HomeMy WebLinkAboutResolution - 2000-R0040 - Transfer And Assign Tax Abatement Agreement - GPG Acquisitions Corp - 02/10/2000Resolution No. 2000-80040
February 10, 2000
Item No. 39
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 an Assignment to transfer
and assign to GPG Acquisitions Corp that certain tax abatement agreement dated March
10, 1994 by and between the City of Lubbock and Gary Products Group, Inc. and
subsequently assigned to Industrial Molding Corporation on January 26, 1995, attached
hereto; which Assignment shall be spread upon the minutes of the council and as spread
upon the minutes of this Council shall constitute and be a part of this Resolution as if
fully copied herein in detail.
Passed by the City Council this 10th day of February , 2000.
Max Ince, Mayor Pro Tem
ATTEST:
City Secretary
TO CONTENT:
Kevin G. WaVker, Business Liaison Officer
APPROVED AS TO FORM:
G. Vandiver, First Assistant City Attorney
Ddres/GPGResl
January 27, 2000
Resolution No. 2000-80040
February 10, 2000
Item No. 39
THE STATE OF TEXAS §
ASSIGNMENT
COUNTY OF LUBBOCK §
KNOW ALL MEN BY THESE PRESENTS THAT INDUSTRIAL MOLDING
CORPORATION, a Texas Corporation ("Assignor"), has this day and does by these
presents transfer and assign to GPG ACQUISITION CORP, a Texas Corporation, that
certain tax abatement Agreement dated March 10, 1994, between the CITY OF
LUBBOCK, TEXAS, and GARY PRODUCTS GROUP, INC., and subsequent
assignment to INDUSTRIAL MOLDING CORPORATION dated January 16,1995, a
copy of which is attached hereto and is incorporated herein by reference.
GPG ACQUISITION CORP hereby assumes all of the obligations of the Assignor
under the said Agreement. This Assignment shall be effective upon approval by the City
Council of the City of Lubbock, Texas, and the execution by the Mayor thereof.
Dated this the 10th day of February , 2000.
GPG ACQUISITION CORP
President
ATTEST~
John C. Smothers, VP Operations
Ddres/GPGASSIgn1
GPG ASSIgnI
TION
Max Ince, Mayor Pro Tem
A . EST:
/(d6-11 j aut I Lk
a Darnell, City Secretary
APPROV �ASNTENT:
Kevin G. Wdlker, Business Liaison Officer
APPROVED AS TO FOR4ssistantCity9jA
ald G. VanIver, Firs
Attorney
Resolution No. 4711
iary 26, 1995
Item #6
Attachment for:
Resolution No. 2000
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 an Assignment to transfer and assign to
Industrial Molding Corporation that certain tax abatement agreement dated March 10, 1994
by and between the City of Lubbock and Gary Products Group, Inc., attached hereto, which
Assignment shall be spread upon the minutes of the Council and as spread upon the minutes
of this Council shall constitute and be a part of this Resolution as if fully copied herein in
detail.
Passed by the City Council this th day of\ Januar 91995.
VID R. LANGSTON, MAY
ATTEST:
Betty M. Johnson, (2ity Secretary
APPROVE TO N NT:
Rod E ' , Director of Business Development
APPROVED AS TO FORM:
,I G
t?hn C. Ross, Jr., City Atto 'ey
JCR:da
ccdocs/A-MOLDNG.res
January 13, 1995
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
KNOW ALL MEN BY THESE PRESENTS THAT GARY PRODUCTS GROUP,
INC., a Texas corporation ("Assignor"), has this day and does by
these presents transfer and assign to INDUSTRIAL MOLDING
CORPORATION, a Texas corporation, that certain tax abatement
Agreement dated March 10, 1994, between the CITY OF LUBBOCK,
TEXAS, and GARY PRODUCTS GROUP, INC., a copy of which is attached
hereto and is incorporated herein by reference.
INDUSTRIAL MOLDING CORPORATION hereby assumes all of the
obligations of the Assignor under the said Agreement. This
Assignment shall be effective upon approval by the City Council
of the City of Lubbock, Texas, and the execution by the Mayor
thereof.
Dated this'the �� day of January, 1995.
i GARY
' By:
. Earsley,
Assistant Secretary
ATTEST: IN
E
By
Steve L. Ear4;1;6, Secretary
yor
GROUP, INC.
Lonnie Fry,
President
MOLDING CORPORATION
. Earsley,
President
' l<<sV luLlVlt .IV. Nva`.
