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HomeMy WebLinkAboutOrdinance - 9591-1993 - Two Areas As Enterprise Zone And Reinvestment Zone. - 02/11/1993First Reading February 11, 1993 Item 1125 Second Reading February 18, 1993 Item 113 ORDINANCE NO. 9591 ----- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS, NOMINATING TWO AREAS AS ENTERPRISE ZONES PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT (TEXAS CIVIL STATUTES, ART. 5190.7); PROVIDING TAX INCENTIVES; DESIGNATING AN AUTHORIZED REPRESENTATIVE TO ACT IN ALL MATTERS PERTAINING TO THE NOMINATION AND DESIGNATION OF THE AREA DESCRIBED HEREIN AS AN ENTERPRISE ZONE AND REINVESTMENT ZONE (TEXAS TAX CODE, CHAP. 312); AND FURTHER DESIGNATING A LIAISON TO ACT ON ALL MATTERS PERTAINING TO THE ENTERPRISE ZONE ACT ONCE DESIGNATED BY THE TEXAS DEPARTMENT OF COMMERCE. WHEREAS, the C1ty Council of the City of Lubbock, Texas desires to create the proper economic and social environment to induce investment of ~rivate resources in productive business enterprises located in severely distressed areas of the city and to provide employment to residents of such areas; WHEREAS, certain conditions exist in such areas which represent a threat to the health, safety, and welfare of the people of such areas; and WHEREAS, it 1s necessary and in the best interest of the City to nominate two such areas as an enterprise zones pursuant to the Texas Enterprise Zone Act (Texas Civil Statutes, Article 5190.7, the "ACT"); NOWt THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, EXAS: SECTION 1. THAT the City of Lubbock hereby nominates the two areas indicated on the maps attached hereto as Exhibit A and further described below as enterprise zones in accordance with the Act: Description of LUBBOCK SOUTH ENTERPRISE ZONE Beginning at the intersection of 19th Street and Avenue H; THENCE east along 19th Street and East 19th Street to its intersection with the East City Limits, a point 150 feet east of the center line of Olive Avenue; THENCE south along the City Limits a line parallel to and 150 feet east of the center line of Olive Avenue to its intersection with East 66th Street; THENCE east along East 66th Street to its intersection with Wood Avenue; THENCE south along Wood Avenue to its intersection with East 82nd Street; THENCE west along East 82nd Street to its intersection with the southeast City Limits; THENCE southeast along the City Limits to its intersection with the City Limits; THENCE southwest along the City Limits to its intersection with the City Limits; THENCE northwest along the City limits to its intersection with Peach Avenue; THENCE east along a line parallel to and 150 feet south of the center line of 82nd Street to its intersection with Avenue H; THENCE north along Avenue H to its intersection Avenue Q South Drive; THENCE northwest along Avenue Q South Drive to its intersection with Avenue Q; THENCE north along Avenue Q to its intersection with 32nd Street; THENCE east along 32nd Street to its intersection with Avenue P; THENCE north along Avenue P to its intersection with 30th Street; THENCE east along 30th Street to its intersection with Avenue H; . THENCE north along Avenue H to the point of beginning. Lubbock South Enterprise Zone contains a~proximately 15.7 square miles excluding 0.7 square miles for Interstate 27 and Loop 289 right -of -way and Canyon Lakes #6 waterway. Lubbock South Enterprise Zone consists of 1980 Lubbock County Census Tracts; 12.011 12.021 block groups 1, 2 and 3 of 131 24l and 25 and part of bock 3lu of Tract 102 and part of blocK 90~ of Tract 105.01. Description of LUBBOCK NORTH ENTERPRISE ZONE Beginning at the intersection of 19th Street and University Avenue; THENCE north along University Avenue to its intersection with 4th Street; THENCE west along 4th Street to its intersection with Detroit Avenue; THENCE north along Detroit and North Detroit Avenue to its intersection with Baylor Street; THENCE west along Baylor Street to its intersection with North Indiana Avenue; THENCE north along North Indiana Avenue to its intersection with Erskine Street; - 2 - THENCE west along Erskine Street to its intersection with North Slide Road; THENCE north along North Slide Road to its intersection with Marshall Street; THENCE east along Marshall Street to its intersection with North Utica Avenue; THENCE south along North Utica Avenue to its intersection with Erskine Street; THENCE east along Erskine Street to its intersection with North Quaker Avenue; THENCE north along North Quaker Avenue to its intersection with Ursuline Street; THENCE east along Ursuline Street to its intersection with North Indiana Avenue; THENCE north along North Indiana Avenue to its intersection with Kent Street; THENCE east along Kent Street to its intersection with North University Avenue; THENCE north along North University Avenue to its intersection with Regis Street; THENCE east along Regis Street to its intersection with AT & SF railroad; THENCE south along the AT & SF to its intersection with North Loop 289; THENCE east along North Loop 289 to its intersection with North Avenue M; THENCE north along North Avenue M to its intersection with Wabash Street; THENCE east along Wabash Street to its intersection with Mesa Road; THENCE north along Mesa Road to its intersection with Yucca Lane; THENCE east along Yucca Lane to its intersection with North Avenue A; . THENCE south along Avenue A to its intersection with East Queens Street; THENCE east along East Queens Street to its intersection with North Quirt Avenue; THENCE north along North Quirt Avenue to its intersection with East Bluefield Street; - 3 - THENCE east along East Bluefield Street to its intersection with North Guava Avenue; THENCE north along North Guava Avenue to its intersection with East Independence Street; thence west along East Independence Street to its intersection with North Fig Avenue; THENCE north along North Fig Avenue to its intersection with East Lawrence Street; THENCE west along East Lawrence Street to its intersection with North David Avenue; THENCE south along North David Avenue to its intersection with East Jamestown Street; THENCE east along East Jamestown Street to its intersection with North Zenith Avenue; THENCE south along North Zenith Avenue to its intersection with East Independence Street; THENCE east along East Independence Street to its intersection with North Walnut Avenue; THENCE south along North Walnut Avenue to its intersection with East Bluefield Street; THENCE west along East Bluefield Street to its intersection with North Quirt Avenue; . THENCE south along North Quirt Avenue to its intersection with East Ursuline Street; THENCE east along East Ursuline Street to its intersection with North Guava Avenue; THENCE south along North Guava to its intersection with East Loop 289; THENCE southeast along Loop 289 to its intersection with East 2nd Street; THENCE east along East 2nd Street to its intersection with the East City Limits, a point 150 feet east of the centerline of Olive Avenue; THENCE south along a line parallel to and 150 feet