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HomeMy WebLinkAboutResolution - 2002-R0499 - Tax Abatement Agreement With Wilkerson Investment Co. - 11_14_2002Resolution NO. 2002-RO499 November 14, 2002 Item No. 43 RESOLUTION WHEREAS, the City Council has determined to give notice of its intent to enter into a Tax Abatement Agreement with Wilkerson Investment Co.; and WHEREAS, V.T.C.A. Tax Code Section 312.2041 requires notice of 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 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 Wilkerson Investment Co.; 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 411 E. 66t' Street in the City of Lubbock, Lubbock County, Texas and being more particularly described as Lot One (1), Slaton Highway Industrial Park, an addition to the City of Lubbock, Lubbock County, Texas. Passed by the City Council this 14th day of ATTEST: . S L. & �'-" <:!, � " RebJ - Y*� ecca Garza, City Secretary APPROVED AS TO CONTENT: x Richard Burdine, Assistant City Manager APPROVED AS TO FORM: November 2002. G. Vandiver, First Assistant City Attorney Resolution No. 2002-RO499 November 14, 2002 Item No. 43 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 LOCATED AT 411 E. 66th STREET IN THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS AND FURTHER DESCRIBED AS LOT ONE (1) SLATON HIGHWAY INDUSTRIAL PARK, 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 Wilkerson Investment Co. to abate taxes on improvements to property located within an enterprise zone created by Ordinance No. 2000-00032 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 Wilkerson Investment Co. for tax abatement, a copy of said Agreement is attached to this notice as Exhibit "A- I" 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 21 st day of November , 2002, at 10:30 o'clock a.m. TANoticeRes Wilkerson EXHIBIT "A-1" Resolution No. 2002-R0499 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this day of , 2002, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Wilkerson Investment Co. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 23rd day of August, 2002, an application for commercial tax abatement for the construction of a new facility at 411 E. 66th Street which is further described as Lot One (1), Slaton Highway Industrial Park, an addition to the City of Lubbock, Lubbock County, Texas. The new facility will be leased to Watkins Motor Lines to replace their existing facility at 2604 Texas Avenue. WHEREAS, upon review of the above application, it was determined that facilities would be located in the Lubbock 2000 South Enterprise Zone designated by City in its Ordinance No. 2000-00032; 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. 2001-R0387 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. 2000-00032 of the City on June 8, 2000, which ordinance includes 411 E. 66th Street. WHEREAS, V.A.T.C., Tax Code, Sec. 312.2011 provides designation as an enterprise zone constitutes designation as a reinvestment zone without further action; and WHEREAS, the application received by City from Company is an application for the construction of a new facility for an existing business; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a purpose is to be included in the guidelines for tax abatement and to be eligible for such treatment; and WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones adopted by the City Council by Resolution No. 2001-RO387 does recognize construction of a new facility for an existing business 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. 2001-R0387, have been met by Company; and WHEREAS, Company does intend to construct a new facility for an existing business; and WHEREAS, the location of the new 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 WHEREAS, the City Council finds that entering into this Agreement to abate taxes on the property described in Exhibit "A" will promote high quality commercial development in 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: AGREEMENT — WILKERSON 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 2002, 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. 2041-R0387, and incorporated by reference herein as if fully set out in this Agreement is property ineligible for tax abatement. SECTION 6. Exemption from Tax. The City covenants and agrees to exempt from taxation, in accordance with Section 4 above, the following properties: (a) All proposed new construction to be located at 411 E. 66th Street which is further described as Lot One (1), Slaton Highway Industrial Park, an addition to the City of Lubbock, Lubbock County, Texas. (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 the company and already located in the existing facility. AGREEMENT — WILKERSON 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 Company will expend funds necessary to qualify for tax abatement by constructing a new facility, all as set forth in Section IV(9)(a) 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. 