HomeMy WebLinkAboutResolution - 5517 - Assignment-Tax Abatement, United Supermarkets Inc-Barnett Lane Invstements Inc - 06_12_1997Resolution No.5517
Item #44
June 12, 1997
WaMeAllnew
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to
execute for and on behalf of the City of Lubbock an approval of an assignment to Barnett Lane
Investments, Inc. of that certain tax abatement agreement dated January 25, 1996, attached
herewith, by and between the City of Lubbock and United Supermarkets, Inc., and any
associated documents, which Agreement 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 12th day of June , 1997.
ATTEST: --
KaDarnell, City Secretary
APPRO TO CONTENT:
Kevin Walker, Business Liason Officer
APPROVED AS TO FORM:
T & � � �,
d G. Vandiver, First
City Attorney
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April 25, 1997
Resolution No. 5517
Item #44
June 12, 1997
THE STATE OF TEXAS
ASSIGNMENT
COUNTY OF LUBBOCK
KNOW ALL MEN BY THESE PRESENTS THAT UNITED SUPERMARKETS, INC.,
a Texas Corporation ("Assignor"), has this day and does by these presents transfer and assign to
BARNETT LANE INVESTMENTS INC., a Texas Corporation, that certain tax abatement
Agreement dated January 25, 1996, between the CITY OF LUBBOCK, TEXAS, and UNITED
SUPERMARKETS, INC., a copy of which is attached hereto and is incorporated herein by
reference.
BARNETT LANE INVESTMENTS, INC., hereby assumes all of the obligations of the
Assignor under the said Agreement. This Assignment shall be effective upon approval by the City
Council of the City of Lubbock Texas, and the execution by the Mayor thereof.
DATED this the 12th day of June , 1997.
ATTEST:
Secretary
ATTEST:
:err I _'! r•'�
TITLE:
BARNETT LANE INVESTMENTS, INC.
BY:
w
ATTEST:
Ka: th arnell, City Secretary
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May 26, 1997
...
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*IKDY SItfoff,
MAYOR
i
Resolution No.5082
January 25, 1996
Item #17
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this 25th day of January ,
1996, by and between the City of Lubbock, Texas, a home rule municipality of the State
of Texas (hereinafter called "City") and United Supermarkets, Inc. (hereinafter called
"Company");
WITNESSETH:
WHEREAS, City did receive from Company on the 17th day of November, 1995,
an application for tax abatement for construction of Company's facilities located within a
portion of Tract "A" and "B", Wilshire Park Addition to the City of Lubbock, Lubbock
County, Texas, further described by Metes and Bounds as follows:
METES AND BOUNDS DESCRIPTION of a portion of Tract "A", Wilshire Park
Addition to the City of Lubbock, Lubbock County, Texas, being further described as
follows:
BEGINNING at a square head bolt found in the North line of a 20 foot alley, for the
Southeast comer of this tract, which bears West a distance of 1910.2 feet and North, a
distance of 1497.50 feet from the Southeast corner of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley also being the south line of Tracts
"A" and "B", a distance of 593.90 feet to a point for the Southwest corner of this tract;
THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a comer of this
tract;
THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2" iron rod with
cap set in the West line of Tract "B" for a corner of this tract:
THENCE North 26 degrees 1 V48" West, along said West line of Tract "B" a distance of
150.00 feet to a 1/2" iron rod with cap set in the South right-of-way line of Parkway
Drive, for the Northwest comer of this tract, also being the original Northwest comer of
Tract "B";
THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parkway
Drive, also being the North line of Tract `B", a distance of 120.2 feet to a 1/2" iron rod
with cap set for a point of curvature;
THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve
having a radius of 1799.9 feet, a central angle of 15 degrees 09' 14", tangent lengths of
239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast
comer of this tract;
THENCE South a distance of 526.15 feet to the Point of Beginning.
METES AND BOUNDS DESCRIPTION of a portion of Tract `B", Wilshire Park
Addition to the City of Lubbock, Lubbock County, Texas, being further described as
follows:
BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue
for the Southeast comer of this tract, also being the original Southeast comer of Tract
"B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the
Southeast comer of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square
head bolt found at the Southwest corner of this tract;
THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of-
way line of Parkway Drive, for the Northwest comer of this tract;
THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9
feet, a central angle of 1 degree 56'41", tangent lengths of 30.55 feet, and a chord
distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature;
THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00
feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of
21.21 feet to a 3/8" iron rod found in the West right -or -way line of Beech Avenue, at a
point of compound curvature;
UNITED SUPERMARKETS, INC. 2
THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a
curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees
02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/8" iron rod found
at a point of tangency;
THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point
of Beginning.
