HomeMy WebLinkAboutResolution - 2009-R0164 - Tax Abatement Agreement - Thomas Hurley And Hurley Companies - 04/27/2009ation No. 2009-RO164
27, 2009
Ho. 5.22
RESOLUTION
.ESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
CHAT the Mayor of the City of Lubbock BE and is hereby authorized and
to execute for and on behalf of the City of Lubbock a Tax Abatement Agreement
Lomas Hurley, individually and the Hurley Companies dba Hurley Packaging,
Essence Bottling, and Hurley Containers and all related documents. Said Agreement is
attached hereto and incorporated in this Resolution as if fully set forth herein and shall be
included in the minutes of the Council.
by the City Council this 27th day of April , 2009.
TOM MARTIN, MAYOR
TTEST:
rarza, City Secretary
PPRQVED AS TO CONTENT:
b �,Wson si-stailt City Manager
velonment Services
ROVED AS TO FORM:
a L. Chamales,
iomic Development Attorney
cityatt / Linda / Res -'rax Abatement- Hurley
ch 23.2009
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
Resolution No. 2009-RO164
This Agreement made this 27th day of April , 2009, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City"), and with Thomas Hurley, individually and the Hurley
Companies dba Hurley Packaging, Essence Bottling, and Hurley Containers (hereinafter
called "Company");
WITNESSETH:
WHEREAS, City received from Company on the 23 d day of January, 2009 an
application for tax abatement for improvements to real property and tangible personal
property at 2902 Municipal Drive, Lot S, Lubbock Industrial Park Addition to the City of
Lubbock, Lubbock County, Texas which is further described in Exhibit "A"; and
WHEREAS, upon review of the above application it was determined that the
facility and real property is located in the Reinvestment Zone designated by the City in
Ordinance No. 2009-00023covering the above described property; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement For Industrial
Projects in the City of Lubbock was adopted by Resolution No. 2007 -ROS 14 of the City
Council of the City of Lubbock. A copy of the Guidelines and Criteria Governing Tax
Abatement for Industrial Projects 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 Industrial Projects in the City
of Lubbock; and
WHEREAS, the City passed Ordinance No. 2009-00023 creating a reinvestment
zone for commercial and industrial tax abatement, said zone including the area which is
described in the attached Exhibit "A"; and
AGREEMENT - THE HURLEY COMPANIES PAGE I
WHEREAS, the application received by City from Company is an application for
the expansion of an existing facility; and
WHEREAS, V.A.T.C., Tax Code, See. 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 Industrial Projects in the City of Lubbock recognizes expansion of an existing facility
as being eligible for tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and
Criteria Governing Tax Abatement, as adopted by Resolution No. 2007-RO514 have
been, or will be, 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 and be of no
further force and effect five (5) years after such 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 the value for any given year
within the term of this Agreement exceeds the base year taxes.
SECTION 5. Property Ineligible for Tax Abatement. The property described and
set forth in Section IV(6) of the Guidelines and Criteria Governing Tax Abatement for
Industrial Projects in the City of Lubbock (Exhibit "B") is incorporated by reference
herein as if fully set out in this Agreement and fully describes the property ineligible for
tax abatement.
AGREEMENT - THE HURLEY COMPANIES PAGE 2
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 improvements to be placed upon the property which is
described in Exhibit "A".
(b) All eligible tangible personal property, owned by Company, placed in or
upon the property set forth in Exhibit "A", which does not include any
equipment and personal property owned by Company and already located
in the existing facility. Eligible property includes any new equipment
bought for this project up to 90 days prior to the receipt of the application.
(c) It is further understood that all items affixed to the new 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 subparagraph (a) above set forth.
SECTION 7. Economic Qualifications. Company agrees to expend funds
necessary to qualify for tax abatement by expanding and modernizing an existing facility,
as set forth in Section IV(3)(b) of the Guidelines and Criteria Governing Tax Abatement
for Industrial Projects 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(x), 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 seven hundred thousand ($700,000) for the expansion of an
existing facility and ten million one hundred thousand ($10,100,000) on new equipment
to be located within the reinvestment zone created by Ordinance No. 2009-00023.
SECTION 9. Product Distribution. Company will certify to City that 50% or
more of their products are distributed outside of Lubbock County within 24 months of the
start of operation of the new equipment, as required in Section IV 1(b) of the Guidelines
and Criteria Governing Tax Abatement for Industrial Projects in the City of Lubbock.
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, upon
reasonable notice and during normal business hours, and that municipal employees shall
be able to inspect the property and documents necessary to insure compliance with the
terms and conditions of Company's application for tax abatement, attached as Exhibit
"C", and this Agreement.
AGREEMENT - THE HURLEY COMPANIES PAGE 3
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 l:
100%
Year 2:
80%
Year 3:
60%
Year 4:
40%
Year 5:
20%
SECTION 12. Type of Improvements. Company proposes to expand an existing
facility as described in Exhibit "C". Company further states that the proposed
improvements to the property above mentioned shall commence on the 1 St day of March,
2009, and shall be completed August 30, 2009. 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.
SECTION 13. 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 14. 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 in Exhibit
«B »
SECTION 15. 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 16. Compliance. The City may cancel or modify this Agreement if
Company fails to comply with the Agreement.
SECTION 17. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK THE HURLEY COMPANIES.
Assistant City Manager Tom Hurley
Development Services 2902 Municipal Drive
P.Q. Box 2000 Lubbock, TX 79403
Lubbock, Texas 79457 Phone: 806.745.5440
AGREEMENT - THE HURLEY COMPANIES PAGE 4
Fax: 806.745.7180
SECTION 18. 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 by the City Council.
EXECUTED this 27th day of April , 2009.
THE HURLEY COMPANIES
11 A - W--.� ,
Fell
Lc: cityatt/Lindal Tax Abatement Agmt — Hurley
Manch 23, 2009
CITY OF LUBBOCK
A Municipal Corporation
TOM MARTIN, MA �'OR
ATTEST:
Q'i"e,
Rebe a G-arza
City Secretary
APPR VEDA ~ TO CONTENT:
t
Rob A son, As ' t City Manager
Development Services
APPROVED AS TO FORM:
Linda L. Chamales, Economic
Development Attorney
AGREEMENT - THE HURLEY COMPANIES PAGE 5
Resolution No_ 2009-RO164
Exhibit A
Exhibit `B" Resolution No. 2009-RO164
Guidelines and Criteria Governing Tax Abatement For
Industrial Projects In The City of Lubbock
SECTION I. General Pnroose:
The City of Lubbock is committed to the promotion of high quality development in all parts of the City of
Lubbock, Texas; and to an ongoing improvement in the quality of life for the citizens residing within the
Affected Jurisdiction. The Affected Jurisdiction recognize that these objectives are generally served by
enhancement and expansion of the local economy. The Affected Jurisdiction 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 Affected Jurisdiction. It is the policy of the Affected
Jurisdiction 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 Affected Jurisdiction is
under any obligation to provide tax abatement to any applicant and attention is called to V.T.C.A., Tax
Code, Section 312.002(d). With the above rights reserved all applications for tax abatement will be
considered on a case by case basis.
SECTION II. 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 reinvestment zone designated for economic
development purposes as of the date specified in the Tax Abatement Agreement for a period
of time not to exceed ten (10) years.
2. Affected Jurisdiction: City of Lubbock.
3. Abatement Agreement: (1) A contract between a property owner and an Affected
Jurisdiction for the abatement of taxes on qualified property located within a reinvestment
zone; or, (2) a contract for the abatement of taxes between an Affected Jurisdiction and a
certified air carrier who owns or leases Real Property located within the reinvestment zone or
Personal Property or both as authorized by V.T.C.A., Tax Code, Section 312.204(e)
4. Advanced Technologies: advanced manufacturing which requires higher skills and results in
higher wages and investment.
5. Base Year Value: The assessed value of property eligible for talc abatement as of January I
preceding the execution of an Abatement Agreement as herein defied.
6. Distribution Center Facility: A building or structure including Tangible Personal Property
used or to be used primarily to receive, store, service or distribute goods or materials.
7. Expansion of Existing Facilities or Structures: The addition of buildings, structures,
machinery or equipment to a Facility.
8. 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.
2007 Industrial rax Abatement Guidelines
November 8, 2007
9. 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.
10. Information and Data Center: Facility used to house computer systems and associated
components, such as telecommunications and storage systems. The main purpose of the
facility is running applications that handle the core business and operational data of
organizations, off-site backups and other informational operations.
11. 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.
12. Manufacturing Facility: A Facility which is or will be used for the primary purpose of the
production of goods or materials or the processing or change of goods or materials to a
finished product.
13. Medical Services: Facilities such as hospitals, specialty hospitals and other like facilities that
are classified under North American Industrial Classification System Code 622.
14. ModernizationlRenovation of Existing Facilities: The replacement or upgrading of existing
facilities.
15. New Facility: The construction of a Facility on previously undeveloped real property eligible
for tax abatement.
16. 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.
17. Other Basic Industry: A Facility other than a distribution center facility, a research facility, a
regional service facility or a manufacturing facility which produces goods or services or which
creates new or expanded job opportunities and services a market of which 50% of revenues
come from outside of Lubbock County, Texas.
18. Owner: The record title owner of Real Property or the legal owner of Tangible Personal
Property. In the case of land leased from an Affected Jurisdiction 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.
19. Productive Life: The number of years a Facility is expected to be in service.
20. Real Property: Land on which Improvements are to be made or fixtures placed.
21. Regional Services Facility: A Facility, the primary purpose of which is to service or repair
goods or materials and which creates job opportunities within the Affected Jurisdictions.
22. Reinvestment Zone: Real Property designated as a Reinvestment Zone under the provisions
of V.T.C.A., Tax Code, Section 312.202.
