HomeMy WebLinkAboutResolution - 2022-R0161 - Tax Abatement Agreement with Leprino Foods at 4301 E 19th and 4502 E 4thResolution No. 2022-RO161
Item No. 7.6
April 12, 2022
RESOLUTION
WHEREAS, the City Council of the City of Lubbock has determined to give notice
of its intent to enter into and execute a Tax Abatement Agreement with Leprino Foods
Company; and
WHEREAS, Texas Tax Code Section 312.2041 requires a notice of intent to be
given by the City Council to the presiding officer of the governing body of each taxing unit
in which the property subject to the Tax Abatement Agreement is located; and NOW
THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Secretary of the City of Lubbock is hereby authorized and directed
to give notice of an intent to enter into and execute a Tax Abatement Agreement with
Leprino Foods Company, with said notice to be given to the presiding officers of each
taxing unit having jurisdiction in assessing taxes on the property located at 4301 E 19`"
Street and 4502 E. 4`h Street , Lubbock, Lubbock County, Texas and more particularly
described in Exhibit 1.
Passed by the City Council on this 12th day of Aril , 2022.
G'--J
DANIEL M. POPE, MAYOR
ATTEST:
�Q-A� A
Rebel a Garza, City Secret
APPROVED AS TO CONTENT:
D. Blu Ko telich, Chief Financial Officer
AS TO FORM:
Leisure, Assistant City Attorney
Resolution No. 2022-RO161
NOTICE OF INTENT
NOTICE OF INTENT OF THE CITY COUNCIL OF THE CITY OF LUBBOCK
TO ENTER INTO AND EXECUTE A TAX ABATEMENT AGREEMENT ON
REAL PROPERTY IMPROVEMENTS AND TANGIBLE PERSONAL
PROPERTY LOCATED AT 4301 E. 19TH STREET AND 4502 E. 4TH STREET
AND FURTHER DESCRIBED IN EXHIBIT 1
Notice is hereby given that the City Council of the City of Lubbock intends to enter into
and execute a Tax Abatement Agreement with Leprino Foods Company to abate taxes on
improvements to real property and tangible personal property located within reinvestment
zone created by Ordinance No. 2022-00042, with such reinvestment zone covering all of
the property being described and depicted in the attached Exhibit 1. A draft copy of the
proposed Tax Abatement Agreement between the City of Lubbock and Leprino Foods
Company is attached to this notice as Exhibit 2.
Notice is further given that the City Council of the City of Lubbock will consider this
matter at its meeting held in the City Council Chamber, Citizens Tower, 1314 Avenue K,
City of Lubbock, on the 26 h day of April, at approximately 4:30 PM.
EXHIBIT 1: LEGAL DESCRIPTION AND MAP OF PROPERTY
EXHIBIT 1
LEGAL DESCRIPTION
METES AND BOUNDS DESCRIPTION of a 158.949 acre tract of land, out of a 252.5 acre tract described
under County Clerk File No.2020059091 of the Official Public Records of Lubbock County,Texas and a
155.8 acre tractdescribed under County Clerk File No. 2020059092 of the Official Public Records of
Lubbock County,Texas, located in Section 6, Block O, E. L. & R. R. Railroad Company Survey, Lubbock
County, Texas, and being further described as follows:
BEGINNING at a 1/2 "iron rod found in the East line of said Section 6, at the most Easterly Northeast
corner of said 252.5 acre tract and thistract,which bears S.01°25'02" W. a distanceof 544.55 feet from
a 3/8" iron rod found at the Northeast corner of Section 6, Block0, E.L. & R. R. Railroad Company
Survey, Lubbock County, Texas;
THENCE S.01°25'02"W., along the East line of said Section 6and the Eastern boundary of said 252.5 acre
tract,a distance of 211629 feet to a 1/2" iron rod found at the Northeast corner of a 160.0 acre tract
(Southeast Quarter of said Section 6) described in Volume3401, Page 326 of the Real Property Records of
Lubbock County,Texas, the Southeast corner of said 2525 acre tract and the most Easterly Southeast
corner of thistract, same being the Southeast corner of the Northeast Quarter of said Section 6;
THENCE N. 8803642" W., along the South line of the Northeast Quarter of said Section 6, the Northern
boundary of said 160.0 acre tract and the Southern boundary of said 2525 acre tract, at 30.00 feet
pass a 1/2" iron rod with cap marked "HRA"found in reference, continuing for a total distance of
2674.49 feet to a 1/2" iron rod with cap marked `Smith" found at the mid cornerof said Section 6,the
Northwest corner of said 160.0 acre tract, the Northeast corner of said 155.8 acre tract and a corner of
thistract;
THENCE N.88°15'05" W.adistance of 74982 feet to a 1/2" iron rod with cap marked 'HRA" found at
corner of this tract;
THENCE U46°52'06" E., a distance of 1062.59 feet to a 1/2" iron rod with cap marked "HRA" found in
the West line of the Northeast Quarter of said Section 6, at a corner of this tract;
THENCE N.01°59'13"E., along the West line of the Northeast Quarterof said Section6, at 1869.10feet pass
a 1/2" iron rod with cap marked "HRA"found intheSouth line of 40foot right-of-way easement described
in Volume 215, Page 190 of the Deed Records of Lubbock County, Texas, continuing fora total distance of
1909.10 feet to a'MAG" nail with washer marked "HRA"found in the North line of said Section 6 and the
Northern boundary of said 2525 acre tract, at the most Northerly Northwest corner of this tract;
THENCE S. 88S9'19" E.,along the North line of said Section 6and the Northern boundaryof said 252.5
acre tract, a distance of 1848.06 feet to a "MAG" nail with washer marked "HRA" found at the most
Northerly Northeast cornerof said 2525 acre tractand thistract;
THENCE S. 01025'02"W.,at40.00 feet pass a 1/2"iron rod withcap marked "HRA" found in the South
line of said 40 foot right-of-way easement, continuing for a total distance of 544.50 feet to a 1/2"
iron rod with cap marked "HRA" found at an "ell"cornerofthis tract;
1
THENCE S.8T39' 05" E., at 770.00feet pass a 1/2" iron rod with cap marked "HRA" found in reference,
continuing for a total distance of 800.00 feet to the Point of Beginning.
SAVE AND EXCEPTTHE FOLLOWING DESCRIBED TRACT OF LAND:
METES AND BOUNDS DESCRIPTION a 0.0430 acre tract, being that same tract described in Volume 1771,
Page 194 of the Deed Records of LubbockCounty,Texas, located in the North Half of Section 6, Block O,
E. L. & R. R. Railroad Company Survey, Lubbock County, Texas, and being further described as follows:
BEGINNING at a 1/2" iron rod with cap marked "HRA"found in the South line of a 40 foot right-of-
way easement described in Volume 215, Page 190 of the Deed Records of Lubbock County,Texas,at the
Northeast corner of this tract, which bears N.88°39'19" W. a distance of 248047 feet and S.
01°20'41" W. a distance of 40.00 feet from a 3/8" iron rod found at the Northeast cornerof Section
6, Block O, E. L. & R. R. Railroad Company Survey, Lubbock County, Texas;
THENCE S. 01046'55" W. a distance of 25.00feet to a 1/2" iron rod with cap marked "HRA" found atthe
Southeast cornerof thistract;
THENCE N. 88°39'19" W. adistanceof 75A0 feet to a 3/8" iron rod found at the Southwest cornerof
thistract;
THENCE N.01°46'55" E. a distance of 25.00 feet to a 1/2" iron rod found in the South line of said 40
foot right-of-way easement, at the Northwest corner of this tract;
THENCE S.W39'19"E., along the South line of said 40 foot right-of-way easement, adistance of 75.00
feet to the Point of Beginning.
Bearings are relative to Grid North, Texas Coordinate System of 1983, North-Central Zone, 2011 (epoch
2010A). Distances are Surface,U.S. Survey Feet.
METES AND BOUNDS DESCRIPTION of a 101.006 acre tract of land out of Section 6, Block O, E. L. & R. R.
Railroad Company Survey, Lubbock County, Texas, being further described as follows:
BEGINNING ata "MAG" nail with washer marked "HRA" found atthe Southwest cornerof this tract, which
bears S. 88°39'02" E. a distance of 981.90feet from the Southwest cornerof said Section 6, Block O, E. L
& R. R. Railroad Survey, Lubbock County, Texas;
THENCE N.01°46' 11"E. a distance of 2661.73 feet to a 1/2" iron rod with cap marked "HRA" found
in the North line of the Southwest Quarterof said Section 6, for the Northwest corner of this tract;
THENCE S.88015'05" E., along the North line of the Southwest Quarter of said Section 6 a distance of
165651 feet to a 1/2" iron rod with cap marked'Smith"found at the mid corner of said Section
6,for the Northeast corner of this tract;
THENCE S.01045'55" W., along the East line of the Southwest Quarter of said Section 6 a distance of
2650.12 feet to a railroad spike found at the Southeast cornerof the Southwest Quarter of said Section
6 and the Southeast corner of this tract;
THENCE N. 88°39'02" W., along the South line of said Section 6 a distance of 1656.76 feet to the Point
of Beginning.
