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Home My WebLink AboutResolution - 2000-R0421 - Commercial Tax Abatement With Williams Communication, Inc. - 11/27/2000Resolution No. 2000-RO421 November 27, 2000 Item No. 15 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement and all related documents by and between the City of Lubbock and Williams Communications, Inc., attached hereto and which shall be spread upon the minutes of the council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 27th day of November ATTEST: City Secretary APPROVED AS TO CONTENT: Richard Burdine, Assistant City Manager APPROVED AS TO FORM: G. V RESOLUTION 2000. fkit WINDY SIT N, MAYOR Resolution No. 2000—RO421 November 27, 2000 Item No. 15 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 27th day of November , 2000, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Williams Communications, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 8th day of September, 2000, an application for commercial tax abatement for the construction of a new facility at 1502 to 1520 Avenue N which is further described as Lots 11 — 20, Block 176 Original Town to City of Lubbock, Lubbock County, Texas. WHEREAS, upon review of the above application, it was determined that facilities would be located in the Lubbock 2000 South Enterprise Zone designated by City in its Ordinance No. 2000-00032; and WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by Resolution No. 6520 of the City Council of the City of Lubbock; and WHEREAS, the City did comply with all the requirements set forth in V.T.C.A., Tax Code, Section 312.2011; and WHEREAS, the City did comply with all of the criteria and guidelines for creation of an enterprise zone as set forth in Chapter 2303, Subchapter C of the Texas Enterprise Zone Act, Texas Government Code, having adopted Ordinance No. 2000-00032 of the City on June 8, 2000, which ordinance includes 1502 to 1520 Avenue N. WHEREAS, V.A.T.C., Tax Code, Sec. 312.2011 provides designation as an enterprise zone constitutes designation as a reinvestment zone without further action; and WHEREAS, the application received by City from Company is an application for the construction of a new facility; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a purpose is to be included in the guidelines for tax abatement and to be eligible for such treatment; and WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones adopted by the City Council by Resolution No. 6520 does recognize construction of a new facility as being eligible for commercial tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guidelines and Cri- teria established for Commercial Tax Abatement within the Enterprise Zones of the City of Lubbock, as adopted by Resolution No. 6520, have been met by Company; and WHEREAS, Company does intend to construct a new facility; and WHEREAS, the location of the existing facility and surrounding real property, which are to be the subject matter of the Agreement, are attached hereto as Exhibit "A", and made a part of this Agreement for all purposes; and WHEREAS, the City Council finds that entering into this Agreement to abate taxes on the property described in Exhibit "A" will promote high quality commercial development in the City, and enhance economic development within the designated Enterprise Zone; NOW THEREFORE, for and in consideration of the premises, and of the mutual terms, covenants and conditions herein contained, the City and Company do hereby agree as follows: AGREEMENT— WILLIAMS COMMUNICATIONS, INC. Page 2 SECTION 1. Term. This Agreement shall remain in force and effect for a period of five (5) years from the date of its execution, and shall expire and be of no further force and effect after said date. SECTION 2. Base Year. The base year applicable to real property, which is the subject of the Agreement, shall be 2000, and the assessed value of the real property shall be the assessed value applicable to such property for said year. SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in accordance with the assessed value of such property for the base year. Base year taxes upon the real property are thus not abated. SECTION 4. Abatement of Increase in Base Year Tax. In accordance with V.A.T.C., Tax Code, Section 312.204, real property taxes applicable to the real property subject to this Agreement shall be abated only to the extent said value for any given year within the term of this Agreement exceeds the base year taxes hereinabove set forth. SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section