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HomeMy WebLinkAboutResolution - 5499 - Tax Abatement Agreement - Chaparral Graphics Group Inc - CI Addition - 05_22_1997RESOLUTION N0.5499 Item #34 May 22,1997 (RESOLUTION WHEREAS, the City Council has determined to give notice of its intent to enter into a Tax Abatement Agreement with Chaparral Graphics Group, Inc., and WHEREAS, V.T.C.A., Tax Code, Section 312.2041 requires notice of the intent of City Council to be given to the presiding officer of the governing body of each taxing unit in which the property to be subject to the Tax Abatement Agreement is located; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of City Council to enter into a Tax Abatement Agreement with Chaparral Graphics Group, 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 in City of Lubbock, Lubbock County, Texas, and further described as follows: LOT 2, BLOCK 11, CRAWFORD INDUSTRIAL ADDITION, CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS, FURTHER DESCRIBED AS FOLLOWS: BEGINNING at the Southwest corner of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas; THENCE North a distance of 350.00 feet to a 5/8" iron rod set for the Northwest corner of this tract; THENCE East a distance of 271.50 feet to a 5/8" iron rod set for the Northeast corner of this tract; THENCE South a distance of 350.00 feet to a 1 /2" iron rod found, in the North right-of-way line of East 66th Street, for the Southeast corner of this tract; THENCE West, along the North right-of-way line of East 66th Street, a distance of 271.50 feet to the Point of Beginning. Passed by the City Council this 22nd day of May , 1997. ATTEST: L ILk 4a ie Darnell "- APPROVE5'AS,TO CONTENT: Kevin Walker, Business Liason Officer APPROVED AS TO FORM: VanWiver, First Assistant Attorney DGV:gs/ccdocs/CGG-TA.res May 12, 1997 Y RESOLUTION NO. 5499 Item #34 May 22,1997 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 29 BLOCK 11, CRAWFORD INDUSTRIAL ADDITION, CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS, FURTHER DESCRIBED AS FOLLOWS: BEGINNING at the Southwest comer of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas; THENCE North a distance of 350.00 feet to a 5/8" iron rod set for the Northwest comer of this tract; THENCE East a distance of 271.50 feet to a 5/8" iron rod set for the Northeast comer of this tract; THENCE South a distance of 350.00 feet to a 1/2" iron rod found, in the North right-of- way line of East 66th Street, for the Southeast corner of this tract; THENCE West, along the North right-of-way line of East 66th Street, a distance of 271.50 feet to the Point of Beginning. Notice is hereby given that the City Council of the City of Lubbock intends to enter into an agreement with Chaparral Graphics Group, 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 Chaparral Graphics Group, Inc., 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 22nd day of May , 1997, at 10 : 30 o'clock _A__.m. DGV:gs/ccdocs/CGG-NOI.DOC May 12, 1997 EXHIBIT "A" 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 Chaparral Graphics Group, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on theme day of Apt, 1997, an application for tax abatement for the expansion of an existing facility located at 921 E. 66th Street, which is further described as a 2.182 acre portion of land out of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas being further described as follows: BEGINNING at the Southwest corner of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas; THENCE North a distance of 350.00 feet to a 5/8" iron rod set for the Northwest corner of this tract; THENCE East a distance of 271.50 feet to a 5/8" iron rod set for the Northeast corner of this tract; THENCE South a