HomeMy WebLinkAboutResolution - 2016-R0414 - Tax Abatement Agreement - Monsanto Southern Production Company LLC - 11_17_2016Resolution No. 2016-RO414
Item No. 6.2
November 17, 2016
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute, for
and on behalf of the City of Lubbock, a Tax Abatement Agreement with Monsanto
Southern Production Company, LLC, and all related documents. Said Tax Abatement
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 November 17, 2016
Lq6-�v
DANIEL M. POPE, MAYOR
ATTEST:
Re b cca Garza, City Secre
APPROVED AS TO CONTENT:
Ojttic
Cheryl 11rock, Executive Director of Finance
APPROVED AS TO FORM:
Justi t
ruitt, 4sistant City Attorney
ecdocs/RES. Agreement— Monsanto Southern Production Company, LLC --Tae Abatement
October 12, 2016
I
Resolution No. 2016-RO414
CITY OF LUBBOCK TAX ABATEMENT AGREEMENT
This Tax Abatement Agreement is by and between the City of Lubbock, a Texas home rule
municipal corporation, and the Monsanto Southern Production Company, LLC, a limited
liability company, for the abatement of certain taxes at the property located at 11613 North
Interstate 27, Lubbock, Lubbock County, Texas.
RECITALS
WHEREAS, on March 15, 2016, the City of Lubbock received an application for tax
abatement from the Monsanto Southern Production Company, LLC, concerning
improvements to real property and tangible personal property; and
WHEREAS, the Monsanto Southern Production Company, LLC's application for tax
abatement addresses, among other things, the construction of a new facility and the addition
of new equipment to the property located at 11613 North Interstate 27, Lubbock, Lubbock
County, Texas; and
WHEREAS, upon review of the Monsanto Southern Production Company, LLC's
application for tax abatement, the City Council of the City of Lubbock found that the property
located at 11613 North Interstate 27, Lubbock, Lubbock County, Texas is in the
Reinvestment Zone designated by the City of Lubbock in Ordinance No. 2016-0 0152 and
WHEREAS, the City Council of the City of Lubbock, through Resolution No. 2015-110347,
adopted the Guidelines and Criteria Governing Tax Abatement for Industrial Projects in the
City of Lubbock; and
WHEREAS, the Texas Tax Code, Section 312.002, and Section IV of the Guidelines and
Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock, recognize
the construction of a new facility and the addition of personal property in the form of
equipment as being eligible for tax abatement; and
WHEREAS, the City Council of the City of Lubbock hereby finds that the Guidelines and
Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock have been,
or will be, met by the Monsanto Southern Production Company, LLC; and
WHEREAS, the City of Lubbock has complied with all the requirements set forth in the
Texas Tax Code, Section 312.201, and with all of the requirements set forth in the Guidelines
and Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock; and
NOW THEREFORE, in consideration of the promises, terms, covenants, and
conditions contained in this Tax Abatement Agreement, the City of Lubbock and the
Monsanto Southern Production Company, LLC agree as follows:
AGREEMENT
1. Definitions. The following terms shall have the meanings ascribed to them in this Section
for purposes of this Agreement:
"A&•eenaent" means this Tax Abatement Agreement, including its Recitals and Exhibits.
City of Lubbock Tax Abatement Agreement— Monsanto Southern Production Company, LLC Page 1
"Application" means the Monsanto Southern Production Company, LLC's application for
municipal tax abatement submitted to the City, a copy of which is attached to this Agreement
as "Exhibit C."
"City" means the City of Lubbock.
"Company" means the Monsanto Southern Production Company, LLC.
"Guidelines" means the Guidelines and Criteria Governing Tax Abatement for Industrial
Projects in the City of Lubbock that were adopted by the City Council through Resolution
No. 2015-110347, a copy of which is attached to this Agreement as "Exhibit B."
"Improvement Project " means the improvements to real property and the tangible personal
property that are eligible for tax abatement and that are specified in the Monsanto Southern
Production Company, LLC's application for municipal tax abatement, a copy of which is
attached to this Agreement as "Exhibit C."
"Site " means the Monsanto Southern Production Company, LLC's property located at 11613
N. Interstate 27, Lubbock, Lubbock County, Texas, with a more particular description and
depiction attached to this Agreement as "Exhibit A."
"Term" means the period of time in which this Tax Abatement Agreement is effective as
provided in Section 3.
2. Recitals and Exhibits. The representations, covenants, and recitations which are set forth
in the foregoing Recitals, and which are included in the Exhibits attached hereto, are material
to this Agreement and are hereby incorporated into and made a part of this Agreement.
3. Term. This Agreement shall become effective upon the date of its execution by the
Parties, and unless this Agreement is terminated earlier according to any provision contained
herein, the Term of this Agreement shall be ten (10) years, with such Term commencing on
January 1 of the tax year after the Improvement Project is at least ninety percent (90%)
complete.
