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HomeMy WebLinkAboutResolution - 4875 - Agreement - Economy Mills Ltd - Industrial Tax Abatement, 211 15Th Street - 06_22_1995Resolution No. 4875 June 22, 1995 Item #13 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement and all related documents by and between the City of Lubbock and Economy Mills, Ltd., for industrial tax abatement, which Agreement is attached hereto and shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 2 ATTEST: Betty M. Johnson, C-1W Secretary APPROVED AS TO CONTENT: Beesinger, Interim ness Development APPROVED AS TO FORM: of Dbdald G. Vandiver, First Assistant City Attorney DGV:da ccdocs/a-econmy.res June 6, 1995 Resolution No. 4875 June 22, 1995 Item #13 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 22nd day of June , 1995, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Economy Mills, Ltd. (hereinafter called "Company"); WITNES SETH: WHEREAS, City did receive from Company on the 19th day of May, 1995, an application for tax abatement for the construction of a new modernized manufacturing facility to be located at 211 15th Street, which is further described as Original Town Lubbock, Block 189, Lots 1-10, Lubbock, County, Texas; and WHEREAS, upon review of the above application it was determined that the facility will be located in the North Enterprise Zone designated by the City in Ordinance No. 9591 covering the above described property; and WHEREAS, the Guidelines and Criteria for Tax Abatement for Industrial Projects included in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by Resolution No. 4288 of the City Council of the City of Lubbock; and WHEREAS, the City did comply with all the requirements set forth in V.T.C.A., Tax Code, Section 312.201; and WHEREAS, the City did comply with all of the criteria and guidelines as set forth in the Guidelines and Criteria governing Tax Abatement within the taxing units of Lubbock County, said guidelines having been adopted by Resolution No. 4288 of the City on October 14, 1993; and WHEREAS, the City did thereafter pass Ordinance No. 9591 creating an enter- prise zone for commercial and industrial tax abatement, said zone including Original Town Lubbock, Block 189, Lots 1-10, of Lubbock County; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.2011 provides that designation as an enterprise zone constitutes designation as a reinvestment zone without further action; and WHEREAS, the application received by City from Company is an application for the construction of a new facility; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a pur- pose is to be included in the guidelines for tax abatement and to be eligible for such treat- ment; and WHEREAS, Section IV of the Guidelines and Criteria for Tax Abatement for Industrial Projects in Designated Enterprise Zones adopted by the City Council by Resolution No. 4288 does recognize construction of new modernized facilities as being eligible for tax abatement status; and WHEREAS, Section IV (9)(d) provides for variance of the Guidelines and Criteria Governing Tax Abatement by the affirmative vote of three -fourths of the governing body of an affected jurisdiction; and WHEREAS, the application does not meet the specific standards of Section N (9)(c)(2) in that the replacement and modernization will not cause 25% increase in the existing workforce; and WHEREAS, the City Council does hereby find that all of the Guidelines and Cri- teria established for Tax Abatement within the City of Lubbock, as adopted by Resolution No. 4288, have otherwise been met by Company; and WHEREAS, the City Council finds that variance of the requirements of Section IV (9)(c)(2) and entering into this agreement to abate taxes on the property described in Exhibit "A" will contribute to the retention of existing jobs within the affected jurisdiction, and enhance economic development within the designated Enterprise Zone; AGREEMENT -- ECONOMY MILLS, LTD. PAGE 2 WHEREAS, variance of the requirement