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HomeMy WebLinkAboutResolution - 2006-R0575 - Tax Abatement Agreement - Semmaterials LP - 12/07/2006Resolution No. 2006-RO575 December 7, 2006 Item No. 5.11 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: 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 a Tax Abatement Agreement with SemMaterials, L.P. 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. Passed by the City Council this 7th day of December 7 2006. ATTEST: Qa&r�e�_ Reb cca Garza, City Secretat APPROVED A TO CONTENT: Robison, Assistant Citimanager Development Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section LC: cityatt / Linda 1 Res -Tax Abatement-Teinert November 20, 2006 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § Resolution No. 2006-80575 December 7, 2006 Item No. 5.11 This Agreement made this 7th day of December , 2006, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City"), and SemMaterials, L.P. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 18`h day of September, 2006 an application for tax abatement for improvements to real property and tangible personal property at 1611 Marshall Street, 1101 Avenue P, and 1619 Marshall, 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 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 Selected Taxing Units Contained Within Lubbock County was heretofore adopted by Resolution No. 2005-RO421 of the City Council of the City of Lubbock. A copy of the Guidelines and Criteria Governing Tax Abatement for Selected Taxing Units Within Lubbock County 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 Selected Taxing Units Contained Within Lubbock County, said guidelines having been adopted by Resolution No. 2005-80421 of the City on September 8, 2005; 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 - SEMMATERIALS, LP. 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 Company is an application for the expansion of an existing facility; and WHEREAS, V.A.T.C., Tax Code, Sec. 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 Selected Taxing Units Contained Within Lubbock County adopted by the City Council by Resolution No. 2005-R0421, does recognize 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. 2005-R0421 have been met by Company; and WHEREAS, the location of the facility and surrounding real property, which are to be the subject matter of this Agreement, are attached hereto as Exhibit "A" and made a part of this Agreement for all purposes; and NOW THEREFORE, for and in consideration of the premises and of the mutual terms, covenants and conditions herein contained the City and Company do hereby agree as follows: SECTION 1. Term. This Agreement shall 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 2006, 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 - SEMMATERIALS, LP PAGE 2 SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section I'V(6) of the Guidelines and Criteria Governing Tax Abatement for selected taxing units contained within Lubbock County and heretofore adopted by the City Council by Resolution No. 2005-R0421 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 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. (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 an existing facility, as set forth in Section IV(3)(b) of the Guidelines and Criteria Governing Tax Abatement for selected taxing units contained within Lubbock County (Exhibit "B") on the property described in Exhibit "A". A description of the kind, number and location of all proposed improvements is attached in Company's application, Exhibit "C" and incorporated herein as if fully set forth. SECTION 8. Value of Improvements. In accordance with V.A.T.C., Tax Code, Section 312.204(a), which requires the Owner of the property to make specific improvements or repairs to the property in order to be eligible for tax abatement, Company will expend three million six hundred thousand ($3,600,000) for the expansion of an existing facility and eight million eight hundred thousand ($8,800,000) on new equipment to be located within the enterprise zone created by Ordinance No. 2000-00032. SECTION 9. Electricity Provider. Company agrees to utilize Lubbock Power & Light (LP&L) for electrical services for the term of the tax abatement. If company chooses to utilize a different Power Company, this contract shall be terminated. AGREEMENT - SEMMATERiALS, LP. PAGE 3 SECTION 10. City Access to Property, Company 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 Company's application for tax abatement, attached as Exhibit "C", and this Agreement. 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 1: 100% Year 2: 80% Year 3: 60% Year 4: 40% Year 5: 20% SECTION 12. Commencement Date. This Agreement shall commence January I of the tax year after the required improvements are substantially completed and shall expire five (5) years after such date. SECTION 13. 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 15C day of October, 2006, and shall be completed within approximately seven (7) months from said date. Company may request an extension of the above date from City in the event circumstances beyond the control of Company necessitates 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 14. Drawings of Improvements. Company shall furnish City with one set of as built plans and drawings of the improvements to be made pursuant to the terms of this Agreement. SECTION 15. 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 16. Recapture. Company agrees to be bound by and comply with all the terms and provisions for recapture of abated taxes in the event of default by Company pursuant to law and as set forth in Guidelines and Criteria for Tax Abatement adopted by Resolution No. 2005-RO421 of the City Council of the City of Lubbock. AGREEMENT — SEMMATERIALS, LP PAGE 4 SECTION 17. 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 18. Compliance. The City may cancel or modify this Agreement if Company fails to comply with the Agreement. SECTION 19. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: CITY OF LUBBOCK Assistant City Manager Development Services P.O. Box 2000 Lubbock, Texas 79457 SEMMATERIALS, L.P. Frank R. Panzer, President 6502 South Yale Avenue Tulsa, OK 74136 SECTION 20. 