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HomeMy WebLinkAboutOrdinance - 2024-O0146 - Texas Enterprise Zone Program, United Supermarkets, 5801 MLK Jr. Blvd - 11/12/2024First Reading November 5, 2024 Item No. 7.3 Second Reading November 12, 2024 Item No. 5.20 ORDINANCE No. 2024-00146 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS, ORDAINING THE CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE; NOMINATING UNITED SUPERMARKETS, L.L.C. TO THE OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM THROUGH THE ECONOMIC DEVELOPMENT BANK AS AN ENTERPRISE PROJECT; PROVIDING TAX INCENTIVES; DESIGNATING A LIAISON FOR COMMUNICATION WITH INTERESTED PARTIES; DIRECTING STAFF TO SUBMIT AN APPLICATION IN CONJUNCTION WITH NOMINATION; DESIGNATING THE EFFECTIVE PERIOD FOR THE ENTERPRISE PROJECT; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION. WHEREAS, the City Council (the "Council") of the City of Lubbock, Texas (the "City") desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the city and to provide employment to residents of such area; and WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act (the "Act"), United Supermarkets, L.L.C. has applied to the City for designation as an enterprise project; and WHEREAS, the project or activity is not located in an area designated as an enterprise zone; and WHEREAS, the City finds that United Supermarkets, L.L.C. meets the criteria for tax relief and other incentives adopted by the City on the grounds that it will be located at a qualified business site, will create a higher level of employment, economic activity and stability; and WHEREAS, the City finds that it is in full compliance with Chapter 2303, Texas Government Code prior to nomination of an eligible business; and WHEREAS, a public hearing to consider this ordinance was held by the City Council of the City of Lubbock on November 5, 2024; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: Section 1: THAT the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. Section 2: THAT the City nominates United Supermarkets, L.L.C. for enterprise project status. Section 3: THAT the following local incentives, at the election of the governing body, are or will be made available: i) Tax Abatement - The City may abate taxes on industrial projects on the increase in value of real property improvements and eligible personal property jurisdiction wide. The level of abatement shall be based upon the extent to which the business receiving the abatement creates jobs for qualified employees, in accordance with the City of Lubbock Industrial Tax Abatement Policy, and with qualified employees being defined by the Act. ii) Tax Increment Financing - Four Tax Increment Financing Reinvestment Zones have been established within the City. iii) Freeport Exemption - Freeport goods, as described in Art. 8 Sec. 1-j(a) of the Texas Constitution and Section 11.25 of the Texas Tax Code, are tax exempt pursuant to City of Lubbock Resolution No. 6142, passed December 18, 1998. iv) Economic Development Sales Tax (4A) Contribution — The City of Lubbock's 4A Contribution funds the Lubbock Economic Development Alliance (LEDA). v) Chapter 380 — Through Local Government Code Chapter 380 the City of Lubbock provides property tax rebates or grants to meet the qualifications of the City's Chapter 380 guidelines. vi) Other Tax Deferrals, Tax Refunds or Tax Incentives — The City of Lubbock may provide other tax deferrals, refunds or incentives on as needed basis. vii) Zoning ChangesNariances A) Zoning Ordinances of the City may be amended in such a manner as to promote economic development. B) Building Code Exemptions - The Zoning Board of Adjustment may grant a variance or a special exception for a particular property. viii) Capital Improvements in Water and Sewer Facilities - As part of its ongoing capital improvements program, the City replaces and upgrades its water and sewer infrastructure as required. ix) Creation or improvement of parks - The City has an ongoing park improvement project relating to park amenities. x) Road Repair - Annual maintenance and repair of roads citywide is provided through an ongoing capital improvements program. xi) Low -interest loans for housing rehabilitation or new construction — The City has a Community Development Program funded from Community Development Block Grants and the HOME program for granting low interest loans for housing rehabilitation or new construction. xii) Promotion and Marketing Services - Lubbock Economic Development Alliance (LEDA), the City's 4A economic development sales tax corporation, and Market Lubbock Economic Development Corporation (Market Lubbock), which is funded almost entirely by the City of Lubbock, provide marketing and promotion services for the City to targeted businesses. xiii) Customized Job Training - LEDA, the 4A Economic Development Corporation for Lubbock, and Market Lubbock work with new and existing businesses, as part of their programs, to provide job training and job creation incentives on a case -by - case basis. A) Retraining Program — programs offered may include retraining of existing employees. B) Literacy and Employment Skills Program — training programs may include and literacy and employment skills training. C) Vocational Education — programs may include vocation skills as need by employer. xiv) Job Training and Employment Services - The City participates in Workforce Solutions South Plains, the local workforce development board, to provide training, retraining, and employment services for local employers. xv) Streamlined Permitting/One-Stop Permitting - The City, through its new online permitting and one stop shop on the I st floor of the new Citizens Tower, provides streamlined permitting. xvi) Improved Police and/or Fire Protection- The City has constructed new community police substations as a part of the new community policing model that is a part of the Public Safety Improvements Project which constructed a new police headquarters, three community substations, crime lab/property room, and municipal court. xvii) Community Crime Prevention Programs - The City of Lubbock Police Department have developed crime prevention programs such as the SafeCam program. This program is to deter crime and promote public safety through collaboration between officers and the community they serve. xviii) Special Public Transportation Routes and Reduced Fares - Lubbock may offer specialized public transportation routes through its Citibus system, which includes routes designed to serve key areas and accommodate various community needs. xix) Low -Interest Loans for Business - The City of Lubbock uses programs like the Lubbock Economic Development Alliance (LEDA) and the Bounce Back program to offer low -interest loans aimed at fostering business growth and job creation. These loans support local businesses by providing affordable financing for expansion and development projects. xx) Inspection Fee Exemption - The City may make a refund of building permit fees for businesses in accordance with the City of Lubbock Building Permit Fee Refund Policy. xxi) Provision of Publicly Owned Land for Development Purposes - The City may under appropriate circumstances sell real property owned by the municipality and located in the enterprise zone in accordance with Texas Local Government Code Section 2303.513. Section 4: THAT the City of Lubbock City Council directs and designates its Mayor or his designee, as the City's liaison to communicate and negotiate with the Office of the Governor, Economic Development and Tourism (the "EDT") through the Economic Development Bank (the "Bank") for enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. Section 5: THAT the City of Lubbock City Council directs the Mayor and/or his or her designee, to complete and submit an application to the Bank, nominating United Supermarkets, L.L.C. for designation as an enterprise project. Section 6: THAT the City finds that United Supermarkets, L.L.C. meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: (a.) United Supermarkets, L.L.C. is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site located outside of an enterprise zone in the governing body's jurisdiction and at least thirty-five percent (35%) of the business' new employees will be residents of an Enterprise Zone, economically disadvantaged individuals, or veterans; and (b.) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities in the area; and (c.) The designation of United Supermarkets, L.L.C. as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. Section 7: THAT the enterprise project shall take effect on the date of designation of the enterprise project by EDT and terminate five (5) years after the date of designation. Section 8: THAT should any paragraph, section, clause, phrase or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of the Ordinance shall not be affected thereby. Section 9: THAT the City Secretary of the City of Lubbock, Texas, is hereby authorized and directed to cause publication of the descriptive caption of this Ordinance as an alternative means of publication provided by law. Section 10: THAT the ordinance shall take effect from and after its passage as the law and charter in such case provides. AND IT IS SO ORDERED PASSED by the City Council on first reading on PASSED by the City Council on second ATTEST: - 41 & Y C rtney Paz, City Secretary APPROVED AS TO CONTENT: Bill H on, Depu*yager APPROVED AS TO FORM: - 0&-hl(4u� Kelli Leisure, Senior Assistant City Attorney November 5 , 2024. on November 12 2024. MARK W. MCBRAYE . MAYOR Cedocs:HOrd.United Supermarkets Enterprise Project nomination 10.30.24