HomeMy WebLinkAboutResolution - 2015-R0392 - Tax Abatement Agreement - United Supermarkets LLC And Safeway Inc - 12_03_2015Resolution No. 2015-RO392
Item No. 5.7
December 3, 2015
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 United Supermarkets, L.L.C. and Safeway, Inc. 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 on December 3 , 2015.
ATTEST:
Rebe ca Garza, City Secret
APPROVED AS TO CONTENT:
CW P. -X
Cheryl Br ck,
Executive Director of Budget
APPROVED AS TO FORM:
ef
Linda L. Chamales,
Economic Development Attorney
LC cityatt ' Linda, Res -I" Abatement United
November 19, 2015
Resolution No. 2015-RO392
AGREEMENT
STATE OF TEXAS
COUNTY OF LUBBOCK §
This Agreement ("Agreement') is by and between the City of Lubbock, Texas, a
home rule municipality of the State of Texas (hereinafter called "City"), United
Supermarkets, L.L.C. (hereinafter called "United"), and Safeway, Inc. (hereinafter called
"Safeway") ;
WITNESSETH:
WHEREAS, City received from United on the 12th day of August, 2015, an
application for tax abatement for improvements to real property owned by Safeway and for
tangible personal property (equipment) improvements to be owned by United located at
5801 MLK Blvd., Lubbock, Lubbock County, Texas which is further described and
illustrated in the map in Exhibit "A" attached hereto and incorporated herein as fully set
forth herein; and
WHEREAS, upon review of the above application it was determined that the
facility and real property is located in the Reinvestment Zone designated by the City in
Ordinance No. 2015-001 18 covering the above described property; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement For Industrial
Projects in the City of Lubbock was adopted by Resolution No. 2015-RO347 of the City
Council of the City of Lubbock. A copy of the Guidelines and Criteria Governing Tax
Abatement for Industrial Projects in the City of Lubbock is attached as Exhibit "B" and
incorporated herein as if fully set forth; and
WHEREAS, the City complied with all the requirements set forth in V.T.C.A., Tax
Code, Section 312.201 and with all the criteria and guidelines as set forth in the Guidelines
and Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock; and
WHEREAS, the City passed Ordinance No. 2015-001 18 creating a reinvestment
zone for commercial and industrial tax abatement, said zone including the area which is
described in the attached Exhibit "A"; and
WHEREAS, the application received by City from United is an application for the
expansion of an existing facility, more specifically, building improvements to the existing
facility and the addition of tangible personal property (equipment); and
WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a
TAX ABATEMENT AGREEMENT — United Supermarkets, L.L.C.
PAGE
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 Industrial Projects in the City of Lubbock recognizes expansion of an existing facility
and addition of personal property as being eligible for tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and
Criteria Governing Tax Abatement, as adopted by Resolution No. 2015-R0347 have been,
or will be, met by United; and
WHEREAS, the location of the facility and surrounding real property, which are to
be the subject matter of this Agreement, are attached hereto as Exhibit "A" and made a part
of this Agreement for all purposes; and
NOW THEREFORE, for and in consideration of the premises and of the mutual
terms, covenants and conditions herein contained the City, Safeway and United do hereby
agree as follows:
SECTION 1. Recitals. The representations, covenants, and recitations set forth in
the foregoing recitals are material to this Agreement and are hereby incorporated into and
made a part of this Agreement as though they were fully set forth in this Section 1. Exhibits
A, B, and C attached hereto are hereby incorporated into this Agreement as if fully set
forth.
SECTION 2. Term. This Agreement shall commence January 1 of the tax year
after the required improvements (both real property improvements and personal property
acquisition as described in the foregoing recitals) are at least 90 percent complete and shall
expire and be of no further force and effect ten (10) years after such date, unless earlier
terminated as provided elsewhere herein.
SECTION 3. Base Year. The base year applicable to real and personal property,
which is the subject of this Agreement, shall be 2015, and the assessed value of the real
and personal property shall be the assessed value applicable to such property for said year.
SECTION 4. Base Year Taxes. The taxes upon the real and personal 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.T.C.A., 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 set forth above.
SECTION 6. Property Ineligible for Tax Abatement. The property described and
set forth in Section IV(6) of the Guidelines and Criteria Governing Tax Abatement for
Industrial Projects in the City of Lubbock (Exhibit "B") is incorporated by reference herein
TAX ABATEMENT AGREEMENT — United Supermarkets, L.L.C.
PAGE
as if fully set out in this Agreement and fully describes the property ineligible for tax
abatement.
SECTION 7. Exemption from Tax. The City covenants and agrees to exempt from
taxation, in accordance with the appropriate Sections above, the following properties:
(a) All proposed new improvements to be placed upon the property at 5801
MLK Boulevard, which is further described as South Plains Industrial Tract
A, City of Lubbock, Lubbock County, Texas, and more particularly in
Exhibit "A".
(b) All eligible tangible personal property, owned by United, placed in or upon
the real property set forth in Exhibit "A". Any equipment or personal
property owned by United or Safeway prior to the execution of the contract,
or already located in the existing facility, shall not be considered "eligible
tangible personal property" under this Agreement.
(c) It is further understood that all items affixed to the new improvements
placed upon the real property identified above and in Exhibit "A", including
machinery and equipment shall be considered part of the real property
improvement and taxes thereon shall be abated in accordance with the
provisions of subparagraph (a) above set forth.
SECTION 8. Economic Qualifications. United agrees to expend funds necessary
to qualify for tax abatement contemplated in this Agreement by expanding the existing
facility owned by Safeway, as set forth in Section IV(3)(b) of the Guidelines and Criteria
Governing Tax Abatement for Industrial Projects 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 set forth in United's application which is attached hereto as
Exhibit "C" and incorporated herein as if fully set forth.
SECTION 9. Value of Improvements. In accordance with V.A.T.C., Tax Code,
Section 312.204(a), which requires the owner of the property to make specific
improvements or repairs to the property in order to be eligible for tax abatement, United
will expend twenty-six million dollars for the expansion of an existing facility owned by
Safeway and $1.2 million dollars on eligible new equipment and machinery to be located
within the reinvestment zone created by Ordinance No. 2015-001 18. Safeway hereby
agrees to allow United to make the improvements to the property described in Exhibit "A."
United agrees that if the initial tax appraisal on this property does not reflect an increase in
value equal to or exceeding twenty-seven million two hundred thousand dollars
($27,200,000) for the real property improvements and tangible personal property described
in this Agreement, Company will provide invoices and proof of payment for the investment
in the expansion of the facility and the machinery and equipment located in the facility.
SECTION 10. Job Creation. United agrees to create 135 new jobs by December
31, 2016 and retain those jobs for the term of this Agreement.
TAX ABATEMENT AGREEMENT United Supermarkets, L.L.C.
PAGE 3
SECTION 11. City Access to Property. United and Safeway covenant and agree
that City shall have access to the property, which is the subject matter of this Agreement,
upon reasonable notice, during normal business hours, and subject to United's reasonable
security, safety and operational standards, and that municipal employees shall be able to
inspect the property and documents necessary to insure compliance with the terms and
conditions of United's application for tax abatement, attached as Exhibit "C" to this
Agreement.
