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HomeMy WebLinkAboutResolution - 5076 - Notice Of Intent - United Supermarkets Inc #501 - Tax Abatement Agreement - 01_11_1996Resolution No. 5076 January 11, 1996 Item #31 RESOLUTION WHEREAS, the City Council has determined to give notice of its intent to enter into a Tax Abatement Agreement with United Supermarkets, Inc. No. 501; and WHEREAS, V.T.C.A., Tax Code, Section 312.2041 requires notice of the intent of City Council to be given to the presiding officer of the governing body of each taxing unit in which the property to be subject to the Tax Abatement Agreement is located; NOW THEREFORE: 9 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Secretary give notice as set forth in Exhibit A of the intention of City Council to enter into a Tax Abatement Agreement with United Supermarkets, Inc. No. 501, said notice to be given to the presiding officers of each governing body of each taxing unit having jurisdiction in assessing taxes on property located in City of Lubbock, Lubbock County, Texas and further described as A PORTION OF TRACT "A" AND "B", WILSHIRE PARK ADDITION TO THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS METES AND BOUNDS DESCRIPTION of a portion of Tract "A", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at a square head bolt found in the North line of a 20 foot alley, for the Southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a distance of 1497.50 feet form the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley also being the south line of Tracts "A" and "B", a distance of 59390 feet to a point for the Southwest corner of this tract; THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this tract; THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2" iron rod with cap set in the West line of Tract `B" for a corner of this tract: THENCE North 26 degrees 11'48" West, along said West line of Tract "B" a distance of 150.00 feet to a 1/2" iron rod with cap set in the South right-of-way line of Parkway Drive, for the Northwest corner of this tract, also being the original Northwest corner of Tract `B"; .7 14 THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parkway Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1/2" iron rod j with cap set for a point of curvature; THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 15 degrees 09' 14", tangent lengths of 239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast corner of this tract; THENCE South a distance of 526.15 feet to the Point of Beginning. METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue for the Southeast corner of this tract, also being the original Southeast corner of Tract "B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square head bolt found at the Southwest corner of this tract; THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of- way line of Parkway Drive, for the Northwest corner of this tract; THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 1 degree 56'41", tangent lengths of 30.55 feet, and a chord distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature; THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West right -or -way line of Beech Avenue, at a point of compound curvature; THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees 02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/8" iron rod found at a point of tangency; THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point of Beginning. Passed by the City Council this ATTEST: Betty . Johnson, ity Secretary APPROVED AS TO CONTENT: Joel Beesinger, Interim Pirector of Business Development Vandiver, First Assistant DGV:dp ccdocslta-unitd.res December 21. 1995 NOTICE OF INTENT OF THE CITY COUNCIL OF THE CITY OF LUBBOCK TO ENTER INTO AN AGREEMENT TO ABATE TAXES ON REAL PROPERTY IMPROVEMENTS AND TANGIBLE PROPERTY LOCATED WITHIN A PORTION OF TRACT "A" AND "B", WILSHIRE PARK ADDITION TO THE CITY OF LUBBOCK, LUBBOCK, COUNTY, TEXAS (FURTHER DESCRIBED BY METES AND BOUNDS) METES AND BOUNDS DESCRIPTION of a portion of Tract "A", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at a square head bolt found in the North line of a 20 foot alley, for the Southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a distance of 1497.50 feet form the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley also being the south line of Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest corner of this tract; THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this tract; THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2" iron rod with cap set in the West line of Tract "B" for a corner of this tract: THENCE North 26 degrees 11'48" West, along said West line of Tract "B" a distance of 150.00 feet to a 1/2" iron rod with cap set in the South right-of-way line of Parkway Drive, for the Northwest corner of this tract, also being the original Northwest ;:orner of Tract "B"; THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parkway Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1/2" iron rod with cap set for a point of curvature; THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 15 degrees 09' 14", tangent lengths of 239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast corner of this tract; EXHIBIT "A" THENCE South a distance of 526.15 feet to the Point of Beginning. METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue for the Southeast corner of this tract, also being the original Southeast corner of Tract "B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square head bolt found at the Southwest corner of this tract; THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of- way line of Parkway Drive, for the Northwest corner of this tract; THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 