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HomeMy WebLinkAboutOrdinance - 2000-O0032 - Nominating Two Areas As Enterprise Zones - 06/08/2000First Reading Second Beading May 25, 2000 June 8, 2000 Item No. 43 Item No. 20 ORDINANCE NO. 2000-00032 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS NOMINATING TWO AREAS AS ENTERPRISE ZONES PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT (TEXAS GOVERNMENT CODE, CHAPTER 2303); PROVIDING TAX INCENTIVES; DESIGNATING AN AUTHORIZED REPRESENTATIVE TO ACT IN ALL MATTERS PERTAINING TO THE NOMINATION AND DESIGNATION OF THE AREAS DESCRIBED HEREIN AS ENTERPRISE ZONES AND REINVESTMENT ZONES (TEXAS TAX CODE, CHAPTER 312); AND FURTHER DESIGNATING A LIAISON TO ACT ON ALL MATTERS PERTAINING TO THE ENTERPRISE ZONE ACT ONCE DESIGNATED BY THE TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT. WHEREAS, the City Council of the City of Lubbock, Texas desires to create the proper 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; WHEREAS, certain conditions exist in such areas which represent a threat to the health, safety, and welfare of the people of such areas; and WHEREAS, it is necessary and in the best interest of the City to nominate two such areas as enterprise zones pursuant to the Texas Enterprise Zone Act (Texas Government Code, Chapter 2303, the "Act"); NOW, THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: Section 1. That the City hereby nominates the two areas described in Exhibit A and indicated on the maps in Exhibit B attached hereto and incorporated herein for designation as enterprise zones. Section 2. That the City Council finds the zone area meets the qualifications of the Act. Section 3. That the City Council hereby ordains and declares that upon designation of the Proposed Enterprise Zones as enterprise zones, the City shall provide the following incentives in the Proposed Enterprise Zones, including tax incentives, which are not applicable throughout the City: (a) The City may make a one-time refund of a part of the local portion of Sales and Use Taxes collected to any qualified business located in such enterprise zones based on employment of zone residents, in accordance with the attached Exhibit C. (b) The City may refund Sales and Use Taxes on purchases of eligible items from local (City of Lubbock) suppliers to any business designated as an Enterprise Zone Project and located in such enterprise zones, in accordance with the attached Exhibit D. (c) The City may abate Ad Valorem taxes on improvements, by new construction or modernization/renovation of retail, service and office related projects, that locate in a designated enterprise zone, for a period of not more than 5 years, in accordance with the attached Exhibit E. (d) The City may abate Ad Valorem taxes on improvements, by new construction or modernization/renovation of industrial related projects, that locate in a designated enterprise zone, for a period of not more than 10 years, in accordance with the attached Exhibit F. (e) Refund of building permit fees for businesses located in designated enterprise zones, in accordance with the attached Exhibit G. Section 4. That the areas described in this ordinance are designated as enterprise zones and reinvestment zones, subject to the approval of the Texas Department of Economic Development. Section 5. That the City Council directs and designates its mayor as the City's authorized representative to act in all matters pertaining to the nomination and designation of the areas described herein as enterprise zones and reinvestment zones. Section 6. That the City Council further directs and designates the Business Research Specialist as liaison for communication with the Texas Department of Economic Development to oversee zone activities and communications with qualified businesses. Section 7. That a public hearing to consider this ordinance was held by the City Council on May 25, 2000. Section 8. That this ordinance shall take effect from and after its passage as the law and charter in such case provides. AND IT IS SO ORDERED. Passed by the City Council on first reading this 25thday of May , 2000. Passed by the City Council on second reading this &hday of June , 2000. Windy SittotY, Mayor A' APPROVED AS TO CONTENT: tucnara rsuraine, Assistant any manager APPROVED AS TO FORM: r DVald G. Vandiver, First .Assistant City Attorney Dd/North-South Ordinance 3 Form for Vote Recordings That the foregoing ordinance was passed on First Reading on May 25, 2000, and finally passed and approved this the 8th day of June , 2000, by the following vote: Votes in Favor: Votes in Opposition: Mayor Windy Sitton T. J. Patterson J. David Nelson Frank Morrison Marc McDougal Alex "Ty" Cooke ATTEST: Mayor, City c Texas Ordinance No. 2000-0 0032 EXHIBIT "A" DESCRIPTION OF LUBBOCK 2000 NORTH ENTERPRISE ZONE: Beginning at the intersection of 4th Street and Avenue Q; THENCE west along 4th Street to its intersection with Avenue W: THENCE south along Avenue W to its intersection with 8th Street: THENCE east along 8th Street to its intersection with Avenue U; THENCE south along Avenue U to its intersection with Broadway; THENCE west along Broadway to its intersection with University Avenue; THENCE north along University Avenue to its intersection with 4th Street; THENCE west along 4th Street to its intersection with Detroit Avenue; THENCE north along Detroit and North Detroit Avenue to its intersection with Baylor Street; THENCE west along Baylor Street to its intersection with North Indiana Avenue; THENCE north along North Indiana Avenue to its intersection with Erskine Street; THENCE west along Erskine Street to its intersection with North Quaker Avenue; THENCE north along North Quaker Avenue to its intersection with Farm to Market Road 2641; THENCE east along Farm to Market Road 2641 to its intersection with North Avenue Q; THENCE south along North Avenue Q to its intersection with North Loop 289; THENCE east along North Loop 289 to its intersection with North Interstate 27 THENCE north along North Interstate 27 to its intersection with East Kent Street; THENCE east along East Kent Street to its intersection with North Martin Luther King Boulevard; THENCE south along North Martin Luther King Boulevard to its intersection with East Ursuline Street; THENCE east along East Ursulne Street to its intersection with North Guava Avenue; THENCE north along North Guava Avenue to its intersection with East Independence Street; THENCE west along East Independence Street to its intersection with North Fig Avenue; THENCE north along North Fig Avenue to its intersection with East Lawrence Street; THENCE west along East Lawrence street to its intersection with North David Avenue; Exhibit "A" THENCE south along North navie. v6n, ue to its intersection with East Jamestown Street; THENCE west along East Jamestown Street to its intersection with North Zenith Avenue; THENCE south along North Zenith Avenue to its intersection with East Independence Street; THENCE west along East Independence Street to its intersection with North Walnut Avenue; THENCE south along North Walnut Avenue to its intersection with East Bluefield Street; THENCE east along East Bluefield Street to its intersection with North Guava Avenue; THENCE south along North Guava Avenue to its intersection with Northeast Loop 289; THENCE southeast along Northeast Loop 289 to its intersection with East Erskine Street; THENCE east along East Erskine Street to its intersection with Idalou Road; THENCE southwest along Idalou Road to its intersection with East 4th Street: THENCE west along East 4th Street to its intersection with Walnut Avenue; THENCE south along Walnut Avenue to its intersection with East 8th Street; THENCE west along East 8th Street to its intersection with Oak Avenue; THENCE north along Oak Avenue to its intersection with Parkway Drive; THENCE west along Parkway Drive to its intersection with Mackenzie Park Road THENCE south along Mackenzie Park Road to its intersection with Yellow House Draw; THENCE south along Yellow House Draw to its intersection with East 19th Street; THENCE west along East 19th Street to its intersection with Avenue A; THENCE north along Avenue A to its intersection with Burlington Northern Santa Fe tail line; THENCE northwest along the Burlington Northern Santa Fe rail line to its intersection with Buddy Holly Avenue; THENCE north along Buddy Holly Avenue to its intersection with Municipal Drive; THENCE northeast along Municipal Drive to its intersection with Interstate 27; THENCE northwest along Interstate 27 and North Interstate 27 to its intersection with Avenue Q North Drive; i t,biblt W WHENCE southwest along Avenue t North Drive to its intersection with the Burlington Northern Santa Fe rail line; THENCE northwest along the Burlington Northern Santa Fe rail line to its intersection with North Avenue U; THENCE south along North Avenue U and Avenue U to its intersection with 3rd Street; THENCE east along 3rd Street to its intersection with Avenue Q; THENCE south along Avenue Q to the point of beginning. SAVE AND EXCEPT THE FOLLOWING TRACT; beginning at the intersection of North Martin Luther King Boulevard and East Erskine Street; THENCE east along East Erskine Street to its intersection with North Zenith Avenue; THENCE south along North Zenith Avenue to its intersection with East Auburn Street; THENCE west along East Auburn Street to its intersection with North Martin Luther King Boulevard; THENCE north along North Martin Luther King Boulevard to the point of beginning. THIS SAVE AND EXCEPT TRACT is Block Group 4 of Census Tract 9.00 from the 1990 Census. The Lubbock 2000 North Enterprise Zone contains approximately 15.5 square miles and consists of the following 1990 Lubbock County geographical areas: Block Group 4 of Census Tract 1.00; Block Group 1 of Census Tract 2.01; Block Group 7 of Census Tract 2.01; Block Group 9 of Census Tract 2.01; Block Group 2 of Census Tract 2.02; Block Group 3 of Census Tract 2.02; Block Group 3 of Census Tract 3.01; Block Group I of Census Tract 3.02; Block Group 2 of Census Tract 3.02; Block Group 6 of Census Tract 3.02; Block Group 7 of Census Tract 3.02; Block Group 8 of Census Tract 3.02; Block Group 9 of Census Tract 3.02; Block Group 1 of Census Tract 6.03; Block Group 3 of Census Tract 6.03; Block Group 4 of Census Tract 6.03; Block Group 5 of Census Tract 8.00; Block Group, 1 of Census Tract 9.00;'Block Group 2 of Census Tract 9.00; Block Group 3 of Census Tract 9.00; Block Group 5 of Census Tract 9.00; Block Group 9 of Census Tract 9.00; Block Group 5 of Census Tract 10.00 and Blocks 365, 364, 329A, 329B, 330A, ,330B, 331A, 331B, 332, 333, 334, 335, 336, 340, 341, 342, 343, 344, 345, 346, 347, 348,349, 350, 351, 352, 353, 354, 355A and 355B of Census Tract 102.00. 7 .. . 