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HomeMy WebLinkAboutResolution - 2000-R0058 - Agreement - X-Fab Texas - 02/24/2000Resolution No. 2000-R0058 February 24, 2000 Item No. 32 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 Agreement and all related documents by and between the City of Lubbock and X -FAB Texas, attached hereto and 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 24th day of February , 2000. r Max Ince, Mayor Pro Tem AS TO CONTENT: Kevin G. lWalker, Business Liaison Officer APPROVED AS TO FORM: G. Vandiver, First Assistant City Attorney Ddres/X-fab.res January 27, 2000 Resolution No- 2000-80058 February 24, 2000 Item No. 32 STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement made this 24th day of February , 2000, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and X -FAB Texas (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the -21h -day of December, 1999, an application for tax abatement for the renovation of an existing facility located at 2301 N. University, which is further described as being all of Tract A, Texas Instruments Addition, an addition to the City of Lubbock according to the map, plat and/or dedication deed thereof, recorded in Volume 1363, Page 977, Deed Records of Lubbock County, Texas (D.R.L.C.T.) and all of that abandoned Drake Street as described by Correction Quit Claim Deed from the City of Lubbock to Texas Instruments Incorporated, a Delaware corporation, recorded in Volume 1541, Page 32, D.R.L.C.T. and being more particularly described by metes and bounds as follows: BEGINNING at an aluminum disk monument found at the Northeast corner of said Drake Street on the South line of Block 1, Lubbock State School Addition, an addition to the City of Lubbock, according to the map, plat and/or dedication deed thereof, recorded in Volume 1143,Page 677, D.R.L.C.T. and also being North 0 deg. 01 min. 09 sec. East - 10.00 feet from the Northwest corner of Lot 1, Lawson Addition, an addition to the City of Lubbock, according to the map, plat and/or dedication deed thereof, recorded in Volume 838, Page 211, D.R.L.C.T. THENCE South 0 deg. 01 min. 09 sec. West, along the East line of said abandoned Drake Street, at 10.00 feet, passing the Northwest corner of said Lawson Addition, continuing along the West line of said Lawson Addition, at 60.00 feet, passing the Southeast corner of said abandoned Drake Street and the most Northerly Northeast comer of said Texas Instruments Addition, continuing on for a total distance of 139.91 feet to an aluminum disk monument found for the Southwest corner of said Lawson Addition; THENCE South 89 deg. 58 min. 01 sec. East, along the North line of said Texas Instruments Addition and the South line of said Lawson Addition, a distance of 143.27 feet to an aluminum disk monument found for the most Easterly Northeast corner of said AGREEMENT - X -FAB TEXAS PAGE 1 Texas Instruments Addition and the Southeast corner of said Lawson Addition on the West Right-of-way of University Avenue (F.M. 1264, variable width R.O.W.); THENCE South 0 deg. 32 min. 04 sec. East, along the East line of said Texas Instruments Addition and the West Right-of-way of said University Avenue, a distance of 2422.31 feet to a 1/2 inch iron rod set for corner; THENCE North 89 deg. 27 min. 56 sec. East, along the East line of said Texas Instruments Addition and the West Right-of-way of said University Avenue, a distance of 10.00 feet to a %i inch iron rod set for corner in the North Right-of-way of Loop 289 at the beginning of a curve to the right having a radius that bears North 89 deg. 50 min. 33 sec. West, a distance of 215.00 feet; THENCE Along the North Right-of-way of said Loop 289 and along said curve to the right, with a chord that bears South 42 deg. 01 min. 23 sec. West - 286.98 feet, through a central angle of 83 deg. 43 min. 52 sec. and an arc length of 314.20 feet to a concrete Right-of-way marker found for corner at the end of said curve; THENCE South 84 deg. 14 min. 24 sec. West, along the North Right-of-way of said Loop 289, a distance of 833.14 feet to an aluminum disk monument found for corner at the beginning of a curve to the left having a radius that bears South 05 deg. 45 min. 28 sec. East, a distance of 5879.65 feet; THENCE Along the North Right-of-way of said Loop 289 and along said curve to the left, with a chord that bears South 82 deg. 04 min. 50 sec. West - 443.52 feet, through a central angle of 04 deg. 19 min. 23 sec. and an arc length of 443.63 feet to an aluminum disk monument found for comer at the end of said curve; THENCE South 83 deg. 47 min. 51 sec. West, along the North Right-of-way of said Loop 289, a distance of 766.83 feet to a concrete Right-of-way marker found for corner; THENCE South 73 deg. 26 min. 45 sec. West, along the North Right-of-way of said Loop 289, a distance of 266.20 feet to an aluminum disk monument found for corner; THENCE South 89 deg. 52 min. 26 sec. West, along the North Right-of-way of said Loop 289, a distance of 599.04 feet to an aluminum disk monument found for the Southwest corner of said Texas Instruments Addition and the Southeast corner of a called 286.15 acre tract of land conveyed to the City of Lubbock as described in a deed recorded in Volume 370, Page 55, D.R.L.C.T.; THENCE North 0 deg. 00 min. 37 sec. East, along the West line of said Texas InstrumentsAddition and the East line of said 286.15 acre tract, a distance of 2318.79 feet to an aluminum disk monument found for the most Westerly Northwest corner of said Texas Instruments Addition; AGREEMENT - X -FAB TEXAS PAGE 2 THENCE South 89 deg. 56 min. 05 sec. East, a distance of 100.19 feet to an aluminum disk monument found for an inside ell corner of said Texas Instruments Addition; THENCE North 0 deg. 00 min. 05 sec. West, along the West line of said Texas Instruments Addition and the East line of said 286.15 acre tract, at 706.65 feet, passing the Southwest corner of the above mentioned abandoned Drake Street and continuing for a total distance of 766.65 feet to an aluminum disk monument found for the most Northerly Northwest corner of said Texas Instruments Addition and the Northwest corner of said abandoned Drake Street, on the South line of the above mentioned Block 1, Lubbock State School Addition; THENCE South 89 deg. 53 min. 30 sec. East, along the North line of said Drake Street and the South line of Block 1, Lubbock State School Addition, a distance of 2800.50 feet to the POINT OF BEGINNING and containing 203.377 acres of land. WHEREAS, upon review of the above application it was determined that the facilities will be located in the North Enterprise Zone designated by the City in Ordinance No. 9591 covering the above described property; and WHEREAS, the Guidelines and Criteria Governing Tax Abatement For Selected Taxing Units Within Lubbock County was heretofore adopted by Resolution No. 6515 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 for Selected Taxing Units Contained Within Lubbock County, said guidelines having been adopted by Resolution No. 6515 of the City on September 23, 1999, and WHEREAS, the City did pass Ordinance No. 9591 creating an