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Res 2016-139/approving an addendum to the chapter 380 economic development incentive agreement between the City of San Marcos, TX and Humpty Dumpty SSM, Ltd
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Res 2016-139/approving an addendum to the chapter 380 economic development incentive agreement between the City of San Marcos, TX and Humpty Dumpty SSM, Ltd
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Resolutions
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Approving
Number
2016-139
Date
11/15/2016
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7. Ten Year Payment Period. Section 4.02 of the 380 Agreement is hereby deleted in its entirety <br />and replaced with the following: <br />Beginning as soon as the calendar year 2016, but not later than calendar year 2020, the <br />Owner may apply for up to ten (10) consecutive annual Grant Payments. Upon application <br />by the Owner, the City shall make such Grant Payments to the Owner, in accordance with <br />the following schedule: <br />Year <br />Additional <br />Property <br />Taxes % <br />Additional <br />Sales <br />Taxes % <br />1 <br />100 <br />90 <br />2 <br />100 <br />90 <br />3 <br />80 <br />80 <br />4 <br />80 <br />80 <br />5 <br />60 <br />60 <br />6 <br />60 <br />60 <br />7 <br />40 <br />40 <br />8 <br />40 <br />40 <br />9 <br />20 <br />20 <br />10 <br />20 <br />20 <br />As an example, if Year 1 is 2019, the Owner could apply for and receive a Grant Payment in <br />an amount equal to 100 percent of the Additional Property Taxes and 90 percent of the <br />Additional Sales Taxes generated on the Site in 2018, with subsequent Grant payments <br />similarly being made according to the percentages above. With each application for a Grant <br />Payment, the Owner shall provide to the City a compliance certificate, as described in the <br />380 Agreement. <br />8. Reduction in Grant Payments. Section 4.03 of the 380 Agreement is hereby deleted in its <br />entirety and replaced with the following: <br />4.03 Reduction in Grant Payments. In the event that the Owner's capital investment, as <br />defined in Section 3.02, is less than $52,500,000.00, the annual Grant Payments to the <br />Owner will be reduced proportionate to the percentage of capital investment that can be <br />verified by actual receipts provided to the City by the Owner. For example, if the maximum <br />possible Grant Payment in Year 1 was $1,000,000.00 and the Owner met the target capital <br />investment of $52,500,000.00, then the maximum possible Grant Payment to the Owner <br />would be $1,000,000.00. If, however, the Owner's capital investment was only <br />$49,875,000.00, which is 95 percent of the required capital investment, then the Grant <br />Payment to the Owner would be reduced by five percent resulting in a Grant Payment of <br />$950,000.00. If the Owner subsequently meets the minimum capital investment requirement, <br />the Owner will be eligible to receive the maximum possible annual Grant Payment for any <br />years after the year in which the capital investment target is satisfied (but, there shall be no <br />retroactive payments to offset any prior reduced Grant Payments). <br />Notwithstanding the requirements of Section 4.02, Owner shall not be eligible to receive <br />Grant Payments for that portion of the property developed and used as purpose built student <br />
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