Loading...
HomeMy WebLinkAboutResolution - 2000-R0041 - Transfer And Assign Tax Abatement Agreement - GPG Acquisitions Corp - 02/10/2000Resolution No. 2000-R 004 February 10, 2000 Item No. 40 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 9, 1995 by and between the City of Lubbock and Industrial Molding Corporation, 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. c2, O�Od% Max Ince, Mayor Pro Tem ATTEST: kavAe Darnell, City Secretary AS TO CONTENT: G. WAlker, Business Liaison Officer APPROVED AS TO FORM: Donald G. Vandiver, First Assistant City Attorney Ddres/GPGRes2 Resolution No. 2000-R 0041 February 10, 2000 Item No. 40 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 9, 1995, between the CITY OF LUBBOCK, TEXAS, and INDUSTRIAL MOLDING CORPORATION, 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 AMUISITION CORP , President A John C. Smothers, VP Operations Ddres/GPGASSIgn2 GPG ASSIgn2 .ATION Max Ince, Mayor Pro Tem ATI ST: Ka Darnell, City Secretary G. Wapner, Business Liaison Officer APPROVED AS TO FORM- z ald G. Van Iver, First Assistant City Attorney 11 l N If I 4 . Resolution No. 4768 March 9, 1995 Item 413 Attachment for: RESOLUTION Resolution No. 2000-80041 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 Guidelines and Criteria governing tax abatement for commercial projects in designated enterprise zones in the City of Lubbock attached herewith, by and between the City of Lubbock and Industrial Molding Corporation, and any associated documents, which 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 9 th day of March 1995. 3� Ii ii ATTEST: Betty M. Johnson City Secretary APPROV NTENT: od , irector of business Relations/ Economic Development APPROVED AS TO R/T1MZC�WO D►oald G. Vandiver, Fi Assistant City Attorney DGV:dp\ccdces\TAXABDA.Res February 27, 1995 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § Resolution No. 4768 March 9, 1995 Item #13 Attachment for: Resolution No. 2000—R 0041 This Agreement made this 9th day of March , 1995, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Industrial Molding Corporation (hereinafter called "Company' ); WITNESSETH: WHEREAS, City did receive from Company on the 17th day of Lq&uary, 1995, an application for tax abatement for the expansion of an existing 120,000 square foot distri- bution 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 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 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 WHEREAS, the City did thereafter pass Ordinance No. 9591 creating an enter- prise 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 the expansion of an existing facility; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a pur- pose is to be included in the guidelines for tax abatement and to be eligible for such treat- ment; 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 Reso- lution No. 4288 does recognize expansion of existing facilities as being eligible for tax abatement status; and WHEREAS, the City Council does hereby find that all of the Guidelines and Cri- teria 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 expand an existing 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 -INDUSTRIAL MOLDING CORP. 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. Term. This Agreement shall remain in force and effect for a period of ten (10) years from the date of its execution 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 1995, 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. SECTION 5. Property Ineligible for Tax Abatement. The property described and set forth in Section IV(5) 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, in accordance with Section 4 above, the following properties: (a) All 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 above tract of land (Phase 2), attached hereto as Exhibit "A" and made a part hereof. AGREEMENT - INDUSTRIAL MOLDING CORP. PAGE 3 (b) All eligible tangible personal property placed in or upon the property set forth in Exhibit "A". (c) It is further understood that all 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 subpara- graph (a) above set forth. SECTION 7. Economic Oualification. It is hereby found by the City that Com- pany will expend funds in excess of the funds necessary to qualify for tax abatement by expanding an existing facility and further 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 seven hundred and fifty thousand ($750,000) 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 twenty-five (25) 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 seventy-seven (77) jobs during the term of this Agreement. SECTION 10. Cly Access to Property. 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 property to insure that the improvements are being made in accordance with the terms and condi- tions of Company's application for tax abatement and this Agreement. AGREEMENT -- INDUSTRIAL MOLDING CORP. PAGE 4 d 1 u 1 . . 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. Type of Improvements. The Company proposes to expand an existing distribution facility 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 February, 1995, and shall be completed within approximately six (6) 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 com- pletion of such improvements and such consent shall not unreasonably be withheld. 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 prop- erty set forth in Exhibit "A' to commercial andlor industrial uses as those terms are defined in the zoning ordinances of the City of Lubbock and to limit the uses of the prop- erty to uses consistent with the general purpose of encouraging development of the enter- prise zone during the term of this agreement. SECTION 16. Recapture. 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 Com- pany as set forth in Guidelines and Criteria for Tax Abatement adopted by Resolution No. 4288 of the City Council of the City of Lubbock. SECTION 17. Notices. Notices required to be given by this Agreement shall be mailed, certified mail return receipt requested, to the following addresses: AGREEMENT -- INDUSTRIAL MOLDING CORP. PAGE 5 I1, .N •.. y, il, 1, 4 ■ CITY OF LUBBOCK INDUSTRIAL MOLDING CORP. 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 9th INDUSTRIAL MOLDING CORP. A Texas Corporation day of March , 1995 . CIT LUBBOCK A M c al ftmuriOn EX,kVID R LANGRON, MAYOR ATTEST: Secretary RFJsdh/a!MCORP.doc Febnuary 14, 1995 AGREEMENT -- INDUSTRM L MOLDING CORP. ATTEST: Betty Jo on, City Secreta of Business Development APPROVED AS TO FORM: an Shotts, r., T&LAhorney PAGE 6 EX$18I'1` irAri Resolution No. 2000-R Q041 (a) A general description of the improvements to be undertaken. Phase II: 60,000 square foot distribution facility expansion (b) A descriptive list of the improvements for which tax abatement is requested. See (a) above. (c) A list of the kind, number and location of all proposed improvements of the Real Property Facility or Existing Facility. See (a) above. (d) 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. Site plan attached. (e) A list of any and all Tangible Personal Property presently existing on the Real Property or located on the Real Property or Facility 1) 18 twelve bay racks 2) 36 thirteen bay racks 3) fork lift (f) A proposed time schedule of undertaking and completing the proposed improvements. Phasell: Begin: February 1, 1995 Complete: August 31, 1995 (g) A general description stating whether the proposed improvements are in connection with: (3) Expansion of a facility (of any type herein defined). See (a) above (h) A statement of the additional value to the Real Property or Facility as a result of the proposed improvements. Phase II: 750,000 Application for Tax Abatement in Lubbock Count - Page 3.A E7L�IBZT "A�' Applicafion /or Tax Abatement in Lubbock County - Page 3.8 The statements and Nuros prebaffled Mreln, wh14 not Quaranteod, are severed from toutem we believe "hOrflative.