HomeMy WebLinkAboutResolution No. 2002-37 RESOLUTION NO. R2002-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, AUTHORIZING THE MAYOR TO EXECUTE
AND THE CITY SECRETARY TO ATTEST A TAX ABATEMENT
AGREEMENT BY AND BETWEEN THE CITY, BAYWOOD HOLDINGS
LTD. CO., AND BAYWOOD MEDICAL ASSOCIATES, PA, RELATED TO
PROPERTY LOCATED WITHIN REINVESTIVIENT ZONE NO. l.
* * �x * �x *
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS:
Section l. That the Mayor and City Secretary be, and they are hereby, authorized
and directed to execute and attest, respectively, a Tax Abatement Agreement by and between
the City, Baywood Holdings Ltd. Co., and Baywood Medical Associates, PA, related to
property located within Reinvestment Zone No. l. A copy of such Agreement is attached
hereto as Exhibit "A" and made a part hereof for all purposes.
PASSED, APPROVED, AND RESOLVED this lst day of July, 2002.
��2�� �
Harold Whitaker
Mayor
ATTEST:
�
Deloris McKenzie, T C
City Secretary
. c . : ,
O EXHIBIT A
A to the Re
� solution
R2002-37
TAX ABATEMENT AGREEMENT
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF GALVESTON §
THIS TAX ABATEMENT AGREEMENT ("Agreement") is made and entered into by
and between the CITY OF FRIENDSWOOD, TEXAS, a home-rule municipal corporation
located in Galveston and Harris Counties, Texas ("City"), BAYWOOD HOLDINGS LTD. CO.
("Owner"), owner of a 2.5014-acre tract of land, mare or less (the "Property"), located in Ciry
of Friendswood Reinvestment Zone No. 1, and BAYWOOD MEDICAL ASSOCIATES, PA,
("Lessee"), lessee of the Property, and owner of the tangible personal property to be placed
within facilities to be constructed thereon.
1. Authcrization. This Agreeme�t is authorized by tl-ie Property Redevelopment and
Tax Abatement Act, Chapter 312, TEXAS TAX CODE, as it exists on the effective
date hereof, and the Ciry of Friendswood Guidelines and Criteria for Granting
Tax Abatement in a Reinvestment Zone ("Guidelines for Tax Abatement"), as
adopted by the City Council of City on July 16, 2001. The Ciry Council has
determined that the request for tax abatement presented by Owner and Lessee
conforms to the criteria established in the Guidelines for Tax Abatement.
2. Defir�ed '�'erms. As used in this Agreement, the fellowir�g terms sh��l have t�he
meanings set forth below:
a. "Certified Appraised Value" shall mean the appraised value of the
Property and existing impro>>ements as certified by the Galveston County
Central Appraisal District.
b. "Reinvestment Zone No. 1" shall mean that certain area qualifying for tax
abatement pursuant to the Guidelines for Tax Abatement, and City of
Friendswoo�i Ordinance No. 2002-_12 , a copy of which is attached
hereto as E�ibit "A" and incorporated herein for all purposes.
c. "Improvements" shall mean the buildings (or portions thereof) and other
improvements to be used for health care purposes, which are erected or
expanded by Owner on the Property (as contemplated by Section 6 herein)
after the effective date of this Agreement.
d. "Tangible Personal Properry" shall mean tangible personal property
classified as such under state law, but excluding tangible personal property
that was located on the Property at any time prior to the date of execution
of this Agreement, and also excluding tangible personal property taxable
by the City while owned by any party to this Agreement at any time prior
improvements cunently located thereon, which tract of land is located
within Reinvestment Zone No. 1.
f. "City Council" shall mean the governing body of the Ciry of
Friendswood, Texas.
3. Administration of Agreement. This Agreement shall be administered by the City
Manager of the City.
4. Term. This Agreement shall be effective as of the date of execution hereof and
shall continue through June 30, 2009, unless ternunated earlier, as provided
elsewhere herein.
Notwithstanding the foregoing, Owner's obligations upon default to pay
City any taxes abated under this Agreement, and penalty and interest thereon as
herein provided, shall not terminate until the abated taxes, plus penalty and
ir�terest, are pa:d.
