HomeMy WebLinkAboutResolution - 5453 - Tax Abatement Agreement - Purina Mills Inc - 201 E Municipal Drive - 03_27_1997RESOLUTION NO.5453
Item #30
March 27, 1997
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Tax Abatement Agreement with Purina. Mills, Inc.; 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 Purina Mills, Inc., 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 at 201 E. Municipal Drive in the City of Lubbock, Lubbock
County, Texas, and fiurther described on Exhibit "B" attached to this Resolution.
Passed by the City Council this 27t h day of March 1997.
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ATTEST:
Ka e, Darnell, City Secretary
APPROVED AS TO CONTENT:
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Debra B. Forte', First Assistant City Manager
APPROVED AS TO FORM:
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oId Willard, Assistant City Attorney
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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
IMTROVEMENTS AND TANGIBLE PROPERTY LOCATED AT 201 E.
MUNICIPAL DRIVE IN THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS,
AND FURTHER DESCRIBED ON EXHIBIT "B" ATTACKED TO THIS NOTICE
Notice is hereby given that the City Council of the City of Lubbock intends to enter into
an Agreement with Purina Mills, Inc. 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 Purina Mills, Inc.
for tax abatement, a copy of said Agreement is attached to this Notice as Exhibit "C" 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 2 7 ti,
day of March . 1997, at 10:30 o'clockA .m.
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EXHIBIT '10
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this day of , 1997, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and Purina Mills, Inc. (hereinafter called "Company");
WITNESSETH:
WHEREAS, City did receive from Company on the 2nd day of January• 1997, an
application for tax abatement for the replacement of an existing manufacturing facility to
be located at 201 E. Municipal Drive, which is further described as a tract of land out of
Section Seventy -Seven (77),'Block A, Abstract No. 179, Certificate No. 1210, E.L. &
R.R. Co. Survey, Lubbock, Lubbock County, Texas, and being further described as
follows:
BEGINNING at a 1" iron pipe found, 50.00 feet Northwesterly as measured
perpendicular to the centerline of the main tract of Atchison, Topeka & Santa Fe Railway
Company, for the Southwest and beginning corner of this tract whence the Southwest
corner of Section 77, Block A, Certificate No. 210, E.L. & R.R. Co. Survey, Lubbock
County, Texas, bears South 64°36'04" West, 402.70 feet and South 00006'54" East,
93.27 feet;
THENCE North 64036'04" East, parallel with said main tract centerline, 2425.98 feet
(call 2425.95 feet) to a 1/2" iron rod and cap found for the most Easterly corner of this
tract;
THENCE North 25'18'51" West (call North 25°23'56" West), 59.97 feet (call 60.0 feet)
to a 1/2" iron rod and cap found for the P.C. of a curve to the left;
THENCE Northwesterly, along the arc of said curve, an arc distance of 162.99 feet (call
162.47 feet) to a 1/2" iron rod and cap set for the P.T. of said curve with a radius of
120.00 feet, a central angle of 77°49' 14", and a chord that bears North 64005'28" West,
150.75 feet;
THENCE South 77001'52" West (call South 77002'30" West), 1886.94 feet (call
1886.98 feet) to a 1/2" iron rod and cap found for a corner of this tract;
Exhibit "B"
A tract of land out of Section Seventy -Seven (77), Block A, Abstract No. 179, Certificate
No. 1210, E.L. & R.R. Co. Survey, Lubbock, Lubbock County, Texas, and being further
described as follows:
BEGINNING at a 1" iron pipe found, 50.00 feet Northwesterly as measured
perpendicular to the centerline of the main tract of Atchison, Topeka & Santa Fe Railway
Company, for the Southwest and beginning corner of this tract whence the Southwest
corner of Section 77, Block A, Certificate No. 210, E.L. & R.R. Co. Survey, Lubbock
County, Texas, bears South 64036'04" West, 402.70 feet and South 00006'54" East,
93.27 feet;
THENCE North 64°36'04" East, parallel with said main tract centerline, 2425.98 feet
(call 2425.95 feet) to a 1/2" iron rod and cap found for the most Easterly corner of this
tract;
THENCE North 25°18'51" West (call North 25°23'56" West), 59.97 feet (call 60.0 feet)
to a 1/2" iron rod and cap found for the P.C. of a curve to the left;
THENCE Northwesterly, along the arc of said curve, an arc distance of 162.99 feet (call
162.47 feet) to a 1/2" iron rod and cap set for the P.T. of said curve with a radius of
120.00 feet, a central angle of 77°49' 14", and a chord that bears North 64005'28" West,
150.75 feet;
THENCE South 77'01'52" West (call South 77102'30" West), 1886.94 feet (call
1886.98 feet) to a 1/2" iron rod and cap found for a corner of this tract;
THENCE South 89°57'37" West (call West), 191.50 feet to a 1/2" iron rod with cap
found for the Northwest corner of this tract;
THENCE South 00°00' 14" East (call South), 737.02 feet (call 737.10 feet) to the Point
of Beginning.
