HomeMy WebLinkAboutResolution - 2024-R0136 - Extension, City Tax Abatement Agreement No. 17471, Dura-Line, LLC - 03/26/2024Resolution No. 2024-R0136
Item No. 5.23
March 26, 2024
RESOLUTION
WHEREAS, on August 22, 2023, through Resolution No. 2023-R0416, the City Counci�
of the City of Lubbock (the "Council") approved a five-year declining Tax Abatement Agreemen�
with Dura-Line, LLC ("Dura-Line"), Contract No. 17471; and
WHEREAS, as part of Dura-Line's application to the City of Lubbock (the "City"
requesting an industrial tax abatement, Dura-Line stated its projected start date for the constructioi
of new improvements would begin in September 2023 and end in October 2024; and
WHEREAS, due to certain economic factors, Dura-Line now projects the start date
construction to begin in February 2024 and end in December 2025 and requests from the City
extension herein; NOW THEREFORE
BE IT RESOLVED BY TH� CITY COUNCIL OP THE CITY OF LUBBOCK:
THAT the Council hereby authorizes and directs the City Manager to execute for and oc
behalf of the City of Lubbock, a Request for Extension of Construction Deadline for Dura-Line';
improvements, and related documents. Said Extension is attached hereto and incorporated in thi�
resolution as if fully set forth herein and shall be included in the minutes of the City Council.
Passed by the City Council on March 26, 2024
TRAY PAY{jF ;, MAYOR
ATTEST:
Courtney Paz, City Secretary
APPROVED AS TO CONTENT:
D. lu Ko elich, Chief ' ncial Officer
APPROVED AS TO FORM:
� �
elli Leisure, Senior Assistant City Attorney
ccdocslRES.dura-linc requcst for extension
3.7.24
DocuSign Envelope ID: 6C4895C1-5F9D-4F57-BDBF-D106D20FSE8C
City of Lubbock, TX
Tax Abatement
Request for Extension of Construction Deadline
Resolution No. 2024-R0136
Company Name
Authorized Company Representative
Dura-Line LLC
Elad Shmulevich
Authorized Company Representative Title Vice President of Global
Construction Completion Date in Tax
Abatement Contract
October, 2024
Request for Extension of Construction Deadline
The below signed requests the construction deadline in the tax abatement contract be extended to: December, 2025
Reason for Extension:
Due to the rapidly changing economic environment, Dura-Line has taken the opportunity to align our business needs
and evaluate the timing of the allocation of our resources. We are currently assessing the effect of market conditions
such as the cosl of borrowing for customers due to higher interest rates and other factors that affect our customers'
needs.
22.00 February 2024
Signed this day of ,
oo��sis�aa nY: Month Year
��D� SU,wtl��
Authorized Company Representative
Approved by:
City of Lubbock Rcprescntativc Namc (Print):
Signature
2/21/2024
Date Received:
f March 26, 2024
Received by: Request tor Extension Form
DocuSign Envelope ID: 9E9DCACD-7DOC-4DD8-8277-3C1778857245
� dura•lin¢
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January 29. 2024
By EMAIL and CERTIFIED MAIL
City Of Lubbock
do City Manager
PO Box 2000
Lubbock, TX 89457
Re: Improvement Project for 904 Lubbock Business Park Boulevard, Lubbock, Lubbock County, Texas
Dear City of Lubbock,
Due to the rapidly changing economic environment, Dure-Line has taken the oppoRunity to align our business
needs and evaluate the timing of the allocation of our resources. We are currently assessing the effect of
market conditions such as the cost of borrowing for customers due to higher interest rates and other fadors
that affect customer's needs.
Therefore, we wish to notify you that we are adjusting the projected commencement of the subject
Improvement Projed from September 2023 to February 2024. The improvement should be completed by
December 2025. Based on this adjustment, the time frame for creating new jobs and tax abatement as set
forth in the corresponding Tax Abatement Agreement between the City and Dura-Line would become the
December 2024 to December 2028-time frame.
We will continue to monitor the market conditions to best finalize and implement all aspects of the projed
schedule. We currently have almost $20M of equipment that has been ordered specifically for the site and is
due to be delivered commencing in March 2024. This equipment will only be stored on site until it is installed
commencing in December 2024 and throughout 2025. We exped to commence hiring of employees in
December 2024. Through it all, Dura-Line remains committed to our Lubbock site and the Lubbock community.
Lubbock is an important part of our strategy going forward. We look forward to maintaining an open
conversation and as we finalize our timeline, we will communicate our plans to you and the proper partners in
Lubbock. If you have any further questions, please do not hesitate to reach out to us.
Thank you,
�DocuSigned by:
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EFI7FBE3F87E429
Elad Shmulevich
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