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. [signature page to follow] AGREEMENT - SEMMATERIALS, LP. PAGE 5 EXECUTED this 7th day of December , 2006. SEMMATERIALS, L.P., CITY OF LUBBOCK By: SemOperating G.F., L.L.C., A Municipal Corporation Its general p er By: Frank R. Panzer DAVID A. OILLER, MAYOR President of SemMaterials, L.P. Tax Abatement Agmt-SemMaterials November 4, 2006 ATTEST: q�" 2==� Rebecca Garza, City Secretary ts APPRO D S T CONTENT: Rob Allis sig an Manager Development Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section AGREEMENT - SEMMATERIALS, LP PAGE 6 Resolution No. 2006-RO575 Exhibit "A" Legal Descriptions of Property Following are the legal descriptions of the parcels included in the tax abatement. Parcel 1 and 2 Legal description of land: TRACT I: All that portion of Tract 2, Marvels Industrial Additional to the City of Lubbock, Lubbock County, Texas, according to the Map, Plat, and/or Dedication Deed thereof, recorded in Volume 950, Page 403, Deed Records of Lubbock County, Texas, being further described as follows: BEGINNING at a '/2" iron rod (set) at the Northeast corner of said Tract 2, which bears South 2683.1 feet and West 32.1 feet from the Northeast corner of Section 16, Block A, Lubbock County, Texas; REVISED GF # 00-5376 THENCE South, along the East line of said Tract 2, a distance of 500.00 feet; THENCE West a distance of 185.8 feet to a3/4" iron rod; THENCE South a distance of 236.00 feet; THENCE West a distance of 0.42 feet; THENCE South a distance of 224.8 feet to a 1/2" iron rod flush with a building wall; THENCE South 19° West a distance of 135.17 feet to a'/z" iron rod in the west line of said Tract II; THENCE North, along the West line of said Tract 2, a distance of 1088.40 feet to a'/z" iron rod at the Northwest corner of said Tract 2; THENCE East, along the North line of said Tract 2, a distance of 230.00 feet to the POINT OF BEGINNING. TRACT II: All that strip of land located on both sides of the common line between Sections 15 and 16, Block A, Lubbock County, Texas bounded by the East by a line parallel with and 47.9 feet East of said Section line, and on the West by a line parallel with and 32.1 feet West of said Section line, being further described as follows: Exhibit "A" Legal Descriptions of Property BEGINNING at a 3/4" rod which bears South 2683.1 feet and East 47.9 feet from the Northeast corner of Section 16 and the Northwest corner of Section 15, Block A, Lubbock County, Texas; THENCE South a distance of 500.00 feet to a 3/4" rod; THENCE West a distance of 80.00 feet to a point in the West line of Tract 2, Marvel's Industrial Addition to the City of Lubbock, Lubbock County, Texas; THENCE North, along the East line of said Tract 2, a distance of 500.00 feet to the Northeast corner of said Tract 2; THENCE East a distance of 80.00 feet to the POINT OF BEGINNING. TRACT III: A 30.00 foot wide strip of land lying contiguous to and westerly of Lot 2, Tract 3 of Marvels Industrial Addition to the City of Lubbock, as established by Certificate of Dedication recorded February 7, 1966 in Volume 1072, Pages 560 et seq., Deed Records of Lubbock County, Texas, situated in the E '/Z of Section 16, Block 1, T.T.R.R. Co. Survey, Lubbock County, Texas, and being a portion of that certain 95.56 acre tract of land described in Deed from Walker Stanton, et al dated June 20, 1950, recorded in Book 417, Page 36, Deed Records of Lubbock County, Texas, described as follows, to -wit: COMMENCING at the Southwest corner of said Lot 2, Tract 3 of Marnels Industrial Addition; THENCE Northerly along the Westerly boundary of said Lot 2, Tract 3 along a curve to the left, have a radius of 620.76 feet with long chord bearing North 09°26'27" East, 107.76 feet to the true point of beginning; THENCE continuing Northerly along said curve and along the Westerly boundary of said Lot 2, Tract 3 an arc distance of 50.05 feet to a point of tangency; THENCE North 00°09'30" West, 523.8 feet, more or less, to a point in the South line of Lot 1, Tract 3 of said Marnels Industrial Addition to the City of Lubbock; THENCE West along said South line 30.0 feet; THENCE South 00°09'30" East, 523.8 feet, more or less, to a point 30.0 feet West of the hereinabove described point of tangency; THENCE Southerly along a tangential curve to the right having a radius of 590.76 feet, an are distance of 47.72 feet; THENCE Easterly 30.0 feet to the true POINT OF BEGINNING. Exhibit "A" Legal Descriptions of Property REVISED GF # 00-5376 TRACT IV: A portion of Tract No. 2, Marnels Industrial Addition to the City of Lubbock, Lubbock County, Texas, according to the map, plat and/or dedication deed thereof recorded in Volume 950, Page 403, Deed Records of Lubbock County, Texas and that 80 foot wide tract of land adjacent thereto located in the West Half of Section 15 and the East Half of Section 16, Block A, Lubbock County, Texas, being further described as follows: BEGINNING at a point in the East line of Section 16 which bears South a distance of 3,183.1 feet from the Northeast corner of Section 16, Block A, Lubbock County, Texas; THENCE West, Parallel to the North line of Section 16, at 32.1 feet pass the East line of Tract No. 2, Marnels Industrial Addition, continuing for a total distance of 217.9 feet to a '/2" iron rod with cap found at the Northwest corner of this tract; THENCE South, parallel to the East line of Section 16, a distance of 219.85 feet to a ''/2" iron rod with cap set for the Southwest corner of this tract; THENCE East, parallel to the North line of Section 16, a distance of 265.8 feet to a %" iron rod with cap set for the Southeast corner of this tract; THENCE North, parallel to the East line of Section 16, a distance of 219.85 feet to a 3/4" iron rod found for the Northeast corner of this tract; THENCE West, parallel to the North line of Section 15, a distance of 47.9 feet to the POINT OF BEGINNING. Parcel 3 Marnels Industrial, south part of tract two (2), and strip on east side Parcel 4 1619 Marshall Street: Lot 2, Tract 3, Marnels Industrial Addition, 4.57 acres, City of Lubbock, Lubbock County, Texas, as shown by the official plat thereof, recorded in Volume 1072, Page 560, of the Lubbock County Deed Records. Resolution Ido_ 2006-RO575 Exhibit "A" Legal Descriptions of Property Resolution No. 20f ` -80421 j September $, 2005 Resolution No. 2006-80575 Item No. 22 Exhibit "B" RESOLUTION JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK AND THE COUNTY COMMISSIONERS OF LUBBOCK COUNTY TO ADOPT GUIDELINES AND CRITERIA FOR INDUSTRIAL TAX ABATEMENT AGREEMENTS IN ACCORDANCE WITH THE PROPERTY REDEVELOPMENT AND TAX ABATEMENT ACT. WHEREAS, in September of 2003, Guidelines and Criteria Governing Tax Abatement for all Taxing Units within Lubbock County were approved and amended by the City in December, 2004 and by the County in April, 2005; and WHEREAS, the guidelines and criteria approved will expire under the terms of the Property Redevelopment and Tax Abatement Act upon the second anniversary of their adoption; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK AND THE COUNTY COMMISSIONERS OF LUBBOCK COUNTY: THAT the City Council of the City of Lubbock and the County Commissioners of Lubbock County hereby approve and adopt Guidelines and Criteria Governing Tax Abatement for all Taxing Units within Lubbock County, which guidelines and criteria are attached as Exhibit "A" and are made a part hereof for all intents and purposes. These guidelines shall become effective upon expiration of the previously approved guidelines. Passed by the City Council this 8th day of Septembe ATTEST: =5�-- R4becca Garza, City Secret APPRO D T CONTENT: Rob Alliso Director of Business Development APPROVED AS TO FORM: Linda Chamales, Senior Attorney Office Practice Section JOINT RESOLUTION - TAX ABATEMENT GUIDELINES FOR INDUSTRIAL PROJECTS Passed by the Lubbock County Commissioners this I Zday of fl , 2405. COUNTY OF LUBBOCK 1.0. t) / tL� Torn Head, County Judge Bill McCay, Precinct 1 sidro Gutierrez, Precinct ATTES ezr�' Doris Ruff, %&ty Clerk qam a Kitten. Precinct 2 patg���- Patti Jones, Precinct 4 CB/Tax Abatement/Guidelines/2005Guidelines/2005 Industrial Resolution Cc does: Tax Abatement Guidelines — Industrial 2005 APPROVE AS TO FORM: B.J. `Beni" Hemmeline, Civil Chief Lubbock County District Attorney JOINT RESOLUTION - TAX ABATEMENT GUIDELINES FOR INDUSTRIAL PROJECTS Resolution No. 2006-RO575 Exhibit "A" GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT FOR SELECTED TAXING UNITS CONTAINED WITHIN LUBBOCK COUNTY SECTION 1. General Puroose: The Affected Jurisdictions located wholly within or partially within the County of Lubbock, Texas, are committed to the promotion of high quality development in all parts of Lubbock County, Texas; and to an ongoing improvement in the quality of life for the citizens residing within the Affected Jurisdictions. The Affected Jurisdictions recognize that these objectives are generally served by enhancement and expansion of the local economy. The Affected Jurisdictions 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 Jurisdictions. It is the policy of the Affected Jurisdictions 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 Jurisdictions are 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: The County of Lubbock and 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 the 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. Base Year Value: The assessed value of property eligible for tax abatement as of January 1 preceding the execution of an Abatement Agreement as herein defined. 5. 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. 6. Expansion of Existing Facilities or Structures: The addition of buildings, structures, machinery or equipment to a Facility. 7. Existing Facility or Structure: A facility as of the date of execution of the Tax Abatement Agreement, located in or on Real Property eligible for tax abatement. 2005 Industrial Guidelines September 8, 2005 Industrial Tax Abatement Guidei..,.s September 8. 2005 Page 2 8. Facility: The improvements made to Real Property eligible for tax abatement and including the building or structure erected on such Real Property and/or any Tangible Personal Property to be located in or on such property. 9. Improvements to Real Property or Improvements: Shall mean the construction, addition to, structural upgrading of, replacement of, or completion of any facility located upon, or to be located upon, Real Property, as herein defined, or any Tangible Personal Property placed in or on said Real Property. 10. 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. 11. Modernization/Renovation of Existing Facilities: The replacement or upgrading of existing facilities. 12. New Facility:. The construction of a Facility on previously undeveloped real property eligible for tax abatement. 13. 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. 14. 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. 15. 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. 16. Productive Life: The number of years a Facility is expected to be in service. 17. Real Property: Land on which Improvements are to be made or fixtures placed. 18. 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. 19. Reinvestment Zone: Real Property designated as a Reinvestment Zone under the provisions of V.T.C.A., Tax Code, Section 312.202. 20. 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. 21. Tangible Personal Property: Any Personal Property, not otherwise defined herein and which is necessary for the proper operation of any type of Facility. Industrial Tax Abatement Guidb...,as September 8, 2005 Page 3 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 Jurisdictions. 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) Manufacturing ii) Value-added Agricultural Production including Food Processing and Machinery iii) Research and Development iv) Aviation/Avionics Production/Rehab v) Warehouse/Distribution vi) Corporate Headquarters of a Regional/National Service Center 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 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 Industrial Tax Abatement Guidt, es September 8, 2405 Page 4 5. Improvements to Real Property are eligible for tax abatement status. 6. 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. c) Facilities located within the certificated territory of the City's municipally owned electric utility, Lubbock Power and Light (LP&L) must utilize LP&L for electrical services during the term of the abatement, so long as LP&L's rates are competitive on a state-wide basis. 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 Industrial Tax Abatement Guide. A September 8, 2005 Page 5 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. 9. 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 (3/4) of its members may vary any of the above requirements when variation is demonstrated by the applicant for Tax Abatement that variation is in the best interest of the 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, (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 Industrial Tax Abatement Guid6...--s September 8„ 2005 Page 6 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; 6. 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, 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; Industrial Tax Abatement Guides- .a September 8, 2005 Page 7 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. 6. At the conclusion of the hearing described in Subparagraph 3 above, the governing body shall enter its findings as follows: Industrial Tax Abatement Guide. .a September 8, 2005 Page 8 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. 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 VI. Tax Abatement Aareement: 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. Industrial Tax Abatement Guida a September 8, 2005 Page 9 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 Industrial Tax Abatement Guide s September S, 2005 Page 10 owner defaults or otherwise fails to make improvements as provided in said Tax Abatement Agreement, and any other provision as may be required or authorized by State Law. o) Contain each term agreed to by the owner of the property. p) Require the owner of the property to certify annually to the 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. 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: 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. Industrial Tax Abatement Guide, September 8, 2005 Page 11 e) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing facility. f} 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 1. 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 Industrial Tax Abatement Guiders, S September 8, 2005 Page 12 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 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 Commercial Projects in Designated Enterprise Zones 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. 2. 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 In the event that any type of facility, (as defined in Section 11, 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 )Lqar in which to resume the production of goods and services. In the event Industrial Tax Abatement Guide ,..3 September B, 2005 Page 13 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 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 one year time period, hereinabove mentioned, shall commence upon written notification from the Affected Jurisdiction to the applicant or owner. In the event that the applicant or owner has entered into a tax abatement agreement to make improvements to a facility of any type described in 'Section 1 above, but fails to undertake or complete such improvements or fails to create all or a portion of the number of new jobs provided by the Tax Abatement Agreement, then in such event the 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. 