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Home My WebLink AboutResolution - 4005 - Amendment To Tax Abatement Agreement - Mclane_Foodservice Lubbock Inc - 10_22_1992Resolution No. 4005 October 22, 1992 Item #33 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock, Texas, BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, Texas, an Amendment to Tax Abatement Agreement by and between McLane/Foodservice Lubbock, Inc. and the City of Lubbock, Texas, for the use of certain property to be used as a reinvestment zone for commercial - industrial tax abatement, attached herewith. Passed by the City Council of the City of Lubbock this 22nd day of October 1992 . i GS 0 YO ATTEST: Acting i Secretary Sally Still Abbe APPROVED AS TO CONTENT: o rector o us ness Relations APPROVED AS TO FORM: n C. Ross, Jr., MY Attorney CR: da1AGENDA-D3 /A -CITY . ce s September 30, 1992 Resolution No. 4005 October 22, 1992 Item #33 AMENDMENT TO TAX ABATEDIENT AGREEMENT STATE OF TEXAS COUNTY OF LUBBOCK This Agreement made this the 22nd day of October , 19 92, by and between the City of Lubbock, Texas, a municipal corporation, acting by and through its Mayor, David R. Langston, hereunto duly authorized (hereinafter called "City") and McLane/Foodservice Lubbock, Inc., a Texas Corporation (hereinafter called "Company"); WITNESSETH WHEREAS, the City and Company did enter into an agreement to abate taxes on improvements to real property owned by Company and more fully described in Exhibit "A" attached to the original agreement between the parties hereto; and WHEREAS, said original agreement between the City and Company was executed on the 30th day of May, 1986; and WHEREAS, a copy of the original agreement executed by the City and Company is attached to this amendment as Exhibit "A" and made a part hereof for all purposes; and WHEREAS, there is a need to modify said original agreement between the parties hereto by deleting from said agreement certain unimproved land; and WHEREAS, V.T.C.A., Tax Code, Section 312.208, grants specific authority to the parties hereto to modify said original contract by deleting therefrom certain unimproved real property; NOW THEREFORE: For and consideration of the mutual covenants and agreements herein contained, the City and Company do hereby agree that the original contract, attached hereto as Exhibit A, shall be and is hereby modified to include only the improvements together with the underlying real property set forth in Exhibit "B", which exhibit is attached hereto and made a part hereof, and which said improvements are cross marked and identified on Exhibit "B" thereby. Save and except as above modified the original agreement executed between the parties shall remain in full force and effect. EXECUTED this 22nd day of October , 19 92. MCLANE/FOODSERVICE LUBBOCK, A Texas Corporation PRESIDENT ATTEST: ATTEST: 1 Secretary ActingkCity Secretary Sally Still e APPROV AS TO CONTENT: Ro llis, Director of Business Relations JCR: da/INST-D9/A-CnrY.doc September 30, 1992 'W4= APPROVED AS TO FORM: v _ 7 Jbhn C. Ross, Jr. C ty Attorney CITY OF LUBBOCK COP' DGV:cl STATE OF TEXAS § COUNTY OF LUBBOCK § AGREEMENT KNOW ALL MEN BY THESE PRESENTS: WHEREAS, the City of Lubbock, pursuant to the provisions of Article 1066' of the Revised Civil Statutes of the State of Texas, known as the "Property Redevelopment and Tax Abatement Act", has designated by ordinance, which ordinance is attached hereto as Exhibit "A", and incorporated herein by reference for all purposes, certain property as a reinvestment zone for commercial -industrial tax abatement under Section 3 of said Act; and WHEREAS, McLane/Foodservice Lubbock is the owner of certain real property located within said reinvestment zone, and des- cribed in Ordinance No. 8928, heretofore incorporated into this Agreement as Exhibit "A"; and WHEREAS, the City desires to promote and encourage the development of industry and the expansion and the growth of the Property; NOW THEREFORE: FOR AND IN CONSIDERATION of the mutual covenants and agreements herein contained, the City of Lubbock, Texas, a municipal corporation, acting by and through B.C. McMinn, its Mayor, hereunto duly authorized, and hereinafter called "City", and McLane/Foodservice Lubbock, a Texas corporation, acting by and through its duly authorized officers and agents, and herein- after called "Foodservice" have this day entered into the following contract and agreement: 1. Term. This Agreement shall expire and be of no further force or effect between the parties when Foodservice has received $770,000 in tax abatement relief or ten (10) years from the date of its execution whichever event occurs first. 2. Exemption from Tax. The City covenants and agrees to exempt and abate real property tax, on a lot by lot basis, based upon the following schedule: (a) Taxes on the raw land within the reinvestment zone as established in Ord. No. 8928 attached hereto as Exhibit "A" shall be no more than the taxes levied on said land for the year 1986. (b) One Hundred (100%) percent of Foodservice's improve- menta on said real property for the term of this Agreement. (c) During the term of this Agreement, Foodservice agrees to use its best efforts to maintain a minimum of 100 employees at the Lubbock facility. 