HomeMy WebLinkAboutResolution - 2005-R0225 - Tax Abatement Agreement With Vertical Turbine Specialists, Inc. & BMOVE, Ltd - 05_26_2005Resolution No. 2005-RO225
May 26, 2005
Item 35
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Tax Abatement Agreement with Vertical Turbine Specialists, Inc. and BMOVE, Ltd.; 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 Vertical Turbine Specialists, Inc.
and BMOVE, Ltd., said notice to be given to the presiding officers of each governing body of
each taxing unit having jurisdiction in assessing taxes on 1802 East 50`h Street, the West 440
feet of Tract C Breedlove Addition, in the City of Lubbock, Lubbock County, Texas, which is
further described in Exhibit "A- I" attached hereto and incorporated herein as if fully set forth.
Passed by the City Council this 26th
ATTEST:
Q-J�� -- clssa-:n.
Re ecca Garza, City Secretary
APPRO D T CONTENT:
Rob Allis
Director of Business Development
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
day of May 2005.
NTARCAkcD,6fJGAL, MAYOR
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 1802 E. 50TH
STREET WHICH IS THE WEST FOUR HUNDRED AND FORTY FOUR FEET
OF TRACT C, BREEDLOVE ADDITION TO THE CITY OF LUBBOCK,
LUBBOCK COUNTY, TEXAS AND FURTHER DESCRIBED IN THE
ATTACHED EXHIBIT "A-1"
Notice is hereby given that the City Council of the City of Lubbock intends to
enter into an Agreement with Vertical Turbine Specialists, Inc. and BMOVE, Ltd., to
abate taxes on improvements to real property and tangible personal property located
within the Lubbock 2000 South 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
Vertical Turbine Specialists, Inc. and BMOVE, Ltd., for tax abatement, a draft copy of
said Agreement is attached to this notice as Exhibit "A-2" 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 13`h Street, City of
Lubbock, on the 9th day of June, 2005, at approximately 9:30 o'clock a.m.
EXHIBIT "A-1"
Description
West 440 feet of Tract C Breedlove Addition to the City of Lubbock, Texas
EXHIBIT "A-2" DRAFT
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this day of , 2005, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City"), BMOVE, Ltd., a Texas limited partnership (hereinafter called
"BMOVE") and Vertical Turbine Specialists, Inc. (hereinafter called "VTS");
WITNESSETH:
WHEREAS, BMOVE is the owner of real property located at 1802 E. 50t' Street
which is further described as Tract A, B, & C Breedlove Addition to the City of Lubbock,
Texas; and
WHEREAS, on November 29, 2004, VTS entered into a one hundred and eighty
month lease with BMOVE for a portion of the property and one of the facilities at 1802
E. 50t' Street, Lubbock, Texas, a copy of which is attached hereto as Exhibit "A and
incorporated in this agreement as if fully set forth herein. The portion of the property and
facility leased by VTS is'described as 1802 E. 50'h Street, the west four hundred and forty
feet of Tract C, Breedlove Addition to the City of Lubbock, Texas which is further
described in Exhibit "B", and made a part of this agreement for all purposes; and
WHEREAS, City did receive from VTS on the 10t' day of December an
application for tax abatement for improvements to real property and tangible personal
property at 1802 E. 50t' Street , Lubbock, Texas, which is further described in Exhibit
"B"• and
WHEREAS, upon review of the above application it was determined that the
facility and real property is located in the Lubbock 2000 South Enterprise Zone
designated by the City in Ordinance No. 2000-00032 covering the above described
property; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement For Selected
Taxing Units Contained Within Lubbock County was heretofore adopted by Resolution
No. 2003-RO370 of the City Council of the City of Lubbock, and amended by Resolution
No. 2004-R0593. A copy of the amended Guidelines and Criteria Governing Tax
Abatement for Selected Taxing Units Within Lubbock County is attached as Exhibit "C"
and incorporated herein as if fully set forth; and
AGREEMENT - VERTICAL TURBINE SPECIALISTS, INC. PAGE 1
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 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. 2003-RO370 of the City on September 18, 2003, and amended by Resolution No.
2004-RO593 on December 16, 2004; and
WHEREAS, the City did pass Ordinance No. 2000-00032 creating the Lubbock
2000 South Enterprise Zone for commercial and industrial tax abatement, said zone
including the area which is described in the attached Exhibit `B"; and
WHEREAS, V.A.T.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 VTS is an application for the
modernization of an existing facility owned by BMOVE and leased to VTS; 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 Selected Taxing Units Contained Within Lubbock County adopted by the City
Council by Resolution No. 2003-R0370, and amended by Resolution No. 2004-R0593,
does recognize modernization of an existing facility as being eligible for tax abatement
status; and
WHEREAS, the City Council finds that although the project is not included as a
target industry in the guidelines, it has the potential of generating additional significant
economic development opportunities to Lubbock; and
WHEREAS, the City Council does hereby find that all of the Guidelines and
Criteria Governing Tax Abatement, as adopted by Resolution No. 2003-R0370, and
amended by Resolution No. 2004-R0593, have been met by VTS; 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 "B" 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, VTS, and BMOVE do hereby
agree as follows:
AGREEMENT -VERTICAL TURBINE SPECIALISTS, INC. PAGE 2
SECTION 1. Term. This Agreement shall remain in force and effect for a period
of five (5) years from January 1 of the tax year after the required improvements are
substantially completed 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 2005, 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(6) 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. 2003-R0370, amended by Resolution No. 2004-R0593 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, in accordance with Section 4 above, the following properties:
(a) All proposed new improvements to be placed upon the property which is
described in Exhibit `B".
(b) All eligible tangible personal property, owned by VTS, placed in or upon
the property set forth in Exhibit "B".
(c) It is further understood that all items affixed to the new improvements
placed upon the real property identified in Exhibit "B", 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. Job Creation Qualifications. It is hereby found by the City that VTS
will create 65 new full-time permanent positions by June 2005 and an additional 20 new
full-time permanent positions within three years of the date of execution of this contract
to qualify for tax abatement, as set forth in Section IV(3)(a) of the amended Guidelines
AGREEMENT - VERTICAL TURBINE SPECIALISTS, INC. PAGE 3
and Criteria Governing Tax Abatement for selected taxing units contained within
Lubbock County (Exhibit "C") on the property described in Exhibit `B". A description
of the number and location of all proposed jobs is attached in VTS' application, Exhibit
"D" and incorporated herein as if fully set forth.
SECTION 8. Value of Improvements. In accordance with V.A.T.C., Tax Code,
Section 312.204(a), which requires the Owner or the Owner of the Leasehold Interest of
the property to make specific improvements or repairs to the property in order to be
eligible for tax abatement, VTS will expend four hundred and ten thousand dollars
($410,000) dollars and BMOVE will expend two hundred and forty-one thousand dollars
($241,000) for the modernization of the existing facility and VTS will add one million
forty-six thousand four hundred and seventy dollars ($1,046,470) in new value for
tangible personal property to be located within the enterprise zone created by Ordinance
No. 2000-00032.
SECTION 9. City Access to Property. VTS and BMOVE covenants and agrees
that City shall have access to the property and employment records, which are 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 and employment records to
insure compliance with the terms and conditions of VTS' application for tax abatement,
attached as Exhibit "D", 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%
SECTION 11. Commencement Date. This Agreement shall commence January 1
of the tax year after the required improvements are substantially completed and shall
expire five (5) years after such date.
SECTION 12. Type of Improvements. VTS proposes to renovate an existing
structure as described in Exhibit "D". VTS further states that the proposed improvements
to the property above mentioned shall commence on the 1" day of February, 2005, and
shall be completed within approximately three (3) months from said date. VTS may
request an extension of the above date from City in the event circumstances beyond the
control of VTS necessitates additional time for completion of such improvements and
such consent shall not unreasonably be withheld. VTS shall provide a copy of the
certificate of occupancy or other proof of completion within ten days of completion of
improvements.
AGREEMENT -VERTICAL TURBINE SPECIALISTS, INC. PAGE 4
SECTION 13. Drawings of Improvements. VTS 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. VTS and BMOVE agrees to limit the use of
the property set forth in Exhibit 'B" 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 15. Electricity Provider. VTS agrees to utilize Lubbock Power &
Light (LP&L) for electrical services for the term of the tax abatement. If VTS chooses to
utilize a different Power Company, this contract shall be terminated.
SECTION 16. Recapture. VTS and BMOVE agrees to be bound by and comply
with all the terms and provisions for recapture of abated taxes in the event of default by
VTS and WOVE pursuant to law and as set forth in Guidelines and Criteria for Tax
Abatement adopted by Resolution No. 2003-RO370 of the City Council of the City of
Lubbock and amended by Resolution No. 2004-110593.
SECTION 17. Certification. VTS and BMOVE agrees to certify annually in
writing to the governing body of each taxing unit that the owner and owner of the
leasehold interest is in compliance with the terms of the Agreement.
SECTION 18. Compliance. The City may cancel or modify this Agreement if
VTS and BMOVE fail to comply with the Agreement.
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 VERTICAL TURBINE SPECIALISTS, INC.
City Manager Douglas B. Allen
P.O. Box 2000 1802 E. 50`h Street, Suite 106
Lubbock, Texas 79457 Lubbock, TX 79404
BMOVE, Ltd.
Douglas B. Allen
1802 E. 501h Street, Suite 106
Lubbock, TX 79404
AGREEMENT - VERTICAL TURBINE SPECIALISTS, INC. PAGE 5
SECTION 20. 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 day of
2005.
VERTICAL TURBINE SPECIALISTS, CITY OF LUBBOCK
INC. A Municipal Corporation
DOUGLAS B. ALLEN
PRESIDENT
BMOVE, LTD
DOUGLAS B. ALLEN
MANAGING DIRECTOR
Tax Abatement Agmt-VTS
May 11, 2005
MARC MCDOUGAL, MAYOR
ATTEST:
Rebecca Garza
City Secretary
APPROVED AS TO CONTENT:
Rob Allison
Director of Business Development
APPROVED AS TO FORM:
Linda L. Chamales,
Senior Attorney
Office Practice Section
AGREEMENT -VERTICAL TURBINE SPECIALISTS, INC. PAGE 6
,. EXHIBIT "A"
LEASE AGREEMENT
(Multi -Tenant Property)
BETWEEN
BEmow, LTD.
(LANDLORD)
AND
VERTICAL TURBINE SPECIALISTS, INC.
(TENANT)
RELATING TO
1802 East 50th Street (portion)
Lubbock, Texas
(LEASED PREMISES)
FUNDAMENTAL LEASE PROVISIONS .............................. I......................... 1
ARTICLE................................................................................ 1
1.01. Fundamental Lease Provisions ................................................... 1
1.02. Definitions.............:...................I............................ .. i
ARTICLEIt ................................................................................ 2
2.01. Demise of Leased Premises ................................................... 2
ARTICLEIII............................................................................... 2
3.01. Primary Term................................................................. 2
ARTICLEIV............................................................................... 2
4.01. Basic Rent................................................................... 2
4.02. Additional Tenant Expense ...................................................... 2
4.03. Additional Rent................................................................ 2
4.04. Late Penalty................................................................... 2
4.05. Place of Rent Payment.......................................................... 3
ARTICLEV................................................................................ 3
5.01. Use......................................................................... 3
5.02. Tenants Responsibility Regarding Hazardous Substances .............................. 3
ARTICLEVI ............... :..................................................... :......... 4
6.01. Taxes and Assessments......................................................... 4
6.02. Insurance ................................... :................................ 4
ARTICLEVII.............................................................................. 5
7.01. Maintenance................................................................. 5
7.02. Utility Services......:........................................................ 5
7.03. Alterations, Additions and Improvements ........................................... 5
7.04. Equipment and Fixtures......................................................... 5
7.05. Signs ..................................... 6
7.06. Condition of Property; Disclaimer of Warranties ..................................... 6
7.07. Destruction or Damage......................................................... 6
ARTICLEVlll.............................................................................. 6
8.01. Default by Landlord........................................................... 6
9.02. Default by Tenant ...... :.................................................. .. 6
8.03. Remedies of Landlord.......................................................... 7
9.04. Tenant's Personal Property; Contractual Security Interest .............................. 7
ARTICLEIX..................................................................I.......... 8
9,01. Indemnity.................................................................... 8
9.02. Assignment and Subletting...................................................... 8
9.03. Inspections................................................................... 8
9.04. Condemnation................................................................ 8
9.05. Subordination of Lease, Estoppel Certificates ....................................... 9
9.06. Surrender............................................................. 9
9.07. Holding Overby Tenant........................................................ 9
9.08. Notices and Addresses.......................................................... 9
9.09. Parties Bound ............................................................. 9
9.10. Applicable Law............................................................... 9
9.11. Lcgal Construction ............................................................ 9
9.12. Prior Agreements Superseded.................................................... 9
9.13. Amendment.................................................................. 9
9.14. Waiver of Default............................................................. 9
9.15. Attorney's Fees............................................................... 9
, PART I.
FUNDAMENTAL LEASE PROVISIONS
EXECUTION DATE: November 41,
2004
LANDLORD:
Name: BEMOVE, LTD., a Texas limited partnership
Address: 52I9 City Bank Parkway, Lubbock, Texas 79407
TENANT:.
Name: VERTICAL TURBINE SPECIALISTS, INC.
Address: 1012 East Waylon Jennings Blvd., Littlefield, Texas 79339-4160
LEASED PREMISES: A portion of the real property described in Exhibit "A" attached
hereto and made a part hereof for all purposes, as further outlined on
the site plan of such property attached hereto as Exhibit "B" and made
a part hereof for all purposes, together with all improvements thereto.
TERM:
Commencement Date: December 1, 2004
Primary Term: One Hundred Eighty (ISO) full months from the Commencement
Date, subject to adjustment as provided in Paragraph 3.01.
USE: Any lawful industrial use.
PART II.
LEASE AGREEMENT
THIS AGREEMENT is made and entered into by and between Landlord and Tenant, as of the Execution Date shown
in the Fundamental Lease Provisions.
ARTICLE I
1.01. Fundamental Lease Provisions. Certain fundamental provisions of this Lease are set out on page (i) of this
instrument, said page being identified "Fundamental Lease Provisions' and being so-called herein. The Fundamental Lease
n ...... ... ... ..... .-_I ... _. _L.Y:.. ��.... .�J �...L ...! ...........� ,C:. i ....ww aw w.........1 ......«....� .L..If Lw w.........wA 1w
(c) "Landlord's Operating Ex2;nsc' - All costs and expenses incurred and/or paid by Landlord under the
provisions of Section 6.01(Taxes and Assessments), Section 6.02 (Insurance), and Section 7.01(b) (pertaining
to Common Area maintenance).
(d) "Lease Year• -A period of twelve (12) consecutive months, commencing on the Commencement Date as to
the first Lease Year, and any anniversary thereof as to subsequent Lease Years.
(e) "Leased Premises" - That portion ofthe Project which is more particularly described in the Fundamental Lease
Provisions and shown on plat attached hereto as Exhibit "B".
( 0 'Proiect" - That certain real property identified in Exhibit "A", including, but not limited to, all improvements
and structures located thereon and all rights, privileges, easements and appurtenances belonging or in any way
pertaining thereto.
(g) "Tenant's Proportionate Share" - Sixty percent (60%).
ARTICLE 11
2.01. Demise of Leased Premises In consideration of the mutual covenants and agreements herein set forth, and
other good and valuable consideration. Landlord does hereby demise and lease to Tenant, and Tenant does hereby lease from
Landlord, effective as of the Execution Date shown in the Fundamental Lease Provisions, the Leased Premises-, TO HAVE AND
TO HOLD the same for the term hereinafter specified and upon the terms and conditions hereinafter set forth.