THENCE South 89057'37' West (call West), 191.50 feet to a 1/2" iron rod with cap
found for the Northwest comer of this tract;
THENCE South 00000' 14" East (call South), 737.02 feet (call 737.10 feet) to the Point
of Beginning.
WHEREAS, upon review of the above application, it was determined that the new
facility will be located in the North Enterprise Zone designated by the City in Ordinance
No. 9591; and
WHEREAS, the Guidelines and Criteria for Tax Abatement within the jurisdictions
of the taxing units of Lubbock County were heretofore adopted by Resolution No. 4973
of the City Council of the City of Lubbock; and
WHEREAS, the City has complied with all the requirements set forth in V.T.C.A.,
Tax Code §312.201; and
WHEREAS, the City has complied 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 pass Ordinance No. 9591 creating an Enterprise Zone for
commercial and industrial tax abatement, and said Zone includes the hereinabove
described tract of land; and
WHEREAS, V.A.T.C., Tax Code §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 replacement of an existing facility; 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 recognizes replacement of an existing facility as being eligible for tax
abatement status; and
WHEREAS, though the Company's application does not meet the specific
standards of Section IV(9)(c)(1) of such Guidelines in that the replacement of the existing
facility will not result in the creation and retention of 10 new jobs, the City Council does
hereby find that all of the other Guidelines, as adopted by Resolution No. 4288, have
otherwise been met by the Company; and
WHEREAS, Section IV(9)(d) of the Guidelines enables the governing body of the
City to grant the Company a variance from the requirements contained in Section
AGREEMENT-PURINA MILLS, INC. PAGE 2
IV(9)(c)(1) of the Guidelines by the affirmative vote of three -fourths' of the governing
body; and
WHEREAS, the City Council finds that granting the Company a variance from the
requirements of Section IV(9)(c)(1) and entering into this agreement to abate taxes on the
property described in Exhibit "A" will contribute to the retention of existing jobs within
the City of Lubbock, and enhance economic development within the designated Enterprise
Zone; and
WHEREAS, Section 312.204(f) of the Tax Code provides that Tax Abatement
Agreements for property located in a municipal enterprise zone are not required to contain
identical terms to all other Tax Abatement Agreements; and
WHEREAS, it is anticipated that law resulting in reduced local ad valorem
taxation by cities, counties and school districts on businesses shall be enacted by the
Texas Legislature; and
WHEREAS, the City Council finds that the total tax abatement to be provided by
the City to the Company for the tax abatement term shall be reduced at the end of each
term year after the base year by the same amount of any ad valorem tax reduction
provided by the Texas legislature beyond the ad valorem tax rate that would otherwise
have been in effect in without such legislation having been passed; and
WHEREAS, the location of the new facility and surrounding real property, and a
brief description of the same, are outlined on Exhibit "A" attached hereto and made a part
of this Agreement for all purposes;
NOW THEREFORE, for and in consideration of the premises and of the mutual
terms, covenants and conditions herein contained, the City does hereby grant the
Company a variance from the requirements of Section IV(9)(c)(1) of the Guidelines and
the City and Company do hereby agree as follows:
SECTION 1. Term. 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 Year. The base year applicable to real property, which is the
subject of this Agreement, shall be 1997, and the assessed value of the real property shall
be the assessed value applicable to such property for said year.
SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in
accordance with the assessed value of such property for the base year. Base year taxes
upon the real property are thus not abated.
AGREEMENT-PURINA MILLS, INC. PAGE 3
SECTION 4. Abatement of Increase in Base Year Tax. In accordance with
V.A.T.C., Tax Code §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. Net Amount of Abatement. The amount of taxes herein abated by
the City shall be reduced dollar for dollar by the amount of taxes that would have
otherwise become due annually on the property which the new facility is intended to
replace, regardless of whether the existing property is abandoned or demolished by the
Company.
The amount of taxes herein abated shall be reduced dollar for dollar by any amount
of ad valorem tax relief that shall be granted by the Texas Legislature during the term of
this agreement. Such reduction in abatement shall be included in each year's tax payment
by the Company to the City following the base year should the Legislature take such
action.
SECTION 6. Property 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. Except as otherwise indicated in Sections 5
and 6 above, 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 tract of land out of
Section Seventy -Seven (77), Block A, Abstract No. 179, Certificate No.
1210, E.L. & R.R. Co. Survey, Lubbock, Lubbock County, Texas, and
being further described as follows:
BEGINNING at a 1" iron pipe found, 50.00 feet Northwesterly as
measured perpendicular to the centerline of the main tract of Atchison,
Topeka & Santa Fe Railway Company, for the Southwest and beginning
corner of this tract whence the Southwest corner of Section 77, Block A,
Certificate No. 210, E.L. & R.R. Co. Survey, Lubbock: County, Texas,
bears South 64°36'04" West, 402.70 feet and South 00°06'54" East, 93.27
feet;
THENCE North 64°36'04" East, parallel with said main tract centerline,
2425.98 feet (call 2425.95 feet) to a 1/2" iron rod and cap found for the
most Easterly corner of this tract;
AGREEMENT--PURINA MILLS, INC. PAGE 4
THENCE North 25118'51" West (call North 25°23'56" West), 59.97 feet
(call 60.0 feet) to a 1/2" iron rod and cap found for the P.C. of a curve to
the left;
THENCE Northwesterly, along the arc of said curve, an arc distance of
162.99 feet (call 162.47 feet) to a 1/2" iron rod and cap set for the P.T. of
said curve with a radius of 120.00 feet, a central angle of 77°49' 14", and a
chord that bears North 64°05'28" West, 150.75 feet;
THENCE South 77001'52" West (call South 77002'30" West), 1886.94
feet (call 1886.98 feet) to a 1/2" iron rod and cap found for a corner of this
tract;
THENCE South 89057'3T' West (call West), 191.50 feet to a 1/2" iron
rod with cap found for the Northwest corner of this tract;
THENCE South 00000' 14" East (call South), 737.02 feet (call 737.10
feet) to the Point of Beginning,
which proposed improvements are set forth in a plat of the above tracts of
land, attached hereto as Exhibit "A" and made a part hereof.
