2700 technology forrest drive tax abatement

7/29/2019 2700 Technology Forrest Drive Tax Abatement

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APPi^xCATION FOR T A X A B A T E i . x E N T

F O R

M O N T G O M E R Y C O U N T Y

[ C O N F I D E N T I A L INFORJslATlON - Texas Properry Tax Code, Chapter 312, Subchapter A , Sec. 312.003]

Applicant(s): ^ r u k e r O p t i c s & Dr . D i r k L a u k i e n

[.Attach a financial statement of each Applicant showing rlnancial capacir.' to complete the proposed project].

Applicant's Status: Individual;X

Corporation: Partnership:

Mailina Address:2700 N o r t h C r e s c e n t R i d g e D r i v e

( 28 1 ) 29 2- 2 4 4 7Telephone No:m :

T h e Wo o d l a n d sState: TX Zi p : 7 7 3 8 1

Contact Person or Aeent: S e a n P. Qu i n n

M ai lint! Address: 2700 N o r t h C r e s c e n t R i d g e D r i v e

( 7 1 3 ) 8 0b - 8 l 3 UyTelephone No:i ty: T h e Wo o d l a n d s State: TX Zi p : 7 7 3 8 1

Name and Address as cun'entlv shown on Tax R o l lD i r k L a u k i e n

.Address: 2700 N o r t h C r e s c e n t Ri d g e D r i v e( 281 )292-Z44I

Telephone No:i ty: T h e Wo o d l a n d s State: TX Z i p : 7 7 3 8 1

a) Is Applicant purchasing this propeiT,'? Yes b ) W i l l tax abatement effect purchase? Yes CH

c) What is the purchase price? NA

A . Al l propert)' Owners having an interest in the Property, and their respective interests (except mineral and./or royalt\

interest on ly ) : [For corporate and partnership Applicants, attach full listme of names, addresses, and telephone numbers

of officers, dijectors, shareholders, and p a r t n e r s . ] , ™ ^ ^ i s a c o - a p p l i c a t i o n . A l l b e n e f i t sIJ. u i i i _ LI. ^L i i B a b a t e me n t of t he t ^x e s Wi ^ l be p a s s e d t h r o u g h by

B r u k e r O p t i c s , I n c . as t e n a n t D . L a u k i e n as " o wn er " ^U i - J - U l l

M a i li n g Address: (281 )2$2-2447Telephone No:it>^: T h e Wo o d l a n d s State: TX ZIP: 773 8 1

Propert)/Owner's Agent ^ - Q ^ i r i "

M a i l i n g Address: 2700 N o r t h C r e s c e n t R i d g e D r i v e( 1 I 3 ) b Ub - 8 b UyTelephone No:irv': T h e Wo o d l a n d s State: TX Zip: 7 7 3 8 1

Business Address:

[Attach legal description, plat and project site plan illustrating layout and designs for structures, landscaping,

signage, parking and internal circulation:]

6. 653 a c r e s l o c a t e d i n t h e J o h n T a y l o r S u r v e y , A- 547 T r a c t 1B- 3

WDLNDS R e s e a r c h F o r e s t 08, RES B, A c r e s 6. 653

Description of Project: P r o d u c t i o n & Ma n u f a c t u r i n g , D e s i g n C e n t e r / F a c i l i t y

One s t o r y , a p p r o x i ma t e l y 2 2, 0 00 s q u a r e f e e t , h i g h t e c h c e n t e r

a) Is this an expansion of an existing facility? ^e s^ No

Abatement Application -



8. Is the propert)' located within tht jndaries of

a nuinicipalin'?

Yes Is the propeiT .:ated w i t h i n the

exn-aterritorial jurisdiction of a municipalitv?

\''es

. x

8.

I f Yes - Name of Mu^icipali t^•:

9. List Taxing Jurisdictions that govern the location of the proposed abatement request:.

a)GMO - Mo n t g o me r y C ou n t y f) HMI - Mo n t . C ou n t y H o s p i t a l

9.

b )SCO - Conr oe I SD

9.

. -)J NHO N. H a r r i s Mo n t . C ou n t y h)

9.

d)MWM - Wo o d l a n d s Me t r o . MUD 1)

9.

e)WR. U. D #1J)

10. Estimated project construction dates: Beginning: J une 2 0 07 Ending: 1 2 / 2 0 0 70.

Taxable value of any existing properts' and improvements for tax year immediately preceding date of this application:

10.

