R2007-049 2007-03-26
RESOLUTION NO. R2007-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO A TAX ABATEMENT AGREEMENT WITH TEXAS HONING,
INC. AND W & N ENTERPRISES; FINDING AND DETERMINING THAT
TERMS OF SAID AGREEMENT MEET THE REQUIREMENTS OF CHAPTER
312 OF THE TAX CODE, V.A.T.S. AS AMENDED, ORDINANCE NO.
1320, ESTABLISHING REINVESTMENT ZONE #16, AND THE
GUIDELINES AND CRITERIA FOR GOVERNING REINVESTMENT ZONES
AND TAX ABATEMENT AGREEMENTS SET FORTH IN RESOLUTION NO.
R2006-121.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Tax Abatement Agreement, by and between the
City of Pearland, Texas Honing, Inc. and W & N Enterprises, a copy of which is
attached hereto as Exhibit "A" and incorporated herein for all purposes, is hereby
authorized and approved.
Section 2. The City Council finds and determines that the Tax Abatement
Agreement and the property subject to this agreement meet the requirements of
Chapter 312 of the Tax Code, V.A.T.S. as amended, Ordinance No. 1320, which
established Reinvestment Zone #16, and the Guidelines and Criteria for Governing
Reinvestment Zones and Tax Abatement Agreements set forth In
Resolution No. R2006-121 .
Section 3. The City Manager or his designee is hereby authorized to execute,
and the City Secretary to attest, said Tax Abatement Agreement and any counterparts
thereof.
RESOLUTION NO. 2007 -49
PASSED, APPROVED, AND ADOPTED this the 26th da~ o~arch, A.D., 2007.
~vvW IV W
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
~.~ rY--
D RRIN M. COKER
CITY ATTORNEY
2
R2007 -49
File No. 07 -0019
THE STATE OF TEXAS
COUNTIES OF BRAZORIA,
FORT BEND, AND HARRIS
TAX ABATEMENT AGREEMENT
This Tax Abatement Agreement ("Agreement") is entered into by and between the City of
Pearland, Texas, a home rule city and Municipal Corporation of Brazoria, Fort Bend, and
Harris Counties, Texas, duly acting by and through its City Manager ("City"), and Texas Honing,
Inc. ("Texas Honing") duly acting by and through its~.fo , NvJc. ~ and W&N
Enterprises (W &N), duly acting by and through its t!. F 0 , /"1..(" ~ k"67".s. Unless individually
recognized, Texas Honing and W&N Enterprises shall be collectively referred to as "Companies".
WITNESSETH:
----------
WHEREAS, on the 12thth day of March, 2007 the City Council of the City of Pearland,
Texas, passed Ordinance No. 1320 establishing Reinvestment Zone #16 in the City of Pearland,
Texas, for general business tax abatement, as authorized by Chapter 312, Tax Code, V.A.T.S. as
amended ("Code"); and
WHEREAS, the City previously adopted Resolution No. R2006-121, which established
appropriate guidelines and criteria for governing reinvestment zones and tax abatement agreements
to be entered into by the City as contemplated by the Code; and
WHEREAS, the City's objective is to maintain and/or enhance the general business economic
and employment base of the Pearland area for the long term interest and benefit of the City, in
accordance with Resolution No. R2006-121 and the Code; and
WHEREAS, the contemplated use ofthe Premises, as hereinafter defined, the contemplated
improvements to the Premises in the amount as set forth in this Agreement and the other terms
hereof are consistent with encouraging development of said Reinvestment Zone in accordance with
the purposes for its creation and are in compliance with Resolution No. 2006-121 and the guidelines
and criteria adopted by the City and all applicable law; and
WHEREAS, the Improvements as defined below constitute a major investment within the
Reinvestment Zone that will substantially increase the appraised value of property within the zone
and will contribute to the retention or expansion of primary and secondary employment within the
City; and
WHEREAS, there will be no substantial adverse affect on the provision of city services or on
its tax base and the planned use ofthe Premises will not constitute a hazard to public safety, health,
or welfare; now,
1
IH.ER.EEOR.E:
For and in consideration of the mutual agreements and obligations set forth below, the
sufficiency of which is hereby acknowledged by the parties hereto, Companies and City mutually
agree as follows:
1. The property to be the subject of this Agreement shall be that property described by
metes and bounds and map attached hereto as Exhibit "A" ("Premises").
2. Construction of Texas Honing's Fixed Equipment on the Premises, described in
Exhibit "B" ("Fixed Equipment") will cost approximately one million dollars ($1,000,000.00) and is
to be substantially complete on or about June 30, 2007; and the construction ofW&N's Building
Improvements on the Premises, also described in Exhibit "B" ("Improvements") will cost
approximately one million dollars ($1,000,000.00) and are to be substantially complete on or about
June 30,2007. However, Companies shall have such additional time to complete their respective
Improvements as may be required in the event of "force majeure" provided each party diligently and
faithfully pursues completion of the Improvements. For this purpose, "force majeure" shall mean
any contingency or cause beyond the reasonable control of Companies, without limitation, acts of
God or public enemy, war, riot, civil commotion, insurrection, governmental or de facto
governmental action (unless caused by acts or omissions of Texas Honing or W &N), fires,
explosions or floods, and strikes. The date of completion of the Fixed Equipment and Improvements
shall be defined as the date a Certificate of Occupancy is issued by the City.
