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R2008-041 2008-03-10RESOLUTION NO. R2008-41 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 GARTNER COATINGS; 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. '1339, ESTABLISHING REINVESTMENT ZONE #19, 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 and Gartner Coatings, 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. 1339, which established Reinvestment Zone #19, 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. PASSED, APPROVED, AND ADOPTED this the 10th day o Marc A.D., 2008. TOM REID MAYOR o;~ ATTEST: _';_ ~~ -- - ET, APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY RZOOS~~ EX~-tBrr~~4" os-ooss Tax Abatement Agreement Gartner Coatings "1"llli S"fA"I"t-~ OF TEXAS § COUN"DIES OF BRAZORIA, § FOR"i BEND, AND HARRIS § "hAX ABATEMEN"I' AGREEMEN"f i'his "fax Abatement Agreement ("Agreement") is entered into by and between the City of }'earland, "fexas, a home rule city and Municipal Corporation of Brazoria, Fort Bend, and 1 larris Counties, Texas, duly acting by and through its City Manager ("City"), and Gartner Coatings. ("Gartner"), duly acting by and through GLO%'Cc" ~~~T"izK ,its f ~F-3 ~0~ ^" W I"fNESSETH: WHEREAS, on the 25`x' day of February, 2008 the City Council of the City of Pearland, 'T'exas, passed Ordinance No. l 339 establishing Reinvestment Zone #19 in the City of Pearland, l cxas, for general business tax abatement, as authorized by Chapter 312, Tax Code, V.A."I'.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 WITEREAS, 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 of the 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 WIiEREAS, the hnprovements as defined below constitute a major investment within the Rcinvestn~ent7.one 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 of the Premises will not constitute a hazard to public safety, health, or welfare; now, THEREFORE For and in consideration of the mutual agreements and obligations set forth below, the sufficiency of which is hereby acknowledged by the parties hereto, Gartner 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 Gartner's improvements on the Premises, described in Exhibit "B" ("Improvements") will cost approximately nine hundred eighty thousand dollars ($980,000) and are to be substantially complete on or about December 31, 2008; provided, that Gartner shall have such additional time to complete the Improvements as may be required in the event of"force majeure" if Gartner 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 Gartner including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Gartner), fires, explosions or floods, and strikes. The date of completion of the Improvements shall be defined as the date a Certificate of Occupancy is issued by the City of Pearland. 3. Gartner agrees and covenants that it will diligently and faithfully, in a good and workmanlike manner, pursue the completion of the Improvements as a good and valuable considera- tion of this Agreement. Gartner further covenants and agrees that all construction of the Improvements will be in accordance with all applicable state and local laws and regulations or valid waiver thereof. In further consideration, Gartner shall thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the Premises as Gartner, 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. Gartner agrees and covenants that the Improvements shall provide a minimum of thirty five (35) jobs during the period of the abatement. Accordingly, Gartner shall provide to the City annual manpower reports (Exhibit "D") 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. City hereby acknowledges that it is not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. This Agreement shall be effective with the January 1st valuation date immediately following the date of execution of this Agreement. In each year that this Agreement is in effect, the amount of abatement shall be an amount equal to the percentage indicated below of the taxes assessed upon the 2 increased value of the Improvements and Fixed Equipment over the market value in the year in which this Agreement is executed. The abatement as herein provided shall be for the following years and in the following amounts: Fifty percent (50%) of the taxes assessed upon the increased value of the fixed equipment and improvements, annually for a period of three (3) years beginning January 1, 2009 and ending December 31, 201 1. In the event Gartner shall move any time during the term of this Agreement or take any other action that would prevent the City from getting sales tax revenue, then all rebates previously earned and paid to Gartner by the City shall be refundable to the City by Gartner and no further abatement shall be granted under any remaining term of this Agreement. 