2007 Industrial Tax Abatement Guidelines
November 8, 2007
23. Research Facility: A Facility used or to be used primarily for research or experimentation to
improve or develop new goods and/or services or to improve or develop the production
process for such goods and/or services.
24. Tangible Personal Property: Any Personal Property, not otherwise defined herein and which
is necessary for the proper operation of any type of Facility.
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 Affected Jurisdiction.
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:
1. To qualify for Tax Abatement, the company must meet both of the following criteria:
a) The modernization or expansion of an existing facility of any type as herein defined or
construction of a new facility of any type as herein defined.
b) Producer, manufacturer or distributor of goods and services of which 50 percent or more
are distributed outside of Lubbock County.
2. In addition to the aforementioned, the taxing jurisdiction will consider abatement only if the
company meets one of the following criteria:
a) One of the following target industries:
i) Advanced Technologies and Manufacturing
ii) Value-added Agricultural Production including Food Processing and Machinery
iii) Research and Development
iv) Medical Services (as defined in Section II Definitions)
v) Warehouse/Distribution
vi) Corporate Headquarters of a Regional/National Service Center
vii) Information and Data Centers
b) The project is not included as a target industry, but has the potential of generating
additional significant economic development opportunities to Lubbock
3. The company must meet one of the following criteria:
a) The project will add at least $1 million in real property improvements, or $2
3
2007 tndustrial Tax Abatement Guidelines
November S, 2007
million in new personal property, or 25 new permanent jobs if the
facility is a new company to Lubbock.
b) The project will add at least $500,000 in real property improvements, or $1 million in
new personal property, or 15 new permanent jobs if the facility is an existing company.
4. New or existing facilities,of any type herein defined, located in a reinvestment zone or upon
Real Property eligible for such status will be eligible for consideration for tax abatement status
provided that all other criteria and guidelines are satisfied
5. Improvements to Real Property are eligible for tax abatement status.
b. 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;
h) boats;
i) hotel accommodations;
j) motel accommodations;
k) retail businesses;
1) property owned by the State of Texas or any State agency; and,
m) property owned or leased by a member of the affected Jurisdiction that did not have an
active tax abatement in place before they became a member of the governing body or
commission.
7. 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.
4
2007 Industrial Tax Abatement Guidelines
November 8, 2007
c) It is recommended that facilities located within the certificated territory of the City's
municipally owned electric utility, Lubbock Power and Light (LP&L) utilize LP&L for
electrical services during the term of the abatement.
8. In reinvestment zones, 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 ten (10) years.
The amount of the taxable value of Improvements to be abated and the term of the abatement
shall be determined by the municipality in all cases where the property for which tax
abatement is applied for is within the City limits of the City or by the County of Lubbock in all
cases where the property for which tax abatement is applied for is outside of the City limits of
a municipality, but within the County of Lubbock, except that a reinvestment zone that is a
state enterprise zone is designated for the same period as a state enterprise zone as provided
by Chapter 2303, Government Code. The authority of all other taxing units shall be as set
forth in V.T.C.A., Tax Code, Section 312.206.
In enterprise zones, the governing body of each taxing jurisdiction may execute a written
agreement with the owner of the property. The agreement may, but is not required to, contain
terms that are identical to those contained in the agreement with the municipality, county, or
both, whichever applies, and the only terms for the agreement that may vary are the portion of
the property that is to be exempt from taxation under the agreement and the duration of the
agreement.
4. No property shall be eligible for tax abatement unless such property is located in a
reinvestment zone in accordance with V.T.C.A., Tax Code, Section 312.202 and the tax
abatement application is filed with the taxing jurisdiction before construction begins.
10. Notwithstanding any of the requirements set forth in 'Section IV Subsection 3, the governing
body of an Affected Jurisdiction upon the affirmative vote of a three-fourths (314) 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 Affected Jurisdiction to
do so and will enhance the economic development of the Affected Jurisdiction. By way of
example only and not by limitation the governing body of an Affected Jurisdiction 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.
d) That the waiver of the requirement will contribute and provide for the retention of
existing jobs within the Affected Jurisdiction.
e) Any other evidence tending to show a direct economic benefit to the Affected
Jurisdiction.
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 Affected
Jurisdiction and the owner of the Real Property and/or Tangible Personal Property,
2007 Industrial Tax Abatement Guidelines
November 8„ 2007
(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 governing body of each Affected Jurisdiction 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 governing body of an Affected.
Jurisdiction does not:
a) Limit the discretion of the governing body to decide whether to enter into a specific tax
abatement agreement;
b) Limit the discretion of the governing body to delegate to its employees the authority to
determine whether or not the governing body 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 governing
body 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. Each Affected Jurisdiction to which the application has been directed
shall have full authority to request any additional information from the applicant that the
governing body of such Affected Jurisdiction deems necessary to assist it in considering such
application.
SECTION V. Criteria and Guidelines for Creation of Reinvestment Zone:
1. No Property shall be eligible for tax abatement unless such property is located in a
reinvestment zone designated as such in accordance with V.T.C.A., Tax Code, Section
312.202. To be designated as a reinvestment zone an area must meet one of the following:
a) Substantially arrest or impair the sound growth of the municipality or county creating the
zone, retard the provision of housing accommodations, or constitute an economic or
social liability and be a menace to the public health, safety, morals, or welfare in its
present condition and use because of the presence of
1. a substantial number of substandard, slum, deteriorated, or deteriorating structures;
2. the predominance of defective or inadequate sidewalks or streets;
3. faulty size, adequacy, accessibility or usefulness of lots;
4. unsanitary or unsafe conditions;
5. the deterioration of site or other improvements;
b. tax or special assessment delinquency exceeding the fair value of the land;
7. defective or unusual conditions of title;
8. conditions that endanger life or property by fire or other cause; or,
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2007 Industrial Tax Abatement Guidelines
November B, 2007
9. any combination of these factors;
a) Be predominantly open and, because of obsolete platting, deterioration of
structures or site improvements, or other factors, substantially impair or arrest
the sound growth of the municipality;
b) Be in a federally assisted new community located in a home rule municipality or
in an area immediately adjacent to a federally assisted new community located in
a home rule municipality;
c) Be located entirely in an area that meets the requirements for federal assistance
under Section 119 of the Housing and Community Development Act of 1974 (42
U.S.C. Section 5318);
d) Encompass signs, billboards, or other outdoor advertising structures designated
by the governing body of the municipality for relocation, reconstruction, or
removal for the purpose of enhancing the physical environment of the
municipality, which the legislature declares to be a public purpose; or,
e) Be reasonably likely as a result of the designation to contribute to the retention
or expansion of primary employment or to attract major investment in the zone
that would be a benefit to the property and that would contribute to the economic
development of the municipality.
2. For purposes of this Section, federally assisted new community is a federally assisted area:
a) That has received or will receive assistance in the form of loan guarantees under Title X
of the National Housing Act (12 U.S.C., Section 1749aa et seq); and,
b) A portion of which has received grants under Section 107 (a)(1) of the Housing and
Community Development Act of 1974, as amended.
3. The governing body of a municipality, as required by Section 312.201, or a county, as
required by V.T.C.A., Tax Code, Section 312.401, shall hold a public hearing on the
designation of an area within its jurisdiction as a reinvestment zone. The burden shall be on
the owner of the property sought to be included in the zone or applicant for the creation of the
reinvestment zone to establish the following:
a) That the requirements of Subsection 1 of this Section have been met.
b) That the improvements sought are feasible and practical.
4. No later than the seventh day before the date set for the above public hearing notice of such
hearing shall be:
a) Published in a newspaper having general circulation in the Affected Jurisdiction.
b) Delivered in writing to the presiding officer of the governing body of each taxing unit that
includes in its boundaries Real Property that is to be included in the reinvestment zone.
5. At the public hearing above described in Subsection 3 above, any interested person is entitled
to speak and present evidence for or against the designation of such reinvestment zone.
2007 Industrial Tax Abatement Guidelines
November S. 2007
6. At the conclusion of the hearing described in Subparagraph 3 above, the governing body shall
enter its findings as follows:
a) That the applicant or owner has or has not met his burden as hereinabove set forth, and/or,
b) That the improvements sought are or are not feasible and practical.
c) That the proposed improvements sought will or will not be a benefit to the land to be
included in the reinvestment zone and to the Affected Jurisdiction after the expiration of
an agreement entered into under V.T.C.A., Tax Code, Section 312.204.
7. An application for the creation of a reinvestment zone shall not be granted unless the Affected
Jurisdiction considering such application enters affirmative findings to Subparagraphs a, b,
and c of Subsection 6 above set forth.
8. At the conclusion of the public hearing herein required and upon the affirmative finding of the
governing body as required by Subsection 7 above set forth, the governing body may
designate a reinvestment zone in accordance with the provisions of V.T.C.A., Tax Code,
Sections 312.201 or 312.401, whichever Section shall be applicable under the premises.
9. The designation of a reinvestment zone expires five years after the date of the designation and
may be renewed for periods not to exceed five years, except that a reinvestment zone that is a
state enterprise zone is designated for the same period as a state enterprise zone as provided
by Chapter 2303, Government Code. The expiration of the designation does not affect an
existing tax abatement agreement made in accordance with V.T.C.A., Tax Code, Section
312.201 through Section 312.209.
10. Designation of an area as an enterprise zone under the Texas Enterprise Zone Act, Chapter
2303, Subchapter C, Texas Government Code, constitutes designation of the area as a
reinvestment zone under Subchapter B of the Property Redevelopment and Tax Abatement
Act without further hearing or other procedural requirements other than those provided by the
Texas Enterprise Zone Act, Chapter 2303, Subchapter C, Texas Government Code.
SECTION V1. Tax Abatement Aereement:
1. After the creation of a reinvestment zone as hereinabove authorized a Tax Abatement
Agreement may be executed between the owner and any Affected Jurisdiction. 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 IV, Subsection 6, hereinabove
shall be fully taxed.
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.