enterprise zone for commercial and industrial tax abatement, said zone including the property described as all of Tract A, Texas Instruments Addition, an addition to the City of Lubbock according to the map, plat and/or dedication deed thereof, recorded in Volume 1363, Page 977, Deed Records of Lubbock County, Texas (D.R.L.C.T.) and all of that abandoned Drake Street as described by Correction Quit Claim Deed from the City of Lubbock to Texas Instruments Incorporated, a Delaware corporation, recorded in Volume 1541, Page 32, D.R.L.C.T. and being more particularly described by metes and bounds as follows: BEGINNING at an aluminum disk monument found at the Northeast comer of said Drake Street on the South line of Block 1, Lubbock State School Addition, an addition to the City of Lubbock, according to the map, plat and/or dedication deed thereof, recorded in Volume 1143,Page 677, D.R.L.C.T. and also being North 0 deg. 01 min. 09 sec. East - AGREEMENT - X -FAB TEXAS PAGE 3 10.00 feet from the Northwest corner of Lot 1, Lawson Addition, an addition to the City of Lubbock, according to the map, plat and/or dedication deed thereof, recorded in Volume 838, Page 211, D.R.L.C.T. THENCE South 0 deg. 01 min. 09 sec. West, along the East line of said abandoned Drake Street, at 10.00 feet, passing the Northwest corner of said Lawson Addition, continuing along the West line of said Lawson Addition, at 60.00 feet, passing the Southeast corner of said abandoned Drake Street and the most Northerly Northeast corner of said Texas Instruments Addition, continuing on for a total distance of 139.91 feet to an aluminum disk monument found for the Southwest corner of said Lawson Addition; THENCE South 89 deg. 58 min. 01 sec. East, along the North line of said Texas Instruments Addition and the South line of said Lawson Addition, a distance of 143.27 feet to an aluminum disk monument found for the most Easterly Northeast corner of said Texas Instruments Addition and the Southeast corner of said Lawson Addition on the West Right-of-way of University Avenue (F.M. 1264, variable width R.O.W.); THENCE South 0 deg. 32 min. 04 sec. East, along the East line of said Texas Instruments Addition and the West Right-of-way of said University Avenue, a distance of 2422.31 feet to a 1/2 inch iron rod set for corner; THENCE North 89 deg. 27 min. 56 sec. East, along the East line of said Texas Instruments Addition and the West Right-of-way of said University Avenue, a distance of 10.00 feet to a'/2 inch iron rod set for corner in the North Right-of-way of Loop 289 at the beginning of a curve to the right having a radius that bears North 89 deg. 50 min. 33 sec. West, a distance of 215.00 feet; THENCE Along the North Right-of-way of said Loop 289 and along said curve to the right, with a chord that bears South 42 deg. 01 min. 23 sec. West - 286.98 feet, through a central angle of 83 deg. 43 min. 52 sec. and an arc length of 314.20 feet to a concrete Right-of-way marker found for corner at the end of said curve; THENCE South 84 deg. 14 min. 24 sec. West, along the North Right-of-way of said Loop 289, a distance of 833.14 feet to an aluminum disk monument found for corner at the beginning of a curve to the left having a radius that bears South 05 deg. 45 min. 28 sec. East, a distance of 5879.65 feet; THENCE Along the North Right-of-way of said Loop 289 and along said curve to the left, with a chord that bears South 82 deg. 04 min. 50 sec. West - 443.52 feet, through a central angle of 04 deg. 19 min. 23 sec. and an arc length of 443.63 feet to an aluminum disk monument found for corner at the end of said curve; THENCE South 83 deg. 47 min. 51 sec. West, along the North Right-of-way of said Loop 289, a distance of 766.83 feet to a concrete Right-of-way marker found for corner; AGREEMENT - X -FAB TEXAS PAGE 4 THENCE South 73 deg. 26 min. 45 sec. West, along the North Right-of-way of said Loop 289, a distance of 266.20 feet to an aluminum disk monument found for comer; THENCE South 89 deg. 52 min. 26 sec. West, along the North Right-of-way of said Loop 289, a distance of 599.04 feet to an aluminum disk monument found for the Southwest corner of said Texas Instruments Addition and the Southeast corner of a called 286.15 acre tract of land conveyed to the City of Lubbock as described in a deed recorded in Volume 370, Page 55, D.R.L.C.T.; THENCE North 0 deg. 00 min. 37 sec. East, along the West line of said Texas InstrumentsAddition and the East line of said 286.15 acre tract, a distance of 2318.79 feet to an aluminum disk monument found for the most Westerly Northwest corner of said Texas Instruments Addition; THENCE South 89 deg. 56 min. 05 sec. East, a distance of 100.19 feet to an aluminum disk monument found for an inside ell corner of said Texas Instruments Addition; THENCE North 0 deg. 00 min. 05 sec. West, along the West line of said Texas Instruments Addition and the East line of said 286.15 acre tract, at 706.65 feet, passing the Southwest comer of the above mentioned abandoned Drake Street and continuing for a total distance of 766.65 feet to an aluminum disk monument found for the most Northerly Northwest corner of said Texas Instruments Addition and the Northwest corner of said abandoned Drake Street, on the South line of the above mentioned Block 1, Lubbock State School Addition; THENCE South 89 deg. 53 min. 30 sec. East, along the North line of said Drake Street and the South line of Block 1, Lubbock State School Addition, a distance of 2800.50 feet to the POINT OF BEGINNING and containing 203.377 acres of land. 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 renovation of an existing facility; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a purpose is to be included in the guidelines for tax abatement and to be eligible for such treatment; and WHEREAS, Section IV of the Guidelines and Criteria governing Tax Abatement for selected taxing units contained within Lubbock County adopted by the City Council by Resolution No. 6515 does recognize renovation of an existing facility as being eligible for tax abatement status; and AGREEMENT - X -FAB TEXAS PAGE 5 WHEREAS, the City Council does hereby find that all of the Guidelines and Criteria Governing Tax Abatement, as adopted by Resolution No. 6515, 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 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 2000, 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(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. 