that the replacement and modernization will cause a 25% increase in the existing workforce is hereby granted; NOW THEREFORE, for and in consideration of the premises and of the mutual terms, covenants and conditions herein contained the City and Company do hereby agree as follows: SECTION 1. Term. This Agreement shall remain in force and effect for a period of five (5) years from the date of its execution and shall expire and be of no further force and effect after said date. SECTION 2. Base Year. The base year applicable to real property, which is the subject of this Agreement, shall be 1995, and the assessed value of the real property shall be the assessed value applicable to such property for said year. SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in accordance with the assessed value of such property for the base year. Base year taxes upon the real property are thus not abated. SECTION 4. Abatement of Increase in Base Year Tax. In accordance with V.A.T.C., Tax Code, Section 312.204 real property taxes applicable to the real property subject to this Agreement shall be abated only to the extent said value for any given year within the term of this Agreement exceeds the base year taxes hereinabove set forth. SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section IV(5) of the Guidelines and Criteria for Tax Abatement within the jurisdictions of the taxing units of Lubbock County and heretofore adopted by the City Council by Resolution No. 4288 is incorporated by reference herein as if fully set out in this Agreement and fully describes the property ineligible for tax abatement. SECTION 6. Exemption from Tax. The City covenants and agrees to exempt from taxation, in accordance with Section 4 above, the following properties: (a) All proposed improvements to be placed by Company upon Original Town Lubobck, Block 189, Lots 1-10, of Lubbock County, which proposed AGREEMENT -- ECONOMY MILLS, LTD. PAGE 3 improvements are set forth in a plat of the above tract of land, attached hereto as Exhibit "A" and made a part hereof. (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "A". (c) It is further understood that all items affixed to the improvements placed upon the real property identified in Exhibit "A" including machinery and equipment shall be considered part of the real property improvement and taxes thereon shall be abated in accordance with the provisions of subpara- graph (a) above set forth. SECTION 7. Economic Qualification. It is hereby found by the City that Com- pany will expend funds necessary to qualify for tax abatement by constructing a new modernized facility and purchasing new equipment, and further that the Company will retain existing jobs. The requirement to increase employment by 25% is waived pursuant to Section IV (9)(d). SECTION 8. Value of Improvements. Company intends to expend approximately one hundred fifty thousand ($150,000) dollars in building related structural improvements and four hundred fifty-two thousand and fifty ($452,050) in new equipment to be located within the enterprise zone created by Ordinance No. 9591. SECTION 9. Job Retention. Company agrees within twelve (12) months from the date of execution of this Agreement that it will retain ten (10) full-time equivalent jobs within the Company plant to be located within Original Town Lubbock, Block 189, Lots 1 - 10, Lubbock County and use its best efforts to maintain a minimum of ten (10) jobs during the term of this Agreement. SECTION 10. City Access to PropgM. Company covenants and agrees that City shall have access to the property, which is the subject matter of this Agreement, during normal business hours and that municipal employees shall be able to inspect the property AGREEMENT - ECONOMY MILLS, LTD. PAGE 4 to insure that the improvements are being made in accordance with the terms and condi- tions of Company's application for tax abatement and this Agreement. SECTION 11. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate 100 percent of taxes on eligible property. SECTION 12. Commencement Date. This Agreement shall commence upon the date of its execution, which date is hereinafter set forth, and shall expire five (5) years after such date. SECTION 13. Type of Improvements. The Company proposes to construct a new modernized manufacturing facility as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the 1 st day of July, 1995, and shall be completed within approximately six (6) months from said date. The Company may request an extension of the above date from City in the event circumstances beyond the control of Company necessitates additional time for com- pletion of such improvements and such consent shall not unreasonably be withheld. SECTION 14. Drawings of Improvements. Company shall furnish City with one set of as built plans and drawings of the improvements to be made pursuant to the terms of this Agreement. SECTION 15. Limitation on Use. Company agrees to limit the use of the prop- erty set forth in Exhibit "A" to commercial and/or industrial uses as those terms are defined in the zoning ordinances of the City of Lubbock and to limit the uses of the prop- erty to uses consistent with the general purpose of encouraging development of the enter- prise zone during the term of this agreement. SECTION 16. Recapture. The Company agrees to be bound by and comply with all the terms and provisions for recapture of abated taxes in the event of default by Com- pany as set forth in Guidelines and Criteria for Tax Abatement adopted by Resolution No. 4288 of the City Council of the City of Lubbock. AGREEMENT - ECONOMY MILLS, LTD. PAGE 5 SECTION 17. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK City Manager P.O. Box 2000 Lubbock, Texas 79457 ECONOMY MILLS, LTD. Claude Tatum, II P. O. Box 1737 Lubbock, Texas 79408 SECTION 18. Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as it has been finally passed and approved. EXECUTED this 22nd ECONOMY MILLS, LTD. A Texas Corporation ATTEST: Secretary JB/mac/a:Economy Mills, Ltd. June 8, 1995 day of ,Tune , 1995. ATTEST: S^J Betty fohnson, City Secretary C RO STO CONTENT: N Joel Beesing Interim Director of siness Development APPROVED AS TQ FORM: Vandiver Assistant City Attorney AGREEMENT — ECONOMY MILLS, LTD. PAGE 6 EXHIBIT "A" 'M`uo ECONOIRV MILLS Serving West Texas i Eastern New Mexico for over 60 Years ,7 P O BOX 1737 15TH 6 AVENUE 8 �� LUBBOCK. TEXAS 79408 n F11 806/765-5547 SECTION III - FACILITY DESCRIPTION GENERAL DISCREMON OF IMPROVEMENTS m. ECONOMY MILLS, LTD. 15th&Ave B Lubbock, Tens (a) A now teed msnaftcturing facWty with a ptodwdm capacity of over 100 tons of bagged mW bulk toed per 8 bout shift. Located directly east of a 7M square feet wwabooe and office building at 211 15th street, Original Town Lubbock - Block 189 - Lots 1-6. (b) A 3400 square feet steel building will borne a 12,000 busbelbatching system, sweet feed system, pellet mill, roller mill, fall circle grinder, grain cleaning, fbddng, and roiling equipment The fheility will replace and modernize the 70 year old plant that was destroyed by a Are April 10, 1995. ECOI�iTU�MY MILLS Serving West Texas i Eastern New Mexico for over 60 Years ov P O BOX 1737 ISTN d AVENUE 8 LUBBOCK, TEXAS 79408 F eos1768 584 7 s�A FEE SEC III (c) DdPROVEMENTS TO REAL PROPERTY BLOCK I" LOTS 1-10 LUBBOCK 1) METAL BUILDING (3400 Sq. FL) & Electrical 2) CONCRETE DRIVEWAYS & BASES FOR BINS 3) TRUCK RECEIVING PIT VALUE S115,890.00 24,000.00 9,300.00 TOTAL ABATEMENT REQUESTED FOR REAL PROPERTY IMPROVEMENTS S 143,300.00 PERSONAL PROPERTY (NEW EQUI1Sl1C" 1) 4 HOPPER BOTTOM STORAGE BINS 2) 1 ELEVATOR 709 D.H. WITH S-WDISTRIBUTOR 3) 2 PRODUCT CONVEYORS 4) 32 INGREDIENT & WORKING BINS 12,000 bu. cap. 5) 1 GRAIN CLEANER-300BPH 6) 1 MIXING SCALES-2TON CAP. n 1 2-TON RIBBON MIXER 8) 1 ROLLED GRAIN ELEVATOR 9) 2 FINISHED FEED ELEVATORS 10) 1 BOILER 125 H.P. TOTAL NEW EQUIPMENT CONSIDERED FOR TAX ABATEMENT 48,000.00 29,750.00 16,000.00 240,000.00 8,300.00 10,000.00 20,5".00 20,500.00 41,000.00 18AN.00 S "050.00 GRAND TOTAL OF