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HomeMy WebLinkAboutResolution - 2007-R0241 - Assignment To Transfer And Assign Tax Abatement Agreement To Bolton Oil Company - 06_14_2007Resolution No. 2007—RO241 June 14, 2007 Item No. 5.25 RESOLUTION WHEREAS, the City Council of the City of Lubbock approved a tax abatement Agreement dated June 29, 2004, and amended July 21, 2004 between the City of Lubbock and Chisum Travel Center, LTD and Z8 Properties, LTD, a copy of which Agreement is attached hereto and incorporated in this resolution as if fully set forth; and WHEREAS, the Receiver for Chisum Travel Center, LTD and Z8 Properties desires to assign the tax abatement Agreement to Bolton Oil Company, LTD; 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 Bolton Oil Company, LTD that certain tax abatement Agreement dated June 29, 2004 and amended July 21, 2004, between the City of Lubbock and Chisum Travel Center, LTD and Z8 Properties, LTD. 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 14th day of June , 2007. DAVID A. MfLLER, MAYOR ATTEST: Reb ca Garza, City Secretary APPR VED A TO CONTENT: T Rob A istant ity Manager Development Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney/ Office Practice Section L.LC:lc/ City Att / Linda / RES- Assignment-Chisum to Bolton June 4, 2007 Resolution No. 2007-Ra241 THE STATE OF TEXAS § ASSIGNMENT COUNTY OF LUBBOCK § KNOW ALL MEN BY THESE PRESENTS THAT Chisum Travel Center, LTD. and Z8 Properties, LTD. ("Assignor") by and through Robert B. Wilson, Temporary Receiver duly authorized to act on behalf of Chisum Travel Center, LTD and Z8 Properties, LTD, pursuant to Cause No. 5-05CV0266-C, styled "SECURITIES AND EXCHANGE COMMISSION, Plaintiff v. Jonathan D. Nelson, et al" in the United States District Court for the northern District of Texas, Lubbock Division, has this day and does by these presents transfer and assign to Bolton Oil Company, LTD., PO Box 3176, Lubbock, Texas 79452, that certain tax abatement Agreement dated June 29, 2004 and amended on July 21, 2004, between the City of Lubbock, Chisum Travel Center, LTD., and Z8 Properties, LTD. A copy of the tax abatement agreement and amendment is attached hereto and incorporated herein by reference. Bolton Oil Company, LTD, 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 14th day of June , 2007. CHISUM TRAVEL CENTER, LTD CITY OF LUBBOCK And Z8 OPERTIES, LTD 00 R4ertW�ilson—.Re,ceiver DAVID MILLER, MAYOR ATTEST: BOLTON OIL COMPANY, LTD. BY �/" Charles Bolton ATTEST: 46V A-` ATTEST: Rebecca Garza, City Secretary y APPROVED AS TO CONTENT dtla 1-� .-. Rob All , ss 'ty Manager, Development Services APPROVED AS TO FORM: Linda Chamales, Senior Attorney Resolution No: 2007-R0241 iesolution No. 2004-RO369 July 21, 2004 Item No. 15 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an amendment to the Tax Abatement Agreement with Chisum Travel Center, LTD., adding Z8 Properties, LTD, owner of the real property, as a named party to the Agreement and all related documents. Said Amendment is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council; and THAT the City Secretary shall give notice of the amendment to the presiding officers of each governing body of each taxing unit having jurisdiction in assessing taxes on property located at 2611 E. Slaton Highway in the City of Lubbock, Lubbock County, Texas. Passed by the City Council this 21st day of /Ault' , 2004. MARC MCDOWAL, MAYOR ATTEST: Rebe ca Garza, City Secretary APPROVED AS O CONTENT: Ro ison, Bu ' eQanNeighborhood Devet Director APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section LC: cityatt I Linda / Res-Chisum Amend July 7, 2004 Resolution No. 2007-RO241 ,solution No. 2004-RO369 July 21, 2004 Item No. 15 FIRST AMENDED AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 21st day of July , 2004, by Chisum Travel Center, LTD, (hereinafter called "Chisum") and Z8 Properties, LTD. (hereinafter called "Owner"), both acting by and through Caprock Energy, Inc., their general partner, with the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") WITNESSETH: WHEREAS, City did receive from Chisum on the 28th day of January, 2004, an application for commercial tax abatement for the construction of a new facility at 2611 E. Slaton Highway, Tract A Chisum Travel Center Addition to the City of Lubbock, Lubbock County, Texas, which is further described in Exhibit "B". The new facility will be a travel center/truck stop. WHEREAS, upon review of the above application, it was determined that facilities would be located in the Lubbock 2000 South Enterprise Zone designated by City in its Ordinance No. 2000-00032; and WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock were heretofore adopted by Resolution No. 2003-RO369 of the City Council of the City of Lubbock, a copy of which is attached as Exhibit "A" 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 2611 E. Slaton Highway, 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 Chisum is an application for the construction of a new facility on Owner's property; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that sucb a purpose is to be included in the guidelines for tax abatement and to be eligible for such treatment; and WHEREAS, Section 1V of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones adopted by the City Council by Resolution No. 2003-R0369 (Exhibit "A") 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. 2003-R0369, and attached as Exhibit "A" have been met by Chisum; and WHEREAS, Chisum has leased real property from Owner (Exhibit D) and does intend to construct a new facility on said property; and WHEREAS, the location of the new facility and surrounding real property, which are to be the subject matter of the Agreement, are attached hereto as Exhibit `B", 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 "B" will promote high quality commercial AMENDED AGREEMENT — CHISUM Page 2 development in the City, and enhance economic development within the designated Enterprise Zone; NOW THEREFORE, for and in consideration of the premises, and of the mutual terms, covenants and conditions herein contained, the City, Chisum, and Owner 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 2004, 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 b. 