WHEREAS, upon review of the above application, it was determined that
facilities would be located in the North Enterprise Zone designated by City in its
Ordinance No. 9591; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones in the City of Lubbock was
heretofore adopted by Resolution No. 4974 of the City Council of the City of Lubbock;
and
WHEREAS, the City did comply with all the requirements set forth in V.T.C.A.,
Tax Code, Section 312.2011; and
WHEREAS, the City did comply with all of the criteria and guidelines for
creation of an enterprise zone as set forth in Chapter 2303, Subchapter C of the Texas
Enterprise Zone Act, Texas Government Code, having adopted Ordinance No. 9591 of
the City on February 18, 1993, which ordinance includes Tract "A" and "B", Wilshire
Park Addition to the City of Lubbock, Lubbock County, Texas, being further described
by Metes and Bounds as follows:
METES AND BOUNDS DESCRIPTION of a portion of Tract "A", Wilshire Park
Addition to the City of Lubbock, Lubbock County, Texas, being further described as
follows:
BEGRQ41NG at a square head bolt found in the North line of a 20 foot alley, for the
southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a
distance of 1497.50 feet from the Southeast corner of Section 2, Block A;
UNITED SUPERMARKETS, INC. 3
THENCE West, along the North line, of a 20 foot alley along being the south line of
Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest corner of this
tract;
THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this
tract;
THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2" iron rod with
cap set in the West line of Tract "B" for a corner of this tract:
THENCE North 26 degrees 11'48" West, along said West line of Tract "B" a distance of
150.00 feet to a 1/2" iron rod with cap set in the South right-of-way line of Parkway
Drive, for the Northwest corner of this tract, also being the original Northwest corner of
Tract "B";
THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parkway
Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1/2" iron rod
with cap set for a point of curvature;
THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve
having a radius of 1799.9 feet, a central angle of 15 degrees 09' 14", tangent lengths of
239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast
corner of this tract;
THENCE South a distance of 526.15 feet to the Point of Beginning.
METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park
Addition to the City of Lubbock, Lubbock County, Texas, being further described as
follows:
BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue
for the Southeast corner of this tract, also being the original Southeast corner of Tract
"B", which bears West a distance of 1832.75 feet and North 1497.50 feet from the
Souutheast corner of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square
head bolt found at the Southwest corner of this tract;
UNITED SUPERMARKETS, INC. 4
THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of-
way line of Parkway Drive, for the Northwest comer of this tract;
THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9
feet, a central angle of 1 degree 56'41", tangent lengths of 30.55 feet, and a chord
distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature;
THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00
feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of
21.21 feet to a 3/8" iron rod found in the West right -or -way line of Beech Avenue, at a
point of compound curvature;
THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a
curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees
02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/8" iron rod found
at a point of tangency;
THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point
of Beginning.
WHEREAS, the application received by City from Company is an application for
the construction of a new Company facility; and
WHEREAS, Section W of the Guidelines and Criteria Governing Tax Abatement
for Commercial Projects in Designated Enterprise Zones adopted by the City Council by
Resolution No. 4974 does recognize construction of new facilities as being eligible for
commercial tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and Cri-
teria established for Commercial Tax Abatement within the Enterprise Zones of the City
of Lubbock, as adopted by Resolution No. 4974, have been met by Company; and
WHEREAS, Company does intend to construct its new facility; and
WHEREAS, the location of the constructed facility and surrounding real property,
which are to be the subject matter of the Agreement, are attached hereto as Exhibit "A",
and made a part of this Agreement for all purposes; and
UNITED SUPERMARKETS, INC. 5
a
WHEREAS, the City Council finds that entering into this Agreement to abate
taxes on the property described in Exhibit "A" will create new jobs within the City, and
enhance economic development within the designated Enterprise Zone;
NOW THEREFORE, for and in consideration of the premises, and of the mutual
terms, covenants and conditions herein contained, the City and Company do hereby agree
as follows:
SECTION 1. Term. This Agreement shall remain in force and effect for a
period of nine (9) years from the date of its execution, and shall expire and be of no
further force and effect after said date.
