HomeMy WebLinkAboutResolution - 2013-R0371 - Adopt Tax Abatement Guidelines For Commercial Projects - 11/07/2013Resolution No. 2013-RO371
November 7, 2013
Item No. 5.6 RESOLUTION
WHEREAS, in November of 2011, the City of Lubbock approved uniform guidelines
and criteria for the application of incentives within the designated enterprise zones; and
WHEREAS, state law requires that the guidelines and criteria approved must be re-
adopted every two years, and the City of Lubbock desires to approve new guidelines for
commercial tax abatement; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby approves and adopts "Guidelines
and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise
Zones in the City of Lubbock", which guidelines and criteria are attached as Exhibit "A" and
are made a part hereof for all intents and purposes. These guidelines shall become effective
upon passage of this Resolution.
THAT this Resolution in no manner effects additional local incentives which may be
added or deleted by the City during the life of the enterprise zones as required to obtain the best
possible mix of incentives to insure the success of the enterprise zone program.
Passed by the City Council on Nnwe her 7 , 2013.
— Z 5 1414Z '
GLE . ROBWTSON, MAYOR
ATTEST:
Q , �,
Rebe ca Garza, City Secret
APPROVED AS TO CONTENT:
Cheryl Brock,
Executive Director of Budget
APPROVED AS TO FORM:
Linda Chamales,
Economic Development Attorney
11 Lc: city att/Linda/ResolutionsiRes-Tax AbatementCommercialOuidelmes-2013
July 3, 2013
RESOLUTION
WHEREAS, in November of 2011, the City of Lubbock approved uniform guidelines
and criteria for the application of incentives within the designated enterprise zones; and
WHEREAS, state law requires that the guidelines and criteria approved must be re-
adopted every two years, and the City of Lubbock desires to approve new guidelines for
commercial tax abatement; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby approves and adopts 'Guidelines
and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise
Zones in the City of Lubbock", which guidelines and criteria are attached as Exhibit "A" and
are made a part hereof for all intents and purposes. These guidelines shall become effective
upon passage of this Resolution.
THAT this Resolution in no manner effects additional local incentives which may be
added or deleted by the City during the life of the enterprise zones as required to obtain the best
possible mix of incentives to insure the success of the enterprise zone program.
Passed by the City Council on , 2013.
GLEN C. ROBERTSON, MAYOR
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
Cheryl Brock,
Executive Director of Budget
APPROVED AS TO FORM:
Linda Chamales,
Economic Development Attorney
Lc. city att/Lmda Resolutions Res -Tar AbalementCommercialGwdehnes-2013
July 3, 2013
Exhibit "A"
City of Lubbock, TX
Guidelines And Criteria Governing Tax Abatement For
Commercial Projects In Designated Enterprise Zones
In The City Of Lubbock
SECTION I. General Puruose:
The City of Lubbock (City) is committed to the promotion of high quality commercial
development in designated Enterprise Zones within the City; and to an ongoing improvement in
the quality of life for citizens residing in designated Enterprise Zones. The City recognizes that
these objectives are generally served by enhancement and expansion of the local economy. The
City will, on a case-by-case basis, give consideration to providing tax abatement, as authorized by
V.T.C.A., Tax Code, Chapter 312, as stimulation for economic development within the designated
Enterprise Zones in the City of Lubbock. It is the policy of the City that said consideration will be
provided in accordance with the guidelines and criteria herein set forth and in conformity with the
Tax Code.
Nothing contained herein shall imply, suggest or be understood to mean that the City is under any
obligation to provide tax abatement to any specific applicant (V.T.C.A. Tax Code, Section
312.002(d)). With the above rights reserved, all applicants for tax abatement will be considered
on a case-by-case basis.
SECTION H. Definitions:
As used within these guidelines and criteria, the following words or phrases shall have the
following meaning:
1. Abatement of Taxes: To exempt from ad valorem taxation all or part of the value of
certain improvements placed on land located in a designated Enterprise Zone for
commercial development purposes for a period of time not to exceed five (5) years.
2. Abatement Agreement: A contract between a property owner and the City for the
abatement of taxes on qualified property located within a designated Enterprise Zone as
authorized by V.T.C.A., Tax Code, Section 312.204(a).
3. Base Year Value: The assessed value of property eligible for tax abatement as of January
1 preceding the execution of a Tax Abatement Agreement as herein defined.