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Ilt . - Lit z Ordinance No. 2000-00032 Exhibit `A" DESCRIPTION OF LUBBOCK 2000 SOUTH ENTERPRISE ZONE: Beginning at the intersection of 50th Street and Interstate 27; THENCE north along Interstate 27 to its intersection with 34th Street; THENCE east along 34th Street to its intersection with Avenue A: THENCE north along Avenue A to its intersection with 191h Street; THENCE west along 19th Street to its intersection with Avenue W; THENCE north along Avenue W to its intersection with Broadway; THENCE east along Broadway to its intersection with Avenue U; THENCE north along Avenue U to its intersection with 8th Street; THENCE west along 8t" Street to its intersection with Avenue W; THENCE north along Avenue W to its intersection with 4th Street; THENCE east along 4th Street to its intersection with the Burlington Northern Santa Fe rail line; THENCE southeast along the Burlington Northern Santa Fe rail line to its intersection with Avenue A; THENCE south along Avenue A'to its intersection with the Burlington Northern Santa Fe rail line just south of 26th Street; THENCE southeast along the Burlington Northern Santa Fe rail line to its intersection with the Burlington Northern Santa Fe rail just south of the extension of East 33rd Street and west of Martin Luther King Boulevard; THENCE northwest along the Burlington Northern Santa Fe rail line to its intersection with East 19th Street; THENCE east along East 19th Street to its intersection with Yellow House Draw; THENCE north along Yellow House Draw to its intersection with East Broadway; THENCE east along East Broadway to its intersection with Oak Avenue; THENCE south along Oak Avenue to its intersection with East 13th Street; THENCE east along East 13th Street to its intersection with Redbud Avenue; THENCE south along Redbud Avenue to its intersection with East 14th Street; THENCE east along East 14th Street to its intersection vrith Vanda Avenue; THENCE south along Vanda Avenue to its intersection with Idalou Road; THENCE northeast along Idalou Road to its intersection with East 4th Street; Exhibit "A" THENCE east along East 4th Street to its intersection with Olive Avenue; THENCE south along Olive Avenue to its intersection with Yellow House Draw; THENCE northwest along Yellow House Draw to its intersection with East Loop 289; THENCE south along East Loop 289 to its intersection with the Burlington Northern Santa Fe rail line; THENCE southeast along the Burlington Santa Fe rail line to its intersection with Peach Avenue; THENCE south along Peach Avenue to its intersection with East 82nd Street; THENCE west along East 82nd and 82nd Street to its intersection with Interstate 27; THENCE north along Interstate 27 to its intersection with Avenue Q South Drive; THENCE northwest along Avenue Q South Drive to its intersection with 50th Street; THENCE east along 50+h Street to the point of beginning. The Lubbock 2000 South Enterprise Zone contains approximately 16.3 square miles and consists of the following 1990 Census geographical areas: Block Group 2 of Census Tract 6.03; Block Group 2 of Census Tract 6.04; Block Group 1 of Census Tract 6.05; Block Group 4 of Census Tract 6.05; Block Group 2 of Census Tract 6.06; Block Group 3 of Census Tract 6.06; Block Group 1 of Census Tract 7.00; Block Group 2 of Census Tract 7.00; Block Group 3 of Census Tract 10.00; Block Group 3 of Census Tract 11.00; Block Group 4 of Census Tract 11.00; Block Group 5 of Census Tract 12.00; Block Group 7 of Census Tract 12.00; Block Group 1 of Census Tract 24.00; Block Group 2 of Census Tract 24.00; Block Group 3 of Census Tract 24.00; Block Group 4 of Census Tract 24.00; Block Group 1 of Census Tract 25.00; Block Group 2 of Census Tract 25.00; Block Group 5 of Census Tract 25.00; Block Group 9 of Census Tract 25.00; and the part west of Olive Avenue of the following Blocks of Census Tract 102.00; Block 122A Block, Block 120, Block 123A, and Block 115A. 9 Ordinance No. 2000-0 0032 EXHIBIT "C" QUALIFIED JOB CREATION SALES TAX REFUND IN DESIGNATED ENTERPRISE ZONES The City of Lubbock will make a one-time refund of a part of the local portion of Sales and Use Taxes collected, to qualified businesses, in designated enterprise zones. The refund will be made based on the new permanent jobs created on a full-time basis for the qualified business submitting an application. The maximum amount of the refund will be $250 per qualified employee and a maximum of $2,500 per qualified business. A portion of this refund may be paid by Lubbock County. At no time shall the refund amount exceed the amount of local sales tax paid by the qualified business. Definitions: A. Economically Disadvantaged —An individual who: (1) was unemployed for at least 3 months before obtaining employment with a qualified business; or (2) received public assistance benefits, such as welfare or food stamp payments, or a member of an employee's immediate family receiving Supplemental Security Income or Aid to Families with Dependent Children payments; or (3) has a physical or mental disability; or (4) is homeless; or (5) is a foster child; or (6) is on parole or entering the workplace after being confined in a unit or correctional facility of the institution division of the Texas Department of Criminal Justice or the Texas Youth Commission; or (7) is an individual whose total family income meets the low income or moderate income limits developed under Section 8, United States Housing Act of 1937. Includes all income by employee, spouse, all dependents, and family members living with employee as of the employment date. B. Local Portion of Sales and Use Tax — that portion of the Sales and Use Tax collected by the State of Texas Comptro►ler's Office for the City of Lubbock, and amounting to one cent per dollar of purchases of selected items designated in the State law. C. New Permanent Job — A new employment position created over and above the company's current baseline that provides a qualified employee of a qualified business with employment of at least 1,820 hours of work annually. it Qualified Job Creation — Sales Tax Refund in Designated Enterprise Zones 05/15/00 D. Qualified Employee — An employee that works at least 50% of his/her time for the qualified business in the enterprise zone. E. Qualified Business — is a person, including a corporation or other entity that the governing body certifies to have met the following criteria: 1. The person is engaged in or has provided substantial commitment to initiate the active conduct of a trade or business in the zone; and 2. At least 25% of the businesses new employees in the zone are residents of any zone within the governing body's or bodies' jurisdiction or economically disadvantaged individuals; and 3. A franchise or subsidiary of a new or existing business may be certified by the governing body of an enterprise zone as a qualified business if the franchise or subsidiary is located entirely in the zone and maintains separate books and records of the business activity conducted in the zone. Criteria: A. Any firm locating in a designated enterprise zone that meets the requirements for designation as a qualified business as specified above in the definitions section. B. The business must file an, application for refund based on employment with the Zone Administrator which includes: 1. Name and address of the business, 2. Name and contact address of the owner/manager making application, 3. Telephone and fax numbers, 4. Date the operation was started in a designated enterprise zone, 5. Total number of employees, 6. List of employees with addresses sorted by zipcode, 7. Time sheets showing hours worked by each employee during the previous year. 8. Documentation of local vendors used during the previous year with proof of purchase. 9. Amount of refund applying for. C. The business must show that twenty five (25) percent of its employees are residents of a designated enterprise zone or economically disadvantaged, and that each resident - employee worked a minimum of 1,820 hours during the previous year. 12 Qualified Job Creation — Sales Tax Refund in Designated Enterprise Zones 05/15/00 D. The business property must be properly zoned. Process: A. The business owner/manager obtains an application from City of Lubbock, Business Development Department: 1625 13'h Street, 2"d Floor, 775-2980 or 775-2019. B. The business owner/manager completes the application and returns it to the Business Liaison Officer (Zone Administrator), Business Development Department, with backup documentation that includes the following: ❑ List of employees with addresses sorted by zipcode ❑ Timesheets showing hours worked by each employee during the previous year. ❑ Documentation of local vendors used during the previous year with proof of purchase. ❑ Amount of refund that the business is applying for. C. Zone Administrator verifies that application is complete and all required documentation is present. D. Zone Administrator verifies that the applicant is a qualified business as specified in the definitions section. E. Zone Administrator verifies documentation (employment, zone employment, local vendors used) through audit and spot checks. F. Once all information is verged, Zone Administrator forwards a certification of the business' eligibility and the number of qualified jobs on which the refund is to be made to Market Lubbock, Inc for a recommendation. G. Market Lubbock forwards its recommendation to the City Manager. H. City Manager approves the designation and jobs and authorizes the Zone Administrator to draw a check for the amount to be refunded (out of the General fund). 13 Qualified Job Creation — Sales Tax Refund in Designated Enterprise Zones 05/15/00 The Zone Administrator then does a DPR and Invoice for the amount to be refunded and forwards to accounting. Once the check is received it is copied and the copy put in the file and then the check is forwarded to the business. 14 Ordinance No. 2000-00032 EXHIBIT "D" SALES TAX REFUND ON LOCAL PURCHASES FOR ENTERPRISE ZONE EMPLOYERS Sales tax refunds on purchases of eligible items from local (City of Lubbock) suppliers will be provided by the City of Lubbock to qualified businesses that have been designated as an enterprise project by the Texas Department of Economic Development, and may be applied for in Lubbock County. Refunds will be made by the City of Lubbock at the beginning of the next fiscal quarter after the completion of the company's first (18), second (2"d), and third (3`d) years in operation in a designated enterprise zone. A refund of one hundred (100) percent of local sales taxes paid on eligible purchases will be made by the City after the first year, of operation. A refund of fifty (50) percent of local sales taxes paid on eligible purchases will be made by the City during the first fiscal quarter after the second and third years of operation in a designated enterprise zone. Definitions: A. Department — Texas Department of Economic Development B. Economically Disadvantaged — An individual who: (1) was unemployed for at least 3 months before obtaining employment with a qualified business; or (2) received public assistance benefits, such as welfare or food stamp payments, or a member of an employee's immediate family receiving Supplemental Security Income or Aid to Families with Dependent Children payments; or (3) has a physical or mental disability; or (4) is homeless; or (5) is a foster child; or (6) is on parole or entering the workplace after being confined in a unit or correctional facility of the institution division of the Texas Department of Criminal Justice or the Texas Youth Commission; or (7) is an individual whose total family income meets the low income or moderate income limits developed under Section 8, United States Housing Act of 1937. Includes all income by employee, spouse, all dependents, and family members living with employee as of the employment date. C. Enterprise Project - is a business that is nominated by an enterprise zone governing body and approved by the Department for state and local benefits. The business must commit 15 Sales Tax Refund on Local Purchases For Enterprise Zone Employers 05/15/00 to create or retain permanent jobs, make capital investment in the enterprise zone, fill at least 25% of its new jobs with individuals who are either economically disadvantaged or residents of an enterprise zone within the governing body(ies) jurisdiction, and maintain a level of employment from the date jobs are certified by the Department for at least three years. Criteria: A. The business applying for refund must be located in a designated enterprise zone in the City of Lubbock. B. Any firm locating in a designated enterprise zone that has been designated an enterprise project as specified above in the definitions section. C. The property must be properly zoned. D. The business must file an application for refund of local sales taxes collected for the City of Lubbock by the Texas Comptroller's Office. The application must contain the following information: 1. Name and address of the business, 2. Name and contact address of the owner/manager making application, 3. Telephone and fax numbers, 4. The date of the start of the operation in a designated enterprise zone, 5. The date the business was designated an enterprise project by the Texas Department of Economic Development, 6. Employment information, including: ❑ Total number of employees, ❑ Number of employees that are zone residents, ❑ Documentation such as names, address, and zipcodes, and Q Employee time sheets 7. List of vendors from whom eligible purchases were made. 8. Documentation of amount of local sales tax paid, such as paid invoices or other proof of payment from vendors. 