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HomeMy WebLinkAboutResolution - 4426 - Tax Abatement Agreement - Town & Country Food Stores Inc - South Enterprise Zone - 03_24_1994Resolution No. 4426 March 24, 1994 Item #5 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Tax Abatement Agreement by and between the City of Lubbock and Town & Country Food Stores, Inc., for certain property within the South Enterprise Zone to receive commercial -industrial tax abatement, which Agreement is attached hereto and made a part hereof for all purposes. Passed by the City Council this ATTEST: Betty A Johnso , City Secretary Director of Business Relations/ Development APPROVED AS TO FORM: , 4 t 12, JAn C. Ross, Jr., City Attorney JCR jO WN&cCOUN.RES ccdocs/March 15, 1994 Resolution No. 4426 March 24, 1994 Item #5 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 24th day of March , 1994, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Town & Country Food Stores, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 14th day of January, 1994 an application for tax abatement for construction of Company's facilities located within Lot 2 Cogburn Addition (subdivision of a tract in the S. E. 1/4 Section 7, Block B) to the City of Lubbock; and WHEREAS, upon review of the above application, it was determined that facilities would be located in the South Enterprise Zone designated by City in its Ordinance No. 9591; and WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commer- cial Projects in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by Resolution No. 4287 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 V.A.C.S., Section 10, Article 5190.7, having adopted Ordinance No. 9591 of the City on February 18, 1993, which ordinance includes Lot 2 Cogburn Addition (subdivision of a tract in the S. E. 1/4 Section 7, Block B) to the City of Lubbock; and WHEREAS, the application received by City from Company is an application for the construction of a new Company facility; and WHEREAS, Section 10 of V.A.C.S., Article 5190.7 specifically states that such a purpose is to be included in the guidelines for commercial tax abatement to be eligible for such treatment; and WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones adopted by the City Council by Resolution No. 9591 does recognize construction of new facilities as being eligible for commercial tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guidelines and Cri- teria established for Commercial Tax Abatement within the Enterprise Zones of the City of Lubbock, as adopted by Resolution No. 4287, have been met by Company; and WHEREAS, Company does intend to construct its new facility; and WHEREAS, the location of the constructed facility and surrounding real property, which are to be the subject matter of this Agreement, are attached hereto as Exhibit "A", and made a part of this Agreement for all purposes; and WHEREAS, the City Council finds that entering into this Agreement to abate taxes on the property described in Exhibit "A" will create new jobs within the City, and enhance economic development with the 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: PAGE 2 SECTION 1. Term. This Agreement shall remain in force and effect for a period of five (5) years from the date of its execution, and shall expire and be of no further force and effect after said date. SECTION 2. Base Year. The base year applicable to real property, which is the subject of the Agreement, shall be 1994, 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, Property Ineligible for Tax Abatement. The property described and set forth in Section IV(5) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones, and heretofore adopted by the City Council by Resolution No. 4287 is incorporated by reference herein as if fully set out in this Agreement and fully describes the property ineligible for tax abatement. SECTION 6. Exemption from Tax. The City covenants and agrees to exempt from taxation the following properties: (a) All proposed improvements to be placed upon Lot 2 Cogburn Addition (subdivision of a tract in the S. E. 1/4 Section 7, Block B) to the City of Lubbock, which proposed improvements are set forth in a plat of the above tract of land, attached hereto as Exhibit "A", and made a part hereof. (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "A". PAGE 3 (c) It is further understood that all items affixed to the improvements placed upon the real property identified in Exhibit "A" including machinery and equipment shall be 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 Com- pany will expend funds necessary to qualify for tax abatement by constructing a new facil- ity, and further that the Company will create new jobs in excess of the number required for tax abatement, all as set forth in Section IV(9)(2) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock adopted by the City through Resolution No. 4287. SECTION 8. Value of Improvements. Company intends to expend approxi- mately eight hundred and fifty thousand dollars in building related structural improvements to be located within the Enterprise Zone created by Ordinance No. 9591. SECTION 9. Creation of New Jobs. Company agrees within twelve (12) months from the date of execution of this Agreement that it will create twelve (12) to fifteen (15) new jobs within the Company facility located within Lot 2 Cogburn Addition (subdivision of a tract in the S. E. 1/4 Section 7, Block B) to the City of Lubbock, and use its best efforts to maintain a minimum of twleve (12) new jobs during the term of this Agreement. SECTION 10. City Access to Property. Company covenants and agrees that City shall have access to the property, which is the subject matter of this Agreement, during normal business hours, and that municipal employees shall be able to inspect the property to insure that the improvements are being made in accordance with the terms and condi- tions 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. PAGE 4 SECTION 12. Commencement Date. This Agreement shall commence upon the date of its execution, which date is hereinafter set forth, and shall expire five (5) years after such date. SECTION 13. Type of Improvements. The Company proposes to construct a new convenience 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 st day of February, 1994, 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 prop- erty set forth in Exhibit "A" to commercial uses as those terms are defined in the zoning ordinances of the City of Lubbock, and to limit the uses of the property to uses consistent with the general purpose of encouraging development of the designated Enterprise Zone during the term of this Agreement. SECTION 16. Recapture. The Company agrees to be bound by and comply with all the terms and provisions for recapture of abated taxes in the event of default by Com- pany as set forth in Exhibit "B", attached hereto and made a part hereof for all purposes. SECTION 17. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK TOWN & COUNTRY FOOD STORES, INC. City Manager Carlton Tanner, Director of Operations P.O. Box 2000 3908 Avenue A Lubbock, TX 79457 Lubbock, TX 79404 PAGE 5 SECTION 18. Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as it shall be finally passed and approved. EXECUTED this 9th day of February , 1994 . TOWN & COUNTRY FOOD A Texas Corporation // ' i%ae esidenr Senior Vice -President ATTEST: RE/sdh/ta-t&ctry.doc January 31, 1994 PAGE 6 ATTEST: &g'- AD"�' Betty M. Johns n, City Secretary CONTENT: ment APPROVED AS TO FORM: 'Q'Q i%L "�;" ald G. Vandiver, First Assistant City Attorney