HomeMy WebLinkAboutResolution - 2007-R0100 - Transfer And Assign - Tax Abatement Agreement - Quaker Medical LP - 03_22_2007Resolution No. 2007-RO100
March 22, 2007
Item No. 5_7
RESOLUTION
WHEREAS, by Resolution No. , the City Council of the City of Lubbock
approved a tax abatement Agreement dated November 9, 2006, between the City
of Lubbock and Quaker Medical Center, L.L.C., a copy of which Agreement is
attached hereto and incorporated in this resolution as if fully set forth; and
WHEREAS, Quaker Medical Center, L.L.C. desires to assign the tax
abatement Agreement to Quaker Medical, L.P.; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an Assignment to
transfer and assign to Quaker Medical, L.P. that certain tax abatement Agreement
dated November 9, 2006, between the City of Lubbock and Quaker Medical
Center, L.P. Said Assignment is attached hereto and incorporated in this
Resolution as if fully set forth herein and shall be included in the minutes of the
Council.
Passed by the City Council this 22nd day of March , 2007.
DAVID A. MILLER, MAYOR
ATTEST:
Reb cca Garza, City Secretary
APPRO D S CONTENT:
Rob son, sistant 'ty Manager
Development Se
APPROVED AS TO FORM:
Linda L. Chamales, Senior A
Office Practice Section
LLC:lc/ City Att / Linda 1 REs- Assignment -Quaker Medical
March 12, 2007
Resolution No. 2007-ROIOO
THE STATE OF TEXAS §
ASSIGNMENT
COUNTY OF LUBBOCK §
KNOW ALL MEN BY THESE PRESENTS THAT Quaker Medical Center,
L.L.C., ("Assignor"), has this day and does by these presents transfer and assign to
Quaker Medical, L.P., that certain tax abatement Agreement between the CITY OF
LUBBOCK, TEXAS and QUAKER MEDICAL CENTER, L.L.C. dated November 9,
2006, a copy of which Agreement is attached hereto and is incorporated herein by
reference.
QUAKER MEDICAL, L.P., hereby assumes all of the obligations of the Assignor
under the attached Agreement. This Assignment shall be effective upon approval by the
City Council of the City of Lubbock, Texas and the execution by the Mayor thereof.
Dated this the 22nd day of March , 2007.
QUAKER MEDICAL CENTER, LLC
By:
A'
QUAKER MEDICAL, L.P.
y:
ATTEST:
--�Z�2,C
LC: city aft/Linda/ Assignment- Quaker Medical
March 12, 2007
CITY OF LUBBOCK
DAVID A. MILLER, MAYOR
ATTEST:
Rebecca Garza, City Secretary ()
APPR TO CONTENT:
Rob ,AI l start Ci Manager
De elopment Services
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
Resolution No. 2007-RO100
Resolution 2006-RO531
November 9. 2006
Item No. 5.7
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock a Tax Abatement Agreement
with Quaker Medical Center, LLC and all related documents. Said Agreement is attached
hereto and incorporated in this Resolution as if fully set forth herein and shall be included
in the minutes of the Council.
Passed by the City Council this 9th day of November , 2006.
DAVID A. AILLER, MAYOR
ATTEST:
City Secretary
CONTENT:
Rob Al1i ssis 1
Development Services
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
LC: cityatt/ Linda/ Res -Tax Abatement -Quaker Medical Center
October 3, 2066
Resolution No. 2007-ROIOO
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this 9th day of November , 2006,
by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and Quaker Medical Center, LLC. (hereinafter called
"Company");
WITNESSETH:
WHEREAS, City did receive from Company on the 21"' day of September, 2006, an
application for commercial tax abatement for a new 70-bed inpatient/outpatient physical
medicine, rehabilitation and psychiatric hospital and 30-bed long-term acute care hospital
on a 6.66 acre tract of land east of Quaker Avenue and north of Loop 289, which is further
described in Exhibit "A" which is attached and incorporated herein as if fully set forth; and
WHEREAS, upon review of the above application, it was determined that facilities
would be located in the Lubbock 2000 North Enterprise Zone designated by City in its
Ordinance No. 2000-00032; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commercial
Projects in Designated Enterprise Zones in the City of Lubbock were heretofore adopted by
Resolution No. 2005-RO420 of the City Council of the City of Lubbock, a copy of which is
attached as Exhibit "B" and incorporated herein as if fully set forth; and
WHEREAS, the City did comply with all the requirements set forth in V.T.C.A.,
Tax Code, Section 312.2011; and
WHEREAS, the City did comply with all of the criteria and guidelines for creation
of an enterprise zone as set forth in Chapter 2303, Subchapter C of the Texas Enterprise
Zone Act, Texas Government Code, having adopted Ordinance No. 2000-00032 of the City
on June 8, 2000, which ordinance includes the property in Exhibit "A".
WHEREAS, V.A.T.C., Tax Code, Sec. 312.2011 provides designation as an
enterprise zone constitutes designation as a reinvestment zone without further action; and
WHEREAS, the application received by City from Company is an application for
the construction of a new facility; and
WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a
purpose is to be included in the guidelines for tax abatement and to be eligible for such
treatment; and
WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement
for Commercial Projects in Designated Enterprise Zones adopted by the City Council by
Resolution No. 2005-R0420, does recognize construction of a new facility as being eligible
for commercial tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and Cri-
teria established for Commercial Tax Abatement within the Enterprise Zones of the City of
Lubbock, as adopted by Resolution No. 2005-R0420 and attached as Exhibit "B" have been
met by Company; and
WHEREAS, Company does intend to construct a new facility; and
WHEREAS, the location of the proposed facility and surrounding real property,
which are to be the subject matter of the Agreement, are attached hereto as Exhibit "A", and
made a part of this Agreement for all purposes; and
WHEREAS, the City Council finds that entering into this Agreement to abate taxes
on the property described in Exhibit "A" will promote high quality commercial
development in the City, and enhance economic development within the designated
Enterprise Zone;
AGREEMENT — Quaker Medical Center, LLC Page 2
NOW THEREFORE, for and in consideration of the premises, and of the mutual
terms, covenants and conditions herein contained, the City and Company do hereby agree as
follows:
SECTION 1. Recitations. The parties agree that the recitations above in this
agreement are true and correct and shall be incorporated into this Agreement.