3. Companies agree and covenant to diligently and faithfully, in a good and
workmanlike manner, pursue the completion ofthe Fixed Equipment and Improvements as good and
valuable consideration of this Agreement. Companies further covenant and agree that all
construction will be in accordance with applicable state and local laws and regulations or valid
waiver thereof. In further consideration, Texas Honing shall thereafter, from the date a Certificate of
Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the
Premises, limiting the use of said Premises to that use which is consistent with the terms of this
Agreement and the general purpose of encouraging development or redevelopment of the
Reinvestment Zone during the period that the property tax exemptions evidenced herein are in effect.
4. Texas Honing agrees and covenants that it shall provide a minimum of twenty (20)
additional jobs during the period of the abatement. Accordingly, Texas Honing shall provide to the
City annual manpower reports (Exhibit "C") within sixty (60) days following the end of each
calendar year.
5. Subject to the terms and conditions of this Agreement, and subject to the rights and
holders of any outstanding bonds of the City, a portion of ad valorem property taxes assessed to the
Property and otherwise owed to the City shall be abated in the following manner:
2
(a) The abatement for Texas Honing shall be an amount equal to seventy five
percent (75%) of the taxes assessed upon the increased value of the Fixed
Improvements, annually for a period of three (3) years beginning January 1,
2008, and ending December 31,2010; fifty percent (50%) of the taxes
assessed upon the increased value of the Improvements, annually for a period
of two (2) years beginning January 1, 2011, and ending December 31, 2012;
thirty percent (30%) assessed upon the increased value of the Improvements,
annually for a period of two (2) years beginning January 1,2013, and ending
December 31,2014, in accordance with the terms ofthis agreement and all
applicable state and local regulations.
(b) The abatement for W &N shall be an amount equal to seventy five percent
(75%) of the taxes assessed upon the increased value of the Building
Improvements, annually for a period ofthree (3) years beginning January 1,
2008, and ending December 31, 2010; fifty percent (50%) of the taxes
assessed upon the increased value of the Improvements, annually for a period
of two (2) years beginning January 1, 2011, and ending December 31,2012;
thirty percent (30%) ofthe taxes assessed upon the increased value of the
Improvements, annually for a period of two (2) years beginning January 1,
2013, and ending December 31, 2014, in accordance with the terms of this
Agreement and all applicable state and local regulations.
The taxable value shall be determined on a uniform and equal basis of assessment by the
methods used by the Brazoria County Tax Appraisal District, which information necessary for
abatement shall be provided by Companies to the chief appraiser of said district. Estimated values,
estimated abated values, and estimated base year values for the Fixed Equipment and Improvements
are listed in Companies' respective Applications for Tax Abatement (Exhibits "D" and "E").
6. Companies further agree that the City, its agents and employees shall have the right to
enter upon the Premises at any reasonable time and to inspect the Fixed equipment and
Improvements in order to determine whether the construction is in accordance with this Agreement
and all applicable federal, state, and local laws, ordinances, and regulations or valid waiver thereof.
After completion of the Fixed Equipment and Improvements, the City shall have the continuing right
to enter upon and inspect the Premises at any reasonable time, after 24 hours' notice has been given,
to determine whether the Premises are thereafter maintained and operated in accordance with this
Agreement and all applicable federal, state, and local law, ordinances, and regulations. The City
shall conduct at least one inspection annually to ensure compliance with the guidelines contained in
Resolution No. R2006-121. Notwithstanding any other provision of this Agreement, if the City
determines that a violation of a federal, state, or local law, ordinance or regulation exists on the
Premises, the City may, in addition to any other authorized enforcement action, provide to Texas
honing or W &N written notice of such violation. For the purposes ofthis Agreement, the violating
party shall have ten (10) days from the date of the notice to cure or remedy such violation. If the
3
violating party fails or refuses to cure or remedy the violation within the ten (10) day period, the
defaulting party is subject to the forfeiture, at the discretion of the City, of any right to any tax
abatement for a portion of the period or the entire period covered by this Agreement.
7. Companies agree and covenant that the information provided in Exhibits "D" and "F"
is true and correct and that any materially false or misleading information that is provided to the
applicable taxing jurisdictions may be grounds for termination of the agreement with possible
liability for recovery of abated taxes.