2
SAVEAND EXCEPTTHE TWO FOLLOWING DESCRIBED TRACTOF LAND:
METES AND BOUNDS DESCRIPTION of a 1007 acre tract described in Volume 5686, Page 324of the
Real Property Records of Lubbock County, Texas, located in the Southwest Quarter of Section 6, Block O,
E. L. & R. R. Railroad Company Survey, Lubbock County, Texas, being further described as follows:
BEGINNING at a 1/2" iron pipe found at the Southeast corner of this tract which bears N. 88°39M" W. a
distance of 60.67 feet and N. 01°20'5r E. a distance of 28.34 feet from a railroad spike found at the
Southeast corner of the Southwest Quarter of Section 6, Block O, E. L. & R. R. Railroad Company Survey,
Lubbock County, Texas;
THENCE N. 8803641" W. a distance of 15958 feet to a 1/2" iron pipe found at the Southwest corner of
this tract;
THENCE N.01046'17" E. a distanceof 275.00 feet to a 1/2" iron rod found at the Northwest corner
of this tract;
THENCE S. 88036'41" E. a distance of 159.58 feet to a 1/2" iron rod found at the Northeast corner of this
tract;
THENCE S.01046' 17" W. a distance of 27500 feet to the Point of Beginning.
Bearings are relative to Grid North, Texas Coordinate System of 1983y North-Central Zone, 2011(epoch
2010.0). Distances are Surface, U.S. Survey Feet.
3
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EXHIBIT 2: DRAFT TAX ABATEMENT AGREEMENT
EXHIBIT 2
CITY OF LUBBOCK TAX ABATEMENT AGREEMENT
This Tax Abatement Agreement is by and between the City of Lubbock, a Texas home rule
municipal corporation, and the Leprino Foods Company, for the abatement of certain taxes
at the property located at 4301 E. 19th Street and 4502 E. 4th Street, Lubbock, Lubbock
County, Texas.
RECITALS
WHEREAS, on February 23, 2022, the City of Lubbock received an application for tax
abatement from the Leprino Foods Company, concerning improvements to real property and
tangible personal property; and
WHEREAS, the Leprino Foods Company application for tax abatement addresses, among
other things, the construction of a new facility and the addition of new equipment to the
property located at 4301 E. 19th Street and 4502 E. 4' Street, Lubbock, Lubbock County,
Texas; and
WHEREAS, upon review of the Leprino Foods Company applicatimfbc tax abatement, the
City Council of the City of Lubbock found that the property located at 43Q 1 E. 19th Street
and 4502 E. 4th Street, Lubbock, Lubbock County,, Texas is in the Reinvestment Zone
designated by the City of Lubbock in Ordinance No. 2022-00042; and
WHEREAS, the City Council of the iCfty ofLubbock, throe* Resolution No. 2022-RO125,
adopted the Guidelines zW Criteria Governing Tax Abatement for Industrial Projects in the
City of Lubbock; and
WHEREAS, the Texas Tax Code, Section 312.002, and Section IV of the Guidelines and
Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock, recognize
the construction of a new facility a4d. the addition of personal property in the form of
equipment ss being 4�hgible for tax abatement; and
WHEREAS, the City Council of the City of Lubbock hereby finds that the Guidelines and
Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock have been,
or will be, met by the Leprino Foods Company; and
WHEREAS, the City of Lubbock has complied with all the requirements set forth in the
Texas Tax Code, Section 312.201, and with all of the requirements set forth in the Guidelines
and Criteria Governing Tad. Abatement for Industrial Projects in the City of Lubbock; and
NOW THEREFORE, in consideration of the promises, terms, covenants, and
conditions contained in this Tax Abatement Agreement, the City of Lubbock and the
Leprino Foods Company agree as follows:
AGREEMENT
1. Definitions. The following terms shall have the meanings ascribed to them in this Section
for purposes of this Agreement:
"AgreemenP'means this Tax Abatement Agreement, including its Recitals and Exhibits.
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 1
"Application" means the Leprino Foods Company's application for municipal tax abatement
submitted to the City, a copy of which is attached to this Agreement as "Exhibit C."
"Qb�" means the City of Lubbock.
"Companx" means the Leprino Foods Company.
"Guidelines" means the Guidelines and Criteria Governing Tax Abatement for Industrial
Projects in the City of Lubbock that were adopted by the City Council through Resolution
No. 2022-R0125, a copy of which is attached to this Agreement as "Exhibit B" and
incorporated herein.
"Improvement Proiect" means the improvements to real pro erty and the tangible personal
property that are eligible for tax abatement and that ar cified in the Leprino Foods
Company's application for municipal tax abatement, y of which is attached to this
Agreement as "Exhibit C."
"Site " means the Leprino Foods Company's pr ocate 01 E. 19th Street and 4502
E. 4d' Street, Lubbock, Lubbock County, with a mo iculaz description and
depiction attached to this Agreement as "B A."
"Term" means the period of time in which
provided in Section 3. �
is effective as
2. Recitals and Exhibits. Zwre p cove d recitations which are set forth
in the foregoing Recitals, hich nc the is attached hereto, are material
to this Agreement and bw,,reby inco ated in art of this Agreement.
3. Term. This A nt s ecome u date of its execution by the
Parties, and unless eeme termin arlier according to any provision contained
herein, the Term of thi ee all be 0) years, with such Term commencing on
January lii ye vem reject is at least ninety percent (90%)
4. Base r and Ass Va The base year applicable to the real and personal
property, is the subs f thi eement, shall be 2022. The assessed value of the
real and perso roperty, w is the bject of this Agreement, shall be the assessed value
of such property 022.
5. Base Year Taxes. any shall pay the base year taxes upon the real and personal
property which is the su of this Agreement according to the base year assessed value.
Therefore, the Company hereby acknowledges that the base year taxes levied upon the real
and personal property at the Site cannot be abated.
6. Abatement of Increase in Base Year Tax. In accordance with Texas Tax Code, Section
312.204, real property taxes applicable to the real property that is the subject of this
Agreement shall be abated only to the extent that the assessed value for any given year within
the Term exceeds the base year assessed value.
7. Property Ineligible for Tax Abatement. The property described and set forth in Section
IV (6) of the Guidelines is incorporated by reference herein as if fully set out in this
Agreement and fully describes the property ineligible for tax abatement.
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 2
8. Exemption from Tax for Improvement Proiect. The City covenants and agrees to
exempt from taxation, in accordance with the appropriate Sections above, the following:
a. All proposed new improvements to be placed upon the Site.
b. All eligible tangible personal property placed in or upon the Site. Any equipment or
personal property owned by the Company prior to the execution of this Agreement, or
already located in an existing facility, shall not be considered "eligible tangible
personal property" under this Agreement.
It is further understood that all items affixed to the new improvements placed upon the
real property identified above and in Exhibit "A"d ng machinery and equipment
shall be considered part of the real property imnt and taxes thereon shall be
abated in accordance with the provisions of sub (a) of this Section.
9. Economic Oualifications. As set fort
Company agrees to expend funds necessary
Agreement by constructing a new facility of
location of all proposed improvements is
10. Value of Improvements. In
Company will expend six hundred
for the construction of a new facility
be located at the Site dmmsh.
11. Job Creation.
by December 31,
Guidelines, the
it provided by this
kind, number, and
ittached hereto as
Code, Section 312.204(a), the
and NO/100 ($615,000,000.00)
equipment and machinery to
greem ie that if the initial tax appraisal
kd
e 1 ue at the ite equal to or exceeding six
NO ($615,000,000.00) for the real property
rty ribed in this Agreement, the Company
s and' TEyment for the construction of the new
ment alMachinery located at the Site for an amount
K undredi and fifteen million dollars and NO/100
the �%pany to maintain its eligibility for tax abatement
agrees to create three hundred (300) new jobs at the Site
those jobs throughout the Term.
12. Portion of Tax Abated. Throughout the Term, the City agrees to abate taxes as set forth
in Section 6. (above) on the Improvement Project according to the following schedule:
Year 1: 100%
Year 2: 100%
Year 3: 100%
Year 4: 100%
Year 5: 100%
Year 6:
100%
Year 7:
100%
Year 8:
100%
Year 9:
100%
Year 10:
100%
13. Type of Improvements. In its Application, the Company proposes to construct a facility
and purchase machinery and equipment for the Site. The Company acknowledges that the
construction of the new facility and the purchase of the new machinery and equipment shall
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 3
commence on or before June 21, 2022, and the Company hereby guarantees that the facility
construction and equipment purchases as stated herein shall be completed by December 31,
2026. In the event that circumstances beyond the control of the Company necessitate
additional time for the completion of such construction and purchasing, the Company may
request an extension of the above date from the City and such consent shall not unreasonably
be withheld. Company shall provide proof of completion within ten (10) days of completion
of such construction and purchases.
14. Limitation on Use. Throughout the Term, the Company agrees to limit the use of the
Site to commercial, manufacturing, and/or industrial uses as contemplated herein, as those
terms are defined in the zoning ordinances of the City, and to limit the uses of the Site to
those uses consistent with the general purpose of e#�*aging development of the
reinvestment zone. /,
15. Recapture. In the event of default of this Agra fit r (e Company, and after notice
of such default and an opportunity to cure sucl�,ddailt have'bqftprovided to the Company
by the City, the Company agrees to be bound,by comply with,4l a terms and provisions
for the recapture of abated taxes under thii.Agreement, pursuant th) r, and as set forth in
the Guidelines.
16. City Access to Property. Thr�cV the Te thie i mpany covenant ed agrees that
the City shall have access to the Si a�bt�ie Impro ant Project upon reasonable notice,
during normal business hours, and s►) ci-�tQ Or,, Compat�easonable security, safety, and
operational standards, and that the Citj shall ' o inspV'1 ie Site and the Improvement
Project and any docupfoits`wcessary t�, hasure ttkec ancompliance with the terms
and conditions of tl liclic q�,o� and thi�A
17. Certification. Th;Ciipany agrees to pWpde to the City annual, written certification
that the Cote s in c*p�fice wt'�,tjie term pf the Agreement.
18. C ance. In a dari�/1�ith Sec�r�, and X of the Guidelines, the City may
cancel Modify this A eniXt)e Company is m default to any term of this Agreement.
