HomeMy WebLinkAboutResolution - 2004-R0594 - Resolution Amending 2003 Guidelines And Criteria For Commercial Projects - 12_16_2004Resolution No. 2004-RO594
December 16, 2004
Item No. 34
RESOLUTION
WHEREAS, in September of 2003, the City approved Guidelines and Criteria
Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City
of Lubbock; and
WHEREAS, the guidelines and criteria, once adopted by an Affected Jurisdiction, under
the terms of the Property Redevelopment and Tax Abatement Act, may be amended by a vote
of three -fourths of the members of the governing body during the two-year term in which the
guidelines and criteria are effective; and
WHEREAS, the City of Lubbock desires to amend these guidelines and criteria at this
time; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby amends the 2003 Guidelines and
Criteria Governing Tax Abatement for Commercial Projects within the designated City of
Lubbock Enterprise Zones, as follows:
1. Section IV. Criteria and Guidelines for Tax Abatement is amended to add
Subsection 6 (d) which shall read:
"6. (d) 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."
2. A new section, Section VII. Default Options is added which shall read:
"SECTION VII. Default Options
1. 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."
3. Section VII. Recapture is renumbered Section VIII.
4. Section VIII. Miscellaneous is renumbered Section IX.
Passed by the City Council this 16th day of December 2004.
ATTEST:
Re ecca Garza, City Secretary
APPROVVED S TO CONTENT:
Rob All' itectorLof__
Business Development
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
Lc: City Att/ Linda/ Res-CB/Tax Abatement/Guidelines/2003 Amendment
December 1, 2004