8. In the event that (1) the Fixed Equipment or Improvements for which an abatement
has been granted are not completed in accordance with this Agreement; or (2) Companies allow their
respective ad valorem taxes owed to the applicable taxing jurisdictions to become delinquent and fail
to timely and properly follow the legal procedures for protest and/or contest of any such ad valorem
taxes; or (3) if either Texas Honing or W &N breaches any of the terms or conditions of this
Agreement, then this Agreement shall be in default. In the event of a default under (1), (2), or (3)
above, City shall provide the defaulting party written notice of such default, which notice shall be
delivered by personal delivery or certified mail to'l(ttru tlM:;j/N'. 1:1: l~ ~~ ,.,,!l1 or
. If the defaulting party has not cured such fault within sixty (60) days of
said written notice, this Agreement may be modified or terminated by the City. Notwithstanding the
provisions set forth herein, this Agreement may be terminated at any time after the execution hereof
by agreement of all parties.
9. In the event that Texas Honing begins producing product or service, but subsequently
discontinues producing product or service for any reason except fire, explosion or other casualty or
accident or natural disaster for a period of one year during the abatement period, then this Agreement
shall be in default and shall terminate. The abatement of taxes for the calendar year during which the
facility no longer produces shall also terminate.
10. As liquidated damages in the event of default and in accordance with
Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid
to the City without the benefit of abatement (but without the addition of penalty; interest will be
charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code)
will become a debt to the City and shall be due, owing and paid to the City within sixty (60) days of
the expiration of the cure period or the termination date, whichever is applicable. The City shall
have all remedies for the recapture and collection of the lost tax revenue as provided generally in the
Tax Code for the collection of delinquent property taxes and in accordance with Resolution No.
R2006-121.
11. The City represents and warrants that the Premises does not include any property that
is owned by a member of its councilor boards, agencies, commissions, or other governmental bodies
approving, or having responsibility for the approval of, this Agreement.
4
12. The terms and conditions of this Agreement are binding upon the successors and
assigns of all parties hereto. This Agreement may be transferred or assigned by Companies only
upon written permission by the City in accordance with Resolution R2006-121, which permission
shall not be unreasonably withheld. No assignment shall be approved ifthe assignor or assignee is
indebted to the City for ad valorem taxes or other obligations.
13. It is understood and agreed between the parties that Companies, in performing their
obligations hereunder, are acting independently from one another or from the City, and the City
assumes no responsibilities or liabilities in connection therewith to third parties.
14. COMPANIES, THEIR RESPECTIVE OFFICERS, AGENTS, SUCCESSORS
AND ASSIGNS HEREBY RELEASE, ACQUIT, AGREE TO INDEMNIFY, AND HOLDS
HARMLESS THE CITY, ITS OFFICERS, AGENTS, EMPLOYEES, SUCCESSORS, AND
ASSIGNS, FROM ANY AND ALL KINDS OF CLAIMS, DEMANDS, LOSSES, DAMAGES,
INJURIES, RIGHTS, CAUSES OF ACTION, OR JUDGMENTS OF WHATSOEVER
CHARACTER OR NATURE, INCLUDING ATTORNEYS' FEES, WHICH MAY ARISE AS
A RESULT OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION REFLECT
THE EXPRESSED INTENTIONS OF COMPANIES AND THE CITY AND SHALL
SURVIVE THE TERMINATION, EXPIRATION, OR CANCELLATION OF THIS
AGREEMENT.
15. It is understood and agreed by the City and Companies that ifthe Premises has been
designated and taxed as agricultural land pursuant to Chapter 23, Subchapter C, Tax Code, V.A.T.S.,
that this Agreement shall not be effective and no abatement granted until Companies have removed
the agricultural use designation and all taxes due pursuant to Section 23.55, Tax Code, V.A.T.S., as
amended, (roll back taxes) have been paid.
16. This Agreement was authorized by Resolution of the City Council at its council
meeting on thej.l-~ay of/1r.r~~ 2007, authorizing the City Manager to execute the Agreement on
behalf of the City.
18. This shall constitute a valid and binding Agreement between the City and Companies
when executed in accordance herewith.
19. This Agreement is performable in Brazoria County, Texas.
5
20. Companies agree and covenant to certify annually to the City, while this Agreement is
in effect, that Companies are in compliance with each applicable term of this Agreement.
Witness our hands this d-S-tl day of Mc.r ~ , 7.,.0 "7.
ATTEST: CITY OF PEARLAND
By:
By:
It . ,~j1:. ,~~.~ ~..
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Bill Eisen
City Manager
By:
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Damn M. Coker
City Attorney
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APPROVED AS TO FORM:
ATTEST:
Texas Honing, Inc.
By:~tt~
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By: Jti~ ~ ~fk
Printed Name: M A- 1L.. .&. . tY S
Title: CF 0
W &N Enterprises
By: ,Yi..L- B f;.<rL
Printed Name: /'f)1}, O. ~ys
Title: C ':0
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THE STATE OF TEXAS
COUNTY OF BRAZORIA
BEFORE ME, the undersigned Notary Public, on this day personally appeared Bill Eisen,
City Manager for the City of Pearland, known to me to be the person whose name is subscribed to
the foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS ;) ~th DAY OF
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THE STATE OF TEXAS
COUNTY OF -&..a~A ~
BEFORE ME, the undersigned Notary Public, on this day personally appeared
mARK \~S, ct::O. of Texas Honing, Inc., known to me to be the person whose
name is su scnbed to the foregomg mstrument and acknowledged to me that he executed the same
for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS d) 7 DAY OF
fvL()Jlch , A.D., 20122.
