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HomeMy WebLinkAboutResolution - 4585 - Agreement - Creative Educational Video Inc - Commerical Tax Abatement - 08_25_1994Resolution No. 4585 PREPARED BY THE LEGAL DEPARTMENT Item #14 FOR THE AUGUST 25, 1994 CITY COUNCIL MEETING August 25, 1994 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 an Agreement and all related documents by and between the City of Lubbock and Creative Educational Video, Inc., for commercial tax abatement, which agreement is attached hereto, which 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 Councl ATTEST: --- �) C�o Betty ohnson, Wity Secretary APPROVED AS TO FORM: D nald G. Van fiver, first Assistant City Attorney DGV: dpXG:\codocs\CE V1.Res August 1, 1994 Resolution No. 4585 Item # 14 August 25, 1994 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 25th day of August 1994, by and between the City of Lubbock, Texas, a home rule municipal- ity of the State of Texas (hereinafter called "City") and Creative Edu- cational Video, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 1st day of July, 1994, an application for tax abatement for renovation of an existing facility located within Lot One (1), CMR Industrial Park, an addition to the City of Lubbock, Lubbock County, Texas; 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 Commercial Projects in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by Resolution No. 4287 of the City Coun- cil 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 guide- lines for creation of an enterprise zone as set forth in V.A.C.S., Sec- tion 10, Article 5190.7, having adopted Ordinance No. 9591 of the City on February 18, 1993, which ordinance includes Lot One (1), CMR Indus- trial Park, an addition to the City of Lubbock, Lubbock County, Texas; and WHEREAS, the application received by City from Company is an application for the renovation of an existing 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 com- mercial 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 renovation of an existing facility as being eligible for commercial tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guide- lines and Criteria 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 renovate an existing 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 renovations to the existing facility 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: 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. PAGE 2 SECTION 2. Base Year. The base year applicable to real prop- erty, which is the subject of the Agreement, shall be 1994, and the assessed value of the real property shall be the assessed value applica- ble 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 accor- dance 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 Agree- ment 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 the existing facility on Lot One (1), CMR Industrial Park, an addition to the City of Lubbock, Lubbock County, Texas, 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". (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 con - PAGE 3 sidered 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 necessary to qualify for tax abate- ment by renovating an existing 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(9)(2) of the Guidelines and Criteria Gov- erning 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 approximately one hundred seventy-nine 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 five (5) to ten (10) new jobs within the Company facility located within Lot One (1), CMR Industrial Park, an addition to the City of Lubbock, Lubbock County, Texas; and use its best efforts to maintain a minimum of five (5) 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 munici- pal 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 Agree- ment. SECTION 11. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate one hundred (100) percent of taxes on eligi- ble 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 reno- vate an existing building into an educational materials production com- pany as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the 2nd day of July, 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 improve- ments, 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. 