Loading...
HomeMy WebLinkAboutResolution - 2006-R0559 - Tax Abatement Agreement - Teinert Metals Inc. - 11/21/2006Resolution No. 2006-RO559 November 21, 2006 Item No. 5.13 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 Teinert Metals, Inc. 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 21st day of November , 2006. DAVID A. MILLER, MAYOR ATTEST: Rebe ca Garza, City Secretary APPROV DS CONTENT: ] 1 7 Rab All' n, Assis ity Manager Develo ment Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section LC. cityatt / Linda / Res -'rax Abatement-Teinert October 9, 2006 AGREEMENT STATE OF TEXAS COUNTY OF LUBBOCK § Resolution No. 2006-RO559 This Agreement made this 21st day of November , 2006, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City"), and Teinert Metals, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 13`x' day of June, 2006 an application for tax abatement for improvements to real property and tangible personal property at 5221 Martin Luther King, Jr. Boulevard, Lubbock, Texas, which is further described in Exhibit "A"; and WHEREAS, upon review of the above application it was determined that the facility and real property is located in the Lubbock 2000 South 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-RO421 of the City on September 8, 2005; and WHEREAS, the City did pass Ordinance No. 2000-00032 creating the Lubbock 2000 South Enterprise Zone for commercial and industrial tax abatement, said zone including the area which is described in the attached Exhibit "A"; and AGREEMENT - TEINERT METALS, INC. 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 construction of a new 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 construction of a new 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 - TEINERT METALS, INC. PAGE 2 SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section IV(6) of the Guidelines and Criteria Governing Tax Abatement for selected taxing units contained within Lubbock County and heretofore adopted by the City Council by Resolution No. 2005-RO421 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 constructing a new facility, as set forth in Section IV(3)(b) of the amended 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 S. Value of Improvements. In accordance with V.A.T.C., Tax Code, Section 312.204(a), which requires the Owner of the property to make specific improvements or repairs to the property in order to be eligible for tax abatement, Company will expend one minion five hundred thousand dollars ($1,500,000) for the construction of a new facility and one hundred thousand dollars ($100,000) 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 - TEINERT METALS, INC. 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 1 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 construct a new facility as described in Exhibit "C". Company further states that the proposed improvements to the property above mentioned shall commence on the 1! day of Auggst, 2006, and shall be completed within approximately five (5) 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 - TEINERT ]METALS, INC. 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 TEINERT METALS, INC. Randy Teinert PO Box 3217 Lubbock, TX 79452 AGREEMENT - TEINERT METALS, INC. PAGE 5 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. EXECUTED this 21st day of November , 2006. TEINERT METALS INC. Tax Abatement Agmt-Teinert May 26, 2005 CITY OF LUBBOCK A Municipal Co ar tion DAVID MILLER, MAYOR ATTEST: Re ecca Garza City Secretary APPROV D CONTENT: Rob All' n, Ass' tant_Ctl7y Manager Development Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section AGREEMENT -- TEINERT METALS, INC. PAGE 6 Resolution No. 2006-80559 Exhibit "A" Teinert Metals, Inc. Plat Map Tract A-2 Breedlove Addition to the City of Lubbock, Lubbock County, Texas ry �c�x a �a�s re; rs ALLY+61G171'S JdiirShEMa�'rS Q &PGf B aur7rgAoar&w mar A07' aArrFO Resolution No. 20R0421 September S, 2005, Resolution No. 2006-RO559 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 COMMSSIONERS 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: O to �- -'e -.e- =�� R ecce Garza, City Secret APPRQ D AjS T CONTENT: M 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 Lday of Iq , 2005. COUNTY OF LUBBOCK y / e. A`,{ Tom Head, County Judge Bill McCay, Precinct 1 l sidro Gutierrez, Precinct ATTES Doris Ruff, ty Clerk Jams Kitten, Precinct 2 Patti Jones, Precinct 4 CB/Tax Abatement/Guidelines/20050uidelinm)2005 Industrial Resolution Ca docs: Tax Abatement Guidelines — Industrial 2005 APPROVE AS TO FORM; B.J. `Beni" Hemrneline, Civil Chief Lubbock County District Attorney JOINT RESOLUTION - TAX ABATEMENT GUIDELINES FOR INDUSTRIAL PROJECTS Exhibit "A" GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT FOR SELECTED TAXING UNITS CONTAINED WITHIN LUBBOCK COUNTY SECTION L General Purpose: 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. 