ARTICLE III
3.01. Primary To The primary term of this Lease shall be that term set out in the Fundamental Lease Provisions.
ARTICLE IV
4.01. Basic Rent. Tenant's obligation to pay rent under this Lease shall commence as of the Commencement Date.
All rent payable by Tenant pursuant to this Section 4.01 is sometimes referred to in this Lease as the "Basic Rent". Beginning
as of the Commencement Date, Tenant shall pay Basic Rent in the amount of $136,980.00 per Lease Year, payable in twelve (12)
equal monthly installments of 511,415.00 each on or before the first day of each calendar month during such Lease Year. The
amount of each monthly installment of Basic Rent shall be adjusted effective as of the first day of the fourth (4th) Lase Year
and as of the first day of each third (3rd) Lease Year thereafter to equal the product of (i) sixty percent (6001a), multiplied by
(ii) the then -current monthly installment of principal and interest payable by Landlord on that certain loan in the original principal
amount of $2,184,000.00 from PEOPLES BANK to Landlord, such loan being secured by a Deed of Trust and other liens against
and security interests in the Project. Basic Rent, as so adjusted, shall continue to be payable in twelve (12) equal monthly
installments during each Lease Year, with an installment being due on or before the first day of each and every calendar month
during the applicable Lease Year. All Basic Rent shall be paid by Tenant to Landlord without demand, deduction or offset of
any kind whatsoever.
4.02. Additional Tenant Expense. In addition to Basic Rent, Tenant shall pay to Landlord an amount equal to
Tenant's Proportionate Share of Landlord's Operating Expense. Prior to the Commencement Date and to January I of each
succeeding calendar year throughout the term of this Lease. Landlord may estimate the amount of Landlord's Operating Expense
which Landlord anticipates will be incurred during the following calendar year. In such case, the amount of Tenant's monthly
payment shall be an amount equal to the quotient of Tenant's Proportionate Share of Landlord's Operating Expense (as estimated
by Landlord) divided by twelve (12), and shall be payable on the first day of each calendar month throughout each calendar year.
at the same time as, but in addition to, Tenant's payment of Basic Rent Tenant acknowledges that the amount of such installment
is an estimate and is not fixed and may change from year to year in accordance with Landlord's estimates of Landlord's Operating
Expense. Within ninety (90) days following the end of each calendar year, Landlord shall furnish to Tenant a written statement
showing the actual Landlord's Operating Expense for the preceding calendar year, and Tenant's Proportionate Share of such
expense. in the event the total amount of monthly instal Interim of landlord's Operating Expense paid by Tenant to Landlord
during the preceding calendar year shall be lees than Tenant's Proportionate Share of the actual Landlord's Operating Expense,
Tenant shall pay the balance to Landlord in cash within thirty (30) days following Tenant's receipt of Landlord's written
statement. If the total amount of the monthly installments of Landlord's Operating Expense paid by Tenant during such year shall
exceed Tenant's Proportionate Share of the actual Landlord's Operating Expense, the balance, at Landlord's option, shall (a) be
refunded to Tenant within thirty (30) days following the delivery of Landlord's statement, or (b) be credited against Tenant's
monthly Landlord's Operating Expense payments for the following year.
4.03. Additional Rent. All sums of whatever character due from Tenant to Landlord or otherwise payable by Tenant
under the terms of this Lease shall be deemed to constitute rent. If such amounts are not paid at the time provided in this Lease,
they shall nevertheless be collectible as rent with the next installment of Basic Rent thereafter falling due, but nothing herein
contained shall be deemed to suspend or delay the payment of any amount of money or charge at the time the same becomes due
and payable hereunder or to limit any other remedy of Landlord. All amounts of rent payable in a given month shall be deemed
to comprise a single rental obligation of Tenant to Landlord.
4.04. Late Pcnalty. If Tenant fails to pay any rent within ten (10) days following the date when the same is due and
payable, Tenant acknowledges that the late payment will cause landlord to incur certain costs and expenses not contemplated
under this Lease, the exact amount of which costs and expenses is extremely difficult or impractical to fix. Therefore, if any such'
rent is not received by Landlord from Tenant within five (5) days from the date due, Tenant shall immediately pay to Landlord,
Lease Agrecnunr Page.?
in addition to all other rent due, an amount equal to five percent (5%) of the delinquent rent plus interest on the delinquent rent
at the lesser of (i) 18% per annum, and (ii) the maximum legal rate from the date due until paid. Should Tenant pay said late
charge but fail to pay contemporaneously therewith all unpaid amounts of rent, Landlord's acceptance of the late charge shall
not constitute a waiver of Tenant's default with respect to Tenants nonpayment of rent nor prevent Landlord from exercising all
other rights and remedies available to Landlord under this Lease or under law.
4.05. Place of Rent Payment. All payments of nett shall be made to Landlord at Landlord's address, as designated
in the Fundamental Lease Provisions, or at such other place as Landlord may designate in writing from time to time.
ARTICLE V
5.01. LL% Tenant shall use the Leased Premises only for the purpose or purposes specified in the Fundamental Lease
Provisions. Tenant agrees that it will not do any of the following without the express, specific prior consent in writing of
Landlord:
(a) Use or operate any machinery or equipment that is harmful to the Leased Premises or unreasonably disturbing
'to other tenants in the Project;
(b) Do, or suffer to be done, any act, manner or thing objectionable to the fire insurance companies whereby the
fire insurance or any other insurance now in force or hereafter to be placed on the Leased Premises or any part
thereof, or on the Project of which the Leased Premises is a part shall become void or suspended, or whereby
the some shall be rated at a more hazardous risk than at the date when Tenant received possession hereunder,
in case of a breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agrees to
pay to Landlord as additional rent any and all increase or increases of premiums on insurance carried by
Landlord on the Leased Premises, or any part thereof; and on the Project of which the Leased Premises is a
part, caused in any way by the occupancy or use of Tenant
Further, Tenant agrees:
(v) To comply with any and all requirements of any of the constituted public authorities having jurisdiction and
with the terms of any State, Federal, or local statute, ordinance, or regulation applicable to Tenant or its use
of the Leased Premises.
(w) To give Landlord prompt written, full, complete, and specific notice of any accident, fire or damage occurring
in, on or to the Leased Premises.
(x) To keep all garbage and refuse in secure containers and to prepare the same for collection in the manner and
at the times and places specified by regulations of the public authorities having jurisdiction.
(y) To keep the Leased Premises clean, orderly, sanitary and free from objectionable odors and from insects,
vermin and other pests and, with affirmative action, to disallow the usage and possession of any illegal
substance in, on or upon the Leased Premises.
(z) To pay all liens of contractors, subcontractors, sub -subcontractors, mechanic's, laborers, and materialmen and
all other items of like character and to indemnify Landlord against all legal costs and charges, bond premiums
for release of liens, including all attorney's fees of Landlord incurred in and about the prosecution or defense
of any suit in discharging the Leased Premises and, alternatively, the Project or any part or portion thereof from
any liens, charges, judgments, or encumbrances caused or suffered to be caused, directly or indirectly, by
Tenant, and that all the costs and charges above referred to shall be considered as rent due and shall be
included in any lien for rent
At Tenant's sole expense, Tenant shall procure, maintain and hold available for Landlord's inspection any govemmenfal
license or permit required for the proper and lawful conduct ofTenanes business. Tenant shall not use, or permit the use of, the
Leased Premises in any manner that suits in waste thereof or constitutes a nuisance, nor shall Tenant use, or permit the use of,
the Leased Premises for any illegal purpose. Tenant, at its expense, will comply and will cause its employees, agents and invitees
to comply, with all applicable laws and ordinances and with all applicable rules and regulations of governmental agencies
concerning the use of the Leased Premises.
5.02. Tenant's Responsibility Reaardigg Hazardous Substances.
(a) The term "Hazardous Substances," as used in this Lease, shall include, without limitation, flammables,
explosives, radioactive materials, asbestos, polychlorinated biphenyls (PCBs), chemicals known to cause
cancer or reproductive toxicity, pollutants, contaminants, hazardous wastes, toxic substances or related
materials, petroleum and petroleum products, and substances declared to be hazardous or toxic under any law
or regulation now or hereafter enacted or promulgated by any governmental authority.
(b) Tenant shall not cause or permit to occur.
(i) Any violation of any federal, state, or local law, ordinance, or regulation now or hereafter
enacted, related to environmental conditions on, under, or about the Leased Premises and
Project, arising from Tenant's use or occupancy of the Leased Premises and Common Area,
including, but not limited to, soil and groundwater conditions; or
Lcaye Agreenrenr Page J
(ii) The use, generation, release, manufacture, refining, production, processing, storage, or
disposal of any Hazardous Substance on, under, or about the Leased Premises or Project, or
the transportation to or from the Leased Premises of any Hazardous Substance.
(c) Tenant shall, at Tenant's own expense, comply with all laws, regulations, rules, decrees and administrative
orders regulating the use, generation, storage, transportation, or disposal of Hazardous Substances ("Laws').
Tenant shall, at Tenants own expense; make all submissions to, provide all information required by, and
comply with all requirements of all governmental authorities (the *Authorities") under the Laws. Should any
Authority or any third party demand that a cleanup plan be prepared and that a cleanup be undertaken because
of any deposit, spill, discharge, or other release of Hazardous Substances that occurs during the term of this
Lease, at or from the Leased Premises, which arises at any time and at any place as a result of Tenant's use or
occupancy of the Leased Premises and/or Common Area, then Tenant shall, at Tenant's own expense, prepare
and submit the required plans and all related bonds and other financial assurances; and Tenant shall carry out
all such cleanup plans. Tenant shall promptly provide all information regarding the use, generation, storage,
transportation, or disposal of Hazardous Substances that is requested by Landlord. If Tenant fails to fulfill any
duty imposed under this subparagraph within a reasonable time, Landlord may do so; and in such case, Tenant
shall cooperate with Landlord in order to prepare all documents Landlord deems necessary or appropriate to
determine the applicability of the Laws to the Leased Premises and Project and Tenant's use thereof, and for
compliance therewith, and Tenant shall execute all documents promptly upon Landlord's request. No such
action by Landlord and no attempt made by Landlord to mitigate damages under any Law shall constitute a
waiver of any of Tenants obligations under this subparagraph. Tenants obligations and liabilities under this
subparagraph shall survive the expiration or termination of this Lease.
(d) Tenant shall indemnify, defend, and hold harmless Landlord, the manager of the Project, and their respective
officers, directors, beneficiaries, shareholders, partners, agents, employees, heirs, successors and assigns from
all fines, suits, procedures, claims, and actions of every kind, and all costs associated therewith (including
attorneys' and consultants' fees) arising out of or in any way connected with any deposit, spill, discharge, or
other release of Hazardous Substances that occurs during the term of this Lease, at or from the Leased
Premises, which arises at any time and at any place as a result of Tenant's use or occupancy of the Leased
Premises and/or Common Area, or from Tenant's failure to provide all information, make all submissions, and
take all steps required by all Authorities under the Laws and all other environmental laws. Tenants obligations
and liabilities under this subparagraph shall survive the expiration or termination of this Lease.
ARTICLE VI
6.01. Faxes and Assessments. Landlord shall pay all real estate taxes (both general and special), assessments and
other governmental impositions lawfully created and assessed against the Leased Premises during the term hereof; provided,
however, that Landlord shall have no liability to Tenant for failure to pay such taxes, assessments and other impositions at any
time when Tenant is delinquent in payment of Tenant's Proportionate Share of Landlords Operating Expense. The taxes,
assessments and impositions to which this Section 6.01 refers shall, include, but not be limited to, any and all sales tax, gross
receipts tax, use tax, excise tax or other similar tax imposed or levied against rentals or any other charge or payment required
under this Lease to be made by Tenant which has been imposed or levied on or against the same by any governmental agency
having, or purporting to have, jurisdiction thereover, as well as any and all costs and expenses incurred and/or paid by Landlord
to any person in connection with Landlord's contest of any sums which Landlord is required to pay hereunder. Tenant shall pay
prior to delinquency all taxes and assessments imposed against all equipment, trade fixtures, furnishings and other personal
property of Tenant in, on or about the Leased Premises.
6.02.
(a) Landlord agrees to maintain insurance covering the Project against loss or damage by fire and other casualti;s
included in the so-called "Extended Coverage Endorsement in an amount not less than eighty percent (SOOK)
of the full replacement cost of all improvements thereto, exclusive of foundations and footings. All sums due
and payable by Tenant under the provisions of this Section 6.02(a) shall be due and payable to Landlord upon
demand Landlord, at Landlord's option, shall have the right to obtain business interruption insurance and/or
loss of rental value insurance, including extended coverage endorsement•, in an amount equal to twelve (12)
months' income from all written and oral leases, concessions and occupancies affecting the Project, including
the amount of any share of or contributions by Tenants to the operating expenses of the Project. Finally,
Landlord, at its option, may obtain such other insurance coverages as Landlord, in Landlords discretion, deems
appropriate or as may be required by any lender of Landlord. All cost and expense incurred by Landlord
pursuant to die terns of this Section 6.02(a) shall constitute a part of Landlord's Operating Expense for
purposes of this Lease.
(b) Tenant, at Tenants sole cost and expense, shall maintain during the entire term aLthis Lease (unless otherwise
expressly provided below) the following:
0 Public liability insurance in an amount not less than combs single-h
coverage, with commercially reasonable deductibles, to protect Landlord and Tenant from
any claim arising from the use of the Leased Premises by Tenant or Tenants agents,
employees, subtenants, contractors, guests or invites.
(ii) During the course of any construction, alteration or repair of the Leased Premises by Tenant,
builders completed Value risk insurance against "all risks of physical loss', including
collapse and transit coverage with deductibles not to exceed $1,000.00, in non -reporting
form, covering the total value of work performed and equipment, supplies and materials
Lease Agreement Page
furnished. Said policy of insurance shall contain the "permission to occupy upon completion
of work and occupancy" endorsement.
(iii) Boiler and machinery insurance covering pressure vessels, air tanks, boilers, machinery,
pressure piping, heating, air conditioning and elevator equipment and escalator equipment,
provided that the Leased Premises contain equipment of such nature, and insurance against
loss of occupancy or use arising from any such breakdown, in such amounts as are
reasonably satisfactory to Landlord.
(iv) Such other insurance and in such amounts as may be from time to time required by
Landlord.
(c) All insurance required to be furnished by Tenant under the terms of this Lease shall be issued by companies
acceptable to Landlord, shall name Landlord and such other persons as Landlord may designate as an
additional insured and loss payee, and shall provide that the same may be canceled or modified only upoti thirty
(30) days prior written notice to Landlord. Tenant shall evidence all such insurance coverage by delivering to
Landlord the original copies of all policies or, at Landlord's option, a certificate in lieu thereof issued by the
insurance companies underwriting such risk.
(d) Landlord and Tenant each waive any and every claim which arises or may arise in its favor and against the
other during the term of this Lease for any and all lost of, or damage to, any of its property located within or
upon, or constituting a part of, the Leased Premises, which loss or damage is covered by valid and collectible
fire and extended coverage policies, to the extent that such loss or damage is recoverable thereunder. Inasmuch
as the above mutual waivers will preclude the assignment of any aforesaid claim by way of subrogation (or
otherwise) to an insurance company (or any other person), Landlord and Tenant severally agree immediately
to give each insurance company which has issued to it policies of insurance, written notice of the terms of said
mutual waivers, and to have said insurance policies property endorsed, if necessary, to prevent the invalidation
of such insurance coverages by reason of said waivers.