4. Base Year and Assessed Value. Tile base year applicable to the real and personal
property, which is the subject of this Agreement, shall be 2016. Tile assessed value of the
real and personal property, which is the subject of this Agreement, shall be the January 1,
2016 assessed value of such property as certified by the Lubbock Central Appraisal District.
5. Base Year Taxes. The Company shall pay the base year taxes upon the real and personal
property which is the subject of this Agreement according to the base year assessed value.
Therefore, the Company hereby acknowledges that the base year taxes levied upon the real
and personal property at the Site cannot be abated.
6. Abatement of Increase in Base Year Tax. In accordance with Texas Tax Code, Section
312.204, real property taxes applicable to the real property that is the subject of this
Agreement shall be abated only to the extent that the assessed value for any given year within
the Term exceeds the base year assessed value.
7. Property Ineligible for Tax Abatement. The property described and set forth in Section
IV (6) of the Guidelines is incorporated by reference herein as if fully set out in this
Agreement and frilly describes the property ineligible for tax abatement.
City of Lubbock Tax Abatement Agreement — Monsanto Southern Production Company, LLC Page 2
8. Exemption from Tax for Improvement Project. The City covenants and agrees to
exempt from taxation, in accordance with the appropriate Sections above, the following:
a. All proposed new improvements to be placed upon the Site.
b. All eligible tangible personal property placed in or upon the Site. Any equipment or
personal property owned by the Company prior to the execution of this Agreement, or
already located in an 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) of this Section.
9. Economic Qualifications. As set forth in Section IV(3)(a) of the Guidelines, the
Company agrees to expend fiends necessary to qualify for the tax abatement provided by this
Agreement by constructing a new facility on the Site. A description of the kind, number, and
location of all proposed improvements is set forth in the Application attached hereto.
10. Value of Improvements. In accordance with Texas Tax Code, Section 312.204(a), the
Company will expend one hundred million dollars ($100,000,000) for the construction of a
new facility and the purchase of new equipment and machinery to be located at the Site
After the commencement of this Agreement, the Company agrees that if the initial tax
appraisal on the Site does not reflect an increase in value at the Site equal to or exceeding
one hundred million dollars ($100,000,000) for the real property improvements and tangible
personal property described in this Agreement, the Company will provide to the City invoices
and proof of payment for the construction of the new facility and the purchase of new
equipment and machinery located at the Site in an amount of not less than one hundred
million dollars ($100,000,000).
11. Job Creation. Through the construction and operation of the new facility which is the
subject of this Agreement, the Company agrees to create forty (40) new jobs at the Site. By
December 31, 2017, the Company agrees to create ten (10) jobs at the Site and retain those
jobs throughout the Term. In addition to the ten (10) jobs created in 2017, the Company
agrees to create thirty (30) jobs at the Site by December 31, 2018, and retain those jobs
throughout the Term.
12. Portion of Tax Abated. Throughout the Term, the City agrees to abate taxes on the
Improvement Project according to the following schedule:
Year 1:
100%
Year 6:
100%
Year 2:
100%
Year 7:
100%
Year 3:
100%
Year 8:
100%
Year 4:
100%
Year 9:
100%
Year 5:
100%
Year 10:
100%
13. Type of Improvements. In its Application, the Company proposes to construct a facility
and purchase machinery and equipment for the Site. The Company acknowledges that the
construction of the new facility and the purchase of the new machinery and equipment
Cite of Lubbock Tax Abatement Agreement— Monsanto Southern Production Company, LLC Page 3
commenced on March 15, 2016, and the Company hereby guarantees that the construction
and purchase shall be completed by May 31, 2017. In the event that circumstances beyond
the control of the Company necessitate additional time for the completion of such
construction and purchasing, the Company may request an extension of the above date from
the City and such consent shall not unreasonably be withheld. Company shall provide proof
of completion within ten (10) days of completion of such construction and purchase.
14. Limitation on Use. Throughout the Term, the Company agrees to litnit the use of the
Site to commercial and industrial uses, as those terms are defined in the zoning ordinances
of the City, and to limit the uses of the Site to those uses consistent with the general purpose
of encouraging development of the reinvestment zone. To the extent that it is authorized to
do so under law, the City hereby acknowledges that the Improvement Project satisfies the
general purpose of encouraging development of the reinvestment zone.
15. Compliance and Recapture. In the event of default of this Agreement by the Company,
other than a default by the Company in connection with a casualty or natural disaster, the
City shall provide notice to the Company of the same. If the Company does not cure such
default after the notice of such default and after an opportunity to cure such default have been
provided to the Company by the City, then the City may exercise any of the options available
to it by law or under the Guidelines, including the City's ability to:
i. renegotiate this Agreement as set forth in Section IX(a) of the Guidelines:
ii. terminate this Agreement under Section IX(1)(b) of the Guidelines; or
iii. terminate this Agreement and recapture abated taxes under this Agreement in
accordance with Sections IX(1)(c) and X of the Guidelines.
