Ord. 1128 09-29-03ORDINANCE NO. 1128
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, FINDING THAT THE CITY HAS ESTABLISHED GUIDEI. INES,4ND
CRITERIA FOR GRANTING TAX ABATEMENT PURSUANT TO
RESOLUTION NO. R2003-121; DESIGNATING AND DESCRIBING A
REINVESTMENT ZONE (TO BE KNOWN AS REINVESTMENT ZONE//11),
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 8, 2003, 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. 1128
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 #11.
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. 1128
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 8th day of
September , A.D., 2003.
3
ORDINANCE NO. 1128
ATTEST:
c~NG'L~~
SECRETARY
TOM REID
MAYOR
PASSED and APPROVED ON SECOND AND FINAL READING this the 29th day
of September , A.D., 2003.
ATTEST:
~~S~i~E TFA R~'t'Gr/y
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
4
Exhibit "A"
Ordinance No. 1128
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,.~s City Manager ("City"), and South Texas
Projects, Inc., duly acting by and througl~"'~JJj_ /~gh,,',<./' , its President ("STP").
WITNESSETH:
WHEREAS, on the 29th day of September, 2003, the City Council of the City of Pearland,
Texas, passed Ordinance No. 1128 establishing Reinvestment Zone #11 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 has adopted Resolution No. R2003-121, 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. R2003-121 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. 2003-121 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 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, STP 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 STP's improvements on the Premises, described in Exhibit "B"
("Improvements") will cost approximately Three Million Dollars ($3,000,000.00) and is to be
substantially complete on or about October 31, 2004; provided, that STP shall have such additional
time to complete the Improvements as may be required in the event of "force majeure" if STP is
diligently and faithfully pursuing completion ofthe Improvements. For this purpose, "force majeure"
shall mean any contingency or cause beyond the reasonable control of STP 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 STP), 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. STP 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. STP 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 thereofi
In further consideration, STP shall thereafter, from the date a Certificate of Occupancy is issued
until the expiration of this Agreement, continuously operate and maintain the Premises as STP,
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. STP agrees and covenants that the Improvements shall provide approximately 14jobs
during the period of the abatement, beginning with 10 employees in 2004. Accordingly, STP 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.
Said abatement shall be an amount equal to seventy five percent (75%) of the taxes assessed upon
the increased value of the Improvements and Fixed Equipment, annually for a period of two (2) years
beginning January 1, 2004, and ending December 31, 2005, and fifty percent (50%) of the taxes
assessed upon the increased value of the Improvements and Fixed Equipment, annually for a period
of two (2) years beginning January 1, 2006, and ending December 31, 2007, and twenty five percent
(25%) of the taxes assessed upon the increased value of the Improvements and Fixed Equipment,
annually for a period of one (1) year beginning January 1, 2008, and ending December 31, 2008, 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 STP to the chief appraiser of said district. Estimated values, estimated abated values,
and estimated base year values for the Improvements are listed in Exhibit "B".
6. STP further agrees that the City, its agents and employees shall have the fight 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. In accordance with Resolution
No. R2003-121, the City will conduct at least one inspection annually to ensure compliance.
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 STP written notice of such violation. For the
purposes of this Agreement, STP shall have ten (10) days from the date of the notice to cure or
remedy such violation. If STP fails or refuses to cure or remedy the violation within the ten (10) day
period, STP 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. STP 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 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 Improvements for which an abatement has been granted are
not completed in accordance with this Agreement; or (2) STP 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) STP breaches any of
the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that
STP defaults in its performance of(l), (2), or (3) above, then the City shall give STP written notice
of such default, which notice shall be delivered by personal delivery or certified mail to:
· If STP 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
3
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.
I0. 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 peualty; interest will be
charged at the statutory rate for delinquent taxes as deten'nined by Section 33.0l 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 stated in paragraph 8 or the termination date stated in paragraph 9,
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. R2003-121.
