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HomeMy WebLinkAboutResolution - 5731 - Tax Abatement Agreement - Treadco Inc - 4121 East Slaton Highway - 12_18_1997RESOLUTION NO. 5731 Item #26 December 18, 1997 RESOLUTION WHEREAS, the City Council has determined to give notice of its intent to enter into a Tax Abatement Agreement with Treadco, 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 Treadco, 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 4121 East Slaton Highway in the City of Lubbock, Lubbock County, Texas, and further described as Lot One (1), corrected plat of Green Addition, an Addition to the City of Lubbock, Lubbock County, Texas. Passed by the City Council this 18th day of December , 1997 . LAI +; 0 - a , YZL Lt-t'� - kat Darnell, City Secretary Kevin G. Walker, Business Liaison Officer APPROVED AS TO FORM: 01 y , slstant City Attorney AS:gs/ccdocs/rreadco.res December 9, 1997 Exhibit "A" NOTICE OF INTENT OF THE CITY COUNCIL OF THE CITY OF LUBBOCK TO ENTER INTO AN AGREEMENT TO ABATE TAXES ON REAL PROPERTY IMPROVEMENTS AND TANGIBLE PROPERTY LOCATED AT 4121 EAST SLATON HIGHWAY IN THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS, AND FURTHER DESCRIBED AS 'LOT ONE (1) CORRECTED PLAT OF GREEN ADDITION, AN ADDITION TO THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS. Notice is hereby given that the City Council of the City of Lubbock intends to enter into an Agreement with Treadco, 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 Treadco, Inc. for tax abatement, a copy of said Agreement is attached to this Notice as Exhibit "B" and made a part hereof for all purposes. Notice is further given that the City Council will consider this matter at its meeting held in the City Council Chamber, City Hall, 1625 13th Street, City of Lubbock, on the day of , 19 , at o'clock M. AW:gs/ccdocs/GreenAd.doc December 9, 1997 EXHIBIT "B" 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 Treadco, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the I lth day of November, 1997, an application for tax abatement for an expansion that will include the construction of a new facility to be located at 4121 East Slaton Highway, which is further described as Lot One (1), Corrected plat of Green Addition, an Addition to the City of Lubbock, Lubbock County, Texas. 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 Governing Tax Abatement For Selected Taxing Units Within Lubbock County was heretofore adopted by Resolution No. 5681 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 312.201; 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 Selected Taxing Units Contained Within Lubbock County, said guidelines having been adopted by Resolution No. 5681 of the City on October 9, 1997, and WHEREAS, the City did pass Ordinance No. 9591 creating an enterprise zone for commercial and industrial tax abatement, said zone including Lot One (1), Corrected plat of Green Addition, an Addition to the City of Lubbock, Lubbock County, Texas,. WHEREAS, V.T.A.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 an AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK AND TREADCO, INC. PAGE-1 expansion that includes the construction of a new facility ; and WHEREAS, V.T.A.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 selected taxing units contained within Lubbock County adopted by the City Council by Resolution No. 5681 does recognize construction of a new facility as being eligible for tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guidelines and Criteria Governing Tax Abatement, as adopted by Resolution No. 5681, have been met by Company; 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 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 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.T.A.C., Tax Code, Section 312.204 real property taxes applicable to the real property subject to this Agreement shall be abated only to the extent said value for any given year within the term of this Agreement exceeds the base year taxes hereinabove set forth. SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section IV(8) of the Guidelines and Criteria Governing Tax Abatement for selected taxing units contained within Lubbock County and heretofore adopted by the City Council by Resolution No. 5681 is incorporated by reference herein as if fully set out in this Agreement and fully describes the property ineligible for tax