HomeMy WebLinkAboutResolution - 2007-R0534 - Give Notice Of Intent To Enter Tax Abatement Agreement - Westx Packaging Company - 11/20/2007Resolution No. 2007-80534
November 20, 2007
Item No. 5.15
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Tax Abatement Agreement with WesTx Packaging Company and Standard International LLC;
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 governing 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 WesTx Packaging Company and
Standard International LLC, 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 which is further
described as Lot 2, Lubbock Business Park Addition to the City of Lubbock.
Passed by the City Council this 20th day of
ATTEST:
Oeb"eccaarta, City Secretary
APPROVED A TO CONTENT:
2 L
Rob All' nt City Manager
Devel pment Services
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
November 2007.
GILBREATH, MAYOR PRO
Resolution No. 2007-RO534
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 508 E. YUCCA LANE WHICH IS
FURTHER DESCRIBED AS LOT 2, LUBBOCK BUSINESS PARK ADDITION
TO THE CITY OF LUBBOCK
Notice is hereby given that the City Council of the City of Lubbock intends to
enter into an Agreement with WesTx Packaging Company and Standard International
LLC to abate taxes on improvements to real property located within the Lubbock 2000
North Enterprise Zone created by Ordinance No. 2000-00032 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,
WesTx Packaging Company and Standard International LLC 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 13th Street, City of
Lubbock, on the 6th day of December, 2007, at approximately 9:30 o'clock a.m.
Exhibit "A -I"
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
Resolution No. 2007-80534
This Agreement made this day of , 2007, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City"), and WesTx Packaging Company (hereinafter called WesTx)
and Standard International LLC (hereinafter called "Owner");
WITNESSETH:
WHEREAS, City did receive from WesTx and Owner on the 13`" day of
September, 2007 an application for tax abatement for improvements to real property and
tangible personal property at 508 E. Yucca Lane, Lot 2, Lubbock Business Park Addition
to the City of Lubbock, and 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 Lubbock 2000 North Enterprise Zone
designated by the City in Ordinance No. 2000-00032 covering the above described
property; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement For Industrial
Projects in the City of Lubbock was heretofore adopted by Resolution No. 2007-RO514
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 did comply with all the requirements set forth in V.T.C.A.,
Tax Code, Section 312.201; and
WHEREAS, the City did comply 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, said guidelines having been adopted by Resolution No. 2007-RO514 of the
City on November 8, 2007; and
WHEREAS, the City did pass Ordinance No. 2000-00032 creating the Lubbock
2000 North Enterprise Zone for commercial and industrial tax abatement, said zone
including the area which is described in the attached Exhibit "A"; and
AGREEMENT - WESTX AND STANDARD IN'T`ERNATIONAL LLC PAGE 1
WHEREAS, 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
WHEREAS, the application received by City from WesTx and Owner is an
application for the construction of a new 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 govng Tax Abatement
for Industrial Projects in the City of Lubbock adopted by the City Council by Resolution
No. 2007-80514, does recognize construction of a new facility as being eligible for tax
abatement status; and
WHEREAS, the City Council does h y find- hat all of the: dunes and
Criteria Governing Tax Abatement, as adopt solut No. 2007-RO , have been
met by WesTx and Owner; and
WHEREAS, the location of the facility and Burr` i ing real property, which are
to be the subject matter of this Agreement, are attached her ` xhibtt "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, WesTx and Owner do hereby
agree as follows:
SECTION 1. Term. This Agreement shall remain in force and effect for a period
of five (5) years from January 1 of the tax year after the required improvements are
substantially completed and shall expire and be of no further force and effect after said
date.
SECTION 2. Base Year. The base year applicable to real property, which is the
subject of this Agreement, shall be 2007, 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 hereinabove set forth.
AGREEMENT- WESTX AND STANDARD INTERNATIONAL LLC PAGE 2
SECTION 5. Prope!1y 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 and heretofore adopted by the City Council by
Resolution No. 2007-RO514 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:
(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 WesTx and Owner,
placed in or upon the property set forth in Exhibit "A", which does not
include any equipment and personal property owned by WesTx and
Owner and already located in the existing facility.
(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. WesTx and Owner agrees to expend
funds necessary to qualify for tax abatement by constructing a new facility, as set forth in
Section IV(3)(a) of the Guidelines and Criteria Governing Tax Abatement for Industrial
Projects in the City of Lubbock (Exhibit "13") on the property described in Exhibit "A".
A description of the kind, number and location of all proposed improvements is attached
in WesTx and Owner'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, Owner
will expend three million two hundred thousand ($3,200,000) for the construction of a
new facility and WesTx will expend three hundred thousand ($300,000) on building
improvements and two million five hundred thousand ($2,500,000) on new equipment to
be located within the enterprise zone created by Ordinance No. 2000-00032.
SECTION 9. City Access to Property. WesTx and Owner covenants and agrees
that City shall have access to the property, which are 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 to insure compliance with the terms and
conditions of WesTx and Owner's application for tax abatement, attached as Exhibit "C",
and this Agreement.
AGREEMENT - WESTX AND STANDARD INTERNATIONAL LLC PAGE 3
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 1:
100%
Year 2:
80%
Year 3:
60%
Year 4:
40%
Year S:
20%
SECTION 11. Commencement Date. This Agreement shall commence January 1
of the tax year after the required improvements are substantially completed and shall
expire five (5) years after such date.
SECTION 12. Tyne of Improvements. WesTx and Owner proposes to construct
a new facility as described in Exhibit "C". WesTx aid Owner further states that the
proposed improvements to the property above mentioned shall commence on the lit day
of December 1, 2007, and shall be completed within approximately severs (7) months
from said date. WesTx and Owner may request an extension of the above date from City
in the event circumstances beyond the control of WesTx and Owner necessitates
additional time for completion of such improvements and such consent shall not
unreasonably be withheld. WesTx and Owner 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. WesTx and Owner 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.
CTION 14. a ture. WesTx and Owner agrees to be bound by and comply
wit terms and p sions for recapture of abated taxes in the event of default by
WesTx Owner pur nt to law and as set forth in Guidelines and Criteria for Tax
s:.
Abatcment ted by Resa7ution No. 2007-RO514 of the City Council of the City of
Lubbock.
SECTION 15. Certification. WesTx and Owner 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
WesTx and/or Owner 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:
AGREEMENT - WESTX AND STANDARD INTERNATIONAL LLC PAGE 4
CITY OF LUBBOCK
Assistant City Manager
Development Services
P.O. Box 2000
Lubbock, Texas 79457
WESTX PACKAGING COMPANY
Paul Lin
PO Box 5158
Aloha, OR 97007
STANDARD INTERNATIONAL LLC
Paul Lin
PO Box 5158
Aloha, OR 97007
AGREEMENT - WESTX AND STANDARD INTERNATIONAL LLC PAGE 5
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.
EXECUTED this day of
WESTX PACKAGING COMPANY
ATTEST:
STANDARD INTERNATIONAL LLC
2007.
CITY OF LUBBOCK
A Municipal Corporation
DAVID A. MILLER, MAYOR
ATTEST.
Rebecca Garza
City Secretary
APPROVED AS TO CONTENT:
ATTEST:
Rob Allison, Assistant City Manager
Development Services
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
Tax Abatement Agmt-Standard November 5, 2007
DRAFT ONLY -- DO NOT EXECUTE
AGREEMENT— WESTX AND STANDARD INTERNATIONAL LLC MAGE 6
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