east of the centerline of Olive Avenue to its intersection with East 19th Street; THENCE east along East 19th Street to its intersection with Quirt Avenue; THENCE north along Quirt Avenue. to its intersection with Idalou Road; , THENCE northwest along the Idalou Highway to its intersection with Vanda Avenue; - 4 - THENCE north along Vanda Avenue to its intersection with East 14th Street; THENCE west along East 14th Street to its intersection with Redbud Avenue; THENCE north along Redbud Avenue to its intersection with East 13th Street; THENCE west along East 13th Street; to its intersection with Oak Avenue; THENCE north along Oak Avenue to its intersection with East Broadway; THENCE west along East Broadway to its intersection with Yellowhouse Draw; THENCE south along Yellowhouse draw to its intersection with East 19th Street; THENCE west along East 19th and 19th Street to the point of beginning. SAVE AND EXCEPT; TRACT 1: BEGINNING at the intersection of 4th Street and the Amarillo Road; THENCE west along 4th Street to its intersection with Avenue K; THENCE north along Avenue K to its intersection with 1st Street; THENCE east along 1st Street to its intersection with Avenue J; THENCE south along Avenue J to its intersection with 1st Place; THENCE east along 1st Place to its intersection with Avenue H; THENCE north along North Avenue H to its intersection with Amarillo Road; THENCE south along the Amarillo Road to the point of beginning. TRACT 2: BEGINNING at the intersection of Avenue Q and 3rd Street; THENCE west along 3rd Street to its intersection with Avenue U; THENCE north along Avenue U to its intersection with 2nd Street; -5 - THENCE west along 2nd Street to its intersection with University Avenue; THENCE north along University and North University Avenue to its intersection with Cornell Street; THENCE west along Cornell Street to its intersection with North Detroit Avenue; THENCE north along North Detroit Avenue to its intersection with Erskine Street; THENCE west along Erskine Street to its intersection with to its intersection with North Flint Avenue; THENCE north along North Flint Avenue to its intersection with Grinnell Street; THENCE west along Grinnell Street to its intersection with North Indiana Avenue; THENCE north along North Indian Avenue to its intersection with the AT & SF railroad; THENCE south along the AT & SF railroad to its intersection with Avenue Q; THENCE south along Avenue Q to the point of beginning. Lubbock North Enterprise Zone contains ap~roximately 16.8 square miles excluding 1.21 square miles for Interstate 27 and Loop 289 right -of -way and Canyon Lakes #1 waterway. Lubbock North Enterprise Zone consists of 1980 Lubbock County · Census Tracts: block group 3 and block 416 and 420 of Tract l; block groups 1, 2, 3, 4, 5, and 9 of Tract 2.01; block group 2 of Tract 2.02· block grouQs 2 3, 6, 7, and 9 of Tract 3; part of block 901 tract 4.01; Traci 6.0li· Tract 6.02; Tract 7; block groups 1, 2, 3, 5, 6, and 7 of Trac 8; Tract 9i block groups 1, 2, 4 and 5 of Tract 10; block groups 2 3, 4 and 9 of Tract Ii; blocks 116l 117l 118l ll9l 1201 121 1 122 1 124l 125, 126, 127, 128, 129, 30t 31, 32, 33, 341 35, 36, 37, 139, 140, 141, 92l(part1, and 922 of Tract 02. SECTION 2. THAT the City Council finds the zone area meets the qualification of the Act. SECTION 3. THAT the City Council will provide certain tax incentives applicable to business enterprises in the zone which are not applicable throughout the City as indicated on Exhibit B attached hereto and made a part hereof for all purposes. SECTION 4. THAT the areas described in this ordinance are designated as enterprise zones and reinvestment zones, subject to the approval of the Texas Department of Commerce. - 6 - SECTION 5. THAT the City Council directs and designates the City of Lubbock Mayor as the City's authorized representative to act in all matters pertaining to the nomination and designation of the areas described herein as enterprises zones and reinvestment zones. SECTION 6. THAT the City Council further directs and designates the City of Lubbock City Manager, as liaison for comunication with the Department to oversee zone activities and communication with qualified businesses. SECTION 7. THAT a public hearing to consider this ordinance was held by the City Council on February 11, 1993. SECTION 8. THAT this ordinance shall take effect from and after its passage as the law and charter in such cases provides. AND IT IS SO ORDERED. Passed by the City Council on first reading this February , 1993. Passed by the City Council on February , 1993. ATTEST: ···;§a~~ 'S2QQQM-<_ Sa I ly 113 Abbe, Act mg Clty Secretary APPROVED AS TO CONTENT: DGV:da/AGENDA-D3/ENTRPSZN.ord February 1, 1993 -7 - 11th day of Tax Abatement Residential LOCAL INCENTIVES LUBBOCK ENTERPRISE ZONE(S) EXHIBITB Ad Valorem taxes on improvements, by new construction or modernization of residential projects, will be eligible to be abated for a period of five (5) years at 100% per year. Abatement will be considered if the individual project meets criteria and guidelines, established for this use by the affected jurisdiction(s). Criteria and guidelines to be adopted will include specific, designated, geographic locations within the zone(s) whe_re this incentive will apply. (Available only in Enterprise Zones) Commercial Ad Valorem taxes on improvements, by new construction or modernization of retail, service and office related projects, will be eligible to be abated for a period of five (5) years at 100% per year. Abatement will be considered if the individual project meets criteria and guidelines, to be established for this use by the affected jurisdiction(s). (Available only in Enterprise Zones) Industrial Ad V alorem taxes on industrial improvements will be considered under criteria and guidelines adopted in 1991 by all taxing jurisdictions of Lubbock County and currently being reviewed for re-adoption under the requirements of state law. (CurrenOy Exists) EXHIBITB Infrastructure Abatement for Businesses Businesses in the designated zones may negotiate with the City's Utilities for the abatement of cost of extension and/or improvements of water and sewer lines and/or street improvements which are necessary for the applicant to conduct business. (Currently Exists) Local Sales and Use Tax Refunds to Qualified Businesses The City and County of Lubbock will refund local sales and use taxes paid by qualified businesses, which meet guidelines to be established, at the rate of 100% during the first year of operation in the zone and 50% for the second and third years of operation in the zone. The tax will be refunded based on the qualified business' local purchase of building materials, office supplies and furnishings for its facilities. (Available only in Enterprise Zones) Refunds of Sales Taxes for Creation of Jobs for Qualified Employees The City and County of Lubbock, jointly and proportionately, will provide $250, refunded from local sales and use taxes, for each qualified new employee hired within the designated zone(s) during a company's first