HomeMy WebLinkAboutResolution - 2006-R0576 - Establishes New EDP - To Assist LEDA - Rail Port & Business Park - 12/07/2006Resolution No. 2006-RO576
December 7, 2006
Item No. 5.12
RESOLUTION
WHEREAS, Lubbock Economic Development Alliance (LEDA), a non-
profit industrial development corporation under the Development Corporation Act
of 1979, as amended, Article 5190.6 Tex. Rev. Civ. Stat. Ann., ("the Act")
governed by Section 4A of the Act, in an effort to obtain and develop marketable
sites in Lubbock for industrial businesses, has established two economic
development projects: (1) Lubbock Rail Port, a 301 acre tract north of Lubbock
Preston Smith International Airport to be marketed for heavy industry and (2)
Lubbock Business Park, which includes two parcels of land owned by the City
outside the Northeast Loop on Municipal Drive to be marketed for light industry;
and
WHEREAS, the City Council desires to create a new City of Lubbock
Economic Development Program to provide financial assistance to LEDA in
developing Lubbock Rail Port pursuant to the authority granted to the City of
Lubbock by Section 380.001 of the Texas Local Government Code; and
WHEREAS, it is the opinion of the City Council of the City of Lubbock
that granting financial assistance for the purchase of the 301 acres north of the
airport to assist LEDA in developing Lubbock Rail Port as provided in the
Economic Development Grant Agreement attached hereto will be in the public
interest and will serve to promote economic development of Lubbock and the
South Plains area; and
WHEREAS, the City Council desires to create a second new City of
Lubbock Economic Development Program to assist LEDA in developing the
Lubbock Business Park by selling vacant city land in the North Enterprise Zone to
LEDA at below market value pursuant to the authority granted to the City of
Lubbock by Section 380.001 of the Texas Local Government Code and Section
2303.513 of the Texas Government Code; and
WHEREAS, it is the opinion of the City Council of the City of Lubbock
that selling vacant city -owned land to LEDA at below market value for the
development of Lubbock Business Park will be in the public interest and will
stimulate business and commercial activity and serve to promote economic
development in Lubbock; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the City Council of the City of Lubbock hereby
establishes and provides for a new economic development program for the City of
Lubbock to provide financial assistance to Lubbock Economic Development
Alliance for developing Lubbock Rail Port in accordance with the attached
Economic Development Grant Agreement. Said program shall be administered by
municipal personnel of the City of Lubbock and LEDA personnel.
SECTION 2. THAT the City Council of the City of Lubbock hereby
establishes and provides for a second new economic development program for the
City of Lubbock to sell two parcels of vacant city -owned land in the North
Enterprise Zone at below market value to Lubbock Economic Development
Alliance for the development of Lubbock Business Park in accordance with the
attached Economic Development Grant Agreement.
SECTION 3. THAT the Mayor of the City of Lubbock BE and is hereby
authorized and directed to execute for and on behalf of the City of Lubbock an
Economic Development Grant Agreement with Lubbock Economic Development
Alliance. Said Economic Development Grant 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.
Passed by the City Council this 7th day of December , 2006.
DAVID A. MILLER, MAYOR
ATTEST:
Rebe ca Garza, City Secretary
APPROVED,AS TO CONTENT:
Rob A ssistantity Manager
Development Services
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney/
Office Practice Section
City Att/Linda/RES- Economic Dev Grant Agmt
November 29, 2006
THE STATE OF TEXAS
COUNTY OF LUBBOCK
Resolution No. 2006-RO576
December 7, 2006
Item No. 5.12
ECONOMIC DEVELOPMENT GRANT AGREEMENT
This grant agreement ("the Agreement") is between the City of Lubbock
(hereinafter called "City") and Lubbock Economic Development Alliance (hereinafter
called "LEDA").
WHEREAS, Lubbock Economic Development Alliance (LEDA) is a non-profit
industrial development corporation under the Development Corporation Act of 1979, as
amended, Article 5190.6 Tex. Rev. Civ. Stat. Ann., ("the Act") governed by Section 4A
of the Act and created for the exclusive purpose of promoting the social welfare of the
City through retaining and expanding existing jobs and businesses in Lubbock, attracting
new industry and businesses to Lubbock, promoting long term employment opportunities
for Lubbockites, promoting and developing industrial and manufacturing enterprises in
order to eliminate unemployment and underemployment, promoting the common good
and general welfare through economic development that is not inconsistent with the Act;
and
WHEREAS, in an effort to obtain and develop marketable sites in Lubbock for
industrial businesses, LEDA has established two economic development projects: (1) the
Lubbock Rail Port, a 301 acre tract north of Lubbock Preston Smith International Airport,
and (2) the Lubbock Business Park, which includes two parcels of land owned by the
City outside the Northeast Loop on Municipal Drive; and
WHEREAS, the City desires to assist LEDA in these projects by creating two
new City of Lubbock Economic Development Programs under the authority granted to
the City by Section 380.001 of the Texas Local Government Code, and pursuant to Local
Government Code §380.002(b), the City has determined that it wishes to grant funds to
LEDA under this Agreement, for the development and diversification of the economy,
elimination of unemployment and underemployment, and the development and expansion
of commerce; NOW THEREFORE:
The Parties agree as follows:
I.