abatement. AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK AND TREADCO, INC. PAGE-2 SECTION 6. Exemption from Tax. The City covenants and agrees to exempt from taxation, in accordance with Section 4 above, the following properties: (a) All proposed new improvements to be placed upon Lot One (1), Corrected plat of Green Addition, an Addition to the City of Lubbock, Lubbock County, Texas which said described property shall be hereinafter called the "Real Property." (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "A", which does not include any equipment and personal property owned by Company that will be moved from the existing facility to the new facility. (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 improvement and taxes thereon shall be abated in accordance with the provisions of subparagraph (a) above set forth. SECTION 7. Qualification for Agreement. The tax abatement that is the subject of this Agreement shall be granted only to the extent: (a) That the improvements to the Real Property increase the value of the Real Property for the year in which this Agreement is executed; and (b) That the Tangible Personal Property improvements to the Real Property were not located on the Real Property prior to the execution of this Agreement. 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 constructing a new facility, all as set forth in Section IV(3)(d) of the Guidelines and Criteria for Tax Abatement adopted by the City through Resolution No. 5681. SECTION 9. Value of Improvements. Company intends to expend approximately one million two hundred thousand ($1,200,000) dollars in constructing a new facility and two hundred fifty eight thousand seven hundred twenty seven ($258,727) dollars in machinery and equipment, to be located within the enterprise zone created by Ordinance No. 9591. SECTION 10. Job Creation. Company agrees to create and retain five (5) new permanent full-time jobs within the Company plant located at 4121 East Slaton Highway, which is further described as Lot One (1), Corrected plat of Green Addition, an Addition to the City of Lubbock, Lubbock County, Texas. SECTION 11. City Access to Property. Company covenants and agrees that City shall have AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK AND TREADCO, INC. PAGE-3 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 12. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate 50 percent of taxes on eligible property. SECTION 13. 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 14. Type of Improvements. The Company proposes an expansion that includes the construction of a new 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 December, 1997, and shall be completed within approximately 210 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 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, 5681 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 owner 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: AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK AND TREADCO, INC. PAGE-4 CITY OF LUBBOCK City Manager P.O. Box 2000 Lubbock, Texas 79457 Treadco,Inc. John R. Meyers 1101 S. 21"' Fort Smith, AR 72901 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. EXECUTED this CITY OF LUBBOCK: WINDY SITTON, MAYOR ATTEST: Kaythie D#rnell, City Secretary Kevin Wall er, Business Li ison Officer day of , 199_ APPROVED AS O FORM: V. Am im , Assistant ty Attorney TREADCO, INC. John R. Meyers, PRESIDENT ATTEST: Secretary AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK AND TREADCO, INC. PAGE-5 EMBIT "A" THE STATE OF TEXAS BILL OF SALE COUNTY OF LUBBOCK KNOW ALL MEN BY THESE PRESENTS, That William L. Green d/b/a Green Equipment Company, of the County of Lubbock, State of Texas, for and in consideration of the sum of Ten and no/100 dollars—$10.00--- and other good and valuable consideration, to me in hand paid by Treadco, Inc., a Delaware corporation, the receipt and sufficiency of which is hereby acknowledged and confessed, have BARGAINED, SOLD and DELIVERED, and by these presents do BARGAIN, SELL and DELIVER, unto the said Treadco, Inc., the following described personal property located in Lubbock County, Texas, to wit: The telephone system located in building(s) situated upon the following real property: Lot One (1), Corrected plat of Green Addition, an Addition to the City of Lubbock, Lubbock County, Texas, according to the map, plat, and/or dedication deed thereof recorded In Volume 4836, Page 298 and re -recorded in Volume 5055, Page 28, both of the Real Property Records of Lubbock County, Texas■ WITNESS my hand at Lubbock, Texas, this 31st day of May, 1996. William L Green Acknowledgement STATE OF TEXAS COUNTY OF LUBBOCK This instrument was acknowledged before me on the day of May, 1996, by William L Green. ■ r!