HomeMy WebLinkAboutResolution - 2015-R0387 - Accept United Supermarkets LLC As An Enterprise Project - 11/19/2015No. 2015-RO387
:tuber 19, 2015
No. 7.2
RESOLUTION
WHEREAS, the City of Lubbock (the "City") has previously passed Ordinance
No. 2013-00108 electing to participate in the Texas Enterprise Zone Program, a copy of
which is attached and incorporated as if fully set forth herein. The local incentives
offered under this resolution are the same on this date as were outlined in Ordinance No.
2013-00108; and
WHEREAS, the Office of the Governor Economic Development and Tourism
(the "EDC") through the Economic Development Bank (the "Bank") will consider United
Supermarkets, L.L.C. as an enterprise project pursuant to a nomination and an application
made by the City; and
WHEREAS, the City desires to pursue the creation of the proper economic and
social environment in order to induce the investment of private resources in productive
business enterprises located in the City and to provide employment to residents of
enterprise zones, or Veterans, and to other economically disadvantaged individuals; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise
Zone Act, Texas Government Code (the "Act"), United Supermarkets, L.L.C. has applied
to the City for designation as an enterprise project for the planned expansion of the Llano
Logistics Distribution Facility that is located at 5801 Martin Luther King Boulevard; and
WHEREAS, 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:
(1) 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 within the governing body's jurisdiction
located outside of an enterprise zone and at least thirty-five percent (35%) of the
business' new employees will be residents of an enterprise zone, or Veterans, or
economically disadvantaged individuals; and
(2) There has been and will continue to be a high level of cooperation between
public, private, and neighborhood entities within the area; and,
(3) 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; and
WHEREAS, the City finds that United Supermarkets, L.L.C. meets the criteria
for tax relief and other incentives adopted by the City; the City nominates United
Supermarkets, L.L.C. for enterprise project status on the grounds that it will be located at
the qualified business site; that United Supermarkets, L.L.C. will create a higher level of
employment, economic activity and stability; and, the City finds that it is in the best
interest of the City to nominate United Supermarkets, L.L.C. as an enterprise project
pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF LUBBOCK:
THAT the findings of the City and its action in approving this resolution
are hereby approved and adopted;
2. THAT the City finds that United Supermarkets, L.L.C. is a "qualified
business", as defined in Section 2303.402 of the Act and meets the criteria
for designation as an enterprise project, as set forth in Section 2303,
Subchapter F of the Act;
3. THAT the enterprise project shall take effect on the date of designation of
the enterprise project by the agency and terminate after five years; and
4. THAT pursuant to United Supermarkets, L.L.C.'s application for
designation as an enterprise project and the above findings, the City
hereby nominates United Supermarkets, L.L.C. to the Office of the
Governor Economic Development and Tourism through the Economic
Development Bank as an enterprise project pursuant to the Act; and the
City's Designated Liaison is authorized to submit an application and
nomination on behalf of United Supermarkets, L.L.C.
PASSED BY THE CITY COUNCIL ON
C. ROBERTSON, MAYOR
ATTEST:
'Retca Garza, City Secretary
APPROVED AS TO CONTENT:
y `^",� P
Cheryl Block, Executive Director of Budget
APPROVED AS TO FORM:
Justinq22i
Assistint Cit Attorney
ccdocs/Rtion— United Supermarkets— Enterprise Zone Project Nomination
Novembe
Fast Reading
November 7, 2013
Item No. 62
ORDINANCE NO.
2013-00109
Second Reading
November 21, 2013
Item No. 5A
AN ORDINANCE AMENDING ORDINANCE NO. 2097-WI16
REGARDING THE CITY'S PARTICIPATION IN THE TEXAS
ENTERPRISE ZONE PROGRAM PURSUANT TO TEXAS
GOVERNMENT CODE CHAPTER 2303, BY REVISING THE LIST OF
ENTERPRISE ZONE BLOCK GROUPS, EXPANDING THE LIST OF
TAX INCENTIVES, DESIGNATING A LIAISON FOR
COMMUNICATION WITH INTERESTED PARTIES AND
NOMINATING X -FAB TEXAS, INC. TO THE OFFICE OF THE
GOVERNOR ECONOMIC DEVELOPMENT & TOURISM THROUGH
THE ECONOMIC DEVELOPMENT BANK AS AN ENTERPRISE
PROJECT.
WHEREAS, the City Council of the City of Lubbock, Texas (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 area of the City and to provide employment to residents of
such area; and
WHEREAS, the City Council of the City of Lubbock desires to amend
Ordinance 2007-00116, the ordinance approving the City's participation in the
Texas Enterprise Zone Program, by updating the enterprise zone block groups to
the most current cent and by expanding the list of tax incentives; and
WHEREAS, the City is in compliance with Chapter 2303 of the Texas
Government Code (Act), and pursuant to Subchapter F of the Act, X -FAB
TEXAS, INC has applied to the City for designation as a single Enterprise Project
(Project); and
WHEREAS, the project or activity is located in an area designated as an
enterprise zone; and
WHEREAS, the City finds that X -FAB TEXAS, INC. meets the criteria
for tax relief and other iixxntives adopted by the City on the grounds that it will
be located at the qualified business site, will create a higher level of employment,
economic activity and stability; and
WHEREAS, the City finds that a notice that a public heating would be
held prior to the amendment of the ordinance regarding the City's participation in
the Texas Enterprise Zone Program and stating the date, time and location of the
hearing; the provisions for any tax or other incentives applicable to the enterprise
zone program; the name of the qualified business whose project is being
nominated for enterprise project designation, and the location of the qualified
business site; was published not later than the seventh calendar day before the
date of the hearing and a copy of the notice was sent to the Office of the
Governor, and
WHEREAS, a public hearing to consider this ordinance was held by the
City Council on November 7, 2013; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCIC
THAT, Ordinance No. 2007-00116 is amended to read as follows:
"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 X -Fab Texas, Inc. for enterprise
project status (single).