SECTION 2. Term. This Agreement shall remain in force and effect for a period
of five (5) years from the date of its commencement as set forth in Section 12, and shall
expire and be of no further force and effect after said date.
SECTION 3. Base Year. The base year applicable to real property, which is the
subject of the Agreement, shall be 2006, and the assessed value of the real property shall be
the assessed value applicable to such property for said year.
SECTION 4. 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 5. 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 6. Property Ineligible for Tax Abatement. The property described and
set forth in Section IV(5) of the Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones attached as Exhibit "B", is property
ineligible for tax abatement.
SECTION 7. Exemption from Tax. The City covenants and agrees to exempt
from taxation, in accordance with Section 5 above, the following properties:
(a) All proposed new construction on the property described in Exhibit "A"
which is located in Lubbock County, Texas.
AGREEMENT — Quaker Medical Center, LLC Page 3
SECTION 8 Job Creation Qualifications. It is hereby found by the City that
Company will create and retain 50 new full-time permanent positions by December 2007.
A description of the number and location of all proposed jobs is attached in Company
application, Exhibit "C" and incorporated herein as if fully set forth.
SECTION 9. Economic Qualification. Company agrees to expend funds
necessary to qualify for tax abatement by constructing a new facility, as set forth in Section
IV(9)(a) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects
in Designated Enterprise Zones in the City of Lubbock (Exhibit "B") on the property
described in Exhibit "A". A description of the kind, number and location of all proposed
improvements is attached in Company's Application, Exhibit "C" and incorporated herein
as if fully set forth.
SECTION 10. Value of Improvements. Company agrees to expend seventeen
million dollars ($17,000,000) in constructing a new facility to be located within the
Enterprise Zone created by Ordinance No. 2000-00032.
SECTION 11. Electricity Provider. Company agrees to utilize Lubbock Power &
Light (LP&L) for electrical services for the term of the tax abatement. If company chooses
to utilize a different power company, this contract shall be terminated.
SECTION 12. City Access to Property. Company covenants and agrees that City
shall have access to the property, which is the subject matter of this Agreement, during
normal business hours, and that municipal employees shall be able to inspect the property to
insure that the improvements are being made in accordance with the terms and conditions of
Company's application for commercial tax abatement, attached as Exhibit "C", and this
Agreement.
SECTION 13. 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:
I00%
Year 2:
80%
Year 3:
60%
AGREEMENT — Quaker Medical Center, LLC Page 4
Year 4: 40%
Year 5: 20%
SECTION 14. Commencement Date. This Agreement shall commence upon the
January 1st following the substantial completion of construction and shall expire five (5)
years after such date. Company shall provide certification of completion in writing both to
the City and to the Lubbock Central Appraisal District within ten (10) days of completion of
the project.
SECTION 15. Type of Improvements. The Company proposes to construct a new
facility as described in Exhibit "C". The Company further states that the proposed
improvements to the property above mentioned shall commence on the 25th day of
September, 2006, and shall be completed within approximately twelve (12) months from
said date. The Company may request an extension of the above date from City in the event
circumstances beyond the control of Company necessitates additional time for completion
of such improvements, and such consent shall not unreasonably be withheld.
SECTION 16. Drawings of Improvements. Company shall famish City with one
set of as -built plans and drawings of the facility to be constructed pursuant to the terms of
this Agreement by December 31, 2007.
SECTION 17. Limitation on Use. Company agrees to limit the use of the property
set forth in Exhibit "A" to the proposed commercial uses and to limit the uses of the
property to uses consistent with the general purpose of encouraging development of the
designated Enterprise Zone during the term of this Agreement.
SECTION 18. Recapture. The Company agrees to be bound by and comply with all
the terms and provisions for recapture of abated taxes in the event of default by Company
pursuant to law and as set forth in Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones adopted by Resolution No. 2005-
R0420 of the City Council of the City of Lubbock. (Exhibit "B').
AGREEMENT — Quaker Medical Center, LLC Page 5
l
SECTION 19. Certification. The Company agrees to certify annually to the
governing body of each taxing unit that the owner is in compliance with the terms of the
Agreement.
SECTION 20. Compliance. The City may cancel or modify this Agreement upon
sixty (60) days written notice, as set forth in Section VII of Exhibit "B", if the Company
fails to comply with any of the terms of this Agreement.
SECTION 21. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses
CITY OF LUBBOCK
Assistant City Manager,
Development Services
PO Box 2000
Lubbock, TX 79457
QUAKER MEDICAL CENTER, LLC.
2202 Memphis Ave.
Suite 104B
Lubbock, TX 79410
AGREEMENT — Quaker Medical Center, LLC Page 6
SECTION 22. Effective Date. Notwithstanding anything contained herein to the
contrary, this Agreement shall not be effective until such time as it shall be finally passed
and approved.
EXECUTED this 9th day of Rovmber , 2006.