11. The City represents and warrants that the Premises does not include any property that
is owned by a member o fits council or boards, agencies, commissions, or other govenunental 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 STP only upon
written permission by the City in accordance with Resolution R2003-121, which pemfission shall not
be unreasonably withheld. No assignment shall be approved if the assignor or assignee are indebted
to the City for ad valorem taxes or other obligations.
13. It is understood and agreed between the parties that STP, in performing its obligations
hereunder, is acting independently, and the City assumes no responsibilities or liabilities in connec-
tion therewith to third parties.
14. STP RELEASES, ACQUITS, INDEMNIFIES, AND HOLDS HARMLESS TIlE
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 WI [ATSOEVER CItARACTER OR
NATURE, INCLUDING ATTORNEYS' FEES, WI[ICI[ MAY ARISE AS A RESULT OF
TIllS AGREEMENT. Tile PROVISIONS OF TillS SECTION REFI.ECT TIlE
EXPRESSED INTENTIONS OF STP AND TIlE CITY AND SHALL SURVIVE Tile
TERMINATION, EXPIRATION, OR CANCELLATION OF THIS AGREEMENT.
15. It is understood and agreed by the City and STP that if the Premises has been
designated and taxed as agricultural land pursuant to Chapter 23, Subchapter C, Tax Code,
that this Agreement shall not be effective and no abatement granted until STP has 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 the 13th day o fOctober, 2003, authorizing the City Manager to execute the Agreement on
behalf o f the City.
This Agreement is enter-~d into by STP pursuant to authority granted by its President,
't) 0Z~,4,//, on thec~ ] day of ~ )T./~ , 2003.
18. This shall constitute a valid and binding Agreement between the City and STP when
executed in accordance herewith.
19. This Agreement is performable in Brazoria County, Texas.
20. STP agrees and covenants to certify annually to the City, while this Agreement is in
effect, that STP is in complimme with each applicable term of this Agreement.
Witness our hands this ,.~ '3 --day of
ATTEST:
By:~__
By:
CITY OF PEARL, AND
Bill Eisen
City Manager
APPROVED AS TO FORM:
Dan'in M. Coker
City Attorney
5
ATTEST:
By:
Printed Name:
Title:
SOUTH TEXAS PROJECTS, INC.
By:
Prinl~°~'~
Title:
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
~)~,~ ~-/- ., A.D., 20
DAY OF
t~ xC'?J.e,~ PERLA,N. LEHMAN
~~] My Commlsstor~ Expires:
~ ~ APRIL ~, 2v05
PfintedName: /~r'/~. ,,~/, ~e_,d,,n-e.-,.-c.-
Commission Expires: ,~/o,-// ~ ,,~o,~.S-'
THE STATE OF TEXAS
COUNTY OF
BEFORE ME, the undersigned Notary Public, on this day personally appeared
, President of South Texas Projects, Inc., 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
Oe-rots£1?, , A.D., 20 o '3
SEAL OF OFFICE THIS ~725r DAY OF
My Commission Expires: 1.2 ] Z7 ]0~]
7
PROPERTY DESCRIPTION
A 7.6525 ACRE TRACT OF LAND OUT OF LOTS 45 AxNrD 49 OF THE W.
