HomeMy WebLinkAboutResolution - 2012-R0090 - Tax Abatement Agreement - Red River Commodities - 03_06_2012 - CopyResolution No. 2012—R0090
March 6, 2012
Item No. 5.6
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 Red River Commodities, Inc., d.b.a. SunGold Foods, 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
ATTEST:
Rebe ca Garza, City Secretary
APPROVED AS TO CONTENT:
A&N4Wy',___
Andy Aurcham,
Chief Financial Officer
APPROVED AS TO FORM:
Linda L. Chamales,
Economic Development Attorney
LC: cityatt. Linda Res -Tax Abatement- SunGold
February 14, 2012
March 6 '2012.
I iAi-Js�� �
TOM MARTIN, MAYOR
Resolution No. 2012-R0090
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this 6th day of March , 2012, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City"), and with Red River Commodities, Inc. d.b.a. SunGold Foods,
Inc. (hereinafter called "Company");
WITNESSETH:
WHEREAS, on the loth day of January, 2012 City received Company's
application for tax abatement for improvements to real property and tangible personal
property located at 901 East 661h Street, Lubbock, Texas which is further described in
Exhibit "A," attached hereto and made a part of this Agreement for all purposes; and
WHEREAS, upon review of the above application it was determined that the
facility and real property is located in Enterprise Zone 25-1 designated by the City for
commercial and industrial tax abatement in Ordinance No. 2007-00116 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. 2011-R0471 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 property located at 901 E. 66`h Street, and further described in
Exhibit "A" is located in Enterprise Zone 25-1 and V.T.C.A., Tax Code, Section
312.2011 provides that designation as an enterprise zone constitutes designation as a
reinvestment zone without further action; and
WHEREAS, the application received by City from Company is an application for
the renovation and expansion of an existing facility, more specifically, building
improvements to an existing facility and the addition of tangible personal property
(machinery and equipment); and
WHEREAS, V.T.A.C., Tax Code, Section 312.002 specifically states that such a
purpose is to be included in the guidelines for tax abatement and to be eligible for such
treatment; and
WHEREAS, Section IV of the Guidelines and Criteria governing Tax Abatement
for Industrial Projects in the City of Lubbock recognizes renovation and 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. 2011-R0471 have
been, or will be, met by Company; and
NOW THEREFORE, for and in consideration of the premises and of the mutual
terms, covenants and conditions herein contained the City and Company do hereby agree
as follows:
SECTION 1. Term. This Agreement shall commence January 1 of the tax year
after the required improvements are substantially completed and shall expire and be of no
further force and effect five (5) years after such date.
SECTION 2. Base Year. The base year applicable to real and personal property,
which is the subject of this Agreement, shall be 2012, and the assessed value of the real
and personal property shall be the assessed value applicable to such property for said
year.
SECTION 3. 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 4. 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 5. 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 as if fully set out in this Agreement and fully describes the property ineligible for
tax abatement.
AGREEMENT - RED RIVER COMMODITIES, INC. PAGE 2
SECTION 6. 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 901 E.
66`h Sfreet, which is further described as Crawford Industrial Block 11
West Part of Lot One and Crawford Industrial Block 11 East 321.5' of Lot
One, City of Lubbock, Lubbock County, Texas.
(b) All eligible tangible personal property, owned by Company, placed in or
upon the real property set forth in Exhibit "A." after January 10, 2012.
Any equipment or personal property owned by Company prior to January
10, 2012, 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) above set forth.
SECTION 7. Economic Qualifications. Company agrees to expend funds
necessary to qualify for tax abatement by renovating and expanding an existing facility,
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 attached in Company's application, Exhibit "C" and incorporated herein
as if fully set forth.
SECTION 8. 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,
Company will expend approximately seven million four hundred thousand ($7,400,000)
for the renovation and expansion of an existing facility and new machinery and
equipment to be located within the enterprise zone created by Ordinance No. 2007-
00116.
Company agrees that if the initial tax appraisal on this property does not reflect an
increased value equal to or exceeding seven million four hundred thousand ($7,400,000)
for the real property improvements and tangible personal property, Company will provide
invoices and proof of payment for the investment in the renovation and expansion of the
facility and the machinery and equipment located in the facility.
SECTION 9. Job Creation. Company agrees to create 42 new jobs by December
31, 2013 and retain those jobs for the term of the tax abatement.
AGREEMENT- RED RIVER COMMODITIES, INC. PAGE 3
SECTION 10. City Access to Property. Company covenants and agrees that City
shall have access to the property, which is the subject matter of this Agreement, upon
reasonable notice and during normal business hours, and that municipal employees shall
be able to inspect the property and documents necessary to insure compliance with the
terms and conditions of Company's application for tax abatement, attached as Exhibit
"C", and this Agreement.