distance of 350.00 feet to a 1/2" iron rod found, in the North right-of- way line of East 66th Street, for the Southeast corner of this tract; THENCE West, along the North right-of-way line of East 66th Street, a distance of 271.50 feet to the Point of Beginning. WHEREAS, upon review of the above application it was determined that the facilities will be located in the South Enterprise Zone designated by the City in Ordinance No. 9591 covering the above described property; and WHEREAS, the Guidelines and Criteria for Tax Abatement within the jurisdictions of the taxing units of Lubbock County was heretofore adopted by Resolution No. 4973 of the City Council of the City of Lubbock; and AGREEMENT - CHAPARRAL GRAPHICS GROUP, INC. PAGE 1 WHEREAS, the City did comply with all the requirements set forth in V.T.C.A., Tax Code, Section 312.201; and WHEREAS, the City did comply with all of the criteria and guidelines as set forth in the Guidelines and Criteria governing Tax Abatement for all taxing units contained within Lubbock County, said guidelines having been adopted by Resolution No. 4973 of the City on September 28, 1995, and WHEREAS, the City did thereafter pass Ordinance No. 9591 creating an enterprise zone for commercial and industrial tax abatement, said zone including a 2.182 acre portion of land out of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas being finther described as follows: BEGINNING at the Southwest corner of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas; THENCE North a distance of 350.00 feet to a 5/8" iron rod set for the Northwest corner of this tract; THENCE East a distance of 271.50 feet to a 5/8" iron rod set for the Northeast corner of this tract; THENCE South a distance of 350.00 feet to a 1/2" iron rod found, in the North right-of- way line of East 66th Street, for the Southeast corner of this tract; THENCE West, along the North right-of-way line of East 66th Street, a distance of 271.50 feet to the Point of Beginning. WHEREAS, V.A.T.C., Tax Code, Sec. 312.2011 provides that designation as an enterprise zone constitutes designation as a reinvestment zone without further action; and WHEREAS, the application received by City from Company is an application for the expansion of an existing facility ; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a purpose is to be included in the guidelines for tax abatement and to be eligible for such treatment; and WHEREAS, Section IV of the Guidelines and Criteria governing Tax Abatement for all taxing units contained within Lubbock County adopted by the City Council by Resolution No. 4973 does recognize expansion of an existing facility as being eligible for tax abatement status; and AGREEMENT --CHAPARRAL GRAPHICS GROUP, INC. PAGE 2 WHEREAS, the City Council does hereby find that all of the Guidelines and Criteria Governing Tax Abatement, as adopted by Resolution No. 4973, have been met by Company; and WHEREAS, Company does intend to expand an existing facility; and WHEREAS, the location of the facility and surrounding real property, which are to be the subject matter of this Agreement, are attached hereto as Exhibit "A" and made a part of this Agreement for all purposes; and WHEREAS, the City Council finds that entering into this Agreement to abate taxes on the property described in Exhibit "A" will create new jobs within the City and enhance economic development within the enterprise zone; and 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. T=. 