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Home My WebLink AboutMinutes - City Council - Special - 5/30/1986SPECIAL CALLED CITY COUNCIL MEETING MINUTES The City Council Of the City Of Lubbock, Texas 08t in special called session on the 30th day of May, 1986 in the City Council Chambers, first floor, City Hall, 1625 13th Street, Lubbock, Texas at 8:00 d"m" Present: Mayor B.C. McMinn, Councilman Bob Nash, C0uOCf\maO T. J. Patterson, Councilman Gary Phillips, Councilwoman Maggie Tr 'O, City Manager Larry J. Cunningham, City Attorney John C. Ross, Jr,, and City Secretary Ranette Boyd. Absent: Councilman George Carpenter and Councilwoman Baker. Mayor McMinn called the meeting to order at 8:00 a.m. 86-45-264-347 The Invocation was given by Bob CdS3» Deputy City Manager. 86-45-264-348 ( 2°) The Pledge of Allegiance to the Flag was given in U0iS0D by those in the Council Chambers. 86-45-e64-149 3.) Conduct a formal presentation of a Reinvestment Zone Plan for all taxing units lev on real proeer within the zone which property is described in a Notice of Public Hearing on this subject published in the Lubbock Avalanche -Journal on May 23, 1986. Assistant City Manager Robert Massengale gave a briefing regarding proposal to create d reinvestment zone for the purpose Of encouraging economic development in the City Of Lubbock, using tax abatement as the incentive in this case. According to Mr. Massengale, Texas State Law enables the City Council to offer tax abatement by creation of d reinvestment zone. A reinvestment z0A8 is defined by law as property that substantially impairs or arrests the S0UDd growth and development of the City in its present use. Mr. Massengale said that by Resolution On June 28, I984 the City C0UDCi( designated areas Of the City Of Lubbock as eligible as incentives for 8COOomiC development. The area designated is located south to north along Avenue O, west to Quaker on the northern portion, and on the north and east runs along the City Limit lines~ The area requested for consideration by Council is included in the designated area. Mr. Massengale reviewed the procedures set by State Law as requiring posting, delivering and publication of notices within d defined time schedule; requiring participation of the other taxing entities in which the prospective zVD8 resides, as taxes of those entities would also be abated; requiring d f0r0d| presentation; and requiring d Public Hearing and passage of an Ordinance creating the specific free investment zone. All these requirements have either already been satisfied, or will be through the action of this meeting. After these requirements have been satisfied, Council may enter into Contract with a developer for improving the economy of the City of Lubbock. Mr. Massengale said that the ability to provide these incentives has been available through tax law for some time, through both the tax abatement procedure and the tax increment financing, and has been used in several cases around the State. Tax increment financing is presently tied Up in court, but there is no problem with tax abatement, which is what Council is considering. Mr" Massengale reminded Council that in November, 1985 they approved d Resolution setting out guidelines for Council in providing for ec0D0UiC development. That Policy Statement included Tax Increment Financing, Urban Renewal Tax Increment Financing, Tax Abatement, Industrial Development Bonds, contribution Of infrastruc- ture, Urban Development Action grants, and Other incen- tives that may become available. The Resolution also Set Out a procedure for evaluation of projects to determine if d project was d true eC0D00ic development and provided new iobs rahter than reolacino exfstino jobs. and 266 May 30, 1986 on McLane/Foodservice, Inc. which shows it to be evaluated at between 90 and 100 points, which, according to the policy passed by Council, calls for the highest participation available by Council. Rufus Grisham, Chairman of the Board of the Lubbock Chamber of Commerce, presented a request on behalf of the Board that the City Council establish a Reinvestment Zone for the purpose of abating taxes at the northeast corner of the intersection of Loop 289 and East 19th Street. He stated that the purpose of establishing this Reinvestment Zone is to allow tax abatement for property to be built to house McLane/Foodservice, Inc., a wholesale distribution center. The site consists of 32 1/2 acres, and building will be 180,000 square feet; 150 employees will be hired--15 will be moved in and 135 will be hired locally. The total investment will be around $10,000,000, according to Mr. Grisham. The proposed agreement called for between the taxing entities and McLane/Foodservice, Inc. calls for abate- ment of $770,000 in taxes over a period of not more than ten years. This amount is approximately the cost of the land, streets, utilities and permits necessary to allow the industry to begin construction. Mr. Grisham went on to say that personal property and inventory would be taxable under this Agreement. Mr. Grisham related that the Chamber Board feels this is one of the lest expensive incentives possible, and they recommend City Council approval of the requests. 