QUAKER MEDICAL CENTER, LLC
CITY OF LUBBOCK
A Municipal C or Lion
"2 �s
an Chou AKA DAVID LER
ATTEST:
MAYOR
ATTEST:
ecca G a
City Secretary
APPROVED AS TO CONTENT:
r
Rob son, ity Manager
Development Services
APPROVED AS TOO FORM:
Linda Chamales, Senior Attorney
Office Practice Section
AGREEMENT - Quaker Medical Center, LLC Page 7
EXHIBIT "A"
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EXHIBIT "A"
FIELD NOTES on a 6.66 acre tract out of the 99.654 acre tract described in a General
Warranty Deed in Volume 7993, Page 85, Official Public Records of Lubbock County, Texas
and also out of Section 18, Block A, Lubbock County, Texas, being proposed Tract A,
Lubbock Medical Center Addition and further described by metes and bounds as follows:
COMMENCING at a found 5/8" rod at the Northwest comer of the 99.654 acre parent tract
which is called to bear S 0° 06' 52" E, 577 feet and S 89' 49' 12" E, 70 feet from the
Northwest corner of Section 18,Block A
THENCE S S 1041'48" W, (Texas North Central Zone Bearing Basis) along the East Right of
Way line of Quaker Avenue, (called S 0° 06' 52" E), I248.62 feet to a set 1/2" rod with cap;
THENCE S88011'41" E, 295.35 feet set 1/2" rod with cap for the Southwest and BEGINNING
corner of this tract;
THENCE NO 04848" E, 580.00 feet set 1/2" rod with cap for the Northwest comer of this
tract;
THENCE S88008'48" E, 500.00 feet set 1/2" rod with cap for the Northeast corner of this tract;
THENCE S01 04848" W, 579.58 feet set 1/2" rod with cap for the Southeast corner of this tract;
THENCE N88011'41" W, 500 feet to the PLACE of BEGINNING and containing 6.66 acres
including any Right of Way.
September 15, 2006
These Notes are based on a Survey Made on the Ground
J. M. Cieszinski, RPLS # 4460
EXHIBIT "B"
GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT
FOR COMMERCIAL PROJECTS IN DESIGNATED ENTERPRISE ZONES
IN THE CITY OF LUBBOCK
SECTION I. General Purpose:
The City of Lubbock is committed to the promotion of high quality commercial
development in designated Enterprise Zones within the City; and to an ongoing
improvement in the quality of life for citizens residing in designated Enterprise Zones.
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
designated Enterprise Zones in the City of Lubbock. tt 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 specific applicant
(V.T.C.A. Tax Code, Section 312.002(d)). With the above rights reserved, all applicants
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:
Abatement of Taxes: To exempt from ad valorem taxation all or part of the value
of certain Improvements placed on land located in a designated Enterprise Zone for
commercial development purposes for a period of time not to exceed five (5) years.
Affected Jur€sdictlow The City of Lubbock and the County of Lubbock.
3. Abatement Agreement: A contract between a property owner and the Affected
Jurisdictions for the abatement of taxes on qualified property located within a
designated Enterprise Zone as authorized by V.T.C_A., Tax Code, Section
312.204(a).
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.
5. Commercial: Retail, service, or office
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.
2005 Commercial Guidelines
September 8, 2005
Guidelines and Criteria Goveming Tax Abatement for
Commercial Projects in Designated Enterprise Zones
September B, 2005
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 andlor 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. Modern lzationlRenovation of Existing facilities: The replacement or upgrading
of existing facilities.
11. New Facility: The construction of a Facility, that has not previously existed within
the affected jurisdiction and will be a totally new business operation, on previously
undeveloped real property eligible for tax abatement.
12. 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.
13. 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.
14. Productive Life: The number of years a Facility is expected to be in service.
15. Real Property: Land on which Improvements are to be made or fixtures placed.
16. Tangible Personal Property: Any Personal Property, not otherwise defined
herein, and which is necessary for the proper operation of any type of Facility.
SECTION Ill. 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. A business must clearly add to the Lubbock economic base. Compliance with this
criterion must show that additionai jobs are being provided and the jobs being
proposed will not simply displace other similar jobs in the community.
Guidelines and Criteria Governing 1 ax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8, 2005
PAGE 3
2. Creation of new value: Abatement may only be granted for the additional value
resulting from any of the following:
(a) modernization/renovation of existing facilities of any type as herein defined;
(b) construction of a new facility of any type as herein defined;
(c) expansion of existing facilities of any type as herein defined.
3. 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 all other criteria or guidelines are satisfied.
4. Improvements to Real Property are eligible for tax abatement status.
5. 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) property owned by the State of Texas or any state agency; and,
Q) 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.
6. 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.
r
Guidelines and Criteria Governing �Ax Abatement for
Commercial Projects in designated Enterprise Zones
September 8, 2005
PAGE 4
(c) Property must be properly zoned for the use stated by the owner in the
application.
(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 tern of the abatement, so long as LP&L's rates are
competitive on a state-wide basis.
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 five (5) years. The
amount of the taxable value of Improvements to be abated and the term of the
abatement shall be determined by the Affected Jurisdiction in all cases. The authority
of all other taxing units shall be as set forth in V.T.C.A., Tax Code, Section 312.206.
8. No commercial property shall be eligible for tax abatement under these guidelines
and criteria unless such property is located in a designated Enterprise Zone in
accordance with Government Code, Chapter 2303.101 and the tax abatement
application is filed with the taxing jurisdiction before construction begins.
9. The minimum economic qualification for tax abatement shall be as follows:
(a) $100,000 investment or 10 new permanent jobs
(b) At least 30% of the business' new employees in the zone are residents of any
zone within the governing body's or bodies' jurisdiction.
10. Notwithstanding any of the requirements set forth in Subsection 9 above, the
governing body of an Affected Jurisdiction upon the affirmative vote of 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) Any other evidence tending to show a direct economic benefit to the Affected
Jurisdiction.
Guidelines and Criteria Governing lax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8, 2005
PAGE 5
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
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. Tax Abatement Agreement:
1. The Tax Abatement Agreement may be executed between the owner and the
municipality. 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.
(c) Provide that ineligible property as subscribed in Section IV, Subsection 5,
hereinabove shall be fully taxed.
Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8, 2005
PAGE
(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 or
improvements to be abated. This determination is to be made consistent
with the provisions of Section IV, Subsection 5, 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 five (5) 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 or renovation 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
Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8, 2005
PAGE 7
Agreement with owner to insure improvements are made according to the
specifications and conditions of the Tax Abatement Agreement.