SECTION 2. Base Ye . The base year applicable to real property, which is the
subject of the Agreement, shall be 1996, and the assessed value of the real property shall
be the assessed value applicable to such property for said year.
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. PropcM Ineligible for Tax Abatement. The property described
and set forth in Section IV(6) of the Guidelines and Criteria Governing Tax Abatement
for Commercial Projects in Designated Enterprise Zones, and heretofore adopted by the
City Council by Resolution No. 4974, and incorporated by reference herein as if fully set
out in this Agreement is property ineligible for tax abatement.
UNITED SUPERMARKETS, INC. 6
SECTION 6. Exemption from Tax. The City covenants and agrees to exempt
from taxation, in accordance with Section 4 above, the following properties:
(a) All proposed improvments to be placed upon a portion of Tract "A" and
"B", Wilshire Park Addition to the City of Lubbock, Lubbock County,
Texas, further described by Metes and Bounds as follows:
METES AND BOUNDS DESCRIPTION of a portion of Tract "A",
Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas,
being further described as follows:
BEGINNING at a square head bolt found in the North line of a 20 foot
alley, for the southeast comer of this tract, which bears West a distance of
1910.2 feet and North, a distance of 1497.50 feet from the Southeast
comer of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley along being the
south line of Tracts "A" and `B", a distance of 593.90 feet to a point for
the Southwest comer of this tract;
THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for
a corner of this tract;
THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2"
iron rod with cap set in the West line of Tract "B" for a comer of this tract:
THENCE North 26 degrees 11'48" West, along said West line of Tract
"B" a distance of 150.00 feet to a 1/2" iron rod with cap set in the South
right-of-way line of Parkway Drive, for the Northwest comer of this tract,
also being the original Northwest comer of Tract "B";
THENCE North 56 degrees 28' 12" East along the South right-of-way line
of Parkway Drive, also being the North line of Tract "B", a distance of
120.2 feet to a 1/2" iron rod with cap set for a point of curvature;
THENCE Northeasterly, along said South right-of-way, a curve to the
right, said curve having a radius of 1799.9 feet, a central angle of 15
UNITED SUPERMARKETS, INC. 7
degrees 09' l4", tangent lengths of 239.42 feet, and a chord distance of
474.66 feet to a 3/8" iron rod found at the Northeast corner of this tract;
THENCE South a distance of 526.15 feet to the Point of Beginning.
METES AND BOUNDS DESCRIPTION of a portion of Tract "B",
Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas,
being further described as follows:
BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of
Beech Avenue for the Southeast corner of this tract, also being the original
Southeast corner of Tract "B", which bears West a distance of 1832.75 feet
and North 1497.50 feet from the Southeast corner of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley a distance of 77.45
feet to a square head bolt found at the Southwest corner of this tract;
THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the
South right-of-way line of Parkway Drive, for the Northwest corner of this
tract;
THENCE Northeasterly around a curve to the right, said curve having a
radius of 1799.9 feet, a central angle of 1 degree 56'41", tangent lengths of
30.55 feet, and a chord distance of 61.09 feet to a 3/8" iron rod found at a
point of compound curvature;
THENCE Southeasterly around a curve to the right, said curve having a
radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00
feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West
right-of-way line of Beech Avenue, at a point of compound curvature;
THENCE Southeasterly, along said West right-of-way line of Beech
Avenue, around a curve to the right, said curve having a radius of 28.92
feet, a central angle of 15 degrees 02', tangent lengths of 3.56 feet, and a
chord distance of 7.57 feet to a 3/8" iron rod found at a point of tangency;
UNITED SUPERMARKETS, INC. a
THENCE South, along said West right-of-way line, a distance of 526.83
feet to the point of Beginning.
(b) All eligible tangible personal property placed in or upon the property set
forth in Exhibit "A".
(c) It is further understood that a1 items affixed to the improvements placed
upon the real property identified in Exhibit "A" including machinery and
equipment shall be considered part of the real property improvement, and
taxes thereon shall be abated in accordance with the provisions of sub-
paragraph (a) above set forth.
SECTION 7. Economic Qualification. It is hereby found by the City that
Company will expend funds necessary to qualify for tax abatement 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(10)(f) of the Guidelines and
Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise
Zones in the City of Lubbock adopted by the City through Resolution No. 4974.
SECTION 8. Value of Improvements. Company intends to expend
approximately two million two hundred and eighty thousand dollars ($2,280,000) in
building related .structural improvements and one million, seven hundred sixty thousand
dollars ($1,760,000) in equipment to be located within the Enterprise Zone created by
Ordinance No. 9591.