6515 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 real =Verty improvements to be placed upon all of Tract A, Texas Instruments Addition, an addition to the City of Lubbock according to the map, plat and/or dedication deed thereof, recorded in Volume 1363, Page 977, Deed Records of Lubbock County, Texas (D.R.L.C.T.) and all of that abandoned Drake Street as described by Correction Quit Claim Deed from the City of Lubbock to Texas AGREEMENT - X -FAB TEXAS PAGE 6 Instruments Incorporated, a Delaware corporation, recorded in Volume 1541, Page 32, D.R.L.C.T. and being more particularly described by metes and bounds as follows: BEGINNING at an aluminum disk monument found at the Northeast corner of said Drake Street on the South line of Block 1, Lubbock State School Addition, an addition to the City of Lubbock, according to the map, plat and/or dedication deed thereof, recorded in Volume 1143,Page 677, D.R.L.C.T. and also being North 0 deg. 01 min. 09 sec. East - 10.00 feet from the Northwest corner of Lot 1, Lawson Addition, an addition to the City of Lubbock, according to the map, plat and/or dedication deed thereof, recorded in Volume 838, Page 211, D.R.L.C.T. THENCE South 0 deg. 01 min. 09 sec. West, along the East line of said abandoned Drake Street, at 10.00 feet, passing the Northwest corner of said Lawson Addition, continuing along the West line of said Lawson Addition, at 60.00 feet, passing the Southeast corner of said abandoned Drake Street and the most Northerly Northeast corner of said Texas Instruments Addition, continuing on for a total distance of 139.91 feet to an aluminum disk monument found for the Southwest corner of said Lawson Addition; THENCE South 89 deg. 58 min. 01 sec. East, along the North line of said Texas Instruments Addition and the South line of said Lawson Addition, a distance of 143.27 feet to an aluminum disk monument found for the most Easterly Northeast corner of said Texas Instruments Addition and the Southeast corner of said Lawson Addition on the West Right-of-way of University Avenue (F.M. 1264, variable width R.O.W.); THENCE South 0 deg. 32 min. 04 sec. East, along the East line of said Texas Instruments Addition and the West Right-of-way of said University Avenue, a distance of 2422.31 feet to a 1/2 inch iron rod set for corner; THENCE North 89 deg. 27 min. 56 sec. East, along the East line of said Texas Instruments Addition and the West Right-of-way of said University Avenue, a distance of 10.00 feet to a %x inch iron rod set for corner in the North Right-of-way of Loop 289 at the beginning of a curve to the right having a radius that bears North 89 deg. 50 min. 33 sec. West, a distance of 215.00 feet; THENCE Along the North Right-of-way of said Loop 289 and along said curve to the right, with a chord that bears South 42 deg. 01 min. 23 sec. West - 286.98 feet, through a central angle of 83 deg. 43 min. 52 sec. and an arc length of 314.20 feet to a concrete Right-of-way marker found for corner at the end of said curve; AGREEMENT — X -FAB TEXAS PAGE 7 THENCE South 84 deg. 14 min. 24 sec. West, along the North Right-of- way of said Loop 289, a distance of 833.14 feet to an aluminum disk monument found for corner at the beginning of a curve to the left having a radius that bears South 05 deg. 45 min. 28 sec. East, a distance of 5879.65 feet; THENCE Along the North Right-of-way of said Loop 289 and along said curve to the left, with a chord that bears South 82 deg. 04 min. 50 sec. West - 443.52 feet, through a central angle of 04 deg. 19 min. 23 sec. and an arc length of 443.63 feet to an aluminum disk monument found for comer at the end of said curve; THENCE South 83 deg. 47 min. 51 sec. West, along the North Right-of- way of said Loop 289, a distance of 766.83 feet to a concrete Right-of-way marker found for corner; THENCE South 73 deg. 26 min. 45 sec. West, along the North Right-of- way of said Loop 289, a distance of 266.20 feet to an aluminum disk monument found for corner; THENCE South 89 deg. 52 min. 26 sec. West, along the North Right-of- way of said Loop 289, a distance of 599.04 feet to an aluminum disk monument found for the Southwest corner of said Texas Instruments Addition and the Southeast corner of a called 286.15 acre tract of land conveyed to the City of Lubbock as described in a deed recorded in Volume 370, Page 55, D.R.L.C.T.; THENCE North 0 deg. 00 min. 37 sec. East, along the West line of said Texas InstrumentsAddition and the East line of said 286.15 acre tract, a distance of 2318.79 feet to an aluminum disk monument found for the most Westerly Northwest corner of said Texas Instruments Addition; THENCE South 89 deg. 56 min. 05 sec. East, a distance of 100.19 feet to an aluminum disk monument found for an inside ell corner of said Texas Instruments Addition; THENCE North 0 deg. 00 min. 05 sec. West, along the West line of said Texas Instruments Addition and the East line of said 286.15 acre tract, at 706.65 feet, passing the Southwest corner of the above mentioned abandoned Drake Street and continuing for a total distance of 766.65 feet to an aluminum disk monument found for the most Northerly Northwest comer of said Texas Instruments Addition and the Northwest corner of said abandoned Drake Street, on the South line of the above mentioned Block 1, Lubbock State School Addition; AGREEMENT - X -FAB TEXAS PAGE 8 THENCE South 89 deg. 53 min. 30 sec. East, along the North line of said Drake Street and the South line of Block 1, Lubbock State School Addition, a distance of 2800.50 feet to the POINT OF BEGINNING and containing 203.377 acres of land. SECTION 7. Economic Qualification. It is hereby found by the City that Company will expend funds in excess of the funds necessary to qualify for tax abatement by renovating an existing facility, all as set forth in Section IV(3)(a) of the Guidelines and Criteria for Tax Abatement adopted by the City through Resolution No. 6515. SECTION 8. Value of Improvements. Company intends to expend approximately two million five hundred thousand (2,500,000) dollars in renovating the facility located within the enterprise zone created by Ordinance No. 9591. SECTION 9. Sty Access to Property. Company covenants and agrees that City shall have access to the property, which is 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 that the improvements are being made in accordance with the terms and conditions of Company's application for tax abatement, attached as Exhibit "A", and this Agreement. SECTION 10. 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 6: 50% Year 2: 90% Year 7: 40% Year 3: 80% Year 8: 30% Year 4: 70% Year 9: 20% Year 5: 60% Year 10: 10% 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 renovate an existing facility as described in Exhibit W'. The Company further states that the proposed improvements to the property above mentioned shall commence on the 9th day of December, 1999, and shall be completed within approximately eighteen (18) 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. AGREEMENT - X -FAB TEXAS PAGE 9 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. 