IV(5) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones, and heretofore adopted by the City Council by Resolution No. 6520, and incorporated by reference herein as if fully set out in this Agreement is property ineligible for tax abatement. SECTION 6. Exemption from Tax. The City covenants and agrees to exempt from taxation, in accordance with Section 4 above, the following properties: (a) All proposed new construction to be located at 1502 to 1520 Avenue N which is further described as Lots 11-20, Block 176, Original Town to City of Lubbock, Lubbock County, Texas. (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "A", which does not include any equipment and personal property owned by the company and already located in the existing facility. AGREEMENT —WILLIAMS COMMUNICATIONS, INC. Page 3 (c) It is further understood that all items affixed to the improvements placed upon the real property identified in Exhibit "A" including machinery and equipment shall be considered part of the real property improvement, and taxes thereon shall be abated in accordance with the provisions of sub- paragraph (a) above set forth. SECTION 7. Economic Qualification. It is hereby found by the City that Company will expend funds necessary to qualify for tax abatement by constructing a new facility, all as set forth in Section IV(9)(a) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock adopted by the City through Resolution No. 6520. SECTION 8. Value of Improvements. Company intends to expend approximately five million dollars ($5,000,000) in constructing a new facility and new equipment to be located within the Enterprise Zone created by Ordinance No. 2000-00032. SECTION 9. Creation of New Jobs. Company agrees within twelve to twenty- four (12 - 24) months from the date of execution of this Agreement that it will create two to four (2-4) new jobs within the Company facility located at 1502 to 1520 Avenue N and further described as Lots 11 — 20, Block 176, Original Town to City of Lubbock, Lubbock County, Texas. SECTION 10. City Access to Property. Company covenants and agrees that City shall have access to the property, which is the subject matter of this Agreement, during normal business hours, and that municipal employees shall be able to inspect the property to insure that the improvements are being made in accordance with the terms and conditions of Company's application for commercial tax abatement, attached as Exhibit "A", and this Agreement. SECTION 11. Portion of Tax Abated. City agrees, during the term of this Agreement, to abate taxes on eligible property according to the following schedule: Year 1: 100% Year 2: 80% AGREEMENT —WILLIAMS COMMUNICATIONS, INC. Page 4 Year 3: 60% Year 4: 40% Year 5: 20% SECTION 12. Commencement Date. This Agreement shall commence upon the date of its execution, which date is hereinafter set forth, and shall expire five (5) years after such date. SECTION 13. Type of Improvements. The Company proposes to build a new facility as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the 15th day of September, 2000, and shall be completed within approximately eight months from said date. The Company may request an extension of the above date from City in the event circumstances beyond the control of Company necessitates additional time for completion of such improvements, and such consent shall not unreasonably be withheld. SECTION 14. Drawings of Improvements. Company shall furnish City with one set of as -built plans and drawings of the improvements to be made pursuant to the terms of this Agreement. SECTION 15. Limitation on Use. Company agrees to limit the use of the property set forth in Exhibit "A" to commercial uses as those terms are defined in the zoning ordinances of the City of Lubbock, and to limit the uses of the property to uses consistent with the general purpose of encouraging development of the designated Enterprise Zone during the term of this Agreement. SECTION 16. Recapture. The Company agrees to be bound by and comply with all the terms and provisions for recapture of abated taxes in the event of default by Company pursuant to law and as set forth in Section VII of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones adopted by Resolution No. 6520 of the City Council of the City of Lubbock. AGREEMENT —WILLIAMS COMMUNICATIONS, INC. Page 5 SECTION 17. Certification. The Company agrees to certify annually to the governing body of each taxing unit that the owner is in compliance with the terms of the Agreement. SECTION 18. Compliance. The City may cancel or modify this Agreement if the Company fails to comply with the Agreement. SECTION 19. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK WILLIAMS COMMUNICATIONS, INC. City Manager Dennis Peterson P.O. Box 2000 One Williams Center Lubbock, TX 79457 Tulsa, OK 74172 AGREEMENT —WILLIAMS COMMUNICATIONS, INC. Page 6 q0 SECTION 20. Effective Date. Notwithstanding anything contained herein to the contrary, this Agreement shall not be effective until such time as it shall be finally passed and approved. EXECUTED this 27th day of November , 2000. WILLIAMS COMMUNICATIONS, INC. Dennis Peterson Director of Tax ATTEST: CITY OF LUBBOCK -'jA > icipal Corpc+atio Y S Ti MAYOR APPROVED AS TO CONTENT: Richard Burdine Assistant City Manager APPROVED AS TO FO -' 7Ponald G. Vandiver First Assistant City Attorney CAB/G:/Tax Abatement/Williams Communications/Contract — October 9, 2000 AGREEMENT—WILLIAMSCOMMUNICATIONS, INC. Page 7 F"IBIT "A" Resolution No. 2000-RO421 APPLICATION FOR COMMERCIAL TAX ABATEMENT IN LUBBOCK, TEXAS FILING INSTRUCTIONS: This application must be filed prior to the anticipated commencement of construction of improvements or the kei installation of equipment. This filing acknowledges familiarity and assumed conformance with "GUIDELINES )_ AND CRITERIA GOVERNING COMMERCIAL TAX ABATEMENT'" (Copy attached This application will become a part of any later agreement or contract, and knowingly false representations thereon wilt' be grounds for the .. voiding of any later agreement or contract:` "< x. 9 .. ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO: City of Lubbock Business Development Department P.O. Box 2000 1625 13t' Street Lubbock, TX 79457 (806) 775-2019 ,.... *005 Section { =' APPLICANT• INFORMATION " `',..,� � Date of Application: 08 /21 /2000 Applicant Name: Douglas A. Wright Company Name: _ Williams Communications, Inc. Address: One Williams Center Tulsa Oklahoma 74172 Phone: (918) 573-9640 Fax: f918) 573-9689 Applicants Representative on this project: Ernst & Young LLP Name: George Francis Address: 2121 San Jacinto St., Ste 1500, Dallas, Texas Phone: (214) 969-8249 Type of Ownership: [X] Corporation [ ] Partnership [ ] Proprietorship Total Current Number Employees: 9.000+ Corporate Annual Sales Per Year: $2.0 billion in revenue Section 11 FACILITY IN1=0RMATION ;tip' n (a) This application is for a: [X] New Facility [ ] Expansion [ ] Modernization (b) Type of Commercial Facility for which abatement is requested: Telecommunications Services Switching Commercial application for tax abatement 2.doc Commercial Tax Abatement Application Page 2 (c) Minimum economic qualification for tax abatement - place a check beside the statements that apply to your project: [X] Minimum investment at least $250,000 [ ] Creation of at least 10 new permanent jobs [ ] At least 30% of the new employees to be hired by the business will be residents of any enterprise zone within the governing body's jurisdiction (d) [X ] The existing facility to be modernized or expanded or the property where the new facility is to be built is located in a designated Enterprise Zone. (e) Address of proposed facility: 1502 to 1520 Avenue N. Lubbock TX 79401 (f) Legal description of proposed facility: Lots 11-20. Block176 Original Town to City of Lubbock in Lubbock TX (g) Describe product or service to be provided: Telecommunications Services. Equipment will be used to switch calls voice, data, video signals from fiber optic network to local exchange carriers Please attach the following: Attachment 1 (a) A general description of the improvements to be undertaken (example: build new retail store at 4501 Peach Street and install new furniture and fixtures). (b) A descriptive list of the improvements for which tax abatement is requested, including: (1 } cost and description of construction and location of all proposed improvements of the Real Property or Existing Facility, and; (2) list of new equipment and cost of the equipment. I (c) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing facility. I (d) A proposed time schedule for undertaking and completing the proposed improvements. I Attachment 2 (a) A site map indicating the approximate location of improvements on the Real Property Facility or Existing Facility together with the location of any or all Existing Facilities located on the Real Property or Facility. Commercial Tax Abatement Application Page 3 If Attachment 3 (a) A statement of the additional value to the Real Property or Facility as a result of the proposed improvements. (b) A statement of the assessed value of the Real Property, Facility or