year of operation if the company meets guidelines established for this use. The maximum refund for a qualified business will be $2,500. Businesses will be required to certify eligibility for these refunds through employment records and audits, if desired by the City. (Available only in Enterprise Zones) EXHIBITB Refund of Building Permit Fees The City of Lubbock will refund fees usually charged for building permits, if the business in the designated zones qualifies under guidelines to be established and retains at least 10 qualified employees. Refund of fees will be made upon the company's achievement of qualification, but no longer than three years from the date of initiation of the company's operation in the zone(s). (Available only in Enterprise Zones) Tax Increment Financing This method of financing zone projects may be used by qualified businesses in the existing TIF District. This District may be expanded within the zone at a later date. (Currently Exists) Job Training The Lubbock-Garza County JTPA will provide On-the-Job Training services to qualified firms in the zones. Also, the organization will provide job credits to users of its services. (Currently Exists) RECEIVED July 23, 1993 STATE OF TEXAS DEPARTMENT OF COMMERCE " The Honorable David R. Langston Mayor, City of Lubbock Post Office Box 2000 Lubbock., Texas 79457 Dear Mayor Langston: JUL 2 9 1993 MAYOR'S OFFICE Enclosed is an original of the executed negotiated agreement for the City of Lubbock North Enterprise Zone and the City of Lubbock South Enterprise Zone. We have retained an original of each agreement for our files. Your official enterprise zone numbers are EZ131-060793-LN and EZ132-060793-LS, respectively. Please use this number on future reports or documents filed with regard to your enterprise zones. With a copy of this letter an Enterprise Zone Workbook is being sent to Bob N. Cass as the designated liaison for the City of Lubbock North Enterprise Zone and the City of Lubbock South Enterprise Zone, for use in administering your zones. Let me know when we may be of further assistance. Sincerely, ~~"J,8c_../ Camille Berry, CED 0 Director Texas Enterprise Zone Program CB:bc Enclosure cc: Bob N. Cass Post Office Box 12728 • Austin, Texas 78711-2728 • 512/472-5059 TDD: 512/320-9698 • Relay Texas Line: 800/735-2988 AGREEMENT FOR DESIGNATION OF AN ENTERPRISE ZONE STATE OF TEXAS § COUNTY OF TRAVIS § THIS AGREEMENT is made and entered into this 7th day of June, 1993, by and between the Texas Department of Commerce, an agency of the State of Texas, hereinafter referred to as "Department" and the City of Lubbock, Texas hereinafter referred to as "Unit." WITNESS ETH: WHEREAS, the public policy of this state is to provide the people of this state with the necessary means to assist communities, their residents, and the private sector to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas and to provide employment to residents of those areas; WHEREAS, the objective of the Texas Enterprise Zone Act, Texas Civil Statutes, Article 5190.7 (the Act) is to provide appropriate investments, tax benefits, and regulatory relief to encourage the business community to commit its financial participation (Sec. 2(b)); WHEREAS, the revitalization of enterprise zones through the concerted efforts of government and private sector is declared a public purpose; WHEREAS, Unit requested Department to designate an area within its jurisdiction as an enterprise zone, which is described in Exhibit A and Exhibit B attached hereto; WHEREAS, Unit filed its application on February 19, 1993, with Department for designation of an enterprise zone pursuant to the Act for the purpose of revitalizing the area described herein; WHEREAS, the governing body of Unit adopted an ordinance on February 18, 1993 and amended the ordinance May 13, 1993, following a public hearing, to nominate the area and made the necessary finding that the zone area meets the criteria for designation as an enterprise zone as set forth in the Act; WHEREAS, the Executive Director acting on behalf of Department authorized and approved the designation of the enterprise zone on June 7, 1993, under the terms and conditions of the Act and those set forth herein; WHEREAS, Unit has entered or will enter into agreements with Qualified Businesses, as defined in the Act and as further defined in its nominating ordinance, in which the Qualified Businesses agree to maintain their status as Qua1ified Businesses in order to benefit from the local incentives available and in which Unit provides for certain local incentives, pursuant to the terms of the Act; NOW THEREFORE, in consideration of the respective representations and agreements herein contained, the parties hereto agree as follows: Page lof5 1. REPRESENTATIONS. Department and Unit represent and warrant, as applicable, the following: (a) Findine:s. Based upon the representations made by Unit, Department hereby reaffirms previous findings that the zone area meets the criteria for designation as an enterprise zone as set forth in the Act. (b) Desienation of Enterprise Zone. Department hereby designates the area described in Exhibit A and Exhibit B attached hereto as an enterprise zone, known as the City of Lubbock North Enterprise Zone, sometimes referred to herein as the Zone. (c) Period of Zone Desienatjon. The Zone shall take effect on June 7, 1993, and terminate on September 1, 2000, unless otherwise specifically provided by the terms of this Agreement. Department may remove the designation, following a public hearing, if the area no longer meets the criteria for designation as set out in the Act or by Department rule or if Department determines that the governing body has not complied with commitments made in the nominating ordinance. (d) Zone Liaison. Unit has designated its city manager as liaison to communicate and negotiate with Department, enterprise projects, Qualified Businesses, and other entities in or affected by the Zone. (e) Data Submitted. Unit further represents that the data provided to Department is accurate and current as of the date of application; and that there has been no material adverse change in the affairs of Unit. 2. PERFORMANCE. Unit represents and warrants that it will provide all tax relief and other incentives or benefits described in its application for zone designation including, but not limited to the following: Unit may provide, on a case-by-case basis, certain incentives to business enterprises in the zone as outlined in Exhibit C attached hereto. 