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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.