The City provide not)qe l4 the Company specifying the basis for any such
default, wi g' written notice proving a timeframe and procedure within which the
Company may y default:
19. Notices. Unless iVrOAe�tered by either Party through written notice to the other
Party, any notice re( d t9 a given by this Agreement shall be in writing and sent by
certified mail, return rerei 'requested, to the following addresses:
CITY OF LUBBOCK LEPRINO FOODS COMPANY
City Manager Colleen Kershisnik, Sr. Tax Manager
PO Box 2000 1830 W. 381h Avenue
Lubbock, Texas 89457 Denver, Colorado 80211
20. Assignment. This Agreement may not be assigned without the written the approval of
the City.
21. Representations. The City represents that:
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 4
a. the Site is within the Reinvestment Zone designated by Ordinance No. 2022-00042;
and
b. the City has complied with all of the requirements set forth in Texas Tax Code, Section
312.201 and with all the criteria and guidelines as set forth in the Guidelines.
22. Miscellaneous.
a. Severability. In the event any provision of this Agreement is held to be invalid or
unenforceable in any respect, such invalidity or unenforceability shall not affect any
other provisions of this Agreement.
b. Amendments. Any amendment to this Agreemee of no effect unless in writing
and signed by all parties hereto. Yam\
Counterparts. This Agreement may be
constitute an original, but all of w
instrument. The signature page of an
impairing the legal effect of the signat
attached to any other counte art ident
pages executed by any othe
d. Venue and Applicable Law. 1
laws, orders, rules, ordinances,
State of Texas, es, and i
Agreement s o d and
The sole ve or any on,
Agreement shal n a c of
in co harts, each of which shall
shall c to one and the same
may be de therefrom without
eo rovided�aii
ature page is
Apt havinnal signature
is t to all present and future valid
Pof ted States of America, the
ory having jurisdiction. This
o the laws of the State of Texas.
✓, disp , or claim arising under this
jurisdiction in Lubbock County, Texas
e. $ m an eswed Verves the right to exercise any right or
ft,*-dy availab t6 it b� contr , equity, or otherwise, including without
li n ' n, the righi, t.,seek and all forms of relief in a court of competent
juris i Further, 4ze pity s !t not be subject to any arbitration process prior to
exercisin i unrestrict$d tight to seek judicial remedy. The remedies set forth herein
are cumula d not Qxclusive, and may be exercised concurrently. To the extent of
any conflict egA4: provision and another provision in, or related to, this
Agreement, the er Mall control.
f. Public Information. This Agreement is public information. To the extent, if any, that
any provision of this Agreement is in conflict with Tex. Gov't. Code Ann. Chapter 552
et seq., as amended, the same shall be of no force and effect.
g. No Third -Party Beneficiaries. This Agreement is entered solely by and between, and
may be enforced only by and among the Parties. Except as set forth above, this
Agreement shall not be deemed to create any rights in or obligations to any third parties.
h. No Personal Liability, Nothing in this Agreement is construed as creating any personal
liability on the part of any employee, officer or agent of any public body that may be a
party to this Agreement.
City of Lubbock Tax Abatement Agreement— Leprino Foods Company Page 5
i. No Joint Enterprise. This Agreement is not intended to, and shall not be construed to
create any joint enterprise between or among the parties.
j. No Indemnification by Cites The parties expressly acknowledge that the City's authority
to indemnify and hold harmless any third party is governed by Article XI, Section 7 of
the Texas Constitution and any provision which purports to require indemnification by
the City is invalid.
k. Sovereign Immunity Acknowledged and Retained. THE PARTIES EXPRESSLY
ACKNOWLEDGE AND AGREE THAT NO PROVISION OF THIS
AGREEMENT IS IN ANY WAY INTENDED TO CONSTITUTE A WAIVER
BY ANY PARTY OF ANY IMMUNITIES FROM SUIT OR LIABILITY THAT
A PARTY MAY HAVE BY OPERATION OF OHE CITY RETAINS ALL
OF ITS GOVERNMENTAL IMMUNITY.
I. Contracts with Companies Engaged in
Organization Prohibited. Pursuant to S
prohibits the City from entering into a
Comptroller as a company known to have
Iran, Sudan or a foreign
in. No Boycott of Israel. P
n.
section applies only to a
with 10 or
paid wholly
lic
may not enter iw&k cont with a cc
or Foreign Terrorist
2.152 of
with a vendor
provide
Government Code,
d by The
or service with
1.002qfte Texas Government Code, a) This
a mental entity and a company
ue o 00,000 or more that is to be
entity. (b) A governmental entity
for goods or services unless the contract
that it: (1) does not boycott Israel; and (2)
ng into this Agreement, the Company verifies that:
of the contract, have a practice, policy,
against a firearm entity or firearm trade association
2274.002 of the Texas Government Code does not
has 10 or more full-time employees and if this
Agreement has a value of at least $100,000 or more, the Company verifies that, pursuant to
Texas Government Code Chapter 2274, it does not have a practice, policy, guidance, or
directive that discriminates against a firearm entity or firearm trade association; and will not
discriminate during the term of the contract against a firearm entity or firearm trade
association.
o. The Company represents and warrants that: (1) it does not, and will not for the duration of
the contract, boycott energy companies or (2) the verification required by Section 2274.002
of the Texas Government Code does not apply to the contract. If the Company has 10 or
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 6
more full-time employees and if this Agreement has a value of at least $100,000 or more, the
Company verifies that, pursuant to Texas Government Code Chapter 2274, it does not
boycott energy companies; and will not boycott energy companies during the term of the
Agreement. This verification is not required for an agreement where a governmental entity
determines that these requirements are inconsistent with the governmental entity's
constitutional or statutory duties related to the issuance, incurrence, or management of debt
obligations or the deposit, custody, management, borrowing, or investment of funds.
p. Texas Public Information Act. The requirements of Subchapter J, Chapter 552, Government
Code, may apply to this contract and the Company agre,ttply
t the contract can be terminated
f
if the Company knowingly or intentionally failyto with a requirement of that
subchapter.
q. To the extent Subchapter J, Chapter 552 xovrnment Cac' lies to this agreement, the
Company agrees to: (1) preserve a coacting informatioit'e ted to the contract as
provided by the records retention requiremets applic to the go ental body for the
duration of the contract; (2),Vwmptly prove the overnmental bo v ny contracting
information related to the con' in the cu or possession of the entity on request
of the governmental body; and ; n tion of t ntract, either: (A) provide at no
cost to the goverpxtiien�i..[oody all c acting tion to the contract that is in the
custody or p�( s— 5Ion o evntity; or ' e t cting information related to the
contract as prop by th"cords ret requirements applicable to the governmental
23. Effec Date.b�e
o tan�nything contained herein to the contrary, this
Agreement of effe until h time as it has been finally passed and approved
by the City Co of the Ci
SIGNATURES
This Tax Abatement Agreement is hereby executed on .2022.
CITY OF LUBBOCK LEPRINO FOODS COMPANY
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 7
DANIEL M. POPE, MAYOR Mark Benson, Chief Procurement
Officer, VP Government Affairs
Rebecca Garza, City Secretary
Kelli Leisure, Assistant City Attorney
City of Lubbock Tax Abatement Agreement— Leprino Foods Company Page 8
EXHIBIT A: The Property — Legal Description & Map
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 9
EXHIBIT A
EXHIBIT 1
LEGAL DESCRIPTION
METES AND BOUNDS DESCRIPTION of a 158.949 acre tract of land, out of a 252.5 acre tract described
under County Clerk File No.2020059091 of the Official Public Records of Lubbock County,Texas and a
155.8 acre tractdescribed under County Clerk File No. 2020059092 of the Official Public Records of
Lubbock County,Texas, located in Section 6, Block O, E.L. & R. R. Railroad Company Survey, Lubbock
County, Texas, and being further described as follows:
BEGINNING at a 1/2 "iron rod found in the East line of said Section 6, at the most Easterly Northeast
corner of said 252.5 acre tract and thistract,which bears S.01°25'02"W. a distanceof 544.55 feet from
a 3/8" iron rod found at the Northeast corner of Section 6, Block O, E.L. & R. R. Railroad Company
Survey,Lubbock County,Texas;
THENCE S 01'25'02"W., along the East line of said Section 6and the Eastern boundary ofsaid 252.5 acre
tract,a distance of 211629 feet to a 1/2" iron rod found at the Northeast corner of a 160.0 acre tract
(Southeast Qua rterof said Section 6) described in Volume3401, Page 326 of the Real Property Records of
Lubbock County,Texas, the Southeast corner of said 2525 acre tract and the most Easterly Southeast
corner of thistract, same beingthe Southeast corner of the Northeast Quarter of said Section 6;
THENCE N. 88°3642" W., along the South line of the Northeast Quarter of said Section 6, the Northern
boundary of said 160.0 acre tract and the Southern boundary of said 2525 acre tract, at 30.00 feet
pass a 1/2" iron rod with cap marked "HRA"found in reference, continuing for a total distance of
2674.49 feet to a 1/2" iron rod with cap marked "Smith" found at the mid cornerof said Section 6,the
Northwest corner of said 160.0 acre tract,the Northeast corner of said 155.8 acre tract and a corner of
thistract;
THENCE N.88°15'05" W. a distance of 749S2 feet to a 1/2" iron rod with cap marked 'HRA" found at a
corner of this tract;
THENCE M46052'06" E., a distance of 1062.59 feet to a 1/2" iron rod with cap marked "HRA" found in
the West line of the Northeast Quarter of said Section 6, at a corner of this tract;
THENCE N.01°59'13"E., along the West line of the Northeast Quarterof said Section6, at 1869.10feet pass
a 1/2" iron rod with cap marked "HRA"found inthe5outh line of 40 foot right-of-way easement described
in Volume 215, Page 190 of the Deed Records of Lubbock County, Texas, continuing for a total distance of
1909.10 feet to a "MAG" nail with washer marked "HRA"found in the North line of said Section 6 and the
Northern boundary of said 2525 acre tract, at the most Northerly Northwest corner of this tract;
THENCE S. 88°39'19" E.,along the North line of said Section 6and the Northern boundary of said 252.5
acre tract, a distance of 1848.06 feet to a "MAG" nail with washer marked "HRA" found at the most
Northerly Northeast cornerof said 2525 acre tractand thistract;
THENCE S. 01025'02"W.,at40.00 feet pass a 1/2"iron rod withcap marked "HRA" found in the South
line of said 40 foot right-of-way easement, continuing for a total distance of 544.50 feet to a 1/2"
iron rod with cap marked "HRA" found at an "ell"cornerofthis tract;
1
EXHIBIT A
THENCE S. 88°39' 05" E., at 770.00 feet pass a 1/2" iron rod with cap marked "HRA" found in reference,
continuing for a total distance of800.00 feet to the Point of Beginning.