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 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, 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. Rw=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 Council by Resolution No. 4973 is incorporated by reference herein as if fully set out in this Agreement and fully descn'bes the 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: AGREEMENT - CHAPARRAL GRAPHICS GROUP, INC. PAGE 3 (a) All proposed new improvements to be placed upon a 2.182 acre portion of land out of Lot 2, Block 11, Crawford industrial Addition, to the City of Lubbock, Lubbock County, Texas being further described as follows: BEGINNING at the Southwest corner of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas; THENCE North a distance of 350.00 feet to a 5/8" iron rod set for the Northwest comer of this tract; THENCE East a distance of 271.50 feet to a 5/8" iron rod set for the Northeast comer of this tract; THENCE South a distance of 350.00 feet to a 1/2" iron rod found, in the North right-of-way line of East 66th Street, for the Southeast corner of this tract; THENCE West, along the North right-of-way line of East 66th Street, a distance of 271.50 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 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 improvement and taxes thereon shall be abated in accordance with the provisions of subparagraph (a) above set forth. SECTION 7. _ Economic Qualification. It is hereby found by the City that Company will expend funds in excess of the fimds necessary to qualify for tax abatement by expanding an existing facility, all as set forth in Section IV(9)(b) of the Guidelines and Criteria for Tax Abatement adopted by the City through Resolution No. 4973. SECTION 8. Value of Improvements. Company intends to expend approximately one million three hundred forty thousand ($1,340,000) dollars in machinery and equipment and one hundred two thousand ($102,000) dollars in expanding their facility, to be located within the enterprise zone created by Ordinance No. 9591. SECTION 9. Creation of New lobs. Company agrees within twelve (12) months from the date of execution of this Agreement that it will create fifteen (15) full-time equivalent new jobs within the Company plant located within a 2.182 acre portion of land AGREEMENT —CHAPARRAL GRAPHICS GROUP, INC. PAGE 4 out of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas being further described as follows: BEGINNING at the Southwest comer of Lot 2, Block 11, Crawford Industrial Addition, to the City of Lubbock, Lubbock County, Texas; THENCE North a distance of 350.00 feet to a 5/8" iron rod set for the Northwest comer of this tract; THENCE East a distance of 271.50 feet to a 5/8" iron rod set for the Northeast corner of this tract; THENCE South a distance of 350.00 feet to a 1/2" iron rod found, in the North right-of- way line of East 66th Street, for the Southeast comer of this tract; THENCE West, along the North right-of-way line of East 66th Street, a distance of 271.50 feet to the Point of Beginning. and use its best efforts to maintain a minimum of forty one (41) jobs during the term of this agreement. SECTION 10. City Access to Prop-. Company covenants and agrees that City shall have access to the property, which is the subject matter of this Agreement, upon reasonable notice and during normal business hours, and that municipal employees shall be able to inspect the property to insure that the improvements are being made in accordance with the terms and conditions of Company's application for tax abatement and this Agreement. SECTION 11. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate taxes on eligible property according to the following schedule: Year 1: 1000/0 Year 2: 80% Year 3: 600/0 Year 4: 401% Year 5: 20% 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. T,ng of Impravements. The Company proposes to expand an existing facility as described in Exhibit W. The Company further states that the proposed improvements to the property above mentioned shall commence on the 1st day of June, 1997, and shall be completed within approximately 120 days from said date. AGREEMENT - CHAPARRAL GRAPHICS GROUP, INC. PAGE 5 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 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 16. Rtture. 