HomeMy WebLinkAboutResolution - 5102 - Agreement On Economic Development;Contract For Deed- Plains Co-Op Oil Mill Inc - 02_08_1996Resolution No. 5102
February 8, 1996
Item #32
9. • •
WHEREAS, the City Council of the City of Lubbock desires to create a new City of
Lubbock Economic Development Program to provide financial assistance to Plains Cooperative
Oil Mill, Inc., in the enlargement of the Plains Cooperative Oil Mill, Inc., manufacturing
facility in Lubbock, Texas, pursuant to authority granted to the City of Lubbock by Article 3,
Section 52-a of the Texas Constitution, Section 380.001 of the Texas Local Government Code,
Article 835s of Vernon's Texas Civil Statutes, and Section 272.001 of the Texas Local
Government Code; and
WHEREAS, it is the opinion of the City Council of the City of Lubbock that the granting
of such financial assistance is provided herein will be in the public interest and will serve to
promote economic development of Lubbock and the South Plains area; and
WHEREAS, it is the opinion of the City Council of the City of Lubbock that this
economic development project will serve to promote the public purposes of the elimination of
unemployment or underemployment, the stimulation of agricultural innovation, the fostering of
the growth of enterprises based on agriculture, and stimulate business and commercial activity in
the municipality and surrounding area; and
WHEREAS, Plains Cooperative Oil Mill, Inc., has indicated to the City of Lubbock that
the proposed expansion of the facility in Lubbock will employee approximately 35 additional
persons and it will represent a major investment of approximately twenty million dollars
($20,000,000.00) in the City of Lubbock; and
WHEREAS, the City of Lubbock shall participate in the project through an Agreement
on Economic Development, a Lease agreement, and a Contract for Deed and associated
documents with regard to leasing approximately 195 acres with an option to purchase to Plains
Cooperative Oil Mill, Inc., for the purpose of promoting economic development for the City of
Lubbock and the surrounding area; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. The City Council of the City of Lubbock hereby establishes and provides
for a new economic development program for the City of Lubbock to provide financial assistance
with regard to the enlargement of the Plains Cooperative Oil Mill, Inc., facility located within the
City of Lubbock, Texas. Said program shall be administered by the municipal personnel of the
City of Lubbock with the assistance of Market Lubbock, Inc., a Texas not for profit corporation.
SECTION 2. The Mayor of the City of Lubbock is hereby authorized and directed to
execute for and on behalf of the City of Lubbock the attached Agreement on Economic
Development; Lease agreement; Contract for Deed, and associated documents by and between
the City of Lubbock, Texas, Market Lubbock, Inc. and Plains Cooperative Oil Mill, Inc., which
agreements shall be made a part of this Resolution as if fully copied herein in detail.
DGV:da/ddres/ccdocs/co-opres.res
February 2, 1996
/ Resolution No. 5102
February 8, 1996
Item #32
WAMUNW DEED O(' S Vtn (
Date: U)G,r, W
Grantor: CITY OF LUBBOCK, a Texas Home Rule Municipal Corporation Gi O R, to R K
Grantee: PLAINS COOPERATIVE OIL MILL, INC. <G ?Ce-G
Grantee's Mailing Address (including county): P. O. Box 841, Lubbock, Lubbock County, Texas 79408-
0841
Consideration: $10.00 and other good and valuable consideration, to Grantor herein paid by Grantee herein,
the receipt and sufficiency of all of which is hereby acknowledged and confessed, and in accordance with,
and for the consideration expressed in, that certain RESOLUTION No. 5102 of the City Council of the City
of Lubbock dated February 8, 1996.
Property (including any improvements): A tract of land out of Section 1, Block B, T.T.R.R. Co. Survey,
Lubbock County, Texas, and being more particularly described as follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and beginning comer of this tract, whence the
Southwest corner of Section 1, Block B, T.T.R.R. Co. Survey, Lubbock County, Texas, bears North
89°58'50" West, 38.08 feet and bears South 00*01'20" West, 90.00 feet;
THENCE North 00*01'20" East, 2467.19 feet to a 1/2" Iron Rod and Cap, set for the Northwest corner of
this tract;
THENCE North 89033'58" East, 2177.78 feet to a 1/2" Iron Rod and Cap, set for a corner of this tract;
THENCE South 32°51'08" East, 567.13 feet to a 1/2" Iron Rod and Cap, set for a corner of this tract;
THENCE South 71°20'52" East, 658.94 feet to a 1/2" Iron Rod and Cap, set for a corner of this tract;
THENCE South 65°27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap, set in the West R.O.W. line of
Loop 289 for a corner of this tract;
THENCE South 00°24'00" West, along the West R.O.W. line of said Loop 289, 369.03 feet to a R.O.W.
monument found in the West line of Loop 289 for a corner of this tract;
THENCE South 00°23'53" West, along the West R.O.W. line of said Loop 289, 509.38 feet to a R.O.W.
monument found in the West line of Loop 289 for a corner of this tract;
THENCE South 07051'16" West, 439.49 feet to a 1/2" Iron Rod and Cap, set for a P.C. of a curve to the
right;
THENCE Southwesterly, along the arc of said curve, an arc distance of 308.32 feet to a 1/2" Iron Rod and
Cap, set for the P.T. of said curve, said curve has a radius of 215.00 feet and a chord that bears South
48°56'16" West, 282.57 feet;
THENCE South 00°16'05" West, 10.05 feet to a 1/2" Iron Rod and Cap, set for a corner of this tract;
THENCE North 89058'50" West, 3462.88 feet to the Place of Beginning.
Reservations from and Exceptions to Conveyance and Warranty:
SUBJECT TO any and all terms, provisions, conditions, warranties, covenants, and indemnities set out in that
certain Agreement on Economic Development, Contract for Deed, and Lease entered into between Grantor
and Grantee, and specifically made a pan of the RESOLUTION, referenced above, and incorporated by
reference therein as if fully copied in detail.
To the extent ad valorem taxes may be assessed against the Property for all years subsequent to 1996, and to
the extent any such ad valorem taxes are not abated by agreement between Grantee and the various taxing
authorities having the right to assess and collect ad valorem taxes on the Property, Grantee hereby assumes
the obligation for payment thereof.
Grantor, for the Consideration and subject to the Reservations from and Exceptions to Conveyance
and Warranty, grants, sells, and conveys to Grantee the Property, together with all and singular the rights and
appurtenances thereto in anywise belonging, to have and hold it to Grantee, Grantee's successors or assigns
forever. Grantor binds Grantor and Grantor's successors to warrant and forever defend all and singular the
Property to Grantee and Grantee's successors and assigns, against every person whomsoever lawfully
claiming or to claim the same or any part thereof, except as to the Reservations from and Exceptions to
Conveyance and Warranty.
When the context requires, singular nouns ja4Trtmeups include the plural.
David R. LanKton, Mayor
THE STATE OF TEXAS
COUNTY OF LUBBOCK
This instrument was acknowledged before me on the L4* day of rpm , 1996, by
David R. Langston, Mayor, on behalf of CITY OF LUBBOCK, a Texas Home Rule Municipal Corporation.
Notary Public, State of Texas
NOTARY PUSL'.,, _,..: C' TS:::..:i
my COMv=ON Elmm " I o • tr q'i
Prepared in the Law Office of:
TU BERLAKE AND WEAVER, P. C.
1005 15th Street
Lubbock, Texas 79401
The parties set forth in Section 1, for the consideration set forth herein, agree as follows:
1.0 PARTIES
1.1 Plains Cooperative Oil Mill, Inc., P. 0. Box 841, Lubbock, Texas 79408-0841,
("PCOM")
1.2 City of Lubbock, a home -rule municipality, P. 0. Box 2000, Lubbock, Texas
79457-0001, ("City")
1.3 Market Lubbock, Inc., P. 0. Box 2000, Lubbock, Texas 79457-0001, ("Market
Lubbock")
1.4 Lubbock Power & Light & Water, 916 Texas Avenue, Lubbock, Texas 79401,
("LP&L"), a department of the City
2.0 RECITALS
2.1. Premises: See Exhibit A hereto.
(A) Reinvestment Zone: The Premises are located in a reinvestment zone
designated as provided by law.
(B) Utilities: City represents that water, sewer, electric and gas are adjacent to
The Premises and that City will make.its utilities available to PCOM
during the lease term.
(C) TNRCC: The Premises may be subject to some future TNRCC Order
concerning water contamination. However, it is the opinion of the City
that said Premises is not subject to any existing TNRCC Agreed Order and
no remediation has been ordered for said Premises as said Premises are not
located within the boundaries of any existing TNRCC Agreed Order.
2.2 Constitutional Authority:
Article 3, Sections 52-a, of the Texas Constitution provides that the Legislature may provide
for the creation of programs and the making of loans and grants of public money for the
public purposes of development and diversification of the economy of the state, the
elimination of unemployment and underemployment, the stimulation of agricultural
innovation, the fostering of the growth of enterprises based on agriculture, or the
development or expansion of transportation or commerce in the State of Texas.
The Legislature has enacted new laws to implement the above referenced Constitutional
provision, including Section 380.001 of the Local Government Code, which provides that a
municipal governing body may establish and provide for the administration of one or more
economic development programs including programs for grants of public money to promote
local economic development and to stimulate business and commercial activity in the
municipality.
(A) Article 835s: Article 835s of Vernon's Annotated Civil Statutes provides
that a home -rule municipality may acquire land by any lawful means other
than eminent domain and may lease the land to a private corporation for
use in manufacturing or another commercial activity.
(B) Section 272,001: Section 272.001 of the Local Government Code allows
City to sell the premises without the notice and bidding requirements at its
fair market value as determined by an appraisal obtained by City if the
City desires to have the premises developed under a project plan adopted
by City for a Reinvestment Zone.
(C) Section 312.001 et sea: The Property Redevelopment and Tax Abatement
Act (Chapter 312 of the Tax Code) authorizes the City to enter into a Tax
Abatement Agreement with the owner of taxable real property located in a
reinvestment zone (conditional upon the owner of the property making
specific improvements to the property) to exempt from taxation the value
of real or of tangible personal property located on the real property.
2.5 PCOM Expansion:
PCOM desires to expand its current operations by the construction of additional facilities at
a cost of approximately $20,000,000.00, which will increase its number of employees by an
estimate of 35 employees. The proposed improvements are described in the plans heretofore
presented and declared by PCOM to City and Market Lubbock, Inc. (the "Proposed
Improvements"). Said improvements and employment shall be accomplished within two (2)
years after execution of a tax abatement agreement to be executed between PCOM and the
City and such new construction and increased employment are further consideration for this
Agreement. PCOM agrees to meet the employment requirements of a grant agreement to be
entered into by PCOM and Market Lubbock, Inc., at a later date, and, in the event such
employment requirements are not met, PCOM will rebate an amount of $10,000.00 per
employee not hired to Market Lubbock, Inc.
(A) Incentive: This Agreement is made as an incentive for PCOM to locate such
expansion and new facilities in the City of Lubbock.
(B) Economic Development: This Agreement is made as a part of the economic
development program of the City and of Market Lubbock, Inc. for the public
purpose of elimination of unemployment or underemployment within the
City, the stimulation of agricultural innovation, the fostering of the growth of
enterprises based upon agriculture, the expansion of commerce, and to
stimulate business and commercial activity in the City of Lubbock and the
surrounding area.
(C) Liquidated Damages: In the event that PCOM does not construct the
contemplated $20,000,000 plant or does not employ the contemplated 35
employees within two (2) years, it shall be liable to City for liquidated
damages in the amount of $312,000.
I : _ � B ►/ 1 �1►Y�
3.1 Contract for Deed:
Pursuant to the authority of Section 272.001 (b) (6) of the Local Government Code,
PCOM agrees to purchase the premises from City under a Contract for Deed in the
form attached hereto as Exhibit "3.1" and made a part hereof for all intents and
purposes. The amount to be paid for the premises is the fair market value of the
premises as determined under the procedures set forth in Section 272.001 (b) plus
an additional $100.00 to be paid as set forth in the Contract for Deed.
3.2 Lease:
Until such time as PCOM acquires legal title under the Contract for Deed, City
agrees to lease the Premises to PCOM and PCOM agrees to lease the premises from
City upon the terms and provisions as set forth in the Lease Agreement attached
hereto as Exhibit "3.2" and made a part hereof for all intents and purposes.
NNOW; � 1 7 N ,_ Ma Zell)3
PCOM agrees to expend at least $20,000,000 in improvements to the
Premises.
3.4 Tax Abatement:
City agrees to abate all taxes for real and tangible personal property located on the
premises for a period of ten (10) years pursuant to a separate Tax Abatement
Agreement to be attached hereto as Exhibit "3.4". City will use its best efforts to
assist PCOM in obtaining a similar tax abatement from Lubbock County.
3.5 Grant:
Pursuant to the authority of Section 380.001 of the Local Government Code,
Market Lubbock hereby agrees to provide a grant of $312,000.00 to PCOM, to be
used in adapting the premises to its proposed use.
3.6 Sewage Effluent:
PCOM, during the continuance of the Lease, subject to prior approval of the Texas
Natural Resources Conservation Commission, may purchase and use treated
sewage effluent from the City at a declining block type rate in which the cost would
be less for more effluent used. The effluent is to be the subject of a separate
effluent agreement upon provisions generally provided in agreements of this kind
and on rates at least as favorable as to other customers of City, with a rate
beginning at around $.50 per 1,000 gallons and no meter charge.
1 ► : .t��jQl i�
City agrees to cooperate in good faith with PCOM to accommodate reasonable
driveway access as to number and size to 50th Street, and/or the Loop, consistent
with PCOM's use of the premises and Proposed Improvements and applicable City,
state and federal laws, ordinances and regulations. To the extent state or federal
consent is required, City will assist and support PCOM in securing such consents.
PCOM acknowledges that the City has no authority to surrender or negotiate away
its legislative or governmental authority, which is essential to the public welfare,
and that nothing contained in this Agreement or the attachments hereto shall be
deemed or interpreted to waive such legislative or governmental authority of the
City.
