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Home My WebLink AboutResolution - 2023-R0117 - Downtown Façade Grant to Cavender Real EstateResolution No. 2023-RO117 Item No. 6.4 March 7, 2023 RESOLUTION WHEREAS, pursuant to Article IV, Section 5 of the Amended and Restated Bylaws of the Market Lubbock Economic Development Corporation (the "Corporation"), the City Council of the City of Lubbock (the "City Council"), as the Corporation's authorizing unit, has the authority to approve all programs and expenditures of the Corporation; and WHEREAS, the City Council finds that it is in the best interest of the public to approve the program or expenditure, as proposed to the City Council by the Corporation, as set forth in Exhibit "A" attached hereto and incorporated herein by reference; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Downtown Fagade Grant program or expenditure of the Corporation, in the amount set forth in Exhibit "A" attached hereto and incorporated herein by reference, to be provided to Cavender Real Estate of Lubbock III, LLC, is hereby approved pursuant to Section 5 of the Amended and Restated Bylaws of the Corporation. Passed by the City Council on ATTEST: -A��,7t Courtney Paz, Interim City Se APPROVED AS TO CON ENT: Brianna Brown, Business bevelopment Director APPROVED AS TO FORM: Leisure, Senior Assistant City Attorney ccdocs/RES. Market Lubbock DT Facade Expenditure Cavender 2.20.23 March 7, 2023 RE 23-12 RESOLUTION APPROVING CAVENDER REAL ESTATE OF LUBBOCK III, LLC, DBA CAVENDER LEXUS OF LUBBOCK AT 1302 19'h STREET DOWNTOWN FACADE AND PERMTTABLE GRANT THE STATE OF TEXAS COUNTY OF LUBBOCK At a regular meeting of the Board of Directors of MARKET LUBBOCK ECONOMIC DEVELOPMENT CORPORATION, INC., a Texas nonprofit corporation (MLI), on Wednesday, February 22, 2023, held in conformity with the bylaws, after due notice as therein provided, a quorum being present and acting, the following resolution was unanimously adopted: WHEREAS, MLI presented to members of the Board the proposal of a possible Economic Development Grant and Contract to Cavender Real Estate of Lubbock III, LLC, who is renovating their property at 1302 191 Street, which is located in the Downtown TIF. The Cavender Auto Family is a family -owned organization founded in 1939 in San Antonio, Texas by the Cavender family of San Antonio. It expanded with the third generation of the Cavender family to Saturn, Toyota, Audi, and Fiat dealerships in San Antonio metro market. Today, with many additional acquisitions of other automotive dealership franchises, the fourth generation of the Cavender Auto family is following in the predecessor's footsteps. Joining the Cavender Family, the group employs non -family member partners, operators, and executives committed to continuing the ideals and traditions that started more than 80 years ago. The Cavender Auto Family currently operates 17 dealerships and employs 2,178 178 associates. Their organizations solely resided in Texas until 2022, when five dealerships in Oklahoma were purchased in Oklahoma City and Norman areas. For the year 2022, the Cavender Auto Family retailed over 37,000 units and produced record revenue of over $1.9 Billion Dollars. Their longevity in the auto industry and store growth demonstrates their dedication to serving automobile customers. This is also very present in the Lubbock dealership upgrades that are in development. The projects being undertaken show Cavender's commitment to contributing to the revitalization of downtown Lubbock and also shows they plan on continuing to be a staple to the downtown business district. The scope of the facade and permittable work will include the complete renovation of the interior and exterior of the building and parking lot totaling $2,419,685 in expenses. The terms and conditions of such Economic Development Grant and Contract, other than the normal terms and conditions applicable to all such Economic Development Grant and Contracts by the Corporation, are described generally as follows, to