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 pursuant to law and as set forth in Guidelines and Criteria for Tax Abatement adopted by Resolution No. 6515 of the City Council of the City of Lubbock. SECTION 17. Certification. The Company agrees to certify annually 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 the 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 X -FAB TEXAS City Manager Donald C. Meinkoth P.O. Box 2000 2301 N. University Lubbock, Texas 79457 Lubbock, TX AGREEMENT - X -FAB TEXAS PAGE 10 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 24th day of X -FAB TEXAS DONALD C. ME 0TH PRESIDENT AT T: ecre ary ,LLL ID L. &14r CB: November 22, 1999 G:/tax abatement/X-FAB Texas/agreement.doc February .2000. CITY OF LUBBOCK A Municipal Corporation Max Ince, Mayor Pro Tem ATTEST: Kaytyq Darnell City gicretz P OVE AS NTENT: Kevin G. lker Business Lia son Officer AS TO FORM: Wdald G. Vandiver First Assistant City Attorney AGREEMENT - X -FAB TEXAS PAGE 11 Resolution No. 2000-80058 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 13"' Street Lubbock, TX 79457 (806) 775-2980 Section I —APPLICANT INFORMATION , t" Date of Application: 12/06/99 Applicant Name: Donald Meinkoth Company Name: X -FAB Texas, Inc. Address: 2301 N. University Avenue Phone: (806) 747-4400 Ext. 3314 Fax: (806) 747-3311 Applicants Representative on this project: Sid Friend Name: Sid Friend Address: 2301 N. University Avenue Phone: (806) 747-4400 Ext. 2232 Type of Ownership: [X ] Corporation [ ] Partnership [ ] Proprietorship Total Current Number Employees: 129 Corporate Annual Sales Per Year: 1999 Est. - $ 3.1 M ; 2000 Plan - $ 26.3M Annual Report Submitted? TAX ABATEMENT APPLICATION.rd [ ] Yes [X] No Industrial Tax Abatement Application Pace 2 Place a check mark in the box on those statements which are applicable to your company: (a) This application is for a: [ ] New Facility [ ] Expansion [ X] 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) [X ] Yes [ ] No (c) Check the following target industry which is applicable to your company [X] 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 [ ] 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) [X] 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 [X] Existing Company (f) If New Company checked, which of the following statements apply to the project: [ ] The project will add at least $1 million in real estate assessed valuation [ ] The project will add at least $2 million of personal property assessed valuation [ ] The project will add at least 25 new permanent jobs (g) If Existing Company checked, which of the following statements apply to the project: [X] The project will add at least $500,000 in real estate assessed valuation [ ] The project will add at least $1 million of personal property assessed valuation [ ] The project will add at least 20 new permanent jobs (h) Address of proposed facility: 2301 N. University Avenue, Lubbock, TX 79415 (i) Legal description of proposed facility: See attached (j) The proposed facility is located in: School District: Not Applicable City: Lubbock (k) Describe product or service to be provided: Perform Tenant -directed leasehold improvements to update and renovate space to leasable condition. (a) A general description of the improvements to be undertaken (example: modernization of manufacturing facility located at 4501 Peach Street and purchase of new manufacturing equipment). (b) A descriptive list of the improvements for which tax abatement is requested, including: (1) description of construction and location of all proposed improvements of the Real Property or Existing Facility, and; (2) list of new equipment and cost of the equipment. (c) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing facility. (d) A proposed time schedule for undertaking and completing the proposed improvements. Attachment 3 (a) A site map indicating the approximate location of improvements on the Real Property Facility or Existing Facility together with the location of any or all Existing Facilities located on the Real Property or Facility. Attachment 4 (a) A statement of the additional value to the Real Property or Facility as a result of the proposed improvements. (b) A statement of the assessed value of the Real Property, Facility or Existing Facility for the base year (attach tax assessment for property from the Lubbock Central Appraisal District). Section IV - ECONOMIC IMPACT INFORMATION Part A — Current Investment in Existing Improvements: Part B — Permanent Employment Estimates: $ 12,960,800.00 (1) If existing facility, what is the current plant employment: 129 (X -FAB Texas only) (2) Estimated number of new jobs to be created and time frame for creation of jobs: New Jobs: 700 to 800 (Tenant Employees) Time Frame: Eighteen months (3) Opening of improvements: (Month) June of (Year) 2000. Part C — Permanent Payroll Estimates: (1) If existing facility, what is the current plant payroll: __$ 5,700,000.00 (Annualized for X -FAB Texas only) Industrial Tax Abatement Application Page 4 (2) Estimated amount of new payroll : $ 16,000,000.00 (Tenant additions per Market Lubbock, Inc.) Part D — Construction and Employment Estimates: (1) Construction start: Month December Year 1999. (2) Number of construction jobs: At Start 4 Peak 50 Finish 10 (3) Number of man-years: 16.6 Part E — School District Impact Estimates: Give Estimated number of: Families transferred to area: 150 (Tenant transfers per Market Lubbock, Inc.) Children added to ISD's: 50 (Tenant additions per Market Lubbock, Inc.) Part F — City Impact Estimates: (1) Volume of treated water required from City Increase of 4000 gallons per day. (2) Volume of effluent to be treated by City Increase of 4000 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. Not Applicable. (4) Has permitting been started? 0 Yes® No Part G — Estimated Appraised Value on Site: LAND Value of Existing Facility Before New Construction (From Central Appraisal District) $938,804 Value of New Improvements NA Estimated Total Value After Improvements $938,804 Part H — Variance: PERSONAL PROPERTY $27,137,430 $27,137,430 IMPROVEMENTS $12,960,800_ $2,500,000_ $15,460,800_ (a) Is a variance being sought under Section IV 9(d) of the "Guidelines"? [ ] Yes [X] No (b) if "Yes", attach any supplementary information required. Industria! Tax Abatement Application Page 5 (a) Has applicant made application for abatement of this facility by other taxing jurisdictions or counties? [ ] Yes [X] No (b) If "Yes", please provide: (1) Dates of Application: (2) Hearing Dates: (3) Name of Jurisdiction(s): (4) Name of Contact(s): (4) Attach any letters of intent to abate. To the best of my knowledge, the above information is an accurate description of project details. Company Officia Si nature Donald C. Meinkoth Printed Name of Company Official President Title of Company Official LEGAL DESCRIPTION SITUATED in the City of Lubbock and being all of Tract A, Texas Instruments Addition, an addition to the City of Lubbock according to the map, plat and/or dedication deed thereof, recorded in Volume 1363, Page 977, Deed Records of Lubbock County, Texas (D.R.L.C.T.) and all of that abandoned Drake Street as described by Correction Quit Claim Deed from the City of Lubbock to Texas Instruments Incorporated, a Delaware corporation, recorded in Volume 1541, Page 32, D.R.L.C.T. and being more particularly described by metes and bounds as follows: BEGINNING at an aluminum disk monument found at the Northeast comer of said Drake Street on the South line of Block 1, Lubbock State School Addition, an addition to the City of Lubbock, according to the map, plat and/or dedication deed thereof, recorded in Volume 1143, Page 677, D.R.L.C.T. and also being North 0 deg. 01 min. 09 sec. East - 10.00 feet from the Northwest comer of Lot 1, Lawson Addition, an addition to the City of Lubbock, according to the map, plat and/or