SECTION 12. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate taxes on eligible property described in Section 7 of this Agreement
according to the following schedule.
Year 1:
100%
Year 2:
90%
Year 3:
80%
Year 4:
70%
Year 5:
60%
Year 6:
50%
Year 7:
40%
Year 8:
30%
Year 9:
20%
Year 10:
10%
SECTION 13. Type of Improvements. United proposes to modify Safeway's
existing facility as described in Exhibit "C". United further states that the proposed
improvements to the property above mentioned commenced on September 1, 2015, and
shall be completed by August 1, 2016. United may request an extension of the above date
from City in the event circumstances beyond the control of United necessitate additional
time for completion of such improvements and such consent shall not unreasonably be
withheld. United shall provide proof of completion within ten days of completion of
improvements described in Exhibit "C".
SECTION 14. Limitation on Use. During the term of this Agreement, United
and Safeway agree to limit the use of the property set forth in Exhibit "A" to commercial
and/or industrial uses as those terms are defined in the zoning ordinances of the City of
Lubbock and to limit the uses of the property to uses consistent with the general purpose
of encouraging development of the enterprise zone during the term of this Agreement.
SECTION 15. Recapture. United and Safeway agree to be bound by and comply
with all the terms and provisions for recapture of abated taxes under this Agreement in the
event of default by United or Safeway after notice and opportunity to cure pursuant to law
and as set forth in Guidelines and Criteria for Tax Abatement in Exhibit "B."
SECTION 16. Certification. United agrees to certify annually in writing to the
City that the owner is in compliance with the terms of the Agreement.
TAX ABATEMENT AGREEMENT United Supermarkets, L.L.C.
PAGE 4
SECTION 17. Compliance. The City may cancel or modify this Agreement if
United or Safeway is in default under the terms of this Agreement. The City shall notify
United and Safeway of any default by written notice specifying the basis for declaration of
default, and with opportunity to cure, as required by and in compliance with Sections IX
and X of the Guidelines and Criteria Governing Tax Abatement for Industrial Projects in
the City of Lubbock, attached hereto as Exhibit *'B."
SECTION 18. Notices. Notices required to be given by this Agreement shall be
in writing, mailed, certified mail return receipt requested, to the following addresses (unless
changed by a party on written notice to the other parties to this Agreement):
CITY OF LUBBOCK UNITED SUPERMARKETS, L.L.C.
City Manager Chris St. Clair, Exec. Vice President
P.O. Box 2000 P.O. Box 6840
Lubbock, Texas 79457 Lubbock, Texas 79424
SAFEWAY, INC.
Bradley R. Beckstrom, Vice. Pres.
250 East Parkcenter Blvd.
Boise, Idaho 83706
SECTION 19. Assignment. This Agreement may be assigned only upon written
approval by the City of Lubbock.
SECTION 20. Representations. City represents that (a) the real property described
in Exhibit "A" is located in the Reinvestment Zone designated by the City in Ordinance No.
2015-001 18; and (b) the City complied with all the requirements set forth in V.T.C.A., Tax
Code, Section 312.201 and with all the criteria and guidelines as set forth in the Guidelines
and Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock.
SECTION 21. Miscellaneous.
(a) In the event any provision of this Agreement is held to be invalid or
unenforceable in any respect, such invalidity or unenforceability shall not affect any other
provisions of this Agreement.
(b) Any amendment to this Agreement shall be of no effect unless in writing
and signed by all parties hereto.
(c) This Agreement may be executed in counterparts, each of which shall consti-
tute an original, but all of which together shall constitute one (1) and the same instrument.
The signature page of any counterpart may be detached therefrom without impairing the legal
effect of the signature(s) thereon provided such signature page is attached to any other
counterpart identical thereto except having additional signature pages executed by any other
party.
TAX ABATEMENT AGREEMENT United Supermarkets, L.L.C.
PAGE 5
SECTION 22. Effective Date. Notwithstanding anything contained herein to the
contrary, this Agreement shall not be effective until such time as it has been finally
passed and approved by the City Council of the City.
(Signatures on the following page)
TAX ABATEMENT AGREEMENT United Supermarkets, L.L.C.
PAGE 6
EXECUTED on December 3
UNITED SUPERMARKETS, L.L.C.
Chris St. Clair, Executive Vice President
SAFEWAY. INC.
Bradley R. Beckstrom,
Vice President, Legal Department
Lc cttyatULmda/ Tax Abatement Agmt United2015
November 5 2015
2015.
CITY OF LUBBOCK
A Municipal orpor t' n
GEE C. ROB RTSON, MAYOR
ATTEST:
Reb t
ca Garza, City Sec f
to
APPROVED AS TO CONT . T:
Cheryl Br6ck,
Executive Director of Budget
APPROVED AS TO FORM:
Linda L. Chamales, Economic
Development Attorney
TAX ABATEMENT AGREEMENT United Supermarkets, L.L.C.
PAGE 7
EXECUTED on
UNITED SUPERMARKETS, L.L.0
Chris St. Clair, Executive Vice President
Bradley R. Beckstrom,
Vice President, Legal D
Lc cityatt/Lmda/TaxAbatementAetnt -- Urated2y1;
November 5, 2015
2015.
CITY OF LUBBOCK
A Municipal Corporation
GLEN C. ROBERTSON, MAYOR
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
Cheryl Brock,
Executive Director of Budget
APPROVED AS TO FORM:
Linda L. Chamales, Economic
Development Attorney
TAX ABATEMENT AGREEMENT — United Supermarkets, L.L.C.
PAGE 7
EXECUTED on , 2015.
UNITE SUPERMARtMT , L.C.
Chris St. Clair, Exec Live Vice President
SAFEWAY, INC.
Bradley R. Beckstrom,
Vice President, Legal Department
Lc: cityatt/Linda/ Tax Abatement Agmt— United 2015
Novcmbcr 5, 2015
CITY OF LUBBOCK
A Municipal Corporation
GLEN C. ROBERTSON, MAYOR
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
Cheryl Brock,
Executive Director of Budget
APPROVED AS TO FORM:
Linda L. Chamales, Economic
Development Attorney
TAX ABATEMENT AGREEMENT United Supermarkets, L.L.C.
PAGE 7
1 HII.3illl
Legal Description — Property
Tract "A", South Plains Industrial, an addition to the City of Lubbock, Lubbock County,
Texas, according to the map, plat and /or dedication deed thereof, recorded in volume 6479,
Page 84 of the Official Real Property Records, and re -filed in Volume 6486, Page 174 of
the Official Real Property Records of Lubbock County, (page 2 of Exhibit A is a map)
TAX ABATEMENT AGREEMENT — United Supermarkets, L.L.C.
PAGE 8
EXHIBIT A
EXHIBIT B
Guidelines and Criteria Governing Tax Abatement
For Industrial Projects in the City of Lubbock
TAX ABATEMENT AGREEMENT — United Supermarkets, L.L.C.