16 $ales Tax Refund on Local Purchases For Enterprise Zone Employers 65/15/00 A. Supplies purchased from local vendors and used in an office operation, such as, but not limited to, paper, writing instruments, incidentals, computers, software and peripherals. B. Supplies purchased from local vendors and used in furnishing the business such as, but not limited to, desks, chairs, cabinets, display cases, and safes. C. Materials purchased from local vendors and used in constructing or renovating facilities such as base materials and finishes. Process: A. The business owner/manager obtains an application from City of Lubbock, Business Development Department: 1625 13th Street, 2nd Floor, 775-2980 or 775-2019. B. Enterprise Zone Administrator discusses with owner/manager of business the requirement that the business be an enterprise project and the procedure for obtaining that designation. This project designation must be complete before filing for this local sales tax rebate. C. The business owner/manager completes the application and returns it to the Business Liaison Officer (Zone Administrator), Business Development Department, with backup documentation that includes the following: ❑ List of employees with addresses sorted by zipcode ❑ Timesheets showing hours worked by each employee during the previous year. ❑ List of vendors from whom eligible purchases were made with proof of purchase. ❑ Documentation of amount of local sales tax paid. ❑ Copy of Enterprise Zone Project Designation from the Texas Department of Economic Development. D. Zone Administrator verifies that application is complete and all required documentation is present. E. Zone Administrator verifies that the applicant is an enterprise zone project as specified in the definitions section. 17 Sales Tax Refund on Local Purchases f=or Enterprise Zone Employers 05/15/00 F. Zone Administrator verifies documentation (employment, zone employment, local vendors used, and amount of local sales tax paid) through audit and spot checks. G. Once all information is verified, Zone Administrator forwards a certification of the business' eligibility and the amount of the refund that is to be made to Market Lubbock, Inc. for recommendation. H. Once Market Lubbock, Inc. has made its recommendation, it is forwarded to the City Manager. I. City Manager approves the designation and amount of refund and authorizes the Zone Administrator to draw a check for the amount to be refunded (out of the Community Development fund). J. The Zone Administrator then does a DPR and Invoice for the amount to be refunded and forwards to accounting. Once the check is received it is copied and the copy put in the file and then the check is forwarded to the business. 18 Ordinance No. 2000-00032 EXHIBIT "E" GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT FOR COMMERCIAL PROJECTS IN DESIGNATED ENTERPRISE ZONES IN THE CITY OF LUBBOCK SECTION 1. General Purpose: The City of Lubbock is committed to the promotion of high quality commercial development in designated Enterprise Zones within the City; and to an ongoing improvement in the quality of life for citizens residing in designated Enterprise Zones. The Affected Jurisdictions recognize that these objectives are generally served by enhancement and expansion of the local economy. The Affected Jurisdictions will, on a case -by -case basis, give consideration to providing tax abatement, as authorized by V.T.C.A., Tax Code, Chapter 312, as stimulation for economic development within the designated Enterprise Zones in the City of Lubbock. It is the policy of the Affected Jurisdictions that said consideration will be provided in accordance with the guidelines and criteria herein set forth and in conformity with the Tax Code. Nothing contained herein shall imply, suggest or be understood to mean that the Affected Jurisdictions are under any obligation to provide tax abatement to any speck applicant (V.T.C.A. Tax Code, Section 312.002(d)). With the above rights reserved, all applicants for tax abatement will be considered on a case -by -case basis. SECTION II. Definitions: As used within these guidelines and criteria, the following words or phrases shall have the following meaning: 1. Abatement of Taxes: To exempt from ad valorem taxation all or part of the value of certain Improvements placed on land located in a designated Enterprise Zone for commercial development purposes for a period of time not to exceed five (5) years. 2. Affected Jurisdiction: The City of Lubbock, the County of Lubbock, and the Lubbock Independent School District. 3. Abatement Agreement: A contract between a property owner and the Affected Jurisdictions for the abatement of taxes on qualified property located within a designated Enterprise Zone as authorized by V.T.C.A., Tax Code, Section 312.204(a). 4. Base Year Value: The assessed value of property eligible for tax abatement as of January 1 preceding the execution of an Abatement Agreement as herein defined. 5. Expansion of Existing Facilities or Structures: The addition of buildings, structures, machinery or equipment to a Facility after the date of execution of an Abatement Agreement. 6. Existing Facility or Structure: A Facility as of the date of execution of the Tax Abatement Agreement, located in or on Real Property eligible for tax abatement. 19 i Guidelines and Criteria Governing Tax Abatement for commercial Projects in Designated Enterprise Zones ; eptember, 1999 7. Facility: The improvements made to Real Property eligible for tax abatement and including the building or structure erected on such Real Property and/or any Tangible Personal Property to be located in or on such property. 8. Improvements to Real Property or Improvements: Shall mean the construction, addition to, structuralupgrading of, replacement of, or completion of any facility located upon, or to be located upon, Real Property, as herein defined, or any Tangible Personal Property placed in or on said Real Property. 9. Modernization/Renovation of Existing facilities: The replacement or upgrading of existing facilities. 10. New Facility: The construction of a Facility, that has not previously existed within the affected jurisdiction and will be a totally new business operation, on previously undeveloped real property eligible for tax abatement. 11. New Permanent Job: A new employment position created by a business that has provided employment to an employee of at least 1,820 hours annually and intended to be an employment position that exists during the life of the abatement. 12. Owner: The record title owner of Real Property or the legal owner of Tangible Personal Property. In the case of land leased from an Affected Jurisdiction, the lessee shall be deemed the owner of such leased property together with all improvements and Tangible Personal Property located thereon. 13. Productive Life: The number of years a Facility is expected to be in service. 14. Real Property: Land on which Improvements are to be made or fixtures placed. 15. Tangible Personal Property: Any Personal Property, not otherwise defined herein, and which is necessary for the proper operation of any type of Facility. SECTION Ill. Intent of Criteria and Guidelines: The intent of the criteria and guidelines, as herein set forth, is to establish the minimum standards which an applicant for tax abatement must meet in order to be considered for such status by the Affected Jurisdictions. SECTION IV. Criteria and Guidelines for Tax Abatement: Any type of Facility will be eligible for tax abatement consideration provided such Facility meets the following guidelines and criteria: 1. A business must clearly add to the Lubbock economic base. Compliance with this criterion must show that additional jobs are being provided and the jobs being proposed will not simply displace other similar jobs in the community. 20 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones $eptember, 1999 2. Creation of new value: Abatement may only be granted for the additional value resulting from any of the following: (a) modem izationlrenovation of existing facilities of any type as herein defined; (b) construction of a new facility of any type as herein defined; (c) expansion of existing facilities of any type as herein defined. 3. New or existing facilities, of any type herein defined, located in a reinvestment zone or upon Real Property eligible for such status will be eligible for consideration for tax abatement status provided all other criteria or guidelines are satisfied. 4. Improvements to Real Property are eligible for tax abatement status. 5. The following types of property shall be ineligible for tax abatement status and shall be fully taxed: (a) Real Property; (b) inventories or supplies; (c) tools; (d) furnishings and other forms of movable personal property; (e) vehicles; (f) aircraft; (g) housing; (h) boats; (i) property owned by the State of Texas or any state agency; and, Q) property owned or leased by a member of the affected Jurisdiction. 6. In order for a Facility to qualify for abatement, the following conditions must apply: (a) The Real Property and eligible improvements and Tangible Personal Property must be owned by the same person, corporation, partnership or other business entity; or, (b) In the case of Real Property leased from Affected Jurisdiction all improvements placed thereon together with all Tangible Personal Property used in conjunction with said improvements must be owned by the same person, corporation, 21 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones September, 1999 partnership or other business entity, and said owner must have a lease commitment of at least 15 years. (c) Property must be properly zoned for the use stated by the owner in the application. 7. The amount and term of abatement shall be -determined on a case -by -case basis, however, in no event shall taxes be abated for a term in excess of five (5) years. The amount of the taxable value of Improvements to be abated and the term of the abatement shall be determined by the Affected Jurisdiction in all cases. The authority of all other taxing units 'shall be as set forth in V.T.C.A., Tax Code, Section 312.206. 8. No commercial property shall be eligible for tax abatement under these guidelines and criteria unless such property is located in a designated Enterprise Zone in accordance with V.T.C.A., Tax Code, Section 312.202. 9. The minimum economic qualification for tax abatement shall be as follows: (a) $250,000 investment or 10 new permanent jobs (b) At least 30% of the business' new employees in the zone are residents of any zone within the governing body's or bodies' jurisdiction. 10. Notwithstanding any of the requirements set forth in Subsection 9 above, the governing body of an Affected Jurisdiction upon the affirmative vote of three -fourths (3/4) of its members may vary any of the above requirements when variation is demonstrated by the applicant for Tax Abatement that variation is in the best interest of the Affected Jurisdiction to do so, and will enhance the economic development of the Affected Jurisdiction.' By way of example only, and not by limitation, the governing body of an Affected Jurisdiction may consider the following or similar terms in determining whether a variance shall be granted: (a) That the increase in productivity of the Facility will be substantial and hence directly benefit the economy. (b) That the increase of goods or services produced by the Facility will be substantial, and directly benefit the economy. (c) That the employment maintained at the Facility will be increased. (d) That the waiver of the requirement will contribute, and provide for the retention of existing jobs within the Affected Jurisdiction. (e) That the applicant for tax abatement has demonstrated that if tax abatement is granted to his Facility, even though his Facility will not employ additional personnel that, nevertheless, due to the existence of said Facility, new jobs will be created as a direct result of his Facility in other facilities located within the Affected Jurisdiction. 