IM[PROVEMZNTS FEED MILL S 600.350.00 EXHIBIT "A" ECONOMY MILLS Serving West Texas S Eastern New Mexico for over 60 Years � ! P.O. BOX 1737 15TH & AVENUE B �[p0� LUBBOCK. TEXAS M4W STEA FEE OM765-5547 SECTION III - FACILITY DISCRIPTION (CONT.) (d) Site Map - Enclosed (e) None (1) Construction to begin July 1,1995 with completion by January 1, 1996. (g) Proposed Improvements are to replace, modernize, and expand the old Economy Mills Located at 1413 Ave. B. (h) Additional value to ReA Property slut be in excess otS180,0AA:90. (1) Assessed value of Real Property and New Facility would exceed S500,000.00. (j) The fire of April 10, 1995 destroyed the ventral portion of the Feed MID at 1413 Ave. B completely shutting down teed production. A New Milling Facility would: 1) more than double the. production capacity of the old mill (2) retain all present employees, (3) be a boost to Lubbock and the South Plains area by competing bad to head with out of state and out of area teed miff (4) reduce teed cost to area Harmers and ranchers, (5) add additional income to the community, (6) and crate new jobs In the fature. �..�., � i 1• ',J{'• �,'1fROPIRs�' �,, r- r LV.TMIC RAMAY1002' , > fl A{i'A'6E N .,., I II, it I I I ;, �, C'^'• �`'��' . ,y..>I..,r♦Ji� i r - 7�ir+�tw1.1 Wn� , � ++Y: MI ��o�r��M��`���r` Tj 3BOCK CENTRAL APPRAISAL DISTRICT 1715 26th STREET P.O. BOX 10542 LUBBOCK, TEXAS 79408-3542 (806) 762-5000 EXT. 500 PROPERTY OWNER. EXHIBIT "A" IMPORTANT PLEASE REVIEW ALL DATA ON THIS NOTICE BECAUSE OF POSSIBLE IMPACT ON YOUR PROPERTY TAXES. LOCATION ADDRESS: LB 1501 ECONOMY !TILLS LTD PO Box 1737 LUBBOCK TX 79408-1737 APPRAISAL NOTICE THIS IS NOT A TAX BILL. PRINT DATE- 0 5 / 1 7 / 94 AVE B KEY # 0103310572 PROPERTY DESCRIPTION. ORIG T LUBBOCK BLK 189 L 1-10 PARCEL A 6.6 7qao-ao`189-010010-0c�-, NE0038 ZONE 7 0038 I LAST YEAR 1493 ••••• YEAR 1994 -AND-MARKET VALUE _AND-PAOI UCTIVITY VALUE 1 6 i 2 5 0 LAND -MARKET VALUE LAND -PRODUCTIVITY VALUE 16.-2 5 0 IMPROVEMENTS-- MARKET PERSONAL PROPERTY VALUE IMPROVEMENTS - MARKET PERSONAL PROPERTY VALUE 8 Z, 7 45 MINERAL INTEREST VALUE MINERAL INTEREST VALUE TOTAL MARKET VALUE 1 6 i 2 50 TOTAL MARKET VALUE 98,995 TAXES LEVIED ESTIMATED TAXES _J88 ccK TYUK E-VIE 22337T.22• SS 9�� 1Mit 11 .95 CNOTTPRD3TT pp 9$99�" .pB77 107.7 �1IJOCK COUNTY 16.25 38T�43 98.99 .1658 2.3-64:12 THIS IS NOT A TAX STATEMENT R EAW ESTIMATED PROPERTY TAXES oo NOT PAY its o �`: 1�I FROM THI S _WJWNOTICE IPbd atlltltf� • plbk AwhlO fior � `tli� 4 �,' - is 11M♦ YlII!!'i TIN" a•ao"1w1brs you IIIIra" py on R& The Texas Legislature does not set the amount of your kocal texas. Your property tax burden is decided by your locaty eeWW aJ6aals, and all inquiries concerning your taxes should be *acted to those oftials.' PLEASE IF YOU ARE AQE 65 OR OLDER and you received the $10,000 SCHOOL tax exemption on your home, your SCHOOL READ taxes for this year will not be higher than when you received the exemption, unless you have improved your property (by adding rooms, other buildings, po(X etc.) If you feel any item of information on this form is incorrect, or ff you disagree with tftis year's proposed value for your property, contact the appraisal office immediately. If the problem cannot be resolved, you have a right to appeal to the Appraisal Review Board (ARB). In order to appeal, you must fie a WRITTEN protest with the ARB on or before 06 / 16 / 94 You can get a protest form from the appraisal district office at 1715 26th Street Lubbock, Texas. The ARB wo begin hearings on 0 6 / 17 / 9 4 You will be ratified of the dots, tyre and place yaw haarlrtp Is scMdWad. In each taxing unit listed, the governing body decides whether property taxes increase. The appraisal district detenrovs only the value of property. If you object to increasing taxes or govemment spending you should contact the taxing unit's goveming body. You should contact the appraisal office and ARB only about your proposed property value or exemptions. THIS IS NOT A TAX BILL - PLEASE DO NOT PAY FORM THIS NOTICE