(m) Provide for the limitation of the uses of the Real Property or improvements
consistent with the general purpose of encouraging development or re-
development of the zone during the period covered by the Tax Abatement
Agreement.
(n) Provide for contractual obligations in the event of default by owner, violation of the
terms or conditions by owner, recapturing property tax revenue in the event the
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; and
(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 the City 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 goveming body 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 City 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 property 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 VI. Application:
Any present owner of taxable commercial property located within the designated
Enterprise Zone of the City of Lubbock may apply for tax abatement by filing an
application with the City of Lubbock.
2. The application shall consist of a completed application form accompanied by:
i (
Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones
September 9, 2005
PAGE B
(a) A general description of the improvements to be undertaken,
(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 of 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 legal description of property.
(g) Address of property.
(h) A proposed time schedule for undertaking and completing the proposed
improvements.
(i) A general description stating whether the proposed improvements are in
connection with:
(1) the renovation of a facility; or,
(2) construction of a new facility.
{j) A statement of the additional value to the Real Property or Facility as a result of
the proposed improvements.
(k) A statement of the assessed value of the Real Property, Facility or Existing
Facility for the Base Year.
(1) 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.
(m) Any other information which the City of Lubbock deems appropriate for evaluating
the financial capacity of the applicant and compatibility of the proposed
improvements with these guidelines and criteria.
(n) 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.
Guidelines and Criteria Governing fax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8, 2005
PAGE 9
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).
(o) The City of Lubbock shall determine if the property described in said application is
within a designated Enterprise Zone. If the City determines that the property
described is not within a current Enterprise Zone, then they shall so notify the
applicant and said application shall then be returned to the applicant.
SECTION VII. 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 VIII. Recapture
1. In the event that any type of facility, (as defined in Section II, Subparagraphs 5, 6, 7,
8, 9) is completed and begins producing goods or services, but subsequently
discontinues producing goods or services for any reason, excepting fire, explosion or
Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8, 2005
PAGE 10
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 event the Tax Abatement Agreement shall
terminate and all abatement of taxes shall likewise terminate. Taxes abated during
the calendar year in which termination takes place shall be payable to each Affected
Jurisdiction by no later than January 31st of the following year. Taxes abated in years
prior to the year of termination shall be payable to each Affected Jurisdiction within
sixty (60) days of the date of termination. The burden shall be upon the applicant or
owner to prove to the satisfaction of the Affected Jurisdiction to whom the application
for tax abatement was directed that the discontinuance of producing goods or ser-
vices was as a result of fire, explosion, or other casualty or accident or natural
disaster or other even beyond the control of applicant or owner. In the event the
applicant or owner meets this burden, and the Affected Jurisdiction is satisfied that
the discontinuance of the production of goods or services was the result of events
beyond the control of the applicant or owner, then such applicant or owner shall have
a period of one year_ in which to resume the production of goods and services. In the
event that the applicant or owner fails to resume the production of goods or services
within one year, then the Tax Abatement Agreement shall 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 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 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, owner or Lessee 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 ail 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 event 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
Guidelines and Criteria Goveming Sfax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8, 2005
PAGE 11
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 event the Tax Abatement Agreement shall terminate and all abatement of taxes
shall likewise terminate. Taxes abated during the calendar year in which termination,
under this subparagraph, takes place shall be payable to each Affected Jurisdiction
by no later than January 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.
5. in the event that the applicant or owner, who has executed a tax abatement
agreement with any Affected Jurisdiction, relocates the business, for which tax
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.
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.
7. In every case of termination set forth in Subparagraphs 1, 2, 3, 4 and 5 above, the
Affected Jurisdiction to which the application for tax abatement was directed shall
determine whether default has occurred by Owner (Applicant) in the terms and
conditions of the Tax Abatement Agreement and shall so notify all other Affected
Jurisdictions. 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
whatsoever, 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.
Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8, 2005
PAGE 12
SECTION IX. 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 Facility as set forth in Section VI1,
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 ensure compliance with
the Tax Abatement Agreement.
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 re -adopted, modified, amended or
re -written as the conditions may warrant
8. Each Affected Jurisdiction shall determine whether or not said Affected Jurisdiction
elects to become eligible to participate in tax abatement. In the event 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.
7. 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
Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones
September 8. 2005
PAGE 13
body of an Affected Jurisdiction during the two-year term in which these guidelines
and criteria are effective.
EXHIBIT "C"
APPLICATION FOR COMMERCIAL TAX ABATEMENT IN LUBBOCK, TEXAS
MLING INSTRUCTIONS:
This application must be filed prior to the anticipated commencement of construction of Improvements or the
Installation of equipment This filing acknowledges familletarity and assumed conformance with "GUIDEUNF..S
AND CRITERIA GOVERNING COMMERCIAL TAX ABATEMENT" (Copy attwhod): This app lcadw will become a
ped at my later agreement or eontrsA and knowingly false ropresllentadons thereon will be grounds for the
volding of ern► N*w agreement or contract:
ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO:
City of Lubbock
Business Development Department
P.O. Box 2000
1625 13" Street
Lubbock, TX 79457
(806) 775-2019
Section I — APPUCAYT INFORMATION
Date of Application: ,J S/ 1 40V'
Applicant Name: 41CUAN Ckoa.
Company Name: 0 A1,' E6JL L� r.AL, &gn IC-
r
Address: Z to L Aktpwpfas cif" �Aot rod B, Gads , TX 714(0
Phone: idF 719. MC Fax: 4106 jl, 30 �►
Applicants Repres ntativeon this protect: rpc,
Name: C - t-' arA'
Address: 2 20 7- Kt EA T Kr.S A41 E-. I UI TD< /o 148, L u,16ocft -77 -7-700
Phone: 9,06. 74 f- I It sI-
Type of Ownership: [ ] Corporation [Partnership [ ] Proprietorship
Total Current Number Employees: r 0
Corporate Annual Sates Per Year.