3. REPORTING REQUIREMENTS. Unit shall submit to Department no later than October 1 of each year an annual report of the progress, in narrative form, of activities within the Zone. This report shall be in a format prescribed by Department and shall include the information specified in Section 23 of the Act. If such report is not received by the deadline, Department may, following a public hearing, terminate the designation of the zone. 4. MONITORING. (a) Unit shall furnish additional information, reports or statements as Department may from time to time request in connection with this Agreement. In order to verify data relating to employment and purchases of equipment, machinery or building materials sold to an enterprise project, Unit and Qualified Businesses must permit on reasonable notice a representative of Department, State Auditor or State Comptroller's Office to inspect the books, records, and properties of Unit and of each Qualified Business at reasonable times and to make copies and abstracts of such books and records and any documents relating to such data. Unit shall include the substance of this section in all agreements with Qualified Businesses executed under the provisions of the Act. (b) After each monitoring visit, Department shall provide Unit with a written report of the monitor's findings within sixty (60) days. If the monitoring reports note deficiencies in Unit's performance, the report shall include requirements for timely correction of such deficiencies by Unit. Failure by Unit to take action specified in the monitoring report may be cause for termination of this Agreement, as provided herein. Page 2 of5 5. CONFLICT OF INTEREST. (a) Unit covenants that neither it nor any member of its governing body presently has any interest or shall acquire any interest, direct or indirect, which could conflict in any manner or degree with the performance of this Agreement. Unit further covenants that in the performance of this Agreement no person having such interest shall be employed or appointed by it. (b) Unit's employees, officers, and/or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from Qualified Businesses or potential Qualified Businesses. (c) Unit shall comply with all terms and provisions of Texas Local Government Code, Chapter 171. 6. LEGAL AUTHORITY. (a) Unit represents and warrants that it possesses the legal authority to enter into this Agreement and to perform the services it has obligated itself to perform hereunder. (b) The person or persons signing and executing this Agreement on behalf of Unit, or representing themselves as signing and executing this Agreement on behalf of such entity, do hereby represent and warrant and guarantee that he, she or they have been duly authorized by such entity to execute this Agreement on behalf of such entity and to validly and legally bind such entity to all terms, performances, and provisions herein set forth. (c) Department shall have the right to terminate this Agreement if there is a dispute as to the legal authority of Unit or the person signing this Agreement to enter into this Agreement or to render performances hereunder, and the conclusion of that dispute is that Unit or such person signing did not have such authority. 7. CHANGES AND AMENDMENTS. (a) Except as specifically provided otherwise in this Agreement, any alterations, additions, or deletions to the terms of this Agreement shall be by amendment hereto in writing and executed by all parties to this Agreement. (b) It is understood and agreed by the parties hereto that performances under this Agreement must be rendered in accordance with the Act, the regulations promulgated under the Act, and the assurances and certifications made to Department by Unit with regard to the operation of the Texas Enterprise Zone Program. Based on these considerations, and in order to ensure the legal and effective performances under this Agreement by both parties, it is agreed by the parties hereto that the performances under this Agreement are amended by rules or policy directives promulgated by Department which serve to establish, interpret, or clarify performance requirements under this Agreement. Policy directives and rule amendments shall not alter the terms of this Agreement so as to release Department of any obligation specified herein. (c) Any alterations, additions, or deletions to the terms of this Agreement which are required by changes in Federal or state law or regulations are automatically incorporated into this Agreement without written amendment hereto, and shall become effective on the date designated by such law or regulations. Department hereby agrees to notify Unit in writing of any such alterations, additions or deletions of which it has knowledge within sixty (60) days of acquiring that knowledge. 8. TERMINATION. (a) Department shall have the right to terminate this Agreement, in whole or in part, at any time before the date of completion specified in Paragraph 1 (c) of this Agreement whenever Department determines that Unit has failed to comply with any provision of the Act or Texas Enterprise Program Rules. Department shall notify Unit in writing Page 3 of 5 prior to the sixtieth (60th) day preceding the date of termination of such determination, the reasons for such termination, the effective date of such termination, and in the case of partial termination, the portion of the Agreement to be terminated. In the case of termination in whole, or in part, Department shall conduct a public hearing prior to the effective date of termination. (b) All of the parties to this Agreement shall have the right to terminate this Agreement, in whole or in part, when all parties agree that the continuation of the activities allowed under this Agreement would not produce beneficial results, provided that all parties agree in writing upon the termination conditions, including the effective date of such termination; and in the case of partial termination, the portion of the Agreement to be terminated. A public notice of termination of this Agreement shall also be published by Unit in a local newspaper covering jurisdiction of Unit. 9. NOTICES. Unless otherwise specifically provided herein, any notice, request, complaint, demand, communication or other paper shall be sufficiently given and shall be deemed given when the same are: (i) deposited in the United States mail and sent by first class mail, postage prepaid~ or (ii) delivered in each case to the parties at the addresses set forth below or at such other address as a party may designate by notice to the other parties. Ifto Unit: City of Lubbock 1625 13th Street Post Office Box 2000 Lubbock, Texas 79457 Attn: David R. Langston, Mayor and Ifto Department: Texas Department of Commerce 410 East 5th Street Post Office Box 12728 Austin, Texas 78711 Attn: Executive Director 10. OTHER AGREEMENTS. All oral and written agreements among the parties to this Agreement relating to the subject matter of this Agreement that were made prior to the execution of this Agreement have been reduced to writing and are contained in this Agreement. 11. SEVERABILITY. If any provision of this Agreement shall for any reason be held invalid, illegal, or unenforceable, it is the intent of the parties hereto that the remaining provisions of this Agreement shall be construed and enforced to the full extent permitted at law or in equity. 12. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Page4of5 -. ' 13. ATTACHMENTS. The attachments enumerated and denominated below are hereby made a part of this agreement, and constitute promised performances by Unit in accordance with this agreement. ( 1) Exhibit A, Legal Description of the Zone; (2) Exhibit B, Map; and (3) Exhibit C, Local Incentives. Witness our hands effective this 7th day of June, 1993. TEXAS DEPARTMENT OF COMMERCE BY: ITS: Page 5 of5 EXHIBIT A Description of LUBBOCK NORTH ENTERPRISE ZONE Beginning at the intersection of 19th Street and University Avenue; THENCE north along University Avenue to its intersection with 4th Street; THENCE west along 4th Street to its intersection with Detroit Avenue; THENCE north along Detroit and North Detroit Avenue to its intersection with Baylor Street; THENCE west along Baylor Street to its intersection with North Indiana Avenue; THENCE north along North Indiana Avenue to.its intersection with Erskine Street; THENCE west along Erskine Street to its intersection with North Slide Road; THENCE north along North Slide Road to its intersection with· Marshall Street; THENCE east along Marshall Street to its intersection with North Utica Avenue; THENCE south along North Utica Avenue to its intersection with Erskine Street; THENCE east along Erskine Street to its intersection with North Quaker Avenue; THENCE north along North Quaker Avenue to its intersection with Ursuline Street; THENCE east along Ursuline Street to its intersection with North Indiana Avenue; . THENCE north along North Indiana Avenue to its intersection with Kent Street; THENCE east along Kent Street to its intersection with North University Avenue; THENCE north a1ona North University Avenue to its intersection with Regis Street; THENCE east along Regis Street to its intersection with AT & SF railroad; THENCE south along the AT & SF to its intersection with North Loop 289; Page 1 of 5 EXHIBIT 1\ THENCE east along North Loop 289 to its intersection with North Avenue M; THENCE north along North Avenue M to its intersection with Wabash Street; THENCE east along Wabash Street to its intersection with Mesa Road; · THENCE north along Mesa Road to its intersection with Yucca Lane; THENCE east along Yucca Lane to its intersection with North Avenue A; THENCE south along Avenue A to its intersection with East Queens Street; THENCE east along East Queens Street to its intersection with North Quirt Avenue; THENCE north along North Quirt Avenue to its intersection with East Bluefield Street; THENCE east along East Bluefield Street to its intersection with North Guava Avenue; THENCE north along North Guava Avenue to its intersection with East Independence Street; THENCE west along East Independence Street to its intersection with North Fig Avenue; THENCE north along North Fig Avenue to its intersection with East Lawrence Street; THENCE west along East Lawrence Street to its intersection with North David Avenue; THENCE south along North David Avenue to its intersection with East Jamestown Street; THENCE west along East Jamestown Street to its intersection with North Zenith Avenue; THENCE south along North Zenith Avenue to its intersection with East Independence Street; THENCE west along East Independence Street to its intersection with North Walnut Avenue; THENCE south along North Walnut Avenue to its intersection with East Bluefield Street; THENCE west along East Bluefield Street to its intersection with North Quirt Avenue; Page 2 of 5 EXHIBIT A THENCE south aiong North Quirt Avenue to its intersection with East Ursuline Street; THENCE east aiong East Ursuline Street to its intersection with North Guava Avenue; THENCE south along North Guava to its intersection with East loop 289; THENCE southeast along Loop 289 to its intersection with East Erskine Street; THENCE east along East Erskine Street to its intersection with the Idalou Road; THENCE southwest along the Idalou Road to its intersection with Loop 289; THENCE southeast along Loop 289 to its intersection with East 2nd Street; THENCE east along East 2nd Street to its intersection with the East City Limits, a point 150 feet east of the centerline of Olive Avenue; THENCE south along a line parallel to and 150 feet east of the centerline of Olive Avenue to 1ts intersection with East 19th Street; THENCE west along East 19th Street to its intersection with Quirt Avenue; THENCE north along Quirt Avenue to its in~ersection with Idalou Road; "!~ •• -., THENCE northw.e.&t along the Idalou Highway to its intersection with Vanda Avenue; THENCE north along Vanda Avenue to its intersection with East 14th Street; THENCE west along East 14th Street to its intersection with Redbud Avenue; THENCE north along Redbud Avenue to its intersection with East 13th Street; THENCE west along East 13th Street; to its intersection with Oak Avenue; THENCE north along Oak Avenue to its intersection with East Broadway; THENCE west along East Broadway to its intersection with Yellowhouse Draw; Page 3 of 5 EXHIBIT A THENCE south along Yellowhouse draw to its intersection with East 19th Street; THENCE west along East 19th and 19th Street to the point of beginning. SAVE AND EXCEPT: TRACT 1: BEGINNING at the intersection of 4th Street and the Amarillo Road; THENCE west along 4th Street to its intersection with the AT & SF railroad; THENCE northwest along the AT & SF railroad to its intersection with Avenue K; THENCE north along Avenue K to its intersection with 1st Street; THENCE east along 1st Street to its intersection with Avenue J; THENCE south along Avenue J to its intersection with 1st Place; THENCE east along 1st Place to its intersection with Avenue H; THENCE northeast along the east right-of-way line of Avenue H and North Avenue H to its intersection with the Amarillo Road and Municipal Drive; THENCE south along the Amarillo Road to the point of beginning. TRACT 2: BEGINNING at the intersection of Avenue Q and 3rd Street; THENCE west along 3rd Street to its intersection with Avenue U; THENCE north along Avenue U to its intersection with 2nd Street; THENCE west along 2nd Street to its intersection with University Avenue; THENCE north along University and North University Avenue to its intersection with Cornell Street; THENCE west along Cornell Street to its intersection with North Detroit Avenue; THENCE north along North Detroit Avenue to its intersection with Erskine Street; THENCE west along Erskine Street to its intersection with to its intersection with North Flint Avenue; Page 4 of 5 EXHIBIT A THENCE north along North Flint Avenue to its intersection with Grinnell Street; THENCE west along Grinnell Street to its intersection with North Indiana Avenue; THENCE north along North Indian Avenue to its intersection with the AT & SF railroad; THENCE south along the AT & SF railroad to its intersection with Avenue Q; THENCE south along Avenue Q to the point of beginning. Page 5 of S "' . . •-. w;,-,.,\t, .. ,... EXHIBIT B .... ! / " \ ) \ ~ .. /_ \ .,,I 'I -....; I ' I •· ~I 1 ·, ---;;;;-.. -t" i .,; f i l' / g \ / l 0 ' ; ...:i ~ t ~ / 7 """"'4 / ---4 < ...,i Tax Abatement Residential EXHIBIT C LOCAL INCENTIVES LUBBOCK ENTERPRISE ZONE(S) Ad Valorem taxes on improvements, by new construction or modernization of residential projects, will be eligible to be abated for a period of five (5) years at 100% per