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Home My WebLink AboutC2013-206 - 7/16/2013 - Approvedk Y i This Tax Abatement Agreement ("Agreement") is made and entered into by and between th.- City of Corpus Christi, Texas ("City") and Kinney Hotel Partners LTD, a Texas limited partnership ("Owner"), the owner of taxable property in the City of Corpus Christi, Texas, located on 318 Born Street, Corpus Christi, Nueces County, Texas ("Property'). M -11111 i ts3►1 rl all The Property enterprise zone designated pursuant to Chapter 2303 of e Tex Government Code. !. DEFINITIONS 1. "Abatement" means the temporary or partial exemption from ad valorem taxes of certain added value to real and personal property in a zone designated for economic development purposes 3. "Base Year Value" means assessed of the Improvements on .;` Property as certified by the Nueces County Appraisal District as of the January 1 preceding the execution of this Agreement, plus the agreed upon value of Improvements made after January 1, but before # Agreement. 4. "Construction Phase" means the period during which a material and substantial improvement of the Property occurs which represents a separate and distind construction operation undertaken for the purpose of erecting the Improvements. (a) The Construction Phase ends upon the earliest to occur of the followi-rog 2013-206 7/16/13 R ' Kinney Hotel Partners LTD (b) The determination of the end of the Construction Phase is made by the City, in its sole and absolute discretion, based upon the above criteria and the other factors as the City may deem relevant. (c) The determination of the end of the Construction Phase by the City is conclusive, and any judicial review • the determination is governed • the substantial evidence rule. 7. "Improvements" means the buildings, portions of buildings, and other improvements, including fixed machinery and equipment, used for commercial or industrial purposes on the Property. IfiffiatueW41 "I A. The Property is an area within the City • Corpus Christi, Texas, located in whole or in part within the jurisdiction of the City, and is more fully described in Exhibit B, which is attached to this Agreement and made a part of this Agreement. The Property is located within a zone for tax abatement established under Chapter 312 of the Texas Tax Code, as amended, by the City • Corpus Christi, Texas. B. The Nueces County Appraisal District has established the following values for the Prope as of the January 1 valuation date prior to the date of execution • this Agreement. I F-IRT417 Mill and $427,138.00 C. The City and the Owner agree that the value of any additions to the Improvements ma after January 1 or not otherwise reflected on the above valuation of Improvements i D. Addition of the above amount to the valuation of the Improvements as of the January valuati» »d« ± » § + <» the date of execution of this Agreement results in a Base Year Value follows: I Base Year Value: $438,670.00 ymi # ? + + + »« w f»++MZIWJNIU M IFIXIE-1 A 111111 2. The Base Year Value of existing Improvements comprising the Property is fully I Tax Abatement Kinney Hotel 63143 A. The Abatement provided by this Agreement is based upon a New Facility located within the Downtown Reinvestment Zone. The percentage of tax abated is under the following schedule: Percentag of Abatement Construction Period 100% (not to exceed 2 years) Year 1 100% Year 2 100% Year 3 100% Year 4 75% Year 5 50% Year 6 25% 9,. At the time of execution of this Agreement, the Owner states to the City that the minimurr (Tax Rate] x [(85% of Minimum Investment - Actual Minimum Investment) x (100% - Abatement %)] = Additional Tax. Tax Abatement Kinney Hotel 5-31-13 2bated taxes during the period of construction are recaptured and must be paid within 60 days Pf the teyt-flrf atioT. (a) The amount of the taxes abated for that year by the City with respect to thz. Property. (b) The amount obtained by subtracting the rollback tax rate computed withou"I the abated property value being treated as new property value from the rollback Page 5 of 14 Tax Abatement Kinney Hotel 5-31-13 the City has granted an abatement of taxes to more than one taxpayer, then th-. «mount of the recapture calculated under subparagraph (b) above is prorated on tM 'casis of the value of the abatement with respect to each taxpayer. 2#= -, - �7 MI I 1. The amount of tax abated each year under the terms of this Agreement is secured by a first and prior tax lien, which will continue in existence from year to year until the time 2S this Agreement between the City and Owner is fully performed by Owner, or until all taxes, whether assessed or recaptured, are paid in full. *, :..- .f 0 0 - I . - 9 # »y ±, 4 11+ <V » «� ± %di AL *L1 is i. 1194fli zi ItaZ-11ITZ] I I I LIM-1 *I J, I IN &19 jMUS1211 � Tax Abatement Kinney Hotel 5-31-13 1.1 �_Ip 11 11 F0 i rorSIMM-7178TEITI-W �• • R -11WIF-14510IN OMM - jTAF_ i 7M (b) The full taxable value without Abatement of the real and personal property comprising the Property. 2. The Chief Appraiser records at the abated taxable value and the full taxable valuz in the appraisal records. 3. Each year the Owner shall furnish the Chief Appraiser with the information outlined in Chapter 22, Texas Tax Code, as amended, as may be necessary for the administration of the Agreement specified in this Agreement. — 0 1 Z "-of E. Utilization of Disadvantaged Business Enterprises ("DBE). Owner agrees to exercise susiness enterprises, including minority business enterprises women-owned business Page 7 of 14 M. ME enterprises and historically-underutilized business enterprises. In order to qualify as a business enterprise under this provision, the firm must be certified by the City, the Regional Transportation Authority or another governmental entity in the jurisdiction of the home office of the business as complying with state • federal standards for qualification as such an enterprise. Owner agrees to a goal of 30% of the total dollar amount of all construction contracts and supply agreements being paid to disadvantaged business enterprises, with a priority made for disadvantaged business enterprises which are local. Owner agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Owner to comply with the DBE Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if Owner is in compliance with this requirement. Failure to substantially comply with this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. For the purposes ■ this section, the term "local" as used to describe contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women-owned business enterprises and historically-underutilized business enterprises includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. F. Undocumented Workers. Owner does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, Owner is convicted if a violation under §U.S.C. Section 1324a(f), Owner shall repay the payments at the rate and a-ccording to the terms as specified by City Ordinance, as amended, not later than the 120'h day f- fter the date Owner has been notified ■ e violatio-f. return receipt requested, with the United States Postal Service, addressed to the City or Owner at the addresses listed below. B. If m«+¥,=«<»# §«e or communication is deemed 4b< received three days after the date of leposit in the United States Mail. Unless otherwise provided in this Agreement, all notices are felivered to the following addresses: To h® City: CITY OF CORPUS CHRISTI 1201 Leopard Street P. 0. ##x922» Corpus Christi, Texas 78469 Attn: City Manager 2#2±#««±r KINNEY HOTEL PARTNERS LTD 329 Peerman Place Corpus Christi, Texas 78411 C. Either party may designate a different address by giving the other party ten days writtl notice. M ZESW�� RM Tax Abatement Kinney Hotel 3 -28 -13 The Kinney will be located at SCHATZEL TRACT 1, an addition in the City of Corpus Chris, Nueces County, Texas, as shown by the map of the plat thereof recorded in Volume 34, Pac 46, Map Records of Nueces County, Texas, to which reference is here made for all pertine purposes. Exhibit C r -�r Apphcation fir Prop=V Tax Ab2tement Exemption Property TI Farm 30-110 IWY ju . . . . . . . . . . . . . . . . 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