Sactlan 11 - FACILITY INFORMATION
(a) This application is for a: New Facility [ ] Expansion [ ] Modernization
download.php?sbvWessage--1&pamed_Id=44&mailbox=1NBOXlsent_Vd=2&passed_eM id=o
Commercial Tax Abatement Application
Page 2
(b) Type f Commer ial Facility for which abatement isr requested: o Nc7
�N s T@AA& Ae u 'i; 6"t �►CD $p�ili�t-
(c)
Minimum economic qualification for tax abatement - place a check beside the statements that apply to your project:
Minimum investment at least $250,000
[i]' Creation of at least 10 new permanent Jobs
At least 30% of the new employees to be hired by the business will be residents of any enterprise zone within
the governing body's Jurisdiction
(d)
[ ] The existing facility to be modernized or expanded or the property where the new facility is to be built is
located in a designated Enterprise Zone.
(e)
e
Address of proposed facility: l- fivAita-
Legal description of proposed facility: 1 1X A 66C' �� Aff IW 041- OF AVPT.l<g:
f f , 161 Jet, A M-e f-b
(g)
Describe product or service to be provided. fI ena S IRA%*S
Section IOU - FACUTY DESCRIPTION
Please attach the following:
Attachment 1
(a) A general description of the improvements to be undertaken (example: build new retail store at 4501 Peach Street
and Install new furniture and fixtures). d000Mvejr + P4 & XeN41140/fnVA) 40.0 r.TAG
Fi a&41V
(b) A descriptive list of the Improvements for which tax abatement Is requested, Including:
(1) cost and description of construction and location of all proposed improvements of the Real
Property or E)dstIng Facility, and; 000 A-ff 0W5V PXohrtT faojow-
(2) list of new equipment and cost of the equipment.
IV/4-
(c) A lisp any and all Tangible Personal Property presently existing on the Real Property or located in an existing
facll - VjVPi(VW /3 y'�¢C AP7- 4 NV IA4PAW fAtfxJ'3 AtifWAWamT/J WO77D rW 1T.
(d) A proposed time schedule for undertaking and completing the proposed improvements.
I I z #01)n15
Attachment 2
(a) A site map indicating the approximate location of improvements on the Real Property Facility or Existing Facility
together with the location of any or all Existing Facilities located on the Real Property or Facility.
s1v Ak 4 P kTl ArttfD AIo iW a irm/ uT1E5 ��C cv,[�It��rraV ��
Attachment 3 _rX 6 ?"P11try
(a) A statement of the additional value to the Real Property or Facility as a result the proposed Improvements.
Aftfv �f a IWA(WAU V—AMAVX1*# M 41 % aw
Commercial Tax Abatement Application
Page 3
(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). , it .4T+ #1)
(c) Information concerning the number of new jobs that will be created or the number of existing jobs to be retained as
a result of the improvements undertaken. S,ab '41-+4jD
II Section FV • ECONOMIC IMPACT INFORMAA110M II
Part A — Current Investment In Existing Improvements:
Part B — Permanent Employment Estimates:
—b�
(1) If existing facility, what is the current plant employment: 01P Elton! f Afetlry
(2) Estimated number of new jobs to be created and time frame for creation of jobs:
New Jobs 3 LX A41rlF clt f >d Time Frame Ste kff -Wer 8
.w,,titctJlE C*#w4* yr AytPNV x
(3) Estimated number of retained jobs: /a vnwp,
(4) Opening of Improvements: (Month) % of (Year) 20PL.
Part C — Permanent Payroll Estimates:
(1) If existing facility, what is the current plant payroll: A &wrlo f AwcW
(2) Estimated amount of new payroll: S'rc #r*4ilfp
(3) Estimated amount of retained payroll: $4AYiIitoo
Part D — Construction and Employment Estimates: (4. - 4 . m#
(1) Construction start: Month I? I� Year 20j&�
(2) Number d construction jobs:
(3) Number of man-years:
At Start I Peak � Finish J0
Commercial Tax Abatement Application
Page 4
Part E — School District Impact Estimates:
Give Estimated number of Children added to ISD's .5re A V-1yemb
Part F — City Impact Estimates:
(1) Volume of treated water required from City kl dwo gallons per day.
(2) Volume of effluent to be treated by City Z �� gallons per day.
Part G — Estimated Appraised Value on Site:
LAND PERSONAL IMPROVEMENTS
PROPERTY
Value of Existing Facility
Before New Construction
(From Central Appraisal District) q 9 4q2,
Value of New Improvements — o f 7 o"t•+eo
Estimated Total Value After d
Improvements T� �� �' + O +�OO� Qgpd
Part H — Variance:
(a) Is a variance being sought under Section IV 9(d) of the °GuidellnW? [ ] Yes [�Vo
(b) If "Yes', attach any supplementary information required.
Section V -
To the best of my knowledge, the above information is an accurate descrip ' n of roJ ils.
Company Official Si tore
tt "14a art!
Printed Name of Company`` Official
XowfL tie.l�tnnatt 4ML#e
Tide of Company Official
�5dc.'=J( " ►J (WO
Quaker Medical Center, LP
Total Project Budget
Cost Estimated $I Sq FI
Projected Sq. Footage
Total Project Budget
Land Acqulsltion:
Acres
Sq feel/ Acre
Cost/ Sq tt
Total Lard Cost
Land Closing Cost lest)
Development coat:
Civil Engineering:
Cost/ Acre
Acres
Structural Engineering
Site Load Testing (approximately 26 cores)
Project Planning A Organizational Development (1.5%)
Architectural (4.4% of Construction Budget)
Architectural Contingency (5%)
Interior Design
On-SIte Archlieectural Management
Miscellaneous:
Includes Sunray, Appraisal, Environmental, Legal
Interlm Construction Interest Expense
Landscaping
Construction Project Management (1.50%)
Contingencies (2%)
Total Available for Bard and Remaining Misc. Soft Cast
/ Approximate Square Footage
Build -out Allocation) sq It.