ARTICLE Vll
7.01, Maintenance. Tenant shall, at its expense, take good care of, repair, maintain and replace the Leased Premises
(including maintaining and replacing the roof, structural elements of improvements, parking, landscaping, windows, plate glass
and doors; heating, ventilation and air conditioning equipment and ducts; electrical, plumbing and all other mechanical equipment
and installations) and keep the same free from waste and nuisance, and shall deliver up the same in a clean and sanitary condition
at the termination of this Lease in good repair and condition, reasonable wear and tear excepted In performing its obligations
hereunder, Tenant shall use materials and labor of kind and quality equal to or better than the original work. Tenant
acknowledges and agrees that Landlord is not obligated to repair, maintain or replace any part of the Leased Promises.
7.02. Utility Services. In addition to all rentals required herein, Tenant shall pay for all utilities of whatever kind
or sort that are used, installed or consumed in or upon the Leased Premises and all water and sewer charges, as and when the
various charges therefor shall become due and payable; and Tenant shall pay any garbage or trash collection fee imposed by
governmental authority or licensee or franchisee. Landlord shall have no liability for any interruption in utility services provided
to the Leased Premises unless such interruption results from the willful misconduct or sole negligence of Landlord
7.03. Alterations. Additions and Improvements Tenant shall not make any alterations, additions or improvements
to the Leased Premises without the prior written consent of Landlord. All alterations, additions or improvements made by Tenant
shall become the property of Landlord at the termination or expiration of this Lease, provided that Tenant, at Tenant's expense,
shall remove the same and repair all damage to the Leased Premises and/or Project caused thereby if landlord so requests. To
the extent that Landlord consents to and Tenant performs or causes to be performed on the Leased Premises any work relating
to the alteration or improvement thereofor addition thereto, Tenant agrees that it will pay, or cause to be paid, all costs of labor,
services and/or materials supplied in the prosecution of any such work and will keep the Leased Premises and Project free and
clear of all mechanic's liens and'other liens on account of work done for Tenant or persons claiming under Tenant Landlord, as
a condition of 6manting its consent to any alteration, addition or improvement, may require that Tenant provide Landlord with
such security as Landlord in Landlords sole judgment, shall deem appropriate to insure that no such mechanic's liens or other
liens shall attach to the Leased Premises. In the event any such lien is filed against the Leased Premises as a result of Tenant s
work, Tenant, at Tenant's sole cost and expense, shall discharge the same within ten (10) days from the date of its tiling; provided,
however, that if Tenant shall desire in good faith to contest any claim of such lien, it shall furnish Landlord with adequate
security, determined in Landlord's sole judgment, to insure that in the event a final judgment establishing the validity or existence
of the lien is entered, it will be promptly paid and satisfied. Without limiting Landlord's other rights under the terms of this Lease,
in the event Tenant, within ten (10) days from the date the lien is filed against the Leased Premises or Project, has not discharged
the same or contested it and posted adequate security with Landlord, as provided herein, Landlord may, but shall not be required
to, pay said claim and any costs. The amount so paid, together with reasonable attorney's fees and other collection expenses
incurred by Landlord in connection therewith, shall be immediately due and owing from Tenant to Landlord. In contracting for
any and all such labor, services, and/or materials, Tenant shall not be acting as an agent of Landlord, and no claim by any person
providing such labor, services, and/or materials shall attach to or otherwise encumber Landlord's interest in the Leased Premises.
7.04. Eguioment and Fixtures. Tenant shall have the right to erect, install, maintain and operate on the Leased
Premises equipment, decorative items, trade and business fixtures.and other personal property used and useful in Tenants
business, provided that in so doing Tenant shall not cause any material damage to any part of the Leased Premises. All trade
fixtures, decorative items, machinery, equipment, shelving and other moveable property and equipment shall not be deemed to
be pan of the Leased Premises but shall remain the property of Tenant and shall be removed by Tenant from the Leased Premises
prior to the termination or expiration hereof; provided that Tenant shall not be entitled to remove any such property at any time
Leuuu Agrrentenr Puge S
Tenant is in default hereunder. Tenant shall repair any damage caused to the Lcascd Premises by such removal and restore the
Leased Premises to its original condition, reasonable wear and tear excepted.
7.05. I tL=. Tenant shall not install signs on or about the Leased Premises except with the prior written consent of
Landlord and pursuant to applicable laws, codes and ordinances. Prior to the termination or expiration hereof, Tenant shall
remove such signs; provided that Tenant shall not be entitled to remove any signs at any time Tenant is in default hereunder. All
such installations and removals shall not injure or deface the improvements and Tenant shall repair any damage caused by such
actions.
7.06. Condition of Prolterty: Disclaimer or Warranties. BY EXECUTION OF THIS AGREEMENT, TENANT
WARRANTS AND REPRESENTS TO LANDLORD THAT TENANT HAS EXAMINED THE LEASED PREMISES; AND
HAS DETERMINED, BASED SOLELY UPON SUCH EXAMINATION AND NO IN ANY WAY IN RELIANCE UPON
ANY WARRANTY OR REPRESENTATION OF LANDLORD, THAT THE LEASED PREMISES ARE SUITABLE FOR
TENANTS INTENDED USE AND THAT THERE ARE NO DEFECTS OR CONDITIONS AFFECTING SUCH
SUITABILITY WHICH ARE EITHER OPEN AND OBVIOUS OR COULD BE DISCOVERED UPON REASONABLE
EXAMINATION OF THE LEASED PREMISES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,
TENANT HEREBY WAIVES AND RELEASES ANY AND ALL WARRANTIES, EITHER EXPRESS OR IMPLIED, AS
TO THE CONDITION OF THE LEASED PREMISES, INCLUDING, BUT NOT LIMITED TO, ALL WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND SUITABILITY FOR TENANTS INTENDED
USE, LANDLORD AND TENANT AGREE THAT TENANTS DUTIES AND OBLIGATIONS HEREUNDER, INCLUDING
THE OBLIGATION TO PAY RENT, SHALL BE INDEPENDENT OF AND NOT CONTINGENT UPON LANDLORD'S
PERFORMANCE OF ANY AND ALL DUTIES AND RESPONSIBILITIES RELATING TO OR ARISING OUT.OF ANY
WARRANTY NOT DISCLAIMED BY LANDLORD UNDER THE TERMS OF THIS PARAGRAPH.
7.07. destruction or Damaee.
(a) If the Leased Premises, or any part thereof, should be destroyed or damaged by fire or other casualty, Tenant
shall immediately deliver written notice thereof to Landlord.
(b) If the Leased Premises should be totally destroyed by fire, tornado or other casualty, or if they should be so
damaged by any such cause so that rebuilding or repairs cannot reasonably be completed within one hundred
eighty (180) days from the date of such damage, or if insurance proceeds actually received by Landlord by
reason of such damage or destruction should, in Landlord's judgment, be insufficient to pay the entire cost of
repairing or rebuilding, then Landlord, by written notice delivered to Tenant, may terminate this Lease effective
ass of the date of such damage.
(c) I% the Leased Premises should be damaged by fire, tornado or other casualty, but not to such an extent that the
rebuilding or repairs cannot reasonably be completed within one hundred eighty (180) days from the date of
such damage, or if Landlord otherwise shall not have elected to terminate this Lease pursuant to Section
7;07(b) hereof, this Lease shall not terminate, but Tenant, at Tenanes sole cost and expense, shall immediately
proceed to repair and rebuild the Leased Premises to at least as good a condition as they were in prior to the
damage or destruction. Landlord agrees to make available to Tenant for such purpose all insurance proceeds
actually received by Landlord by reason of the damage or destruction, such proceeds to be made available at
such time and under such conditions as Landlord shall require.
(d) If the Leased Premises are untenantable in whole or in part following any damage or destruction and this Lease
is not terminated, neither Basic Rent nor any other amounts due hereunder shall abate or be reduced (except
to the extent of any rent loss insurance proceeds received by Landlord).
(e) In the event that this Lease is terminated pursuant to this Section 7.07, Landlord shall receive all insurance
proceeds payable under insurance policies and relating to damage to the Leased Premises. Tenant shall receive
ail proceeds, if any, attributable to the loss of Tenant's equipment, trade and business fixtures, signs and other
personal property which Tenant is permitted to remove from the Leased Premises under this Lease.
ARTICLE VIII
8.01. Default by Landlord. If Landlord shall neglect or fail to perform or observe any of the terms, covenants or
conditions contained in this Lease on its part to be performed or observed within a reasonable time, but in no event less than thirty
(30) days, after written notice of default from Tenant; then Landlord shall be deemed to be in default hereunder. In the event of
Landlord's default, Tenant, as Tenant's sole remedy, may terminate this Lease, Tenant expressly waiving and releasing any and
all other remedies which might otherwise be available to Tenant, whether at law or in equity. It is expressly understood that no
default by Landlord shall constitute consent by Landlord for Tenant to perform or observe any terms, covenants or conditions
at Landlord's expense, or to fail to fully comply with all of Tenant's obligations under the terns of this Lease, including, but not
limited to, payment of rent, Tenant expressly agreeing that Tenant's obligations under this Lease ate independent of any and all
obligations on the part of Landlord.
8.02. Default by Tenant. The following events shall be deemed to be "events of default" by Tenant under this
Lease:
(a) Tenant shall fail to pay any installment of rent on the date that the same is due.
(b) . Tenant shall fail to comply with any term, condition or covenant of this Lease, other than the payment of rent,
and shall not cure such failure within thirty (30) days after written notice thereof from Landlord to Tenant;
provided, however, that in the event the nature of Tenant's failure is such that it reasonably cannot be cured
Lease Agrermeet Pagr 6
within thirty (30) days after written notice from Landlord, Tenant shall not be in default under the terns of this
Lease ifTenant shall commence to cure such failure within thirty (30) days after written notice thereof from
Landlord to Tenant and thereafter shall diligently, in good faith and continuously prosecute such cure to
completion.
(c) Tenant shall become insolvent, or shall make a transfer in fraud of creditors, or shall make an assignment for
the benefit ofcreditom
(d) Tenant shall file a petition under any section of the Bankruptcy Code or under any other similar law or statute
of the United States or any state thereof, or Tenant shall be adjudged bankrupt or insolvent in proceedings
tiled against Tenant and, with respect to any involuntary proceedings filed against Tenant, Tenant shall fail
to dismiss or cause to be vacated such proceeding or any order entered in connection therewith within ninety
(90) days after the filing or entry thereof. .
(e) A receiver or trustee shall be appointed for the Leased Premises or any part thereof and such receiver or trustee
is not discharged or dismissed within ninety (90) days after appointment
(f) Tenant shall remove or attempt to remove, or shall disclose an intention to remove, Tenant's goods and
properties from or out of the Leased Premises other than in the ordinary and usual course of business.
8.03. Remedies of Land to Upon the occurrence of any event of default, Landlord shall have the option to pursue
any one or more of the following remedies without any further notice or demand whatsoever -
(a) Landlord may terminate this Lease. In the event that Landlord shall terminate this Lease, Tenant shall pay to
Landlord, upon demand and in addition to all accrued and unpaid sums owed by Tenant to Landlord hereunder,
an amount equal to all rent which would otherwise be payable for the remainder of the then -current term of
this Lease, with Tenant's Proportionate Share of Landlord's Operating Expense being computed based upon
the then -current Tenants Proportionate Share of Landlord's Operating Expense being paid by Tenant
Landlord and Tenant agree that it would be impossible to calculate the exact amount of damages suffered by
Landlord by reason of Tenant's default, and that the surns described herein constitute a reasonable estimate of
such damages and not a penalty for Tenanrs default.
(b) Without terminating this Lease, and subject to applicable law, Landlord may reenter and take possession of
the Leased Premises and remove all persons and property therefrom, in which event Landlord may, but, except
as otherwise provided by law, shall not be required to, relet the Leased Premises or any part thereof, for all or
any part of the remainder of the then -current term hereof, to such parties and at such rental as Landlord, in
Landlord's judgment, may be able to secure. Should any rental be less than the rental Tenant is obligated to
pay under this Lease, plus the expense of reletting, then Tenant shall pay to Landlord, on a monthly basis, the
amount of any deficiency in the rent. For purposes of this Section 8.03(b), Landlord's expense of reletting shall
include, but not be limited to, any leasing commissions paid by Landlord in connection with the leasing of the
Leased Premises to another tenant, any rental concessions and allowances (whether paid in cash or otherwise)
granted to any new Tenant, and the cost of renovating and/or finishing out the space so that it is suitable for
use by another tenant
(c) Without terminating this Lease, and subject to applicable law. Landlord may enter into and upon the Leased
Premises, and do whatever Tenant is obligated to do under the terms of this Lease, and Tenant shall reimburse
Landlord on demand for any expenses which Landlord may incur in thus effecting compliance with Tenant's
obligations under this Lease, together with interest on all sums paid by Landlord at the maximum legal rate
from the date paid by Landlord to the date reimbursed by Tenant Tenant further agrees that Landlord shall not
be liable for any damages resulting to Tenant from such action.
(d) Without limiting and in addition to Landlord's other remedies hereunder, it is expressly agreed that at any time
Tenant is in default hereunder, Landlord may change all locks on all doors to the Leased Premises and
otherwise exclude Tenant from the Leased Premises. In such case, Landlord shall post on a door of the Leased
Premises a notice stating the name and the address or telephone number of the individual or company from
which new keys may be obtained. Landlord shall not be required to provide the new keys to Tenant except
during Landlord's regular business hours. Anything contained elsewhere in this Lease to the contrary
notwithstanding, Landlord shall not be required to deliver any new keys to Tenant or permit Tenant access to
the Leased Premises until such time as Tenant has cured its default Tenant further agrees that Landlord shall
not be required to provide Tenant access to Tenants personal property contained in the Leased Premises during
any time when Tenant is denied access by reason ofTenant's default
Pursuit of any one remedy by Landlord shall not preclude pursuit of any other remedy provided herein, nor shall pursuit of any
remedy constitute a forfeiture or waiver of any rent due. Landlord or for any damages accruing to Landlord by reason of the
violation of any of the terms, provisions and covenants herein. The remedies set forth herein shall be in addition to, and not in
lieu of, any and all other remedies which are available to Landlord at taw or equity.