dedication deed thereof, recorded in Volume 838, Page 211, D.R.L.C.T. THENCE South 0 deg. 01 min. 09 sec. West, along the East line of said abandoned Drake Street, at 10.00 feet, passing the Northwest comer of said Lawson Addition, continuing along the West line of said Lawson Addition, at 60.00 feet, passing the Southeast comer of said abandoned Drake Street and the most Northerly Northeast comer of said Texas Instruments Addition, continuing on for a total distance of 139.91 feet to an aluminum disk monument found for the Southwest corner of said Lawson Addition; THENCE South 89 deg. 58 min. 01 sec. East, along the North line of said Texas Instruments Addition and the South line of said Lawson Addition, a distance of 143.27 feet to an aluminum disk monument found for the most Easterly Northeast comer of said Texas Instruments Addition and the Southeast comer of said Lawson Addition on the West Right-of-way of University Avenue (F.M. 1264, variable width R.O.W.); THENCE South 0 deg. 32 min. 04 sec. East, along the East line of said Texas Instruments Addition and the West Right-of-way of said University Avenue, a distance of 2422.31 feet to a 1/2 inch iron rod set for corner; THENCE North 89 deg. 27 min. 56 sec. East, along the East line of said Texas Instruments Addition and the West Right-of-way of said University Avenue, a distance of 10.00 feet to a 1/2 inch iron rod set for corner in the North Right-of-way of Loop 289 at the beginning of a curve to the right having a radius that bears North 89 deg. 50 min. 33 sec. West, a distance of 215.00 feet; THENCE Along the North Right-of-way of said Loop 289 and along said curve to the right, with a chord that bears South 42 deg. 01 min. 23 sec. West - 286.98 feet, through a central angle of 83 deg. 43 min. 52 sec. and an arc length of 314.20 feet to a concrete Right-of-way marker found for corner at the end of said curve; THENCE South 84 deg. 14 min. 24 sec. West, along the North Right-of-way of said Loop 289, a distance of 833.14 feet to an aluminum disk monument found for corner at the beginning of a curve to the left having a radius that bears South 05 deg. 45 min. 28 sec. East, a distance of 5879.65 feet; THENCE Along the North Right-of-way of said Loop 289 and along said curve to the left, with a chord that bears South 82 deg. 04 min. 50 sec. West - 443.52 feet, through a central angle of 04 deg. 19 min. 23 sec. and an arc length of 443.63 feet to an aluminum disk monument found for corner at the end of said curve; THENCE South 83 deg. 47 min. 51 sec. West, along the North Right-of-way of said Loop 289, a distance of 766.83 feet to a concrete Right-of-way marker found for comer; , THENCE South 73 deg. 26 min. 45 sec. West, along the North Right-of-way of said Loop 289, a distance of 266.20 feet to an aluminum disk monument found for corner; THENCE South 89 deg. 52 min. 26 sec. West, along the North Right-of-way of said Loop 289, a distance of 599.04 feet to an aluminum disk monument found for the Southwest corner of said Texas Instruments Addition and the Southeast comer of a called 286.15 acre tract of land conveyed to the City of Lubbock as described in a deed recorded in Volume 370, Page 55, D.R.L.C.T.; THENCE North 0 deg. 00 min. 37 sec. East, along the West line of said Texas Instruments Addition and the East line of said 286.15 acre tract, a distance of 2318.79 feet to an aluminum disk monument found for the most Westerly Northwest comer of said Texas Instruments Addition; THENCE South 89 deg. 56 min. 05 sec. East, a distance of 100.19 feet to an aluminum disk monument found for an inside ell comer of said Texas Instruments Addition; THENCE North 0 deg. 00 min. 05 sec. West, along the West line of said Texas Instruments Addition and the East line of said 286.15 acre tract, at 706.65 feet, passing the Southwest corner of the above mentioned abandoned Drake Street and continuing for a total distance of 766.65 feet to an aluminum disk monument found for the most Northerly Northwest corner of said Texas Instruments Addition and the Northwest corner of said abandoned Drake Street, on the South line of the above mentioned Block 1, Lubbock State School Addition; THENCE South 89 deg. 53 min. 30 sec. East, along the North line of said Drake Street and the South line of Block 1, Lubbock State School Addition, a distance of 2800.50 feet to the POINT OF BEGINNING and containing 203.377 acres of land. 2 A) RENOVATION OF SPACE LOCATED AT 2301 N. UNIVERSITY AVENUE, LUBBOCK, TEXAS. B) THE FOLLOWING IS THE LIST OF PROPOSED IMPROVEMENTS: 1) MODIFY MODULES C, D, & E TO HOUSE A CALL CENTER OPERATION 2) MODIFY MAIN LOBBY 3) CONSTRUCT AN AREA FOR A DAY CARE CENTER IN MODULE B 4) RECARPET AND REPAINT MAIN SPINE 5) CONSTRUCT NEW VISITORS LOBBY AT THE SOUTH END OF THE FACILITY 6) MODIFY MODULE A WAREHOUSE PER TENANT REQUIREMENTS C) TANGIBLE PERSONAL PROPERTY LIST - ATTACHED. D) THE PROPOSED CONSTRUCTION IS PLANNED TO BEGIN IN DECEMBER 1999, AND WILL BE COMPLETED BY JUNE 2002. Date: 11/23/99 Page: X -FAB TEXAS,INC. A S S E T L I S T I N G R E P O R T For: Financial Book Period Ending: October 31, 1999 Select: All Sub -Total By: Asset ID -------------------------------z.............................. Asset ID Description Serial No. Acquired ---------------------------------- --------------- -------- 20 WET PROCESSOR 7218 02/01/99 21 WET PROCESSOR 2120S 7217 02/01/99 22 ULTRASTAR MICROSCOPE 367452 02/01/99 23 NANOSPEC 2253 02/01/99 24 PROBER ELECRROGLAS 2001X 83030091 02/01/99 .•..... 25 HOOD MEGASONIC SEMIFAB 21612E 02/01/99 26 HOOD MEGASONIC SEMIFAB 21612E 02/01/99 27 HOOD HF -RCA SEMIFAB 21611C 02/01/99 28 HOOD HF -RCA SEMIFAB 21611D 02/01/99 29 HOOD HF -RCA SEMIFAB 21611E 02/01/99 30 S3100 PLASMA ASHER M600714 02/01/99 31 53100 PLASMA ASHER M600711 02/01/99 32 HOOD HF -RCA SEMIFAB 12611A 02/01/99 33 HOOD HF -RCA SEMIFAB 21611B 02/01/99 34 ASHER 53100 02/01/99 35 ASHER S3100 02/01/99 36 LIS WAFERMARK II 109 02/01/99 37 ASHER 02/01/99 38 ASHER 53100 02/01/99 39 HOOD MEGSONIC SEMIFAB 21612A 02/01/99 40 HOOD MEGASONIC SENIFAB 21612B 02/01/99 41 COE HOOD SEMIFAB 2162 04 02/01/99 42 NANOLINE 2237 02/01/99 43 PROBER 2001XRA WP84101003 02/01/99 44 PROBER E G MOD 2001 109573 02/01/99 46 ELECTROGLAS 2001X PROBER WP041111143 02/01/99 47 PROBER 2001X ELECTROGLS KP84100996 02/01/99 48 PROBER 2001X WP04010389 02/01/99 50 PROBER 2001 ELECTROGLS WPO4211110 02/01/99 51 PROBER 2001X ELECTROGLS WP04101042 02/01/99 52 WAFER INSPECT NIS 150 02/01/99 53 PROBER 2001X ELECTROGLS WP84101041 02/01/99 54 PROBER 2001X WP84010390 02/01/99 55 PROBER 2001X WP04050618 02/01/99 56 VERSAPROBE PROMETRIC VP060 02/01/99 57 PROBER 2001YBA WP84101028 02/01/99 58 PROBER 2001X ELECTROGLS WP84111126 02/01/99 61 PROBER 2001X ELECTROGLS WP8412117 02/01/99 62 PROBER 2001X ELECTROGLS 8410102511 02/01/99 63 PROBER 2001X ELECTROGLS WP84121161 02/01/99 64 AUTOETCH 580 LAM 1150 02/01/99 65 PLASMA SPECTROMETER B&L 1142 02/01/99 66 PROBER 2001X WP8402 042 02/01/99 67 PROBER 2001X WP8403 051 02/01/99 69 PROBER 2001X ELECTROGLS 02/01/99 70 AUTO ETCH LAM 1116 02/01/99 71 POLY ETCHER 1060 02/01/99 72 AUTOETCH 680 LAM 02/01/99 73 DIF FURNACE THERMO 8362A 02/01/99 74 DIF FURNANCE *• BG355L 02/01/99 75 DIF FURNACE THERMO BG358R 02/01/99 76 DIF FURNACE THERMO BG361L 02/01/99 77 DIF FURNACE THEP140 BG357L 02/01/99 78 DIF FURNACE THERMO BG360R 02/01/99 79 DIF FURNACE THERMO 02-17590 02/01/99 Date: 11/23/99 Page; X -FAB TEXAS,INC. A S S E T L I S T I N G R E P O R T For: Financial Book Period Ending! October 31, 1999 Select: All Sub -Total By: Asset ID ..........