16. City Access to Property. Throughout the Term, the Company covenants and agrees that
the City shall have access to the Site and to the Improvement Project upon reasonable notice,
during normal business hours, and subject to the Company's reasonable security, safety,
confidentiality, and operational standards, and that the City shall be able to inspect the Site
and the Improvement Project and any documents reasonably necessary to insure the
Company's compliance with the terms and conditions of the Application and this Agreement.
17. Certification. The Company agrees to provide to the City annual, written certification
that the Company is in compliance with the terms of the Agreement. Such annual, written
certification shall be delivered by the Company to the City on a form provided by the City
within a reasonable time after the Company's receipt of said form from the City.
18. Notices. Unless otherwise altered by either Party through written notice to the other
Party, any notice required to be given by this Agreement shall be in writing and sent by
certified mail, return receipt requested, to the following addresses:
CITY OF LUBBOCK MONSANTO COMPANY
City Manager Jeff McFarland, Sr. Director, Domestic Tax
PO Box 2000 800 N. Lindbergh Blvd., GSEE
Lubbock, Texas 89457 Saint Louis, MO 63167
19. Assignment. This Agreement may not be assigned without the written the approval of
the City.
City of Lubbock Tax Abatement Agreement— Monsanto Southern Production Company, LLC Page 4
20. Representations. The City represents that:
a. the Site is within the Reinvestment Zone designated by Ordinance No. 2016-0 152
and
b. the City has complied with all of the requirements set forth in Texas Tax Code, Section
312.201 and with all the criteria and guidelines as set forth in the Guidelines.
21. Miscellaneous.
a. Severabilily. 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. Amendments. Any amendment to this Agreement shall be of no effect unless in writing
and signed by all parties hereto.
C. Counleipai-ls. This Agreement may be executed in counterparts, each of which shall
constitute an original, but all of which together shall constitute one 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.
d. Venue and Applicable Lain. This Agreement is subject to all present and future valid
laws, orders, rules, ordinances, and regulations of the United States of America, the
State of Texas, the Parties, and any other regulatory body having jurisdiction. This
Agreement shall be construed and governed according to the laws of the State of Texas.
The sole venue for any action, controversy, dispute, or claim arising under this
Agreement shall be in a court of appropriate jurisdiction in Lubbock County, Texas
exclusively.
e. Riphts and Remedies Reserved. The City reserves the right to exercise any right or
remedy available to it by law, contract, equity, or otherwise, including without
limitation, the right to seek any and all forms of relief in a court of competent
jurisdiction, provided that any claim by the City of a default by the Company under
this Agreement shall not result in additional liability to the Company beyond the
forfeiture and recapture of the abatement authorized under this Agreement. Further, the
City shall not be subject to any arbitration process prior to exercising its unrestricted
right to seek judicial remedy. The remedies set forth herein are cumulative and not
exclusive, and may be exercised concurrently. To the extent of any conflict between
this provision and another provision in, or related to, this Agreement, the former shall
control.
f. Public Information. This Agreement is public information. To the extent, if any, that
any provision of this Agreement is in conflict with Tex. Gov't. Code Ann. Chapter 552
et seq., as amended, the same shall be of no force and effect.
g. No Third -Party Beneflciaries. This Agreement is entered solely by and between, and
may be enforced only by and among the Parties. Except as set forth above, this
Agreement shall not be deemed to create any rights in or obligations to any third parties.
City of Lubbock Tax Abatement Agreement— Monsanto Southern Production Company, LLC Page 5
h. No Personal Liability. Nothing in this Agreement is construed as creating any personal
liability on the part of any employee. officer or agent of the Company or of any public
body that may be a Party to this Agreement.
i. No Joint Enleiprise. This Agreement is not intended to, and shall not be construed to
create any joint enterprise between or among the Parties.
j. No Indemni icalion by CiIZ The parties expressly acknowledge that the City's authority
to indemnify and hold harmless any third Party is governed by Article X1, Section 7 of
the Texas Constitution and any provision which purports to require indemnification by
the City is invalid.
k. Sovereign Immunily Acknowledged and Retained. THE PARTIES EXPRESSLY
ACKNOWLEDGE AND AGREE THAT NO PROVISION OF THIS
AGREEMENT IS IN ANY WAY INTENDED TO CONSTITUTE A WAIVER
BY ANY PARTY OF ANY IMMUNITIES FROM SUIT OR LIABILITY THAT
A PARTY MAY HAVE BY OPERATION OF LAW. THE CITY RETAINS ALL
OF ITS GOVERNMENTAL IMMUNITY.
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
This Tax Abatement Agreement is hereby executed on November 17 , 2016.