SECTION 11. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate taxes on eligible property according to the following schedule.
Year 1:
100%
Year 2:
80%
Year 3:
60%
Year 4:
40%
Year 5:
20%
SECTION 12. Type of Improvements. Company proposes to renovate and
expand the existing facility as described in Exhibit "C". Company further states that the
proposed improvements to the property above mentioned shall commenced on January
11, 2012, and shall be completed November 1, 2012. Company may request an extension
of the above date from City in the event circumstances beyond the control of Company
necessitate additional time for completion of such improvements and such consent shall
not unreasonably be withheld. Company shall provide proof of completion within ten
days of completion of improvements.
SECTION 13. Limitation on Use. Company agrees 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 14. Recapture. Company agrees to be bound by and comply with all
the terms and provisions for recapture of abated taxes in the event of default by Company
pursuant to law and as set forth in Guidelines and Criteria for Tax Abatement in Exhibit
«B .25
SECTION 15. Certification. Company agrees to certify annually in writing to the
governing body of each taxing unit that the owner is in compliance with the terms of the
Agreement.
SECTION 16. Compliance. The City may cancel or modify this Agreement if
Company fails to comply with the Agreement.
SECTION 17. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
AGREEMENT - RED RIVER COMMODITIES, INC. PAGE 4
CITY OF LUBBOCK
Assistant City Manager
Development Services
P.O. Box 2000
Lubbock, Texas 79457
RED RIVER COMMODITIES, INC.
901 E. 66`s Street
Lubbock, TX 79404
Phone: (806) 763-9747
Fax: (806)763-0330
Email: mikew@redriv.com
SECTION 18. 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.
AGREEMENT - RED RIVER COMMODITIES, INC. PAGE 5
EXECUTED this 6th day of
RED RIVER COMMODITIES, INC.
Bob Majkrzak, Presi en O
ATTEST:
R-14pp C�
Secretary
March , 2012.
CITY OF LUBBOCK
A Municipal Corporation
TOM MARTIN, MAYOR
ATTEST:
R6ec"ba Garza, City Secretary
APPROVED AS TO CONTENT:
W
Andy urcham, Chief Financial Officer
APPROVED AS TO FORM:
Linda L. Chamales, Economic
Development Attorney
AGREEMENT - RED RIVER COMMODITIES, INC. PAGE 6
Resolution No. 2012-R0090
Exhibit "A"
Crawford Industrial Block 11 West Part of Lot One and Crawford Industrial Block 11 East
321.5' of Lot One, City of Lubbock, Lubbock County, Texas.
6311
Proposed Tag Abatement
901 East 66th Street
0 200 400
6 Fcct
515 %n kn tn kn
•o-+ 4 c o
1301
1125
1125
N01TK
AGREEMENT - RED RIVER COMMODITIES, INC. PAGE 7
Resolution No. 2012-R0090
Resolution No. 2011-RO471
November 3, 2011
Item No. 5.7
Exhibit " B"
RESOLUTION
WHEREAS, in October of 2009, 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 every 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:
THAT the City Council of the City 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 previously approved
guidelines.
Passed by the City Council on November 3 , 2011.
TOM MARTIN, MAYOR
ATTEST:
- Q - 0 .—, _3�
Rebe ca Garza, City Secreta
APPROVED AS TO CONTENT:
Andy Burcham, Chief Financial Officer
APPROVED AS TO FORM:
Linda Chamales,
Economic Development Attorney
Lc: city att/Linda/Resolutions/Res-Tax Abatement[ndustrialGuidclines-2011
October a. 2011
Resolution No. 2012-R0090
Exhibit "B"
Resolution No. 2011-R0471
City of Lubbock, TX
Guidelines and Criteria Governing Tax Abatement For
Industrial Projects In The City of Lubbock
SECTION 1. General Purpose:
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 31Z 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 City 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 H. 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: (1) A contract between a property owner and the City for the
abatement of taxes on qualified property located within a reinvestment 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 property eligible for tax abatement as of January 1
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"
2011 industrial Tax Abatement Guidelines
November 3, 2011
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 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 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 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.
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3, 2011
23. Tangible Personal Property: Any Personal Property, not otherwise defined herein and
which is necessary for the proper operation of any type of Facility.
SECTION III. 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 Guidellaes for Tax Abxtement:
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 heroin 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 II 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 $1 million in real property improvements, or $2
million in new personal property, or 25 new permanent jobs if the
facility is a new company to Lubbock.
Exhibit "B"
2011 Industrial Tax Abatement Gwdelines
November 3.2011
b) The project will add at least $500,000 in real property improvements, or $1 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 reinvestment zone or upon
Real Property eligible for such status will be eligible for 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.
