The URL can be used to link to this page

Home My WebLink AboutResolution - 4938 - Agreement-Town & Country Food Stores Inc-Industrial Tax Abatement - 09_14_1995Resolution No. 4938 September 14, 1995 Item #10 ,I RESOLUTION l BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: I 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 an Agreement and all related documents by and between the City of Lubbock and Town & Country Food Stores, Inc., for industrial tax abatement, which Agreement is attached hereto and shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 14th day of September , 1995. AVID R. LAWGSTON, ATTEST: &-rt,- a, Betty Nf. Johnson, City Secretary APPROVED AS TO CONTENT: el Beesinger, nterim Prrector of Business Development APPROVED AS TO FORM: . anores, jr., JES js/AG-T&C.RES ccdocs/August 10, 1995 Resolution No. 4938 September 14, 1995 Item #10 STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 10 th day of September , 1995, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Town & Country Food Stores, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 27th day of July, 1995, an application for tax abatement for construction of Company's facilities located within Lots 1-5, Block 37, Suburban Homes Addition, City of Lubbock; and WHEREAS, upon review of the above application, it was determined that facilities would be located in the South Enterprise Zone designated by City in its Ordinance No. 9591; and WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by Resolution No. 4287 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 312.2011; and WHEREAS, the City did comply with all of the criteria and guidelines for creation of an enterprise zone as set forth in Chapter 2303, Subchapter C of the Texas Enterprise Zone Act, Texas Government Code, having adopted Ordinance No. 9591 of the City on February 18, 1993, which ordinance includes Lots 1-5, Block 37, Surburban Homes Addition, City of Lubbock, and WHEREAS, the application received by City from Company is an application for the construction of a new Company facility; and WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones adopted by the City Council by Resolution No. 9591 does recognize construction of new facilities as being eligible for commercial tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guidelines and Criteria established for Commercial Tax Abatement within the Enterprise Zones of the City of Lubbock, as adopted by Resolution No. 4287, have been met by Company; and WHEREAS, Company does intend to construct its new facility; and WHEREAS, the location of the constructed facility and surrounding real property, which are to be the subject matter of the 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 designated Enterprise Zone; 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 five (5) 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 the Agreement, shall be 1995, 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. PropgM Ineligible for Tax Abatement. The property described and set forth in Section IV(5) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones, and heretofore adopted by the City Council by Resolution No. 4287, and incorporated by reference herein as if fully set out in this Agreement is property ineligible for tax abatement. Page 2 SECTION 6. Exemption from Tax. The City covenants and agrees to exempt from taxation, in accordance with Section 4 above, the following properties: (a) All proposed improvements to be placed upon Lots 1-5, Block 37, Suburban Homes Addition, City of Lubbock. (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 necessary to qualify for tax abatement by constructing a new facility, and further that the Company will create new jobs in excess of the number required for tax abatement, all as set forth in Section IV(9)of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock adopted by the City through Resolution No. 4287. SECTION 8. Value of Improvements. Company intends to expend approximately four hundred fifty thousand dollars ($450,000) in building related structural improvements, and one million three hundred thousand ($1,300,000) for machinery and equipment 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 twenty (20) new jobs within the Company facility located within Lots 1-5, Block 37, Suburban Homes Addition, City of Lubbock, and use its best efforts to maintain a minimum of twenty (20) 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 commercial tax abatement and this Agreement. Page 3 SECTION 11. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate one hundred (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 five (5) years after such date. SECTION 13. Type of Improvements. The Company proposes to construct a new travel center/convenience store facility as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the 28th day of July 1995, and shall be completed within approximately 120 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. 