HomeMy WebLinkAboutResolution - 2009-R0074 - Give Notice Of Intent To Enter Tax Abatement Agreement- Parkway Place Lubbock LP - 02/26/2009Resolution No. 2009-R0074
Fehruary 26, 2009
Item No. 5.7
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Tax Abatement Agreement with Parkway Place Lubbock, L.P.; and
WHEREAS, V.T.C.A. Tax Code Section 312.2041 requires notice of intent of the City
Council to be given to the presiding officer of the goveming body of each taxing unit in which
the property to be subject to the Tax Abatement Agreement is located; NOW
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of the
City Council to enter into a Tax Abatement Agreement with Parkway Place Lubbock, L.P., said
notice to be given to the presiding officers of each governing body of each taxing unit having
jurisdiction in assessing taxes on the property located at 1802 Parkway Drive which is further
described in Exhibit B.
Passed by the City Council this 26th day of February 2009.
TOM MARTIN, MAYOR
ATTEST:
1--Q -4L2�� 'If:k r
Rebe ca Garza, City Secretary
APPR,OVE/D AS TO CONTENT:
Rob Alliaerr; Assis� ra Teity Manager
Development Services
APPROVED AS TO FORM:
Linda L. Chamales
Economic Development Attorney
Resolution No. 2009-R0074
EXHIBIT "A"
NOTICE OF INTENT OF THE CITY COUNCIL
OF THE CITY OF LUBBOCK TO ENTER INTO AN
AGREEMENT TO ABATE TAXES ON REAL PROPERTY
IMPROVEMENTS LOCATED AT 1802 PARKWAY DRIVE
WHICH IS FURTHER DESCRIBED IN EXHIBIT `B"
Notice is hereby given that the City Council of the City of Lubbock intends to
enter into an Agreement with Parkway Place Lubbock, L.F. to abate taxes on
improvements to real property located within Enterprise Zone 10-1 created by
Ordinance No. 2007-40116 and covering all of the subject property.
Notice is further given that the City Council of the City of Lubbock will
consider authorizing the Mayor of the City to execute a contract between the City and
Parkway Place Lubbock, L.P. for tax abatement, a draft copy of said Agreement is
attached to this notice as Exhibit "A-1" and made a part hereof for all purposes.
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'' Street, City of
Lubbock, on the 5`" day of March, 2009, at approximately 9:30 o'clock a.m.
Exhibit A-1
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
Resolution No. 2009-80074
This Agreement made this day of , 2009, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City"), and Parkway Place Lubbock, L.P. (hereinafter called
"Company");
WITNESSETII:
WHEREAS, City received an application for tax abatement from Company on the
4t' day of February 2009, for improvements to real property and tangible personal
property at 1802 Parkway Drive, and further described in Exhibit "A," which is attached
hereto and incorporated herein as if fully set forth; and
WHEREAS, upon review of the above application it was determined that the
facility and real property is located in Enterprise Zone 10-1 designated by the City for
commercial and industrial tax abatement in Ordinance No. 2007-00116 covering the
above described property; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement For
Commercial Projects in Designated Enterprise Zones in the City of Lubbock were
adopted November 8, 2007 by Resolution No. 2007-RO513 of the City Council of the
City of Lubbock. A copy of the Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones in the City of Lubbock is attached
as Exhibit `B" and incorporated herein as if fully set forth; and
WHEREAS, the City complied with all the requirements set forth in V.T.C.A.,
Tax Code, Section 312.201; and
WHEREAS, the City complied with all the criteria and guidelines as set forth in
the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in
Designated Enterprise Zones in the City of Lubbock; and
WHEREAS, the property described in Exhibit A is located in Enterprise Zone 10-
I and V.A.T.C., Tax Code, Sec. 312.2011 provides that designation as an enterprise zone
constitutes designation as a reinvestment zone without further action; and
TAX ABATEMENT AGREEMENT - PARKWAY PLACE LUBBOCK, L.P. PAGE 1
WHEREAS, the Company's application is for the construction of a new facility;
and
WHEREAS, V.A.T.C. Tax Code Sec. 312.002 and Section IV of the Guidelines
and Criteria governing Tax Abatement for Commercial Projects in Designated Enterprise
Zones in the City of Lubbock recognize construction of a new facility as being eligible for
tax abatement status; and
WHEREAS, the City Council hereby finds that all of the Guidelines and Criteria
Governing Commercial Tax Abatement, as adopted by Resolution No. 2007-RO513 have
been met by Company; and
WHEREAS, the location of the facility and surrounding real property, which are
to be the subject matter of this Agreement, are attached hereto as Exhibit "A" and made a
part of this Agreement for all purposes; and
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:
SECTION 1. Term. This Agreement shall commence January 1 of the tax year
after the required improvements are substantially completed and shall expire five (5)
years after said date.
SECTION 2. Base Year. The base year applicable to real property, which is the
subject of this Agreement, shall be 2009, 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 set forth above.
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 in the City of Lubbock is
incorporated by reference herein as if fully set out in this Agreement and fully describes
the 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:
TAX ABATEMENT AGREEMENT - PARKWAY PLACE LUBBOCK, L.P. PAGE 2
(a) All proposed new improvements to be placed upon the property at 1802
Parkway Drive which is described in Exhibit "A".