3, 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 31st of Industrial Tax Abatement Guider September 8, 2005 Page 14 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. 7. In every case of termination set forth in Subparagraphs 1, 2, 3, 4 and a 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.CA., 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. Industrial Tax Abatement Guide,. _s September 8, 2005 Page 15 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. 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. Exhibit "C„ Resolution No. 2006-80575 APPLICATION FOR INDUSTRIAL TAX ABATEMENT IN LUBBOCK COUNTY FILING INSTRUCTIONS: This application must be submitted to the appropriate taxing jurisdiction 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 later 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: Section I - APPLICANT INFORMATION Date of Application: I (D 1)I /-ao Applicant Name: _ City of Lubbock Business Development Department P.O. Box 2000 1625 13`h Street Lubbock, TX 79457 (806)775-2019 'DQLJ1AA0JZCnr '711e e Company Name: Cm 1 u r, 2 eC� P Address: Phone: 1 { 0 (n - n (C-3 - of � (01 Fax:�S U (n - rl (n 3 - a r Ca -1 Applicants Representative on this project: Name: S Lk w,.) Address; f 9 -9 -rt"' -'i 9 Ll Phone: 'T U (.0 - "I �, -� -9 y (o l L, -n; ted. Type of Ownership: [ ] Corporation ['►-jam Partnership [ ] Proprietorship Total Current Number Employees: 9 Corporate Annual Sales Per Year: SI 0q O ~] ([7 Annual Report Submitted? [?,I' Yes [ ] No INDAPP2000 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 X Expansion [ J 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) K Yes [ ] No (c) Check the following target industry which is applicable to your company Xf Manufacturing Facility: Electron ios/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 [ J 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 J Existing Company (f) If New Company checked, which of the following statements apply to the project: 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: X The project will add at least $500,000 in real estate assessed valuation [ ] The project will add at least $1 million of personal property assessed valuation The project will add at least 20 new permanent jobs (h) Address of proposed facility: I Lp11. Mac- Shy, l 1 SN29-t7t- ) L,b loouL , 11 21 Ct 4 Q3 (i) Legal description of proposed facility: Yom' Ck CK Q) r ne prolJosleb'facility is located in: School District: D u . 1 u a'&' ht i C 5 c.l- City: �-�h � a c � . Industrial Tax Abatement Application Page 3 (k) Describe product or service to be provided: AJ n --)an u G. c-� iz, ',, C}.r>,i_ Section III - FACILITY DESCRIPTION Please attach the following: 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 Part A - Current Investment in Existing Improvements: ; 1 3 a a Part B - Permanent Employment Estimates: (1) If existing facility, what is the current plant employment: I (2) Estimated number of new jobs to be created and time frame for creation of jobs: --T�D b0- h' +' es.I b.e.TL'aa'-J New Jobs 15 Time Frame -rc.n t c3 rxi rlldx h 31) d UD 7 Industrial Tax Abatement Application Page 4 (3) Opening of improvements: (Month) of (Year) 200. Part C - Permanent Payroll Estimates: (1) If existing facility, what is the current plant payroll `r d 400/ (rZ'. (2) Estimated amount of new payroll, *' 10 0, DU 0 / i�nonl�y Part D - Construction and Employment Estimates: (1) Construction start: Month lou Year 20 0(o, (2) Number of construction jobs: At Start a 0 Peak (3) Number of man-years: 3 5 Part E - School District Impact Estimates; Give Estimated number of: Families transferred to area 10 Children added to ISD's 13L C� Part F - City Impact Estimates: (1) Volume of treated water required from City S© O gallons per day. (2) Volume of effluent to be treated by City 52 O _ gallons per day. Finish a•5 (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, �;s poSQ_ -kms Cis �' �r�r C; r� o-(- t-�a (4) Has permitting been started? WYes _1 No ApP i � z }Psz -R rv-' Y-� r,�) <Z2� b 9- rr'Gi.Q 2 b n V I SA cc a 1"" t�Qr :.,AIL& a+- pr�,�j�c_x- ►5 oclr, �CA�,. Part G - Estimated Appraised Value on Site: LAND PERSONAL IMPROVEMENTS PROPERTY Value of Existing Facility Before New Construction (From Central Appraisal District) Value of New Improvements Estimated Total Value After Improvements Part H - Variance: NA 9 � 3 A, '-3q 114 U15 10191q, 901 Industrial Tax Abatement Application Page S (a) Is a variance being sought under Section IV 9(d) of the "Guidelines"? [ ] Yes >!( 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? [ ] Yes p< 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. Company I n ,f Q-90 R,(A U l ILL( Q Panted Narfie of Cdmpany Official Q 4. -i'' -t— Title of Company Official SemMaterials, LP Industrial Tax Abatement Application Section 1I, item (i) attachment I am enclosing the legal descriptions of all of the property that will be involved in this improvement project. 1) Marvels Industrial, south part of tract two (2), strip on east side 2) Lot 2, Tract 3, Marnels Industrial Addition to the City of Lubbock, Lubbock County, Texas, as shown by the official plat thereof, recorded in Volume 1072, Page 560, of the Lubbock County Deed Records; Containing 4.57 acres, more or less. 3) A 30.0 foot wide strip of land Iying contiguous to and Westerly of Lot 2, Tract 3 of Marnels Industrial Addition to the City of Lubbock, as established by Certificate of Dedication recorded February 7, 1966 in Volume 1072, pages 560 et seq., Deed Records of Lubbock County, Texas, situation in the E1/2 of Section 16, Block A, T.T.R.R. Co. Survey, Lubbock County, Texas and being a portion of that certain 95.56 acre tract of land described in deed from Walker Stanton, et al dated June 20, 1950, recorded in Book 417, page 36, Deed Records of Lubbock County, Texas. 4) All that portion of Tract 2, Marnels Industrial Addition to the City of Lubbock, Lubbock County, Texas, according to the Map, Plat, and/or Dedication Deed thereof, recorded in volume 950, Page 403, Deed Records of Lubbock County, Texas. 