22 i Guidelines and Criteria Governing Tax Abatement for commercial Projects in Designated Enterprise Zones �eptember, 1999 (f) Any other evidence tending to show a direct economic benefit to the Affected Jurisdiction. 11. Taxability: (a) The portion of the value of Improvements to be abated shall be abated in accordance with the terms and provisions of a Tax Abatement Agreement executed betweenthe Affected Jurisdiction and the owner of the Real Property and/or Tangible Personal Property, (which agreement shall be) in accord with the provisions of V.T.C.A., Tax Code, Section 312.205. (b) All ineligible property, if otherwise taxable as herein described, shall be fully taxed. 12. The governing body of each Affected Jurisdiction shall have total discretion as to whether tax abatement is to be granted. Such discretion, as herein retained, shall be exercised on a case -by -case basis. The adoption of these guidelines and criteria by the governing body of an Affected Jurisdiction does not: (a) Limit the discretion of the governing body to decide whether to enter into a specific tax abatement agreement; (b) Limit the discretion of the governing body to delegate to its employees the authority to determine whether or not the governing body should consider a particular application or request for tax abatement; or, (c) Create any property, contract, or other legal right in any person to have the governing body consider or grant a specific application or request for tax abatement. 13. The burden to demonstrate that an application for tax abatement should be granted shall be upon the applicant. Each Affected Jurisdiction to which the application has been directed shall have full authority to request any additional information from the applicant that the governing body of such Affected Jurisdiction deems necessary to assist it in considering such application. SECTION V. Tax Abatement Agreement: 1. The Tax Abatement Agreement may be executed between the owner and the municipality. A Tax Abatement Agreement shall: (a) Establish and set forth the Base Year assessed value of the property for which tax abatement is sought. (b) Provide that the taxes paid on the Base Year assessed value shall not be abated as a result of the execution of said Tax Abatement Agreement. 23 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones September, 1999 (c) Provide that ineligible property as subscribed in Section IV, Subsection 5, hereinabove shall be fully taxed. (d) Provide for the exemption of Improvements in each year covered by the agreement, only to the extent the value of such Improvements for each such year exceeds the value for the year in which the agreement is executed. (e) Fully describe and list the kind, number and location of all of the improvements to be made in or on the Real Property. (f) Set forth the estimated value of all improvements to be made in or on the Real Property. (g) Clearly provide that tax abatement shall be granted only to the extent: (1) The improvements to Real Property increase the value of the Real Property for the year in which the Tax Abatement Agreement is executed; and, (2) That the Tangible Personal Property improvements to Real Property were not located on the Real Property prior to the execution of the Tax Abatement Agreement. (h) Provide for the portion of the value of the improvements to Real Property or improvements to be abated. This determination is to be made consistent with the provisions of Section IV, Subsection 5, of these guidelines and criteria as hereinabove set forth. (i) Provide for the commencement date and the termination date. In no event shall said dates exceed a period of five (5) years. (j) Describe the type and proposed use of the improvements to Real Property or improvements including: (1) The type of facility. (2) Whether the improvements are for a new facility or renovation of a facility. (3) The nature of the construction, proposed time table of completion, a map or drawings of the improvements above mentioned. (4) The amount of investment and the commitment for the creation of new jobs. (5) A list containing the kind, number and location of all proposed improvements. (6) Any other information required by the Affected Jurisdiction. (k) Provide a legal description of the Real Property upon which improvements are to be made. 24 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones September, 1999 (1) Provide access to and authorize inspection of the Real Property or improvements by employees of the Affected Jurisdiction, who have executed a Tax Abatement Agreement with owner to insure improvements are made according to the specifications and conditions of the Tax Abatement Agreement. (m) Provide for the consistent with development of Agreement. limitation of the uses of the Real Property or improvements the general purpose of encouraging development or re - the zone during the period covered by the Tax Abatement (n) Provide for contractual obligations in the event of default by owner, violation of the terms or conditions by owner, recapturing property tax revenue in the event the owner defaults or otherwise fails to make improvements as provided in said Tax Abatement Agreement, and any other provision as may be required or authorized by State law. (o) Contain each term agreed to by the owner of the property; (p) Require the owner of the property to certify annually to the governing body of each taxing unit that the owner is in compliance with each applicable term of the agreement; and (q) Provide that the governing body of the municipality may cancel or modify the agreement if the property owner fails to comply with the agreement. 2. Not later than the seventh day before the City of Lubbock (as required by V.T.C.A., Tax Code, Section 312.2041 or Section 312.402) enters into an agreement for tax abatement under V.T.C.A., Tax Code, Section 312.204, the governing body or a designated officer or employee thereof shall deliver to the presiding officer of the governing body of each of the taxing units in which the property to be subject to the agreement is located, a written notice that the City intends to enter into the agreement. The notice must include a copy of the proposed Tax Abatement Agreement. 3. A notice, as above described in Subparagraph 2, is presumed delivered when placed in the mail, postage paid and properly addressed to the appropriate presiding officer. A notice properly addressed and sent by registered or certified mail for which a return receipt is received by the sender is considered to have been delivered to the addressee. 4. Failure to deliver the notice does not affect the validity of the agreement. 25 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones September, 1999 SECTION VI. Application: 1. Any present owner of taxable commercial property located within the designated Enterprise Zone of the, City of Lubbock may apply for tax abatement by filing an application with the City of Lubbock. 2. The application shall consist of a completed application form accompanied by: (a) A general description of the improvements to be undertaken. (b) A descriptive list of the improvements for which tax abatement is requested. (c) A list of the kind, number and location of all proposed improvements of the Real Property Facility of Existing Facility. (d) A map indicating the approximate location of improvements on the Real Property Facility or Existing Facility together with the location of any or all Existing Facilities located on the Real Property or Facility. (e) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing facility. (f) A legal description of property. (g) Address of property. (h) A proposed time schedule for undertaking and completing the proposed improvements. (i) A general description stating whether the proposed improvements are in connection with: (1) the renovation of a facility; or, (2) construction of,a new facility. (j) A statement of the additional value to the Real Property or Facility as a result of the proposed improvements. (k) A statement of the assessed value of the Real Property, Facility or Existing Facility for the Base Year. (1) Information concerning the number of new jobs that will be created or information concerning the number of existing jobs to be retained as result of the improvements undertaken. 26 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones September, 1999 (m) Any other information which the City of Lubbock deems appropriate for evaluating the financial capacity of the applicant and compatibility of the proposed improvements with these guidelines and criteria. (n) Information that is provided to an Affected Jurisdiction in connection with an application or request for tax abatement, and which describes the specific processes or business activity to be conducted or the equipment or other property to be located on the property for which tax abatement is sought is confidential and not subject to public disclosure until the Tax Abatement Agreement is executed. Information in the custody of an Affected Jurisdiction after the agreement is executed is not confidential. (V.T.C.A., Tax Code, Section 312.003). (o) The City of Lubbock shall determine if the property described in said application is within a designated Enterprise Zone. If the City determines that the property described is not within a current Enterprise Zone, then they shall so notify the applicant and said application shall then be returned to the applicant. SECTION VII.Recapture: 1. In the event that any type of facility, (as defined in Section II, Subparagraphs 5, 6, 7, 8, 9) is completed and begins producing goods or services, but subsequently discontinues producing goods or services for any reason, excepting fire, explosion or other casualty or accident or natural disaster or other event beyond the reasonable control of applicant or owner for a period of 180 days during the term of a tax abatement agreement, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31 st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The burden shall be upon the applicant or owner to prove to the satisfaction of the Affected Jurisdiction to whom the application for tax abatement was directed that the discontinuance of producing goods or services was as a result of fire, explosion, or other casualty or accident or natural disaster or other even beyond the control of applicant or owner. In the event the applicant or owner meets this burden, and the Affected Jurisdiction is satisfied that the discontinuance of the production of goods or services was the result of events beyond the control of the applicant or owner, then such applicant or owner shall have a period of = year in which to resume the production of goods and services. In the event that the applicant or owner fails to resume the production of goods or services within one year, then the Tax Abatement Agreement shall ter- minate and the Abatement of all taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The one year time period, hereinabove mentioned, shall commence upon written notification from the Affected Jurisdiction to the applicant or owner. 