wit: Grant Cavender Real Estate of Lubbock III, LLC a Downtown Facade Grant for $25,000 and a Permittable Grant totaling $100,000 at 1302 191h Street, which is in the Downtown TIF, once proof of payment has been submitted. WHEREAS, The Board of Directors of MLI finds that an Economic Development Grant and Contract offering the incentive for providing assistance for renovations to their property, meet and comply with the qualifications and purposes of the Corporation for the granting of such Economic Development Grants and Contracts. Upon Motion by Director, Dr. John Opperman, and Seconded by Director, Mr. Blake Womble. IT WAS RESOLVED that MLI offer and, if accepted by Recipient, enter into an Economic Grant and Contract with Cavender Real Estate of Lubbock III, LLC, dba Cavender Lexus of Lubbock for improvements to the property at 1302191 Street, Lubbock, Texas. This Economic Development Grant and Contract will be on the normal terms and conditions of such Downtown Grant Program and Contract offered by MLI to existing businesses and business prospects and authorize the CEO to enter into and execute all documents related to the Economic Grant and Contract. John Osborne, President & CEO Linda Davis, Secretary MARKET LUBBOCK, INC. — DOWNTOWN GRANT PROGRAM 1302 19t" St. (Lexus) (Cavender Real Estate of Lubbock III, LLC) TOTAL SCOPE OF WORK = $2,419,685 TOTAL GRANTS = $125,000 TOTAL FACADE SCOPE OF WORK = $50,000 FACADE GRANT = $25,000 TOTAL PERMITTABLE SCOPE OF WORK = $2,369,685 PERMITTABLE GRANT = $100,000 M A R K E T Downtown Grant Program Presented to MLI Board February 22, 2023 Project 130219th St. (FaVade & Permittable) Cavender Real Estate of Lubbock III, LLC, dba Cavender Lexus of Lubbock, is renovating their property at 1302 19th St., located in the Downtown TIF. The Cavender Auto Family is a family -owned organization founded in 1939 in San Antonio, TX by the Cavender Family of San Antonio, TX. The family's auto group started with an Oldsmobile dealership in San Antonio, TX. It expanded with the third generation of the Cavender family to Saturn, Toyota, Audi, and Fiat dealerships in the San Antonio metro market. Today, with many additional acquisitions of other automotive dealership franchises, the fourth generation of the Cavender Auto family is following in their predecessors' footsteps. Joining the Cavender Family, the group employs non -family member partners, operators, and executives committed to continuing the ideals and traditions that started more than 80 years ago. The Cavender Auto Family currently operates 17 dealerships and employs 2,178 associates. Our organization solely resided in Texas until 2022, when five dealerships in Oklahoma were purchased in the Oklahoma City and Norman areas. For the year 2022, The Cavender Auto Family retailed over 37,000 units and produced record revenue of over $1.9 Billion Dollars. Our longevity in the auto industry and store growth demonstrates our dedication to serving automobile customers. This is also very present in the Lubbock dealership upgrades that are in development. The projects being undertaken show Cavender's commitment to contributing to the revitalization of downtown Lubbock and also shows they plan on continuing to be a staple to the downtown business district The scope of fagade and permittable work will include the complete renovation of the interior and exterior of the building and parking lot totaling $2,419,685 in expenses. The MLI Board is being asked to consider a Downtown Fagade Grant for Cavender Real Estate of Lubbock III, LLC totaling $25,000 and a Permittable Grant totaling $100,000 at 130219th St. B LUBOCK. Downtown Grant - Application The information requested on this form will be used by Market Lubbock, Inc. for analysis of your project. MLI CONTACT INFORMATION Jorge Quirino - Director of Downtown & Special Project: Phone: 806.749.4500 Market Lubbock, Inc. 1500 Broadway, Sixth Floor, Lubbock, TX 79401 Email: lorge(o.marketlubbock.org Date Initial Application Submitted (Due prior to start of