SECTION 7. Economic Qualifications. Company agrees to expend funds
necessary to qualify for tax abatement by constructing a new facility, 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 (Exhibit
"B") on the property described in Exhibit "A". A description of the kind, number and
location of all proposed improvements is attached in Company's application, Exhibit "C"
and incorporated herein as if fully set forth.
SECTION 8. Value of Improvements. In accordance with V.A.T.C., Tax Code,
Section 312.204(a), which requires the Owner of the property to make specific
improvements or repairs to the property in order to be eligible for tax abatement,
Company will expend one million six hundred thousand ($1,600.000) for the construction
of a new facility to be located within the enterprise zone created by Ordinance No. 2007-
00116.
SECTION 9. City Access to Property. Company covenants and agrees that City
shall have access to the property, which is the subject matter of this Agreement, upon
reasonable notice and during normal businesshours, and that municipal employees or
their agents shall be able to inspect the property to insure compliance with the terms and
conditions of Company's application for tax abatement, attached as Exhibit "C", and this
Agreement.
SECTION 10. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate taxes on eligible property according to the following schedule.
Year l:
100%
Year 2:
80%
Year 3:
60%
Year 4:
40%
Year 5:
20%
SECTION 11. Type of Improvements. Company proposes to construct a new
facility as described in Exhibit "C". Company further states that the proposed
improvements to the property above mentioned commenced on the 17a' day of Februa ,
2009, and shall be completed within approximately six (6) months from said date.
Company may request an extension of the above date from City in the event
circumstances beyond the control of Company necessitate additional time for completion
of such improvements and such consent shall not unreasonably be withheld. Company
shall provide a copy of the certificate of occupancy or other proof of completion within
ten days of completion of improvements.
TAX ABATEMENT AGREEMENT - PARKWAY PLACE LUBBOCK, L.P. PAGE 3
SECTION 12. Limitation on Use. Company agrees to limit the use of the
property set forth in Exhibit "A" to commercial and/or industrial 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
enterprise zone during the term of this agreement.
SECTION 13. Recapture. 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 Guidelines and Criteria for Tax Abatement adopted by
Resolution No. 2007-RO513 of the City Council of the City of Lubbock.
SECTION 14. Certification. Company agrees to certify annually in writing to the
governing body of each taxing unit that the owner is in compliance with the terms of the
Agreement.
SECTION 15. Compliance. The City may cancel or modify this Agreement if
Company fails to comply with the Agreement.
SECTION 16. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK PARKWAY PLACE LUBBOCK, L.P.
Assistant City Manager c/o Quincy White
Development Services PO Box 3893
P.O. Box 2000 Lubbock, TX 79452.
Lubbock, Texas 79457 Phone: 806-790-0576
TAX ABATEMENT AGREEMENT - PARKWAY PLACE LUBBOCK, L.P. PAGE 4
SECTION 17. Effective Date. Notwithstanding anything contained herein to the
contrary, this Agreement shall not be effective until such time as it has been finally
passed and approved.
EXECUTED this day of
PARKWAY PLACE LUBBOCK, L,P
QUINCY WHITE
ATTEST:
Lc: cityattlLinda/ Tax Abatement Agmt — Parkway Place
February 17, 2004
119
CITY OF LUBBOCK
A Municipal Corporation
TOM MARTIN, MAYOR
ATTEST:
Rebecca Garza
City Secretary
APPROVED AS TO CONTENT:
Rob Allison, Assistant City Manager
Development Services
APPROVED AS TO FORM:
Linda L. Charnales
Economic Development Attorney
TAX ABATEMENT AGREEMENT — PARKWAY PLACE LUBBOCK, L.P. PAGE 5
Exhibit B Resolution No. 2009-R0074
PERIMETER SURVEY OF A 4.735 ACRE TRACT IN
SECTION 2, BLOCK A, LUBBOCK COUNTY, TEXAS
Metes and Bounds description of a 4.735 acre tract of land in Section 2, Block A,
Lubbock County, Texas being a portion of that tract described in Volume 1117, page 357
of the deed records of Lubbock County, Texas and further described as follows:
Beginning at a 3/8" iron rod found for the southwest corner of this tract at the northwest
corner of Lot 1, Ramsey Addition to the City of Lubbock, Lubbock County, Texas as
shown by the plat, map or dedication deed thereof recorded in Volume 1265, page 453 of
said records;
Thence N 0° 18'20" W. along the east line of a 20 foot alley, a distance of 280.77 feet to a
cross chiseled on concrete in the south line of the Parkway Drive for the northwest corner
of this tract;
Thence N. 56°24'30" E. along said south line, a distance of 567.93 feet to a'/z" iron rod
with cap set for the northeast corner of this tract at the northwest corner of Lot 1, East
Lubbock Library Branch, an addition to the City of Lubbock, Lubbock County, Texas as
shown by the plat, map or dedication deed thereof recorded in Volume 4814, page 83 of
the real property records of Lubbock County, Texas;
Thence S. 0° 18'20" E. along the west line of said Lot 1, East Lubbock Library Branch, a
distance of 588.09 feet to a'/z" iron rod with cap set in the north line of said Lot 1,
Ramsey Addition for the southeast corner of this tract;
Thence S. 89° 10'00" W. along the north line of said Lot 1, Ramsey Addition, a distance
of 474.77 feet to the place of beginning.
Opp- if
0721
Exhibit B Resolution No. 2009-80074
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