+ ' v)Fi1C1AL SGL Notary blicSWe of Texas IRrICY FLOYD r t: fAFn vuauC-TEXAS • '; l � LUBBOCK CODUTY • Comm Ero Aug, 24, 1998 a Return: Treadco, Inc., 1101 S. 21st Street, Fort Smith, AR 72901 WnCAA J-7312 � VOL 5188PacE245 � THE STATE OF TEXAS, KNOW M.La MM BY T ME MESMM- COUNTY OF Lubbock 'd 19 VNI" M. THAT MWHam 4 Green, a single man, dba Green Equipment Company, -U art of the State of Texas, Grantor herein, for and in consideration of the sum of t TEN AND NO/100THS ($10.00) DOLLARS and other good and valuable consAb j_ paid by �jl4Dr `�'' Treadco, Inc., a Delaware corporation �LoT 1101 S. 21st Street, Fort Smith, Arkansas 92901 4 receipt of which is hereby acknowledged and confessed, have Granted, Sold and Conveyed, and by these presents do Grant, Sell and Convey unto the said Treadco, Inc., a Delaware corporation, Grantee herein, all that certain lot, tract or -parcel of land situated in Lubbock County, Texas, being described as follows: Lot One (1), Corrected plat of Green Addition, an Addition to the City of Lubbock, Lubbock County, Texas, aaording to the map, plat, and/or dedication deed thereof recorded to Volume 48M, Page 298 and re -recorded In Volume SM, Page 29, both of the Real Property Records of Lubbock County, Texas. This conveyance is made and accepted subject to all restrictive covenants, mineral reservations, royalty interests„ oil and gas leases, rights -of -way, apd easements, if any, affecting the above described property and placed of record in the office of the County Clerk of Lubbock County, Texas TO HAVE AND TO HOLD the above dmcnbed premises, together with all and singular the rights and appurtenances thereto in anywise belongin& unto the said Grantee, and unto the heirs and assigns, or successors and assigns, of said Grantee, forever, and said Grantor does hereby bind himselij and the heirs, executors and administrators, or the successors and representatives, of said Grantor, to Warrant and Forever Defend, all and singular, the said premises auto said Grantee, and unto the heirs and assigns, or successors and assigns, of said Grantee, against every person whosoever lawfully claiming or to claim the same, or any part thercoi Witness my hand at Lubbock, Texas this 31st day of May,1996. William L Green (Acknowledgement) STATE OF TEXAS COUNTY OF IMBOCK) t l� This instrument was acknowledged before me an the i #ay of May,1996, by Wi11Iam 4 Gran. • OFFICIAL SEAL NARY p FLOYD ►'pSAAK UgUC•TE Y • NW" Public, : weearc COUNTY • : My C'rm Fla- Aug, 24. 19" 6 SEAL ABC • 5E ID:5017856016 IHA J1HtCmNOV 10,97 13:57 No.012 P.05 FAYAELE UPdI lEarl 514ta FNT W. • 5Z57 KAKE CHECKS PAYABLE T0: XREF ID LUBBOCK CCNTRAL APPRAISAL DIST PROPERTY !R139836 GREEN L 1 P.O. BOX 10568 - 1715 26TH ST. LUBBOCK, TEXAS 79408-3S68 (805) 762-5000 EXT. 503 TO RECEIVE A RECEIPT OUCK NOx d 108778 TREADCO INC PO BOX 10046 FORT SMITH, AR 72017-0048 RETAIN MIS PORTION FOR YOUR RECORDS 1297 TAX STATEMENT VALUATION BREAKODWH u�oasuoaa�fe�i PLEASE mtyumx INJU OUKIJOn NYTRI PAYMENT STATOW NO. 257 0 36,919 0 0 A 0 141,600 178,519 .:: 'IiSE=$®• .... rlaW �•� �•� .. . .... •: "•: •.. 1=1 .':>fAik`.:.c.' Tax ';MID4AfY"�_. HLUI8-P8 LCANITNSY WHOATSEPRI 16r9 l61 igon- 0011 7fisil 1179e,6l1HnO 0 ,01100082400 Is TAL i1 ** TAXES REDUCED BY ADDITIONAL SALES TAX (COUNTY: $246.05, CITY: 160.53) PROPhRl Y :R139835 GREEN L 1 108776 TRCADCO INC PO BOX 10048 FORT SMJTH, AR 7291/-UU48 DAMCUT crurmit c . �, "m5' i �1 f f if ! �mii 1,73 a� 1 � �1� ■MEN �rsteNo'�'.' •:• :: ..... . srr.NR::rQ-:�li1T UNfmuli-�rovi:...� IF YOU NAVF QUESTIONS PLEASE CALL (306) 762-600D. TAXES BECOME DELINQUENT ON FEBRUARY 1. AFTER JUNE AN ADDITIONAI PfNAITY OF 169 MAT BE IMPOSED ON THE AMOUNT OF TAXES. PENALTY AND INTEREST DIE. AFTER JULY AN ADDITIONAL I: PFYAITV AND INTEREST WILL BE APPLIED. i 1 ( 11•S UREA 10 N t[TT WdS11111SED I I I it 1 Id , •�d 14 1 1 I , tNitst r _ SSE � to onm Qom so.t: — -� TCR 1 1 i I 1 I I I I I !t sl N If`�01 / r• +jfi • Ntt173t I .520 ` N t.to .I. ( i , I Utl11Y yXE 10 K 11ELOUTED ♦ SLOt1 52.E I SL 1 • Sip + ty ` f �Aji10 .. 1 . / CD1K. 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