8.04. Tenant's Personal Property; Contractual Security Interest. Without limiting Landlord's rights under this
Lease, in the event Tenant shall default hereunder, all of Tenants personal property shall remain on the Leased Premises and,
during any period of default, Landlord shall have the right to take exclusive possession of the same or, at its option, to require
Tenant to remove it. In addition to, and not in lieu of, Landlord's statutory lien, it is expressly agreed that Landlord shall have,
and Tenant hereby grants to Landlord, a contractual lien and security interest in all goods, chattels, inventory, furniture, fixtures,
equipment and/or other personal property of any description belonging to Tenant that is placed in, or becomes a part of, the
Leased Premises, as security for rent due and to become due during the term hereof and for Tenant's performance of all of
Lease Agreement _ Page 7
Tenant's obligations, covenants and conditions hereunder. Tenant shall execute and deliver to Landlord appropriate UCC
Financing Statements as are requested by Landlord from time to time. Upon default by Tenant, Owner may require Tenant to
assemble all or any part of the above -described personal property and make it available to Owner at any place to be designated
by Owner. Expenses of retaking, holding, preparing for sale, selling or the like of the above -described personal property shall
include reasonable attorney's fees and lepl expenses incurred by Landlord. Upon default by Tenant, Landlord may exercise any
and all of the rights and remedies of a secured parry provided under the Texas Business and Commerce Code, as well as any and
all other rights and remedies possessed by Landlord
ARTICLE 1X
9.01. indemnity. Landlord shall not be liable for, and Tenant shall defend and indemnify Landlord from, any claim,
demand, liability, judgment, award, fine, mechanic's lien or other lien, loss, damage, expense, charge or cost of any kind or
character (including attorney's fees and court costs) arising directly or indirectly from the repair, alteration, improvement, use,
occupancy or enjoyment of the Leased Premises or any other portion of the Building or Common Area by Tenant, Tenants
assignees andfor subtenants, and their respective contractors, agents, licensees, or invitees, excluding, however, claims to the
extent resulting from the negligent of Landlord
9.02. Assignment and Subletting. Tenant shall not assign this Lease and/or sublet all or any part of the Leased
Premises without the prior written consent of Landlord. It is expressly agreed that Landlord's prior written consent to any
assignment or subletting shall constitute a condition precedent to the effectiveness of such assignment or subletting, and Landlord
shall not be bound thereby until and unless such consent is given. For purposes of this Lease, an 'assignment' shall be deemed
to include, but not be limited to, the following:
(a) Any absolute assignment of some or all of Tenant's interest, rights and duties in the Lease and the Leased
Premises, including Tenants right to use, occupy and possess the premises, or any part thereof, whether
voluntary, involuntary or by operation of law;
(b) Any conditional, contingent or deferred assignment, sublease or conveyance by Tenant of some or all of
Tenant's interest, rights or duties in the Lease or the Leased Premises, including Tenants right to use, occupy
or possess the Leased Premises, or any part thereof, including, without limitation, any mortgage, deed of trust,
pledge, hypothecation, lien, franchise, license, concession, or other security arrangement;
(a) If Tenant is a corporation, limited liability company, partnership or other legal entity, the transfer by sale,
assignment, death, incompetency, mortgage, deed of trust, trust, operation of law, or otherwise, of any shares,
membership interests, voting rights or ownership interests which would result in a change in the identity of the
person or persons exercising, or who may exercise, effective control ofTenant, unless such change results from
the trading of shares listed on a recognized public stock exchange and such trading is not for the purpose of
acquiring effective control of Tenant.
9.03. Ins2e tc ions Tenant shall permit Landlord and its agents to enter into and upon the Leased Premises at all
reasonable times for the purpose of inspecting the same, for the purpose of maintaining or making repairs or alterations required
of Landlord, and for the purpose of exercising Landlord's rights in the event of Tenant's default hereunder. Landlord may place
"for lease" or "for sale" signs in and about the Leased Premises and show the same to prospective Tenants during the last one
hundred eighty (180) days of the lease term.
9.04. Condemnation
(a) If, during the term of this Lease, all or a substantial part of the Leased Premises should be taken for any public
or quasi -public use under any governmental law, ordinance or regulation or by right of eminent domain, or
shall be sold to the condemning authority under threat of condemnation, this Lease shall terminate and the rent
shall be abated during the unexpired portion of this Lease, effective as of the date of taking of said premises
by the condemning authority.
(b) If less than a substantial part of the Leased Premises shall be taken for any public or quasi -public use under
any governmental law, ordinance or regulation, or by right of eminent domain, or should be sold to the
condemning authority under threat of condemnation, this Lease shall not terminate but Landlord shall restore
and reconstruct the Leased Premises provided such restoration and reconstruction shall make the same
tenantable and suitable for the uses for which the Leased Premises are leased hereunder and provided further
that Landlord shall not be required to expend any sums in execs of condemnation proceeds actually received
by Landlord. All minimum rent payable hereunder shall be abated, either in whole or in part, as may be
necessary and equitable during any period when such restoration and construction is in progress, and, to the
extent the same relate to the unexpired portion of this Lease, shall be adjusted equitably for all periods
thereafter,
(c) For purposes of this Section 9.04, it shall be deemed that a substantial part of the Leased Premises has been
taken if in Landlord's judgment the remaining portions of the Leased Premises, after performing any repairs
and rebuilding required to the same by reason of the taking, reasonably may not be used by Tenant for the
purposes for which the same are let
(d) Any other provisions of this Section 9.04 to the contrary notwithstanding, in the event the condemnation
proceeds actually received by Landlord shall be insufficient to pay all costs and expenses which may be
incurred in connection with the repair and rebuilding of the remaining portion of the Leased Premises,
Lemr.lgreeun:at Page 8
Landlord may terminate this Cease by written notice to Tenant, with such termination to be effective as of the
date of taking.
(e) Landlord shall be entitled to receive the entire condemnation award for the taking of all. real property and
Icaschold interests in the Leased Premises. Tenants right to receive a condemnation award for the taking of
its merchandise, personal property, goodwill, relocation expenses and/or interests in other than the real
property taken shall not be affected in any manner by the provisions of this paragraph, provided that
Tenant's award does not reduce or affect Landlord's award.
9.05. Subordination of Lease Estoppel Certiiitates Tenant agrees that this Lease shall be subordinate at all times
to ground or underlying Leases and to the lien of any mortgages, deeds of trust, and other encumbrances now or hermfter
affecting the Leased Premises, or Landlord's interest or estate therein, and Tenant agrees upon demand to execute such further
instruments subordinating this Lease as Landlord may request. At any time and from time to tine, on not more than five (5) days'
written notice from Landlord, Tenant shall execute and deliver to Landlord a written estoppel certificate in a form acceptable to
Landlord. Tenant's failure to execute and deliver the estoppel certificate within said five (5) day period shall be deemed to make
conclusive and binding upon Tenant the statements contained in the estoppel certificate as true and correct, without exception.
Unless Tenant shall have notified Landlord in writing within said five (5) day period of any qualifications Tenant may have to
the statements in the estoppel certificate, Landlord and anyone participating with Landlord in the sale or mortgage of the Leased
Premises shall have the right to rely on the accuracy of such statements.
9.06. Surrender. Tenant shall, upon the termination of this Lease, surrender the Leased Premises in good repair
and in a broom clean and sanitary condition, reasonable wear and tear, Landlord's repairs and damage by condemnation or by
fire, tornado or other casualty not due to the negligence or willful misconduct of Tenant or Tenant's employees, agents,
subtenants, contractors, guests or invitees excepted
9.07. Hotdine Overby Tenan In the event Tenant remains in possession of the Leased Premises after expiration
of this tease and without the execution of a new lease, such hold -over shall constitute and be construed as a tenancy from
month -to -month only, upon the same terms, and conditions contained herein, except that the minimum rent shall be twice the
minimum rent paid for the last month of the term hereof: provided that Landlord, by the terns hereof, is not deemed to consent
to any such holdover by Tenant and may exercise all rights provided by law to remove Tenant from the Leased Premises.
9.08. Notices and Addresses Except where otherwise expressly provided herein, all notices, demands and
communications provided to be given under this Lease shall be in writing and may be given personalty, by overnight delivery,
or by certified or registered mail, addressed to the proper party, at the address for that party shown in the Fundamental Lease
Provisions. Notice shall be deemed received upon deposit of such notice in the United States mail, certified mail, return receipt
requested, addressed as aforesaid, or when actually received if sent other than by mail. Either party may change its address upon
fifteen (15) days' prior written notice to the other party hereunder.
9.09. Parties Bound. This Lease shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, legal representatives, successors, and assigns where permitted by this Lease.
9.10. Applicable Law. This Lease shall be construed under and in accordance with the laws of the state of Texas,
and all obligations of the parties hereunder are performable in Lubbock County, Texas.
9.11. Legal Construction. In case any one or more of the provisions contained in this Lease shalt for any reason
be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any
other provision hereof and this Lease shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein.
9.12. Prior Agreements Superseded. This Lease constitutes the sole and only agreement of the parties hereto and
supersedes any prior understandings or written or oral agreements between the parties with respect to the subject matter within.
9.13. Amendment No amendment, modification, or alteration of the terms hereof shall be binding unless the same
be in writing and duly executed by the parties hereto.
9.14. Waiver of Default. No waiver by the parties hereto of any default or breach of any term, condition, or
covenant of this Lease shall be deemed to be waiver of any breach of the same or any other term, condition, or covenant contained
herein.
9.15. gltorney's Fees. In the event Landlord is required to employ attorneys to protect or enforce its rights
hereunder, Tenant agrees to pay Landlord's reasonable attorney's fees.
9.16. Force Majeure. Whenever a period of time is herein prescribed for action to betaken by Landlord or Tenant,
such party shall not be liable or responsible for, and there shall be excluded from the computation of any such period of time,
any delays due to Force Majeure.
9.17. Time of the Essence. Time is of the essence to this Agreement.
9.18. sh' it . All exhibits referenced herein and attached hereto are made a part hereof the same as if set forth
verbatim herein.
IN WITNESS WHEREOF, the undersigned Landlord and Tenant hereto execute this Lease as of the date first above
written.
(,•urc.4grrrrrrenr Page 9
LANDLORD:
BEMOV E, LTD., a Texas limited partnership
By:. BEMOVE GP, L.L.C., a Texas limited liability
company, General Partner
By: MODULE TRUCK SYS S, INC., a
Texas eo
7
B.
Printed `
Title: '
TENANT:
VERTICAL TURBINE SPECIALISTS, INC., a Texas
corporatio , n
Printed Na tN
Title:
Lwse Agreenrerrr Pugs /U
EXHIBIT "B"
Description
West 440 feet of Tract C Breedlove Addition to the City of Lubbock, Texas
EXHIBIT "C"
GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT
FOR SELECTED TAXING UNITS CONTAINED WITHIN
LUBBOCK COUNTY
SECTION I. General Purpose:
The Affected Jurisdictions located wholly within or partially within the County of Lubbock, Texas,
are committed to the promotion of high quality development in all parts of Lubbock County, Texas;
and to an ongoing improvement in the quality of life for the citizens residing within the Affected
Jurisdictions. The Affected Jurisdictions recognize that these objectives are generally served by
enhancement and expansion of the local economy. The Affected Jurisdictions will, on a case by
case basis, give consideration to providing tax abatement, as authorized by V.T.C.A., Tax Code,
Chapter 312, as stimulation for economic development within the Affected Jurisdictions. It is the
policy of the Affected Jurisdictions that said consideration will be provided in accordance with the
guidelines and criteria herein set forth and in conformity with the Tax Code.
Nothing contained herein shall imply, suggest or be understood to mean THAT the Affected
Jurisdictions are under any obligation to provide tax abatement to any applicant and attention is
called to V.T.C.A., Tax Code, Section 312.002(d). With the above rights reserved all applications
for tax abatement will be considered on a case by case basis.
SECTION II. Definitions:
As used within these guidelines and criteria, the following words or phrases shall have the
following meaning:
1. Abatement of Taxes: To exempt from ad valorem taxation all or part of the value of
certain Improvements placed on land located in a reinvestment zone designated for
economic development purposes as of the date specified in the Tax Abatement
Agreement for a period of time not to exceed ten (10) years.
2. Affected Jurisdiction: The County of Lubbock and City of Lubbock.
3. Abatement Agreement: (1) A contract between a property owner and an Affected
Jurisdiction for the abatement of taxes on qualified property located within the
reinvestment zone; or, (2) a contract for the abatement of taxes between an Affected
Jurisdiction and a certified air carrier who owns or leases Real Property located within
the reinvestment zone or Personal Property or both as authorized by V.T.C.A., Tax
Code, Section 312.204(e)
4. Base Year Value: The assessed value of property eligible for tax abatement as of
January 1 preceding the execution of an Abatement Agreement as herein defined.
Distribution Center Facility: A building or structure including Tangible Personal
Property used or to be used primarily to receive, store, service or distribute goods or
materials.
6. Expansion of Existing Facilities or Structures: The addition of buildings,
structures, machinery or equipment to a Facility.
7. Existing Facility or Structure: A facility as of the date of execution of the Tax
Abatement Agreement, located in or on Real Property eligible for tax abatement.
2003 Industrial Guidelines
Amended December 16, 2004
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 2
8. Facility: The improvements made to Real Property eligible for tax abatement and
including the building or structure erected on such Real Property and/or any Tangible
Personal Property to be located in or on such property.
9. Improvements to Real Property or Improvements: Shall mean the construction,
addition to, structural upgrading of, replacement of, or completion of any facility
located upon, or to be located upon, Real Property, as herein defined, or any Tangible
Personal Property placed in or on said Real Property.
10. Manufacturing Facility: A Facility which is or will be used for the primary purpose of
the production of goods or materials or the processing or change of goods or
materials to a finished product.
11. Modernization/Renovation of Existing Facilities: The replacement or upgrading of
existing facilities.
12. New Facility: The construction of a Facility on previously undeveloped real property
eligible for tax abatement,
13. New Permanent Job: A new employment position created by a business that has
provided employment to an employee of at least 1,820 hours annually and intended to
be an employment position that exists during the life of the abatement.
14. Other Basic Industry: A Facility other than a distribution center facility, a research
facility, a regional service facility or a manufacturing facility which produces goods or
services or which creates new or expanded job opportunities and services a market
of which 50% of revenues come from outside of Lubbock County, Texas.
15. Owner: The record title owner of Real Property or the legal owner of Tangible
Personal Property. In the case of land leased from an Affected Jurisdiction or
buildings leased from a private party or tax exempt property, the lessee shall be
deemed the owner of such leased property together with all improvements and
Tangible Personal Property located thereon.
16. Productive Life: The number of years a Facility is expected to be in service.
17. Real Property: Land on which Improvements are to be made or fixtures placed.
18. Regional Services Facility: A Facility, the primary purpose of which is to service or
repair goods or materials and which creates job opportunities within the Affected
Jurisdictions.
19. Reinvestment Zone: Real Property designated as a Reinvestment Zone under the
provisions of V.T.C.A., Tax Code, Section 312.202.
20. Research Facility: A Facility used or to be used primarily for research or
experimentation to improve or develop new goods and/or services or to improve or
develop the production process for such goods and/or services.
21. Tangible Personal Property: Any Personal Property, not otherwise defined herein
and which is necessary for the proper operation of any type of Facility.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 3
SECTION III. Intent of Criteria and Guidelines:
The Intent of the criteria and guidelines, as herein set forth, is to establish the minimum standards
which an applicant for tax abatement must meet in order to be considered for such status by the
Affected Jurisdictions.
SECTION IV. Criteria and Guidelines for Tax Abatement:
Any type of Facility will be eligible for tax abatement consideration provided such Facility meets
the following guidelines and criteria:
1. To qualify for Tax Abatement, the company must meet both of the following criteria:
a) The modernization or expansion of an existing facility of any type as herein
defined or construction of a new facility of any type as herein defined.
b) Producer, manufacturer or distributor of goods and services of which 50 percent
or more are distributed outside of Lubbock County.
2. In addition to the aforementioned, the taxing jurisdiction will consider abatement only
if the company meets one of the following criteria:
a) One of the following target industries:
i) Electronics/Electrical/Assembly: Manufacturing: Semiconductor
Fabrication.
ii) Value-added Agricultural Production including Food Processing and
Machinery
iii) Med Tech Research/Manufacturing/Assembly
iv) Aviation/Avionics Production/Rehab
v) Warehouse/Distribution
vi) Corporate Headquarters of a Regional/National Service Center
b) The project is not included as a target industry, but has the potential of generating
additional significant economic development opportunities to Lubbock
3. The company must meet one of the following criteria:
a) The project will add at least $1 million in real estate assessed valuation, or $2
million of personal property assessed valuation, or 25 new permanent jobs if the
facility is a new company to Lubbock.
b) The project will add at least $500,000 in real estate assessed valuation, or $1
million in personal property assessed valuation, or 20 new permanent jobs if the
facility is a modernization or expansion of an existing company that has
operated in Lubbock for five or more years.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 4
4. New or existing facilities,of any type herein defined, located in a reinvestment zone or
upon Real Property eligible for such status will be eligible for consideration for tax
abatement status provided that all other criteria and guidelines are satisfied
5. Improvements to Real Property are eligible for tax abatement status.
& The following types of Property shall be ineligible for tax abatement status and shall
be fully taxed.
a) Real Property;
b) inventories or supplies;
C) tools;
d) furnishings and other forms of movable personal property;
e) vehicles;
f) aircraft;
g) housing;
h) boats;
i) hotel accommodations;
j) motel accommodations;
k) retail businesses;
1) property owned by the State of Texas or any State agency; and,
m) property owned or leased by a member of the affected Jurisdiction that did
not have an active tax abatement in place before they became a member of
the governing body or commission.