Equity & Debt Requirement:
Debt (80%)
Equity (20%)
Price/ Unit
$250
84,000
$21,000,000
6.66
43,560
$ 5.00
$ (1,450,548)
$ (100,000)
17,000
6.66 $
(113,220)
$
(50,000)
$
(40,000)
$
(93,750)
$
(754,092)
$
(37,705)
$
(55.000)
$
(45,000)
$
(40.000)
$
(576,751)
$
(125,000)
$
(93,750)
$
(420,000)
$
17,405,184
84,000
$
202.44
S 16,800,000
$ 4,200,000
$ 42,000
TransHealth Attachment C4T,4e->
Section II, (0 and (g) Legal description of proposed facility and (7) Describe
product or service to be provided
TransHealth will be the majority partner and a legal name has not been approved
at this tirne; the facility will be a licensed acute care hospital specializing in
services for the medically complex including pulmonary,
woundcare,dialysis,neuro and orthopedic disorders. Patients in our setting
average 25 days or longer lengths of stay because of their severe medical
conditions.
Section III, (c) Information concerning the number of new jobs that will be
created as a result of the improvements undertaken?
- New 35-Bed Specialty Hospital to generate approximately 120 new jobs
including about 75°% of those being professional/management staff with average
incomes exceeding $40k annually.
Section IN part B, (2) Estimated number of new jobs to be created and time
frame for creation of jobs:
- With an anticipated opening date of August'07, we will have an initial start-up
crew of approximately 50 staff as occupancy increases, new job openings will be
filled.
(3) Estimated number of retained jobs:
- This is an new project, with no anticipated reduction in staff or services
expected at our current location. Southwest Regional currently has over 200
employees at their campus.
Part C, (2) Estimated amount of new payroll-
- The new payroll is budgeted at $2.4 million the first year and ramps up to $3.5
million the second year.
Part E Give estimated number of children added to the Independent School
District:
- Based on the new positions and the average age of our workforce, we
anticipate approximately 120 children to be added to the school district.
SeniorHealth Incorporated Attachment (R 0,0)
Section H (e) 6. Legal description of proposed facility:
SeniorHealth proposes to own and operate a 74-bed inpatient and
outpatient physical medicine and rehabilitation and psychiatric hospital
at or near the northeast confer and intersection of Loop 289 and Quaker
Road.
The hospital will be licensed by the State of Texas Department of State
Health Services (formerly known as the Texas Department of Health),
Medicare certified by the U.S. Center for Medicare Services (CMS) and
accredited by the Joint Commission of the Accreditation of Healthcare
Organizations (JCAHO).
7. Describe product or service to be provided
The hospital will provide inpatient and outpatient physical medicine and
rehabilitation and psychiatric services. Please see the attached
Description of Services:
SeniorHealth Incorporated
Description of Services
The hogoW in Lubbock will be licensed as an acute care hospital and contains both
psychiatric and rehabilitation services, in addition to medical detoxification services, and an
outpatient pain treatment program.
Psyc at is services
These units offer psychiatric rate treatment and crisis stabilizatim services far ekk* and
adult individuals who need treatment for psychiatric and/or substance abuse disorders.
Patients admitted to psychiatry progsatas arc diaxxosed with a
psychiatric condition, usually psychosis and/or depression, and many patients have a
chemical dgmWency (or alcohoQ problem in addition to the psychiatric diagnows. Other
psychiatric d*moses include neuroses, organic distur)ances, dcRcn atrve nervous system
disordem acute adjustment resection, psychosocial dy9firmction and other mental disorders.
Many of the elderly have early -stage Alzheimees disease, bit the primacy mason foe
admission to one of out operations is always a psychiatric condition. Patients are admitted
only when they have a pspchiatoc diagnosis, they are a threat to these own safety or the safety
of others, and inpatient care is necessary. Patients are usually treated with a combination of
mechmes and therapies provided by psychiatrists, licensed therapists and nurses. Adult
patients are Renerally admitted in psychiatric programs three to seven dare, and elderly
patients are admitted 10 to 12 days. Chemical dependency patients have a wider range in
lengths of stay, such as three to 15 days.
Psychiatric hospital clinicians work closely with mental health professionals, primary we
and specialist physicians, emergency room staff, and community agency staff that interacts
with individuals who may need treatment for mental illness or substance abuse.
The psychiatric program°s goal is to assist individuals in coping with social issues and in
returning to their activities of daily living, and to enable individuals to lead as full as and
independent a life as possible. Inpatient psychiatry benefits patients who cannot be safely
treated on an outpatient basis, and are able to tolerate therapy sessions daily and who can
expect to improve their mental health condition.
A typical psychiatric treatment program integrates physicians and other patient care
professionals. SeniotHealth operations provide 24-hour nursing observadon, daily
interventions and oversight by psychiatrists, and intensive, coordinated treatment activities
by physician -led teams of behavioral healthcare professionals.
Physicians, nurses, and therapists review each patient's progress in weekly multidisciplinary
care plan meetings. Based on specific needs of the patient, this team will develop an
individualized psychiatric care plan that almost always includes a medicines implementation
by a psvchiatrist and some of the following services:
Psychiatric nursing, such as:
• Assessment of the patient's emotional, social and phvsical condition
• Participation in group therapy sessions
• Status of the patient's special needs and equipment
Social services, such as:
• Patient and family counseling
• Evaluation of work and home environment and support systems
• Discharge planning and follow-up
Occupational therapy, such as:
• Activities of daily living (ADL) training
• Transitional living activities
0 Rnmr aaareamtnt
Speech/language evaluation and therapy.
