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HomeMy WebLinkAboutResolution - 4004 - Notice Of Intent - Mclane Fooservice Inc - Tax Abatement, Tract 6, IP Addition - 10_22_1992Resolution No. 4004 October 22, 1992 Item #32 RESOLUTION WHEREAS, the City Council has determined to give notice of its intent to enter into a Tax Abatement Agreement with McLane Company, Inc. and subsidiaries McLane Foodservice-Lubbock, Inc.; and WHEREAS, V.T.C.A., Tax Code, Section 312.2041 requires notice of the intent of City Council to be given to the presiding officer of the governing body of each taxing unit in which the property to be subject to the Tax Abatement Agreement is located; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of City Council to enter into a Tax Abatement Agreement with McLane Company, Inc. and subsidiaries McLane Foodservice-Lubbock, Inc., said notice to be given to the presiding officers of each governing body of each taxing unit having jurisdiction in assessing taxes on property located in Tract 6, Industrial Park Additio <o tfilt ity of Lubbock, Texas. Passed by the City Council this 22nd day oct r 1992. ATTEST: Sally Still Abbe Acting City Secretary APPROV S 0 CONTENT: Ro , Director of Business Relations APPROVED AS TO FORM: J6yn C. Ross, Jr., City Attorney JCR:da/AGENDA-D3 /A-MCLANE. res October 13, 1992 Resolution No. 4004 October 22, 1992 Item #32 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 22nd day of October 1992, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and McLane Company, Inc. and subsidiaries McLane Foodservice Lubbock, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 15th day of October 0 , 1992 an application for tax abatement for expansion and modernization of Company's plant and facilities located within Tract 6, Planters Industrial Park Addition to the City of Lubbock; and WHEREAS, upon review of the above application it was determined that no reinvestment zone was currently in existence covering the above described property; and WHEREAS, the Guidelines and Criteria for Tax Abatement applicable to taxing units within Lubbock County was heretofore adopted by Resolution No. 3518 of the City Council of the City of Lubbock; and WHEREAS, Section VII(2)(m) authorized the City to treat Company's application both as an application to create a reinvestment zone and an application for tax abatement; and WHEREAS, the City did comply with all the requirements set forth in V.T.C.A., Tax Code, Section 312.201; and WHEREAS, the City did comply with all of the criteria and guidelines for creation of a reinvestment zone as set forth in Section V of the Guidelines and Criteria governing Tax Abatement within the taxing units of Lubbock County, said guidelines having been adopted by Resolution No. 3518 of the City on January 10, 1991; and WHEREAS, the City did thereafter pass Ordinance No. 9563 creating a reinvestment zone for commercial and industrial tax abatement, said zone being created to cover all of the real property within Tract 6, Planters Industrial Park Addition to the City of Lubbock; and WHEREAS, the application received by City from Company is an application for the expansion and modernization of Company's existing plant; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a purpose is to be included in the guidelines for tax abatement and to be eligible for such treatment; and - 2 - WHEREAS, Section IV of the Guidelines and Criteria for Tax Abatement adopted by the City Council by Resolution No. 3518 does recognize modernization and expansion as being eligible for tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guidelines and Criteria established for Tax Abatement within the City of Lubbock, as adopted by Resolution No. 3518, have been met by Company; and WHEREAS, Company does intend to expand and modernize its existing plant by constructing three new additions to said existing plant and other improvements; and WHEREAS, the location of the additions to the existing plant and surrounding real property, which are to be the subject matter of this Agreement, are attached hereto as Exhibit "A" and made a part of this Agreement for all purposes; and WHEREAS, the City Council finds that entering into this Agreement to abate taxes on the property described in Exhibit "A" will create new jobs within the City and enhance economic development with the entire community; 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: - 3 - SECTION 1. Term. This Agreement shall remain in force and effect for a period of ten (10) years from the date of its execution and shall expire and be of no further force and effect after said date. SECTION 2. Base Year. The base year applicable to real property, which is the subject of this Agreement, shall be 1992 and the assessed value of the real property shall be the assessed value applicable to such property for said year. SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in