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HomeMy WebLinkAboutRes 98-05-01 Amending Resolution No. 98-05 Amendment to Economic Development Agreement with Fidelity Texas Limited PartnershipTOWN OF WESTLAKE
RESOLUTION NO. 98-05-01
A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE,
TEXAS, AMENDING RESOLUTION NO. 98-05 ADOPTED ON AUGUST 10, 1998,
WHICH APPROVED AN ECONOMIC DEVELOPMENT AGREEMENT WITH
FIDELITY TEXAS LIMITED PARTNERSHIP; AUTHORIZING THE TOWN
MANAGER OF THE TOWN OF WESTLAKE TO EXECUTE THE AMENDMENT ON
BEHALF OF THE TOWN; PROVIDING A SEVERABILITY CLAUSE; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on August 3, 1998, the Town, of Westlake, Texas ("Town") adopted
Ordinance No. 303 providing for an Economic Development Policy and a Tax Abatement Policy;
and
WHEREAS, on August 3, 1998, pursuant to Ordinance No. 303, the Town adopted
Ordinance No. 344 establishing Reinvestment Zone No. 1; and
WHEREAS, on or about August 10, 1998, pursuant to Resolution No. 98-05, the Town
and Fidelity Texas Limited Partnership, a Massachusetts limited partnership, ("Fidelity") entered
into a certain Economic Development Agreement (the "Agreement") pertaining to certain real
property owned by Fidelity Investments located within Reinvestment Zone No. 1 (generally
located on the west side of Precinct Line Road south of State Highway 114 and north of Dove
Road); and
WHEREAS, the Town and Fidelity Investments now desire to amend the Agreement in
certain respects as described below;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
TOWN OF WESTLAKE, TEXAS:
SECTION 1: That all the matters stated in the preamble are found to be true and correct
and are incorporated into the body of this Resolution as if copied in their entirety.
SECTION 2: That the First Amendment to the Economic Development Agreement as
shown on Exhibit "A" attached hereto is hereby approved and incorporated herein into this
Resolution as if copied in its entirety.
SECTION 3: That the Town Manager is hereby authorized to execute the first
amendment to the Economic Development Agreement as approved by this Resolution.
SECTION 4: Except as specifically amended by this First Amendment to the Economic
Development Agreement, the Agreement is confirmed and in full force and effect.
SECTION S: If any section, paragraph, subdivision, clause, phrase, provision or word
of this Resolution shall be held invalid or unconstitutional by a court of competent jurisdiction,
such holding shall not affect the remainder of this Resolution.
SECTION 6: That this Resolution shall become effective upon the date of its passage.
APPROVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE,
TEXAS, this 13t' day of November, 2000.
Scott Bradley, Mayor
ATTEST:
Ging Crosswy, To Secretary Trent O. Petty, Town Manag r
F�
FIRST AMENDMENT
TO
ECONOMIC DEVELOPMENT AGREEMENT
THIS First Amendment to Economic Development Agreement is made as of the , day
of November, 2000 by the Town of Westlake, Texas ("Town"), and FMR Texas Limited
Partnership, a Massachusetts limited partnership ("Fidelity").
WHEREAS, on August 3, 1998 the Town adopted Ordinance No. 303 providing for an
Economic Development Policy and a Tax Abatement Policy; and
WHEREAS, on August 3, 1998, pursuant to Ordinance No. 303, the Town adopted
Ordinance No. 304 establishing Reinvestment Zone No. One; and
WHEREAS, on or about August 3, 1998 the Town and Fidelity entered into a certain
Economic Development Agreement (the "Agreement") pertaining to certain real property owned
by Fidelity located within Reinvestment Zone One (generally located on the west side of Precinct
Line Road south of State Highway 114 and north of Dove Road); and
WHEREAS, the Town and Fidelity now desire to amend the Agreement in certain
respects as described below;
NOW, THEREFORE, the Town and Fidelity, for good and valuable consideration, the
receipt and sufficiency of which are acknowledged, agree as follows:
1. Definitions. Capitalized terms used in this Amendment have the meaning ascribed to
them in the Agreement, unless the context requires otherwise.
2. Sales Tax Rebate.
(a) Section 16.A of the Agreement provides in effect that Fidelity will receive a rebate of
one percent of the local sales taxes collected by the Town and paid by Fidelity within the
applicable sales tax rebated period for building materials and other taxable property and services
affixed to Qualified Facilities (excluding sales taxes levied against telephone services and sales
taxes associated with the purchaser of personal property not affixed to Qualified Facilities). The
sales tax rebate period is for ten years and expires for a particular building that is a Qualified
Facility on the date that is thirty-six months following the date the Town issues a building permit
for the construction of such building.