6. The following types of Property shall be ineligible for tax abatement status and shall be fully
taxed.
a) Real Property;
b) inventories or supplies;
c) tools;
d) furnishings and other forms of movable personal property;
e) vehicles;
f) aircraft;
g) housing (single family and multi. -family);
h) boats;
i) hotel accommodations;
j) motel accommodations;
k) retail businesses;
l) property owned by the State of Texas or any State agency; and,
m) property owned or leased by a member of the City that did not have an active tax
abatement in place before they became a member of the governing body or commission.
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.
c) It is recommended that facilities located within the certificated territory of the City's
municipally owned electric utility, Lubbock Power and Light (LP&L) utilize LP&L for
electrical services during the term of the abatement.
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.
4
Exhibit " B"
2011 Industrial Tax Abatement Guidelines
November 3, 2011
The amount of the taxable value of Improvements to be abated and the tern 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 or by the County of Lubbock in all cases
where the property for which tax abatement is applied for is outside of the City limits of a
municipality, but within the County of Lubbock, 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 authority of all other taxing units shall be as set
forth in V.T.C.A., Tax Code, Section 312.206.
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 and the tax
abatement application is filed with the City before construction begins.
10. Notwithstanding any of the requirements set forth in Section IV Subsection 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 terns 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:
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3, 2011
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,
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:
1. 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 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:
l . 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;
S. 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;
a) 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;
b) 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;
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3, 201 l
c) 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);
d) Encompass signs, billboards, or other outdoor advertising structures designated
by the governing body of the municipality for relocation, reconstruction, or
removal for the purpose of enhancing the physical environment of the
municipality, which the legislature declares to be a public purpose; or,
e) 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 (axl) 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 body of each taxing unit
that includes in its boundaries Real Property that is to be included in the reinvestment
zone.
S. At the public hearing above described in Subsection 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 Subparagraph 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.
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3, 2011
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 Subparagraphs a, b, and c of Subsection 6 above set forth.
8. At the conclusion of the public hearing herein required and upon the affirmative finding of
the Lubbock City Council as required by Subsection 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 VI. Tax Abatement Agreement:
f. 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, Subsection 6, 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.
f) Set forth the estimated value of all improvements to be made in or on the Real Property.
g) Clearly provide that tax abatement shall be granted only to the extent:
Exhibit "B"
2011 industrial Tax Abatement Guidelines
November 3, 2011
1. The Improvements to Real Property increase the value of the Real Property for the
year in which the Tax Abatement Agreement is executed; and,
2. That the Tangible Personal Property improvements to Real Property were not
located on the Real Property prior to the execution of the Tax Abatement
Agreement.
h) Provide for the portion of the value of the improvements to Real Property of
improvements to be abated. This determination is to be made consistent with the
provisions of Section IV, Subsection 6, of these guidelines and criteria as hereinabove set
forth.
i) Provide for the commencement date and the termination date. In no event shall said
dates exceed a period of ten years.
j) Describe the type and proposed use of the improvements to Real Property or
improvements including:
1. The type of facility.
2. Whether the improvements are for a new facility, 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 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 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 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.
9
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3, 201
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(as required by V.T.C.A., Tax Code, Section
312.2041) enters into an agreement for tax abatement under V.T.C.A., Tax Code, Section
312.204, the Lubbock City Council or a designated officer or employee thereof shall deliver
to the presiding officer of the governing body of each of the taxing units in which the
property to be subject to the agreement is located, a written notice that the City intends to
enter into the agreement. The notice must include a copy of the proposed Tax Abatement
Agreement.
3. A notice, as above described in Subparagraph 2, is presumed delivered when placed in the
mail, postage paid and properly addressed to the appropriate presiding officer. A notice
properly addressed and sent by registered or certified mail for which a return receipt is
received by the sender is considered to have been delivered to the addressee.
4. Failure to deliver the notice does not affect the validity of the agreement.
SECTION VII. Aaplicatien:
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 steal 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,
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3, 2011
3. expansion of a facility (of any type herein defined); or,
4. any combinaOon of the above.
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.
in) 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 an 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 VIIL Investment/Jobs Documentation
1. The investment commitment in the Tax Abatement contract 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 contract
commitment, it will service as verification that the investment met the requirement in the
contract; or
b. If the Lubbock Central Appraisal District value, minus the base year value, does not meet
the investment commitment in the contract, the Company will provide invoices
documenting the actual investment to verify the investment met the investment
commitment in the contract
2. Confirmation of the job creation requirement
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3.2011
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 contract that the jobs are
required to be created.