SAVE AND EXCEPTTHE FOLLOWING DESCRIBED TRACT OF LAND:
METES AND BOUNDS DESCRIPTION a 0.0430 acre tract, being that same tract described in Volume 1771,
Page 194 of the Deed Records of LubbockCounty,Texas, located in the North Half ofSecion 6, Block O,
E.L. & R. R. Railroad Company Survey, Lubbock County, Texas, and being further described asfollows:
BEGINNING at a 1/2" iron rod with cap marked "HRA" found in the South line of a40foot right-of-
way easement described in Volume 215, Page 190 of the Deed Records of Lubbock County,Texas,at the
Northeast corner of this tract, which bears N.88°39'19" W. a distance of 2480.47 feet and S.
01°20'41" W. a distance of 40.00 feet from a 3/8" iron rod found at the Northeast cornerof Section
6, Block O, E. L. & R. R. Railroad Company Survey, Lubbock County,Texas;
THENCE S.01°46'55" W. a distance of 25.00feet to a 1/2" iron rod with cap marked "HRA" found atthe
Southeast cornerof thistract;
THENCE N. 88°39'19"W. adistance of 75A0 feet to a 3/8" iron rod found at the Southwest corner of
thistract;
THENCE N.01°46'55" E. a distance of 25.00 feet to a 1/2" iron rod found in the South line of said 40
foot right-of-way easement, at the Northwest corner of this tract;
THENCE S.W39'19"E., along the South line of said 40 foot right-of-way easement, adistance of 75.00
feet to the Point of Beginning.
Bearings are relative to Grid North, Texas Coordinate System of 1983, North-Central Zone, 2011 (epoch
2010A). Distances are Surface, U.S. Survey Feet.
METES AND BOUNDS DESCRIPTION of a 101.006 acre tract of land out of Section 6, Block O, E. L. & R. R.
Railroad Company Survey, Lubbock County, Texas, being further described as follows:
BEGINNING ata "MAG" nail with washer marked "HRA" found atthe Southwest cornerof this tract, which
bears S. 88°39'02" E. a distance of 981.90feet from the Southwest cornerof said Section 6, Block O, E. L
& R. R. Railroad Survey, Lubbock County, Texas;
THENCE N.01°46'11"E.a distance of 2661.73feet to a1/2" iron rod with cap marked "HRA" found
in the North line of the Southwest Quarterof said Section 6, for the Northwest corner of this tract;
THENCE S.88015'05" E, along the North line of the Southwest Quarter of said Section 6 a distance of
165651 feet to a 1/2" iron rod with cap marked'Smith"found at the mid corner of said Section
6,for the Northeast corner of this tract;
THENCE S.01°45'55" W., along the East line of the Southwest Quarter of said Section 6 a distance of
2650.12 feet to a railroad spike found at the Southeast cornerof the Southwest Quarter of said Section
6 and the Southeast corner of this tract;
THENCE N. 88°39'02" W., along the South line of said Section 6 a distance of 1656.76 feet to the Point
of Beginning.
2
EXHIBIT A
SAVEAND EXCEPTTHE TWO FOLLOWING DESCRIBED TRACT OF LAND:
METES AND BOUNDS DESCRIPTION of a 007 acre tract described in Volume 5686, Page 324of the
Real Property Records of Lubbock County, Texas, located in the Southwest Quarter of Section 6, Block U,
E. L.& R. R. Railroad Company Survey, Lubbock County, Texas, being further described as follows:
BEGINNING at a 1/2" iron pipe found at the Southeast corner of this tract which bears N. 88'39'02" W. a
distance of 60.67 feet and N. 01°20'58" E. a distance of 28.34 feet from a railroad spike found at the
Southeast cornerof the Southwest Quarter of Section 6, Block 0, E. L.& R. R.Railroad Company Survey,
Lubbock County, Texas;
THENCE N. 88°3641" W. a distance of 15958 feet to a 1/2" iron pipe found at the Southwest corner of
this tract;
THENCE N.01046'17" E. a distanceof 275.00 feet to a 1/2" iron rod found at the Northwest corner
of this tract;
THENCE S. 88036'41" E. a distance of 159.58 feet to a 1/2" iron rod found at the Northeast corner of this
tract;
THENCE S.01°46' 17" W. a distance of 27500 feet to the Point of Beginning.
Bearings are relative to Grid North, Texas Coordinate System of 1983y North-Central Zone, 2011(epoch
2010.0). Distances are Surface, U.S. Survey Feet.
3
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EXHIBIT B: Guidelines and Criteria Governing Tax Abatement
For Industrial Projects in the City of Lubbock
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 10
f _ EXHIBIT B
Resolution No. 2022-RO125
Item No. 8.13
March 8, 2022
WHEREAS, on February 11, 2020, via Resolution No. 2020-R0062, the City Cot
of the City of Lubbock approved uniform guidelines and criteria for tax abatement
industrial projects (the "Guidelines') within the City of Lubbock in conformance with
requirements of the Texas Tax Code (the "Tax Code) Chapter 312; and
WHEREAS, under the Tax Code the Guidelines approved are effective two years f
the date adopted; and
WHEREAS, the City Council of the City of Lubbock desires to approve new Guidel
for industrial tax abatement; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby approves and adopts "Guu
and Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock",
guidelines and criteria are attached as Exhibit "A" and are incorporated herein.
Passed by the City Council on March 8, 2022
DANIEL M. POPE, MAYOR
ATTEST:
Re4cca Garza, City S
APPROVED AS TO CONTENT:
4ljk
u I lick, Chief Financial Officer
AJ?PROVED TO FORM:
lli Leisure, Assistant City Attorney
ites.Tax AbatementlndustrialOuldelines2022
2.14.22
EXHIBIT B
Resolution No. 2022-RO125
Exhibit "A"
City of Lubbock, TX
Guidelines and Criteria Governing Tax Abatement For
Industrial Projects In The City of Lubbock
SECTION I. General Purpose:
The City of Lubbock (City) is committed to the promotion of high quality development in all parts of the
City of Lubbock, Texas; and to an ongoing improvement in the quality of fife for the citizens residing within
the City. The City recognizes that these objectives are generally served by enhancement and expansion of
the local economy. The City 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 City.
It is the policy of the City 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 City is 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 Il. Definitions:
As used within these guidelines and criteria, the following words or phrases shall have the following meaning:
I. 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 specified in the Tax Abatement Agreement for a period of
time not to exceed ten (10) years.
2. Abatement Agreement: (1) A contract between a property owner and the City for the
abatement of taxes on qualified property located within a Reinvestment Zone or a designated
Enterprise Zone; or, (2) a contract for the abatement of taxes between the City 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)
3. Advanced Technologies: advanced manufacturing which requires higher skills and results in
higher wages and investment.
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. 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.
6. Expansion of Existing Facilities or Structures: The addition of buildings, structures,
machinery or equipment to a Facility.
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. Information and Data Center: Facility used to house computer systems and associated
components, such as telecommunications and storage systems. The main purpose of the facility
EXHIBIT B
20221ndusbW Tax Abatement Guidelines
February 22, 2022
is running applications that handle the core business and operational data of organizations, off -
site backups and other informational operation.
10. 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 arty Tangible Personal Property placed in or
on said Real Property.
11. 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.
12. Medical Services: Facilities such as hospitals, specialty hospitals and other like facilities that
are classified under North American Industrial Classification System Code 622.
13. Modernization/Renovation of Existing Facilities: The replacement or upgrading of existing
facilities.
14. New Facility: The construction of a Facility on previously undeveloped Real Property eligible
for tax abatement.
15. 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.
16. 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 5001* of revenues
come from outside of Lubbock County, Texas.
17. Owner: The record title owner of Real Property or the legal owner of Tangible Personal
Property. In the case of land leased from the City or buildings leased from a private party or
tax exempt property, the lessee shall be deemed the owner of such leased property together with
all improvements and Tangible Personal Property located thereon.
18. Productive Life: The number of years a Facility is expected to be in service.
19. Real Property: Land on which improvements are to be made or fixtures placed.
20. 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.
21. Reinvestment Zone: Real Property designated as a Reinvestment Zone under the provisions of
V.T.C.A., Tax Code, Section 312.202.
22. 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.
23. Tangible Personal Property: Any Personal Property, not otherwise defined herein and which
is necessary for the proper operation of any type of Facility.
EXHIBIT B
20221ndustsial Tax Abatement Guidelines
February22, 2022
SECTION III. 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 City.