3.8 Storm Water Runoff Fees:
So long as City owns the premises, City will not impose Storm water runoff fees or
surcharges on the premises or on PCOM unless required to do under applicable
state or federal laws, including any City ordinances required to be enacted pursuant
to such laws or applicable permit requirements, which City cannot reasonably avoid
in the use of its best efforts.
During the planning and building process, City will work with PCOM to make
available any possible credits to any storm water assessments, fees or taxes.
1 %1W17=
So long as City owns the Premises, City will not impose any fees or surcharges for
sanitary sewer lines to the premises or PCOM unless required to do so under
applicable state or federal law which City cannot reasonably avoid in the use of its
best efforts.
3.10 Zoning and Platting:
Market Lubbock, the City and/or LP&L will initiate a zone change for the premises
to accommodate the proposed use of The Premises by PCOM and will fund the
costs of such zoning change and will provide the funding for the platting and
dedication of the land and for the pro-rata fees.
3.11 Utilities:
Market Lubbock, the City and/or LP&L will provide infrastructure funds to extend
water, sewer, electric and gas utilities to the premises based on the LP&L
infrastructure benefits formula. City hereby agrees to make available to the leased
premises its utility services at existing commercial rates during the term of this
lease. City shall not be responsible for any interruption of utility services outside of
its direct control and authority.
3.12 Rail Access:
There is a main line of Santa Fe that runs adjacent to the premises as well as a rail
spur owned by Burlington Northern. These two companies have merged
ownership. Market Lubbock, the City and/or LP&L will fund the extension of rail
service to the premises, including a siding tract, if needed, to avoid blocking the
spur for other use.
3.13 Total Incentives:
Notwithstanding any provision in this agreement, including Sections 3.10, 3.11 and
3.12, the total incentives to be paid to PCOM by Market Lubbock, the City, and/or
LP&L under this agreement is limited to an aggregate $650,000.00, not including
the grant stated in Section 3.5 herein.
3.14 TNRCC:
(A) That the City is currently in compliance with the Texas Natural Resources
Conservation Commission ("TNRCC") Agreed Order (on groundwater
remediation and the groundwater pollution concerning nitrate level and other
toxic wastes pollution and discharges) and will remain in compliance
throughout the terms of the Lease.
City further warrants and covenants that it will after the cancellation or
expiration of the Lease and the final payment and performance under the
Contract for Deed continue to comply with such order and take such other
steps that it may be required by law to take on the groundwater remediation
and groundwater pollution or other environmental hazards created by its
operations previously on the property and to indemnify and hold harmless
PCOM from same.
(B) That to the best of the City's knowledge, and except for the groundwater
pollution being addressed by the TNRCC Agreed Order, there are no
environmental discharges on the property and that City is not in violation of
any federal, state or local environmental or toxic waste law, statute or
ordinance.
(C) That City will disclose to PCOM future remedial efforts and monitoring
contemplated by or required of City and advise PCOM of any violation of such
Agreed Order and will promptly bring its remediation efforts into compliance.
This warranty and covenant survives the consummation of this Agreement, the
termination of the lease and the consummation of the Contract for Deed.
(D) That City is solely responsible for the environmental condition that existed
prior to possession by PCOM and City indemnifies and holds PCOM harmless
with respect to all such conditions existing prior to PCOM's possession. This
warranty and covenant survives the consummation of this Agreement, the
termination of the lease and the consummation of the Contract for Deed.
(E) That City will use its best efforts to insure that any future remedial efforts as to
groundwater pollution will not be conducted in a manner which interferes with
PCOM's use of the premises.
(F) City agrees to disclose to PCOM and allow copying of all information, test
data, reports, or other documents of any kind dealing with the contamination of
the property, its source, status before this date, on this date and hereafter and
all remediation and compliance with TNRCC orders and other remedial
measures affecting the premises.
This Agreement contains the entire understanding and agreement reached by the
parties and supersedes all other written or oral exchanges, agreements,
arrangements. or negotiations between them or their legal representatives, and may
not be altered, amended or modified, except by writing properly executed by the
party to be charged thereby.
All covenants and agreements herein shall inure to the benefit of and be binding
upon the parties hereto and their respective successors and assigns.
4.3 Future Assurances:
The parties agree to cooperate fully and use their best efforts to carry out the full
purpose and intent of this Agreement. Each party agrees to take such future actions
and execute such additional documents as may be required or appropriate to give
full force and effect to this Agreement.
4.4 Force Majeure•
If constructing the PCOM required improvements or curing any default (other than
failure to pay rent, insurance premiums, or ad valorem taxes) or performing any
other covenant or term is delayed by reason of war, civil commotion, act of God,
governmental restrictions, regulations, or interference, fire or other casualty, or any
other circumstances beyond PCOM's control or that of the party obligated or
permitted under this Agreement to do or perform the term or covenant, regardless
of whether the circumstance is similar to any of those enumerated or not, each party
so delayed is excused from performance during the delay period.
4.5 Captions:
The captions, headings, and arrangement used in this Agreement, and documents
attached hereto, are for convenience only and do not in any way affect, limit,
amplify or modify the terms and provisions hereof.
4.6 Multiple Counterparts:
This Agreement may be simultaneously executed in a number of identical
counterparts, each of which for all purposes shall be deemed an original. This
Agreement may also be executed separately by all or any of the parties, and all such
Agreements shall collectively be deemed as an original executed Agreement of all
of the parties.
SIGNED AND EXECUTED on this the 8th
ATTEST:
Secretary
ATTEST:
��
Bettyeson, tity Secretary
APPROVED AS TO CO TENT:
Debra Forte', Assistant City Manager
APPROVED AS TO FO
Donald G. Vandiver, First Assistant
City Attorney
edagldoc
February 7, 1996
day of February , 1996.
PLAINS COOPERATIVE OIL MILL,
INC.:
By: IN r n
—Wayjie Martff4 President
CITY O BB6CK---7
R.
pBBOCK, INC.: -
WILSON SURVEYING CO., INC.
3330 - 70TH STREET, SUITE 201
LUBBOCK, TEXAS 79413
(806) 7924731
JANUARY 26, 1996
FIELD NOTES
FIELD NOTES on a 189.92 acre tract of land out of Section 1, Block B, T. T. R R. Co. Survey,
Lubbock County, Texas and being more particularly described as follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and beginning comer of this tract,
whence the Southwest corner of Section 1, Block B, T. T. R. R. Co. Survey, Lubbock County, Texas
bears North 89°58'50" West, 38.08 feet and bears South 00°01'20" West, 90.00 feet;
THENCE North 00'01120" East, 2467.19 feet to a 1/2" Iron Rod and Cap, set for the Northwest
comer of this tract;
THENCE North 89°33'58" East, 2177.78 feet to a 1/2" Iron Rod and Cap, set for a comer of this
tract;
THENCE South 32151'08" East, 567.13 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE South 71 °20'52" East, 658.94 feet to a 1/2" Iron Rod and Cap, set for a comer of this
tract;
THENCE South 65°27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap, set in the West R.O.W.
line of Loop 289 for a corner of this tract;
THENCE South 00124'00" West, along the West R.O.W. line of said Loop 289, 369.03 feet to a
R.O.W_ monument found in the West line of Loop 289 for a corner of this tract;
THENCE South 00°23'53" West, along the West R.O.W. fine of said Loop 289, 509.38 feet to a
R.O.W. monument found in the West line of Loop 289 for a corner of this tract;
THENCE South 07*51'16" West, 439.49 feet to a 1/2" Iron Rod and Cap, set for a P.C. of a curve
to the right;
PAGE -1-
�'x
THENCE Southwesterly, along the arc of said curve, an arc distance of 308.32 feet to a 1/2" Iron
Rod and Cap, set for the P.T. of said curve, said curve has a radius of 215.00 feet and a chord that
bears South 48'56'16" West, 282.57 feet;
THENCE South 00' 16'05'! West, 10.05 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE North 89'58'50" West, 3462.88 feet to the Place of Beginning.
CONTAINING 189.92 acres.
CERTIFIED CORRECT �' 2
REGI"XED PROFESSIONAL LAND SURVEYOR
PAGE - 2 -
31,500
CONTRACT FOR DEED
Date:
Seller: City of Lubbock, a Texas Home Rule Municipal Corporation
Seller's Mailing Address:
City of Lubbock
Box 2000
Lubbock, Texas 79457
Lubbock County
Attn: Property Manager
Buyer: Plains Cooperative Oil Mill, Inc.
Buyer's Mailing Address:
Plains Cooperative Oil Mill, Inc.
P. O. Box 841
Lubbock, Texas 79408
Lubbock County
Property (Including County): See Legal Description attached as Exhibit A.
Reservations from and Exceptions to Conveyance and Warranty: See Exhibit B.
Sale Price: $312,100.00
Down Payment: $312,000.00
Deferred Principal Amount: $100.00
Annual Interest Rate on Deferred Principal Amount from Date: N/A
Annual Interest Rate on Matured, Unpaid Amounts: N/A
Annual Payments: $1.00 per year for 100 years, with the last payment on or before
December 31, 2096
1
Place for Payment (including county):
P. O. Box 2000
Lubbock, Texas 79457
Lubbock County
Date of Annual Payments: In advance of the first day of each calendar year.
Date of First Annual Payment: On or before December 31, 1996.
Other Terms of Payment: The deferred principal amount and the annual payments thereon
may be pre -paid at any time.
Cash Deed In Escrow: Seller is executing a warranty deed on the property described in Exhibit
A naming Buyer as grantee, subject to the reservation from and exceptions to conveyance and
warranty and subject to any matters created, permitted, or suffered by Buyer after the deed's date.
The warranty deed is not delivered to Buyer at this time. Upon receipt of the down payment set
forth herein, the warranty deed will be delivered in escrow to Plains National Bank of West
Texas ("escrow agent"), whose mailing address is P. O. Box 271, Lubbock, Texas 79408. When
Buyer has paid the entire deferred principal amount ($100.00), Buyer will be entitled on written
request to delivery of that warranty deed from escrow. Notwithstanding any other provision to
the contrary, the escrow agent shall deliver the warranty deed to Buyer free of escrow upon
receipt of the entire deferred principal amount ($100.00) before or after any alleged default of
Buyer. In performing under this paragraph, the escrow agent may rely only on the documents as
they are delivered, and the escrow agent is not responsible for the accuracy or authenticity of the
documents. Seller and Buyer hold harmless and indemnify the escrow agent against further
liability for acts performed under this paragraph, except for the escrow agent's fraud or gross
negligence. Seller and Buyer shall mutually agree to the substitution of a new escrow agent upon
the withdrawal or resignation of the existing escrow agent or for any other reason. The fees and
expenses of the escrow agent will be paid by Buyer.
Property Not Segregated On Tax Rolls: The property is not segregated on the tax rolls from
other real estate owned by Seller, and Seller will not cause it to be so segregated until it is
conveyed to Buyer.
Agreement to Sell: Seller agrees to sell the property to Buyer; Buyer agrees to buy it; and both
parties agree to be bound by this contract.
Buyer agrees to pay Seller the sale price for the property. Buyer is paying Seller the
down payment concurrently with entering this contract; Buyer will pay Seller the deferred
principal amount in annual payments on the dates and at the place specified. Annual payments
will begin on the date of first annual payment and continue regularly until the entire deferred
principal amount has been paid.
When Buyer has paid the entire deferred principal amount, Seller will convey the
property to Buyer by warranty deed subject to the reservations from and exceptions to
conveyance and warranty.
Buyer's Obligations:
1. On or before execution of this contract, Seller will pay all taxes and assessments
against the property through the date of execution. Buyer acknowledges that the property
currently is exempt from ad valorem taxes. Buyer will pay when due all taxes and assessments
on the property incurred after the date of execution of this contract.
2. Buyer will permit Seller and Seller's agents to enter the property at reasonable
times to inspect it for compliance with Buyer's obligations, all in accordance with the terms of a
Lease of even date herewith.
3. The Buyer will maintain comprehensive general liability insurance naming Seller
as co-insured and waiving subrogation in an amount of not less than $1,000,000.00 for bodily
injury and property damage.
Seller's Rights:
1. If Buyer defaults in prompt payment of the annual payments or violates any other
of Buyer's obligations, Seller, after giving not less than 90 days written notice with opportunity
to cure the default, declare the entire unpaid deferred principal amount immediately due and
enforce their collection.
Seller may invoke any or all of these remedies only after Buyers default continues for
ninety days.
Buyer may cure default by complying with the terms of this contract up to the date of
compliance.
Seller Warranties, Covenants & Indemnity:
Seller warrants and covenants to Buyer as follows:
1. That the Property is currently in compliance with the Texas Natural Resources
Conservation Commission ("TNRCC') Agreed Order on groundwater remediation and the
groundwater pollution concerning nitrate level and other toxic wastes pollution and discharges
and will remain in compliance throughout the terms of this contract.
2. There are no environmental discharges on the property and the Seller is not in
violation of any federal, state or local environmental or toxic waste law, statute or ordinance to
the best of Seller's knowledge. Buyer may make any and all necessary inspections of the
property and to consult with any and all regulatory authorities having jurisdiction of the property,
to satisfy itself as to the condition of the property. However, Buyer shall rely upon its own
inspections and observations and is buying the property "as is."
3. That Seller will disclose to Buyer any future remedial efforts and monitoring
contemplated by or required of Seller and advise Buyer of any violation of any TNRCC Order
and will promptly bring its remediation efforts into compliance.
4. Seller has the full power and authority to enter into the transaction, that all
required actions to approve the transaction have been duly taken and that the person signing on
behalf of the Seller is the appropriate person.
5. That Buyer's intended use as represented to Seller may be properly accommodated
by zoning or other ordinances.