ZYCHINSKI SUBDIVISON OF THE H. T. AND B.R.R. CO SURVRY, SECTION 3;
ABSTRACT 232, BRAZORIA cOUNTY, TEXAS, ,AND BEING PART OF AN 18.059
ACRE TRACT DESCRIBED IN DEED RECORDED IN' VOLUME 1020, PAGE 856
OF THE DEED RECORDS OF BRAZORIA COUNTY, TEXAS, AND BEING MORE
PARTICULARY DESCRiBED AS FOLLOWS: BEARINGS BASED ON RECORDED
DEED;
BEGINNING AY A FOUND 5/8 INCH IRON ROD FOR cORNER IN THE NORTH
RIGHT-OF-WAY LkNE OF HALIK ROAD. ( 60 FOOT ROW ) WHICH BEARS
SOUTH 89 DEG. 57 MIN. 20 SEC. WEST A DISTANCE OF 676.77 FEET FROM A
5/8 INCH IRON ROD FOUr'ND AT THE 1/qTERSECTION OF THE WEST RIG'fiT-OF-
WAY LINE OF STATE HIGHWAY 35 AND TIlE NORTH RIGHT-OF-WAY LINE
OF HALIK ROAD ALSO BE~'G THE SOUTHEAST CO~NER OF THE
AFOREMENTIONED 18.059 ACRE TRACT;
THENCE SOUTH 89 DEG. 57 MiN. 20 SEC. WEST ALONG THE NORTH RIGHT-
OF-WAY LINE OF HALIK RO,?RA DISTANCE OF 497.50 FEET TO A 5/8 INCH
IRON ROD FOUND FOR CORNE , BEING THE SOUTHW'EST cORNER OF Tt-fE
18.059 ACRE TRACT;
THNECE NORTH ALONG THE WEST LINE OF SAID 18.059 ACRE TRACT, AT A
DISTANCE OF 596.40 FEET PASSES ~[~.E COMMON LINE BETWEEN LOTS 45
AND 49, CONTAINING IN ALL A TOTAL DISTANCE OF 670.04 FEET TO A 5/8
N
INCH IRON ROD FOUND FOR COW ER, BEING THE NORTHWEST CORNER OF
THE 18.059 ACRE TRACT;
THENCE NORTH 89 DEG. 57 MIN. 20 SEC. EAST ALONG THE NORTH LINE OF
SAID 18.059 ACRE TRACT, A DISTANCE OF 497.50 FEET TO A FOUND 5/8 INCH
IRON ROD FOR CORNER;
~[IarENCE SOUTH AT A DISTANCE OF 75.60 FEET PASS THE COMMON LINE
BETWEEN LOTS 45 AND 49, CONTINUING IN ALL A TOAL DISTANCE OF
670.04 FEET TO THE PLACE OF BEGIN2qING AND CONTAINING 7.6525 ACRES
OF LAND MORI~ OR LESS.
JOSE H. GON~~~. # 4478
South Texas Properties
Year
Investment
.6860/100
1 3,000,000.00 $20,580.00
2 3,000,000.00 $20,580.00
3 3,000,000.00 $20,580.00
4 3,000,000.00 $20,580.00
5 3,000,000.00 $20,580.00
TAX ABATED
TAX GAINED
Gross Tax Abatement% Abated Net Tax
%
75% $15,435.00 $5,145.00
75% $15,435.00 $5,145.00
50% $10,290.00 $10,290.00
50% $10,290.00 $10,290.00
25% $5,145.00 $15,435.00
$56,595.00
$46,305.00
Tax Abatement Scenario
based on phased in taxes
EXHIBIT
8/11/2003
EXHIBIT
APPLICATION FOR TAX ABATEMENT IN THE
CITY OF PEARLAN'D
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 [n.vtruclionx
attached before executing this application. This application will become part of the agreement
and any knowingly false representations will be grounds fi)r the City to void the agreement
Original copy of this request should be snbmitted to the Pearland Economic Development Corp
Executive Director, City of Pearland, 3519 I.iberty [)rive, Pearland, Texas 77581. Please attach
exhibits and additional information.
APPLICANT INFORMATION
Application Date August 4, 2003
Company Name South Texas Proj__e~__L_s_z__!0c. Number of Current Employees
Address 9321D~eldgm~ltou,_TX _22025
Annual Sales 3.6 Million
Consecutive year.q in husiness 14
Corporation (x)
Partnership (
Prc!prietorship ( )
Please su bm it fin an cial slatem en ts ]~r tit e prt or t~,o yearx.