5) All that strip of land located on both sides of the common line between Sections 15 and 16, Block A, Lubbock County, Texas bounded by the East by a parallel with and 47.9 feet East of said Section line, and on the West by a line parallel with and 32.1 feet West of said Section line.. 6) A portion of Tract No. 2, Marnels Industrial Addition to the City of Lubbock, Lubbock County, Texas, according to the map, plat and/or dedication deed thereof recorded in Volume 950, Page 403, Deed Records of Lubbock County, Texas and that 80 foot wide tract of land adjacent thereto located in the West Half of Section 15 and the East Half of Section 16, Block A, Lubbock County, Texas. SemMaterials, LP Attachment 2 a. Expansion of current asphalt manufacturing plant to include additional storage tanks and increase production capacity. b. See Attached Breakdown of costs Begin Oct 1, 2006 and target operational date is May 1, 2007. Resolution No. 2006-80575 New &Jri9 ng 2rojim ty 8 undary Cuttrn , m nal &mMa%riais- SemMaterials, LP Attachment 4a The project is estimated at a cost of $10 to $12 million dollars ,.i U LT-) , �a---4. ) w LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 1715 25TH STREET LUBBOCK, TEXAS 79408-3542 (806) 762-5000 EXT: 502 www.lubbockcad.org ****AUTO**MIXED AADC 793 SEMMATERIALS 'L P 6120 S YALE AVE STE 700 TULSA OK 74136-4216 �lutlrlrrlrrrl�nllrrllrrtllrlttlrlurllliltrlrrtirlrin �etll NOTICE OF APPRAISED VALUE This is NOT a Tax Bill 50494 125 Date: 05/ 15/2006 0uickRef` (Refer to this R when inquinng about your properly) R107364 R546500-00000-00025-000 Street Address: 1611 MARSHALL ST LUBBOCK 79415 Legal Description: MARNELS INDUSTRIAL N PT TR 2 & STRIP ADJACENT Overlapping County Information: DBA: KOCH MATERIALS Dear Property Owner: We have appraised the property listed above for the 2006 tax vear Rased on the annraieat date .lan„ary r nr thi- Appraised Information Last Year Proposed This Year Land 's Nlar ket Val ue 35. 61 5 2S 41 5 Agricultural Market Value 0 0 Agricultural Productivity Value 0 0 Improvements (Buildings) Appraised Value 168,920 168,920 Business Personal Property Appraised Value 0 0' Mineral Interest Appraised Value O O Total Market Value of this Property 204,535 204,535 Total Appraised Value (with Homestead Limit) 204,535 204,535 Exemptions Last ear'sTaxi ng Units Proposed Proposed Proposed Taxable Last Years Proposed ax Taxable —Appraised Exem tions Lass Exemptions) Tax Rate Estimate 204,535 Hi Plains Water 204,535 204,535 0.0013300 16.98 204,535 Lubbock County 204,535 204,535 0.261623 535.11 204,535 City Of Lubbock 204,535 204,535 0.447200, 914.68 204,535 Lubb Cnty Hospital 204,535 204,535 0.110340 225.68 204,535 Lubbock ISD 204,535 204,535 1.658900 3,393.03 *TOTAL* 5,085.48 The above tax estimates use last years tax rate for the laxing units The goveming body of each unit — school board, county commissioners, and so on — decides whether property taxes increase. The appraisal district only determines your property's value. The taxing units will set tax rotes later this year. The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected officials, and all inquiries conoeming your taxes should be directed to those officials. It you are lis or older and received the $10,000 school tax exemption on your home last year from the school listed above, your school taxes for this year will not be higher than when you first received the exemption on this home. If you improved your property (by adding rooms or buildings), your school tax ceiling may increase tar improvements. If you are a surviving spouse ago 55 or older, you may retain the school tax coiling. contact the appraisal office it you disagree with this years proposed value for your property or if you have any problems with the property description or address information. It the problem cannot be resolved, you have a right to schedule a hearing with the Appraisal Review Board (AIB) by filing a WRITTEN protest with the Board You may either use the form provided or prepare a letter (including your name, your property's description, and any appraisal *ffica actions with which you disagree). Your protest must be delivered by mail to the address above or in person at the appraisal district office before the protest deadline. It you have any questions or need more information, please contact the appraisal office at the phone number or addrasses listed above - 2001 Appraised Value: 204,543 Protest Deadline: 06/14/2006 %Chg ( 2001 to 2006) : - 0% ARB Hearings Begin: 06/07/2006 Location of ARB Hearings: 1715 26th St. Lubbock, Tx 79411 Nonce of Protest QuickRef: Legal Description: LUBBOCK CENTRAL APPRAISAL DISTRICT R107364 MARNELS INDUSTRIAL N PT TR 2 PO BOX 10542 SEMMATERIALS L P h STRIP ADJACENT 1715 26TH STREET 6120 S YALE AVE STE 700 LUBBOCK, TEXAS 79408-3542 TULSA OK 74136-4216 (806) 762-5000 EXT: 502 If you want the Appraisal Review Board (ARB) to hear and decide your case, you must file this with IIIiI��! III !IlII A�III VIII II9PI ����� I117 IIII the ARB by the date indicated in the box above. Place an X in the box(es) to Indicate the reason(s). IiPl1 I 11 ❑ Value is over market value. ❑ Property should not be taxed in this appraisal ❑ Exemption was denied, modified or cancelled. district or in one or more taxing units. ❑ Property should not be taxed in ❑ Change in use of land appraised as ag-use, open -space or timberland. (name of taxing unit) ❑ Failure to send required notice: ❑ Other: ❑_ Ag -use, open -space or other special appraisal was denied, modified or cancelled. ❑ Owner's name is incorrect. ❑ Property descripfion is incorrect. ❑ Value is unequal compared with other properties. ❑ YES ❑ NO I want the ARB to send me a copy of its hearing procedures. Signature Date Please attach information to help resolve your case. Your Daytime Phone Number Your Evening Phone Number See additional information on back. LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 171526TH STREET LUBBOCK, TEXAS 79408-3542 (806) 762-5000 EXT: 502 www,lubbockcad.org SEMATERIALS LP 6120 S YALE AVE STE 700 TULSA OK 74136-4216 7T 1 1 ­� , f v _V' t v NOTICE OF APPRAISED VALUE This is NOT a Tax Bill Date: 05/26/2006 QuickRef• (n(,te, to this M when Inquiring Shout your property) N307506 06005000020-003220 Street Address: Legal Description: INVENTORY 1611 MARSHALL ST, 100%. FULL. Overlapping County Information: DBA: Dear Properly Owner: We have appraised the property listed above for the 2006 tax vear. Based on the annraisal date January 1 of this year, the appraisal is as follows: Appralsedinforrvialion Last Year Proposed This Year Land's Market Value N/A! N/A € 0 0 AgricultLral Market Valu? Agricultural Productivity Value N/A 0 Improvements (Buildings) Appraised Value N/A 0 Business Personal Property Appraised Value N/A 0 Mineral Interest Appraised Value N/A 1,630,960 Total Market Value of this Property i N/A 1,630,960 Total Appraised Value (with Homestead Limit) N/A 1,630,960 Exemptions Las Oars Taxing Units Proposed Proposed P roposed Taxablo LastYear's, ProposedTax '- Taxable,' _ - - Appraised l Exem Boris Less Exemptions) TaxRate ;Estimate O Hi Plains Water 1,630,960 0 1,630,960 0.008300 135.37 0 Lubb Cnty Hospital 1,630,960 0 1,630,960 0,110340 1,799.60 I 0 City Of Lubbock 1,630,960 0 1,630,960 0.447200 7,293-65 0 Lubbock County 1,630,960 O 1,630,960 0.261623 4,266.97 *TOTAL* I 13,495.59 The above tax estimates use last year's tax rate for the taxing units- The governing body of each unit — school board, county commissionary, and so on — decides whether property taxes increase. The appraisal district only determines your property's value. The taxing units wilt set tax rates later this year. The Texas Legislature does notset the amount of your notal taxes. Your property tax burden is decided by your locally elected officials, and ali inquiries concerning your taxes should be directed to those officials. If you are 65 or older and received the 310,000 school tax exam ption on your home Iasi year from