Ord. 1182 10-11-04ORDINANCE NO. 1182
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, FINDING THAT THE CITY HAS ESTABLISHED GUIDELINES AND
CRITERIA FOR GRANTING TAX ABATEMENT PURSUANT TO
RESOLUTION NO. R2003-121; DESIGNATING AND DESCRIBING A
REINVESTMENT ZONE (TO BE KNOWN AS REINVESTMENT ZONE #12),
IN ACCORDANCE WITH THE PROPERTY REDEVELOPMENT AND TAX
ABATEMENT ACT; FINDING THAT THE IMPROVEMENTS SOUGHT ARE
FEASIBLE AND PRACTICAL AND WOULD BE A BENEFIT TO THE LAND
TO BE INCLUDED IN THE ZONE AND THE MUNICIPALITY AFTER THE
EXPIRATION OF THE TAX ABATEMENT AGREEMENT; AUTHORIZING
THE CITY MANAGER TO SIGN TAX ABATEMENT AGREEMENTS WHEN
APPROVED BY THE CITY COUNCIL; HAVING A SAVINGS CLAUSE AND
A SEVERABILITY CLAUSE; PROVIDING FOR CODIFICATION AND AN
EFFECTIVE DATE.
WHEREAS, Chapter 312 of the Texas Tax Code (the "Property Redevelopment
and Tax Abatement Act") provides for the designation of a Reinvestment Zone or area;
and
WHEREAS, the City Council has, pursuant to Resolution No. R2003-121,
established Guidelines and Criteria for Granting Tax Abatement; and
WHEREAS, a certain area of the City of Pearland meets the criteria and
guidelines heretofore established by the City Council required for designation as a
Reinvestment Zone; and
WHEREAS, the City Council, on September 27, 2004, held a public hearing on
the designation of a Reinvestment Zone and finds that the improvements sought are
feasible and practical and would be a benefit to the land to be included in the zone and
to the municipality after the expiration of an agreement under the Property
Redevelopment and Tax Abatement Act; now, therefore,
ORDINANCE NO. 1182
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That pursuant to the Property Redevelopment and Tax Abatement
Act, the City Council of the City of Pearland, Texas, hereby designates as a
Reinvestment Zone the area described in Exhibit "A" attached hereto and made a part
hereof for all purposes, to be known as Reinvestment Zone #1 2.
Section 2. That the area described in Exhibit "A" is reasonably likely, as a result
of this designation, to contribute to the retention or expansion of primary employment,
or to attract major investment into the zone that would be a benefit to the property
and that would contribute to the economic development of the City, and that the
improvements sought are feasible and practical and would be a benefit to the land to
be included into the zone and to the municipality after the expiration of a Tax
Abatement Agreement as authorized by the Property Redevelopment and Tax
Abatement Act.
Section 3. That the designation of the Reinvestment Zone herein expires five
(5) years from the effective date of this ordinance and may be renewed by a
subsequent ordinance of the City Council for a period not to exceed an additional five
(5) years. That expiration of the original designation shall not affect an agreement
entered into under the provisions of this ordinance.
Section 4. That the City Council hereby authorizes agreements in writing with
the owner of any taxable real estate located within the designated Reinvestment Zone,
2
ORDINANCE NO. 1182
subject to the requirements and optional provisions of the Property Redevelopment and
Tax Abatement Act and the conditions of the Guidelines and Criteria for Granting Tax
Abatement heretofore adopted by the City Council.
Section 5. That any agreement to be entered into under the provisions of this
ordinance must be approved by the affirmative vote of a majority of the members of
the City Council at a regularly scheduled meeting of the City Council. On approval by
the City Council, the agreement may be executed by the City Manager.
Section 6. Savings. All rights and remedies which have accrued in favor of
the City under this Ordinance shall be and are preserved for the benefit of the City.
Section 7. Severability. If any section, subsection, sentence, clause, phrase
or portion of this Ordinance is for any reason held invalid, unconstitutional or otherwise
unenforceable by any court of competent jurisdiction, such portion shall be deemed a
separate, distinct, and independent provision and such holding shall not affect the
validity of the remaining portions thereof.
