Inn - Tax Abatement Agmt. (Client copy).doc Page 7 XIII. ESTOPPEL CERTIHCATE 1. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, which if requested will be addressed to Owner or a subsequent purchaser or assignee of Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or, if default exists, the nature of default and action which should be undertaken to cure the default), the remaining term of this Agreement, the levels of abatement in effect, and such other matters reasonably requested by the party(ies) to receive the certificate. A party providing a certificate must provide the certificate to the party requesting the same within thirty (30) days of receipt of a written request for said certificate. XIV. SEVERABILITY 1. 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. XV. APPLICABLE LAW 1. 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 Denton County, Texas. This Agreement is performable in Denton County, Texas. XVI. COUNTERPARTS 1. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. XVII. ENTIRE AGREEMENT 1. 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. Except as otherwise provided herein, this Agreement cannot be modified without written agreement of the Parties to be attached to and made a part of this Agreement. 2. The provisions of this Agreement are hereby declared covenants running with the Property and are fully binding on all successors, heirs, and assigns of Owner 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 thereof, thereby PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMPLPizza Inn - Tax Abatement Agmt. (Client copy).doc Page 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. XVIII. RECORDATION OF AGREEMENT 1. A certified copy of this Agreement shall be recorded in the Deed Records of Denton County, Texas. EXECUTED in duplicate originals this the ~ day of 2001. CaT,OF THE C~ONY, TEXASPIZZA I~, INC. By: ~tx~~~' ol .~Jl-~~y: ~'~Q ~. APPROVED AS TO FORM: ~y of The Colony ' PIZZA INN, INC. TAX ABATEMENT AGREEMENT C:\WINDOWS\TEMP~Pizza Inn - Tax Abatement Agmt. (Client copy).doc Page 9 · ':' "'- ' ' ORIGINAL :.., EXHIBIT A COlONy, T XXS SOLUT Or A ~SOL~ION OF ~E CI~ CO~CIL OF ~E CI~ OF ~E COLO~, ~S ~MENDING GUIDELI~S ~D CRI~R~ GO~ING T~ ~ATEME~ AG~EME~S AS EST~LISHED BY ~SOL~ION 90-11 ~PRO~D BY THE CI~ CO~CIL ON ~E 2ND DAY OF ~RIL, 1990; BY ADDING A ~RSION~Y C~USE ~E~S, the enhancement of the local economy is in the best interest of the citizens of ~e Colony, Text; and ~E~AS, offering certain economic development incentives may encourage prospective businesses and companies to locate in ~e Colony, Texas, or existing businesses and compaMes to e~and; and ~E~AS, ~e establishment of specific criteria, ~idelines and procedures are necessa~ to effe~ively and fairly administer the econo~c development incentives; ~d ~E~, State ~w requires the adoption of criteria ~d ~idelines governing the establishment of t~ abatement a~eements: NOW, ~E~FO~, BE IT RESOLED BY ~E CI~ CO~CIL OF ~E CI~ OF ~E COLO~, ~S: Section 1. ~at ~1 of the above premises ~e found ~d detc~ed to be ~d co~ect ~d ~e inco~orated into the body of this Resolution ~ if copied in theft entire~. ~ ~e Ci~ of ~e Colony, Text, pursuit to the Prope~ Redevelopment and T~ Abatement Act,(~icle l~6f, Section 2A(a), Vemon's Tcx~ Ci~ Statutes, ~ mended), hereby establishes ~e Comprche~ive Poli~ Statement for Econo~c Development Incentives, which is attached hereto ~ ~ibit "A" and inco~oratcd hereM for ~I pu~oses. ~ ~e ~tefia ~d ~idelin~ established ~thin the Comprehe~ive PoH~ Statement for Econo~c Development Incentives, ~ it e~ or may be mended, sh~ govern all t~ abatement a~ccmenu. Willi~ W. Ma~ng, Mayor ATTEST: Patti A. Hicks, CMC/AAE, City Secretary APPROVED AS TO FORM: Pete Eckert, City Attorney ORIGINAL EXHIBIT "A' CITY OF THE COLONY POLICY STATEMENT FOR ECONOMIC DEVELOPMENT INCENTIVES I. GENERAL PURPOSE AND OBJECTIVES The City of The Colony 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 of The Colony will, on a case-by-case basis, give consideration to providing tax abatement as a stimulation for economic development in The Colony. All applications for tax abatement must be for commercial and/or industrial improvements. Tax abatement applies to both new facilities and structures and for the expansion or modernization of existing facilities and structures. No type of residential developments will be considered for tax abatement. Tax abatement will not be ordinarily considered for projects which would be developed without such incentives unless it can be demonstrated that higher development standards or other development and community goals will be achieved through the use of the abatement. It is the policy of the City of The Colony that said consideration will be provided in accordance with the procedures and criteria outlined in this document. Nothing herein shall imply or suggest that the City of The Colony is under obligation to provide any incentive to any applicant. Ail applicants shall be considered on a case-by-case basis. II. MINIMUM STANDARDS FOR