4. Commercial: Retail, service, or office
5. Designated Enterprise Zones: Enterprise zones in which the City will, on a case-by-case
basis, give consideration to providing commercial tax abatement, as authorized by
V.T.C.A., Tax Code, Chapter 312, as stimulation for economic development. The eligible
designated Enterprise Zones are:
Enterprise Zone Block Groups:
Census Tract 2.01 Block Group 1 and 2
Census Tract 2.02 Block Group 1
Census Tract 3.01 Block Groups 1, 2, and 3
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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 Groups 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
6. Expansion of Existing Facilities or Structures: The addition of buildings, structures,
machinery or equipment to a Facility.
7. Existing Facility or Structure: A Facility as of the date of execution of the Tax
Abatement Agreement, located in or on Real Property eligible for tax abatement.
8. Facility: The improvements made to Real Property eligible for tax abatement and
including the building or structure erected on such Real Property and/or any Tangible
Personal Property to be located in or on such property.
9. Improvements to Real Property or Improvements: Shall mean the construction,
addition to, structural upgrading of, replacement of, or completion of any facility located
upon, or to be located upon, Real Property, as herein defined, or any Tangible Personal
Property placed in or on said Real Property.
10. Modernization/Renovation of Existing facilities: The replacement or upgrading of
existing facilities.
11. New Facility: The construction of a Facility that has not previously existed within the
affected jurisdiction on previously undeveloped real property eligible for tax abatement.
12. New Permanent Job: A new employment position created by a business that has -Provided
employment to an employee of at least 1,820 hours annually and intended to be an
employment position that exists during the life of the abatement.
13. Owner: The record title owner of Real Property or the legal owner of Tangible Personal
Property. In the case of land leased from the City or buildings leased from a private party
or tax exempt property, the lessee shall be deemed the owner of such leased property
together with all improvements and Tangible Personal Property located thereon.
14. Productive Life: The number of years a Facility is expected to be in service.
15. Real Property: Land on which Improvements are to be made or fixtures placed.
16. Tangible Personal Property: Any Personal Property, not otherwise defined herein, and
which is necessary for the proper operation of any type of Facility.
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SECTION III. Intent of Criteria and Guidelines:
The intent of the criteria and guidelines, as herein set forth, is to establish the minimum standards
which an applicant for tax abatement must meet in order to be considered for such status by the
City.
SECTION IV. Criteria and Guidelines for Tax Abatement:
Any type of Facility will be eligible for tax abatement consideration provided such Facility meets
the following guidelines and criteria:
I. A business must clearly add to the Lubbock economic base. Compliance with this criterion
must show that if the company is qualifying on the jobs requirement that the jobs being
proposed will not simply displace other similar jobs in the community.
2. Creation of new value: Abatement may only be granted for the additional value resulting
from any of the following:
(a) modernization/renovation of existing facilities of any type as herein defined.
(b) construction of a new facility of any type as herein defined.
(c) expansion of existing facilities of any type as herein defined.
3. New or existing facilities, of any type herein defined, located in a designated Enterprise Zone,
(Designated Enterprise Zones are automatic Reinvestment Zones) or upon Real Property
eligible for such status will be eligible for consideration for tax abatement status provided all
other criteria or guidelines are satisfied.
4. Improvements to Real Property are eligible for tax abatement status.
5. The following types of property shall be ineligible for tax abatement status and shall be fully
taxed:
(a) Real Property;
(b) inventories or supplies;
(c) tools;
(d) furnishings and other forms of movable personal property;
(e) vehicles;
(f) aircraft;
(g) housing (single family and multi -family);
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(h) boats;
(i) property owned by the State of Texas or any state agency; and,
(j) property owned or leased by a member of the City Council that did not have an active tax
abatement in place before they became a member of the governing body or commission.
6. In order for a Facility to qualify for abatement, the following conditions must apply:
(a) The owner or leaseholder of Real Property must make eligible improvements to the Real
Property; and,
(b) In the case of lessees, the leaseholder must have a lease commitment of at least five (5)
years.
(c) Property must be properly zoned for the use stated by the owner in the application.
7. The amount and term of abatement shall be determined on a case-by-case basis, however, in
no event shall taxes be abated for a term in excess of five (5) years. The amount of the
taxable value of improvements to be abated and the term of the abatement shall be determined
by the City in all cases.
8. No commercial property shall be eligible for tax abatement under these guidelines and criteria
unless such property is located in a designated Enterprise Zone in accordance with
Government Code, Chapter 2303.101, and as defined in Section 11(5), and the tax abatement
application is filed with the City before construction begins.
