HomeMy WebLinkAboutResolution - 2021-R0055 - Nomination of United Supermarkets, Texas Enterprise Zone ActResolution No. 2021-R0055
Item No. 6.4
February 9, 2021
RESOLUTION
WHEREAS, on November 17, 2020 the City of Lubbock (City) previously passed
Ordinance No. 2020-00154 electing to participate in the Texas Enterprise Zone Program, a copy
of which is attached and incorporated as if fully set forth herein. The local incentives offered
under this resolution are the same on this date as were outlined in Ordinance No. 2020-00154;
and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act,
Texas Government Code (the "Act"), United Supermarkets, L.L.C. has applied to the City for
designation as an enterprise project; and
WHEREAS, the Office of the Governor Economic Development and Tourism (EDT)
through the Economic Development Bank will consider United Supermarkets, L.L.C. as an
enterprise project pursuant to a nomination and an application made by the City; and
WHEREAS, the City desires to pursue the creation of the proper economic and social
environment in order to induce the investment of private resources in productive business
enterprises located in the City and to provide employment to residents of enterprise zones, to
Veterans, and to economically disadvantaged individuals; and
WHEREAS, the City finds that United Supermarkets, L.L.C. meets the criteria for
designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the
following grounds:
(1) United Supermarkets, L.L.C. is a "qualified business" under Section 2303.402 of the Act
since it is engaged in the active conduct of a trade or business at a qualified business site located
outside an enterprise zone and at least thirty-five percent (35.0%) of the business' new employees
are residents of an enterprise zone, or Veterans, or economically disadvantaged individuals; and
(2) There has been and will continue to be a high level of cooperation between public, private,
and neighborhood entities within the area; and
(3) The designation of United Supermarkets, L.L.C. as an enterprise project will contribute
significantly to the achievement of the plans of the City for development and revitalization of
the area; and
WHEREAS, the City finds that United Supermarkets, L.L.C. meets the criteria for tax
relief and other incentives adopted by the City on the grounds that it will be located at the
qualified business site, will retain a higher level of employment, economic activity and stability;
and, the City finds that it is in the best interest of the City to nominate United Supermarkets,
L.L.C. as an enterprise project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
1. THAT the findings of the City and its actions approving this resolution taken at the
council meeting are hereby approved and adopted;
2. THAT the City finds that United Supermarkets, L.L.C. is a "qualified business", as
defined in Section 2303.402 of the Act and meets the criteria for designation as an enterprise
project, as set forth in Section 2303, Subchapter F of the act;
3. THAT the enterprise project shall take effect on the date of designation of the enterprise
project by the EDT and terminate five years after the date of designation; and
4. THAT pursuant to United Supermarkets, L.L.C. application for designation as an
enterprise project and the above findings, the City hereby nominates United Supermarkets,
L.L.C. to the Office of the Governor Economic Development and Tourism through the Economic
Development Bank as an enterprise project pursuant to the Act; and the City's Designated Liaison
is authorized to submit an application and nomination on behalf of United Supermarkets, L.L.C.
PASSED BY THE CITY COUNCIL ON 9th day of Febr ary 2021.
DANIEL M. POPE, MAYOR
ATTEST:
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Rebe a arza, City Se et y
APPROVED AS TO CONTENT:
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Cheryl Bro k, Director of Financial Planning & Analysis
A VED AS TO FORM:
K lli Leisur , Assistant City Attorney
United TX EZ Tab 6 Nominating Resolution
1.11.21
First Reading
November 2, 2020
Item No. 7.2
ORDINANCE NO. 2020-00154
Second Reading
November 17, 2020
Item No. 6.1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS, ORDAINING THE CITY' S PARTICIPATION IN THE TEXAS ENTERPRISE
ZONE PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT,
CHAPTER 2303, TEXAS GOVERNMENT CODE; NOMINATING X-FAB TEXAS,
INC. TO THE OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND
TOURISM THROUGH THE ECONOMIC DEVELOPMENT BANK AS AN
ENTERPRISE PROJECT; PROVIDING TAX INCENTIVES; DESIGNATING A
LIAISON FOR COMMUNICATION WITH INTERESTED PARTIES; DIRECTING
STAFF TO SUBMIT AN APPLICATION IN CONJUNCTION WITH NOMINATION;
DESIGNATING THE EFFECTIVE PERIOD FOR THE ENTERPRISE PROJECT;
PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION.