EST 2 \

a) Real Propert)'Value: c:;ifp 7 R O ^ ,S c) Improvement Value: S - 0 -

10.

h) Personal Propert)' Value: $ - 0 - d) T O T A L V . A L U E : S $482 ,523

10.

Q71/1 no n m n n ' a c r e a g e s i t e e q u a l t o 1 / 3 o f 6 . 6 5 3

Propert)' Account Number(s): y / i 4 - U B - U U ^ U U

11 . Uses o f propert)'and facilit)': P r o d u c t i o n & Ma n u f a c t u r i n g , Ma c h i n i n g & De s i g n1 .

a) Present use: New B u i l d i n g

11 .

b) Intended use: E x p a nd i n g f a c i l i t i e s & g r o wi n g t he b u s i n e s s

11 .

c) Is proper^' currently receiving a reduction in taxable value for special use or exemptions? Yes

11 .

I f Yes. explain and include estimated $ value reduction: S

11 .1 .

d ) W i l l propert)' or itnprovements qualifS' for a reduction in taxable value due to special use or exemption? Yes (m

11 .

I f yes, explain and include estii:nated $ value reduction: S

11 .

12. What is the total estimated value o f the real propert)' and proposed improvements after completion of the

project? (Include taxable and abated value) $

13. What is the estiinated value of the fixed machiner)', equipment, inventory and personal property that wil l be on site after

completion of the project? Note: Only include propert)' that w i l l not be abated.

13.

Fixed Machinery and Equipment: S 400K

13.

Inventor)': S 1 OK

13.

Other Personal Propert)' (Furniture, etc.) $ 2K

14. What is the economic life of the proposed improvements? 4 0 Year

15. Jobs/Employment: N o5.

a) W i l l the project stimulate desirable concentrations of employment of comrnercial activity? N o

15.

b) Wi l l the project create or retain germane

nt jobs in Montgomen,' Count)'?

N o

X

Number of Jobs?15

15.

1 5

H ow many are new jobs?H ow many are retained jobs? ^

15.

c) W i l l the newly created jobs be fil led by persons residing or projected to reside in Montgomen.' County? ( T e l ) No

15.

d) Estimated Atmual Payroll: S 7 0OK Estimated full-t ime jobs: # Estimated part-time jobs:

Abatement Application - Ease 2



16, W i l l the project make a subst antia l contribution to redevelopment efforts or special area plans by enhancing

either functional or visual characteristics, e.g., historical structures, traffic circulation, parking facades,

materials, signs, etc.?

Yes N o

I f Yes - Describe: T h i s e x p a n t j o n w i l l c o n t i n u e t he g r o w t h & j o b c r e a t i o n i n

t h e T e c h n o l o g y s e g i n e n t of The Wo o d l a n d s c o mme r c i a l d i s t r i c t

1 7 . Is the project in an area which might not otherwise be developed because o f constraint s of topograp hy,

ownership patterns, site configuration, etc.?

Yes 0 ^

I fYes - Describe:

18. W i l l the project serve as a pro tot ype and catalyst for other developmen t? N o

I fYes - Explain: B r u k e r has c h o s e n t o c o l l a b o r a t e wo r l d wi d e w i t h mmp^ni

a n d has c h o s e n The Wo o d l a n d t o g r o w & e x p a n d our b u s i n e s s e s

19. W i l l costs be incurred by Montgomery County to provide facilities or services directly resulting f r om the new

improvements?

Yes

I fYes - Explain:

2 0 . What are the types and values o f publ ic i m provem ents that w i l l result f r om the project? f\Jfi

Type:

Type££ _

Type:

Type:

2 1 . W i l l the proposed improvements compete w i t h existing businesses to the detriment of local economy? YesX

I fYes - Explain:

2 2 . W i l l the proposed improvements stimulate existing local businesses? N o

I f Yes - Explain B r u k e r O p t i c s , I n c . i s u n d e r g o i n g t r e me n do u s g r o wt h i n a l

a r e a s of p e r s o n n e l . Many j o b sw i l l

bef i l l e d

f r o m l o a a l & c o mmu r i i t y

2 3 . I f w i t h i n an incorporated community's l i m i t s or extraterritorial jurisdiction, have you discussed your plans

w i t h the municipal admi nis tra tio n to dete rmin e i f there are any ordinances w i t h which you must comply?