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DIANA LYNN lARA
Notary Public, State of Texas
My Commission Expires
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OTARYPUBU ,sf ATE OF TEXAS
Printed Name: DllJtI~ LYNN LAllA:
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My Commission Expires: 4~f. /0_ :J-O(/
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THE STATE OF TEXAS
COUNTY OF ~~
BEFORE ME, the undersigned Notary Public, on this day personally appeared
mark ~ >, t.r.o ofW&N Enterprises, known to me to be the person whose
name is sufJcribed to the foregoing instrument and acknowledged to me that he executed the same
for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS ,;)~
1Y{IlArL , A.D., 20Q2.
DAY OF
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DIANA LYNN LARA
Notarv P:lblic, State of Texas
My CommiSSion Expires
April 1 0, 2011
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NOTARY PUBLIC, TATE OF TEXAS
Printed Name: hi .4jYfr t '//1/111 LARA-
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MyCornrnissionExpires: +:,.1. /0 Zt'// /
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EXHIBIT
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METES AND BOUNDS DESCRIPTION
15.2962 ACRES OUT OF LOT 47
W. ZYCHLINSKI SUBDIVISION
R. B. LYLE SURVEY, ABSTRACT 543
PEARLAND, BRAZORIA, COUNTY, TEXAS
All that certain 15.2962 acres out of Lot 47, W. Zychlinski Subdivision according to the plat
thereof filed in Volume 29, Page 43 Brazoria C0U11ty Deed Records, Pearland, Brazoria County,
Texas and out of R. B. Lyle Survey, Abstract 543 and being that same tract as described in a
deed dated 02-04-1997 from W. L. Puis, et al to W & N Enterprises as filed in the Official
Records of Real Property of Brazoria County at Clerk's File Number 97-004414 and being more
particularly described by metes and bounds as follows (bearings based on Texas Coordinate
System of 1983, South Central Zone);
BegilUling at a found fence post marking the northwest corner of Lot 1, Block 1, Mykawa Acres
according to the plat thereof filed in Volume 16, Page 304 Brazoria County Plat Records;
I. Thence S 02036' 23" E - 634.44' with the east line of said W & N Enterprise tract to a point
for corner from which a found 1" iron pipe bears S 140 02' 38" E - 1.18' from said point;
2. Thence S 870 23' 39" W - with the south line of said Lot 47 passing at 996.39' a set 5/8"
iron rod with cap (stamped C. L. DA VIS-RPLS 4464) for reference point and continuing at
total distance of 1,046.39' (plat 1,050.70') to a point for corner;
3. Thence N 030 17' 53" W - 634.49' (plat 634.44') with the west line of said Lot 47 to a point
for corner;
4. Thence N 870 23' 39" E with the north line of said Lot 47 passing a 50.00' a set 5/8" iron rod
with cap (stamped C. L. DA VIS-RPLS 4464) for reference point and from said reference
point a found 2" iron pipe bears S 720 30' 07" E - 2.24' from said point and continuing a
total distance of 1,054.06' (plat 1,050.70') to the POINT OF BEGINNING and containing
15.2962 acres (666,303 square feet) ofland more or less.
This metes and bounds description is accompanied by a separate plat, drawing or exhibit per
Texas Board of Professional Land Surveyor's "General Rules of Procedures and Practices"
Section 663.19(9).
Compiled by:
C.L. Davis & Company
Job Number: 11-890 15.2962 Acre M&B.doc
02/14/2007
~4491462.doc
EXHIBIT
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PROJECT DESCRIPTION
The project will be the constnlction of a new manufacturing facility that will also include
supporting administrative and engineering staff. We expect to have an additionalZO
employees added to our existing 110 employee base when project is completed. The
project is the constmction ofa 25,000 square foot manufacturing facility with a 1,000
square foot office. The project is estimated to cost approximately $1,000,000 and include
and additional $1,000,000 of equipment. Tax abatement will be sought on all items
allowed by law.
Real property improvements will be owned by W&N Enterprises and operations and
equipment will be owned and operated by Texas Honing, Inc. Both business entities are
solely owned by same owner.
EXHIBIT "c"
MANPOWER REPORT
I, f'C\A-{I.. \-( \) K.6y S
C-f~o
of Texas Honing, Inc., do certify that
on ff\PrP..C ~ 2..8
, 20 il- there were i 10 individuals employed full time at Texas
Honing, Inc.