CITY OF LUBBOCK
DANIEL M. POPE, MAYOR
MONSANTO SOUTHERN
PRODUCTION COMPANY, LLC
la �k; z
Phillip M Gnolfo,
Sr. Director, Domestic Tax
City of Lubbock Tax Abatement Agreement— Monsanto Southern Production Company, LLC Page 6
ATTEST:
0 9 Let
Reb cca Garza, City Secret ry
APPROVED AS TO CONTENT:
Cheryl Brock, Executive DYrector of Budget
APPROVED AS TO FORM:
Ju in uitt, Aloistant City Attorney
City of Lubbock Tax Abatement Agreement— Monsanto Southern Production Company, LLC Page 7
EXHIBIT A: The Property — Legal Description & Map
METES AND BOUNDS DESCRIPTION of a l 50.00-acre tract of land located in Section
39, Block D, L&SV Railroad Company Survey, Abstract 6, Lubbock County, Texas, being
the East 150.00 acres of that same land described as Tract 1 in deed recorded in County Clerk
File Number 2007048830, Official Property Records of Lubbock County, Texas, being
further described as follows:
BEGINNING at a 1/2" iron rod and cap marked "HUGO REED ASSOC" set in the North
line of said Section 39 for the Northwest corner of this tract, which bears S. 88°28'45" E.
a distance of 1644.47 feet from a 1/2" iron rod found at the Northwest corner of said Section
39;
THENCE S. 88028'45" E., along the North line of said Section 39, a distance of 2441.55
feet to a railroad spike found in the West right-of-way line of Interstate Highway 27 at the
Northeast corner of this tract;
THENCE S. 01022' 14" E., along the West right-of-way line of said 1-27, at 50.14 feet pass
a 1/2" iron rod with cap marked "STEVENS RPLS 4339" found in reference, continuing
for a total distance of 998.02 feet to a 1/2" iron rod with cap marked "HUGO REED
ASSOC" set for a corner of this tract;
THENCE S. 02047'29" W., continuing along said right-of-way line a distance of 651.95
feet to a 1/2" iron rod with cap marked "HUGO REED ASSOC" set for a corner of this
tract;
THENCE Southeasterly, continuing along said right-of-way line, along a curve to the left,
said curve having a radius of 3994.83 feet, a central angle of 1390' 18", a chord bearing of
S. 03°57'38" E., a chord distance of 939.44 feet to a 1/2" iron rod with cap marked
"STEVENS RPLS 4339" found at a corner of this tract;
THENCE S.10043'14" E., continuing along said right-of-way line a distance of 47.32 feet
to a 1/2" iron rod with cap marked "RL SMITH RPLS 3906" found in the South line of the
North half of said Section 39 at the Southeast corner of this tract;
THENCE N. 88036'34" W., along the South line of said North Half, a distance of 2568.08
feet to a 1/2" iron rod with cap marked "HUGO REED & ASSOC" set for the Southwest
corner of this tract;
THENCE N. 01 ° 19'20" E. a distance of 2635.78 feet to the Point of Beginning.
City of Lubbock Tax Abatement Agreement— Monsanto Southern Production Company, LLC Page 8
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EXHIBIT B: Guidelines and Criteria Governing Tax Abatement
For Industrial Projects in the City of Lubbock
City of Lubbock Tax Abatement Agreement — Monsanto Southern Production Company, LLC Page 10
Resolution No. 2015-R0347
Item No. 6.3
October 22. 2015
RESOLUTION
WHEREAS. in November of 2013. the City of Lubbock approved uniform guidelines
and criteria for tax abatement for industrial projects within the City of Lubbock: and
WHEREAS. state law requires that the guidelines and criteria approved must be re-
adopted ever- two years, and the City of Lubbock desires to approve new guidelines for
industrial tax abatement: NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
'rHA'I' the City Council ofthe City of Lubbock hereby approves and adopts "Guidelines
and Criteria Governing Tax Abatement for Industrial Projects in the Cite of Lubbock". which
guidelines and criteria are attached as Exhibit -'A" and are made a part hereof for all intents and
purposes.-I'hesc guidelincs shall become effective upon expiration of the previously approved
guidelines.
Passed by the Cite Council on October 22 . 201 5.
- ".X/",00/
G ° ROBLRI'SON. MAYOR
ATTEST:
Reb fca Garza, City Secretary
APPROVED AS 'I'0 CONTENT:
Cheryl Brock. Executive Director of Budget
APPROVED AS TO I-ORM:
Linda Chamales.
Economic Development Attorney
Is cit%auLmda'Resolutions'Res-laiAbatement Ind usiralGui del etes-201S
October 1. 2015
Resolution No. 2015-R0 347
Exhibit "A"
City of Lubbock, TX
Guidelines and Criteria Governing Tax Abatement For
Industrial Projects In The City of Lubbock
SECTION 1. General Purpose:
The Cite of Lubbock (Cit) ) 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 b) 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 «ith 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 an)
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:
1. Abatement of Taxes: To exempt from ad valorem taxation all or part of the value of certain
Improvements placed on land located in a Reinvestment Zone designated for economic
development purposes as of the date specified in the Tax Abatement Agreement for a period
of time not to exceed ten (10) years.