WHEREAS, the City Council of the City of Lubbock, Texas (the "Council") desires
to create a robust economic and social environment to induce the investment of private
resources in productive business enterprises located in severely distressed areas of the city
and to provide employment to residents of such areas; and
WHEREAS, X-Fab Texas, Inc. ("X-Fab") has requested the City Council of the
City of Lubbock, TX (the "Council") to nominate its activity of business as an enterprise
project pursuant to the Texas Enterprise Zone Act (the "Act") of Chapter 2303 of the Texas
Government Code; and
WHEREAS, X-Fab is located within the following Enterprise Zone:
Census Tract 2.01 Block Group 2, EZ/RZ # 44; and
WHEREAS, the Council has previously designated enterprise projects, approved by
the Economic Development Bank's (the "Bank") predecessor agency, as follows:
EP1015-120115-L, approved December 1, 2015, expiring December 1, 2020
EP 1252-030220-A, approved March 3, 2020, expiring March 3, 2025; and
WHEREAS, the City finds that X-Fab Texas, Inc. meets the criteria for tax relief
and other incentives adopted by the City on the grounds that it will be located at a qualified
business site, will create a higher level of employment, economic activity and stability; and
WHEREAS, a public hearing to consider this ordinance was held by the Council on
November 2, 2020; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the facts and recitations contained in the preamble of this
ordinance are hereby found and declared to be true and correct.
SECTION 2. THAT the City nominates X-Fab Texas, Inc. for enterprise project
status (single).
SECTON 3. THAT the following local incentives, at the election of the governing
body, may be made available:
a. Jurisdiction -Wide:
i) Tax Abatement - The City may abate taxes on industrial projects on the
increase in value of real property improvements and eligible personal property jurisdiction
wide. The level of abatement shall be based upon the extent to which the business receiving
the abatement creates jobs for qualified employees, in accordance with the City of Lubbock
Industrial Tax Abatement Policy, and with qualified employees being defined by the Act.
ii) Tax Increment Financing - Three Tax Increment Financing Reinvestment
Zones have been established within the City.
iii) Freeport Exemption - Freeport goods, as described in Art. 8 Sec. 1 j(a) of
the Texas Constitution and Section 11.25 of the Texas Tax Code, are tax exempt pursuant
to City of Lubbock Resolution No. 6142, passed December 18, 1998.
iv) Zoning ChangesNariances
A) Zoning Ordinances of the City may be amended in such a manner as to
promote economic development.
B) The Zoning Board of Adjustment may grant a variance or a special
exception for a particular property.
v) Capital Improvements in Water and Sewer Facilities - As part of its ongoing
capital improvements program, the City replaces and upgrades its water and sewer
infrastructure as required.
vi) Creation or improvement of parks - The City has an ongoing park
improvement project relating to park amenities.
vii) Road Repair - Annual maintenance and repair of roads citywide is provided
through an ongoing capital improvements program.
viii) Low -interest loans for housing rehabilitation or new construction - The City
has a Community Development Program funded from Community Development Block
Grants and the HOME program for granting low interest loans for housing rehabilitation or
new construction.
ix) Promotion and Marketing Services - Lubbock Economic Development
Alliance (LEDA), the City's 4A economic development sales tax corporation, and Market
Lubbock Economic Development Corporation (Market Lubbock), which is funded almost
entirely by the City of Lubbock, provide marketing and promotion services for the City to
targeted businesses.
x) Customized Job Training - LEDA, the 4A Economic Development
Corporation for Lubbock, and Market Lubbock work with new and existing businesses, as
part of their programs, to provide job training and job creation incentives on a case -by -case
basis.
xi) Job Training and Employment Services - The City participates in Workforce
Solutions South Plains, the local workforce development board, to provide training,
retraining, and employment services for local employers.
xii) Streamlined Permitting — The City, through its new online permitting and
one stop shop on the 1" floor of the new Citizens Tower, provides streamlined permitting.
xiii) Improved Police and/or Fire Protection — The City has begun construction
on new community police substations as a part of the new community policing model that
is a part of the Public Safety Improvements Project which will construct a new police
headquarters, three community substations, crime lab/property room, and municipal court.
xiv) Community Crime Prevention Programs — The City of Lubbock Police
Department have developed crime prevention programs such as the SafeCam program.