PAGE 9
Resolution No. 201 5-R0347 Exhibit B
Item No. 6.3
October 22. 2015
RESOLUTION
WIll RI -AS. in November of 2013. the City of Lubbock approved unilorm guidelines
and criteria l'or tax abatement for industrial projects %%ithin the City of Lubbock: and
W 14L- REAS. state lacy requires that the guidelines and criteria approved must be re-
adopted every two years. and the Clt1 of Lubbock desires to approve ne\\ guidelines for
industrial tax abatement: NOW THEREFORE:
BE 1T RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
TI IAT the Cite Council of the CIt1 of Lubbock hereby approves and adopts "Guidelines
and Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock". which
guidelines and criteria are attached as Exhibit "A" and are made a part hereof for all intents and
purposes. These guidelines shall become effective upon expiration of the pre% iousIN appro\ ed
guidelines.
Passed by the City Council on October 22 _ _ . 2013.
ROB RTSON. MAYOR
ATTEST:
Peb -ca Garza- City Secretary
APPROVED AS 1'O CONTENT:
Cheryl Brock. ExeeUti\ve Director of Budget
APPROVED AS TO 1=0RM:
Linda Chamales.
Economic Development Attorne\
I.c ematt/LmdaResoluuonsRes-la\ %balemcntlndustna1Gwdchncs-20IS
October 1 201 i
Resolution No. 2015-R0347 Exhibit B
Exhibit "A"
City of Lubbock, TX
Guidelines and Criteria Governing Tax Abatement For
Industrial Projects In The City of Lubbock
SECTION 1. General Purnose:
The City of Lubbock (City) is committed to the promotion of high quality development in all parts of the
City of Lubbock. Texas: and to an ongoing improvement in the quality of life for the citizens residing_
within the City. The City recognizes that these objectives are generally served by enhancement and
expansion of the local economy. The City 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 City. It is the policy of the City 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 Cit-, is under any
obligation to provide tax abatement to any applicant and attention is called to V.T.C.A., Tax Code, Section
312.002(d). With the above rights reserved all applications for tax abatement will be considered on a case
by case basis.
SECTION 11. Definitions:
As used within these guidelines and criteria, the following words or phrases shall have the following
meaning:
I. Abatement of Taxes: To exempt from ad valorem taxation all or part of the value of certain
Improvements placed on land located in a Reinvestment Zone designated for economic
development purposes as of the date specified in the Tax Abatement Agreement for a period
of time not to exceed ten (10) years.
2. Abatement Agreement: (I) A contract between a property owner and the City for the
abatement of taxes on qualified property located within a Reinvestment Zone or a designated
Enterprise Zone: or, (2) a contract for the abatement of taxes between the City and a certified
air carrier who owns or leases Real Property located within the Reinvestment Zone or
Personal Property or both as authorized by \r.T.C.A.. Tax Code, Section 3 12204(e)
3. Advanced Technologies: advanced manufacturing which requires higher skills and results
in higher wages and investment.
4. Base Year Value: The assessed value of property eligible for tax abatement as of January I
preceding the execution of an Abatement Agreement as herein defined.
5. Distribution Center Facility: A building or structure including Tangible Personal Property
used or to be used primarily to receive, store, service or distribute goods or materials.
6. Expansion of Existing Facilities or Structures: The addition of buildings. structures.
machinery or equipment to a Facility.
7. Existing Facility or Structure: A facility as of the date of execution of the Tax Abatement
Agreement, located in or on Real Property eligible for tax abatement.
8. Facility: The improvements made to Real Property eligible for tax abatement and including
the building or structure erected on such Real Property and'or any Tangible Personal Property
to be located in or on such property.
Exhibit B
2015 Industrial'ran Abatement Guidelines
October 9.2015
9. Information and Data Center: Facility used to house computer systems and associated
components, such as telecommunications and storage systems. The main purpose of the
facility is running applications that handle the core business and operational data of
organizations, off -site backups and other informational operations.
10. 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 Propem, as herein defined, or any Tangible Personal Property placed
in or on said Real Property.
11. Manufacturing Facility: A Facility which is or will be used for the primary purpose of the
production of goods or materials or the processing or change of goods or materials to a
finished product.
12. Medical Services: Facilities such as hospitals, specialty hospitals and other like facilities that
are classified under North American Industrial Classification System Code 622.
13. ,Modernization/Renovation of Existing Facilities: The replacement or upgrading of
existing facilities.
14. New Facility: The construction of a Facility on previously undeveloped Real Propem
eligible for tax abatement.
15. 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.
16. Other Basic Industry: A Facility other than a distribution center facility, a research facility,
a regional service facility or a manufacturing facility which produces goods or services or
which creates new or expanded job opportunities and services a market of which 50% of
revenues come from outside of Lubbock County, Texas.
17. Owner: The record title owner of Real Property or the legal owner of Tangible Personal
Property. In the case of land leased from the City 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.
18. Productive Life: The number of years a Facility is expected to be in service.
19. Real Property: Land on which improvements are to be made or fixtures placed.
20. Regional Services Facility: A Facility. the primary purpose of which is to service or repair
goods or materials and which creates job opportunities within the affected jurisdictions.
21. Reinvestment Zone: Real Property designated as a Reinvestment Zone under the provisions
of V.T.C.A., Tax Code. Section 312.202.
22. Research Facility: A Facility used or to be used primarily for research or experimentation to
improve or develop new goods and/or services or to improve or develop the production
process for such goods and/or services.
23. Tangible Personal Property: Any Personal Property, not otherwise defined herein and
which is necessary for the proper operation of any type of Facility.
Exhibit B
2015 Industrial Tax Abatement Guidelines
October 9. 2015
SECTION 111. 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 City.
SECTION IV. Criteria and Guidelines for Tax Abatement:
Any type of Facility will be eligible for tax abatement consideration provided such Facility meets the
following guidelines and criteria:
1. To qualify for Tax Abatement, the company must meet both of the following criteria:
a) The modernization or expansion of an existing facility of any type as herein defined or
construction of a new facility of any type as herein defined.
b) Producer. manufacturer or distributor of goods and services of which 50 percent or more
are distributed outside of Lubbock County.
2. In addition to the aforementioned, the City will consider abatement only if the company
meets one of the following criteria:
a) One of the following target industries:
i) Advanced Technologies and Manufacturing
ii) Value-added Agricultural Production including Food Processing and Machinery
iii) Research and Development
iv) Medical Services (as defined in Section 11 Definitions)
v) Warehouse/Distribution
vi) Corporate Headquarters of a Regional/National Service Center
vii) Information and Data Centers
b) The project is not included as a target industry, but has the potential of generating
additional, significant economic development opportunities to Lubbock.
3. The company must meet one of the following criteria:
a) The project will add at least S1 million in Real Property improvements, or S2 million
in new Personal Property, or 25 new permanent jobs if the facility is a new company to
Lubbock.
b) The project will add at least S500.000 in Real Property improvements, or SI million in
new Personal Property, or 15 new permanent jobs if the facility is an existing company.