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 A, 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; AMENDED AGREEMENT — CHISUM Page 3 (a) All proposed new construction to be located at 2611 E. Slaton Highway, Tract A Chisum Travel Center Addition to the City of Lubbock, Lubbock County, Texas, which is further described in Exhibit "B". (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "B", which does not include any equipment and personal property currently owned by Chisum and located in the existing facility. (c) It is further understood that all items affixed to the 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 Section 11 of this Agreement. SECTION 8. Economic Qualification. Chisum 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 A) on Owner's property as described in Exhibit B. A description of the kind, number and location of all proposed improvements is attached in Chisum's Application, Exhibit "C" and incorporated herein as if fully set forth. SECTION 9. Value of Improvements. Chisum agrees to expend two million dollars ($2,000,000) in constructing a new facility and five hundred thousand dollars ($500,000) for new equipment to be located within the Enterprise Zone created by Ordinance No. 2000-00032. SECTION 10. City Access to Property. Chisum 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 Chisum's application for commercial tax abatement, attached as Exhibit "C", and this Agreement. AMENDED AGREEMENT — CHISUiM Page 4 SECTION 11. 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 12. 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. Chisum 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 13. Type of improvements. Chisum proposes to build a new facility on Owner's property as described in Exhibit "C". Chisum further states that the proposed improvements to the property above mentioned shall commence on the 1st day of March, 2004, and shall be completed within approximately seven (7) months from said date. Chisum may request an extension of the above date from City in the event circumstances beyond the control of Chisum necessitates additional time for completion of such improvements, and such consent shall not unreasonably be withheld. SECTION 14. Drawings of Improvements. Chisum 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 by December 1, 2004. SECTION 15. Limitation on Use. Chisum and Owner agree to limit the use of the property set forth in Exhibit "B" 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 16. Recapture. Chisum and Owner agree to be bound by and comply with all the terms and provisions for recapture of abated taxes in the event of default by AMENDED AGREEMENT — CHISUM Page 5 SECTION 16. Recapture. Chisum and Owner agree to be bound by and comply with all the terms and provisions for recapture of abated taxes in the event of default by either Chisum or Owner pursuant to law and as set forth in Section VII of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones (Exhibit A). SECTION 17. Certification. Chisum and Owner agree to certify annually to the governing body of each taxing unit that each is in compliance with the terms of the Agreement. SECTION 18. Compliance. The City may cancel or modify this Agreement upon sixty (60) days written notice, as set forth in Section VII of Exhibit A, if the Chisum or Owner fails to comply with any of the terms of this 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 CHISUM TRAVEL CENTER, LTD. Z8 PROPERTIES City Manager Eric J. Golle Eric J. Golle P.O. Box 2000 2402 20`h Street 2402 20`h Street Lubbock, TX 79457 Lubbock, TX 79411 Lubbock, TX SECTION 20. Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as it shall he finally passed and approved. EXECUTED this 21st day of July , 2004. CHISUM TRAVEL CENTER, LTD. CITY OF A Munici ERIC J. GOLLE iAkc President of Caprock Energy, Inc,, MAYOR General Partner of Chisum Travel Center, LTD. NED AGREEMENT - CHISUM Page 6 Z8 PROPERTIES, LTD -nr& ERIC I GOLLE President of Caprock Energy, Inc., General Partner of Z8 Properties, LTD. AB/G:/Tax Abatement/Chisum Amcndment ATTEST: Reb ca Garza City Secretary APPROVED AS TO CONTENT: Rob All u ess Neighborhood Development Manager APPROVED AS TO FORM: Linda Chamales, Senior Attorney Office Practice Section AMENDED AGREEMENT — CHPSUM Page 7 I esolution No. 2004—RO369 EXHIBIT "A" GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT FOR COMMERCIAL PROJECTS IN DESIGNATED ENTERPRISE ZONES IN THE CITY OF LUBBOCK SECTION 1. 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 Ift 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. 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 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. 2. Affected Jurisdiction: The City of Lubbock and the County of Lubbock. 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 312204(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. Expansion of Existing Facilities or Structures: The addition of buildings, structures, machinery or equipment to a Facility. 6. 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 Commercial Guidelines Guidelines and Criteria Governing M ax Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 2 7. 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. 8. 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. 9. Modernlzation/Renovation of Existing facilities: The replacement or upgrading of existing facilities. 10. 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. 11. 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. 12. 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, 13. Productive Life: The number of years a Facility is expected to be in service. 14. Real Property: Land on which Improvements are to be made or fixtures placed. 15. 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 additional jobs are being provided and the jobs being proposed will not simply displace other similar jobs in the community. Guidelines and Criteria Governing . ex Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 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, {j) 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. Guidelines and Criteria Goveminy , ax Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 4 (c) Property must be properly zoned for the use stated by the owner in the application. 