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, 2006 Industria! 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 Guide ----es 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 r Industrial Tax Abatement Guide .es September 8, 2005 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 GuidL ;s 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 fled 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 Guide,. 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; T 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 Guide,,, _s 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. ,s 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. & At the conclusion of the public hearing herein required and upon the affirmative finding of the governing body as required by Subsection 7 above set forth, the governing body may designate a reinvestment zone in accordance with the provisions of V.T.C.A., Tax Code, Sections 312.201 or 312.401, whichever Section shall be applicable under the premises. 9. The designation of a reinvestment zone expires five years after the date of the designation and may be renewed for periods not to exceed five years, except that a reinvestment zone that is a state enterprise zone is designated for the same period as a state enterprise zone as provided by Chapter 2303, Government Code. The expiration of the designation does not affect an existing tax abatement agreement made in accordance with V.T.C.A., Tax Code, Section 312.201 through Section 312.209. 10. Designation of an area as an enterprise zone under the Texas Enterprise Zone Act, Chapter 2303, Subchapter C, Texas Government Code, constitutes designation of the area as a reinvestment zone under Subchapter B of the Property Redevelopment and Tax Abatement Act without further hearing or other procedural requirements other than those provided by the Texas Enterprise Zone Act, Chapter 2303, Subchapter C, Texas Government Code. SECTION VI. Tax Abatement Agreement: 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 Guidf s 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 prier 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 1V, 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. 1 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. i) 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 B, 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. a 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 Guideii,. 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 ll, 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 31 st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. The burden shall be upon the applicant or owner to prove to the satisfaction of the Affected Jurisdiction to who the application for tax abatement was directed that the discontinuance of producing goods or services was as a result of fire, explosion, or other casualty or accident of natural disaster or other event beyond the control of applicant or owner. In the event that applicant or owner meets this burden and the Affected Jurisdiction is satisfied that the discontinuance of the production of goods or services was the result of vents beyond the control of the applicant or owner, then such applicant or owner shall have a period of one year in which to resume the production of goods and services. In the event Industrial Tax Abatement Guidei,..j September 8, 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. 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 31 st of the following year. Taxes abated in years prior to the year of termination shall be payable to each Affected Jurisdiction within sixty (60) days of the date of termination. 