Yr)/A.J.- 'D /40iJ
'rJ
Printed Name: 1Yl~ Ii. I). Kt:Y~
Title: C-FD
Date: ;3 /28 /17,/
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THE STATE OF TEXAS
COUNTY OF ~M.A IL/
BEFORE ME, the undersigned Notary Public, on this day personally appeared
B!IJ-U .K;t ~ , C. F {) of Texas honing, Inc., being by me duly
sworn on his/h r oath deposed and said that he/she is duly qualified and authorized in all respects to
make this affidavit; and that every statement contained in the Manpower Report is within his/her
knowledge and true and correct.
SUBSCRIBED AND SWORN TO BEFORE ME on the ~ ~ day of 1vt..11f1 rL
20 0"1 , to certify which witness my hand and official seal.
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DIANA LYNN LARA
NOlJry Public, State of Texas
My CommiSSion Expires
April 1 O. 2011
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Nt5TARY PUBLIO, STAfE OF TEXAS
Printed Name: D / J1ll1ft L.y /1/ r.! 1AteA.
My Commission Expires: +.:..t 10 I 20 II
APPLICATION FOR TAX ABATEMENT IN THE EXHIBIT
~ ~j)"
CITY OF PEARLAND '"
1!I
It is recommended that thIS applIcatIOn be filed at least 90 days pnor to the begmnmg 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 Pearl and, 3519 Liberty Drive, Pearl and, Texas 77581. Please attach
exhibits and additional information.
---------------------------------------------------------------------------------------------------------------------
APPLICANT INFORMATION
Application Date 1- 25 -01
CompanyName TeXA.S HONiNG:. ,,,,c..
.
Number of Current Employees 110
Address
1110 myl<.A"4JA.., PGAll.LA,JO ,T1< 7159J
Annual Sales
19,000, ODD
Consecutive years in business 2<t
Corporation ()<.)
Partnership ( )
Proprietorship ( )
Please submitjinancial statements for tlte prior two years.
-------------------------------------------------------------------------------------------------------------------~
PROJECT INFORMATION
Type of facility:
(See Instructions)
Manufacturing
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): 111a M'i"'AvJ>.
------------------------------------------------------------------------------------------------------------------
Description of eligible improvements (real property) to be constructed (This includes fixed
equipment, buildings, parking lots, etc.): F l ~ca E' (,lUtPIl'1€N r
---------------------------------------------------------------------------------.-----------------------------------
Description of ineligible property to be included in project. (This includes inventory and personal
property.): 0R.ILLIr-JG. STOCK At-JD TooL..-s
-------------------------------------------------------------------------------------------------_._---------------
Will this project require any permits by other federal, state or county agencies? If so, please list
the name of the pemrit, the permitting agency and a description of why and what the permit is
needed for: NO
The proposed reinvestment zone is located in:
City
COWlty
School District
College District
Other Taxing Jurisdictions
Tax ID number
PEflf\t.ANP
1\1{ A LO III ;..
PcAQ..l".k/'JD \ :5D
6 A./\ 1.. eo OIl..A IN <<= 4
IWI\D'" QR lOGe
ir..f - tBS~55"8
--------------.-----------------------------------------------------------------------------------_._--------------
Description ofproduct(s) or service to be provided (proposed use): (:i\ANU~A(..TU.tI,JG
SEJt\JIC.€'~
Description of operations, processes involved, general overview: H(JNt;; I T vitN I BDi.E I
TJ1..EPAN AND Sl~Alc.HiG"IJ STEGt... P/U)I)tk-t~
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 plmmed improvements as well as the company
officials mld agents who will oversee the construction. Describe other sites that are under
consideration.
NEW PLANT ( )
ECONOMIC INFORMATION
A. Construction Estimates
Commencement Date:
Construction Man Years:
Completion Date:
Peak Construction Jobs
EXPANSION ~
MODERNIZATION ( )
'3 / I 101
I
I / , 1011
", ~
IF MODERNIZATION:
Estimated Economic Life of
Existing Plant: ~ Years
Added Economic Life from
Modernization: Years
B. Pennanent Employment Estimates (PTE's)
Current Employment II 0
Current Annual Payroll c.t,boO,OOO average annual or hourly salary '1-1 erE
Number of jobs retained ( " 0 ) created (2.0 ) I
at start/opening of this project I \0 in year 110
5 years into operation \30 III year '::\0
20"7
,~
,20~
,20_
Local
IS
2:0
Transfer
Total
,S
2.0
Est. Salaries
~oo.oaD
.
SOO,DOO
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 (iflrnown, impact fees, building fees, etc.):
D. Estimated Appraised Value on Site:
Buildi1lg Bus. Personal
Land & Fixed Property
Equipment & Illvel1tory
L Total of pre-existing value "1 '1'1, q. ""0 1,877.(,,1.0
(Jan 1 preceding abatement) f
II. Estimated value of NEW land added
Estimated value of NEW improvements
Estimated value of NEW fixed equipment _If(- .... 11000) 000
Estimated value of NEW personal
property and inventory added
Total of NEW value added
(Total columns in Sec. II above)
III. Total value at end of Tax Abatement
(Total Part I & II)
TAX ABATEMENT REQUESTED
% of eligible property for a term of
years (Or)
('/.) Requesting Staggered Tax Abatement Terms as follows: \DO()/O ~ '(/!fJcil..5 I 5'0% 2y~
---------------~~-~-----~-)(-~~------~--------------------------------------------------------------------
VARIANCE
]s the applicant seeking a variance under Section 3(t)
of the Guidelines?