4. New or existing facilities of any type herein defined, located in a designated Enterprise Zone,
Reinvestment Zone, or upon Real Property eligible for such status will be eligible for
3
Exhibit B
2015 Industrial Tax Abatement Guidelines
October 9. 2015
consideration for tax abatement status provided that all other criteria and guidelines are
satisfied.
5. Improvements to Real Property are eligible for tax abatement status.
G. 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;
1) aircraft;
g) housing (single family and multi -family);
h) boats;
i) hotel accommodations;
j) motel accommodations:
k) retail businesses;
1) property owned by the State of Texas or any State agency; and,
in) property owned or leased by a member of the City Council who did not have an active
tax abatement in place before becoming: a member of the governing body.
7. In order for a Facility to qualify for abatement, the following conditions must apply:
a) The owner or leaseholder of Real Property must make eligible improvements to the real
property: and.
b) In the case of lessees. the leaseholder must have a lease commitment of at least five (5)
years.
8. In Reinvestment Zones_. the amount and term of abatement shall be determined on a case by
case basis. however. in no event shall taxes be abated for a term in excess of ten (10) years.
The amount of the taxable value of improvements to be abated and the term of the abatement
shall be determined by the City in all cases where the property for which tax abatement is
applied for is within the City limits of the City. A Reinvestment Zone that is a State
Enterprise Zone is designated for the same period as a State Enterprise Zone as provided by
Chapter 2303. Government Code. The authority of all other twine units shall be as set forth
in V.T.C.A.. Tax Code. Section 312.206.
4
Exhibit B
2015 Industrial Tax Abatement Guidelines
October 9, 2015
In Enterprise Zones, the governing body of each taxing jurisdiction may execute a written
agreement with the owner of the property. The agreement may, but is not required to, contain
terms that are identical to those contained in the agreement with the municipality, county, or
both, whichever applies, and the only terms for the agreement that may vary are the portion of
the property that is to be exempt from taxation under the agreement and the duration of the
agreement.
9. No property shall be eligible for tax abatement unless such property is located in a
Reinvestment Zone in accordance with V.T.C.A., Tax Code, Section 312.202 or a designated
Enterprise Zone as provided by V.T.C.A Gov. Code, Chapter 2303, and the tax abatement
application is filed with the City before construction begins.
10. Notwithstanding any of the requirements set forth in Section IV(3), the Lubbock City Council
upon the affirmative vote of a three -fourths (3/4) of its members may vary any of the above
requirements when variation is demonstrated by the applicant for tax abatement that variation
is in the best interest of the City to do so and will enhance the economic development of the
City. By way of example only and not by limitation the Lubbock City Council 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 City.
e) Any other evidence tending to show a direct economic benefit to the City.
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 City 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 Lubbock City Council 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 Lubbock City Council does not:
a) Limit the discretion of the Lubbock City Council to decide whether to enter into a
specific Tax Abatement Agreement;
b) Limit the discretion of the Lubbock City Council to delegate to its employees the
authority to determine whether or not the Lubbock City Council should consider a
particular application or request for tax abatement; or,
Exhibit B
2013 Industrial Tax Abatement Gutdelutes
October 9, 2013
c) Create any property. contract, or other legal right in any person to have the Lubbock City
Council 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. The City shall have full authority to request any additional information
from the applicant that the Lubbock Cit% Council deems necessary to assist it in considering
such application.
SECTION V. Criteria and Guidelines for Creation of Reinvestment Zone:
No Property shall be eligible for tax abatement unless such property is located in a
Reinvestment Zone designated as such in accordance with V.T.C.A., Tax Code, Section
312.202. To be designated as a Reinvestment Zone an area must meet one of the follo%%ing:
a) Substantially arrest or impair the sound growth of the municipality or county creating the
zone, retard the provision of housing accommodations. or constitute an economic or
social liability and be a menace to the public health. safety, morals, or welfare in its
present condition and use because of the presence of:
. a substantial number of substandard, slum, deteriorated, or deteriorating structures:
2. the predominance of defective or inadequate sidewalks or streets;
3. faulty size, adequacy, accessibility or usefulness of lots;
4. unsanitary or unsafe conditions.
5. the deterioration of site or other improvements:
6. tax or special assessment delinquency exceeding the fair value of the land;
7. defective or unusual conditions of title.
8. conditions that endanger life or property by fire or other cause: or.
9. any combination of these factors;
b► Be predominantly open and, because of obsolete platting, deterioration of structures or
site improvements, or other factors, substantially impair or arrest the sound growth of the
municipality:
c► Be in a federally assisted new community located in a home rule municipalit% or in an
area immediately adjacent to a federally assisted new community located in a home rule
municipality;
d) Be located entirely in an area that meets the requirements for federal assistance under
Section 119 of the Housing and Community Development Act of 1974 (42 U.S.C.
Section 5318).
e) Encompass signs. billboards. or other outdoor advertising structures designated by the
goveming body of the municipality for relocation, reconstruction. or removal for the
Exhibit B
2015 Industrial Tax Abatement Guidelines
October 9, 2015
purpose of enhancing the physical environment of the municipality, which the legislature
declares to be a public purpose: or,
f) Be reasonably likely as a result of the designation to contribute to the retention or
expansion of primary employment or to attract major investment in the zone that would
be a benefit to the property and that would contribute to the economic development of
the municipality.
2. For purposes of this Section, federally assisted new community is a federally assisted area:
a) That has received or will receive assistance in the form of loan guarantees under Title
of the National Housing Act (12 U.S.C., Section 1749aa et seq). and,
b) A portion of which has received grants under Section 107 (a)( I ) of the Housing and
Community Development Act of 1974. as amended.
3. The Lubbock City Council, as required by Section 312.201, shall hold a public hearing on the
designation of an area within its jurisdiction as a Reinvestment Zone. The burden shall be on
the owner of the property sought to be included in the zone or applicant for the creation of the
Reinvestment Zone to establish the following:
a) That the requirements of Subsection 1 of this Section have been met.
b) That the improvements sought are feasible and practical.
4. No later than the seventh day before the date set for the above public hearing; notice of such
hearing shall be:
a) Published in a newspaper having general circulation in the City.
b) Delivered in writing to the presiding officer of the governing bod) of each taxing unit
that includes in its boundaries Real Property that is to be included in the Reinvestment
Zone,
5. At the public hearing above described in Section 3 above. any interested person is entitled to
speak and present evidence for or against the designation of such Reinvestment Zone.
G. At the conclusion of the hearing described in Section 3 above, the Lubbock ON Council shall
enter its findings as follows:
a) That the applicant or owner has or has not met his burden as hereinabove set forth.
and/or.
b) That the improvements sought are or are not feasible and practical.
c) That the proposed improvements sought will or will not be a benefit to the land to be
included in the Reinvestment Zone and to the City alter the expiration of an agreement
entered into under V.T.C.A.. Tax Code, Section 312.204.
7. An application for the creation of a Reinvestment Zone shall not be granted unless the Cit%
enters affirmative findings to Subsections a, b, and c of Section 6 above set forth.