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2007 Industrial Tax Abatement Guidelines
November 8, 2007
e) Fully describe and list the kind, number and location of all of the 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 of
improvements to be abated. This determination is to be made consistent with the
provisions of Section IV, Subsection 6, of these guidelines and criteria as hereinabove set
forth.
i) Provide for the commencement date and the termination date. In no event shall said dates
exceed a period of ten years.
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, modernization of a facility, or
expansion 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 Affected Jurisdiction.
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 Affected Jurisdiction, who have executed a Tax Abatement Agreement
with owner to 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 the contractual obligations in the event of default by owner, violation of the terms
or conditions by owner, recapturing property tax revenue in the event owner defaults or
9
2007 Industrial Tax Abatement Guidelines
November 8, 2007
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 governing body of each taxing
unit that the owner is in compliance with each applicable term of the agreement.
q) Provide that the governing body of the municipality may cancel or modify the agreement
if the property owner fails to comply with the agreement.
2. Not later than the seventh day before a municipality or the County of Lubbock(as required by
V.T.C.A., Tax Code, Section 312.2041 or Section 312.402) enters into an agreement for tax
abatement under V.T.C.A., Tax Code, Section 312.204, the governing body of a municipality
or a designated officer or employee thereof or the governing body of the county of Lubbock 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 municipality or the County of Lubbock as the case may be,
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 Subparagraph 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 VII. Application:
1. Any present owner of taxable property located within an Affected Jurisdiction may apply for
tax abatement by filing an application with the county of Lubbock, when the Real Property or
Tangible Personal Property for which abatement is sought is located within the County of
Lubbock but outside of the City limits of any City or with the appropriate City when the Real
Property or Tangible Personal Property for which abatement is sought is located within the
City limits of a municipality located wholly or partially within Lubbock County.
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 or Existing Facility.
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.
10
2007 Industrial Tax Abatement Guidelines
November 6, 2007
0 A proposed time schedule for undertaking and completing the proposed improvements.
g) 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 (of any type herein defined); or,
3. expansion of a facility (of any type herein defined); or,
4. any combination of the above.
h) A statement of the additional value to the Real Property or Facility as a result of the
proposed improvements.
i) A statement of the assessed value of the Real Property, facility or Existing Facility for the
Base Year.
j) 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.
k) Any other information which the Affected Jurisdiction, to which the application has been
directed, deems appropriate for evaluating the financial capacity of the applicant and
compatibility of the proposed improvements with these guidelines and criteria.
1) information that is provided to an Affected Jurisdiction 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 an Affected
Jurisdiction after the agreement is executed is not confidential. (V.T.C.A., Tax Code,
Section 312.003).
m) The Affected Jurisdiction to whom the application for tax abatement has been directed
shall determine if the property described in said application is within a designated
reinvestment zone. If the Affected Jurisdiction determines that the property described is
not within a current reinvestment zone then they shall so notify the applicant and said
application shall then be considered both as an application for the creation of a
reinvestment zone and a request for tax abatement to be effective after the zone is created.
SECTION VIII. Default Options
In the event that the applicant, owner or lessee 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 Affected Jurisdiction to whom the application for tax
abatements was directed shall give the applicant or owner sixty (60) days notice of such
failure. The applicant or owner shall demonstrate to the satisfaction of the Affected
Jurisdiction above mentioned that the applicant or owner has commenced to cure such failure
11
2007 Industrial Tax Abatement Guidelines
November 8, 2007
within the sixty (60) days above mentioned. In the event the applicant owner, or lessee fails to
demonstrate that he is taking affirmative action to cure his failure, the Affected Jurisdiction
shall have three options:
(a) The Affected Jurisdiction may renegotiate the Agreement with the applicant, owner or
lessee, in which case the current Guidelines and Criteria Governing Tax Abatement for
Industrial Projects in the City of Lubbock shall apply to the new Agreement; or
(b) The Affected Jurisdiction may determine that good cause exists to cancel the Agreement
and all abatement of taxes shall terminate immediately; or
(c) The Affected Jurisdiction may terminate the Agreement and recapture taxes abated under
Section VIII. Recapture.
In any of the three options in subparagraph 1 above, the Affected Jurisdiction to which the
application for tax abatement was directed shall determine whether default has occurred by the
applicant, owner or lessee in the terms and conditions of the Tax Abatement Agreement and
shall so notify all other Affected Jurisdictions. Cancellation or termination of the Tax
Abatement Agreement by the Affected Jurisdiction to which the application for tax abatement
was directed shall constitute simultaneous action to all Tax Abatement Agreements of all other
Affected Jurisdictions.
SECTION IX. Recapture
1. In the event that any type of facility, (as defined in Section II, Subparagraphs 5, 6, 7, 8, 10, 11,
12, 14, 18, 20) 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 even 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 each Affected Jurisdiction by no later than January 31st of the
following year. Taxes abated in years prior to the year of termination shall be payable to each
Affected Jurisdiction 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 Affected Jurisdiction to who the
application for tax abatement was directed that the discontinuance of producing goods or
services was as a result of fire, explosion, or other casualty or accident of natural disaster or
other event beyond the control of applicant or owner. In the event that applicant or owner
meets this burden and the Affected Jurisdiction is satisfied that the discontinuance of the
production of goods or services was the result of vents beyond the control of the applicant or
owner, then such applicant or owner shall have a period of one year 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 st of the following year. Taxes abated in years prior to the year of
termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of
termination. The one year time period, hereinabove mentioned, shall commence upon written
notification from the Affected Jurisdiction to the applicant or owner.
12
2007 Industrial Tax Abatement Guidelines
November 8, 2007
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 I 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 Affected Jurisdiction to
whom the application for tax abatement was directed shall give the applicant or owner sixty
(60) days notice of such failure. The applicant or owner shall demonstrate to the satisfaction
of the Affected Jurisdiction, 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 takes place shall be
payable to each Affected Jurisdiction by no later than January 31st of the following year.
Taxes abated in years prior to the year of termination shall be payable to each Affected
Jurisdiction within sixty (60) days of the date of termination.
In the event that the Affected Jurisdiction to whom application for tax abatement was directed
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 even the Affected Jurisdiction, 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 Affected Jurisdiction 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 each Affected Jurisdiction by no later than January 31st of the
following year. Taxes abated in years prior to the year of termination shall be payable to each
Affected Jurisdiction 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 any Affected Jurisdiction, to become delinquent and fails to timely and
properly follow the legal procedures for their protest or contest, then in such even 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 subparagraph, takes
place shall be payable to each Affected Jurisdiction by no later than January 31st of the
following year. Taxes abated in years prior to the year of termination shall be payable to each
Affected Jurisdiction within sixty (60) days of the date of termination.
In the even that the applicant or owner, who has executed a tax abatement agreement with any
Affected Jurisdiction, 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 Affected Jurisdiction to
the Owner/Applicant. Taxes abated during the calendar year in which termination, under this
subparagraph takes place shall be payable to each Affected Jurisdiction by no later than
January 31 st of the following year. Taxes abated in years prior to the year of termination shall
be payable to each Affected Jurisdiction within sixty (60) days of the date of termination.
6. The date of termination as that term is used in this Subsection VIII shall, in every instance, be
the 60th day after the day the Affected Jurisdiction 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 owner or Applicant within the sixty (60) day notice period, the
Owner/Applicant shall be responsible for so advising the Affected Jurisdiction and obtaining a
release from the notice of default from the Affected Jurisdiction, failing in which, the
abatement remains terminated and the abated taxes must be paid.
13
2007 industrial Tax Abatement Guidelines
November 8, 2007
7. In every case of termination set forth in Subparagraphs 1, 2, 3, 4 and 5 above, the Affected
Jurisdiction to which the application for tax abatement was directed shall determine whether
default has occurred by Owner (Applicant) in the terms and conditions of the Tax Abatement
Agreement and shall so notify all other Affected Jurisdictions. Termination of the Tax
Abatement Agreement by the Affected Jurisdiction to which the application for tax abatement
was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all
other Affected Jurisdictions.
8. In the event that a tax abatement agreement is terminated for any reason what so ever 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.
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 owner or applicant: written notice shall be sent to the address appearing on the Tax
Abatement Agreement.
b) To an Affected Jurisdiction: 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 Affected Jurisdictions which levy taxes of the amount of assessment.
3. Upon the completion of improvements made to any type of Facility as set forth in Section
VIII, Subparagraph 1 of these criteria and guidelines a designated employee or employees of
any Affected Jurisdiction having executed a tax abatement agreement with applicant or owner
shall have access to the Facility to insure 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 all Affected Jurisdictions which have executed such an agreement with the
applicant or owner.
5. These guidelines and criteria are effective upon the date of their adoption by an Affected
Jurisdiction and shall remain in force for two years. At the end of the two year period 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 even the Affected Jurisdiction elects by
resolution to become eligible to participate in tax abatement, then such Affected Jurisdiction
shall adopt these guidelines and criteria by separate resolution forwarding a copy of both
resolutions to all other Affected Jurisdictions.
7. 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.
14
2407 Industrial Tax Abatement Guidelines
November 8, 2047
8. The guidelines and criteria once adopted by an Affected Jurisdiction may be amended or
repealed by a vote of three-fourths of the members of the governing body of an Affected
Jurisdiction during the two year term in which these guidelines and criteria are effective.
15
Exhibit C
Ii4.GL.7�. PS• - • v 1
Resolution No. 2009-80164
APPLICATION FOR INDUSTRIAL TAX ABATEMENT IN LUBBOCK COUNTY
FILING INSTRUCTIONS:
This apefication must be submitted to the approoriate taxin "urisdiction before any construction begins to be
eligible for tax abatement. This filing acknowledges familiarity and assumed conformance with "GUIDELINES
AND CRITERIA GOVERNING TAX ABATEMENT FOR SELECTED TAXING UNITS CONTAINED WITHIN LUBBOCK
COUNTY" (Copy attached). This application will become a part of any tater agreement or contract, and knowingly
false representations thereon will be grounds for the voiding of any later agreement or contract.
ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO:
Sectlon I - APPLICANT INFORMATION
Date of Application: 1 1,
Applicant
Company
Address:
City of 'Lubbock
Business Development Department
P.O. Box 2000
1625 13"' Street, Suite 105
Lubbock, TX 79457
(806) 775-2019
Phone: -2 V �12 ^�
Applicants Representative on this project:
Name
Address:
Phone: --) `tL- ,IrLt W
Fax:
Type of Ownership: �< Corporation [ ] Partnership [ ] Proprietorship
Total Current Number Employees: _
Corporate Annual Sales Per Year:���b
Annual Report Submitted? [ ] Yes No
I NDAPP2000[1 ]
Industrial Tax Abatement Application
Page 2
Section II - FACILITY INFORMATION
Place a check mark in the box on those statements which are applicable to your company :
(a) This application is for a: [ ] New Facility [ ] Expansion [� Modernization
(b) Is the company a producer, manufacturer or distributor of goods and services of which 50 percent or more are
distributed outside of Lubbock ?(If yes, provide documentation as Attachment 1)
X Yes [ ] No
(c) Check the following target industry which is applicable to your company
[ ] Manufacturing Facility: Electronics/Electrical/Assembly, Semiconductor Fabrication
[ ] Value-added Agricultural Production including Food Processing and Machinery
[ ] Med Tech Research/Manufacturing/Assembly
[ ] Aviation/Avionics Production/Rehab
[ ] Warehouse/distribution
[ ] Corporate Headquarters of a Regional/National Service Center
The project is not included in the above target industries, but has the potential of generating additional
significant economic development opportunities in Lubbock. (Provide documentation)
(d) [ ] 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) [ ] New Company to Lubbock
Existing Company
(f) If New Company checked, which of the following statements apply to the project.-
[
roject:
[ ] The project will add at least $1 million in real estate assessed valuation
[ ] The project will add at least $2 million of personal property assessed valuation
[ ] The project will add at least 25 new permanent jobs
(g) If Existing Company checked, which of the following statements apply to the project:
K The project will add at least $500,000 in real estate assessed valuation
-W The project will add at least $1 million of personal property assessed valuation
X The project will add at least 20 new permanent jobs
(h) Address of proposed facility: L)
(i) Legal description of proposed facility:
(�} The proposed facility// is located in.-
School
n:School District:
City:h,
11
Industrial Tax Abatement Application
Fuge 3
(k) Describe product or service to be provided:
Section III - FACILITY DESCRIPTION
Please attach the following.-
Attachment
ollowing:Attachment 2
(a) A general description of the improvements to be undertaken (example: modernization of manufacturing facility
located at 4501 Peach Street and purchase of new manufacturing equipment).
(b) A descriptive list of the improvements for which tax abatement is requested, including:
(1) 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.
(c) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing
facility.
(d) A proposed time schedule for undertaking and completing the proposed improvements.
Attachment 3
(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.
Attachment 4
(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).
Section IV - ECONOMIC IMPACT INFORMATION C�
Part A — Current Investment in Existing Improvements: /
Part B — Permanent Employment Estimates:
(1) If existing facility, what is the current plant employment: l 6 „
(2) Estimated number of new jobs to be created and time frame for creation of jobs:
New Jobs Time Frame a GRUB
Industrial Tax Abatement Application
Page 4
(3) Opening of improvements: (Month) r of (Year) 2009 .
Part C — Permanent Payroll Estimates:
(1) If existing facility, what is the current plant payroll:
(2) Estimated amount of new payroll
Part D — Construction and Employment Estimates:
(1) Construction start: Month �� Year 20U�_
(2) Number of construction jobs: At Start Peak le) T
(3) Number of man-years:
Part E — School District Impact Estimates:
Give Estimated number of: Families transferred to area
Children added to 1SD's 2S
Finish 44�_
Part F — City Impact Estimates:
(1) Volume of treated water required from City cJUJ gallons per day.
(2) Volume of effluent to be treated by Cityo)l )c2 gallons per day.
(3) Please provide a statement on planned water and sewer treatment methods, and disposal of effluent if
the facility is to be located outside City systems.
(4) Has permitting been started? ❑ Yes ❑ No
Part G — Estimated Appraised Value on Site:
LAND PERSONAL
PROPERTY
Value of Existing Facility
Before New Construction
(From Central Appraisal District) 'L -Y4
Value of New Improvements NA /0
Estimated Total Value After
Improvements
IMPROVEMENTS
lndust>ral Fax Abatement Application
Page 5
Part H - Variance.
(a) Is a variance being sought under Section IV 9(d) of the "Guidelines"? [ ] Yes JA No
(b) If "Yes", attach any supplementary information required.
Section V - OTHER AGREEMENT APPLICATIONS
(a) Has applicant made application for abatement of this
-facility by other taxing jurisdictions or counties?
[ l Yes N' No
(b) If "Yes", please provide:
(1) Dates of Application:
(2) Hearing Dates:
(3) Name of Jurisdiction(s):
(4) Name of Contact(s):
(4) Attach any letters of intent to abate.
Section VI - DECLARATION
To the best of my knowledge, the above information is an accurate description of project details.
F'6041 M l
W � � �
Company • ' "Ignature
.
Printed Name of G6mpany Oficial
Title of Company Official
J
Hurley Companies
Projected Sales Information
March 4, 2009
Existing Sales by Company
Hurley Packaging of Texas
Hurley Containers
Essence Bottling
Subtotal Existing Sales
Projected New Sales with New
Machinery
Total Existing and Projected
,c 3- 9-09
10,000, 000 10,000,000 100.0%
21,824,086 12,249,884 56.1%
% Outside
Sales outside
Lubbock
Total Sales
Lubbock County
County
8,707,210
940,125
10.8%
401,770
36,068
9.0%
2,715,107
1,273,691
46.9%
11,824,086
2,249,884
19.0%
10,000, 000 10,000,000 100.0%
21,824,086 12,249,884 56.1%
Statistical Summar
fkp4 CL"Aka� L�
WATT poultry St Y
Top Egg Companies - Millions of Layers in Procluc-tion, Dec_
31, 2001
�
Company Name
City
State
2001
2000
1999
Cal -Maine Foods, Inc,
Jackson
MS
20.4
20.4
16.2
19.9
I'
Rose Acre Farnis
Michael foods Egg Products Co
Seyrnour
Minneapolis
IA
MN
16.0
14.0
13.5
15.0
D Coster Eg farms
Turner
Crotors
ME
O i
12.8
10.51
12.6
105
116
los
Buckeye Egg Farm
Litchfield
MN
8.0
7.0
5,{1
`iparbct, COMpanies
Dutchland Farms L.P.
Lancaster
PA
7.3
4.3
4.37
(includes all contract ferns)
lvloark, L.L.C. dricludes Norco)
Neosho
,4t()
6.4
6.5
6.
Fod RKviery Equity
Fort Recovery
OH
6.3
5.9
a.0
5.9
8.0
5.7
Midwest Poultry See, ices, I P.
hientone
Newberry
IN
Sc
5.5
5.5
4.8
ISE America, Inc.
Hillandale Farms Inc.
Lake City
FL
5.4
5..}
43
4.6
4.0
Daybreak Foods
Lake Mills
WI
TX
5.0
4.8
4.8
4.8
Mahard Egt; Farrms
C�crlden Chral Eggs
Prosper
Renville
MN
4.7
2.8
'?.0
3.0
Fremont Farms of Iowa LLD
Oskaloosa
Ekibois
to
IN
4.2
3.7
4.2
2.9
4.2
Wabash Valley Produce
seatile
WA
3.3
3.0
2.7
National Food Co.
Sonstegard Fonds, Inc.
Sioux Falls
SID
3.0
25
2.5
valley FrP:h Foods
Turlock
Boling
CA
TX
3.0
2.9
3.2
3.2
3.1
3.0
Maxim ERIC Farm
Crystal Farms
Chestnut NIM.
GA
2.8
2.8
2.7
2.5
Creighton Brothers LLC
Warsaw
West Mansfield
IN
OH
2.5
2.5
2.5
2.5
2.5
Dav aY Egg Farm, Inc.
Ko(koff Egg fames
Fitchville
CT
2.5
2.8
2.7
Tantlm Farm Service, Inc,
Dover
FL
MI
2.5
2.4
2.4
2.3
2.4
2.2
Herbruck Poultry Ranch
Saranac
Versailles
OH
2.4
2.4
2.4
Weaver Bros.
Cypress Foods Inc.
Winter Haven
FL
2.3
2.4
2.4
PiIg , rim's Pride CuLlt.
Pittsburg
Bear
TX
DE
2.1
2.1
2.3
1.7
_'.0
1.8
ged Bird Farm
Esbenshade Farms
Mt. lov
Humboldt
PA
IA
2.0
2.0
1.9
2.1
2.�1
2.0 -
FarmEIS Products
Enter. & Nula d Fcxxls
Turlot k
CA
2.0
2.4
2.4
Gem}�erle
Kreider Farms
ivianheim
FA
2.0
2.0
2.0
Land Makes
`iassila,n
OH
CA
2.0
2.0
2.0
2.4
1.0
2.4
McAaally Ranch LLC
Yucaipa
Zephyr Hills
FL
2.0
2.0
).9
Zephyr Egg, C:u.
Dixie Egg Cortt$UM
lacksetm+ille
FL
1.6.
1.4
1,3
Hemmelf am & Sons
Coldwater
01-1
1.5
1.5
1.4
Delta Egg Farm LLC
Delta
Hamilton
UT "
MI
1.5
1.5
1-4
Iiarnllton Farm $ure'all (C001))
Hickman's Egg Ranch
Glendale
AZ
1.5'
-1.2
1.2
I.S. West ,Milling Co.