TAX ABATEMENT A. Project does not have any negative environmental impacts on the community (e.g.; significant pollution or hazardous waste). B. Project stimulates local employment and/or commercial activity which will benefit existing businesses and which will not compete with existing businesses to the extent of being a detriment to the local economy as a whole. C. Project will serve as a catalyst or magnet to attract or retain other high quality industrial/business development. IlL CRITERIA FOR TAX ABATEMENT The m/nimum, objective and subjective criteria outlined in this policy will be used to determine whether it is in the best interest of the City to provide tax abatement to a particular applicant. The degree to which the specified project meets the purposes and objectives of the City, the relative impact of the project, and the value of other incentives w/Il all be used to determine the total value and duration of the tax abatement provided to any applicant, subject to the following guidelines: No tax abatement will be granted in an amount which exceeds the estimated costs to the City for support of the project, nor will any abatement be for more than a max/mum of 10 years in duration. As a general rule, no tax abatement will exceed 30% for 10 years. IV. OBJECTIVE CRITERIA A. How many jobs will be created by the project? B. What will be the average salary? C. How much annual payroll will be created by the project? D. What is the net tax base valuation (real and personal property) that will be added by the project? E. What is the projected annual sales tax that will be directly generated by the project? V. SUBJECTIVE CRITERIA In addition to the objective criteria for which specific values can be assigned, several additional considerations must be evaluated. The applicant must respond in written narrative format, with backup documentation/figures to those items listed l:~low: A. What types and values of public improvements, if any, will be made by the applicant? B. To what extent will the project compliment and/or compete with existing businesses? Maximum Maximum Value of Years Percent C. Does the project pose any negative environmental, operational, visual/image, style impacts? (i.e.; pollution, noise, traffic congestion, etc.) D. What is the financial and opera, ting stability capacity, corporate image, and outlook of the applicant? How long in business? E. Is the applicant willing to commit to a definite construction/completion schedule for the project and to define exactly what will be built? (i.e.; what will be on the tax roll and when) F. Is the project a relocation/consolidation from elsewhere, or the start-up of a totally new operation? VI. TYPES OF INCENTIVES AVAILABLE It is the policy of the City of The Colony to customize the provisions of economic development incentives on a case-by-case basis. This individualized design of a total incentive package is intended to allow maximum flexibility in address/ng the unique concerns of each applicant while enabling the City to better respond to the changing needs of the community. Consideration will be given to providing any type of economic development incentive not prohibited by State or Federal law including but not limited to: tax abatement, tax increment financing, and no-cash=value benefits, as well as participation in infrastructure and waiver of fees. The provision of any incentive will be subject to the procedural and other requirements outlined in this document as well as those mandated by State or Federal law, and by other actions of the City Council of the City of The Colony. VII. VALUE OF INCENTIVE PROVIDED The subjective criteria outlined in Section V will be used by the City Council in determining whether or not it is in the best interests of the City to recommend 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. Once a determination has been made that a tax abatement would be offered, the value and term of the abatement will be determined by referencing the following table: 9 Structure/Personal Property of of ~A.0_.I~Io..~L._ Abatemenl~ Abatement $125,000,000 10 30% 110,000,000 9 30% 95,000,000 8 30% 80,000,000 7 30% 65,000,000 6 30% 50,000,000 5 30% 25,000,000 4 30% 15,000,000 3 30% 3,000,000 2 30% In order to attract businesses requiring a lower structure value than noted on the references table, the City Council, at its discretion, may, on a case-by-case basis, recommend an abatement which may not specifically comply with the referenced values and terms. VIII. PROCEDURAL GUIDELINES Any person, organization or corporation desiring that the City of The Colony consider providing economic development incentives to encourage location or expansion within the city limits of The Colony shall be required to comply with the following procedural guidelines. Nothing within these guidelines shall imply or suggest that the City of The Colony is under obligation to provide any incentive to any applicant. Disclosure of the terms to be presented to a person, organization or corporation desiring economic