1 degree 56'41", tangent lengths of 3055 feet, and a chord distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature; THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West right -or -way line of Beech Avenue, at a point of compound curvature; THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees 02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/8" iron rod found at a point of tangency; THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point of Beginning. Notice is hereby given that the City Council of the City of Lubbock intends to enter into an agreement with United Supermarkets, Inc. No. 501 to abate taxes on improvements to property and tangible property located within an enterprise zone created by Ordinance No. 9591 and covering all of the subject property. Notice is further given that the City Council of the City of Lubbock will consider authorizing the Mayor of the City to execute a contract between the City and United Supermarkets, Inc. No. 501 for tax abatement, a copy of said Agreement is attached to this Notice as Exhibit "A" and made a part hereof for all purposes. Notice is further given that the City Council will consider this matter at its meeting held in the City Council Chamber, City Hall, 1625 13th Street, City of Lubbock, on the day of , 199_, at o'clock ,.m. EXHIBIT "A" STATE OF TEXAS COUNTY OF LUBBOCK S This Agreement made this day of 1996, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and United Supermarkets. Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 17th day of November, 1995, an application for tax abatement for construction of Company's facilities located within a portion of Tract "A" and "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, further described by Metes and Bounds as follows: METES AND BOUNDS DESCRIPTION of a portion of Tract "A Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at a square head bolt found in the North line of a 20 foot alley. for the Southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a distance of 1497.50 feet from the Southeast corner of Section 2, Block A, THENCE West, along the North line of a 20 foot alley also being the south line of Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest comer of this tract; THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this tract; THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2" iron rod with cap set in the West line of Tract "B" for a corner of this tract: THENCE North 26 degrees 11'48" West, along said West line of Tract ` 13" a distance of 150.00 feet to a 1 /2" iron rod with cap set in the South right-of-way line of Parkway Drive, for the Northwest corner of this tract, also being the original Northwest comer of Tract "B"; THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parkway Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1/2" iron rod with cap set for a point of curvature; THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 15 degrees 09' 14", tangent lengths of 239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast corner of this tract; THENCE South a distance of 526.15 feet to the Point of Beginning. METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park Addition to the City of Lubbock. Lubbock County, Texas, being further described as follows: BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue for the Southeast corner of this tract, also being the original Southeast corner of Tract "B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square head bolt found at the Southwest corner of this tract; THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of- way line of Parkway Drive, for the Northwest comer of this tract; THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9 feet, a central angle of i degree 56'41 "', tangent lengths of 30.55 feet, and a chord distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature; THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West right -or -way line of Beech Avenue, at a point of compound curvature; UNITED SUPERMARKETS, INC. 2 THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees 02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/8" iron rod found at a point of tangency; THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point of Beginning. WHEREAS, upon review of the above application, it was determined that facilities would be located in the North Enterprise Zone designated by City in its Ordinance No. 9591; and WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by Resolution No. 4974 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 312.2011: and WHEREAS, the City did comply with all of the criteria and guidelines for creation of an enterprise zone as set forth in Chapter 2303. Subchapter C of the Texas Enterprise Zone Act, Texas Government Code, having adopted Ordinance No. 9591 of the City on February 18, 1993, which ordinance includes Tract "A" and "B", Wilshire Park Addition to the City of Lubbock, Lubbock County. Texas, being further described by Metes and Bounds as follows: METES AND BOUNDS DESCRIPTION of a portion of Tract "A", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at a square head bolt found in the North line of a 20 foot alley, for the southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a distance of 1497.50 feet from the Southeast corner of Section 2, Block A; UNITED SUPERMARKETS, INC. 3 THENCE West, along the North line of a 20 foot alley along being the south line of Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest corner of this tract; THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a comer of this tract; THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2" iron rod with cap set in the West line of Tract "B" for a corner of this