Niodesto
(A
1.5
1.3
1.3
1.5
1.L -
Sunrise Acres
Hudsonville
Roy
AM
WA
1.5
1.3
1.9
1.0
Wilcox Farm;, Inc.
Braswell Milling
Nashville
NC
1.3
4.5
1.8
S& R Fgg Farms, Inc.
Whitewater
WI
CSR
1.3
1.3
1.1
1.3
1.3
1.3
Farms
WmpertFarm
Oak
OH
1.2
1,2
1.3
Morning Fresh Farms, Inc.
Platt0ville
co
1.2
1.1
1.1
Pine Hill Egwg Ranch
Ramona
Cleafield
G4
IA
1.2
1,2
1.8
1.3
1.8
1.3.
Sunaest - "i Farms
Co.
Yucaipa
CA
1.1
l .l
1.2
Flcx�vcr Egg
Olson Farnrs, Inc.
Ontario
CA
1.1
1.1
1.1
Radlo Bras
George's Commerial Egg
Watertown
Siloam springs
ME
AR-
1.1
1.1
1.3
1.0
Ritewood Egg Farms
Franklin
Summers
ID
AR
1.0
1.0
2.0
2.0
Cox 6 Co., Inc.
Creekwood Farms
Lake ,%Rills
WI
1.0
1 .0
Dean's Eggs' Inc.
Marshall
IA
1.0
1.0
Demler Egg Ranch
San Jacinto
CA
CA
1.0
1.0
1.0
1.0
Sunrise Farms
I'daluma
- xR
The Hurley Packaging project has the potential to provide additional significant economic
development opportunities by taking 30 tons a day of waste newspapers and corrugated boxes
out of the waste stream and buy them from various entities_ Also the raw materials made from
this operation will appeal to many entrepreneurs to create earth friendly products here in
Lubbock.
The improvements that will be done at 2902 Municipal Drive include the purchase of new
manufacturing equipment that is involved in recycling of waste newspapers and corrugated
boxes. We will also be modernizing our existing building with more electrical power, gas lines
and water reclamation equipment.
@EMERY
MOULDING MACHINES
Emery Place, Suite 1
340 Ferrier Street Markham (Toronto)
Ontario, Canada L311 2ZG
Tel: 1-905-470RM
Fax 1-905470-5505
E4nail: eid(cDemervintemational.com
Website: ww wemerymachines.com
f IzrAf/ 1/r,,Jct a `� 8 1'
QUOTATION AGREEMENT: 54R-08-100
Emery Rotary Workhorse 54 Pulp Moulding Machine
To: Tom Hurley,
Hurley Packaging of Texas Inc,
A Texas Corporation,
2902 Municipal Dr.
Lubbock, Texas, 79416
USA
Phone 806-745-7180
From: Alan R. Emery
Emery Silfurtun Inc.
340 Ferrier St. Suite 1
Markham (Toronto),
Ontario CANADA
K2H 7E9
Tel :905-170-6066
Fax :905-470-6505
Date: IV", 2008
The Workhorse is a continuous rotary machine with a 54 inch platen that has 8 moulding faces
and four transfer faces.
Emery Silfurtun Inc. (hereinafter referred to as the "Seller") agrees to sell to Hurley Packaging of
Texas (hereinafter referred to as "the Buyer"), agrees to buy on the terms and conditions as herein
provided, the equipment, parts and machinery herein specified (hereinafter referred to as
"Equipment").
EMERY SILFURTUN INC.
Page: 2
EQUIPMENT: The following Equipment will be supplied by the Seller to the Buyer:
1001 Stock and Water Handling System (above ground configuration)
a Fibre recovery cleaning system
a Stainless steel pulper
o All necessary pumps, piping, agitators, and valves
o Nigh density cleaner to remove foreign particles from the stock
o Above ground stainless steel tanks or above -ground concrete tile -lined water chests for
raw stock, refined stock, white water, clarified water, and spare for overflow to be built in
Texas where possible to avoid shipping the tanks. (Buyer's Expense)
1002 One continuous cycle Moulding Machine 54 inch rotor for egg trays
o Mix box
o Octagonal stainless steel moulding drum platen size 14 x 46.5 x 5
o All drive and timers
o Stainless steel vat and mixing chamber complete with showers
0 4 position rotary transfer
o Main base frame for moulder, transfer and dryer conveyor head shaft
o All necessary solenoid valves, limit switches and air controls
1003 Continuous Dryer Gas Fired
0 165 foot long continuous multiple pass gas fined dryer, of appropriate width, connected to
and synchronized with the pulp moulder.
o Complete with insulated circulating and exhaust fans including appropriate motors
o Gas bumers and controls in insulated refractory type combustion chambers
o One complete set of aluminum dryer trays and necessary conveyor chain, sprockets and
shafts. (The Buyer must supply Imperial Oil and Grease Inc. Mollub Alloy #1722 high
temperature oil for lubricating the chain).
a Automatic dryer discharge mechanism for egg trays which includes vacuum lift transfer
system cam to discharge the products from the dryer onto up to 4 conveyors.
o Automatic conveyors to a shrink wrap tunnel
a Shrink wrap tunnel for bundles of 140 egg trays
1004 Auxiliaries
o Metering pump
o Stainless steel strainers for showers etc.
o All needed pumps for handling shower and moulder vat
EMERY SII.FURTUN INC.
Page: 3
o Main vacuum pump with at least 5000 cfm at 26" Hg. complete with appropriate motor and
silencer separator
o Vacuum separator tank for above.
o All needed compressors
o Dryer circulating fan and exhaust motors.
o All drive systems
o High pressure pumps
o Required reinforced plastic tanks for chemicals including plastic manual pumps
o Tools for installation and maintenance
o Air operated hoist for moulding dies
0 5 ton chain hoist for maintenance over the transfer (5 ton monorail trolley by Buyer).
o Air operated grease pump for the Lincoln automatic grease dispenser for the moulding
machine
1005 Process Instrumentation
o Complete machine feed level control stock and water blending system
o Complete vacuum separator tank level control system
o Complete Lincoln automatic greasing system for the moulder and transfer
o Automatic lubrication system for the dryer chain
o Lab instruments as follows:
o One Canadian freeness tester, Robert Mitchell type calibrated to PPRIC standards
1006 Instrument and Control Panels
o Instrument and motor control console CPI
o Control panels for all stock preparation skids
1007 Technical Services Supplied
o Assembly drawings supplied with Agreement:
o Process drawings to be supplied to the Buyer after the order has been placed
o ,Final Erection Drawings
o )obsite Service
o Supply of erection supervisor for the final adjustment of the moulder and dryer assemblies
o Supply of technical adviser to assist in initial operation of the plant
o The Buyer or associates agree not to hire or contract for the services of any of the Seller's
people or technicians directly, but it must contract with the Seller for any such services of
the Seller's people.
EMERY SII.FURTUN INC.
Page: 4
1008 Assembly in Toronto
Wet end only, partial crating for containerized ocean shipment, documentation and loading onto
trucks in Toronto.
a Trial assembly in Toronto machine shop and crating for moulder and transfer and
accessories. The special metal crate is non -returnable and becomes the Buyer's property
after shipment.
o For dryer fans and dryer shell
o For balance of equipment in other sections.
1009 Egg Tray Forming and Transfer Dies
o The 544-165 machine uses 4 egg tray dies in width and has 8 drum faces to fill. Therefore
32 vacuum forming egg tray dies and 16 matching transfer dies are required. We
recommend 2 spare vacuums forming dies and 2 transfer dices for maintenance and re-
screening purposes: 34 Egg Tray Vacuum Forming Dies and 18 Transfer Dies
1011 Jobsite Installation Materials
o Jobsite installation materials complete with drawings and tools
(Note: The Buyer shall supply at his expense and responsibility a 2000 KVA substation and
transformer (or generator) and cables up to Seller's motor control panel)
1013 Spare Parts
o The Seller has estimated the parts that will be needed for two years and additional supply
of a further amount of spares deemed as a normal amount that should be on hand at all
times
GRAND TOTAL for the above Equipment FOB Toronto in Canadian Funds (herein referred to as
the "Contract Price"):
Price = CAN $10,536,258
ARTICLE 2000
TERMS OF PAYMENT
2001 For the Equipment, the Buyer shall pay the Contract Price asset out in Article 1000 in full to
the Seller on the following terms:
(a) By Wire Transfer: 30% of the total Contract Price in Canadian funds or equivalent
Page: 18
IN WITNESS WHEREOF the parties hereto have hereunto applied their respective corporate seals,
attested by the hands of their respective officers duly authorized in that behalf, as of this 6 day of
%wrtM '2008, at Lubbock, Texas, United States of America.
HURLEY PACKAGING OF TEXAS INC. EMERY SILFURTUN INC.
(Buyer)
r
f /
(Buyer's Witness)
Per:
Name: t�
(Seller)
Fridrik Jonsson CEO
(Seller's Witness)
Per:Wim� 1�
:/� T%�Name1 -11J
12131108
2008 Federal Depreciation Schedule
Page 1
t
Client 3698
Hurley Packaging 4f Texas, Inc.
75-2576591
11/12108
11:40AM
Nor
<a
Dur Special 179/ P60C Salvage
Q,
Date
Dale
Cos!/
Bus. 179 Depr. Bones/ Dec. U. /Basis
Depr.