Section 8. Codification. It is the intent of the City Council of the City of
Pearland, Texas, that the provisions of this Ordinance shall be codified in the City's
official Code of Ordinances as provided hereinabove.
Section 9. Effective Date. This Ordinance shall become effective upon
passage and approval of its second reading.
PASSED and APPROVED ON FIRST READING this the 27th day of
September , A.D., 2004.
3
ORDINANCE NO. 1182
TOM REID
MAYOR
ATTEST:
PASSED and APPROVED ON SECOND AND FINAL READING this the llth day
of October , A.D., 2004.
ATTEST:
YOUIyiG/LORFIN
CITY 1 CRETARY
APPROVED AS TO FORM:
1(( ake
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
4
u.,, LL/ LUU4 U7: 4b Zt114120073
EXHIBIT
PAGE 02
Third Coast Packaging, Inc.
15.823 Acres
STATE OF TEXAS
COUNTY OF BRAZORIA
§
tA
H.T. & B.R.R. CO. Survey
Abstract No. 232
METES AND BOUNDS DESCRIPTION of a 15.623 acre tract In the H.T. & B.R.R. CO. Survey,
Section 3, Abstract No. 232 in Brazoria County, Texas. Said 15.823 acre tract is in Lots 34 and
40 of the W. Zychlinski Subdivision as recorded in Volume 29, P
Deed Records. Said 15.823 acre tract is further described as bed all of . ofa 12 0�0000 acre re County
ct
described in a deed to Third Coast Packaging, Inc. as recorded In Clerk's File No. 97-018096 in
the Brazoria County Clerk's Office, all of a 0.6963 acre tract described in a deed to Third Coast
Packaging, Inc. as recorded in Cleric's File No. 97-018096 in the Brazorla County Clerk's Office
and aft of a 2.9125 acre tract described in a deed to Third Coast
Peckagkig,. as recorded in
Clerk's File No. 00-022591 in the Brazoria County Clerk's ia� sfncmore particularly
described by metes and bounds as follows:
BEGINNING at a 1° iron pipe found at the point of intersection of the south line of Lot 34 of said
W. Zychlinski Subdivision with the east right-of-way line of Mykawa Road (based on a width of
80 feet), said point being the southwest comer of said 0.6963 ace tract and southwest corner of
the herein described tract;
THENCE, North 00.01'41" East, along the east line of said Mykawa Road for a distance 0f
85.00 feet to a P.K. nail set for the most southerly northwest comer of the herein described tract
and the northwest comer of said 0.6983 acre tract, said point being the southwest comer of a
tract of land described in a deed to Pearfand Associates, LP. as recorded in Clerk's File No. 93-
017297 in the 8razoria County Cleric's Office;
THENCE, South 89•5822' East, along the north Tine of said 0.8963 acre tract, same being the
south lase of said Pearfand Associates, L.P. tract for a distance of 466.64 feet to a P.K nail set
for an interior comer of the herein described tract and the northeast comer of said 0.6963 acre
tact, said point being in the west line of the aforementioned 12.0000 acre track
THENCE. North 00601'47° East, along the went line of said 12.0000 acre
tract, same being the
east line of said Pear$and Associates, LP. tract for a distance of 569.44 het to a 5/6-inch iron
rod set in the common lot line between Lot 34 and Lot 40, said point being the northwest comer
of said 12.0000 acre tract and is in the south line of a 13.6155 acre tract described in a deed to
Nguyen
guy Enterprise, L.C.C. as recorded in Clerk's Fife 03-059143 In the Brazoria County Cleric's
THENCE, South 89°5822' East, along the north fine of said 12.0000 acre tract, same being
common line between said Lots 34 and 40 for a distance of 548.34 feet to a 5/8-inch Iron rod
found for an Interior comer of the herein described tract, same being the southwest comer of the
aforementioned 2.9125 acre tract and the southeast comer of said 13.6155 acre tract;
uJ/ cL/ LCJC34 G7: 4b
2814120073
PAGE 03