SECTION 3: THAT the following local incentives, at the election of the
governing body, are or will be made available:
e) Jurisdiction -Wide:
I. 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 employee being defined by the Act
ii. 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 16, 1998.
iii. Zoning ordinances of the City may be amended in such a manner
as to promote economic development
iv. The Zoning Board of Adjustment may grant a variance or a
special exception for a particular property on a case-by-case
basis.
v. Three Tax Increment Finance Reinvestment Zones have been
established within the City.
vi. As a part of its ongoing capital improvements program, the City
replaces and upgrades its water and sewer infrastructure as
required.
vii. The City has an ongoing park improvement project relating to
playgrounds and pavilions.
viii. Annual maintenance and repair of roads citywide is provided
through an ongoing capital improvements program.
ix. 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.
x. 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.
xi. 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 to eligible companies on a case-by-case
basis.
xii. The City participates in Workforce Solutions South Plains, the
local workforce development board, to provide job training, re-
training, and employment services for local employers.
b) In the Enterprise Zones:
i. The City may abate taxes on Commercial projects on the
increase in value of real property improvements and eligible
personal property that locate in one of the following designated
enterprise zone block groups:
EZ Block Groups;
Census Tract 2.01 Block Group 1 and 2
Census Tract 2.02 Block Group I
Census Tract 3.01 Block Groups 1, 2 and 3
Census Tract 3.02 Block Groups 1, 2, 4, and 5
Census Tract 6.07 Block Groups 1 and 2
Census Tract 9.00 Block Groups 1 and 4
Census Tract 10.00 Block Groups 1, 2, and 3
Census Tram 12.00 Block Group 2 and 3
Census Tract 13.00 Block Groups 1, 2, and 3
Census Tract 14.00 Block Groups 1, 2, 3, 4, and 5
Census Tract 23.00 Block Groups 1 and 2
Census Tract 24.00 Block Groups 1, 3, 4, and 5
The level of abatement shall be based upon the extent to which
the business receiving the abatement creates jobs for qualified
employees and the amount of investment m teal properly
improvements, in accordance with the City of Lubbock
Commeroial Tax Abatement Policy, and with qualified
employees being defined by the Act.
ii. The City may make a refund of building permit fees for
businesses located in designated enterprise zoites as shown in
Mi. above, in accordance with the City of Lubbock Building
Permit Fee Refund Policy.
iii. 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 following enterprise zone areas within the City
are reinvestment zones in accordance with the Texas Tax Code, Chapter 312:
EZ Block Groups:
Census Tract 2.01 Block Group 1 and 2
Census Tract 2.02 Block Group I
Census Tract 3.01 Block Groups 1, 2 and 3
Census Tract 3.02 Block Groups 1, 2, 4, and 5
Census Tract 6.07 Block Groups I and 2
Census Tract 9.00 Block Groups 1 and 4
Census Tract 10.00 Block Groups 1, 2, and 3
Census Tract 12.00 Block Group 2 and 3
Census Tract 13.00 Block Groups 1, 2, and 3
Census Tract 14.00 Block Groups I, 2, 3, 4, and 5
Census Tract 23.00 Block Groups I and 2
Census Tract 24.00 Block Groups 1, 3, 4, and 5
SECTION 5: THAT the City of Lubbock City Council directs and
designates its Executive Director of Budget as the City's liaison to communicate
and negotiate with the EDT through the Bank and 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 6: THAT the City finds that X -Fab Texas, Inc. meets the
criteria for designation as an enterprise project under Chapter 2303, Subchapter F
of the Act on the following grounds:
(a.) X -Fab Texas, Inc. 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 in an enterprise zone
in the governing body's jurisdiction and at least twenty-five
percent (25%) of the business' new employees will be residents of
an Enterprise Zone or economically disadvantaged individuals; 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 X -Fab Texas, Inc. 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: TI IAT 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 if any section, paragraph, clause or provision of this
Ordinance shall for any reason be held to be invalid or unenforceable, the
invalidity or unenforceability of such section, paragraph, clause or provision shall
not affect any of the remaining provisions of this Ordinance."
PASSED by the City Council on first reading on November 7 .2013.
PASSED by the City Council on second reading on November 21 2013.
Kaf en Gibson, Ma or Pro Tent
ATTEST:
c cca Gama
Cit. Scerctar ,
APPROVED AS TO CONTENT:
Cheryl 11rock, Executhc Director of Budget
APPROVED AS TO FORM:
Linda L. Chamales. Economic Development Attorney
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