5. Tax Abatement. Subject to limitations imposed by law, and conditioned on the
representations outlined in Section 6 herein below, there shall be granted and
allowed hereunder to Owner and/or Lessee, as applicable, a property tax
abatement at a rate of 100% in years 2003-2005, 80% in 2006, 60% in 2007,
40% in 2008, and 20% in 2009, on Improvements constructed or expanded
hereunder on the Property; provided, however, if the Certified Appraised Value
of the Property is less than the Certified Appraised Value for 2002, for any year
uuiui�' �ii� ��.'�i i vi �iiiiS �i�ie�ii�ui� �u�ii uvu��iil�iii �ii�iii iiv� �i�3Yiy �v iu�
Improvements to the extent of the difference between the Certified Appraised
Value of the Property for such year and the Certified Appraised Value for 2002.
The property tax abatement granted and allowed hereunder shall extend only to all
real property ad valorem taxes assessable on the Improvements, as constructed or
expanded.
6. Representations.
a. (1) Owner will purchase the Property on or before October l, 2002; (2)
Owner represents that it, and/or its Lessee, has or will have a taxable
interest with respect to Improvements on the Property; (3) all
Improvements placed on the Property will be completed in a workmanlike
manner and will be completed in accordance with applicable rules,
regulations and ordinances of the City of Friendswood in effect at the time
such Improvements are erected; (4) the Certified Appraised Value of the
TmprnyPmPntg �rerrl Tanitar�� 1� 7O�d� thrn�iblZ T1PrPmhPr ��, �nn9� �z�ill bP
not less than $1,460,000; (5) Owner will commence construction of
Improvements on or before November 1, 2002, and Owner will complete
construction of Improvements on or before June 1, 2003, which
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accordance �vith applicable rules, regulations and ordinances of the City of
Friendswood in effect at the time such Improvements are erected; (4) the
Certified Appraised Value of the Improvements and Tangible Personal
Property from January 1, 2004, through December 31, 2009, will be not
less than $1,538,000; (5) Owner will commence construction of
Improvements on or before November 1, 2002, and Owner will complete
construction of Improvements on or before June 1, 2003, which
Improvements will have a Certified Appraised Value of not less than
$1,460,000; (6) Owner and/or Lessee will place on the Property, before
January 1, 2004, Tangible Personal Property (as that term is defined
herein above, which definition excludes tangible personal property owned
by any party hereto that was taxable by the City prior to the date of
execution of this Agreement) having a total Certified Appraised Value of
not less than $22,000 and will maintain on the Property said Tangible
Personal Property or similar Tangible Personal Properry through
B��,ember 31, 2009; (?) Owner ar�d/cr L,essee wi11 emp,cy, within two (2)
years following the date of execution of this Agreement, not less than 30
full-time employees on the Property and will maintain this employment
level on the Property during the remainder of the term of this Agreement;
(8) Owner and Lessee have, as of the effective date of this Agreement, the
fmancial resources to implement the above respective representations; (9)
Owner and Lessee will not represent, verbally or in written form, that its
facility as contemplated hereby is located elsewhere than in the City of
Friendswcc�, Galves±on C�unty, Texas; (l�} Owner will r�quest its
contractors to execute a separated construction contract for materials and
labor to maximize, to the extent reasonably possible, without increasing
project costs, sales taxes payable to the City of Friendswood for
construction materials and labor used for the construction of the
Improvements and will maximize, to the extent reasonably possible,
without increasing project costs, sales tax payable to the City of
Friendswood for new furnishings and equipment to be placed on the
Property, it being the intention of the parties hereto that City sales tax for
sales of material and labor for the Improvements and sales of furnishings
and equipment to be placed on the Property shall be collected for the
benefit of the City; and (11) Owner will comply with all applicable
provisions of the Code of Ordinances of the City of Friendswood, Texas.
b. City represents that (1) Reinvestment Zone No. 1 has been created in
accordance with Chapter 312 of the TExAS TAx CoDE and the City of
Friendswood Guidelines and Criteria for Granting Tax Abatement in a
Reinvestment Zone, as both exist on the effective date of this Agreement;
(2) the Property is within such Zone; and (3) the Property is located within
the corporate limits of Ciry.
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M— _
c. Owner, Lessee, and City represent that no member of the City Council or
Planning Commission owns or leases the Property, Improvements, or
Tangible Personal Property.
d. Access to and Inspection of Property by Municipal Employees. Owner
and Lessee shall allow City's employees and/or designated representatives
of City access to the Improvements for the purpose of inspecting any
Improvements erected to ensure that such Improvements are completed and
maintained in accordance with the terms of this Agreement and to ensure
that all terms and conditions of this Agreement are being met. All such
inspections shall be made only after giving Owner and/or Lessee twenry-
four (24) hours advance notice and shall be conducted in such a manner as
to not unreasonably interfere with the construction and/or operation of the
Improvements. All such inspections shall be made with one (1) or more
representatives of Owner and/or Lessee and in accordance with all
ap�licable safety sta�dards. �po� c��npletion ;,f �onstructior�, the
designated representative of City shall annually evaluate each facility
receiving abatement to ensure compliance with the Agreement, and a
formal report shall be made to the City Council.
e. On September lst of each year that this Agreement is in effect, Owner and
Lessee shall certify to City, and to the governing body of each taxing unit,
that Owner and Lessee are in compliance with each applicable term of this
�4greement. Such certif�cation s�a1i include, but not be limite� ta, a brief
descriptive summary regarding the nature of compliance with each
representation contained in Section 6(a) of this Agreement that requires
Owner and Lessee to use their best efforts.