(b) All eligible tangible personal property placed in or upon the property set
forth in Exhibit "A".
(c) It is further understood that all items affixed to the new 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
subparagraph (a) above set forth.
SECTION 8. Economic Qualification. It is hereby found by the City that
Company will expend funds in excess of the funds necessary to qualify for tax abatement
by replacing an existing facility, all as set forth in Section IV(9)(c) 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
SIX AND ONE-HALF MILLION DOLLARS ($6,500,000) to replace an existing
manufacturing facility and EIGHT AND ONE-HALF MH,LION DOLLARS
($8,500,000) for machinery and equipment, to be located within the Enterprise Zone
created by Ordinance No. 9591.
SECTION 10. Job Retention. Company agrees to retain sixty-five (65) full-time
equivalent jobs within the Company plant located on the tract of land hereinabove
described.
AGREEMENT--PURINA MILLS, INC. PAGE 5
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 ensure 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 one hundred percent (100%) of taxes on eligible property, except as
provided in Sections 5 and 6 above.
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. Type of Improvements. The Company proposes to construct a
new manufacturing facility to replace the existing obsolete facility as described in Exhibit
"A". The Company further states that the proposed improvements to the property above
mentioned shall commence on the 1st day of March, 1997, and shall be completed within
approximately 540 days from said date. The Company may request an extension of the
above completion date from City in the event circumstances beyond the control of
Company necessitate 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 Use. Company agrees to limit the use of the
property set forth in Exhibit "A" to commercial and/or industrial uses as those terms are
defined in the zoning ordinances of the City of Lubbock, and to limit the uses of the
property to uses consistent with the general purpose of encouraging development of the
Enterprise Zone during the term 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
Company as set forth in Guidelines and Criteria for Tax Abatement adopted by Resolution
No. 4973 of the City Council of the City of Lubbock.
SECTION 19. 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.
AGREEMENT-PURINA MILLS, INC. PAGE 6
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
City Manager
P.O. Box 2000
Lubbock, Texas 79457
Purina Mills, Inc.
Dave Abbott
1401 S. Hanley Rd.
St. Louis, Mo. 63144
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.
AGREEMENT'-PURINA MILLS, INC. PAGE 7
EXECUTED this day of 199_
PURINA MILLS, INC.
CITY OF LUBBOCK
A Municipal Corporation
Dave Abbott Windy Sitton
Chief Executive Officer MAYOR
ATTEST: ATTEST:
Secretary Kaythie Darnell
City Council Chief of Staff/City Secretary
APP O D AS TO CO
Debra B. Forte', First Assistant
City Manager
APPROVED TO FORM:
Don Vandiver,
First Assistant City Attorney
dahnisc97/pusimdoc
March 31, 1997
AGREEMENT—PURINA MILLS, INC. PAGE 9
EXMIT "A"
Section III -- Facility Description
a) Purina Mills, Inc. will construct a new and larger manufacturing facility on a 14
acre tract adjoining its present facilities located at 201 E. Municipal Drive. The
mill building will measure 90' W X 60' L and 163' H, with an attached 120' x 315'
warehouse.
b) Total assets committed will include approximately $6.5 million in real estate
improvements and $8.5 million of personal property. The project will entail
construction of the buildings as well as installation of all mechanical and process
systems including mixing, pelleting, and packaging equipment, elevator legs,
storage bins and a bulk feed loadout facility.
c) This investment will constitute a total replacement of the existing manufacturing
facility. Due to the age and condition of the existing facility, production here would
not be feasible past the next three years. Purina will have no employees in the
Lubbock area without this plant replacement.
d) A map of the building site is included.
e) The current facility has a personal property tax value of slightly less than $3.0
million. The acquired real property currently has no personal property associated.
f) Work will begin approximately March, 1997, with completion expected around
August, 1998. At that time the existing wood -framed structure, built in 1941, will
be demolished.
g) The existing plant will be replaced with a larger, modem, state-of-the-art facility
better meeting the demands of Purina's growing customer base.
h) Upon completion of all improvements, Purina's new and retained facilities in
Lubbock will have a valuation of approximately $15 million.
i) The current facility has an assessed real property value of approximately $575,000.