6. Gartner further agrees that the City, its agents and employees shall have the right to enter upon the Premises at any reasonable time and to inspect the Improvements in order to determine whether the construction of the Improvements 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 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 will 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 Gartner written notice of such violation. For the purposes of this Agreement, Gartner shall have ten (10) days from the date of the notice to cure or remedy such violation. If Gartner fails or refuses to cure or remedy the violation within the ten (1 O) day period, Gartner is subject to the forfeiture, at the discretion ofthe City, of any right to any tax abatement for a portion of the period or the entire period covered by this Agreement. 7. Gartner agrees and covenants that the information provided in the attached Application for Tax Abatement (Exhibit "C") is true and correct and that any materially false or mis- leading 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 Improvements for which an abatement has been granted are not completed in accordance with this Agreement; or (2) Gartner allows its ad valorem taxes owed to the applicable taxing jurisdictions to become delinquent and fails to timely and properly follow the legal procedures for protest and/or contest of any such ad valorem taxes; or (3) Gartner breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that Gartner defaults in its performance of (1), (2), or (3) above, then the City shall give Gartner written notice of such default, which notice shall be delivered by personal delivery or certified mail to: Gartner Coatings, 2433 Max Road, Pearland, Texas 77581. If Gartner has not cured such default 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 both parties- 9. In the event that the facility is completed and 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. 82 006-1 2 1. 1 1. The City represents and warrants that the Premises does not include any property that is owned by a member of its council or boards, agencies, commissions, or other governmental bodies approving, or having responsibility for the approval of, this Agreement. 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 Gartner only upon written permission by the City in accordance with Resolution 82006-1 2 1, 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 Gartner, in performing its obligations hereunder, is acting independently, and the City assumes no responsibilities or liabilities in connection therewith to third parties. 14. GARTNER RELEASES, ACQUITS, INDEMNIFIES, AND HOLDS HARM- LESS 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 GARTNER AND THE CITY AND SHALL SURVIVE THE TERMINATION, EXPIRATION, OR CANCELLATION OF THIS AGREEMENT. 15. It is understood and agreed by the City and Gartner that if the 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 Gartner has removed the 4 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 the ~'~'2iay of(~~, 2008, authorizing the City Manager to execute the Agreement on behalf of the City. 17. This Agreement is entered into by Gartner pursuant to authority granted by its President, G,s~~ m G c..~--~-.~o•, on the ~_H21ay of hQ. ~ ~~ , 20~. 18. This shall constitute a valid and binding Agreement between the City and Gartner when executed in accordance herewith. 19. This Agreement is performable in Brazoria County, Texas. 20. Gartner agrees and covenants to certify annually to the City, while this Agreement is in effect, that Gartner is in compliance with each applicable term of this Agreement. Witness our hands this _~_~ day of 1"1~.{cJ-- 2G~ . ,,~°Q~ARt,q~~,,, ,' 4 .= ` , i ~,~' R1 ATTEST: `>; ~~ CITY OF PEARLAND _.-: _,_ oun . i , T C ~~ Bill Eisen City cretary City Manager APPROVED AS TO FORM: Darrin M. Coker City Attorney 5 A"I'TEST: By: Printed Name: Title: Gartner Coatings ---- --^~ By: -S -- - Printed Name: dir6~ ~'I'^'~~'c Title: P/1c-so<--v: 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 SSA 41 DAY OF [1~~1 Q i C.1'~ , A.D., 20L ss. ~."~wR~~~s"~~ KATHERINE E. BITTICK 3~~ ~ hlotary Public, State of Taxas 'n= My Commission Expires *;¢i:f;~~ a Decemtaor 06, 2011 NOTARY PUBLIC, STATE OF TEXAS Printed Name: ~C1-}1jp .