3. Construction of Improvements. Foodservice covenants and agrees that it shall, within the term of this Agreement, complete the improvements indicated on the attached Exhibit B, in an orderly manner as the property is developed. 4. • City -Access to Property. Foodservice agrees that the City shall have access to the property and that municipal employees shall be able to inspect the property to insure that the improvements are being made in accordance with the speci- fications and conditions of this Agreement. 5. Limitation on Use. Foodservice agrees to limit the use of the property for commercialand/or industrial uses as those terms are defined in the zoning ordinances of the City of Lubbock. - 6. Default. Foodservice agrees that should it fail to make the improvements called for under this Agreement, then the City shall have the right, after giving notice and opportunity to cure as hereinafter set out, to recapture all property tax revenue on the property lost as a result of this Agreement. The City agrees, prior to the enforcement of the terms of this Paragraph, to give Foodservice thirty (30) days written notice to the address shown below of its default in completing the improve- ments called for in this Agreement and Foodservice shall have the right to enter into a binding contract with a reputable con- tractor to complete the improvements within a reasonable time in order to cure said default. - 2 - r t' 7. Binding Effect. This Agreement shall inure to the benefit of and be binding upon the City and Foodservice, their affiliates, subsidiaries, successors and assigns. 8. Foodservice agrees that this Agreement may not be assigned without the prior consent of City. 9. Notices. Notices reyui:c-' by this Agreement shall be mailed to the following addresses: City of Lubbock McLane/Foodservice Lubbock City Manager 2915 Center Street P.O. Box 2000 P.O. Box 80 Lubbock, Texas 79457 Temple, Texas 76503 10. Effective Date. This Agreement shall not be effective until such time as Ordinance No. 8928 creating the Reinvestment Zone shall be finally passed and approved. EXECUTED this 30th day of May , 19 86 . MCLANE/FOODSERVICE LUBBOCK, INC. CITY OF LUBBOCK, TEXAS A Texas Corporation: A Municipal Corporation: PRESI ENT B.C. McMINN, MAYOR ATTEST(: � ATTEST: Secretary Rane to Boyd, Cit�Secr`etar APPROVED AS TO CONTENT: Robert Massengale, Assistant City Manager APPROVED AS TO FORM: J n C. Ross, Jr., ity Attorney - 3 - EXHIBIT "B" CONSTRUCTION OF IMPROVEMENTS The development plan for the reinvestment zone referenced by the above title is to be implemented by the construction of a major industrial facility. This facility will require the development of an area of approximatey''28 acres. The building to house the plant will cover a 180,000 square foot area. The estimated cost of construction for the facility and the value to be placed on the tax rolls will be approxi- mately $6,000,000. The estimated annual tax revenues from real property on this development will be approximately $110,000 that will be abated until the company has recovered an amount of $770,000. THE STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § I, RANETTE BOYD, City Secretary for the City of Lubbock, Texas, hereby certify that the attached document is a true and correct copy of Ordinance 18928 as it appears in Volume #21 of the Ordinance record and as it remains on file in the Office of the City Secretary. Ordinance was passed on second and final reading on June 2, 1986. If I were called upon to testify, I would testify as to my position as City Secretary and that these records accurately reflect the records on file in this office. TO CERTIFY WHICH, witness my hand and seal of the City of Lubbock, Texas, this I.q .�' 2nd day of June, 1986. (Seal) �ANETTE�BOYD�� City Secretary JCR:cl r i rs L rcraa i fly May 30, 1986 Agenda Item #6 Second Reading June 2, 1986 Agenda Item 03 ORDINANCE NO. 892E AN ORDINANCE DESIGNATING A REINVESTMENT ZONE WITHIN THE CITY OF LUBBOCK AS AUTHORIZED BY ART. 1066f, V.A.C.S.; DESCRIBING THE BOUNDARIES OF SAID ZONE; DESCRIBING THE ELIGIBILITY OF SAID ZONE FOR COMMERCIAL - INDUSTRIAL TAX ABATEMENT; AND PROVIDING FOR A SAVINGS CLAUSE. WHEREAS, Art. 1066g, V.A.C.S. authorizes the City Council of the City of Lubbock to create a Reinvestment Zone for commercial -industrial tax abatement purposes; and WHEREAS, the City Council of the City of Lubbock did declare its intent to create such a Reinvestment Zone by its adoption of Resolution 2316, reference to such resolution being hereby made, at its meeting of May 22, 1986; and WHEREAS, the City Council did cause a Notice of Intent to create such Reinvestment Zone to be delivered to all taxing units levying taxes on real property within the zone; and WHEREAS the boundaries of the Reinvestment Zone was described in Exhibit "A" attached and made a part of Resolution 2316; and WHEREAS the necessary taxing units levying taxes on real property within