Exhibit B
2015 Industrial Tax Abatement Guidelines
October 9, 2015
S. At the conclusion of the public hearing herein required and upon the affirmative finding of
the Lubbock City Council as required by Section 7 above set forth, the governing body may
designate a Reinvestment Zone in accordance with the provisions of V.T.C.A.. Tar Code,
Sections 312.201,
9. The designation of a Reinvestment Zone expires five years after the date of the designation
and may be renewed for periods not to exceed five years, except that a Reinvestment Zone
that is a State Enterprise Zone is designated for the same period as a State Enterprise Zone as
provided by Chapter 2303, Govemment Code. The expiration of the designation does not
affect an existing Tax Abatement Agreement made in accordance with V.T.C.A.. Tax Code.
Section 312.201 through Section 312.209.
10. Designation of an area as an Enterprise Zone under the Texas Enterprise Zone Act. Chapter
2303, Subchapter C. Texas Government Code, constitutes designation of the area as a
Reinvestment Zone under Subchapter B of the Property Redevelopment and Tax Abatement
Act without further hearing or other procedural requirements other than those provided by the
Texas Enterprise Zone Act. Chapter 2303, Subchapter C, Texas Government Code.
SECTION VI. Tax Abatement Agreement:
1. After the creation of a Reinvestment Zone as hereinabove authorized a Tax Abatement
Agreement may be executed between the owner and City. 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 tares 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(G) hereinabove shall be fully
tared.
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 proposed 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 tar abatement shall be granted only to the extent:
I. 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 Tar Abatement
Agreement.
Exhibit B
2015 Industrial Tax Abatement Gwdebnes
October 9. 2015
h) Provide for the portion of the value of the improvements to Real Property of
improvements to be abated. This determination is to be made consistent with the
provisions of Section IV(6) of these guidelines and criteria as hereinabove set forth.
i) Provide for the commencement date and the termination date. In no event shall the
commencement date occur prior to 90 percent completion ofthe project (both Real and
Personal Property). In no event shall the termination date exceed a period of ten years
from the commencement date.
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 ne%% facility, modernization of a facility, or
expansion of a facility.
3. The nature of the construction, proposed time table of completion. a map or
drawings of the improvements above mentioned.
4. The amount of investment and the commitment for the creation of new jobs.
5. A list containing the kind, number and location of all proposed improvements.
6. Any other information required by the CitN.
k) Provide a legal description of the Real Propert% upon which improvements are to be
made.
l) Provide access to and authorize inspection of the Real Property or improvements by
employees of the City. 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 redevelopment of the zone
during the period covered by the Tax Abatement Agreement.
n) Provide the contractual obligations in the event of default by owncr. violation of the
terms or conditions by owner, recapturing property tax revenue in the event owner
defaults or otherwise fails to make improvements as provided in said Tax Abatement
Agreement, and any other provision as may be required or authorized by State Law.
o) Contain each term agreed to by the owner of the property.
p) Require the owner of the property to certify annually to the Lubbock City Council that
the owner is in compliance with each applicable term of the agreement.
q) Provide that the Lubbock City Council 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 enters into an agreement for tax abatement
under V.T.C.A., Tax Code, Section 3 12204, the Lubbock City Council or a designated
n
Exhibit B
2015 Industrial Tax Abatement Guidelines
October 9.2015
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 as required by V.T.C.A Tax
Code, Section 312.2041. Tile notice must include a copy of the proposed Tax Abatement
Agreement.
3. A notice, as above described in Section 2, is presumed delivered when placed in the mail,
postage paid and properly addressed to the appropriate presiding officer. A notice properly
addressed and sent by registered or certified mail for which a return receipt is received by the
sender is considered to have been delivered to the addressee.
4. Failure to deliver the notice does not affect the validity of the agreement.
SECTION VII. Application:
1. Any present owner of taxable property located within an affected jurisdiction may apply for
tax abatement by filing an application with the City of Lubbock. The application has to be
filed with the City prior to the construction start.
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 or Existing Facility.
d) A map indicating the approximate location of improvements on the Real Property
Facility or Existing Facility together with the location of any or all Existing Facilities
located on the Real Property or Facility.
e) A list of any and all Tangible Personal Property presently existing on the Real Property
or located in an existing facility.
f) A 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 modernization of a facility (of any type herein defined); or.
2. construction of a new facility (of any type herein defined); or.
3. expansion of a facility (of any type herein defined); or,
4. any combination of the above.
in
Exhibit B
2015 Industrial "fax Abatement Guidelines
October 9. 2015
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) A statement certifying that the business, or a branch, division, or department of the
business. does not and will not knowingly employ an undocumented worker.
n) Any other information which the City of Lubbock deems appropriate for evaluating the
financial capacity of the applicant and compatibility of the proposed itttprovetttetits with
these guidelines and criteria.
o) Information that is provided to the City 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 the City after the
agreement is executed is not confidential. (V.T.C.A.. Tax Code, Section 312.003).
p) The City shall determine if the property described in said application is within a
designated Reinvestment Zone. If the City determines that the property described is not
within a current Reinvestment Zone then they shall so notify the applicant and said
application shall then be considered both as an application for the creation of a
Reinvestment Zone and a request for tax abatement to be effective after the zone is
created.
SECTION Vill. Investment/Jobs Documentation
1. The investment commitment in the Tax Abatement Agreement will be verified as follows:
a. The City will request the value of the Real and Personal Property from the Lubbock
Central Appraisal Value. and if the value minus the base year, meets the agreement
commitment, it will service as verification that the investment met the requirement in the
agreement; or
b. If the Lubbock Central Appraisal District value, minus the base year value, does not meet
the investment commitment in the agreement, the Company will provide invoices
documenting the actual investment to verify the investment met the investment
commitment in the agreement.
2. Confirmation of the job creation requirement:
a. The company will provide the City with a copy of the State Employment report filed with
the State of Texas for the quarter ending after the date in the agreement that the jobs are
required to be created.
Exhibit B
2015 Industrial'rax Abatement Guidelines
October 9, 2015
3. Job creation will be audited annually to assure retention of jobs. Each year during the City
audit of Tax Abatement Agreements, the company will provide the City with the 4"' quarter
employment report filed with the State of Texas to confirm job retention. If the employment
in the 4" quarter report does not meet the requirement for retention of the created jobs, the
City may request the quarterly reports for the 111. 2nd. and 3 d quarters of that audit year to
determine compliance. The City may request and the company shall promptly provide any
additional information that the City deems necessary to confirm that the company is in
compliance with the terms of the Tax Abatement Agreement.
SECTION IX. 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 time City shall give the applicant or owner sixty
(60) days notice of such failure. The applicant or owner shall demonstrate to the satisfaction
of the City 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 or owner fails to
demonstrate that he is taking affirmative action to cure his failure, the City shall have three
options:
(a) The City may renegotiate the Tax Abatement Agreement with the applicant or owner in
which case the current Guidelines and Criteria Governing Tax Abatement for Industrial
Projects in the City of Lubbock shall apply to the new Agreement: or
(b) The City may determine that good cause exists to cancel the Tax Abatement Agreement
and all abatement of taxes shall terminate immediately. or
(c) The City may terminate the Tax Abatement Agreement and recapture taxes abated under
Section X, Recapture.
