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HomeMy WebLinkAboutResolution - 5354 - Tax Abatement Agreement - Avenue H Properties LTD - 1802 Avenue H - 11_21_1996RESOLUTION NO. 5354 Item #30 November 21, 1996 RESOLUTION WHEREAS, the City Council has determined to give notice of its intent to enter into a Tax Abatement Agreement with Avenue H Properties, LTD; and WHEREAS, V.T.C.A. Tax Code, Section 312.2041 requires notice of the intent of the 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 the City Council to enter into a Tax Abatement Agreement with Avenue H Properties, LTD., 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 the City of Lubbock, Lubbock County, Texas, and further described as follows: 1802 AVENUE H ORIGINAL TOWN LUBBOCK BLOCK 230, LOTS 23-24 CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS Passed by the City Council this 21st day of ATTEST: h4L2 L-wj� Kaythikl Darnell, City Secretary APPROVED AS TO CONTENT: Cheryl Block, Business Development APPROVED AS TO FORM: arold Willard, Assistant City Attorney dp=docs\avehpropses November 6, 1996 1996. ALEX "TY" COME, MAYOR PRO TEMPORE Exhibit "A" NOTICE OF INTENT OF THE CITY COUNCIL OF THE CITY OF LUBBOCK TO ENTER INTO AN AGREEMENT TO ABATE TAXES ON REAL PROPERTY IMPROVEMENTS AND TANGIBLE PROPERTY LOCATED IN ORIGINAL TOWN LUBBOCK BLOCK 230, LOTS 23-24 CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS Notice is hereby given that the City Council of the City of Lubbock intends to enter into an agreement with Avenue H Properties, LTD. to abate taxes on improvements to property and tangible property located within an enterprise zone created by Ordinance No 9591 and covering all of the subject property. 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 Avenue H Properties, LTD. 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 Chamber, City Hall, 1625 13th Street, City Of Lubbock, on the day of , 1996, at o'clock _.m. dp:ccdocslaveh-noWoc November 6,1996 EXHIBIT "A" STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this day of , 1996, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Avenue H Properties, Ltd. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 18th day of September, 1996, an application for tax abatement for modernization of Company's facilities located within Original Town Lubbock Block 230, Lots 23-24, City of Lubbock, Lubbock County, Texas; and WHEREAS, upon review of the above application, it was determined that facilities would be located in the North 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_ 4974 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 Original Town Lubbock Block 230, Lots 23- 24, City of Lubbock, Lubbock County, Texas; and WHEREAS, the application received by City from Company is an application for the modernization of an existing 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. 4974 does recognize modernization of existing 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. 4974, have been met by Company; and WHEREAS, Company does intend to modernize the existing facility; and WHEREAS, the location of the existing facility and surrounding real property, which are to be the subject matter of the Agreement, are depicted on as Exhibit "A", attached hereto 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. J=. 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. Ease Year. The base year applicable to real property, which is the subject of the Agreement, shall be 1996, and the assessed value of the real property shall be the assessed value applicable to such property for said year. AVENUE H PROPERTIES LTD. 2 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. " Proper Ineligible for Tax Abatement. The property described and set forth in Section IV(6) 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. 