accordance with the assessed value of such property for the base year. Base year taxes upon the real property are thus not abated. SECTION 4. Abatement of Increase in Base Year Tax. In accordance with V.A.T.C., Tax Code, Section 312.204 real property taxes applicable to the real property subject to this Agreement shall be abated only to the extent said value for any given year within the term of this Agreement exceeds the base year taxes hereinabove set forth. SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section IV(5) of the Guidelines and Criteria for Tax Abatement within the jurisdictions of the taxing units of Lubbock County and heretofore adopted by the City Council by Resolution No. 3518 is incorporated by reference herein as if fully set out in this - 4 - Agreement and fully describes the property ineligible for tax abatement. SECTION 6. Exemption from Tax. The City covenants and agrees to exempt from taxation the following properties: (a) All the real property located in and proposed improvements to be placed upon Tract 6, Planters Industrial Park Addition to the City of Lubbock, which proposed improvements are set forth in a plat of the above tract of land, attached hereto as Exhibit "A" and made a part hereof, and outlined in red; save and except the real property and existing improvements, which are crossed marked, which real property and prior improvements are the subject of a previous tax abatement agreement. (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "A" (save and except that part of said tract not included within this Agreement as mentioned in subparagraph (a) above). (c) It is further understood that all items affixed to the improvements placed upon the real property identified in Exhibit "A" such as racking systems, mezzanines and dock levelers 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. - 5 - SECTION 7. Economic Oualification. It is hereby found by the City that Company will expend funds in excess of the funds necessary to qualify for tax abatement by expanding an existing facility and further that the Company will create new jobs in excess of the percentage required for tax abatement, all as set forth in Section IV(9)(b) of the Guidelines and Criteria for Tax Abatement adopted by the City through Resolution No. 3518. SECTION 8. Value of Improvements. Company intends to expend approximately 4.5 million dollars in building related structural improvements to be located within the reinvestment zone created by Ordinance No. 9563 However, such improvements will only be constructed in the area marked new improvements set forth in Exhibit "A" attached hereto and made a part hereof. SECTION 9. Creation of New Jobs. Company agrees within eighteen (18) months from the date of execution of this Agreement that it will create one hundred thirty (130) to one hundred fifty (150) new jobs within the Company plant located within Tract 6, Planters Industrial Park Addition to the City of Lubbock and use its best efforts to maintain a minimum of one hundred thirty (130) new jobs during the term of this Agreement. 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, during normal business hours and that municipal employees shall be able to inspect the property to insure that the improvements are being made in accordance with the terms and conditions of Company's application for tax abatement and this Agreement. SECTION 11. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate one hundred percent of taxes on eligible property. SECTION 12. Commencement Date. This Agreement shall commence upon the date of its execution, which date is hereinafter set forth, and shall expire ten (10) years after such date. SECTION 13. Type of Improvements. The Company proposes to add three new additions to its plant and other improvements to be constructed in accordance with this Agreement to expand and modernize its existing warehouse and food distribution business carried on as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the day of , 199_, and shall be completed within approximately days from said date. The Company may request an extension of the above date from City in the event circumstances beyond the control of Company necessitates additional time for completion of such improvements and such consent shall not unreasonably be withheld. - 7 - SECTION 14. Drawings of Improvements. Company shall furnish City with one set of as built plans and drawings of the improvements to be made pursuant to the terms of this Agreement. SECTION 15. 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 zone during the term of this agreement. SECTION 16. Recapture. The Company agrees to be bound by and comply with all the terms and provisions for recapture of abated taxes in the event of default by Company as set forth in Exhibit "B", attached hereto and made a part hereof for all purposes. SECTION 17. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK McLANE COMPANY, INC. and City Manager subsidiaries McLANE FOOD- P.O. Box 2000 SERVICE LUBBOCK, INC. Lubbock, Texas 79457 P.O. Box 5550 Lubbock, Texas 79403 SECTION 18. Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as Ordinance No. 9563 creating the reinvestment zone shall be finally passed and approved and both - 8 - City and company agree that the document shall only be executed after the above condition has taken place. EXECUTED this 22nd day of October , 199 2 . McLANE/FOODSERVICE LUBBOCK, INC. CITY OF LUBBOCK A Texas Corporation A Municipal Corporation President DAVID R. LANGSTON, MAYOR ATTEST: Secretary JCR: da/INST-D9/A-MCLANE. doc September 28, 1992 ATTEST: City Secretary (Acting) SALLY STILL ABBE APPROVED,--99 TO CONTENT: ROt 1`111s , Director of Business Relations APPROVED AS TO FORM: John C. Ross, Jr., City Attorney NOTICE OF INTENT OF THE CITY COUNCIL OF THE CITY OF LUBBOCK TO ENTER INTO AN AGREEMENT TO ABATE TAXES ON REAL PROPERTY IMPROVEMENT AND TANGIBLE PERSONAL PROPERTY LOCATED IN TRACT 6, PLANTERS INDUSTRIAL PARK ADDITION TO THE CITY OF LUBBOCK, TEXAS Notice is hereby given that the City Council of the City of Lubbock intends to enter into an agreement with McLane Company, Inc. and subsidiaries McLane Foodservice-Lubbock, Inc. to abate taxes on improvements to property and tangible property located within a reinvestment zone created by Ordinance No. 9563 and covering all of Tract 6, Planters Industrial Park Addition to t e City of Lubbock. Notice is further given that the City Council of the City of Lubbock will consider authorizing the Mayor of the City to execute a contract between the City and McLane Company, Inc. and subsidiaries McLane Foodservice-Lubbock, Inc. for tax abatement, a copy of said Agreement is attached to this Notice as Exhibit "A" and made a part hereof for all purposes. Notice is further given that the City Council will consider this matter at its meeting held in the City Council Chambers, City Hall, 1625 13th Street, City of Lubbock, on the 22nd day of October , 1992 , at 11:30 o'clock a .m. EXHIBIT "A" EXHIBIT "B" Recapture- 1. In the event that any type of facility, (as defined in Sec. I, subparagraphs 5, 6, 7, 8, 10, 11, 12, 13, 17, 18) is completed and begins producing goods or services, but subsequently discontinues producing goods or services for any reason, excepting fire, explosion or other casualty or accident or natural disaster or other event beyond the reasonable control of applicant or owner for a period of 180 days during the term of a tax abatement agreement, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The burden shall be upon the applicant or owner to prove to the satisfaction of the Affected Jurisdiction to whom the application for tax abatement was directed that the discontinuance of producing goods or services was as a result of fire, explosion, or other casualty or accident or natural disaster or other event beyond the control of applicant or owner. In the event the applicant or owner meets this burden and the Affected Jurisdiction is satisfied that the discontinuance of the production of goods or services was the result of events beyond the control of the applicant or owner, then such applicant or owner shall have a period of one Year in which to resume the production of goods and services. In the event that the applicant or owner fails to resume production of goods or services within one year, then the Tax Abatement Agreement shall terminate and the abatement of all taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place, shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The one year time period, hereinabove mentioned, shall commence upon written notification from the Affected Jurisdiction to the applicant or owner. 2. In the event that the applicant 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, then in such event the Affected Jurisdiction to whom the application for tax abatement was directed shall give the applicant or owner sixty (60) days notice of such failure. The applicant or owner shall demonstrate to the satisfaction of the Affected Jurisdiction, above mentioned, that the applicant or owner has commenced to cure such failure within the sixty (60) days above mentioned. In the event that the applicant or owner fails to demonstrate that he is taking affirmative action to cure his failure, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 3. In the event that the Affected Jurisdiction, to whom application for tax abatement was directed, determines that the applicant or owner is in default of any of the terms or conditions contained in the Tax Abatement Agreement, then in such event the Affected Jurisdiction shall give the applicant or owner sixty (60) days written notice to cure such default. In the event such default is not cured to the satisfaction of the