PROJECT INFORMATION
Type of facility: Manufacturing ( ) Reg Distribution Center [ )
(See h~xlructions) Regional Service ( ) R. eg Entertainment Center ( )
Other Basic Industry ( )
Location address and description of area to be designated as reinvestment zone (altach map
showing site and legal description): Halik Road (see attached)
Description of eligible improvements (real property) to be constructed (This includes fixed
equipment, buildings, parking lots, etc) (3) 40320 Sq Ft office warehouse buildinci5
with detention pond and parking for facility.
Description of ineligible property to be included in proicct (This includes invento[v and personal
vehicles ~d forklift will ~ include. No invento~ for_jobs_is ~nt~in~.~
Will this proiect require any permits by other f~deral, s~aic orcounty agencies'? If so. please list
~he nanm of tim pc[mit, tim permitting agency and a (Ic~criplion of wt~y and what thc permit is
~eedcd t~-n- No .......
The proposed reinvestment zone is located in:
City
County
School District
College District
Other Taxing Jurisdictions
Pearland
Brazoria
Pearland ISD
N/A
Drainage district #4
Tax [D number
Description of product(s) or service to be provided (proposed use): ......................
Office warehouse space that will be leased ancl_house .qn,~th_Texas Project.-off-lc-es.
Description of ope['ations, processes involved, general overview:
ATTACIt 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 PI.ANT (X) I'{XPANSION ( ) MODERNIZATION ( )
ECONOMIC INFORMATION
A. Construction Estimates
Commencement Date:
Construction Man Years~
Completion Date:
Peak Construction Jobs
Oct 2003
[F MODERNIZATION:
Estimated Economic Life (it'
Existing Plant: ......... Years
_S_p_r_~_ng 2004 Added Economic [.ife from
5-1 0 Modernization: Years
B. P~e£_nka_~_te__nt !}_m_ lpJpjment Estimates
Current t-:~mployment 14
Current Annual Payroll _~770,000.00 average annual or hourly salary_ N/A .
Number of jobs retained (. 14 ) created ( 2-3 )
at starqopening of this project 1 4 in year 2003
5 yea[s into operation 16+ in year _2_Q0_8 ..........
I x~cal Transfer Total list Salahes
C. Other Estimated Taxes Generated.by_ Proje_ct
( 1 ) Sales Taxesl
20 '$
20 '$ ......................
20 ' $
20 '$
20 -$
20 '$ .....................
20 '$
20 -$
20 '$
20, '$ ...............................
(2) Other Taxes o~ fees (ifknown, impact fees, building fees, etc.):
D Estimated Ap_praised Value on Site
1. Total of'pre-existing value (Jan I prcoMing abatement)
II. Estimated value oFNEW 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
(Fora] colmnns m Sec. FI above)
Total value at end of Tax Abatement
$_6~,8 _8
lhdlding
& Fixed
Equipment
3 Million
3 Million
Bus. l~cr.x'onal
l~ro[,erO,
& Irt vtrtttory
TAX ABATEMENT REQUESTEI)
100 . __%/o of eligible property [bt a term of .... _7 ..... years (Or)
( ) Requesting Staggered 'lax Abatement Terms as follows
VARIANCE
Is the applicant seeking a variance under Section 3(f)
of the Guidelines?
YES ( ) No (x)
If"Y[£S" attach required supplementary information
OTH'FzR ABATEMENTS: Has company made application
for abatement of this project by another taxing
jurisdiction or nearby counties?
YEs ( ) NO (x)
If"YES" provide dates of'application, hearing dates,
if held or scheduled, name of jurisdictions and
contacts, and letters of' intent.