7. 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) $250,000 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 (314) 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. Guidelines and Criteria Goveminy " Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 5 (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 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. Guidelines and Criteria Governing Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 6 (c) Provide that ineligible property as subscribed in Section IV, Subsection 5, 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 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. Q) 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 creatio n 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. Guidelines and Criteria Govemin ax Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 7 (I) 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. (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 governing 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 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. Guidelines and Criteria Governing A Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 8 SECTION VI. Application: 1. 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: (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. Guidelines and Criteria Governinr, x Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 9 (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. 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 V11. Recapture In the event that any type of facility, (as defined in Section 11, 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 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 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 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. Guidelines and Criteria Governing . Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 10 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 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. 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 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. 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. 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. Guidelines and Criteria Goveminy .A Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 11 6. The date of termination as that term is used in this Subsection VIII shall, in every instance, be the 60th day after the day the Affected Jurisdiction sends notice of default, in the mail to the address shown in the Tax Abatement 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 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. SECTION Vlll. 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 VII, 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. Guidelines and Criteria Governing Abatement for Commercial Projects in Designated Enterprise Zones Approved September 18, 2003 PAGE 12 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. 6. 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. B. 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. 14: A, a1lb I44.i8 r e "JWk;u bAILLY EXHIBIT "B" Resolution No. 2004—RO369 THE STATE OF TEXAS § DEDICATION DEED COUNTY OF LUBSOCK This is to certify that Z8 PROPERTIES, LTD., a Texas Limited PaMerahip, is the owner of the following describcd tract of land, to -wit: FMLD NOTES on the proposed Plat Limits of Tract A, Chisum Travel Center Addition to the City of Lubbock, Lubbock County, Texas, being a 15,48 Acre Tract out of the 88.39 acre parent tract described in Volume 8427, Page 10, Lubbock Comity Real Property Records and further desczibed by metes and bounds as follows: BEGINNING at a found 3/8" iron rod in the North Right of Way line of U.S. Higbway 84 for the Southwest corner of the parent tract and the Southwest corner of this tract, whence the Northeast comer of Section 3, Block S by calls bears N 1° 07' 02" E, 2430.26 feet and S 88' 50' 30" E, 3697,4121 feet: THENCE N 01 °06'57" E, along the West line of the parent tract, 36.62 f=tt to a found rod with yellow cap; THENCE N 31 0'41'2 T' E, 18.68 feet to a set %" mod with orange cap marked RPLS 4,460; THENCE N 01 °06'57" E, 69.47 feet to a set'/2" rod with orange cap; THENCE N 03"12'57" E, 15Q.10 feetto a set'/2" rod with orange cap; THENCE N 01 °06' 57" E, 993.52 feet; THENCE N 43-51'40" W, 21.22 feet to a found rod with yellow cap for the Northwest comer of the parent tract and the Northwest corner of this tract; THENCE S 88*50'18" E, along the South Right of Way line of Loop 289, at l5 feet pass a set %" rod with orange cap marked RPLS 4460, at 79 feet pass a set viz" rod with orange cap marked "LS 4460, in all 94.00 feet; THENCE S 46°08'20" W, 21.20 feet; THENCE S 01 °06157" W. 458.08 feet to a set %" rod with orange cap; THENCE East, 620.73 feet to a set %z" rod with orange cap; THENCE South.. 1034.75 feet to a set %" rod with orange cap; THENCE N 88054'42" W, 20.59 feet to a found 3/8" rod; 03-17-04 14:55 TO:MARKET LUBBOCK INC. FROM:80674709BB p09 "17; :21,104 14: 24 8067442e r 2 HQ,JAPD BAILEY - PAGE Pd THENCE N 71 a47'48" W, along the North Right of Way line of Higbway 84, 731.44 feet to the PLACE of EEGINN'ING and containing 15.48 Acres including any Right of Way. T".ae undersigned owner does bereby plat the above described property into a tract or lot, as shown on the attached map prepared by Abacus Engineering and Surveying, dated as therein set out, and does hereby request that such property be platted aad re --platted and duly filed for record as required by law, all as shown on the attached map or plat. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS that for and in consideration of the special benefits accruing to the said property, Z8 PROPERTIES, LTD., a Texas Limited Partnership, does hereby dedicate all public easements as therein shown and designated upon the said reap to the public for public use forever, and does by these presents impress the name "Tract `A', Chisum Travel Centcr Addition to the City of Lubbock, Lubbock County, Texas. EXECUTED this the y day of March, 2004. Z8 PROPERTIES, LTD., a Texas Limited Partne3ship BY: CAPROCK ENERGY, , General Partner ERIC I. GOLLE, President THE STATE OF TEXAS § COUNT` OF LUBBOCK § This instrument was acknowledged before me on the IVI"t-day of March, 2004, by ERIC J. GOLLE, as President of CAPROCK ENERGY, INC., General Partner of Z8 PROPERTIES, LTD., a Texas Limited Partnership. 