construction or permits assigned) 07/06/22 Projected Project Start Date 01/01/23 Project Property Address Property LCAD R# GENERAL INFORMATION Company Name ICavender Real Estate of Lubbock III, LLC Contact Jon Briggs Street Address 15778 Stemmons, Ste. 130 Title CFO City, State, Zip I San Antonio, TX 78238 Phone 346-932-7104 Email 'onb cavenderinterests.com INFORMATION ABOUT THE PROJECT Property Ownership: Own 2] Lease ❑ Grant Type: Permittable M Facade 12 of Lubbock. Summary of Expenses (detailed bids attached) Projected MLI Approved Facade $50,000 $25,000 Permittable $2,369,685 $100,000 TOTALI $2,419,685 1 $125,000 Final bids will be used to calculate the project cost and grant amount COMPANY BACKGROUND List any person or entity that has at least 5% ownership in the Applicant Company: Name Percent Name Percent Stephen B. Cavender 30% lCourtney Smith 10% Richard H. Cavender 30% Kate Cavender Dawson 10% Clair Cavender McNab 10% Brooks Cavender 10% Is the firm registered with the Secretary of State's Office to do business in Texas? Yes sr Are you in good standing with the State of Texas? Yes If you answered "No" to either of the above two questions, please explain Is the firm and/or principals delinquent on any federal, state or local tax obligations? No G Has the company or principals of the company had prior bankruptcies or lawsuits? No MLI 6.10.22 answered "Yes" to either of the above two Is the firm receiving tax revenue from any government agency? No s APPLICANT'S CHECKLIST: Initial application received by MLI prior to the start of construction and/or before permits are assigned ❑ All remaining documents must be received and an application packet presented to the MLI Board no ❑ more than three months after the initial application is received by MLI. Contact Brianna Gerard!, City Director of Development bgerardi@mylubbock.us , to determine: Does the scope of work meet downtown standards and guidelines? [D Are permits required for any aspect of the scope of work? 0 Are public improvements required? ❑ Documents Required for Final Grant Application Copies of City permits, if applicable 21 Detailed/Itemized Bids P� Before Pictures 0 Copy of building's current certificate of occupancy (request at ❑ orr@mylubbock.us) Architectural Renderings (if applicable) 0 Architectural Plans (if applicable) 21 After Completion of Construction Certificate of Occupancy or Similar City Document Approving ❑ Completion (Applicant responsible for final scope of work matching approved scope) Proof of Payment: PAID Invoices (must reference the approved project) ❑ Processed Checks, Bank or Credit Card Statements ❑ matching PAID invoices (legible copies) Signature (not required for electronic submittals): Jon Briggs per email Date: 7/6/2022 MLI 6.10.22 1302 19t" St. (Lexus) — Before Pictures Showroom 101 demo all MW demo customer lounge MW Remove counter top and replace in customer lounge 126 Delivery Bay 110 remove existing counter tops & replace. Remove clouds, replace and adjust sprinkler heads and HVAC Showroom 101 demo millwork inset No Text Lavender Lexus of Lubbock 1302 19th Street Lubbock, TX 79401 �. ,ZM=, �x. ��r \I { r _; Cavender Lexus of Lubbock ��FL, .t 1 ";si[ '302 '9thStreet �r� i I 1 14Lubbock TX 79401 --Ol ----0 ---{a -----O ---- o r " E91 [lavender Lexus of Lubbock ..p6tt }} s 0 9°agP[, 302 "9th Street Lubbock. 7X 79401 I �� Malitz Construction, Inc. Schedule of Values for Cavender Lexus of Lubbock Reimage 10/20/2022 Description Contract Demolition $ 49,900 Striping $ 3,000 Concrete $ 82,305 Structural Steel and Erection $ 40,040 Water Proofing and Sealants $ 29,609 Roofing $ 40,470 Mirrors $ 1,754 ACM Panels $ 185,594 GWB and Ceilings $ 357,847 Millwork, Solidsurface and Tile $ 68,799 Resilent Flooring $ 12,767 Paint and Wall Covering $ 102,184 Specialties and Appliances $ 17,018 Fire Protection $ 11,864 HVAC and Plumbing $ 80,406 Electrical $ 622,611 Landscape $ 30,000 General Conditions $ 278,460 Insurance $ 9,817 OH & P $ 209,009 Renovation Tax $ 184,411 Permit $ 1,819 Total $ 2,419,685