7. In order for a Facility to qualify for abatement, the following conditions must apply:
a) The owner or leaseholder of real property must make eligible improvements
to the real property; and,
b) In the case of lessees, the leaseholder must have a lease commitment of at
least five (5) years.
c) Facilities located within the certificated territory of the City's municipally
owned electric utility, Lubbock Power and Light (LP&L) must utilize LP&L for
electrical services during the term of the abatement, so long as LP&L's rates
are competitive on a state-wide basis.
8. In reinvestment zones, the amount and term of abatement shall be determined on a
case by case basis, however, in no event shall taxes be abated for a term in excess
of ten (10) years. The amount of the taxable value of Improvements to be abated and
the term of the abatement shall be determined by the municipality in all cases where
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 5
the property for which tax abatement is applied for is within the City limits of the City
or by the County of Lubbock in all cases where the property for which tax abatement
is applied for is outside of the City limits of a municipality, but within the County of
Lubbock, except that a reinvestment zone that is a state enterprise zone is
designated for the same period as a state enterprise zone as provided by Chapter
2303, Government Code. The authority of all other taxing units shall be as set forth in
V.T.C.A., Tax Code, Section 312.206.
In enterprise zones, the governing body of each taxing jurisdiction may execute a
written agreement with the owner of the property. The agreement may, but is not
required to, contain terms that are identical to those contained in the agreement with
the municipality, county, or both, whichever applies, and the only terms for the
agreement that may vary are the portion of the property that is to be exempt from
taxation under the agreement and the duration of the agreement.
9. No property shall be eligible for tax abatement unless such property is located in a
reinvestment zone in accordance with V.T.C.A., Tax Code, Section 312.202 and the
tax abatement application is filed with the taxing jurisdiction before construction
begins.
10. Notwithstanding any of the requirements set forth in Section IV Subsection 3, the
governing body of an Affected Jurisdiction upon the affirmative vote of a three -fourths
(3/4) of its members may vary any of the above requirements when variation is
demonstrated by the applicant for Tax Abatement that variation is in the best interest
of the Affected Jurisdiction to do so and will enhance the economic development of
the Affected Jurisdiction. By way of example only and not by limitation the governing
body of an Affected Jurisdiction may consider the following or similar terms in
determining whether a variance shall be granted:
a) That the increase in productivity of the Facility will be substantial and hence
directly benefit the economy.
b) That the increase of goods or services produced by the Facility will be substantial
and directly benefit the economy.
c) That the employment maintained at the Facility will be increased.
d) That the waiver of the requirement will contribute and provide for the retention of
existing jobs within the Affected Jurisdiction.
e) That the applicant for tax abatement has demonstrated that if tax abatement is
granted to his Facility even though his Facility will not employ additional personnel
THAT nevertheless due to the existence of said Facility new jobs will be created
as a direct result of his Facility in other facilities located within the Affected
Jurisdiction.
f) Any other evidence tending to show a direct economic benefit to the Affected
Jurisdiction.
11. Taxability:
a) The portion of the value of Improvements to be abated shall be abated in
accordance with the terms and provisions of a Tax Abatement Agreement
executed between the Affected Jurisdiction and the owner of the Real Property
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 6
and/or Tangible Personal Property, (which agreement shall be) in accord with the
provisions of V.T.C.A., Tax Code, Section 312.205.
b) All ineligible property, if otherwise taxable as herein described, shall be fully
taxed.
12. The governing body of each Affected Jurisdiction shall have total discretion as to
whether tax abatement is to be granted. Such discretion, as herein retained, shall be
exercised on a case by case basis. The adoption of these guidelines and criteria by
the governing body of an Affected Jurisdiction does not:
a) Limit the discretion of the governing body to decide whether to enter into a
specific tax abatement agreement;
b) Limit the discretion of the governing body to delegate to its employees the
authority to determine whether or not the governing body should consider a
particular application or request for tax abatement; or,
c) Create any property, contract, or other legal right in any person to have the
governing body consider or grant a specific application or request for tax
abatement.
13. The burden to demonstrate that an application for tax abatement should be granted
shall be upon the applicant. Each Affected Jurisdiction to which the application has
been directed shall have full authority to request any additional information from the
applicant that the governing body of such Affected Jurisdiction deems necessary to
assist it in considering such application.
SECTION V. Criteria and Guidelines for Creation of Reinvestment Zone:
1. No Property shall be eligible for tax abatement unless such property is located in a
reinvestment zone designated as such in accordance with V.T.C.A., Tax Code,
Section 312.202. To be designated as a reinvestment zone an area must meet one
of the following:
a) Substantially arrest or impair the sound growth of the municipality or county
creating the zone, retard the provision of housing accommodations, or constitute
an economic or social liability and be a menace to the public health, safety,
morals, or welfare in its present condition and use because of the presence of:
1. a substantial number of substandard, slum, deteriorated, or deteriorating
structures;
2. the predominance of defective or inadequate sidewalks or streets;
3. faulty size, adequacy, accessibility or usefulness of lots;
4. unsanitary or unsafe conditions;
5. the deterioration of site or other improvements;
6. tax or special assessment delinquency exceeding the fair value of the land;
7. defective or unusual conditions of title;
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 7
8. conditions that endanger life or property by fire or other cause; or,
9. any combination of these factors;
a) Be predominantly open and, because of obsolete platting, deterioration of
structures or site improvements, or other factors, substantially impair or
arrest the sound growth of the municipality;
b) Be in a federally assisted new community located in a home rule
municipality or in an area immediately adjacent to a federally assisted
new community located in a home rule municipality;
c) Be located entirely in an area that meets the requirements for federal
assistance under Section 119 of the Housing and Community
Development Act of 1974 (42 U.S.C. Section 5318);
d) Encompass signs, billboards, or other outdoor advertising structures
designated by the governing body of the municipality for relocation,
reconstruction, or removal for the purpose of enhancing the physical
environment of the municipality, which the legislature declares to be a
public purpose; or,
e) Be reasonably likely as a result of the designation to contribute to the
retention or expansion of . primary employment or to attract major
investment in the zone that would be a benefit to the property and that
would contribute to the economic development of the municipality.
2. For purposes of this Section, federally assisted new community is a federally assisted
area:
a) That has received or will receive assistance in the form of loan guarantees under
Title X of the National Housing Act (12 U.S.C., Section 1749aa et seq); and,
b) A portion of which has received grants under Section 107 (a)(1) of the Housing
and Community Development Act of 1974, as amended.
3. The governing body of a municipality, as required by Section 312.201, or a county, as
required by V.T.C.A., Tax Code, Section 312.401, shall hold a public hearing on the
designation of an area within its jurisdiction as a reinvestment zone. The burden shall
be on the owner of the property sought to be included in the zone or applicant for the
creation of the reinvestment zone to establish the following:
a) That the requirements of Subsection 1 of this Section have been met.
b) That the improvements sought are feasible and practical.
4. No later than the seventh day before the date set for the above public hearing notice
of such hearing shall be:
a) Published in a newspaper having general circulation in the Affected Jurisdiction.
b) Delivered in writing to the presiding officer of the governing body of each taxing
unit that includes in its boundaries Real Property that is to be included in the
reinvestment zone.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 8
5. At the public hearing above described in Subsection 3 above, any interested person is
entitled to speak and present evidence for or against the designation of such
reinvestment zone.
6. At the conclusion of the hearing described in Subparagraph 3 above, the governing
body shall enter its findings as follows:
a) That the applicant or owner has or has not met his burden as hereinabove set
forth, and/or,
b) That the improvements sought are or are not feasible and practical.
c) That the proposed improvements sought will or will not be a benefit to the land to
be included in the reinvestment zone and to the Affected Jurisdiction after the
expiration of an agreement entered into under V.T.C.A., Tax Code, Section
312.204.
7. An application for the creation of a reinvestment zone shall not be granted unless the
Affected Jurisdiction considering such application enters affirmative findings to
Subparagraphs a, b, and c of Subsection 6 above set forth.
8. At the conclusion of the public hearing herein required and upon the affirmative
finding of the governing body as required by Subsection 7 above set forth, the
governing body may designate a reinvestment zone in accordance with the provisions
of V.T.C.A., Tax Code, Sections 312.201 or 312.401, whichever Section shall be
applicable under the premises.
The designation of a reinvestment zone expires five years after the date of the
designation and may be renewed for periods not to exceed five years, except that a
reinvestment zone that is a state enterprise zone is designated for the same period as
a state enterprise zone as provided by Chapter 2303, Government Code. The
expiration of the designation does not affect an existing tax abatement agreement
made in accordance with V.T.C.A., Tax Code, Section 312.201 through Section
312.209.
10. Designation of an area as an enterprise zone under the Texas Enterprise Zone Act,
Chapter 2303, Subchapter C, Texas Government Code, constitutes designation of
the area as a reinvestment zone under Subchapter B of the Property Redevelopment
and Tax Abatement Act without further hearing or other procedural requirements
other than those provided by the Texas Enterprise Zone Act, Chapter 2303,
Subchapter C, Texas Government Code.
SECTION VI. Tax Abatement Agreement:
1. After the creation of a reinvestment zone as hereinabove authorized a Tax Abatement
Agreement may be executed between the owner and any Affected Jurisdiction. A
Tax Abatement Agreement shall:
a) Establish and set forth the Base Year assessed value of the property for which
tax abatement is sought.
b) Provide that the taxes paid on the base year assessed value shall not be abated
as a result of the execution of said Tax Abatement Agreement.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 9
c) Provide that ineligible property as subscribed in Section IV, Subsection 6,
hereinabove shall be fully taxed.
d) Provide for the exemption of improvements in each year covered by the
agreement only to the extent the value of such Improvements for each such year
exceeds the value for the year in which the agreement is executed.
e) Fully describe and list the kind, number and location of all of the improvements to
be made in or on the Real Property.
f) Set forth the estimated value of all improvements to be made in or on the Real
Property.
g) Clearly provide that tax abatement shall be granted only to the extent:
1. The Improvements to Real Property increase the value of the Real Property
for the year in which the Tax Abatement Agreement is executed; and,
2. That the Tangible Personal Property improvements to Real Property were not
located on the Real Property prior to the execution of the Tax Abatement
Agreement.
h) Provide for the portion of the value of the improvements to Real Property of
improvements to be abated. This determination is to be made consistent with the
provisions of Section IV, Subsection 6, of these guidelines and criteria as
hereinabove set forth.
i) Provide for the commencement date and the termination date. In no event shall
said dates exceed a period of ten years.
j) Describe the type and proposed use of the improvements to Real Property or
improvements including:
1. The type of facility.
2. Whether the improvements are for a new facility, modernization of a facility,
or expansion of a facility.
3. The nature of the construction, proposed time table of completion, a map or
drawings of the improvements above mentioned.
4. The amount of investment and the commitment for the creation of new jobs.
5. A list containing the kind, number and location of all proposed Improvements.
6. Any other information required by the Affected Jurisdiction.
k) Provide a legal description of the Real Property upon which improvements are to
be made.
1) Provide access to and authorize inspection of the Real Property or improvements
by employees of the Affected Jurisdiction, who have executed a Tax Abatement
Agreement with owner to insure improvements are made according to the
specifications and conditions of the Tax Abatement Agreement.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 10
m) Provide for the limitation of the uses of the Real Property or improvements
consistent with the general purpose of encouraging development or
redevelopment of the zone during the period covered by the Tax Abatement
Agreement.
n) Provide the contractual obligations in the event of default by owner, violation of
the terms or conditions by owner, recapturing property tax revenue in the event
owner defaults or otherwise fails to make improvements as provided in said Tax
Abatement Agreement, and any other provision as may be required or authorized
by State Law.
o) Contain each term agreed to by the owner of the property.
p) Require the owner of the property to certify annually to the governing body of
each taxing unit that the owner is in compliance with each applicable term of the
agreement.
q) Provide that the governing body of the municipality may cancel or modify the
agreement if the property owner fails to comply with the agreement.
2. Not later than the seventh day before a municipality or the County of Lubbock(as
required by V.T.C.A., Tax Code, Section 312.2041 or Section 312.402) enters into an
agreement for tax abatement under V.T.C.A., Tax Code, Section 312.204, the
governing body of a municipality or a designated officer or employee thereof or the
governing body of the county of Lubbock or a designated officer or employee thereof
shall deliver to the presiding officer of the governing body of each of the taxing units in
which the property to be subject to the agreement is located, a written notice that the
municipality or the County of Lubbock as the case may be, intends to enter into the
agreement. The notice must include a copy of the proposed Tax Abatement
Agreement.
3. A notice, as above described in Subparagraph 2, is presumed delivered when placed
in the mail, postage paid and properly addressed to the appropriate presiding officer.
A notice properly addressed and sent by registered or certified mail for which a return
receipt is received by the sender is considered to have been delivered to the
addressee.
4. Failure to deliver the notice does not affect the validity of the agreement.
SECTION VII. Application:
Any present owner of taxable property located within an Affected Jurisdiction may
apply for tax abatement by filing an application with the county of Lubbock, when the
Real Property or Tangible Personal Property for which abatement is sought is located
within the County of Lubbock but outside of the City limits of any City or with the
appropriate City when the Real Property or Tangible Personal Property for which
abatement is sought is located within the City limits of a municipality located wholly or
partially within Lubbock County.
2. The application shall consist of a completed application form accompanied by:
a) A general description of the improvements to be undertaken.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 11
b) A descriptive list of the improvements for which tax abatement is requested.
c) A list of the kind, number and location of all proposed improvements of the Real
Property Facility or Existing Facility.
d) A 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.
e) A list of any and all Tangible Personal Property presently existing on the Real
Property or located in an existing facility.
f) A proposed time schedule for undertaking and completing the proposed
improvements.
g) A general description stating whether the proposed improvements are in
connection with:
1. the modernization of a facility (of any type herein defined); or,
2. construction of a new facility (of any type herein defined); or,
3. expansion of a facility (of any type herein defined); or,
4. any combination of the above.
h) A statement of the additional value to the Real Property or Facility as a result of
the proposed improvements.
i) A statement of the assessed value of the Real Property, Facility or Existing
Facility for the Base Year.
j) Information concerning the number of new jobs that will be created or information
concerning the number of existing jobs to be retained as result of the
improvements undertaken.
k) Any other information which the Affected Jurisdiction, to which the application has
been directed, deems appropriate for evaluating the financial capacity of the
applicant and compatibility of the proposed improvements with these guidelines
and criteria.
1) Information that is provided to an Affected Jurisdiction in connection with an
application or request for tax abatement and which describes the specific
processes or business activity to be conducted or the equipment or other property
to be located on the property for which tax abatement is sought is confidential and
not subject to public disclosure until the Tax Abatement Agreement is executed.
Information in the custody of an Affected Jurisdiction after the agreement is
executed is not confidential. (V.T.C.A., Tax Code, Section 312.003).
m) The Affected Jurisdiction to whom the application for tax abatement has been
directed shall determine if the property described in said application is within a
designated reinvestment zone. If the Affected Jurisdiction determines that the
property described is not within a current reinvestment zone then they shall so
notify the applicant and said application shall then be considered both as an
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 12
application for the creation of a reinvestment zone and a request for tax
abatement to be effective after the zone is created.