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 City will consider abatement only if the company meets
one of the following criteria:
a) One of the following target industries:
i) Advanced Technologies and Manufacturing
ii) Value-added Agricultural Production including Food Processing and Machinery
iii) Research and Development
iv) Medical Services (as defined in Section II Definitions)
v) Warehouse/Distribution
vii) Corporate Headquarters of a Regional/National Service Center
vii) Information and Data Centers
b) The project is not included as a target industry, but has the potential of generating
additional, significant economic development opportunities to Lubbock.
3. The company must meet one of the following criteria:
a) The project will add at least $1 million in Real Property improvements, or $2 million
in new Personal Property, 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 Property improvements, or $1 million in
new Personal Property, or 15 new permanent jobs if the facility is an existing company.
4. New or existing facilities of any type herein defined, located in a designated Enterprise Zone,
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.
EXHIBIT B
2022 Industrial Tax Abatenxnt Guidelines
February 22. 2022
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 (single family and multi -family);
h) boats;
i) 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 City Council who did not have an active tax
abatement in place before becoming a member of the governing body.
7. In order for a Facility to qualify for abatement, the following conditions must apply:
a) The owner or leaseholder of Real Property must make eligible improvements to the real
property; and,
b) In the case of lessees, the leaseholder must have a lease commitment of at least five (5)
yeam
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 City in all cases where the property for which tax abatement is
applied for is within the City limits of the City. 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. 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
4
EXHIBIT B
2022 industrial Tax Abatement Guidelines
February 22, 2022
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 or a designated Enterprise Zone
as provided by V.T.C.A Gov. Code, Chapter 2303, and the tax abatement application is filed
with the City before construction begins.
10. Notwithstanding any of the requirements set forth in Section 1V(3), the Lubbock City Council
upon the affirmative vote of a 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 City to do so and will enhance the economic development of the
City. By way of example only and not by limitation the Lubbock City Council 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 City.
e) Any other evidence tending to show a direct economic benefit to the City.
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 between the City 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 Lubbock City Council 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 Lubbock City Council does not:
a) Limit the discretion of the Lubbock City Council to decide whether to enter into a specific
Tax Abatement Agreement;
b) Limit the discretion of the Lubbock City Council to delegate to its employees the authority
to determine whether or not the Lubbock City Council 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 Lubbock City
Council 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. The City shall have full authority to request any additional information from the
EXHIBIT B
20221nduoW Tax Abatemnt Guidelines
February 22, 2022
applicant that the Lubbock City Council 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:
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;
b) 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;
c) 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;
d) 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);
e) 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,
f) 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.
6
EXHIBIT B
2022 Industrial Tax Abatement Guidelines
February 22.2022
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 (aXl) of the Housing and
Community Development Act of 1974, as amended.
3. The Lubbock City Council, as required by Section 312201, 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 City.
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 Section 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 Section 3 above, the Lubbock City Council 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 City after the expiration of an agreement
entered into under V.T.C.A., Tax Code, Section 312204.
7. An application for the creation of a Reinvestment Zone shall not be granted unless the City
enters affirmative findings to Subsections a, b, and c of Section 6 above set forth.
8. At the conclusion of the public hearing herein required and upon the affirmative finding of the
Lubbock City Council as required by Section 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 312201.
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 made in accordance with V.T.C.A., Tax Code, Section
312.201 through Section 312209.
EXHIBIT B w
20221ndustrial Tax Abatement Guidelines
FeWuM 22, 2022
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 otter 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 City. 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(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 proposed 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 of improvements
to be abated. This determination is to be made consistent with the provisions of Section
IV(6) of these guidelines and criteria as hereinabove set forth.
i) Provide for the commencement date and the termination date. In no event shall the
commencement date occur prior to 90 percent completion of the project (both Real and
Personal Property). In no event shall the termination date exceed a period of ten years
from the commencement date.
j) Describe the type and proposed use of the improvements to Real Property or improvements
including:
1. The type of facility.
EXHIBIT B
2022 Industrial Tax Abatement Guidelines
February 22, 2022
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 City.
k) Provide a legal description ofthe 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 City, 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 ofthe uses ofthe 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 Lubbock City Council that the
owner is in compliance with each applicable term ofthe agreement.
q) Provide that the Lubbock City Council 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 enters into an agreement for tax abatement under
V.T.C.A., Tax Code, Section 312.204, the Lubbock City Council 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 as required by V.T.C.A Tax Code, Section
312.2041. The notice must include a copy of the proposed Tax Abatement Agreement.
3. A notice, as above described in Section 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.
EXHIBIT B_-
2022 hWustrial Tax Abaterimt Guidelines
February 22, 2022
SECTION VII. Application:
I. Any present owner of taxable property located within an affected jurisdiction may apply for tax
abatement by filing an application with the City of Lubbock. The application has to be filed
with the City prior to the construction start.
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 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 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,
4. any combination of the above.
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.
m) A statement certifying that the business, or a branch, division, or department of the
business, does not and will not knowingly employ an undocumented worker.
n) 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
10
EXHIBIT B
2022 industrial Tax Abatement Guidelines
February 22,2022
o) Information that is provided to the City 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 the City after the
agreement is executed is not confidential. (V.T.C.A., Tax Code, Section 312.003).
p) The City shall determine if the property described in said application is within a designated
Reinvestment Zone. If the City determines that the property described is 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 VIIL Investment/Jobs Documentation
1. The investment commitment in the Tax Abatement Agreement will be verified as follows:
a. The City will request the value of the Real and Personal Property from the Lubbock Central
Appraisal Value, and if the value minus the base year, meets the agreement commitment,
it will service as verification that the investment met the requirement in the agreement; or
b. If the Lubbock Central Appraisal District value, minus the base year value, does not meet
the investment commitment in the agreement, the Company will provide invoices
documenting the actual investment to verify the investment met the investment
commitment in the agreement.
2. Confirmation of the job creation requirement:
a. The company will provide the City with a copy of the State Employment report filed with
the State of Texas for the quarter ending after the date in the agreement that the jobs are
required to be created.
Job creation will be audited annually to assure retention of jobs. Each year during the City
audit of Tax Abatement Agreements, the company will provide the City with the 01 quarter
employment report filed with the State of Texas to confirm job retention. If the employment in
the 41 quarter report does not meet the requirement for retention of the created jobs, the City
may request the quarterly reports for the I It, 2ad, and 3rd quarters of that audit year to determine
compliance. The City may request and the company shall promptly provide any additional
information that the City deems necessary to confirm that the company is in compliance with
the terms of the Tax Abatement Agreement.
SECTION IX. Default Options
1. In the event that the applicant, owner or lessee has entered into a Tax Abatement Agreement to
make improvements as defined in Section IV(2) above, but fails to undertake or complete such
improvements; fails to create all or a portion of the new jobs provided by the Tax Abatement
Agreement; or is in default of any of the terms or conditions contained in the Tax Abatement
Agreement; then in such event the City shall give the applicant or owner sixty (60) days notice
of such failure. The applicant or owner shall demonstrate to the satisfaction of the City above
11
EXHIBIT B
2022 bulustrial Tax Abd cnmt Guidelines
Febmary 22. 2022
mentioned that the applicant or owner has commenced to cure such failure within the sixty (60)
days above mentioned. In the event the applicant or owner fails to demonstrate that he is taking
affirmative action to cure his failure, the City shall have three options:
(a) The City may renegotiate the Tax Abatement Agreement with the applicant or owner in
which case the current Guidelines and Criteria Governing Tax Abatement for Industrial
Projects in the City of Lubbock shall apply to the new Agreement; or
(b) The City may determine that good cause exists to cancel the Tax Abatement Agreement
and all abatement of taxes shall terminate immediately; or
(c) The City may terminate the Tax Abatement Agreement and recapture taxes abated under
Section X, Recapture.
2. In any of the three options in Paragraph 1 above, the City shall determine whether default has
occurred by the applicant or owner in the terms and conditions of the Tax Abatement Agreement
and shall so notify all other affected jurisdictions.
SECTION X. Recantmre
In the event that any type of facility 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 ISO 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 the City by no later than January 3Is' of the following year. Taxes
abated in years prior to the year of termination shall be payable to the City 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 City 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 event beyond the
control of applicant or owner. In the event that applicant or owner meets this burden and the
City 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 one M 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 the City by no later than January 31 ° of the following year. Taxes abated in years
prior to the year of termination shall be payable to the City within sixty (60) days of the date of
termination. The one year time period, hereinabove mentioned, shall commence upon written
notification from the City to the applicant or owner.
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 or fails to create all or a portion of the number of new jobs
provided by the Tax Abatement Agreement, then in such event the City shall give the applicant
or owner sixty (60) days notice of such failure. The applicant or owner shall demonstrate to
the satisfaction of the City, 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
12
EXHIBIT B
2022 Industrial Tax Abatemmt Guidelines
February 22, 2022
terminate. Taxes abated during the calendar year in which termination takes place shall be
payable to the City by no later than January 315' of the following year. Taxes abated in years
prior to the year of termination shall be payable to the City within sixty (60) days of the date of
termination.
3. In the event that the City 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 City, 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 City 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 the City by no later than January 31a of the following year. Taxes abated in years
prior to the year of termination shall be payable to the City 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 the City, 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 Section, takes place shall be payable to the City
by no later than January 311 of the following year. Taxes abated in years prior to the year of
termination shall be payable to the City within sixty (60) days of the date of termination.
In the event that the applicant or owner, who has executed a Tax Abatement Agreement with
the City, 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 City to the applicant or owner. Taxes abated
during the calendar year in which termination, under this Section takes place shall be payable
to the City by no later than January 3 Is' of the following year. Taxes abated in years prior to
the year of termination shall be payable to the City within sixty (60) days of the date of
termination.