The acquired real property has a value of less than $50,000.
j) The Lubbock location currently employs 65 full-time employees. Estimates show
this level of employment maintained in the new facility.
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b) A variance to the abatement guidelines is being sought based upon the following
factors:
The current facility has outlived its economic viability. Without this investment
the company would cease operations in Lubbock within three years, removing
$3 million from the tax base and a 65 person, $3 million annual payroll from the
economy. The scope of the project greatly exceeds the minimum investment
criteria governing tax abatement. The facility is located within an enterprise
zone and will add significantly to the local tax base.
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1995 TAX STATEMENT
PAYABLE UPON RECEIPT STATEMENT NO.
1201
MAKE CHECKS PAYABLE TO: XREF ID : 00800459
LUBBOCK CENTRAL APPRAISAL DIST PROPERTY :P62686 FFM & E
P.O. BOX 10568 - 1715 26TH ST. INVENTORY/VEHICLES
LUBBOCK, TEXAS 79408-3568
(806) 762-5000 EXT. 500
73764 PURINA MILLS INCORPORATE
ATTN TAX DEPT
1401 S HANLEY RD
SAINT LOUIS, MO 63144
PLEASE RETURN Tm7S -"Iv ;v:Tw P-rv-NT
TO RECEIVE A RECEIPT
CHECK BOX 0
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TAX DUE
1995 TAX STATEMENT
PAYABLE UPON RECEIPT STATEMENT NO. 3829
MAKE CHECKS PAYABLE TO: XREF ID : 00079426
LUBBOCK CENTRAL APPRAISAL DIST PROPERTY :R60133 BYRD L 1
P.O. BOX 10568 - 1715 26TH ST.
LUBBOCK, TEXAS 79408-3568
(806) 762-5000 EXT. 500
162560 PURINA MILLS INC
ATTN TAX DEPARTMENT
1401 S HANLEY RD
SAINT LOUIS, MO 63144
PLEASE, RETURN T!+;S PCRT:;,N wrrH FjvvENT
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1995 TAX STATEMENT
PAYABLE UPON RECEIPT STATEMENT NO. 1 7 7 7
MAKE CHECKS PAYABLE TO: XREF ID : 00640159
LUBBOCK CENTRAL APPRAISAL DIST PROPERTY :R61902 BLK A SEC 1
P.O. BOX 10568 - 1715 26TH ST. AE61 TR C2 ACS: 2.9
LUBBOCK, TEXAS 79408-3568
(806) 762-5000 EXT. 500
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ATTN TAX DEPT TAX DUE
1401 S HANLEY RD
SAINT LOUIS, MO 63144 1 S8.2-071
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1996 NOTICE OF APPRAISED VALUE
LUBBOCK CENTRAL APPR DISTRICT
P.O. BOX 10542
1715 26TH STREET
LUBBOCK, TX 79408-3542
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EXEMPTIONS'
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29, 098
IMPROVEMENTS
544, 943
544,940
AG MARKET
AG USE
MARKET VALUE
574, 041
574,038
w ...•.. d. .........a— s.r the ear
w war is a m rq mom-m �
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hating w9h tt* Appraaat Review Boca by WMm ng a protest bm ttom ttb AMU
TH wraen RB BEGINS HEAAWdS.64-0i+
AT 1715 26TH ST LUBBOCK* TEXAS
1996 NOTICE OF APPRAISED VALUE
LUBBOCK CENTRAL APPR DISTRICT
P.D. BOX 10542
1715 26TH STREET
LUBBOCK, TX 79408-3542
ACCT.# R61902, 00640159
LEGAL. DESCRIPTION:
ELK A SEC i AB61 TR C2 ACS: 2.9
PURINA MILLS INCORPORA
ATTN TAX DEPT
1401 S HANLEY RD
SAINT LOUIS, MO 63144-
'il+Iltt'lltlll'I111slits 111111 A11a119111111111111
PRESORTED
1••���
FIRST CLASS MAIL
US POSTAGE PAID
> 1 ��
MAIL FROM 7M
PERMIT NO.10
M i_
LAND 25,265 25,265 PURINA MILLS INCORPORA
IMPROVEMENTS ATTN TAX DEPT
AG MARKET 1401 S HANLEY RD
AG USE SAINT LOUIS, MO 63144-
MARKET VALUE 23,265 25,265
99 yw Nat your value for the w— —tort *A An vMW DW t fM =
krnedatety at ru above ads
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AT 1715 26TI
EXHIBIT "A"
Section III -- Facility Description
a) Purina Mills, Inc. will construct a new and larger manufacturing facility on a 14
acre tract adjoining its present facilities located at 201 E. Municipal Drive. The
mill building will measure 90' W X 60' L and 163' H, with an attached 120' x 315'
warehouse.
b) Total assets committed will include approximately $6.5 million in real estate
improvements and $8.5 million of personal property. The project will entail
construction of the buildings as well as installation of all mechanical and process
systems including mixing, pelleting, and packaging equipment, elevator legs,
storage bins and a bulk feed loadout facility.
c) This investment will constitute a total replacement of the existing manufacturing
facility. Due to the age and condition of the existing facility, production here would
not be feasible past the next three years. Purina will have no employees in the
Lubbock area without this plant replacement.
d) A map of the building site is included.
e) The current facility has a personal property tax value of slightly less than $3.0
million. The acquired real property currently has no personal property associated.
f) Work will begin approximately March, 1997, with completion expected around
August, 1998. At that time the existing wood -framed structure, built in 1941, will
be demolished.
g) The existing plant will be replaced with a larger, modern, state-of-the-art facility
better meeting the demands of Purina's growing customer base.
h) Upon completion of all improvements, Purina's new and retained facilities in
Lubbock will have a valuation of approximately $15 million.
i) The current facility has an assessed real property value of approximately $575,000.