-�................................................. Asset ID Description ------------------------------------------------- Serial No. Acquired 80 NSR 1505G 3A 1 -------- 02/01/99 81 SILICIDE DEP GENUS 02/01/99 82 CVD FURNACE BG 364R 02/01/99 83 STEPPER NIKON NSR 1505G2A 43194 02/01/99 84 STEPPER NIKON 43200 02/01/99 85 NONOSPEC 2066 02/01/99 86 ULTRASTAR MICROSCOPE 385972 02/01/99 87 ULTRASTAR MICROSCOPE 385978 02/01/99 88 VACCUM GUAGE SYSTEM VGUS5 02/01/99 89 AUTOEL IV RUDOLPH 7596 02/01/99 90. MULTI PROBER 20OIX WP85041498 02/01/99 95 MULTI PROBER 20OIX WP85051572 02/01/99 96 MULTI PROBER 2001X WP85051587 02/01/9 99 MULTI PROBER 20OIX WP05061657 02/01/99 100 MULTI PROBER 2001X WP85061666 02/01%99 101 MULTI PROBER 20OIX WP05061673 02/01/99 103 NSR 1505G3A 43163 02/01/99 104 GENUS 02/01/99 105 NIKON STEPPER 43216 02/01/99 106 ION IMPLANT VARIAN 350D 50963 02/01/99 107 RINSER DRYER MOD DC -50 02/01/99 108 MULTI PROBER 2001X NP85011312 02/01/99 109 MULTI PROBER 2001X NP85011311 02/01/99 110 MULTI PROBER 2001X WP85011304 02/01/99 111 MULTI PROBER 2001X WP85011258 02/01/99 112 MULTI PROBER 2001X WP85011309 02/01/99 113 NSR 1505-GS3A118 43261 02/01/99 114 NSR 1505-G3A 117 43260 02/01/99 115 40101 ION CHROMATOGRAPH 863142 02/01/99 116 MULTI PROBER 2001X WP86082148 02/01/99 117 MULTI PROBER 2001X P860620771 02/01/99 118 SATURN ACID PROCESSOR 311 02/01/99 119 ULTRASTAR MICROSCOPE 385950 02/01/99 120 ULTRASTAR MICROSCOPE 386019 02/01/99 121 LP111 VAPOR PRIME OVEN 87552 02/01/99` f 124 HF VAPOR ETCHER FSI i 02/01/_ 125 CSM -16 MEASURMENT SYSTEM .9020005038 149KC 02/01/99' 126 MODEL YES -5 VAPOR OVEN 874956 02/01/99; 127 Q2/62 LOGIC TEST 28824 02/01/99' 128 PROBER 20OIX ELTROGLS WP87052450 02/01/99' 130 GUARDIAN 8 BURNOFF SYSTEM 18 02/01/99. 131 RINSER DRYER DC -50 02/01/99 132 POLYLITE MICROSCOPE 386142 02/01/99 133 DEKTAK 3030 SURFACE PROFI 6056 02/01/99 134 PLASMA AUTOETCH 490 LAM M1559 02/01/99 135 ETCHER MOD 590 LAM 1603 02/01/99 136 ETCHER MOD 490 LAM 1590 02/01/99 137 LAM 690 METAL ETCHER M 1553 02/01/99 138 RINSER/DRYER MODEL ST -870 C19929-2 02/01/99 139 MASS WAFER TRANSFER 881011-957 02/01/99 140 MASS WAFER TRANSFER 881007-946 02/01/99 141 RINSER/DRYER MODEL ST -870 C19929-4 02/01/99 142 RINSER/DRYER MODEL ST -870 02/01/99 143 RINSER/DRYER MODEL ST -970 02/01/99 144 RUNSER/DRYER MODEL ST -970 02/01/99 145 PROBE CARD BUILD STATION /243 02/01/99 146 NANOSPEC MODEL 210 0888-5290 02/01/99 147 PHOTORESIST STRIP HOOD 60 40532.01 02/01/99 . 148 NANOSPEC MODEL 210 0888-5304 02/01/99 149 L3100 ASHER BRANSON M912650 02/01/99 150 DEEP UV MICROLITE 15OPC 299 02/01/99 151 L3100 ASHER BRANSON M912670 02/01/99 152 DEEP UV MICROLITE 15OPC 297 02/01/99 153 L3100 ASHER M912320 02/01/99 154 PHOSPHORIC HOOD SEMIFAB 3931 02/01/99 155 WIS-600 CINFIG -B- 5082B 02/01/99 156 590 ETCHER -OXIDE 1643 02/01/99 Page; Date: 11/23/99 X -FAB TEXAS, INC. A S S E T L I S T I N G R E P O R T For: Financial Book Period Ending: October 31, 1999 Select: All Sub -Total By: Asset ID — —s=s Asset IDs `Description "agSerialsNo. 'Acquired 157 LAM 490 POLY ETCHER 1656 02/01/99 158 LAM 590 OXIDE ETCHER 1634 02/01/99 159 590 OXIDE ETCHER LAM 1632 02/01/99 160 LAM 490 POLY ETCHER 1654 02/01/99 161 490 POLY ETCHER LAM 1638 02/01/99 162 HIGH PRESSURE OXIDE SYS 11826 02/01/99 163 XP -160 HIGH CURRENT IMPLA 2026420 02/01/99 164 XP -160 HIGH CURRENT IMPLA 20339 02/01/99 165 VERSAPROBE VP1O 4PT 904V2 02/01/99 166 4708/4600 CALIBRATOR 20593-2 02/01/99 167 ENVIR CHAMBER NIKON 02/01/99 168 LOMAC PC CONVERSION KIT 321 02/01/99 169 LOMAC PC CONVERSION KIT 323 02/01/99 170 HORIZ QUARTZ CLEANER 02/01/99 171 HORIZ QUARTZ CLEANER 12240 02/01/99 172 SCV SCALES/INSTALLATION 02/01/99 173 OAS MONITORING SYSTEM BY075991 02/01/99 174 L3100 BRANSON ASHER M9112880 02/01/99 115 2001 PROBER GEN SYS 89053423 02/01/99 176 2001 PROBER GEN SYS 89053422 02/01/99 177 2001 PROBER GEN SYS 89063464 02/01/99 178 2001 PROBER GEN SIG 89053453 02/01/99 179 2001 PROBER GEN SIG 89053455 02/01/99 180 TEST SYS DEC ADV 900805592 02/01/99 161 SATURN SYSTEM 2 FSI SA500 02/01/99 182 GENESIS II TESTER 52522 02/01/99 183 LAM 490 AUTO ETCH 02/01/99 184 LAM 490 AUTO ETCH 1702 02/01/99 185 S-6000 HITACHI SEM 27-03 02/01/99 186 POLYLITE SCOPE REICHERT 407211 02/01/99 187 POLYLITE SCOPE REICHERT 407212 02/01/99 188 POLYLITE SCOPE REICHERT 407213 02/01/99 189 POLYLITE SCOPE REICHERT 407215 02/01/99 190 POLYLITE SCOPE REICHERT 407214 02/01/99 191 POLYLITE SCOPE REICHERT 407216 02/01/99 192 POLYLITE SCOPE REICHERT 407217 02/01/99 193 TISI2 MEGASONIC HOOD 3931-018 02/01/99 194 SDA PHASE III SYSTEM 02/01/99 195 SDA PHASE III SYSTEM 02/01/99 196 PF BOAT ETCH HOOD POLYFLO 02/01/99 197 DEEP UV PHOTOSTAB FUSION 02/01/99 198 METALLURGICAL MICROSCROPE 02/01/99 199 NICOLET ECO -8U 02/01/99 200 KEVEX WAFER ANALYST 8000730043 02/01/99 201 MICRO RIE ETCHER TECHNICS 02/01/99' 202 HF/RCA HOOD 3931-02 02/01/99 203 SVG SCRUBBER 17188 02/01/99 204 RCA MEGASONIC HOOD 3931 -OLA 02/01/99 205 SATURN SYSTEM 2 FSI SA400 02/01/99 206 THERMAPROBE 300PROC CNTL 322 02/01/99 207 HITACHI S-6000 25-03 02/01/99 208 OXIDE FURNACE AJ -701R 02/01/99 209 RIE ETCHER 8330 96802 02/01/99 210 HIGH INTENSITY E4PO 02/01/99 211 HIGH INTENSITY E4PO 02/01/99 212 LEAK DETECTOR VARIAN J9001005 02/01/99 213 POLYLITE SCOPE REICHERT 02/01/99 214 POLYLITE SCOPE REICHERT 02/01/99 215 2001XA PROBER 89083581 02/01/99 216 2001XA PROBER 89083580 02/01/99 217 GENEIS II TESTER MEGA 02/01/99 216 SILANE SAFETY UPGRADE 02/01/99 219 STEPPER MII CANON CD781006-A 02/01/99 220 ENDPOINT DETECTION SYSTEM 100902 02/01/99 221 ENDPOINT DETECTION SYSTEM 391079 02/01/99 222 ENDPOINT DETECTION SYSTEM 391080 02/01/99 223 ENDPOINT DETECTION SYSTEM 390982 02/01/99 224 ENDPOINT DETECTION SYSTEM 395009 02/01/99 225 ENDPOINT DETECTION SYSTEM 381071 02/01/99 226 GUARDIAN 8 GAS PROTECTION 02/01/99 227 UTI PROCESS MONITOR 327 02/01/99 228 UTI PROCESS MONITOR 328 02/01/99 229 DEEP UV SYSTEM FUSION 02/01/99 230 BRANSON ETCHER 91373 02/01/99 231 DOUBLE TRACK SCRUBBER 02/01/99 232 R4500 PLASMA ETCH SYSTEM 2231 02/01/99 233 R4500 PLASMA ETCH SYSTEM 2175 02/01/99 Page: Date: 11/23/99 'X -FAB TEXAS,INC. A S S E T L I S T I N G R E P O R T For: Financial Book Period Ending: October 31, 1999 Select: All Sub -Total By: Asset ID AssetIDaa=aDescriptionSerial No. Acquired 234 PT211 PROBER TABLE 02/01/99 235 RAPID PATRN RELOAD KITS 9015-3 02/01/99 236 MICRO LPC -110 MICRO LASER 4140590369 02/01/99 237 IMPACT RISK PROC KIT PAC 660 02/01/99 238 EUREKA MASS TRANSFER 02/01/99 239 VP248.80 COLOR VIDEOPHONE 08AF001946 02/01/99 240 STREAM SENSOR HAIC-ROYCO 90053016 02/01/99 241 GUARDIAN 8 GAS PROTECTION 253 02/01/99 242 POLYLITE SC MICROSCOPE 84478 02/01/99 243 POLYLITE SC MICROSCOPE 02/01/99 244 PELLICLE MOUNTER CANNON 15 02/01/99 245 PARTICLE COUNTER HORIBA 850440013B 