6. The date of termination as that term is used in this Section iX shall, in every instance, be the
60* day after the day the City 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
applicant or owner within the sixty (60) day notice period, the applicant or owner shall be
responsible for so advising the City and obtaining a release from the notice of default from the
City, failing in which, the abatement remains terminated and the abated taxes must be paid.
In every case of termination set forth in Paragraphs 1, 2, 3, 4, and 5 above, the City shall
determine whether default has occurred by the applicant or owner in the terms and conditions
of the Tax Abatement Agreement and shall so notify all other affected jurisdictions.
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.CA., Tax Code, Section 33.01 will apply.
SECTION XI. Miscellaneous:
1. Any notice required to be given by these criteria or guidelines shall be given in the following
manner.
191
EXHIBIT B
2022industrial Tax Abatement Guidelines
FebmM 22.2022
a) To the applicant or owner: written notice shall be sent to the address appearing on the Tax
Abatement Agreement.
b) To the City: 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 City which levies taxes of the amount of assessment.
3. Upon the completion of improvements made to any type of Facility as set forth in Section
VIII(l) of these criteria and guidelines a designated employee or employees of the City having
executed a Tax Abatement 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 the City.
5. These guidelines and criteria adopted by the City Council are effective for two years from the
date adopted 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 event the affected jurisdiction elects by
resolution to become eligible to participate in tax abatement, then such affected jurisdiction
shall adopt guidelines and criteria by separate resolution forwarding a copy of both resolutions
to all other affected jurisdictions.
7. These guidelines only apply to the City of Lubbock and any company wishing to apply for tax
abatement from other taxing jurisdictions will need to contact the applicable taxing jurisdiction
for their criteria and guidelines and requirements for applying for tax abatement.
8. 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.
9. The guidelines and criteria once adopted by the City may be amended or repealed by a vote of
three -fourths (3/4) of the members of the Lubbock City Council during the two-year term in
which these guidelines and criteria are effective.
14
EXHIBIT C: Leprino Foods Company
Application for Tax Abatement
City of Lubbock Tax Abatement Agreement — Leprino Foods Company Page 11
EXHIBIT C
Wp InoFoods
1830 West 39* Avenue
Denver, Co 80211-222S
February 21, 2022
Via Federal KVress 7760 9859 4721
Mrs. Cheryl Brock
Director of Financial Planning and Analysis
City of Lubbock Ferro Department
1314 Avenue K
96 Floor
Lubbock, TX 79401
Re. City of Lubbock Application for Industrial Tax Abatement
Address - 4301 E 19f° (Main Plant) and 4502 E Ob (Wastewater Plant)
Dear Mrs. Brock.
Attached is our application for industrial tax abatement for the above referenced locations. Also included
are the following attachments:
• Attachment 1— Description of Applicant Company.
• Part U — Project Information, Legal Description.
• Attachment 2 — Site map slowing project location.
• Attachment 3 — Project description and equipment listing.
• Attachment 4 — Distribution of products outside of Lubbock County
• Attachment 5 — Lubbock Central Appraisal District Assessed value, and Wmishoot "lcuiatmg
Leprino's portion of the square feet of respected parcels (Parcel R136647 and Parcel R318755).
Please note:
Part 1— Application Information, Annual Sales; Leprino does not maintain annual sales by location.
Page 3 — Estimated Appraised Value on Site; the estimated values used are based on completion of the
project
Please call me at (303) 480-2662 if you have any questions. Thank you for your time in this matter.
Sincerely,
Cb4kh�
Colleen Kershisnik
Senior Tax Manager
1
'• EXHIBIT C
1 dty
ubbo k
TEXAS City of Lubbock
Application for Industrial Tax Abatement
'! his application should be filed prior to the begaming of construction or the purchase of equipment. If applying for a tax abatement in a
jurisdiction other than City of Lubbock, a separate application must be completed for all other taxing jurisdictions. This application will
become part of the Tax Abatement Agreement and any knowingly Use representations will be gm mda for the voiding of the agreement.
An original copy of this request should be submitted to Mrs. Cheryl Brock, Director of Financial Planning and Analysis, Finance
Department, City of Lubbock, 1314 Avenue K, 91 Floor, Lubbock, TX 79401.
Part I - Applicant Information
Company Name: I adnaFnndc COMPannv
Telephone: 303,490-9669 _.
Annual Sales: NUA
Mailing Address:1830 W 1Aa' A=- Tl noes l'.Q RQ71 I
Corporation
Partnership
Application Date 02 /21 /2022
Physical Address: 43Qi E i 0 main 1h=)
And 4502 E 40 (Wastewater Plant)
Current Number of Employees: t
Employees in City Limits: I
Years in Lubbock
Proprietorship
Attachment 1: Attach a description of the Applicant Company, including a brief history, corporate structure,
business plan, and annual statement, if available. See attached
Part II - Project Information
Location Address:d1nr R 191h and dSr» R dm, r ubbock Zipcode:74403
School District:
Legal Description: See a ffached
Attachment 2: Attach site map showing project location and showing proposed construction if applicable
Project Description:y New Construction Expansion Modernization
Attachment 3: Attach statement fully explaining project, describe existing site and improvements, describe all
proposed improvements andprovide list of improvements and equipment for which abatement is requested, and
list of any tangible personal property presently existing on the Real Property if it is an existing facility.
Is the site located in an Enterprise Zone? E Yes No
Salon A — Facllity Information
Type of Facility/abatement:
E Advanced Technologies and Manufacturing WarehousaUstribution
Research and Development Value-added Agriculture Production
Medical Services Information and Data Centers
Corporate Headquarters — Regional/National Service Center
The project is not included as a target industry, but has the potential of generating additional, significant
Industrial Tax Abatement Application page I
economic aevelopment opportunuties to Lubbock
EXHIBIT C
Describe product or service to be provided:
Is the company a producer, manufacturer, or distributor of goods and services of which 50 percent or more are
distributed outside Lubbock. E Yes No
Attachment 4: Provide documentation demonstrating that the facility will distribute or manufacture goods and
services of which 50 percent or more are distributed outside of Lubbock County,
Is the company applying for tax abatement E New Company to Lubbock Existing Company
The project meets one of the criteria in the Guidelines and Criteria Governing Tax Abatement for Industrial
Projects, Section IV. 3. X Yes No
Section B — Base Year Value
Attach a statement of the assessed value of the Real Property, Facility, or existing facility for the base year from
the Lubbock Central Appraisal District.
Attachment S Lubbock Central Appraisal DistrictAssessed Value See attached schedule
Section C - Variance
Is the applicant seeking a variance? Yes No
If "yes," attach letter requesting and justifying the variance, with supplemental information.
PART III - ECONOMIC INFORMATION
Construction Estimate:
Start Date: Simmer 2022
Completion Date: _ 2n26
Modernization:
Estimated current economic life of structure
Added economic life from modernization
Permanent Job Creation/Retention:
Current employment:
Contract Amotimt: S227,828.490
Peak Construction J
4o years
40 years
Jobs to be Retained:
Jobs created at opening: inn By year 7-MA
If existing facility, what is the current plant payroll: $ N/A
Estimated amount of new payroll:
$ 35AQ 000
W681<ial Tax Abet= ►t Applicasion Page 2
EXHIBIT C
Esdmated AppndW Vahne On Site
Land
Improvements
Personal
Wppefty
Value on Janumy 1 weceding abatement
$420.629
Estimated value of new abatable immovements
NA
$76.W 000
$539,178.350
Estimated value of properties not subject to abatement
$37,400,000
Estimated value of property after improvements
Do you certify that this business (including any branch, division, or department of this business) does not
currently, and will not knowingly in the future, employ an undocumented worker! u Yes No
Company Representative to be Contacted:
Colleen Kershisnik
Name
Sr Tax Manager Mark Benson. Chief Procurement Officer
Title VP Government Affairs
Title
1830 W 3816 Ave. Delver CO 80211 303-480-2662
Address Phone Number
cckesshisnikCa7leprinofoods.com mbenson01wrinofoods com
e-mail e-mail
Industrial Tax Abatement Application Page 3
EXHIBIT C
City of Lubbock Leprino Foods Company
Application for Industrial Tax Abatement
Attachment is Description ofApplicant Company
Leprino Foods Company, headquartered in Denver, Colorado, is a world leader in the
production of premium -quality dairy food and ingredients. One of the largest producers of
mozzarella cheese in the world, Leprino Foods is also a leading supplier of lactose, whey protein
and sweet whey.
Starting as a small, family -owned market selling grocery items and handmade Italian cheeses in
Yggo, Leprino's cheese was originally sold under the "Gina Marie" brand, a contraction of the
Italian word "Regina" meaning queen. The name symbolized the highest quality and standards
of Leprino Foods' products. Today, the company remains family -owned, employs approximately
5,000 people worldwide and has global sales in over ss+ countries. We have nine manufacturing
facilities across the US and an expanding global footprint including a joint venture with Glanbia
PLC in the U.K., with state-of-the-art plants in Llange5u in Wales; Magheralin in Northern
Ireland; and Portlaoise in the Republic of Ireland. In South America, the company operates a
manufacturing facility in Tapejara, Brazil. The company also has a sales and culinary innovation
hub in Singapore, and representative offices in Shanghai and Tokyo. For more information,
please visit .le
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EXHIBIT C
City of Lubbock — Awlication for Industrial Tax Abatement
Leprino Foods Company
4301 E 1911, Lubbock TX 79403 (Main Plant)
4502 E 41', Lubbock TX 79403 (Wastewater Treatment Plant)
Part II — Project Information
Legal Description:
METES AND BOUNDS DESCRIPTION of a 158.949 acre tract of land, out of a 252.5 acre
tract described under County Clerk File No. 2020059091 of the Official Public Records of
Lubbock County, Texas and a 155.8 acre tract described under County Clerk File No.