development incentives, and that qualifies for such incentives, shall be made to the full Council in a Closed Door Session, before the terms are presented to the person, organization or corporation making the request. Prelimina~_ Application Steps A. Applicant should complete the following attached forms: 1. Application for Economic Development Incentive 2. Economic Development Incentive Objective Criteria Worksheet. B. Applicant should address all subjective criteria listed in Section V above in letter format. lO C. Applicant should provide a plat showing the precise location of the property, all roadways within 500 feet of the site, and all existing zon/ng and land uses within 500 feet of the site. D. A complete legal description shall be provided. E. Applicant should complete all forms and information detailed in Items A through D above and submit to the City Manager. Application Review Steps F. All information submitted as detailed above will be reviewed for completeness, accuracy and the rationale for projections made. Additional information may be requested as needed. G. The application will be distributed to the appropriate departments for internal review and comments. Additional information may be requested as needed. H. The application will be reviewed in light of the criteria for considering economic development. I. Copies of the complete application package will be provided to the other appropriate taxing entities. Consideration of the Application $. City Council will discuss the application and all staff comments at a regular work session. If needed, a City Council Committee will be appointed to meet with the applicant. K. At a subsequent regular City Council meeting all necessary legal documents will be considered for approval following evaluation of all relevant staff and City Council Committee recommendations and reports. L. If the economic development incentive under consideration is tax abatement, additional steps, including a public hearing, must be incorporated into the process. These procedures are mandated by State law and are detailed in the Property Redevelopment and Tax Abatement Act (Article 1066f, Vernon's Texas Civil Statutes). 11 IX. EXECUTION OF AGREEMENTS Should the City Council determine that it is in the best interests of the City of The Colony to provide economic developm, ent incentives to a particular applicant, a resolution shall be adopted declaring that under the guidelines and criteria established herein, the application is eligible for economic development incentives. The resolution shall further authorize the City Manager to execute a contract with the applicant governing the provision of the incentives. Any agreement so adopted must include at least the following specific items: Description of the type of incentive provided Amount of the incentive Method for calculating the value of the incentive Duration of the incentive Legal description of the property Type, number and location of planned improvements X. CONFIDEN'I~AL_rTY QF PRQPRIETARy INFORMATION Information that is provided to the City of The Colony in connection with an application or request for tax abatement in accordance with the above criteria and guidelines and which describes the specitic process or business activities to be conducted or equipment or other property to be located on the property for which the tax abatement is sought is confidential and not subject to public disclosure until the tax abatement agreement is executed. The information in the custody of the City of The Colony after the agreement is executed is not confidential. XI. EVENT OF DEFAULT During the abatement period covered by this agreement, the City may declare a default hereunder by the Owner if the Owner fails to commence construction of the new facility described herein within two (2) years from the date this agreement is executed, fails to construct the facility as described, or refuses or neglects to comply with any of the terms of this agreement, or if any representation mae by the owner in this Agreement is false or misleading in any material respect or the constructed facility fails to meet the economic qualifications of Section II for granting tax abatement. 12 Should the City determine the Owner to be in default of this agreement, the City shall notify the Owner in writing prior to the end of the abatement period, and if such default is not cured within sixty (60) days from the date of such notice (~Cure Period"), then this agreement may be terminated; provided, however, that in the case of a default that for causes beyond owner's reasonable control cannot with due diligence be cured within such sixty-day period, the Cure Period shall be deemed extended if Owner (1) shall immediately, upon receipt of such notice, advise the City of Owner's intention to institute all steps necessary to cure such default, and (2) shall institute and thereafter prosecute to completion with reasonable dispatch all steps necessary to cure same. In the event the Owner allows its ad valorem taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for their protest and/or contest, or if the Owner violates any of the terms and conditions of this Agreement and fails to cure during the Cure Period, this Agreement may then be terminated and all taxes previously abated by virtue of this agreement will be recaptured and paid within sixty (60) days of the termination. In the event the facility contemplated herein is completed and begins producing product or service but subsequently discontinues producing product or service for any reason excepting fire, explosion or other casualty, accident or natural disaster, for a period of one year during the abatement period, then this agreement shall terminate. In the event of termination pursuant to the provisions of this paragraph, the abatement of the taxes for the calendar year during which the facility no longer produces shall terminate, but there shall be no recapture of prior years' taxes abated by virtue of the agreement. The taxes otherwise abated for the calendar year during which the facility no longer produces shall be paid to the City prior to the delinquency date for such year; provided, however, that in no event shall Owner be required to pay such taxes within less than sixty (60) days of the terrnioation. 13 Application for Economic Development Incentives 1. Name of Property Owner: Mailing Address: Telephone Number: 2. Name of Property Owner's Representative or Contact Person fo~ this project: Mailing Addresb: Telephone Number: 3. Property Address: 4. Legal Description of Property to be Developed: (Provide attachment if by metes and bounds) 5. Is the Property Locat~.d in: City of The ColonF ETJ? Lewisville Independent School District Other School District? If so, please indicate: 6. Briefly Describe the Proposed Project: 7. Approximately How Many Square Feet will be Utilized f~ Structure: 8. Type and value of incentive requested: 9. Description of any undesirable environmental pollution wh may be created by your company (including, but not limi to, air, noise, water, or sewer pollution). Please Return Completed Application To: City of The Colony Attention: City Manager 5151 North Colony Blvd. The Colony TX 75056 (214) 625-1756 Application for Economic Development Incentives Page -2- ECONOMIC DEVELOPMENT INCENTIVES OBJECTIVES CRITERIA WORKSHEET A. How many existing jobs will be brought to The Colony (i.e., job transfers) ? B. How many new jobs will be brought to The Colony (i.e., new hires in the local community)? C. How much local annual payroll will be created? D. How much are your projected annual retail sales of taxable goods and services? $ x 1% = $ E-1. How much real property is being transferred from Ag Production Value to Market Value on the property tax rolls? $ E-2. What is the estimated value of new buildings to be constructed? $ E-3. What is the estimated value of personal property (furniture, fixtures and equipment) to be added to the tax roll? $ 3 / ~~~~ ASS~CT NO. ~J~4 ANO BEING PART OF A ~J5.0201, ACRE T~CT' OF ~NO.~ RECORDED IN VOLUME 2548, PAGE 775 OEEO RECOROS OF OENTON COUNt. TEXA~ ANO ~EING MORE PARTICU~Y OE~CRIBEO BY M~ES ANO A~ COMMENCING AT A POINT FOR THE NORTHWEST CORNER OF ~OREMENTIONED . ,/ lflfi. 0201 ACRE TRACT AT THE SOUTH LINE OF P~NO PARKWAY (A 100 FOOT ~ RIGHT- OF- WA  ~HENCE ALONG THE ~OUTH ~!NE ANO A CURVE TO ~E PARKWAY RIGHT ~OR A CENTRA~ ANGLE OF ~'23'~" A RADIUE OF gSO.O0 ~ ANO A CHORO ~RING OF ~OUTH 7~'~4'17" ~ST, ~8~.08 ~ENCE A~ONG ~10 CURVE TO ~HE RIGH~ ANO T~E ~OUTH UNE OF RAR~WAY FOR AN ARC OlST~NCE O~ ~7.~I ~E~ TO A I/~ INCH IRON ,cOUNO FOR ~HE POINT OF 8EGINNING; ~HENCE A~ONC THE ~OU~ UNE OF P~NO PARKWAY ANO A CURVE TO RICH~ ~OR A CENTRAL ANGLE OF 10'~5'50", A ~OlUS O~ ~50.00 FE~ ANO A CHORO 8~RINC OF SOUTH 55'39'29' ~SL I78.21 THENCE AtONG ~lO CURVE TO rile R~GHr ANO THE SOUTH tINE OF P~NO PARKWAY FOR &N ARC OISTANCE OF ~78.47 r~ TO A ~/2 INCH IRON RO0 S~ FOR A R~/ERSE CU~E rO THE [E~ WITH ~ CENT~t ANGtE OF A RAOIUS OF ~050.00 FE~ ANO ~ CHORD 8~RINO OF SOUTH 57'57'56" 280.9 7 THENCE AtONG ~0 CURVE TO THE tf~ ANO ~ SOUrH UNE OF P~NO P~RKWAY fOR ~N ARC OISTANCE OF 14~.7f .cE~ TO A ~/2 INCH iRON ROO .... S~ FOR CORNER: r~ENCE SOUTH 00'23'~0" ~ST. A OlSTANCE OF 93~.3~ FE~ TO A ~/2 ~NCH IRON RO0 S~ FOR CORNER: r~ENCE SOUTH 89'22'~6' WEST, A OlSTANCE OF 450.00 FE~ TO A I/2..!NCH IRON RO0 S~ FOR CORNER; ' FHWNCE NORTH 00'23'~0" W~ST, A Of STANCE OF ~067.26 ,~E=~ rO A ~/2 ;MCH IRON R~ FOUNO FOR CORNER: ~fNCE NORTH 28'57'36" ~ST, A QISTANCE OF ~35.~3 FE~ ~0 ~f POINT OF BEGiNNiNG ANO CONTAINING ~0.98J ACRES OF ~NO. SURVEYOR'S CERTIFICATE Tine survey shown hereon is o true representQtion of {:he pro=e~y os determined by o survey mode on tl~e ground ond under my personol supervision. All v;s~bte ;mprovements =re =s shown. T~ere =re no v~s;bie encro=chments, confHct., or pcotrus;ons, exceot =s shown. ~;s su~e~ conforms tO the Tex=s Bo=r~ of Profess~onol L=n~ Su~eyors' U~n~mum St=nd=r~s of Proctice. OAV~ J. S~ David d. ~rdukan R.P.L.S. No. =613 SEP-2G-2oJ~ 13:82 9S72 862 ?t~9 ~. P.Ol