YES ( )
NO( )
If "YES" attach required supplementary information.
OTHER ABATEMENTS: Has company made application
for abatement of this project by another taxing
jurisdiction or nearby counties? YES 00
NO{ )
If "YES" provide dates of application, hearing dates,
ifheld or scheduled, name of jurisdictions and
contacts, and letters of intent.
_____~_l~~__~_~__etJP.eJb_)(~~_~___~___J?~~~~___~~~_1[~_____________________________________
COMPANY REPRESENTATIVE TO BE CONTACTED
Name:
Title:
Address:
Mhl..l<.. Kev';
c.r-O
t"1 \0 rrWI<.Au.J A
P~f'r~LAtJD I T>c 7?~1
2.8 \ - ttB S -8~~9
Telephone:
Authorized Company Official:
By: 71i;v Jf;;fi-
Printed N e: K fN5
Title: c...'::o
Revised November 21, 2000
PROJECT DESCRIPTION
The project will be the construction of a new manufacturing facility that will also include
supporting administrative and engineering staff. We expect to have an additional 20
employees added to our existing 110 employee base when project is completed. The
project is the construction of a 25,000 square foot manufacturing facility with a 1,000
square foot office. The project is estimated to cost approximately $1,000,000 and include
and additional $1,000,000 of equipment. Tax abatement will be sought on all items
allowed by law.
Real property improvements will be owned by W &N Enterprises and operations and
equipment will be owned and operated by Texas Honing, Inc. Both business entities are
solely owned by same owner.
15.3 acres
1710 Mykawa, Pearland, TX
25,000 sq ft
Proposed Expansion
I
EXHIBIT
APPLICATION FOR TAXABATEMENJ:INTHE I
CITY OF PEARLAND
If/:> I..
~
It is recommended that tlus application be filed at least 90 days prior to the beginning of
constmction 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 Pearl and, 3519 Liberty Drive, Pearland, Texas 77581. Please attach
exhibits and additional information.
---------------------------------------------------------------------------------------------------------------------
APPLICANT INFORMATION
Application Date (-25-07
Company Name W ~ N E:tJTELPA.ISE'S
NUmber of Current Employees
2.
Address
1710 M.Yl<.AvJA j P=ALAtJP{TX TlSef Annual Sales B tq I r"qlj
Consecutive years in business 2'1
Corporation ( )
Partnerslup 0<)
Proprietorship ( )
Please submit fillancial statements for tile prior two years.
--------------------.._----------------~------------------------------------------------------------------------
PROJECT INFORMATION
Type of facility:
(See Instructiom)
Manufacturing
Regional Service
( )
( )
Reg. Distribution Center ( )
Reg. Entertainment Center ()
Other Basic Industry (X)
--~-~----------------------------------------------------------------------------------~-----------------------------
Location address and description of area to be des'ignated as reinvestment zone (attach map
showing site and legal description): Ii ( 0 m VI< A oJA
Description of eligible improvements (real property) to be constructed (This includes fixed
equipment, buildings, parking lots, etc.): 2.5000 SQ FT MAf'JCJfi: A.c"T'VR-I,.,)6 FAc..tL.t -ry
WiT" (OOOSe;) POT o,:-e::tc:.c SPAc..(;
---------------------------------------------------------------------------------------------------------------------
Description of ineligible property to be included in project. (This includes inventory and personal
property.): DltiLL.t,..l{; STOCK AND TooL...5
-------------------------~--------------------------------------------------------.--.----------------------------
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: f.J 0
------------------------------------------------------------------------------------------------------------------
The proposed reinvestment zone is located in:
City
County
School District
College District
Other Taxing Jurisdictions
Tax ID number
Pc A.Ilt..A \-1 "
p.,(c A-z..o/Z. \ n
P€ARt..A-tJO (SO
Bi<.A"Z. to DRAIr-J ....4
t< 0,0.1> " B4.\O{.e;
7"~OOIOqS2.
____________________________________________________~_~__________M__________________________________________------
Description of product(s) or service to be provided (proposed use): fV\Af..lUPA:c.."nJL'"Jo.
~ ee..v I c:..t:"s
---------------------------------------------------------------------------------------------------------------------
Description of operations, processes involved, general overview: HONe-. T..JR..N, Stille!
Tp..€PAt'J i\Nu S T"R!\IG.HTS"N 'S'TEeL P!J.OO\Jl-TS
*---------------------_._---------------------------------------------------------------------------------------------
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 pl&med improvements as well as the company
officials and agents who will oversee the construction. Describe other sites that are under
consideration.