2. 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 V.T.C.A.. Tax Code, Section 312.204(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 propert) 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 Propert)
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
tite building or structure erected on such Real Property and/or any Tangible Personal Property
to be located in or on such property.
2015 Industrial'ra�, 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 Property, as herein defined. or any Tangible Personal Property placed
in or on said Real Propene.
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 Property
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 (tours 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 arc 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.
2015 Industrial Tax Abatement Guidelines
October 9.2015
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 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 RegionalMational 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 S I million in Real Property improvements, or S2 million
in new Personal Property, or 25 new permanent jobs if the facility is a nee% 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
2015 Industrial Tax Abatement Ctndchneti
October 9. 201;
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 farms 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,
m) property owned or leased by a member of the City Council who did not have an nctive
tax abatement in place before becoming a member of the governing bode.
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.
S. In Reinvestment Zones, time 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 %%here 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, Governnment Code. The authority of all other taxing units shall be as set forth
in V.T.C.A.. Tax Code. Section 312.206.
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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 terns 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 3 12202 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 (3,14) 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 terns 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. Tile
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,
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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 City Council deems necessary to assist it in considering
such application.
SECTION V. Criteria and Guidelines for Creation of Reinvestment Zone:
I. No Property shall be eligible for tax abatement unless such propem, is located in a
Reinvestment Zone designated as such in accordance with V.T.C.A.. Tax Code, Section
312.202. To be designated as a Reinvestment Zone an area must meet one of the following:
a) Substantially arrest or impair the sound growth of the municipality or county creating the
zone, retard the provision of housing accommodations. or constitute an economic or
social liability and be a menace to the public health. safety, morals, or welfare in its
present condition and use because of the presence of:
I . 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:
G. tax or special assessment delinquency exceeding the fair value of the land;
7. defective or unusual conditions of title.
S. 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 municipality 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 531 S);
e) Encompass signs, billboards, or other outdoor advertising structures designated by the
governing body of the municipality for relocation, reconstruction. or removal for the
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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 X
of the National Housing Act (12 U.S.C.. Section 1749aa et seq); and,
b) A portion of which has received grants under Section 107 (a)(1) of the (lousing and
Community Development Act of 1974. as amended.
3. The Lubbock City Council, as required by Section 312.201. shall hold a public (tearing 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 body 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.
6. At the conclusion of the hearing described in Section 3 above, the Lubbock City 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 after the expiration of an agreement
entered into under V.T.C.A.. Tax Code, Section 312.204.
7. An application for the creation of a Reinvestment Zone shall not be granted unless the City
enters affirmative findings to Subsections a, b, and c of Section 6 above set forth.
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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., Tax 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, Government Code. The expiration of the designation does not
affect an existing Tax Abatement Agreement made in accordance with V.T.C.A., Tax Code,
Section 312.201 through Section 312.209,
10. Designation of an area as an Enterprise Zone under the Texas Enterprise Zone Act, Chapter
2303, Subchapter C. Texas Government Code, constitutes designation of the area as a
Reinvestment Zone under Subchapter B of the Property Redevelopment and Tax Abatement
Act without further hearing or other procedural requirements other than those provided by the
Texas Enterprise Zone Act, Chapter 2303, Subchapter C. Texas Government Code.
SECTION NIL 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 taxes paid on the base year assessed value shall not be abated as a result
of the execution of said Tax Abatement Agreement.
c) Provide that ineligible property as subscribed in Section IV(G) 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 proposed improvements to be
made in or on the Real Property.
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,
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.
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h) Provide for the portion of the value of the improvements to Real Propert) 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 of the 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:
I. The type of facility.
2. Whether the improvements are for a new facility, modernization of a tacilit), 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.
G. Any other information required by the City.
k) Provide a legal description of the Real Property upon which improvements are to be
made.
1) Provide access to and authorize inspection of the Real Property or improvements b%
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 owner, violation of the
terms or conditions by owner, recapturing property tax revenue in the event owner
defaults or otherwise fails to make improvements as provided in said Tax Abatement
Agreement, and any other provision as may be required or authorized by State Law.
o) Contain each term agreed to by the owner of the property.
p) Require the owner of the property to certify annually to the 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 312.204, the Lubbock City Council or a designated
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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. The 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.
li) A proposed time schedule for undertaking and completing the proposed improvements.
i) A general description stating whether the proposed improvements are in connection with:
I. 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.
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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 improvements 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 tite 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 VII1. 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 stet the investment
commitment in the agreement.
_'. 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.
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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 411, quarter
employment report filed with the State of Texas to confirm job retention. If the employment
in the 411 quarter report does not meet the requirement for retention of the created jobs, the
City may request the quarterly reports for the I", 2"', and 3" 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 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 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 whether deftutlt 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.