2. In any of the three options in Paragraph I above, the City shall determine ►ehether default has
occurred by the applicant or owner in the terms and conditions of the 'fax Abatement
Agreement and shall so notify all other affected jurisdictions.
SECTION X. Recapture
In the event that any type of facility 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 time
reasonable control of applicant or owner for a period of 180 days during the term of a Fax
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 the City by no later than January 3151 of the
following year. Taxes abated in years prior to the year of termination shall be payable to the
City 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 City that the discontinuance of producing goods or
services was as a result of fire, explosion, or other casualty or accident or natural disaster or
12
Exhibit B
2015 Industrial Tax Ahatement Guidelines
October 9. 2015
other event beyond the control of applicant or owner. In the event that applicant or owner
meets this burden and the City is satisfied that the discontinuance of the production of goods
or services was the result of events bevond 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 the City by no later than January 3 1 " of the
following year. Taxes abated in years prior to the year of termination shall be payable to the
City within sixty IN) days of the date of termination. The one year time period. hereinabove
mentioned, shall commence upon written notification from the City to the applicant or owner.
3. In the event that the applicant or owner has entered into a Tax Abatement Agreement to make
improvements to a facility of any type described in Section I 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 City shall give the
applicant or owner sixty (60) days notice of such failure. The applicant or owner shall
demonstrate to the satisfaction of the City, 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 the City by no later than January .il" of the following year.
Taxes abated in years prior to the year of termination shall be payable to the City within sixty
(60) days of the date of termination.
In the event that the City 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 City.
shall give the applicant or owner sixty (60) days %vritten notice to cure such default. In the
event such default is not cured to the satisfaction of the City 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 tennination takes place
shall be payable to the City by no later than January 3 1 " of the following year. Taxes abated
in years prior to the year of termination shall be pay able to the City 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 the City, to become delinquent and fails to timely and properly follow the
legal procedures for their protest or contest, then in such even the Tax Abatement Agreement
shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the
calendar year in which termination, under this Section, takes place shall be payable to the
City by no later than January 3 1 " of the following year. Taxes abated in years prior to the
year of termination shall be payable to the City 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
the City, 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 City to the applicant or
owner. Taxes abated during the calendar year in which termination, under this Section takes
place shall be payable to the City by no later than January 31" of the following year. Taxes
abated in years prior to the year of tennination shall be payable to the City within sixty (60)
days of the date of termination.
13
Exhibit B
2015 Industrial Tax Abatement Guidelines
October 9. 2015
6. The date of termination as that term is used in this Section IX shall, in every instance, be the
601h day after the day the City 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
applicant or owner within the sixty (60) day notice period, the applicant or owner shall be
responsible for so advising the City and obtaining a release from the notice of default front
the City, failing in which, the abatement remains terminated and the abated taxes must be
paid.
7. In every case of termination set forth in Paragraphs 1. 2. 3. 4, and 5 above, the City shall
determine whether default has occurred by the applicant or owner in the terms and conditions
of the Tax Abatement Agreement and shall so notify 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 XI. Miscellaneous:
1. Any notice required to be given by these criteria or guidelines shall be given in tlhe following
manner:
a) To the applicant or owner: written notice shall be sent to the address appearing on the
Tax Abatement Agreement.
b) To the City: 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 City which levies taxes of the amount of assessment.
3. Upon the completion of improvements made to any type of Facility as set forth in Section
VI I I(I) of these criteria and guidelines a designated employee or employees of the Cit%
having executed a Tax Abatement Agreement with applicant or owner shall have access to
the Facility to insure 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 the City.
5. These guidelines and criteria adopted by the City Council are effective for two years from the
date adopted and shall remain in force for two years. At the end of the two year period these
guidelines and criteria may be readopted, modified, amended or rewritten as the conditions
may warrant.
6. Each affected jurisdiction shall determine whether or not said affected jurisdiction elects to
become eligible to participate in tax abatement. In the event the affected jurisdiction elects b)
resolution to become eligible to participate in tax abatement, then such affected jurisdiction
shall adopt guidelines and criteria b) separate resolution forwarding a cop) of both
resolutions to all other affected jurisdictions.
14
Exhibit B
2015 Industrial Tax Abatement Guidelines
October 9. 2015
7. These guidelines only apply to the City of Lubbock and any company wishing to apply for
tax abatement from other taring jurisdictions will need to contact the applicable taring
jurisdiction for their criteria and guidelines and requirements for applying for tax abatement.
8. 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.
9. The guidelines and criteria once adopted by the City may be amended or repealed b� a vote of
three -fourths (3/4) of the members of the Lubbock City Council during the two -dear tern in
which these guidelines and criteria are effective.
Is
EXHIBIT C
United's Application for Tax Abatement
TAX ABATEMENT AGREEMENT — United Supermarkets, L.L.C.
PAGE 10
city of
lubbock TEXAS City of Lubbock
Application for Industrial Tax Abatement
This application should be riled prior to the beginning of construction or the purchase of equipment. If applying for a tax abatement in a
jurisdiction other than City of Lubbock, a separate application must be completed for all otter taxing jurisdictions. This application will
become part ofthe Tax Abatement Agreement and any knowingly false representations will be grounds for the voiding of the agreement. An
original copy of this request should be submitted to Mrs. Cheryl Brock, Capital Program Manager, Finance Department, City of Lubbock,
1625 13* Street, 2"' Floor, Lubbock, TX 79401.
Part I - Applicant Information Application Date � / I o / LO_ S
Company Name: U tnt real Super t %ar V-e�SLL4fhysical Address: i 63o p rlo►v+1 o Ar�le� ubboc.%,
Telephone: $o6' 1 C1 1— 02:2.0 Current Number of Employees: 15.000 `FX19�
Annual Sales: $ Z lay 11 t m Employees in City Limits: 1.1500
Mailing Address: -P.O. Box (0�'�o1L.y bboaic,TJ� Years in Lubbock: 50+
'I `I47.3
(& Corporation 0 Partnership ❑ Proprietorship
Attachment I. Attach a description of the Applicant Company, including a brief history, corporate structrtre,
business plan, and annual statement, if available.
Part II - Project Information
Location Address: t7l `6 0 1 11 t--K 161 Vd Zipcode: -1`ti 4 0 `t
School District: 1-- u bb v L k
Legal Description: Sou +6 p `a t h e Z r,�(u s-1•r i a i `t'r (�,
Attachment 2: Attach site map shaiving project location and shotring proposed construction if applicable
Project Description: ❑ New Construction i& Expansion 0 Modernization
Attachment 3: Attach statement fully explaining project, describe existing site and improvements, describe all
proposed improvements and provide list of improvements and equipment for 1phich abatement is requested, and
list of any tangible personal propertypresently existing on the Real Propeny tf it is an existing facility.