Section One. Recitals and Exhibits Part of Agreement.
1.1 The representations, covenants and recitations set forth in the
foregoing recitals are material to this Agreement and are hereby
incorporated into and made a part of this Agreement as though
they were fully set forth in this Article I.
1.2 Exhibits "A" and `B" are hereby incorporated into and made a part
of this Agreement as though they were fully set forth in this Article
I.
II.
Section Two. Duties of the City.
2.1 The City hereby agrees to provide grant funding to LEDA in the
amount of three hundred ninety thousand and no one hundredths
dollars ($390,000.00), the appraised fair market value of 301 acres
north of Lubbock Preston Smith International Airport in the LIA
North Reinvestment Zone, as depicted in Exhibit "A". This grant is
provided for the purpose of purchasing said land for use as the
Lubbock Rail Port, a business park to be developed and marketed
for heavy industry. In addition, the City agrees to pay up to an
additional $5000.00 for LEDA's and/or the City's costs in
connection with the purchase.
2.2 The City hereby agrees to sell the two parcels of property outside
the Northeast Loop on Municipal Drive, further described in
Exhibit B, which are located in the North Enterprise Zone, to
LEDA at below market value for the purpose of developing and
marketing the Lubbock Business Park for light industry, which
could include the exchange of all or a part of such property for
other real property to be utilized in furtherance of developing and
marketing Lubbock Business Park. The difference between the
selling price and the fair market value is provided as a grant to
LEDA for the public purpose of development and diversification
of the economy, elimination of unemployment and
underemployment, and the development and expansion of
commerce within the City.
Section Three. Duties of LEDA.
3.1 LEDA agrees to use the $390,000.00 to purchase the 301 acres
described in Exhibit "A" and to develop and market the land as
Lubbock Rail Port to attract new industry and businesses to
Lubbock, promote long term employment opportunities for
Lubbockites, promote and develop industrial and manufacturing
enterprises in order to eliminate unemployment and
underemployment, and promote the common good and general
welfare through economic development.
3.2 LEDA agrees to make application and accept the transfer of
sponsorship of EDA Grant 08-49-03071 from the City regarding
the construction and maintenance of a rail spur on the 301 acres.
LEDA will provide the City with written confirmation from EDA
that the grant has been transferred within 30 days. LEDA agrees to
comply with all terms of the grant, all federal statutes and
regulations with regard to the grant and to the rail spur and to hold
the City, its officers, agents, and elected officials harmless from
any and all claims, demands, causes of action, damages, injuries,
fines, penalties and expenses of any kind arising from any
violation of the terms of the grant. LEDA further agrees not to sell
or divest itself in any manner of the 15.08 acres that contain the
rail spur and will operate or insure that the rail spur is operated in
conjunction with industrial development in the Lubbock Rail Port.
3.3 LEDA agrees to accept Assignment, and assumes and agrees to
perform all of the covenants, terms and agreements in the
Agreement between the City of Lubbock and the Burlington
Northern and Santa Fe Railway Company dated June 13, 2001, as
approved by the City in Resolution No. 2001-R0219. LEDA also
agrees to accept Assignment and to perform all the covenants,
terms and agreements in the Lease between the City and the
Burlington Northern and Santa Fe Railway Company, dated May
1, 2001, as approved by the City in Resolution No. 2001-R0209
3.4 LEDA agrees to purchase the two parcels of property located in the
North Enterprise Zone which are described in Exhibit `B" for the
purchase price of one thousand dollars ($1000.00). LEDA
acknowledges that this is below market value and agrees that the
difference between the purchase price and the fair market value is
an economic development grant. LEDA agrees that it will only use
said property for economic development purposes.
IV.
Section Four. Full Agreement.
4.1 This agreement contains the entire understanding and agreement
reached by the parties and supersedes all other written or oral
exchanges, agreements, arrangements, or negotiations between
them or their legal representatives, and may not be altered,
amended or modified, except by writing properly executed
documents by the party to be charged thereby.
V.
Section Five. Successors and Assigns.
5.1 All covenants and agreements herein shall inure to the benefit of
and be binding upon the parties hereto and their respective
successors and assigns.
C%
Section Six. Future Assurances.
6.1 The parties agree to cooperate fully and use their best efforts to
carry out the full purpose and intent of this Agreement.