3. Job creation will be audited annually to assure retention of jobs. Each year during the City
audit of tax abatement contracts, the company will provide the City with the a quarter
employment report filed with the State of Texas to confirm job retention. 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
1. In the event that the applicant, owner or lessee has entered into a tax abatement agreement to
make improvements as defried 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 owner, or lessee 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 Agreement with the applicant, owner or lessee, 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 Agreement and all
abatement of taxes shall terminate immediately; or
(c) The City may terminate the Agreement and recapture taxes abated under Section VIII.
Recapture.
2. In any of the three options in subparagraph I above, the City shall determine whether default
has occurred by the applicant, owner or lessee in the terms and conditions of the Tax
Abatement Agreement and shall so notify all other Affected Jurisdictions.
SECTION X. Recanture
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 tern of a tax
abatement agrcement, 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 takes place shall be payable to the City by no later than January 31st 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
12
Exhibit "B"
2011 Industrial Tau Abatement Guidelines
November ), 2011
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 of natural disaster or
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 vents beyond the control of the applicant or owner, then such
applicant or owner shall have a period of M ym 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 31 st 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, hereinabove
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 make
improvements to a facility of any type described in Section 1 above, but fails to undertake or
complete such improvements or fails to create all or a portion of the number of new jobs
provided by the Tax Abatement Agreement, then in such event the 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 31st 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.
3. 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 even 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 31st 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 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 subparagraph, takes place shall be payable to
the City by no later than January 3lst 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.
5. In the even 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 Owner/Applicant. Taxes
abated during the calendar year in which termination, under this subparagraph takes place
shall be payable to the City by no later than January 31st of the following year. Taxes abated
13
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3, 2011
in years prior to the year of termination shall be payable to the City within sixty (60) days of
the date of termination.
6. The date of termination as that term is used in this Subsection VIII shall, in every instance, be
the 60th day after the day the 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
owner or Applicant within the sixty (60) day notice period, the Owner/Applicant 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 Subparagraphs 1, 2, 3, 4 and 5 above, the City shall
determine whether default has occurred by Owner (Applicant) in the terms and conditions of
the Tax Abatement Agreement and shall so notify all other Affected Jurisdictions.
8. In the event that a tax abatement agreement is terminated for any reason what so ever 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 the following
manner:
a) To the owner or applicant: written notice shall be sent to the address appearing on the
Tax Abatement Agreement.
b) To 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, Subparagraph I 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 are effective upon the date of their adoption by the City 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 even the Affected Jurisdiction elects
by resolution to become eligible to participate in tax abatement, then such Affected
14
Exhibit "B"
2011 Industrial Tax Abatement Guidelines
November 3, 2011
Jurisdiction shall adopt guidelines and criteria by separate resolution forwarding a copy of
both resolutions to all other Affected Jurisdictions.
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 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 by a vote of
three -fourths of the members of the Lubbock City Council during the two year term in which
these guidelines and criteria are effective.
is
Resolution No. 2012—R0090
Exhibit "C"
4h, RM ED
lubbc&k `w
TEXAS City of Lubbock
Application for Industrial Tax Abatement
This application should be filed 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 other taxing jurisdictions. This application will
become part of the Tax Abatement Agreement and any knowingly false representations will be grounds for the voiding ofthe 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, god Floor, Lubbock, TX 79401.
Part I - Applicant Information
Company Name: ?2d-1?lVLr �w,horl.�rPJ c
Telephone: U at x . ""0
Annual Sales:
MailingAddress: �''��•�M!\1�58fo$
�
4 Corporation
C Partnership
Application Date
Physical Address:
Current Number of Employees:
Employees in City Limit
Years in Lubbock:
C Proprietorship
�t7
/ (P
s:
Attachment l: Attach a description of the Applicant Company, including a brief history, corporate structure,
business plan, and annual statement, if available.
Part II - Project Information , /
Location Address: get t�G1ti sM• L -66d,L �TX Zipcode: -7 9,4 "t
O
School District. _Lab br r• k 5J)
Legal Description: C r4a_-fe fr AA Bi lac 11 W i± � L � F 3;1. r,, 4 L i
Attachment 2: Attach site map showing project location and showing proposed construction if applicable
Project Description: C New Construction Expansion C 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 arty tangible personal propertypresently existing on the Real Property if it is an existing facility.
Is the site located in an Enterprise Zone? k Yes ❑ No
Section A — Facility Information
Type of Facility/abatement:
❑ Advanced Technologies and Manufacturing ElWarehouse/Distribution
❑ Research and Development Y Value-added Agriculture Production
❑ Medical Services El 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
Exhibit "C"
Describe product or service to be provided: X `^" s �d� '� n'�►�'f f"''.