year. Abatement will be considered if the individual project meets criteria and guidelines, established for this use by the affected jurisdiction(s). Criteria and guidelines to be adopted will include specific, designated, geographic locations within the zone(s) where this incentive will apply. (Available only in Enterprise Zones) Commercial Ad Valorem taxes on improvements, by new construction or modernization of retail, service and office related projects, will be eligible to be abated for a period of five (5) years at 100% per year. Abatement will be considered if the individual project meets criteria and guidelines, to be established for this use by the affected jurisdiction(s). (Available only in Enterprise Zones) Industrial Ad Valorem taxes on industrial improvements will be considered under criteria and guidelines adopted in 1991 by all taxing jurisdictions of Lubbock County and currently being reviewed for re-adoption under the requirements of state law. (Currently Exists) Page 1 of 2 EXHIBIT C Infrastructure Abatement for Businesses Businesses in the designated zones may negotiate with the City's . Utilities for the abatement of cost of extension and/or improvements of water and sewer lines and/or street improvements which are necessary for the applicant to conduct business. (Currently Exists) Local Sales and Use Tax Refunds to Qualified Businesses The City and County of Lubbock will refund local sales and use taxes paid by qualified businesses, which meet guidelines to be established, at the rate of 100% during the first year of operation in the zone and 50% for the second and third years of operation in the zone. The tax will be refunded based on the qualified business' local purchase of building materials, office supplies and furnishings for its facilities. (Available only in Enterprise Zones) Refunds of Sales Taxes for Creation of Jobs for Qualified Employees The City and County of Lubbock, jointly and proportionately, will provide $250, refunded from local sales and use taxes, for each qualified new employee hired within the designated zone(s) during a company's first year of operation if the company meets guidelines established for this use. The maximum refund for a qualified business will be $2,500. Businesses will be required to certify eligibility for these refunds through employment records and audits, if desired by the City. (Available only in Enterprise Zones) Page 2 of 2 . .,. •'"' '.c4 .. . AGREEMENT FOR DESIGNATION OF AN ENTERPRISE ZONE STATE OF TEXAS § COUNTY OF TRAVIS § THIS AGREEMENT is made and entered into this 7th day of June, 1993, by and between the Texas Department of Commerce, an agency of the State of Texas, hereinafter referred to as "Department" and the City of Lubbock, Texas hereinafter referred to as "Unit." WITNESS ETH: WHEREAS, the public policy of this state is to provide the people of this state with the necessary means to assist communities, their residents, and the private sector to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas and to provide employment to residents of those areas; WHEREAS, the objective of the Texas Enterprise Zone Act, Texas Civil Statutes, Article 5190. 7 (the Act) is to provide appropriate investments, tax benefits, and regulatory relief to encourage the business community to commit its financial participation (Sec. 2(b)); WHEREAS, the revitalization of enterprise zones through the concerted efforts of government and private sector is declared a public purpose; WHEREAS, Unit requested Department to designate an area within its jurisdiction as an enterprise zone, which is described in Exhibit A and Exhibit B attached hereto; WHEREAS, Unit filed its application on February 19, 1993, with Department for designation of an enterprise zone pursuant to the Act for the purpose of revitalizing the area described herein; WHEREAS, the governing body of Unit adopted an ordinance on February 18, 1993 and amended the ordinance May 13, 1993, following a public hearing, to nominate the area and made the necessary finding that the zone area meets the criteria for designation as an enterprise zone as set forth in the Act; WHEREAS, the Executive Director acting on behalf of Department authorized and approved the designation of the enterprise zone on June 7, 1993, under the terms and conditions of the Act and those set forth herein; WHEREAS, Unit has entered or will enter into agreements with Qualified Businesses, as defined in the Act and as further defined in its nominating ordinance, in which the Qualified Businesses agree to maintain their status as Qualified Businesses in order to benefit from the local incentives available and in which Unit provides for certain local incentives, pursuant to the terms of the Act; NOW THEREFORE, in consideration of the respective representations and agreements herein contained, the parties hereto agree as follows: Page 1 of5 ... ·' 1. REPRESENTATIONS. Department and Unit represent and warrant, as applicable, the following: (a) Findine:s. Based upon the representations made by Unit, Department hereby reaffirms previous findings that the zone area meets the criteria for designation as an enterprise zone as set forth in the Act. (b) Desie::nation of Enterprise Zone. Department hereby designates the area described in Exhibit A and Exhibit B attached hereto as an enterprise zone, known as the City of Lubbock South Enterprise Zone, sometimes referred to herein as the Zone. (c) Period of Zone Desie::nation. The Zone shall take effect on June 7, 1993, and terminate on September 1, 2000, unless otherwise specifically provided by the terms of this Agreement. Department may remove the designation, following a public hearing, if the area no longer meets the criteria for designation as set out in the Act or by Department rule or if Department determines that the governing body has not complied with commitments made in the nominating ordinance. (d) Zone Liaison. Unit has designated its city manager as Jiaison to communicate and negotiate with Department, enterprise projects, Qualified Businesses, and other entities in or affected by the Zone. (e) Data Submitted. Unit further represents that the data provided to Department is accurate and current as of the date of application; and that there has been no material adverse change in the affairs of Unit. 2. PERFORMANCE. Unit represents and warrants that it will provide all tax relief and other incentives or benefits described in its application for zone designation including, but not limited to the following: Unit may provide, on a case-by-case basis, certain incentives to business enterprises in the zone as outlined in Exhibit C attached hereto. 