Affected Jurisdiction within the sixty (60) days notice period, then the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in prior years to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 4. In the event that the applicant or owner allows ad valorem taxes on property ineligible for tax abatement owed to any Affected Jurisdiction, to become delinquent and fails to timely and properly follow the legal procedures for their protest or contest, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination, under this subparagraph, takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 5. In the event that the applicant or owner, who has executed a tax abatement agreement with any Affected Jurisdiction, relocates the business, for which tax abatement has been granted, to a location outside of the designated reinvestment zone, then in such event, the Tax Abatement Agreement shall terminate after sixty (60) days written notice by the Affected Jurisdiction to the owner/applicant. Taxes abated during the calendar year in which termination, under this subparagraph takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 6. The date of termination as that term is used in this Subsection VIII shall, in every instance, be the 60th day after the day the Affected Jurisdiction sends notice of default, in the mail to the address shown in the Tax Abatement Agreement to the applicant or owner. Should the default be cured by the owner or applicant within the sixty (60) day notice period, the owner/applicant shall be responsible for so advising the Affected Jurisdiction and obtaining a release from the notice of default from the Affected Jurisdiction, failing in which, the abatement remains terminated and the abated taxes must be paid. 7. In every case of termination set forth in subparagraphs 1, 2, 3, 4 and 5 above, the Affected Jurisdiction to which the application for tax abatement was directed shall determine whether default has occurred by owner (applicant) in the terms and conditions of the Tax Abatement Agreement and shall so notify all other Affected Jurisdictions. Termination of the Tax Abatement Agreement by the Affected Jurisdiction to which the application for tax abatement was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all other Affected Jurisdictions. Resolution No. 4004 October 22, 1992 Item #32 RESOLUTION WHEREAS, the City Council has determined to give notice of its intent ;i to enter into a Tax Abatement Agreement with McLane Company, Inc. and �i subsidiaries McLane Foodservice-Lubbock, Inc.; and WHEREAS, V.T.C.A., Tax Code, Section 312.2041 requires notice of the intent of City Council to be given to the presiding officer of the governing body of each taxing unit in which the property to be subject to the Tax Abatement Agreement is located; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: i THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of City Council to enter into a Tax Abatement Agreement with McLane Company, Inc. and subsidiaries McLane Foodservice-Lubbock, Inc., said notice to be given to the presiding officers of each governing body of each taxing unit having jurisdiction in assessing taxes on property located in Tract 6, Industrial Park AdditioVto t ity of Lubbock, Texas. Passed by the City Council i I ATTEST: '1 Sally Still Abbe Acting City Secretary this 22nd day APPROV S 0 CONTENT: Rod , Director of Business !! Relations APPROVED AS TO FORM: i A. J6yn C. Ross, Jr., City Attorney I JCR: da/AGENDA-D3 /A-MCLANE. res October 13, 1992 1992. Resolution No. 4004 October 22, 1992 Item #32 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 22nd day of October 1992, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and McLane Company, Inc. and subsidiaries McLane Foodservice Lubbock, Inc. (hereinafter called "Company"); of WITNESSETH: WHEREAS, City did receive from Company on the 15th day October , 1992 an application for tax abatement for expansion and modernization of Company's plant and facilities located within Tract 6, Planters Industrial Park Addition to the City of Lubbock; and WHEREAS, upon review of the above application it was determined that no reinvestment zone was currently in existence covering the above described property; and WHEREAS, the Guidelines and Criteria for Tax Abatement applicable to taxing units within Lubbock County was heretofore adopted by Resolution No. 3518 of the City Council of the City of Lubbock; and WHEREAS, Section VII(2)(m) authorized the City to treat Company's application both as an application to create a reinvestment zone and an application for tax abatement; and WHEREAS, the City did comply with all the requirements set forth in V.T.C.A., Tax Code, Section 312.201; and WHEREAS, the City did comply with all of the criteria and guidelines for creation of a reinvestment zone as set forth in Section V of the Guidelines and Criteria governing Tax Abatement