The acquired real property has a value of less than $50,000.
j) The Lubbock location currently employs 65 full-time employees. Estimates show
this level of employment maintained in the new facility.
ra1Wo 1/r s
E. Fordham
Avenue
N 89.5737" f 191.50'
I - - —
FOL" 1/2- NO z v
Tract "A"
Purina Mills Addition
AN ADDITION OUT OF SECTION 77.
BLOCK A. CERTIFICATE 1210.
E. L. dt R. R. R.R. Co. SURVEY.
LUBBOCK COUNTY. TEXAS
f
110" r '!Q e t
t r e Pam•,
r sisa f� aro;,5a77
. E 915 89.
Eas
t S "
TRACT 'rA r'
1d"Jff"
PURINA MILLS ADDITION
v6s' Do.
1200.
/� t•3 04�1� l t44
OP, 5 64 6r SS
w 1/r sas M/W
.^,
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SCALE 1"
Neovy line in
AM streets. a
A6 easement
company ufii
any §—. pir
determined b
company ben
paving or tut
replacement.
the Passage
AN electrical i
with the te Planning and
AN existing or
by lhie Plot s
or private util
at a future d,
9" be within
property by $-
service. Such
property awns
Any relocation
developer's e
any portion of
No building pe
not In occordr
provided by PI
Ordinances.
Contain* 14.0!
8eorirge ora t
Raprood as be_
I0v:7+r ALL MEN BY TiM R
THAT L JOHN N. WILSOH.
CERTIFY THAT THIS PLAT WA;
LAID AND THAT THE CORNET
k1Y PC"
UIBSUPERVISION
CITY F BOCK, lE><A
%PITERED PROFESS
LUUgoo K. n%AS
SEPTEMBER S. 111116
APPROVED THIS Ile
CITY PLANNING COMMISSION 0
APPROVED
zor
curz
Section IV, part G -- Variance
b) A variance to the abatement guidelines is being sought based upon the following
factors:
The current facility has outlived its economic viability. Without this investment
the company would cease operations in Lubbock within three years, removing
$3 million from the tax base and a 65 person, $3 million annual payroll from the
economy. The scope of the project greatly exceeds the minimum investment
criteria governing tax abatement. The facility is located within an enterprise
zone and will add significantly to the local tax base.
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LUBBOCK, , TEXAS •- 7940863566' ,:•
(806) 762-5000 EXT: 503
161286 CS F PACIFIC -PROP:'
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IL 68 APPUUL'
1995 TAX STATEMENT
PAYABLE UPON RECEIPT STATEMENT NO. 1 ZO 1
MAKE CHECKS PAYABLE TO: XREF ID 00800459
LUBBOCK CENTRAL APPRAISAL DIST PROPERTY :P62686 FFM & E
P.O. BOX 10568 - 1715 26TH ST. INVENTORY/VEHICLES
LUBBOCK, TEXAS 79408-3568
(806) 762-5000 EXT. 500
73764 PURINA MILLS INCORPORATE
ATTN TAX DEPT
1401 S HANLEY RD
SAINT LOUIS, MO 63144
PLEJSE 9-=%;RN +t S -.:V W!rw P-*pttENT
TO RECEIVE A RECEIPT
CHECK BOX a
�, IIl 111 �111 � 111111-19111
TAX DUE
1995 TAX STATEMENT
PAYABLE UPON RECEIPT STATEMENT NO. 3 8 2 9
MAKE CHECKS PAYABLE TO: XREF ID 00079426
LUBBOCK CENTRAL APPRAISAL DIST PROPERTY :R60133 BYRD L 1
P.O. BOX 10568 - 1715 26TH ST.