March 10, 1994
Item /5
Attachment for:
Resolution No. 2000—R 0040
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this loth day of March 1, 1994, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and Gary Products Group, Inc. (hereinafter called "Companyu);
wn Essm:
iWIMREAS, City did receive from Company on the 23rd day of
` December , 1993 an application for tax abatement for construction of a
120,000 square foot distribution facility and office located at 3101 Southeast Loop 289,
which is further described as 32.67 acres out of Section 3, Block S, Johnson
Subdivision, Lubbock County, Texas; and
WHEREAS, upon review of the above application it was determined that the
facilities will be located in the South Enterprise Zone designated by the City in
Ordinance No. 9591 covering the above described property; and
WHEREAS, the Guidelines and Criteria for Tax Abatement for Industrial
Projects included in Designated Enterprise Zones in the City of Lubbock was
heretofore adopted by Resolution No. 4288 of the City Council of the City of Lubbock;
and
VMEREAS, 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 of the criteria and guidelines as set
forth in the Guidelines and Criteria governing Tax Abatement within the taxing units of
Lubbock County, said guidelines having been adopted by Resolution No. 4288 of the
City on October 14, 1993; and
0
WHEREAS, the City did thereafter pass Ordinance No. 9591 creating an
enterprise zone for commercial and industrial tax abatement, said zone including
Section 3, Block S, Johnson Subdivision of Lubbock County; and
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 construction of a new company 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 for Tax Abatement for
Industrial Projects in Designated Enterprise Zones adopted by the City Council by
Resolution No. 4288 does recognize construction of new facilities as being eligible for
tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and
Criteria established for Tax Abatement within the City of Lubbock, as adopted by
Resolution No. 4288, have been met by Company; and
WHEREAS, Company does intend to construct a new distribution facility and
offices; 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
WHEREAS, the City Council finds that entering into this Agreement to abate
taxes on the property described in Exhibit "A' will create new jobs within the City and
enhance economic development within the enterprise zone;
AGREEMENT - GARY PRODUCTS GROUP, INC. PAGE 2
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. 1=. This Agreement shall remain in force and effect for a
period of tea (10) years from the date of its execution and shall expire and be of no
further force and effect after said date.
SECTION 2. Baw Year. The base year applicable to real property, which is
the,subject of this Agreement, shall be 1994 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.
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and set forth in Section IV(S) of the Guidelines and Criteria for Tax Abatement within
the jurisdictions of the taxing units of Lubbock County and heretofore adopted by the
City Council by Resolution No. 4288 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 the following properties:
(a) AU the real property located in and proposed improvements to be placed
by Company upon Section 3, Block S, Johnson Subdivision to Lubbock
County, which proposed improvements are set forth in a plat of the
AGREEMENT - GARY PRODUCTS GROUP, INC. PAGE 3
0
above tract of land, attached hereto as Exhibit 'A' and made a part
hereof.
(b) 011 eligible tangible personal property placed in or upon the property set
forth in Exhibit 8A
..r(c) It is further understood that a items affixed to the 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 Qw-Wfication. It is hereby found by the City that
Company will expend funds in excess of the funds necessary to qualify for tax
abatement by expanding an existing facility and finther that the Company will create
new jobs in excess of the percentage required for tax abatement, all as set forth in
Section IV(9)(b) of the Guidelines and Criteria for Tax Abatement adopted by the City
through Resolution No. 4288.
SECTION 8. Value of Improvements. Company intends to expend
approximately 1.5 million dollars in building related structural improvements to be
located within the enterprise zone created by Ordinance No. 9591.
SECTION 9. Creation of New Jobs. Company agrees within twelve (12)
months from the date of execution of this Agreement that it will create sixty-five (65)
full time equivalent new jobs within the Company plant to be located within Section 3,
Block S, Johnson Subdivision, Lubbock County and use its best efforts to maintain a
minimum of sixty-five (65) new jobs during the term of this Agreement.
SEC 014 10. City Access to En4ri v. Company covenants and agrees that
City shall have access to the property, which is the subject matter of this Agreement,
during normal business hours and that municipal employees shall be able to inspect the
AGREEMENT - GARY PRODUCTS GROUP. INC. PAGE 4
property to insure that the improvements are being made in accordance with the terms
and conditions of Company's application for tax abatement and this Agreement.
SECTION 11. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate 100 percent of taxes on eligible property.
SECTION 12. Commencement Date. This Agreement shall commence upon
the date of its execution, which date is hereinafter set forth, and shall expire ten (10)
years after such date.
SECTION 13. M= of Improvements. The Company proposes to construct a
new distribution facility and other improvements as described in Exhibit "A". The
Company further states that the proposed improvements to the property above
mentioned shall commence on the 1st day of March, 1994, and shall be completed
within approximately seven (7) months from said date. The 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.
SECTION 14. Drawings of Improvements. Company shall finish 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 .1b. $=pture. The 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 as set forth in Guidelines and Criteria for Tax Abatement adopted by
Resolution No. 4288 of the City Council of the City of Lubbock.
AGREEMENT - GARY PRODUCTS GROUP, INC. PAGE 5
1 II 9 I 11, , Y., 11 ■
k
SECTION 17. Notices. Notices required to be given by this Agreement shall
be mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK GARY PRODUCTS GROUP, INC.
City Manager 620 East Slaton Road
P.O. Box 2000 Lubbock, Texas 79404
Lubbock, Texas 79457
SECTION 18. Effective Date, . Notwithstanding anything contained herein to
the contrary, this Agreement shall not be effective until such time as it has been finally
passed and approved.
EXECUTED this 10th nay of March .1994 .
GARY -PRODUCTS GROUP,
A Tc6ACorporation
secretary�
DGY:da4-DI0IA-GARYPD.doc
rev. February 11,1994
A
I
byMM' 14
TO CONTENT:
Economic Development
APPROVED AS TO FORM:
an ver, Zssistant
City Attorney
AGREEMENT -- GARY PRODUCTS GROUP, INC. PAGE 6