Ro-hahiiifntinn a.-rvirra
Rrbvh&at ax�pMom etm*'ojm Most rehabilitation patients have suffered from one of the
following.
Stroke
Neurological disorder
Orthopedic injury
Congenital deformity
Severe arthritis
Amputation
Pulmonary disorder
Major multiple trauma, such as closed head injury
Joint replacement
Hip fracture
Patients are usually referred to inpatient rehabilitation services for intensive physical and
other therapies on injured and/or post -operative hips or knees, the effects of a stroke, or
due to a trauma. Orthopedic rehabilitation patients Renerallp remain in the inpatient
program for 10 to 15 days, stroke patients remain for 15 to 20 days, and trauma and other
patients are admitted for durations that vary greatly.
The rehabilitation progratn's goal is to assist individuals in returning to their activities of
daily living, and to enable individuals who have sustained a catastrophic injury or illness with
residual disabilities to lead as full as and independent a life as possible. Inpatient
rehabilitation benefits patients who are able to tolerate intensive therapy and who can expect
to improve their physical condition.
Patients receive a minimum of three hours per day of individualized, customized sessions of
physical, occupations), and speech therapy according to their unique needs. Physiaans,
nurses, and therapists review each patient's progress in weekly multidiseipbnary care plan
meetings. Based on specific needs of the patient, this team will develop an individualized
care plan that includes some of the following services:
Rehabilitation nursing, such as:
• Assessment of the patient's emotional, social and physical condition
• Status of the patient's special needs and equipment
• Assessment of the patient's bowel and bladder status
Physical therapy, such as:
• Joint mobilization
• Mobility and functional re-training, gait training
• Hydrotherapy
• Neuro-muscular re-training and strengthening
• Pain management
• Equipment evaluation
Occupational therapy, such as:
• Upper extremity and hand rehabilitation
• Activities of daily living training
• Fine motor assessment and training
• Balance training and coordination
• Adaptive equipment and tsa3IIing
• Orthotics and prosthetics training
• Transitional living activities and home assessment
Speech/Language pathology, such as:
• Speech and language evaluation and therapy
• Swallowing evaluation and re-training
• Hearing screening
• Cognitive and linguistic evaluation and training
Augmentative screening
Psychology, such as:
• Clinical psychology
Individual and family counseling
0 RAavint mr0iF"tinn
Social services, such as:
• Patient and family counseling
• Evaluation and assistance in funding issues
• Evaluation of work and home environment and support systems
a Discharge planning and follow-up.
Clinical staff providing the above services are employed by or contracted with Seniorflealth.
Mc&cal Detaxr&AVOD SCMCCR
Medical detoxification services are provided on an inpatient basis in an acute care hospital
room. The services are provided under the supervision of an internal medicine physician, or
possibly a psTchiatdst or other physician with addiction treatment training and experience.
Patients are normally in the hospital for three to four days, and are suffering with withdrawal
from very heavy alcohol or drug usage.
The medical detoxification beds are in a small unit of two to three patient rooms that is
separate from other hospital beds. A small nurses' station is adjacent to the patient rooms. It
is not a locked unit. There is no equipment required other than typical acute care hospital
room fiwnWiino.
In our hospitals, having the acute care beds provides important operational benefits: 1) we
can provide vahtable detoxification services, and many of those patients will subsequently
benefit from psychiatric services; 2) the acute can beds are available for psych and rehab
patients who may need medical stabilization before psychiatric or rehabilitation services, and
3) we have a closer relationship with internal medicine physicians who are key to operation
of the psychiatric and rehabilitation services.
Page 3 Section III Part (C) 1, Information concerning the number of new
jobs that will be created as a result of the improvements
undertaken?
The proposed new hospital will generate minimum 99 fulitime employee
positions after 12 months of operations. The range of total new jobs between 12 to
24 months may be adjusted upward to 120 from the base of 99 employees due to
workload and how quickly the hospital operations mature.
Page 3, Section IV Part B (2) 2. Estimated number of new jobs to be
created and time frame for creation of jobs:
New employee positions will growth at a rate as follows:
Month of opening: 60 employees
4 months: 80 "
12 months: 99 "
(3). Estimated number of retained jobs:
Number of employee positions identified above will be retained jobs.
No consultants or temporary positions are included in the above
figures.
Part C (2) 4. Estimated amount of new payroll:
The oavroll for the 99 employees is estimated to be $4,969.000.
Section IV, Part E 5. dive estimated number of children added to the
Independent School District:
SeniorHealth cannot predict the number of employees that will have
children or employees that will attend Lubbock Independent School
District. Under federal law, emvlovers are prohibited from inquiring
into the age of a prospective employee or other related similar
questions.
15aH TO: WEST TM TITLE COffPNY
RECEIPT # 112472
DATE 09/26/2006 10:16:31 AM
DOGAENT # PG5 FEE
2006W330 3
DEED 19.00
2006040331 7
DEED OF TRUST 35.00
Total Amount Due 54.00
OIECA 6026 54.00
Total Amount Paid 54.00
T} m 'YOU
HA f A NICE DAY!