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 Exhibit "B", attached hereto and made a part hereof for all purposes. SECTION 17. Notices. Notices required to be given by this Agree- ment shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK Gordon W. Davis City Manager Creative Educational Video, Inc. P.O. Box 2000 P.O. Box 65265 Lubbock, TX 79457 Lubbock, TX 79464-5265 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 25th day of August , 1994. CREATIVE EDUCATIONAL VIDEO, INC. v _ Pre ident ATTEST: Secretary RE/sdh/a:eduvideo.doc July 26,1994 PAGE 6 ATTEST: Betty Joh son, City Secretary jRo PPROVWDirector NT: Business Development APPROVED AS TO FORM: a 1 d G. ndiver, First Assistant City Attorney Existing Facility EXHIBIT "A" OFFICE / WAREHOUSE FACILITY FOR SALE OR LEASE 1020 Southeast Loop 289 Kew Lod v WOW Lubbock, Texas LOCATION On the south service road of Loop 289 approximately one mile east of Interstate 27 in southeast Lubbock. BUILDING SRE 12.000 sq. ft. Total 7,500 sq. ft. Warehouse (clear span) 4,500 sq. ft. Offices CEILING HEIGHT 16 ft. in warehouse (14' under beams); 8 ft. & 9 ft. office ceilings. OVERHEAD DOORS Two 12' x 14' overhead doors SPECIAL FEATURES Three ton overhead crane; heavy electrical; air compressor; alarm system. OFFICE FACILITIES High quality —including reception area, 8 offices, break room. fie room computer/copy room, 5 restrooms (2 are private), & mechanical room. TM aawrtwrt and ywo praaarrad n.r.' v*ft na puararaaK an waaad bw wurar in er«• neon m a aw urpad to parbrm a*A dfparroa useu t to dway and avwra arry @rwk=nanW rbkL Bi0lallf MIir�10 ai alw� era pRtparfy ara d maka arrarpMrw�ls MII dra WYip bro' 1 11 prOCOGAq. t FUCK C ANUP, WALTOM 111111 COI MUM I1MSaN (806) 70M I yni�a,i„£, rua.i114y EXHIBIT "A'• ZONING CONSTRUCTION HEATING/ COOLING LIGHTING FENCING OFFICE WAREHOUSE FACILITY 1020 Southeast Loop 28% Lubbock, Texas M-1 (Light Manufacturing) Steel building, concrete slab, brick veneer on the office wing. Warehouse: gas furnaces & evap. cooling; Offices: central gas heat & electric refrigerated air conditioning. Warehouse: Mercury vapor, skylights; Offices: fluorescent. 6 ft. security fence around rear yard areas. See site plan. SE LOOP 289 LANDSCAPING Front WxIscaping, with a sprinkler system. CONDITION Excellent YEAR BUILT 1983 LAND SIZE 73.467.7 sq. ft. PARKING 24 striped spaces TAXES $7,287.08 in 1992 LEGAL DESCRIPTION CMR Industrial Park. Lot 1, City of Lubbock tile( GAUP, FFALTOIB, M 4924 S. ... 269 Lubbo066-6'%AJENWrn,aa. w.IORM lea d Oar paawiMe Aram at& not oui w4w4 a» mAW km *wAm w siwo arrrorrrra li�ua aal YgnO d pAarm a Oua �pria aw.wewit b Ylrw aM aaluala aq a nwral dd. 9iol�ta aararq q aAow b papany and b n�q araigwrrrli wM � did bial�r O�bwpiooaad� 2 c EXHIBIT "A" ■ t LUBBOCK CITY MAP 3 C r EXHIBIT "A" t 1 AREA DESCRIPTION The property under appraisal is located approximately one mile east of Interstate 27 on the south service road of South Loop 289 in a commercial/industrial area. Access to the subject is from the service road and King Avenue Which is parallel to the east property line. The area is served by telephone, electric, gas, and water utilities. Most streets are paved. There are several undevel. loped sites and a small vegetable farm near the subject. The Frito Lay Company has a distribution center directly south of the.subject. Other nearby businesses are: Scott Equipment Company, Bundock Construction Company, West Texas Caterpillar, and Nix Electric Company. Several businesses in the area have closed, and the properties are for sale or lease. There is a housing subdivision located directly south of the subject to 82nd Street. Most of the houses are old, however some are about 10 years of agg They contain approximately 1,400 to 1,600 sq. ft. Conditions are fair to poor. Some streets in the residential area are paved. Some are gravel. Development in the area is slow., Values appear to be stable. Demand for commercial/industrial space is soft. 4 rim WIN :s�� a �•. �. t� � r'W�wE b� •i �.1 i . c � 'r'i � i rk��T ��l,�s�}t ;:'�Rr��:, r '��•�'� r,�, , � 7 to tzj 9 �c s I to I H 1 !l 17 FIT Ali -fl its Xv&A Lic n - �t , �,v 2. r��; 2-1:, all we W. 23 sic X-0 IFS ' nAddAd ip _MN r .D. Mull :al tcicta M low MA -I., 0 al '.w . / k--;- *l, Is _ _...:_ EXHIBIT "A" SOUTH LOOP SERVICE ROAD LANDSCAPING LANDSCAPING _ LANDSCAPING �:..T PAVED PARKING N BUILDING OFFICES AREA I. WAREHOUSE AREA �267 _. FT i PAVED UNPAVED FENCED YARD PAVED I� I O O UNDERGROUND I STORAGE TANKS PAVED 275.16 FT. PAVED I UNPAVED I SITE PLAN - NOT TO SCALE LING AVENUE 6 EXHIBIT "!A" 4 _L4- T- 125 FT. t DOOR 41-11___ +_ �1.:::: _ f....:.. `DOER ` WAREHOUSE 4-4 4-4- 4-1- MECH R r 1 144 1- :.,I 1_ * - T7i S RAGE' OFFICE T-; BREAl ROOM. OFFICE I I I �>. s OFFICE ,) R \1 OFFICE R . t r ECEPTIO VTS 4-i 4.14 U19-4ttl-i . ! I I , : OFFICE OFFICE 60 FT. FLOOR PLAN NOT TO SCALE OFFICE ffiIBIT "A" (g) General Description - Modernization Renovation of the existing facility will provide a first-class office/production facility for the manufacturing of educational materials. Improvements will include renovation of the existing 4,500 square feet of office space and construction of an additional 4,700 square feet of office space, inventory space and production facilities within the existing warehouse. The building will consist of 9,200 square feet of office space and 2,800 square feet of warehouse when the renovation has been completed. P.0 EXHIBIT "A" FAIL ADDRESS: LUBBOCK CENTFtAL APPRAISAL DISTRICT P.O. BOX 10542 YAAJAW3Wl994 9407 OFFICE AD! 1715 2m $I (we) M-m A P P R A I S A L N 0 T I C E S C R E E N KEY: 01448589 LOC: L8/ 1020/SE/LOOP 289 GEO: R123000-00000-00010-000 LEGAL: C M R INDUSTRIAL PARK L NAME: DAVIS GORDON W CARD: NO VALUE CHANGE 0 PRIOR YEAR CURRENT YEAR 1993 1994 LAND: 91833 LAND: 91835 AGRIC: 0 AGRIC: 0 IMPR: 207478 IMPR: 207478 PERS: 0 PEAS: 0 MIN: 0 MIN: 0 TOTAL: 299313 TOTAL: 299313 ZONE: 38 CEILING: 0 ZONE: 38 CEILING: EXMS: 0 0 EXMS: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 FUNC: 1 YOUR MORTGAGE 00. MAY PAY TAXES DUE. PLEASE CONSULT BEFORE REMITTING PAYMENT. CF'1' 7��.t �bn l t 2� �f:' _. .; ; �'r�► ;--r�.,- t�£VYlt :ram b7i1:1:� .. 0 0 0 0 0 O 0 EXHIBIT "A" V.V. lSVA 11Jy4X = - 1715 26th St, Tififf,foT9%% 2994 9407 / / (806) 762-Soo M U L T I P L E Y E A R T A X E S KEY: 01448589 GEO: R123000-00000-00010-000 TOTAL DUE: CAUSE 1t: STAT: CRT ID: PAID DATE: 0 CRT COSTS: YR TAX DUE PAYMENT INTEREST PENALTY MEMO BALANCE 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 BILL TO: ZONE: 38 TITLE CO: SERVICE CERT DATE: 94050: DAVIS GORDON W MRTG: 0 LOAN: 5147 A 69TH ST PARENT KEY: LU88OCK TX 79424-1646 ------ LOCATION/LEGAL------------ L8 1020 SE LOOP 289 C M R INDUSTRIAL PARK L 1 OWNER NAME: DAVIS GORDON W CONTINUE (X): YOUR MORTGAGE CO. MAY PAY TAXES DUE. PLEASE CONSULT BEFORE REMITTING PAYMENT. MAIL ADDRESS: LUBBOCK CENTRAL APPRAISAL DISTRICT OFFICE ADD P.O. •OX 10642 1715 261h St. %9H%Sl0%Wl994 9407 (806) 762-500 P A Y M E N T H I S T O R Y KEY: 01448589 GEO: R123000-00000-00010-000 TOTAL PAYMENT: 40563.19 1 PAID ACT YEAR DATE _RECEIPT ----------------------------- TYPE REAS DATE TAX AMOUNT INT/PEN/SUR --.-------------------- TOTAL PA] 93 940126 85470043 ---------- F C 940127 ------...-_.-.rti. 7136.10 ----. 7136.1( 92 921216 5703004S F C 921218 7287.08 728.7.0E 91 911120 50430047 F C 911120 6720.18 6720.1E 90 901031 43610080 F C 901031 6854.04 6854.04 89 891230 57170196 F C 891230 6849.28 6849.21 88 890112 40250058 F C 890112 5716.51 5716.Sl CONTINUE (X): EXHIBIT 'BE SECTION VII. eca ture: 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 one year 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 1 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 (60) 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 Conmrcisl Projects in Demignsted Enterprise Zones Exhibit "a• PAGE 2 5. In the event that the applicant or owner, who has executed 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. 8. 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 of V.T.C.A., Tax Code, Section 33.01 will apply. Guidelines and Criteris Governing Tax Abatement for Cawsercisl Projects in Oesfratei Enterprise tones Exhibit •g• PAGE 3