3. REPORTING REQUIREMENTS. Unit shall submit to Department no later than October 1 of each year an annual report of the progress, in narrative form, of activities within the Zone. This report shall be in a format prescribed by Department and shall include the information specified in Section 23 of the Act. If such report is not received by the deadline, Department may, following a public hearing, terminate the designation of the zone. 4. MONITORING. (a) Unit shall furnish additional information, reports or statements as Department may from time to time request in connection with this Agreement. In order to verify data relating to employment and purchases of equipment, machinery or building materials sold to an enterprise project, Unit and Qualified Businesses must permit on reasonable notice a representative of Department, State Auditor or State Comptroller's Office to inspect the books, records, and properties of Unit and of each Qualified Business at reasonable times and to make copies and abstracts of such books and records and any documents relating to such data. Unit shall incJude the substance of this section in all agreements with Qualified Businesses executed under the provisions of th~ Act. (b) After each monitoring visit, Department shall provide Unit with a written report of the monitor's findings within sixty (60) days. If the monitoring reports note deficiencies in Unit's performance, the report shall include requirements for timely correction of such deficiencies by Unit. Failure by Unit to take action specified in the monitoring report may be cause for termination of this Agreement, as provided herein. Page2of5 . ' ... 5. CONFLICT OF INTEREST. (a) Unit covenants that neither it nor any member of its governing body presently has any interest or shall acquire any interest, direct or indirect, which could conflict in any manner or degree with the performance of this Agreement. Unit further covenants that in the performance of this Agreement no person having such interest shall be employed or appointed by it. (b) Unit's employees, officers, and/or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from Qualified Businesses or potential Qualified Businesses. (c) Unit shall comply with all terms and provisions of Texas Local Government Code, Chapter 171. 6. LEGAL AUTHORITY. (a) Unit represents and warrants that it possesses the legal authority to enter into this Agreement and to perform the services it has obligated itself to perform hereunder. (b) The person or persons signing and executing this Agreement on behalf of Unit, or representing themselves as signing and executing this Agreefllent on behalf of such entity, do hereby represent and warrant and guarantee that he, she or they have been duly authorized by such entity to execute this Agreement on behalf of such entity and to validly and legally bind such entity to all terms, performances, and provisions herein set forth. (c) Department shall have the right to terminate this Agreement if there is a dispute as to the legal authority of Unit or the person signing this Agreement to enter into this Agreement or to render performances hereunder, and the conclusion of that dispute is that Unit or such person signing did no.t have such authority. 7. CHANGES AND AMENDMENTS. < a) Except as specifically provided otherwise in this Agreement, any alterations, additions, or deletions to the terms of this Agreement shall be by amendment hereto in writing and executed by all parties to this Agreement. (b) It is understood and agreed by the parties hereto that performances under this Agreement must be rendered in accordance with the Act, the regulations promulgated under the Act, and the assurances and certifications made to Department by Unit with regard to the operation of the Texas Enterprise Zone Program. Based on these considerations, and in order to ensure the legal and effective performances under this Agreement by both parties, it is agreed by the parties hereto that the performances under this Agreement are amended· by rules or policy directives promulgated by Department which serve to establish, interpret, or clarify performance requirements under this Agreement. Policy directives and rule amendments shall not alter the terms of this Agreement so as to release Department of any obligation specified herein. (c) Any alterations, additions, or deletions to the terms of this Agreement which are required by changes in Federal or state law or regulations are automatically incorporated into this Agreement without written amendment hereto, and shall become effective on the date designated by such law or regulations. Department hereby agrees to notify Unit in writing of any such alterations, additions or deletions of which it has knowledge within sixty (60) days of acquiring that knowledge. 8. TERMINATION. (a) Department shall have the right to terminate this Agreement, in whole or in part, at any time before the date of completion specified in Paragraph 1 (c) of this Agreement whenever Department determines that Unit has failed to comply with any provision of the Act or Texas Enterprise Program Rules. Department shall notify Unit in writing Page 3of6 • I ' I •• prior to the sixtieth (60th) day preceding the date of termination of such determination, the reasons for such termination, the effective date of such termination, and in the ease of partial termination, the portion of the Agreement to be terminated. In the ease of termination in whole, or in part, Department shall conduct a pub lie hearing prior to the effective date of termination. (b) All of the parties to this Agreement shall have the right to terminate this Agreement, in whole or in part, when al1 parties agree that the continuation of the activities allowed under this Agreement would not produce beneficial results, provided that all parties agree in writing upon the termination conditions, including the effective date of such termination; and in the ease of partial termination, the portion of the Agreement to be terminated. A public notice of termination of this Agreement shall also be published by Unit in a local newspaper covering jurisdiction of Unit. 9. NOTICES. Unless otherwise specifically provided herein, any notice, request, complaint, demand, communication or other paper shall be sufficiently given and shall be deemed given when the same are: (i) deposited in the United States mail and sent by first class mail, postage prepaid; or (ii) delivered in each case to the parties at the addresses set forth below or at such other address as a party may designate by notice to the other parties. If to Unit: City of Lubbock 1625 13th Street Post Office Box 2000 Lubbock, Texas 79457 Attn: David R. Langston, Mayor and If to Department: Texas Department of Commerce 410 East 5th Street Post Office Box 12728 Austin, Texas 78711 Attn: Executive Director 10. OTHER AGREEMENTS. All oral and written agreements among the parties to this Agreement relating to the subject matter of this Agreement that were made prior to the execution of this Agreement have been reduced to writing and are contained in this Agreement. 11. SEVERABILITY. If any provision of this Agreement shall for any reason be held invalid, illegal, or unenforceable, it is the intent of the parties hereto that the remaining provisions of this Agreement shall be construed and enforced to the full extent permitted at law or in equity. 12. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shal1 constitute but one and the same instrument. Page4 of5 ••• ' •f 13. ATTACHMENTS. The attachments enumerated and denominated below are hereby made a part of this agreement, and constitute promised performances by Unit in accordance with this agreement. BY. ITS: (1) Exhibit A, Legal Description of the Zone; (2) Exhibit B, Map; and (3) Exhibit C, Local Incentives. Witness our hands effective this 7th day of June, 1993. TEXAS DEPARTMENT OF COMMERCE ITS: Page 5 of5 EXHIBIT A Description of LUBBOCK SOUTH ENTERPRISE ZONE Beginning at the intersection of 19th Street and Avenue H; THENCE east along 19th Street and East 19th Street to its intersection with the East City Limits, a point 150 feet east of the center line of Olive Avenue; THENCE south along the City Limits a line parallel to and ISO feet east of the center line of Olive Avenue to its intersection with East 66th Street; THENCE east along East 66th Street to its intersection with Wood Avenue; THENCE south along Wood Avenue to its intersection with East 82nd Street; THENCE west along East 82nd Street to its intersection with the southeast City Limits; THENCE southeast along the City Limits to its intersection with the City Limits; . THENCE southwest along the City Limits to its intersection with the City Limits; THENCE northwest along the City limits to its intersection with Peach Avenue; THENCE west along a line parallel to and 150 feet south of the center line of 82nd Street to its intersection with Avenue H; THENCE north along Avenue H to its intersection Avenue Q South Drive; THENCE northwest along Avenue Q South Drive to its intersection with Avenue Q; THENCE north along Avenue Q to its intersection with 32nd Street; THENCE east along 32nd Street to its intersection with Avenue P; THENCE north along Avenue P to its intersection with 30th Street; THENCE east along 30th Street to its intersection with Avenue H; THENCE north along Avenue H to the point of beginning. Lubbock South Enterprise Zone contains a~proximately 15.7 square miles excluding 0.7 square miles for Interstate 27 and Loop 289 right-of-way and Canyon Lakes #6 waterway. Lubbock South Enterprise Zone consists of 1980 Lubbock County Census Tracts; 12.0l~ 12.02, block groups 1, 2 and 3 of 13, 24, and 25 and part of b1ock 310 of Tract 102 and part of block 908 of Tract 105.01. Page 1 of 1 f , City of I EXHIBIT B Lubbock South Zone :.::.:~.:~.:j,..:._-t~i!.'.:•'•:.....L.." ----------t----.....:•!.!.:.•·::.-:..-____________ -r------ ... ,,.,..., •rs.: :, •.r•"k, •·k'-(}J.Y L • -~ ,l' .... ~ ... Tax Abatement Residential EXHIBIT C LOCAL INCENTIVES LUBBOCK ENTERPRISE ZONE(S) Ad Valorem taxes on improvements, by new construction or modernization of residential projects, will be eligible to be abated for a period of five (5) years at 100% per year. Abatement will be considered if the individual project meets criteria and guidelines, established for this use by the affected jurisdiction(s). Criteria and guidelines to be adopted will include specific, designated, geographic locations within the zone(s) where this incentive will apply. (Available only in Enterprise Zones) Commercial Ad Valorem taxes on improvements, by new construction or modernization of retail, service and office related projects, will be eligible to be abated for a period of five (5) years at 100% per year. Abatement will be considered if the individual project meets criteria and guidelines, to be established for this use by the affected jurisdiction(s). (Available only in Enterprise Zones) Industrial Ad V alorem taxes on industrial improvements will be considered under criteria and guidelines adopted in 1991 by all taxing jurisdictions of Lubbock County and currently being reviewed for re-adoption under the requirements of state law. (Currently Exists) Page 1 of 2 EXHIBIT C Infrastructure Abatement for Businesses Businesses in the designated zones may negotiate with the City's Utilities for the abatement of cost of extension and/or improvements of water and sewer lines and/or street improvements which are necessary for the applicant to conduct business. (Currently Exists) Local Sales and Use Tax Refunds to Qualified Businesses The City and County of Lubbock will refund local sales and use taxes paid by qualified businesses, which meet guidelines to be established, at the rate of 100% during the first year of operation in the zone and 50% for the second and third years of operation in the zone. The tax will be refunded based on the qualified business' local purchase of building materials, office supplies and furnishings for its facilities. (Available only in Enterprise Zones) Refunds of Sales Taxes for Creation of Jobs for Qualified Employees The City and County of Lubbock, jointly and proportionately, will provide $250, refunded from local sales and use taxes, for each qualified new employee hired within the designated zone(s) during a company's first year of operation if the company meets guidelines established for this use. The maximum refund for a qualified business will be $2,500. Businesses will be required to certify eligibility for these refunds through employment records and audits, if desired by the City. (Available only in Enterprise Zones) Page 2 of 2 • R-1527 THE STATE OF TEXAS COUNTY OF_LUBao~ Before me Pa t-t l. at e a 'N'otary Public in and for Lubbock County, Texas on this day personally appearPd T • · J • A u f 11 I , ·Ac co u n t Man a E! e r of the Southwestern Newspa- pers Corporation, publishers of the Lubbock Avalanche-Journal -Morning, and Sunday, who being by me duly sworn did depose and say that said newspaper has been published continuously for more than fifty-two weeks pri- or to the first insertion of this __ L...,e .... e: ... a ....... l _.N.__;t...,0 .... · ... c_-_.e ______________________ _ ----------,----,-,-....,....--.. 0. 10s:.. 4280 at Lubbock County, Texas and the attached print- ed copy of the Le E! a I Notice is a true copy of the original and was printed in the Lubbock Avalanche-Journal on the followinG_ dat7sa:_·~F.,.11e:...1.6,l...j. c...,u~ag..C~~...,....2 ... a.,_,._.._1 .... 9-"9'-3.__ ____________ _ ,6 ... 55 = !:>Z.80 LUBBOCK AVALANCHE-JOURNAL Southwestern Newspaper Corporation NOT ARY PUBLIC in and for the State of Texas My Commission Expires .................. ___ _ Subscribed and sworn to before me thi .... s _...,2_S-.._ ____ day of Ee ht a cl t Y 19 2a FORM58-10 SECOND READINGOl)ICIINANCE' ,. ,-.· .. f,I ' --ORDINANCE NO. ffll . · 'AN ~RDiNANCE C)F TH~ CITY COUNCIL CF THE CITY OF LUBBOCK, TEXAS, NOM• •NATING TWO AREAS AS EN• · · -rERPRISE ZONES PURSUANT • ro THE TEXAS ENTERPRISE :ONE ACT (TEXAS CIVIL STAT• JTES, ART. 5190,1)1 PROVIDING rAX INCENTIVES! DESIGNAT• ING AN AUTHORIZED PRESEN• TATIVE TO ACT IN ALL MAT• TERS PERTAINING TO THE NOMINATION AND DESIGNA• TION OF THE AREA DE· SCRIBED HEREIN AS AN EN• TERPRISE ZONE AND REIN• VESTMENT ZONE (TEXAS TAX CODE, CHAP. 312); AND FUR• THER DESIGNATING A LIAISON TO ACT ON ALL MATTERS PER-TAINING TO THE ENTERPRISE ZONE ACT ONCE DESIGNATED BY THE TEXAS DEPARTMENT OF COMMERCE. · R-1527 -------1·· MAP IN FILE SEE ORDINANCE No Text No Text No Text No Text