7. Default.
a. City may declare a default hereunder if (1) Owner and/or Lessee fails,
refuses, or neglects to comply with any of the terms, conditions, or
representations of this Agreement and fails to cure during the cure period;
or (2) allows ad valorem taxes owed to City to become delinquent and fails
either to cure during the cure period or to timely and properly follow the
legal procedures for their protest or contest.
b. If City declares a default of this Agreement, this Agreement shall
terminate (after notice and opportunity to cure as provided for herein), and
City, in such event, shall be entitled to recapture any and all property
taxes, which have been abated as a result of this Agreement. City shall
notify Owner and L,�ssee of any default in writing in the manner
prescribed herein. The notice shall specify the basis for the declaration of
default, and Owner and/or Lessee shall have thirty (30) days from the date
of such notice to cure any default; provided, however, where fulfillment of
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any obligation requires more than thirry (30) days, performance shall be
commenced within thirty (30) days after the receipt of notice, and such
performance shall be diligently continued until the default is cured. If the
default cannot be cured, or if Owner fails to cure within the period herein
specified, Owner and Lessee shall be jointly and severally liable for and
will pay to City within thirty (30) days following the termination of this
Agreement (1) the amount of all property taxes abated under this
Agreement, (2) interest on the abated amount at the rate provided for in
the Texas Tax Code for delinquent taxes, and (3) penalties on the amount
abated in the year of default at the rate provided for in the Texas Tax Code
for delinquent taxes.
c. Notwithstanding any other provision contained herein to the contrary, in
the event of termination of this Agreement due to default, City shall be
entitled to recapture only property taxes which have been abated on
Improvements ��d only pro�erry taxes tr�at have been abated �n Tangib:e
Personal Property, plus applicable penalty and interest thereon as
otherwise provided herein.
8. Changes in Tax Laws. The tax abatement provided in this Agreement is
conditioned upon and subject to any changes in the state tax laws during the term
of this Agreement.
9. Com.p:ia:ce ���it�� State ar.0 Local F.ep�alatior.s. Nothing :n this Agreeme^t shall be
construed to alter or affect the obligations of Owner and Lessee to comply with
any ordinance, rule, or regulation of City or laws of the State of Texas.
10. Assi�nment of Agreement. This Agreement may be assigned, with the approval
by resolution of City, subject to the financial capacity of the assignee, and
provided that all conditions and obligations in this Agreement are guaranteed by
the execution of a new agreement with City. No assigrunent shall be approved if
(a) City has declared a default hereunder that has not been cured, or (b) the
assignee is delinquent in the payment of ad valorem taxes owed to City. Approval
shall not be unreasonably withheld.
11. Conditions Precedent. This Agreement and the abatement granted herein is
conditioned entirely upon (a) the approval of the City Council by the affirmative
vote of a majoriry of the members present at a regularly scheduled meeting of the
City Council, (b) Owner's purchase of the Property on or before October 1, 2002,
and (c) Owner's commencement of construction of the Improvements on the
Property on or before November 1, 2002. In the event Owner fails to purchase
the Property or commence construction of the Improvements as herein provided,
tYus Agreement shall automatically terminate as of the applicable date of such
noncompliance as set forth above.
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12. Notice. All notices shall be in writing. If mailed, any notice or communication
shall be deemed to be received three (3) days after the date of deposit in the
United States mail, first-class, postage prepaid. Unless otherwise provided in this
Agreement, all notices shall be delivered to the following addresses:
If to Owner: Baywood Holdings Ltd. Co.
347 E. Parkwood Avenue
Friendswood, Texas 77546-5147
Attn: Wanda P. Spuhler, President
If to Lessee: Baywood Medical Associates, P.A.
347 E. Parkwood Avenue
Friendswocd, Texas 77546-51�7
Attn: Wanda P. Spuhler, President
To Ci�y�: City �f Friendswood
910 South Friendswood Drive
Friendswood, Texas 77546
Attn: City Manager
Any party may designate a different address by giving the other parties at least ten
(10) days written notice in the manner prescribed above.