9. The minimum economic qualification for tax abatement shall be as follows:
(a) $100,000 investment, or
(b) Ten (10) new permanent jobs and at least 30% of the business' new employees in the
zone are residents of any zone within the City.
10. Notwithstanding any of the requirements set forth in Section 9 above, the Lubbock City
Council upon the affirmative vote of three-fourths (3/4) of its members may vary any of the
above requirements when variation is demonstrated by the applicant for tax abatement that
variation is in the best interest of the City to do so, and will enhance the economic
development of the City. By way of example only, and not by limitation, the Lubbock City
Council may consider the following or similar terms in determining whether a variance shall
be granted:
(a) That the increase in productivity of the Facility will be substantial and hence directly
benefit the economy.
(b) That the increase of goods or services produced by the Facility will be substantial, and
directly benefit the economy.
(c) That the employment maintained at the Facility will be increased.
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(d) That the waiver of the requirement will contribute, and provide for the retention of
existing jobs within the City.
(e) Any other evidence tending to show a direct economic benefit to the City.
11. Taxability:
(a) The portion of the value of improvements to be abated shall be abated in accordance with
the terms and provisions of a Tax Abatement Agreement executed between the City and
the owner of the Real Property and/or Tangible Personal Property, (which agreement
shall be) in accord with the provisions of V.T.C.A., Tax Code, Section 312.205.
(b) All ineligible property, if otherwise taxable as herein described, shall be fully taxed.
12. The Lubbock City Council shall have total discretion as to whether tax abatement is to be
granted. Such discretion, as herein retained, shall be exercised on a case-by-case basis. The
adoption of these guidelines and criteria by the Lubbock City Council does not:
(a) Limit the discretion of the Lubbock City Council to decide whether to enter into a
specific Tax Abatement Agreement;
(b) Limit the discretion of the Lubbock City Council to delegate to its employees the
authority to determine whether or not the Lubbock City Council should consider a
particular application or request for tax abatement; or,
(c) Create any property, contract, or other legal right in any person to have the Lubbock City
Council consider or grant a specific application or request for tax abatement.
13. The burden to demonstrate that an application for tax abatement should be granted shall be
upon the applicant. The City shall have full authority to request any additional information
from the applicant that the Lubbock City Council deems necessary to assist it in considering
such application.
SECTION V. Tax Abatement Agreement:
1. The Tax Abatement Agreement may be executed between the owner and the City. A Tax
Abatement Agreement shall:
(a) Establish and set forth the Base Year assessed value of the property for which tax
abatement is sought.
(b) Provide that the taxes paid on the Base Year assessed value shall not be abated as a result
of the execution of said Tax Abatement Agreement.
(c) Provide that ineligible property as subscribed in Section 1V(5) hereinabove shall be fully
taxed.
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(d) Provide for the exemption of improvements in each year covered by the agreement, only
to the extent the value of such improvements for each such year exceeds the value for the
year in which the agreement is executed.
(e) Fully describe and list the kind, number and location of all proposed improvements
to be made in or on the Real Property.
(f) Set forth the estimated value of all improvements to be made in or on the Real Property.
(g) Clearly provide that tax abatement shall be granted only to the extent:
(1) The improvements to Real Property increase the value of the Real Property for the
year in which the Tax Abatement Agreement is executed; and,
(2) That the Tangible Personal Property improvements to Real Property were not
located on the Real Property prior to the execution of the Tax Abatement
Agreement.
(h) Provide for the portion of the value of the improvements to Real Property or
improvements to be abated. This determination is to be made consistent with the
provisions of Section 1V(5) of these guidelines and criteria as hereinabove set forth.
(i) Provide for the commencement date and the termination date. In no event shall the
commencement date occur prior to 90 percent completion of the project (both Real and
Personal property). In no event shall the termination date exceed a period of five (5)
years from the commencement date.
(j) Describe the type and proposed use of the improvements to Real Property or
improvements including:
(1) The type of facility.
(2) Whether the improvements are for a new facility or renovation of a facility.
(3) The nature of the construction, proposed time table of completion, a map or
drawings of the improvements above mentioned.
(4) The amount of investment and the commitment for the creation of new jobs.
(5) A list containing the kind, number and location of all proposed improvements.
(6) Any other information required by the City.
(k) Provide a legal description of the Real Property upon which improvements are to be
made.
(1) Provide access to and authorize inspection of the Real Property or improvements by
employees of the City, who have executed a Tax Abatement Agreement with owner to
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insure improvements are made according to the specifications and conditions of the Tax
Abatement Agreement.