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 Guide, 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 5 above, the Affected Jurisdiction to which the application for tax abatement was directed shall determine whether default has occurred by Owner (Applicant) in the terms and conditions of the Tax Abatement Agreement and shall so notify all other Affected Jurisdictions. Termination of the Tax Abatement Agreement by the Affected Jurisdiction to which the application for tax abatement was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all other Affected Jurisdictions. In the event that a tax abatement agreement is terminated for any reason what so ever and taxes are not paid within the time period herein specified, then in such event, the provisions of V.T.C.A., Tax Code, Section 33.01 will apply. SECTION X. Miscellaneous: 1. Any notice required to be given by these criteria or guidelines shall be given in the following manner: a) To the owner or applicant: written notice shall be sent to the address appearing on the Tax Abatement Agreement. b) To an Affected Jurisdiction: written notice shall be sent to the address appearing on the Tax Abatement Agreement. 2. The Chief Appraiser of the Lubbock Central Appraisal District shall annually assess the Real and Personal Property comprising the reinvestment zone. Each year, the applicant or owner receiving tax abatement shall furnish the chief Appraiser with such information as may be necessary for the abatement. Once value has been established, the Chief Appraiser shall notify the Affected Jurisdictions which levy taxes of the amount of assessment. 3. Upon the completion of improvements made to any type of Facility as set forth in Section VIII, Subparagraph 1 of these criteria and guidelines a designated employee or employees of any Affected Jurisdiction having executed a tax abatement agreement with applicant or owner shall have access to the Facility to insure compliance with the Tax Abatement Agreement. 4. A tax abatement agreement may be assigned to a new owner but only after written consent has been obtained from all Affected Jurisdictions which have executed such an agreement with the applicant or owner. Industrial Tax Abatement Guide,. _s September 8, 2005 Page 35 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„ APPLICATION FOR INDUSTRIAL TAX ABATEMENT IN LUBBOCK COUNTY ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO: City of Lubbock Business Development Department P.O. Box 2000 1625 130 Street Lubbock, TX 79457 (806) 775-2019 Date of Application: ` rb-- Applicant Name: Company Name:e Address: Phone: 8Q - (O 4n -'m l Fax: Mo- (0 1 Applicants Representative on this project: "�) a VV\e- Name: Address: Phone: Type of Ownership [V Corporation [ ] Partnership [ ] Proprietorship Total Current Number Employees: __. _ \ �0 Corporate Annual Sales Per Year: k C) A#�'•" t . n Annual Report Submitted? [ ] Yes [-�'No I NDAPP2000 �� t, C9J�SiTi131.` to be -. fNES BOCK " `wingly ��,p.. _ ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO: City of Lubbock Business Development Department P.O. Box 2000 1625 130 Street Lubbock, TX 79457 (806) 775-2019 Date of Application: ` rb-- Applicant Name: Company Name:e Address: Phone: 8Q - (O 4n -'m l Fax: Mo- (0 1 Applicants Representative on this project: "�) a VV\e- Name: Address: Phone: Type of Ownership [V Corporation [ ] Partnership [ ] Proprietorship Total Current Number Employees: __. _ \ �0 Corporate Annual Sales Per Year: k C) A#�'•" t . n Annual Report Submitted? [ ] Yes [-�'No I NDAPP2000 Industria! Tax Abatement Application Page 2 Place a check mark in the box on those statements which are applicable to your company: (a) This application is for a: [vf New Facility [ ] Expansion [ ] Modernization (b) Is the company a producer, manufacturer or distributor of goods and services of which 50 percent or more are distributed outside of Lubbock ?