Prim
Current
CD
-�L_ _ Desujpbnn
Acqt6red
Snid
}Licit
Pd WinmL Alirrp. 5n�lleK gip(` Eadur[a QRS _
0epr, h[alhr✓1 JILale
r-
CD
Farm 1120
r-
w
m
ArwrUzation
z
25 LOC Membership
9111/98
5,000
5,000
0
0
IM Ameruatian
5SW
0 0 0 0 0
5,000
0
0
C)
CL
Auto / 3ransW EquipmerA
r
uu
--6
cc
7 1-- 5P trailer
4/01/95
5,500
5,500
5,500
SIL W
10
4
=
12 Z 55' Great Came Serr}i Tri
10/27/91
3/31 /O9
19,115
19,125
19,125
S/L MQ
10
0
21 2.17 Fruehauf 5' Trks
7/22188
15,500
15,500
14,531
S/L h1Q
10
-06293
969
22 19% Great Darp 5Y Tdr
7122/98
9,621
9,()21
9,019
S/L MQ
10
.06250
(02
30 2Trailers
2/15/99
11,716
11,716
10.450
SJL
10
1,172
53 2002 Dodge 1T Truck
7/01102
3075
10,463
24,412
24,412
27008 HY
5
0
55 20 Chevy Silverado
8/78/02
28291
7,650
20,631
12,58x1
2{ADB HY
5
1,175
65 2004 Lems
12/13/43
4/Zl /08
39,313
10,713
28,EM
11,4{63
MOB MQ
5
09580
1,028
71 2002 Freightliner Truck
8/16/04
29,721
29,221
29,221
2004E HY
3
0
72 2003 Chevy Impala
10/01/04
IW3
16,843
12,285
20ODB HY
5
.11520
1,675
76 Gcuseneck Flaltvd Trailer
1111/05
5,600
5,600
3,150
200DB HY
7
-12490
699
114 Gdt Cart
MUM
/Q -C)8
Z50
250
91
2DDDB In
1
.18220
46
lib 41996 Yarn
11/14106
48,324
48,324
20,779
20DDB MQ
5
121111}
11,018
148 2004 Jeep liberlyJAng3e
1/13/07
12,370
12,370
2,474
20006 HY
5
.32000
3,958
149 2008 Chew Silverado Irk
10/10/07
30,570
30„570
6,114
2WDB HY
5
.32DOO
9,782
0
0
166 2008 Lexus GS4
4/21/611
53,203
1%%0
41,243
MOB HY
5
30000
0
0
169 2007 Buick LeSabre
6123108
24145
10.964
13,145
2DMS HY
5
20030
0
0
Tata1 Auto / Trmport Equipment
389,427
0 21,520 28,833 0 0
338,674
181,139
34724
i
c�
G)
12131108
2008 Federal Depreciation Schedule
Page 2
Client3698
Hurley Packaging ofTekas, Inc.
75-2576591
1182-108
11:40AM
PrioJ
Cur Special 179/ prior Salvage
G)
Date
Date Cost/
Bus. 179 Depr. bonus/ Dom. Bal. /Basis
Oepr.
Prior
Current
AQ- llesmpPlian
Apoired
SnId Hasis
Pct_ Hnnus AllowSiL Dew, n= Rediwin aa_sisnp—_ _nr tnrtmd 1iie- Rare
-
Dor
r--
rn
Fumitureand Fix'ksres
r—
ur�
CDD
1 Tables
3/31/95
189
189
t89
SA HY
19
0
2 Table & chairs
12/21/95
203
203
Z03
SIL W
10
0
9 Literabxe displals
9/29/91
275
275
275
SIL MQ
7
0
14 File Cabinets & Shelves
2J21/98
226
226
225
20008 MQ
l
0
15 Desk
2/23/98
/� . Q� 994
99
99t
20DDB MQ
7
0
rl
16 2 Filing Cabinets
2/05/98
298
2913
293
2WD3 h4Q
7
0
w
17 File Cabinets
6/24/98
549
549
519
20008 MQ
7
D
°r
18 PrWre
6/15/%
129
129
129
c'GODB MO
7
D
ZE
24 Retigerator--plant
9/14/96
3%
395
396
20086 MQ
7
0
26 5 Office Chairs
10/02/98
647
647
647
20008 MQ
7
0
27 Fddingawirs
12/17/98
269
269
269
20ODB MQ
7
0
34 5 Tables & 28 Chairs
6/29/99
387
387
387
Mill HY
7
0
41 Desk
2/01/00
420
420
42.0
240013 HY
7
0
48 Tables & Chairs
7124/01
2,121
2,iZl
2,025
MOB HY
7
WW
96
49 Office Furniture
10/15/01
244
204
194
20005 HY
7
!4460
1D
51 Monitor and CD Burner
5103/02
2,365
2,365
0
20ODB HY
5
0
52 Office Chairs
6/21/02
226
226
0
20005 HY
7
D
54 Table and Chairs
8/05/02
432
432
0
20CDB HY
7
0
56 2 DeIl Computers
8/22/02
2,072
2,072
0
20009 HY
5
0
58 Desk & Conference Table
10/04/02
1,15W
10
0
200DO HY
1
0
62 Photocopier
3/10/03
780
78D
0
20ODB MQ
7
D
a
0
68 2 Dalt Computers
5/11/04
1,913
957
9%
791
20005 HY
5
.11520
110
69 Office Fumture & blinds
6/1)2/04
9,563
4,782
4,781
3,287
2DODB HY
7
.18930
427
0
73 Dell ConiyWefs
10/28/04
3,627
1,814
1,813
1,500
2DOD6 He
5
.11520
2D9
�i
96 New Office Fumilure
8/31/05
3,261
3,P61
1,835
2ODDB HY
7
.12490
407
i
G';
rn
rn
r-
crn
n
0
z
ca
Q
v
a
a
w
I
rz
a
0
0
0
CD
ry
12131/08
Client 3698
1 I 2708
2008 Federal Depreciation Schedule
Hurley Packaging of Texas, Inc.
Page 3
75.2576591
11:40AM
Wall Furnilure and Fixtures 53,273 0 6,155 21,499 0 0 23,619 15,372 2,307
kriprarements
94 Plant f1DDnng
8/11105
3,652
3'.52
PriDr
15ODB HY
15
.077D0
281
95 Security System
8129105
Dur
Special
1791 Prior Salvage
2OODB HY
7
.12490
701
97 New Bulking Sign
Date
Date Cost! Bus. 179
Depr.
Nanus/ Dec. Bal. /Basis
Depr.
Prior
.12490
Current
-1K- Description
Acquired
Sold Basis Pct- Bonus
1t11nw. Win- Dent- NpL__ $priudn R3sis Depr- Melbad_ J.ife- Ratp rppr-
99 13mputer Fumituie
9112/05
480
.12490
331
on
271 20008 HY
1 .12490
60
107 Desk, Chair
12/30/05
866
.12490
568
866
487 2DOD8 14Y
7 -12450
I(8
108 6 Office Chairs
1/05105
503
.12490
903
0
2DODB MO
7
0
125 AMEX -Office Furn. -Shaun
3121107
2,052
.12490
2,052
0
200013 R
7
0
127 BcrnWy Credit Plan -Shaun
3/27/07
834
A1700
KA
0
2DDD3 HY
7
0
130 'Cable and four chairs
4/24/07
495
.07700
495
0
MOB HY
7
0
136 Sams: 2-1able5 & Chairs
6/07107
2,187
2,187
0
20ODD HY
7
0
167 Office Furniture
5/05/08
12,310
5,155
0
66155
2OODB HY
7 .14290
880
Wall Furnilure and Fixtures 53,273 0 6,155 21,499 0 0 23,619 15,372 2,307
kriprarements
94 Plant f1DDnng
8/11105
3,652
3'.52
842
15ODB HY
15
.077D0
281
95 Security System
8129105
5,612
5,512
3,158
2OODB HY
7
.12490
701
97 New Bulking Sign
8/31/05
3,746
3,746
2,107
20ODB HY
7
.12490
468
98 Sample roorrr floor
9/(4/05
2,649
7,649
1,491
2OODB HY
1
.12490
331
100 Offrte & Breabraam
10/10/05
4,550
4,550
2,580
200D8 HY
1
.12490
568
101 10 Plantation Shutters
10/11105
1,901
1,901
1,070
2WOB HY
7
.12490
237
1D2 Ac Designs
1.0/31/05
544
544
306
2WW HY
7
.12490
68
103 Office Remodel
11/04/05
4,468
4,468
1,029
I:M HY
45
A1700
344
104 A/C Repair
11/23/05
9,677
9,677
4230
15ODB HY
15
.07700
T43
109 Metar Covering
3/18/06
1,700
1,700 0
200DB 610
7
0
124 Routine MainU Bruce Thos
3102/07
6009
6fa 0
20ODB HY
1
0
125 LuNery
3/30/07
1,027
11027 0
20ODB HY
7
0
135 AO -State Fenoe-Chain Lin
6/28/07
4661
2,667
133
15008 HY
15
.OM
2S3
137 The Dow Co- severity di
6/21/07
1,203
1,203
17
SIL MIA
39
.UYA
31
138 Abbef *me Cent_r
7119/07
8,301
8,301
98
S/L M?A
39
.OZ564
213
CJs
12/31/08
,t
Client 3699
11112/08
Mz
a
P
0
v
0
CO
0
cv
2008 Federal Depreciation Schedule
Hurley Packaging of Texas, Inc.
Page 4
75.2576591
13 ,40AM
Prior
Cur Special
179/ Krim Salvagz
Dale
Date Cost/ Bus_
179 Depr_
Bonus/ Dec. Bal. /Basis
Depr.
F7ior
Cuarent
Ik- -- r)mt[]Qbna
ArQlj ted
Cold Basis 2.LL Rnnum. Alirur.