the school listed above, your school taxes for this year will not be higher than when you first received the exemption on this home. It you improved your properly (by adding rooms or buildings), your school tax coiling may increase for improvements- If you are a surviving spouse age 55 or older, you may retain the school tax ceiling. Contact the appraisal office if you disagree with this years proposed value for your property or if you have any problems with the property dosaiption or address information. If the problem cannot be resolved, you have a right to schedule a hearing with the Appraisal Review Board (ARB) by filing a WRITTEN protest with the Board. You may either use the form provided or prepare a letter (including your mune, your property's description, and any appraisal office actions with which you disagree). Your protest must be delivered by mail to the address above or in person at the appraisal district office before the protest deadline. It you have any questions or need more information, please contact the appraisal office at the phone number or addresses listed above. 2001 Appraised Value; N/A fChg ( 2001 to 2006): N/A Notice of Protest LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 SEMATERIALS LP 1715 26TH STREET 6120 5 YALE AVE STE 700 LUBBOCK, TEXAS 79408-3542 TULSA OK 74136-4216 (806) 762-5000 EXT: 502 Protest Deadline: 06/26/2006 ARO Hearings Begin: 06/07/2006 Location of ARB Hearings: 1715 26th St. Lubbock, Tx 79411 Uu ckHef: Legal Description: N307506 INVENTORY 1611 MARSHALL ST, 100%,FULL If you want the Appraisal Review Board (ARB) to hear and decide your case, you must file this with the ARB by the date indicated in the box above. Place an X in the box(es) to indicate the reason(s). I IIIIIII{ III IIlII VIII VIII VIII ILII Illi ILII ❑ Value is over market value. ❑ Property should not be taxed in this appraisal ❑ Exemption was denied, modified or cancelled. district or to one or more taxing units. l�I ❑❑ amber lin and use of land appraised as ag-use, open -space or Property should not be taxed in (name of taxing unit) Failure to send required notice: [] Other: ❑ Ag -use, open -space or other special appraisal was denied, modified or cancelled. Owner's name is incorrect. ❑ Property description is incorrect. ❑ Value is unequal compared with other properties. ❑ YES ❑ NO I want the ARS to send me a copy of its hearing procedures. ionature Date Your Daytime Phone Number Your Evening Phone Number LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 1715 26TH STREET LUBBOCK, TEXAS 79408-3542 (806) 762-5000 EXT: 502 www.lubbockcad.org SEMATERIALS LP 6120 S YALE AVE STE 700 TULSA OK 74136-4216 Dear Property Owner: , t I . -. - . - - NOTICE OF APPRAISED VALUE This is NOT a Tax Bill Date: 05/26/2006 ouickRef' (Refer to this B when inquiring about your property) N307505 06005000025-003220 Street Address: Legal Description: INVENTORY 1611 MARSHALL ST, 100%, FULL Overlapping County information: DBA: nnnC ..• ��.:.. , rr... .. el i � fnllnw�• vve fldvu dliljjdjbuu "I 14' 01, !l�.au uu v ,v. ...o ---- .•..• �•.•. ..----.- -- - A- raised Information - - ---- --- Year . Propose:d This Year Land's Market Value `Value, N/A N/A O 0 Agricul tunal Murl,�et N/A 0 Agricultural Productivity Value 0 Improvements (Buildings) Appraised Value N/A 0 Business Personal Property Appraised Value N/A N/A 1,630,960 Mineral Interest Appraised Value N/A 1,630,960 Total Market: Value of this Property Total Appraised Value (with Homestead Limit) N/A 1,630,960 Exemptions Las Year's ropose - -roposed.. r1D os ed :axe le as[ ear's roposptf Taxable ':. Taxing Units' A ralsed Exemptions. Less Exeni`tions TaxRaie Estimate ..' 0 Lubbock ISD 1,630,960 0 1,630,960 1.656900 27,056.00 *TOTAL* 27,056.00 The above tax estimates use Iasi year's tax rate for the taxing units. The governing body of each unit — school board. county commissioners, and so on — decides whether property taxes increase. The appraisal district only determines your property's value. The taxing units will set tax rates later this year. The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected officials, and all inquiries concerning your, taxes should be directed to those officials. If you are 65 or older and received the $10,000 school tax exemption on your home last year from the school listed above, your school taxes for this year will not be higher than when you first received the exemption on this home. H you improved your property (by adding rooms or buildings), your school tax ceiling may increase for improvements. It you are a surviving spouse age 55 or older, you may retain the school tax ceiling. Contact the appraisal office it you disagree with this year's proposed value for your property or it you have any problems with the property description or address information. It the problem cannot be resolved, you have a right to schedule a hearing with the Appraisal Review Board (ARB) by filing a WRITTEN protest with the Board. You may either use the form provided or prepare a letter (including your name, your property's description, and any appraisal office actions with which you disagree), Your protest must be delivered by mail to the address above or in person at the appraisal district office before the protest deadline. It you have any questions or need more information, please contact the appraisal office at the phone number or addresses listed above. 2fl01 Appraised Value: N/A Protest Deadline: 06/26/2006 2001 ( 2001 se 2006) : N/A ARB Hearings Begin: 06/07/2006 Location of ARB Hearings: 1715 26th St. Lubbock, Tx 79411 Notice o$ Protest LUBBOCK CENTRAL APPRAISAL DISTRICT PQ BOX 10542 SEMATERIALS LP 1 71 5 26TH STREET 6120 S YALE AVE STE 700 LUBBOCK, TEXAS 79408-3542 TULSA OK 74136-4216 (606) 762-5000 EXT: 502 1f you want the Appraisal Review Board (ARIB) to hear and decide your case, you must file this with the ARB by the date indicated in the box above. Place an X in the box(es) to indicate the reason(s). ❑ value is over market value. QuickRef: Legal Description: N307505 INVENTORY 1611 MARSHALL ST, 100%,FULL ❑ Property should not be taxed in this appraisal ❑ Exemption was denied, modified or cancelled. district or in one or more taxing units. Property should not be taxed in (name of taxing unit) ❑ Failure to send required notice: ❑ Other: Change in use of land appraised as ag-use, open -space or timber land. ❑ Ag -use, open -space or other special appraisal was denied, modified or cancelled. ❑ owner's name is incorrect. ❑ Property description is incorrect. ❑ value is unequal compared with other properties. ❑ YES ❑ NO I want the ARB to send me a copy of its hearing procedures. Signature Date Your Daytime Phone Number - _J .:---I :_- Your Evening Phone Number LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 1715 26TH STREET LUBBOCK, TEXAS 79408-3542 (806) 762-5000 EXT: 502 www.lubbockcad.org ****AUTO**MIXED AADC 793 NOTICE OF APPRAISED VALUE This is NOT a Tax Bill SEMATERIALS LP 6120 S YALE AVE STE 700 TULSA OK 74136-4216 IltrtLLtl'tttllt,IlrtlltttlttLtLLrtIItllttLrrltJ�LtJttIl 3532 15 Date: 05/26/2006 OuickRef' iRerer to this N when inquiring about your properly) N307507 06005000010-003220 Street Address: Legal Description: PERSONAL PROPERTY INCL TANKS AND FF&E 1611 MARSHALL