Is the site located in an Enterprise Zone? Q Yes J4 No
Section A — Facility Information
Type of Facility/abatement:
❑ Advanced Technologies and Manufacturing K Warehouse/Distribution
0 Research and Development V Value-added Agriculture Production
0 Medical Services 0 Information and Data Centers
0 Corporate Headquarters — Regional/National Service Center
❑ The project is not included as a target industry, but has the potential of generating additional, significant
economic development opportunities to Lubbock
Industrial Tax Abatement Application Page I
Describe product or service to be provided:
S+orei ih -rexaS and N*-uuMiitico
Is the company a producer. manufacturer, or distributor of goods and services of which 50 percent or more are
distributed outside Lubbock. && Yes 0 No
Attachment 4. Provide documentation demonstrating that the facility will distribute or manufacture goods and
sen4ces of which 50 percent or more are distributed outside of Lrtbbock County,
Is the company applying for tax abatement ❑ New Company to Lubbock JK Existing Company
The project meets one of the criteria in the Guidelines and Criteria Governing Tax Abatement for Industrial
Projects, Section IV. 3. 19 Yes ❑ No
Section B — Base Year Value
Attach a statement of the assessed value of the Real Property, Facility, or existing facility for the base year from
the Lubbock Central Appraisal District.
Attachment 5 — Lubbock Central Appraisal District Assessed 11ahte
Section C - Variance
Is the applicant seeking a variance? ❑ Yes J6 No
If "yes," attach letter requesting and justifying the variance, with supplemental information.
PART III - ECONOMIC INFORMATION
Construction Estimate:
Start Date: o ot ?-o t S
Completion Date: 0
Modernization:
Contract Amount. $ 26 '=a • aim
Peak Construction Jobs: 35
Estimated current economic life of structure
Added economic life from modernization
Permanent Job Creation/Retention:
Current employment:
3 o years
30 years
111 Jobs to be Retained: 1 l 1
Jobs created at opening: 135 By year 20 1 b
If existing facility, what is the current plant payroll. $ 9-3, M. "ro
Estimated amount of new payroll:
Ca(
Industrial Tax Abatement Application Page 2
Estimated Appraised Value On Site
Land
Improvements
Personal
Pro r
Value on January 1 preceding abatement
4111POO
16135y a4o
35, M, 00
Estimated value of new abatable improvements
NA
2.68 MU, o'ov
%am, Cr
Estimated value of properties not subject to abatement
Estimated value of property after improvements
51,359,E 145,OCMICW
Do you certify that this business (including any branch, division, or department of this business) does not
currently, and will not knowingly in the future, employ an undocumented worker? $ Yes O No
Cbmnanv Representative to be Contact
Ndme
V,(
Title
bl ftALk
Address
Le, J
Address
e-mail
Name & Title
R06-g3r-7YoZ
Phone Number
C 57 f f� U�l t P 41• 011`
e-mail
CW1_\.
Indushial Tax Abalcment Application Poge 3
!A-Mck cti-% me nt ' I
The
United - 0
Family. n
The United Family® at a Glance
No in its 99n year of operation, United Supermarkets, LLC, dJxe. The United Family'k Is a Texas -based grocery chain with
stares in 34 markets across North and West Texas and New Mexico. It is a seff4ft bulling company with Its hem*fflers In
Lubbock end distribution canters in Lubbock and Roanoke, United currm* aerates 66 locations under fire unique brands:
Lim. Market , AMWA&hdM and United Express. Known for its community hvdvement, The
United Fan* cansklers it a privilege to be able to give back to the communities it serves, not only through charitable g[ving but
also through Its UCrew team member vdunteer program.
• Representing the core concept of the company's stores, United Supermartcetso dkm Guests tided quality,
motive prices and genuine Taxes hospitality with the best meat and produce In town — in stores that are easy and
tun to shop. Thera are 37 United Supermarkets locations throughout Not and West Texas.
• Market Stra Wls; a unique and Inspiring shopping expsriemce —the piece to go for people who care about food, who
want a header lifestyle, and who are open to crash new food chess. Its the place *where a" day meats gourmet' —
whers guests can MM many shopping data to one shoe. The 15 Market Street locations con be found in Abilene,
Allen, America, Cdleyv* Coppell, Flower Mound, Frisco, Lubbodc (3), McKinney, rand Plano and Wichita Fail
Wth an adAwal Market Street slated for in Odessa In late 2015.
• Amigose offers a unique blend of tre 0mal and cultural favorites for Hispanic shoppers, as well as anyone who loves
authentic Mexican flavors and unbeatable values. Amigos stores are located in Hereford, Plainview, Lubbock and
Amarillo.
• Ten Alberhm Market• status are the newest banners of The United Family. West Taxes stores are located in Midland
(2). Odessa (2) and Seri Angelo (1). The 5 New Msdoo markets include Alamogordo (1), Carlsbad (1), Curls (1).
Hobbs (1) and Roswell (4 Abutsons Market stores reflect a long history and tradition of excellence established by
Joe Albartson In 1939 making them a perfect fill for The United Family.
• United Express combGres trash prepared foods with tradtional on -the -go Items In a convenience store with a unique
W. There are 32 United Express fuel and convenience locations (one under construction) across Nash and West
Texas, Including 10 stankialons convenience atom, many with Orfve-up windows. AN but one of the United Express
locations Is located adj mt to a United Family supermarkal.
The Un W Family also Includes Was subsidiary operations:
• RC. Taylor Distributing is a Isadfnng regional distributor of products and supplies for convenience stores, grocery
chains, independent grocers, concession stands and specially stores in Taxes and New Mmko from a 100,000 square
foot warehouse fatty In Lubbock. It bagaun doing business In 1949 and Joined The United family In 2007.
• A Lubbock kkn since 1955, Praiers Foods become a part of The United Family in August 2009. What began as a
food company specializing in hcifty meals has grown today to include specially cooked meals. unique side dishes,
ices h Mtn and much more. Pratem products can be found in all United Family stores and In other supermarkets
thioughad the country, lo both private label sad Praters peduging.
• Llano Logistics, Inc. Is one of the newest members of The United Family, having been acquired by the company from
Exel, Inc in May 2013. Llano operates United's two distribution centers, a 600,000 squem400t!achy in Lubbock and
e 200,000 square -foot fealty in Roanoke.
More than one miiim Guests shop our stores dhM week, end The UnW Family still embodies the philosophy of Its founder —
quality, value, Guest service and community involvement. We believe our growth and success are tied to our ummering
commitment to service — to our Guests, Tearn Members and communities. This pWW*y is summed up in our Mission
Statanurnt, Uftate Servka. Supertar PerRamwxa. Positive Impact'
The United Family traces its rods to 1916, when H.D. Snell opened his first United Cash Store In Sayre, Olda. In 1948. the
Texas stores became a separate company when H.O. 'Jack' Snell, Jr., purchased the Vernon and Wellington grocery stores
from his father and, one year later, but a third store In C Mm& An innovative vislonary, Jack Snell Introduced United to
Lubbock In the 19509, Wichf Fails In the 1960s and Amarillo in the 1970s. Ud iota 20t3, the company was stiff led by the
I I P a g e
SW farrdly, with Robert Snag servhv as chairman of the board, and Gerdt and Mott Bumstead — great•grandsmks of H.D. Snell
—ser" as co•prealdents.