tract: THENCE North 26 degrees 11'48" West, along said West line of Tract "B" a distance of 150.00 feet to a 1 /2" iron rod with cap set in the South right-of-way line of Parkway Drive, for the Northwest comer of this tract, also being the original Northwest corner of Tract "B"; THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parkway Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1/21' iron rod with cap set for a point of curvature; THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 15 degrees 09' 14", tangent lengths of 239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast corner of this tract; THENCE South a distance of 526.15 feet to the Point of Beginning. METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue for the Southeast corner of this tract, also being the original Southeast corner of Tract "B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the Sosutheast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square head bolt found at the Southwest corner of this tract; UNITED SUPERMARKETS, INC. 4 THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of- way line of Parkway Drive, for the Northwest corner of this tract; THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 1 degree 56'41 tangent lengths of 30.55 feet, and a chord distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature; THENCE Southeasterly around a curve to the right. said curve having a radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West right -or -way line of Beech Avenue, at a point of compound curvature; THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees 02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/8" iron rod found at a point of tangency; THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point of Beginning. WHEREAS, the application received by City from Company is an application for the construction of a new Company facility; and WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones adopted by the City Council by Resolution No. 4974 does recognize construction of new facilities as being eligible for commercial tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guidelines and Cri- teria established for Commercial Tax Abatement within the Enterprise Zones of the City of Lubbock, as adopted by Resolution No. 4974, have been met by Company; and WHEREAS, Company does intend to construct its new facility; and WHEREAS, the location of the constructed facility and surrounding real property, which are to be the subject matter of the Agreement, are attached hereto as Exhibit "A", and made a part of this Agreement for all purposes; and UNITED SUPERMARKETS, INC. 5 WHEREAS, the City Council finds that entering into this Agreement to abate taxes on the property described in Exhibit "A" will create new jobs within the City, and enhance economic development within the designated Enterprise Zone: 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 nine (9) 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 the Agreement, shall be 19961 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. Abateme t 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 takes hereinabove set forth. SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section IV(6) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones, and heretofore adopted by the City Council by Resolution No. 4974, and incorporated by reference herein as if fully set out in this Agreement is property ineligible for tax abatement. UNITED SUPERMARKETS, INC. 6 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 improvments to be placed upon a portion of Tract "A" and "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, further described by Metes and Bounds as follows: METES AND BOUNDS DESCRIPTION of a portion of Tract "A Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at a square head bolt found in the North line of a 20 foot alley, for the southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a distance of 1497.50 feet from the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley along being the south line of Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest corner of this tract; THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this tract; THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2"' iron rod with cap set in the West line of Tract "B" for a corner of this tract: THENCE North 26 degrees 11'48" West, along said West line of Tract "B" a distance of 150.00 feet to a 1/2" iron rod with cap set in the South right-of-way line of Parkway Drive, for the Northwest corner of this tract, also being the original Northwest corner of Tract "B". THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parklvay Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1 /2" iron rod with cap set for a point of curvature; THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 15 UNITED SUPERMARKETS, INC. 7 degrees 09' 14", tangent lengths of 239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast corner of this tract; THENCE South a distance of 526.15 feet to the Point of Beginning. METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue for the Southeast corner of this tract, also being the original Southeast corner of Tract "B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the Southeast corner of Section 2, Block A, - THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square head bolt found at the Southwest comer of this tract; THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of-way line of Parkway Drive, for the Northwest corner of this tract; THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9 feet, a central angle of i degree 56'41 ", tangent lengths of 30.55 feet, and a chord distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature; THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West