N o

This applicant understands that the Mon tg om er y Coun ty Commissioner s Court w i l l approve or disapprov e applicant's request

fo r tax abatement, in its sole disc ret ion , based on information contained herein, and on any other information made available

to the Commissioners Court. Applicant states that the information contain ed her ein is true and correct and compl ete , and if

the request is approved, applicant is w i l l i n g to execute a tax abatement as requir ed by Mon tg om er y Cou nty . It is further

agreed and understood by appl ican t that the information contained in this application that qualifies as Confidential

Information in the Texas Pro perty Tax Code, Ch apter 312, Subchapter A . Sec. 312. 003, w i l l be reviewed and kept

confidential by; The Mont gom ery County Commissio ners Court, the Tax Assessor /Colle ctor( s), and the Chief Appraiser for

the Montgomery Central Appraisal District.

Applicant's Printed Name T i t l e

!3-Mar-06 Signature

Abatement Application -

' • < ' t-: u u

« 0 -



TAX ABATEMENT AGREEMENT Qp f " - ^

This Tax Abatement Agreement (this "Agreement") is by and between

Montgomery County, Texas, a political subdivision of the State of Texas (hereinafter

referred to as the "County"), andDr. Dirk D. Laukien, Owner- Lessor (hereinafter referred

to as the "Owner"), the owner of certain taxable real property which is located in the

Montgomery County Reinvestment Zone, and Bruker Optics, Inc., Tenant - Lessee

(hereinafter referred to as the "Lessee"), the tenant of said taxable real property.

I.

AUTHORIZATION

This Agreement is authorized by Resolution and Order of the Commssioners

Court of the County adopted the 13th day of March, 2006, which established the County's

Tax Abatement Policy for designated properties located in the Montgomery County

Reinvestment Zone.

II.

PROPERTY

The location of the taxable real property which is the subject of this Agreement

(hereinafter referred to as the "Property") is on 2700 North Crescent Ridge, The

Woodlands, Texas. The tax account number of the Property is: 00.9714.08.00204 (2.21

acres of a tract encompassing 6.653 acres). It is understood and agreed that the property

Ta.v .'Malciiicnl Agreemeiu bclwtien Monlgoniery Coiinly

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may be assigned a different account number by ttie Montgomery Central Appraisal Dstrict.

III.OWNER'S REPRESENTATIONS

a. The Owner represents that it is the owner in fee simple of the Property and

acknowledges that the Property is currently located within the boundaries of a

Reinvestment Zone. The Owner represents that the present use of the Property is as

follows: unimproved raw land.

b. The Owner represents that no interest in the Property is held or leased by

a member of the Commssioners Court of Montgomery County.

IV.TERMS OF THIS AGREEMENT

a. The Owner and/or the Lessee contemplate making the following

improvements to the Property (hereinafter referred to collectively as the "Improvements"):

construction of a 22,000 square foot building.

b. The Owner and the Lessee further contemplate that the schedule for the

construction of the Improvements wll provide that substantial completion of the

Improvements wll occur on or about January 1, 2008.

c. Commencing upon completion of the Improvements and continuing through

the remainder of the Tax Abatement Pehod (as hereinafter defined), the Owner and the

Lessee shall use the Property for the purpose of production and biotechnology; provided,

Ta,\l Agrcenieiil between Monlgoniery Coiinly

and Bniker Optics Piase li 6/06/07 Page 2 ol' 1 I



however, the County may approve a change of the proposed use, in whting, if the County

determnes that the change is consistent with the County's Tax Abatement Policy.

d. During the pehod of construction and upon completion of the Improvements,

and continuing through the remainder of the Tax Abatement Pehod, the Owner and the

Lessee shall maintain the Improvements in good repair and condition duhng the tax

abatement penod.

e. The Owner and the Lessee shall allow the County's employees, agents and

representatives access to the Property at any reasonable time forthe purpose of inspecting

the Improvements to insure that the Improvements are completed and maintained in

accordance wth the terms of this Agreement.

V.TAX ABATEMENT

a. If the Owner and/or Lessee complete the Improvements or cause the

Improvements to be completed in accordance wth the terms of this Agreement, the

Owner shall be entitled to a tax abatement on the additional value to the certified full

market appraised value (value before special use or exemptions are given) of the Property

as of January 1, 2008 (including both land and improvements) to the extent the Property's

certified full market appraised value for that year exceeds the Property's certified full

market appraised value as of June 1, 2007. The County hereby represents to Owner that

the Property's certified full market appraised value as of June 1, 2007, is $481,338. This

tax abatement is granted by official action of Commssioners Court, according to the

TnN Abniemciil Agreenieiil between Montgomery County

and Bruker Opiics Phase 116/06/07 Page.1 of M



following schedule, which is set forth in the County's Tax Abatement Policy:

Year of Abatement Percentage of Taxes Abated

2008

2009

2010

2011

2012

2013

100% (construction)

100%

80%

60%

40%

20%

As used herein, the term "Tax Abatement Period" shall mean the period

commencing on January 1, 2008, and shall continue through and expire on December 31,

b. Wth respect to each calendar year during the Tax Abatement Pehod, the

abatement herein granted shall apply to the extent that the Property's certified full market

appraised value (including land, buildings, structures, fixed machinery and equipment and

site improvements) for that calendar year exceeds the Property's certified full market

appraised value (including land, buildings, structures, fixed machinery and equipment and

site improvements) as of June 1, 2007. The Property's certified full market appraised value

(including land, buildings, structures, fixed machinery and equipment and site

improvements) shall be that as determned on the rolls of the Montgomery County

Appraisal District. The tax abatement herein granted shall be effective with the January 1

valuation date immediately following the date this Agreement is executed by all parties.

2013.

Tax Abalcmenl Agiccnienl bewucn Monlgoniery CoLiiily

and Biiker 0|)lics Iha.se II 6/06/07 Page 4 of I I



Postifi=7 9̂% j*ol pages

REPORTING REQUIREMENTS

Beginning July 1, 2008, the Owner or the Lessee shall provide sem-annual written

reports to the County duhng the term of this Agreement, due on January 1 and July 1 of

each year. The reports shall be submtted to the Commssioner of the County Precinct in

which the Property is located, and the County Tax Assessor-Collector, and shall contain

the following information:

a. The status of .completion of the Improvements;

b. The mnimum and maximum number of persons employed by Owner and

Lessee and/or its affiliates that actually office at the Property, duhng each of the six (6)

months preceding the report;

b. The increase in valuation of the Property during the previous year;

d. The status of the use of the Property duhng the six (6) months preceding the

report;

e. Any change in the identity of principals of the Owner, or in financial status

of the Owner and their principals, or any other change of information regarding the Owner

contained in this Tax Abatement Agreement or the Tax Abatement Application completed

by the Owner; except for changes that affect less than 10% of the ownership of the Owner;

and

f. Any other information as reasonably requested in whting by the

Commssioner of the County Precinct in which the Property is located, by the County Judge

Ta,\l Agreemeiil between Montgomery County

and Bruker Optics Phase II 6/06/07 Page 5 of I I



or by the County Tax Assessor-Collector.

Owner and Lessee shall further provide to County, upon whtten request, any

supporting documentation and information deemed reasonably necessary by the County to

insure Owner's and Lessee's compliance with this Tax Abatement Agreement, including,

but not limted to, payroll records, updated financial statements, employee personnel

records, and loan or financing records and documentation. However, such information

may be deemed confidential by law, and upon request by Owner or Lessee, such

confidential information may be made available for County's review in the offices of Owner

which are located in Montgomery County.

VII.

EVENT OF DEFAULT

The County may declare a default upon the occurrence of any one or more of

the following circumstances:

a. At any time after construction is completed and duhng the remainder of the

Tax Abatement Period, the number of persons employed by Owner and/or Lessee or its

affiliates that actually office at the Property shall fall below fifteen (15) Full-Time

Equivalents (as hereinafter defined) for a period in excess of thirty (30) days, or more than

five (5) times during the term of the Tax Abatement Period. As used herein, "Full Time

Equivalent" shall mean a level of effort excluding vacation and other nonproductive time,

equivalent to that which would be provided by one person working full time, which shall be

deemed to equal 1830 billable person hours of effort on an annualized basis;

Tax Abalcmenl Agieenicnl beween Monlgoniery Counly

•MK Broker Opiics Piase II 6/06/07 Page 6 ofl I



b. Should construction of improvements not proceed as planned, endangehng

the agreed substantial increase in County Tax Revenue, in the opinion of Commssioners

Court;

c. At any time duhng the Tax Abatement Period, the Owner or Lessee fails,

refuses or neglects to comply wth any of the terms of this Agreement;

d. At anytime duhng the Tax Abatement Pehod, any representation or warranty

made by the Owner or Lessee in this Agreement is or becomes false or msleading in any

matehal respect.

e. At any time dunng the Tax Abatement Pehod, the Owner or Lessee applies

for and receives any form of tax exemption on any type of personal property or inventory

produced, stored or maintained at the site of this Property (including, but not limted to, a

freeport or pollution control exemption), exclusive of tax exemptions for Federal Income

Taxes or Excise Taxes; or ,

f. The improvements are not substantially completed by January 1, 2008.