In September 2013, the company announced that ft had agreed to be acquired by Albertson's I.I.C. The ac 5ffion became
official In late December 2013, and The United Family Is now a whdy-ownedsubcidfery of Abartsoe's LLC.
The Unibd apirk flourishes In the attitudes and enthusiaam of our more than 15,000 Team Members, who keep alive H.D. Sners
principles of unparel W Guest service, honest pricing, qually and frestunesa, oubbri ft selection, urwomprorrdskug Mali ity
and =n nunity Involvement.
Since Its founding The United Family has adhered to its founders pMoaophy of gmwfng end expo* g Into markets In order to
'build up' communities — one of the greatest privgeges we oft is to be at>te to give back to the communitles we senor The
United Family was named the knauugurai winner of the Supermarket Now Tommtnnky Serike Award' in 2003 for its Maw
community WwAs er fawns, Mew orgy vdw tear Team Members to provide community service in every United
neighborhood, and Maw volunteers contributed moor than 50,00 hours of community service during the ifra110 years of line
In 2001, The United Family was named winner of the Better Business Bureau's'National Torah Award forMedketplace Ethlcs,'
joining previous winners IBM, Sorry CwMtlon and Dollar General Stores In being recognized for ethical treatment of Guests,
employees and communities. The company has been on the Dallas MoMng News' fop 100 Places to Work in DFW Rat and on
Texas MorWs'B W Companies to VVork for In Texas' (fit three times.
The United Familywo named the 2009 Tamily Business of the Year" by the M tftute for FwJy Business at Baylor University,
and was named the 20W't>ell Operator of the Year' by 1nStore Bayer A4WAne.
In 2012, The United FamilyTM was presented whh a "ER Award for Excellence by the Shopper Tedmology IneVlule for Its
markeft egorta, including the launch of wbmlwd cabanas and Whane ads, as wall as for Its Smart Rewards program for
Market Street guests in the Dallas -Fort Worth Melroplex. The company also was named by Modem Baking as one of the lop 50
ku•Slore Bakedas' kn 2012.
Currant Store Locations
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66 Stores in 34 Communities
75M Ortarufo Ave. . Lubbock, TX 79423 . 800.791.0220 • www.unkedkexas.com
21Page
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Attachment 3:
Project consists of the addition of 200,0D0 square feet to Llano Distrubution Center. Construction costs
expected to be $26AM, with additional capital outlay of $22.7M for other personal property. The
expansion will create 190 new positions to be based In Lubbock, Texas. This will generate additional
payroll ofS7.2M annually.
PAAe*,ric,-r 3
MHE Purchases:
Qty
Cost
Total Cost
Annual Depredation
Ufe
Tractors
24
$ 140,000
$
3,360,000
840,000
4
Trailers
47
$ 67,000
$
3,149,000
393,625
8
$ 1,233,625
Forklift
10
$ 38,970
$
389,700
48,713
8
Loader
3
$ 36,805
$
110,415
13,802
8
Battery
26
$ 6,820
$
177,314
35,463
5
Pallet jack
35
$ 8,782
$
307,381
38,423
8
Battery
70
$ 2,598
$
181,860
36,372
5
Total MHE
$
7,67S,670
$ 172,772
Projected Additional Inventory:
$
15,000,000
$
22,67S,670
Lubbock warehouse purchase:
Building
1
$ 46,000,000
$
46,000,000
$ 4,600,000
10
Lubbock Building Expansion Costs:
Sq. FL
$ Per Ft
Total cost
Annual Depredation
Ufe
Freezer
48384
$
140
$
6,773,760
677,376
10
Cooler
43985
$
110
$
4,838,328
483,833
10
Ambiant
102816
$
90
$
9,253,440
925,344
10
$ 2,086,553
City
Price
Total cost
Annual Depreciation
Ufe
Racking
910
$
2,400
$
2,184,000
218,400
10
Banana Rooms
4
$
200,000
$
800,000
80,000
10
Concrete and Parking
$
2,000,000
200,000
10
Systems and Equipment
$
124,700
24,940
5
$ 523,340
Total Building Expansion Annual Depreciation
$ 2,609,893
Aj+a current Store Locations
66 Stores in 34 Communities
78M Womb Ave. • LUbbock, TX 79423 . 805391.0220 • www.un tedtex Ayn
21Page
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Pay TDXU P 4r.�
00239025
SAFEWAY INC
PO BOX 20
BOISE,ID 83726
6801 MILK BLVD
LUBBOCK, TX 79404
SOUTH PLAINS INDUSTRIAL TR A
0209(0209 - City Of Lubbock)
R804590-00010-00000-00O
CL13 (City Of Lubbock)
0LB (Lubbock County)
HSP (Lubb Cnty Hospital)
SLB (Lubbock 180)
WHP (HI Plains Water)
Warranty Deed
2016-19730
675
2015 Value
$0.0 +
$492,980 +
$0.0 +
$26,526,020 +
$0.0
$0.0 +
$0
$0 +
$27,019,000 =
Improvements
GIS Maps ID Type SPTB Segs Value
Data Downloads LnigtC (Commercial) F1 (F1 - Real Commercial) 5 $13,345,217
IM C (Commercial) F1 (F1 - Real Commercial)1 $ 11,966,128
Esp. Property Taxpayer R€e(Commercial) F1 (F1 - Real Commercial)1 $189,000
Esp. Appraisal Protest and]pWI(Commerclal) F1 (F1 - Real Commercial)1 $ 409,429
Jgp¢C (Commercial) F1 (F1 - Real Commercial)1 $ 45,547
Esp. Property Tax Basics IMI&C (Commercial) F1 (F1 - Real Commercial)1 $ 45,766
Freeport Worksheet JMgZC (Commercial) F1 (F1 -Real Commercial)1 $ 538,813
Property Tax Binding Arbitration
9
tWjhvww.lutiborkcad.orglApprdsd PdMItJ4ccesslPropertyDell.aspx?PropenylD=81000Udi WA OPAppraisd&TaxYear-2015&NodeK)n11&PrlpErVMC . 112
Memo
To: United Supermarkets, LLC Tax Abatement File
From: Cheryl Brack
cc:
Date: 11/4/15
Tax Abatement requirement for more than 50% of products distributed outside of Lubbock
Re: County.
United Supermarkets, L.L.C. provided the Fiscal Policy department with a breakdown of their sales by
area in order to satisfy the requirement in the Industrial tax abatement guidelines Section IV 1(b) that
more than 50% of their products be distributed outside of Lubbock County. Both Linda Chamales and I
reviewed the information and certify that based on the sales data provided to us, the company does ship
more than 50% of their product outside of Lubbock County. The data was considered proprietary by
United Supermarkets, L.L.C., so the detailed Information was returned to the company after review and
certification.
The breakdown of sales is as follows:
18.34 % of sales — Lubbock County
81.7% of sales outside of Lubbock County
Cheryl Brock, ExecutIve Director of Budget
Linda Chamales, Economic Development Attorney