27 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones September, 1999 2. In the event that the applicant or owner has entered into a tax abatement agreement to make improvements to a facility of any type described in Section 1 above, but fails to undertake or complete such improvements, then in such event the Affected Jurisdiction to whom the application for tax abatement was directed shall give the applicant or owner sixty (60) days notice of such failure. The applicant or owner shall demonstrate to the satisfaction of the Affected Jurisdiction, above mentioned, that the applicant or owner has commenced to cure such failure within the sixty (60) days above mentioned. In the event that the applicant or owner fails to demonstrate that he is taking affirmative action to cure his failure, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 3. In the event that the Affected Jurisdiction to whom application for tax abatement was directed determines that the applicant or owner is in default of any of the terms or conditions contained in the Tax Abatement Agreement, then in such event the Affected Jurisdiction shall give the applicant or owner sixty (60) days written notice to cure such default. In the event such default is not cured to the satisfaction of the Affected Jurisdiction within the sixty (60) days notice period, then the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 4. In the event that the applicant or owner allows ad valorem taxes on property ineligible for tax abatement owed to any Affected Jurisdiction, to become delinquent and fails to timely and properly follow the legal procedures for their protest or contest, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination, under this subparagraph, takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 5. In the event that the applicant or owner, who has executed a tax abatement agreement with any Affected Jurisdiction, relocates the business, for which tax abatement has been granted, to a location outside of the designated reinvestment zone, then in such event, the Tax Abatement Agreement shall terminate after sixty (60) days written notice by the Affected Jurisdiction to the Owner/Applicant. Taxes abated during the calendar year in which termination, under this subparagraph takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 28 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones September, 1999 6. The date of termination as that term is used in this Subsection VIII shall, in every instance, be the 60th day after the day the Affected Jurisdiction sends notice of default, in the mail to the address shown in the Tax Abatement Agreement to the Applicant or Owner. Should the default be cured by the Owner or Applicant within the sixty (60) day notice period, the Owner/Applicant shall be responsible for so advising the Affected Jurisdiction and obtaining a release from the notice of default from the Affected Jurisdiction, failing in which, the abatement remains terminated and the abated taxes must be paid. 7. In every case of termination set forth in Subparagraphs 1, 2, 3, 4 and 5 above, the Affected Jurisdiction to which the application for tax abatement was directed shall determine whether default has occurred by Owner (Applicant) in the terms and conditions of the Tax Abatement Agreement and shall so notify all other Affected Jurisdictions. Termination of the Tax Abatement Agreement by the Affected Jurisdiction to which the application for tax abatement was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all other Affected Jurisdictions. 8. In the event that a tax abatement agreement is terminated for any reason whatsoever, and taxes are not paid within the time period herein specified, then in such event, the provisions of V.T.C.A., Tax Code, Section 33.01 will apply. SECTION VIII. Miscellaneous: 1. Any notice required to be given by these criteria or guidelines shall be given in the following manner: (a) To the Owner or Applicant: written notice shall be sent to the address appearing on the Tax Abatement Agreement. (b) To an Affected Jurisdiction: written notice shall be sent to the address appearing on the Tax Abatement Agreement. 2. The Chief Appraiser of the Lubbock Central Appraisal District shall annually assess the Real and Personal Property comprising the reinvestment zone. Each year, the Applicant or Owner receiving tax abatement shall furnish the Chief Appraiser with such information as may be necessary for the abatement. Once value has been established, the Chief Appraiser shall notify the Affected Jurisdictions which levy taxes of the amount of assessment. 3. Upon the completion of improvements made to Facility as set forth in Section VII, Subparagraph 1 of these criteria and guidelines, a designated employee or employees of any Affected Jurisdiction having executed a tax abatement agreement with Applicant or Owner shall have access to the Facility to ensure compliance with the Tax Abatement Agreement. 29 Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones September, 1999 4. A Tax Abatement Agreement may be assigned to a new owner, but only after written consent has been obtained from all Affected Jurisdictions which have executed such an agreement with the Applicant or Owner. 5. These guidelines and criteria are effective upon the date of their adoption by an Affected Jurisdiction and shall remain in force for two years. At the end of the two- year period, these guidelines and criteria may be re -adopted, modified, amended or re -written as the conditions may warrant. 6. Each Affected Jurisdiction shall determine whether or not said Affected Jurisdiction elects to become eligible to participate in tax abatement. In the event the Affected Jurisdiction elects by resolution to become eligible to participate in tax abatement, then such Affected Jurisdiction shall adopt these guidelines and criteria by separate resolution forwarding a copy of both resolutions to all other Affected Jurisdictions. 7. In the event of a conflict between these guidelines and criteria and V.T.C.A., Tax Code, Chapter 312, then in such event, the Tax Code shall prevail, and these guidelines and criteria interpreted accordingly. 8. The guidelines and criteria, once adopted by an Affected Jurisdiction, may be amended or repealed by a vote of three -fourths of the members of the governing body of an Affected Jurisdiction during the two-year term in which these guidelines and criteria are effective. 9. The Property Re -development and Tax Abatement Act is subject to review as provided by the Texas Sunset Act (Section 325.0082 Government Code). If not continued in effect, this statute expires September 1, 2001. 041 Ordinance No. 2000-0 0032 EXHIBIT "F" GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT FOR SELECTED TAXING UNITS CONTAINED WITHIN LUBBOCK COUNTY SECTION 1. General Purpose: The Affected Jurisdictions located wholly within or partially within the County of Lubbock, Texas, are committed to the promotion of high quality development in all parts of Lubbock County, Texas; and to an ongoing improvement in the quality of life for the citizens residing within the Affected Jurisdictions. The Affected Jurisdictions recognize that these objectives are generally served by enhancement and expansion of the local economy. The Affected Jurisdictions will, on a case by case basis, give consideration to providing tax abatement, as authorized by V.T.C.A., Tax Code, Chapter 312, as stimulation for economic development within the Affected Jurisdictions. It is the policy of the Affected Jurisdictions that said consideration will be provided in accordance with the guidelines and criteria herein set forth and in conformity with the Tax Code. Nothing contained herein shall imply, suggest or be understood to mean THAT the Affected Jurisdictions are under any obligation to provide tax abatement to any applicant and attention is called to V.T.C.A., Tax Code, Section 312.002(d). With the above rights reserved all applications for tax abatement will be considered on a case by case basis. SECTION II. Definitions: As used within these guidelines and criteria, the following words or phrases shall have the following meaning: 1. Abatement of Taxes: To exempt from ad valorem taxation all or part of the value of certain Improvements placed on land located in a reinvestment zone designated for economic development purposes as of the date of execution of the Tax Abatement Agreement for a period of time not to exceed ten (10) years. 2. Affected Jurisdiction: The County of Lubbock, City of Lubbock, and Lubbock Independent School District or any other governmental taxing unit located totally within or partially within the County of Lubbock that has adopted these guidelines and criteria. 3. Abatement Agreement: (1) A contract between a property owner and an Affected Jurisdiction for the abatement of taxes on qualified property located within the reinvestment zone; or, (2) a contract for the abatement of taxes between an Affected Jurisdiction and a certified air carrier who owns or leases Real Property located within the reinvestment zone or Personal Property or both as authorized by V.T.C.A., Tax Code, Section 312.204(e) 4. Base Year Value: The assessed value of property eligible for tax abatement as of January 1 preceding the lexecution of an Abatement Agreement as herein defined. 5. Distribution Center Facility: A building or structure including Tangible Personal Property used or to be used primarily to receive, store, service or distribute goods or materials. 31 Industrial Tax Abatement Guidelines September 1, 1999 6. Expansion of Existing Facilities or Structures: The addition of buildings, structures, machinery or equipment to a Facility after the date of execution of an Abatement Agreement. 7. Existing Facility or Structure: A facility as of the date of execution of the Tax Abatement Agreement, located in or on Real Property eligible for tax abatement. 8. Facility: The improvements made to Real Property eligible for tax abatement and including the building or structure erected on such Real Property and/or any Tangible Personal Property to be located in or on such property. 9. Improvements to Real Property or Improvements: Shall mean the construction, addition to, structural upgrading of, replacement of, or completion of any facility located upon, or to be located upon, Real Property, as herein defined, or any Tangible Personal Property placed in or on said Real Property. 10. Manufacturing Facility: A Facility which is or will be used for the primary purpose of the production of goods or materials or the processing or change of goods or materials to a finished product. 11. Modernization/Renovation of Existing Facilities: The replacement or upgrading of existing facilities. 12. New Facility: The construction of a Facility on previously undeveloped real property eligible for tax abatement. 13. New Permanent Job: A new employment position created by a business that has provided employment to an employee of at least 1,820 hours annually and intended to be an employment position that exists during the life of the abatement. 14. Other Basic Industry: A Facility other than a distribution center facility, a research facility, a regional service facility or a manufacturing facility which produces goods or services or which creates new or expanded job opportunities and services a market of which 50% of revenues come from outside of Lubbock County, Texas. 15. Owner: The record title owner of Real Property or the legal owner of Tangible Personal Property. In the case of land leased from an Affected Jurisdiction the lessee shall be deemed the owner of such leased property together with all improvements and Tangible Personal Property located thereon. 16. Productive Life: The number of years a Facility is expected to be in service. 17. Real Property: Land on which Improvements are to be made or fixtures placed. 18. Regional Services Facility: A Facility, the primary purpose of which is to service or repair goods or materials and which creates job opportunities within the Affected Jurisdictions. 19. Reinvestment Zone: Real Property designated as a Reinvestment Zone under the provisions of V.T.C.A., Tax Code, Section 312.202. 32 industrial Tax Abatement Guidelines September 1, 1999 20. Research Facility: A Facility used or to be used primarily for research or experimentation to improve or develop new goods and/or services or to improve or develop the production process for such goods and/or services. 21. Tangible Personal Property: Any Personal Property, not otherwise defined herein and which is necessary for the proper operation of any type of Facility. SECTION Ill. Intent of Criteria and Guidelines: The Intent of the criteria and guidelines, as herein set forth, is to establish the minimum standards which an applicant for tax abatement must meet in order to be considered for such status by the Affected Jurisdictions. SECTION IV. Criteria and Guidelines for Tax Abatement: Any type of Facility will be eligible for tax abatement consideration provided such Facility meets the following guidelines and criteria: 1. To qualify for Tax Abatement, the company must meet both of the following criteria: a) The modernization or expansion of an existing facility of any type as herein defined or construction of a new facility of any.type as herein defined. b) Producer, manufacturer or distributor of goods and services of which 50 percent or more are distributed outside of Lubbock County. 