within the taxing units of Lubbock County, said guidelines having been adopted by Resolution No. 3518 of the City on January 10, 1991; and WHEREAS, the City did thereafter pass Ordinance No. 9563 creating a reinvestment zone for commercial and industrial tax abatement, said zone being created to cover all of the real property within Tract 6, Planters Industrial Park Addition to the City of Lubbock; and WHEREAS, the application received by City from Company is an application for the expansion and modernization of Company's existing plant; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a purpose is to be included in the guidelines for tax abatement and to be eligible for such treatment; and - 2 - WHEREAS, Section IV of the Guidelines and Criteria for Tax Abatement adopted by the City Council by Resolution No. 3518 does recognize modernization and expansion as being eligible for tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guidelines and Criteria established for Tax Abatement within the City of Lubbock, as adopted by Resolution No. 3518, have been met by Company; and WHEREAS, Company does intend to expand and modernize its existing plant by constructing three new additions to said existing plant and other improvements; and WHEREAS, the location of the additions to the existing plant and surrounding real property, which are to be the subject matter of this Agreement, are attached hereto as Exhibit "A" and made a part of this Agreement for all purposes; and WHEREAS, the City Council finds that entering into this Agreement to abate taxes on the property described in Exhibit "A" will create new jobs within the City and enhance economic development with the entire community; 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: - 3 - SECTION 1. Term. This Agreement shall remain in force and effect for a period of ten (10) years from the date of its execution and shall expire and be of no further force and effect after said date. SECTION 2. Base Year. The base year applicable to real property, which is the subject of this Agreement, shall be 1992 and the assessed value of the real property shall be the assessed value applicable to such property for said year. SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in accordance with the assessed value of such property for the base year. Base year taxes upon the real property are thus not abated. SECTION 4. Abatement of Increase in Base Year Tax. In accordance with V.A.T.C., Tax Code, Section 312.204 real property taxes applicable to the real property subject to this Agreement shall be abated only to the extent said value for any given year within the term of this Agreement exceeds the base year taxes hereinabove set forth. SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section IV(5) of the Guidelines and Criteria for Tax Abatement within the jurisdictions of the taxing units of Lubbock County and heretofore adopted by the City Council by Resolution No. 3518 is incorporated by reference herein as if fully set out in this - 4 - Agreement and fully describes the property ineligible for tax abatement. SECTION 6. Exemption from Tax. The City covenants and agrees to exempt from taxation the following properties: (a) All the real property located in and proposed improvements to be placed upon Tract 6, Planters Industrial Park Addition to the City of Lubbock, which proposed improvements are set forth in a plat of the above tract of land, attached hereto as Exhibit "A" and made a part hereof, and outlined in red; save and except the real property and existing improvements, which are crossed marked, which real property and prior improvements are the subject of a previous tax abatement agreement. (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "A" (save and except that part of said tract not included within this Agreement as mentioned in subparagraph (a) above). (c) It is further understood that all items affixed to the improvements placed upon the real property identified in Exhibit "A" such as racking systems, mezzanines and dock levelers 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. - 5 - SECTION 7. Economic Qualification. It is hereby found by the City that Company will expend funds in excess of the funds necessary to qualify for tax abatement by expanding an existing facility and further that the Company will create new jobs in excess of the percentage required for tax abatement, all as set forth in Section IV(9)(b) of the Guidelines and Criteria for Tax Abatement adopted by the City through Resolution No. 3518. SECTION 8. Value of Improvements. Company intends to expend approximately 4.5 million dollars in building related structural improvements to be located within the reinvestment zone created by Ordinance No. 9563 However, such improvements will only be constructed in the area marked new improvements set forth in Exhibit "A" attached hereto and made a part hereof. SECTION 9. Creation of New Jobs. Company agrees within eighteen (18) months from the date of execution of this Agreement that it will create one hundred thirty (130) to one hundred fifty (150) new jobs within the Company plant located within Tract 6, Planters Industrial Park Addition to the City of Lubbock and use its best efforts to maintain a minimum of one hundred thirty (130) new jobs during the term of this Agreement. 