NEW PLANT ( )
ECONOMIC INFORMATION
A. Construction Estimates
Commencement Date:
Construction Man Years:
Completion Date:
Peak Construction Jobs
~ I, t 01
/
q II 101
I~
EXPANSION 00
MODERNIZATION ( )
IF MODERNIZA nON:
Estimated Economic Life of
Existing Plant: ~ Years
Added Economic Life from
Modernization; Years
B. Permanent Emplovment Estimates (FTE's)
Current Employment II 0
Current Annual Payroll L\ ,bOD~ 000
Number of jobs retained (I to ) created (
at start/opening of this project
5 years into operation
, 20ll-
, 20 og
,20_
average annual or hourly salary C#'.SIl)
7.0 )
/I D in year I I 0
lao in year 1.30
Local
lS
'2.0
Transfer
Total
.S
20
Est. Salaries
300, co 0
:;ooJ oao
C. Other Estimated Taxes Generated bv Proiect
(1) Sales Taxes:
20_:$
20_:$
20_:$
20_:$
20_:$
20_:$
20_:$
20_:$
20_:$
20_:$
(2) Other Taxes or fees (ifknown, impact fees, building fees, etc.):
D. Estimated Appraised Value on Site:
Building Bus. Personal
Land &: Fixed Property
Eqllipment & Inventory
1. Total of pre-existing value 3'6',4AO l#ct5. 'lSD
(Jan 1 preceding abatement)
ll. Estimated value of NEW land added
Estimated value of NEW improvements I ,000,000
Estimated value of NEW fixed equipment
Estimated value of NEW personal
property and inventory added
Total of NEW value added 1,000, 000
(Total columns in Sec. IT above)
ill. Total value at end of Tax Abatement
(Total Part I & II)
------------------------------------------------------------------------------------------------------------------
TAX ABATEMENT REQUESTED
% of eligible property for a term of
years (Or)
( >0 Requesting Staggered Tax Abatement Terms as follows: f 000/0 3 '1EA~~
I
----~~=~~----~--)C~~~~--i_-----~~-~~-----~--)(~~~~----------------------------------------------------
VARIANCE
Is the applicant seeking a variance under Section 3(f)
of the Guidelines?
YES ( )
NO()
If "YES" attach required supplementary information.
OTHER ABATEMENTS: Has company made application
for abatement of this project by another taxing
jurisdiction or nearby counties? YES 00
NO ( )
Name:
If "YES" provide dates of application, hearing dates,
if held or scheduled, nanle of jurisdictions and
contacts, and letters of intent.
___~J_~~__~~__Jt!~~_~)!~_~__~___~~~_~~~J~_~~_~~_!_~_______---------------------------------
COMPANY REPRESENTATIVE TO BE CONTACTED
w4 N ENTe-~P~tSE"S (/IlktJC..l<eys)
(...po
1710 m"'t'KAwA
PE"AALA,.JD IT" 7758 ,
~8' - 4as ....833 q
Title:
Address:
Telephone:
Authorized Company Official:
By: f!j;i-f:;fk
Printed N e: . . KeyS
Title: c""':o
Revised November 21,2000
INSTRUCTIONS
Applicants and projects must meet the requirements established by the City of Pearl and
Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone found in Resolution
No. R98-59 (attached) in order to receive positive consideration. Section 2 of the Guidelines, for
example, sets out regulations governing eligible facilities, eligible and ineligible improvements,
terms and economic qualifications. Conformance with all sections, however, is required for
eligibility.
APPLICANT INFORMATION
The taxing unit may consider applicant financial capacity in determining whether to enter into an
abatement agreement. Established companies for which public information is available, or the
wholly owned businesses of such companies, should include with the application a copy of their
latest annual report to stockholders. Other applicants and new companies should attach a
statement showing when the company was established, business references (name, contact and
telephone number of principal bank, accountant and attorney) and may be required to submit an
audited 'financial statement and business plan.
PROJECT INFORMATION
Only facilities listed in Section 2(a) of the Guidelines may receive abatement without applying
for a variance. Check guideline definitions in Section I to see if project qualifies. If project is a
Regional Entertainment Facility, Regional Service Facility, Regional Distribution Center Facility
or Other Basic Industry, the application should include market studies, business plans,
agreements or other materials demonstrating that the facility is intended to serve a market the
majority of which is outside of the City of Pearl and region.
ECONOMIC INFORMATION
Permanent Emplovment Estimates - In estimating the permanent employment, include the total
number of jobs retained or created at this site by your firm as well as known permanent jobs of
service contractors required for operation.
Estimated Appraised Value on Site - The value as of January I immediately preceding abatement
should be the value established by the Brazoria County Appraisal District. If the applicant must
estimate value because the taxable value is not known or is combined with other properties under
a single tax account, please so state. Projections of value should be a "best estimate" based on
taxability in Texas. The projection of project values not abated should include personal property
and ineligible project-related improvements such as office space in excess of that used for plant
administration, housing, etc.