6. That Seller is solely responsible for the environmental condition of the property as
it existed prior to possession by Buyer and Seller indemnifies and holds Buyer harmless with
respect to all such conditions existing prior to Buyer's possession. Buyer shall be responsible for
any environmental conditions that arise from Buyer's use of the property and Buyer indemnifies
and holds Seller harmless with respect to all such conditions. This indemnity survives the
closing of this contract.
7. That Seller will use its best efforts to insure that any future remedial efforts as to
groundwater pollution will not be conducted in a manner which interferes with the Buyer's use of
the premises.
8. That Buyer may drill a water well on the premises and Seller specifically
authorizes Buyer to use groundwater from the property, provided Buyer understands that the
Seller does not guarantee either water quantity or quality and that the water is not suitable for
potable purposes. Further Buyer shall comply with all laws, rules and regulations of the State of
Texas, the TNRCC, and the High Plains Underground Water District with regard to such well.
9. That Seller will not cause or suffer to be placed upon the property any lien,
restriction, easement or other encumbrance affecting the property without the written consent of
Buyer, except for "taking" by eminent domain or such matters as may arise as a result of
governmental action in the interest of public health, safety and welfare.
General Provisions: The covenants, warranties and indemnities of Seller and Buyer herein shall
be true as of the date of execution of this contract and shall survive closing.
1 . As long as Buyer promptly performs all obligations in this contract, Buyer has the
right to possession of the property.
2. This contract, and any part of or interest in the property, may be freely assigned,
sold, conveyed, transferred, pledged, or mortgaged by Buyer.
4
3. Any notice under this contract must be written and must be personally delivered
or sent by registered or certified mail to Seller's or Buyers mailing address, which may be
changed by notice to the other party; notice under this contract will be considered given on the
date of personal delivery or mailing. If not mailed, the notice is considered given when it is
delivered to Buyer at Buyer's place of business.
4. Buyer understands and acknowledges that Buyer does not acquire legal title by
this contract and that Buyer will not acquire legal title until Seller's deed is delivered.
5. Seller may not transfer legal title to the property without Buyer's written consent
so long as this Contract for Deed remains outstanding and the Tenant is not in default of the lease
agreement entered into with the Seller concurrently with this contract. If Seller transfers legal
title with Buyer's written consent, Seller will require the transferee to assume Seller's obligations
in this contract. In the event that Buyer's interest in this property shall be canceled or forfeited,
Buyer agrees to execute and file of record an affidavit removing any cloud upon the title to the
property created by this contract.
6. Buyer has entered into a long term lease with Seller of even date herewith, and
has obtained an owners title insurance policy issued by Service Title Co. of Lubbock, Texas on
such leasehold estate which sets forth the status of title as of the date hereof. Buyer accepts the
property subject only to the matters as set forth in such title Commitment. Seller shall pay all
costs in obtaining said owners title insurance policy in the amount of $312,000.00. Buyer may
obtain issuance of a title insurance policy based on such Commitment upon the exercise of its
option to purchase the property. A copy of said title insurance Commitment is attached to the
Lease as Exhibit B.
7. This agreement shall bind, inure to the benefit of, and be binding upon the parties
hereto and their respective successors and assigns.
8. This Contract for Deed is executed pursuant to a separate Agreement on
Economic Development and is subject to all of its terms, provisions and conditions set forth
therein, including a Tax Abatement Agreement between the parties that is included in the
Agreement on Economic Development as Exhibit 3.4.
9. When the context requires, singular nouns and pronouns include the plural.
IN WITNESS OF THIS AGREEMENT, the undersigned Seller and Buyer execute this
agreement as of the day and year first above
ATTEST:
a�a-, L�- (1'��
Betty Nf. J6hnsonvCity Secretary
APPROVED AS TO CONTENT:
It" 42"-- t
Debra Forte', Assistant City Manager
APPROVED AS TO FORM:
onald G. Vandiver, First Assistant
City Attorney
ATTEST:
T
Secretary
PLAINS COOPERATIVE OIL MILL,
INC.:
By:_(/�i
Wayne MaKiin,PPresident
By its signature below, Plains National Bank of West Texas, as escrow agent, accepts the
responsibilities of escrow agent as set forth herein.
Plains National Bank of West Texas
By:
Printed �,,f . ,r� S
Title_ V1.;1P
ACKNOWLEDGMENT
STATE OF TEXAS
COUNTY OF LUBBOCK
This instrument was acknowledged before me by David R. Langston, Mayor of the City
of Lubbock, on this L1 i,,, day of o a,, P 11996.
0PUBLr.ATnERIHE EGGER
IC,
NOTARY STATE OF TERAS
'AY COMMISSION EXPIRES 10• Ie•A'1
STATE OF TEXAS
COUNTY OF LUBBOCK
Notary Public, State o exas
ACKNOWLEDGMENT
This instrument was acknowledged before me o 1996, by
Wayne Martin, President of Plains Cooperative Oil Mill, Inc., a Tex orporation, on behalf of
said corporation.
NotaryPublic, State of exas
WILSON SURVEYING CO., INC.
3330 - 70TH STREET, SUITE 201
LUBBOCK, TEXAS 79413
(806) 792-4731
JANUARY 26, 1996
FIELD NOTES
FIELD NOTES on a 189.92 acre tract of land out of Section 1, Block B, T. T. R. R. Co. Survey,
Lubbock County, Texas and being more particularly described as follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and beginning corner of this tract,
whence the Southwest corner of Section 1, Block B, T. T. R R Co. Survey, Lubbock County, Texas
bears North 89°58'50" West, 38.08 feet and bears South 00*01'20" West, 90.00 feet;
THENCE North 00'01'20" East, 2467.19 feet to a 1/2" Iron Rod and Cap, set for the Northwest
corner of this tract;
THENCE North 89°33'58" East, 2177.78 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE South 32°5F08" East, 567.13 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE South 71 °20'52" East, 658.94 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE South 65°27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap, set in the West R.O.W.
line of Loop 289 for a corner of this tract,
THENCE South 00°24'00" West, along the West RO.W. line of said Loop 289, 369.03 feet to a
R.O.W. monument found in the West line of Loop 289 for a comer of this tract;
THENCE South 00°23'53" West, along the West R.O.W. line of said Loop 289, 509.38 feet to a
R.O.W. monument found in the West line of Loop 289 for a corner of this tract;
THENCE South 07151'16" West, 439.49 feet to a 1/2" Iron Rod and Cap, set for a P.C. of a curve
to the right,
PAGE -I-
THENCE Southwesterly, along the arc of said curve, an arc distance of 308.32 feet to a 1/2" Iron
Rod and Cap, set for the P.T. of said curve, said curve has a radius of 215.00 feet and a chord that
bears South 48°5616" West, 282.57 feet;
THENCE South 00° 16'05" West, 10.05 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE North 89°58'50" West, 3462.88 feet to the Place of Beginning.
CONTAINING 189.92 acres.
CERTIFIED CORRECT'
REGI PROFESSIONAL LAND SURVEYOR
PAGE - 2 -
31,500
THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR
NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED
REPRESENTATIVE HAS COUNTERSIGNED BELOW.
UPDATED O5018R
COMMTTNIEN T FOR TITLE INSURANCE
ISSUED BY
CHICAGO TITLE INSURANCE COMPANY
We. Chicago Tide Insurance Cmnpany, will issue our tick insurance policy or polida (the Policy) to You (the
proposed insured) upon payment of the premium and other charges due, and compliance with the requirements in
Schedule B and Schedule C. Mr Policy will be in the form approved by the Texas Department of Insurance err the date
of issuance. and wilt insure your interest in the land descnl)cd in Schedule A. The estimated premium for our Policy
and applicable endorsements is shown on Schedule D. There may be aMtional charges such as recording fen, and
expedited delivery expenses.
This Commitment ends ninety (90) days from the effective date. unless the Policy is issued sooner, or failure to
6bue the Policy is our fault Our liability and obligations to you are under the express m= of this Commitment and
cart when this Commitment expires.
ISSUED BY:
SERVICE TITLE COMPANY
1502 Texas Avenue
Lubbock, Terms 72401
(806) 763-8261
Anthoraed siyaatury
TOK F. JOFES
Reorger Forth No. 82$T M v 7/93)
CHICAGO TITLE INSURANCE COMPANY
U
Praid.t.
Secrewy.
E x vblt <R
TEXAS TITLE INSURANCE INFORMATION
Title irssurmice insures you agibm toss resulting from certain risks to your ride.
The commitment farriide rnsmucc is the title insurance company's promise to isnuc the title insurance policy.
The commitmait is a legal documcaL You shnuld review it carefully to completely understand it before your
closing date.
El num do litulo le asegvra en rclacibn a phdidas rexuhantes de cierws riesgos que puc&- n afectar cl ferules
de zu propiedad.
El C so ro de Titulo ca la romesa de la u de tftulm de emitir la liza
do zcguuto�de titulo. El C iso es un documento � tcd debbee le do cuidadosamcnte y en=ddcrlo
completamente an de� pares finalisar w transaccibn.
if
Your Commitirient for Title Insurance is a legal contract between you ud us. 'the Commitment is nut an opinion or
report of your tide. It is a contract to issue you a policy subject m the Commlrmcnt's terms and requirements.
Before issuing a Commitment for True iasttrvm-c (the Commitment) or a Title Insurance Policy (the Policy). the Tilk
Insurance (am paay {the Cottrpariy) determines whether Ile title is ins=Nc. This determination has already been
made. Part of ihaz determination involves the Company's decision to insurc the title axccp[ for certain risks that will
cox be coveted by the Policy. Snme of these risks am listed in Schedule B of the atuched Commimtent as Exeeptitim.
Other risks arc slated in the Policy as Exclusions. These risks will not be covered by the Policy.
Another part of the detcrmirtatiott iavplves whether the promise to insure is conditioned upon certain requlmnents
being met. ScheduleC of the Cutiuniuncat lists these requirements that muc he satisfied or the Cumpany frill refuse
to cover them. You may want to discuss any matters shown in schedules B and C of the Commitment with an attorney.
Thesc matters will affect your We and your use of the land.
When your policy is issued, the covcmge will be limited by the Policy's Exceptions, Exclusions and Conditions, defined
below.
- EXCEPTIONS art title risks that a Policy generally covers but dots not Covet in a particular instance. Exceptions
are shown on Schedule B or discussed in Schedule C of fhe Commitment. They an also be add*d if you do trot comply
with the Conditions section of the Commitment. When the Policy is issued. all Exceptions will be on Schedule B of
the Policy.
- EXCLUSIONS are tick risks Mat a Policy generally does not cover. Exclusions ate contained in the Policy but not
shown or discussed in the Commitment.
- CONDITIONS are additional provisions that quality or limit yoarcuverage. Conditions include your responsibilities
andthose Ctmditie oftharc a�Ct�ysune�lhe Co incd in
nt a Policy but not shown a discussed in the Commitment. The Policy
You an ga a copy of the policy form approved by the State Board of insurance by calling Chicago Title Insurance
Company at 14lU(►-"2.4303 or by calling die title insurance agent that issued the C nmmitment_ The Statc Board of
lnsuratice may revise the policy form from time to time.
You can also Let a brochure than explains the policy from the Texas Depanment of Insurance by
callinr. 1-R00-2523439.
Before the Policy is issued, you may request changes in the polity. Some of the changes to consider are:
Request amendment of the "area and boundary" exception (Schedule B. paragraph 2). To get this
amendment, you must famish a survey. On the Owner Policy. you must pay an additional prrntium
for the amendment. if the survey is acceptable to the Company, your Policy will insure you against
loss because of discrepancies or conflicts in boundary lines, enizvachments or protrusions. or
overlappingofimpmvetnents. The Company may thendecidenot toinsure against specific boundary
or survey problems by making special excVuoas in the Policy.
-Allow the Company to add an exception to "rights of panics in possession." If you refuse this
exception. the Company of the title insurance agent may inspect the property. The Company may
except to and not insure you against the rights of specific personm such as renters, adverse owners
or casement holders who occupy ibc land. The Company may charge you for the incpecuon. If you
want to make tour own inspection. you must sign a Waivcr of Inspection form and allow the
Company to add this exception to your Policy.
Tile entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums
unless you want to increase your coverage at a later dart and the Company arm to add an Incased Value
Endorsement.
CONDITIONS AND STIPULATIONS
1. If you have actual knowledge of any matter which may affect the title or mnrtgage covered by M Commitment.
that is sot shown in r-hodute B. you mutt notify us in writing. If you do cot notify us in writutg, our liability to you
is ended or reduced to the extent that your failure to notify us affecu our liability. If you do notify us. or we learn of
such matter, we may amend Schedule B, but we will not be relieved of liability already kicumd_
Z Our liability is only to you. and others who art included in the &funition of lasured in the Policy to be Issued. Our
liability is only for actual lass incurred in your reliance on this Commitment to comply with its mquirements or to
acquire the interest in the krxL Our liability is limited to the amount shown in Schedule A of this Commitment and
will be subject to the following terns of the Policy. Insuring Provisions, Conditions and Stipuladuns, and Exclusions.
wj uva
Spy A
AOeat'a Fie #: GF#U0e1 ElfPH a dafe 01 Ooaia�ert
DaM ban& Februsq 4 19M
February 22.19M at 7:00 Bdodc am
1. PoRcy or poGrJes to be iauad: Amount
(a) Form T-1: OWNER POLICY JAMOUK OF LEASE
OF WLE OMMANCE (Mot appicable for aeproved oae-ta-tour tamely reskieratal rnd estate)
Proposed kwured: PLAM COOPERATIVE OIL MILL, INC_
(b) Form T-IR. TEXAS RESIDOfiML.00IMER POLICY
OF TITLE OMIRANCE - Dwito-few Famly Residerwros
Proposed Insured:
(c) Form T-2: UKXffGAGEE POUCY
OF TITLE INSURANCE
Proposed insured:
Proposed Borrower:
(d) Form T-13: MORTGAGEE TOLE
POLICY BOOM ON NFER1M CONSTRUCTION LOAN
Proposed Insured:
Proposed Son ww.