SECTION 9. Creation of New Jobs. Company agrees within twelve (12)
months from the date of execution of this Agreement that it will create seventy (70) new
jobs within the Company facility located within a portion of Tract "A" and `B", Wilshire
Park Addition to the City of Lubbock, Lubbock County, Texas, further described by
Metes and Bounds as follows:
METES AND BOUNDS DESCRIPTION of a portion of Tract "A", Wilshire Park
Addition to the City of Lubbock, Lubbock County, Texas, being further described as
follows:
UNITED SUPERMARKETS, INC. 9
BEGINNING at a square head bolt found in the North line of a 20 foot alley, for the
southeast comer of this tract, which bears West a distance of 1910.2 feet and North, a
distance of 1497.50 feet from the Southeast corner of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley along being the south line of
Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest comer of this
tract;
THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this
tract;
THENCE North 56 degrees 39.12" East a distance of 158.18 feet to a 1/2" iron rod with
cap set in the West line of Tract "B" for a comer of this tract:
THENCE North 26 degrees 11'48" West, along said West line of Tract "B" a distance of
150.00 feet to a 1/2" iron rod with cap set in the South right-of-way line of Parkway
Drive, for the Northwest corner of this tract, also being the original Northwest comer of
Tract "B";
THENCE North 56 degrees 28' 12" East along the South right-of-way line of Parkway
Drive, also being the North line of Tract "B", a distance of 120.2 feet to a 1/2" iron rod
with cap set for a point of curvature;
THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve
having a radius of 1799.9 feet, a central angle of 15 degrees 09' 14", tangent lengths of
239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast
comer of this tract;
THENCE South a distance of 526.15 feet to the Point of Beginning.
METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park
Addition to the City of Lubbock, Lubbock County, Texas, being further described as
follows:
BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue
for the Southeast corner of this tract, also being the original Southeast corner of this tract,
UNITED SUPERMARKETS, INC. 10
also being the original Southeast corner of Tract "B", which bears West a distance of
1832.75 feet and North 1497.50 feet from the Southeast corner of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square
head bolt found at the Southwest corner of this tract;
THENCE North, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of-
way line of Parkway Drive, for the Northwest corner of this tract;
THENCE Northeasterly around a curve to the right, said curve having a radius of 17999
feet, a central angle of 1 degree 56'41", tangent lengths of 30.55 feet, and a chord
distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature;
THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00
feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of
21.21 feet to a 3/8" iron rod found in the West right-of-way line of Beech Avenue, at a
point of compound curvature;
THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a
curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees
02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a 3/$" iron rod found
at a point of tangency;
THENCE South, along said West right-of-way line, a distance of 526.83 feet to the point
of Beginning.
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 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 commercial tax abatement and this Agreement.
SECTION 11. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate one hundred (100) percent of taxes on eligible property.
UNITED SUPERMARKETS, INC. 11
SECTION 12. Commencement Date. This Agreement shall commence upon the
date of its execution, which date is hereinafter set forth, and shall expire nine (9) years
after such date.
SECTION 13. Type of Improvements. The Company proposes to construct a
new grocery store facility as described in Exhibit "A". The Company further states that
the proposed improvements to the property above mentioned shall commence on the 1�9
day of , 1996, 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. Aec Lure. 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.
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.
UNITED SUPERMARKETS, INC. 12
i
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 UNITED SUPERMARKETS, INC..
Manager Kent Moore
P.O. Box 2000 7830 Orlando Avenue
Lubbock, TX 79457 Lubbock, TX 79423
SECTION 20 Effective Date. Notwithstanding anything contained herein to the
contrary, this Agreement shall not be effective until such time as it shall be finally passed
and approved.
EXECUTED this 25 th day of
UNITED SUPERMARKETS, INC.
A Texas Co orat' n
Vice- resident
1•
11,73
Development
dp:C&A Munited.doc
December 21, 1995
UNITED SUPERMARKETS, INC. 13
ATTEST:
Betty N1. Johnson,
City Secretary
PROVED AS TO CONXATT:
&-.(, jezi�4
Joel Be -singer
Interim :.hector of Bus�ess
First Assistant City Attorney
1
EXHIBIT "A"
April 17, 1995 UNITED SUPERMARKETS, INC.