ST, 100%, FULL Overlapping County information: DBA: Dear Property Owner: We have appraised the property listed above for the 2006 tax year. Based on the appraisal date January 1 of this year, the appraisal is as follows: Appraised Information Last Year Proposed This Year . Land's Market Value N/A 0 Aor;cultural. Market Value N/A. O Agricultural Productivity Value + N/A 0 Improvements (Buildings) Appraised Value N/A 0 Business Personal Property Appraised Va)ue N/A 0 Mineral Interest Appraised Value N/A 2,082,510 Total Market Value of this Property N/A 2,082,510 Total Appraised Value (with Homestead Limit) N/A 2,082,510 Exemptions Last ears Taxing units' . roposad Proposed . Proposed axable Last Years Proposers ax Taxable; A raised Exemptions Less Exemptions Tax Mali Estimate O Lubbock County 2,082,510 0 2,082,510 0.261623 5,448.33 0 City Of Lubbock 2,082,510 0 2,082,510 0.447200 9,312.98 O Lubbock ISD 2,082,510 0 2,082,510 1-658900 34,546.76 0 Lubb Cnty Hospital 2,082,510 0 2,082,510 0.110340 2,297.84 O Hi Plains Water 2,082,510 0 2.082,510 0.008300 172.85 *TOTAL* I 1 51,778-76 The above tax estimates use last year's tax rate for the taxing units- The governing body of each unit — school board, county commissioners, and So on — decides wnetner properly taxes increase. The appraisal district only determines your property's value. The taxing units will set lax rates later this year. The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected officials, and all inquiries concerning your taxes should be directed to those officials. If you are 65 or older and received the 310,004 school tax exemption on your home last year from the school listed above, your school taxes for this year will not be higher then when you first received the exemption on this home. If you improved your property (by adding rooms or buildings), your school tax coiling may increase for improvements. If you are a surviving spouse age 55 or older, you may retain the school tax ceiling. contact the appraisal office it you disagree with this year's proposed value for your property or if you have any problems with the property doscripfion or address information. If the problem cannot be resolved, youhave a right to schedule a hearing with the Appraisal Review Board (AIB) by filing a WRITTEN protest with the Board. You may either use the form provided or prepare a letter (including your name, your property's description, and any appraisal office actions with which you disagree)- Your protest must be delivered by mail to the address above or in person at the appraisal district office before the protest deadline - It you have any questions or need more information, please contact the appraisal office at the phone number or addresses listdd above. 2001 Appraised Value: N/A %Chg (2001 to 2006): N/A Notice 0; PrViesi LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 SEMATElIALS LP 1715 26TH STREET 6120 S YALE AVE STE 700 LUBBOCK, TEXAS 79408-3542 TULSA OK 74136-4216 (806) 762-5000 EXT: 502 if you want the Appraisal Review Board (ARB) to hear and decide your case, you must file this with the ARB by the date indicated in the box above. Place an X in the box(es) to indicate the reason(s). Value is over market value Protest Deadline: 06/26/2006 ARB Hearings Begin: 06/07/2006 Location of ARB Hearings: 1715 26th St. Lubbock, Tx 79411 (juicknef: Legal Description; N307507 PERSONAL PROPERTY INCL TANKS AND FF&E 1611 MARSHALL ST, 100 0, FULL [] Property should not be taxed in this appraisal ❑ Exemption was denied, modified or cancelled. district or in one or more taxing units. [] Property should not be taxed in (name of taxing unit) ❑ Failure to send required notice: ❑ Other: D Change In use of land appraised as ag-use, open -space or timber land. Ag -use, open -space or other special appraisal was denied, modified or cancelled. ❑ Owner's name is incorrect. Property description is incorrect. [] Value is unequal compared with other properties. ❑ YES ❑ NO I want the ARB to send me a copy of its hearing procedures. Signature Date Your Daytime Phone Number Your Evening Phone Number LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 1715 26TH STREET LUBBOCK, TEXAS 79408-3542 (806) 762-5000 EXT: 502 www.lubbockcad.org SEMATERIALS LP 6120 S YALE AVE STE 700 TULSA OK 74136-4216 Dear Property Owner: f t 1 I a. �. .. ­ -- a t NOTICE OF APPRAISED VALUE This is NOT a Tax Bill Dale: 05/26/2006 OuickRef: (;Afar i® This p when inquiring about your property) N307504 06005000027-003220 Street Address: Legal Description: SUPPLIES 1611 MARSHALL ST, 100%, FULL Overlapping County Information: DBA: we nave appiraises ure ro nn earns, a.,., � ,.,, sr,e --__ ..... - Appraised Information ........................... LUBBOCK CENTRAL APPRAISAL DiSTRICT .-•_-. _--- - -- Last Year ' SEMATERIALS LP Proposed This Year ... . Land's Market Value LUBBOCK, TEXAS 79408-3542 TULSA OK 74136-4216 (80+6) 762-5000 EXT: 502 N/A N/A O 0 Agr cultural Market Val(:e Place an X in the box(es) to indicate the reason(s). N/A O Agricultural Productivity Value 0 Improvements (Buildings) Appraised Value N/A O Business Personal Property Appraised Value N/A N/A 500 Mineral Interest Appraised Value N/A 500 Total Market Value of this Property N/A 500 Total Appraised Value (with Homestead Limit) Exemtions La$ Year's ' roposed, Propo d Idi.: roposed Taxa le Last t ear's Proposed ax Taxing Units Taxable Appraised Exemptions Less Exem tions Tax Rate Estirnate O Lubbock County 500 O 500 0.261623 1.31 O City Of Lubbock 500 O 500 0.447200 2-24 O Lubbock ISD 500 O 500 1.658900 8.29 O Lubb Cnty Hospital 500 O 500 0.110340 .55 O Hi Plains Water 500 O 500 0.008300 .04 *TOTAL* I 1 12.43 The above lax estimates use last year's tax rate for the taxing units- The governing body of each unit - school board, county commissioners, and so on - decides whether property taxes increase. The appraisal district only determines your property's value_ The taxing units will set tax rates later this year_ The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected Officials, and all inquiries concerning your taxes should be directed to those officials. It you are 65 or older and received 1ho $10,000 school tax exemption on your home last year from the school listed above, your school taxes for this year will not be higher than when you first received the exemption on this home. It you improved your property (by adding rooms or buildings), your school tax calling may increase for improvements. if you are a surviving spouse age 55 or older, you may retain the school lax ceiling_ Contact the appraisal office it you disagree with this years proposed value for your property or if you have any Problems with the property description or address information. 