HomeMy WebLinkAboutResolution - 2016-R0364 - Amend Tax Abatement - Cellco Partnership (Verizon Wireless & Affiliates) - 10/13/2016Resolution No.2016-R0364
Item No.7.12
October 13,2016
RESOLUTION
WHEREAS,the City Council has determined to give notice of its intent to amend a Tax
Abatement Agreement with Cellco Partnership d/b/a Verizon Wireless & Affiliates; and
WHEREAS,Texas Tax Code Section 312.208 requiresa notice of intent to be givenby the
City Council to the presiding officer of the governing body of each taxing unit in which the
property subject to the amendment of the Tax Abatement Agreement is located; and NOW
THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Secretary of the City of Lubbock is hereby authorized and directed to give
notice of an intent to amend a Tax Abatement Agreement with Cellco Partnership d/b/a
Verizon Wireless &Affiliates,with said notice to be given to the presiding officers of each
taxing unit having jurisdiction in assessing taxes on the property located at 1415 Lubbock
Business Park Boulevard, and more particularly described as Lot 9.Lubbock Business Park
Addition to the City of Lubbock, Lubbock County, Texas. Said notice is attached hereto and
incorporated in this resolution as if fully set forth herein and shall be included in the minutes
of the City Council.
Passed by the City Council on October 13.2016 .
DANIEL M.POPE,MAYOR
ATTEST:
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Rebecca Garza. City Secretai
APPROVED AS TO CONTE
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Cheryl Brock.Executive Director of Budget
APPROVED AS TO FORM:
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Justin Prujtt.Assistant City Attorney
ccdocs/RES^oticc ofIntent -Amendment to Tax Abatement Agreement -Cellco Partnership (Verizon)
September 21.2016
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Resolution No. 2016-RO3 64
NOTICE OF INTENT
NOTICE OF INTENT OF THE CITY COUNCIL OF THE CITY OF LUBBOCK TO
AMEND A TAX ABATEMENT AGREEMENT ON REAL PROPERTY
IMPROVEMENTS AND TANGIBLE PROPERTY LOCATED AT 1415 LUBBOCK
BUSINESS PARK BOULEVARD, LOT 9, BUSINESS PARK ADDITION TO THE CITY
OF LUBBOCK, LUBBOCK COUNTY, TEXAS.
Notice is hereby given that the City Council of the City of Lubbock intends to amend an Agreement
with Cellco Partnership d/b/a Verizon Wireless & Affiliates to abate taxes on improvements to
real property and tangible personal property created by Resolution No. 201 1-R0046 and covering
all ofthe subject property, with such property being depicted and described in the attached "Exhibit
1.91
Notice is further given that the City Council of the City of Lubbock will consider authorizing the
Mayor of the City to execute an amendment to the Agreement between the City of Lubbock and
Cellco Partnership d/b/a Verizon Wireless & Affiliates for tax abatement, with a draft copy of said
amendment being attached to this notice as "Exhibit 2."
Notice is further given that the City Council will consider this matter at its meeting held in the City
Council Chamber, City Hall, 1625 13 1h Street, City of Lubbock, on the 27th day of October, at
approximately 5:15 PM.
EXHIBIT 1
EXHIBIT 2
FIRST AMENDMENT TO TAX ABATEMENT AGREEMENT BETWEEN
THE CITY OF LUBBOCK AND CELLCO PARTNERSHIP
This First Amendment (the "Amendmenf') to the Tax Abatement Agreement (the
"Agreement") is entered into this day of , 2016 by and between
the City of Lubbock, a Texas municipal corporation (the "City"), and Cellco Partnership
d/b/a Verizon Wireless & Affiliates (the "Company").
RECITALS
WHEREAS, the City and the Company entered into the Agreement on January 27, 2011;
and
WHEREAS, the City and the Contractor hereby desire to reduce the term and percentage of
abatement of the Agreement; and
NOW THEREFORE, the City and the Contractor hereby amend the Agreement as follows:
AMENDMENT
1. The language in Section I on page 2 of the Agreement, entitled "Term," shall be replaced
with the following language:
"This Agreement shall commence on January I of the tax year after the required
improvements are substantially completed, and shall expire and be of no further
force and effect four (4) years after such date."
2. The language in Section 8 on page 3 of the Agreement, -entitled "Value of Improvements,"
shall be replaced with the following language:
"In accordance with Texas Tax Code Section 312.204(a), which requires the
Company to make specific improvements or repairs to the property in order to be
efigible for tax abatement, the Company will expend eleven million eight hundred
thousand dollars ($11,800,000) for the construction of a new facility and twenty-
four million five hundred thousand dollars ($24,500,000) on tangible personal
property over the first three (3) years of the Term to be located within the enterprise
zone designated by City of Lubbock Ordinance No. 2007-00116. The Company
will provide invoices and proof of payment for the investment in the construction of
the facility and the tangible personal property required by this Section."
3. The language in Section 10 on page 4 of the Agreement, entitled "Portion of Tax Abated,"
shall be replaced with the following language:
"The City agrees to abate the Company's taxes referenced in this Agreement
throughout the Ten-n of this Agreement according to the following schedule:
Year 1:
100%
Year 2:
80%
Year 3:
60%
Year 4:
32%11)
First Amendment to Tax Abatement Agreement — City of Lubbock & CeUco Partners (Verizon) Page I
EXHIBIT 2
4. This Amendment shall become effective upon its execution by the parties. The remainder
of the Agreement shall remain in full force and effect except as changed herein.
This Amendment shall become effective on this day of 1,2016.
SIGNATURES
CITY OF LUBBOCK: CELLCO PARTNERSHIP d/b/a
VERIZON WIRELESS & AFFILIATES:
DANIEL M. POPE.) MAYOR
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
Cheryl Brock, Executive Director of Budget
APPROVED AS TO FORM:
Justin Pruitt, Assistant City Attorney
NAME (Signature)
NAME (Printed)
First Amendment to Tax Abatement Agreement — City of Lubbock & Cellco Partners (Verizon) Page 2