6.2 Each party agrees to take such future actions and execute such
additional documents as may be required or appropriate to give full
force and effect to this Agreement.
VII.
Section Seven. Force Maieure.
7.1 If any default or performance of any other covenant or term of this
Agreement is delayed by reason of war, civil commotion, act of
God, governmental restrictions, regulations, or interference, fire or
other casualty, or any other circumstances beyond a signatory
party's control, then the duty to do or perform the term or
covenant, regardless of whether the circumstances is similar to
those enumerated or not, is excused during the delay period.
VIII.
Section Eight. Captions.
8.1 The captions, headings, and arrangements used in this Agreement
are for convenience only and do not in any way affect, limit,
amplify or modify the terms and provisions hereof.
IX.
Section Nine. Multiple Counterparts.
9.1 This Agreement may be simultaneously executed in a number of
identical counterparts, each of which for all purposes shall be
deemed an original. This Agreement may also be executed
separately by all or any of the parties, and all such agreements
shall collectively be deemed as an original executed agreement of
all the parties.
SIGNED AND EXECUTED on this 7th
CITY OF LUBBOCK Ll
A Municipal Corporation A
DAVID MILLER,MAYOR G
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
Rob Allis , ss>stant >
Manager, Development S`e ices
APPROVED AS TO FORM:
day of December , 2006.
ATTEST:
MI�LOPMENT
al Development
Corp.
WRENCE, CEO
APPROVED AS TO FORM:
Pete Baker, Attorney for Lubbock
Economic Development Alliance
Linda Chamales, Senior Attorney
Office Practice Section
Lc: city att/Linda/ LEDA 380 grant agmt
December I, 2006
Resolution No. 2006-RO576
Exhibit "A"
LIA North Reinvestment Zone
City of Lubbock
Planning Department
162513th Street
Lubbock, TX 79457
(806) 775-2106
W E
Reinvestment Zone
PLANNING DEPARTMENT
Parcels
Roads
City Limits
PLANNING DEPARTMENT
EXHIBIT "B"
TRACT I:
Resolution No. 2006-RO576
A 103.29 acre tract of land located in Section 5, Block A, T.T. Railroad Company
Survey, Lubbock County, Texas being a portion of that tract described in Volume 1176,
Page 587 of the Deed of Records of Lubbock County, Texas and further described as
follows:
BEGINNING at a railroad spike found in the East right of way line of Martin Luther
King, Jr. Blvd. and the South line of that tract conveyed to Peggy Green as described in
Volume 3782, Page 28 of the Real Property Records of Lubbock County, Texas for the
Northwest corner of this tract from whence a railroad spike found at the occupied
Northwest corner of said Section 5 bears S 89'43'18" W a distance of 79.9 feet and N
0°25'53" W a distance of 0.2 feet;
THENCE N 89043'18" E, along the South line of said Green tract, at a distance of 355.6
feet pass a '/2" iron rod found at the Southeast corner of said Green tract, at a distance of
2558.8 feet pass a 1" iron pipe found at the occupied North quarter corner of said Section
5, in all a distance of 4774.20 feet to a '/z" iron rod with cap set for the Northeast corner
of this tract in the West line of Tract 1, North-East Industrial Addition to the City of
Lubbock as shown on the plat thereof recorded in Volume 1865, Page 424 of said records
from whence a 5/8" iron rod with cap found at the Northwest corner of said Tract 1 bears
N032'24" W a distance of 16.9 feet;
THENCE S 0032'24" E, along said West line and a chain link fence, a distance of 434.38
feet to a 5/8" iron rod with cap found in the North right of way line of the Crosbyton and
South Plains Railroad right of way at the Southwest corner of said Tract 1 for the
Southeast corner of this tract;
THENCE S 64037'38" W, along said right of way line, a distance of 2268.15 feet to a'/z"
iron rod with cap set for a corner of this tract;
THENCE N 25022'22" W, along said right of way line, a distance of 25.00 feet to a'/2"
iron rod with cap set for a corner of this tract;
THENCE S 64037'38" W, along said right of way line, a distance of 1200.00 feet to a''/z"
iron rod with cap set for a corner of this tract;
THENCE S 25022'22" E, along said right of way line, a distance of 25.00 feet to a '/z"
iron rod with cap set for a corner of this tract;
THENCE S 64037'38" W, along said right of way line, a distance of 137.47 feet to a 1"
iron rod found at the Southeast corner of that tract conveyed to the South Plains Food
Bank and described in Volume 4062, Page 87 of said records for a corner of this tract;
THENCE N 16024'33" W, along the East line of said Food Bank Tract, a distance of
1981.57 feet to a 1 ''/z" iron rod found at the Northeast corner of said Food Bank Tract for
an ell corner of this tract;
THENCE S 89043'18" W, along the North line of said Food Bank Tract, at a distance of
610.33 feet pass a '/2" iron rod with cap found at the Northeast corner of that tract
described in Volume 9591, Page 2 of the Official Public Records of Lubbock County,
Texas, in all a distance of 960.31 feet to a '/2" iron rod with cap set in the East right of
way line of said Blvd. at the Northwest corner of said tract described in Volume 9591 for
a corner of this tract;
THENCE N 0°18'52" W, along said right of way line, a distance of 60.00 feet to the
place of BEGINNING.