This program is to deter crime and promote public safety through collaboration between
officers and the community they serve.
b. In the Enterprise Zones:
i) The City may abate taxes on Commercial projects on the increase in value
of real property improvements and eligible personal property that locate in one of the
following designated enterprise zone block groups:
EZ Block Groups:
Census Tract 2.01 Block Groups 1 and 2
Census Tract 2.02 Block Group 1
Census Tract 3.01 Block Groups 1, 2, and 3
Census Tract 3.02 Block Groups 1, 2, 4, and 5
Census Tract 6.07 Block Groups 1 and 2
Census Tract 9.00 Block Groups 1 and 4
Census Tract 10.00 Block Groups 1, 2, and 3
Census Tract 12.00 Block Groups 2 and 3
Census Tract 13.00 Block Groups 1, 2, and 3
Census Tract 14.00 Block Groups 1, 2, 3, 4, and 5
Census Tract 23.00 Block Groups 1 and 2
Census Tract 24.00 Block Groups 1, 3, 4, and 5
The level of abatement shall be based upon the extent to which the business receiving the
abatement creates jobs for qualified employees and the amount of investment in real
property improvements, in accordance with the City of Lubbock Commercial Tax
Abatement Policy, and with qualified employees being defined by the Act.
ii) The City may make a refund of building permit fees for businesses located
in designated enterprise zones as shown in (b)(i). above, in accordance with the City of
Lubbock Building Permit Fee Refund Policy.
iii) The City may, under appropriate circumstances, sell real property owned by
the municipality located in the enterprise zone in accordance with Texas Local Government
Code Section 2303.513.
SECTION 4. THAT the enterprise zone areas within the City are reinvestment
zones in accordance with the Texas Tax Code, Chapter 312:
EZ Block Groups:
Census Tract 2.01 Block Groups 1 and 2
Census Tract 2.02 Block Group 1
Census Tract 3.01 Block Groups 1, 2, and 3
Census Tract 3.02 Block Groups 1, 2, 4, and 5
Census Tract 6.07 Block Groups 1 and 2
Census Tract 9.00 Block Groups 1 and 4
Census Tract 10.00 Block Groups 1, 2, and 3
Census Tract 12.00 Block Groups 2 and 3
Census Tract 13.00 Block Groups 1, 2, and 3
Census Tract 14.00 Block Groups 1, 2, 3, 4, and 5
Census Tract 23.00 Block Groups 1 and 2
Census Tract 24.00 Block Groups 1, 3, 4, and 5
SECTION 5. THAT the City of Lubbock City Council directs and designates the
City Manager and/or his or her designee, as the City's liaison to communicate and
negotiate with the Office of the Governor, Economic Development and Tourism (EDT)
through the Bank regarding enterprise project(s), and to oversee zone activities and
communications with qualified businesses and other entities in an enterprise zone or
affected by an enterprise project.
SECTION 6. THAT the City of Lubbock City Council directs the City Manager
and/or his or her designee, to complete and submit an application to the Bank, nominating
X-Fab for the designation as an enterprise project.
SECTION 7. THAT the City finds that X-Fab Texas, Inc. meets the criteria for
designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the
following grounds:
a. X-Fab Texas, Inc. is a "qualified business" under Section 2303.402 of the Act since
it will be engaged in the active conduct of a trade or business at a qualified business
site located in an enterprise zone in the governing body's jurisdiction and at least
twenty-five percent (25%) of the business' new employees will be residents of an
Enterprise Zone, economically disadvantaged individuals, or veterans; and
b. There has been and will continue to be a high level of cooperation between public,
private, and neighborhood entities in the area; and
C. The designation of X-Fab Texas, Inc. as an enterprise project will contribute
significantly to the achievement of the plans of the City for development and
revitalization of the area.
SECTON 8. THAT the enterprise project shall take effect on the date of
designation of the enterprise project by EDT and terminate five (5) years after the date of
designation.
SECTION 9. THAT should any paragraph, section, clause, phrase or word of
this Ordinance be declared unconstitutional or invalid for any reason, the remainder of
the Ordinance shall not be affected thereby.
SECTION 10. THAT the City Secretary of the City of Lubbock, Texas, is hereby
authorized and directed to cause publication of the descriptive caption of this Ordinance as
an alternative means of publication provided by law.
AND IT IS SO ORDERED.
Passed by the City Council on first reading this 2nd day of November , 2020.
Passed by the City Council on second reading this 17th AoNovembiber_ 2020.
DANIEL M. POPE, MAYOR
ATTEST:
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Rebec arza, City Sec
APPROVED AS TO CONTENT:
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Cheryl Brock, Director of Financial Planning & Analysis
APPROVED AS TO FORM:
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elli Leisure, Assistant City Attorney
Ord.X-Fab ERZ nomination
10.20.20