HomeMy WebLinkAboutResolution - 5353 - Tax Abatement Agreement - State National Bank Of West Texas - 1624 10Th Street - 11_21_1996RESOLUTION NO. 5353
Item #29
November 21, 1996
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Tax Abatement Agreement with State National Bank of West Texas; and
WHEREAS, V.T.C.A. Tax Code, Section 312.2041 requires notice of the intent of the
City Council to be given to the presiding officer of the governing body of each taxing unit in
which the property to be subject to the Tax Abatement Agreement is located; NOW
THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of the
City Council to enter into a Tax Abatement Agreement with State National Bank of West Texas,
said notice to be given to the presiding officers of each governing body of each taxing unit
having jurisdiction in assessing taxes on property located in the City of Lubbock, Lubbock
County, Texas, and further described as follows:
1624 LOTH STREET
LOT 2, BLOCK 6, MEMORIAL CENTER ADDITION
CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS;
Passed by the City Council this 21 s t day i
ATTEST:
IV-"-
Kaytld Darnell, City Secretary
APPROVED AS TO CONTENT:
V_ J oj
Cheryl Bock, Business Development
APPROVED AS TO FORM:
arold Willard, Assistant City A orney
dp:ccdocs\snbwt.res
November 6, 1996
Exhibit "A"
NOTICE OF INTENT OF THE CITY COUNCIL
OF THE CITY OF LUBBOCK TO ENTER INTO AN
AGREEMENT TO ABATE TAXES ON REAL PROPERTY
IMPROVEMENTS AND TANGIBLE PROPERTY LOCATED
IN LOT 2, BLOCK 6, MEMORIAL CENTER ADDITION
CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS
Notice is hereby given that the City Council of the City of Lubbock intends to enter into
an agreement with State National Bank of West Texas to abate taxes on improvements to
property and tangible property located within an enterprise zone created by Ordinance No 9591
and covering all of the subject property.
Notice is further given that the City Council of the City of Lubbock will consider
authorizing the Mayor of the City to execute a contract between the City and State National Bank
of West Texas for tax abatement, a copy of said Agreement is attached to this Notice as Exhibit
"A" and made a part hereof for all purposes.
Notice is further given that the City Council will consider this matter at its meeting held
in the City Council Chamber, City Hall, 1625 13th Street, City Of Lubbock, on the day of
, 1996, at o'clock _.m.
dp: ccdocslsnb-noi.doc
November 6, 1996
EXHIBIT "A"
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this day of 91996,
by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and State National Bank of West Texas (hereinafter called
"Company");
WITNESSETH:
WHEREAS, City did receive from Company on the 14th day of October, 1996, an
application for tax abatement for modernization of Company's facilities located within Lot
2, Block 6, Memorial Center Addition to the City of Lubbock, Lubbock County, Texas; and
WHEREAS, upon review of the above application, it was determined that facilities
would be located in the North Enterprise Zone designated by City in its Ordinance No.
9591; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commercial
Projects in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by
Resolution No. 4974 of the City Council of the City of Lubbock; and
WHEREAS, the City did comply with all the requirements set forth in V.T.C.A.,
Tax Code, Section 312.2011; and
WHEREAS, the City did comply with all of the criteria and guidelines for creation
of an enterprise zone as set forth in Chapter 2303, Subchapter C of the Texas Enterprise
Zone Act, Texas Government Code, having adopted Ordinance No. 9591 of the City on
February 18, 1993, which ordinance includes Lot 2, Block 6, Memorial Center Addition to
the City of Lubbock, Lubbock County, Texas; and
WHEREAS, the application received by City from Company is an application for
the modernization of an existing facility; and
WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement
for Commercial Projects in Designated Enterprise Zones adopted by the City Council by
Resolution No. 4974 does recognize modernization of existing facilities as being eligible
for commercial tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and Cri-
teria established for Commercial Tax Abatement within the Enterprise Zones of the City of
Lubbock, as adopted by Resolution No. 4974, have been met by Company; and
WHEREAS, Company does intend to modernize the existing facility; and
WHEREAS, the location of the existing facility and surrounding real property,
which are to be the subject matter of the Agreement, are depicted on Exhibit "A", attached
hereto 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 designated Enterprise Zone;
NOW THEREFORE, for and in consideration of the premises, and of the mutual
terms, covenants and conditions herein contained, the City and Company do hereby agree
as follows:
SECTION 1. I=. This Agreement shall remain in force and effect for a period
of six (6) years from the date of its execution, and shall expire and be of no fiuther force
and effect after said date.
SECTION 2. Base Year. The base year applicable to real property, which is the
subject of the Agreement, shall be 1996, and the assessed value of the real property shall be
the assessed value applicable to such property for said year.
STATE NATIONAL BANK 2
SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in
accordance with the assessed value of such property for the base year. Base year taxes upon
the real property are thus not abated.
SECTION 4. Abatement of Increase in Base Year Tax. In accordance with
V.A.T.C., Tax Code, Section 312.204, real property taxes applicable to the real property
subject to this Agreement shall be abated only to the extent said value for any given year
within the term of this Agreement exceeds the base year taxes hereinabove set forth.
SECTION 5. Propcy Ineligible for Tax Abatement. The property described and
set forth in Section IV(6) of the Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones, and heretofore adopted by the City
Council by Resolution No. 4974, and incorporated by reference herein as if fully set out in
this Agreement, is property ineligible for tax abatement.
SECTION 6. Exemption from Tax. The City covenants and agrees to exempt
from taxation, in accordance with Section 4 above, the following properties:
(a) All proposed new improvements to be placed upon the existing facility
located at Lot 2, Block 6, Memorial Center Addition to the City of Lubbock,
Lubbock County, Texas.
(b) All eligible tangible personal property placed in or. upon the property set
forth in Exhibit "A".
(c) It is further understood that all items affixed to the improvements placed
upon the real property identified in Exhibit "A", including machinery and
equipment, shall be considered part of the real property improvements, and
taxes thereon shall be abated in accordance with the provisions of sub-
paragraph (a) above set forth.
STATE NATIONAL BANK 3
SECTION 7. Economic Qualification. It is hereby found by the City that
Company will expend funds necessary to qualify for tax abatement by modernizing an
existing facility, and further that the Company will create new jobs in excess of the number
required for tax abatement, all as set forth in Section IV(10)(b) of the Guidelines and
Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones
in the City of Lubbock adopted by the City through Resolution No. 4974.
SECTION 8. Value of Improvements. Company intends to expend approximately
ONE MILLION DOLLARS ($1,000,000) in building related structural improvements and
equipment to be located within the Enterprise Zone created by Ordinance No. 9591.
SECTION 9. Creation of New Jobs. Company agrees within twelve (12) months
from the date of execution of this Agreement that it will create ten (10) new jobs within the
Company facility located within Lot 2, Block 6, Memorial Center Addition to the City of
Lubbock, Lubbock County, Texas.
SECTION 10. Cry Access to Property. Company covenants and agrees that City
shall have access to the property which is the subject matter of this Agreement during
normal business hours, and that municipal employees shall be able to inspect the property to
ensure that the improvements are being made in accordance with the terms and conditions
of Company's application for commercial tax abatement and this Agreement.
SECTION 11. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate one hundred (100) percent of taxes on eligible property.
SECTION 12. Commencement Date. This Agreement shall commence upon the
date of its execution, which date is hereinafter set forth, and shall expire six (6) years after
such date.
SECTION 13. Tvne of Improvements. The Company proposes to modernize an
existing building into a banking facility as described in Exhibit "A". The Company further
states that the proposed improvements to the property above mentioned shall commence on
the 1.51h day of December, 1996, and shall be completed within approximately 180 days
from said date. The Company may request an extension of the above date from City in the
STATE NATIONAL BANK 4
event circumstances beyond the control of Company necessitate additional time for
completion of such improvements, and such consent shall not unreasonably be withheld.
SECTION 14. Drawings of Improvements. Company shall furnish City with one
set of as -built plans and drawings of the improvements to be made pursuant to the terms of
this Agreement.
SECTION 15. Limitation on Use. Company agrees to limit the use of the property
set forth in Exhibit "A" to commercial uses as those terms are defined in the zoning
ordinances of the City of Lubbock, and to limit the uses of the property to uses consistent
with the general purpose of encouraging development of the designated Enterprise Zone
during the term of this Agreement.
SECTION 16. Recants . The Company agrees to be bound by and comply with
all the terms and provisions for recapture of abated taxes in the event of default by
Company as set forth in Exhibit "B", attached hereto and made a part hereof for all
l21j_�T_
SECTION 17. Certification. The Company agrees to certify annually to the
governing body of each taxing unit that the Company is in compliance with the terms of the
Agreement.
SECTION 18. Comnliance. The City may cancel or modify this Agreement if the
Company fails to comply with the Agreement.
SECTION 19. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK STATE NATIONAL BANK OF WEST TEXAS
City Manager Don E. Cosby
P.O. Box 2000 1661 Broadway
Lubbock, TX 79457 Lubbock, TX 79401
STATE NATIONAL BANK 5
SECTION 20. Effective Date. Notwithstanding anything contained herein to the
contrary, this Agreement shall not be effective until such time as it shall be finally passed
and approved.
EXECUTED this day of
STATE NA hONAL
BANK O WEST TEXAS
m C. Nicho hief Executive Officer
CAB/w STNATBAN.DOC
November 1, 1996
STATE NATIONAL BANK 6
CITY OF LUBBOCK
A Municipal Corporation
Alex "Ty" Cooke,
MAYOR PRO TEMPORE
ATTEST:
Kaythie Darnell, City Council Chief
of Staff/City Secretary
APPROVED AS TO CONTENT:
- O&A.,-k J-'UWOJ(-J
Cheryl B ck
Business Development
APPROVED AS TO FORM:
arold Willard
Assistant City Attorney
EXHIBIT "A"
- - Prorprty nartar Nptec;ttnm Mena - -
Prop ID: R56266 (Real Propert-v" Owner: SE,SICNS H A
XRef ID: 00318114 (160990) 4910 :9TH ST
Legal : MEMORIAL CEI4TER BLK 6 L LUBBOCK, TX 79407-2202
Situs :
1624 10TH ST
Owner Ph:ne:
LUBBOCK
Prop Lin-zs :
Entities :
GLB, SLB, CLB, HSP, .•+:?P
14hhd. Cc,:e : 0109
CAD (Yes)
Mort Lenjer:
Exemptions :
(Coded Reset)
Freeze Year:
Agent Info
Total Lard HSINHS
ARB Docs
Total Prod. Mkt.
Chief Appr
1162 (WATT CLIFF)
Total Imp. HS/NHS
Entity Docs:
Total Mk_. Value
Alt. (D)isp. (P)rimary (S)econdary
(G) en. Appr. (0)wnership (H) istory
Enter option from Above, or "RETt4ZN" to Exit: +
240,55
72,58
313,13
(L)and/Impr.
(.) More
LUEBOCK CENTRAL APPRAISAL n-STR..'T
TEX
Identify Bills for a Prc_erty Screen
Owner ID: 160990 Property :D: R56266 00318114
SESSIONS H A MEMORIAL ZENTER BLK 6 L 2
4910 19TH ST -Effective Post Date: 10/10/96
LUBBOCK$. TX 79407-2 02
-- lion -Partially Paid
Bills
Bill ID
------------------------
Tax -ue
Disc F&I
--------------------
Att Fee
Net Due. Amount Pd _ate r
--------------------
CLB.96.69719
1,834.67
0.00
O.C:
-------
.1,834.67
GLB. 96. 69719
526. 98
0.00
0.1 ;
528.98
HSP.96.69719
323.78
0.00
O.C;
323.79
SLB.96.69719
4,656.35
0.00
0.C:
4,656.35
WHP.96.69719
26.30
0.00
0.0
26.30
***
Enter "C" to
Display :ota;
Due ***
Enter Selection ID, "AT" -Auto Total,
or "RETURN" to Exit:
- -
tilPnti fv Ai T - for a
- -
Owner ID: 160990
Property
_D: R56266
00318114
SESSIONS H A
MEMORIAL
CENTER BLK 6
L 2.
4910 19TH ST
Effective
Post Date:
10/10/96
LUBBOCK, TX 79407-2202
--
Property Total_
--
*.9E
Tax
Disc P&I
Att Fee
Paid/Due
Varianc
Non -Partial: Paid
0.00
0.00
0.00
0.00
v.�
Due
7,370.08
0.00
0.00
7,370.08
Totals
7,370.08
0.00
0.00
7,370.08
0.{
Enter Selection ID or "RETURN" to Exit:
r.u. box ' U40
6` Lubbock. Texas 79408 va 5-301tw207
W 291
WARRANTY DEED
(STGmk/GF66.952B)
Dates October 15, 1996
Grantor,. H, A. SESSIONS. a married paean, but not herein joined by my spouse for the reason that the
herein described property is not now, nor has it ever constituted any put of our homestead
Grantee: STATE NATIONAL BANK OF WEST TEXAS
Grantee's Mailing Address (Including county): 1661 Broadway, Lubbock, Lubbock County. Text 79401
Consideration. $10.00 and other good and valuable consideration, to Grantor herein paid by Grantee herein.
the tecck t and sufficiency of all of which Is hereby acknomleW and confessed.
Property (Including any Improvements):
LOT TWO (2). BLOCK SIX (6). MEMORIAL CENTER. ADDITION to the City of Lubbock. Lubbock
Canty. Text. according To the Map. Plat and/or Dedication Doed Thereof recorded In Volume 1354, Page
558 of the Deed Records of Lubbock County, Tans.
Reservatlons from and Exceptions to Conveyance and Wanantf:
SUBJECT TO restrictive covenants as set out is imatrnments of record in Volume 1584. Page 622 and
Volume 1296. Page 39D of the Deed Records of Lubbock County, Toss.
SUBJECT TO easement as shown of record on the Plat in Volume 1354. Page 59 of the Deed Records of
Lubbock Camay. Texas.
SUBJECT TO water lire easement as set out In instrument of record to Volume 3730. Page 101 of the Real
Property Records of Lubbock County, Texas.
SUBJECT TO rights and clalmss of truants and parties In possesslom
Grantor. for the Consideration and subject to the Reservadons from am Exceptions to Conveyance
and Warranty. gram. sells. and conveys to Grantee the Property. together with all and singular the rights and
appurtenances thereto in anywise belonging, to have sail hod k to Grantee. Grantee's heirs. executors.
admtinntrators, successors or assigns; fnrnver. Cantor binds Grantor and Grantor's heirs. execatom
administrators. and successors to warrant and fareva defend all and singular the Property to Gnmtee and
Grantee's hems. executors, administrators. i0aasorx and assigns, against every pin whomsoever lawfully
claiming or tD claim the same or any part thereof, except as to the Reservations from and Exceptions to
Conveyance and Warranty.
When the context requires, singular noams and pronouns include the phrral.
�ItoMAN
��_ie�
THE STATE OF TEXAS
COUNTY OF LUBBOCK
This instrument was acknowkdged before me as the of 041vtol" . 1996. by H.A.
SESSi01�.
IMMILR RAK A SEAL
NOWT P tkaft a rem
Ttytssn6vtetrc3'.tt9r N of Tans
STATE OF TAUS
COUNTY OF LUBS=
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FILED FOR RECORDWORM in V
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OCT IS II /! lU! �9S OCT 16 U96
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(a) A complete renovation of the building to convert usage to a commercial bank.
Improvements will include a complete new interior (walls, carpet, wallpaper, ceiling
tiles, etc.), a new exterior covering and entrance, new windows, a five lane drive-in
and additional landscaping.
(b) A 6 year tax abatement is requested for all building improvements, furniture and
equipment to be installed at 1624 10d' Street, approximately $1,000,000.
(c) See (a) above
(d) Attached
(e) None of the tangible personal property presently existing at the site will be retained
Various personal computers and security devices, currently located at 1661 Broadway,
will be moved to 1624 10" Street.
(f) The project is scheduled to begin in November,1996 and complete by May,1997.
(g) The improvements are mainly modernization of the building and construction of bank
related facilities.
(h) The additional value to the real property, including personal property, is
approximately $1,000,000.
(i) Attached.
0) The new bank is projecting total employment of 35 people by the end of 2 years.
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EXHIBIT "B"
SECTION VQ. Recapture*
In the event that any type of facility, (as defined in Section 11, Subparagraphs S, 6, 7, 8, 10,
11, 12, 13, 17, 19) is completed and begins producing goods or services, but subsequently
discontinues producing goods or services for any reason, excepting fire, explosion, other
casualty or accident or natural disaster or other event beyond the reasonable control of
applicant or owner for a period of 180 days during the term of a tax abatement agreement,
then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes
shall likewise terminate. Taxes abated during the calendar year in which termination takes
place shall be payable to each Affected Jurisdiction by no later than January 31st of the
following year. Taxes abated in years prior to the year of termination shall be payable to
each Affected Jurisdiction within sixty (60) days of the date of termination. The burden
shall be upon the applicant or owner to prove to the satisfaction of the Affected Jurisdiction
to whom the application for tax abatement was directed that the discontinuance of producing
goods or services was as a result of fire, explosion, or other casualty or accident or natural
disaster or other event beyond the control of applicant or owner. In the event the applicant
or owner meets this burden and the Affected Jurisdiction is satisfied that the discontinuance
of the production of goods or services was the result of events beyond the control of the
applicant or owner, then such applicant or owner shall have a period of one ML in which to
resume the production of goods and services. In the event that the applicant or owner fails to
resume the production of goods and services within one year, then the Tax Abatement
Agreement shall terminate and the Abatement of all taxes shall likewise terminate. Taxes
abated during the calendar year in which termination takes place shall be payable to each
Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in
years prior to the year of termination shall be payable to each Affected Jurisdiction within
sixty (60) days of the date of termination. The one year time period, hereinabove mentioned
shall commence upon written notification from the Affected Jurisdiction to the applicant or
owner.
2. In the event that the applicant or owner has entered into a tax abatement agreement to make
improvements to a facility of any type described in Section 1 above, but fails to undertake or
complete such improvements, then in such event the Affected Jurisdiction to whom the
application for tax abatement was directed shall give the applicant or owner sixty (60) days
notice of such failure. The applicant or owner shall demonstrate to the satisfaction of the
Affected Jurisdiction, above mentioned, that the applicant or owner has commenced to cure
such failure within the sixty (60) days above mentioned. In the event that the applicant or
owner fails to demonstrate that he is taking affirmative action to cure his failure, then in
such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall
likewise terminate. Taxes abated during the calendar year in which termination takes place
shall be payable to each Affected Jurisdiction by no later than January 31st of the following
year. Taxes abated in years prior to the year of termination shall be payable to each Affected
Jurisdiction within sixty (60) days of the date of termination.
3. In the event that the Affected Jurisdiction to whom application for tax abatement was
directed determines that the applicant or owner is in default of any of the terms or conditions
contained in the Tax Abatement Agreement, then in such event the Affected Jurisdiction
shall give the applicant or owner sixty (60) days written notice to cure such default. In the
event such default is not cared to the satisfaction of the Affected Jurisdiction within the sixty
(60) days notice period, then the Tax Abatement Agreement shall terminate and all
abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which
termination takes place shall be payable to each Affected Jurisdiction by no later than
January 31st of the following year. Taxes abated in years prior to the year of termination
shall be payable to each Affected Jurisdiction within sixty (60) days of the date of
termination.
4. In the event that the applicant or owner allows ad valorem taxes on property ineligible for
tax abatement owed to any Affected Jurisdiction, to become delinquent and fails to timely
and properly follow the legal procedures for their protest or contest, then in such event the
Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise
terminate. Taxes abated during the calendar year in which termination, under this
subparagraph, takes place shall be payable to each Affected Jurisdiction by no later than
January 31st of the following year. Taxes abated in years prior to the year of termination
shall be payable to each Affected Jurisdiction within sixty (60) days of -the date of
termination.
S. In the event that the applicant or owner, who has executed a tax abatement agreement with
any affected jurisdiction, relocates the business, for which tax abatement has been granted, to
a location outside of the designated reinvestment zone, then in such event, the Tax
Abatement Agreement shall terminate after sixty (60) days written notice by the Affected
Jurisdiction to the Owner/Applicant. Taxes abated during the calendar year in which
termination, under this subparagraph, takes place shall be payable to each Affected
Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior
to the year of termination shall be payable to each Affected Jurisdiction within sixty (60)
days of the date of termination.
6. The date of termination as that term is used in this Subsection VM shall, in every instance,
be the 60th day after the day the Affected Jurisdiction sends notice of default, in the mail to
the address shown in the Tax Abatement Agreement to the Applicant or Owner. Should the
default be camred by the owner or Applicant within the sixty (60) day notice period, the
Owner/Applicant shall be responsible for so advising the Affected Jurisdiction and obtaining
a release from the notice of default form the Affected Jurisdiction, failing in which, the
abatement remains terminated and the abated taxes must be paid.
7. In every case of termination set forth in Subparagraphs 1, 2, 3. 4 and 5 above, the Affected
Jurisdiction to which the application for tax abatement was directed shall determine whether
default has occurred by the Owner (Applicant) in the terms and conditions of the Tax
Abatement Agreement and shall so notify all other Affected Jurisdictions. Termination of
the Tax Abatement Agreement by the Affected Jurisdiction to which the application for tax
abatement was directed shall constitute simultaneous termination of all Tax Abatement
Agreements of all other Affected Jurisdictions.
8. In the event that a tax abatement agreement is terminated for any reason what so ever and
taxes are not paid within the time period herein specified, then in such event, the provisions
of V.T.CA., Tax Code, Section 33.01 will apply.
Cnridetwes and Ckiwm Governing Tax Abatement For
AII Taxing Units Curtained Within Lubbock Cotmty
Page 2