4974, and incorporated by reference herein as if fully set out in this Agreement, is property ineligible for tax abatement. 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 new improvements to be placed upon the existing facility located at Original Town Lubbock Block 230, Lots 23-24, City of Lubbock, Lubbock County, Texas. (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 improvements, and taxes thereon shall be abated in accordance with the provisions of sub- paragraph (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 modernizing an AVENUE H PROPERTIES, LTD. 3 existing 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(10)(a) 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. 4974. SECTION S. Value of Improvements. Company intends to expend approximately ONE HUNDRED THIRTY-FIVE THOUSAND DOLLARS ($135,000) in building related structural improvements 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 Original Town Lubbock Block 230, Lots 23-24, City of Lubbock, Lubbock County, Texas. 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 ensure that the improvements are being made in accordance with the terms and conditions of Company's application for commercial tax abatement and this Agreement. SECTION I L . 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. Tyne of Improvements. The Company proposes to modernize an existing building into a 1930's Spanish Renaissance Revival Architectural Drugstore as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the 191h day of September, 1996, 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 AVENUE H PROPERTIES LTD. 4 control of Company necessitate additional time for completion of such improvements, and such consent shall not unreasonably be withheld. SECTION 14. Drawings of I provements. 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. Certification, The Company agrees to certify annually to the governing body of each taxing unit that the Company is in compliance with the terms of the Agreement. SECTION 18. Compliance: The City may cancel or modify this Agreement if the Company fails to comply with the Agreement. SECTION 19. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK AVENUE H PROPERTIES, LTD. City Manager Ronald E. Thompson P.O. Box 2000 P.O. Box 948 Lubbock, TX 79457 Lubbock, TX 79408 AVENUE H PROPERTIES, LTD. 6 SECTION 20. .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. EXECUTED this day of 1199. AVENUE H PROPERTIES, LTD. r" R ald E. Thompson PARTNER ATTEST: Secretary , " CAB/a: AVEHPROP.DOC Novcmber 1, 1996 AVENUE H PROPERTIES LTD. 6 CITY OF LUBBOCK A Municipal Corporation Alex "Ty" Cooke, MAYOR PRO TEMPORE ATTEST: Kaythie Darnell, City Council Chief of Staff/City Secretary APPROVED AS TO CONTENT: f3Wetj Cheryl B ock Business Development APPROVED AS TO FORM: &'WW arold Willard Assistant City Attorney EXHIBIT "A" VIN Ma f DATE &REQUES,fOR ID O-NUMBE PI SQ. FT. Guc OWNER Mom. I STR. I YR. BUILT TOT. FL. AREA PARKING DET. BLDG. STR. ADDR STR. 111;;m USE CODE EST NUM FLOOR AREA RES. UNIT I us; CODE LEGAL LAND AREA # OF FLOOR STR. UNITS ITf Mum, M. MIM-12=311. 11.5 IMPORTANT THIS IS NOT A TAX BILL: .fart r LE 13CZ AV! N Z:3E3980 T14OMPSCN AJtiALO E 3 LUTK'ct A AV:T.S :R:5 T La.320:C ELK Z3: L 4'3-24 5524 ZOTH Si LU273CK rx t94.1-2C,3Q WAZLIVIIIIIIII 1996 PROPOSED .ANC•%•AaKE' VALUE 13 •nQ^ i _ `sD :•aarcT.VALIE 13.JQ0 _AN: -a"'. - -� .;C"%-r+:`LUE ,t'rRa'Yt�1Ea�'$ • !f4FaE' 1202!3_'.': '.W:KET 120,Z53 ac4yZNAC:;:ocq^. .SL.,° .E�-ki. C.-ZAE37 VALUE 251253 -� _�•_:-= _._ 25,253 TAXES LEVIED EXEMPTIONS vTA T4kXtNG UWTS JAFTER EXEMOYTIC04 TAXES LEVIED GRANTED (AFTER "EMPTON) TAX RATE ESTIMATED TAXES 'NP irA.=R f IISST i�,`33 1... 2.�22 {Se2 t . .cc 706 ' iLC 1130 0.3T SOCK C3U.%TY 3 25i253 20..1 4t. _5.2l3 .0 S2Z 25i253 .1C.I?7 4 21:8 4` 9 �k AL: t pox., THIS IS NOT A TAX STATEMENT PLEAU ESTIMATED PROPERTY TAXES porros Mr THIS YEAR'S ESTWATW TAX RATE T.Ns .are raid :a,se :re Sarre total reve�4e ra: re unit a.seC ast yea: `am property taxed FROM T11" f taw, -,Gar A 'Lt.