-------
The project will be the construction of a new manufacturing facility that will also include our
sales and engineering staff. We expect to have approximately 150-160 employees on site. We
expect the project will require the construction of a building of approximately 70,000 square feet
at a cost of approximately $2.6-$2.8 million. It is anticipated that fixed manufacturing
equipment of approximately $1,500,000 will be included in the project. Tax abatement will be
sought on all items allowed by law.
SAMPLE TIME SCHEDULE
September - Dec 31, 2001
January 1 - Jan 30, 2002
February I-February 28, 2002
March 1 - March 30, 2002
April I-November 15, 2002
November 16 - December 25,2002
December 30, 2002
Legal work, conceptual phase, contractor selection
Wetlands study, 1 sl phase architecture, soils engineering,
topographical mapping, detention pond engineering
Architectural drawings, fmal engineering, permits and
applications
Bids and initial site work
Construction
Move-in, start up
Completion
DO NOT WRITE IN TmS AREA - FOR PROCESSING PURPOSES ONLY
I.
2.
3.
4.
5.
6.
7.
8.
9.
10.
II.
12.
13.
14.
15.
EDe contact
Precinct
Jurisdictions notified
Initial review completed
Review circulated
ISD concurrence?
College concurrence?
City concurrence?
Letter of Intent
Hearing noticed on agenda
Public hearing
ISD action
College action
City action
Agreement signed
-1~-
-1-1_
-1_1_
_1-1_
-1-1_
1 I
---
~~-
~~-
~~-
~~-
PROJECT DESCRIPTION
The project will be the construction of a new manufacturing facility that will also include
supporting administrative and engineering staff. We expect to have an additional 20
employees added to our existing 110 employee base when project is completed. The
project is the construction of a 25,000 square foot manufacturing facility with a 1,000
square foot o~e. The project is estimated to cost approximately $1,000,000 and include
and additional $1,000,000 of equipment. Tax abatement will be sought on all items
allowed by law.
Real property improvements will be owned by W &N Enterprises and operations and
equipment will be owned and operated by Texas Honing, Inc. Both business entities are
solely owned by same owner.
W & N Enterprises
Balance Sheet
As of December 31,2006
Dee 31, 06 Dee 31,05 Dee 31,04
ASSETS
Current Assets
Checking/Savings
Cash in Bank 574,187.73 672,824.22 247,349.39
Total CheeklnglSavings 574,187.73 672,824.22 247.349.39
Other Current Assets
Notes Receivable 573,521.25 258,494.53 380,206.12
Total Other Current Assets 573,521.25 258,494.53 380,206.12
Total Current Assets 1,147,708.98 931,318.75 627,555.51
Fixed Assets
Building 2,204,419.84 2.204,419.84 2,129.070.22
Equipment 4,847.19 4,847.19 0.00
Total Fixed Assets 2,209,267.03 2.209,267.03 2.129,070.22
Other Assets
Investments 431,927.91 0.00 0
land 496,586.71 496.586.71 496,586.71
Total Other Assets 928,514.62 496,586.71 496,586.71
TOTAL ASSETS 4.285.490.63 3.637.172.49 3,253,212.44
liABILITIES & EQUITY
Liabilities
Long Term Liabilities
Loans Payable 151,693.03 219,384.45 355,260.56
Total long Term Liabilities 151,693.03 219,384.45 355,260.56
Total Liabilities 151,693.03 219,384.45 355,260.56
Equity
Partners Equity 3,417.788.04 2,897.951.88 2,411,670.22
Net Income 716,009.56 519,836.16 486,281.66
Total Equity 4,133,797.60 3,417,788.04 2,897,951.88
TOTAL LIABiliTIES & EQUITY 4,285,490.63 3,637,172.49 3,253,212.44
W & N Enterprises
Profit & Loss
January through December 2006
Jan . Dee 06 Jan. Dee 05 Jan. Dee 04
Ordinary Income/Expense
Income
Income
Rental Income 814,694.60 616,200.00 607.200.00
Total Income 814.694.60 616.200.00 607.200.00
Total Income 814.694.60 616,200.00 607,200.00
Expense
Bank Charges 20.00 20.00 0.00
Depreciation 67,534.00 67.534.00 64.749.00
Insurance 1,830.34 1,869.17 0.00
Interest 15,736.64 17,366.03 22.963.21
Meals & Entertainment 8,800.00 0.00 950.00
Office Supplies 213.19 20.00 no.oo
Professional Fees 457.00 6,187.00 84.95
Repairs 4,326.78 3,064.38 31,359.39
Taxes- Other 3,782.89 3,367.64 0.00
Utilities 310.98 0.00 41.79
Total Expense 98.685.04 96.363.84 120.918.34
Net Ordinary Income 716.009.56 519.836.16 486.281.66
Net Income 716.009.56 519,836.16 486,281.66
15.3 acres
1710 Mykawa, Pearland, TX
25,000 sq ft
Proposed Expansion
r