(m) Provide for the limitation of the uses of the Real Property or improvements consistent
with the general purpose of encouraging development or redevelopment of the zone
during the period covered by the Tax Abatement Agreement.
(n) Provide for contractual obligations in the event of default by owner, violation of the
terms or conditions by owner, recapturing property tax revenue in the event the owner
defaults or otherwise fails to make improvements as provided in said Tax Abatement
Agreement, and any other provision as may be required or authorized by State law.
(o) Contain each term agreed to by the owner of the property.
(p) Require the owner of the property to certify annually to the Lubbock City Council that
the owner is in compliance with each applicable term of the agreement.
(q) Provide that the Lubbock City Council may cancel or modify the agreement if the
property owner fails to comply with the agreement.
2. Not later than the seventh day before the City (as required by V.T.C.A., Tax Code, Section
312.2041) enters into an agreement for tax abatement under V.T.C.A., Tax Code, Section
312.204, the Lubbock City Council or a designated officer or employee thereof shall deliver
to the presiding officer of the governing body of each of the taxing units in which the
property to be subject to the agreement is located, a written notice that the City intends to
enter into the agreement. The notice must include a copy of the proposed Tax Abatement
Agreement.
3. A notice, as above described in Section 2, is presumed delivered when placed in the mail,
postage paid and properly addressed to the appropriate presiding officer. A notice properly
addressed and sent by registered or certified mail for which a return receipt is received by the
sender is considered to have been delivered to the addressee.
4. Failure to deliver the notice does not affect the validity of the agreement.
SECTION VI. Application:
1. Any present owner of taxable commercial property located within the designated Enterprise
Zone of the City of Lubbock may apply for tax abatement by filing an application with the
City of Lubbock.
2. The application shall consist of a completed application form accompanied by:
(a) A general description of the improvements to be undertaken.
(b) A descriptive list of the improvements for which tax abatement is requested.
(c) A list of the kind, number and location of all proposed improvements of the Real
Property Facility of Existing Facility.
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(d) A 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.
(e) A list of any and all Tangible Personal Property presently existing on the Real Property
or located in an existing facility.
(f) A legal description of property.
(g) Address of property.
(h) A proposed time schedule for undertaking and completing the proposed improvements.
(i) A general description stating whether the proposed improvements are in connection with:
(1) the modernization of a facility (of any type herein defined); or,
(2) construction of a new facility; or
(3) expansion of a facility; or
(4) any combination of the above.
0) A statement of the additional value to the Real Property or Facility as a result of the
proposed improvements.
(k) A statement of the assessed value of the Real Property, Facility or Existing Facility for
the Base Year.
(1) Information concerning the number of new jobs that will be created or information
concerning the number of existing jobs to be retained as result of the improvements
undertaken.
(m) A statement certifying that the business, or a branch, division, or department of the
business, does not and will not knowingly employ an undocumented worker.
(n) Any other information which the City deems appropriate for evaluating the financial
capacity of the applicant and compatibility of the proposed improvements with these
guidelines and criteria.
(o) Information that is provided to the City in connection with an application or request for
tax abatement, and which describes the specific processes or business activity to be
conducted or the equipment or other property to be located on the property for which tax
abatement is sought is confidential and not subject to public disclosure until the Tax
Abatement Agreement is executed. Information in the custody of the City after the
agreement is executed is not confidential. (V.T.C.A., Tax Code, Section 312.003).
(p) The City shall determine if the property described in said application is within a
designated Enterprise Zone. if the City determines that the property described is not
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within a current Enterprise Zone, as defined in Section II(5), then they shall so notify the
applicant and said application shall then be returned to the applicant.
SECTION VII. Investment/Jobs Documentation
1. The investment commitment in the Tax Abatement Agreement will be verified as follows:
a. The City will request the value of the Real and Personal Property from the Lubbock
Central Appraisal Value, and if the value minus the base year, meets the agreement
commitment, it will serve as verification that the investment met the requirement in the
agreement; or
b. If the Lubbock Central Appraisal District value, minus the base year value, does not meet
the investment commitment in the agreement, the Company will provide invoices
documenting the actual investment to verify the investment met the investment
commitment in the agreement.
2. Confirmation of the job creation requirement will be verified as follows:
a. The company will provide the City with a copy of the State Employment report filed with
the State of Texas for the quarter ending after the date in the contract that the jobs are
required to be created.
b. Job creation will be audited annually to assure retention of jobs. Each year during the
City audit of Tax Abatement Agreements, the company will provide the City with the 41h
quarter employment report filed with the State of Texas to confirm job retention. if the
employment in the 4`h quarter report does not meet the requirement for retention of the
created jobs, the City may request the quarterly reports for the I", 2"d, and 3rd quarters of
that audit year to determine compliance.