SECTION Vlll. Default Options
In the event that the applicant, owner or lessee has entered into a tax abatement
agreement to make improvements as defined in Section IV.2 above, but fails to undertake
or complete such improvements; fails to create all or a portion of the new jobs provided by
the Tax Abatement Agreement; or is in default of any of the terms or conditions contained
in the Tax Abatement Agreement; then in such event the Affected Jurisdiction to whom
the application for tax abatements 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 the applicant
owner, or lessee fails to demonstrate that he is taking affirmative action to cure his failure,
the Affected Jurisdiction shall have three options:
(a) The Affected Jurisdiction may renegotiate the Agreement with the applicant,
owner or lessee, in which case the current Guidelines and Criteria Governing Tax
Abatement for Commercial Projects in Designated Enterprise Zones shall apply
to the new Agreement; or
(b) The Affected Jurisdiction may determine that good cause exists to cancel the
Agreement and all abatement of taxes shall terminate immediately; or
(c) The Affected Jurisdiction may terminate the Agreement and recapture taxes
abated under Section VIII. Recapture.
2. In any of the three options in subparagraph 1 above, the Affected Jurisdiction to which the
application for tax abatement was directed shall determine whether default has occurred
by the applicant, owner or lessee in the terms and conditions of the Tax Abatement
Agreement and shall so notify all other Affected Jurisdictions. Cancellation or termination
of the Tax Abatement Agreement by the Affected Jurisdiction to which the application for
tax abatement was directed shall constitute simultaneous action to all Tax Abatement
Agreements of all other Affected Jurisdictions.
SECTION /X. Recapture
In the event that any type of facility, (as defined in Section II, Subparagraphs 5, 6, 7,
8, 10, 11, 12, 14, 18, 20) is completed and begins producing goods or services, but
subsequently discontinues producing goods or services for any reason, excepting fire,
explosion or other casualty or accident or natural disaster or other event beyond the
reasonable control of applicant or owner for a period of 180 days during the term of a
tax abatement agreement, then in such even 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 31 st 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 Jurisdiction to who the application
for tax abatement was directed that the discontinuance of producing goods or
services was as a result of fire, explosion, or other casualty or accident of natural
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 13
disaster or other event beyond the control of applicant or owner. In the event that
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 vents 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 terminate and the Abatement of
all 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 one year time period, hereinabove mentioned, shall
commence upon written notification 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 or fails to create all or a portion of the
number of new jobs provided by the Tax Abatement Agreement, 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 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.
3. In the event that the Affected Jurisdiction to whom application for tax abatement was
directed determines that the applicant or owner is in default of any of the terms or
conditions contained in the Tax Abatement Agreement, then in such even the
Affected Jurisdiction, shall give the applicant or owner sixty (60) days written notice to
cure such default. In the event such default is not cured to the satisfaction 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 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.
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 even 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.
5. In the even that the applicant or owner, who has executed a tax abatement
agreement with any Affected Jurisdiction, relocates the business for which tax
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 14
abatement has been granted, to a location outside of the designated reinvestment
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 termination 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 Subsection Vill 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 Agreement 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.
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. Termination of the Tax Abatement Agreement by the Affected
Jurisdiction to which the application for tax abatement was directed shall constitute
simultaneous termination of all Tax Abatement Agreements of all other Affected
Jurisdictions.
8. In the event that a tax abatement agreement is terminated for any reason what so
ever and taxes are not paid within the time period herein specified, then in such
event, the provisions of V.T.C.A., Tax Code, Section 33.01 will apply.
SECTION X. Miscellaneous:
1. Any notice required to be given by these criteria or guidelines shall be given in the
following manner:
a) To the owner or applicant: written notice shall be sent to the address appearing
on the Tax Abatement Agreement.
b) To an Affected Jurisdiction: written notice shall be sent to the address appearing
on the Tax Abatement Agreement.
2. The Chief Appraiser of the Lubbock Central Appraisal District shall annually assess
the Real and Personal Property comprising the reinvestment zone. Each year, the
applicant or owner receiving tax abatement shall furnish the chief Appraiser with such
information as may be necessary for the abatement. Once value has been
established, the Chief Appraiser shall notify the Affected Jurisdictions which levy
taxes of the amount of assessment.
3. Upon the completion of improvements made to any type of Facility as set forth in
Section Vill, Subparagraph 1 of these criteria and guidelines a designated employee
or employees of any Affected Jurisdiction having executed a tax abatement
agreement with applicant or owner shall have access to the Facility to insure
compliance with the Tax Abatement Agreement.
Industrial Tax Abatement Guidelines
Amended December 16, 2004
Page 15
4. A tax abatement agreement may be assigned to a new owner but only after written
consent has been obtained from all Affected Jurisdictions which have executed such
an agreement with the applicant or owner.
5. These guidelines and criteria are effective upon the date of their adoption by an
Affected Jurisdiction and shall remain in force for two years. At the end of the two
year period these guidelines and criteria may be readopted, modified, amended or
rewritten as the conditions may warrant.
6. Each Affected Jurisdiction shall determine whether or not said Affected Jurisdiction
elects to become eligible to participate in tax abatement. In the even the Affected
Jurisdiction elects by resolution to become eligible to participate in tax abatement,
then such Affected Jurisdiction shall adopt these guidelines and criteria by separate
resolution forwarding a copy of both resolutions to all other Affected Jurisdictions.
In the event of a conflict between these guidelines and criteria and V.T.C.A., Tax
Code, Chapter 312, then in such event the Tax Code shall prevail and these
guidelines and criteria interpreted accordingly.
The guidelines and criteria once adopted by an Affected Jurisdiction may be
amended or repealed by a vote of three -fourths of the members of the governing
body of an Affected Jurisdiction during the two year term in which these guidelines
and criteria are effective.
EXHIBIT "D"
/2te&,e4c P-ro ssmo
a It/06
APPLICATION FOR INDUSTRIAL TAX ABATEMENT IN LUBBOCK COUNTY
ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO:
City of Lubbock
Business Development Department
P.O. Box 2000
1625 13" Street, Suite 105
Lubbock, TX 79457
(806) 775-2019
Date of Application: 12 / 10 / 2004
Applicant Name: Douglas B. Allen
Company Name: Vertical Turbine Specialists, Inc
Address: 1012 E. Waylon Jennings Blvd, Littlefield, TX 79339
Phone: f806) 385-6451 Fax: (806) 385-6455
Applicants Representative on this project:
Name:
Address:
Phone:
Type of Ownership: [x] Corporation [ ] Partnership
Total Current Number Employees: NA
Corporate Annual Sales Per Year: NA
Annual Report Submitted?
[ ] Yes [x] No
[ ] Proprietorship
WSApplication
Industrial Tax Abatement Application
Page 2
Place a check mark in the box on those statements which are applicable to your company:
(a) This application is for a: [x] New Facility [ ] Expansion [ ] Modernization
(b) Is the company a producer, manufacturer or distributor of goods and services of which 50 percent or more are
distributed outside of Lubbock ?(If yes, provide documentation as Attachment 1)
[x] Yes [ ] No
(c) Check the following target industry which is applicable to your company
[ ] Manufacturing Facility: Electronics/Electrical/Assembly, Semiconductor Fabrication
[ J Value-added Agricultural Production including Food Processing and Machinery
[ ] Med Tech Research/Manufacturing/Assembly
[ ] Aviation/Avionics Production/Rehab
[ ] Warehouse/Distribution
[ ] Corporate Headquarters of a Regional/National Service Center
[x] The project is not included in the above target industries, but has the potential of generating additional
significant economic development opportunities in Lubbock. (Provide documentation)
(d) [x] 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) [x] New Company to Lubbock
[ ] Existing Company
(f) If New Company checked, which of the following statements apply to the project:
[ ] The project will add at least $1 million in real estate assessed valuation
[ ] The project will add at least $2 million of personal property assessed valuation
[x] The project will add at least 25 new permanent jobs
(g) If Existing Company checked, which of the following statements apply to the project:
[ ] The project will add at least $500,000 in real estate assessed valuation
[ ] The project will add at least $1 million of personal property assessed valuation
[ ] The project will add at least 20 new permanent jobs
(h) Address of proposed facility: 1802 E. 50" Suite 106 Lubbock TX 79404
(i) Legal description of proposed facility: West 440 feet of Tract C. Breedlove Addition (Vol 1626. Page 894) (West
building)
0) The proposed facility is located in:
School District: Lubbock Independent School District
City: Lubbock
Industrial Tax Abatement Application
Page 3
(k) Describe product or service to be provided: VTS. Inc. manufactures a full range of standard and custom
fabricated parts for vertical turbine pumps.
Please attach the following:
Attachment 2
(a) A general description of the improvements to be undertaken (example: modernization of manufacturing facility
located at 4501 Peach Street and purchase of new manufacturing equipment).
(b) A descriptive list of the improvements for which tax abatement is requested, including:
(1) 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 3
(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.
Attachment 4
(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).
IX
Ulf 'x
CifNTS.1
Part A — Current Investment in Existing Improvements: NA
Part B — Permanent Employment Estimates:
(1) If existing facility, what is the current plant employment: NA
(2) Estimated number of new jobs to be created and time frame for creation of jobs:
New Jobs 65/ 85 Time Frame Immediate/3 veers
(3) Opening of improvements: (Month) December of (Year) 2004.
Industrial Tax Abatement Application
Page 4
Part C — Permanent Payroll Estimates:
(1) If existing facility, what is the current plant payroll: NA
(2) Estimated amount of new payroll: $1,612,535.60
Part D — Construction and Employment Estimates:
(1) Construction start: Month Feb Year 2005.
(2) Number of construction jobs: At Start 22 Peak 59 Finish 59
(3) Number of man-years: 20.4
Part E — School District Impact Estimates:
Give Estimated number of: Families transferred to area max 44
Children added to ISD's max 45
Part F — City Impact Estimates:
(1) Volume of treated water required from City NA gallons per day.
(2) Volume of effluent to be treated by City NA gallons per day.
(3) Please provide a statement on planned water and sewer treatment methods, and disposal of effluent if
the facility is to be located outside City systems.
(4) Has permitting been started? o Yes [x] No
Part G — Estimated Appraised Value on Site:
LAND
Value of Existing Facility
Before New Construction
(From Central Appraisal District) $110,378
Value of New Improvements
NA
PERSONAL IMPROVEMENTS
PROPERTY
$1,227,840
$1 046,470 $410,000
Estimated Total Value After
Improvements $110,378 $1,046,470 $1,527.840
Existing facilities purchased on November 29, 2004 for $1,700,000.00. Land value based on 60% of appraised value.
Part H — Variance:
Industrial Tax Abatement Application
Page 5
(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.
Section V - OTHER AGREEMENT APPLICATIONS
(a) Has applicant made application for abatement of this facility by other taxing jurisdictions or counties?
[ ] Yes [x] No
(b) If "Yes", please provide:
(1) Dates of Application:
(2) Hearing Dates:
(3) Name of Jurisdiction(s):
(4) Name of Contact(s):
(4) Attach any letters of intent to abate.
Section VI -DECLARATION
To the best of my knowledge, the above information is an accurate description of project details.
W21,54, ffli—Fralt OVA
d WL Wil 70 M�_ -
=�� S&i g—n at u re
BRADLEY D. ALLEN
Printed Name of Company Official
Vice President
Title of Company Official
Attachment 1 to Industrial Tax Abatement Application for
Vertical Turbine Specialists, Inc.
Vertical Turbine Specialists, Inc. manufactures component parts for the vertical turbine pump
market. Over 75% of annual sales of $6 Million are made to five major customers. Goulds
Pumps, Peerless Pumps, Patterson Pump Company, Flowserve Corporation and Fairbanks -
Morse Pump Company all have multiple national locations and overseas sales. The remaining
25% of sales is made to customers throughout the United States, Canada and Puerto Rico.
In contrast to the sales generated outside the immediate Lubbock area, our manufacturing
operations generate $3 Million in purchased goods, services and supplies. Of that, $1.3 Million
is in trade with businesses located in Lubbock.
Section II(c) to Industrial Tax Abatement Application for
Vertical Turbine Specialists, Inc.
In addition to the commerce generated by the relocation of VTS' manufacturing facilities,
negotiations are ongoing to establish a Minor Emergency Clinic and a chiropractic clinic in the
office buildings adjacent to the shop facility, to serve the personnel of VTS and east Lubbock.
Peerless Pump will relocate their Plainview facilities to Lubbock and lease a portion of the
shop facility, concurrent with our move. We are also negotiating with a vendor, outside of
Lubbock County, to lease another portion of the shop facility. These tenants should bring an
additional 25 - 30 jobs to the site
No Text
Line
Na:
Desccip6on
Acquisition
Date
Acquisition
Cost .
_ N
18 Tubing Assy _:
1X1L1968
$1 000.00
17
2:5" Oster Pipe
III 11960
$625,00
19
Oster Pipe Threader
1t1t1960
' $1,875.00
53 .Brio
`eport Milt
1/V1974
$2,250.00
59
H dro Sfation.
1/1/1976
$250.00
71 .
Drill Press, -
11IM976
$295 00
77~
1 Ton Hyd Press
1/1/1977
$1,250..00
81. ,
Lathe -Broadbent
311/1977
..$10;647.80
91 :Turret
Lathe ' G : '
10/11197?
` $71875.00
131 _-
Radial Ari Saw
5t1.11979
$730:00
145
Water Cooler _ ;;
9/1/1979
$63zoo
159.
Overhead Crane',10t1l1979
.. $16,955.00
171
Crane & Hoist
1/1l1980
$1339.00
175
'Electric Hoist
2/1/1980
$170.00
177.
Lathe -Betts :.
2/1/1980
$18,90000
186
Boring. Mi1152:....
- 4/1/1980
$18,500.00
191 :.Lathe
Victor
5/111980
e $10,500.00.
199
Lab Transformer
5/1/1980
$755.00.'
209
Bison `Jaw
101111980
$2,442.00
211
Radial Drill
10/1/1980
$12,500.00
22'5
Lathe = Rockland .: ; '
10/1/1981
$18,900:00
23.1
Sawing System
1/1/1982
_ $6 800.00
233 ,
Servo Power
1/111982
$496.00
235
Hoist Trolley
1/1/1982
$1;880.00
'
241
Electric Starter
2/1/1982
$1,848,00
243.
Chuck Flat.
Z/11l982
$1750.00
245
Turret Lathe
10/1/1982
$4,750.00
279
Scales
3/1/1984
$446.00
283
Lathe CPL #1
4/1/.1984
$32,824.00
28$ :.Lathe`
Shafting
5/1/1984
$18,720.00
297
Gua es `
9/1/1984
$312.00
303'
Air Compressor ,
3/1/1985
$4,1.13.00
305
ACME Lathe CPL ..
- 5/1/1985
$3,750.00
313
ABC #1 and. Bar
R
101IM985
$10,265.06
349
Davco Lathe.
2/1-t1987
$60,000.00
353
Davco Turret_
4/1t1,987
$2,500.00
357_
Pipe Rattler
6/1 /1987
. $1,542.OQ:...
363
NH4es,Lathe .
11/1-/1,987
$40,500.OG
365
Boring Mill 90
12/1/1987
$14,840.00
369:
Air.Compressor
12/1/1987
$121822.00
383
Lathe. _. ,
6/1/1988
_ $21,027.00
385
Landis Pipe
6/1/1988
$28,239.00
389'
Lathe = Rockland
1/1/1989
$12,600.00
M,
Landis Jaws-
1/1l1989
$273.50
01
15HP Neuman Used Motor
4/1/1989
$188.00
45
Compressor :.