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 the
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 tenminate. Taxes abated during the calendar year in
which termination takes place shall be payable to the City by no later than January 31s' 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 tennination. 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
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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 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 "fax 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 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 one year time period, hereinabo%c
mentioned, shall commence upon written notification from the City to the applicant or owner.
2. In the event that the applicant or owner has entered into a Tax Abatement Agreement to male
improvements to it 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 31" 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 tennination.
3. In the event that the City determines that the applicant or owner is in default of any of the
terns or conditions contained in the Tax Abatement Agreement, then in such event the City.
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 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 termination takes place
shall be payable to the City by no later than January 3 I" 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.
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 31°t of the following year. Taxes abated in years prior to the
year of termination shall he payable to the City within sixty (60) days of the date of
termination.
5. In the event that the applicant or owner, who has executed a Tax Abatement Agreement with
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 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.
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G. The date of termination as that terns is used in this Section I\ 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 from
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 I. 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:
I. Any notice required to be given by these criteria or guidelines shall be given in the 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
VIII(1) of these criteria and guidelines a designated employee or employees of the City
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.
G. 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 guidelines and criteria by separate resolution forwarding a copy of both
resolutions to all other affected jurisdictions.
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7. These guidelines only apply to the City of Lubbock and any company wishing to apply for
tax abatement from other taxing jurisdictions will need to contact the applicable taxing
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 \+.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 -sear term in
which these guidelines and criteria are effective.
is
EXHIBIT C: Monsanto Southern Production Company, LLC's
Application for Tax Abatement
City of Lubbock Tax Abatement Agreement— Monsanto Southern Production Company, LLC Page I
I ub 9o'y
ck .
TIXAS City of Lubbock
Application for Industrial Tax Abatement
This application should be filed prior to (lie 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 other taxing jurisdictions. This application will
become part of the 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 Ws. Cheryl Brock, CapiW,Piom= Manage r,.Ein_Wce Department
)City ofLubbook, 1625 13`'street, 2W Floor, Lubbock, TX 79.40I.
Part I - Applicant Information Application Date 3/16/2016
Company Name: Monsanto Company Physical Address: 800 N. Lindbergh, G5EE
Mr. Mike F. Rogers
St. Louis, MO 63167
Telephone: 314-694-3828 Current Number of Employees: 22,500
Annual Sales: $15 Billion Employees in City Limits: 20 at another facility
Mailing Address: Same_ Years in Lubbock: 6
X Corporation — Partnership — Proprietorship
Attachment 1: Attach a description of the Applicant Company, Including a brief history, corporate structure,
business plan, and annual statement, ifavailable.
Part II - Project Information
Location Address: 11613 N. IH27, Lubbock, TX Zipcode: 79403
School District: New Deal ISD
Legal Description: BLK D SEC 39 AB 6 N/2 ACS: 150
Attachment 2: Attach site map showing project location and showing proposed construction if applicable
Project Description: X New Construction — Expansion — 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 which abatement is requested, and
list of any tangible personal property presently existing on the Real Property if it is an existing facility.
Is the site located in an Enterprise Zone? Yes o X
Section A — Facility Information
Type of Facility/abatement:
-- Advanced Technologies and Manufacturing — Warehouse/Distribution
Research and Development X Value-added Agriculture Production
-- Medical Services — Information and Data Centers
— 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 1
Describe product or service to be provided: Cottonseed delinting, conditioning, packaging and distribution.
Is the company a producer, manufacturer, or distributor of goods and services of which 50 percent or more are
distributed outside Lubbock. X Yes No
Allachmenl 4: Prot,ide doculnenlalion denionshw1hig lhal the f wilily w l distribute of nicint facture goods and
services of it�hich 50 percent or more are dislr-ibuled oulside of Lubbock County;
Is the company applying for tax abatement X New Company to Lubbock — Existing Company
The project meets one of the criteria in the Guidelines and Criteria Governing Tax Abatement for Industrial
Projects, Section IV. 3. X Yes -- No
Section B — Base Year Value
Attach a statement of the assessed value of the heal Property, Facility, or existing facility for the base year from
the Lubbock Central Appraisal District.
Allaclunenl 5 Lubbock Cenh•al Appraisal Dish-ld Assessed I4alue
Section C - Variance
Is the applicant seeking a variance? — Yes X No
If "yes," attach letter requesting and justifying the variance, with supplemental information.
PART III - ECONOMIC INFORMATION
Construction Estimate:
Start Date: 3/15/20I6
Completion Date: 5/31 /2017
Modernization:
Contract Amount: $100,000,000
Peak Construction Jobs: 250
Estimated current economic life of structure 40 years
Added economic life from modernisation NA years
Permanent Job Creation/Retention:
Current employment: 0 Jobs to be Retained: 0
Jobs created at opening: 40 by year 2017
If existing facility, what is the current plant payroll: N/A
Estimated amount of new payroll: $2,065,000
Industrial Tax Abatement Application Pagc 2
Personal
Estimated Appraised Value On Site
Land
Improvements
Pro c tv.