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 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 designated 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 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 TOWN & COUNTRY FOOD City Manager STORES, INC. P.O. Box 2000 Carlton Tanner Lubbock, TX 79457 3908 Avenue A Lubbock, Texas 79404 SECTION 18. Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as it shall be finally passed and approved. Pape 4 EXECUTED this /81L": day of fijkS 1995IJ TOWN & COUNTRY FOOD STORES, A Texas Corporation r�. ATTEST: S tary iiSStsrANT� ATTEST: &"t'— An'�' Betty M. Johns44 City Secretary APPROVED AS TO CONTENT: Joel Beesmg Interim Director of B mess Development APPROVED AS TO FORM: Tn ttorney Page 5 �_--..__— .. __ _ ..�i _... _.....__ _. _ .._—... _..., r5':T of -•.T r-----..—_._-_— �� \° ° ♦ 1 1 I I I � — 1 T R U C K S I T i ♦ �� ••o i i i � ! auuwa. ♦ � F! nano • ♦ — .�•CI� W � ! �• k C� w.�. ar f,.,l ♦ — — - — r f•or^•m TO • coupT11T "M •T••F Y L TRATORE I TTIT I I ,•Ii � 71?� I i IliII017__--_ — I I� a IDhra �a o(Op IDj✓a .n I / ♦ ♦ ♦ ♦ �� . tr� 1 e w P.iii; ... . .. • • , i� YY PLAT SHORING A SITE PLAN FOR A TORN k COUNTRY` FOOD STORE 5 0 T H STREET IN LUBBOCK. LUBBOCK COUNTY, TEXAS. IM'••I - NArNwI I EXHIBIT "A" ov� I F6qr" CAST 594-W Woo -94.ZS .1.wqv17, "'m SlaWe 1-pmoldl*W (J AC) ci B L 0 C K 37 9.022 a W-mr lm� O LQ — — — — — — — lFiLLly- - - - - - - - - - - voii." F CoIrt - - - - - - . . . . >1 LQ 100*05100"E 2& 11.6 -4M 16 U'50 12 ffi=2804.M SO 1/"Lp L-27 St O.Lp "K &TA IF- WEST 50TH STREET (P 110USL Y DEDICA TED) 464.36 SUBURBAN HOMES ADDITION BLOCK 37 AN ADDITION TO THE CITY OF LUBBOCK LUBBOCK COUNTY, TEXAS CARDS IN ACCOUNT 00 - 07/31/95 KT. LAND !PROVE. 4TURES TOTAL LAND ,ROVE. ATURES TOTAL _w CONsT. 96730 96730 'HINT. DATES LAND 948505 GK/NA :SE SO. FT. ,/ING AREA DTAL SO. FT. TES: I Yf►U•:.:�.�f.ry:.11....... i....... 1 :1■..IAnL• y�. ofl..... .ah.aa�ra7l1 exhibit "A" PARCEL R822000-00037-00010-000 LOCATION LB 218 50TH ST UrNmDIVIDED I zohda CNTv I SCHL I CITY OTHER OWNE li t5 Lb Lb Lb HU WV TOWN & COUNTRY FOOD STORES INC PO BOX 5581 SAN ANGELO TX 76902-5581 % OWN: LEGAL: 100 SUBURBAN HOMES BLIP. 37 KEY 526898 94042714554/242 I WD 921020 0765/,151 PB 1995 MKT. LAND 9E730 IMPROVE. FEATURES TOTAL 96730 AG.LAND IMPROVE. FEATURES TOTAL NEW CONST. K EXHIBIT 'B' SECTION VII. Recapture: 1. In the event that any type of facility, (as defined in Sec- tion I, Subparagraphs 5, 6, 7, 8, 10, 11, 12, 13, 17, 18) is completed and begins producing goods or services, but subse- quently discontinues producing goods or services for any reason, excepting fire, explosion or other casualty or acci- dent or natural disaster or other event beyond the reason- able 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 Juris- diction to whom the application for tax abatement was directed that the discontinuance of producing goods or ser- vices was as a result of fire, explosion, or other casualty or accident or natural disaster or other even 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 the production of goods or services within one year, then the Tax Abatement Agreement shall ter- minate and the Abatement of all taxes shall likewise termi- nate. Taxes abated during the calendar year in which termi- nation takes place shall be payable to each Affected Juris- diction 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 notifica- tion 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 Jan- uary 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 applica- tion for tax abatement was directed determines that the applicant or owner is in default of any of the terms or con- ditions contained in the Tax Abatement Agreement, then in such event the Affected Jurisdiction shall give the appli- cant or owner sixty (60) days written notice to cure such default. In the event such default is not cured to the sat- isfaction 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 termi- nate. Taxes abated during the calendar year in which termi- nation takes place shall be payable to each Affected Juris- diction 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. 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. Guidelines and Criteria Governing Tax Abstsaee t for Cosssercisl Projects in oesiGnsted Enterprise Zones Exhibit *BE PAGE 2 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 reinvest- ment zone, then 1n 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 termina- tion 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 Subsec- tion 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 Agree- ment 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. Termina- tion of the Tax Abatement Agreement by the Affected Juris- diction to which the application for tax abatement was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all other Affected Jurisdic- tions. 8. In the event that a tax abatement agreement is terminated for any reason whatsoever, and taxes are not paid within the time period herein specified, then in such event, the provi- sions of V.T.C.A., Tax Code, Section 33.01 will apply. Guidelines and Criteria Governing Tex Abatewnt for Commercial Projects in Designated Enterprise Zones Exhibit man PAGE 3