=„~ "' ~ ~ ~i L Commission Expires: f,~ a L-r~_ ~~,L' ( ~ THE STATE OF TEXAS COUNTY OF /,C~fJzG~irB BEFORE ME, the undersigned Notary Public, on this day personally appeared ~e~eGt ~/ae;~t-r1 Q~-s. /~ E„r; of Gartner Coatings, 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 / ~~~ DAY OF .•.,;~~ Angeline Fowler Morayen Notary Pubiic, State d Tsxsa `~~ s; Commission E~itsa: ,.;; ~ " September 5. 200 NOTARY PUBLIC, STA E F TEXAS Printed Name: f~i{.,~~.Z«le. /pi(D,C~~H ~~ My Commission Expires: ~'~~~Z~'/cam 7 12-18-'@7 15:32 FROM-Gartner Coatings 28199736]0 ,_~1 - Feb l_9 No.: 99-3 7-22 643 Panppnalby~lac$IAlpllatrufT¢xaxfuraexcl+ylu+vyrrs,sply. weVtsal 1//•8S Cu(ryri8ha i98~ \Y lhp Slplp [1Ar p} Tpshy ~ o a o Q 4 9 2~ VVA.~ZR~NTT-T DEED ~ a -~e ' C.~ iaat0. January 24, 2000 T-2@4 P@@2/0@4 R-975 EXHIBIT ~ D /; a l7ranro[: Cherotaach, ]Cnc., Formerly Metallurgical TeclertalogiQS, Inc. Grantor's Moiling Addroas (including county): 3503 FoR¢ntosT nxzv$ 8ECURITY FEE 1e01 OALV$STON, TX 7755Q fiNta"S1F-PRES $.Qi C3alveaton •. RHCx)RDIHG 7_4t Ts3'T'F4L., Grantee: aart:aer xnt0rastat Ltd. FEt.E C 4V26~ _ ~~ Grantee's Mailing Address (including county): 14435 t3ax Road CRECK f3.0( Paaarland. Texas "i)Ot}1 ;2f+~i->t~00 8452 2f ifOQ ~ 2:IOPif t16H Brazoria COn9idgration: TEN lhtJU NO/100 DpLLARS ($10.00) , and ocher good and va7.uabla conaidaratian, receipt ot= which is hereby acknowlddged. Property (tnctading any improvements): 9.424 acrFS o£ land and being Lot 28 of Allison Richey Gulf Coast Romp Company'A Part of Suburban (;ardgns Subdivision of S®ction 9, H.T. S.R.R. Co. Survey. Abstract 234, BYazoria County, T4xg6, aCCOrding to th¢ map O.t: >a'eCOrd in Volume 2, Pages 23 and 24, pt the Blat Records, Hra2oria Couraty. T6xaa, and basing more particularly daaeribod by ,ase~te+s and bounds da Follows: BSL~INN=NG at an iron pipe situat6d at. the No.t:thsast corner of said Lot 28 of thQ Allison Richey Gu1F coast Homa Company's Part of Suburban C3ardenm Subdivis3.on ot: Section 9, H.T.& B.R.R. Co. $urvay, AbstracC a34, srazoria County. Tsxas, Eor the Northeast corner of the hicrcin describeQ Lot 28 and also the plmcd of beginning: - TI-ISNC£ South along and with the Sast line of Lot 29, a distance ot: 437.15 faeC to 'an iron gipaa Eor oornar; TKTiNCrs` North 89 daQ. 42 min. West along and with the SouCh line of ~9aid Lot .Continued Reservations Prom and exceptions to Conveyaneo wnd warranty: Atl and singular the restrictions, cascntents, cunalitiwas anal a:awunalats, iC nay, npl:licablc iu and cnl'otti:enblc against the above described property as shown by the records of said county, ~und tuxes for"the current year having been prorated, puytttent of wl.ich is assumed by Grantee- 12-18-'87 15:33 FROM-Gartner coatings "L819973(i1b '1'-'LId4 Ybb3/bb9 r-q/b Continuation of.4ega1 Description t 28, at a distance of 959.70 feat pass an iron rod in the EasC tine of County Road lOB (called Max Rond) and continue on Same eaurse for s total distance of 989.70 Feet to a point for corruar; Tt3ElVCL~' NorCh 00 flag. 12 min. Enat along and with th.e center of COUnty Road lOB, a distance of 437.0 feat to a point for coxnert TfiENCB South B9 Heg_ 42 min. Last at a diatanc® of 30.0 feat paBS an iron rod ire the Eaat ling of County Road 106 (cesllad MaX Road) and continue on same course Por a total distance oP 988.40 Eaac to thq place of bQginning_ NOTE: The Company is prohibited from irasuring the area or Quantity of the land described herein. Any stet®ment in the above laQa1 description of the area or quantity of lanc4 ie not n represQntation that such area or quantity is correct, but is made only for informational ana/o; indenCification purposes acid dOQS not override Stem 2 of Hchedula B hereof. ' _ 12°18-'07 15:33 FROM°Gartner Coatings 2819973630 'f-204 Y1a04/bd4 Y-4't'J Grantor, for she consideration and subject to the raservatiotts fmm and excoptions [o eonvoyance and warranty, gcanta, sails, ., and conveys co Grantee the pmp arty, together with al[ and singular the rights and appurrenancea thereto in any wise beionclttg, to have and hold it to Grantee, Grantee's heirs. executors, adtninistratocs, strccescors, or assigns foaevec. cxrantor bistda lSrancor and Grantor's heirs, txeeutors, administrators, and successors to warrant and Forever defend all and singular ttta proppertyy to Grantee and Crsantea'a heirs, executors, Sdministrators, successors. and assigns against every parson whomsoever tawiiriiy claiming or to claim the same or any part thcreoP, axeapt as Io the reservations from and exceptions [o conveyance and warranty. l When the conceit mquins, singular nouns and pronoone include tfie plural. hnroCach, Snc. 2'KS STP.TF OF TS]tRS covrlTY oa Kaluzzs 8efora ma, a NoCary Pv.blic, on this day pgraonally appeared Charotech, inc., Eica Mecaliurc~ical Tachnologias:, Scztown to m® or proved to ma through a• Taxae Staea IIrive;'a Licenae(a}, to be the porson whose namQ is subsaribea to the for®yoing instrument and acW-owledt3red to mg chat he executed the same i:or she puxposes ertad consideration therein cxp;aaaed,'~ _ t3iven under my hand and aea1, of olifice on thin 24th day oP a7anuary, 2000. MEI,OQY GERLAND ~`,~~/ (~~.0'LG~ Notary Publio. 