(If yes, provide documentation as Attachment 1) [ qi 'Yes [ ] No (c) Check the following target industry which is applicable to your company [ ] Manufacturing Facility: Electronics/Electrical/Assembly, Semiconductor Fabrication [ ] Value-added Agricultural Production including Food Processing and Machinery [ ] Med Tech Research/Manufacturing/Assembly [ ] Aviation/Avionics Production/Rehab [✓r Warehouse/Distribution [ ] Corporate Headquarters of a Regional/National Service Center [ ] The project is not included in the above target industries, but has the potential of generating additional significant economic development opportunities in Lubbock. (Provide documentation) (d) f✓J' 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 fel' Existing Company (f) If New Company checked, which of the following statements apply to the project: [ J 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: V] The project will add at least $500,000 in real estate assessed valuation [ ] The project will add at least $1 million of personal property assessed valuation [ ] The project will add at least 20 new permanent jobs (h) Address of proposed facility: S �J' 1 1 1 \0.r ",� t,1c�n mac- 1� = � r _ \-V1 „ (i) Legal description of proposed facility: F_ V �-- kiQA a^ a='� 0A 61- (j) The proposed facility is located in: School District: L U\kc City: L.,Q,. • A. ti 1'br t an o �r-ekA A t-, ekke u Industrial Tax Abatement Application Page 3 (k) Describe product or service to be provided: � -� e Please attach the following: Attachment 2 (a) A general description of the improvements to be undertaken (example: modernization of manufacturing facility located at 4501 Peach Street and purchase of new manufacturing equipment). I�10�e1wowe c.,.��.Q$: ccS (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 th%Real Property or Existing Facility, and; 00` XSod' - r N[-'vO'Ae fir,re fai x %,1J' - 0 44 ree- � (2) list of new equipment and cost of the equipment. k6 -ran C1*4%— a -� 1�0, dao (c) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing facility. Sec &i..!►. (d) A proposed time schedule for undertaking and completing the proposed improvements. Z u` y" o (� -4 I t ry e t e .� t - �.o a io 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. NtA-o.... 4 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).�� 77 h "i... Part A - Current Investment in Existing Improvements: _ d Part B - Permanent Employment Estimates: (1) If existing facility, what is the current plant employment: (2) Estimated number of new jobs to be created and time frame for creation of jobs: New Jobs IV A Time Frame k1 /Pr Industrial Tax Abatement Application Page 4 (3) Opening of improvements: (Month) L,7C�p�er of (Year) 20 d b , Part C — Permanent Payroll Estimates: eo (1) If existing facility, what is the current plant payroll: (2) Estimated amount of new payroll : _PIA A Part D — Construction and Employment Estimates: (1) Construction start: Month �'J!N Year 2000 b .. (2) Number of construction jobs: At Start (0 Peak oto Finish d (3) Number of man-years: Part E — School District Impact Estimates: Give Estimated number of: Families transferred to area 41119 Children added to ISD's� Part F — City Impact Estimates: (1) Volume of treated water required from City ( O d gallons per day, (2) Volume of effluent to be treated by City L C)© gallons per day. (3) Please provide a statement on planned water and sewer treatment methods, and disposal of effluent if the facility is to be located outside City systems. (4) Has permitting been started? ❑ Yes 11 No Part G — Estimated Appraised Value on Site: LAND PERSONAL IMPROVEMENT'S Value of Existing Facility PROPERTY Before New Construction Central ay `a►� (From Appraisal District) pOC� Value of New Improvements NA 100,6cc M; . Estimated Total Value After Improvements 1 �d Ob Oob �(� 00 Industrial Tax Abatement Application Page 5 Part H — Variance: (a) Is a variance being sought under Section IV 9(d) of the "Guidelines"? [ ] Yes [v] -"'No (b) If "Yes", attach any supplementary information required. PEW (a) Has applicant ade application for abatement of this facility by other taxing jurisdictions or counties? [ l Yes [d'M No (b) If "Yes", please provide: (1) Dates of Application: (Z) Hearing Dates: (3) Name of Jurisdiction(s): (4) Name of Contact(s): (4) Attach any letters of intent to abate. R$ To the best of my knowledge, the above information is an accura�q description of project details. Signature Printed Kame of Company Official Title of Company Official 162nd & M.L.IC Blvd. Ph 806.687-&991 P.O. Box 3217 Fax 806-687-5999 Lubbock, Texas 79452 ToU Flee 877-687-6991 .lune 26, 2006 City of Lubbock Attn: Cheryl Brock Business Development 1625 13th Street Lubbock, Texas 79457 Ms. Brock: Resolution No. 2006-RO559 Please see the following