2020059092 of the Official Public Records of Lubbock County, Texas, located in Section 6,
Block O, E. L. & R. R. Railroad Company Survey, Lubbock County, Texas, and being further
described as follows:
BEGINNING at a 1/2" iron rod found in the East line of said Section 6, at the most Easterly
Northeast corner of said 252.5 acre tract and this tract, which bears S. 01 °25'02" W. a distance of
544.55 feet from a 3/8" iron rod found at the Northeast corner of Section 6, Block O, E. L. & R.
R. Railroad Company Survey, Lubbock County, Texas;
THENCE S. 01 °25'02" W., along the East line of said Section 6 and the Eastern boundary of said
252.5 acre tract, a distance of 2116.29 feet to a 1/2" iron rod found at the Northam corner of a
160.0 acre tract (Southeast Quarter of said Section 6) described in Volume 3401, Page 326 of the
Real Property Records of Lubbock County, Texas, the Southeast corner of said 252.5 acre had
and the most Easterly Southeast comer of this tract, same being the Southeast corner of the
Northeast Quarter of said Section 6;
THENCE N. 88°36'42" W., along the South line of the Northeast Quarter of said Section 6, the
Northern boundary of said 160.0 acre tract and the Southern boundary of said 252.5 acre tract, at
30.00 feet pass a 1/2" iron rod with cap marked "HRA" found in reference, continuing for a total
distance of 2674.49 feet to a 1/2" iron rod with cap marked "Smith" found at the mid corner of
said Section 6, the Northwest comer of said 160.0 acre tract, the Northeast comer of said 155.8
acre tract and a corner of this tract;
THENCE N. 88°15'O5" W. a distance of 749.92 feet to a 1/2" iron rod with cap marked "HIW
found at a corner of this tract;
THENCE N. 46°52'06" E., a distance of 1062.59 feet to a 1/2" iron rod with cap marked "HRA"
found in the West line of the Northeast Quarter of said Section 6, at a corner of this tract;
THENCE N. 01 *59'13" E., along the West line of the Northeast Quarter of said Section 6, at
1869.10 feet pass a 1/2" iron rod with cap marked "HRA" found in the South line of a 40 foot
right-of-way easement described in Volume 215, Page 190 of the Deed Records of Lubbock
County, Texas, continuing for a total distance of 1909.10 feet to a "MAG" nail with washer
EXHIBIT C
marked "HRA" found in the North line of said Section 6 and the Northern boundary of said
252.5 acre tract, at the most Northerly Northwest comer of this tract;
THENCE S. 88°39419" E., along the North line of said Section 6 and the Northern boundary of
said 252.5 acre tract, a distance of 1848.06 feet to a "MAG" nail with washer marked "HRA"
found at the most Northerly Northeast comer of said 252.5 acre tract and this tract;
THENCE S. 01 025'02" W., at 40.00 feet pass a 1/2" iron rod with cep marked "HRA" found in
the South line of said 40 foot right-of-way easement, continuing for a total distance of 544.50
feet to a 1/2" iron rod with cap marked "HRA" found at an "ell" comer of this tract;
THENCE S. 88039105" E., at 770.00 feet pass a 1/2" iron rod with cap marked "HRA" found in
reference, continuing for a total distance of 800.00 feet to the Point of Beginning.
SAVE AND EXCEPT THE FOLLOWING DESCRIBED TRACT OF LAND:
METES AND BOUNDS DESCRIPTION a 0.0430 acre tract, being that same tract described in
Volume 1771, Page 194 of the Deed Records of Lubbock County, Texas, located in the North
Half of Section 6, Block O, E. L. & R. R. Railroad Company Survey, Lubbock County, Texas,
and being further described as follows:
BEGINNING at a 1/2" iron rod with cap marked "HRA" found in the South line of a 40 foot
right-of-way easement described in Volume 215, Page 190 of the Deed Records of Lubbock
County, Texas, at the Northeast comer of this tract, which bears N. 88°39'19" W. a distance of
2480.47 feet and S. 01 °20'41 " W. a distance of 40.00 feet from a 3/8" iron rod found at the
Northeast comer of Section 6, Block O, E. L. & R. R. Railroad Company Survey, Lubbock
County, Texas;
THENCE S. 0104&55" W. a distance of 25.00 feet to a 1/2" iron rod with cap marked "HRA"
found at the Southeast corner of this tract;
THENCE N. 88°39'19" W. a distance of 75.00 feet to a 3/8" iron rod found at the Southwest
corner of this tract;
THENCE N. 01 °4655" E. a distance of 25.00 feet to a 1/2" iron rod found in the South line of
said 40 foot right-of-way easement, at the Northwest comer of this tract;
THENCE S. 88"39'19" E., along the South line of said 40 foot right-of-way easement, a distance
of 75.00 feet to the Point of Beginning.
Bearings are relative to Grid North, Texas Coordinate System of 1983, North-Central Zone, 2011
(epoch 2010.0). Distances are Surface, U.S. Survey Feet.
2
EXHIBIT C
METES AND BOUNDS DESCRIPTION of a 101.006 acre tract of lead out of Section 6, Block O, E. L. & R. R
Railroad Company Survey, Lubbock County, Texas, being further descn1W as follows:
BEGINNING at a "MAG" nail with washer marked "HItA" found at the Southwest comer of this tract,
which bears S. 88°39'02" E. a distance of 981.90 feet from the Southwest comer of said Section 6, Block
O, E. L. & R. R. Railroad Survey, Lubbock County, Texas;
THENCE N. 01 *4&11" E. a distance of 2661.73 feet to a 1/2" iron rod with cap marked "HRA" found in
the North line of the Southwest Quarter of said Section 6, for the Northwest corner of this tract;
THENCE S. 88°15'05" E., along the North line of the Southwest Quarter of said Section 6 a distance of
1656.51 feet to a 1/2" iron rod with cap marked "Smith" found at the mid corner of said Section 6, for the
Northeast comer of this tract;
THENCE S. 01 *45'55" W., along the East line of the Southwest Quarter of said Section 6 a distance of
2650.12 feet to a railroad spike found at the Southeast comer of the Southwest Quarter of said Section 6
and the Southeast corner of this tract;
THENCE N. 88°39'02" W., along the South line of said Section 6 a distance of 1656.76 feet to the Point
of Beginning.
SAVE AND EXCEPT THE TWO FOLLOWING DESCRIBED TRACT OF LAND:
METES AND BOUNDS DESCRIPTION of a 1.007 acne tract described in Volume 5686, Page 324 of
the Real Property Records of Lubbock County, Texas, located in the Southwest Quarter of Section 6,
Block O, E. L. & R. R. Railroad Company Survey, Lubbock County, Texas, being further described as
follows:
BEGINNING at a 1/2" iron pipe found at the Southeast comer of this tract which beats N. 88039102" W. a
distance of 60.67 feet and N. 01 °20'S8" E. a distance of 28.34 feet from a railroad spike found at the
Southeast corner of the Southwest Quarter of Section 6, Block O, E. L. & R. R. Railroad Company
Survey, Lubbock County, Texas;
THENCE N. 98036141" W. a distance of 159.58 feet to a 1/2" iron pipe found at the Southwest comer of
this tract;
THENCE N. 0104617" E. a distance of 275.00 feet to a 1/2" iron rod found at the Northwest comer of
this tract;
THENCE S. 88°3641" E. a distance of 159.58 feet to a 1/2" iron rod found at the Northeast corner of this
1w;
THENCE S. 0104611711 W. a distance of 275.00 feet to the Point of Beginning.
Bearings are relative to Grid North, Texas Coordinate System of 1983, North-Central Zone, 2011(epoch
2010.0). Distances are Surface, U.S. Survey Feet.
EXHIBIT C
City of Lubbock
Application for Industrial Tax Abatement
Attachment 3: Detailed Description of the Project
Leprmo Foods Company
Lep&o Foods is building a new 85o,000 square foot Mozzarella Cheese and Nutrition
manufacturing facility in Lubbock, Texas. The new Manufacturing Plant will process 4 million
pounds of mills per day in the first Phase and expand to a total of 8 million pounds of milk per
day. The large volume of milk required for an operation of this size will be supplied by local
Dairy Farmers.
Within the facility will be Leprino Foods proprietary Cheese making equipment, as well as large
scale Whey Nutrition processing systems. The factory will be monitored and controlled through
leading edge Automation and Instrumentation and supported by World Class Maintenance
Programs.
The site will be constructed East of the 289 Loop Rd and to the North of Fast Country Rd 67oo.
The address of the main plant is 43oi E i9th, and the wastewater treatment plant is 4502 E 4th,
Lubbock, TX T9403.
It is anticipated that construction would begin in 4Q 2022 with commercial operations
commencing in iQ 2o25.
It is anticipated that the suite of products made in the plant would be: Mozzarella and Provolone
Blocks; Shredded Pizza Cheese; Whey Protein Powder; and Sweet Whey Powder. The finished
products will be distributed throughout the United States and Internationally to satisfy
Leprino's customers Globally.
Below is a list of major equipment:
• Milk Receiving Bays
• Gas Fired Boilers
• Refrigeration Compressors
• Cooling Towers
• Electrical Transformers
• Switchgear
• Air Compressors
• Heat Exchangers
• Pasteurizers
• Pumps
• Cheese Vats
• Liquid Silos
• Starter Culture Tanks
• Brining Equipment
EXHIBIT C
• Powder Handling Equipment
• Block Molding Equipment
• Pikm Packaging equipment
• Cheese Shredding equipment
• Large scale freezers
• Conveyors
• Palletizers
• High Speed Fillers
• Case Packing equipment
• Separators
• Membrane Systems
• Evaporators
• Spray Dryers
• Powder Packaging equipment
• Warehouses
• Waste Water Operations
• Instrumentation equipment
• Controls equipment
• piping
Additional infrastructure to support the site will include:
• Site development / roads
• Utility pipes, electrical substation
• Office buildings
2
EXHIBIT C
Leprino Foods Company
City of Lubbock
Application for Industrial Tax Abatement
Attachment 4: Leprino will distribute or manufacture goods and services of
which 5o percent or more are distributed outside of Lubbock
County.