the zone have waived the requirement of 60 day notice of the City Council's intent to create a Reinvestment Zone; and WHEREAS the necessary taxing units levying real property taxes on property within the zone have consented to a single formal presentation of the Reinvestment Zone Plan by the City Council of the City of Lubbock; and WHEREAS, the City Council did adopt a Reinvestment Zone Financing Plan for the zone hereinafter described; and WHEREAS the City Council did hold a public hearing to consider the establishment of a Reinvestment Zone as hereinafter described, said hearing being held on May 30, 1986, prior to the adoption of this Ordi- nance and did find that the improvements sought for the property within the Reinvestment Zone are feasible, practical and would be a benefit to said land; and WHEREAS the City Council of the City of Lubbock has determined and hereby finds that the real property, hereinafter described, to be included within the Reinvestment Zone is in a blighted area of the City of Lubbock and that such property substantially impairs or arrests the sound growth and development of the City of Lubbock in its present use; and EXHIBIT "A" WHEREAS the City Council has previously found that the real property to be included within the Reinvestment Zone was within a blighted area of the City and was an economically depressed area all as set forth in Resolution Number 1769, reference to which is hereby made for all purposes; and: NOW THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT by and under the authority of Art. 1066f, Y.A.C.S., the following described real property located within the City of Lubbock, County of Lubbock, Texas is hereby designated as a Reinvestment Zone: FIELD NOTE DESCRIPTION for a 28.46 acre tract of land out of Section 5, Block 0, Lubbock County, Texas, further described by metes and bounds as follows: BEGINNING at a 1/2" rod set in the East line of said Section 5, Block 0, S.00°03'40" E. a distance of 1375.03 feet from the Northeast corner of the Southeast 1/4 of said Section 5, Block 0, Lubbock County, Texas; THENCE S. 00003'40" E. along the East line of said Section 5, Block 0, a distance of 989.62 feet to a 3/8" rod set in the Northwesterly right-of-way line of the Ft. Worth & Denver R.R.; THENCE S. 45°21'05" W. along said R.R. right-of-way line a distance of 391.29 feet to a 3/4" iron pipe; THENCE S. 89030138" W. a distance of 589.37 feet to a 1/2" rod set in the Easterly right-of-way line of Loop 289; x THENCE N. 00003' W. along said Easterly right-of-way line a distance of 30.89 feet to a 1/2" rod set in said Easterly right-of-way line; THENCE S. 89038' W. along said Easterly right-of-way line a distance of 20.00 feet to a.1/2" rod; THENCE Northwesterly around a curve to the right, along the Easterly right-of-way line of Loop 289, said curve having a radius of 85.00 feet, delta angle of 84*361, tangent lengths of 77.34 feet, and a chord distance of 114.41 feet to a 1/2" rod set in said Easterly right-of-way line; THENCE N. 05046' W. along said Easterly right-of-way line a distance of 665.00•feet to a 1/2" rod set in the Easterly right-of-way line of Loop 289; -2- THENCE N. 00003' W. along said Easterly right-of-way line a distance of 491.67 feet to a 1/2" rod; THENCE N. 89°30'38" E. a distance of 1039.35 feet to the PLACE OF BEGINNING. SECTION 2. THAT the area of the Reinvestment Zone as described in Section 1 of this Ordinance, is eligible for such designation in that its present use substantially impairs or arrests the sound growth of the City of Lubbock and constitutes an economic liability for the City in that the property has never been platted and is predominantly open and undeveloped and has been in such condition for over ten (10) years even though such property is adjacent to Loop 289 and has rail access. SECTION 3. THAT should any section, paragraph, sentence, clause, phrase or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. AND IT IS SO ORDERED: Passed by the City Council on first reading this 30fh day of May, 1986. Passed by the City Council on second reading this nd day of June 1986. C. b ch �B.0i , MAYOR ATTEST: APPROVED AS TO FORM: John C. Ross, Jr., City Attorney EXHIBIT "B" CONSTRUCTION OF IMPROVEMENTS The development plan for the reinvestment zone referenced by the above title is to be implemented by the construction of a major industrial facility. This facility will require the Y development of an area of approximately 28 acres. The building to house the plant will cover a 180,000 square foot area. The estimated cost of construction for the facility and the value to be placed on the tax rolls will be approxi- mately $6,000,000. The estimated annual tax revenues from real property on this development will be approximately $110,1100 that will be abated until the company has recovered an amount of $770,000. MAP IN FILE SEE RESOLUTION PLAT SNOWING TOPOGRAPNIC SURVEY ON TRACT 6 PLANTERS INDUSTRIAL PARK ADDITION TO THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS ® EXISTING IMPROVEMENTS EAST /6th O v TUR! 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