77'NOTARY PUBLIC, STATE OF TEXAS 03--17-04 14:55 TO:MARKET LUBBOCK INC. FRAM:8957478886 Pip z., Revised EXHIBIT "C" APPLICATION FOR u -j' `jIERCIAL TAX ABATEMENT IN I_' 13OCK, TEXAS Resolution No. 2004-RO369 NG INSTRUCTIONS: *p lication must be filed prior to the anticipated commencement of construction of improvements or the llaon of equipment. This filing acknowledges familiarity and assumed conformance with "GUIDELINES CRITERIA GOVERNING COMMERCIAL TAX ABATEMENT" (Copy attached). This application will become a cif �ny later agreement or contract, and knowingly false representation: thereon will be grounds for the no iof any later agreement or contract. ORIGINAL. COPY OF THIS APPLICATION AND ATTACHMENTS SHOULI City of Lubbock Business Development Department P.O. Box 2000 1625 13t' Street Lubbock, TX 79457 (806) 775-2019 I - APPLICANT INFORMATION of Application: 01 1 2 7 / 04 licant Name: parry Name: Chisum Travel Center, Ltd. ssE 2405 20th Street, Lubbocko Texas 79411 he:' c44_n7a Fax: 806/687-5895 I.Wahts Representative on this project: gat grownd INerne: Ent Rrnwnd t 4k-ddress: 1Dme as above } kit 4ukiMi I I to I u: TM 90TC AY 2 1 2004 L of Ownership: [ ] Corporation [ � lAershlp [ ] Proprietorship Total Current Number Employees: N I/ A F prni nr., ea10 rate Annual Sales Per Year: _A r - rr i ected $10 million )nil - FACILITY INFORMATION (a) This application is for a: [4 NewFacility [ ] Expansion [ ) Modernization * unetrdw Tax Abatement Applicadon .=rage 2 Type of Commercial Facility for which abatement is requested: travel center/ trucx s includina convience store, resaurant and fast fend rp:st-.aurant Minimum economic qualification for tax abatement place a check beside the statements that apply to your project: [] Minimum investment at least $250,000 [ ] Creation of at least 10 new permanent jobs [x 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 [X] The existing facility to be modern zmd or expanded or the property where the new facility is to be built is located in a designated Enterprise Zone. Address of proposed facility: 2611 E. Slaton Hwy., Lubbock, Texas 79404 i .,:Legal description of proposed facility: Tract A Chisum Travel Center Addit-inn Describe product or service to be provided: Full service travel center/truck stop with convenience store, restaurant and fast food restaurant ill . FACILITY DESCRIPTION ease attach the following; il A general description of the improvements to be undertaken (example: build new retail store st 4501 Peach Street Ind instalt new furniture and fbdures), Jk descriptive list of the improvements for which tax abatement is requested, including: (1) cost and description of construction and location of all proposed improvements of the Real Property or Existing Facility, and; (2) list of new equipment and cost of the equipment. r Rd) ! A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing .. _ facflity. A proposed time schedule for undertaking and completing the proposed improvements. i4 6chment 2 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. 3 Commercial Tax Abatement Application Page 3 A statement of the additional value to the Real Property or Facility as a result of the proposed improvements. 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). i Witi5 . " ` 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. 111 SecUon IV - ECONOMIC IMPACT INFORMATION 11 A- Current Investment In Existing Improvements: -0- B - Permanent Employment Estimates: (1) If existing facility, what is the current plant employment: N / A (2) Estimated number of new jobs to be created and time frame for creation of jobs: New Jobs 10 Time Frame 9 months •a,� (3) Estimated number of retained jobs: N � � (4) Opening of improvements: (Month) nq of (Year) 20�g . C - Permanent Payroll Estimates: (1) If existing faculty, what is the current plant payroll: N / A (2) Estimated amount of new payroll: $ 5 0 0 , 0 0 0 (3) Estimated amount of retained payroll: N/A - Part D - Construction and Employment Estimates: (1) Construction start: Month 02 Year 20 0 4 (2) Number of construction jobs: At Start 12 Peak 30 Finish 25 (3) Number of man-,LU.Is 192,500 Commercial Tax Abatement Application Page A Part E — School District Impact Estimates: Give Estimated number of Children added to ISD's 4 Part F — City Impact Estimates: (1) Volume of treated water required from City N /A .gallons per day. (2) Volume of effluent to be treated by City N f A gallons per.day. 110-1 G — Estimated Appraised Value on Site: LAND Value of Existing Facility Before New Construction (From Central Appraisal District) $ 3 4, 0 0 0 Value of New Improvements Estimated Total Value After PERSONAL PROPERTY $500,000 IMPROVEMENTS -0- $2.0 million Improvements $34r000 $500,000 $2.0 million Part H — Variance: (a) Is a variance being sought under Section IV 9(d) of the'Guidelinee? [ ] Yes pK) No If "Yes', attach any supplementary information required. tian V - DECLARATION To the best of my knowledge, the above information is an accurate description of praject de lls. ,A - Company Official Signatu,7 Eric Golle Printed Name of Company Official President of General Partner Title of Company Official "V t Attachment 1 a) Build new travel center/truck stop to contain convenience store, truckers' lounge, restaurant and fast food restaurant at 2611 E. Slaton Highway, Lubbock, Texas. Travel center will have gas and diesel sales for trucks, autos and RV's. b) (i) Construction of state of the art truck stop facility for an approximately $2.5 miIlion dollars. (ii) (A) Gas pumps, canopies, underground tanks ($500,000), included in $2.5 million above. None c) N/A d) Seven to nine months of construction. I O_ADDN4,dwg, 5/12/2004 10:57 03 AN Attachment 2 1 jq :., :a t I # z r� m � p N N 0 0 i m m 0 vil p ® ®6 0 a" E�A1 "b" GeG sea aQ0 iMIjOR0411�1�d��fE��l��`������{� CHISUM TRAVEL CENTER 2610 EAST SLATON HIGHWAY LUBSOCH. TEXAS Attachment 3 a) $2.5 million dollars b) see attachment from Lubbock Central Appraisal District c) approximately 10 new jobs R-1 CI-Y - I e - U -+ U!