8tnte of reltas Ny Cotnmlaslon 1=11pitea 04-24-2002 rotary >'ubi3c, state of Texas STATE OFT[JCA5 GOUNTYOABpALORiA 1,1[riCE HUOMAN, GeHO otlha Ceunly C'AUtI in and for BrszoAa County, Tenons tlo IwnOY osnksr Ihet iMa IPatfamcM wee /ILaD pOR RECORDana gic'CO/tOQO inefta OTMGIALRECgRD of ma um• end eats as stempsd haroon Oy ~. ~~`~ rk..~d...-a..-. - ~• C~wMY rXr~. ar ereaoAA CO., Tx AFt'SR lZSCARDING IZ6'IT1RN TO: Gartner Ir-Ce!rasta >:.cd_ FILED FQR RECDR£~ P.O. HOX 1303 HOIISTON, TX 77251-1303 Q~ FE$ -~7 PM f2t 07 attlepw~HO IN'TItB I.Aw ot~ICaotP: KENNSTK D. MCCONN=CO 630 APOLLO HOYJ3TON, TX 77056 raw+rr cl.~~ eeSC$v `~0 g 3a - S`.E ptu g ~ o° ~Cx F 5'~v ~ 5~ ~SY S~r~ ~~ ~ ~ €~ 0 0 __ ~ n t o? e ~'~,-,{{;~ -SIC M - N z vi ~ obi z R NN j o ! ~r ~ „~ - M ° ~ fj o vi c c~ '~ F ~ ., ~ o ,.1.` g °d 5 ~ ~ z 6 ~ N ~ ~ ~ ~~ ~ o _ F r~ a' s a ~ p? z 6m, M a ~`, ~~ i90# - z (j N Y i ~+ ~ Ji L~ d i ~4 ~ ~ #a m ~ ~ Z , m ! 8 "g ~~~ ~~• u~~e ~ 7 fly T ~ ~ °s ' o0 0 ' ~~ ~ 1 5 W o ',~ .. :_.. o a tl a a BLS U N W B t s-.. "_.d. ..._ °s "`~_" '".~ -o z LAW a ,_~:;....F ~. ~ ~ TWO e ~ o z ~= o c ~;;._ _..t .e. - - o~ . Re it ~ * ~'~ R T ` E ~ ~ ~- ~m } > I ~ OWJ t -! i _ir i 1 ~ ^~ !i _ Y $F 1 ~~. - ~ -~. _~ ? g ,oo. . e ••• •.. arox Xwr F z a v xys - .5,. 3 4 e ~~H w•R $ § J r'II ~~aa" ~ a~p~x~ "f ~ ~ ~ ~, z ~ ..~I~. # iii - _q ~~ ~ X68 _ o + ~~ 3^ $ ~q o ca ~~n a z ~~ 'a~l3)~~~I~flll ~'eiief ~FB~ ~ ~~8 gg ~a ~~$! ~ o J1I: 13x.1!! il; ! ~ a.:.~i ~~:~~ ~ ~~~~~ ~~ ~~a~ ~~8llafiF3l3~.Il~1~I3a_~~I{ EXHIBIT C`~> C. Other Estimated Taxes Generated by Protect s (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 Auuraesed Value on Site: }' Land Building de: Fixed Equipment Bus. Personal Property 8e Inventory L Total ofpre-existing value ~ 3 s; o 0 0 <Jan 1 preceding abatement) R. Estimated value of NEW land added Estimated value of NEW improvements (~ 80, ooa Estimated value of NEW fixed equipment 3 0 0, 0 0 0 Estimated value of NEW personal property and inventory added Total of NEW value added ~ F ca . O a O (Total coiu.mns in Sec. II above} III. Total value at end of Tax Abatement (Total Par[ 7 ~ TI) TAX ABATEMENT REQiTESTED S C~i % of eligible property for a term of _~}+ears (Or) ( )Requesting Staggered Tax Abatement Terms as follows: APPEICATIC3N FOia TAX AgATE1VIENT IN CITX (7F IsEAII_LAND It is recommended that this application be filed at least 90 days prior to the beginning of construtction 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 (Z - ~ S - ° ~ Company I~Fame ~~ nTN ~.-!'r C_od i /ti G S Number of Current Employees ~ ~ Address Zl/3 3 ~~ X ~~ ~~ ~ ~ C'`aN ° ~ Annual Sales _ 7 7,~ g J Consecutive years in business ~~ Corporation (~ Partnership ( ) Proprietorship ( ) Please sub»tstfi`nancial statensentsfor the prior two years. PR03ECT INFORIVIATION ~.~ v7?/GCio N Type of facility: Manufacturing ~ Reg. Distribution Center ( ) (See Instructions) Regional Service ( ) Reg. Entertainm-ent Center ( ) ©/J Tl~tiG s ~OP~- ' ~ ~~~' r~ Qther Basic Industry C ) ?C Location address and description of area to be des'gnated as reinvestment zone (attach map showing site and legal description): 2 ~/ 3 3 ~~ k /~D Jac='~2 G /~ti~ 'T}/ °77 ~ 8 / Description of eligible improvements (real property) to be constructed (This includes fixed equipment, buildings, parking lots, etc.): ~ S 3 ov e /3U /c. ~ !/vG ~ .SL...~ie3 '~S`~, o0o L-4;c~r/~vso~'~t, f TJ.,i J U/ct7itiC~ Description of ineligible property to be included in project. (This includes inventory and personal property. j. Will this project require any permits by other federal, state or county agencies? If so, please Iist the name of Yh~~ t, the permitting agency and a description of why and what the permit is needed for: The proposed reinvestment zone is located in: City P~ ~~ ~c n+ County 2JR'~c> R 1 ~ School District ~~ ,~ College District {]~\ l.