-qp-Npr DEfIL._._Reductn Basis
Dept_ fdetAid _Lk-
Rale
Depr
140 Arrov Coast -Hew Office
7/30/07
3,900
31900
46
SIL MM
39
02564
i00
159 RDrrf Repair/Front Door
1/15/0B
1,185
593
5%
1SCID61tY
15
.05000
30
150 5 FNrm(e drive in DDar
1/29/08
1,183
892
891
150DB HY
15
_05000
45
161 RF Bryrer paving Road
2/19/013
35;25
17,613
17,612
15MB HY
15
,OM
881
162 Darns [fork
2/26108
2,055
1,13128
1,021
15008 HY
15
.05000
51
163 RF Beyer balance on pavin
3106/08
29)23
14,612
14,611
15ODB HY
15
.0�,r000
731
168 Fence
6/23/08
2,790
1,395
1.395
200DBitY
1D
.100M
140
110 Outside DDar
6/30108
1,210
605
605
HOD6 HY
10
.10000
61
175 Remodel 6at morn
9/13/08
4,092
4,092
SIL IAM
39
.00749
31
TDlallmpaDvaunenls
133,775
D 36,738
3.335 0 0
93,701
15,087
6,310
Total Dapreciahon
516,414
0 64,613
5&657 0 0
457,904
211,598
41,341
farm 1120, Schedule A
Alachimy and Equipment
3 Bosb(Lh stitcher
4101/95
16,911
16,911
16,911
S/L HY
10
0
4 Baivtaw
4/01195
3,187
3,187
3,187
SIL HY
t0
-
0
5 Potdevir cernetrr/labler
4/01195
4,683
4,683
4,693
S/L HY
10
0
6 Slitter/Swyer SURI
6/30/95
2302
23,482
23,482
S/L HY
10
0
a Tape machiw-
3/11/96
7,525
7,525
7,575
S/L HY
10
0
10 NEW 0 Ve System
7/CO/97
9,162
9,162
9,162
S/L IAQ
10
0
11 1998 Catripillar Forklift
10/14/97
19,536
15,536
19,536
Pt10DB MQ
7
0
13 19MOrecutt>r
11/11/97
39,168
39,768
39,768
29MBM0
7
0
19 2Strappers
4/28/98
1,871
1,871
1,671
20008 MQ
7
0
20 Paper Shearer
5/12/96
1,5(10
1,501)
1,500
200D8 MQ
7
0
CD
r
rn
r-
10
0
co
z
CL
0
0
a
0
�v
12131108
Client 3698
111121DB
2008 Federal Depreciation Schedule
Hurley Packaging of Texas, Inc.
Page
75-2576591
11:40AH
Pnar
Cur
Special 179/ Prior Salvage
Nte Date
Cast/ Bus. 179
Depr. Beaus/ Dec. Bal. IBasis
Derr.
Prior
Durrent
-HU-
D ripl an
Arqjired Sold
Raids _ELL-Ranvs
Ailrnu SiL„p_ l)rpr`Mom
Basis epr_ _ MShrd1 - jt
Rate
23
Missan Faklitt
(/22/98 ',J?
6,812
6,812
6,812
2Di418 Mq
1
0
28
Fkxo Folder G1uer
12/31/5@ AJ J-
133,039
133,0(19
121,399
S/L MQ
30
.08750
11,640
29
labor - Fluo Fdder Glue
12131/S8
12,570
12,570
11,470
S/L MQ
14)
_08750
1,100
31
AddfI Crxst Rex Gluer
1/31199
2,154
4154
1,828
S/L HY
10
13000
215
32
Fddt'I Coat Am Gluer
2/28/93
1,032
1,4)32
876
S/L HY
10
.10000
103
33
Conveyor
5/07/99
1,515
1,516
1,516
2004$ HY
7
0
35
lose FII Machne
8/20/M
11,000
11,000
11,000
20DDBHY
7
0
36
YEncal Saw
8/20/99
5,000
5,000
5,OW
23DD6 HY
7
0
37
Horizontal Saw
8/20/99
5,400
50
5;000
2OODB HY
1
0
38
Builer[or Peanut Machine
11/24/39
3,248
3,248
3,248
2DODB HY
7
0
33
Flexr Print Section
12/17/99
2,821
2,817
2,827
ZOODB HY
7
0
40
Foam Dimutter
12/17/90
4,590
4,5
4,:00
MB HY
7
0
42
Vick% Flem Printer Stott
8/25100
106,000
106,001}
17,7513
S/L HY
10
.10003
10,600
43
LubtwckElect(JumbePress
10/D21D0
2,000
4OD)
1,500
SIL HY
IQ
_1M
200
44
Stretch Wrap Macfine
4/24/01
6,923
6,923
6,614
20DD4 HY
7
.0446D
309
45
911 Tray Former
4/19/01
MAO
36,66D
35,026
200DR HY
7
A4460
1,634
46
Band Saw
7/16/01
4,000
4,900
3,823
20ODB KY
7
M4GO
177
47
Band Saw Dust System
7/18/01
483
483
460
20ODB HY
7
_04450
23
50
51' cutter
2/25/01
4,700
4,70D
0
240DB HY
7
0
5/
Enterpark 8tacNne
9/13102
4,289
4,189
0
200413 HY
7
0
%
Recycling Mactine
2105/03
12,500
12,500
0
MOB MQ
7
0
60
Air Cornpressrsr
2/14/03
6,956
b050
0
20DD15 MQ
7
D
61
Strapper
2/06/03
18,965
18,965
0
20008 MQ
7
0
53
Pneumatic Hand Tool
4/15/03
1,607
1,607
0
20ODB 14Q
7
0
64
Small Welder
5/116/03
243
243
0
20ODB MQ
7
0
67
Used Hexo Press
2119101
450,200
450.OW
327,015
24)0DB MQ
7
.08750
35,375
70
P4W on #121 Fleroo old
7113AA
5,400
5,400
1712
2DDDH HY
7
.98'9617
482
CD
12/31108
Client 3698
11112MS
co
CD
rn
rt
rn
r
0
cv
2008 Federal Depreciation Schedule
Hurley Packaging of Texas, Inc.
Page
75-2576591
11 A0AN
Prior
Cur
Speaal 179/ Prior
Salvage
Hate
Date
Cost/ Bus. 119
Ow. Bonus/ Dec. Bal.
/basis Depr.
Prior
Durtent
lid.. Desmintinn
NAbired
Sdd basis . Po;t_ _Brim%
Allaw. 1%p De,nr_ Depr.
RedLitM Rases r)ppf_.. ___ Me tnd JJjL Rate
74 Walk-in Cooler
11/15/04
fd
4,000
4,(100
2,152
20008 HY
7
.08930
357
75 Oiecultrs Take -off Unit
12/15/(A
10,000
10,000
6,876
20046 BY
1
,0893A
893
77 Install Air compressor
1/03105
641
641
0
20009 HY
7
0
78 Air Compressor for Flew
1/01/05
20,193
20,193
11,366
2ODD8 HY
1
.12490
2,523
79 Dryer [or Compressor
1128105
2,659
2A59
1,436
ZOO DB HY
7
.12490
332
80 2 forklifts w/Clamps
1/18/05
lei -
9,500
9,500
5,341
20ODB HY
7
.12490
1,18]
81 300 Pallet flacks
1/18/05
t0,200
10,200
5,740
260DB HY
7
.12490
1,214
82 NK)utter Installation
2/02/05
%3
963
0
20MB HY
1
0
83 NE w Section - Diecutter
3/14/05
2,125
2,125
1,196
20MB BY
7
.12490
265
84 New Section - Instal l
3118/05
785
785
443
20ODB HY
1
.12490
%
85 Scissors Lift
4129/05
6,000
6,000
3,375
200DS KY
7
.12490
749
86 SUetsh-Wrap Machine
5/13/05
8,155
8~155
4,588
20ODB HY
7
.124%
1,019
87 Dryer for Compressor #2
5/118/05
2,294
244
1291
24006 HY
1
.12490
a/
88 Fleur Upgrade
6/08!05
14,092
14,092
7,930
20006 HY
1
.12490
1,750
89 Clue Machine #2
7/02/05
11,500
11,5w
6,420
2DOOB BY
7
.12490
1,436
90 Forklilt Batteries
7/15/05
1,611
1,611
907
20006 HY
7
.1249D
201
91 Forklift F.stenders
7/15/05
200
200
113
2U00B W
7
.12490
25
92 Conveyors - Nes Plant
7/24/05
34,500
34,500
19,413
20068 HY
7
-12490
4,309
93 Bander Equipment
8/31/05
44,0x1
44,000
24,760
20OUB HY
7
.12490
5,496
105 Corrugated Bundler
12/03/05
17,995
17,995
19,125
20 0B HY
7
.124A
2,248
IC6 Installation
12/19/05
8r701
8,701
4,8%
2D00B HY
7
.12490
1,087
110 K -Fab Equipment
4/13/06
1,159
1,750
0
20MB MQ
7
4
111 Team n .g Equipment
4/16106
1U,OUD
10,000
0
20DD13 MQ
1
0
112 Prinbeq Press Cornp Cont
8/30/06
9,322
9,322
0
204DB MQ
7
0
113 Two Tapers
9/01106
5,900
51000
0
200DB lAQ
7
D
115 Installation of mablunery
9/14/06
3,189
3,189
0
20ODB h1Q
7
0
117 Dieoulier Transport
12/16/D5
1,825
1,825
0
20006 A1Q
1
0
CD 1 Mi 108
Client 3698
11112JOB
0
0
v
0
CD
C.
2008 Federal Depreciation Schedule
Hurley Packaging of Texas, Inc,
Page 2
75.2576591
11.4D,AN
Prior
Cur
Sppe�tu�a1 1791
Prior Salrraga
Date Date
Cast/ Bus. 179
Dix. 8anus/
Dec. Bat. /Basis Dept.
Prior
Currert
-Na- Uesiriplim..
.-.8uutdSold
Rasis Pct Rmlls
Allow- SnDom.