128,000
N/A
'e'
Value on January 1 preceding abatement
56,500,000
43,210,000
Estimated value of new abatable improvements
0
517,000
0
Estimated value of properties not subject to abatement
56,500,000
43,500,000
Estimated value of property after improvements
Land is valued at in the Performance Agreement. There is ka.ea�sin� iri :'! �. r.';tr �i ' jif��c on
this site at the last assessment date. No vehicles are anticipated to be purchased for this facility. Office
furnishings and equipment of E . !. t are estimated to be acquired. Capital Expenditures per the Performance
Agreement are estimated at $100,000,000.
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? X Yes — No
Company Representative to be Contacted: Authorized Company Official:
Name: Mike Rogers
Title: Director- Domestic Tax
Address: 800 N. Lindbergh Blvd., 05EE
Saint Louis Mo 63167
Authorized Signature:�
Name & Title: David Penn
Cotton and Specialty Crops Lead
Phone Number: 314-694-2214
e-mail: mike.frogers@monsanto.com e-mail: david.w.penn@monsanto.com
Personal
Estimated Appraised Value On Site
Land
Improvements
11*1roverty
128,000
N/A
Value on January 1 preceding abatement
56,500,000
43,210,000
Estimated value of new abatable improvements
0
Estimated value of ra erties not subject to abatement
517,000
0
56,500,000
43,500,000
Estimated value of property after improvements
Land is valued at in the Performance Agreement. There is on
this site at the last assessment date. No vehicles arc anticipated to be purebased for this facility. Office
furnishings and equipment of are estimated to be acquired. Capital Expenditures per the Performance
Agreement arc estimated at $100,000,000,
Do you certify (bat this business (including any branch, division, or department of Us business) does not
currently, and will not knowingly in the future, employ an undocumented worker? X Yes — No
Company Representative to be Contacted: Authorized Company Official:
Name: Mike Rogers Authorized Signature:
Title: Director- Domestic Tax Name & Title: David Penn
Address: 800 N. Lindbergh Blvd., G5EE
Saint Louis Mo 63167
Cotton and Specialty Crops Lead
Phone Number. 314-694-2214
e-mail: inike.frogers@,monsanto.com n}nonsanto.com a -mail: david.w.penn@monsanto.com
17
Personal
Estimated Appraised Value On Site
Land
Improvements
Pr o ;e,
128,000
N/A
tYjl
Value on January ] preceding abatement
56,500,000
43,210,000
Estimated value of new abatable improvements
0
517,000
0
�4a10t
Estimated value of properties not subject to abatement
56,500,000
43,500,000
Estimated value of property after improvements
Landis valued at— in the Performance Agreement. There is j),, -� t Lir . is � i A r �V90 ;t)rk, on
this site at the last assessment date. No vehicles are anticipated to be purchased for this facility. Office
furnishings and equipment of are estimated to be acquired. Capital Expenditures per the Performance
Agreement are estimated at $100,000,000.
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? X Yes — No
Company Representative to be Contacted: Authorized ComBanv Official:
Name: Mike Rogers
Title: Director- Domestic Tax
Address: 800 N. Lindbergh Blvd., WEE
Saint Louis Mo 63167
Authorized Signature:
Name & Title: David Penn
Cotton and Specialty Crops Lead
Phone Number: 314-694-2214
e-mail: mike.f.rogers@monsanto.com e-mail: david.w.penn@monsanto.com
k-- city of
Lubbock
TEXAS
Industrial Tax Abatement Application
Application for Industrial Tax
Abatement
Attachment I: Attach a description of the Applicant Company, including a brief history,
corporate structure, businessplan, and annual statement, rfavoilable.
Monsanto Company was incorporated in Delaware on February 9, 2000. Monsanto includes the operations, assets and liabilities
that were previously the agricultural business of Pharmacio Corporation. Monsanto is a leading global provider of agricultural
products for farmers, Our seeds, biotechnology traits, herbicides and precision agricultural products provide formers with
solutions that improve productivity, reduce the costs of forming and produce better foods for consumers and better feed for
animals.
We manage our business in two segments: Seeds and Genomics and Agricultural Productivity. We view our Seeds and
Genomics segment as the driver for future growth for our company. We provide Information about our business, including
analyses, significant nc►vs releases, and other supplemental Information, on our website: w►►hv.mansanto.com. We are registered
with the Securities and Exchange Commission and make available through our wcbsite our annual report on Form 10-K,
quarterly reports on Form IQ-Q, and current reports on Form S-K.
Attachment 2: Attach site map shoi ing project location and showing proposed construction if
applicable. A separate electronic frle has been provided.
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Attachment 3: Attach stalement fully explaining project, describe existing site and
improvements, describe all proposed improvements and provide list of improvements and
equipment for which abatement is requested, and list of any tangible personal property
presently existing on the Real Property if it is an existing facility.