LUBBOCK, TEXAS 79408-3568
(806) 762-5000 EXT. 500
162560 PURINA MILLS INC
ATTN TAX DEPARTMENT
1401 S HANLEY RD
SAINT LOUIS, MO 63144
PLEASE RETU N Ty;$ PC97!:N W!TH PJVNIENT
TO RECEIVE A RECEIPT
CHECK BOX Q
�: IIU 1111111111111I1�CC1 ��
TAX DUE
1995 TAX STATEMENT
PAYABLE UPON RECEIPT STATEMENT NO. 1 7 7 7
MAKE CHECKS PAYABLE TO: XREF ID : 00640159
LUBBOCK CENTRAL APPRAISAL DIST PROPERTY :R61902 BLK A SEC 1
P.O. BOX 10568 - 1715 26TH ST. A661 TR C2 ACS: 2.9
LUBBOCK, TEXAS 79408-3568
(806) 762-5000 EXT. 500
TO RECEIVE A RECEIPT
CWECK BOX a
73764 PURINA MILLS INCORPORATE N U11 A ll 111111111.1111111191
ATTN TAX DEPT TAX OUE
1401 S HANLEY RD
SAINT LOUIS, MO 63144 G
1996 NOTICE OF APPRAISED VALUE
LUBBOCK CENTRAL APPR DISTRICT
P.O. BOX 10542
1715 26TH STREET
LUBBOCK, TX 79408-3542
ACCT.# R60133, 00079426
LEGAL DESCRIPTION:
BYRD L 1
SITUS: 201 MUNICIPAL DR;LUBBOCK
�.a l PRESORTED
C�-�•��`--��
FIRST CLASS MAIL
US POSTAGE PAID
MAIL FROM 7M
_
PERMIT NO. 10
`'
LAND 29,098 29,098 PURINA MILLS INCORPORA
IMPROVEMENTS 544*943 544,940 ATTN TAX DEPT
AG MARKET 1401 S HANLEY RD
AG USE SAINT LOUIS, MO 63144-
MARKET VALUE 574, 041 574, 038
AqqrqqFn
v you IN you value for nw lsment year is in ffw t, Please contact to Appraisal Oisuict office
kwmaiatety at the &Dove addrM M we are un&de to NNW me situation, yyo�u ,ry
heanng with the Am-&3w Review Board by wtahnq a protest form from the llppran
" I" BEGINS HEd1�� WdS "N" W' !+
AT 1715 26TH ST LUBBOCK, TEXAS i<«����11""i''�'��""'l'1"Ifllfitlfl►I�ttttll
_ ...�.��
1996 NOTICE OF APPRAISED VALUE
LUBBOCK CENTRAL APPR DISTRICT
P.D. BOX 10542
1715 26TH STREET
LUBBOCK, TX 79408-3542
ACCT.# R61902, 00640159
LEGAL DESCRIPTION:
BLK A SEC i AB61 TR C2 ACS: 2.9
EXEMPTIONS:
L
PRESORTED
G.��•�/
FIRST CLASS MAIL
US POSTAGE PAID
> i PC
MAIL FROM 7M
PERMIT NO.10
�I
'3
A f�
T:;
LAND 25,265 25,265 PURINA MILLS INCORPORA
IMPROVEMENTS ATTN TAX DEPT
AG MARKET 1401 S HANLEY RD
AG USE SAINT LOUIS, MO 63144-
MARKET VALUE 25, 265 23, 265
•n you rod your value for the ..._• w••• 4 ter� rnmum"Anma" owrict office
irrmfedmlely at the soave "
hearing with the Appraisal Re
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AT 1715 26TI
i
M E M O R A N D U M
DATE: May 5, 1997
TO:
Kevin Walker
FROM:
Kaythie Darnell '
RE:
Change in the March 27, 1997 Minutes
CC:
Debra Forte
Stephen Morath
Bill de Hass
After discussion with the legal division, the conclusion was for the City
Secretary's staff to craft the Memorandum For Record to correct the minutes for
March 27th.
Resolution #5453 referenced the agreement between City of Lubbock and
Purina Mills; thus, the Memorandum For Record content did not affect the
agreement and no amendment is required.
MEMORANDUM FOR RECORD
The following paragraph was inadvertently left out of the Regular City Council Meeting
Minutes, March 27, 1997. This paragraph was obtained from the video recordings of the
March 27, 1997 Regular City Council Meeting.
"Futhermore, I would propose appending said motion to state that the City Council does
not desire to grant any further exceptions to the Tax Abatement Policy and Guidelines and
finally, append the motion to the state that City Council direct the city staff to immediately
start the revision process to the Tax Abatement Policy and Guidelines."
Councilmember Hernandez made a motion to Item #30. He read from a prepared
statement to be inserted into Exhibit "C" prior to the last "WHEREAS" paragraph in the
preamble. The before mentioned paragraph will be inserted following the prepared
statement when the permanent minutes are prepared.
IN THE EVENT OF PASSAGE OF NOTICE OF INTENT; PLEASE READ THIS
AMENDMENT TO THE PROPOSED TAX ABATEMENT AGREEMENT INTO THE
RECORD.
Insert prior to the last "WHEREAS" paragraph in the pre4mble:
WHEREAS, Section 312.204(f) of the Tax Code provides that Tax Abatement
Agreements for property located in a municipal enterprise zone are not required to
contain identical terms to all other Tax Abatement Agreements; and
WHEREAS, it is anticipated that law resulting in reduced local ad valorem
taxation by cities, counties and school districts on businesses shall be enacted by the
Texas Legislature; and
WHEREAS, the City Council finds that the total tax abatement to be provided by
the City to the Company for the tax abatement term shall be reduced at the end of each
term year after the base year by the same amount of any ad valorem tax reduction
provided by the Texas legislature beyond the ad valorem tax rate that would otherwise
have been in effect in without such legislation having been passed; and
Add to Section 5:
The amount of taxes herein abated shall be reduced dollar for dollar by any
amount of ad valorem tax relief that shall be granted by the Texas Legislature during the
term of this agreement. Such reduction in abatement shall be included in each year's tax
payment by the Company to the City following the base year should the Legislature take
such action.