COMPANY I~.EPRISSENTATIVE TO lie CONTACTED
Name: K_ryste Dolen
Title: Flanager
Address. 9321 Me lck-um
_Hp~u_s__t_9~t Tx 77075
Telephone
Authorized Company O~cial:
Printed l~tme: 0 I<ryst_e Dolen
Title: rqanacjer
[¢¢vtscrl N(~vcnlt~c; 21. )DO0
SAMPLE PROJECT DESCRIPTION
The project will be the construction ora 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 l-February 28, 2002
March I - March 30, 2002
April l-November 15, 2002
November 16 - December 25,
December 30, 2002
2002
Legal work, conceptual phase, contractor selection
Wetlands study, 1a phase architecture, soils engineering,
topographical mapping, detention pond engineering
Architectural drawings, final 'engineering, permits and
applications
Bids and initial site work
Construction
Move-in, start up
Completion
DO NOT WRITE IN TEllS AREA - FOR PROCESSING PURPOSES ONLY
1. EDC contact
2. Precinct
3. Jurisdictions notified / /
4. Initial review completed / /__
5. Review circulated / /
6. lSD 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 / /
I 5. Agreement signed / /
EXHIBIT "D"
MANPOWER REPORT
I, Jeff Dolen , ~
of South Texas Properties, Inc., do
certify that on October 21 ,2003 there were 9 individuals employed full time at
South Texas Properties, Inc.
Title:
Date:
THE STATE OF TEXAS §
COUNTY OF Harris §
BEFORE ME, the undersigned Notary Public, on this day personally appeared
Jeff Dolen , CED of South Texas Properties, Inc., 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 21 day of October
2003, to certify which witness my hand and offici~J.~l. (/~, //~.
~ NOlIYl=~ 81ate ofTexll I NOT/~RY }~UB~C, S~ATE OFt/TI~xAS
~ My C~ion Ex~ 212VP7
APPLICATION FOR TAX ABATEMENT IN THE
CITY OF PEARLAND
It is recommended that tiffs application be filed at least 90 days prior to the beginning of
construction of the installation of equipment. The filing of this document acknowledges
famili,'u'ity and conformance with Guidelines and Criteria for Granting Tax Abatement in a
Reinvestment Zone Created in the City of Pearland (attached). Please review Inxmtctions
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 August 4, 2003
Company Name South Texas Projects, I_nc. Number of Current Employees 14
Address 9321 MelOm±m.. lqc~n; q'x 77{375
Annual Sales 3.6 Million
Consecutive years in bnsiness 14
Corporation (x)
Partnership ( )
Proprietorship ( )
Please su btnit finan cid statemen ts for th e prior two years'.
PROJECT INFORMATION
Type of facility: Manufacturing ( ) Reg. Distribution Center ~: )
(See b~structions) Regional Service ( ) 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): Hal±k Road (see attached)
Description of eligible improvements (real property) to be constructed (This includes fixed
equipment, buildings, paring lots, etc.): (3) 40320 Sq Ft office warehouse buildings_
with detention pond and parkinq for facility.
Description of ineligible property to be included in project. (This includes inventory and personal
property.): Personal prpperty is all office furniture and equipment. The company
vehicles and forklift will be included No inventory for jobs is maintained.
Will this project require any permits by otl~er 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: No
The proposed reinvestment zone is located in:
City Peztrland
County Brazoria
School District Pearland ISD
College District N/A
Other Taxing Jurisdictions Drainage district #4_
Tax ID number
Description of product(s) or service to be provided (proposed use):
Office warehouse space that will be leased .~!BCLt~-qe .q~n~h Texas p_r~ offices.
Description of operations, processes involved, general overwew:
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.