02/01/99 246 PM -150 CONTROLLER/SENSOR 02/01/99 247 WAFER ID READER 6 MICROVI 1020 02/01/99 248 HTC 8000 BOAT WASHER 02/01/99 249 MICROLITE PHOTOSTABILIZER 02/01/99 250 WAFER ID READER 1019 02/01/99 251 2001XA PROBER RP90063906 02/01/99 252 CAMBRIGE CLEAN ROOM SEM 360-15-01 02/01/99 253 TESTER MEMORY 31631 02/01/99 254 AMT 8330 ETCHER 543 02/01/99 255 9000 LASER REPAIR. SYSTEM 60052 02/01/99 256 KLA 259 406 02/01/99 257 CVD SYSTEM THREE CHAMBER CA5511 02/01/99 258 OPTICAL DISK SUBSYSTEM 2318 02/01/99 259 ERN RELOAD KIT 9015-2 02/01/99 260 STEPPER MIVU 02/01/99 261 MASS TRANSFER 910621V000 02/01/99 262 HIGH PRESSURE GAS SYSTEM 3850591139 02/01/99 263 PICA 311 LIQUID PARTICLE 850431033K 02/01/99 264 POLULITE MICROSCOPE 84607 02/01/99 265 POLULITE MICROSCOPE 02/01/99 266 DEKTAK 3030 02/01/99 267 POLULITE MICROSCOPE 84611 02/01/99 268 POLULITE MICROSCOPE 84615 02/01/99 269 POLULITE MICROSCOPE 84612 02/01/99 270 HEATPULSE ANNEALER 149201181 02/01/99 271 PLCA 520 LIQUID PARTICLE 850632011D 02/01/99 272 SPIN RINSER DRYER 02/01/99 273 SPIN RINSER DRYER C3626.01 02/01/99 274 SPIN RINSER DRYER 02/01/99 275 POLYVAR MICROSCOPE 02/01/99 276 POLYVAR NICROSCOPE 386343 02/01/99 277 POLYVAR MICROSCOPE 386341 02/01/99 - 278 POLYVAR MICROSCOPE 02/01/99 279 POLULITE MICROSCOPE 84613 02/01/99 280 NANOSPEC 0191-05702 02/01/99 281 AUTOEL ELLIPSOMETER 02/01/99 282 VERSAPROBE MONITOR 9106V3 02/01/99 283 SM100 SPECTRAMAP 108SM15002 02/01/99 284 HANOMETRICS MODEL 21OUV 02/01/99 285 SUNBURST CLEANING SYSTEM 02/01/99 286 FUSION ERASER 671 02/01/99 287 PROBE CARD ANALYZER PAC 30021 02/01/99 288 UP WET ETCH HOOD 2599 02/01/99 289 2001X PROBER WP91004369 02/01/99 290 WAFER INSPECTION SYSTEM 9538D 02/01/99 291 UP SOLVENT HOOD 2591 02/01/99 292 SURFSCAN 6200 WIS 02/01/99 293 SURFSCAN 6200 WIS 891-0133 02/01/99 294 KLA EMISSION MICROSCOPE WOJ88 02/01/99 295 DEVELOPER TEL MARK 2 211467 02/01/99 296 GENESIS II MEMORY TESTER 40267 02/01/99 297 ESI 9000 LASER PROCESS SY 60068 02/01/99 298 S-6100 SEM 02/01/99 299 GENESIS II TESTER 02/01/99 300 GENESIS II TESTER 02/01/99 301 160XP IMPLANTER 20457 02/01/99 302 PROBER. INSTALLATION 02/01/99 303 WAFER ID READER SYSTEM 02/01/99 304 AMT 5000,3CH,TEOS/BPSG 02/01/99 305 PELLICLE MOUNTING TOOL 93005 02/01/99 306 OLYMPUS STERO MICROSCOPE 137168 02/01/99 307 WAFER X-FER SYSTEM CONT 02/01/99 308 BACK TO BACK WFR X-FER SY 93082445 02/01/99 309 CONTIGOUS WAFER TRANSFER 02/01/99 310 CONTIGOUS WAFER TRANSFER 02/01/99 Page: Date: 11/23/99 X -FAB TEXAS,INC. A S S E T L I S T I N G R E P O R T For: Financial Book Period Ending: October 31, 1999 Select: All Sub -Total By: Asset ID Asset ID --------- Description — ----------------------- Serial No. �sAcquireda --------------- -------- 311 CONTIGOUS WAFER TRANSFER 02/01/99 312 WAFER TRANSFER SYS 02/01/99 313 HP CAPACITANCE SYSTEM 2940J0471 02/01/99 314 HELIUM LEAK DETECTOR 02/01/99 315 BRANSON ASHER M960130 02/01/99 316 WAFER X-FER SYS BACK TO B 02/01/99 317 WAFER X-FER SYS BACK TO B 02/01/99 318 PHOTO -IONIZATION SYSTEM 1104 02/01/99 319 PHOTO IONIZATION SYSTEM 1105 02/01/99 320 PHOTO -IONIZATION SYSTEM 1106 02/01/99 321 MDA GAS MONITOR SYSTEM 02/01/99 322 MICROLITE PHOTOSTABLIZER 02/01/99 323 LEICA REVIEW STATION 145707 02/01/99 324 LECIA REVIEW STATION 145736 02/01/99 325 PROBE CARD ANALYZER 3002 02/01/99 326 KLA 2111 W/ACCESSORIES 100389 02/01/99 327 3500 ION IMPLANTER 02/01/99 328 CL2 CAS PANEL 02/01/99 329 HBR GAS PANEL 02/01/99 330 ANALYTICAL BALANCE 02/01/99 331 JR/SR MACTRONIX UPG 870105-561 02/01/99 332 LCR METER W/BOARDS 2940J05539 02/01/99 333 BLUE M OVEN LTC -103 02/01/99 334 BLUE M OVEN 02/01/99 335 CASSETTE LOADER/SCOPE 02/01/99 336 APEX COMPUTER 02/01/99 337 ANALYTICAL PROBER 02/01/99 338 PARAMETRIC ANALYXER 02/01/99 339 PARAMETRIC ANALYZER 02/01/99 340 RETICAL CLEANER 422V0009 02/01/99 341 LEICA REVIEW STATION 301-360 02/01/99 342 SURFSCAN 6400 0994-140 02/01/99 343 SURFSCAN 7600 0894-441M 02/01/99 344 PARTICLE 6 DEFECT ANALYZR 02/01/99 345 OSCILLOSCOPE 3241A00168 02/01/99 346 SPECTRUM ANALYZER B022036 02/01/99. 347 DETECTOR W/BOTTLE DMCM3005 02/01/99 348 48' UP ACID HOOD 02/01/99 349 SCRUBBER 5311CAB-19'02/01/99 350 TAPE LAMINATOR/REMOVAL SY 1026 02/01/99 351 DISCO GRINDER H033-029 02/01/99- 352 DEVELOPER TEL MARK 5-2 TR 613019/613020 02/01/99' 353 COATER TEL MARK 5 2 -TRACK 613017/613018 02/01/99; 354 COATER TEL MARK 5-2TRACKS 613015/613016 02/01/99. 355 CANNON I-3 STEPPER 0501294 -CK 02/01/99" 356 WAFER TRANSFER SYSTEM 9404224793 02/01/99 357 WAFER TRANSFER SYSTEM 9404224795 02/01/99 358 WAFER TRANSFER SYSTEM 9404224794 02/01/99 359 WAFER TRANSFER SYSTEM 9404224796 02/01/99 360 WAFER TRANSFER SYSTEM 02/01/99 361 WAFER TRANSFER SYSTEM 02/01/99 362 WAFER TRANSFER SYSTEM 02/01/99 363 WAFER TRANSFER SYSTEM 02/01/99 364 WAFER TRANSFER SYSTEM 02/01/99 365 WAFER TRANSFER SYSTEM 02/01/99 366 WAFER TRANSFER SYSTEM 02/01/99 367 WAFER TRANSFER SYSTEM 02/01/99 368 CANNON COMPUTER 2645HO1606 02/01/99 369 DUAL WAVELENGTH SCANNER 02/01/99 370 MCLT 02/01/99 371 HORIBA PD -3000 118312 C 02/01/99 372 TEL MARK V DEVELOPER -2 TR 613021/613022 02/01/99 373 SPUTTER F909485329 02/01/99 374 I -LINE STEPPER 02/01/99 375 CANNON STEPPER 02/01/99 376 MASS TRANSFER SYS UPGRADE 02/01/99 377 MASS TRANSFER SYS UPGRADE 02/01/99 378 NIKON VODEO SYSTEM 02/01/99 . 379 SPIN RINSE DRYER 02/01/99 380 WAFER SORTING SYSTEM 02/01/99 381 TENCOR 7700 0995-725 02/01/99 382 4520 ETCHER 3499 02/01/99 383 4520 ETCHER 3500 02/01/99 384 4520 ETCHER 3508 02/01/99 385 SPIN ON GLASS COATER 54200-6644 02/01/99 386 NOVELLUS 150 CVD 95-39-1080 02/01/99 387 METAL CVD CENTURA 02/01/99 Page Date: 11/23/99 X -FAB TEXAS,INC. A S S E T L I S T I N G R E P O R T For: Financial Book Period Ending: October 31, 1999 Select: All Sub -Total By: Asset ID Asset ID Description f Serial No. AcquiredaI 388 ENDURA 5500 SPUTTER SYSTE E3502F 02/01/99 389 PARAMETRIC ANALYZER 02/01/99 390 CONCEPT 150 NOVELLUS 94-41-851 02/01/99 391 RETICLE LAMP 02/01/99 392 RETICLE LAMP 02/01/99 393 ENVIORMENTAL MOD-SOLOMAT 02/01/99 394 WAFER TRANSFER SYS UPGRAD 02/01/99 395 LCD POWER VIEWER 9AL01223 02/01/99 396 MOTORIZED SCOPE 02/01/99 397 MOTORIZED SCOPE 02/01/99 398 MOTORIZED SCOPE 02/01/99 399 PRECISION LCR METER 02/01/99 400 THERMO-CHUCK SYSTEM 02/01/99 401 SYSTEM III 02/01/99 402 KURABO CHEMMICALIZER 02/01/99 403 REVEIW STATION 02/01/99 404 MONARCH BARCODE PRINTER 02/01/99 405 QUICK DUMP RINSE 02/01/99 406 QUICK DUMP RINSE 02/01/99 407 TCP QUARTZ ANNEALING OVEN 02/01/99 408 RINSER/DRYER 02/01/99 409 RINSER/DRYER 02/01/99 410 ULTRASTATION WAFER HANDLE 02/01/99 411 NANOSPEC 02/01/99 412 REFURBISHED SCRUBBER 02/01/99 413 GASONICS ASHER 9102/A 02/01/99 414 ICP CHEMICAL ANALYZER 02/01/99 415 NOVELLOUS CVD 02/01/99 416 OPAL AUTO -SEM 02/01/99 417 NOVELLUS CONCEPT I 95512044 02/01/99 418 TCP 9600 02/01/99 419 TCP 9600 4429 02/01/99 420 TCP 9600 4430 02/01/99 421 TCP 9600 02/01/99 422 TEL MARK 5 COATER -2 TRACK 616556/616557 02/01/99 423 I-3 STEPPER 02/01/99 424 CANNON I-3 STEPPER CD70603714 02/01/99 425 GSD IMPLANTER 02/01/99 426 ENDURA SPUTTER 02/01/99 427 VAMADA LAMP 02/01/99 428 CLEAN FUME HOOD 02/01/99 429 BAKE STATION 02/01/99 430 11 SLOT ENCLOSURE MPB22481 02/01/99 431 11 SLOT ENCLOSURE