86-45-265-350 ( 4.) Consider adoption of a Reinvestment Zone Financing Plan. Motion was made by Councilman Patterson, seconded by Councilwoman Trejo adopting the Reinvestment Zone Financing Plan and recommended by the Lubbock Chamber of Commerce Board. Motion carried: 5 Yeas; 0 Nays. M2320-R199 THE STATE OF TEXAS ",,, COUNTY OF LUBBOCK 10&e'ANoi�t TAXABATEMENT ; Before me G I e n d a Rasco�� a Notar Public id for LubbockCo y n an4f,.Is'her0y given that y personally appeared ; t a, �oftheCitvaLub60erW3�r P' PP �l u f i I I# A c c t- M axe a 9- e r of the �6„du<t.,,,W,1C4"i*9Ato W.ja-aa- pers Corporation, publishers of the Lubbock Avalanche -Journal — Morning, Eve4M ,*'i6f a�tih'hM`Oitt-10 being by me duly sworn did depose and say that said newspaper hEs bee( blj�shed �,t e-oo;A� t6 ,,e L e 9 a I 0 t 2 C eG t1� CouncFhChar�ber3 bt,Ctfv' than fifty-two weeks prior to the first insertion of this �it. ibu tam^sreeaubeoc,_ No 754852 at Lubbock County. Texas 14ff " ` It- ed copy of the Lega I Notice is a true copy of the original and waseb0ioro r k Avalanche -Journal on the following dates: May 23, 1986 =3e�o'NOtE�o>s�ertopror,_ 427 words - 62�6 zeusecretrac, :anotsec. 'Fen S,,BIOtIt.OCUbbotk,4oun1Y Mum fort bed�bYi�YQs: at' wbd�setInthe'' �c / / --� gEestynaWaaW 9ectiondil�hBlxk. O 500'0.i10 Esadietapae �Vc iteet'fiom the'Nod heas4 Corner / the Southeast �%a of said 3`ecfton s+: Account Manager THENCE S 00U3'10 E along t, LUBBOCK AVALANCHE -JOURNAL ar"atk°A a@distence of 98462 teettito a 318" Southwestern News a ers Corporation rodsef etfieNorthwesteriwrigM• P P P 1 .�A ; ka, t� wcroh oem v Subscribed and sworn to before me this—17day of Jame .1 119R6 GLENDA RASCO Notary Public In And For The State Of Texas FORM 58-10 My COn1 M1 ion Exprres Nov. (3. 4 86-45-265-351 ( 5.) Conduct a Public Hearing on the creation of a Reinvestment Zone. The following represented taxing entities and spoke in favor of creation of a Reinvestment Zone: Gary Boren, President Lubbock Independent School District Board of Trustees Altnn Rra7P11_ rnunty rnmmiseinnar May 30, 1986 266 Wayne Wyatt High Plains Underground Water Conservation District Laurin Prather, Chairman Pro Tem Board of Directors of the Lubbock County Hospital District Others speaking in favor were: Dwain Miller, J.C. Chambers, Sherry King, Phil Pirkle, Ron Roberts, Pat McEachern, and W.R. Collier. No one spoke in opposition. 86-45-266-352 ( 6.) ORDINANCE #8928--Creating a Reinvestment Zone. ORDINANCE #8928 AN ORDINANCE DESIGNATING A REINVESTMENT ZONE WITHIN THE CITY OF LUBBOCK AS AUTHORIZED BY ART. 1066f, V.A.C.S.; DESCRIBING THE BOUNDARIES OF SAID ZONE; DESCRIBING THE ELIGIBILITY OF SAID ZONE FOR COMMERCIAL -INDUSTRIAL TAX ABATEMENT; AND PROVIDING FOR A SAVINGS CLAUSE. Assistant City Manager Robert Massengale advised Council that based on the information provided to the City by the Chamber of Commerce, McLane Industry qualifies for incentive support by the City Council as established in the Policy for Economic Development passed by City Council in November, 1985. Staff recommended approval of creation of the Reinvestment Zone. Motion was made by Councilman Nash, seconded by Councilman Patterson passing on first reading Ordinance # 8928. Motion carried: 5 Yeas; 0 Nays. 86-45-266-353 ( 7.) Consider adoption of RESOLUTION #2332 authorizing the Mayor to execute a Contact to abate real property taxes on land within Reinvestment Zone. RESOLUTION #2332 RF, (ni IITTnN BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT thew Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behlaf of the City of Lubbock, a contract between the City of Lubbock and McLane/Foodservice Lubbock, for the abatement of real property taxes within a duly authorized and constituted Reinvestment Zone within the City of Lubbock, attached herewith which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 30th day of May, 1986. /s/ B. C. McMinn B. C. McMINN, MAYOR ATTEST: /s/ Ranette Boyd Ranette Boyd, City Secretary APPROVED AS TO FORM: /s/ John C. Ross, Jr. John C. Ross, Jr., City Attorney AGREEMENT � STATE OF TEXAS § � KNOW A�� MEN 8Y THESE PRESENTS: | COUNTY OF LUBBOCK ' � WHEREAS, the City Of Lubbock, pursuant to the prOYi5i0O8 of Article i I066f Of the Revised Civil Statutes Of the State of T8XdG, known DS the � "Property Redevelopment and Tax Abatement Act", has designated by ordinance, which ordinance is attached hereto as Exhibit xAn, and 1000rpOrOt8d herein by reference for all purposes, certain property as d reinvestment