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HomeMy WebLinkAboutResolution - 5362 - Agreement - Avenue H Properties LTD - Tax Abatement - 12_12_1996RESOLUTION NO.5362 Item #19 December 12,. 1996 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 an Agreement and all related documents by and between the City of Lubbock and Avenue H Properties, LTD., attached hereto and which 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 detol. Passed by the City Council this 12th day of Decembe ATTEST- -Ka a-mell, City Secretary APPROVED AS TO CONTENT: OUA'�= --96c'nNi Cheryl Btbck, Business Development APPROVED AS TO FORM: A4'e.ola va2" old Willard, Agsistant City A orney :dp:ccdocs\aveh.res November 6, 1996 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 12 th day of T)L., emh p r , 199-fi, AVENUE H PROPERTIES, LTD. CITY OF L BOCK A Municipal o ora n R ald E. Thompson Alex "Ty" Co4ke, PARTNER MAYOR PRO TEMPORE F3y01-1 Secretary CAB/a: AVEHPROP.DOC November 1, 1996 AVENUE H PROPERTIES LTD. 6 ATTEST: g� Ka a Darnell, City cil Chief of Staff/City Secretary APPROVED AS TO CONTENT: D/Yj Cheryl B ock Business Development APPROVED AS TO FORM: &40W arold Willard Assistant City Attorney RESOLUTION NO. 5362 Item #19 December 12, 1996 STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 12th day of December , 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. 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 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. Propea 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 a 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 8. 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 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. T,we 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 .12th 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 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. 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 City Manager P.O. Box 2000 Lubbock, TX 79457 AVENUE H PROPERTIES, LTD. Ronald E. Thompson P.O. Box 948 Lubbock, TX 79408 AVENUE H PROPERTIES, LTD. 5 ERHIBIT "A" ON DATE Wj ES kdTu SQ. FT. Guc OWNER Mur-1 11 IM1614*1113 Ln * STR. # YR. BUILT TOT. FL. AREA PARKING STR. ADDR STR. NAM USE CODE EST NUM FLOOR AREA RES. UNIT EST%DR EST USE CODE LAND AREA # OF FLOOR tl 11 I-114111-A 110THar-11 gi1PORTANT Arrwuw%L nv t mm THIS IS NOT A TAX BILL. LUE�@i)CK !2^+?ra, .1P�'t;n�,:.a, •,. ?Hip-. '-LEASE_ , ALL DATA t;.rj r1i � ...n..,rPrf r _ _ $ .. MPACT !AXES. tf �r C5/19/95 L? 13C2 AVE H UZ383980 THOMPSCN RONALO c" & L'JT}Ic4 A AVIT•.S :4Io T L,.oB3OCC ELK Z3: L 23-24 55m.4 20TH ST LU',!` 3CK TX 794C1-2C116 LANT-..7v. `.AI UE OAPROVEMEN75 - AAAR-�ET 'ERSCN.AL FC{.MOER-1, AL.E -NEPAL ;%'==;EST VALUE � U-3 CK CITY _ JLC N3_S3RD:�TT �4Yjt;OCK COUNTY i LAND .'AQKET•VALL-F .D °P _ JC7'b 't VALUE VALUE .'+EFAL d.T=:AEbT vALUE 'C-OLC24-30O THIS IS NOT A TAX STATEMENT PUEM ESTIMATED PROPERTY TAXES ooMar - PAY THIS YEAR'S ESTIMATED TAX RATE Tnis rate would rase the same total revenue the the unit raw ;ast yea: '6om property taxed ,,, m Tw last year A taA.ng Lin —'may NCtTadop, a rate trtat ae.Jd rase MORE revenue trcm the same grope -yes - iNLESS r publishes notice in 1 NOT= a newspace, teat z s cons,derirg an -cease ara hci�ir±g a oubk `'eating for taxpayers to discuss C+e increase. THIS YEAR'S ESTWTED TAXES: T-ese a--c.^:s are tt a !axes ..,c;: rvou,c pa; c ., : 'years or_ocsed vas-e O doe pimming bodies adopt the est!mateo tax rase 5%4n. . . ='r_ .•. .... _ • - .. ^-+a . .arEn 5hrt.. , �.' is --coca �- oh _ as.' PLEASE IF YOU ARE AM 65 OR OLDER : +' u ece•veo the $10,000 SCHOOL m4 exe - :,on c, ;our home. ycx SCHOOL READ >t2: '. .. nG: ,ic _ .^a'• .., r you 'B.c .e:.^e exe-pt.or .. _,a ji:u '.c-? itr,Drpved jGUf property >. •. ._ �^ .•t,r. .1.•..r; ,` ••. •rn iS inC0- +rr or It vn-i w• this vear's aroposed cr our t,roer-ry cc�itac: m� �,p;:5a ,iilce ^lme-,a7ery :t the c am~ ca-not be resolved, you 95 ._ -. ;;r. a .'cry_. - f.-=r ,he appraisal The ARS w0l begin hearings on You wdl be notified of the date. 6m and place your hearing is 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 C 1.3. a 153 Value of Facility, upon Completion of Project, of Personal Property, and Improve- ments not Subject to Abatement 5, COO 35, bo0 ( 1 a a5 Estimated Value of Eligible Improvements after Abatement Agree- ment Expires 55,100C IDo, Dock Part G - Variance: (a) Is a variance being sought under Section IV 9.(d) of the "Guidelines"? Yes No)� (b) If 'Yes", attach any supplementary information required. Section V - DECLARATION To the best of my knowledge, the above information is ain accurate description of project details. ompany Officia-r Sighature �: S c►�1. r n ed Name an ee U-F Company Official comtxapp Application for Commercial Tax Abatement in L%Ai=k. Texas • PAGE 4 in 52• L.. Q e 9' i• ' r� rr' So s' • 1802 a.c H 39 t 5 •' EXHIBIT "B" SECTION VII. Recapture: 1. In the event that any type of facility, (as defined in Section li, Subparagraphs 5, 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 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 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. 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 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. 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 form 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 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 Criteria Governing Tax Abatement For All Taxing Units Contained w8bin Lubbock County Page 2