Existing Facility for the base year (attach tax assessment for property from the Lubbock Central Appraisal District). (c) Information concerning the number of new jobs that will be created or the number of existing jobs to be retained as a result of the improvements undertaken. Section 1V - ECONOMIC IMPACT INFORMATION. ;. <. - x _ ; Part A — Current Investment in Existing Improvements: $0.0 Part B — Permanent Employment Estimates: (1) If existing facility, what is the current plant employment: NA (2) Estimated number of new jobs to be created and time frame for creation of jobs: New Jobs 2-4 Time Frame 12-24 months (3) Estimated number of retained jobs: NA (4) Opening of improvements: (Month) 05 of (Year) 2001. Part C — Permanent Payroll Estimates: (1) If existing facility, what is the current plant payroll: $0.0 (2) Estimated amount of new payroll: $75,000 (3) Estimated amount of retained payroll: $0.0 Part D — Construction and Employment Estimates: (1) Construction start: Month 09 Year 2000. (2) Number of construction jobs: At Start 1 Peak 10 Finish 0 (3) Number of man-years: 3 Part E — School District Impact Estimates: Give Estimated number of Children added to ISD's 0 Commercial Tax Abatement Application Page 4 Part F — City Impact Estimates: (1) Volume of treated water required from City Less than 200 gallons per day. (2) Volume of effluent to be treated by City. 0 gallons per day. Part G — Estimated Appraised Value on Site: LAND PERSONAL IMPROVEMENTS PROPERTY Value of Existing Facility Before New Construction (From Central Appraisal District) 0 0 II Value of New Improvements $4,000,000 $1,000,000 Estimated Total Value After Improvements $4,000,000 $1,000,000 Part H — Variance: (a) Is a variance being sought under Section IV 9(d) of the "Guidelines"? [ ] Yes [X] No (b) If "Yes", attach any supplementary information required. Section V "- DECLARATION , . �.:. :. , ... ... ........ _ �` d r To the best of my knowledge, the above information is an accurate description of project details. Company Official Signature Dennis Peterson Printed Name of Company Official Director of Tax Title of Company Official Commercial Tax Abatement Application Page 5 Application for Commercial Tax Abatement in Lubbock, Texas Attachment for Williams Communications Application Attachment 1 Section 111 - FACILITY DESCRIPTION (a) A general description of the improvements to be undertaken New 5,460 square foot facility, pre -cast concrete building (b) A descriptive list of the improvements for which tax abatement is requested, including: (1) cost and description of construction and location of all proposed improvements of the Real Property or Existing Facility, and; Concrete building $250,000-$500,000 (2) list of new equipment and cost of the equipment Generator $ 85,000 HVAC Equipment $ 90,000 Telecomm Equipment $ 4,000,000 (C) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing facility. None at this time. (d) A proposed time schedule for undertaking and completing the proposed improvements. Start: 9-20-00 Completion: 5-15-01 Resolution N0. 2000-R0421 PRELIMINARY NOT FOR CONSTRUCTION Lubbock CAD Properties }}��c.Gh,.,e�T' 3 Page 1 of 2 Resolutlon No. 2000-R 0421 LUBBOCK CAD Real Property Information Lubbock Account Number: R118137 Cross Reference Number: 00379423 View Tax Information Information updated 08/25/2000 PROPERTY 12000 Certified Value INFORMATION11 Exemption Codes Ag Use $0 Freeze Amount .000 Total Improvement Value $0 Number of Improvements Land Acres Land Market Value $12,188 Ag Market $0 Deed Date 10/3/1995 Deed Volume 4981 Total Market Value 1 $12,18811 http://www.lubbockcad.orgALubbockdetail-cfm?theKey=Rl 18137 9/21/2000 Lubbock CAD Properties A4+,C ke-&4+ 3 291 Page 2 of 2 Note: If your value is 0, a change of ownership may have occurred since certification. LAND INFORMATION TypeCode SPTB Code C1 REAL 1 RD Residential VACANT RESIDENTIAL Appraisal Method SFT Square Foot Homesite N Eff. Froage Eff. Depth Iize- cres Size-Sgft 78 125 .00000 9750.00000 Certified History Tax Year 1999 1998 1997 1996 1995 1994 Improvements Land Market $12,188 $12,188 $12,188 $12,188 $12,188 $12,188 Ag. Land Market TOTAL MARKET $12,188 $1.2,188 $12,188 $12,188 $122,18188 $12,188 Land Ag. Use 10% Limited Adjustment TOTAL MARKET$12,188 $1.2,188 $12,188 $12,188 $12,188 $12,188 Exemptions Special Exemptions Over Freeze -65 Over -65 Freeze Amount C IE=====—I Another Search by Short Account Number Another Search by Long Account Number Another Search by Owner Name Another Search by Address http://www.lubbockcad.org/Lubbockdetail.cfm?theKey=Rl 