zone for commercial -industrial tax abatement under Section 3 of Said Act; and � WHEREAS, McLaOo/FoOdserViC8 Lubbock is the owner of certain real � property located within said reinvestment zone, and described in Ordinance No. 8928, heretofore incorporated into this Agreement as Exhibit "A"; and ! WHEREAS, the City desires to promote and encourage the development Of | | ! industry and the PXpdOsiOU and the growth of the Property; NOW THEREFORE: -- | - � FOR AND IN CONSIDERATION Of the mutual covenants and agreements herein | C0OtDiDed» the City of Lubbock, Texas, a municipal corporation, acting by and through B.C. McMinn, its Mayor, h2r8UDtO duly authorized, and hereinafter called "City", and MCLaDp/FOOdserV1Ce Lubbock, d Texas corporation, acting by and through its duly authorized officers and agents, and hereinafter called � x " | F0Vds8rViCehave this day entered into the following contract and agree- ment: � � l. Term. This Agreement shall expire and be of OO further force Or � effect between the parties when F0OdSerYiCe has received $770,000 in tax � abatement relief Or ten /10\ years from the date of its execution whichever � event OCCurS first. � 2, Exemption from Tax. The City CVYSVaOts and agrees to exempt and � abate real property tax, on d lot by lot basis, based UV0n the following | schedule: ! /d\ TOX8S on the raw land within the reinvestment Z00e as established ! in Ord. No. 8928 attached hereto as Exhibit "A" shall be no more | than the taxes levied on said land for the year I986. � b () �D8 Hundred (�OO�\ percent 0f F00�38rYiC2'� i0pr8V�0�DtS On said ` ' � | � real property for the term of this Agreement. ! (C) During the term of this Agreement, F00dserYiCe agrees LV Use its best efforts to maintain O minimum of 100 employees at the Lubbock facility. 3, Construction Of Improvements. F00dServfCe C0Vpndnt5 and agrees � � that it shall, within the term of this Agreement, complete the improvements indicated 00 the attached Exhibit R, in an orderly 0dDD8r as the property is developed. � 4. City Access to Property. F00dSerViCe agrees that the City shall have dCc8SS to the property and that municipal employees shall be able to inspect the property to insure that the improvements are being made in accordance with the specifications and conditions of this Agreement. 5, Limitation OD Use. F0VdSerVfC8 agrees to limit the use Of the property for commercial and/or industrial uses as those terms are defined in the zoning ordinances of the City of Lubbock. d° Default. FOVdserViCe agrees that should it fail to 0dhe the improvements called for under this Agreement, then the City Shall have the right, after giving notice and opportunity to cure as hereinafter set out, to recapture all property tax revenue on the property lost as d result of this Agreement. The City agrees, prior to the enforcement of the terms Of this | � | | Paragraph, to give FOOds2rviCe thirty (30) days written notice to the address shown below of its default in completing the i0Vr0YS08DtS called for in this Agreement and FVOdSerViCe shall have the right to enter into a binding CO0tFaCt with d reputable [0DtF6ct0r to complete the i0p70V80eAtS within a r8dS0Dabl8 time in Order to cure said default. 7, Binding Effect. This Agreement shall fOUr8 to the benefit of and be binding upon the City and F0Od8erViCe, their affiliates, subsidiaries, SuCceSSVr3 and assigns. | � | | 8. FO0dSerYice agrees that this Agreement may not be assigned without the prior consent Of Citv, 9. Notices. Notices required by this Agreement shall be mailed to the following addresses: City Of Lubbock MCLaDe/F0VdserviCe Lubbock City Manager 2915 Center Street P.O. 80X 2000 P.O. BOX 80 H IO. Effective Date. This Agreement Shall not be effective until such time as Ordinance �No. �8928 creating the Reinvestment Zone Shall be finally pdSS8d and approved. EXECUTED this 30th day of May, 1986. MCLANE/FO0D5ERVICE LUBBOCK, INC. A Texas Corporation: PRESIDENT ATTEST: Secretary CITY OF LUBBOCK, TEXAS A Municipal Corporation: McMinn B.C. McMINN, MAYOR ATTEST: Ranette Boyd, City Secretary APPROVED AS TO CONTENT: Massengale/s/ Robert Robert Massengale, Assistant City Manager City Attorney Motion was made by Councilman Phillips, seconded by CVUDC1lwOmdD Trej0 authorizing Resolution #2332. Motion carried: 5 Yeas; O Nays. Mayor McMinn announced that a press conference formally announcing action in this meeting would be held at I:30 p.m. at the Chamber of Commerce. He also announced that d Special Meeting Of City Council would be held at 8:00 a.m., Monday, June 2, 1986 for the purpose of having GeC0Md and final reading of |� Ordinance #8928. There being DV further bUSin8S3 to come before the Council, the meeting was adjourned at 8:40 a.m. B. C. MNINN, MAYOR ATTEST: Ran'ette READ AND APPROVED THIS 12TH DAY OF JUNE, 1986° S. C. McMINN, MAYOR Ran te Boyd, City Secretary