Mr. Dan Wattles, Manager
Enterprise Zone Program
Business Finance Division
Texas Department of Commerce
P O Box 12728
Austin, Texas 78711
Dear Mr. Wattles:
United Supermarkets, Inc. ("United") is a privately owned
corporation incorporated in the State of Texas with headquarters at
7830 Orlando Avenue in Lubbock, Texas. The primary ownership of
this corporation is as follows: Robert Snell - 39k; H.D. Snell Jr.
Trust, 39.8%-; Sara Jane Wood, 9.3k; and Ethel Ann Bumstead, 9.3t.
United has operated retail grocery stores since 1916, and currently
operates thirty-nine stores in cities throughout West Texas,
including Amarillo, Lubbock, Wichita Falls and Abilene. United
Supermarkets, Inc. employs approximately 2,622 full-time employees
and 810 part-time employees.
The store for which we are requesting Enterprise Project
designation (United #501) is a new store that will be located at
Parkway Drive and Zenith Avenue (southeast corner) in Lubbock,
Texas. The new store will replace our existing facility located at
3 101 East 4th Street which currently employs 40 full-time and 13
part-time employees with a current market of East Lubbock and
surrounding farm communities. Our primary supplier for foods for
this facility is Fleming Foods.
Our short and long range goals for the new facility in Lubbock,
Texas, are as follows:
(1) to provide consumers with "one stop shopping" in a
larger, modern, superstore type supermarket which provides
customers with a wide selection of perishable and dry
grocery products under one roof at competitively low
prices,
P.O. ear 6840 0 806ngl- 20 0 Lubbock. Texas 79493-840
(2) to provide quality and service, by offering consumers
only the highest quality products in a clean and
attractive store environment, and by offering consumers
a wide variety of perimeter service departments where a
large selection of fresh products can be found, with
special emphasis on merchandising to the needs of
consumers in the Lubbock area,
(3) to create a family environment for United shoppers through
ongoing -support and involvement in civic, charitable and
community activities.
When completed, the total investment in the new Lubbock facility
will be approximately $4,040,000. The breakdown will be $2,280,000
for building improvements and the remaining $1,760,000 for
machinery and equipment. Equipment and machinery will be purchased
with funds from existing operating cash flow and/or United's short
term operating line with Amarillo National Bank. The land and
building improvements will be financed with traditional long term
financing. We currently own the land on which the building will be
located and have included a copy of the title insurance policy as
Schedule A.
Improvements of the property will begin in September, 1995 and will
be completed in April, 1996. This construction will consist. of
construction of a 40,000 square foot building , site development,
paved parking lot (approximately 3 acres) and lighting. The
projected cost for these improvements will be $2,280,000.
We will begin ordering the needed equipment, machinery, and
fixtures in January, 1996. These items should begin arriving
between January, 1996 and April, 1996. The total to be spent for
equipment, machinery and fixtures will be approximately $1,760,000.
The following is a list of the equipment, machinery and fixtures to
be purchased:
Bakery, deli, market equipment $ 475,000
Refrigeration cases, shelving, display
cases and other equipment 1,060,000
Computers, phones, office equipment
and decor 250,000
$11160, 000
Operations of the new facility will commence in April or May, 1996.
United Supermarkets, Inc. does not require any special permits and
licenses in order to operate.
We currently employ 53 persons in our existing Lubbock facility
with a current annual payroll of $760,800. A list of the current
employees is included as Exhibit.B.
It is estimated that within five years there will be an additional
70 employees at the replacement store. The list of the new jobs to
be created with total annual salary is included as Exhibit C.
The annual payroll at the new store should be approximately
$1,606,400. Initial hiring for the new jobs as a result of this
proposed replacement store will begin in April 1996. United
Supermarkets, Inc. commits to participate in local efforts to
achieve development and revitalization of the Lubbock, Texas
Enterprise Zone. United Supermarkets, Inc. will hire under -
skilled, inexperienced, disadvantaged, displaced workers,
minorities, or residents of the enterprise zone. United
Supermarkets, Inc. understands that to be a "qualified business"
eligible for enterprise project designation, twenty-five percent
(25%) of its new or additional employees must be residents of an
enterprise zone within the city's jurisdiction or economically
disadvantaged persons. United Supermarkets, Inc. hereby commits
that twenty-five percent (25%) of its new employees will be
residents or an enterprise zone or economically disadvantaged
persons.