2. In addition to the aforementioned, the taxing jurisdiction will consider abatement only if the company meets one of the following criteria: a) One of the following target industries: i) Electronics/Electrical/Assembly: Manufacturing: Semiconductor Fabrication. ii) Value-added Agricultural Production including Food Processing and Machinery iii) Med Tech Research/Manufacturing/Assembly iv) Aviation/Avionics Production/Rehab v) Warehouse/Distribution vi) Corporate Headquarters of a Regional/National Service Center b) The project is not included as a target industry, but has the potential of generating additional significanteconomic development opportunities to Lubbock 3. The company must meet one of the following criteria: 33 Industrial Tax Abatement Guidelines September 1, 1999 a) The project will add at least $1 million in real estate assessed valuation, or $2 million of personal property assessed valuation, or 25 new permanent jobs if the facility is a new company to Lubbock. b) The project will add at least $500,000 in real estate assessed valuation, or $1 million in personal property assessed valuation, or 20 new permanent jobs if the facility is a modernization or expansion of an existing company that has operated in Lubbock for five or more years. 4. New or existing facilities,of any type herein defined, located in a reinvestment zone or upon Real Property eligible for such status will be eligible for consideration for tax abatement status provided that all other criteria and guidelines are satisfied 5. Improvements to Real Property are eligible for tax abatement status. 6. The following types of Property shall be ineligible for tax abatement status and shall be fully taxed. a) Real Property; b) inventories or supplies; c) tools; d) furnishings and other forms of movable personal property; e) vehicles; f) aircraft; g) housing; h) boats; 1) hotel accommodations; j) motel accommodations; k) retail businesses; 1) property owned by the State of Texas or any State agency; and, m) property owned or leased by a member of the affected Jurisdiction. 7. In order for a Facility to qualify for abatement, one of the following conditions must apply: a) The real Property and eligible improvements and Tangible Personal Property must be owned by the same person, corporation, partnership or other business entity; ;or, 34 Industrial Tax Abatement Guidelines September 1, 1999 b) In the case of Real Property lease from Affected Jurisdiction all improvements placed thereon together with all Tangible Personal Property used in conjunction with said improvements must be owned by the same person, corporation, partnership or other business entity and said owner must have a leased commitment of at least 15 years. 8. In reinvestment zones, the amount and term of abatement shall be determined on a case by case basis, however, in no event shall taxes be abated for a term in excess of ten (10) years. The amount of the taxable value of Improvements to be abated and the term of the abatement shall be determined by the municipality in all cases where the property for which tax abatement is applied for is within the City limits of the City or by the County of Lubbock in all cases where the property for which tax abatement is applied for is outside of the City limits of a municipality, but within the County of Lubbock, except that a reinvestment zone that is a state enterprise zone is designated for the same period as a state enterprise zone as provided by Chapter 2303, Government Code. The authority of all other taxing units shall be as set forth in V.T.C.A., Tax Code, Section 312.206. In enterprise zones, the governing body of each taxing jurisdiction may execute a written agreement with the owner of the property not later than the 90th day after the date the municipal of county agreement, whichever is later. The agreement may, but is not required to, contain terms that are identical to those contained in the agreement with the municipality, county, or both, whichever applies, and the only terms for the agreement that may vary are the portion of the property that is to be exempt from taxation under the agreement and the duration of the agreement. 9. No property shall be eligible for tax abatement unless such property is located in a reinvestment zone in accordance with V.T.C.A., Tax Code, Section 312.202. 10. Notwithstanding any of the requirements set forth in Section IV Subsection 3, the governing body of an Affected Jurisdiction upon the affirmative vote of a three -fourths (314) of its members may vary any of the above requirements when variation is demonstrated by the applicant for Tax Abatement that variation is in the best interest of the Affected Jurisdiction to do so and will enhance the economic development of the Affected Jurisdiction. By way of example only and not by limitation the governing body of an Affected Jurisdiction may consider the following or similar terms in determining whether a variance shall be granted: a) That the increase in productivity of the Facility will be substantial and hence directly benefit the economy. b) That the increase of goods or services produced by the Facility will be substantial and directly benefit the economy. c) That the employment maintained at the Facility will be increased. d) That the waiver of the requirement will contribute and provide for the retention of existing jobs within the Affected Jurisdiction. e) That the applicant for tax abatement has demonstrated that if tax abatement is granted to his Facility even though his Facility will not employ additional personnel THAT nevertheless due to the existence of said Facility new jobs will be created 35 Industrial Tax Abatement Guidelines September 1, 1999 as a direct result of his Facility in other facilities located within the Affected Jurisdiction. f) Any other evidence tending to show a direct economic benefit to the Affected Jurisdiction. 11. Taxability: a) The portion of the', value of Improvements to be abated shall be abated in accordance with th'a terms and provisions of a Tax Abatement Agreement executed between the Affected Jurisdiction and the owner of the Real Property and/or Tangible Personal Property, (which agreement shall be) in accord with the provisions of V.T.C.A., Tax Code, Section 312.205. b) All ineligible property, if otherwise taxable as herein described, shall be fully taxed. 12. The governing body of each Affected Jurisdiction shall have total discretion as to whether tax abatement is to be granted. Such discretion, as herein retained, shall be exercised on a case by case basis. The adoption of these guidelines and criteria by the governing body of an Affected Jurisdiction does not: a) Limit the discretion of the governing body to decide whether to enter into a specific tax abatement agreement; b) Limit the discretion of the governing body to delegate to its employees the authority to determine whether or not the governing body should consider a particular application or request for tax abatement; or, c) Create any property, contract, or other legal right in any person to have the governing body consider or grant a specific application or request for tax abatement. 13. The burden to demonstrate that an application for tax abatement should be granted shall be upon the applicant. Each Affected Jurisdiction to which the application has been directed shall have full authority to request any additional information from the applicant that the governing body of such Affected Jurisdiction deems necessary to assist it in considering such application. SECTION V. Criteria and Guidelines for Creation of Reinvestment Zone: 1. No Property shall be eligible for tax abatement unless such property is located in a reinvestment zone designated as such in accordance with V.T.C.A., Tax Code, Section 312.202. To be designated as a reinvestment zone an area must meet one of the following: a) Substantially arrest ;or impair the sound growth of the municipality or county creating the zone, retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals, or welfare in 'its present condition and use because of the presence of: 36 Industrial Tax Abatement Guidelines September 1, 1999 1. a substantial 'number of substandard, slum, deteriorated, or deteriorating structures; 2. the predominance of defective or inadequate sidewalks or streets; 3. faulty size, adequacy, accessibility or usefulness of lots; 4. unsanitary or unsafe conditions; 5. the deterioration of site or other improvements; 6. tax or special assessment delinquency exceeding the fair value of the land; 7. defective or unusual conditions of title; 8. conditions that endanger life or property by fire or other cause; or, 9. any combination of these factors; a) Be predominantly open and, because of obsolete platting, deterioration of structures or site improvements, or other factors, substantially impair or arrest the sound growth of the municipality; b) Be in a federally assisted new community located in a home rule municipality or in an area immediately adjacent to a federally assisted new community located in a home rule municipality; c) Be located entirely in an area that meets the requirements for federal assistance under Section 119 of the Housing and Community Development Act of 1974 (42 U.S.C. Section 5318); d) Encompass signs, billboards, or other outdoor advertising structures designated by the governing body of the municipality for relocation, reconstruction, or removal for the purpose of enhancing the physical environment of the municipality, which the legislature declares to be a public purpose; or, e) Be reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the municipality. 2. For purposes of this Section, federally assisted new community is a federally assisted area: a) That has received or will receive assistance in the form of loan guarantees under Title X of the National Housing Act (12 U.S.C., Section 1749aa et seq); and, b) A portion of which has received grants under Section 107 (a)(1) of the Housing and Community Development Act of 1974, as amended. 37 Industrial Tax Abatement Guidelines September 1, 1999 3. The governing body of a municipality, as required by Section 312.201, or a county, as required by V.T.C.A., Tax Code, Section 312.401, shall hold a public hearing on the designation of an area within its jurisdiction as a reinvestment zone. The burden shall be on the owner of the property sought to be included in the zone or applicant for the creation of the reinvestment zone to establish the following: a) That the requirements of Subsection 1 of this Section have been met. b) That the improvements sought are feasible and practical. 4. No later than the seventh day before the date set for the above public hearing notice of such hearing shall be: a) Published in a newspaper having general circulation in the Affected Jurisdiction. b) Delivered in writing to the presiding officer of the governing body of each taxing unit that includes in its boundaries Real Property that is to be included in the reinvestment zone. 5. At the public hearing above described in Subsection 3 above, any interested person is entitled to speak and present evidence for or against the designation of such reinvestment zone. 6. At the conclusion of the hearing described in Subparagraph 3 above, the governing body shall enter its findings as follows: a) That the applicant or owner has or has not met his burden as hereinabove set forth, and/or, b) That the improvements sought are or are not feasible and practical. c) That the proposed improvements sought will or will not be a benefit to the land to be included in the reinvestment zone and to the Affected Jurisdiction after the expiration of an agreement entered into under V.T.C.A., Tax Code, Section 312.204. 