distribution of sales for Teinert Metals, Inc.: 10% of our products are sold in New Mexico: 8% - Hobbs area 2% - Clovis area 45% of our products are sold in out laying area of Texas: 10% - Snyder area 7% - Big Spring area 3% - Lamesa area 5% - Levelland area 8% - Odessa area 8% - Midland area 2% - Plainview area 2% - Amarillo 45% of our products are sold in the City of Lubbock Sincerely, Randy Teine President, Teinert Metals, Inc. RBTIwj JUN. 30. RU6 3: 11 FM Na, 9574 F. 1 r GF#59740 Returnto. Wwtem Title Companp, 1$10 34ih Street, Lubbock, Texas 79411 NOTICE OF CONFIDENTIALITY RIGHTS- IF YOU AREA NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. STATE OF TEXAS COUNTY OF LUBBOCK WARRANTY DEED WITFI VENX: Q 'LIEN Date: May 30, 2006 Grantor: SEMOVE, LTD-, A TEXAS LIMITED PARTNERSHIP Grantee: TBINERT METALS, INC. Grantee's Mailing Address- ?, O Box 3217 Lubbock, Lubbock County, Texas 79452.3217 2068022552- 4 PGS Consideration- TEN AND N01100 DOLLARS and a note of even date executed by Grantee and payable to the order of AMERICAN STATE BANK m the principal amount of ONE HUNDRED NINETY-FIVE THOUSAND THREE HUNDRED FIFTY-EIGHT AND N0/100 DOLLARS ($195,358,00). The note Is secured by a first and superior vendor's lien and superior title retained to this deed in favor of AMERICAN STATE BANK and by a first -lien deed of trust of even date from Grantee to W. R. COLLIER, Trustee. Property (intluding any Improvements): Attacbed as Exhibit "A" hereto and incorporated herein by reference. Reservations from Conveyance: None Exceptions to Conveyance and Warranty: Easements, rights-of-way, and prescriptive rights, whether of record to not; all presently recorded restrictions, reservations, covenants, condi tions, oil and gas leases, mineral severances, and other instruments, other than liens or conveyances, that affect the property; taxes for the current yeax; rights of adjoining owners in any walls or fences situated on a common boundary; any discrepancies, conflicts or shortages in urea or boundary lines; and any encroachments or overlapping of Improvements. Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty, grants, sells, and conveys to Grantee the Property, rogetherwith all and singular the rights and appurtenances thereto in any waybelo-tging, w have mind to hold it to Grantee and Grantee's heirs, successors, and assigns forever. Grantor binds Grantor and Grantor's heirs and successors to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs, successors, and assigns against every person whomsoever lawfiallyclaiming or to claim the same or any part thereof; except as to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty. Warranty Dred with Vendor's UM REMOVE, LTD . Telnert Metal% Inc Patel or t JUN. 3U. 2H15 3: 11 5-M N0, 9574 F. 2 The vendor's lien against and superior title to the Property are retained until each note descrited is fully paid according to its terms, at which time this deed will become absolute. AMERICAN STATE BANK, at Grantee's request, has paid in cash to Grantor that poruon of the purchase price of the Property that is evidenced by the nota. The first and supenor vendor's lien against and superior title to the Property are retained for the benefit of AMERICAN STATE BANK and are transferred to AMERICAN STATE BANK without recourse against Grantor. When the context requires, singular nouns and pronouns include the plural. BEMOVE, LTD., A TEXAS LIMITED PARTNERSE" By: DOUG ALLEN, Ntaging General Partner STATE OF TEXAS § § COUNTY OF LUBBOCK § Acknowledged before me, the undersigned notary, on this ��y ooff May, 2006 by DOUG ALLEN, Managing General Partner of SEMOVE, LTD., A TEXAS LIMITED PARTNERSHIP, in the capacity therein stated. Y ROBERTA.BR MDT f1mity Public, State of Teras No Public, State o exas My Cmoism E)Ms 05-22.1009 o� Warrahly Deed with Vendor"s Lien BEMOVE, LTD- Tetnert Metals, tnc. Page 2 oil JUN. jU. 1UUb 3: 11 rM - FILED AND RECORDED "OilOFFICIAL PUBLIC RECORDS 4ars9 Ruff, County Clerk Lubbock County TEXAS June 01, 2006 04.12:30 PM FEE: $10.00 NO. 9574 P. 4 Lubbock Central Appraisal District, 1715 26th Street P.O. Box 10542 Lubbock Texas 79408 (806) 762-5000 -80559 CONFIDENTIAL BUSINESS PERSONAL PROPERTY RENDITION FOR JANUARY 1, 2006 Legal Description: Friar a INvENToFtY Business Address (Situs): 1802 E 50TH ST, LUBBOCK, TX 79404 STPB: L1 