4Hl1989
$685.00
.21:
Air Conditioner,
5/1/1989
$200.00 .
23 IStarrett
24" Caliper
5/1/19891
$506.00
429`
Horst.. :. :,.
6/2/1989:
43t,
#2 Turref the :.. '
6✓!/1989
$2,Of10:00
433
1:Ton.1-1610," - . ' .: :.
6/1/1989
$115700
",...•_;
437
Q�c=Seal Kit ,,
_7/1"11589
= -'$.31.0..00
- :. ...
439
Air V Ive Kit :: ": :" :. ' .. ::,..
_,.-T/1`/1989
$fiblo.
:
$139.50
443
2 Tori:Hoist -
8[1/1989
= $1.- 2$.0
8/111989
449""
Ml:Set. ; . ::"
< . _ 8/1 %1989
', : : ' $762.10
451 .
Caf`Master :..::.:..� .:. ,.:.. ; .
811/?989
$450:00
46l
Cincnnatti "Milacrbns Pump
9/1/1969
$1<,524 "75
463_
Angle; Roun.d., Cha nel "..:
9/1/1'989
.$1,298.35
465_
Beams: •. ....;.... :..
9/111989
$299:00
Pa tlet`Jach: '� • .
9/171089
.
$79000
:. .:..
471:' .
VRoyal 44* Tool Post .:.
1oil 11089
$850.00
47,
Grip. Strut :.. : :: ;' ": ;:`
10/11989
501
Teled'ne Lands Screws ". - :
11.1/1990
$1511..04
519:
Brandon &'dark -" Shear ..:. : "
.4f11.990
_ ; $84000-
52t
Punch Press :
:.. ..
:5/111990
°<. ::; ": $2,1"50.00
523,
fools--,
5/1`/1990
;! .$1',J38:00:
527:
Micrometer
..: , 7/1/1990
.... - : ' $560":00
533 ":•
Mic.Set .:: , . ,. -
8/1%1990
$343.05.
535:
Lubbock Machine Tool Gear
10/1/1990
$1;200.00
637
L661566k. Machine Tool
` 10/171990
$3,b'00.00
547
Tools ` :
1"2/1/1990
$250.00
<: 551'.:
Si- n.:for Building
WM990
: $188,00.
,557
Starrett Vernier
1/28/1992
$448.00
567.
Equipment".:. ;.. .::...
12/31/1992
$3,20458
586 -
Lehman �attie. Lease 7" '
10/1/1994
$40:440.02
588.
Saw'Lease
9/1/1994
589 -
VTL Jaws :.: _;: :., -. ".
10/1/1994
. ". ._ $85fl"OQ
592
4`� Jaw. Chuck :, ... _. " :..
11/1/1994
.," _ _..R _ .. , ., $431 00"
- 595
18"" Jaw Chudk . :: : 4: :..
11/1/1994
:•• $595:98
601
Radial Drill T6151e :: :"
5/1 /1995
$550.00
605
Used Combination Chuck :
7/1/1995
". .; $500.00.
606
Milling. Machine.
8/1/1995.
$6,950.00
608:
Tap.Grinder .
8/1/1995
$4500.00
613:-
Air•Conditioner
10/1/1995
$1,376.84
fi18:-
Stew-, Hopper ':
1/1/199fi
$619.00
618
JW&S CNC Se431179561 :
3/1/1996
. $38,756.00
619
W&S CNC (Ser#3117958) " .
3/1/1996
$38 750.00
620
AM Radial Drill (Ser#65076-42)
3/1/1996
$10,500.00
622
Mazak CNC (Ser#79655)
4/1/1996
$55,000.00
625
Muatroi Wiring
5/111996
$6,348.27
628.
2 Ton Hoists {2):
9/111696
" $4,059.94
630
Bullard D natrol 36" Serial # 31317
10/1/1996
$19,000.00
631
Steel Dump Hop "er
10/1/1996
$11298.00
635
627KIng Boring Mill Serial # 399.5 :
2/1/1997
$26,566.25
636
42" King Boring Mill Serial # 3330
211/1997
$21;403.75
637
25NI44" Monarch Engine Lathe Serial # 32330
2/1/1997
$16,300.00
641: JlWazak
CNC (Serial # QT-30)
3/1/1997
$122,000.00
`642:
Joume man: Vertical Band Saw -(Serial # )'
' 12/1%19$7
$5;815.00
645
'Air. ompressor
5/1 /1997
. $3,150.00
646:.
Sand Tank
:12/1/.1997
:. $2,500`00
1/1%1998
:.... $385 3kbb..
647
Mobile Store e Uriit .-
2/1%1998
648
#1001D Code"`& Controfs
: 4/1%1998
650
Selectrac 15 Extractor
5J1%1998
$1730.00
652
Summit (Serial # 29988)
' 6/111'998
$23,400.06
'
653
Summit (Semi # 29858 :::
6/1/1998
:. : $23,490.00
'
654
Mazak QT-30 (
6/111.998
$133,350:00
655 ;:
Mazak QT-30,= .
611/1998
, . "..." $120,350.W
'.
.."656;
Bug'"y:'Cart ": :...
:.' < , ` 7%1/1998
$834.5
660%
Bickford Radial Drill.: ;::..
4/30/1999
..: - .$4,500.00'w.
. .
661 :
Drill. Press Box Tables
5/7/1999
$950.00
662
Angle Plate Fixture
5/28M9S9
$8;645 00
664
Tubing Chasers, ...::: :..
3/14/2000
: $$'16;00
.666 .
Laadis;Threader >. ., .:. .` .
5/23/2000
$10,910.93
669,.;
ChaCn: Ho�stwltrollej�
2/1/2001
;$1,78480
x4a `Mach pie
1/29/2002
$3,734:62
<.
Clean Electrfci unit
2/26%2002
$1-0;680:43,
Mitutoyo Mini Checker .;:
7/26/2002
: $1040.00
Mitutoyo Gauge Head for Minf Checker .:.
7/26/2002
<: ". ; $58T60
. � .
FANUC ::.
8/20/2002
$1;142:44
Hi h Pressure Washer
12/14/6 002
$5,755:00
:.
Chain Clamps for H650
311.1 03
$1,770 00:
Mazak H 15 .: " :. ..,.
5/l/2003
$9,500:00'
Centu VTG°. .: :::
6/111 200 3
: `..: :. $369,500.0o:
:Jor enson.Chip C'6n yor .
7f11/2003
; $5,285 00
93' Mazak SQT 15M: ::... , ...
10/10�2003
$22;50.0.00
86 Mazak HTC 400 �
10/10/2003
. -
" _
94 Mitsu6islii MTC=f36
10/10/200
10/10/2003$15,000.00'
90 Brid eport Inteact 412
10/10/2003
$7,500.00
90. Numerez CMM 4064-24 mbCER
10/10/2003
: $ C1`,250.00
.:
Mazak Microdiscf3ata En stem
10/10/2003
.. $11860.00
Mitut6y6'PH-350 OptfcafC6r ' aritor ;
1011.0/2003
$1,125.00
_
HEM Saw 1200E
:.: ', .10110�2003
, . $1,650.00
HEM,Saw.1200E
10/10/2003
$100.00
Summit Radial Drill.
10/10/2003
$2625,00
La un FTV.2 Knee:Mitl -
I011 k003
", $3,375.00
.
Cincinnati En ine Lathe
10/10/2003
$7,500.00
Okuma LSEngine` Lathe.
10/10/2003
, - $6,000.00
Monarch: EE Toolroom Lathe
10110/2003
$2,250.00
Abeen HonzontaiNertical Mifi
10/10/2003
$2,626.00
Darez Driil" Sha ner
10/10/2CS03
$187.50
Darez E-90 End Mill Sharpener
10I10/2003
$487.50
Quinc :26HP Screw -Type Air Compressor
10/1012003
$11,250.00
Gardner Denver.25HP Screw Air Com ressor .
10/10/2003
$4,500,00
Ingersoll Rand Air Dryer
10/10/2003
$1,500.00
SpeedAir After Cooler
10110/2003
$1,125.00
Electric Arc Tap DWnteg*fator
10/10/2003
$900:00
Bridgeport lF, Rotary Table
:10/10/2003
$337.50
Cincinnafi Dividing Head with Tailstock
, °
10/10/2003
$750.00
6" KurtVise
10/10/2003
$187:50
8" kurt Vise ;: :. ;;
' .
10/16/2663
$375:00
:..:..:
8" Kurt Vise - -: .:., ..:. ; • ... ;:;� : ::
10%10/2003
$375 00:
Quin ` Model'370`15 HP -Compressor `...
10/10/2003
` •
$2,625.00
4..Lista Cabinets :::.
10/10/2063
$6;000.04
.
Dayton End: Pedesta{"Grinder
10/10/2003
$112.50'
M�fyVauKee CHop Saw
10/10/2003
$75:00
:.
Janc:'6" BeIt- .Sande' r
i0110/2003
:;:
$187:50
Electrl6I:Sup lies
10710%2003
:
-$3,750.00
Workbenches and cabinets :
10l1012008k;500:00
Maz ik'q'h''(0 ;'. :.
10/1.0(2003
- $3;750.00'
Solutionware.for,Mazaks `:
_
- .10/1012003
$9000.00
Surface. Plate '
..
- 10/1072003
$1,125.00.
Chi conye or- : `: .:
1.0110/2003
_ $1,875.00
::.
Cat 50:;too1 shelves &'cart '
10C1DO' 3
;;
$375:00.
NMTB taper.riolders` ' :... ..
;10/10/2003
$187.50,
Materta rack'. .:
10/10%2003
$1;500:00
75 kVaAransformec :
10/1012003
$562.50
150:kv6transformer::
:10/1'k003
`$1;125.00
Mill. clamp kits: :. :. :. ;.
4d/1k0b'
$75:00
M `netic schedule" board ,: :
10/1012003
.. $75, 00
.
„ .:
12" 3-`aw chuck (2 `40)..:
10/10/2003
;. •:.$1;12500
;.: .
10 3-jaw power chucks (2 ea
.:.10/10/2003
8" 3-'aw power c}�ucks (2 ea)
10110/2003
. $1 275.00`
$2;197;64Q.15
86'L
Welder ; : .. , .
7/7/1977
255-
Torch
6/111983
: $200:00
- 582
Welding' Machine
..
8/1/1994
$1,45000
583:
Boom Arm ,
911/1994
$50.00
584
Sub Art E ui ment °;.
9/1/199.4
..
$6,38400
593
13,10e;Beveler;.''
11/l/1994
$1,644:08
594
Weldin . Machine ::
12/l/1994
$1,450.00
.597 "
Pipe Beveler :::
1 /111995
$2,826.25
60T:
Welding Table '..`.
8/1/1995
$7;450.00
609
Weldin ' P'ositioner. ; :
: _, 9/1/1995
:.
`$12,500.00
615
Weldin 'Machine
12/1/1995
$1,400.00
. 623•
Miller 1 older (Ser#JK645181)
4/1%1996
.: -
$1'578.00
629
Miller Welders :.:.
8/1 /1996
$11, 508.25
638
Formula 62 Stress kelievin' Unit
2/1/107
$8,895:00
- 644
Portable W61der (Serial # : ,:
3/1/1997
$1;600.00
649
Pipe Beveling Machine'-
41111,908
$3 953.M
=-663`
Retrofit Pattein Torch
12/9/1999
_ .
$29,380.00 .
.
665.
Miller Plasma Torch. -
4/6/.2000
$1,650.00
667
Used Wefdec,:. `'
6/23/2000
$1;750.00
Mifler.CP 200 ire Welde[
10/10/2003
$937.50
OxyAcy Torch Set
10/10/2003
$112.50
$103,926.58
573.
Printer
9/1/1993
$932.50
610
Okidata Printer.
9/1/1995
$1,046.64
614
HP5L Printers (COMPTEX)Tm.0/1/1995
$1,705.50
626. •
MasterCam Softwar'(1 /2 ' acka e)
5/111996
633 `
Fu itsb Notebook Computer (Serial #6Y110466):.
P.edoz BZ✓aiet:Soffware.. : :. :.
- :1'(1/19972�
639"
EVerez .Potiutn. Server Serial #OGX=70420001 :
2/111997
::' $Z 5:
640
Wnciows 9 5,t6ftware _
2/1 f1997
$8
668
SonyCaptop Evmputer;
:.
4/23F2001
$33
Okidata Printer :..,
12/2412002
::.
DeR.Coiriputers
7/12/2003
$12,0
MasterCam fJpdate
11/19/2003
$5!
405
Phone Monitor
2/1/1989
$668.37�
56' -:`
Cenlutai� Phones , :' `
6/26/199:2
$62 �;72,
604
Phone Equipment.
7/1/1995
`,
$1;14335
==$2,42344
563-
1992 GMC.Pekup
5/1/1992
$16,309.00
599
Pick6p:.954.3/4T ' ,
4/111'995
`,: $27;390 $3:
603:
` afflitv`Trader
617.
1996,ChryslerVan. : `..:
2/1/1996
f..'$32,945.OU
632.
1996 GMC Pickup
12/111996
:
$22,023;34
2002 .Ford. Pickup
:.
3/22/2002
$34;099.00
2001'Chev `pickup
9/26/2003
$20,000;00777777
Hysfer 9000,6orklift`
"I j6/2003
;$6;750:00.'.
Datso- ' 6000 Forklift : '
10/10/2003
$1;125.00
= $161,167:17
83:
Stora a Shelves ; •,
4/111 77
$1,387.00`
1.15:=
Book Sheivea.
1011/1978
$392:00
125
.Office Fumifure
3/1/t979
$410:00
133
Bide .Line Machme ::
5/1f1979
$1,118:00
137 °
Des[c &Credenza;
8/171979
: $806:00:
143
Desk :.... ~r:
9/1l1979
. $450:00-.
157
Office Equipment .:`10/1%1979
$394:00:
173
Desk &Chair ;
2171960
; $37600
1971:.
Clutch Desk. • :
5/1/1980
$342.00
237;
Letter n S .:tem
2/1 /1982
$1, 045. 00
239
Office Equiprrment
2/1.11982
$1,815.00
273
Lateral File :.
10/1/1983
$286:00
291
8/1/1984
$2,947.00
327
lce Machine `
4/1/1986
$1;750.00"
331
Fife Cabinet
4/1/1986
:: $275:60
--343
Office. Equipment
11/111,986
$2;287.00-
399
Calculator . :.' ..
1/1/1989
$185-.95
41.74
D.etk & Mat ::
.511/1989
$967.00
473
TV &VCR for Cfassroorrt
10/1/1989
$973.00
477
Books for Classes : ` ...
11/1f1989
$1,218.00
405:
Books
12/1/1989
$89.50
509
Desk
2/1/1990
$4.00.00
513'
Books TPC Trainin
-3/1/1990
$3,604.63
515
Table & Chairs.
4/1/1990
$646.20
525
Desk `:
6/1/1990
$159.00
541 .
Desk ' ..
11/1/19901
$500.00
549116
Microwaves.
2/1/1990
....... $684:00
574`.
HD Paper Shredder : : `: `_ : , .:
8/1/1993
' .
$ f,299.97
575:
`{3iice Equiprien#
10/1 /1993
$499:00
508
Office Chairs=Sam'S. Club
3/1/1995
$860.28
611
VCR::-..: :.: ::..
9%111995
$161.59
6iY
lomceFUrhiturie-spenc&S _
4/1/1995
v,346.88
1 $29,675.00
89 _
Pattern E ui ment::
10/1/1977_
52,053.00
:123' .
Pafter4'.E ui `menf:.
253'
Pattern Equipment:., :.