2001-R0387. SECTION 8. Value of Improvements. Company intends to expend approximately five hundred thousand dollars ($500,000) in constructing a new facility for an existing business to be located within the Enterprise Zone created by Ordinance No. 2000-00032. SECTION 9. 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, attached as Exhibit "A", and this Agreement. SECTION 10. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate taxes on eligible property according to the following schedule: Year 1: 100% Year 2: 80% Year 3: 60% Year 4: 40% Year 5: 20% AGREEMENT — WILKERSON Page 4 SECTION 11. 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 12. Type of Improvements. The Company proposes to build 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 September, 2002, and shall be completed within approximately four months 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 13. 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 14. 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 15. 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 pursuant to law and as set forth in Section VII of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones adopted by Resolution No. 2001-R0387 of the City Council of the City of Lubbock. SECTION 16. 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 17. Compliance. The City may cancel or modify this Agreement if the Company fails to comply with the Agreement. AGREEMENT — WILKERSON Page 5 SECTION 18. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK WILKERSON INVESTMENT CO. City Manager David Wilkerson P.O. Box 2000 PO Box 2525 Lubbock, TX 79457 Lubbock, TX 79408 AGREEMENT — WILKERSON Page 6 SECTION 19. 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 day of , 2002. WILKERSON INVESTMENT CO. CITY OF LUBBOCK A Municipal Corporation DAVID WILKERSON MARC MCDOUGAL MAYOR ATTEST: ATTEST: Secretary Rebecca Garza City Secretary APPROVED AS TO CONTENT: s i Richard Burdine Assistant City Manager APPROVED AS TO FORM: _ onald G. Vandiver First Assistant City Attorney Ddcon/TACo nW ilderson AGREEMENT — WILKERSON Page 7 MIBIT "A" Resolution No. 2002-R0499 APPLICATION FOR COMMERCIAL TAX ABATEMENT IN LUBBOCK, TEXAS ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO: City of Lubbock Business Development Department P.O. Box 2000 1625 13" Street Lubbock,TX 79457 (806) 775-2019 Date of Application: 8/14/2002 Applicant Name: Wilkerson Investment Co. (Building New Freight Terminal Leased to Watkins Motor Lines) Company Name: Wilkerson Investment Co. Address: PO Box 2525, Lubbock. Texas 79408 Phone:806-474-2211 Fax:806-474-2216 Applicants Representative on this project: David Wilkerson Name: David Wilkerson Address: PO Box 2525, Lubbock, Texas 79408 Phone: 806-474-2211 Type of Ownership: [ ] Corporation [X] Partnership [ ] Proprietorship Total Current Number Employees: Wilkerson Investment Co. (0) Watkins Motor Lines (8 Locally) Corporate Annual Sales Per Year: $3,500,000 Locally -Secfio;n 11. _ FA LITY I14FO'RMATIO 1 ` (a) This application is for a: [X] New Facility [ ] Expansion [ ] Modernization taxabatement.doc Commercial Tax Abatement Application Page 2 11 (b) Type of Commercial Facility for which abatement is requested: Freight Terminal i (c) Minimum economic qualification for tax abatement - place a check beside the statements that apply to your project: [X] Minimum investment at least $250,000 [ ] Creation of at least 10 new permanent jobs [ ] At least 30% of the new employees to be hired by the business will be residents of any enterprise zone within the governing body's jurisdiction (d) [ ] The existing facility to be modernized or expanded or the property where the new facility is to be built is located in a designated Enterprise Zone. (e) Address of proposed facility: Northwest corner of 66"' Street and Elm Ave. (Land is not platted yet —address will be provided once platting is completed) (f) Legal description of proposed facility: Lot 1 Slaton Highway Industrial Park (See Attached Exhibit A -Preliminary Plat) (g) Describe product or service to be provided: Wilkerson Investment Co. will build a new freight terminal building for Watkins Motor Lines to use in its freight delivery business Please attach the following: Attachment 1 (a) A general description of the improvements to be undertaken (example: build new retail store at 4501 Peach Street and install new furniture and fixtures). (b) A descriptive