THENCE, North 13°52'1T West, along the west One of said 2.9125 acre tract, same being the
east line of said 13.6155 acre tract for a distance of 853.58 feet to a 5/8-inch iron rod found In
the north line of said Lot 40 being the most northerly northwest comer of the herein desalbed
tract and is the northwest comer of said 2.9125 acre tract and the northeast corner of said
13.6155 acre tract
THENCE, South 89°5822° East, along the north line of said Lot 40, same being the north line of
said 2.9125 acre tract for a distance of 200.00 feet to a 5/8-inch iron rod set In the west line of
th
e Colorado and Santa Fe Raikoad right-of-way (based on a width of 100-feet) for the
comer of the herein described tract, same being the northeast comer of said 2.9125
acre tract;
THENCE, South 13°52'17° East, along the west line of said Gulf, Colorado and Santa Fe
Railroad right-of-way, at a distance of 653.58 feet pass the common easterly comer of said
2.9125 acre tract and the aforementioned 12.0000 acre tract and continue for a total distance of
1,307.15 feet to a 5/8-inch iron rod found for the southeast comer of said 12.0000 acre tract and
southeast comer of the aforementioned Lot 34;
THENCE, North 89°58'22° West, along the south line of said 12.0000 acre tract, same being the
south Tine of said Lot 34 at a distance of 903.35 feet pass the common southerly comer of said
12.0000 acre tract and the aforementioned 0.6963 acre tract and continue for a total distance of
1,389.99 feet to the POINT OF BEGINNING, containing a computed area of 15.623 acres
(680,534 square feet).
NOTE:
1. The bearings shown hereon are based on the deed to Third Coast Packaging, Inc.
as recorded in 97-016096 in the Brazoria County Clerk's Office.
2. A separate survey plat has been prepared in connection with this description.
The VYrlson Survey Group, Inc.
2008 East Broadway, Suite 105
Pearland, Texas 77581
Job No. 04-108
July 16, 2002
.4,6
Micha D. Wllson,
D.(AIL--
Registration No 4821
03119/o4
APPLICATION FOR TAX ABATEMENT IN THE
CITY OF PEARLAND
It is recommended that this application be filed at least 90 days prior to the beginning of
construction of the installation of equipment. The filing of this document acknowledges
familiarity and conformance with Guidelines and Criteria for Granting Tax Abatement in a
Reinvestment Zone Created in the City of Pearland (attached). Please review Instructions
attached before executing this application. This application will become part of the agreement
and any knowingly false representations will be grounds for the City to void the agreement.
Original copy of this request should be submitted to the Pearland Economic Development Corp.
Executive Director, City of Pearland, 3519 Liberty Drive, Pearland, Texas 77581. Please attach
exhibits and additional information.
APPLICANT INFORMATION
Application Date 7f 7 6 / 0 4
Company Name Third Coast Terminals Number of Current Employees 44
Address
1871 Mykawa
Consecutive years in business 7
Corporation (X)
Annual Sales$1 8,500, 000.00
Partnership ( ) Proprietorship ( )
Please submit financial statements for the prior two years.
PROJECT INFORMATION
Type of facility: Manufacturing
(See Instructions) Regional Service
Reg. Distribution Center
Reg. Entertainment Center
Other Basic Industry
Location address and description of area to be designated as reinvestment zone (attach map
showing site and legal description): 1 870 Mykawa Rd. , Pearland, TX
Description of eligible improvements (real property) to be constructed (This includes fixed
equipment, buildings, parking lots, etc.): 5, 000 sq. ft. office building with
covered parking for 24 employees & visitors, concrete street
entrance, driveways & retention pond.