3. The City may request and the company shall promptly provide any additional information
that the City deems necessary to confirm that the company is in compliance with the terms of
the Tax Abatement Agreement.
SECTION VIII. Default Options
In the event that the applicant or owner has entered into a Tax Abatement Agreement to make
improvements as defined in Section IV(2) above, but fails to undertake or complete such
improvements; fails to create all or a portion of the new jobs provided by the Tax Abatement
Agreement; or is in default of any of the terms or conditions contained in the Tax Abatement
Agreement; then in such event the City shall give the applicant or owner sixty (60) days
notice of such failure. The applicant or owner shall demonstrate to the satisfaction of the City
that the applicant or owner has commenced to cure such failure within the sixty (60) days
above mentioned. In the event the applicant or owner fails to demonstrate that he is taking
affirmative action to cure his failure, the City shall have three options:
(a) The City may renegotiate the Tax Abatement Agreement with the applicant or owner in
which case the current Guidelines and Criteria Governing Tax Abatement for
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Commercial Projects in Designated Enterprise Zones shall apply to the new Agreement;
or
(b) The City may determine that good cause exists to cancel the Tax Abatement Agreement
and all abatement of taxes shall terminate immediately; or
(c) The City may terminate the Tax Abatement Agreement and recapture taxes abated under
Section IX, Recapture.
2. In any of the three options in Paragraph 1 above, the City shall determine whether default has
occurred by the applicant or owner in the terms and conditions of the Tax Abatement
Agreement and shall so notify all other affected jurisdictions.
SECTION IX. Recapture
In the event that any type of facility, is completed and begins producing goods or services,
but subsequently discontinues producing goods or services for any reason, excepting fire,
explosion or other casualty or accident or natural disaster or other event beyond the
reasonable control of applicant or owner for a period of 180 days during the term of a Tax
Abatement Agreement, then in such event the Tax Abatement Agreement shall terminate and
all abatement of taxes shall likewise terminate. Taxes abated during the calendar year in
which termination takes place shall be payable to the City by no later than January 315` of the
following year. Taxes abated in years prior to the year of termination shall be payable to the
City within sixty (60) days of the date of termination. The burden shall be upon the applicant
or owner to prove to the satisfaction of the City that the discontinuance of producing goods or
services was as a result of fire, explosion, or other casualty or accident or natural disaster or
other event beyond the control of applicant or owner. In the event the applicant or owner
meets this burden, and the City is satisfied that the discontinuance of the production of goods
or services was the result of events beyond the control of the applicant or owner, then such
applicant or owner shall have a period of one y�ar in which to resume the production of
goods and services. In the event that the applicant or owner fails to resume the production of
goods or services within one year, then the Tax Abatement Agreement shall terminate and the
abatement of all taxes shall likewise terminate. Taxes abated during the calendar year in
which termination takes place shall be payable to each affected jurisdiction by no later than
January 31` of the following year. Taxes abated in years prior to the year of termination shall
be payable to the City within sixty (60) days of the date of termination. The one year time
period, hereinabove mentioned, shall commence upon written notification from the City to the
applicant or owner.
2. In the event that the applicant or owner has entered into a Tax Abatement Agreement to make
improvements to a facility of any type described in Section 1 above, but fails to undertake or
complete such improvements or fails to create all or a portion of the number of new jobs
provided by the Tax Abatement Agreement, then in such event the City shall give the
applicant or owner sixty (60) days notice of such failure. The applicant or owner shall
demonstrate to the satisfaction of the City, above mentioned, that the applicant or owner has
commenced to cure such failure within the sixty (60) days above mentioned. In the event that
the applicant or owner fails to demonstrate that he is taking affirmative action to cure his
failure, then in such event the Tax Abatement Agreement shall terminate and all abatement of
taxes shall likewise terminate. Taxes abated during the calendar year in which termination
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takes place shall be payable to the City by no later than January 315` of the following year.
Taxes abated in years prior to the year of termination shall be payable to the City within sixty
(60) days of the date of termination.