list of the improvements for which tax abatement is requested, including: (1) cost and description of construction and location of all proposed improvements of the Real Property or Existing Facility, and; (2) list of new equipment and cost of the equipment. (c) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing facility. (d) A proposed time schedule for undertaking and completing the proposed improvements. Attachment 2 (a) A site map indicating the approximate location of improvements on the Real Property Facility or Existing Facility together with the location of any or all Existing Facilities located on the Real Property or Facility. Commercial Tax Abatement Application Page 3 II Attachment 3 (a) A statement of the additional value to the Real Property or Facility as a result of the proposed improvements.. (b) A statement of the assessed value of the Real Property, Facility or Existing Facility for the base year (attach tax assessment for property from the Lubbock Central Appraisal District). (c) Information concerning the number of new jobs that will be created or the number of existing jobs to be retained as a result of the improvements undertaken. far fiinn ii�l: ECNCMIC IMPACT IN"FdRNFkT1ON"" 11 Part A — Current Investment in Existing Improvements: NA Part B — Permanent Employment Estimates: (1) If existing facility, what is the current plant employment: 8 (2) Estimated number of new jobs to be created and time frame for creation of jobs: New Jobs 2 Time Frame 6 to 8 Months (3) Estimated number of retained jobs: 8 (4) Opening of improvements: (Month) February of (Year) 2003. I Part C — Permanent Payroll Estimates: (1) If existing facility, what is the current plant payroll, $389,887.00 (2) Estimated amount of new payroll: $25,000.00 (3) Estimated amount of retained payroll: $389,887.00 Part D — Construction and Employment Estimates: (1) Construction start: Month September Year 2002. (2) Number of construction jobs: At Start 10 Peak 25 Finish 10 (3) Number of man-years: N/A Commercial Tax Abatement Application Page 4 Part E — School District Impact Estimates: Give Estimated number of Children added to LSD's 0 to 4 Part F — City Impact Estimates: (1) Volume of treated water required from City N/A gallons per day. (2) Volume of effluent to be treated by City N/A gallons per day. Part G — Estimated Appraised Value on Site: LAND PERSONAL IMPROVEMENTS PROPERTY Value of Existing Facility Before New Construction (From Central Appraisal District) $64,725.00 $ 0 11 Value of New Improvements $ 0, $500,000.00 Estimated Total Value After Improvements $64,725.00 �_o $500,000.00 Part H —Variance: (a) Is a variance being sought under Section IV 9(d) of the "Guidelines"? [ ] Yes [X] No (b) If "Yes", attach any supplementary information required. Commercial Tax Abatement Application Page 5 Attachment 1 General Description: This will be a new freight terminal for Watkins Motor Lines as shown on attached plans Descriptive List of Improvements: 1. Cost of Improvement: Approximately $500,000 (For Location of Improvements See Attached Plans) 2. List of New Equipment: None List of All Tangible Personal Property Presently Located in an Existing Facility: None Proposed Schedule For Completing the Improvements: September 1- Submit Plans for Permit October 1- Pour Slab Have All Dirt Work Completed November 1- Complete Building Erection December 1- Begin Finish Out Jan 1- Complete Finish Out Feb 1- Watkins Move In Commercial Tax Abatement Application Page 6 Attachment 2 See Attached Plans Commercial Tax Abatement Application Page 7 Attachment 3 Statement of Additional Value: Approximately $500,000 of value will be added to the land. Statement of Assessed Value of Real Estate: The entire vacant tract of Land is appraised for $64,725. The freight terminal will be built on a small part of this land (see attached tax statement). Information Concerning Retained Jobs: 8 Jobs will be retained. Lubbock CAD Properties Page 1 of 3 LUBBOCK CAD Real Property Information Lubbock Account Number: R110922 Cross Reference Number: 01817038 View Tax Information Owner's Name WILKERSON INVEST CO and Mailing PO BOX 2525 Address LUBBOCK, TX 79408-2525 Location N/A ELM AVE Zone 0038 Map ID AC46001-90046-01050-000 Description BLK E SEC 1 AB 46 TR H1 ACS: 25.885 Subdiv/Abstract Ind. A Subdiv/Abstract No. AC46001 Taxing Entities Code Entity Name Tax Rate 2001 Tax GLB LUBBOCK COUNTY .19170 LUBBOCK ISD 1.60620 SLB LUBBOCK .57000 CLB HOSPITAL DISTRICT .09905 HSP High Plains Water District .00830 WHP 1 J=Totals: i I Deed Changes as of: 14/26/02' Data updated on: 0002-07-23 PROPERTY 11'2002 Certified' INFORMATION Exemption Codes F ---]^� Amount Number of Im Land Acres Date Volume 