=I . I J A P. 08 ls.suc Dale : 0 1127/2004 TAB CERTIFICATE Cenificaw # 95 18 1 U ............ . ........... Po box 10566 1715 25th Sr Lubbock, Tx 79405-3568 (806) 762-5000 Ext 503 This CerLitiCdte includes tax ycant lip l',o 7003 W-i'ik;itieu to which this certifirar.f-, i-ijif)l iev CLP - LUHHOCK COUNTY CLB - CITY OF LU2POCK BSP - LUBBOCK CNTY HOSPITAL SLE - LUBBOCK ISD WkP HIGH P;AINS WATER DIST . .......... 61fr)pert,y 11) R'12.Qe.4 ..... ...... .......... . .......... Owner ID ; 106961 Cross Ref 00643423 Value Irilormation ENDER VERNA RAY ESTATE 't KATHRYN TATE 2 Loop 289 Land MS $0 —1» 55TH ST 1.,ubbock, '794U4 Lldrld MIS $0 LIMBOCK, TX 79412 26-1 3 I rap 14"; $0 BLK S SEC' .1 AH 204 11 4e, 1 trip NHS $1,455 B AC; 87.B1 AL3 Mkr. $175, (-;.q P7.b/ -e A�-j Use $22,162 HS Cap AdD $0 Az!�e!smed $211,617 NQUMefte tr Tc Ctr-l-Llie rn..L A.',.,r I !nr"O '.rm-k ui 'I're jw; vn.v lzm FJLJC.Lt:', f.Urr-.ML for AmS ........... ........ ,nt T CL8 200.1 V'3 B 2 128.88 0.00 0.I)o 0.00 128 8 0.011) 0.00 2 U 0:3 3 61 -30 0 . ou 6.1.30 HS P 2003 353B2 25.73 0.00 0.00 0.00 2Fj.'/,1 S. I.. R 2003 3 5 3 8;� 3791 1 ") 0.00 0,00 0,00 379.19 WHP 2003 353B2 1.96 0.00 0-00 0,00 1 . 96 Total for current bills if paid by 01/31/2004 : $597-06 Total due on all bills if paid by 01/31/2004 s $597.06 2003 taxes paid for entity CLB $0.00 2003 taxes paid for entity GLB $0.00 2003 taxes paid for entity HSP $0.00 2003 taxes paid for entity SLB $0.00 2003 taxes paid for entity WHP $0.00 P h. ALA I.. -- I . I J Vn L km 4 1 L ba rt-d :`n I t L: Ur-o. I DC 1.11 I, K W! 3, M.y .j.. W In. -1— ;p-... M.- 'a, N,t 3nmi:Atw in T11.17 "h, r tcrr r I za',Q rx-,, 1:1 -00-1 'j, 11 V , I Dace of Issue 01/27/1100-1 Requestor Counter Cusconi--T Rer. Number. FP.P Paid $0.00 gig2jturc ol'Aulhurized 0fricer n f tim Tax 011kv 1:1 dlkp, kne. 11 aq C 1 0 f vvv . . . f-4- 1W • C EXHIBIT "D" Resolution No. 2004-RO369 Commercial Developmeut Ground Lease Terms Date: February 1, 2004 Landlord: Z8 PROPERTIES, LTD., a Texas limited partuership, acting by and through CAPROCK ENERGY, INC., its general partner Landlord's Address: Z8 PROPERTIES, LTD. 2405 20th Street Lubbock, TX 79411 Tenant: CHISUM TRAVEL CENTER, LTD., a Texas limited partnership, acting by and through CAPROCK ENERGY, INC., its general partner Tenant's Address: CHISUM TRAVEL CENTER, LTD, 2405 20th Street Lubbock, TX 79411 Premises Approximate square feet. 15.48 ACRES as furthe7 described in Dedication Deed attached hereto as Exhibit A incorporated herein for all purposes Name of building: Chisum Travel Center Street addresstsuite: 26 f-r East Slaton Highway City, state, zip: Lubbock, TX 79408 Base Rent (monthly): $100.00 Term (months): 360 Tenant's Pro Rata Share: One Hundred percent (1009/6) Commencement Date: February 1, 2004 Termination Date: February 1, 2034 Security Deposit: $0.00 Use: to develop, construct and operate a truck stop/travel center and related businesses Amount of Liability Insurance --1- i--r -Ir.'cY P. Death/bodily injury: $500,000.00 Property: $4,000,000.00 Definitions "Rent" means Base Rent plus any other amounts of money due Landlord by Tenant, "Landlord" means Landlord and its agents, employees, invitees, licensees, or visitors. "Tenant" means Tenant and its agents, employees, invitees, licensees, or visitors. "Essential Services" means heating, ventilating, air conditioning, water, and utility connections reasonably necessary for occupancy of the Premises for the Use. Clauses and Covenants A. Tenant agrees to - I . Lease the Premises for the entire Term beginning on the Commencement Date and ending on the Termination Date. 2. Accept the Premises in their present condition "AS IS," the Premises being currently suitable for Tenant's intended Use. 3. Obey all laws, ordinances, orders, and rules and regulations applicable to the use, condition, and occupancy of the Premises, including the rules and regulations of the Premises adopted by Landlord. 4. Pay monthly, in advance, on the first day of the month, the Base Rent to Landlord at Landlord's Address. 5. Pay, as additional Rent, all other amounts due under this lease. 6. Pay a late charge of 5 percent of any Rent not received by Landlord by the tenth day of the month in which it is due. 7. Obtain and pay for all utility services used by Tenant and not provided by Landlord. 8. Pay Tenant's Pro Rata Share of any utility services provided by Landlord. 9. Allow Landlord to enter the Premises to perform Landlord's obligations, inspect the Premises, and show the Premises to prospective purchasers or tenants. 10. Repair, replace, and maintain any part of the Premises that Landlord is not obligated to repair, replace, or maintain, reasonable wear excepted. 11. Keep the sidewalks, service ways, and loading areas adjacent to the Premises clean and unobstructed. .2- 12. Repair any damage to the Premises caused by Tenant. 13. Submit in writing to Landlord any request for repairs, replacement, and maintenance that are the obligations of Landlord. 14. Maintain public liability insurance for the Premises and the conduct of Tenant's business, naming Landlord as an additional insured, in the amounts stated in the lease. 15. Maintain insurance on Tenant's personal property. 16. Deliver certificates of insurance to Landlord before the Commencement Date and thereafter when requested. 17. Indemnify, defend, and hold Landlord harmless from any loss, attorney's fees, court and other costs, or claims arising out of use of the Premises. 18. If requested, deliver to Landlord a financing statement perfecting the security interest. 19. Vacate the Premises and return all keys to the Premises on termination of this Lease. 20. Pay all costs caused by introducing materials, other than ordinary human waste, into the sanitary sewer system. 21. Install and maintain any dilution tanks, holding tanks, settling tanks, sewer sampling devices, sand traps, grease traps, or other devices required by law for Tenant's Use of the sanitary sewer system. 