\ iy C v 1~-.r^~ C ~ 1 ~_ 9 ~ Other Taxing 3urisdictions T~ J2J~'Z-uQ 1 ~e ~.I2~ f iv A ~ ~ Tax ID number Description of product(s) or service to be provided (proposed use): Sri"~'''~ G `- Description of operations, processes involved, general overview: --------------------------- ------- -- - - -- - - 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 ~ MODERNIZATION ( ) --------------------------------------------------------------------------------------------------------- ECONOMIC INFORMATION A. Construction Est~'i-mates 1F MODERNIZATION: Commencement Date: ~ /Q ti ®~ Estimated Economic Life of Construction Man Years: Existing Plant: Years Completion Date: Added Economic Life from Peak Construciion Jobs Modernization: Years B. Permanent Employment Estimates CFTE's) Current Employment ~ 3 _ Current Annual Payroll l ~~ ~~ o d ~ average annual or hourly salary ~ 6 ~ ~~ Number of jobs retained ( )created ( 5 ) at start opening of this project '~ in year ~ ~ 5 yeazs into operation 6 in year / 3 Local Transfer Total Est. Salaries 20 20 20 VARIAI~TCE 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 ( ) NO~ If "YES" provide dates of application, Bearing dates, if held or scheduled, name of jurisdictions and contacts, and letters of intent. COl~~ANY REPRESENFATTVE TO $E CONTACTED Name: ~LO/c Gc-- Gl~li TN G-"~~ Title: ~/~~~ s i O <:.c, Address: Z ~/ 3 3 y~t-~.! p ~C :r{ /~ L ~-iv D J X "7 7-5 ~ J Telephone: zSi' 99 ~~ ~~~°° Authorized Company Official: By: _j .~ - Printed Name: ~~6~2G~=~ .f~~i~.~L Title: ~/Zr -s, a c. •• ~' Revised 1Vovember 21, 2000 INSTRUCTIONS Applicants and projects, must meet the requirements established by the City of Pearland 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 Csuidelines, 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. APPLFCANT 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 1 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 Pearland region. ECONOMIC INFORMATION Permanent Employment Estimates - In estimating the permanent employment, include the total number of jobs retained or created at this sife 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 1 inuxiediately 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 accouat, 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. SAi~IPI.E PROJECT DESCRIPTION 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. SAi~~LE TIME SGHEDUI.E September -Dec 31, 2001 January 1 -Jan 30, 2002 February i-Febniarary 28, 2002 March 1 -March 30, 2002 April 1-November 15, 2002 November 16 -December 25, 2002 December 30, 2002 Legal work, conceptual phase, contractor selection Wetlands study, 1st phase architecture, soils engineering, topographical mapping, detention pond engineering Architectural drawings, final engineering, permits and applications Bids and initial site work Construction Ivlove-in, start up Completion 1D0 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. I5D concurrence? 7. College concurrence? 8_ City concurrence? 9. Letter of Intent 1 O. Hearing noticed on agenda 1 1. Public hearing 12. ISD action 13. College action 14. City action 15. Agreement signed / 1 / / 1 / / / / / / / / / / / / / / / Ga rtnerCoatings THE COATING APPIiCAT10N SPECIALISTS December 18, 2007 Mr. Fred Welch Pearland Economic Development Corporation 3519 Liberty Drive Pearland. Texas 77581 Dear Mr. Welch, Gartner Coatings is planning to add on a 12,000 sq. ft. building and approximately 35,000 sq. ft. of paving to our facility at 2433 Max Rd. In 2000 we purchased a 1 O acre tract on Max Rd. to move our operations from Houston to Pearland_ We buitt a 6,000 sq. ft. office building and a 10,000 sq. ft. production facility. When we moved to Pearland we had about 15 employees and our sales were about 1.8 million. By 2007 we've grown the business to about 33 employees and 4.5 million in sales. Now we're just too overcrowded in our current facility and need to add some more space. The cost of our expansion will be about $680,000 in building and slab and another $300,000 in support equipment. We feel our additional investment in Pearland will prove to be well worth it. Regards, ~_ George Gartner President Gartner Coatings Inc. GG/cs 2433 Max Road Pearland, Texas 77587 287-997-3500 Tel 281-997-3610 Fax gartnercoatings.com December 11, 2007 Mr. George Gartner Gartner Coatings 2433 Maxx Road Pearland, TX. 77581 RE: Planned Development Dear George: First, Let me congratulate you on the award from the PEDC last night_ The Hoard was very impressed by your company and your desire to expand in Pearland. The Board recolnrnended that Gartner Coatings be reimbursed up to $40,000.00 for an extension of water line and fire hydrant to serve your property. It must be built to city standards, designed by an engineer, be properly billed and constructed for payment to be made. There will have to be a city easement obtained for future maintenance and repairs. Additionaily the Board is recommending tax abatement for three (3J years at 50% of aliowable improvements with the city. This is a recommendation only and you must file a request with the city. The tax abatement is approved by the city council and is not guaranteed nor tied to the grant by the PEDC. Your property will. have to be surveyed with a meets and bounds description to set up a reinvestment zone. I have ihoroughiy enjoyed working with you on this project and Look forward to working with you going forward. Sincerely: Gregg A. AlbrStton Director Business Development City of Pearland 3519 LIBERTY DRIVE.PEARLAND, TEXAS 77587.