-mg n.: may NOTadx: a 'a:2 :'ai %t..'.0 rase MORE-evenue t*, . •re sane proCe-jes UNLESS -;Wishes notice in wr+cE a olewsuace, :-3t :.s ccrs:lterr'g a Cease wo n. ^y- a =;;c `'•e3-n., for :ay -,ayes *c ,.sccuss :`,e ;nCrew. THIS YEAR'S ESTIMATED TAXES: r, .esE 3 ^ S 3C? `E :cac5 ,.0 hC%;C3. .E3' s-7:zesed va .e "fte genowning dies adopt rite -i. _.. .. _ ... :f.ej•:fir., .►.~ _ ry..-.-.. ..a.: ih: 25. PLEASE IF YOU ARE AM 65 OR OL.DER ~ere,:ec trE 610*0W SCHOOL ;ai eie^_ an c- , our hc►ne. ye.: SCHOOL READ .ae' .- . .. `.: �e _ e - .. jau a-e . e :..^e exe'^ *.c•r . o__ .'u -em a orvr?red fc.r property .. ..r'.. r/�.'^.'.. _ ;•rr is .co•.4r• .7 11 Yi.. W— tf!' P r f^ •s y_a s o a.t:csed .G:.r C.rovei.j Cc'.aC' . . i:p,a,sa. xtice ^7.eJ.a*Fly J :he cat -not to resolved. you =� 06/2:1/95 y'^ _ _ ,•C. rhE appra+sal The ARB frlrtlt tiepirt Marines on You wo ei irotiW d eu dde. err and prof toLw Meme is aehedled .a'_e of _-:-- s C -,act THIS IS NOT A TAX BILL — PLEASE DO NOT PAY FROM THIS NOTICE A. COMPLETE INTERIOR RENOVATION AND RESTORATION OF THE EXISTING FACADE. B. CONSTRUCTION COSTS FOR RENOVATION AND RESTORATION. EQUIPMENT COSTS C. RESTORATION OF FACADE... STOREFRONT GLASS AND DOOR, NEW FLOOR, WALL, CEILING TRESTMENTS,' NEW KITCHEN AND BATHROOMS. D. ATTACHED E. NONE F. SEPT 96 - NOV 96 G. THE MODERNIZATION AND RENOVATION OF EXISTING BUILDING. H. $135,000 I (LEIGH - TAX STATEMENT) J. THIS SMALL RESTAURANT AND BAR WILL EMPLOY APPROXIMATELY 25. VB 1. 8/26/96 2. HEARING NOT SET 3. CITY OF LUBBOCK# HP WATER DISTRICT, LC HOSPITAL DISTRICT. 4. NO LETTERS OF INTENT AVAILABLE Part F - Estimated Appraised Value on Site: LAND PERSONAL IMPROVEMENTS PROPERTY Valuation of Facility January I Preceding Proposed Abatement 1 C.-Dr) 1, . a;5 Value of Facility, upon Completion of Project, of Personal Property, and Improve- ments not Subject to Abatement C)0 155. 0 t; D I 1 a5 Estimated Value of Eligible Improvements after Abatement Agree- ment Expires 5 .CLC 1Gb0o Part G - Variance: (a) Is a variance being sought under Section IV 9.(d) of the 'Guidelines'? Yes Noy (b) If 'Yes', attach any supplementary information required. Section V - DECLARATION To the best of my knowledge, the above information is an accurate description of project details. ('"pany Of ME a tia ure Printed ame and litle o Company Official comtxapp Wtication for Cammmiat T" Abata k in ukbock, Tam - ►AGE 4 in 0 1s• t- :. a 8• .. q• �o' :: a• ��' � ♦ Sea' j 18Q1 Ave H EXHIBIT "B" SECTION VII. Recapture: In the event that any type of facility, (as defined in Section II, Subparagraphs S, 6, 7, 8, 10, 11, 12, 13, 17, 19) is completed and begins producing goods or services, but subsequently discontinues producing goods or services for any reason, excepting fire, explosion, 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 y air 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 and 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 care such default In the event such default is not cared 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 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. 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 cc 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 form the Affected Jurisdiction, failing in which, the abatement remains terminated and the abated taxes must be paid. 7. In every rase of termination set forth in Subparagraphs 1, 2, 3, 4 and S above, the Affected Jurisdiction to which the application for tax abatement was directed shall determine whether default has occurred by the 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. 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.CA., Tax Code, Section 33.01 will apply. Guidelines and C titeria Governing Tax Abatement For All Taxing Units Contained Within Lubbock Canty Page 2