Description of ineligible property to be included in project. (This includes inventory and
personal property.): office supplies, furniture & fixtures r
Will this project require any permits by other federal, state or county agencies? If so, please list
the name of the permit, the permitting agency and a description of why and what the permit is
needed for: drainage & retention plan
t ne
proposea reinvestment zone I
S lOC4 Cu III:
City
County
School District
College District
Other Taxing Jurisdictions
Pearland
Brazoria
Pearland
Tax ID number 76-0210720
Description of product(s) or service to be provided (proposed use): off ice bui ldinq &
Industrial building sites
Description of operations, processes involved, general overview: of f i cP buildi ng &
Industrial building sites
ATTACH A STATEMENT explaining the general nature and extent of the project, describing
existing site and improvements; describe all proposed improvements and provide list of
improvements and equipment for which abatement is requested. Include a proposed time
schedule for undertaking and completing the planned improvements as well as the company
officials and agents who will oversee the construction. Describe other sites that are under
consideration.
NEW PLANT () EXPANSION (y) MODERNIZATION ( )
ECONOMIC INFORMATION
A. Construction Estimates
Commencement Date: S e.pt . 2004
Construction Man Years:
Completion Date:
Peak Construction Jobs
Dec. 2004
B. Permanent Employment Estimates (FTE's)
Jan..
IF MODERNIZATION:
Estimated Economic Life of
Existing Plant:
Added Economic Life from
Modernization:
Years
Years
Current Employment 44 (4 8 ) *
Current Annual Payroll $1 , 650, 000 average annual or hourly salary $1 9.0 5 / h r
Number of jobs retained (4 4 ) created ()
at start/opening of this project 44 in year 2004
5 years into operation 60 (68)* in year 2009
2009
. 20
.70
Local Transfer Total
*Includes Part-time & contract
Est. Salaries
68 $22.80/hr.
C. Other Estimated Taxes Generated by Project
(1) Sales Taxes: 20 : $
20 : $
20 : $
20 : $
20 : $
20 : $
20 : $
20 : $
20 : $
20 :$
(2) Other Taxes or fees (if known, impact fees, building fees, etc.):
D. Estimated Appraised Value on Site:
Land
Building
& Fixed
Equipment
Bus. Personal
Property
& Inventory
I. Total of pre-existing value
(Jan I preceding abatement)
275,500
2,400,000
1,450,000
II. Estimated value of NEW land added
Estimated value of NEW improvements
Estimated value of NEW fixed equipment
Estimated value of NEW personal
property and inventory added
Total of NEW value added
(Total columns in Sec. II above)
120,000
275,000
* 2 5 5, 0 0 0
80,000
120,000
530,000
80,000
III. Total value at end of Tax Abatement
(Total Part 1 & II)
395,500
2, 930, 000
1,530,000
*SEE ATTACHMENT C (PHASE 1)
TAX ABATEMENT REQUESTED
/ 5 % of eligible property for a term of S years (Or)
( ) Requesting Staggered Tax Abatement Terms as follows:
ATTACHMENT (C)
* ESTIMATED VALUE OF NEW IMPROVEMENTS: (PHASE 1)
A. 5,000 SQ. FT. OFFICE BUILDING:
SUB TOTAL: $275.000
B. ASSOCIATED IMPROVEMENTS:
* DRAINAGE AND RETENTION:
* STREET W/ CURB & GUTTER:
* SIDE WALKS:
* DRIVE WAYS, APPROACHES
& COVERED PARKING:
* LANDSCAPING & TREES:
* UTILITIES, LIGHTING, FENCE:
$ 45,000
$110,000
$ 20,000
$ 35,000
$ 20,000
$ 25,000
SUB TOTAL: $255,000
January I
SAMPLE PROJECT DESCRIPTION
SEE ATTACHMENT A
Thz--prejecl be the construction of a new manufacturing facility that will also include_ out
sales and engineering staff:—W ex ect to have approximately 150-160 employees on site. We
expect the project will require the constructio tvl=a b lding-of appro ix'mately 70,000 square feet
at a cost of approximately $2.6-$ - ' ion. It is anticipa -. xed manufacturing
equipment of a . . y $1,500,000 will be included in the project. Tax abatemen I -be_
on all items allowed by law.