(281) 652-1627~FAX (281) 652-1704.TOLL FREE (800) 240-3684 Memo 'Te: George Sanders From: Gregg Albritton CC: PEDC Board Date: 12/19/2007 Re: Assistance (Infrastructure) Gartner Coatings Project 0715 Gartner Coatings has worked with City staff for several months to create a Planned Development for their property on Max Road. Max Road is one of several mixed use districts in the City where the planning staff is working to have a smooch transition between commerciallndustrial users and residences- Mr. Gartner's PD was approved by Planning and Zoning and City council last month and he is now seeking to construct a 12,000 square foot facility. Project Description Building construction 12,000 square feet -Estimated Cost $653.000 Additional new equipment to support expansion $3DO.Op0 New employment - 9 jobs within 5 years Annual Sates tax paid as this is fabrication and coating application - We receive approximately X4000 per year from his plant from sales and outside purchases. Annual new property taxes to city of Pearland $6000 Part of the infrastructure requirec# in his planned expansion will be the extension of a fire hydrant onto his property. This wilt entail approximately 650 feet of eight inch water Erne and one fire hydrant to meet safety requirements of the fire department. Estimated Cost is $30,000_ ft could run slightly higher after it is engineered- Staff recommends PEDC approve an infrastructure. grant on the basis of job retention (33 current employees) and future employment in the amount of $40,000 to include engineer and design. On a pure cost bass of property taxes and sales taxes received by the City of Pearland this project would pay for itself in four years. Mr. Gartner is being conservative on new job creation but average salary for his employees in currently at $15.00 per hour and estimated to increase to $17.50 over the next fora years. Gartner Coatings has been in business to Pearland since 2001. Gregg Albritton 12-06-'87 14:56 Ff30Nt-Gartner Coatings 2819973610 IVir. Fred Weloh Peariand Economic ~svelopment Corporation _ 3519 Lii~erty Drive Pearlsnd, Texas 77681 T-138 P002 F-328 Dear Fred, Gartner Coatings is planning to add an a 12,OOD sq. ft_ building and approximately 35,000 sq. tt. of paving to our facility at 2433 Max Rd. In order to be in compliance with the new codes we are going to have to bring at least one fire hydrant on to our property. The cost to do this wilt be about $3b,000.00. Any help you can givs us wpuld be greatly appreciated. Regards, -+^ r Georgs Gartner F'residant Gartner Coatings Inc. C~G1GS 2433 Max Road - I'earland, Texas 77581 281-997-3500 7e[ 261-997-3 b10 Fax gar[nercoatings.com The Planned Development District Document (PD) for ~ ~ ~r~= [ a p rrt ~ ~ ~ ~ r~t ~~ 3 ~ t~[ a ~c ~~ a c~ P~a~-~~~d, ~~ ~7~s~ Submitted to: Gi~y~ of ~~arland - --35-'f-9--l=ibert Dr-ive------------------ ---- --- Pearfand, TX 77581 Submitted for: Gar-~ner [t~f~res~s LTD 24-83 fViax Road Pearfand, TX 77581 ~S~IrrE~t~c~G°,~ a~ix~g~ Submrtted by: i\I®r~h~it-~ds Gorts~ructi©~~ 9C)3 Porfi Houstor-t Sfireet t-louston, TX 72029 MO }~ 7`H GVff1(D S Cans[rcrctfc~n, fr~c_ I. O VER~TIE~~V a. Property Information and Surroundang Propserties: The subject property is 99 acres located at 2433 Max Rd, approximately one quarter mile north of FM 518. The Land is zoned as M-L Light Industrial District. On the north, the property is bordered by a SR-12 Suburban Residential lot. On the south and the east, the lan6l is zoned as OP Office 8c Professional District. The west border is Max Road, a road deemed as a "Major Thoroughfare." The land west of Max Road is outside of the Pearland City Limits. b. Current Structures on the Property: Cun-ently, the property contains a 6,000 square foot (SF) office building constructed=• with 100% masonry facade. Additionally, the site has apre-engineered LO,000 SF warehouse builditg and a 1,000 SF Shippuig_and Recetvin~ Building,_both ~~.,y~_____ - - gunge metal panel facade, and a 4000 SF Roof Unit used as a shetter for an enclosed blasting booth. (See Pictures 1.1 and 1.2} ~ 0,000 Sr "' ~ 2,000 sf Warehouse ~ ~ Sandb~asLpg -----s-- Roo Un rt . M~ .tv N~. ~s:. ~ ~~ - I .. Dive • v .