(e) OTHER;
Proposed insured:
2. The kdarest In the Rued covered by thb Cwaftf M is:
Leasehold
9- Record We to the k nd on the Effective Dais appears to be vested In:
CITY OF UMB=
,- vDd desorption of bird:
L e p' n'd Emma by Lease Apn uwa elated . executed by -as
evidenced by Memomndan of Lease recorded In Vokana . Pap of fiM Real Property
Records of Uftook County, Taus.
WE COMTTMUATIOM OF SCHEDULE A, ATTACM HERETO & MADE A PART HEREOF)
SCHElME A
BEGINNING at a 1/2' troe rod and cap sat for the Soudrmd and beginning corner of tMs tract,
what rce the Scuonved Darner of Section 1. Bbck B, T.T. RA Co. hurray, I. obbock County, Teas
bears North W36's0' Wet, 32.88 fatak end bears South 00*01'20' Wet, 90.00 lest;
THENCE North 00-01W MA ZW.19 feel to a 1/r toe rod and cap art for the NorMneat corner of
aft track
THENCE North a9`WW East, ZiTT.T6 feet to a 1/r ton rod and Dap sd for a corner of this bast;
THENCE South 32'51W Eat% 07.13 feat to a 1/2' iron rod and cap ad for a corner of MW tact;
THENCE South 71-2o'6Y East, $54.04 feat to a 1/2' kon rod and cap act for a corner of Of tract;
THENCE South 63-27W Easl, MCI$ fed to a 1/2' Iron rod end cap act in the West RO.W. line of
Loop 20 for ■ comsr of this tract;
THENCE South 00-24 W wad, Mona the Wet R.O.W. fine of aid Loop 289, 369.03 IW to a R.O.W.
morxttnsrtt 1Ound in the West line of Loop 280 for a turner of M!e tract
THENCE South 00-ffs3' Was, atone the West R.O.W. fins of ad Loop 211% 50 M feet to a R.O.W.
mpr mark found in the West fins of Loop 269 for a corner of this track
THENCE South Or6l't6' Wast, 439ae feet to a 1/s' tor► rod &W cop sat for a P., of a curve to the
d^
THENCE Southimsterly, Hong the arc of said curve, on an; distance of 90a.32 tact to a 1/r iron rod
and cap set for the P.T. of said ctrtra, uW carve hos a radius of hh6.09 foal and a chord bust bears
South id*Wlf' West, 282.67 fad;
THENCE South 00.16W Wet, 10.05 feet to a 1/2' rod and cap set for a corner of this tract;
THENCE North U-SWW West, 34=118 tat to the Ph" of B"lm ins.
NOTE. The Company does not rqx ess.tt Mat the above square footage or acreage akulations are
correct
BZCRPTIWts FROM COVZR tcZ:
in addition to the Entusion and tanditioro deed stipulation, your Policy silt not toter lots, costs, attorner•s fees,
and expenses re"ting frw..
I. The fatlodno restrictive cove— s of ramrd itad d War cue mat either insert specific reeordIng data or delete We
exception):
en"lal Rolla 1 is PERM DELAM.
2. Any disc*enf aponefes, ell¢ts, or shortages In
in ea or boundary lines. or any onercedwents, or protrusions or any
overtopping of improvements.
J. soracateed or coeanity property or wrvivorship rights, if ow. of any spouse of any fesunad. (Applies to tM 0~ Policy
only.)
4. Argr testa or rights asserted by wwvm, including, but not ltaited to, persons, the public, corporation, goverlownts or
COW unities.
a. to tidelandt, or Inds comprising the shores or bda of novisoble or peram W rivers and strewn. lakes,
top, gulfs or ocoons, or
b. to lards boyond tha line of tie borbor or huliboed lines as established er d wad by any goverment, or
c. to fillt+tn laMs, or artificial istords, or
d. to statutory motor rights. Including riparian rights, or
e. to the oree estard-ang from the lire of dean la tide to the line of vegetation, or the right of seem to
drat area or essa ent slono and acres that oree.
(Applies to the O er Policy only.)
S. standby teas, taxes and assassments by ory tolling authorlty for the year IM and subse*mnt years, and stbaequent taxed
end anessm nts by deny taxing autharity for prior rem ds to dww in lord usage or aeurthip. (ibe company inures that
standby fen, rases and atsapmmir by ay lasing authority for the 1"6 are net yet OR rd payobto.)
a. The to. wed conditions of the documents vacating your interest in the lord.
T. Materials fumishd or labor performed in earrreetion meth planned eanstruc ton before signing and detiverfng the lien
deetsent deaerfbed In SchodAe A. if the lord is port of the homestead of the emner. ""ties to the Nortgege Title policy straw
an lnt*Ha Construction Leon only, rd any be detetd if sattsfectery evidence is furnished to us before a biller is issued.)
9. Lien red Iewes that affect the title to the land, but that are subordinate to the lien of the Insured acrtgage. V4V4te3
to tlortgoge Pot try only)
9. The fotlamins matters anal all tens of the dot xwft ereatirq or offering evidence of time setters. ()re rst insert setters
or delete this escI- tier-):
a. Rights and claims of tenants and parties in possession.
b. Terns and Conditions of Lease Agreement dated ,
by and between , as evidenced by
Memorandum of Lease recorded in Volume , Page _
of the Real Property Records of Lubbock County, Texas.
C. Agreement on Economio Development dated by and
between , as evidenced by
d. Terms and Conditions of Contract for Deed dated ,
by and between City of Lubbock and Plains Cooperative oil
11, Inc, as evidenced by Contract for Deed recorded in
volume , Page of the Real Property Records
of Lubbock County, Texas.
94
el d
WJ VVtl
C COMMITMENT
Cownitmeat Number: SCHEDULE D
G.F. Nambcr.
L Disclosure of CHICAGO TITLE INSURANCE COMPANY, a Missouri Corporuion
a. The following is a listing of cash shareholder owning or controlling, directly or indirectly, ten (10%). or more of the thanes of
CHICAGO TITLE INSURANCE COMPANY:
CHICAGO TITER AND TRUST COMPANY, an Illinois CoUoruion
b. Tbc directors of CHICAGO TITLE 1146URANCE COMPANY
MR_ ALVIN J. SL'HNKE. President, Fire Intexstare Mortgage Company of Illinois. Chicago. It.
MR. JOHN J. BURNS. JR_ Praidwt, AlleghanY Corporation, New York, NY
MR, PETER H. DAtLEY, Dailey Croup International, Rew, NV
MR. ALLAN P. J=BY, JR., President, Liberty Square. Inc.. Mendham, N1
MR. ANTHONY B. KUKLIN. JR.. Paul, Weiss, Rifkind. Wharton k Carlson. New York, NY
MS. M- LEANNE LACHMAN. Managing Director Schroder Real &tare Associates, New York. NY
MR. DANA O. LEAVITT. President, Leavitt Management Company, San Francisco, CA
MR. LAWRENCE F_ LEVY, Chariman of the Hoard. The Levy OryanUation. Chicago. LL
MR. EARL L NEAL, Earl Neal & Associates, Chicago. IL
MR. RICHARD L POLIAY, Pres. and Chief Operating Ofliccr, Chicago Thle Ins. Co.. Chicago, IL
MR. WALTER D. SCOTT, Kellog School of Management a Northwestern Unhcrsity. Northfield. Chiotgo, IL
MR. RICHARD P. TOFT. Chairman and CEO. Chicago TitL- Insurance Co. and President
Chicago Tide and Trust Company. Chicago, IL
e . The Dames of the Chairman and Chief Executive Officer: RICHARD P. TOFf
President and Chief Operating Officer. RICHARD L POLJAY
Secretary: THOMAS J. ADAMS
Treasures: GILBERT J. TOURETZ
2. Disclosure of MVICE TIUE CMeANT
trek ta,...swee Aome
a CORPORATICK
eCORPORATtON. PARTNER,SkUP. SOLE "OPRMTOR. OR e71NLry
a. The names of each shareholder. owner. partner. or other person having, owning or eorruolHag one pm-,Wt (144) or more of the Tick
Insurance Agent tLat will receive a portion of the prcmiom arc as follows:
b. Each shareholder. owner, partner, cr other person having, owning or controlling 10 petmt (IOW.) or more of an entity that has, owns
or controls one petrent (1%) or more of the Tick Insurance Agent that will receive a portion of the premium arc as follows:
FRED R. TUDERI.M. JR.
J9ME PAEHTSH
'CAM $ TORFS
e. If the agent is a corporation, the as of any directors; president, executive or senior vice president, sca tary and utasurer if any of
the Tale Inmratter Agent are as follows:
rm a a -jR . SUSEp ARP
Ta1tYV D PAR4�S I,J(I(q_RAXEv
'L'f3i-1!f 7Q7fB5
— I= II r
3 "You are entitled to receive advance disclosure of sankmeat charges in connection with the proposed transaction to which this
commimter rcl4es_ Upon your request, such disclosure will be made to you. Additionally. the name of any person, firm or corporation
receiving any sum from the settlement of this transaction will be disclosed on the closing or settlement statement." "You arc further
advised that the estimated title premium' is:
Owners Policy S 110T [POWlr AT
M-192Stt Ply S TEMS TIM
Endorsement Charges S
'Coral S
Of this toW amo,,,,e • S 19 —(or%) will be paid to the policy issuing Title Insurance Company. $ _ 81 ror9s)
will be retained by the issuing Title Insurance Agent: and the remainder of the estimated premium will be paid to other Patties as follows:
AMOUNT TO WHOM FOR SERVICES
$-----(Or We)
S roe Yes) _
S rorW.)
• The estimated premium is based upon Information furnished to us as of the date of this Commitment for'Tide lnsuraacc. Final
determinarmn of the amount of the premium will be made u dosing in accordance with the Rules and Regulxtious adopted by the State
Board of Insurance."
SCHEDUM D
T"AS COVAUMMENT -
Y
d o to
0
(,� �y4 • 1i1Y6,� � Cj M Z N
W ti .a v x<
Uj
LU
Q aEli
z o o¢� x ~ • :>ss "�
a � o
n o
IMPORTANT NOTICE
FOR INFORMATION, OR TO MAKE A COMPLAINT CALL OUR TOLL -FREE TE1MHONE NUMBER
1-800-442-4303
ALSO YOU MAY CONTACT THE TEXAS DEPARTMENT OF INSURANCE AT
1-900-252-3439
to obtain information era:
1. Ming a Complaint against an insurance company or agent.
2. whether an insurancc company or aEpu is lw nerd,
3, received complaints againu an insurance company or agent,
4. policyboWer rights, and
5. a list of consumer publications mad services available through the Dcpamnent.
YOU MAY ALSO WRITE TO THE TEXAS DEPARTMENT OF INSURANCE
P.O. BOX 149104
AUSTIN, TEXAS 78714-9104
FAX NO. (512) 475-1771
AVISO IMPORTANTE
PARA INFORMACION. O PARA SOMETER UNA QUETA LLAME AL NUMERO GRATIS
1-800-442-4303
TAMBIEN PUEDE COMUNICARSE CON EL DEPARTAMENTO DE SEGUROS DE TEXAS AL
1->500-252-3439
pars obwner Kunnaci6n sobrc:
1. Coam sorcerer una quep en corura de ww cornpatia de scguros o ageme do segu=.
2. si una tornWia do segums o agentc de segutns time licends.
3. qucjas tecibidas err coma do una corrtpai is do seguros c agents de seguros.
4. los dercchus del asegurado, y
5. w a lista de publicacioncs y wvielos pant eonsumidorcs disponibles a travfs del Deparwoento.
TAMBIEN PUEDE ESCRIBIR AL DEPARTAMENTO D£ SEGUROS DE TEXAS
P.O. BOX 149104
AUSTIN. TEXAS 78714-9104
FAX NO. (512) 475-1771
V :WUtU 1 1
Date:
Grantor: CITY OF LUBBOCK, a Texas Home Rule Municipal Corporation
Grantee: PLAINS COOPERATIVE OIL MILL, INC.
Grantee's Mailing Address (including county): P. O. Box 941, Lubbock, Lubbock County, Texas 79408-
0841
Consideration: $10.00 and other good and valuable consideration, to Grantor herein paid by Grantee herein,
the receipt and sufficiency of all of which is hereby acknowledged and confessed, and in accordance with,
and for the consideration expressed in, that certain RESOLUTION No. 5102 of the City Council of the City
of Lubbock dated February 8, 1996.
Property (including any improvements): A tract of land out of Section 1, Block B, T.T.R.R. Co. Survey,
Lubbock County, Texas, and being more particularly described as follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and beginning comer of this tract, whence the
Southwest comer of Section 1, Block B, T.T.R.R. Co. Survey, Lubbock County, Texas, bears North
89058'50" West, 38.08 feet and bears South 00'01'20" West, 90.00 feet;
THENCE North 00'01'20" East, 2467.19 feet to a 1/2" Iron Rod and Cap, set for the Northwest comer of
this tract;
THENCE North 89°33'58" East, 2177.78 feet to a 1/2" Iron Rod and Cap, set for a comer of this tract;
THENCE South 32°51'08" East, 567.13 feet to a 1/2" Iron Rod and Cap, set for a comer of this tract;
THENCE South 71°20'52" East, 658.94 feet to a 1/2" Iron Rod and Cap, set for a comer of this tract;
THENCE South 65°27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap, set in the West R.O.W. line of
Loop 289 for a comer of this tract;
THENCE South 00°24'00" West, along the West R.O.W. line of said Loop 289, 369.03 feet to a R.O.W.
monument found in the West line of Loop 289 for a comer of this tract;
THENCE South 00°23'53" West, along the West R.O.W. line of said Loop 289, 509.38 feet to a R.O.W.
monument found in the West line of Loop 289 for a comer of this tract;
THENCE South 07°51'16" West, 439.49 feet to a 1/2" Iron Rod and Cap, set for a P.C. of a curve to the
right;
THENCE Southwesterly, along the arc of said curve, an arc distance of 308.32 feet to a I/2" Iron Rod and
Cap, set for the P.T. of said curve, said curve has a radius of 215.00 feet and a chord that bears South
48°56'16" West, 282.57 feet;
THENCE South 00° 16'05" West, 10.05 feet to a 1/2" Iron Rod and Cap, set for a comer of this tract;
THENCE North 89°58'50" West, 3462.88 feet to the Place of Beginning.