22. if the Premises are served by rail and if requested by the railroad, enter into a joint maintenance agreement with the railroad and bear Tenant's Pro Rata Share of the cost of maintaining the railroad spur. 23. On request, execute an estoppel certificate that states the Conunencement Date and Termination Date of the lease, identifies any amendments to the lease, describes any rights to extend the Tenn or purchase rights, lists defaults by Landlord, and provides any other information reasonably requested. B. Tenant agrees not to - 1. Use the Premises for any purpose other than that stated in the lease. 2. Create a nuisance. 3. Interfere with any other tenant's normal business operations or Landlord's management of the Premises. 4. Permit any waste. 5. Use the Premises in any way that is extrahazardous, would increase insurance premiums, or would void insurance on the Premises. 52 p. I 6. Change Landlord's lock system. 7. Alter the Premises. 8. Allow a lien to be placed on the Premises. 9. Assign this lease or sublease any portion of the Premises without Landlord's written consent. 10. Use the roof on the Premises. IL Place any signs on the Premises without Landlord's written consent. C. Landlord agrees to - 1. Lease to Tenant the Premises for the entire Term beginning on the Commencement Date and ending on the Termination Date. 2. Obey all laws, ordinances, orders, and rules and regulations applicable to the use, condition, and occupancy of the .Premises. 3. Repair, replace, and maintain the (a) roof, (b) foundation, (c) parking and common areas, and (d) structutal soundness of the exterior walls, excluding windows, window glass, plate glass, and doors. 4. Insure the Premises against all risks of direct physical loss in an amount equal to at least 90 percent of the full replacement cost of the Premises as of the date of the loss and liability; Tenant will have no claim to any proceeds of Landlord's insurance policy. 5. Return the Security Deposit to Tenant, less itemized deductions, if any, within sixty days after the termination of this lease. D. Landlord agrees not to - 1 _ Interfere with Tenant's possession of the Premises as long as Tenant is not in default. 2. Unreasonably withhold consent to a proposed assignment or sublease. E. Landlord and Tenant agree to the following: 1. Alterations. Any physical additions or improvements to the Premises made by Tenant will become the property of Landlord. Landlord may require that Tenant, at temfWtion of this lease and at Tenant's expense, remove any physical additions and improvements, repair any alterations, and restore the Premises to the condition existing at the Commencement Date, normal wear excepted- 2. Abatement Tenant's covenant to pay Rent and Landlord's covenants are independent. Except as otherwise provided, Tenant wilt not be entitled to abate Rent for any reason. Release of Claims/Subrogation. Landlord and Tenant release each other from any -4- - - . --- - .,_ .....-orA ..ea flub- /44-4je4 P. 6 claim, by subrogation or otherwise, for any damage to the Premises, the building, or personal property within the Premises, by reason of fire or the elements, regardless of cause, including negligence of Landlord or Tenant. This release applies only to the extent that it is pem-fitted by law, the damage is covered by insurance proceeds, and the release does not adversely affect any insurance coverage. 4. Notice to Imwance Companies. Landlord and Tenant will notify the issuing insurance companies of the release sct forth in the preceding paragraph and will have the insurance policies endorsed, if necessary, to prevent invalidation of the insurance coverage. Casuah), Total or Partial Destruction a. If the Premises are damaged by casualty and can be restored within ninety days, Landlord will, at its expense, restore the Premises to substantially the same condition that existed before the casualty. If Landlord fails to complete restoration within ninety days from the date of written notification by Tenant to Landlord of the casualty, Tenant may terminate this lease by written notice to Landlord- b. If the Premises cannot be restored within ninety days, Landlord has an option to restore the Premises. If Landlord chooses not to restore, this lease will terminate. If Landlord chooses to restore, Landlord will notify Tenant of the estimated time to restore and give Tenant an option to terminate this lease by notifying Landlord within ten days. If Tenant does not terminate this lease, the lease will continue and Landlord will restore the Premises as provided in a. above. C. To the extent the Premises are untenantable after the casualty and the damage was not caused by Tenant, the Rent will be adjusted as may be fair and reasonable. 6_ CondenmationlSubstantiat or Partial Taking a. If the Premises cannot be used for the purposes contemplated by this lease because of condemnation or purchase in lieu of condemnation, this lease will terminate. b. If there is a condemnation or purchase in lieu of condemnation and this lease is not terminated, Landlord will, at Landlord's expense, restore the Premises, and the Rent payable during the unexpired portion of the Term will be adjusted as may be fair and reasonable, c. Tenant will have no claim to the condemnation award or proceeds in lieu of condemnation. 7. Uniform Commercial Code. Tenant grants Landlord a security interest in Tenant's personal property now or subsequently located on the Premises. This lease is a security agreement under the Uniform Commercial Code. Landlord may file a copy of this lease as a financing statement or execute and file a financing statement on behalf of Tenant. 8. Default by Landlord/Events. Defaults by Landlord are failing to comply with any provision of this lease within thirty days after written notice and failing to provide Essential -5- Services to Tenant within ten days after written notice. 9. Default by Landlord/Tenant's Remedies. Tenant's remedies for Landlord's default are to sue for damages and, if Landlord does not provide an Essential Service for thirty days after default, terminate this lease. 10. Default try TenantlEvents. Defaults by Tenant are (a) failing to pay timely Rent, (b) abandoning or vacating a substantial portion of the Premises, and (c) failing to comply within ten days after written notice with any provision of this lease other than the defaults set forth in (a) and (b) above. 