~/s~c~N !n9 - !'.iu,~u]/SeiW NucI. YnN ~ ntltrpn a ~;. ~e.,.r j ~3 t ~ P ` ~ ' ~zs Siit ilan ~~((~~ -{ 1~k•eer t~t`Ta,.:N,. - om„ G8 ~~ >~t~ ~ r~~ o ~~r-~v~~~ - Existing Conlditions - 6,300 SP OffFce Buildi~tg Piciune LI -Site wer view Development on 2433 Max Road Page 1 ~~I~ ~I~~ BI<TILD~I`~T(-~` .4r',• ii ~_. P~.,^ '~3~3'4 'Ir~SC~f 1 ill `; I ~I _ __. ~~ •~ I~ ~ g 3~ a~ r_~...y r ~ ~ i. '- . r L j ' ` Pictures I.2 - Existing Bceildirzgs 2'OP: Yieiv of Proyw-ty from Maz Road facirsg East CG[7CKR'ISE FRfJh€ TOP lZIGKT: Office Corzference Room, Office Errtry, Office Halhvay, Operx i7~ai1 Roof Unit, Back Side of Warehouse, Executive Office Development ou 24-33 IvCax Road Fage 2 IFo PURPOSE: To define procedures in the modification of the existing property and structures in acost-effective mariner appropriate to its pre-existing nature, M-1 classification and envu-omnental sun-oundings. These modifications are necessaty in order to increase additional site utilities, landscaping, and structures to fulfill a tvvo phase expansion as described below. Nt?T'E: .41Z construction and development, unless other-wise stated, will adlxere to tlxe UDC Second Editiorz - March 2D07. (Referred to for the remainder of this document as "UDC'J III. PD GUIDEI I1~rES ___- ._ __-_ ________..____A_.__SI=TPACiCS A~TD L~NDSCAP1r+ BUFFER-:_P_ez_the_L)~C,_Yhe25'_Set__._ Back anal 25' Landscape Buffer requirement for Non-lesidential to Residential Land shall be established and maintained on the North Property Line with the following exceptions; i. For the area north of the existing 10,000 SF warehouse building, the established 25' Set Back/Landscape Buffer needs to be adjusted to 10' due to pre-existing conditions. The original building was constructed under previously approved code at ] O' off the north property line. b. FACADE: In order to meet the standard of appearance set by the existing buildings onsite, the following guidelines will be maintained: i. Eat Ling Buildings: No changes shall be made to the exterior facades of the buildings in place ii- Add-on/Extension for Existing Structures: The requirements of the UDC are to be met. In order to promote visual continuity, materials shall be the same as the existing structures. iii. 1\Tew Free Standing Structures: The requu-ements of the UDC are to be met with the following exception: 1 . For the proposed new 4,000 SF warehouse building (noted as PHASE I A), the fagade requirement of 1 00% masonry on the side visible from the thoroughfare and 50% on the sides shalt be abandoned for the west and south sides due to the location of the structure in relation to the existing ] 0,000 5F warehouse. The view of the front (west) side of this structure will be completely obsvlrcted from view from the thoroughfare. Additionally, with the installation of a vegetation screen wall parallel to Max Rd, the sides of this building will not be visible. For the Nortlt po1-tion of the building, the 50% masony requirement will be upheld due to the exposure to the Residential property to the north. c. LA_l!'D SCAPE: All of the requirements of the UDC will be met at time of permit application for new construction. Development on 2433 Max Road Page 3 NC3TE: I mxdscape mentioned in this PD is to be iratalled before any other construction begins upon receiving approval for Phase I of construction. i. In addition to what is requu~ed, ui order to enhance the appearance of the property, and to add additional screening, the following landscaping shall be added: I. SCI2.EE1`IING: A total of sixty-six Oleanders will be planted parallel to Max Rd. on the north side of the warehouse, and to the south and east>of the office building along side the rear of the parking lot, as well as perpendicular to Max Rdad in between the office and - _ _ wazehouse. a- Plants shall be planted at 4' on center in locations shown on Picture 6.1 at the following quantities: i. North of Wareleouse: 4 PIartts (I S LF) ii. In Between ~Slarehouse and Office: 25 Plants (100 LF) iii- South and East of Office: 37 Plants (145 LF) b. Plants shall be 4' tall at planting and 8' tall within the Frst l2 months of growth 2. AIIDITIONA>[, STREET TREES: Crape nz~z-tles shall be planted at the frontage of Max Road at a rate of I" Caliper per 1 O linear feet of frontage (I~fax Road fontage 437 LF) a. 15-gallon crape myrtle plants (4" Caliper Each) are to be planted at 40' on tenter: 1 ] Plants Total b. Plants shall