Reservations from and Exceptions to Conveyance and Warranty:
SUBJECT TO any and all terms, provisions, conditions, warranties, covenants, and indemnities set out in that
certain Agreement on Economic Development, Contract for Deed, and Lease entered into between Grantor
and Grantee, and specifically made a part of the RESOLUTION, referenced above, and incorporated by
reference therein as if fully copied in detail.
To the extent ad valorem taxes may be assessed against the Property for all years subsequent to 1996, and to
the extent any such ad valorem taxes are not abated by agreement between Grantee and the various taxing
authorities having the right to assess and collect ad valorem taxes on the Property, Grantee hereby assumes
the obligation for payment thereof.
Grantor, for the Consideration and subject to the Reservations from and Exceptions to Conveyance
and Warranty, grants, sells, and conveys to Grantee the Property, together with all and singular the rights and
appurtenances thereto in anywise belonging, to have and hold it to Grantee, Grantee's successors or assigns
forever. Grantor binds Grantor and Grantor's successors to warrant and forever defend all and singular the
Property to Grantee and Grantee's successors and assigns, against every person whomsoever lawfully
claiming or to claim the same or any part thereof, except as to the Reservations from and Exceptions to
Conveyance and Warranty.
When the context requires, singular nouns and pronouns include the plural.
CITY OF LUBBOCK
By:
THE STATE OF TEXAS
COUNTY OF LUBBOCK
David R. Langston, Mayor
This instrument was acknowledged before me on the _ day of , 1996, by
David R. Langston, Mayor, on behalf of CITY OF LUBBOCK, a Texas Home Rule Municipal Corporation.
Notary Public, State of Texas
Prepared in the Law Office of:
TEABERLAKE AND WEAVER, P. C.
1005 15th Street
Lubbock, Texas 79401
LEASE
RECITALS
1. Article 3, Section 52-a, of the Texas Constitution provides that the Legislature
may provide for the creation of programs and the making of loans and grants of public money tior
the public purposes of development and diversification of the economy of the state, the
elimination of unemployment or underemployment, the stimulation of agricultural innovation.
the fostering of the growth of enterprises based on agriculture, or the development or expansion
of transportation or commerce in the state of Texas.
2. The Legislature has enacted new laws to implement the above referenced
Constitutional provision, including Section 380.001 of the Local Government Code, which
provides that a municipal governing body may establish and provide for the administration of
one or more economic development programs to promote local economic development and to
stimulate business and commercial activity in the municipality.
3. Article 835s of Vernon's Annotated Civil Statutes provides that a home -rule
municipality may acquire land by any lawful means other than eminent domain and may lease
the land to a private corporation for use in manufacturing or another commercial activity.
4. Plains Cooperative Oil Mill, Inc. desires to expand its operations in the City of
Lubbock by increasing the investment in its plant and facilities by an investment of
approximately twenty million dollars ($20,000,000) and by increasing employment by
approximately 35 employees during the initial term of this lease agreement and within two (2)
years of the execution of a tax abatement agreement between Plains Cooperative Oil Mill, Inc..
and the City of Lubbock.
5. This Lease Agreement is executed as part of an economic development program
of the City of Lubbock, Texas, for the public purposes of elimination of unemployment or
underemployment within the City of Lubbock, the stimulation of agricultural innovation, the
fostering of the growth of enterprises based on agriculture, the expansion of commerce and to
stimulate business and commercial activity in the City of Lubbock and the surrounding area.
PARTIES
This lease agreement is made and entered into this 8th day of Fehruary
19 96, by and between CITY OF LUBBOCK. a Texas Home Rule Municipal Corporation,
("Landlord"), and PLAINS COOPERATIVE OIL MILL, INC. ("Tenant").
r
ARTICLE 1. DEMISE OF LEASED PREMISES
S 1.01. In consideration of the mutual covenants and agreements of this lease, and other
good and valuable consideration, Landlord demises and leases to Tenant and Tenant leases from
Landlord the premises situated on 50th Street in Lubbock, Lubbock County, Texas.
The premises are more particularly described in Exhibit A. attached to this lease, and are referred
to as "the premises" or "the leased premises."
S 1.02. Tenant is to have and to hold the premises, together with all rights, privileges,
easements, appurtenances, and immunities belonging to or in any way appertaining to the
premises, including but not limited to any easements, rights, title, and privileges of Landlord as
the property owner (not as a governmental unit), existing now or at any time during the lease
term, in, to, or under adjacent streets, sidewalks, alleys, party walls, and property contiguous to
the premises and reversions that may later accrue to Landlord as owner of the premises by reason
of the closing of any street, sidewalk, or alley by state or municipal authorities.
ARTICLE 2. LEASE TERM
Fixed Beginning and Termination Date
S 2.01. The term of this lease is fifty (50) years, beginning on March 1, 1996, and ending
on December 31, 2046, unless terminating sooner as provided in this lease.
Right To Extend
S 2.02. Tenant may extend this lease for fifty (50) years by giving Landlord written
notice of Tenant's intention to do so within the last two (2) years before the lease term expires
but no later than six (6) months before it expires, under all the terms of this lease.
Termination
S 2.03. This lease will terminate without further notice when the term specified in S 2.01
expires, and any holding over by Tenant after that term expires, other than as provided in S 2.02,
will not constitute a renewal of the lease or give Tenant any rights under the lease in or to the
premises.
ARTICLE 3. RENT/CONSIDERATION
Tenant shall pay to Landlord at City of Lubbock, P. O. Box 2000, Lubbock, Texas 79457,
Attention: Property Manager, or at such other places as Landlord may from time to time
designate by written notice served on Tenant, without deduction or offset of any kind, as rent for
the leased premises, the sum of one dollar ($1.00) for each calendar year of the term, payable in
advance on the last day of each such calendar year, except that the rent for 1996 shall be paid at
the time of execution of this lease by Tenant.
2
ARTICLE 4. UTILITIES
Landlord shall make available water, electricity, garbage service, and other public utilities
to the leased premises and agrees to provide City utilities at existing commercial rates during the
term of this lease. Landlord shall not be responsible for any interruption of utilities outside of its
direct control and authority.
ARTICLE 5. USE OF PREMISES
Primary Purpose
S 5.01. Tenant may use the premises for any lawful purpose. However, the parties agree
that the primary purpose for which the premises have been leased and hired is to develop and
construct facilities for manufacturing and commercial purposes.
Illegal Use Not Permitted
S 5.02. Tenant may not use all or any part of the premises or any building situated upon
them for any use or purpose that violates any valid and applicable law, regulation, or ordinance
of the United States, the State of Texas, or the City of Lubbock, or other lawful authority with
jurisdiction over the premises. But Tenant is not considered to have violated this provision
unless:
a. Landlord or another governmental entity has notified Tenant in a writing
specifying the alleged violation;
b. There has been a final determination that the specified use violates the law,
regulation, or ordinance specified in the notice;
C. The specified law, regulation, or ordinance is valid and applies to the premises;
and
d. Tenant has had a reasonable time after the final determination to cure the specified
violation.
ARTICLE 6. CONSTRUCTION BY TENANT
General Conditions
S 6.01. Tenant may at any time, and from time to time, during the lease term erect,
maintain, alter, remodel, reconstruct, rebuild, replace, and remove buildings and other
improvements on the premises, and correct and change the contour of the premises in accordance
with all applicable laws, ordinances and regulations.
S 6.02. Landlord agrees to cooperate with Tenant concerning easements, dedications,
zoning, and restrictions of the premises as follows:
Easements and Dedications. To provide for the more orderly development of the
premises, it may be necessary, desirable, or required that street, water, sewer,
drainage, gas, power lines, and other easements and dedications and similar rights
be granted or dedicated over or within portions of the premises. Landlord agrees,
on Tenant's request, to join with Tenant in executing and delivering the
documents, from time to time, and throughout the lease term, as may be
appropriate, necessary, or required by the several governmental agencies, public
utilities, and companies for the purpose of granting the easements and dedications.
b. Zoning. If Tenant considers it necessary or appropriate to obtain use, zoning, or
subdivision and precise plan approval and permits for the premises or any part of
them, Landlord will assist Tenant in preparing the documents, petitions,
applications, and authorizations as are appropriate or required to submit the
premises, or any part of them, for the purposes of obtaining conditional use
permits, zoning and rezoning, tentative and final tract approval, precise plan
approval, and further, for the purposes of annexation to or the creation of districts
and governmental subdivisions.
Restrictions. At Tenant's request, Landlord will, from time to time, assist Tenant
or join in the execution and delivery of the documents that are appropriate,
necessary, or required to impose on the premises covenants, conditions, and
restrictions providing for the granting of exclusive uses of the premises, or any
part of them; the establishment of common and parking areas; the establishment
of party walls; provisions for enlarging the common and parking areas by
establishing mutual and reciprocal parking rights and the rights of ingress and
egress; and other like matters, all of which are for the purpose of orderly
development of the premises as a commercial unit.
Expenses. Tenant exclusively bears the cost and expense of any action required
of Landlord under Subsections (a) through (c) above.
Nothing contained in this Article or elsewhere in this Lease shall be construed as
an abrogation of its legislative or governmental responsibilities by Landlord and
Landlord does not hereby agree to issue any required permits, licenses or uses nor
does Landlord guarantee that any required permits, licenses or uses will in fact be
issued by the Landlord or by any other governmental unit.
Right To Remove Improvements
S 6.03. Tenant may, at any time during the continuation of this lease, or within one year
thereafter, remove any furniture, machinery, equipment, or other trade fixtures owned or placed
by Tenant, its subtenants or licensees, in, under, or on the premises, or acquired by Tenant. All
furniture, machinery, equipment, or other trade fixtures in, under, or on the premises, including
any buildings or other above or below ground structures, not removed by Tenant within one
year shall become the property of Seller for all purposes.
S 6.04. Tenant shall maintain a general liability insurance policy naming the Landlord
as co-insured and waiving subrogation in an amount of not less than $1,000,000.00.
ARTICLE 7. ENCUMBRANCE OF LEASEHOLD ESTATE
Tenants Right To Encumber
S 7.01. Tenant may, at any time and from time to time, encumber the leasehold interest,
by deed of trust, mortgage, or other security instrument, without obtaining Landlord's consent,
but no such encumbrance constitutes a lien on Landlord's fee title. Landlord agrees to
subordinate any and all Landlord Liens for unpaid rent.
Notices to Lender
S 7.02. At any time after execution and recordation in Lubbock County, Texas, of any
mortgage or deed of trust encumbering Tenant's leasehold interest, Lender may notify Landlord
in writing that the mortgage or deed of trust has been given and executed by Tenant and furnish
Landlord with the address to which it wants copies of notices to be mailed, or designate some
person or corporation in the City of Lubbock, Texas, as its agent and representative for the
purpose of receiving copies of notices. Landlord must mail to Lender and to any agent or
representative designated by Lender, at the addresses given, duplicate copies of all written
notices that Landlord gives or serves on Tenant under the terms of this lease after receiving such
a notice from Lender.
Lender's Right To Prevent Forfeiture
S 7.03. Lender may do any act required of Tenant to prevent forfeiture of Tenant's
leasehold interest; all such acts are as effective to prevent a forfeiture of Tenant's rights under
this lease as if done by Tenant.
Lender's Right To Foreclose
S 7.04. Lender may acquire and succeed to Tenant's interest under this lease by virtue of
any foreclosure and may transfer, convey, or assign Tenant's title to the leasehold estate created
by this lease to any purchaser provided that the lender or purchaser assumes all obligations of
Lessee under this Lease.
ARTICLE 8. ASSIGNMENT AND SUBLEASE
Tenant may sell or assign its leasehold estate in its entirety or any portion of it, or may
sublet the premises or any portion of them or any portion of any building or other improvement
erected on the premises, at any time and from time to time, and the rights of Tenant or its
successor or assignee, may pass by operation of law. But each such transfer, assignment, or sale
is subject to Landlord's rights and privileges under this lease and will not release Tenant from its
obligations under this lease.
ARTICLE 9. DEFAULT AND REMEDIES
Termination on Default
S 9.01. If Tenant defaults in performing any covenant or term of this lease and does not
correct the default within twenty days after receipt of written notice from Landlord to Tenant and
any lender as required by Section 7.02, Landlord may declare this lease, and all rights and
interest created by it, terminated. If Landlord elects to terminate, this lease will cease as if the
day of Landlord's election were the day originally fixed in the lease for its expiration.
Subleases Not Affected
S 9.02. Landlord's exercising any remedy does not affect the existence of subleases that
were entered into with Tenant according to this lease provided that said sublessees shall be in
compliance with the terms and conditions of this lease at such times. Any and all subleases
made by Tenant shall be made expressly subject to the terms of this lease.
Contract for Deed Not Affected
S 9.03. A Contract for Deed between the parties of even date herewith is not affected in
any way by the termination, cancellation, default or election of other remedy by the landlord
herein.
ARTICLE 10. LANDLORD'S WARRANTIES AND COVENANTS
Warranty of Title
S 10.01. Landlord warrants that it is the owner in fee simple absolute of the premises,
subject only to the covenants, conditions, easements, and other matters of record set forth in a
title insurance Commitment attached hereto as Exhibit B.
Warranty of Quiet Enjoyment
S 10.02. Landlord covenants that as long as Tenant pays the rent and other charges under
this lease and observes the covenants and terms of this lease, Tenant will lawfully and quietly
hold, occupy, and enjoy the premises during the lease term without being disturbed by Landlord
or any person claiming under Landlord, except for any portion of the premises that is taken under
the power of eminent domain. However, this section shall not be deemed to be an abrogation of
Landlord's legislative or governmental duties required to be performed in the public interest.
S 10.03. Environmental Warranties
S 10.031. Landlord warrants that it is currently in compliance with the Texas
Natural Resources Conservation Commission ("TNRCC") Agreed Order on groundwater
remediation and the groundwater pollution concerning nitrate level and will remain in
compliance throughout the terms of this lease.
S 10.032. There are no environmental discharges on the property and the Landlord
is not in violation of any federal, state or local environmental or toxic waste law, statute
or ordinance to the best of Landlord's knowledge. However, Tenant shall be allowed to
make any and all necessary inspections of the property and to consult with any regulatory
authorities having jurisdiction of the premises in order to satisfy itself as to the condition
of the premises. Tenant shall rely upon its own inspections and observations of the
premises and shall take the premises "as is."
S 10.033. The Landlord will disclose to Tenant future remedial efforts and
monitoring contemplated by Landlord and advise Tenant of any violation of any TNRCC
Order and will promptly bring its remediation efforts into compliance.
Authority
S 10.034. Landlord has the full power and authority to enter into the transaction,
that all required actions to approve the transaction have been duly taken and that the
person signing on behalf of the Landlord is the appropriate person.
Zoning
S 10.035. Landlord warrants that Tenant's intended use, as presented to Landlord
may be properly accommodated by zoning or other ordinances.
Covenants by City
S 10.04. Landlord covenants as follows:
S 10.041. Landlord is solely responsible for the environmental condition that
existed prior to possession by Tenant and Landlord indemnifies and holds Tenant
harmless with respect to all such conditions existing prior to Tenant's possession.
However, Tenant shall be responsible for any costs or remediations of environmental
conditions resulting from Tenant's activities on the premises and Tenant shall hold the
City harmless with respect to any such conditions. These covenants shall survive this
lease agreement.
S 10.042. That Landlord will use its best efforts to insure that any future remedial
efforts as to groundwater pollution will not be conducted in a manner which interferes
with the Tenant's use of the premises. These covenants shall survive this lease
agreement.
S 10.043. Landlord will not cause or suffer to be placed upon the premises any lien,
restriction, easement or other encumbrance affecting the premises without the written
consent of Tenant, except for "taking" by eminent domain or such matters as may be
required by governmental authorities in the interest of public health, safety and welfare.
ARTICLE 11. GENERAL PROTECTIVE PROVISIONS
Right of Entry
S 11.01. Landlord reserves the right to enter the leased premises at all reasonable hours
(and if.. in the opinion of Landlord, an emergency exists requiring immediate action, at any time)
to make replacements, repairs, and restorations to any City owned equipment or facilities and to
carry out any work or activities in connection with the improvement, safety, protection, or
preservation of the leased premises. Unless an emergency exists, such entry will be only after
Landlord has given Tenant reasonable notice and Landlord will postpone such entry for good
cause shown by Tenant.
No Partnership or Joint Venture
S 11.02. The relationship between Landlord and Tenant is at all times solely that of
landlord and tenant and may not be deemed a partnership or a joint venture.
No Termination on Bankruptcy
S 11.03. Bankruptcy, insolvency, assignment for the benefit of creditors, or the
appointment of a receiver will not affect this lease as long as Tenant and Landlord or their
respective successors or legal representatives continue to perform all covenants of this lease.
ARTICLE 12. MISCELLANEOUS
Delivery of Rents and Notices
S 12.01. All rents or other sums, notices, demands, or requests from one party to another
may be personally delivered or sent by mail, certified or registered, postage prepaid, to the
addresses stated in this section and are considered to have been given at the time of personal
delivery or of mailing.
All payments, notices, demands, or requests from Tenant to Landlord should be given or
mailed to Landlord at City of Lubbock, P. O. Box 2000, Lubbock, Texas 79457, Attention
Property Manager, or at such other address as Landlord requests in writing.
All payments, notices, demands, or requests from Landlord to Tenant should be given or
mailed to Tenant at Plains Cooperative Oil Mill, Inc., P. O. Box 841, Lubbock, Texas 79408
Attention: Wayne Martin, President, or at such other address as Tenant requests in writing.
Parties Bound
S 12.02. This agreement binds and inures to the benefit of the parties to the lease and
their respective heirs, executors, administrators, legal representatives, successors, and assigns.
Prior Agreements Superseded
S 12.03. This agreement constitutes the parties' sole agreement and supersedes any prior
understandings or written or oral agreements between the parties with respect to the subject
matter. The parties also acknowledge a Contract for Deed and Agreement on Economic
Development of even date herewith and agree to be additionally bound by same.
Amendment
S 12.04. No amendment, modification, or alteration of this lease is binding unless in
writing, dated subsequent to the date of this lease, and duly executed by the parties.
Rights and Remedies Cumulative
S 12.05. The rights and remedies provided by this lease agreement are cumulative, and
either party's using any right or remedy will not preclude or waive its right to use any other
remedy. The rights and remedies are given in addition to any other rights the parties may have
by law, statute, ordinance, or otherwise.
Attorney's Fees and Costs
S 12.06. If, as a result of either party's breach of this agreement, the other party employs
an attorney or attorneys to enforce its rights under this lease, then the breaching party will pay
the other party the reasonable attorney's fees and costs incurred to enforce the lease.
Time of Essence
S 12.07. Time is of the essence of this agreement.
Further Documents
S 12.08. Landlord will from time to time and at any reasonable time execute and deliver
to Tenant, when Tenant reasonably requests, other instruments and assurances approving,
ratifying, and confirming this lease and the leasehold estate created by it and certifying that the
lease is in full force and that no default under the lease on Tenant's part exists. But if any default
on Tenant's part does exist, Landlord must specify in any such instrument each such default.
Contract for Deed
S 12.09. Tenant and Landlord have entered into a Contract for Deed of even date
herewith which provides fora sale of the premises to Tenant upon payment of the Deferred
Principal Amount as defined therein.
Agreement on Economic Development
S 12.10. This Lease is entered into pursuant to an Agreement on Economic Development
and is subject to all the terms, provisions and conditions set forth therein.
Indemnity
S 12.11. Lessee shall indemnify and hold Lessor harmless from all claims and liabilities
related to or arising out of acts or omissions related to the property and the use of the property by
Lessee; provided that no indemnity shall be provided to Lessor for Lessor's own malfeasance or
wrongful acts. This indemnity shall survive the termination of this Lease. Lessor shall
indemnify and hold Lessee harmless from all claims and liabilities related to or arising out of
acts or omissions related to the property and the use of the property by Lessor; provided that no
indemnity shall be provided to Lessee for Lessee's own malfeasance or wrongful acts. This
indemnity shall survive the termination of this Lease.
10
IN WITNESS OF THIS AGREEMENT, the undersigned Landlord and Tenant execute this
agreement as of the day and year first above
ATTEST:
Betty 0 tity Secretary
APPROVED AS TO CONTENT:
[A W AI& I
Debra Forte', Assistlint CityManager
APPROVED AS TO FORM:
+V
Donald G. Vandiver, First Assistant
City Attorney
ATTEST:
Secretary
11
PLAINS COOPERATIVE OIL MILL,
INC.:
By. \ m -
Wayne Martin, President
STATE OF TEXAS
ACKNOWLEDGMENT
COUNTY OF LUBBOCK
This instrument was acknowledged before me by David R. Langston, Mayor of the City
of Lubbock, on this 4-y- day of �Ih w ; 0 , 1996.
1:2Tli :::is: LcGGE:l
NOTARY PUBLIC, STATE OF TEXAS
MY COMMISSION Expn= Io.to-97
STATE OF TEXAS
COUNTY OF LUBBOCK
�C�i-�-tier-�. ieS.Q✓
Notary Public, State of Texas
ACKNOWLEDGMENT
This instrument was acknowledged before me by ayne Martin, President of Plains
Cooperative Oil Mill, Inc., on this day of , 1996.
------------
<.
i
Lseldoc
February 7, 1996
12
Notary Public, State of exas
WILSON SURVEYING CO., INC.
3330 - 70TH STREET, SLTITE 201
LUBBOCK, TEXAS 79413
(806) 7924731
JANUARY 26, 1996
FIELD NOTES on a 189.92 acre tract of land out of Section 1, Block B, T. T. R. R. Co. Survey,
Lubbock County, Texas and being more particularly described as follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and beginning corner of this tract,
whence the Southwest comer of Section 1, Block B, T. T. R. R Co. Survey, Lubbock County, Texas
bears North 89058'50" West, 38.08 feet and bears South 00'01'20" West, 90.00 feet;
THENCE North 00001'20" East, 2467.19 feet to a 1/2" Iron Rod and Cap, set for the Northwest
corner of this tract;
THENCE North 89033'58" East, 2177.78 feet to a 1/2" Iron Rod and Cap, set for a comer of this
tract;
THENCE South 32*51'08" East, 567.13 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE South 71'2U52" East, 658.94 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE South 65'27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap, set in the West R.O.W.
line of Loop 289 for a corner of this tract;
THENCE South 00'24'00" West, along the West R.O.W. line of said Loop 289, 369.03 feet to a
R.O.W. monument found in the West line of Loop 289 for a corner of this tract;
THENCE South 00'23'53" West, along the West R.O.W. line of said Loop 289, 509.38 feet to a
R.O.W. monument found in the West line of Loop 289 for a comer of this tract,
THENCE South 07'51'16" West, 439.49 feet to a 1/2" Iron Rod and Cap, set for a P.C. of a curve
to the right,
PAGE -1-
I- n
THENCE Southwesterly, along the arc of said curve, an arc distance of 308.32 feet to a 1/2" Iron
Rod and Cap, set for the P.T. of said curve, said curve has a radius of 215.00 feet and a chord that
bears South 48 ° 56' 16" West, 282.57 feet,
THENCE South 00' 16'05" West, 10.05 feet to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE North 89°58'50" West, 3462.88 feet to the Place of Beginning.
CONTAINING 189.92 acres.
CERTIFIED CORRECT'
REGI D PROFESSIONAL LAND SURVEYOR
PAGE - 2 -
31.500
CITY OF LUBBOCK
COUNTY OF LUBBOCK
STATE OF TEXAS
AFFIDAVIT
Before me, the undersigned authority, personally appeared Betty M. Johnson,
who, being by me duly sworn, deposed as follows:
My name is Betty M. Johnson, I am of sound mind, over 18 years of age, capable
of making this affidavit, and personally acquainted with the facts herein stated:
I am the custodian of the records of the City Secretary's Office for the City of
Lubbock, Texas. Attached hereto is a copy of the Agreement between the City of
Lubbock and Plains Cooperative Oil Mill, Inc., for industrial tax abatement, Item #13,
Resolution #5147 taken from the City Council's Regular Meeting on March 28, 1996,
from the official records of the City of Lubbock. These records are kept by me, the City
Secretary, in the regular course of business, and it was in the regular course of business of
the City Secretary of the City of Lubbock, Texas or an employee or representatives of the
City Secretary of the City of Lubbock, Texas, with knowledge of the act, event,
condition, opinion, or diagnosis, recorded to make the record or to transmit information
thereof to be included in such record; and the record was made at or near the time or
reasonably soon thereafter. The records attached hereto are the original or exact
duplicates of the original.
Affian
BEFORE ME, the undersigned authority, a Notary Public in and for said County,
Texas, on this day personally appeared Betty M. Johnson, known to me to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that she
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 28th day of March
1996.
� NOTARY PUBLIC, STATE OF TEXAS
Notary Public, State orrexas
Commission Expires: 10/06/97
RESOLUTION NO.5147
March 28, 1996
Item #13
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 Plains Cooperative Oil Mill, Inc., for industrial tax
abatement, which Agreement is attached hereto and which 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
ATTEST:
II.
6vt'. ) � � �11' I
Betty . John on, City Secretary
AP ROVED AS TO CONTENT:
-1 Beesinger, nt .m D' ctor of
Business Development
APPROVED AS TO FORM:
'Daif^
ald G. Van fiver, First Assistant City
1 Attorney
DGVjs/AG-PCOM.RES
ccdocs/March 6, 1996
RESOLUTION NO.5147
March 28, 1996
Item i113
STATE OF TEXAS
COUNTY OF LUBBOCK
This Agreement made this 28th day of March . 1996, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and Plains Cooperative Oil Mill, Inc. (hereinafter called
"Company");
WITNESSETH:
WHEREAS, City did receive from Company on theme day of February, 1996,
an application for tax abatement for a two-part project which includes: Part A, the
construction of a new facility at 50th and Guava, which is further described as a 189.92
acre tract of land out of Section 1, Block B, T. T. R. R. Co. Survey, Lubbock County,
Texas and being more particularly described as follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and beginning comer of
this tract, whence the Southwest corner of Section 1, Block B, T. T. R. R. Co. Survey,
Lubbock County, Texas bears North 89°58'50" West, 38.08 feet and bears South
00'01'20" West, 90.00 feet;
THENCE North 00001'20" East, 2467.19 feet to a 1/2" Iron Rod and Cap, set for the
Northwest comer of this tract;
THENCE North 89°33'58" East, 2177.78 feet to a 1/2" Iron Rod and Cap, set for a
comer of this tract;
THENCE South 32°51'08" East, 567.13 feet to a 1/2" Iron Rod and Cap, set for a comer
of this tract;
THENCE South 71°20'52" East, 658.94 feet to a 1/2" Iron Rod and Cap, set for a corner
of this tract;
THENCE South 65°27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap, set in the West
R.O.W. line of Loop 289 for a corner of this tract;
THENCE South 00°24'W' West, along the West R.O.W. line of said Loop 289, 369.03
feet to a R.O.W. monument found in the West line of Loop 289 for a comer of this tract;
THENCE South 00°23'53" West, along the West R-O.W. line of said Loop 289, 509.38
feet to a R.O.W. monument found in the West line of Loop 289 for a comer of this tract;
THENCE South 07°51' 16" West, 439.49 feet to a 1/2" Iron Rod and Cap, set for a P.C.
of a curve to the right;
THENCE Southwesterly, along the arc of said curve, an arc distance of 308.32 feet to a
1/2" Iron Rod and Cap, set for the P.T. of said curve, said curve has a radius of 215.00
feet and a chord that bears South 48°56' 16" West, 282.57 feet;
THENCE South 00'16'05" West, 10.05 feet to a 1/2" Iron Rod and Cap, set for a corner
of this tract;
THENCE North 89°58'50" West, 3462.88 feet to the Place of Beginning.
and Part B, expansion of the existing manufacturing facility located at 2901 Avenue A,
which is further described as Lot lA and Lot 4, Plains Cooperative Oil Mill Addition,
City of Lubbock, Lubbock County, Texas; and
WHEREAS, upon review of the above application it was determined that the
facilities will be located in the South Enterprise Zone designated by the City in
Ordinance No. 9591 covering the above described property; and
WHEREAS, the Guidelines and Criteria for Tax Abatement within the
jurisdictions of the taxing units of Lubbock County was heretofore adopted by
Resolution No. 4973 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 for all taxing units
contained within Lubbock County, said guidelines having been adopted by Resolution
No. 4973 of the City on September 28, 1995, and
WHEREAS, the City did thereafter pass Ordinance No. 9591 creating an enter-
prise zone for commercial and industrial tax abatement, said zone including a 189.92
acre tract of land out of Section 1, Block B, T. T. R. R. Co. Survey, Lubbock County,
Texas and being more particularly described as follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and beginning comer of
this tract, whence the Southwest corner of Section 1, Block B, T. T. R. R. Co. Survey,
Lubbock County, Texas bears North 89058'50" West, 38.08 feet and bears South
00001'20" West, 90.00 feet;
AGREEMENT --PLAINS COOPERATIVE OIL MILL, INC. PAGE 2
THENCE North 00°01'20" East, 2467.19 feet to a 1/2" Iron Rod and Cap, set for the
Northwest comer of this tract;
THENCE North 89°33'58" East, 2177.78 feet to a 1/2" Iron Rod and Cap, set for a
comer of this tract;
THENCE South 32°51'08" East, 567.13 feet to a 1/2" Iron Rod and Cap, set for a comer
of this tract;
THENCE South 71°20'52" East, 658.94 feet to a 1/2" Iron Rod and Cap, set for a corner
of this tract;
THENCE South 65°27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap, set in the West
R.O.W. line of Loop 289 for a comer of this tract;
THENCE South 00°24'W' West, along the West R.O.W. line of said Loop 289, 369.03
feet to a R.O.W. monument found in the West line of Loop 289 for a comer of this tract;
THENCE South 00°23'53" West, along the West R.O.W. line of said Loop 289, 509.38
feet to a R.O.W. monument found in the West line of Loop 289 for a comer of this tract;
THENCE South 07*51' 16" West, 439.49 feet to a 1/2" Iron Rod and Cap, set for a P.C.
of a curve to the right;
THENCE Southwesterly, along the are of said curve, an arc distance of 308.32 feet to a
1/2" Iron Rod and Cap, set for the P.T. of said curve, said curve has a radius of 215.00
feet and a chord that bears South 48056' 16" West, 282.57 feet;
THENCE South 00°16'05" West, 10.05 feet to a 1/2" Iron Rod and Cap, set for a comer
of this tract;
THENCE North 89°58'50" West, 3462.88 feet to the Place of Beginning.
and Lot 1A and Lot 4, Plains Cooperative Oil Mill Addition, City of Lubbock, Lubbock
County, Texas; 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 the expansion of the existing manufacturing
facility; and
AGREEMENT —PLAINS COOPERATIVE OIL MILL, INC. PAGE 3
WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a
purpose is to be included in the guidelines for tax abatement and to be eligible for such
treatment; and
WHEREAS, Section IV of the Guidelines and Criteria governing Tax Abatement
for all taxing units contained within Lubbock County adopted by the City Council by
Resolution No. 4973 does recognize construction of a new facility and expansion of
existing facilities as being eligible for tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and Cri-
teria governing tax abatement for all taxing units contained within Lubbock County, as
adopted by Resolution No. 4973, have been met by Company; and
WHEREAS, Company does intend to construct a new manufacturing facility and
expand an existing manufacturing facility; and
WHEREAS, the location of the facility and surrounding real property, which are
to be the subject matter of this Agreement, are attached hereto as Exhibit "A" and made a
part of this Agreement for all purposes; and
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 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. I=. This Agreement shall remain in force and effect for a period
of ten (10) years from the date of its execution and shall expire and be of no further force
and effect after said date.
SECTION 2. Base Ye?r. The base year applicable to real property, other than
the tract described as Part A, which is owned by the City of Lubbock, and which is the
subject of this Agreement, shall be 1996, 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, other than the
tract described as Part A, which is owned by the City of Lubbock, 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 other than the tract described as Part A, which is owned by the
AGREEMENT —PLAINS COOPERATIVE OIL MILL, INC. PAGE 4
City of Lubbock, 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. To the extent permitted by law and in view of Company's option
to purchase the tract described as Part A, hereto owned by the City of Lubbock, only
such improvements shall be abated. The base year amount of such improvements shall
be deemed to be zero.
If the Company should exercise the option to purchase said tract described as Part A
prior to end of term of this agreement, the base year on real property shall be 1996.
SECTION 6. Proj&rtv Ineligible for Tax Abatement. The property described
and set forth in Section IV(5) of the Guidelines and Criteria Governing Tax Abatement
for all taxing units contained within Lubbock County and heretofore adopted by the City
Council by Resolution No. 4973 is incorporated by reference herein as if fully set out in
this Agreement and fully describes the property ineligible for tax abatement.
SECTION 7. Exemption from Tax. The City covenants and agrees to exempt
from taxation, in accordance with Section 4 above, the following properties:
(a) All proposed new improvements to be placed upon a 189.92 acre tract of
land out of Section 1, Block B, T. T. R. R. Co. Survey, Lubbock County,
Texas and being more particularly described as follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and
beginning corner of this tract, whence the Southwest comer of Section 1,
Block B, T. T. R. R. Co. Survey, Lubbock County, Texas bears North
89058'50" West, 38.08 feet and bears South 00'01'20" West, 90.00 feet;
THENCE North 00°01'20" East, 2467.19 feet to a 1/2" Iron Rod and
Cap, set for the Northwest comer of this tract;
THENCE North 89033'58" East, 2177.78 feet to a 1/2" Iron Rod and
Cap, set for a comer, of this tract;
THENCE South 32°51'08" East, 567.13 feet to a 1/2" Iron Rod and Cap,
set for a comer of this tract;
THENCE South 71°20'52" East, 658.94 feet to a 1/2" Iron Rod and Cap,
set for a corner of this tract;
THENCE South 65°27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap,
set in the West R.O.W. line of Loop 289 for a comer of this tract;
AGREEMENT —PLAINS COOPERATIVE OIL MILL, INC. PAGE 5
THENCE South 00°24'00" West, along the West R.O.W. line of said
Loop 289, 369.03 feet to a R.O.W. monument found in the West line of
Loop 289 for a comer of this tract;
THENCE South 00°23'53" West, along the West R.O.W. line of said
Loop 289, 509.38 feet to a R.O.W. monument found in the West line of
Loop 289 for a corner of this tract;
THENCE South 07°51' 16" West, 439.49 feet to a 1/2" Iron Rod and Cap,
set for a P.C. of a curve to the right;
THENCE Southwesterly, along the arc of said curve, an arc distance of
308.32 feet to a 1/2" Iron Rod and Cap, set for the P.T. of said curve, said
curve has a radius of 215.00 feet and a chord that bears South 48°56' 16"
West, 282.57 feet;
THENCE South 00°16'05" West, 10.05 feet to a 1/2" Iron Rod and Cap,
set for a comer of this tract;
THENCE North 89°58'50" West, 3462.88 feet to the Place of Beginning.
and Lot IA and Lot 4, Plains Cooperative Oil Mill Addition, City of
Lubbock, Lubbock County, Texas;, which proposed improvements are set
forth in a plat of the above tracts of land, attached hereto as Exhibit "A"
and Exhibit "B" and made a part hereof.
(b) M eligible tangible personal property placed in or upon the property set
forth in Exhibit "A" and Exhibit "B".
(c) It is further understood that & items affixed to the new improvements
placed upon the real property identified in Exhibit "A" and Exhibit "B"
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 subparagraph (a) above set forth.
SECTION 8. Economic Qualification. It is hereby found by the City that Com-
pany will expend funds in excess of the funds necessary to qualify for tax abatement by
constructing a new manufacturing facility and expanding an existing manufacturing
facility and further that the Company will create new jobs in excess of the percentage
required for tax abatement, all as set forth in Section TV(9)(a & b) of the Guidelines and
Criteria for Tax Abatement adopted by the City through Resolution No. 4973.
SECTION 9. Value of Improvements. Company intends to expend
approximately three million ($3,000,000) dollars in constructing a new manufacturing
facility and thirteen million ($13,000,000) in equipment in Part A of the project, and five
hundred thousand ($500,000) dollars in structural related improvements and three million
AGREEMENT —PLAINS COOPERATIVE OIL MILL, INC. PAGE 6
five hundred thousand ($3,500,000) in equipment in Part B of the project, to be located
within the enterprise zone created by Ordinance No. 9591.
SECTION 10. Creation of New Jobs. Company agrees within twelve (24)
months from the date of execution of this Agreement that it will create thirty-five (35)
full-time equivalent new jobs within the Company plant located at 50th and Guava,
which is further described as a 189.92 acre tract of land out of Section 1, Block B, T. T.
R. R. Co. Survey, Lubbock County, Texas and being more particularly described as
follows:
BEGINNING at a 1/2" Iron Rod and Cap set for the Southwest and beginning corner of
this tract, whence the Southwest comer of Section 1, Block B, T. T. R. R. Co. Survey,
Lubbock County, Texas bears North 89058'50" West, 38.08 feet and bears South
00°01'20" West, 90.00 feet;
THENCE North 00'01'20" East, 2467.19 feet to a 1/2" Iron Rod and Cap, set for the
Northwest corner of this tract;
THENCE North 89°33'58" East, 2177.78 feet to a 1/2" Iron Rod and Cap, set for a
corner of this tract;
THENCE South 32°51'08" East, 567.13 feet to a 1/2" Iron Rod and Cap, set for a comer
of this tract;
THENCE South 71°20'52" East, 658.94 feet to a 1/2" Iron Rod and Cap, set for a corner
of this tract;
THENCE South 65°27'54" East, 694.18 feet to a 1/2" Iron Rod and Cap, set in the West
R.O.W. line of Loop 289 for a comer of this tract;
THENCE South 00°24'W' West, along the West R.O.W. line of said Loop 289, 369.03
feet to a R.O.W. monument found in the West line of Loop 289 for a comer of this tract;
THENCE South 00°23'53" West, along the West R.O.W. line of said Loop 289, 509.38
feet to a R.O.W. monument found in the West line of Loop 289 for a corner of this tract;
THENCE South 07°51' 16" West, 439.49 feet to a 1/2" Iron Rod and Cap, set for a P.C.
of a curve to the right;
THENCE Southwesterly, along the arc of said curve, an arc distance of 308.32 feet to a
1/2" Iron Rod and Cap, set for the P.T. of said curve, said curve has a radius of 215.00
feet and a chord that bears South 48056' 16" West, 282.57 feet;
THENCE South 00'16'05" West, 10.05 feet to a 11T' Iron Rod and Cap, set for a comer
of this tract;
AGREEMENT --PLAINS COOPERATIVE OIL MILL, INC. PAGE 7
THENCE North 89°58'50" West, 3462.88 feet to the Place of Beginning.
and 2901 Avenue A, which is further described as Lot I and Lot 4, Plains Cooperative
Oil Mill Addition, City of Lubbock, Lubbock County, Texas; and use its best efforts to
maintain a minimum of two hundred and eleven (211) jobs during the term of this
Agreement.
SECTION 11. City Access to Property,. Company covenants and agrees that City
shall have access to the property, which is the subject matter of this Agreement, upon
reasonable notice and 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 tax abatement
and this Agreement.
SECTION 12. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate 100 percent of taxes on eligible property.
SECTION 13. Commencement Date. This Agreement shall commence upon the
date of its execution, which date is hereinafter set forth, and shall expire ten (10) years
after such date.
SECTION 14. T,Y.IIi% of Improvements. The Company proposes construct a new
manufacturing facility and expand an existing manufacturing facility as described in
Exhibit "A" and Exhibit "B". The Company further states that the proposed
improvements to the property above mentioned shall commence on the 15th day of
February, 1996, and shall be completed within approximately twelve (12) 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
completion of such improvements and such consent shall not unreasonably be withheld.
SECTION 15. 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 16. Limitation on I Ise.Company agrees to limit the use of the prop-
erty set forth in Exhibit "A" and "B" 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
property to uses consistent with the general purpose of encouraging development of the
enterprise zone during the tens of this agreement_
SECTION 17. 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. 4973 of the City Council of the City of Lubbock.
AGREEMENT --PLAINS COOPERATIVE OIL MILL INC. PAGE 8
SECTION 18. 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 19. Compliance. The City may cancel or modify this Agreement if
the Company fails to comply with the Agreement.
SECTION 20. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK Plains Cooperative Oil Mill, Inc.
City Manager Wayne Martin
P.O. Box 2000 P. O. Box 841
Lubbock, Texas 79457 Lubbock, Texas 79408-0841
AGREEMENT —PLAINS COOPERATIVE OIL MILL, INC. PAGE 9
SECTION 21. 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 28tb d2
PLAINS COOPERATIVE OIL
MILL, INC.
ly q,,ma, -
GENERAL 61ANAGER
Secretary
JB/CB/mc: PlaiwTA.doc
February 27, 1996
ATTEST:
Betty Johnson,
City Secretary
APPROVED S TO CONTENT:
oel Beesiitger
Interim Director of B . ess Development
APPROVED A TO FORM:
Van fiver
Assistant City Attorney
AGREEMENT —PLAINS COOPERATIVE OIL MILL, INC. PAGE
10
EXHIBIT "A"
Page 1 of 4
SECTTON M - PART A
(a) The new facility will consist of a 500 ton per day oil mill and seed storage for
200,000 tons.
(b) L
Office Building
2.
Scales
3.
Maintenance Building
4.
Hull Load and Storage
5.
2 - Seed Dumps and Elevators
6.
Seed Storage and Handling Equipment
7.
Cleaning Building and Equipment
8.
Lint & Huller Building and Equipment
9.
Preparation Building and Equipment
10.
Solvent Plant and Equipment
11.
Boiler Building and Boiler
12.
Sifting and Grinding and Equipment
13.
Meal Load Out Building and Equipment
14.
Oil Load Out Building and Equipment
15.
Oil Tank Storage Area
16.
Cooling Tower
17.
Filter
18.
2 - Bale Presses
19.
Miscellaneous Office Equipment and Supplies
(c) N/A
(d) See Attached Site Map
(e) N/A
(f) The Proposed Schedule for completing the project is early 1997.
(g) This is construction of a new facility as described in item (a).
(h) The proposed 500 ton per day oil mill should cost approximately $16 million.
(i) N/A
3 5 aY"
(j) The new facility should create 36 new jobs.
EXHIBIT "A"
Page 2 of 4
WILSON SURVEYING CO., INC.
3330 - 70TH STREET, SUITE 201
LUBBOCK. TEXAS 79413
(806) 7924731
JANUARY 26, 1996
FIELD NOTES on a 189.92 acre tract of land out of Section 1, Block B. T. T. R- R- Co. Survey,
Lubbock County, Texas and being more particularly described as follows:
BEGINNING at a Ir." Iron Rod and Cap set for the Southwest and beginning corner of this tract,
whence the Southwest corner of Section 1, Block B, T. T. R R. Co. Survey, Lubbock County, Tom
bears North 89.58'50' West, 38.08 fed and bean South 00.01'20' West, 90.00 feet;
THENCE North 00.01'20' East, 2467.19 feat to a 1/2- Iron Rod and Cap, set for the Northwest
corner of this tract;
THENCE North 89' 33'58' East, 2177.78 fed to a 1/2' Iron Rod and Cap, set for a corner of this
tract;
THENCE South 32*51108" East, 567.13 fed to a 112' Iron Rod and Cap, set for a comer of this
tract. -
THENCE South 71.202- East, 658.94 fed to a 1/2' Iron Rod and Cap, set for a corner of this
tract;
THENCE South 65'2TS4' East, 694.19 The to a 1/2' Iron Rod and Cap, set in the West R.O.W.
tine of Loop 289 for a comer of this tract;
THENCE South 00.24'00' West, along the West R.O.W. tine of said Loop 289, 369.03 feet to a
R.O.W. monumau found in the West fine of Loop 289 for a corner of this tract;
THENCE South 00.23'53' West, along the West R.O.W. fine of sand Loop 289, 509.38 fed to a
R-O. W. monument found in the West tine of Loop 289 for a comer of this tract;
THENCE South 07.51'16' West. 439.49 fed to a 1/2' Iron Rod and Cap, set for a P.C. of a curve
to the right;
PAGE-1-
EXHIBIT "A"
Page 3 of 4
THENCE Southwesurly, along the arc of said curve, an arc distance of 308.32 fea to a 1/2" Iron
Rod and Cap, set for the P.T. of said cun•e, said curve has a radius of 215.00 fee and a chord that
bears South 48056'16" West, 292.57 fee;
THENCE South 00" 16V5" West, 10.05 fee to a 1/2" Iron Rod and Cap, set for a corner of this
tract;
THENCE North 89.58'50" West, 3462.88 feet to the Place of Beginning.
CONTAINING 189.92 acres.
CERTIFIED CORRECT
REGI PROFESSIONAL LAND SURVEYOR
PAGE-2-
GUAVA AVE
z
- - -------------------------
F
W I
z
0
------------------------------------------------------------------
v 10
.,V.,, ITRTMR
EXL11131T "B"
Page 1 of 9
SECTION III - PART B
(a) Plains Cooperative Oil Mill, Inc., will add to its existing facility at 2901 Avenue A - a
winterization process and bottling operation.
(b) 1. Winterization Process Equipment
2. Oil Tanks
3. Building/Winterization
4. Bottling Line Equipment
5. Bottling Line
(c) See Site Map Attachment A - Improvement to existing property
(d) See Site Map Attachment B - Include all the tangible and real property located at existing
facility.
(e) Cottonseed
Cottonseed Meal
Cottonseed Hulls
Cottonseed Oil
Cottonseed Linters
Supply Parts
Pickups
Dump Trucks
Loaders
Forklifts
Processing Equipment
Miscellaneous Office Equipment and Supplies
(f) The expansion should be completed in 12 months.
(g) The proposed improvements is an expansion of the facility.
(h) The proposed new winterization process, tank farm, bottling and bottling warehouse;
Cost is approximately $4 million
(i) Plains Cooperative Oil Mill, Inc., 2901 Avenue A facility is valued at $29,853,749 and a
copy of the 1995 tax statement is attached.
0) The new facility should not create any new jobs.
NETA)N IHI-N i'JHI iUN /VH 1Uh IiCILhLS
1995 TAX STATEMENT
VALUATION BREAKDOWN
STITENENTrR01®
�.
1 01 4931 01 01 01 0 1 493 1
JURIsorcTION
TcTK �SSSMED
EXEfPrtONS
TAXMU
y
TAX
IMi
E
TO
NOW
*' TAXES REDUCED BY ADDITIONAL SALES TAX (COUNTY: $0.76, CITY: $0.22)
PROPERTY :R55156 WHEELOCK 2ND
BLK 63 TR A-1
161650 PLAINS CO-OP OIL MILL INC
PO BOX 1889
LUBBOCK, TX 79408
CEO�'-Wg2m" ""'N'
[ITMS l ii�Ts
TM U MWITIN rll
n�M�� 1 ��.
�/:I�.�1�� 1 11 �30—
■ulli� Wor o m
oM es NdEM* I
0 \
IF YOU HAVE QUESTIONS PLEASE CALL (806) 762-5000.
TAXES BECOME DELINQUENT ON FEBRUARY 1.
AFTER JUNE AN ADDITIONAL PENALTY OF 15% MAY BE IMPOSED
ON THE AMOUNT OF TAXES. PENALTY AND INTEREST DUE.
AFTER JULY AN ADDITIONAL It PENALTY AND INTEREST WILL BE APPLI
x I I
_t* - 0. 1 - -
Pun Ar-+ -
Dept. Hoa
Mlle D8.0
1995 TAX STATEMENT
VALUATION BREAKDOWN
1 01 93.5151 01 01 01 451 1 93.966 1
JURIS[1tCTI0M
ASSESSED
E1fEfPTI0N5
TOMBLE
VAL
TAX
TE
TAX
Amm
** TAXES REDUCED BY ADDITIONAL SALES TAX (COUNTY: $145.55, CITY: $41.72)
PROPERTY :R51226 WHECLOCK 2ND
PT OF BLKS 84-85& 95 & CLOSED
ST
162461 PLAINS CO-OP OIL MILLS INC
PO BOX 1889
LUBBOCK, TX 79408
4
NSA. MEGIM7 w�Lc�
9.7im— _14 WIN:
lm=�MmNm
TAX CEILIM ON -71
am ee "mTEM 1 9ddcwr 3T
IF YOU H.9YE QUESTIONS PLEASE CALL (806) 762-5000. ITo.
TAXES BECOME DELINQUENT ON FEBRUARY 1. DAq.T
AFTER JUNE AN ADDITIONAL PENALTY OF 15% MAY BE IMPOSED
ON THE AMOUNT OF TAXES, PENALTY AND INTEREST DUE. Pur. t'�•'�`_„�,_��
AFTER JULY AN ADDITIONAL 1% PENALTY AND INTEREST WILL BE APPLIED Dop6. Hp� _
Due Drake
ro
<A
199S TAX STATEMENT
VALUATION BREAKDOWN
No. 1168 !
1 01 01 01 01 01 0 123.111.700 1
"ISOICTION
TOTAn55ESL
EXFWTIONS
TAXABLE
VALUE
TAXI
Am
** TAXES REDUCED BY ADDITIONAL SALES TAX (COUNTY: $35800.02, CITY: $10261.59)
PROPERTY :P56922 FFM & E
/INVENTORY W/VEHICLE
161650 PLAINS CO-OP OIL MILL INC
PO BOX 1889
LUBBOCK, TX 79408
l l mo a I - Tm. 5
§111TIM Mr. FIX31
l'��iT.l•�3ffill�T��r:�cr:
r.,rr:a■�r�■'�
WTJs�jtcl♦
lrTMiT3'l• $ l .: '
CEILING ON lz�w
dor xoc�//S/y��L
OVER 66 "MTEAD TT�,
II IF YOU HAVE QUESTIONS PLEASE CALL (806) 762+5094:TAXES BECOME DELINQUENT ON FEBRUARY 1.AFTER JUNE AN ADDITIONAL PENALTY OF 15% NAY BE IMPOSEDON THE AMOUNT OF TAXES, PENALTY AND INTEREST DUE. jzi.:IAFTER JULY AN ADDITIONAL 1% PENALTY AND INTEREST WILL BE APPLIE�.�
A)
O
00
1995 TAX STATEMENT STATD"T NO.
VALUATION BREAKDOWN
01 1,349,9551 ol ol 01 4,456,6001 5,806,555
JURISOTCTIOM
ASSE TOTAL
ExEm"IORS
T
TAX
** TAXES REDUCED BY ADDITIONAL SALES TAX (COUNTY: $8994.35, CITY: $2578.11)
PROPERTY :R114953 PLAINS
CO-OPERATIVE OIL MILL L IA & 3
LESS 223.6X290.17'& 4
55408 PLAINS CO OP OIL MILL INC
PO BOX 841
LUBBOCK, TX 79408-0841
■�am�m:fla:��IIeIr�Lll/_F �WTTM�EF 1llIRFIi
owl � .11 .�'L %)
t imU . 1 1 .
v�end�r rT
TAX
ova 19
OC NdRSTEM I
IF YOU HAVE QUESTIONS PLEASE CALL (806) 762-5000.
TAXES BECOME DELINQUENT ON FEBRUARY 1. %
AFTER JUNE AN ADDITIONAL PENALTY OF 15% MAY BE IMPOSED
ON THE AMOUNT OF TAXES. PENALTY AND INTEREST DUE. ) ,�
AFTER JULY AN ADDITIONAL 1% PENALTY AND INTEREST WILL BE APPLtZM�o Z*-e
roEov
1996 TAX STATEMENT STATEMENT
VALUATION BREAKDOWN
01 372,8551 0l 0l 01 411,2291 784,084 1
JURISDICTION
TOTAL
ASSESSED
EXEMPTIONS
TAXABLE
VALOE
TAX
RATE
TAX
AMplR
** TAXES REDUCED BY ADDITIONAL SALES TAX (COUNTY: $1214.55, CITY: $348.13)
PROPERTY :R119161 PLAINS
CO-OPERATIVE OIL MILL E/PT OF
L 2 8 CORONADO BLK 35 L 1 LESS
35X25 ON NORTH SIDE
161650 PLAINS CO-OP OIL MILL INC
PO BOX 1889
LUBBOCK, TX 79408
pi
FiTM119MIMM 1 11 �wae�
57�����T����ii���i:l1:f iRfi
■��I:li�lll,li�7Fl�' ' 1
owl
���FjffFjg
� 1 '
TAX CErLIWG am
DYER SE HOMESTEAD
IF YOU HAVE QUESTIONS PLEASE CALL (806) 762-5wi_"
TAXES BECOME DELINQUENT ON FEBRUARY 1. L//
AFTER JUNE AN ADDITIONAL PENALTY OF 15% MAY BE IMPOSED
ON THE AMOUNT OF TAXES, PENALTY AND INTEREST DUE.
AFTER JULY AN ADDITIONAL 1% PENALTY AND INTEREST WILL BE APPLI
roE
1995 TAX STATEMENT sT ElIENT MD. L_(,7
VALUATION BREAKDOWN
1 01 32.4411 01 01 01 24.510 1 56.951 1
AINISDICTION
ASEESL
EXEWTIONS
T��
TAX
RATE
TAX
AMOUR
** TAXES REDUCED BY ADDITIONAL SALES TAX (COUNTY: $88.22, CITY: $25.29)
PROPERTY :R91579 PLAINS
CO-OPERATIVE OIL MILL
223.6'X290.17'OF L 3
161650 PLAINS CO-OP OIL MILL INC
PO BOX 1889
LUBBOCK, TX 79408
'Me � � ilf
y ion ners s r. �
�.liii�� ' • S
CEILING ON
OVER 65 NONE6TEAD
IF YOU HAVE QUESTIONS PLEASE CALL (806) 762-5000.
TAXES BECOME DELINQUENT ON FEBRUARY 1.
AFTER JUNE AN ADDITIONAL PENALTY OF 15% MAY BE IMPOSED
ON THE AMOUNT OF TAXES, PENALTY AND INTEREST DUE.
AFTER JULY AN ADDITIONAL 1% PENALTY AND INTEREST WILL BE APPLIED
Vendor
wept. No.
Pun r
BOB Da�A�
=�f
KXHIBIT "B"
Page 8 of 9
3AV •MJ3
FT�
I
0
I
I
I
00
0,(),-!
00
QO
,moo it
t
3nv VVa3]
I
I
I
I
EXHIBIT "B.,
"I I /