Loading...
HomeMy WebLinkAboutResolution - 4414 - Tax Abatement Agreement - Gary Products Group Inc - Sout Enterprise Zone - 03_10_1994Resolution No. 4414 March 10, 1994 Item #5 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 by and between the City of Lubbock and Gary Products Group, Inc., for certain property within the South Enterprise Zone to receive commercial -industrial tax abatement, which Agreement is attached hereto and made a part hereof for all purposes. Passed by the City Council this ATTEST: &'t-' a-^) Betty M. Johnson, tity Secretary APPROVED AS TO CONTENT: Rod s, Director of Business Relations/ Economic Development APPROVED AS TO FORM: tKnald G. Vandiver, First Assistant City Attorney DGV:da/co&xx/GARYPROD.res lanuauy 26, 1994 Resolution No. 4414 March 10, 1994 Item #5 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 10th day of March , 1994, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Gary Products Group, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 23rd day of December , 1993 an application for tax abatement for construction of a 120,000 square foot distribution facility and office located at 3101 Southeast Loop 289, which is further described as 32.67 acres out of Section 3, Block S, Johnson Subdivision, Lubbock County, Texas; and WHEREAS, upon review of the above application it was determined that the facilities will be located in the South Enterprise Zone designated by the City in Ordinance No. 9591 covering the above described property; and WHEREAS, the Guidelines and Criteria for Tax Abatement for Industrial Projects included in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by Resolution No. 4288 of the City Council of the City of Lubbock; 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 as set forth in the Guidelines and Criteria governing Tax Abatement within the taxing units of Lubbock County, said guidelines having been adopted by Resolution No. 4288 of the City on October 14, 1993; and WHEREAS, the City did thereafter pass Ordinance No. 9591 creating an enterprise zone for commercial and industrial tax abatement, said zone including Section 3, Block S, Johnson Subdivision of Lubbock County; and WHEREAS, V.A.T.C., Tax Code, Sec. 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 construction of a new company facility; 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 WHEREAS, Section IV of the Guidelines and Criteria for Tax Abatement for Industrial Projects in Designated Enterprise Zones adopted by the City Council by Resolution No. 4288 does recognize construction of new facilities 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. 4288, have been met by Company; and WHEREAS, Company does intend to construct a new distribution facility and offices; and WHEREAS, the location of the facility and surrounding real property, which are to be the subject matter of this Agreement, are attached hereto as Exhibit "A" and made a part of this Agreement for all purposes; and 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 within the enterprise zone; AGREEMENT - GARY PRODUCTS GROUP, INC. PAGE 2 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 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 1994 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. 4288 is incorporated by reference herein as if fully set out in this 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 by Company upon Section 3, Block S, Johnson Subdivision to Lubbock County, which proposed improvements are set forth in a plat of the AGREEMENT - GARY PRODUCTS GROUP, INC. PAGE 3 above tract of land, attached hereto as Exhibit "A" and made a part hereof. (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "A". (c) It is further understood that all items affixed to the improvements placed upon the real property identified 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 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. 4288. SECTION 8. Value of Improvements. Company intends to expend approximately 1.5 million dollars in building related structural improvements to be located within the enterprise zone created by Ordinance No. 9591. SECTION 9. Creation of New Jobs. Company agrees within twelve (12) months from the date of execution of this Agreement that it will create sixty-five (65) full time equivalent new jobs within the Company plant to be located within Section 3, Block S, Johnson Subdivision, Lubbock County and use its best efforts to maintain a minimum of sixty-five (65) new jobs during the term of this Agreement. SECTION 10. City Access to Propga. 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 AGREEMENT - GARY PRODUCTS GROUP, INC. PAGE 4 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 100 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. !I = of Improvements. The Company proposes to construct a new distribution facility and other improvements as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the 1st day of March, 1994, and shall be completed within approximately seven (7) months 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. 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 enterprise 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 Guidelines and Criteria for Tax Abatement adopted by Resolution No. 4288 of the City Council of the City of Lubbock. AGREEMENT - GARY PRODUCTS GROUP, INC. PAGE 5 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 GARY PRODUCTS GROUP, INC. City Manager 620 East Slaton Road P.O. Box 2000 Lubbock, Texas 79404 Lubbock, Texas 79457 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. EXECUTED this loth day of March GARY PRODUCTS GROUP, A Te 4 Corporation AI Ir-31: 1994 . Se retary City S retary APPROVED TO CONTENT: od 1 ' , D ector of Business Relations/ Economic Development APPROVED AS TO FORM: ald G. Vandiver, First Assistant City Attorney DGV : d&11-D 10/A-GARYPD . doc rev. February 11, 1994 AGREEMENT — GARY PRODUCTS GROUP, INC. PAGE 6