right-of-way line of Beech Avenue, at a point of compound curvature; THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees 02% tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/8" iron rod found at a point of tangency; UNITED SUPERMARKETS, INC. 8 THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point of Beginning. (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 sub- paragraph (a) above set forth. SECTION 7. Economic Qualification. It is hereby found by the City that Company will expend funds necessary to qualify for tax abatement by constructing a new facility, and further that the Company will create new jobs in excess of the number required for tax abatement, all as set forth in Section 1V(10)(f) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock adopted by the City through Resolution No. 4974. SECTION 8. Value of Improvements. Company intends to expend approximately two million two hundred and eighty thousand dollars ($2,280,000) in building related structural improvements and one million, seven hundred sixty thousand dollars ($1.760,000) in equipment to be located within the Enterprise Zone created by Ordinance No, 9591. SECTION 9. Creation of New Jobs. Company agrees within twelve (12) months from the date of execution of this Agreement that it will create seventy (70) new jobs within the Company facility located within a portion of Tract "A" and "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, further described by Metes and Bounds as follows: METES AND BOUNDS DESCRIPTION of a portion of Tract "A", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: UNITED SUPERMARKETS, INC. 9 BEGINNING at a square head bolt found in the North line of a 20 foot alley, for the southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a distance of 1497.50 feet from the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley along being the south line of Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest corner of this tract; THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this tract; THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2" iron rod with cap set in the West line of Tract 'B" for a corner of this tract: THENCE North 26 degrees 11 "48" West, along said West line of Tract "B a distance of 150.00 feet to a 1/2" iron rod with cap set in the South right-of-way line of Parkway Drive, for the Northwest corner of this tract, also being the original Northwest corner of Tract "B THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parkway Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1/2" iron rod with cap set for a point of curvature; THENCE NortheasterIv. alone said South right-of-way, a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 15 degrees 09' 14", tangent lengths of 239.42 feet, and a chord distance of 474.66 feet to a 3/8 iron rod found at the Northeast corner of this tract; THENCE South a distance of 526.15 feet to the Point of Beginning. METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue for the Southeast corner of this tract, also being the original Southeast corner of this tract, UNITED SUPERMARKETS, INC. 10 also being the original Southeast corner of Tract "B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the Southeast corner of Section 2, Block A, THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square head bolt found at the Southwest corner of this tract; THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of- way line of Parkway Drive, for the Northwest corner of this tract; THENCE Northeasterly around a cun-e to the right, said curve having a radius of 1799.9 feet, a central angle of I degree 56"41", tangent lengths of 30.55 feet, and a chord distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature; THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West right-of-way line of Beech Avenue, at a point of compound curvature; THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees 02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/8" iron rod found at a point of tangency; THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point of Beginning. SECTION 10. Cif Access to Property. 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 to insure that the improvements are being made in accordance with the terms and conditions of Company's application for commercial tax abatement and this Agreement. SECTION 11. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate one hundred (100) percent of taxes on eligible property. UNITED SUPERMARKETS, INC. t 1 SECTION 12. Commencement Date. This Agreement shall commence upon the date of its execution, which date is hereinafter set forth, and shall expire nine (9) years after such date. SECTION 13. Type of Improvements. The Company proposes to construct a new grocery store facility as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the 1-9 day of January, 1996, and shall be completed within approximately 120 days 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 completion of such improvements, and such consent shall not unreasonably be withheld. SECTION 14. Draw-ing5 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 property set forth in Exhibit "A" to commercial uses as those terms are defined in the zoning ordinances of the City of Lubbock, and to limit the uses of the property to uses consistent with the general purpose of encouraging development of the designated Enterprise 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 Company as set forth in Exhibit "B", attached hereto and made a part hereof for all purposes. SECTION 17. Certification, The Company agrees to certify annually to the governing body of each taxing unit that the owner is in compliance with the terms of the Agreement. SECTION 18. Compliance. The City may cancel or modify this Agreement if the Company fails to comply with the Agreement. UNITED SUPERMARKETS, INC. 12 SECTION 19. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK UNITED SUPERMARKETS, INC. Manager Kent Moore P.O. Box 2000 7830 Orlando Avenue Lubbock, TX 79457 Lubbock. TX 79423 SECTION 20 Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as it shall be finally passed and approved. ElECUTED this day of 199_. UNITED SUPERMARKETS, INC. CITY OF LUBBOCK A Texas Corporation A Municipal Corporation Vice -President DAVID R. LANGSTON, MAYOR ATTEST: Secretary Deg eloprn:-,t dp:G&-k -_ .:j:,_ DecemN. =: --Q< UNITE = =,MARKETS, INC. 13 ATTEST: Betty M. Johnson, City Secretary APPROVED AS TO CONTZNT: Joel Beesinger Interim Director of Business nOVE S Tki F f)kAald G. Vandiver First Assistant City Attorney April 17, 1995 Mr. Dan Wattles, Enterprise Zone Business Finance Texas Department P O Box 12728 EXHIBIT "A" ©a�aE ,� UNITED SUPERMARKETS, INC. Manager Program Division of Commerce Austin, Texas 78711 Dear Mr. Wattles: United Supermarkets, Inc. ("United") is a privately owned corporation incorporated in the State of Texas with headquarters at 7830 Orlando Avenue in Lubbock, Texas. The primary ownership of this corporation is as follows: Robert Snell - 390; H.D. Snell Jr. Trust, 39.8°; Sara Jane Wood, 9.30; and Ethel Ann Bumstead, 9.3e. United has operated retail grocery stores since 1916, and currently operates thirty-nine stores in cities throughout West Texas, including Amarillo, Lubbock, Wichita Falls and Abilene. United Supermarkets, Inc. employs acprcximately 2,622 full-time employees and 810 part-time employees. The store for which we are requesting Enterprise Project designation (United #501) is a new store that will be located at Parkway Drive and Zenith Avenue (southeast corner) in Lubbock, Texas. The new store will replace our existing facility located at 3101 East 4th Street which currently employs 40 full-time and 13 part-time employees with a current market of East Lubbock and surrounding farm communities. Our primary supplier for foods for this facility is Fleming Foods. Our short and long range goals for the new facility in Lubbock, Texas, are as follows: (1) to provide consumers with "one stop shopping" in a larger, modern, superstore type supermarket which provides customers with a wide selection of perishable and dry grocery products under one roof at competitively low prices, P.O. Box 6W 0 806R91-0224 0 Lubbock, Texas 79493-6940 (2) to provide quality and service, by offering consumers only the highest quality products in a clean and attractive store environment, and by offering consumers a wide variety of perimeter service departments where a large selection of fresh products can be found, with special emphasis on merchandising to the needs of consumers in the Lubbock area, (3) to create a family environment for United shoppers through ongoing -support and involvement in civic, charitable and community activities. When completed, the total investment in the new Lubbock facility will be approximately $4,040,000. The breakdown will be $2,280,000 for building improvements and the remaining $1,760,000 for machinery and equipment. Equipment and machinery will be purchased with funds from existing operating cash flow and/or United's short term operating line with Amarillo National Bank. The land and building improvements will be financed with traditional long term financing. We currently own the land on which the building will be located and have included a copy of the title insurance policy as Schedule A. Improvements of the property will begin in September, 1995 and will be completed in April, 1996. This construction will consist of construction of a 40,000 square foot building , site development, paved parking lot (approximately 3 acres) and lighting. The projected cost for these improvements will be $2,280,000. We will begin ordering the needed equipment, machinery, and fixtures in January, 1996. These items should begin arriving between January, 1996 and April, 1996. The total to be spent for equipment, machinery and fixtures will be approximately $1,760,000. The following is a list of the equipment, machinery and fixtures to be purchased: Bakery, deli, market equipment $ 475,000 Refrigeration cases, shelving, display cases and other equipment 1,060,000 Computers, phones, office equipment and decor 250.000 $1,760,000 Operations of the new facility will commence in April or May, 1996. United Supermarkets, Inc. does not require any special permits and licenses in order to operate. We currently employ 53 persons in our existing Lubbock facility with a current annual payroll of $760,800. A list of the current employees is included as Exhibit.B. It is estimated that within five years there will be an additional 70 employees at the replacement store. The list of the new jobs to be created with total annual salary is included as Exhibit C. The annual payroll at the new store should be approximately $1,606,400. Initial hiring for the new jobs as a result of this proposed replacement store will begin in April 1996. United Supermarkets, Inc. commits to participate in local efforts to achieve development and revitalization of the Lubbock, Texas Enterprise Zone. United Supermarkets, Inc. will hire under - skilled, inexperienced, disadvantaged, displaced workers, minorities, or residents of the enterprise zone. United Supermarkets, Inc. understands that to be a "qualified business" eligible for enterprise project designation, twenty-five percent (25°6) of its new or additional employees must be residents of an enterprise zone within the city's jurisdiction or economically disadvantaged persons. United Supermarkets, Inc. hereby