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Home My WebLink AboutResolution - 2023-R0284 - Downtown Grant (Permittable) to Cavender Real Estate of Lbk II, LLC 1120 19th St.Resolution No. 2023-R0284 Item No. 5.9 June 13, 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 Permittable 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 the Cavender Real Estate of Lubbock II, LLC is hereby approved pursuant to Section 5 of the Amended and Restated Bylaws of the Corporation. Passed by the City Council on June 13, 2023 ATTEST: Co ney PaWy APPROVED AS TO CONTENT: Brianna Brown, Business Development Director APPROVED AS TO FORM: 0,/Y elli Leisure, Senior Assistant City Attorney ccdocs. RES Market Lubbock DT Permittable Grant Cavendar 5.24.23 Resolution No. 2023-RO284 RE 23-27 RESOLUTION APPROVING CAVENDER REAL ESTATE OF LUBBOCK H, LLC FOR BMW DOWNTOWN FACADE AND PERMITABLE 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, May 24, 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 II, LLC, who is renovating their property at 1120 19' Stret, which is 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. 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 franchises, the fourth generation of Cavender Auto 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. Their 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 shows they plan on continuing to be a downtown staple. The scope of fagade work will include the demolition of existing structures and parking lot totaling $50,000 in fagade expenses. The scope of permittable work will include concrete, structural steel, masonry, roofing, and framing totaling $8,161,571 in permittable expenses. The terms and conditions of such Economic Development Grant and Contract, other than the normal terms and conditions applicable to al l such Economic Development Grant and Contracts by the Corporation, are described generally as follows, to wit: Grant a Downtown Facade Grant for Cavender Real Estate of Lubbock 11, LLC, totaling $25,000 and a Permittable Grant totaling $100,000 at 1120 19`s 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, Ms. Melissa Collier. IT WAS RESOLVED that MLI offer and, if accepted by Recipient, enter into an Economic Grant and Contract with Cavender Real Estate of Lubbock II, LLC., for improvements to the property at 1120 191 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 .-.4 1120 19t" St. (BMW) (Cavender Real Estate of Lubbock II, LLC) TOTAL SCOPE OF WORK = $8,211,571 TOTAL GRANTS = $125,000 TOTAL FACADE SCOPE OF WORK = $50,000 FACADE GRANT = $25,000 TOTAL PERMITTABLE SCOPE OF WORK = $8,161,571 PERMITTABLE GRANT = $100,000 M A R K E T Downtown Grant Program Presented to MLI Board May 24, 2023 Project 112019th St. (FaVade & Permittable) Cavender Real Estate of Lubbock II, LLC, dba Cavender BMW of Lubbock, is renovating their property at 112019th 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 work will include the demolition of existing structures and parking lot totaling $50,000 in fagade expenses. The scope of permittable work will include concrete, structural steel, masonry, roofing, and framing totaling $8,161,571 in permittable expenses. The MLI Board is being asked to consider a Downtown Fagade Grant for Cavender Real Estate of Lubbock I1, LLC totaling $25,000 and a permittable grant totaling $100,000 at 112019th St. LUBBOCK. 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(a.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 Cavender Real Estate of Lubbock II, LLC Contact Jon Briggs Street Address 5778 Stemmons Ste 130 Title CFO City, State, Zip San Antonio, TX 78238 Phone 346-932-7104 Email 'onb cavenderinterests.com INFORMATION ABOUT THE PROJECT Property Ownership: Own C Lease ❑ service new Grant Type: Permittable 0 Lounge facilities. Fagade 0 Summary of Expenses (detailed bids attached) Projected MLI Approved Permittable $8,161,571 $100,000 Fagade $50,000 $25,000 TOTALI $8,211,571 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% 1 1 Kate Cavender Dawson 10% Claire Cavender McNabb 10% 1 Brooks Cavender 10% Is the firm registered with the Secretary of State's Office to do business in Texas? Yes 5r 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 FW Has the company or principals of the company had prior bankruptcies or lawsuits? No answered "Yes" to either of the above two MLI 6.10.22 Is the firm receiving tax revenue from any government agency? No ;r 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 Gerardi, City Director of Development bgerardi a@mylubbock.us , to determine: Does the scope of work meet downtown standards and guidelines? ❑ Are permits required for any aspect of the scope of work? ❑ Are public improvements required? ❑ Documents Required for Final Grant Application Copies of City permits, if applicable ❑ Detailed/Itemized Bids ❑ Before Pictures ❑ Copy of building's current certificate of occupancy (request at ❑ orr@mylubbock.us) Architectural Renderings (if applicable) ❑ Architectural Plans (if applicable) ❑ 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 1120 19th St. - BMW Before Pictures NORTH SIDE OF CURRENT FACILITY FEEDING OUT TO NEW OFFICES/SERVICE WESTSIDE OF NEW SHOP/SERVICE DRIVE LOCATION CURRENT SERVICE DRIVE WEST SERVICE DRIVE ENTRANCE 40 MALITZ CONSTRUCTION April 15, 2023 Stephen Cavender Cavender BMW of Lubbock Service Building Addition 5730 NW Loop 410 San Antonio, TX 78238 RE: Cavender BMW of Lubbock Service Building Addition Dear Stephen, Malitz Construction, Inc. is pleased to provide you with the proposal for the Service Building Addition and Renovation of your BMW Dealership in Lubbock, Texas. Pricing is based on the plans we received from Parkhill Architecture dated 12/08/2022, Addendum #1 dated 2/03/2023, Addendum #2 dated 2/08/2023, Addendum #3 dated 03/03/2023 and we are waiting on Addendum #4 to complete pricing. Please see below for detailed summary work and pricing as of now, final pricing still pending on receipt of Addendum #4. We will accomplish this work on the basis of cost of the work plus 10% for overhead and profit. Any savings will be split 70% to the owner and 30% to Malitz Construction, Inc. Service Building Addition (tax on material) $8,018,439.00 Showroom Renovation (renovation tax) $193,132.00 Total Cost of Project (pending receipt of Addendum #4) $8,211,571.00 We are currently working on Value Engineering list of cost savings to present to you for your consideration in the next week or so. The pricing and anticipated lead times for materials included in this proposal have been calculated based on current building material prices and availability. The market for building materials is considered volatile. Sudden price increases and / or delays in obtaining materials could occur. The Contractor will use its best efforts to obtain materials for prices as bid, but should there be an increase P 210.820.3604 8634 CROWNHILL BLVD SAN ANTONIO, TX 78209 MALITZCONSTRUCTION.COM in the price, or a delay in obtaining materials for this project, Owner agrees to pay the increased cost. Contractor shall notify Owner of any anticipated cost increase or delay at the earliest possible time. General o Contingency amount of $150,000 has been included per Parkhill Specifications o Sales tax is included o Building Permit allowance of $5,000 has been included o Wet Utility Fees, PEC & Gas Impact fees are not included o Builders risk insurance is included o Payment and performance bond is excluded o Pricing is contingent upon a start of construction within 30 days and Addendum #4 o All utilities required for work are to be provided and paid for by owner o All material testing and special inspections are included by allowance as shown below o All responsibility for the adequacy of the construction documents remains with the design team. In acceptance of construction documents, the contractor must rely on the work of design professionals o Malitz Construction, Inc. does not represent or warrant that the contract documents are in accordance with all applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities. We will report any nonconformity discovered or made known to us o Testing, removal, and encapsulation of hazardous materials are excluded o Low voltage, equipment, lockers, furniture, signage, air lines, cabling, security, music, mezzanine and graphics and etc. are to be furnished and installed by owner o No 3rd party commissioning has been included per the City of Lubbock o We have excluded a Key Control and a electronic Key Management System o We have priced seal coating asphalt in lieu of fog sealing of asphalt, seal coating per the asphalt companies is a better product for your use o We have included 2'-0 strip of city street asphalt repair along new curbs and approaches. If additional footages are required by the city, we will need to reprice at that time o Aluminum storefront material has been priced using Old Castle in lieu of Kawneer P 210.820.3604 8634 CROWNHILL BLVD SAN ANTONIO, TX 78209 MALITZCONSTRUCTION.COM Demolition o Demolition of existing CMU building and concrete parking cover o Removal of indicated asphalt and site concrete o Removal of indicated interiors per plans Site Work, Utilities & Asphalt Work o Replacement of indicated asphalt areas o Replacement of indicated of concrete sidewalks and approaches o Seal Coat and Restripe existing parking lot Concrete Work o Concrete foundation work per plan o Replacement of city sidewalk, curbs and approaches per plans o Working on value engineering items Structural Steel and Steel Erection per plans ❑ Masonry Work per plans o Working on value engineering items Waterproofing & Caulking Work per plans Roofing Work per plans Aluminum, Glass & Glazing Work per plans o Working on value engineering items ❑ Overhead Doors per plans o Working on value engineering items P 210.820.3604 8634 CROWNHILL BLVD SAN ANTONIO, TX 78209 MALITZCONSTRUCTION.COM Doors, Frames, & Hardware Work per plans o Working on value engineering items GWB & Acoustical Ceilings per plans o Working on value engineering items EIFS per plans o Working on value engineering items Millwork per plans Tile Work per plans Solid Surface Tops per plans Resilient and Rubber Base Flooring Work per plans Painting Work per plans o Working on value engineering items Sealed and Floor Coatings per plans Specialties (Toilet Room Accessories) Work per plans Appliance o New refrigerator and microwave for breakroom Fire protection Work Modification per plans o New sprinkler system in service area addition for now. Waiting on Addendum #4 for additional scope P 210.820.3604 8634 CROWNHILL BLVD SAN ANTONIO, TX 78209 MALITZCONSTRUCTION.COM Plumbing Work per plans plus a Includes temporary water and gas to existing building to keep in service o Working on valued engineering items ❑ Mechanical Work per plans plus o Working on valued engineering items ❑ Electrical Work per plans plus o New electrical service relocation o Working on valued engineering items iJ Landscape and Irrigation Work o Cap existing water well o Drill and Install New Water well o Reconnection irrigation system and adjacent systems like system previously was Thank you for the opportunity. We look forward to working with you on your fine project. Sincerely, Reid Loehman P 210.820.3604 8634 CROWNHILL BLVD SAN ANTONIO, TX 78209 MALITZCONSTRUCTION.COM � 'I I I r i y i I 7 I r � I r, - � IAaLt +TI ld f ' .v u tl I I Ilk1 I I G :{ i� fi '� ''1 1. it CAVENDER BMW SERVICE FACILIMY ! � � � � I � • � � LAVENDER BMW SERVICE FACILITY ! � ioona uoimor.na ! � a s* i t7' rnomo.uo wov.ao. � 1 S