be 6' at planting and 8' tall withiu~ the fast 12 months of growth d. SIBE~~VALI£S: Payment shall be made to the City of Pearland in lieu of the 6' x 438' sidewalk along Max Road per Section 3.2.11.1(g)(1) of the 2007 UDC. e. FEIgCIIVTGe i. Regarding Ilte 6' masonry fence required on the north border abatting the SR-12 property, an abandonment of this requirement is proposed for the following reasons: 1. The existing border of the North side of Land contains heavy vegetation that currently serves as an extremely effective barrier. The dest7uction of this vegetation for the desired result is unuecessaxy. (see Pictures 3.1 and 3.2} 2. The cun-ent drainage of the noiih side of the property relies on an established Swale that i:; directly dependant on the Bevelopment on 2433 Max Road Page 4 existing conditions. A masonry wall would impede the established drainage of this land. ii. The vegetation along the north border shall be prese2ved and maintained. As previously stated, if removed, improvements will be made to comply with all applicable codes. iii. The existing wrought iron fence on the west border along Max SCREENING: As previously discussed in the landscaping section, the use of a landscape screening wall shall be installed and maintained in order to achieve the following i. Per Section 4.2.4.1(d)(1)a. of the 2007 UDC, the proposed Landscape screen shall sere•e the west property line to conceal the existing areas used as "Outside Storage" ii. On the North, East and West property lines, the 25' landscape buffer shall serve as alternative to a 6' masonry wall and also serve as screen for storage areas 1. A 10' area of the 25' landscape buffer shall be deemed "protected from removal" and shall be left undisturbed iii. Additional storage areas shall be covered under this proposed screen and shall be at least 250' off the Max Road properly line and 25' off of the north, east, and south property lines Development on 2433 Max Road Page 5 Pictures 3.7 attd 3.2 -Existing -~egetation Fence orx North Border L~/. SUM14'IAId,~' bF PROPOSED EXPAIVS.IbI`vT (IRT ORDER O1? I1~F.STALLATIOIvT~ a. SITE~~t~oRl~/LANDSCAPE: i. SIDEWALK- O~~c~ner agrees to pay into sidewalk account ii. MASONRY FENCE - Existing Vegetation to act as screen wall in place of 6' masonry fence on North Border iii. LANDSCAPE - 66 oleanders planted per PD as screening, 11 Crape ivlyrtles to be planted as additional street trees b. CONSTRUCTiDI~ PRASE I: i. PHASE I-A: 85' x 50' Free Standing Warehouse Building 1 . FA4.A_DE: To meet conditions of PD-as discussed 2. All other issues to comply witL`i UDC requirements ii. PFIASE I- B.: 40' x 49' Extension of Roof Unit --- - - - - 1. All construction to comply with UDC requu•ements c. SUMMARY OF PROPOSED EX_F'ANSIOl\T (CO1\TSTRUCTI©1V P'IIASE IIj: i. PHASE II-A: Building Square footage and details TBD but not to exceed 11,999 SF 1. All construction to comply with UDC requu-ements ii. PHASE II-B: Building Square footage and details TBD but not to exceed 11,949 SF L Al] construction to comply with UDC requirements fee ~ie~~.[Y'~ 6~~ f©r G`o~~I~LetFed Ex~3a.Iasiofi hTOTES: L. The locat6ons v£ bESildings in all dracti~ings contained wiRlzin this PD are conceptual, and ditstensioned dsaccTings ~vitl €alio«~ at once of permit application 2. The Sciuare I+'oatages of all ltuileiittgs listed ~~vltlzirf the PD may vary slightl}~, btit sFial[ a~.vt increase lsy nive-e titan 15% of tite listed mount. 3_ All other eequirentents ~c~ilL adhere to t&e aplsiical~le ordinance established 6y tlse UDC and the underlying M-f requireeeaents_ Development ou 2a-33 1\~lax Road Page 6 5 c. -o cx] ~ _ - ~ z q A ~ - o ~,.; o ~ ~-: °' ~ ~ ~ ~~ ~ ° ,~ ~~ ~ :` ~ ~ ~ _ ~ ~ ,.. ._ ~ ~ -a - f _ - -=--°-=- -- ---- --- - _ _ - --- ~- `-~'sa. - - - - r ca v ---- ------ z ~ ~ ~ ~ ~ gg KzO~ ~f p" ~ ~ v ~ ~ ~ ~ ~ r-. w cax~ _ °' - w ~ g ~ ~- o., ~ 0 3 ~~,ti' ,_ '~ ~o ~k ~~~ ~f 1 ~ ~ (~v Ci ~ ~~\ R Q ^ ~ _ O ~~ w ~n ¢ f 0 z k ~ ~ w ,~ - O v~ O °' pZ ~.. `ice; _ - _.". E_ ~v`~p~~ ~~11 ~~ P x ~ F rt. ~~f~( __. .. __ - ..:_ f -:. ~O O" wT T ti5 a0~' ~ i Development on 2433 Max Road gale 7 EXHIBIT "D" MANPOWER REPORT I, Building Materials, LTD. of Gartner Coatings, do certify that on 20 there were individuals employed full time at Gartner Printed Name: Title: Date: THE STATE OF TEXAS COi_JNTY OF BEFORE ME, the undersigned Notary Public, on this day personally appeared of Gartner Coatings, being by me duly sworn on his/her 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 to certify which witness my hand and official seal. NOTARY PUBLIC, STATE OF TEXAS Printed Name: My Commission Expires: