HomeMy WebLinkAboutResolution - 4348 - Contract - Brady Dairy Queen Inc - Commerical Tax Abatement - 12_16_1993Resolution No. 4348
December 16, 1993
Item #17
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock Guidelines and
Criteria governing tax abatement for commercial projects in designated
enterprise zones in the City of Lubbock, attached herewith, by and between
the City of Lubbock and Brady Dairy Queen, and any associated documents,
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:
Betty Jo nso City Secretary
APPR,�WA CONVENT:`
is, Director of Business
ns
APPROVED AS TO FORM-
Whald G. Vandiver, First Assistant
City Attorney
DGV:da/ccdocs/TAXABTDQ.res
December 7, 1993
Resolution No. 4348
December 16, 1993
Item #17 �
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this 16th day of December
1993, by and between the City of Lubbock, Texas, a home rule municipal-
ity of the State of Texas (hereinafter called "City") and Brady's Dairy
Queen, Inc. (hereinafter called "Company");
WITNESSETH:
WHEREAS, City did receive from Company on the 22nd day of October,
1993 an application for tax abatement for construction of Company's
facilities located within Tract A-1-A, C.N. Hodges Addition, to the City
of Lubbock; and
WHEREAS, upon review of the above application, it was determined
that facilities would be located in the South 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. 4287 of the City Coun-
cil 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 guide-
lines for creation of an enterprise zone as set forth in V.A.C.S., Sec-
tion 10, Article 5190.7, having adopted Ordinance No. 9591 of the City
on February 18, 1993, which ordinance includes Tract A-1-A, C.N. Hodges
Addition to the City of Lubbock; and
WHEREAS, the application received by City from Company is an
application for the construction of a new Company facility; and
WHEREAS, Section 10 of V.A.C.S., Article 5190.7 specifically
states that such a purpose is to be included in the guidelines for com-
mercial tax abatement to be eligible for such treatment; 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. 9591 does recognize construction
of new facilities as being eligible for commercial tax abatement status;
and
WHEREAS, the City Council does hereby find that all of the Guide-
lines and Criteria established for Commercial Tax Abatement within the
Enterprise Zones of the City of Lubbock, as adopted by Resolution No.
4287, have been met by Company; and
WHEREAS, Company does intend to construct its new facility; and
WHEREAS, the location of the constructed facility and surrounding
real property, which are to be the subject matter of 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 with the desig-
nated 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:
PAGE 2
SECTION 1. Term. This Agreement shall remain in force and
effect for a period of five (5) years from the date of its execution,
and shall expire and be of no further force and effect after said date.
SECTION 2. Base Year. The base year applicable to real prop-
erty, which is the subject of the Agreement, shall be 1993, and the
assessed value of the real property shall be the assessed value applica-
ble to such property for said year.
SECTION 3. Base Year Taxes. The taxes upon the real property
shall be paid in accordance with the assessed value of such property for
the base year. Base year taxes upon the real property are thus not
abated.
SECTION 4. Abatement of Increase in Base Year Tax. In accor-
dance with V.A.T.C., Tax Code, Section 312.204, real property taxes
applicable to the real property subject to this Agreement shall be
abated only to the extent said value for any given year within the term
of this Agreement exceeds the base year taxes hereinabove set forth.
SECTION 5. Property Ineligible for Tax Abatement. The property
described and set forth in Section IV(5) of the Guidelines and Criteria
Governing Tax Abatement for Commercial Projects in Designated Enterprise
Zones, and heretofore adopted by the City Council by Resolution No. 4287
is incorporated by reference herein as if fully set out in this Agree-
ment and fully describes the property ineligible for tax abatement.
SECTION 6. Exemption from Tax. The City covenants and agrees to
exempt from taxation the following properties:
(a) All proposed improvements to be placed upon Tract A-1-A,
C.N. Hodges Addition to the City of Lubbock, which proposed
improvements are set forth in a plat of the above tract of
land, attached hereto as Exhibit "A", and made a part
hereof.
PAGE 3
(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 con-
sidered part of the real property improvement, and taxes
thereon shall be abated in accordance with the provisions of
subparagraph (a) above set forth.
SECTION 7. Economic Oualification. It is hereby found by the
City that Company will expend funds necessary to qualify for tax abate-
ment by constructing a new facility, and further that the Company will
create new jobs in excess of the number required for tax abatement, all
as set forth in Section IV(9)(2) of the Guidelines and Criteria Govern-
ing Tax Abatement for Commercial Projects in Designated Enterprise Zones
in the City of Lubbock adopted by the City through Resolution No. 4287.
SECTION 8. Value of Improvements. Company intends to expend
approximately two hundred -sixty thousand dollars in building related
structural improvements 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 twenty-five (25) to thirty (30) new jobs within the Company
facility located within Tract A-1-A of C.N. Hodges Addition to the City
of Lubbock, and use its best efforts to maintain a minimum of twenty-
five (25) new jobs during the term of this Agreement.
SECTION 10. City 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 munici-
pal employees shall be able to inspect the property to insure that the
improvements are being made in accordance with the terms and conditions
PAGE 4
of Company's application for commercial tax abatement and this Agree-
ment.
SECTION 11. Portion of Tax Abated. City agrees, during the term
of this Agreement, to abate one hundred (100) percent of taxes on eligi-
ble property.
SECTION 12. Commencement Date. This Agreement shall commence
upon the date of its execution, which date is hereinafter set forth, and
shall expire five (5) years after such date.
SECTION 13. Type of Improvements. The Company proposes to con-
struct a new food service facility as described in Exhibit "A". The
Company further states that the proposed improvements to the property
above mentioned shall commence on the IV_G day of DcumLy ,
1993, and shall be completed within approximately 120 days from said
date. The Company may request an extension of the above date from City
in the event circumstances beyond the control of Company necessitates
additional time for completion of such improvements, and such consent
shall not unreasonably be withheld.
SECTION 14. 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. Recapture. The Company agrees to be bound by and
comply with all the terms and provisions for recapture of abated taxes
in the event of default by Company as set forth in Exhibit "B", attached
hereto and made a part hereof for all purposes.
PAGE 5
SECTION 17. Notices. Notices required to be given by this Agree-
ment shall be mailed, certified mail return receipt requested, to the
following addresses:
CITY OF LUBBOCK BRADY DAIRY QUEEN, INC.
City Manager J. R. Brady, President
P.O. Box 2000 5847 50th Street
Lubbock, TX 79457 Lubbock, TX 79424
SECTION 18. 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 16th day of
BRADY DAIRY QUEEN, INC.
A Texas Corporrat '
Secretary
CLP/adh/ta-brady.doc
December 7, 1993
l
December , 1993 .
PAGE 6
ATTEST:
��� Aal
Betty W. Johnson,
City Secretary
APPROVED AS TO FOR
an ive irst
Assistant City Attorney
EXHIBIT "A"
pESCRIF ION OF IMQROVEMEM
The subject site is to be improved with a Dairy Queen restaurant. According to our
calculations and measurements, the subject building will contain approximately 2,532
square feet of gross building area. Therefore, we have considered the net leasable
area of the building to be 2,532 square feet.
TYPE OF CONSTRUCTION
The construction quality of the proposed building improvements is considered to be
good. The structure is to have a wood frame construction with brick veneer and
stucco exterior. The building is considered to be the equivalent of between good and
a very Good Glass "D" fast food restaurant building as classified by the Marshalland
Swill Valuation Guide.
FOUNDATION
According to plans and specifications, the structure is to be constructed on a rein-
forced concrete slab foundation.
EXTERIOR AND LQAD BEARING WALIS
According to plans and specifications, the exterior walls of the buildings are to consist
of a brick veneer and stucco over a wood framed construction. When completed, the
construction quality and soundness of the subject should be good.
ROOF
According to the plans and specifications, the roof is a flat built-up roof to consist of
wood joist over plywood decking with asphalt bitumen. Roof drains, gutters and
downspouts will aid with the drainage on the proposed building. There will be
decorative inclined canopies on the sides of the building with organic felt and toof
tiles over plywood decking.
INTERIOR FINISIJ
Interior walls and partitions for the building improvement are to be comprised mainly
of painted gypsum wallboard. The improvements will have a glazed ceramic the floor
covering. Interior lighting will be provided by fluorescent panel light fixtures. The
ceiling for the building will be comprised of a standard grade aluminum grid suspend-
ed from the roof joists. The lay -in panels shall be constructed of gypsum board with a
washable vinyl coating. The counter tops are to be covered with plastic laminate.
EXHIBIT "A"
DOORS AND WINDOWS
The front exterior doors leading out of the kitchen area will consist of glass walk-
through doors suspended in metal frames. The two interior doors will be composed
of metal, while the exterior door located in the rear of the building will composed of
steel. The structure will also be furnished with large glass windows suspended in metal
frames.
MECHANICAL AND ELECTRICAL
The plans and specifications indicate both central heating and refrigerated air condi-
tioning for the proposed construction. The building is to be equipped with two rest -
room facilities adjacent to the dining and serving portion of the building. Each of the
restrooms is equipped with a commode and sink.
SITE IMPROVEMENTS
The site will be improved with concrete parking, concrete walks, curbs, on site securi-
ty lighting, 6 foot fence, playground area and some landscaping. Plans call for n free-
standing lit sign on the east north east side of the property facing the intersection.
SUMMARY AND CONCLUSIONS
In summary, according to the plans and specifications we were provided, the subject
property is to consist of a freestanding Dairy Queen restaurant. According to our
calculations, the building contains it total of approximately 2,532 square feet of gross
building, area and 2,532 square feet of NIA The construction quality of the building
is considered to be average. The overall layout, design and visibility of the building is
relatively typical of fast-food festaurants In the area. Based on our analysis of the
subject property, we found no evidence of extraordinary characteristics of the proper-
ty which would indicate natural, cultural, recreational, or scientific value. We also
noted no obvious evidence of environmental hazards associated with the subject's
Improvements.
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EXHIBIT "A"
SITE bATA M) ANALYSIS
LOCATION
The subject property is located tit the southwest corner of 50th Street and Interstate
27 within the city of Lubbock, Lubbock County, Texas. A municipal address has not
been assigned to the subject property, however it should be located in the 900 block
of 50th Street. The location of the subject is considered to be a very favorable at-
tribute of the property due to its frontage t11oNg 50th Street and Interstate 27. This is
considered to be d favorable location in Lubbock itt terms of ttafic volume hied AM-
billty. For ati illusitsitioh of the layout of the subject titer refer to the site plan located
on the ensuing pages.
DIMENSIONS SIZE ANI) SNAPP,
The Subject Cite t:otisists of one irtbgblar shaped tract cohtatru 24,740 Sqbare febt of
land. The subject Cite has 108.9 frontage feet along the south side of 50th Street sind
240.67 feet of frontage on the west tide of Iritetssite 27. The subject site Is horitideted
to be relatively typical of commercial propettiet In the neighborhood d►tth tegatd to
dimensions, size and shape.
TOPOGIIPI4Y
The tubject Cite it t ottsidered to be levbl to gently eloping and hppedts id be *01
suited for its cuttent bad intended uses. Otainage appears to be adequate. Accbrd-
idg to the National Mood Insurdnce Ajitt Mop Community Panel #4804510050 bi
the subject prdj* Y It Not ldedW Wthid g desighd4d flood totlb sm. A pboy of the
flood zone snap titfd location of the subject ptopbri sirt included on the brisuing
pages. The property ti peats to hdi►e si Stable soil con ition, hoWevetj rice tbsttits front
soil test borings nor soil stability analysis Wete provided tti us.
EASEMENTS AND=NC1tdAC14MEkU
The tubject Site is hpptsiised as If ittteticumbeted by tiny adverse tdset ietits tit bii-
ctoachments. It it ht pottant to note that thbtt site utility easeineht9 bet site bit the
subject prIthe
erty. These easetnenti site cohtideted to have no tigriificsiht Wodet bn
the vsilue wh Oct property. The bi istetice bf Such utility esisetbent§ it WpicW of
properties such Of the Subject. Thit sippraistil it ttidde based on the tissut}ijitidti that
there ate no enctodchtnbhts or ptotttislont bhtd adjoining ptetniset sheets fit si1118 bt
Adjoining buildhi t hrid structures bn the subject pptopetty. There sire tiled Ito btt-
ctoachtnents on the subject property by building structuret of other imptoArembntt
situated on adjoining premises.
PUBLIC t r ILITIES
All utilities site available within a teasonable distance of the subject. It It limowed
that these utilitiet site ddegbate to MOrve the Improvements and that the cost bf bit-
tenditig these utilities Would be simildt to the t:ost of competing propettles.
EXHIBIT "A"
NGRIESS AND EGRESS
Direct access to the subject site is eonsideted to be excellent. Access is provided by
50th Street which fronts the north side of the subject Me and the Interstate 21 access
toad which fronts the eastern side of the subject. Overall ingress and egress tot the
subject site ate considered to be good.
ZONING
The subject ptopetty is currently totted INC, thtetstate highway Commetclal.
According to Lubbock CityZoning officials, the purpose of this district is to provide
for quality commetcial office, retail and wholesale uses which Serve a city-wide of
tegiottal area. Such uses toqquire careful consideration when adjaceht to tesidetitial
ateas. The subject is currently conforming to till 114C zoning tegulatiohs.
11 MOVEMP-NTS
The site cuttehtly exist fis vacant land with h
Ing to plans, the subject site is to be improved
and telated site imptdw!htents.
RAZAIWS AND NUISMCtS
o
site fi spptovemetits. t4o*evet; hecord-
*ith fi ISairy Queeti testaurant bugding
1360d oh our ih§pectloti of the subject Site and site luiptovements, we totittd hit
oWous evidettrk of fitly hazards or huisariceS Incldding environmental hazards. It is
Important td dote thfit *e Ate hot etc etts iti this fitea and therefore We tecobitiibiid
that the subject ptopetty be inspectedpby a qualified etivItottitiental inspector.
SUMMARY AND CoNCLUslo VS
td Stihitiiaty, the Subset t site consists of I tectaholat Shaped tract of land eoittaltdiig
249740 square feet of land. The site ham 11 getietally level topography fitid Is not ldcfit-
ed within a demlghated flood zotie fitefi. All hecestfity utilities are available within a
tefimotinble distfitice of the Subject. Access td the Subjeet property Ad 50th Street grid
Intetstfite 2719 Eonsldeted to be fidequate. The Subject is toned INC, General Detail
Disttict by the elty phitig find plahnitig depfittment. The Site cuttently qi94 fis
wcohi land with ho itdprovemehts. Plfitis call for the site to be Imptoved with fi Vdity
Queett testautaht find related site imptovehietits. We found ho obvious evidence of
any hazards or huisfiticem on the subject Site including ttivirohtnehtal hazards. Ovet-
fall, the subject Site appears to be typical of competing properties and adequate tot the
ptoposed cotisttuction.
XHIBIT "A"
(Flood P18111 Mgp)
1
39114 �� StREfT �lull
01 ON S� 40 N
11SYSIM.
_____JO
A2_� I=F ' N0 —
ZONt c
IMI fOf OI SINALtOW
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cii-i
II �
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. b
w
T Ft— • µ. is
.1,
to 320 L r Sublici 3�
i14 ages'
Sel s211r0 sT
' :i:•ii i
ONt g+ i i••. i `�r + i i i a 3�7M f
eWiS # To
t� �sl'H sr r a Gaik ,
-ilr—o some a
L% • �� i
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' two � .i : • • II STREET i• :,A
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Aork r7 ilIM115 i6 i
ii ii
♦ •
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R J
61,
•ieIFI1
211 • Li • I••iii ii i STREET 3209
7
EXHIBIT "A"
SUBJECT PROPERTY PHOTOGRAPHS
A view of the front (east) Side of the Subject property.
A view of the north Side of the subject.
EXHIBIT "A"
SVRJECt PROPERTY PHOTOGRAPHS
A ,vie* of the *00 side bi the subject propetty.
EXHIBIT "A"
NEIGHBORHOOD PHOTOGRAPHS
A view of the subject neighborhood looking southerly along Interstate 27.
A view of the subject neighborhood looking west along 50th Street.
10
EXHIBIT "A"
50TH & I 27 PROJECT
EQUIPMENT LIST
EQUIPMENT
VOLT
AMP
Janitor Sink
(1)
Milk Machine
(1)
120
2.3
Coffee Maker
(1)
120
19.0
Tea Brewer
120
14.8
Cash Register
(3)
120
1.4
Lancer Drink
(2)
120
6.0
Soft Serve Ice Cream
(3)
208/230
25.0
Pumps
(3)
120
1.0
Topping Case
(1)
120
10.2
Dip Cone Warmer
(2)
120
7.0
Hot Fudge Warmer
(2)
120
8.0
Blizzard Mixer
(4)
120
8.6
Serveillance Monitors
(2)
120
.3
Prep Table Warmers
(4)
120
10.0
Pass Thru Warmer 8'
(1)
120
4.0
Warmer /Taco Shelf 48"
(1)
120
5.6
Bean Pot
(2)
120
3.3
Coffee Warmer
(1)
120
6.0
Display Freezer
(1)
208
15.0
Fans
(4)
120
Lights
(8)
120
.15
Hand Dryers
(2)
120
20.0
Microwave
(1)
120
7.0
Spot Merch Freezer
(1)
120
3.3
Salad Unit
(1)
120
2.1
Gravy Steam Well
(2)
120
6.7
D/T Stand Warmers
(1)
120
Drive Ice Bin Stand
(1)
Emberglo Steamer
(1)
120
13.0
Fry Dump W/Fryers
(1)
120
3.0
Fryolators/Gas
(3)
120
5.4
Filter Pump
(1)
120
6.4
Breading Table
(1)
Holding Freezer
(1)
110
Undercounter Refrig
(1)
120
13,0
Walk -In Cooler
(1)
208/230
16.0
Evap Coils/Lts
120
3.6
Walk -In Freezer
(1)
208/230
16.0
Evap Coils
208
12.4
Carbonators
(2)
120
6/5
Cooktop
(1)
120
15.0
Kitchen Overshelf
(1)
Steam Wells
(2)
120
10.0
Bun Toaster
(1)
120
15.0
Ice Maker
(1)
120
16.8
11
EXHIBIT "A"
Equipment List - Con't.
Water Plumber Gas (1)
Exhaust Fan (1)
Make Up Fan (1)
Griddele 5 Ft Gas
D Thru Window Non Electric
Dipping Cabinet (1)
3 Compartment Sink
Water Station
Time Clock
Pass Thru Shelf 8'
Drive Thru Shelf
Warmer Drawer
Fire Suppression
P-Thru Fry Dump 4'
Mex Food Prep Table
Bun Toaster Table
Taco Shelf
Lot/Shelving 2 X 4
Shelving 3 X 18
Kitchen Prep Table
Cabinet Above Prep Table
Hamburger Make Up Table
Flour & Onion Bins
Condiment Table
Planters
Booth Package
Trash Receptacles
High Chairs
Booster Chairs
Inside Menu Board
Outside Menu Board
Speaker Pole
Feature Sign
Open/Close Sign
Entrance Direct Sign
D Thru Direct Sign
Building Logo Signs
Marquee & Readerboard
Playground Equipment
(1)
(2)
208 8.0
4.9
120
120
120 3.8
120 4.0
120
120
120
12
EXHIBIT "A"
Subject Property: A proposed dairy Queen I2estautant
Location: To be located at the southwest Corner of interstate
27 and 50th Street in the City of Lubbock, Lub-
bock County, Texas.
Legal Description: The subject property Is legally described as being
proposed Tract A-1-A of the C. N.11odges Add%
tion to the city of Lubbock, Lubbock County,
Texas.
Purpose of
the Appraisal: to estimate the Market Value Los U and as
completed accordina to vlans) of the Feb Simple
Ownership rigghts o the subject propeft as of
March 30, 1993 (Date of Inspection an trnlue
estimate).
Zoning: Mc, Interstate Highway Commercial
Highest and best Use: Construction of n fast food testaurant
Area of Site: 24,140 3gttafe beet (Total)
building Area: 2,�32 Sgdare Feet (Total as proposed)
Net Leasable Area: 2,53I Sgtiarc beet
Date of the Value
Estimate: March Jd,1993. (Date bt Inspection)
Site Value: $W900d
Cart Approach: $420,000
Income Approach: $410,000
Sales Comparison
Approach: $420,ba0
lWimated Marketing
Period: t Year
Market Value "AS IS"
mi Appraisal Date: s165,Uod
Market Value "AS PROPOSED"
bn Appraisal Date: $420,000
Appraisers: Gary Phillips, MAI
Marctit bednatz
Associate
13
EXHIBIT 'B'
SECTION VII. Recapture:
1. In the event that any type of facility, (as defined in Sec-
tion I, Subparagraphs 5, 6, 7, 8, 10, 11, 12, 13, 17, 18) is
completed and begins producing goods or services, but subse-
quently discontinues producing goods or services for any
reason, excepting fire, explosion or other casualty or acci-
dent or natural disaster or other event beyond the reason-
able control of applicant or owner for a period of 180 days
during the term of a tax abatement agreement, then in such
event the Tax Abatement Agreement shall terminate and all
abatement of taxes shall likewise terminate. Taxes abated
during the calendar year in which termination takes place
shall be payable to each Affected Jurisdiction by no later
than January 31st of the following year. Taxes abated in
years prior to the year of termination shall be payable to
each Affected Jurisdiction within sixty (60) days of the
date of termination. The burden shall be upon the applicant
or owner to prove to the satisfaction of the Affected Juris-
diction to whom the application for tax abatement was
directed that the discontinuance of producing goods or ser-
vices was as a result of fire, explosion, or other casualty
or accident or natural disaster or other even beyond the
control of applicant or owner. In the event the applicant
or owner meets this burden, and the Affected Jurisdiction is
satisfied that the discontinuance of the production of goods
or services was the result of events beyond the control of
the applicant or owner, then such applicant or owner shall
have a period of one year in which to resume the production
of goods and services. In the event that the applicant or
owner fails to resume the production of goods or services
within one year, then the Tax Abatement Agreement shall ter-
minate and the Abatement of all taxes shall likewise termi-
nate. Taxes abated during the calendar year in which termi-
nation takes place shall be payable to each Affected Juris-
diction by no later than January 31st of the following year.
Taxes abated in years prior to the year of termination shall
be payable to each Affected Jurisdiction within sixty (60)
days of the date of termination. The one year time period,
hereinabove mentioned, shall commence upon written notifica-
tion from the Affected Jurisdiction to the applicant or
owner.
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 Jan-
uary 31st of the following year. Taxes abated in years
prior to the year of termination shall be payable to each
Affected Jurisdiction within sixty (60) days of the date of
termination.
3. In the event that the Affected Jurisdiction to whom applica-
tion for tax abatement was directed determines that the
applicant or owner is in default of any of the terms or con-
ditions contained in the Tax Abatement Agreement, then in
such event the Affected Jurisdiction shall give the appli-
cant or owner sixty (60) days written notice to cure such
default. In the event such default is not cured to the sat-
isfaction of the Affected Jurisdiction within the sixty (60)
days notice period, then the Tax Abatement Agreement shall
terminate and all abatement of taxes shall likewise termi-
nate. Taxes abated during the calendar year in which termi-
nation takes place shall be payable to each Affected Juris-
diction by no later than January 31st of the following year.
Taxes abated in years prior to the year of termination shall
be payable to each Affected Jurisdiction within sixty (60)
days of the date of termination.
4. In the event that the applicant or owner allows ad valorem
taxes on property ineligible for tax abatement owed to any
Affected Jurisdiction, to become delinquent and fails to
timely and properly follow the legal procedures for their
protest or contest, then in such event the Tax Abatement
Agreement shall terminate and all abatement of taxes shall
likewise terminate. Taxes abated during the calendar year
in which termination, under this subparagraph, takes place
shall be payable to each Affected Jurisdiction by no later
than January 31st of the following year. Taxes abated in
years prior to the year of termination shall be payable to
each Affected Jurisdiction within sixty (60) days of the
date of termination.
Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones
Exhibit "B"
PAGE 2
5. In the event that the applicant or owner, who has executed
tax abatement agreement with any Affected Jurisdiction,
relocates the business, for which tax abatement has been
granted, to a location outside of the designated reinvest-
ment zone, then in such event, the Tax Abatement Agreement
shall terminate after sixty (60) days written notice by the
Affected Jurisdiction to the Owner/Applicant. Taxes abated
during the calendar year in which termination, under this
subparagraph takes place shall be payable to each Affected
Jurisdiction by no later than January 31st of the following
year. Taxes abated in years prior to the year of termina-
tion shall be payable to each Affected Jurisdiction within
sixty (60) days of the date of termination.
6. The date of termination as that term is used in this Subsec-
tion VIII shall, in every instance, be the 60th day after
the day the Affected Jurisdiction sends notice of default,
in the mail to the address shown in the Tax Abatement Agree-
ment to the Applicant or Owner. Should the default be cured
by the Owner or Applicant within the sixty (60) day notice
period, the Owner/Applicant shall be responsible for so
advising the Affected Jurisdiction and obtaining a release
from the notice of default from the Affected Jurisdiction,
failing in which, the abatement remains terminated and the
abated taxes must be paid.
7. In every case of termination set forth in Subparagraphs 1,
2, 3, 4 and 5 above, the Affected Jurisdiction to which the
application for tax abatement was directed shall determine
whether default has occurred by Owner (Applicant) in the
terms and conditions of the Tax Abatement Agreement and
shall so notify all other Affected Jurisdictions. Termina-
tion of the Tax Abatement Agreement by the Affected Juris-
diction to which the application for tax abatement was
directed shall constitute simultaneous termination of all
Tax Abatement Agreements of all other Affected Jurisdic-
tions.
8. In the event that a tax abatement agreement is terminated
for any reason whatsoever, and taxes are not paid within the
time period herein specified, then in such event, the provi-
sions of V.T.C.A., Tax Code, Section 33.01 will apply.
Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones
Exhibit "B"
PAGE 3