SIC Code; 3448 PRINT DATE: FEBRUARY 27, 2006 +Business Name: TEINERT METALS INC i Quick Ref. ID P307625 Owner Name: *AUTO**SCH 5 -DIGIT 79404 TEINERT METALS INC PO BOX 3217 LUBBOCK Tx 79452-3217 III'.i�t�nrlrn�t�,i,corm,r��t,�r,f,t,r��,rr�t�,��rrr,�,,r,r� Sus€Mss telephone number: Q© 263 Authorized Agent Name, Malting address, phone no. 1 4 1 Please check if you haveandicated a chango to your: If business dosed in 2005, please indicate date of closure E] Mailing address and complete part 6. n Business Location Address Date Business Closed This rendition covers property you own or manage and control as a fiduciary on January 1 of thivyear. You must file this rendition with the appraisal district after January 1 and no later than April 15 of this year. On written request, the chief appraiser must extend the deadline to May 15. You may receive an additional 15 -day extension if you request it in writing and show good cause for the extension. If you provide information substantially equivalent to a rendition to a company contracted with the appraisal district to appraise property, you are not required to fife this rendition form. Please make alt changes to your mailing address or Business Location address. Important: If you fall to timely flie 'a rendition or property report required by Texas law, the chief appraiser must Impose a penalty In an amount equal to 10 percent of the total taxes due on the property for the current year. if the court determines. that you filled a fWW nnWftlon or report with the Intent to commit fraud or to evade the tax or you after, destroy, or conceal any record, document, or trhing or present to the chief appraiser any altered or fraudulent record, document, or thing, or otherwise engage In fraudulent conduct for the purpose of affecting the outcome of an Inspection, Investigation determination, or other proceeding before the appraisal district, the chief appralser must Impose an additional penalty equal to 60 percent of the total taxes due on the property for the current year. Check the total market value of your property 0 Under $20.000 ❑ Over $20,000 (if you check 'Under $20,000,' complete part 1 and 6. if you check 'Over $20,000% complete parts 2 through 6) Appraisal District Use Only Rendered Appraised Rendered Appraised 1 -Air 8-LTEO 4-Veh I 044 54nv 11 -HE 7 -FF 12-L$ Date: Appraiser: Totals: Over kr Page 2 Pap r Leased, Loaned, Consigned, or Rented Personal Pro List below any property that is leased, loaned, consigned, or rented to you, regardless of tax liability. If necessary attach additional sheets. If you have none, please write "NONE". Name, Ad&rss, Phone # of Owner Description Selling Price Annual Rent (Optional) (Optional) Part 4. Automobiles, 'IYucks, .Tirailgrsz BersessAirplanes Attach additional sheets if necessary. Year Make ad Modol Vehicle ID Mileage on (VMNumber January I Cost Your Estimate of Maritet Value Q9S UZ9 F1Y2 .3 ,4d eiGlap,oO ,2caS eZ' T F7 C/Via/ a ma •1010 S7110171Z 7910 .pe 224400-04 Pte'c • f,��7°�v 7Z4. .2 y,2 c , Sp•on moa 100 Appraisal Dist. Use Only If you sold your aircraft prior to January 1, 2006, please list name and addreWof person you. sold aircraft to and cute sold. Date Sald Name Address Special Equipment Mounted on Vehides Above List below any special equipment attached or mounted on the vehicles listed above. Equipment VIN of Vehicle Original Year Owner's Estimate Description To which Attached Cost Acquired of Value alp Gt�J.co ,Z3?�.aa Over for page 4 Pa&e 3 Lubbock Central Appraisal District" 1715 26th Street P.O. Box 10542 Lubbock Texas 79408 (806) 762-5040 CONFIDENTIAL BUSINESS PERSONAL PROPERTY RENDITION FOR JANUARY 1, 2000 Description: FFME & INVENTORY Business Address {Situs}: 1802 E 50TH ST, LUBBOCK, TX 79404 STPB: L1 SIC Code: 34413 PRINT DATE: FEBRUARY 27, 2006 Business Name: TEINERT METALS INC Quick Ref. ID P307625 Owner Name: Business telephone number: QO ex _ !0 / *AUTO**SCH 5—DIGIT 79404 263 Authorized agent Name, Malting address, phone no. /// 1 4 TEINERT METALS INC PO BOX 3217 LUBBOCK TX 79452-3++217 11 11111111111. 