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, during normal business hours and that municipal employees shall be able to inspect the property to insure that the improvements are being made in accordance with the terms and conditions of Company's application for tax abatement and this Agreement. SECTION 11. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate one hundred percent of taxes on eligible property. SECTION 12. Commencement Date. This Agreement shall commence upon the date of its execution, which date is hereinafter set forth, and shall expire ten (10) years after such date. SECTION 13. Type of Improvements. The Company proposes to add three new additions to its plant and other improvements to be constructed in accordance with this Agreement to expand and modernize its existing warehouse and food distribution business carried on as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the day of , 199_, and shall be completed within approximately days from said date. The Company may request an extension of the above date from City in the event circumstances beyond the control of Company necessitates additional time for completion of such improvements and such consent shall not unreasonably be withheld. - 7 - SECTION 14. Drawings of Improvements. Company shall furnish City with one set of as built plans and drawings of the improvements to be made pursuant to the terms of this Agreement. SECTION 15. 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 zone during the term of this agreement. SECTION 16. Recapture. The Company agrees to be bound by and comply with all the terms and provisions for recapture of abated taxes in the event of default by Company as set forth in Exhibit "B", attached hereto and made a part hereof for all purposes. SECTION 17. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK McLANE COMPANY, INC. and City Manager subsidiaries McLANE FOOD- P.O. Box 2000 SERVICE LUBBOCK, INC. Lubbock, Texas 79457 P.O. Box 5550 Lubbock, Texas 79403 SECTION 18. Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as Ordinance No. 9563 creating the reinvestment zone shall be finally passed and approved and both - 8 - City and company agree that the document shall only be executed after the above condition has taken place. EXECUTED this 22nd day of October , 199 2 . McLANE/FOODSERVICE LUBBOCK, INC. CITY OF LUBBOCK A Texas Corporation A Municipal Corporation President ATTEST: Secretary JCR: da/INST-D9/A-MCLANE.doc September 28, 1992 DAVID R. LANGSTON, MAYOR ATTEST: City Secretary (Acting) SALLY STILL ABBE Director of Business Relations APPROVED AS TO FORM: 4� John C. Ross, Jr., City Attorney NOTICE OF INTENT OF THE CITY COUNCIL OF THE CITY OF LUBBOCK TO ENTER INTO AN AGREEMENT TO ABATE TAXES ON REAL PROPERTY IMPROVEMENT AND TANGIBLE PERSONAL PROPERTY LOCATED IN TRACT 6, PLANTERS INDUSTRIAL PARK ADDITION TO THE CITY OF LUBBOCK, TEXAS Notice is hereby given that the City Council of the City of Lubbock intends to enter into an agreement with McLane Company, Inc. and subsidiaries McLane Foodservice-Lubbock, Inc. to abate taxes on improvements to property and tangible property located within a reinvestment zone created by Ordinance No. 9563 and covering all of Tract 6, Planters Industrial Park Addition to tfe City of Lubbock. Notice is further given that the City Council of the City of Lubbock will consider authorizing the Mayor of the City to execute a contract between the City and McLane Company, Inc. and subsidiaries McLane Foodservice-Lubbock, Inc. for tax abatement, a copy of said Agreement is attached to this Notice as Exhibit "A" and made a part hereof for all purposes. Notice is further given that the City Council will consider this matter at its meeting held in the City Council Chambers, City Hall, 1625 13th Street, City of Lubbock, on the 22nd day of October , 1992 , at 11:30 o'clock a .m. EXHIBIT "A" EXHIBIT "B" Recapture: 1. In the event that any type of facility, (as defined in Sec. I, subparagraphs 5, 6, 7, 8, 10, 11, 12, 13, 17, 18) is completed and begins producing goods or services, but subsequently discontinues producing goods or services for any reason, excepting fire, explosion or other casualty or accident or natural disaster or other event beyond the reasonable control of applicant or owner for a period of 180 days during the term of a tax abatement agreement, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The burden shall be upon the applicant or