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 17. Certification. The Company agrees to certify annually to the governing body of each taxing unit that the owner is in compliance with the terms of the Agreement. SECTION 18. Compliance. The City may cancel or modify this Agreement if the Company fails to comply with the Agreement. 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 City Manager P.O. Box 2000 Lubbock, Texas 79457 Chaparral Graphics Group, Inc. Joe Stephenson 921 E. 66th Street Lubbock, Texas 79404-5505 AGREEMENT --CHAPARRAL GRAPHICS GROUP, INC. PAGE 6 SECTION 20. Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as it has been finally passed and approved. EXECUTED this 22nd day of May , 199� CHAPARRAL GRAPHICS GROUP, INC. CITY OF LUBBOCK A Municipal Corporation Joe Stephenson PARTNER ATTEST: Secretary CB: May 7, 1997 Windy Sitton, MAYOR ATTEST: Kaythie City Sec Kevin Walk Business Liaison Officer APPROVED ASIO FORM: D andiver Assistant City Attorney AGREEMENT — CHAPARRAL GRAPHICS GROUP, INC. PAGE 7 �z4T IC b F. MT IT "Ae PERIMETER SURVEY OF A 2.182 ACRE PORTION OF LAND OUT OF LOT 2 BLOCK 119 CRAWFORD INDUSTRIAL ADDITION TO THE CIiY OF LUBBOCK, LUBBOCK COUNTY, TEXAS EAST -WEST M.'S' to attoe� rae " «.a,r. b 9 } ,: All. US?- ACRES v .o Qes •, ts< usrwrow oxesni or so : atiouatsua E. 66th STREET KETES AND BOUNDS DESCRIPTION of a 2.102 acre portiod of land out of Lot 2, Block 11, Crawford Industrial Addition. to the City of Lubbock, Lubbock County. Texas, being farther described as follows: . BECIMING at the Southwest corner of Lot 2. Block 11. Crawford Industrial Addition, to the City of Lubbock. Lubbock County, Texas; T�+ICE North a distance of 350.00 feet to a 5/8" iron rod set for the Northwest corner of this tract; TMWCE East a distance of 271.50 feet to a 5/8" iron rod set for .the Northeast corner of this tract; TMCE South a distance of 350.00 feet to a V iron rod found, to the North right- of-way line of East 66th Street, for the Southeast corner of this tract; TWCE Hest, along the Forth rigbt-of-way line of East 66th Street. a distance of 271.50 feet to the point of Begiaaing. Certified correct September 26. 1986 ` Registered Public Surveyor TOMULE E. Id Ju W171. /` f ,�t t 1. Y,���:�� ��. ��-. _.�—_ s t. i 4.�r�:.. s) '. •'�••/Y drl `� �� � 5 .•a ���•��,• �[`7-=' T�_� 'q�T►�{ .�s • t •�qf s� � ! !� ►•' � ''� sfsw�l'�i�• • �..,r r r� •.' , fwl a �.'� • '� � �';' • r .! e.' •�•'��� �� ' �. � •. yl,�! ���{�`.ti•:.3;�;r '' "T F t .�� �� `•'aS, IJ. 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F - MOWT LUDBUCK ISD 807,978 0 807,978 1.487000 12, 014. 63 CITY OF LUBBOCK 807,978 0 807,979 0.585900 4,733 HI PLAINS WATER 807, 978 0 807, 978 0. 008400 67.87 LUDE CNTY HOSPITAL 807,9781 0 807,978 0.103400 8 LUBBOCK COUNTY 807,9781 0 807, 978 0. 168930 1, 3 4. 9 +� TAXES REDUCED BY ADDITIONAL SALES TAX (COUNTY: $1234.27, CITY: $371.51) PROPERTY :P85273 FFMAE U/VEHICLES PRINT SHOP, DBA: CHAPARRAL PRESS INC, SITUS: 921 E 66TH ST 161603 CHAPARRAL PRESS INC 921 E 66TH ST LUBBOCK, TX 79404-5505 �. .._, tkx CEILM ON .��.�. . OVER as HOMESTEAD IFTAXES ARE PA�O IN .: tFSg (4 DSOCXJNTTOM ORMS . . . TAX OUE OCT OX 0.00 19,016.81 NOV 0% 0.00 19, 016. 81 DEC OX 0. 00 19, 016.81 JAN OX 0. 00 19, 016.111 FEB 72 1, 331. 18 20, 347.99 MAR 9% 1, 711. 51 20, 728. 32 APR 11X 21 091. 85 21,108.66 I AAY 13% 2,472.20 21, 489. 01 JUN X , 852. 