United Supermarkets, Inc. further understands that it must retain
a level of employment for three years from the date of refund of
state sales taxes, or United Supermarkets, Inc. may become liable
for recapture of refunded taxes of the Comptroller. Rest assured
United Supermarkets, Inc. understands the importance of a stable
work force and will diligently follow a path that keeps layoffs to
a. minimum. Along with our job creation commitment, United
Supermarkets, Inc. also commits to hire minority workers and to
contract with minority -owned and small businesses.
United Supermarkets, Inc. is committed to participating heavily in
community affairs. Our employees participated in the United Way
through payroll deductions, as well as an annual corporate donation
by the home office. In recent years, we have supported financially
the Little Leagues, Ronald McDonald House, Fine Arts of Lubbock,
Medical Health Research and many other needs.
I
The company is also willing to participate individually, in groups,
or with other organizations which contribute time and manpower for
the good of the community. United Supermarkets, Inc. is willing to
negotiate and cooperate in the achievement of the purposes of the
Texas Enterprise Zone Act.
I also certify that the company's proposed Lubbock facility is
located within the Lubbock Enterprise Zone and that separate books
and reports of the business activity conducted in the zone or any
other information as required by local and state government units
will be made available for inspection and review as needed.
United Supermarkets, Inc. appreciates the nomination and values the
implications of the designation as an enterprise project in the
city of Lubbock, Texas Enterprise Zone. We look forward to working
with the city of Lubbock and the State of Texas in furthering the
purposes of the Texas Enterprise Zone Program.
Sincerely,
United Supermarkets, Inc.
L. Kent Moore
Vice President and
Chief Financial Officer
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UNITED SUPERMARKET #501 . I AA ARCHITECTS INT
IARAMAT MK A" ZEWTM STREET .^.
WBOOCR. ftRART
r i• - ��� ROBES AND TNOMA. WC.
co•t.►4 v.A.Aft ..o.mu
- SCHEDULE A ,
GF NO. 10017180
Owner Policy No.: 0-5841: 16771 Date of Policy: June 27, 1994
FIFTY-SIX THOUSAND EIGHT HUNDRED & 00/100 - ($
Amou'W �ib�a � 5 DOLLARS
1. Name of Insured: UNITED SUPERMARKETS, INC.
2. The estate or interest in the land that is covered by this policy is:
FEE SIMPLE
3. Title to the estate or interest In the land is insured as vested in:
UNITED SUPERMARKETS, INC.
4. The land referred to in this policy is described as follows:
METES AND BOUNDS DESCRIPTION of a portion of Tract "A" and "B",
Wilshire Park Addition to the City of Lubbock, Lubbock County,
Texas, being further described as follows:
BEGINNING at a square head bolt found in the North line of a 20
foot alley, for the Southeast corner of this tract, which bears
West a distance of 1910.2 feet and North, a distance of 1497.50
feat from the Southeast corner of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley also being
the South line of Tracts "A" and "B", a distance of 593.90 feet
to a point for the Southwest corner of this tract;
THENCE North a distance of 32.00 feet to a 1/2" iron rod with
cap set for a corner of this tract;
THENCE North 56 degrees 39'12" East a distance of 15e.18 feet to
a 1/2" iron rod with cap set in the West line of Tract "B" for
a corner of this tract;
THENCE North 26 degrees 11'46" West, along said west line of
Tract "B" a distance of 150.00 feet to a 1/2" iron rod with can*
set in the South right-of-way line of Parkway Drive, for the •
Northwest corner of this tract, also being the original
Northwest corner of Tract "B";
THENCE North 56 degrees 28'12" East along the South right-of-way
line of Parkway Drive, also being the North line of Tract "B",
a distance of 120.2 feet to a 1/2" iron rod with cap set for a
point of curvature;
Continued on next page
STE WART TITLE
GUARANTY COMPANY
W2 tAev. VV931
GF No. 1001718U
0-5841-16771
Attached to and made a part of Stewart Title Guaranty Company Policy No.
Continuation of Schedule A
SCHECULE A, NO. 4 CONTINUED:
THENCE Northeasterly, along said South right-of-way, a curve to
the right, said curve having a radius of 1799.9 feet, a central
angle of 15 degrees 09'14", tangent lengths of 239.42 feet, and
a chord distance of 474.66 feet to a 3/8" iron rod found at the
Northeast corner of this tract;
THENCE South a distance of 526.15 feet to the Point of
Beginning. -.
METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire
Park Addition to the City of Lubbock, Lubbock County, Texas,
being further described as follows:
BEGINNING at 1/2" iron rod with cap set in the West right-of-way
line of Beech Avenue for the Southeast corner of this tract,
also being the original Southeast corner of Tract "B", which
bears West a distance of 1832.75 feet and North 1497.50 feet
from the Southeast corner of Section 2, Block A;
THENCE West, along the North line of a 20 foot alley a distance
of 77.45 feet to a square head bolt found at the Southwest
corner of this tract;
THENCE North, a distance of 526.15 feet to a 3/8" iron rod found
in the South right-of-way line of Parkway Drive, for the
Northwest corner of this tract;
THENCE Northeasterly around a curve to the right, said curve
having a radius of 1799.9 feet, a central angle of 1 degree
56'41", tangent lengths of 30.55 feet, and a chord distance of
61.09 feet to a 3/8" iron rod found at a point of compound
curvature;
THENCE Southeasterly around a curve to the right, said curve
having a radius of 15.00 feet, a central angle of 90 degrees,
tangent lengths of 15.00 feet, and a chord distance of 21.21
feet to a 3/8" iron rod found in the West right-of-way line of
Beech Avenue, at a point of compound curvature;
THENCE Southeasterly, along said West right-of-way line of Beech
Avenue, around a curve to the right, said curve having a radius
of 28.92 feet, a central angle of 15 degrees 02', tangent
lengths of 3.56 feet, and a chord distance of 7.57 feet to a
Continued on next page
Page
STEW,kRT TITL'
__3A CUARANTT 4'40Krwri
GF No.- 1001718u _
_Attached to and made a part of Stewart Title Guaranty Company Policy No. _
0-5841-16771
Continuation of Schedule A
3/8" iron rod found at a point of tangency;
THENCE South, along said West right-of-way line, a distance of
526.83 feet to the Point of Beginning.
Page
STEWART TITLI
cvARAKT• ri.wr+xv
T-i Owner Policy Schedules xm prescribed by Texas Depar,ni2nt of ' irance - Revised
GF No. 10017180 OWNER POLICY
SCHEDULE B
EXCEPTIONS FROM COVERAGE
Policy No.: 0-5841- 16771
This policy does not insure against loss or damage (and the Company will not pay costs, attorney's
fees or expenses) that arise by reason of the terms and conditions of the leases and easements, if any,
shown in Schedule A, and the following matters:
1. The Ea�tt���t3�i�nX�Xi.��oi,��t�i����ii'j%{?W��tX�itK�rxiCs'�SXXX
spe��Y>' �Ww-
6
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or
protrusions, or any overlapping of improvements.
3. Homestead or community property or survivorship rights, If any, of any spouse of any insured.
4. Any titles or rights asserted by anyone, including but not limited to, persons, the public,
corporations, governments or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and
streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any
government, or
C. to filled -in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation, or the right
of access to that area or easement along and across that area.
5. Standby fees, taxes and assessments by any taxing authority forthe year 19 9tnd subsequent
years, and subsequent taxes and assessments by any taxing authority for prior years due to
change in land usage or ownership.
6. The following maners and all terms of the documents creating or offering evidence of the matters
( The Company must insert matters or delete this exception.):
7. Rights of parties in possession.
S. One-half of all the oil, gas and other minerals, the rovalt-ies,
bonuses, rentals and all other rights in connection with same
are excepted herefrom as the same are set forth in instrument
recorded in Volume 453, Page 321, of the Deed Records of Lubbock
County, Texas. Title to said interest not checked subsequent
to its date of execution.
9. One-half of all the oil, gas and other minerals, the royalties,
bonuses, rentals and all other rights in connection with same
are excepted herefrom as the same are set forth in instrument
recorded in Volume 251, Page 575, of the Deed Records of Lubbock
County, Texas. Title to said interest not checked subsequent
to its date of execution.
10. Subject to the two year right and three year right of redemption
Counters( ed: �
Continued on next page
By STEWART TITLE
Authorized Countersignature GUARANTT comrAN'Y
52113 (Rev 1.1d83)
GF No. 1001,.L80
Attached to and made a part of Stewart Title Guaranty Company Policy No. 0-5841-16771
Continuation of Schedule B
SCHEDULE B CONTINUED:
under Texas law pertaining to tax sales, which shall expire
August 21, 1995. (Pertains to all the property except the East
77.45' of Tract B)
Page
,A STEWkRT TITLE
GUARANTY V4094P&MV
I,
EMPLOYEES CURRENTLY EMPLOYED BY UNITED
SUPERMARKETS STORE #501
TitlelPosition
Number of Jobs
Full-Time/Part.