Is the company a producer, manufacturer, or distributor of goods and services of which 50 percent or more are
distributed outside Lubbock. 9 Yes C No
Attachment 4: Provide documentation demonstrating that the facility will distribute or manufacture goods and
services of which 50 percent or more are distributed outside of Lubbock County,
Is the company applying for tax abatement L New Company to Lubbock A Existing Company
The project meets one of the criteria in the Guidelines and Criteria Governing Tax Abatement for Industrial
Projects, Section IV. 3. 4 Yes L 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 Value
Section C - Variance
Is the applicant seeking a variance? Ll Yes No
If "yes," attach letter requesting and justifying the variance, with supplemental information.
PART III - ECONOMIC INFORMATION
Construction Estimate:
Start Date: — 1 `�"^ tea"' i 2, 17,
Completion :Date: l �'`�`""`�'�`' 2,o' 2-
Modernization:
Contract Amount: �2 rJIM N(4 ;%
Peak Construction Jobs: D
Estimated current economic life of structure years
Added economic life from modernization ] s a years
Permanent Job Creation/Retention:
Current employment: q C Jobs to be Retained: N O
Jobs created at opening: 4Z By year 20 a 1 d G
If existing facility, what is the current plant payroll: $
Estimated amount of new payroll: $_
Industrial Tar Abatement Application Page 2
Exhibit "C"
Estimated Appraised Value On Site
Land
Improvements
Personal
Property
Value on January 1 preceding abatement
65.-w /
DES. ? 12'."
Estimated value of new abatable improvements
NA
%.Nob: DoD
JDO DDO
Estimated value of properties not subject to abatement
Estimated value of property after improvements
5700, Do 0
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? a Yes ❑ No
Company Representative to be Contacted:
kG
Name
Title
Address
Lk666C'L A' � WO
Address
Iv►t�c.��rr�drtV Gam
e-mail
Authoified Comvanv Dfficial;!�'
uu�thorized Signaturef
ame & Title
Phone Number
b A
e-mail
;OJT .
Industrial Tax Abatement Application Page 3
Ar
LCAD 2010 Assessment • $1,097,839.00 (R76372)
LCAD 2010 Assessment Extra Land • 33,756
TOTAL • 1,131,589
Building
Office Area/Ground Floor • 4472 SF
2nd Floor Office • 2880 SF
Total SF of Main Building • 28,887 SF
Covered Dock Area • 2281 SF
Total of Main Building • 31,168 SF
Outbuilding Warehouse • 2738 SF
TOTAL OF IMPROVEMENTS • 33,951SF
20 Ft Clear Height
800.687.7834 - 806.793.0703
5001 W. Loop 289 • Lubbock, TX 79424 Q
M
x
I
Exhibit "C"
pd Q;,#or
COMMODITIES
P.O Box 3022, Fargo, ND - 50142nd St. NW 58102
(800) 437-5539 - (701) 282-2600 • FAX (701) 282-5325
www.redriv.com
City of Lubbock
Application for Industrial Tax Abatement
Additional Locations:
Colby, KS
Lubbock, TX
Zevenbergen, Netherlands
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.
The project is an expansion of sunflower processing and production. The facility will
produce sunflower, and will be packaged ready for retail. The existing site is a
warehouse currently standing vacant.
The improvements and equipment for which abatement is requested:
1. Additional building improvements $1AMM
2. Production equipment $3.5MM
3. Packaging equipment 2$ 5MM
Total WAN M
No tangible personal property presently exists at the existing facility. When in operation,
we expect to carry approximately $0.5MM in inventory at the facility.
Robert A. Majkrzak
President & CEO
Red River Commodities, Inc.
Red Rfirr
p-_ =`-.,COMMO®mE8
Exhibit "C"
P.O Box 3022, Fargo, No • 50142nd St. NW 58102
(800) 437-5539 • (701) 282-2600 • FAX (701) 282-5325
www.redriv.com
City of Lubbock
Application for Industrial Tax Abatement
Additlonal Locations:
Colby, KS
Lubbock, TX
Zevenbergen, Netherlands
Attachment 4: Provide documentation demonstrating that the facility will distribute or
manufacture goods and services of which 50 percent or more are distributed outside of
Lubbock County.
Red River Commodities, Inc. will manufacture goods at this facility. The primary
customer for this product has distribution centers throughout the United States, none of
which are located in Lubbock County.