If the County declares the Owner or the Lessee in default of this Agreement, this

Agreement shall termnate unless cured in accordance wth the following paragraph of this

Section VII, and the County shall be entitled to recapture any property tax which has been

abated as a result of this Agreement.

The County shall notify the Owner and the Lessee of the default by giving written

notice to the Owner and the Lessee, which notice shall specify the basis forthe declaration

of default. The Owner and the Lessee shall have thirty (30) days from the date of the

notice to cure the default. If the Owner and/or the Lessee proceed diligently, but fail to

la.x Aliaieiiiciil AgrccinenI beween Monlgoniery Counly

and B-uke- O)lics'l'lia,se II 6/06/07 Page 7 ofl I



cure the default within the thirty (30) day period, the County may, at the option of

Commssioners Court, extend the time for curing the default for a second thirty (30) day

period, so long as the Owner and/or the Lessee commence to cure such default within the

initial thirty (30) day period and pursue such cure to completion. The County is under no

obligation to extend the period for cunng any default. If the circumstances of default are

not cured to the County's satisfaction, this Agreement may at the County's discretion be

finally declared in default, and the County shall be entitled to recapture any property tax

which has been abated as a result of this Agreement.

vm

NOTICE

All notices shall be in whting, and delivered by certified mail, return receipt

requested, or by hand-delivery wth written receipt, to the following address:

To the Owner/Lessee: Dr. Drk D. Laukien,c/o Sean Quinn

2700 North Crescent Ridge Drive

The Woodlands, Texas 77381

To the County: County Tax Assessor-Collector

400 N. San Jacinto

Conroe, Texas 77301

All notices shall be deemed given upon deposit in the United States mail or upon

receipt of hand-delivery. Either party may designate a different address by giving the other

party ten (10) days' whtten notice.

Ti.x Aiaicmcnt Agreement between iVonlgomcry Cotinty

and Bruker 0|)lles Phase II 6/06/07 Page 8 of 11O



IX.CONDITION

This Agreement is conditioned entirely upon the approval of Commssioners

Court by the affirmative vote of a majority of the members at a regulahy scheduled

meeting.

X.

TEXAS LAW

This Agreement shall be governed and construed according to the laws of the State

of Texas.

XI.ASSIGNMENT

Under no circumstances shall this Agreement or the tax abatement granted herein

be assigned by the Owner or the Lessee without the prior written consent of the County.

XII.

INDEMNIFICATION

OWNER AND THE L E S S E E , COLLECTIVELY AND INDIVIDUALLY, AGREE TO

DEFEND AND INDEMNIFY THE COUNTY FROM AND AGAINST ALL CLAIMS,

DEMANDS, DAMAGES, LOSSES, AND EXPENSES, INCLUDING COURT COSTS AND

REASONABLE ATTORNEY'S F E E S , AND ALL LOSS, DAMAGE OR INJURY, OR

DEATH RESULTING THEREFROM, TO OWNER'S OR LESSEE'S PROPERTY OR

Ta,\l Agreement beween iVonigonicry Coiiiily A '>'" ^

and Bruker Optics Phase II 6/06/07 Page 9 of 11 (j l l lU f: .0 ^



PERSONNEL, THIRD PERSONS ORTHE PROPERTY OR PERSONNEL OF AGENTS,

EMPLOYEES OR CONTRACTORS OF OWNER OR LESSEE ARISING OUT OF OR IN

CONNECTION WITH AND DURING THE OPERATIONS UNDER THIS AGREEMENT.

EXECUTED this 18th day of June, 2007.

MONTGOMERY COUNTY, TEXAS

Alan B. Sadler

County Judge

Mke Meador

Commssioner, Precinct 1

ATTEST:

Mark Turnbull

County Cerk

" " / / I IM lH l ' . l ' ' -

Craig Doyal J /

Commssiomer, Precinct 2

Ed Chance

Commssioner, Pfecinct 3

Ed̂ Rinehart

Commssioner, Precinct 4

PROPERTYOWNpR/DR, DIRlk Df LA'OklEN,

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By: lonathan D. Hitchcock,

r̂easurer/Controller

•|'ax Abalcmenl Agreemenl beween Monlgoniery Counly

and Bruker Opics'pha,sc II 6/0(-)/07 Page I I of II

0 0 *f • u I

2700 technology forrest drive tax abatement

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