In the event that the City determines that the applicant or owner is in default of any of the
terms or conditions contained in the Tax Abatement Agreement, then in such event the City
shall give the applicant or owner sixty (60) days written notice to cure such default. In the
event such default is not cured to the satisfaction of the City within the sixty (60) days notice
period, then the Tax Abatement Agreement shall terminate and all abatement of taxes shall
likewise terminate. Taxes abated during the calendar year in which termination takes place
shall be payable to the City by no later than January 31St of the following year. Taxes abated
in years prior to the year of termination shall be payable to the City within sixty (60) days of
the date of termination.
4. In the event that the applicant or owner allows ad valorem taxes on property ineligible for tax
abatement owed to the City, to become delinquent and fails to timely and properly follow the
legal procedures for their protest or contest, then in such event the Tax Abatement Agreement
shall terminate and all abatement of taxes shall likewise terminate. Taxes abated during the
calendar year in which termination, under this section takes place, shall be payable to the City
by no later than January 31` of the following year. Taxes abated in years prior to the year of
termination shall be payable to the City within sixty (60) days of the date of termination.
In the event that the applicant or owner, who has executed a Tax Abatement Agreement with
the City, relocates the business, for which tax abatement has been granted, to a location
outside of the designated Reinvestment Zone, then in such event, the Tax Abatement
Agreement shall terminate after sixty (60) days written notice by the City to the applicant or
owner. Taxes abated during the calendar year in which termination, under this section takes
place shall be payable to the City by no later than January 3151 of the following year. Taxes
abated in years prior to the year of termination shall be payable to the City within sixty (60)
days of the date of termination.
The date of termination as that term is used in this Section IX shall, in every instance, be the
601h day after the day the City sends notice of default, in the mail to the address shown in the
Tax Abatement Agreement to the applicant or owner. Should the default be cured by the
applicant or owner within the sixty (60) day notice period, the applicant or owner shall be
responsible for so advising the City and obtaining a release from the notice of default from
the City, failing in which, the abatement remains terminated and the abated taxes must be
paid.
7. In every case of termination set forth in Paragraphs 1, 2, 3, 4, and 5 above, the City shall
determine whether default has occurred by applicant or owner in the terms and conditions of
the Tax Abatement Agreement and shall so notify all other affected jurisdictions.
8. In the event that a Tax Abatement Agreement is terminated for any reason whatsoever, and
taxes are not paid within the time period herein specified, then in such event, the provisions
of V.T.C.A., Tax Code, Section 33.01 will apply.
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SECTION X. Miscellaneous:
1. Any notice required to be given by these criteria or guidelines shall be given in the following
manner:
(a) To the applicant or owner: written notice shall be sent to the address appearing on the
Tax Abatement Agreement.
(b) To the City: written notice shall be sent to the address appearing on the Tax Abatement
Agreement.
2. The Chief Appraiser of the Lubbock Central Appraisal District shall annually assess the Real
and Personal Property comprising the Reinvestment Zone. Each year, the applicant or owner
receiving tax abatement shall furnish the Chief Appraiser with such information as may be
necessary for the abatement. Once value has been established, the Chief Appraiser shall
notify the City which levies taxes of the amount of assessment.
3. Upon the completion of improvements made to Facility as set forth in Section V(1) of these
criteria and guidelines, a designated employee or employees of the City shall have access to
the Facility to ensure compliance with the Tax Abatement Agreement.
4. A Tax Abatement Agreement may be assigned to a new owner, but only after written consent
has been obtained from the City.
5. These guidelines and criteria are effective upon the effective date as adopted by the Lubbock
City Council and shall remain in force for two years. At the end of the two-year term, these
guidelines and criteria may be readopted, modified, amended or rewritten as the conditions
may warrant.
6. Each affected jurisdiction shall determine whether or not said affected jurisdiction elects to
become eligible to participate in tax abatement. In the event the affected jurisdiction elects by
resolution to become eligible to participate in tax abatement, then such affected jurisdiction
shall adopt guidelines and criteria by separate resolution forwarding a copy of both
resolutions to all other affected jurisdictions.
7. These guidelines only apply to the City of Lubbock and any company wishing to apply for
tax abatement from other taxing jurisdictions will need to contact the applicable taxing
jurisdiction for their criteria and guidelines and requirements for applying for tax abatement.
8. In the event of a conflict between these guidelines and criteria and V.T.C.A., Tax Code,
Chapter 312, then in such event, the Tax Code shall prevail, and these guidelines and criteria
interpreted accordingly.
9. The guidelines and criteria, once adopted by the City, may be amended or repealed by a vote
of three-fourths (3/4) of the members of the Lubbock City Council during the two-year term
in which these guidelines and criteria are effective.
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