6/1/1983
$790.6
257
Pattern Equipment:'..,
6/1/1983
, _ $790.00
-259 -
Pattern. Equipment
V111983
$790.00
263 :.Pattern
E uipment
6N/1983
: $790.00
. 265
Paitem E uipmenf
9/1%1983
$i0,749.00
267`
Tooling Equi .mend
91111983
$10 996:00
289';
Pattern: Equipment. ; :.
9/1/1983
$520.00
271
Tooling Equiprent :.
10/111983
$4;025.00`
275,
Pattern. -Equipment
11/1/1983
277:
PatterrEquipment
:
9 11%183
Si8Q.00'
30T':
Taps ;" :. : ,
�, 8/1/1985
$5,748.00 ,
311 _:.Workin"
Rings . "`
10/111985
.. $4'609.00
315,
Pattern Equipment . :..
11/f/1985
.. '$813.00
31,7
Match Plato
:1,2(1/1988
> $4,504.00:
319
Burnishing TooF
12/1%1:985
$1,399.00
321 `
E pr.,ment :
12/1/1985
$3,993.00
323.
Pattern. Equipment` ; .
11111986
$1,590.00
339' :
Pattern Equi :merit
4/1/1986
$2152.00
333
Pattern Equipment _
...51111
$1,856.00'
339
Pattern Equipment
101111986
: :.:.::. $925 00
.
: 341.:
Shop Equiptnenk .
10/1/1986
�-$895.00
345.
'Shop Equipment
.12%1/1986
$3,516.00
391
Inserts .. _ :.. ::. .:.. :::
1/1/1989
.:-$70.00
393:
Mandrel. Set, :..
1/1/1989
. $1;317:25
397
Burnishing Tool ' ' ' `
'11111989
' $452.30
401
Tap Chaser
V1/1989
$728.10
403
Tao Chaser.::
2/1/1989
$605,33
407.
2:Taps :
3/1/1989:
$1,12160
445
Spider Pattern :, .. ":.
:. 8/1/1989
483
top Chaser .:`
11/1/1,9$9.
$986.00
48s;
Spiral Tap
11/tN989
$206.00 :
40,
Tap Chaser.:.
...:_._....1211/19$9
_.$576.00
491
Tap Chaser
:1211/1g$9
-. $331.50
493
Plug Tap ..
�.
_._.._: , .....121111989
�P400.00
497:
Tap Chaser:.
:... 12/1/1959
$1;343:00
503 :,
Tap Chasers.
- 211/1990
$1-,136.00
:.505-
Tap Chasers - .. :.. ::
21111990
$1,140.00
507
Tao Chasers
21111990
$488.00
511
Tap Chaser ;
W11990
$568.60
517
Teledyne Landis - Chaser
41111990
$580.10
556 Probasco Design 7/1/1990 $1,200:00
oven 11/112004 $44,000.00
Blast Booth proposed $65,000.00
No Text
LAMS COUNTY TAX OFFICE
LINDA C HARLTONI TAX A.F`C
(806 ) 385-4222 EXT 230
COURTHOUSE #105
LITTLEFIELD, TX 79339-3302
IF TAXES ARE
PAID IN:
LESS (-) DISCOUNT OR PLUS (.) Fill
PENALTY /INTEREST
lillI
V STATEMENT I.D.
13C T
1w 16S. 58
19, 510,
76
NOV
--110. 39
19, 565.
VALU
?5 I
DEC
-"55. 19
1962 1
. � j LAND -AG -MKT
JAN
O %
0. 00
1 9, 6 7 6.
34 LAND -AG -USE
FEB
7 I
I, 3 7 7. 34
21, 053.
613 LAND-HOMESITE
MAR
9%
1, 770. 87
21, 447.
21 LAND -OTHER
APR
1 1 /
2, 1.64. 39
21,840.
73 IMP
OMESTEENT
MAY
1.3 ...
2, 557. 93
22,234.
, 7 OTR' IMPROVEMENT
1
1
9
22,627,
:r TOTAL APPRAISED
JURISDICTION
CITY OF LITTLEFIELD
HOMESTE"AD "LIM'ITOTALASSESSED '
T -
O 714,490
EXEMPTIONS TAXABLE VALUE
0 714,490
TAX RATE
0.5614
LAMB CO & CO HOSP
0
714,490
0 714,490
0.7642
H I GHPLA I NS WATER D I S T
0
714, 49 0
0 714,490
0.0083
LITTLEFIELD I SD
0
714,490
0 714,490
1. 4200-
PROPERTY DESCRIPTION
N060544
0
N50503 9900120--60540
LEASE # 9900120- INVENTORY, 0
DISCOUNT
R
{ S
Y T
ACRES
PENALTY
INTEREST
1012 E WAYLON JENN I NGS
LITTLEFIELD,
TX 79339-- 4160
AMOUNT
PAID .
AD VALOREM TAXES ARE DUE ON OCT 1st AND BECOME I IF NON BLANK. YOUR .
DELINQUENT FEB 1st. SEE REVERSE SIDE FOR INSTRUCTIONS MORTGAGE COMPANY HAS BEEN
AND IMPORTANT INFORMATION. NOTIFIED OF TAXES DUE.
TAX STATEMENT 2004
LAMB COUNTY TAX OFFICE
LINDA CHARLTON, TAX A/C
(806) 385-4222 EXT 230
COURTHOUSE #105
LITTLEFIELD, TX 79339-3302
N060540
V T S
1012 E WAYLON JENNINGS
LITTLEFIELD, TX 79339-4160
AD VALOREM TAXES ARE DUE ON OCT 1st AND BECOME
DELINQUENT FEB 1st. SEE REVERSE SIDE FOR INSTRUCTIONS
AND IMPORTANT INFORMATION.
u
STATEMENT I.D.
LAND -AG -MKT
LAND-HOMESITE
N50504 9900140-60540
LEASE # 9900140 MACHINES &
TOOLS, 0 ACRES
, .IFTAXESARE
LESS (-) DISCOUNT OR PLUS
V
1012 E WAYLON JENNINGS
LITTLEFIELD, TX 79339-4160
TAX STATEMENT 2004
LAMB COUNTY TAX OFFICE
LI DA CHARLTON, TAX A/C
(806) 385-4222 EXT 230
COURTHOUSE #105
LITTLEF%ELD, TX 79339-3302
VTS
1012 E WAYLON JENNINGS
L%TTLEFIELD, TX 79339-4160
3
5054Q 0100
LEASE # 9900160 WELDING
-,-
EQUIPMENT, Q ACRES � |���
STATEMENT I.D.
LAND -AG -MKT
LAND-nOMsSMs
N5O
LEASE # 9900180 COMPUTERS, 0
ACRES
LAMB COUNTY TAX OFFICE
ICE
LINDA CHARLTON, TAX A>C
(806) 385-422 2 E X T 230
COURTHOUSE # 105
LITTLEFIELD, TX 79339-3302
JURISDICTION
CITY OF LITTLEF'IELD
LAMB CD $c CO HOSP
HIGHPLAINS WATER DIST
LITTLEFIELD ISD
N060540
"
IF TAXES ARE
PAID IN:
LESS (•) DISCOUNT OR PLUS (.)
PENALTY / INTEREST
OCT
x
--0
11
NOV
—0.
0 7
DEC,
yF
—0.03
JAN
0 _
0.
00
FEB
7%
0.92
MAR
9%
1.
18
APR
11%
1.
4S
MAY
131%:
1.
73
JUN
15!
1. ?a
TOTAL ASSESSED
EXEMPTIONS
0 480
0 480
0 480
0 460
V T S
1012 E WAYLON JENNINGS
LITTLEFIELD, TX 79339-4160
TAX STATEMENT' 2004
LAMB COUNTY TAX OFFICE
LINDA CHARLTON, TAX A/C
(806) 38S-4222 EXT 230
COURTHOUSE ## 10S
LITTLEFIELD, TX 79339-3302
° ' mom 6 9-1
STATEMENT I.D.
13.
11 VALU
1
15
1.3
19 LAND -AG -MKT
13.22
LAND -AG -USE
14.
14 LAND-HOMESITE
14.
40 LAND -OTHER
1 .i7
T
IMPROVEMENT
7 HOME SITE
14.
TH gVEMENr
95 OTHER
IS.
20 TOTALAPPRAISED
TAXABLE VALUE TAX RATE
0
480 O. 5614
0
430 L7. ?642
0
4130 0. 0053
0
480 1. 4201_.
N50508 9900200-60540
LEASE # 9900200-COMMUNICATIONS
EQUIPMENT, 0 ACRES
TOTAL TAX DUE* STATEMENT I.D.
—6 67; 785.91 VALUES
—2 2-1 790 36 LAND -AG -MKT
ri i�Q R r Q Fi 0A LAND-HOMESITE
°
TOTALAPPRAISED
HDnn6
C I T'd QF ipS(. i TTLEF 0
282780
,µlELD
�,. .. >:..���t����-�'i,.
i�-t I NS WATER D I ST 4
28,
O ` 28, 780' �t3.
�I�yyGHi��'?.LA
�U Ev 3:= �.
.y7✓80 ¢
y0083
.�.fv _,fr ,' r -�,�, s ,, .. ;, .::
_'. k.�w� E..�j'y-sy'f ^+iJ -. `2 g' F,.-• l l "; ",s }t�
���= �^�..-u,.?.*s''�. �fl[.. -:t.. �F. ��� �.,..S.�r: 4 .r. '`•.�. � ., i �_. .. ..-.",''�"l �.:l� c1.. Z,
.����n ,�.�ae .....�:
I
f
.. �_v
x .>'. •
N060540
N50510 9900220-60540
LEASE ## 9900220 VEHICLES, 0
V T S
ACRES PENALTY
INTEREST
1012 E WAYLON JENNINGS
LITTLEFIELD, TX 79339-4160
SIGNATURE
AD VALOREM TAXES ARE DUE ON OCT 7St AND BECOME
DELINQUENT FES Ist. SEE REVERSE SIDE FOR INSTRUCTIONS
AND IMPORTANT INFORMATION.
a
LAME COUNTY TAX OFFICE
LINDA s.HARLTON, TAX A / C
(806) 385-4222 EXT 230
COURTHOUSE #105
LITTLE -FIELD, TX 79339-3302
IF TAXES ARE
PAID IN:
LESS (-) DISCOUNT OR PLUS (+) +}ffi"l�iaLT9�1E��7�0�'Y
PENALTY / INTEREST wua
�d m STATEIAE1,47 I.D.
VALI
NOV
-0. a2
162. 93 1
DEC
--0. 46
163. 39 LAND-AG-MK T
JAN
ox
0, 00
163. 35 LAND -AG -USE
FEB
7
11. 47
17S. 32 LAND-HOMESITE
MAR
9
14. 75
1 7 8. 60 LAND -OTHER
APR
1 1 /.
18. 01
181. 86 'HOME SITEENT
MAY
13/.
21. 29
165. 14 OTHEOR"EMENT
JUN
Y
24, S7
2 TOTAL APPRAISED
JURISDICTION
CITY OF LITTLEFIELD
HOMESTEAD'LIMIT TOTAL ASSESSED
0 51 950
EXEMPTIONS TAXABLE VALUE
0 5,950
TAX RATE
O. 5614
LAMB CO & CO HOSP
0
51950
0
5, 950
t"1.. 7642
HIGHPLAINS WATER DIST
0
51 950
0
5, 950
0.0083
LITTLEFIELD ISD
J
53950
05,
950
1.4200
PROPERTY DESCRIPTION
N060540
,
N50509 9900240'--60540
LEASE # 99G024, OFFICE
DISCOUNT
V T S
�C+
FURNITURE, O ACRES
PENOR
ALTY
INTEREST
1012 E WAYLON JENN I NGS
LITTLEFIELD,
TX 79339--4160
MOUNT
PAID
TAX SYATEMENT 2004
LAMB COUNTY TAX OFFICE
LINDA CHARLTON, TAX A/C
(806) 385-4222 EXT 230
COURTHOUSE #105
LITTLEFIELD, TX 79339-3302
N060540
V T S
1012 E WAYLON JENNINGS
LITTLEFIELD, TX 79339-4160
v
STATEMENT I.D.
LAND -AG -MKT
LAND-HOMESITE
N50506 9900260-60540
LEASE # 9900260 MISCELLANEOUS
TOOLING, 0 ACRES
PIT
SHIPPING
/
D�l O
PI
PIT 480 `
PIPE AND PLATE
480 480 480 480 480 480 480 480
T
u
PARTS ROOM / RAW BAR STOCK
480 460 480 480 480 480 T
No Text
Page d of 2
' Lubbock Central Appraisal District` .�;.
2004 Current Values
`i_anks
Prop" etas, Sheet (R115059 )
. Home
History' - Detash'- View Sketch View Images
l ®Bills
General lnforrnation
Owner Information
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Own er,ID:. 33654.
Owner Name: , EAGLE PICHER IND INC
FAQ
Owner Address:: ATTN RON WRIGHT PO BOX 779
a Taxing EJnrts
CINCINNATI,OH 45201-0779
PropertyAddress: .1802 E 50TH'5T
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-• : LUBBOdk, 79404
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Credit Card'Pay.Ments
Sear c es
Parcel. information
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Legal Description: BREEDLOVE TR A B & C
Acreage:
6. Address Search ;: ; ...
Cross Reference: R107400-00010-00000-000
Undivided Interest .,.
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EX46 tion Codes,
Property T ata
Ent' Code& • GLB (Lubbock County)
CLB ( }ty Of. Lubbock)
De tail Sheet
SLB (Lubbock ISD)
HSP (Lubb Cnty Hospital)
History
WHP (Hi Plains Water}
s Sketch
Deed Type: .
Deed Book:..
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...Deed Page:
;.., Map Page: 675 ..
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Values Breakdown 2004 (Work in Progress) -
Land HS: $0 +
... _
Land NHS: .. $183,964
Improvement HS: $0 +
Improvement NHS: $2,046,400 +
Ag Market. $0
Ag Use: $0 . .+
_ • ..
imber Market.•
:.
Timber Use:: $0 +
Assessed: ' $2,230,364 = .
Improvements
ID Type SPTB Segt
Value
imp 1 I (Misc. Improvement) F2 (F2 - Real Industrial) 1
$ 2,046,400
I. (Misc. Improvement) . F2 (F2 -.Real Industrial) . _ ..: 1 ,
$ 0
Im.p3 . I (Misc. Improvement) F2 (F2 - Rear Industrial) 3 .:
$ 0
Imp4 1 (Misc. Improvement) F2 (F2 - Real. Industrial) 3
$ 0
Land
http://u�wv.lubbockcad.org/Appraisal/PublicAccess/PropertyDetaii.asl)x?ProDertvID=7R__. t?/In/')nna
No Text
Attachment 2 to Industrial Tax Abatement Application for
Vertical Turbine Specialists, Inc.
Vertical Turbine Specialists, Inc. proposes to renovate offices and the manufacturing facility
located at 1802 50t' Street, Lubbock, Texas 79404 (West Building) and install manufacturing
equipment that is currently located in Littlefield, Texas.
Proposed improvements include, as follows:
a. Removal or relocation of walls in the office building: $250,000.00
b. Installation of new flooring in the office building: $45,000.00
c. Asbestos abatement throughout the offices and manufacturing building: $35,000.00
d. Construction of 925 linear feet of interior walls in the manufacturing building:
$80,000.00
A list of equipment to be installed is attached.
There is no Tangible Personal Property presently existing on the Real Property or located in an
existing facility.
The proposed improvements are scheduled to begin in December 2004 and be completed in
January 2005. Upon completion of building renovations, installation of machinery will
commence and is expected to be completed by March 2004.