11/ Use otal Improvement Value 25.89 Land Market Value $64,725 Ag Market $0 /1995 4979 Total Market Value $64,725 http://www.lubbockcad.org/Lubbockdetail.cfm?theKey=Rl 10922 8/21 /2002 Lubbock CAD Properties Page 2of3 45 Note: If your value is 0, a change of ownership may have occurred since certification. LAND INFORMATION LandID TypeCode SPTB Code Appraisal Method Homes�te Eff. Frontage Eff. Depth Size- Size- Acres Sgft C Commercial D 1 REAL Land El ACREAGE A Acreage E:E1:11 d OOOQO FARM Certified History Tax Year 2001 2000 1999 1998 1997 1996 1995 1994 Improvements Land Market 11 $64,725 $64,725 $64,725 $64,725 $64,725 $64,725 $90,222 $90,222 Ag. Land Market F F7 F7F7F MARKET $64,725 $64,725 $64,725 $64,725 $64,725 $64,725 $90,222 $90,222 Land Ag. Use 10% Limited Adjustment �R� ,I, $64,725 $64,725 $64,725 $64,725 $64,725 $64,725 $90,222 $90,222 Exemptions Special Exemptions Over-65 Freeze Year Over-65 Freeze Amount Another Search by Short Account Number Another Search by Long Account Number Another Search by Owner Name http://www.lubbockcad.org/Lubbockdetail.cfm?theKey=R110922 8/21/2002 b V BIDED (iN57}7M. 7i CO. .xw} CJ O z R=1065.77` A-04° NO 7T SUSDI VIDED LordOwo': lV7altaysrashsesJ/nsrifCo. ( W. 49M Pg. 45 ) S89°55tdt 402.00' 0 0 �V q M y� .i m Q T=37.22' R=990.70' R-25.00' CH•74.39` _L=04° ?•90` T=34.60' T=25.00'7� SEARS S99°55'S0"E N85155'56w ` CH=69.15' CH=35.36' \ ATHE SOUTHWEST 93N85°55'S W \# ACTION 1. BLOCK E .95 .42,g 96.$3' ---__,_- ----r- (Herelo Dedicated) iUT SUBDIVIDED N89055td* 402.00' Lowowner> J. LeafsAkrf",, lk ( V/o/ 910, Fo. 181 ( Vd. M59 N. 447 ) A/0 T SUBDIVIDED Lead ow► sm, S/wfcYd TRAC T ( vd � TA AI LOT 1 - - --�- EA S f-EAERGAS >l. G83 Pg. IEW 18r / !") T 1 SLATON H.IGHWAY INDUSTRIAL PARK AN ADDITION TO THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS Notes: Scale: 1"=100' Heavy Lines indicate plat limits. All streets, alleys, and easements within plat limits are herein dedicated. All easements dedicated hereby shalt entitle the City or the utility company using such easements to the right to remove, repair, or replace lines, pipes, conduits, or poles within such easements as may be determined by the City or utility company without the City or utility aany being responsible or liable for the replacement of Improvements. paving, of surfacing of the easement necessitated by such removal, repair, or replacement. Easements designated or intended for vehicular passage (utility and emergency) or pedestrian access shall not be fenced or otherwise obstructed. Ail electrical service shall be in accordance with the Underground Utilities Policy Statement by the Planning and Zoning Commission of the City of Lubbock, Texas. Any relocation or revision. of.existing facilities shall be at the developer's expense. Compensation shall be made prior to the recording of any portion of this final plat. All existing or proposed utility services to and on tracts indicated by this plat shall be contained in the public right-of-way and public or private utility easements. Utility service installation requested at a future date, and not within an easement indicated by this plat, shall be Within a proper utility easement granted by the owner of said property by separate recorded instrument prior to the provision of such service. Such easements shall be at the developer's .expense No building permit shall be issued on any survey certificate that is not in accordance with an approved final plat unless exception is provided by Planning Commission policy or by the Lubbock Code of Ordinances. . Minimum floor elevations shall conform to the requirements of the Lubbock Drainage Criteria Manual, as adopted by Resolution No. 5718, and Sections 648 (as amended in Section 39) and 21-31 of the Lubbock Code of Ordinances. Blanket garbage collection easement as required for service within.the plat limits is herein granted. Blanket underground utility, transformer pad, and switching enclosure easement as required for service within the plat limits is herein granted to Lubbock Power and Light Company, Xcel Energy. and South Plains Electric Co-op. Blanket underground utility easement as required for service within the plat limits is herein granted to SBC-Southwestern Bell Telephone Company and Energas Company. Any easements or rights -of -way shown as "to be dedicated by separate inslrumenf' are shown hereon for information purposes only. This plat does not dedicate said easements. Contains: 3.927 acres UUE-Underground Utility Easement p-Indicates found 5.:8" iron rod with cap (unless noted othenvisel s -Indicates set 1 i2" iron rod with cap (unless noted otherwise) A i-sgal desu-'iIjtion of even survey date herewith accompanies This plat.