_DEPT-__FhAldl Rads DEJX z?ApihrA
life__
118 Profmsmal Mass
12/47/06
1,628
1,628
0
2ODD6 PAO
7
0
119 3 Strap lmnd1rr/flex Tyer
12/05/05
11750
13,750
0
200DB 14Q
7
0
120 Diecutter Transportation
t 1/30/06
1,625
1,825
0
20ODB 314
7
0
121 Decutter Transportation
1/05/07
3,574
3,574
0
2DOOB HY
7
0
122 tnstallation of Dietutier
2102107
13,593
13,593
0
20006 HY
7
0
123 lostallatian of piecuber
2/19107
4,869
4,669
0
ZOODB HY
7
C
128 Conveyor rerised amort
3/31/01
2,713
2,713
0
20DDB HY
7
D
129 Bander revised amort
3/31/07
3,460
3,450
0
200DB HY
7
0
131 Ladye Wake -flew Press
4/18/07
10,116
10,716
0
2GOD8 HY
7
0
132 foto Deer Tracbr
5/22/07
4,850
4,850
0
2DOil8 HY
7
0
133 Stredder for Tractar
5/22107
1,850
1,83
0
20C419 HY
7
0
134 Installation Df Diecuticr
5/29/07
2,370
2,370
0
20DDB HY
7
0
141 Bndt Box Forks w/poshor
1/02107
0,048
227
821
117
20ODB HY
1
24490
201
142 Battery Charge
7/02/07
55
m
8
200DB HY
7
24490
13
143 Electric Forldift-KNia-tsu
7102107
2,2D5
2,205
315
20ODB HY
7
.24490
544
144 Electric Standup FoTkldt
7102/07
2,695
2,695
385
20308 HY
7
24490
660
145 Industrial Recovery
7/03/)7
2,410
2,510
359
2000E HY
7
24490
615
146 Industrial Recovery
7/DS/07
229
229
33
20008 HY
7
24490
56
147 Partlion Asserrbte
8/10107
34000
380,000
54,302
2DDDB Kf
7
24490
93,062
150 Partiten Asscmmblf
10/05/01
5,000
5000
715
200DB HY
7
244%
145
151 Parthm Assembler
10/09101
1(,642
10,642
1,521
20ODS HY
7
24490
205
152 Nen Electric Fuldift
10/18101
10,690
1D,M
1,528
20ODB HY
7
24490
4618
153 Induslnal Remery
9128107
3,949
3,949
564
20ODB HY
7
24490
967
154 Manuai FATS Dunnage
11/27/07
3,953
3,963
566
20006 HY
7
14490
971
155 Partition Assenhi-dwn pay
11112J07
22,602
22,502
3)30
20ODB HY
7
24490
5,535
1% Shoppa`s Forklift
11/21107
15,696
15,656
2,243
20ODD HY
7
24490
3,E44
157 SiretchKap Math -112 dwn
11121101
7,485
7,485
1,074
2)ODB HY
7
24490
1,633
Q)
m 12131108
it
Client 3658
11/12JW
CL
0
0
0
CD
0
cv
2008 Federal Depreciation Schedule
Hurley Packaging of Texas, Inc.
Page 8
75-2576591
11:40AW
Prior
Curu4
179/
Prior
SalvaT
Daie
Dale Cost!
Bus- 179 r.
Bonus/
Dec. Bal.
/Basis
DEpr.
Prior
Current
� Oesrr45m
Arquird
Raid Rm%is
-&L Room_ _AIrcNL_ _ �Sp Npr` 6 �[' -RAIdn Rasis
_osis_ Metiad JAL Rate
159 Stretehm" Macb mal
1/10/08
7,485
3,743
3,742
200DO HY
7
.14290
535
164 Bai on Parton Asrables Ct
3/14/%
45,204
21,602
22,60E
20DDB HY
7
-14290
3,230
165 Bal on Portion Asmblet AP
3131/08
7,534
3,767
3,767
200DB NY
7
.14290
538
171 Forklift
vW16
15,155
7,518
7,577
20ODB HY
7
.14290
1,083
172 Beat skid steer
9/05/09
6,100
4,M0
9,050
200D6 HY
7
.14298
579
173 Bader
9/05/09
4,909
4455
2,454
20OD6lilf
1
.14290
351
Total Nathineryand Equipmeat
1,840,604
0 44,195
147,369
0
0
1,619,040
945,039
212;466
MisWfaoeous
174 Deposit-A'Wp €gvipment
SAME
3,160 17
3,160,877 -
0
TOW Miseftwous
3,160,877
0 0
0
0
0
3,160,817
D
D
Te4al Depreciation
5,001,481
0 44,195
147,369
0
0
4,809,911 _e
915039
212.466
Grand Total Amortizalan
5,000
0 0
0
0
0
5,000
0'
0
Grand Tofial Depredation
5,57195
0 109,008
201,D36
0
0
5,261,911
1,156,637
253,807
Oepredat m Assets Sob
56,438
0 0
10,710
0
0
47,728
30,525
1,028
DeprRerrrainingAmb
5,519,517
0 1D9,DD8 190326
0
0
5,220,181
1,12012
257,779
Our proposed timetable for this project is to start March 1" and be completed and running by the
end of August, 2009.
City of Lubbock, Texas Planning Maps Page 1 of 3
City of LubblockVirtual GIs
City of Lubbock, Texas Planning Maps
0 0.03 0.06 0.09 0.12 0.15 mi
http ://maps2005. ci.lubbock.tx.uslcgi-binlmapsery?map=lhomelmaps2005lhtmllgraphicsl9... 3/10/2009
N ItAZA 4 - A
The project will increase the value of the facility by increasing the types of business that could
use this building in the future and by making this building more accessible for large vehicles to
enter.
Lubbock Central Appraisal.Dlstrict
Lubbock Central Appraisal District
1715 26th St.
PO Box 10568
Lubbock, TX 79408-3568
806-762-5000x503
827555
HURLEY, THOMAS J
PO BOX 3667
LUBBOCK, TX 79452
improvement
1,906,417
AG Market
0
AG Use
0
Timber Market
0
Timber Use
0
Cap Adjustment
0
Assessed 1
2.114939
2008 Resolution No. 2009—RO164
Supplemental 7�e =2J8
Statement 827555 00025816
LUBBOCK INDUSTRIAL PK L 5
Property Location
B MUNICIPAL DR LUBBOCK TX
Niuiumber: i533900-00000i0005Mii
City Taxes Reduced By Additional Sales Tax 2,506.41
County Taxes Reduced By Additional Safes Tax 2,775.65
00025816
�L'��11=isIelN;~� 1
If you are 65 years of age or older or are
disabled, and you occupy the property described TOTAL 1 1 1•. + 1 45,1 7'9.,555
n this document as your residence homestead, January 31,
you should contact the appraisal district
regarding any entitlement you may have to a
postponement In the payment of these taxes.
— --0eta& and reRun bottom portlor with
Make check payable 1o.
Lubbock Central Appraisal District
1715 26th 5t.
PO Box 10568
Lubbock, TX 79408-3568
806-762-5000 x503
TOTAL DUE IF PAID BY a
January 31, 2009
R27555 + II
HURLEY, THOMAS J IIItI�Plll�lll�lll��IiiI�I�llill�llllfIflfll
PO 80X 3667
LUBBOCK, TX 79452 •%000000722500Co000074938•
Jon 2009
0-00
P2008tyC
Fab. 2009
7%
3,182.57
48,342.12
Mar2009
9%
bock
0.446400
0
2,114,939
9,441.081
0.00
9,441.08
2008 Hi Plains Water
0.007940
0
2,114,939
167.93
0.00
167.93
2008 Lubb Cnty Hospital
0.120670
0
2,114,939
2,552.10
0.00
2,552.10
2008 Lubbock County
0.326200
0
2,114,939
6,898.94
0.00
6,898.94
2008 Lubbock ESD
1.235000
fl
2,114,939
26,119.50
0.00
26,119.50
TOTAL
45,179.55
0.00
sag TIT -
00025816
�L'��11=isIelN;~� 1
If you are 65 years of age or older or are
disabled, and you occupy the property described TOTAL 1 1 1•. + 1 45,1 7'9.,555
n this document as your residence homestead, January 31,
you should contact the appraisal district
regarding any entitlement you may have to a
postponement In the payment of these taxes.
— --0eta& and reRun bottom portlor with
Make check payable 1o.
Lubbock Central Appraisal District
1715 26th 5t.
PO Box 10568
Lubbock, TX 79408-3568
806-762-5000 x503
TOTAL DUE IF PAID BY a
January 31, 2009
R27555 + II
HURLEY, THOMAS J IIItI�Plll�lll�lll��IiiI�I�llill�llllfIflfll
PO 80X 3667
LUBBOCK, TX 79452 •%000000722500Co000074938•
Jon 2009
0-00
46,179.66
Fab. 2009
7%
3,182.57
48,342.12
Mar2009
9%
4,066.19
48,245.71
Apr 2009
11%
4,969.75
50,149.30
May 2009
13%
5,873.32
51,052.87
Jun 2069
15%
8,770.93
51,959.48
J"12009
16%+20%
18,794.71
83,974.26
Aug 20 Y 1
19%+20%1
19,336.86
84,516.41
3op2009
20%+20%1
19,876.01
65,C !z
oct2009 1
21%+20%L_20,421.15
65.000,70
00025816
�L'��11=isIelN;~� 1
If you are 65 years of age or older or are
disabled, and you occupy the property described TOTAL 1 1 1•. + 1 45,1 7'9.,555
n this document as your residence homestead, January 31,
you should contact the appraisal district
regarding any entitlement you may have to a
postponement In the payment of these taxes.
— --0eta& and reRun bottom portlor with
Make check payable 1o.
Lubbock Central Appraisal District
1715 26th 5t.
PO Box 10568
Lubbock, TX 79408-3568
806-762-5000 x503
TOTAL DUE IF PAID BY a
January 31, 2009
R27555 + II
HURLEY, THOMAS J IIItI�Plll�lll�lll��IiiI�I�llill�llllfIflfll
PO 80X 3667
LUBBOCK, TX 79452 •%000000722500Co000074938•