1/I 11111 111I�i IIll�Irlll� l Please check if you have indicated a change to your: if business closed in 2005, please indicate date of closure [] Mailing address and complete part 6. ❑ Business Location Address Date Business Closed This rendition covers property you own or manage and control as a fiduciary on January 1 of this year. You must file this rendition with the appraisal district after January 1 and no later than April 15 of this year. On written request, the chief appraiser must extend the deadline to May 15. You may receive an additional 15 -day extension if you request it in writing and show good cause for the extension. if you provide information substantially equivalent to a rendition to a company contracted with the appraisal district to appraise property, you are not required to file this rendition form. Please make all changes to your mailing address or Business Location address. Important: If you fail to timely llie a rendition or property report required by Texas law, the chief appraiser must Impose a penalty in an amount equal to 10 percent of the total taxes due on the property for the current year. If the court determines that you flied a false rendition or report with the intent to commit fraud or to evade the tax or you alter, destroy, or conceal any record, document, or thing or present to the chief appraiser any altered or fraudulent record, document, or thing, or otherwise engage In fraudulent conduct for the purpose of affecting the outcome of an Inspection, investigation determination, or other proceeding before the appraisal district, the chief appraiser must Impose an additional penalty equal to 50 percent of the total taxes due on the property for the current year. Check the total market value of your property ❑ Under $20.000 ❑ Over $20,000 (If you check 'under $20,000,' complete part 1 and 6. If you check 'Over $20,000', complete parts 2 through 6) Appraisal District Use Only Rendered Appraised Rendered Appraised 1 -Air 8-LTEO 4-Weh 10 -HT 5 -Inv 5 - 11 -HE 7 -FF 12 -LS Date: J Appraiser: Totals: F Over tor Pape 2 Page 1 Leased, Loaned, Consigned, or Rented Personal Property List below any property that is leased, loaned, consigned, or rented to you, regardless of tax liability. If necessary attach additional sheets. If you have none, please write "NONE". Appraisal Dist. [Mame, Address, Phone # of Owner Description Selling Price Annual Rent Use Only (Optional) (optional) - Part 4. Automobiles, Trucks, 11railersz Buses, Airplanes Attach additional sheets if necessary. Appraisal Dist. Use Only 7 If you sold your aircraft prior to January 1, 2006, please list name and address`of person yousold aircraft to and date sold. Date Sold Name Address Special Equipment Mounted on Vehicles Above List below any special equipment attached or mounted on the vehicles listed above. Appraisal Dist. Equipment VIN of Vehicle Original Year Owner's Estimate Use Only Description To which Attached Cost Acquired of Value . r`G uP o E/2 ? oa 1,2005 3 as ,apv ZG z Over for page 4 Page 3 Make and Model Vehicle ID Mileage on (VIN)Number January I Cost Your Estimate of Market Value HYeau, GYRat�T o97 -1412 d °` Mo .o� 3 tlA� G 2 790 .ca Zs o©a•dD .2 yZ c�•SiQ.OD Z 34© p d Appraisal Dist. Use Only 7 If you sold your aircraft prior to January 1, 2006, please list name and address`of person yousold aircraft to and date sold. Date Sold Name Address Special Equipment Mounted on Vehicles Above List below any special equipment attached or mounted on the vehicles listed above. Appraisal Dist. Equipment VIN of Vehicle Original Year Owner's Estimate Use Only Description To which Attached Cost Acquired of Value . r`G uP o E/2 ? oa 1,2005 3 as ,apv ZG z Over for page 4 Page 3 Resolution No. 2005-80559 BREEDL01 TO THE CITY OF LUBBOCK, LUBBOCK COUNT DEDICATION DEED THEREOF RECORDED IN I LUBBOCK� Ap rmm CF marr-A- IQ. I Q . WE K. mf 1�) __j i AErmwr CF •�7Y4Y �K 11YCT'f- A w rr�� ■!L tJf. Ili. �[ !T d rj yr ,5 T �' CONCRE TE v�G�IIU N �I PORTION OF I , wc. rc am TRACT °A" CONCRETE IN METAL I BUILDNG CONCRETE CONCRETE �$ ,r EAW E6T 3D' �r - i ASPHALT YY TION OF RACT "8" ~ ; � BR OX£N~ PORTION OF IN TRACT C A5PHAL T mwwww ! ! ! S T � `}�IGIIIIiTr M 4f 7ML7 FLAT NIElTI �•� E�1 'A'f�LAlt Al�r:7011 ' QUIrw Aammvr purr R ' ASPHAL T MwTrwv SCALE : I"= 900` CONTROL MONUMENTS AS FOUND B, SHOWN' FENCES AS SHOWN. 0 -FD, I/2" ROD w/CAP o - FD. 1/2" ROD • - FD. 34' ROD 9 - SET 14' ROD ./CAP A - SET IAC NgjL w/VNASIiER 9- SET CROSS QN CM — - UTILITY POLE ..s - MONITOR WELL V+- LIGHT POLE ID- GAS RISER..,..., . \��pp AaMQIHr 71tl[P (BY MT WELT] m