18137 9/21/2000 LUBBOCK CAD Real Property Information Lubbock Account Number: R118051 Cross Reference Number: 00379389 View Tax Information Owner's Name WILLIAMS COMM INC and Mailing 1 WILLIAMS CENTER Address STE 4100 TULSA, OK 74172 Location 1520 AVE N Zone LUBBOCK , TX Map ID 0038 R667000-00176-00012-000 Description ORIG T I BOCK BLK 176 L 11-12 Subdiv/Abstract Ind. S Subdiv/Abstract No. 5667000 Taxing Entities Code Name 99 Tax Rate 99 Tax GLB LUBBOCK COUNTY .19170 15.58 SLB LUBBOCK ISD 1.56500 127.16 CLB CITY OF LUBBOCK .58000 47.13 HSP HOSPITAL DISTRICT .09798 7.96 WHP High Plains Water District .00840 .68 Totals: 11 2.44308 198.51 Information updated 09/26/2000 Note: If your value is 0, a change of ownership may have occurred since certification. LAND INFORMATION H 1 anal I�iII. V,II. "ze- TypeCode11 SPTB Code Homesite Size-Sgft Method Frontage 11 Depth 11 Acres oot 11111 I• 11 11111 Another Search by_Short Account Number Another Search by_Lon Account Number Another Search by Owner Name Another Search by Address Certified History Tax Year 1999 1998 1997 1996 1995 1994 $8,125 $8,125 $8,125 $8,125 $8,125 $8,125 $8,125 Improvements Land Market Ag. Land Market TOTAL MARKET$8,125 Land Ag. Use 10% Limited Adjustment TOTAL MARKET$8,125 $8,125 $8,125 $8,125 $8,125 $8,125 Exemptions Special Exemptions----7 Over-65 Freeze Year Over -65 Freeze Amount Another Search by_Short Account Number Another Search by_Lon Account Number Another Search by Owner Name Another Search by Address LUBBOCK CAD Real Property Information Lubbock Account Number: R118075 Cross Reference Number: 00379398 View Tax Information Information updated 09/26/2000 Note: If your value is 0, a change of ownership may have occurred since certification. LAND INFORMATION Another Search_Short Account Number Another Search by Long__Account Number_ Another_. Search by Owner Name Another Search by_Address Certified History Tax Year 1999 1998 1997 1996 1995 1994 Improvements Land Market $6,094 $6,094 $6,094 $6,094 $6,094 $6,094 Ag. Land Market TOTAL MARKET--7=L—$6,094 $6,094 $6,094 $6,094 $6,094 Land Ag. Use 10% Limited Adjustment TOTAL MARKET $6,094 $6,094 $6,094 $6,094 $6,094 $6,094 Exemptions Special Exemptions Over-65 Freeze Year Over-65 Freeze Amount Another Search_Short Account Number Another Search by Long__Account Number_ Another_. Search by Owner Name Another Search by_Address LUBBOCK CAD Real Property Information Lubbock Account Number: R118092 Cross Reference Number: 00379405 View Tax Information Information updated 09/26/2000 Note: If your value is 0, a change of ownership may have occurred since certification. LAND INFORMATION LandID1 Type SPTB Code 17 11 Appraisal Homesite Eff. Eff. Size- 10% Limited Adjustment TOTAL MARKET $10,156 $10,156 $10,156 $10,156 $10,156 $10,156 Exemptions Method Frontage Depth Acres Size-Sgft 8125.00000 Eland Commercia C2 REAL VACANT COMMERCIAL SFT Square IE=== Foot Certified History Tax Year 1999 1998 1997 1996 1995 1994 Improvements Land Market $10,156 $10,156 $10,156 $10,156 $10,156 $10,156 Ag. Land Market TOTAL MARKET $10,156 $10,156 $10,156 $10,156 $10,156 $10,156 Land Ag. Use 10% Limited Adjustment TOTAL MARKET $10,156 $10,156 $10,156 $10,156 $10,156 $10,156 Exemptions HS HS Special Exemptions Over -65 Freeze Year Over -65 Freeze Amount _Another Search by Short Account Number Another Search by Long_Account Number Another Search by Owner Name Another Search by Address LUBBOCK CAD Real Property Information Lubbock Account Number: R118116 Cross Reference Number: 00379414 View Tax Information Information updated 09/26/2000 Note: If your value is 0, a change of ownership may have occurred since certification. LAND INFORMATION U k-ornmerclal 11CZ KCAL V At -AIN 1 JINP .I.Nquare Land COMMERCIAL IFoot .00000 113250.00000 TypeCode SPTB Code Appraisal MethodFrontage 1�[Eff. Eff. Depth Size- Acres Size-Sgft TOTAL MARKET U k-ornmerclal 11CZ KCAL V At -AIN 1 JINP .I.Nquare Land COMMERCIAL IFoot .00000 113250.00000 Another Search by Short Account Number Another Search by L ng Account Number Another Search by Owner Name Another Search by Address Certified History �— Tax Year –� 1999 1998 1997 1996 1995 1994 Improvements Land Market $4,063 $4,063 $4,063 $4,063 $4,063 $4,063 Ag. Land Market TOTAL MARKET $4,063 $4,063 $4,063 $4,063 $4,063 $4,063 Land Ag. Use 10% Limited Adjustment TOTAL MARKET $4,063 $4,063 $4,063 $4,063 $4,063 $4,063 Exemptions Special Exemptions Over -65 Freeze Year Over -65 Freeze Amount Another Search by Short Account Number Another Search by L ng Account Number Another Search by Owner Name Another Search by Address