Time/Seasonal
Annual Salary
Management
6
Full -Time
$33,800
Checkers
8
Full -Time
$13,000
Checkers
3
Part -Time
$3,750
Meat Market
6
Full -Time
$19,500
Stockers
6
Full -Time
$15,500
Stockers
1
Part -Time
$2,500
Departmental CIerks
3
Full -Time
$8,500
Sackers
8
Full -Time
$7,500
Sackers
4
Part -Time
$3,500
Pharmacist
1
Full -Time
$52,000
Pharmacy Staff
2
Full -Time
$15,000
Security
5
Part -Time
$10,500
TOTAL
S3
$764,SS0
EXHIBIT "B"
PROPOSED JOBS TO BE CREATED AT UNITED
SUPERMARKETS, INC. STORE #501
Job Title/Position
Number of Jobs
Full-Time/Part-
Time/Seasonal
Annual Salary
Management
8
Full -Time
$19,200
Checkers
7
Full -Time
$10,500
Checkers
4
Part -Time
$3,750
Meat Market
3
Full -Time
$17,000
Stockers
6
Full -Time
$15,000
Depprtmental
Clerks
21
Full -Time
$12,500
Departmental
Clerks
4
Part -Time
$4,000
Bakers
1
Full -Time
$15,000
Sackers
8
Full -Time
$7,500
Sackers
4
Part -Time
$3,000
Pharmacist
1
Full -Time
$52,000
Pharmacy Staff
3
Full -Time
$15,000
TOTAL
70
$845,600
I W44-1 1 6.1M1K4
- - Property Data Selection Menu - -
Prop ID: R137635 (Real Property) Owner: UNITED SUPERMARKETS INC
XRef ID: R944000-00000-09915-000 (13769) 7380 ORLANDO AVE
Legal : WILSHIRE PARK E77.451OF TR B LUBBOCK, TX 79423
Situs ;
LUBBOCK
Entities : GLB, SLB, CLB, HSP, MP
CAD (Yes)
Exemption& : EXG
Agent Info
ARB Does
Chief Appr
Entity Does:
Owner Phone:
Prop Links :
Nbad. Code :
Mort Lender:
Freeze Year:
Total Land HS/NHS :
10,400
Total Prod. Mkt.
0
Total Imp. HS/NHS :
0
Total Mkt. Value
10,400
Alt. (D) isp. (P) rimary (S) econdary
Men. Appr. (0)wnership (3) Agents
Enter Option from Above, or "RETURN" to Exit:
(L)andllmpr.
( . ) More
11/17/95 08:14 TX/RX HO.1178 P.003 0
Y
- - Property Data Selection Menu - -
'rop ID: R137622 (Real Property) Owner: UNITED SUPERMARKETS INC
:Ref ID: R944000-00000-09810-000 (13789) 7380 ORLA11DO AVE
.egal : WILSHIRE PARK W PT OF TR B & SE PT OF A LUBBOCK, TX 79423
: 2608 PARKWAY DR
LUBBOCK
;ntities : GLB, SLB, CLB, HSP, WHP
'AD (Yes)
:xemptions : EXG
--gent Info
%RB Docs •
thief Appr
:ntity Docs:
Owner
Phone:
Prop Links :
Nbad.
Code :
Mort Lender:
Freeze Year:
Total
Land HS/NHS :
Total
Prod. Mkt. :
Total
Imp. HS/NHS :
Total
Mkt. Value :
Alt. (D)isp. (P)rimary (S)econdary
Men. Appr. (0)wnership (3) Agents
Lnter Option from Above, or *RETURN" to Exit: _
(L)and/Impr.
( . ) More
4 6, 37 3
46, 377
11/17/95 08:14 TX/R.X NO.1178 P.002
EXHIBIT '6'
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 M Igar 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.
2. In the event that the applicant or owner has entered into a
tax abatement agreement to make improvements to a facility
of any type described in Section I 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 160)
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 ■a■
PAGE 2
5. In the event that the applicant or owner, who has executed a
tax abatement agreement with any Affected Jurisdiction,
relocates the business, for which tax abatement has been
granted, to a location outside of the designated 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.
B. 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 cf V.T.C.A., Tax Code, Section 33.01 will apply.
Guidelines and Criteria Go►erning Tax Abatement for
Coamrciat Projects in Designated Enterprisa tones
Exhibit "B"
PAGE 3