ddcon/taxcon.doc
EXHIBIT "C"
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this 77rh day of March , 1997, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and Purina Mills, Inc. (hereinafter called "Company");
WITNESSETH:
WHEREAS, City did receive from Company on theme day of Jana, 1997, an
application for tax abatement for the replacement of an existing manufacturing facility to
be located at 201 E. Municipal Drive, which is further described as a tract of land out of
Section Seventy -Seven (77), Block A, Abstract No. 179, Certificate No. 1210, E.L. &
R.R. Co. Survey, Lubbock, Lubbock County, Texas, and being further described as
follows:
BEGINNING at a 1" iron pipe found, 50.00 feet Northwesterly as measured
perpendicular to the centerline of the main tract of Atchison, Topeka & Santa Fe Railway
Company, for the Southwest and beginning comer of this tract whence the Southwest
corner of Section 77, Block A, Certificate No. 210, E.L. & R.R. Co. Survey, Lubbock
County, Texas, bears South 64°36'04" West, 402.70 feet and South 00°06'54" East,
93.27 feet;
THENCE North 64°36'04" East, parallel with said main tract centerline, 2425.98 feet
(call 2425.95 feet) to a 1/2" iron rod and cap found for the most Easterly corner of this
tract;
THENCE North 25°18'51" West (call North 25023'56" West), 59.97 feet (call 60.0 feet)
to a 1/2" iron rod and cap found for the P.C. of a curve to the left;
THENCE Northwesterly, along the arc of said curve, an arc distance of 162.99 feet (call
162.47 feet) to a 1/2" iron rod and cap set for the P.T. of said curve with a radius of
120.00 feet, a central angle of 77°49' 14", and a chord that bears North 64°05'28" West,
150.75 feet;
THENCE South 77'01'52" West (call South 77002'30" West), 1886.94 feet (call
1886.98 feet) to a 1/2" iron rod and cap found for a comer of this tract;
THENCE South 89057'37" West (call West), 191.50 feet to a 1/2" iron rod with cap
found for the Northwest corner of this tract;
THENCE South 00100' 14" East (call South), 737.02 feet (call 737.10 feet) to the Point
of Beginning.
WHEREAS, upon review of the above application, it was determined that the new
facility will be located in the North Enterprise Zone designated by the City in Ordinance
No. 9591; and
WHEREAS, the Guidelines and Criteria for Tax Abatement within the
jurisdictions of the taxing units of Lubbock County were heretofore adopted by
Resolution No. 4973 of the City Council of the City of Lubbock; and
WHEREAS, the City has complied with all the requirements set forth in
V.T.C.A., Tax Code §312.201; and
WHEREAS, the City has complied 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 pass Ordinance No. 9591 creating an Enterprise Zone
for commercial and industrial tax abatement, and said Zone includes the hereinabove
described tract of land; and
WHEREAS, V.A.T.C., Tax Code §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 replacement of an existing facility; 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 recognizes replacement of an existing facility as being eligible for
tax abatement status; and
WHEREAS, though the Company's application does not meet the specific
standards of Section IV(9)(c)(1) of such Guidelines in that the replacement of the existing
facility will not result in the creation and retention of 10 new jobs, the City Council does
hereby find that all of the other Guidelines, as adopted by Resolution No. 4288, have
otherwise been met by the Company; and
WHEREAS, Section IV(9)(d) of the Guidelines enables the governing body of the
City to grant the Company a variance from the requirements contained in Section
AGREEMENT--PURINA MILLS, INC. PAGE 2
IV(9)(c)(1) of the Guidelines by the affirmative vote of three -fourths of the governing
body; and
WHEREAS, the City Council finds that granting the Company a variance from
the requirements of Section IV(9)(c)(1) and entering into this agreement to abate taxes on
the property described in Exhibit "A" will contribute to the retention of existing jobs
within the City of Lubbock, and enhance economic development within the designated
Enterprise Zone; and
WHEREAS, the location of the new facility and surrounding real property, and a
brief description of the same, are outlined on Exhibit "A" attached hereto and made a part
of this Agreement for all purposes;
NOW THEREFORE, for and in consideration of the premises and of the mutual
terms, covenants and conditions herein contained, the City does hereby grant the
Company a variance from the requirements of Section IV(9)(c)(1) of the Guidelines and
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 Year. The base year applicable to real property, which is the
subject of this Agreement, shall be 1997, and the assessed value of the real property shall
be the assessed value applicable to such property for said year.
SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in
accordance with the assessed value of such property for the base year. Base year taxes
upon the real property are thus not abated.
SECTION 4. Abatement of Increase in Base Year Tax. In accordance with
V.A.T.C., Tax Code §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. Net Amount of Abatement. The amount of taxes herein abated
by the City shall be reduced dollar for dollar by the amount of taxes that would have
otherwise become due annually on the property which the new facility is intended to
replace, regardless of whether the existing property is abandoned or demolished by the
Company.