53 21.869.34 -DXT"E-RECI,. RECE). BY IF YOU HAVE OUESTIONS PLEASE CALL (806) 762-5000. OWD TAXES BECOME DELINQUENT ON FEBRUARY 1. PAY BY AFTER JUNE AN ADDITIONAL PENALTY OF 15% MAY BE IMPOSED ON THE AMOUNT OF TAXES, PENALTY AND INTEREST DUlCHR.G..TO AFTER JULY AN ADDITIONAL 1% PENALTY AND INTEREST WILL BE APPLIED. RETAIN THIS PORTION FOR YOUR RECORDS 1996 TAX STATEMENT VALUATION BREAKDOWN STATOW 0. 4515 �r�".�:c��4��r.��� •t � art r. ,.�,� rlt'�;� �� �;t �a� PROPERTY :R57195 CRAWfORD ;ND BLK 11 W271.5'OF L 2, SITUS: 921 E 66TH ST 12663 CHAPARRAL GRAPHICS GROUP INC 921 E 66TH ST LUBBOCK, TX 79404-5505 _I DATE RECD. TAX clum at RECD. BY IF YOU HAVE QUESTIONS PLEASE CALL (806) 762-5000. OWD TAXES BECOME DELINQUENT ON FEBRUARY 1. PAY GY 1 AFTER JUNE AN ADDITIONAL PENALTY OF 169 MAY BE IMPOSED ON THE AMOUNT OF TAXES, PENALTY AND INTEREST DUE. CHRG. TO , AFTER JULY AN ADDITIONAL It PENALTY AND INTEREST MILL BE APPLIED. EM S a- iv finer Ok . END OF YEAR SUNNARY - SORTED BY ASSET A/C M PAMIs CHAPARRAL. MMICS, INC. PAGE: 1 M1:TiM: 1 FEDERAL Std Conv Applied YEAR END: 06/30/97 DATE:. 6?J14A7 NOTES: Range: - FILE: LsiAKDATA96\110 TUE: 12:87:IS includes Section 179 Asset A/C Account Name Cost Depr Basis Beg A/Depr Curr Depr End A/Depr Next Yr Dep Net Book Val 130 BUILDING 394195.60 394195.M 194202.86 18117.87 212319.93 0.02 181875.07 131 PRINT SHOP EQUIPMENT 131S960.76 1291101.76 11M480.16 82932.15 11MAI?- 31 0.00 125189.45 132 OFFICE FURNITURE t EQUIP. 112MO.47 111807.97 74MI.94 IM.14 &M.68 0.00 26581.89 133 iEASDM IMPROVEMENTS 42M. 00 4239.00 4239.00 0. M 4239. M 0.08 0. M 134 VEHICLES 59396.77 59390.77 51417.23 3941.28 35438.43 8.M 39% 34 150 LAND 44M6.17 L N LOG 0.M 0. 00 9. M 44836.17 Tmtal Active Assets 1130642.17 1860734.50 1425241.19 115394.56 154OM 75 0. M 382434.92 Disposed Assets Depreciation 0.00 Current Year Depreciation 115394.56 Current Year Section 179 0.M � � I r u A n A n O A ...- GRAPHICS GROUP, INC. Section III - FACILITY DESCRIPTION Exibit III - a (a) A general description of the improvements to be undertaken. Chaparral Graphics Group proposal of expansion will consist of an addition of 3,750 sq. feet to our present 18,250 sq. foot building to facilitate the addition of - a 8 unit heatset web press with two folders, plus additional support equipment and inserting equipment. Exibit III - g (g) The proposed improvements are in connection with the expansion of present existing facilities to accomodate the upgrade and modernization of manufacturing equipment. Chaparral Pre-Press/Service Bureau - Chaparral Press'- Chaparral Malting Service 921 East 66th Saes • Lubbock. Texu 79404-5505 ■ (806) 745-9292 a Fax (806) 745.6675 CHAPARRAL GRAPHICS GROUP, INC. PROPOSAL FOR EXPANSION EXPANSION OF EXISTING FACILITIES: 30' X 126 Estimated Cost: $102,625.00 REPLACEMENT AND UPGRADING OF FACILITY MANUFACTURING EQUIPMENT Heatset Web $1,340,000.00 ADDITIONAL JOB REQUIREMENTS Start-up (33.3%) 5 3.6 monft (66%) 4 mmWng total 9 6-12 matths (100%) 6 nuft total 15 Ex tBIT 'III- b CHAPARRAL GRAPHICS GROUP, INC. PROPOSAL. FOR EXPANSION EQUIPMENT: EIGHT (8) APACHE SCOUT WEB PRINTING UNITS TWO (2) 100 HP PRESS DRIVES ONE (1) JF25 REBUILT HARRIS FOLDER ONE (1) JF10 REBUILT HARRIS FOLDER FIVE (5) USED SPLICERS HEATSET PACKAGE ENVIRONMENTAL PACKAGE (ESTIMATE) FREIGHT, RIGGING AND INSTALLATION WEB AND PACKAGE TURNKEY PRICE / FULL LIST DISCOUNT PACKAGE PRICE WITH CONCESSION INSERTING EQUIPMENT TOTAL S 600,000.00 82,000.00 110,000.00 135,000.00 125,000.00 162,500.00 100,000.00 94.500.00 $ 1,409,000.00 157,000.00 $ 1,252,000.00 78,000.00 $1,340,000.00 EMBtT =-C. CHAPARRAL GRAPHICS GROUP, INC. PROPOSAL FOR EXPANSION BUILDING. BUILDING SHELL (30'X125) OFFICES / RESTROOMS (2) MECHANICAL / ELECTRICAL. TOTAL S 51,214.00 24,010.00 27,401.00 $102,625.00