Robert A. Majkrzak
President & CEO
Red River Commodities, Inc.
n
LUBBOCK CENTRAL APPRAISAL D15TF'^T
PO BOX 10568 -1715 26TH STREET
.LUBBOCK, TEXAS 70408 3568
PLEASE RETAIN TWS PORTION FOR YOUR RECORDS
2010 TAX STATEMENT cif 762- 000 EXT: 2
www.lubbockcad.org
PRINT DATE: 10/12/2010
VALUATION BREAKDOWN PAYABLE UPON RECEIPT
0 I 31,967 0 O 0 1 1,065,872 1 1,097,839
City Of Lubbock
1.097.839
1.097,839
0.4561700
5,008.01
5,008.01
Lubbock County1.097.839
0
1,097,839
0.3294580
3,616.91
3.616.91
Lubb Cnly Hospital
1,097,839
0
1,097,839
0.1208100
1.326.
1,326.30
Lubbock ISO
1 1.097.8391
0
1.097.839
1.2350000
13.568.3
13,558.32
HI Plains Water
1 1,097,83910
1.097.839
0.0078600
86.1
86.18
{ rvJ4
'• CITY TAXES REDUCED BY ADDITIONAL SALES TAX: 1Z77.99 I
•COUNTY TAXES REDUCER BY ADDITIONAL SALES TAX: 1418.S2
TOTAL
DUE 23,696.72
DAVE KIMBROUGH
R76372
OWNER ID: D0150830
OWNER % : 100.00
CRAWFORD IND BLK 11 W PT OF
Ll
901 E 66TH ST
LUBBOCK
STANDARD SALES CO
4900 E 42ND ST STE 350
ODESSA Tx 79762-7218
PAYMENT SCHEDULE
OCT 2010
.00
23.995.72
NOV 2010
.00
23.595.72
DEC 2010
.00
23,595.72
JAN 2011
.00
23.595.72
FEB 2011
7%
1,651.70
25,247.42
MAR 2011
9%
2,123.63
25.719.35
APR 2011
11%
2.595.53
26.191.25
MAY 2011
13%
3,067.46
26.663.19
JUN 2011
15%
3,539.37
27.135.09
JUL 2011
18%+20%
9.815.82
33,411.54
IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE OISABLED AND THE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR HOhESTEA.D. YOU SWKILD
CONTACT THE APPRAMAL DISTRICT REGARDING ANY E NTnUMENT YOU MAY HAVE TO A POSTPONEMENT W THE PAYMENT OF THESE TAXES.
IF YOU HAVE QUESTIONS PLEASE CALL (MM TS2d000. TAXES BECOME DE.NOUENT ON FEBRUARY 1. 2011. AFTER JUNE AN ADDITIONAL PENALTY OF 20%WILL BE IMPOSM ON THE
AMOUNT OF TAXES. PENALTY AND INTEREST DUE AFTER .RAY AN ADORIONAL 1% BJTEAEST PER MONTH WILL BE APPUM
m
X
3
cr
I
Five Year Value History and Comparison - Required by Senate Bill 18
STHT 1: 000053029 property Le0al*DescrlArion:
PRINT DATE: 10/5/2 CRAWFORD 1ND W.K 11 a PT OF
QOICKREF: R76372 L1
OWNER I0: 00150830
APPRAISED TAXABLE RATE TAX • %CHANGE I " % CHANGE COMM TO FRET AVARAILE
City
Of Lubbock
Appraised:
2005 to 2010
1.71
2010
1,097,039
1,097,039
0.4561700
5,008.01
1.60
Taxable:
2005
to 2010
1.71
2009
1,104,218
1,104,218
0.4464000
4,929.23
2.00
Tax Rate:
2005
to 2010
2.01
2008
1,002,567
1,082,567
0.4464000
4,832.59
-1.61
Taxes:
2005
to 2010
3.75
2007
1,079,367
1,079,367
0.4550300
4,911.66
-1.50
2006
1,079,367
1,079,367
0.4619900
4,986.57
3.31
2005
1,079,367
1,079,367
0.4472000
4,826.93
N/A
Lubbock County
Appraised:
2005
to 2010
1.71
2010
1,097,839
1,097,839
0.3294580
3,616.91
-0.58
Taxable:
2005
to 2010
1.71
2009
1,104,218