SECTION 6. Prop�a 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
AGREEMENT --PURINA MILLS, INC. PAGE 3
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. Except as otherwise indicated in Sections 5
and 6 above, 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 tract of land out of
Section Seventy -Seven (77), Block A, Abstract No. 179, Certificate No.
1210, E.L. & R.R. Co. Survey, Lubbock, Lubbock County, Texas, and
being further described as follows:
BEGINNING at a 1" iron pipe found, 50.00 feet Northwesterly as
measured perpendicular to the centerline of the main tract of Atchison,
Topeka & Santa Fe Railway Company, for the Southwest and beginning
corner of this tract whence the Southwest corner of Section 77, Block A,.
Certificate No. 210, E.L. & R.R. Co. Survey, Lubbock. County, Texas,
bears South 64136'04" West, 402.70 feet and South 00°06'54" East, 93.27
feet;
THENCE North 64°36'04" East, parallel with said main tract centerline,
2425.98 feet (call 2425.95 feet) to a 1/2" iron rod and cap found for the
most Easterly corner of this tract;
THENCE North 25°18'51" West (call North 25°23'56" West), 59.97 feet
(call 60.0 feet) to a 1/2" iron rod and cap found for the P.C. of a curve to
the left;
THENCE Northwesterly, along the arc of said curve, an arc distance of
162.99 feet (call 162.47 feet) to a 1/2" iron rod and cap set for the P.T. of
said curve with a radius of 120.00 feet, a central angle of 77°49' 14", and a
chord that bears North 64°05'28" West, 150.75 feet;
THENCE South 77'01'52" West (call South 77°02'30" West), 1886.94
feet (call 1886.98 feet) to a 1/2" iron rod and cap found for a comer of this
tract;
THENCE South 89°57'37" West (call West), 191.50 feet to a 1/2" iron
rod with cap found for the Northwest corner of this tract;
THENCE South 00°00' 14" East (call South), 737.02 feet (call 737.10
feet) to the Point of Beginning,
which proposed improvements are set forth in a plat of the above tracts of
land, attached hereto as Exhibit "A" and made a part hereof.
AGREEMENT--PURINA MILLS, INC. PAGE 4
(b) All eligible tangible personal property placed in or upon the property set
forth in Exhibit "A".
(c) It is further understood that a items affixed to the new 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 subparagraph (a) above set forth.
SECTION 8. Economic Qualification. It is hereby found by the City that
Company will expend funds in excess of the funds necessary to qualify for tax abatement
by replacing an existing facility, all as set forth in Section IV(9)(c) 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 SIX AND ONE-HALF MILLION DOLLARS ($6,500,000) to replace an
existing manufacturing facility and EIGHT AND ONE-HALF MILLION DOLLARS
($8,500,000) for machinery and equipment, to be located within the Enterprise Zone
created by Ordinance No. 9591.
SECTION 10. Job Retention. Company agrees to retain sixty-five (65) full-time
equivalent jobs within the Company plant located on the tract of land hereinabove
described.
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 ensure 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 one hundred percent (100%) of taxes on eligible property, except as
provided in Sections 5 and 6 above.
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. JYpe of Improyements. The Company proposes to construct a
new manufacturing facility to replace the existing obsolete facility as described in Exhibit
"A". The Company further states that the proposed improvements to the property above
mentioned shall commence on the 1 st day of March, 1997, and shall be completed within
approximately 540 days from said date. The Company may request an extension of the
AGREEMENT--PURINA MILLS, INC. PAGE 5
above completion date from City in the event circumstances beyond the control of
Company necessitate additional time for completion of such improvements, and such
consent shall not unreasonably be withheld.
SECTION 15. Drawings of Improvements. Company shall fizrnish 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 Use. Company agrees to limit the use of the
property set forth in Exhibit "A" to commercial and/or industrial uses as those terms are
defined in the zoning ordinances of the City of Lubbock, and to limit the uses of the
property to uses consistent with the general purpose of encouraging development of the
Enterprise Zone during the term of this agreement.
SECTION 17. Reca=ri e. 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 Guidelines and Criteria for Tax Abatement adopted by
Resolution No. 4973 of the City Council of the City of Lubbock.
SECTION 18. 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 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
City Manager
P.O. Box 2000
Lubbock, Texas 79457
Purina Mills, Inc.
Dave Abbott
1401 S. Hanley Rd.
St. Louis, Mo. 63144
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.
AGREEMENT --PURINA MILLS, INC. PAGE 6
EXECUTED this 27th day of March , 199_
PURINA MILLS, INC.
Dave Abbott
Chief Executive Officer
ATTEST:
Secretary
da/misc97/purina. doc
February 19, 1997
CITY OF LUBBOCK
A Municipal Corporation
Windy Sitton
MAYOR
ATTEST:
Kaythie Darnell
City Council Chief of Staff/City Secretary
APPROVED AS TO C NTENT:
Debra B. Forte', First Assistant
City Manager
APPROVED AS TO FORM:
'ffarold Willard
Assistant City Attorney
AGREEMENT --PURINA MILLS, INC. PAGE 7