TRACT II:
A 56.02 tract of land located in Section 5, Block A, T.T. Railroad Company Survey,
Lubbock County, Texas being a portion of that tract described in Volume 1176, Page 587
of the Deed Records of Lubbock County, Texas and further described as follows:
BEGINNING at a 40D nail set in the East line of said Section 5 and the North right of
way line of Loop 289 for the Southeast corner of this tract from whence a %" iron rod
with cap found at the Southeast corner of said Section 5 bears S 0°32'56" E a distance of
847.36 feet;
THENCE N 44005'18" W, along said right of way line, a distance of 3219.19 feet to a'/2"
square tube found at the beginning of a curve to the left having a radius of 5879.58 feet;
THENCE Northwesterly, along said right of way line and said curve having a chord
bearing of N 50010'11" W, a chord distance of 1235.39 feet to a masonry nail set at the
lip of a concrete curb and gutter for a corner of this tract;
THENCE N 33002'53" E, along the East right of way line of North Elder Avenue, a
distance of 200.35 feet to a 3/8" iron rod found at the beginning of a curve to the left
having a radius of 1324.23 feet;
THENCE Northeasterly, along said right of way line and said curve having a chord
bearing of N 28'07'12" E, a chord distance of 233.99 feet to a ''/2" square tube found for a
corner of this tract;
THENCE N 22059'13" E, along said right of way line, at a distance of 487.17 feet pass a
found 3/8" iron rod, in all a distance of 647.17 feet to a %2" iron rod with cap set at the
beginning of a curve to the left having a radius of 656.59 feet;
THENCE Northeasterly, along said right of way line and said curve having a chord
bearing of N 11°20'01" E, a chord distance of 265.36 feet to a 1" square tube found for a
corner of this tract;
THENCE N 0019'16" W, along said right of way line, a distance of 209.94 feet to a '/2"
iron rod with cap set at the beginning of a curve to the right having a radius of 280.00
feet;
THENCE Northeasterly, along said right of way line and said curve having a chord
bearing of N 19°41'21" E, a chord distance of 191.54 feet to a 1" square tube found for a
corner of this tract; 11
THENCE N 50°15'51" W, along said right of way line, a distance of 75.00 feet to a brass
cap in concrete found at a corner of Lot 9, Lubbock Industrial Park Addition as shown on
the map, plat and/or Dedication Deed thereof recorded in Volume 1629, Page 669 of said
records for a corner of this tract;
THENCE N 26053'57" W, along the East line of said Lot 9, a distance of 227.21 feet to a
brass cap in concrete found at a corner of Lot 9 for a corner of this tract;
THENCE N 0019'38" W, along the East line of said Lot 9, a distance of 180.00 feet to a
1" square tube found at a corner of Lot 9 for a corner of this tract;
THENCE N 64037'05" E, along the South line of Lot 11 of said addition, a distance of
412.40 feet to a 1" square tube found at a corner of Lot 11 for a corner of this tract;
THENCE N 0°18'17" W, along the East line of Lot 11, a distance of 322.49 feet to a 1"
square tube found for a corner of this tract at a corner of Lot 11 and the beginning of a
curve to the right having a radius of 621.80 feet;
THENCE Northeasterly, along the East line of said Lot 11 and said curve having a chord
bearing of N 10'22'12" E, a chord distance of 231.68 feet to a 1" square tube found at a
corner of said Lot 11 in the South right of way line of Municipal Drive for a corner of
this tract;
THENCE N 64038'43" E, along said right of way line, a distance of 333.15 feet to a'/z"
iron rod with cap set in the East line of said Section 5 for the Northeast corner of this
tract from whence a 5/8" iron rod with cap found at the Southeast plat limits of Tract 1
North-East Industrial Addition as shown on the map, plat, and/or Dedication Deed
thereof recorded in Volume 1865, Page 424 bears N 0032'56" W a distance of 220.48
feet;
THENCE S 0032'56" E, along the East line of said Section 5, at a distance of 2153.15
feet pass a found 5/8" iron rod with cap, at a distance of 2168.2 feet a found 3/4" iron pipe
bears West a distance of 8.4 feet, in all a distance of 3948.84 feet to the place of
BEGINNING.
Exhibit
" B " Resolution No. 2006-RO576
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Exhibit "B" Resolution No. 2006-RO576