commits that twenty-five percent (25) of its new employees will be residents or an enterprise zone or economically disadvantaged persons. United Supermarkets, Inc. further understands that it must retain a le,rel of employment for three years from the date of refund of state sales taxes, or United Supermarkets, Inc. may become liable for recapture of refunded taxes of the Comptroller. Rest assured United Supermarkets, Inc. understands the importance of a stable work force and will diligently follow a path that keeps layoffs to a minimum. Along with our job creation commitment, United Supermarkets, Inc. also commits to hire minority workers and to contract with minority -owned and small businesses. United Supermarkets, Inc. is committed to participating heavily in community affairs. our employees participated in the United Way through payroll deductions, as well as an annual corporate donation by the home office. In recent years, we have supported financially the Little Leagues, Ronald McDonald House, Fine Arts of Lubbock, Medical Health Research and many other needs. The company is also willing to participate individually, in groups, or with other organizations which contribute time and manpower for the good of the community. United Supermarkets, Inc. is willing to negotiate and cooperate in the achievement of the purposes of the Texas Enterprise Zone Act. I also certify that the company's proposed Lubbock facility is located within the Lubbock Enterprise Zone and that separate books and reports of the business activity conducted in the zone or any other information as required by local and state government units will be made available for inspection and review as needed. United Supermarkets, Inc. appreciates the nomination and values the implications of the designation as an enterprise project in the city of Lubbock, Texas Enterprise Zone. We look forward to working with the city of Lubbock and the State of Texas in furthering the purposes of the Texas Enterprise Zone Program. Sincerely, United Supermarkets, Inc. L. Kent Moore Vice President and Chief Financial Officer 3 CD r� sa �J-jNil-I11 -III—Iii_I p r y r rn G) v N rn z- . 4 hill till jpqqfit I tail g14 x,` d Ir a IL •"► \ xAIx" Gm oil Zu ap it {rr,l V O ` HIP Vq- 16 F_ D �� =! �,.. ! T, � ' fir, •: • - � �� ' ►'': � • l �'�� t"=. ,.lam -i-� • \ \ i. �C��. � :yam. .�iw,�� ..�. y�: •� :�l , t-..•� y! ,,• - �-1q•, r Y'' ^ �7 k t •mow • _: A:'i �w^ a ft 1i. ;F! �i,. i<<,��. �!.•"' ,. .y.. : jam• .v' �i.•' •,A- _ _�.YA••��- _'�'•`!� 4, 71'I'�' ,.�,;r 'r\�t.i .ur?, ,�- •'•';?Gti1 + •.'•ice,,,, i t'+ •. ! i' S'��._ ;;fit., .,L•«. ,�.•. .. � �, + .' r:': ai, I Z ia d UNITED SUPERMARKET #501 MWM ARCHITECTS INC. I 7: MmLAIQ LUBBOQt 4 PARKWAY DRIVE AND ZENITH STREET U A ROBERTS AND THOMMA• INC. d LUBBOCK. TEXAS r� CORSUONG 510U[TURAL EW494MRS - SCHEDULE A GF NO. 10017180 Owner Policy No.: 0-5841= 15771 Date of Policy: June 27, 1994 FIFTY-SIX THOUSAND EIGHT HUNDRED & 00/100 - i$ Amou'�W? OifaM) ? DOLLARS 1, Name of Insured: UNITED SUPERMARKETS, INC. 2. The estate or interest in the land that is covered by this policy is: FEE SIMPLE - 3. Title to the estate or interest in the land is insured as vested in: UNITED SUPERMARKETS, INC. 4. The land referred to in this policy is described as follows: METES AND BOUNDS DESCRIPTION of a portion of Tract "A" and "B" , Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGIivNING at a square head bolt found in the North line of a 20 foot alley, for the Southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a distance of 1497.50 feet from the Southeast corner of Section 2, Block A; T► E'NTCE West, along the North line of a 20 foot alley also being the South line of Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest corner of this tract; THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this tract; THENCE North 56 degrees 39'12" East a distance of 156.18 feet to a 1;2" iron rod with cap set in the Crest line of Tract "B" for a corner of this tract; THENCE North 26 degrees 11'40" [vest, along said hest line of Tract "B" a distance of 150.00 feet to a 1/2" iron rod with cap set in she South right-of-way line of Parkway Drive, for the Northwest corner of this tract, also being the original ?northwest corner of Tract "B"; THENCE North 36 degrees 28'12" East along the South right-of-way line of Parkway Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1!2" iron rod with cap set for a point of curvature; Continued on next page STENVART TITLE GUARANTY COMPA"y 3572 i*+e: . 1.93) GE No. 1001718u 0-5841-16771 Attached to and made a part of Stewart Title Guaranty Company Policy No. _ Continuation of Schedule A SCHECULE A, NO. 4 CONTINUED: THENCE Northeasterly, along -said South right-of-way, a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 15 degrees 09'14", tangent lengths of 239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast corner of this tract; THENCE South a distance of 526.15 feet to the Point of Beginning. METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue for the Southeast corner of this tract, also being the original Southeast corner of Tract "B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square head bolt found at the Southwest corner of this tract; THENCE North, a distance of 526.15 feet io a 3/8" iron rod fount in the South right-of-way line of Parkwav Drive, for the Northwest corner of this tract; THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 1 degree 56'41", tangent lengths of 30.55 feet, and a chord distance of- 61.09 feet to a 3/8" iron rod found at a point of compound curvature; THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West right-of-way line of Beech Avenue, at a point of compound curvature; THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees 02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to Continued on next page Page STEWART T ITLF 7-3 CU.4 A 4NT7 4 11 MPA \ 1 GF No.. 1001718u - 0-5841-16771 --Attached to and made a part of Stewart Title Guaranty Company Policy No. _ Continuation of Schedule A 3/8" iron rod found at a point of tangency; THENCE South, along said West right-of-way line, a distance of 526.83 feet to the Point of Beginning. Page �. STEWART TITLE cv,n..Tt 4•4"4r4vV 1 ' L ` - - , —, u — , _ f ✓—-, — JJ.CJ 1, e , , I II—>,i —1—J -, I ,,+ , ✓�,.0 •,, _ , -, .1 — I „V a Id ♦— — I I I, -- GF No. 10017180 OWNER POLICY SCHEDULE EXCEPTIONS FROM COVERAGE Policy No.: 0-5841- 16 771 This policy does not insure against loss or damage (and the Company will not pay costs, attorney's fees or expenses) that arise by reason of the terms and conditions of the leases and easements, if any, shown in Schedule A, and the following matters: The �'COVeR3TEt5'TEr�'iTe�n�z7+�; �t�1f1�it�6{£�r�1�StXXX 1 speCl��tXai'lis�'�xXc'�tr�f XX L 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. 3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. 4. Any titles or rights asserted by anyone, including but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or C. to filled -in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation, or the right of access to that area or easement along and across that area. 5. Standby fees, taxes and assessments by any taxing authority for the year 19 94~nd subsequent years, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership. o. The following ma4ers and all terms cf, the docun-Ients creating or offering evidence of the flatters ( The Cornpany must insert matters or deiete this exception.): 7. Rights of parties in possession. 8. One—half of all the oil, gas and other minerals, the royalt—ies, bonuses, rentals and all other rights in connection with same are excepted herefrom as the same are set forth in instrument recorded in Volume 453, Page 321, of the Deed Records of Lubbock County, Texas. Title to said interest not checked subsequent to its date of execution. 9. One-half of all the oil, gas and other minerals, the royalties, bonuses, rentals and all other rights in connection with same are excepted herefrom as the same are set forth in instrument recorded in Volume 251, Page 575, of the Deed Records of Lubbock County, Texas. Title to said interest not checked subsequent to its date of execution. 10. Subject to the two _rear right and three year right of redemption Counters' Ked: / Continued on next page By STEWAR T TITEE Authorized Countersignature GUARANrT COMPANY 5313(Rev i 9_I GE No. 1001,180 Attached to and made a part of Stewart Title Guaranty Company Policy No. 0-5841-16771 Continuation of Schedule B Page SCHEDULE B CONTINUED: under Texas law pertaining to tax sales, which shall expire August 21, 1995. (Pertains to all the property except the East 77.45' of Tract B) STEWART TITLE GUA RA rTT CA- MYa`r5 EMPLOYEES CURRENTLY EMPLOYED BY UNITED SUPERMARKETS STORE #501 Title/Position Number of Jobs Full -Time/Part- TimelSeasonal Annual Salary Management 6 Full -Time $33,800 Checkers 8 Full -Time $13,000 Checkers 3 Part -Time $3,750 ;Meat Market 6 Full -Time $19,500 Stockers 6 Full -Time $15,500 Stockers 1 Part -Time $2,500 Departmental Clerks 3 Full -Time $8,500 Sackers 8 Full -Time $7,500 Sackers 4 Part -Time $3,500 Pharmacist I Full -Time $52,000 Pharmacy Staff 2 Full -Time $15,000 Security 5 Part -Time $10,500 TOTAL 53 $764,550 EXHIBIT "B" PROPOSED JOBS TO BE CREATED AT UNITED SUPERMARKETS, INC. STORE #501 Job Title/Position Number of Jobs Full-Time/Part- Time/Seasonal Annual Salary Management 8 Full -Time $19,200 Checkers 7 Full -Time $10,500 Checkers 4 Part -Time $3,750 Meat Market 3 Full -Time $17,000 Stockers 6 Full -Time $15,000 Deaartmental Clerks 21 Full -Time $12,500 Departmental Clerks 4 Part -Time $4,000 Bakers 1 Full -Time $15,000 Sackers 8 FulI-Time $7,500 Sackers 4 Part -Time $3,000 Pharmacist 1 Full -Time $52,000 Pharmacy Staff 3 Full -Time $15,000 TOTAL 70 $845,600 EXHIBIT "C" - - Property Data Selection Menu - - Prop ID: R137635 (Real Property) Owner: UNITED SUPERMARKETS INC XRef ID: R944000-00000-09815-000 (13789) 7380 ORLANDO AVE Legal : WILSHIRE PARK E77.45'OF TR B LUBBOCK, TX 79423 sites - LUBBOCK Entitie3 : GLB, SLB, CLB, HSP, WHP :_.AD (Yes) .xamptions : EXG Agent Info ARB Does Chief Appr - 'Entity Docs: Owner Phone: Prop Links : Nbad. Code : Mort Lender: Freeze Year: Total Land HS/NHS 10,400 Total Prod. Mkt. 0 Total Imp. HS/NHS 0 Total Mkt. Value 10,400 Alt. (D)isp. (P)r1mary (S)econdary (G)en. Appr. (0)wnership (3) Agents Enter Option from Above, or "RETURN" to Exit: (L)and/Impz. ( . ) More 11/17/95 08:14 TX/RX NO.1178 P.003 - - Property Data Selection Menu - - Xop ID: R137622 (Real Property) Owner: UNITED SUPERMARKETS INC :Ref ID: R944000-00000-09810-000 (13789) 7380 ORLANDO AVE legal : WILSHIRE PARK W PT OF TR B & SE PT OF A LUBBOCK, TX 79423 itus 2608 PARKWAY DR LUBBOCK ntities : GLB, SLB, CLB, HSP, WHP 'AD (Yes) .xemptions EXG .gent Info .RB Docs ; 'hief Appr ntity Docs: Owner Phone: Prop Links : Nbad. Code : Mort Lender: Freeze Year: Total Land HSINNS : Total Prod. Mkt. . Total Imp. HS/NHS : Total Mkt. Value . Alt. (D) isp. (P) rimary (S)econdary (G)en. Appr. (0)wnership (3) Agents Winter Option from Above, or "RETURN" to Exit: (L)and/ Impr. (. ) More 4 6, 37 3 l 46,371 11/17/95 08:14 TX/M NO.1178 P.002 m EXHIBIT 680 SECTION YII. Recavture: 1. In the event that any type of facility, (as defined in Sec- tion 1, Subparagraphs 5, 6, 1, 8, 10, 11, 12, 13, 17, 18) is completed and begins producing goods or services, but subse- quently discontinues producing goods or services for any reason, excepting fire, explosion or other casualty