Leprino is the largest mozzarella cheese producer in the world, and one of the largest producers
of whey and other dairy products. These dairy products —including ones produced at the
forthcoming Lubbock facility —will be distributed and sold widely across the U.S. and potentially
on an international scale. While Leprino has customers in Lubbock, the vast majority of dairy
products (more than 95%) manufactured at the Lubbock facility will be sold to customers
outside of Lubbock County.
City of Lubbock
Application for kWkmbbl Tax Abotenment - Lgwsm Foods CmWw
WBBOCK CENTRAL APPRAISAL DISTRICT - LAND VALUE AS OF 2=1 PER ASSESSORS RECORD
Section W Base Vaar Value, Attachment S
Ateedanait s
TOTALAPPRAISED VALUE
APPRAISED
Noce PARCEL NUMBER ACRES
SQ FT
PER ASSESSOR
ACRES
SQ FT
LFC mum
REMAINDER VALUE
(a) R136647 13L21
5,719.864
$
260,253
LFC PORTION
10L006
4,399,821
$ 200.191
4ovrobcdrdmwo Oft t $ 1,983.48
$ 0.0455
REMAINDER
30"
1,3WAX3
$ 60,062
131.310
51719A"
200,191
60 S 260
$ -
(1)) mum 249.841
W W,074
$
346"
VCPORTION
m.940
6,923,426
$ 220,437
wsnoloA $ 1,3"
$ 0m18
REMAINDER
90.901
31959.6"
126,072
TOTAL
2"."1
W M.074
$ MU7
S 326=-
$
GM762
LAC 70TAL
259.946
100,248
420,628
NONE: Theabovereferri penxk:
00
(a)
I17P
7
(b) htEDa:l/lubbnckcad WeMeefto
a117PrenMKNkkReiIQ=-R318755
0
9
w
s
EXHIBIT C
`LUBBOCK CENTRAL APPRAISAL DISTRICT
Property Owner
Property Address Tax Year 2021 Assessed Value
R318755 LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE INC
E 4TH ST, LUBBOCK, TX 79403 2021 � ., $346,509
2021 GENERAL INFORMATION
2021 VALUE INFORMATION
Property Status
Acute
Improvement Homesite Value
$0
Property Type
Real
Improvement Non-Homesite Value
_ $0
Legal Description
BILK 0 SEC 6 AB 1407 TR 1 C & RR1 C AC: 249.641
Total Improvement Market Value
$0
Neighborhood
1001- Roosevelt Lsd
Account
AC56006.91407 30000.ODO
Land Homesite Value
Related Properties
R136696
Land Non-Homesite Value
$346,609
Map Number
596
LandNricukural Market Value
$0
2021 OWNER INFORMATION
Total Land Market Value
$346,509
Owner Name
LUBSOCK ECONOMIC DEVELOPMENTALLIANCE INC
Owner ID
00256677
Total Market Value
$346,509
Exemptions
Exempt -Governmental
Agricultural Use
$0
Percent Ownership
100%
Timber Use
$0
Mailing Address
15W BROADWAYt1FL 6 LUBSOCK, TX 79401
Total Appraised Value
$346,509
Agent
-
- _ Homestead Cap Loss__
f0
Total Assessed Value
$346509
2021 ENTITIES & EXEMPTIONS
Special Exemptions EKG -Exempt -Governmental
TAXING ENTITY EXEMPTIONS
-
EXEMPTIONS AMOUNT
TAXABLE VA —E
TAX RATE PER 100
TAX CEILING
GLB- Lubbock County
$0
$0
035999 �—
0 —
HSP- Lubb Cnty Hospital
$0
$0
0.103164
0
SRSRoosevelt
ISD
$0
$0
1.0051
0
WH
WHP- Hi Plains Water
Water
----
$0
$0
0.0051
0 I1
_ -----
TOTALS
—
- -- -
--
1.736154
- -- -- -
2021 LAND SEGMENTS
LAND
SEGMENT TYPE
STATE CODE - -
1- Irr Crop
XV - Other Exemptions Ind public prop,
rellSio , etc.
2 - Irr Crop
XV - Other Exemptions Ind public prop,
religious, etc
3 - Dry Crop
XV - Other Exemptions Intl public prop,
religious, etc.
4 - Dry Crop
XV - Other Exemptions Intl public prop,
religious, etc.
5 - Commercial
XV - Other Exemptkuts Ind public prop,
_--
religiow, etc.
TOTALS
VALUE HISTORY
YEAR
! IMPROVEMENT
I LAND
[ MARKET
2020
$0
$SW
$SOD
2019
$0
$500
$500
2018
$0
$SW
$SOD
2017
$0
$SOO
$SOO
2016
$0
$SW
SSW
SALES HISTORY
HOMESII E
MARKET
VALUE
AG
USE
TIM
USE
LAND SIZE
No
$315,682
$0
$0
157.841000 acres
No
$0
$0
$0
42.159000 acres
No
$28,297
$0
$0
34.341000 acres
No
$1,530
$0
$0
15.000000 acres
No
$1,000
$0
$0
0.500000acres
AG MARKET AG USE I APPRAISED r HS CAP LOSS ASSESSED
$199A73
$72,111
$72,611
$0
$72,611
$1"A73
$83,697
$84,187
$0
$84.187
$199,473
$90,766
$91,266
$0
$91,266
$199A73
$53,346
$S3,846
$0
$53.846
$199,473
$62.901
$63A01
$0
$63A01
i'a a
DEED DATE
42/29R020
SELLER I BUYER ---- EXHIBIT INSTR#t_ �AVOLLIME/PAGE
CARLTON, WILLIAM H. Jr LUBBOCK ECONOMIC DEVELOPMENT ALLUINCE INC 2020.59091
MR W FIREWORKS INC
CARLTON, WILLIAM H, jr
2010-2205
;5/5
*.
EXHIBIT C
LUBBOCK CENTRAL APPRAISAL DISTRICT
Property Owner
Property Address Tax Year 2021 Assessed Value
R136647 LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE INC
- 2oii- t ® $260,253
2021 GENERAL INFORMATION
2021 VALUE INFORMATION
Property Status
Active
Improvement HOmesite Value
$0
Property Type
Real
Improvement Non-Homesite
$0
Legal Description
BLK O SEC 6 AS 1400 TR A LESS W/PT ACS AC:131.31
-------- ------------ Value
Neighborhood
1001- Roosevelt Isd
Total Improvement Market
$0
Value
Account
AC56006-91400-SOOOO-000
Related Properties
R3D6056
Land Homesite value
$0
Map Number
596
Land Non-Homesite Value
$260,253
2021 OWNER INFORMATION
Land _A&ricuRural Market value
_ $0
Owner Name
LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE INC
Total Land Market Value
$260,2S3
Owner 1D
00256677
Exemptions
Exempt - Governmental
Total Market Value
$260,253
Percent Ownership
100%
Agricultural Use
$0
MaiUng Address
1500 BROADWAY $FL 6 LUBBOCK. TX 79401
Timber Use
$0
Agent
-
Total Appraised Value
$260,253
Homestead Cap Loss
_ _ 4j0
Total Assessed Value
$260.29
2021 ENTITIES & EXEMPTIONS
Special Exemptions EXG-Exempt-Govenirnental
EXEMPTIONS --- TAXABLE TAX RATE PER TAX
TAXING ENTITY ,— EXEMPTIONS AMOUNT -_— j _ VALUE 100 1 CEILING
�GLB- Lubbock County $0 $0 0.35999 0
HSP- Lubb Cnty Hospital $O $0 0.103164 0
SRS- Roosevelt ISD $0 $0 1.2679 0
�WHP- HI Plains Water --------______— — $0 $0 - 0.0051 T- 0 —
TOTALS 1.736154
2021 LAND SEGMENTS
LAND MARKET AG TIM----
SEGMENT STATE CODE — HOMESTtE VALUE USE USE LAND SIZE
TYPE 4-I
1 - Irr Crop XV - Other Exemptions Inca public No $257,740 $0 $0 128.870000 acres
prop, religious, etc.
2 - Dry Crop XV - Other Exemptions incl public No $2,513 $0 $0 2.440000 acres
-•__-•--..__._Prof, religious, etc. _
TOTALS LZI
•------------•-•----_.—__.-----_----1311311MIM awes ---
VALUE HISTORY ��-
YEAR IMPROVEMENT LANDKET �AG MARKET AG USE APPRAISED HS CAP LOSS ASSESSED
2020 $0 $0 $0 $260,253 $62,603 $62,603 $0 $62,603
2019 $0 $0 $0 $260,253 $72,208 $72,208 $0 $72,208
2018 $0 $0 $0 $260,253 $80,314 $80,314 $0 $80,314
2017 $0 $0 $0 $214,710 $50,425 $50,425 $0 $50.425
i 2016 $0 $214,710 $214,710 $0 $0 $214,710 $0 $214,710
EXHIBIT
SALES HISTORY
DATE
SELLER -
BUYER - _ ---
INSTR #
i
12/29/2020
EPPES, CORY GORTON
+-
LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE
2020-
INC
S9092
6/28/2011
EPPES, BILL G
EPPES, CORY GORTON
2011-
21320
10/9R004
EPPESJESSIE MAY
EPPES, BILL G
2004-
SATE
47948
VOLUME/PAGE
9492/193
5%5