111he problem cannot bre resolved, you have aright 10 schedule a hearing with the Appraisal Review Board (ARa) by lihng a WRITTEN protest with the Board. You may either use the form provided or prepare a letter (including your name, your property's description, and any appraisal office actions with which you disagree). Your protest must be delivered by mail to the address above or in person at the appraisal district office before the protest deadline. If you have any questions or need more information, please contact the appraisal office at the phone number or addresses listed above. Appraised Value: N/A Protest Deadline: 06/26/2006 2001 A 2001 ( 2001 se 2006) : NIA ARB Hearings Begin: 06/07/2006 Location of ARB Hearings: 1715 26th St. Lubbock, Tx 79411 Notice of Proiest LUBBOCK CENTRAL APPRAISAL DiSTRICT PO BOX 10542 SEMATERIALS LP 1715 26TH STREET 6120 5 YALE AVE STE 700 LUBBOCK, TEXAS 79408-3542 TULSA OK 74136-4216 (80+6) 762-5000 EXT: 502 If you want the Appraisal Review Board (ARB) to hear and decide your case, you must file this with the ARB by the date indicated in the box above. Place an X in the box(es) to indicate the reason(s). ❑ value is over market value OuickRef: Legal Description: N307504 SUPPLIES 1611 MARSHALL ST, 100%,FULL ❑ Property should not be taxed in this appraisal Exemption was denied, modified or cancelled. district or in one or more taxing units. Change in use of land appraised as ag-use, open -space or ❑ Property should not be taxed in timber land. (name of taxing unit) [� Failure to send required notice: ❑ Other: Ag -use, open -space or other special appraisal was denied, modified or cancelled. ❑ Owner's name is incorrect. ❑ Property description is incorrect. ❑ Value is unequal compared with other properties. ❑ YES ❑ NO I want the ARB to send me a copy of its hearing procedures. gnature Date Your Daytime Phone Number Your Evening Phone Number nn k—L, LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 1715 26TH STREET LUBBOCK, TEXAS 79408-3542 (806) 762-5000 EXT: 502 www.lubbockcad.org SEMATERIALS LP 6120 S YALE AVE STE 700 TULSA OK 74136-4216 NOTICE OF APPRAISED VALUE This is NOT a Tax Bill Date: 05/26/2006 QuickRef' (Paler lo This x when inquiring about your properly) N307503 06005000030-003220 Street Address: Legal Description: VEHICLES 1611 MARSHALL ST, 100%, FULL Overlapping County Information: DBA: Dear Property owner We have appraised the orooertv listed above for the 2006 tax year Racnri An the nnn,,ic,i n,ra hh, — 1 .,r a;: ,. a A raised Information _ __. —____ - _....._ _ ............ ... ....,., ., Last Year ,,� Qa, .,,o o ra,awr ea oa wuvwa. Proposed Tttis Year'; Land's Market Value N/A 0 Agi cultural Market Value N/A O Agricultural Productivity Value N/A O Improvements (Buildirgs) Appraised Value N/A 0 Business Personal Property Appraised Value N/A 0 Mineral Interest Appraised Value N/A 262,140 Total Market Value of this Property N/A 262,140 Total Appraised Value (with Homestead Limit) N/A 262,140 Exemptions Last ears Taxable Taxing Units ropose Proposed; ropose .,axe to Z: as Year's Proposed ak A raised Exam tion§ less Exem tions Tax FtMe Estimate . 0 Lubbock County 262,140 0 262,140 0-261623 685.82 0 City Of Lubbock 262,140 0 262,140 0.447200 1,172-29 0 Lubbock ISD 262,140 0 262,140 1.658900 4,348.64 0 Lubb Cnty Hospital 262,140 0 262,140 0.110340 289.25 0 Hi Plairs Water 262,140 0 262,140 0.008300 21-76 *TOTAL* 6,517.76 The above tax estimates use last year's tax raja for the taxing units. The governing body of each unit —school board, county commissioners, and Se on —decides whether property taxes increase. The appraisal district only determines your property's value- The taxing units will set tax rates later this year. The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected officials, and all inquiries concerning your taxes should be directed to those officials. If you are 65 or older and received the $10,000 school tax exemption on your home last year from the school listed above, your school taxes for this year will not be higher than when you first received the exemption on this home. It you improved your property (by adding rooms or buildings), your school tax ceiling may increase for improvements. If you are a surviving spouse age 55 or older, you may retain the school tax ceiling. Confect the appraisal office it you disagree with this years proposed value for your property or if you have any problems with the property description or address information. It the problem cannot be resolved, you have a right to schedule a hearing with the Appraisal Review Board (AAB) by filing a WRITTEN protest with the Board. You may either use the form provided or prepare a letter (including your name, your property's description, and any appraisal office actions with which you disagree). Your protest must be delivered by mail to the address above or in person at the appraisal district office before the protest deadline. It you have any questions or need more information, please contact the appraisal office at the phone number or addresses listed above. 2001 Appraised Value: N/A %Chg ( 2001 to 2006) : N/A lV�ta(a of r-ri C:�fr LUBBOCK CENTRAL APPRAISAL DISTRICT PO BOX 10542 SEMATERIALS LP 1715 26TH STREET 6120 S YALE AVE STE 700 LUBBOCK, TEXAS 79408-3542 TULSA OK 74136-4216 (806) 762-5000 EXT: 502 If you want the Appraisal Review Board (ARB) to hear and decide your case, you must file this with the ARB by the date indicated in the box above. Place an x in the box(es) to indicate the reason(s). ❑ Value is over market value Protest Deadline: 06/26/2006 ARB Hearings Begin: 06/07/2006 Location of ARB Hearings: 1715 26th St. Lubbock, Tx 79411 QuickRe:: Lagan Descc:wtion: N307503 VEHICLES 1611 MARSHALL ST, 100%,FULL ❑ Property should not be taxed in this appraisal] Exemption was denied, modified or cancelled. district or in one or more taxing units. ❑ Property should not be taxed in ❑ Change in use of land appraised as ag-use, open -space or timber land. (name of taxing unit) F] Failure to send required notice: ❑ Other: ❑ Ag -use, open -space or other special appraisal was denied, modified or cancelled. ❑ Owner's name is incorrect. Property description is incorrect. ❑ value is unequai compared with other properties. ❑ YES ❑ NO I want the ARB to send me a copy of its hearing procedures. ignature Date Your Daytime Phone Number Your Evening Phone Plumber Resolution No. 2006-RO575 SemMaterials Building Improvements and Machinery and Equipment Machinery and Equipment Item No. Description Total 1000 Major Equipment AC Tank - 131 $ 795,136 AC Tank - 134 795,136 Concentrate Tank 206,353 AC Tanks 233,804 Addititive Tanks 191,408 Mix Tanks 211,133 4000 Reaction Tanks 307,953 Return Tank 63,575 Sulfur System 97,700 HFD System 30,084 6000 Polymer System 110,210 Steam Boiler System 473,736 8000 Hot Oil System 324,917 Heat Exchangers 195,911 Loading Rack 198,025 Rail Car Fall Protection 146,850 Emulsion Milling Controls 95,770 Odor System 264,328 Rail Car Spot Equipment 33,375 Blender Skids 311,241 Transfer and Process Pumps 514,192 Forklift 22,250 Strainers 197.369 5000 Piping Winterfill Area 311,250 PMAC Area 1,578,125 7000 Insulation Tanks 441,819 Piping 361,250 8000 Other Hot Oil 65,081 Boiler Upgrades 20,831 Safety Equipment 55,625 Lab Equipment 178,000 Total Equipment $ 8,832,437 Total Eligible $ 12,464,396 Building Improvements Item No. Description Total 3000 Civil/Structural Tank Foundations 220,000 Site Prep 225,000 Utilities 200,000 Equipment Foundations & Support 500,000 Pipe Bridges 111,584 Parking Lot and Landscaping 66,750 4000 Building Related Warehouse 360,000 Office 75,000 Boiler and Heater Buildings 165,000 6000 Electrical Power and Control 1,245,625 8000 Engineering and Design Engineering 463,000 Total Building Improvements $3,631,959