NEWPLANT ~x) EXPANSION ( ) MODERNIZATION ( )
ECONOMIC INFORMATION
A. Construction Estimates
Commencement Date:
Construction Man Years:
Completion Date:
Peak Construction Jobs
Oct 2003
_Spr$nq 2004
5-10
.IF MODERNIZATION:
Estimated Economic Life of
Existing Plant:
Added Economic Life from
Modernization:
Years
Years
B. Permanent Em_p2%,ment Estuna~SA
Current Employment 14
Current Annual Payroll _$770,000.00 ~
Number of jobs retained ( 14 ) created ( 2-3 )
at start/opening of this project 14
5 years into operation 16+
20
Local Transfer
average annual or hourly salary_N/A _
in year 2003
in year 2008
Total Est. Salaries
C. Other Estimated Taxes Generated by Project
(1) Sales Taxes:
20 :$
20
20 :$
20 :$
20 :$
20
20 :$
20
20 :$.
20 :$
(2) Other Taxes or fees (if known, impact fees, building fees, etc.):
D. E__stimated Al!Il_raised Value on Site:
I. Total of pre-existing value
(Jan 1 preceding abatement)
Iii.
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)
Land
~68,870.Q0_
Building
,t Fixed
Equipment
3 Million
3 Million
Bus. Personal
t¥operty
& Inventory
N/A
HI. Total value at end of Tax Abatement . $3,068,_87___0 00
(Total Part I & II)
TAX ABATEMENT REQUESTED
100 % of eligible property for a term of 7 _years (Or)
( ) Requesting Staggered Tax Abatement Terms as follows:
VARIANCE
Is the applicant seeking a variance under Section 3(f)
of the Guidelines?
YEs ( ) NO (x)
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 (x)
If "YES" provide dates of application, hearing dates,
if held Or scheduled, name of jurisdictions and
contacts, and letters of intent.
COMPANY REPRESENTATIVE TO BE CONTACTED
Name: Kryste Dolen
Title: Manager
Address: 9321 Meldrum
Telephone:
, Houston_L TX 77075
~713-947 9!77-
Authorized Company Official:
Prin~-~---~m~'. 0 ~'~y~te Dolen
Title: Manager
Revised November 21, 2000
SAMPLE 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.
SAMPLE TIME SCHEDULE
September - Dec 31,2001
January 1 - Jan 30, 2002
February 1-February 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, 1~t phase architecture, soils eng/neering,
topographical mapping, detention pond engineering
Architectural drawings, final engineering, permits and
applications
Bids and initial site work
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 /__/__
SOUTH TEXAS PROJECTS,
9321 MELDRUM
HOUSTON, TEXAS 77075-2311
713- 947-8177
713-944-0450 FAX
WWW. SOUTHTEXASPROJECTS.COM
· PROJECT SCHEDULE
TO DATE;
PROPERTY PURCHASED, PLaTT DEVELOPMENT,
PEARLAND DEVELOPMENT MEETING, PHASE I
ENVIRONMENTAL. SOIL TEST, CONSTRUCTION
ESTIMATES, PARTIAL BIDDING
IST P&CZ
AUG MEETING
PRELIMINARY PLAT SUBMITTAL
SECOND P&CZ
AUG MEETING
PLAT APPROVAL
AUG I-AUG 50
ARCHITECTURAL DRAWINGS, FINAL ENGINEERING
PERMITS AND APPLICATIONS, BEGIN SITE WORK
SEPT I-OCT 51 CONSTRUCTION-PHASE ONE
NOV I-NOV 50 COMPLETION AND MOVE-IN
· COMPANY OFFICIALS AND AGENTS
PRESIDENT;
PROJECT MGR;
MARKETING &
MANAGEMENT;
CAD & OFFICE
SUPPORT;
JEFF DOLEN
RANDALL GLENSKI
KRYSTE DOLEN
CARL JONES
ARCHITECT;
PLAT DESIGN;
BAXTER GROUP
PAKSIMA GROUP, INC.
PROPERTY DESCRIPTION
A 7.6525 ACRE'TRACT OF LAND OUT OF LOTS 45 AxNrD 49 OF THE W.