(b) Section 163 of the Agreement provides in effect that rebates shall be paid to Fidelity
within thirty days of each calendar quarter from the sales taxes received by the Town, and paid
by Fidelity, from the State of Texas. However, rebates attributable to a Qualified Facility is not
payable prior to the issuance of a building permit of the Qualified Facility.
(c) Fidelity was issued a building permit for Qualified Facilities within Phase I consisting
of an office building and relating structures (the "Phase I Qualified Facilities"). The Phase I
Qualified Facilities are under construction and nearing completion.
approximately $426,477 as of
October 31, 2000 [-
(d) However, as of this date, there are sales tax rebates due and owing to Fidelity relating
to the Phase I Qualified Facilities in the sum of $ 1 . Further, it is anticipated tha�ier-
sales tax rebates will accrue to the Phase I Qualified Facilities, from this date through thirty-six
months following the date the Town issued a building permit for the construction of the Phase I
Qualified Facilities.
(e) The parties desire to amend the Agreement to modify the timing of payments to
Fidelity with respect to Phase I Qualified Facilities of both sales tax rebates that are now due and
payable, and sales tax rebates that may accrue in the future (the "Deferred Rebate") as follows:
(i) The Deferred Rebate will be paid in 15 equal annual installments. The first
installment will be due and payable on the first anniversary date of this Agreement,
and a like installment will be due and payable on each subsequent anniversary, with a
final payment of the 15th anniversary date of this Agreement. The amount due will
not bear interest.
(ii) If the Town should enact an ordinance imposing a city ad valorem tax before
the tenth anniversary of this Agreement, then the remaining balance of the Deferred
Rebate (as of the date of such ordinance) will be paid in five equal annual
installments. The first annual installment will be due and payable on the next
anniversary date of this Agreement after the date of such ordinance, and life
installment will be due and payable on each subsequent anniversary, with a final
payment of the 5th anniversary date of this Agreement after the date of such
ordinance. The amount due will not bear interest.
(iii) The amount of the annual installments may have to be adjusted from time to
time to reflect that Deferred Rebate will increase if sales tax rebates accrue in the
future. Accordingly, the annual installment will adjusted to reflect the amount of the
remaining Deferred Rebate divided the number of annual installments remaining.
3. Authority to Act. The Town and Fidelity both represent that the persons signing on
their behalf are authorized to execute this Agreement, and all action necessary for this
Agreement to be binding on them has been duly and properly taken prior to the execution of this
Agreement.
4. Confirmation of Agreement. Except as specifically amended by this First Amendment, the
Agreement is confirmed and in full effect. The provisions of this Agreement shall not affect Data
Center rebates under Section 16.B of the Agreement, or rebates for Qualified Facilities in Phase
II or other future phases of the Fidelity project under Section 16.A of the Agreement. In the
event of a conflict between the Agreement and this First Amendment, the terms of this of this
First Amendment will control.
2
Executed effective as of the date first above written.
ATTEST:
J
Gingd Crosswy, To Secretary
TOWN OF WESTLAKE, TEXAS
By:
Trent O. Petty, Town Mana
FMR TEXAS LIMITED PARTNERSHIP,
a Massachusetts Limited Partnership
By: FIDELITY CORPORATE REAL
ESTATE, L.L.C.
Its: General Partner
By: FMR CORP.
Its: Sole Member
By: FIDELITY CORPORATE
REAL ESTATE, INC.
Its: Authorized Agent
Name:
Title: L + n
By:
Res 90-05-01
p.+ MARY LOUISE NICHOLSON
e5 COUNTY CLERK
100 West Weatherford Fort Worth, TX 76196-0401
PHONE (817) 884-1195
TOWN OF WESTLAKE
1500 SOLANA BLVD BLDG 7 STE 7200
WESTLAKE, TX 76262
Submitter: TOWN OF WESTLAKE
DO NOT DESTROY
WARNING - THIS IS PART OF THE OFFICIAL RECORD.
Filed For Registration: 2/8/2019 12:41 PM
Instrument #: D219025449
OPR 7 PGS $36.00
D219025449
ANY PROVISION WHICH RESTRICTS THE SALE, RENTAL OR USE OF THE DESCRIBED REAL PROPERTY
BECAUSE OF COLOR OR RACE IS INVALID AND UNENFORCEABLE UNDER FEDERAL LAW.