13. Entire ��r�ement. This Agreement contains the entire and �rtegrated ±ax
abatement agreement between the parties and supersedes all other negotiations and
agreements, whether written or oral.
IN TESTIMONY OF WHICH, THiS AGRE�IVIENT has been execut�d b�� the parties as
of the_��_ �1ay of .T„i �, , 2002.
ATTEST: BAYWOOD HOLDINGS LTU. CO.
("Owner")
�
By: ��2���� , B C�f� � - . ��.��
, ,. y. �
Name: � ��� �_ c t-'� Name: Cf:.l,-t-��f G- �'- ,,���.����..={ �'",�-���`.��-���'
Title: ��-�� . Title: ,/�'i>-F.��,�'.�r� . . � �
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A'I`TEST: BAYWOOD MEDICAL ASSOCIATF�,S,P.A.
"Lessee"
' � �
By: `� �-- By: l�.��-----�-- �r��' �
Name: T� �--5�- ��C �� Name: ���{e-r- �E ��.�,��`��.
Title �, �_.. Title: ��=�;;�'G:�`,,id
ATTEST: CITY OF FRIENDSWOOD, TEXAS
"City"
� /1 � �- , � �
By: By: ,�'� t�, -1-�- j r°a�
Name: De oris McKenzie, T Name: Harold L. Whitaker
Title: City Secretary Title: Mayor
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�- i
. • � � � EXHIBIT A • •
o to the Agreement
Y
ORDINANCE NO. 2002-12
AN ORDINANCE CREATING REINVESTMENT ZONE NO. 1, SAME
BEING THAT CERTAIN 2.5014 ACRE TRACT OF LAND WITHIN THE
CITY OF FRIENDSWOOD, HARRIS AND GALVESTON COUNTIES,
TEXAS, SAID 2.5014-ACRE TRACT BEING IN THE J. R. WILLIAMS OR
SARAH MCKISSICK LEAGITE, VOLUIVIE 254, PAGE 72, IN THE
�iiFr'r'ii� vr 1 I� C�JU1�'1 FY CLr.l'�.1� Vr ��ii.�S i viv Ci�t�iv i Y, i r.xAS,
AND ALSO DESCRIBED AS LOT 52 AND PART OF LOT 51 OF THE
ANTOINETTE VOSS SUBDIVISION, GALVESTON COUNTY, TEXAS;
MAKING CERTAIN FINDINGS; REPEALING ALL ORDINANCES OR
PARTS OF ORDINANCES INCONSISTENT OR IN CONFLICT
HEREWITH; AND PROVIDING FOR SEVERABI�ITY.
� � � * �
VdI�iEREAS, the City Council has passed and approved Guidelines and Criteria for
Granting Tax Abatement in Reinvestment Zones Created in the City of Friendswood, Texas; and
WHEREAS, pursuant to such Guidelines, the City Council has received an application
for creation of a reinvestment zone and the granting of tax abatement; and
WHEREAS, after the giving of proper notice, as required by law, the City Council held
a public hearing where all interested persons were given an opportunity to speak and present
evidence for and against the creation of Reinvestment Zone No. 1; and
�rHEREAS, notice was given to all taxing entities where the proposed zone is to be
located; and
`vV�REti�, �'�� City Cour�cii has determined �hat the irr��,raverrients sought io be iacated
within proposed Reinvestment Zone No. 1 are feasible and practical and would be a benefit to the
land to be included in the Zone and to the Ciiy after the expiration of the tax abatement
agreement; and
4�'HEREAS, the creation of Reinvestment Zone No. 1 will be reasonably likely, as a
result of its creation, to contribute to the retention or expansion of primary employment, or to
attract investment essential to the ciry's growth into the Zone, that would benefit the property
located therein and that will contribute to the economic development of the City of Friendswood;
now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
S�i'A i� f3F i��S:
Section 1. The facts and matters set forth in the preamble of this Ordinance are
hereby found to be true and correct.
Section 2. Reinvestment Zone No. 1 is hereby created for the purpose of encouraging
economic development through tax abatement. A description of the property that comprises said
Reinvestment Zone No. 1 is attached hereto as E�iibit "A" and made a part hereof for all
purposes. Improvements constructed, erected, or placed within Reinvestment Zone No. 1 as
created hereby shall be eligible for tax abatement.
aeciion 3. Tnis designaiion shaii be enective ior a period ot seven �7j years,
co:��eacin� cn the �ate of ad��*icn hereof.