1,204,218
0.3294580
3,637.93
3.02
Tax Rate:
2005
to 2010
25.93
2000
1,082,567
1,082,567
0.3262000
3,531.34
6.07
Taxes:
2005
to 2010
22.08
2007
1,079,367
1,079,367
0.3061480
3,304.46
7.13
2006
11079167
2,079,367
0.2857630
3,084.43
9.23
2005
11079:367
1,079,367
0.2616230
2,823.87
N/A
Lubb
Caty Hospital
Appraised:
2005
to 2010
1.71
2010
1,097,839
1,097,839
0.1206100
1,326.30
-0.60
Taxable:
2005
to 2010
1.71
2009
1,104,218
1,104,218
0.1208400
1,334.34
2.14
Tax Rate:
2005
to 2010
9.49
2009
2,082,567
1,082,567
0.1206700
1,306.33
3.79
Taxes:
2005
to 2010
21.36
2007
1,079,367
1,079,367
0.1156100
1,250.65
2.11
2006
1,079,367
1,079,367
0.1142000
1,232.64
3.50
2005
1.079,367
1,079,367
0.1103400
1,190.97
N/A
Lubbock ISO
Appraised:
2005
to 2010
1.71
2010
1,097,039
1,097,839
1.2350000
13,558.32
-0.58
Taxable:
2005
to 2010
1.71
2009
1,104,218
1,104,218
1.2350000
13,637.10
2.00
Tax Rate:
2005
to 2010
-25.55
2008
1,082,567
1,002,567
1.2350000
13,369.71
0.30
Taxes:
2005
to 2010
-24.20
2007
1,079,367
1,079,367
1.2350000
13, 330.19
-21.09
2010 rain Is MAO 1.0400000 + I88
O.1960000 = 1.2350000
2006
1,079,367
1,079,367
1.5650000
16, 892.10
-5. 66
20M rate Ic M80 1.0400000 + 18S
0.1950OW a I.2350000
2005
1,079,367
1,079,367
1.6589000
17,905.61
N/A
H1 Plains Water
Appraised:
2005
to 2010
1.71
2010
1,097,839
1,097,839
0.0078500
86.18
-1.70
Taxable:
2005
to 2010
1.71
2009
1,104,218
1,104,218
0.0079400
87.67
1.99
Tax Rate:
2005
to 2010
-5.42
2008
1,082r567
1,082,567
0.0079400
05.96
0.30
Taxes;
2005
to 2010
-3.61
2007
1,079,367
1,079,367
0.0079400
85.70
-4.34
2006
1,079,367
1,079,367
0.0083000
89.59
0.00
2005
1,079,367
1,079,367
0.00a3000
89.59
N/A
When you provide a Check as payment. you authorize us elther to use fn wwtlon from your chat* to make a one-time electroniic fund banter from y01a atcowd
or to process Be payment as a check Wansaetlon. When we use information from your check to make an electronic ftM transfer, harts may be+ AMd awls from
your accamt as soon as the same day we receive your payment, and you %d nut receive your check back ham your iilancial kmtlutim
M
X
3
LU380Ch.CENTRAL APPRAISAL DISTF� 'T
PO BOX 10568 -1715 26TH STREET
LUBBOCK, TEXAS 794083568
PLEASE RETAIN THIS PORTION FOR YOUR RECORDS
2010 TAX STATEMENT
VALUATION BREAKDOWN
(808) 762-SM EXT: 2
www.lubbockcad.org
PRINT DATE: 10/12/2010
PAYABLE UPON RECEIPT
0 1 33.756 O O O O 1 33.756
.tSAiiiidt
�.'
144
..
City Of Lubbock
33,756
0
33,756
0.4561700
153.
153.98
Lubbock County
33.756
0
33,756
0.3294580
111.
111.22
Lubb Cnty Hospital
33.756
0
33.756
0.1208100
40.7
40.78
Lubbock ISO
33.756
0
33.756
1.2350000
416.8
416.38
Hi Plains Water
33,756
56
33,70078500
0.