7. An application for the creation of a reinvestment zone shall not be granted unless the Affected Jurisdiction considering such application enters affirmative findings to Subparagraphs a, b, and c of Subsection 6 above set forth. 8. At the conclusion of the public hearing herein required and upon the affirmative finding of the governing body as required by Subsection 7 above set forth, the governing body may designate a reinvestment zone in accordance with the provisions of V.T.C.A., Tax Code, Sections 312.201 or 312.401, whichever Section shall be applicable under the premises. 9. The designation of a reinvestment zone expires five years after the date of the designation and may be renewed for periods not to exceed five years, except that a reinvestment zone that is a state enterprise zone is designated for the same period as a state enterprise zone as provided by Chapter 2303, Government Code. The expiration of the designation does not affect an existing tax abatement agreement 38 Industrial Tax Abatement Guidelines September 1, 1999 made in accordance ',with V.T.C.A., Tax Code, Section 312.201 through Section 312.209. 10. Designation of an area as an enterprise zone under the Texas Enterprise Zone Act, Chapter 2303, Subchapter C, Texas Government Code, constitutes designation of the area as a reinvestment zone under Subchapter B of the Property Redevelopment and Tax Abatement Act without further hearing or other procedural requirements other than those provided by the Texas Enterprise Zone Act, Chapter 2303, Subchapter C, Texas Government Code. SECTION VI. Tax Abatement Agreement: 1. After the creation of a reinvestment zone as hereinabove authorized a Tax Abatement Agreement may be executed between the owner and any Affected Jurisdiction. A Tax Abatement Agreement shall: a) Establish and set forth the Base Year assessed value of the property for which tax abatement is sought. b) Provide that the taxes paid on the base year assessed value shall not be abated as a result of the execution of said Tax Abatement Agreement. c) Provide that ineligible property as subscribed in Section IV, Subsection 6, hereinabove shall be fully taxed. d) Provide for the exemption of Improvements in each year covered by the agreement only to the extent the value of such Improvements for each such year exceeds the value for the year in which the agreement is executed. e) Fully describe and list the kind, number and location of all of the improvements to be made in or on the Real Property. f) Set forth the estimated value of all improvements to be made in or on the Real Property. g) Clearly provide that tax abatement shall be granted only to the extent: 1. The Improvements to Real Property increase the value of the Real Property for the year in which the Tax Abatement Agreement is executed; and, 2. That the Tangible Personal Property improvements to Real Property were not located on the Deal Property prior to the execution of the Tax Abatement Agreement. h) Provide for the portion of the value of the improvements to Real Property of improvements to be abated. This determination is to be made consistent with the provisions of Section IV, Subsection 6, of these guidelines and criteria as hereinabove set forth. i) Provide for the commencement date and the termination date. In no event shall said dates exceed a period of ten years. 39 Industrial Tax Abatement Guidelines September 1, 1999 j) Describe the type and proposed use of the improvements to Real Property or improvements including: 1. The type of facility. 2. Whether the improvements are for a new facility, modernization of a facility, or expansion of a facility. 3. The nature of the construction, proposed time table of completion, a map or drawings of the improvements above mentioned. 4. The amount of investment and the commitment for the creation of new jobs. 5. A list containing the kind, number and location of all proposed Improvements. 6. Any other information required by the Affected Jurisdiction. k) Provide a legal description of the Real Property upon which improvements are to be made. 1) Provide access to and authorize inspection of the Real Property or improvements by employees of the Affected Jurisdiction, who have executed a Tax Abatement Agreement with owner to insure improvements are made according to the specifications and conditions of the Tax Abatement Agreement. m) Provide for the limitation of the uses of the Real Property or improvements consistent with the general purpose of encouraging development or redevelopment of the zone during the period covered by the Tax Abatement Agreement. n) Provide the contractual obligations in the event of default by owner, violation of the terns or conditions by owner, recapturing property tax revenue in the event owner defaults or otherwise fails to make improvements as provided in said Tax Abatement Agreement, and any other provision as may be required or authorized by State Law. o) Contain each term agreed to by the owner of the property. p) Require the owner of the property to certify annually to the governing body of each taxing unit that the owner is in compliance with each applicable term of the agreement. q) Provide that the governing body of the municipality may cancel or modify the agreement if the property owner fails to comply with the agreement. 2. Not later than the seventh day before a municipality or the County of Lubbock(as required by V.T.C.A., Tax Code, Section 312.2041 or Section 312.402) enters into an agreement for tax abatement under V.T.C.A., Tax Code, Section 312.204, the governing body of a municipality or a designated officer or employee thereof or the governing body of the county of Lubbock or a designated officer or employee thereof shall deliver to the presiding officer of the governing body of each of the taxing units in 40 Industrial Tax Abatement Guidelines September 1, 1999 which the property to be subject to the agreement is located, a written notice that the municipality or the County of Lubbock as the case may be, intends to enter into the agreement. The notice must include a copy of the proposed Tax Abatement Agreement. 3. A notice, as above described in Subparagraph 2, is presumed delivered when placed in the mail, postage paid and properly addressed to the appropriate presiding officer. A notice properly addressed and sent by registered or certified mail for which a return receipt is received by the sender is considered to have been delivered to the addressee. 4. Failure to deliver the notice does not affect the validity of the agreement. SECTION VI1. Application: 1. Any present owner of taxable property located within an Affected Jurisdiction may apply for tax abatement by filing an application with the county of Lubbock, when the Real Property or Tangible Personal Property for which abatement is sought is located within the County of Lubbock but outside of the City limits of any City or with the appropriate City when the Real Property or Tangible Personal Property for which abatement is sought is located within the City limits of a municipality located wholly or partially within Lubbock County. 2. The application shall consist of a completed application form accompanied by: a) A general description of the improvements to be undertaken. b) A descriptive list of the improvements for which tax abatement is requested. c) A list of the kind, number and location of all proposed improvements of the Real Property Facility or Existing Facility. d) A map indicating the approximate location of Improvements on the Real Property Facility or Existing Facility together with the location of any or all Existing Facilities located on the Real Property or Facility. e) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing facility. f) A proposed time schedule for undertaking and completing the proposed improvements. g) A general description stating whether the proposed improvements are in connection with: 1. the modernization of a facility (of any type herein defined); or, 2. construction of a new facility (of any type herein defined); or, 3. expansion of a facility (of any type herein defined); or, 41 Industrial Tax Abatement Guidelines September 1, 1999 4. any combination of the above. h) A statement of the additional value to the Real Property or Facility as a result of the proposed improvements. i) A statement of the assessed value of the Real Property, Facility or Existing Facility for the Base Year. j) Information concerning the number of new jobs that will be created or information concerning the number of existing jobs to be retained as result of the improvements undertaken. k) Any other information which the Affected Jurisdiction, to which the application has been directed, deems appropriate for evaluating the financial capacity of the applicant and compatibility of the proposed improvements with these guidelines and criteria. 1) Information that is provided to an Affected Jurisdiction in connection with an application or request for tax abatement and which describes the specific processes or business activity to be conducted or the equipment or other property to be located on the property for which tax abatement is sought is confidential and not subject to public disclosure until the Tax Abatement Agreement is executed. Information in the custody of an Affected Jurisdiction after the agreement is executed is not confidential. (V.T.C.A., Tax Code, Section 312.003). m) The Affected Jurisdiction to whom the application for tax abatement has been directed shall determine if the property described in said application is within a designated reinvestment zone. If the Affected Jurisdiction determines that the property described lis not within a current reinvestment zone then they shall so notify the applicant and said application shall then be considered both as an application for the creation of a reinvestment zone and a request for tax abatement to be effective after the zone is created. SECTION Vlll. Recapture: In the event that any type of facility, (as defined in Section II, Subparagraphs 5, 6, 7, 8, 10, 11, 12, 14, 18, 20) is completed and begins producing goods or services, but subsequently discontinues producing goods or services for any reason, excepting fire, explosion or other casualty or accident or natural disaster or other event beyond the reasonable control of applicant or owner for a period of 180 days during the term of a tax abatement agreement, then in such even the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The burden shall be upon the applicant or owner to prove to the satisfaction of the Affected Jurisdiction to who the application for tax abatement was directed that the discontinuance of producing goods or services was as a result of fire, explosion, or other casualty or accident of natural disaster or other event beyond the control of applicant or owner. In the event that applicant or owner meets this burden and the Affected Jurisdiction is satisfied 42 Industrial Tax Abatement Guidelines September 1, 1999 that the discontinuance of the production of goods or services was the result of vents beyond the control of the applicant or owner, then such applicant or owner shall have a period of = year in which to resume the production of goods and services. In the event that the applicant or owner fails to resume the production of goods or services within one year, then the Tax Abatement Agreement shall terminate and the Abatement of all taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The one year time period, hereinabove mentioned, shall commence upon written notification from the Affected Jurisdiction to the applicant or owner. 