Section 4. All ordinances or parts of ordinances inconsistent or in conflict herewith
are, to the extent of such inconsistency or conflict, hereby repealed.
Section 5. In the event any clause, phrase, provision, sentence, or part of this
Ordinance or the application of the same to any person or circumstance shall for any reason be
adjudged invalid or held unconstitutional by a court of competent jurisdiction, it shall not affect,
impair, or invalidate this Ordinance as a whole or any part or provision hereof other than the part
declared to be invalid or unconstitutional; an� the City Council of the City of Friendswood,
�'2X2S, uECial'2S uiat it WOu�u i11V2 �aSSeC� �aCil ailu 2`v'21y 17�� vi t�Ie Saiile IlOtvvi�ISt2Il�lua �ile
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/
omission of any such part thus declared to be invalid or unconstitutional, whether there be one or
more parts.
PASSED AND APPROVED on this 3� day of 3une, 2002.
PASSED, APPROVED, and ADOPTED on second and final reading this lst day
of July 2002.
CITY OF FRIENDSWOOD, TEXAS
/ ,� .
`� �,�;�,.1?�� � ,
c — 6.—� �.
Harold L. Whitaker
Mayor
ATTEST
�
� i � _. '
, ��f
Deloris McKenzie, TIdMC -
City Secretary
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EXHIBIT "B" �
October 26, 1995
STAT� Or TEXAS
C6III�TTY Or FiARxIS
ME.T.ES ANI) BO.LiNDS DESCR2PTI.�N
The Surface of Lot 52 and part oi Lot S1 of the AI��TOINETTE
VOSS SUBDT4ISIbN, J.R. Williams or Sar-ah McKissick League,
Galveston County, Texas, according to the map or plat
thereof recorded in volume 25d Page 72, in the Office of
the County Clerk of Gal�reston County, Texas, being all of
said "Lots 51 and 52 less: (a) the 1-acre tract conveyed to
Stanley Crump, et ux on January 30, 1973; and less (b) the
0.14-acre tract conveyed to the State of Texas on December
12, 1985. The tract herein �escribed is more pa?-ticularly
described �y ,,,e�es and bounde as. f
oliows:
B��-?�N=NG at a brass disc in concrete paving £ound for the
point of intersection of the Northeaste,-1�. �our.dary of ��;e
0-la_ zcre *_rGct conveyed to the State of Te�cas mentio::ed
above ar_d the So�theas�erly boundary of the aforementioned
Lot 52, said point beincr tne most Southe:rly corner of the
herein described tract or parcel;
THENCE North 4�°00'00" East aiong Lhe common boundary of
Lots 52, and 53 a distance of 536.19 feet (called 535 . 94
feet) to a 5/8'� iron rod found in the Southwesterly R.O.W.
boundary of`Winding way fa eounty road, 60' R_p,ta, ) for the
Northeasterly common .corner- of said Lots 52 and 53 and the
most Easter.ly corner o� the herein described tract or
parcel;
THENCE North 45°O1'46" West alor.g the S�uthwesterly R.O.W.
bounctary of said Winding Way, passing at 207.09 Leet the
Northeasterly common c�rher of said Lots 51 and 52, and
continuing for a total distance of 244.79 feet (called North
45°00' 00" West, 245.4 • feetl to a �� iron r�d
most Northeriy corner of � s=� L�r the
, , the herein ('J.a.g.rril�o4 `r.._�
parce�, -. �a�:� or
THENCE South 45°00'00° West along the Southeasterly boundary
of the aforementioned Crump tract, a distznce of 354.04 feet
tO a 3�8" iron rod founct iri the Northeasterly boundary of
the aforement.ioned 0.14 acre tract conveyed to the State of
Texas for the most Westerly corner of the herein described
tract or parcel;
THENCE South 08°22 ' 00'� Ea��t along the Northeasterly boundary
of the aforementioned 0.14 acre tract conveyed to the State
of Texas anci tlze pre.�Pr:t,t r7�y`��a��eriy K.�.W. boundary of
F.M. 518 (South Friendswcoel Drive, 1.00' R.O.YJ, ) , passing at
46.98 feet the Southwesterl.y common corner of said Lots 51
and 52, and continuing for a total distance of 305.05 feet
(called SoutH 08°26'3�° East, 305.51 feet) to the POINT Or
BEGINNING;
S4id �ract or pa-rLCl �„r:t���i.-ig 2.5�14 acres, more or less.
PLAT ATTACHED
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D. E. West P..�P.L.S. 22 �� �:.o � �:�.....
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� GULLE7T & ASSOCIAT�S, INC. .
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