2.61
2.65
w» r. sue:;; ' ���� - : •� •, ; -;;r�
" ^ •
CITY TAXES REDUCED BY ADDITIONAL SALES TAX. 32.30 I
•• COUNTY TAXES REDUCED BY ADDITIONAL SALES TAX: 43.62
TOTAL
DUE 726.6
DAVE K/MBROUGH
R66288
OWNER ID: 0021399S
OWNER % : 100.00
CRAWFORD IND BLK 11 E321.5'OF
L 1
E 66TH ST
LUBBOCK
EAGLE WAREHOUSE SERV LLC
4800 E 42NO ST STE 401
ODESSA TX 79762-7214
PAYMENT SCHEDULE
OC7 2010
.00
7 5.51
NOV 2010
.00
725.51
DEC 2010
.00
725.51
JAN 2011
.00
725.51
FEB 2011
7%
50.80
776.31
MAR 2011
9%
65.30
790.81
APR 2011
11%
79.79
805.30
MAY 2011
13%
94.32h
819.83
JUN 2011
15%
108.84
834.35
JUL 2011
18%;20%
301.831
1.027.34
vr^ ♦ �. r*+ �5 n . u[iri R£g A f^^ye IJs 1\sk7; ..\a'
ll
IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND THE PROPERTY DESCRIBED IN TW S DOCUMENT LS YOUR HOMESTEAD. YOU SHOULD
CONTACT THE APPRAISAL DISTRICT REGARDING ANY ENTITLEMENT YOU MAY HAVE TO A POSTPONEMENT IN THE PAYMENT OF THESE TAXER
W YOU HAVE OUESTIONS PLEASE CALL INS) 762--MM TAXES BECOME OHJNOUE NT ON PowuARY 1, 20T1 AFTER DUNE AN ADomomAL PENALTY OF =% WILL BE IMPOSED ON THE
AMOUNT OF TAXES. PENALTY AND INMEST DUES, AFTER JULY AM ADDITIONAL 1% INTEREST PER MONTH WILL BE APPLIED
m
x
1S
9
Five Year Value History and Comparlszon - Required by Senate Bill 18
STNT 4: 000053030
PRINT DATE: 10/5/2
QDICKREF: R56288
OWNER ID: 00213995
Property Legal Dascrll.tion:
CRAWFORD IND BLR 11 E321.51or
L 1
APPRAISED TAXABLE RATE TAX . T.CFWiOE I " % CHANGE Cl80ENr TO FIRST AVAOABLE
City Of Lubbock
2010 33,756
2009 33,756
2008 33,756
2007 33,756
2006 33,756
2005 33,756
Lubbock County
2010 33,756
2009 33,756
2009 33,756
2007 33,756
2006 33,756
2005 33,756
Lubb Cnty Hospital
2010 33,756
2009 33,756
2000 33,756
2007 33,756
2006 33,756
2005 33,756
Lubbock ISD
2010 33,756
2009 33,756
2008 33,756
2007 33,756
2006 33,756
2005 33,756
Hi Plains Nator
2010 33,756
2009 33,756
2008 33,156
2007 33,756
2006 33,756
2005 33,756
33,756
0.4561700
153.98
2.1B
33,756
0.4464000
150.69
0.00
33,756
0.4464000
150.69
-1.90
33,756
0.4550500
153.61
-1.50
33,756
0.4619900
155.95
3.31
33,756
0.4472000
150.96
N/A
33,756
0.32945BO
111.22
0.01
33,756
0.3294580
111.21
1.00
33,756
0.3262000
110.11
6.55
33,756
0.3061400
103.34
7.13
33,756
0.2857630
96.46
9.23
33,756
0.2616230
08.31
N/A
TYPE NEARS COIFAREDI CHAMME
Appraised: 2005 to 2010 0.00
Taxable: 2005 to 2010 0.00
Tax Rate: 2005 to 2010 2.01
Taxes: 2005 to 2010 2.00
Appraised: 2005 to 2010 0.00
Taxable: 2005 to 2010 0.00
Tax Rate: 2005 to 2010 25.93
Taxes: 2005 to 2010 25.94
Appraised:
2005 to 2010
0.00
33,756
0.1208100
40.78
-0.02
Taxable:
2005 to 2010
0.00
33,756
0.1208400
40.79
0.15
Tax Rate:
2005 to 2010
9.49
33,756
0.1206700
40.73
3.48
Taxes:
2005 to 2010
9.48
33,756
0.1166100
39.36
2.10
33,756
0.1242000
38.55
3.49
33,756
0.1103400
37.25
N/A
Appraised:
2005 to 2010
0.00
33,756
1.2350000
416.88
0.00
Taxable:
2005 to 2010
0.00
33,756
1.2350000
416.88
0.00
Tax Rate:
2005 to 2010
-25.55
33,756
1.2350000
416.BB
0.00
Taxes:
2005 to 2010
-25.55
33,756
1.2350000
416. BB
-21.09
2010 rato la: M80 1.0400000 + 18S
0.t150000 n t.2350000
33,756
1.5650000
528.28
-5.66
2009 rala Is: k80 1.0400000 + 16S
0.1950000 = 1.2350000
33,756
1.6589000
559.98
N/A
Appraised:
2005 to 2010
0.00
33,756
0.0070500
2.65
-1.12
Taxable:
2005 to 2010
0.00
33,756
0.0079400
2.68
0.00
Tax Rates
2005 to 2010
-5.42
33,756
0.0079400
2.68
0.00
Texas:
2005 to 2010
-5.36
33,756
0.0079400
2.68
-4.29
33,756
0.00B3000
2.00
0.00
33,756
0.0083000
2.80
N/A
When you provide a dlerk as payment, you authorize us either to use Information from your check to make a one-time electronic fund transfer from your account
or to process the payment as a check transaction. When we use Information from your check to make an electronic fund transfer, funds may be vvdtldrawn from
your account as soon as the same day wa receive your payment, and you wN not receive your check back from your ti7mcW hstitutk n.