SAMPLE TIME SCHEDULE
mber - Dec 31, 2001
30, 2002
February 1 -February 28, 2002
March 1 - March 30, 2002
April 1-November 15 -002
Novembe�ecember 25, 2002
ember 30, 2002
SEE ATTACHMENT B
Legal work, conceptual phase, contractor selecti
Wetlands study, phase architecttirseillingineering,
topographical mappintentiori pond ngineering
Architectural drawings final engineering, permits and
app icatms
ids and initil'site Yvork
Construction
Move -in, start up
Completion
DO NOT WRITE IN THIS AREA — FOR PROCESSING PURPOSES ONLY
1. EDC contact
2. Precinct
3. Jurisdictions notified
. 4. Initial review completed
5. Review circulated
6. ISD concurrence?
7. College concurrence?
8. City concurrence?
9. Letter of Intent
10. Hearing noticed on agenda
11. Public hearing
12. ISD action
13. College action
14. City action
15. Agreement signed
ATTACHMENT (A)
THIRD COAST DEVELOPMENT PROJECT PLAN:
AN UNDEVELOPED SIX ACRE SITE LOCATED EAST OF MYKAWA RD.
PEARLAND WILL CONSIST OF TWO (ONE AND ONE/HALF) ACRE PARCELS
AND ONE (THREE) ACRE PARCEL. AN ON -SITE RETENTION POND WILL BE
ENGINEERED & CONSTRUCTED TO ACCOMMODATE THE ENTIRE PROJECT.
OTHER LAND & VEGETATION IMPROVEMENTS ARE BEING REVIEWED AT
THIS TIME.
• A 5,000 SQ. FT. OFFICE BUILDING WILL BE CONSTRUCTED IN 2004 ON
ONE OF THE SMALLER PARCELS TO ACCOMMODATE THE THIRD
COAST TERMINAL'S OFFICE STAFF. A SECOND COMPANY. THIRD
COAST CHEMICALS, WILL ALSO MOVE THEIR STAFF OF SIX
PERSONNEL INTO THE BUILDING. WE EXPECT TO OFFICE
APPROXIMATELY 20 EMPLOYEES BY YEAR'S END.
• A CONCRETE (CITY APPROVED) STREET FROM MYKAWA ROAD
WILL BE CONSTRUCTED, ALONG WITH DRIVE -WAYS, AND COVERED
PARKING.
ATTACHMENT (B)
TIME SCHEDULE:
• MAY-AUG, 2004: FINAL LEGAL & BANKING ARRANGEMENTS,
DETENTION POND ENGINEERING, OFFICE CONSTRUCTION
CONTRACT. BIDS FOR DIRT WORK.
• AUG-OCT, 2004: FINAL BUILDING PLANS, AND SURVEY
REQUIREMENTS. INITIAL (SITE) DIRT WORK AND RETENTION POND,
EXTEND UTILITIES TO BUILDING SITE..
• OCT, 2004 OFFICE FOUNDATION COMPLETION, STREET ENTRANCE
& DRIVEWAY(S) COMPLETED. BUILDING COMPLETION. SITE
IMPROVEMENTS & BEAUTIFICATION PROJECTS UNDERWAY.
• NOV, 2004: BUILDING DELIVERED AND SET-UP. INSTALL NEW
COMMUNICATIONS AND IT SYSTEMS. MOVE IN EMPLOYEES AND
HAVE OPEN HOUSE PARTY!!!.
• DEC, 2004: CONSTRUCT COVERED PARKING AREA. CONTINUE WITH
SITE IMPROVEMENTS.
Is the applicant seeking a variance under Section 3(f)
of the Guidelines? YES ( ) NO (Al
If "YES" attach required supplementary information.
OTHER ABATEMENTS: Has company made application
for abatement of this project by another taxing
jurisdiction or nearby counties?
If "YES" provide dates of application, hearing dates,
if held or scheduled, name of jurisdictions and
contacts, and letters of intent.
YES() NOsj')
COMPANY REPRESENTATIVE TO BE CONTACTED
Name: Larry Rysavy
Title: Vice President
Address: 1871 Mykawa
Pearland, TX 77581
Telephone: 2 81 - 41 2- 0 2 7 5
Authorized pomp: y Offici.
By:
Prin • ame:
Title: Vice e ident
Revised November 21, 2000