Deputy: EGREFN
wa Vt. San rr
Return to: Quaker Medical Center, L.L.C., 2202 Memphis Avenue, Suite104, Lubbock, Texas 79410 AA-1379 sks
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY
REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
THE STATE OF TEXAS,
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF Lubbock
THAT Lubbock Quaker, Ltd., a Tens limited partnership, of the State of Texas, Grantor herein, for and in consideration
of the sum of TEN AND N01100THS-- 4$10.00}---DOLLARS and other good and valuable consideration, to said Grantor paid, and
secured to paid; by
Quaker kal Center, L.L.C., a Texas limited liability company
Mailing dress: 2202 Memphis Avenue, Suite104, Lubbock, Texas 79410, Grantee herein, as follows:
(a) $10.00 cash in hand paid, receipt of which is hereby acknowledged and confessed;
(b) $1,450,548.00 cash in hand paid by Lubbock Quaker, Ltd, a Texas limited partnership., the receipt of which is hereby
ack#owledged and confessed, and which $ 1,450,548.00 was advanced as a part of said purchase price at the specific request of the
Gnqee herein, and to evidence which Grantee this date executed and delivered his one note in the principal sum of $ 1,450,548.00
pays le to the order of Lubbock Quaker, Ltd, a Texas limited partnership.; the vendor's lien herein retained is retained in favor of the
holds of said note herein described, and said note is the same note described in and secured by a Deed of Trust of even date herewith;
have Granted, Sold and Conveyed, and by these presents do Grant, Sell and Convey unto the said Quaker Medical Center, L.L.C., a
Texas limited liability company of the County of Lubbock, State of Texas, Grantee herein, all that certain lot, tract or parcel of land
situated in Lubbock County, Texas, described as follows:
See Exhibit "A" attached hereto and incorporated herein by this reference.
This conveyance is made and accepted subject to all restrictive covenants, mineral reservations, royalty interests, oil and
gas leases, rights -of -way, and easements, if any, affecting the above described property and placed ofrecord in the office
of the County Clerk of Lubbock County, Texas.
TO HAVE AND TO HOLD the above described premises, together with all and singular the rights and appurtenances thereto
in anywise belonging, unto the said Grantee, and unto the heirs and assigns, or successors and assigns, of said Grantee, forever, and said
Grantor does hereby bind himself, and the heirs, executors and administrators, or the successors and representatives, of said Grantor, to
Warrant and Forever Defend, all and singular, the said premises unto said Grantee, and unto the heirs and assigns, or successors and
assigns, of said Grantee, against every person whosoever lawfully claiming or to claim the same, or any part thereof
But it is expressly agreed and stipulated that the Vendor's Lien is retained against the above described property, premises and
improvements, until the above described note and all interest thereon are fully paid according to face and tenor, effect and reading, when
this deed shall become absolute.
Words used herein denoting the singular shall extend to and include the plural, and the plural the singular, and words used herein
denoting any gender shall extend to and include all genders.
Executed this 26' day of September, 2006.
LUBBOCK QUAKER, LTD.,
a Texas limited partnership
BY: LUBBOCK GATEWAY GLOBAL, L.L.C.,
■ Texas limited liability company, as General Partner
By: Jul -Lies Chou Ho
Title: Authorized Member
(Acknowledgment)
STATE OF TEXAS
COUNTY OF LUBBOCK
Y
This inst rent was acknowledged before me on the &21� day of September, 2006, by Jui-Lien Chou Ho, authorized member
for Lubbock Gateway Global, L.L.C., a Texas limited liability company, as general partner for Lubbock Quaker, Ltd., a Texas limited
partnership, on behalf of said partnership.
Notary Public, State of Texas
SANDiU► � �
NaMrY p SW of 'Mn
�anralrM� l�M 1�11�
EXHIBIT "A"
FIELD NOTES on a 6.66 acre tract out of the 99.654 acre tract described in a General Warranty
Deed in Volume 7993, Page 85, Official Public Records of Lubbock County, Texas and also out
of Section 18, Block A, Lubbock County, Texas, being proposed Tract A, Lubbock Medical Center
Addition and further described by metes and bounds as follows:
COMMENCING at a found 5/8' rod at the Northwest comer of the 99.654 acre parent tract which
is called to bear S 0' X 52' E, 577 feet and S 89' 49' 12' E, 70 feet from the Northwest comer of
Section 18,Block A
THENCE S S1'41'48" W, (Texas North Central Zone Bearing Basis) along the East Right of Way
line of Quaker Avenue, (called S 0' DO' 52' E), 1248.62 feet to a set 112" rod with cap;
THENCE S88'11'41' E, 295.35 feet set 11T rod with cap for the Southwest and BEGINNING
comer of this tract;
THENCE NO1'48'48" E, 580.00 feet set 1I2" rod with cap for the Northwest comer of this tract;
THENCE S88'08'48" E. 500.00 feet set 112" rod with cap for the Northeast comer of this tract
THENCE SO1'48'48' W, 579.58 feet set 1 /2" rod with cap for the Southeast comer of thts tract;
THENCE N88'11'41" W, 500 feet to the PLACE of BEGINNING and containing 6.66 acres
including any Right of Way.
September 16, 2006
These Notes are based on a Survey Made on the Ground
J. M. Cieszinskl, RPLS#4460
_ 0�00 G
Resolution No. 2007 R
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THE STATE OF TEXAS JM 11 ' `"` "" 1AA4P j
COUNTY OF LUBBOCK
Before me Alan C. Weems
a Notary Public in and for Lubbock County, T� RDr_ ,, 10
day personally appeared KdSta Ramirez of the Southwestern Ne
Corporation, publishers of the Lubbock Avalanche -Journal - Morning, and Sunday, who being by me
did dispose and say that said newspaper has run continuously for more than fifty-two weeks prior I
insertion of this LeOal NOUCS
No. at Lubbock County, Texas and t
printed copy of the Legal Notice is a true copy of the original and was printed in i SECTION 7. THAT violo!ion of
ono provleion at this ordinance
moll be deemed a musdemeonor
Avalanche-Joumal on the following dates: �� Pu^leheble br fine not to exeeed
Two T"" )" d orld Nolloo Dalior,
i2,oeQ.0 Q, Provided 'rn Section
-31 of the Zoning Ordinance of
the City of Lubbock.
t
Inside Sales Manager
LUBBOCK AVALANCHE -JOURNAL
Morris Communication Corporation
NOTARY PUBLIC in and for the State of Texas
my commission Expires
51712011
Subscribed and sworn to before me this day of 11AJOW
FORM 58-10 ALAN C W€EMS
= Notary Public, State of Texas
MY comrrl a, Expires