or acci- dent or natural disaster or other event beyond the reason- able control of applicant or owner for a period of 180 days during the term of a tax abatement agreement, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The burden shall be upon the applicant or owner to prove to the satisfaction of the Affected Juris- diction to whom the application for tax abatement was directed that the discontinuance of producing goods or ser- vices was as a result of fire, explosion, or other casualty or accident or natural disaster or other even beyond the control of applicant or owner. In the event the applicant or owner meets this burden, and the Affected Jurisdiction is satisfied that the discontinuance of the production of goods or services was the result of events beyond the control of the applicant or owner, then such applicant or owner shall have a period of one Year in which to resume the production of goods and services. In the event that the applicant or owner fails to resume the production of goods or services within one year, then the Tax Abatement Agreement shall ter- minate and the Abatement of all taxes shall likewise termi- nate. Taxes abated during the calendar year in which termi- nation takes place shall be payable to each Affected Juris- diction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The one year time period, hereinabove mentioned, shall commence upon written notifica- tion from the Affected Jurisdiction to the applicant or owner. 2. In the event that the applicant or owner has entered into tax abatement agreement to make improvements to a facility of any type described in Section l above, but fails to undertake or complete such improvements, then in such event the Affected Jurisdiction to whom the application for tax abatement was directed shall give the applicant or owner sixty (60) days notice of such failure. The applicant or owner shall demonstrate to the satisfaction of the Affected Jurisdiction, above mentioned, that the applicant or owner has commenced to cure such failure within the sixty (60) days above mentioned. In the event that the applicant or owner fails to demonstrate that he is taking affirmative action to cure his failure, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than Jan- uary 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 3. In the event that the Affected Jurisdiction to whom applica- tion for tax abatement was directed determines that the applicant or owner is in default of any of the terms or con- ditions contained in the Tax Abatement Agreement, then in such event the Affected Jurisdiction shall give the appli- cant or owner sixty (60) days written notice to cure such default. In the event such default is not cured to the sat- isfaction of the Affected Jurisdiction within the sixty (60) days notice period, then the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise termi- nate. Taxes abated during the calendar year in which termi- nation takes place shall be payable to each Affected Juris- diction by no later than January 31st of the following year.. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 4. In the event that the applicant or owner allows ad valorem taxes on property ineligible for tax abatement owed to any Affected Jurisdiction, to become delinquent and fails to timely and properly follow the legal procedures for their protest or contest, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination, under this subparagraph, takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. Guidelines and Criteria Governing Tax Abatement for Coamerciai Projects in Designated Enterprise Zones Exhibit men PAGE 2 5. In the event that the applicant or owner, who has executed tax abatement agreement with any Affected Jurisdiction, relocates the business, for which tax abatement has been granted, to a location outside of the designated reinvest- ment zone, then in such event, the Tax Abatement Agreement shall terminate after sixty (60) days written notice by the Affected Jurisdiction to the Owner/Applicant. Taxes abated during the calendar year in which termination, under this subparagraph takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termina- tion shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 6. The date of termination as that term is used in this Subsec- tion VIII shall, in every instance, be the 60th day after the day the Affected Jurisdiction sends notice of default, in the mail to the address shown in the Tax Abatement Agree- ment to the Applicant or Owner. Should the default be cured by the Owner or Applicant within the sixty (60) day notice period, the Owner/Applicant shall be responsible for so advising the Affected Jurisdiction and obtaining a release from the notice of default from the Affected Jurisdiction, failing in which, the abatement remains terminated and the abated taxes must be paid. 7. In every case of termination set forth in Subparagraphs 1, 2, 3, 4 and 5 above, the Affected Jurisdiction to which the application for tax abatement was directed shall determine whether default has occurred by Owner (Applicant) in the terms and conditions of the Tax Abatement Agreement and shall so notify all other Affected Jurisdictions. Termina- tion of the Tax Abatement Agreement by the Affected Juris- diction to which the application for tax abatement was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all other Affected Jurisdic- tions. 8. In the event that a tax abatement agreement is terminated for any reason whatsoever, and taxes are not paid within the time period herein specified, then in such event, the provi- sions of V.T.C.A., Tax Code, Section 33.01 will apply. Guidelines and Criteria Governing Tax Abetment for Commercial Projects in Designated Enterprise Zones Exhibit `e" PAGE 3