ZYCHINSKI SUBDIVISON OF THE H. T. AND B.R.R. CO SURVRY, SECTION 3;
ABSTRACT 232, BRAZORIA COUqqTY, TEXAS, AND BEING PART OF AN 18.059
ACRE TRACT DESCRIBED IN DEED RECORDED IN' VOLUME 1020, PAGE 856
OF THE DEED RECORDS OF B1L4.ZORIA COUNTY, TEXAS, AND BEING MORE
PARTICULARY DESCRIBED AS FOLLOWS: BEARINGS BASED ON RECORDED
DEED;
BEGINNING AT A FOUND 5/8 INCH IRON ROD FOR CORNER IN THE NORTH
RIGHT-OF-WAY LLNE OF HALIK ROAD. ( 60 FOOT ROW ) WHICH BEARS
SOUTH 89 DEG. 57 MIN. 20 SEC. WEST A DISTANCE OF 676.77 FEET FROM A
5/8 INCH IRON ROD FouqqD AT THE INTERSECTION OF THE WEST RIGHT-OF-
WAY LINE OF STATE HIGHWAY 35 AND THE NORTH RIGHT-OF-WAY L~E
OF HALIK ROAD ALSO BEING THE SOUTHEAST CORNER OF THE
AFOREMENTIONED 18.059 ACRE, TRACT;
THENCE SOUTH 89 DEG. 57 MIN. 20 SEC. WEST ALONG THE NORTH RIGHT-
OF-WAY LINE OF HALIK RO,q_D A DISTANCE OF 497.5.0 FEET TO A 5/8 INCH
IRON ROD FOUND FOR CORNER, BEING THE SOUTH~q~ST CORNER OF THE
18.059 ACRE TRACT;
THNECE NORTH ALONG THE WEST LINE OF SAID 18.059 ACRE TRACT, AT A
DISTANCE OF 596.40 FEET PASSES ~q-!E COMMON LINE BETWEEN LOTS 45
AND 49, CONTAINING IN' ALL A TOTAL DISTANCE OF 670.04 FEET TO A 5/8
INCH IRON ROD FOUND FOR CORNER, BEING THE NORTHWEST CORNER OF
THE 18.059 ACRE TRACT;
TI-IENCE NORTH 89 DEG. 57 MIN. 20 SEC. EASI ALONG IHE NORTH LINE OF
SAID 18.059 ACRE TRACT, A DISTANCE OF 497.50 FEET TO A FOUND 5/8 INCH
1RON ROD FOR CORNER;
THENCE SOUTH AT A DISTANCE OF 75.60 FEET PASS THE COMMON LINE
BETWEEN LOTS 45 AND 49, CONTINUING IN ALL A TOAL DISTANCE OF
670.04 FEET TO THE PLACE OF BEGINNING AND CONTAINING 7.6525 ACRES
OF LAND MORI~ OR LESS.
Jose H. C~NZAL~ ILP.~/8. # 4478
JOB #306-076c'
Rese~c~,oy
SOUTH TEXAS PROJECTS,
9321 MELDRUM
HOUSTON, TEXAS 77075-2311
713- 947-8177
713-944-0450 FAX
WWW. SOUTHTEXASPROJECTS.COM
R£STRO(O
OCFICE
BAY DOOR
1500 Square Feet
2.5' wide x 60' deep
10' × 20° office
6' x 6' Restroom
12' x 16' boy door
VOL, 1650 PG, 452 B.CD.R.
LOT 49
.g
25'~LPG.$ET~ACK~
X
4876
: ."...:-,...:
48 74
I
I ,LJ, J,..L II
VOL,
35' DLDG SETESACK -"~~ ~ ~ROJECT 5IGN ~
...x.4~ .~ ....... ~ ....... ~:A~ _ ~.~?? / ~ ....... !?~:L_.x.4AL ..... ~ ........... ~=~ ........
48 56 48.58 48,68 4846
HALIK ROA
.... . '... , .. ' ;'t~'~
48 55 ~8.55 48.65 48.53 [ocr ~ ~HAt~48,46
51TE PLAN