11. Default by TenandLandlord's Remedies. Landlord's remedies for Tenant's default are to (a) enter and take possession of the Premises, after which Landlord may relet the Premises on behalf of Tenant and receive the Rent directly by reason of the rcletting, and Tenant agrees to reimburse Landlord for any expenditures made in order to relet; (b) enter the Premises and perform Tenant's obligations; and (c) terminate this lease by written notice and sue for damages. Landlord may enter and take possession of the Premises by self-help, by picking or changing locks if necessary, and may lock out Tenant or any other person who may be occupying the Premises, until the default is curets, without being liable for damages, 12. DefauhlWa * /Mitegation. It is not a waiver of default if the nondefaulting party fails to declare immediately a default or delays in taking any action. Pursuit of any remedies set forth in this lease does not preclude pursuit of other remedies in this lease or provided by law. Landlord and Tenant have a duty to mitigate damages. 13. Security Deposit. If Tenant defaults, Landlord may use the Security Deposit to pay arrears of Rent, to repair any damage or injury, or to pay any expense or liability incurred by Landlord as a result of the default. 14. Holdover. If Tenant does not vacate the Premises following termination of this lease, Tenant will become a tenant at will and must vacate the Premises on receipt of notice from Landlord. No holding over by Tenant, whether with or without the consent of Landlord, will extend the Term. 15. Alternative Dispute Resolution. Landlord and Tenant agree to mediate in good faith before filing a suit for damages. 16_ Attorney's Fees. If either party retains an attorney to enforce this lease, the party prevailing in litigation is entitled to recover reasonable attorney's fees and court and other costs. 17. Venue, Venue is in the county in which the Premises are located. 18. Entire Agreement. This lease, together with the attached exhibits and riders, is the entire agreement of the parties, and there are no oral representations, warranties, agreements, or promises pertaining to this lease or to any expressly mentioned exhibits and riders not incorporated in writing in this lease. 19. Amendment of Lease. This lease may be amended only by an instrument in writing signed by Landlord and Tenant. 20. Limitation of Warranties. THERE ARE NO IMPLIED WARRANTIES OF 10 -...ar+a t ei UUU-744-4324 P• 8 MERCHANTABILITY, OF FITNESS FOR A PARTICULAR PURPOSE, OR OF ANY OTHER KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES THAT EXTEND BEYOND THOSE EXPRESSLY STATED IN THIS LEASE. 21. Notices. Any notice required or permitted under this lease must be in writing. Any notice required by this lease will be deemed to be delivered (whether actually received or not) when deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended recipient at the address shown in this lease. Notice may also be given by regular mail, personal delivery, courier delivery, facsimile transmission, or other commercially reasonable means and will be effective when actually received. Any address for notice may be changed by written notice delivered as provided herein. 22. Abandoned Property. Landlord may retain, destroy, or dispose of any property left on the Premises at the end of the Tenn. Z8 PROPERTIES, LTD. BY: �— ERIC GOLLE PRESIDENT of CAPROCK ENERGY, INC., General Partner of Z8 PROPERTIES, LTD. CHISUM TRAVEL MT,LTD. BY: ERIC GOLLE PRESIDENT of CAPROCK ENERGY, INC., General Partner of CHISUM TRAVEL CENTER, LTD. .7. _.,.�..,., ..ar-L �as UUU-744-4324 p.9 83/ 17 / 28d4 14: 2b 886744: THE STATE OF TEXAS COUNTY OF LUBBOCK HOWARII BAILEY PAGE e2 Resolution No. 2004—RO369 This is to certify that Z8 PROPERTIES, LTD., a Texas Limited Partnership, is the owner of the following described tract of land, to -wit: FMID NOTES on the proposed Plat Units of Tract A, Chisum Travel Center Addition to the City of Lubbock, Lubbock County, Texas, being a 15.48 Acre Tract out of the 88.39 acre parent tract described in Volume 8427, Page 10, Lubbock County Real Property Records and further described by metes and bounds as follows: BEGINNING at a found 3/8" iron rod in the North Right of Way line of U.S. Higbway 84 for the Southwest Co- LICI of the past tract and the Southwest cosier of this tract, whence the Northeast corder of Section 3, Bloch S by calls bears N l * 07' 02" E, 2430.26 feet and S 88* 50' 30" E, 3,697.42 feet; '17HENCE N 01`06'57" E, along the West line of the paraut tract, 36.62 fret to a found rod with yellow cap; THENCE N 31'41'27" E, 18.68 feet to a set W' rod with orange cap marked RPL5 4460; THENCE N 01 °06' S7" E, 69.47 feet to a set h" rod with oranges cap; THENCE N 03012'57" E, 150.10 feat to a set'/s" rod with orange cap; THENCE N 01°06'57" E, 993.52 feet; THENCE N 43051'40" W, 21.22 feet to a found rod with yellow cap for the Northwest cotmcr of the parent tract and the North-west corer of this tract; THENCE S 88050'18" E, along the South Right of Way line of Loop 289, at 15 feet pass a set '/i rod with orange cap marked RPLS 4460, at 79 feet pass a set'/2" rod with, orange cap marked MS 4460, in all 94.00 fed; THENCE S 46008'20" W, 21.20 feet; THENCE S 01006'57" W, 458.09 feet to a set Y," rod with orange cap; THENCE East, 620.73 feet to a set y:" rod with orange cap; THENCE South,1034.75 feet to a set''/," rod with orange cage; THENCE N 98054'42" W, 20.59 feet to a found 319" rod; --- - --I- -... ..atea..dI dub--144-4je4 p.10 83117/2R04 14:26 806744_ HOWARD BAILEY PAGE 03 THENCE N 71 °47'48" W, along the North Right of Way line of Highway 84, 731.46 feet to the PEACE of BEGINNING and containing 15.48 Acres including any Right of Way. The undersigned owmea does hereby plat the above descrlied property into a tract or lot, as shown on the attached map prepared by Abacus Engineering and Surveying, dated as therein set out, and does bamby request that such propaty be platted and re -platted and duly filed for record as required by law, all as shown on the attached map or plat. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS that fbr and in consideration of the special benefits accruing to the said property, Z8 PROPERTIES, LTD., a Texas Limited Partnership, does hereby dedicate all public easements as therein shown and designated upon the said map to the public for public use forever, and does by these presents impress the name "Tract `A', Chisum Travel Center Addition to the City of Lubbock, Lubbock County, Texas_ EXECUTED this the 'f day of March, 2004, ZB PROPERTIES, LTD., i Texas Limited Pu taership BY: CAPROCK >NPRGY, General Partner ERIC J. GOLLE, President THE STATE OF 'TEXAS § § COUNTY OF LUBBOCK § This instrument was acknowledged before me on the 4"I'day of March, 2004, by ERIC 1. GOLLE, as President of CAPROCK ENERGY, INC.. General Pa mer of Z8 PROPERTIES, LTD., a Texas Limited Partnership. 77 - —;:NOTARY PUBLIC, STATE OF TEXAS ,r.k __.. --r k..ar+i L-ai 806-744-4324 P. 11 03/17/2004 I4:26 996744% H WARD BAILEY PAGE F)4 1 uu �� --.at ;1 _ ► _ _ ►i 1 1►1! �1 1► 1 y _-.— IP— -- U P U THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK That ZS PROPERTIES, LTD,, a Texas Limited Partnership, herein called "Grantor' (whether one or more), for and in consideration of the sum of One and No/100 Dollars ($1.00), to Grantor in hand paid by the City of Lubbock, Texas, the receipt and sufficiency of which is hereby acknowledged and confesseA and for the further benefits accruing and to accrue to the ncnaindor of their property, havz by these presents GRANTED, BARGMNED, SOLD and CONVEYED, and by these presents do {GRANT, BARGAIN, SELL and CONVEY unto the City of Lubbock, Texas, its respective representatives, successors and assigns, for the use of the public as a perpetual and permanent drainage; casement and uudergrourid utility easewcnt, the free and uninterrupted use, liberty of passage in, along, on, over, upon, under and across the tract of 1 and lying a nd b eing s ituated i n t he C ounty o f L ubbock, S tate o f T eras, and b cing more particularly described as follows, to -wit: Attached as Exhibit "A" Together with all rights of ingress, egress and regress at any and elk times to accomplish the following purposes: allowing, but not limited to, constructin& reconstructing, rewiring and perpetually maintaining any and all types of water lines, severer lines, gas pipe lines, tckephone and tetegraph lines, electric transmission i3taat and aW other type of public utility, whether named hcr+cin or not, which easement includes at all times and seasons the right of ingress, egress and regress of motor vehicles and personncl engaged c0er in such construction and repair or reading of meters. The easement herein granted shall entitle utility companies to the right to remove or repair any lines within such casement as way be determined by utility companies without being responsible for the replacement of improveanemts, paving or surfacing necessitated by such removal or repair. The casement shall not be fenced or othm-wise obstructed to the passage of vehicular traffic, In order to assure the: said City of Lubbock, Texas, its successors and assigns, of continuing access and enjoyment of said easement, Grantor does hereby cxpr=Ay agree not to erect, build or otherwise allow to be constructed any building or Like permanent structure ovtx the said properties heretofore desenbed and should such building or structure be erected, it is understood that the City of Lubbock, Texas, shall have the right to remove said building or structure from the premises. TO HAVE AND TO HOLD the above described premises, together with all and singular the rights and appurtenances thereto in anywise belonging perpetually unto the City of Lubbock, Texas, i is r espective s uccessors and assigns, and any and all p ubiic u tilities n ow or hereafter - - - ' 1 006-744-4324 p.12 03/17/2004 14- 26 806744- 1 HOWARD BAILEY PAGE 05 n h=chised by the City of Lubbock. Texas, to use the above -described premises for SO long as the public uses the same for the pinvoses herein granted -6 WITNESS THE EXECUTION of this instrument this day of MaTtb, 2004. Z8 PFLOPEELTMS, LTD., a Texas Limited Paft=hip BY. CAPROCK ENERGY, INC., GeTIM-4 Partner 13Y- ERIC 1, GOLLE, President THE STATE OF TEXAS COUNTY OF LUBBOCK This instrument was acknowledged before me on the '4day of March, 2004, by EFIC J. GOLLE, as President of CAPROCK ENERGY, INC., General Partner of Z8 PROPERTIES, LTD,, a Texas Limited Famer&Wp. F-L -0 Tzya't ARY PUBLIC, STATE OF TEXAS -. V.L kai UU6-744-4324 P. 13 OV17/2004 14:26 80674e HOWARD BAILEY P,;� 86 B,XHMrT "A- FIELD NOTES on a 0.404 acre tract to be dedicated as Drainage Fasement and Underground Utility Easement and shown on the proposed Plat of Tract A, Chime Travel Center Addition to the City of Lubbock, Lubbock County, Texas, being out of the 89.39 acre pa wt tract described in Volume 8427, Page 10, Lubbock County Real Property Records and further described by metes and botmds as follows: BEGINNING at a found rod withyellow cap in the West line of the parent tract for the Southwest cozmcx of this tract, whence the Northeast: corner of Section. 3, Block S by caps bears N 10 07' 02" E, 2393.64 feet and S 88' 50' 30" E. 3697.42 feet; THENCE N 3 1'4 1'27" E, 18.69 feet to a set Y," rod with orange cap nudced RPLS 4460; THENCE N 01.°06'57" E, 69.47 th-t to a set Y2" rod with orange cap; THENCE N 03012'5T' F, 150.10 feet to a set Y:" rod with orange cap; THENCE N 01006'5 P' E, 993.52 feet; THENCE N 43°51'40" W, 21.22 feet to a found .rod with yellow cap for the Northwest comer of the parent tract and the Northwest coma of this tract; THENCE s 01°06'57" W. 1224.08 feet to the PLACE of BEGINNING and containing 0.404 Acres including any Right of Way- jun ua u4 ua:tn'/p Chisum Capital 806-744-4324 p.14 83i1712004 14:26 805744 HOWARD YaILEY PAGE 07 THE STATE OF 'TEXAS § § CEO_ MCAIE OF OWNERSff COUNTY OF LUBBOCK § Owner: Z8 Properties, Ltd. Attached as Exhibit "A" Subiect to the following: I'm. None of record. ies: None of record. Judgment lieu: None of record. State tax liens: None of record. Fgkral tax liras: Nonc of record. axes: Current taxes due and owing. Executed this the day of Marcie, 2004.E ). kJo - P. H , IR. Atto at Law 1005, roadway Lubbock, Texas 79401