'file site will be established as Monsanto's primary U.S, hub for all commercial cotton seed processing operations— to include
cleaning, treating and bagging of cotton seed — while existing processing facilities will transition to support storage and
warehousing, pre -commercial operations and research in various parts of the Cotton Bell. An attachment has been provided.
Tax abatements requested as described in the LEDA performance agreement.
Attachment 4: Provide documentation demonstrating that the facility M411 distribute or
manufacture goods and ser i,ices of which 50 percent or more are distributed outside of Lubbock
County.
Plant will manufacture and distribute all of Monsanto's branded cotton seed across all U.S. cotton growing regions, over 95%of
which are located outside of Lubbock County. An attachment has been provided.
Attachment 5 — Lubbock Central Appraisal District Assessed Value
Lubbock Central Appraisal District (Old Parcel details before subdivision and annexation).
New parcel is 150 acres, annexed into the City of Lubbock and the Lubbock Cooper ISD. Assumed
assessed, value for 150 acre tract is $1 la 268.
owrsr to: 00084082
Owner Name: 6RI-WAY FARMS
Owner Address: 880 COUNTY ROAD 48
F.ARTH,Tx 78071 aB01
PropertyAddress:
Legal Descriptiorr BLK D SEC 38AD 8 W2 ACS; 2ae_40e
NelBhbarhood: 0801(0001-Nov Deal Isd )
Acreage: 288A1
Crams Rafenmce: AC280.1O-MOB-60000-000
UndhrWed hAvest
Eumptbn Codes:
Entay Codes: GLB (Lubbock County)
HSP (Lubb Cnty Hospital!
SND (Naw Deal ISD)
1NHP (HI Plslns Water)
Dead Type, Warranty Deed
Deed Book
Dead Page; 2W74#070
Map Page: 311
Links:
3-511 as _BF44 i 2016 Value
Land HS-
Lard NHS;
Improvement HS:
Improvement NHS.
Ag MarkeL
Aq Use:
Tknber MarkeL
Timber use:
Assessed:
0 Type. Me Ams Markel
Land 1 lC Qrr crop) E (E -Real: Rural Land not open -space and RasldanUal Imps) 220.00000 S 187.000
Land2 DC (Dry Crop) E (E -Real: Rural Land not Open -space and Resldanitel Imps) 68.41000 $ 30,78E
$0 4
5217,785 +
i0 +
U0 +
so
$0 +
$0
$0 +
3217,78s o
City of Lubbock
Application for Industrial Tax Abatement
Attachment #3
Equipment & Instrumentation
Building
Site Improvements
Lubbock Facility
43,500.000 (see detail attached)
48,500,000
6,000,000
Total Estimated Project Cost: 100,000,000
290,000 Not Subject to Abatement
99,710,000 Subject to Abatement
MO N SANTO I
MONSANtO COMPANY
TAX D£PARtMENT
Boo N UNDBERGN BLVD.
St, Louis, MissouRi 6) 67
FAX: (314) 694-8047
Nip //www monsanto corn
VIA FEDERAL EXPRESS
October 11, 2016
City of Lubbock
ATTN: Cheryl Brock
1625131h Street
Lubbock, TX 79401
Dear Cheryl —
Enclosed you will find the tax abatement signature page.
Sincerely,
/ 14,
Bob Neu
Enclosure
CERTIFICATE OF INTERESTED PARTIES
FORM 3.295
loft
Complete Nos. 1- 4 and 6 if there are interested parties.
OFFICE USE ONLY
Complete Nos.1, 2, 3, 5, and 6 If there are no interested parties.
CERTIFICATION OF FILING
Certificate Number:
1 Name of business entity filing form, and the city, state and country of the business entity's place
of business.
2016-138862
Monsanto Southern Production Company LLC
St Louis, MO United States
Date Filed:
11/21/2016
2 Name of governmental entity or state agency that is a party to the contract for which the form is
being filed.
City of Lubbock
Date Acknowledged:
3
Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a
description of the services, goads, or other property to be provided under the contract.
13158
Cotton Seed
4
Name of Interested Party
City, State, Country (place of business)
Nature of interest
(chock applicable)
Controlling
I Intermediary
5
Check only if there Is NO Interested Party.
X
6
JUDITH E. OEARY I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct.
Notary Public . Notary Seal
Stale of MISsourl, St LDUiS County
CommISSIDfI # 13655719 ..
-
My,Commigslgn_Expites Oct B, 2011.. .
Signa,16e of authorized ag nt of contracting business entity
AFFIX NOTARY STAMP ! SEAL ABOVE
Sworn to and subscribed before me, by the said 1.� ��; t� - �n o 1 this the
1 l
�' day of G�1 em b�✓
20 cT, to certify which, witness my hand and seal of offic .
Oki 4_
d-{z�tr
Signature of o cer administering oath Printed name of officer administering oath
Title of officer adml istering oath
Forms provided by Texas Ethics Commission www.ethics.state.tx.us version v1,u.zt r