owner to prove to the satisfaction of the Affected Jurisdiction to whom the application for tax abatement was directed that the discontinuance of producing goods or services was as a result of fire, explosion, or other casualty or accident or natural disaster or other event beyond the control of applicant or owner. In the event the applicant or owner meets this burden and the Affected Jurisdiction is satisfied that the discontinuance of the production of goods or services was the result of events beyond the control of the applicant or owner, then such applicant or owner shall have a period of one year in which to resume the production of goods and services. In the event that the applicant or owner fails to resume production of goods or services within one year, then the Tax Abatement Agreement shall terminate and the abatement of all taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place, shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The one year time period, hereinabove mentioned, shall commence upon written notification from the Affected Jurisdiction to the applicant or owner. 2. In the event that the applicant 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, then in such event the Affected Jurisdiction to whom the application for tax abatement was directed shall give the applicant or owner sixty (60) days notice of such failure. The applicant or owner shall demonstrate to the satisfaction of the Affected Jurisdiction, above mentioned, that the applicant or owner has commenced to cure such failure within the sixty (60) days above mentioned. In the event that the applicant or owner fails to demonstrate that he is taking affirmative action to cure his failure, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 3. In the event that the Affected Jurisdiction, to whom application for tax abatement was directed, determines that the applicant or owner is in default of any of the terms or conditions contained in the Tax Abatement Agreement, then in such event the Affected Jurisdiction shall give the applicant or owner sixty (60) days written notice to cure such default. In the event such default is not cured to the satisfaction of the Affected Jurisdiction within the sixty (60) days notice period, then the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in prior years to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 4. In the event that the applicant or owner allows ad valorem taxes on property ineligible for tax abatement owed to any Affected Jurisdiction, to become delinquent and fails to timely and properly follow the legal procedures for their protest or contest, then in such event the Tax Abatement Agreement shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in which termination, under this subparagraph, takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 5. In the event that the applicant or owner, who has executed a tax abatement agreement with any Affected Jurisdiction, relocates the business, for which tax abatement has been granted, to a location outside of the designated reinvestment zone, then in such event, the Tax Abatement Agreement shall terminate after sixty (60) days written notice by the Affected Jurisdiction to the owner/applicant. Taxes abated during the calendar year in which termination, under this subparagraph takes place shall be payable to each Affected Jurisdiction by no later than January 31st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 6. The date of termination as that term is used in this Subsection VIII shall, in every instance, be the 60th day after the day the Affected Jurisdiction sends notice of default, in the mail to the address shown in the Tax Abatement Agreement to the applicant or owner. Should the default be cured by the owner or applicant within the sixty (60) day notice period, the owner/applicant shall be responsible for so advising the Affected Jurisdiction and obtaining a release from the notice of default from the Affected Jurisdiction, failing in which, the abatement remains terminated and the abated taxes must be paid. 7. In every case of termination set forth in subparagraphs 1, 2, 3, 4 and 5 above, the Affected Jurisdiction to which the application for tax abatement was directed shall determine whether default has occurred by owner (applicant) in the terms and conditions of the Tax Abatement Agreement and shall so notify all other Affected Jurisdictions. Termination of the Tax Abatement Agreement by the Affected Jurisdiction to which the application for tax abatement was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all other Affected Jurisdictions. MAP IN FILE SEE RESOLUTION # ZlCC^ZE a°.°�i�raer a PLAT SHDWM TCPCORAPMC SURVEY ON TRACT S PLANTERS INDUSTRIAL PARK ADDITION TO THE CRY Of LMM. LUSSCCK COUNTY. M" ® EXISTING IMPROVEMENTS PROPOSED IMPROVEMENTS EAST /6th STREET CfdJ / /.7/// v i i I&-&. r • �Loo f, oo" 8 �x�'cbit A