2. In the event that the applicant or owner has entered into a tax abatement agreement to make improvements to a facility of any type described in Section 1 above, but fails to undertake or complete such improvements, then in such event the Affected Jurisdiction to whom the application for tax abatement was directed shall give the applicant or owner sixty (60) days notice of such failure. The applicant or owner shall demonstrate to the satisfaction of the Affected Jurisdiction, above mentioned, that the applicant or owner has commenced to cure such failure within the sixty (60) days above mentioned. In the event that the applicant or owner fails to demonstrate that he is taking affirmative action to cure his failure, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 3. In the event that the Affected Jurisdiction to whom application for tax abatement was directed determines that the applicant or owner is in default of any of the terms or conditions contained in the Tax Abatement Agreement, then in such even the Affected Jurisdiction, shall give the applicant or owner sixty (60) days written notice to cure such default. In the event such default is not cured to the satisfaction of the Affected Jurisdiction within the sixty (60) days notice period, then the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31 st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 4. In the event that the applicant or owner allows ad valorem taxes on property ineligible for tax abatement owed to any Affected Jurisdiction, to become delinquent and fails to timely and properly follow the legal procedures for their protest or contest, then in such even the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination, under this subparagraph, takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 5. In the even that the applicant or owner, who has executed a tax abatement agreement with any Affected Jurisdiction, relocates the business for which tax 43 'Industrial Tax Abatement Guidelines September 1, 1999 abatement has been granted, to a location outside of the designated reinvestment zone, then in such event, the Tax Abatement Agreement shall terminate after sixty (60) days written notice by the Affected Jurisdiction to the Owner/Applicant. Taxes abated during the calendar year in which termination, under this subparagraph takes place shall be payable to each Affected Jurisdiction by no later than January 31 st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 6. The date of termination as that term is used in this Subsection VIII shall, in every instance, be the 60th day after the day the Affected Jurisdiction sends notice of default, in the mail to the address shown in the Tax Abatement Agreement to the Applicant or Owner. Should the default be cured by the owner or Applicant within the sixty (60) day notice period, the Owner/Applicant shall be responsible for so advising the Affected Jurisdiction and obtaining a release from the notice of default from the Affected Jurisdiction, failing in which, the abatement remains terminated and the abated taxes must be paid. 7. In every case of termination set forth in Subparagraphs 1, 2, 3, 4 and 5 above, the Affected Jurisdiction to which the application for tax abatement was directed shall determine whether default has occurred by Owner (Applicant) in the terms and conditions of the Tax Abatement Agreement and shall so notify all other Affected Jurisdictions. Termination of the Tax Abatement Agreement by the Affected Jurisdiction to which the application for tax abatement was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all other Affected Jurisdictions. 8. In the event that a tax abatement agreement is terminated for any reason what so ever and taxes are not paid within the time period herein specified, then in such event, the provisions of V.T.C.A., Tax Code, Section 33.01 will apply. SECTION IX. Miscellaneous: 1. Any notice required to be given by these criteria or guidelines shall be given in the following manner: a) To the owner or applicant: written notice shall be sent to the address appearing on the Tax Abatement Agreement. b) To an Affected Jurisdiction: written notice shall be sent to the address appearing on the Tax Abatement Agreement. 2. The Chief Appraiser of the Lubbock Central Appraisal District shall annually assess the Real and Personal Property comprising the reinvestment zone. Each year, the applicant or owner receiving tax abatement shall furnish the chief Appraiser with such information as may be necessary for the abatement. Once value has been established, the Chief Appraiser shall notify the Affected Jurisdictions which levy taxes of the amount of assessment. 3. Upon the completion of improvements made to any type of Facility as set forth in Section VIII, Subparagraph 1 of these criteria and guidelines a designated employee or employees of any Affected Jurisdiction having executed a tax abatement 44 Industrial Tax Abatement Guidelines September 1, 1999 agreement with applicant or owner shall have access to the Facility to insure compliance with the Tax Abatement Agreement. 4. A tax abatement agreement may be assigned to a new owner but only after written consent has been obtained from all Affected Jurisdictions which have executed such an agreement with the applicant or owner. 5. These guidelines and criteria are effective upon the date of their adoption by an Affected Jurisdiction and shall remain in force for two years. At the end of the two year period these guidelines and criteria may be readopted, modified, amended or rewritten as the conditions may warrant. 6. Each Affected Jurisdiction shall determine whether or not said Affected Jurisdiction elects to become eligible to participate in tax abatement. In the even the Affected Jurisdiction elects by resolution to become eligible to participate in tax abatement, then such Affected Jurisdiction shall adopt these guidelines and criteria by separate resolution forwarding a copy of both resolutions to all other Affected Jurisdictions. 7. In the event of a conflict between these guidelines and criteria and V.T.C.A., Tax Code, Chapter 312, then in such event the Tax Code shall prevail and these guidelines and criteria interpreted accordingly. 8. The guidelines and criteria once adopted by an Affected Jurisdiction may be amended or repealed by a vote of three -fourths of the members of the governing body of an Affected Jurisdiction during the two year term in which these guidelines and criteria are effective. 9. The Property Redevelopment and Tax Abatement Act is subject to review as provided by the Texas Sunset Act (Section 325.0082 Government Code). If not continued in effect this statute expires September 1, 2001. 45 EXHIBIT "G" Ordinance No. 2000-00032 REFUND OF BUILDING PERMIT FEES FOR BUSINESSES LOCATED IN DESIGNATED ENTERPRISE ZONES The City of Lubbock may, at its sole discretion, refund building permit fees paid by businesses that locate within a designated enterprise zone. To qualify for this refund the business must create and retain at least twenty (20) new permanent jobs for a period of one year or add at least one million dollars ($1,000,000) in real estate assessed valuation. This refund will be in the amount of the fee originally paid by the business for the construction or renovation of business facilities within a designated enterprise zone. This refund would be made upon the business' attainment of the job or investment requirement and submittal of an application and necessary documentation within a three-year period of the business' start of operation in a designated enterprise zone. Definitions: A. Building Permit Fees — those fees paid to the City of Lubbock to obtain a permit to construct or renovate facilities located in a designated enterprise zone. B. Economically Disadvantaged — An individual who: (1) was unemployed for at least 3 months before obtaining employment with a qualified business; or (2) received public assistance benefits, such as welfare or food stamp payments, or a member of an employee's immediate family receiving Supplemental Security Income or Aid to Families with Dependent Children payments; or (3) has a physical or mental disability; or (4) is homeless; or (5) is a foster child; or (6) is on parole or entering the workplace after being confined in a unit or correctional facility of the institution division of the Texas Department of Criminal Justice or the Texas Youth Commission; or (7) is an individual whose total family income meets the low income or moderate income limits developed under Section 8, United States Housing Act of 1937. Includes all income by employee, spouse, all dependents, and family members living with employee as of the employment date. C. New Permanent Job — A new employment position created over and above the company's current baseline that provides a qualified employee of a qualified business with employment of at least 1,820 hours of work annually. 46 Building Permit Fee Refunds 05/15/00 D. Qualified Business — A person, including a corporation or other entity that the governing body certifies to have met the following criteria: (1) the person is engaged in or has provided substantial commitment to initiate the active conduct of trade or business in the zone; and (2) at least 25% of the businesses new employees in the zone are residents of any zone within the governing body's or bodies' jurisdiction or economically disadvantaged individuals; and (3) a franchise or subsidiary of a new or existing business may be certified by the governing body of an enterprise zone as a qualified business if the franchise or subsidiary is located entirely in the zone and maintains separate books and records of the business activity conducted in the zone. E. Qualified Employee — An employee who works for a qualified business and who performs at least 50% of his service for the business within the enterprise zone. Criteria A. The business applying for refund must be located in a designated enterprise zone in the City of Lubbock. B. Building permit fees to be refunded must have been paid for construction or renovation of facilities within a designated enterprise zone. C. The business must meet one of the following criteria: (1) The business applying for this refund is a qualified business and will create and retain twenty (20) new permanent jobs for at least one year. (2) The business will add at least one million dollars ($1,000,000) in real estate assessed valuation. D. The business must file an application for the refund of fees which must contain the following information: 1. Name and address of the business, 47 Building Permit Fee Refunds 05/15/00 2. Name and contact address of the owner/manager making application 3. Telephone and fax numbers, 4. The date of the start of the operation in a designated enterprise zone, and 5. Employment information, including: ❑ Total number of employees, ❑ Number of employees that are zone residents, ❑ Documentation such as names, address, and zipcodes, and a Employee time sheets 6. Amount of investment to be made, and 7. The date of building permit from the City of Lubbock Process: A. Within three years, after the business' start of operation, the business owner/manager obtains an application from City of Lubbock, Business Development Department: 1625 13"' Street, 2nd Floor, 775-2980 or 775-2019. B. The business owner/manager completes the application and returns it to the Business Liaison Officer (Zone Administrator), Business Development Department, with backup documentation that includes the following: Employment option: ❑ List of employees with addresses sorted by zipcode ❑ Timesheets showing hours worked by each employee during the previous year. Investment option: ❑ Documentation of the addition of at least one million dollars ($1,000,000) in real estate assessed valuation. C. Zone Administrator verifies that application is complete and all required documentation is present. 48 Building Permit Fee Refunds 05/15/00 D. Zone Administrator verifies documentation (employment, zone employment, investment, and amount of building permit fee paid) through audit and spot checks. E. Once all information is verified, Zone Administrator forwards a certification of the business' eligibility and the amount of the refund that is to be made to Market Lubbock, Inc. for a recommendation. F. Market Lubbock, Inc. forwards a recommendation to the City Manager on the designation. G. City Manager approves the designation and amount of refund and authorizes the Zone Administrator to draw a check for the amount to be refunded (out of the General fund). H. The Zone Administrator then does a DPR and Invoice for the amount to be refunded and forwards to accounting. Once the check is received it is copied and the copy put in the file and then the check is forwarded to the business. 49