MPB 22480 02/01/99 432 OPTIPROBE 02/01/99 433 MID CURRENT IMPLANTER 02/01/99 434 TAPE MACHINE 02/01/99 435 HP PRECISION LCR METER 02/01/99 436 BLAST CABINET 02/01/99 437 COLD TEMP PROBER 02/01/99 438 AUTOMATIC INSPECTION SYS 02/01/99 439 JETWASH CABINET 02/01/99 440 WAFER SORTER 02/01/99 441 2 STACK FURNACE-THUMPET 02/01/99 442 BLAST CABINET 02/01/99 443 USED BRANSON ETCHER 02/01/99 444 TENCOR 7700MM-TWINSTAR 02/01/99 445 HOOD MEGASONIC SE14IFAB 21612D 02/01/99 446 3S/521 SERVER 02/01/99 447 3S/521 SERVER 02/01/99 448 CD ROM WRITER 02/01/99 449 P5/100 02/01/99 450 P5/100 02/01/99 451 E-3100 02/01/99 452 EMERGENCY PWR UNIT 02/01/99 453 ETHERNET 386 SNIFFER 02/01/99 454 G6-200 02/01/99 455 NETWORK 02/01/99 456 MONARCH PRINTER 02/01/99 457 ON LINE PRINTER 02/01/99 458 P5-100 02/01/99 459 P5-100 02/01/99 460 PS -100 02/01/99 461 P5-100 02/01/99 462 P5-100 02/01/99 463 P5-100 02/01/99 464 P5-100 02/01/99 Page Date: 11/23/99 t Pagc. X -FAB TEXAS,INC. A S S E T L I S T I N G R E P O R T For: Financial Book Period Ending: October 31, 1999 Select: All Sub -Total By: Asset ID ­_.sa. =--=..s.=---= ._ams ............ Asset ID Description --------- ------------------------- Serial No. Acquired --------------- 465 P5-100 -------- 02/01/99 , 466 P5-100 02/01/99 467 P5-100 02/01/99 468 P5-100 02/01/99 469 P5-100 02/01/99 470 P5-133 02/01/99 471 P5-133 02/01/99 472 P5-90 02/01/99 473 P5-90 02/01/99 474 P5-90 02/01/99 475 P5-90 02/01/99 476 P5-90 02/01/99 477 P5-133 02/01/99 478 P5-133 02/01/99 479 P5-133 02/01/99 480 P5-133 02/01/99 481 P5-133 02/01/99 482 P5-133 02/01/99 483 P5-133 02/01/99 484 P5-133 02/01/99 485 P5-133 02/01/99 486 P5-166 02/01/99 487 P5-166 02/01/99 488 P5-166 02/01/99 489 P5-166 02/01/99 490 P5-166 02/01/99 491 P5-166 02/01/99 492 P5-166 02/01/99 493 P5-166 02/01/99 494 P5-166 02/01/99 495 P5-166 02/01/99 496 P5-166 02/01/99 497 P5-166 02/01/99 498 P5-166 02/01/99 499 P5-166 02/01/99 500 P5-166 02/01/99 501 P5-166 02/01/99 502 P5-166 02/01/99 503 P5-166 02/01/99 504 PS -166 02/01/99 505 P5-166 02/01/99 506 P5-166 02/01/99 507 P5-166 02/01/99 508 P5-166 02/01/99 509 P5-166 02/01/99. 510 P5-166 02/01/99 511 P5-66 02/01/99 512 P5-166 02/01/99 ` 513 P5-166 02/01/99 514 P5-166 02/01/99 515 P5-166 02/01/99 516 P5-166 02/01/99 517 P5-166 02/01/99 518 P5-166 02/01/99 519 P5-166 02/01/99 520 P5-166 02/01/99 521 P5-166 02/01/99 522 P5-200 02/01/99 523 P5-200 02/01/99 524 P5-200 02/01/99 525 P5-200 02/01/99 526 P5-200 02/01/99 527 P5-200 02/01/99 528 P5-200 02/01/99 529 P5-200 02/01/99 530 P5-200 02/01/99 531 P5-200 02/01/99 532_ P5-133 02/01/99: 533 P5-133 02/01/99 534 P5-133 02/01/99 535 P5-133 02/01/99 536 P5-133 02/01/99 537 P5-133 02/01/99 538 P5-133 02/01/99 539 P5-133 02/01/99 540 P5-133 02/01/99 541 P5-133 02/01/99 Pagc. Date: 11/23/99 Page: 8 X -FAB TEXAS,INC. A S S E T L I S T I N G R E P O R For: Financial Book Period Ending: October 31, 1999 Select: All Sub -Total By: Asset ID Asset ID Description Serial No. Acquired - ------------------------- --------------- -------- 542 P5-133 02/01/99 , 543 P5-133 02/01/99 544 P5-133 02/01/99 545 P5-133 02/01/99 546 P5-133 02/01/99 547 P5-100 02/01/99 548 P5-100 02/01/99 549 P5-100 02/01/99 550 P5-100 02/01/99 551 P5-100 02/01/99 552 P5-100 02/01/99 553 UNIX BASED GRAPHICAL WKST 02/01/99 554 VIDEO PROJECTOR 02/01/99 555 P5-166 02/01/99 556 CANNON G -LINE STEPPERS CS701 02/01/99 557 CANNON G -LINE STEPPER CS703 02/01/99 558 TELECOMMUNICATION SYS 04/30/99 559 M9AF-750 WELD HEAD 04/30/99 560 ROOF REPAIR TO MOD A 04/30/99 561 SECS DRIVER LIBRARY 05/18/99 562 SCRIPTING/TEST PACKAGE 05/18/99 563 MODEL 9-500 WELD HEAD 05/17/99 564 TUBE CLAMP ASSY FOR WELD 05/17/99 565 SIGMA DELTA 1 91100702 06/30/99 566 SIGMA DELTA 02 84800712 06/30/99 567 SIGMA DELTA 3 91100701 06/30/99 568 SIGMA DELTA 4 91900707 06/30/99 569 SIGMA DELTA 5 84800715 06/30/99 570 SIGMA DELTA 6 91900709 06/30/99 571 SIGMA DELTA SPARES 06/30/99 572 LAYKIT 1 06/30/99 573 LAYKIT 2 06/30/99 574 FILM THICKNESS STD FTS 6- 5226.001 08/10/99 575 FILM THICKNESS STD FTS 6- 4979-008 08/10/99 576 FILM THICKNESS STD FTS 6- 4982-014 08/10/99 577 FILM THICKNESS STD 6-500 4955-011 08/10/99 578 PROBE SERVER 990901-771 09/30/99 579 .PROBER PC'S 09/30/99 Grand Totals Assets: 578 fe" I Eo Lw� I El t' A s3Ovds Z" 101 ,�o00ao LOOP 289 N O .— i r ....... i i' 00000 p 000ao Its X oe x 5 ,••••t• •• • •, Z 0 a o I El t' A s3Ovds Z" 101 ,�o00ao LOOP 289 N O .— i r ....... i i' 00000 p 000ao Its X x 5 0 Z 0� Z D w N w I STATEMENT OF ADDITIONAL VALUE FROM DECEMBER OF 1999 THROUGH JUNE 2002, X -FAB TEXAS, INC. WILL BE RENOVATING THE FACILITY LOCATED AT 2301 N. UNIVERSITY AVENUE, LUBBOCK, TEXAS TO BRING PORTIONS OF THE FACILITY INTO LEASABLE CONDITION. DURING THIS RENOVATION, X -FAB TEXAS, INC. HAS PLANS TO INVEST $2,500,000.00 ON THE FOLLOWING LIST OF PROPOSED IMPROVEMENTS: 1) MODIFY MODULES C, D, & E TO HOUSE A CALL CENTER OPERATION 2) MODIFY MAIN LOBBY 3) CONSTRUCT AN AREA FOR A DAY CARE CENTER IN MODULE B 4) RECARPET AND REPAINT MAIN SPINE 5) CONSTRUCT NEW VISITORS LOBBY AT THE SOUTH END OF THE FACILITY 6) MODIFY MODULE A WAREHOUSE PER TENANT REQUIREMENTS Me ilig ossssz MAKE CHECKS PAYABLE TO: 1999 TAX STATEMENT STATEMENTNO. PAYABLE UPON RECEIPT Lubbock Central Appraisal District XREF ID : 00551986 P.O. BOX 10568 - 1715 26TH ST. PROPERTY :839313 TEXAS LUBBOCK, TEXAS 79408-3568 INSTRUMENTS TR A & CLOSED (806) 762-5000 EXT. 503 STREET , SITUS: 2301 N UNIVERSITY AVE TO RECEIVE A RECEIPT CHECK BOX 191721 X FAB TEXAS INC 2301 N UNIVERSITY AVE LUBBOCK, TX 79415-1717 339578.44 PLEASE RETURN THIS PORTION WITH PAYMENT RETAIN THIS PORTION FOR YOUR RECORDS 1999 TAX STATEMENT STATEMENT NO. 103811 VALUATION BREAKDOWN :.:::::::....... OCT TiutRei 0.00 .....:... LUBBOCK ISD 0 3,899,604 339578.44 0 3r899,604 0.00 1.565000 7 528.80 CITY OF LUBBOCK 0 3,899,604 7$ 0 3,899,604 MAR 0.580000-30,6-17.70 1 30562.06 370140.50 HI PLAINS WATER 0 3,899,604 376932.07 0 3,899,604 44145.19 0.008400 1-167.57 15% UBB CNTY HOSPITAL 0 3,899,604, 0 3,899,604 0098000 R3,618.83 LUBBOCK COUNTY 0 3,899,6041 0 3,899,604f—o..191700 6 645.54 ** CITY TAXES REDUCED BY ADDITIONAL SALES TAX: $6,245.09 ** ** ** DAVE KIMBROUGH JAN 1 OWNER: TEXAS INSTRUMENTS INC PROPERTY :839313 TEXAS INSTRUMENTS TR A & CLOSED STREET , SITUS: 2301 N UNIVERSITY AVE 191721 X FAB TEXAS INC 2301 N UNIVERSITY AVE LUBBOCK, TX 79415-1717 PAYMENT SCHEDULE sAG;: Ax Ha orI :ovex 6s •'°"'`''`` :'•><:REFER:30?FiIE:PJAa!fAENT:SdiE�U[EItBpYE_ IF YOU HAVE QUESTIONS PLEASE CALL (806) 762-6000. TAXES BECOME DELINQUENT ON FEBRUARY 1. AFTER JUNE AN ADDITIONAL PENALTY OF 16% MAY BE IMPOSED ON THE AMOUNT OF TAXES, PENALTY AND INTEREST DUE. AFTER JULY AN ADDITIONAL 1% PENALTY AND INTEREST WILL BE APPLIED. OCT 0% 0.00 3395 78.44 NOV 0% 0.00 339578.44 DEC 0$ 0.00 339578.44 JAN0$ 0.00 339578.44 FEB 7$ 23770.50 363348.94 MAR 9$ 1 30562.06 370140.50 APR 1 11$ 137353.631 376932.07 MAY1 13$ 44145.19 383723.63 JUN 1 15% 1 50936-781 390515.22 sAG;: Ax Ha orI :ovex 6s •'°"'`''`` :'•><:REFER:30?FiIE:PJAa!fAENT:SdiE�U[EItBpYE_ IF YOU HAVE QUESTIONS PLEASE CALL (806) 762-6000. TAXES BECOME DELINQUENT ON FEBRUARY 1. AFTER JUNE AN ADDITIONAL PENALTY OF 16% MAY BE IMPOSED ON THE AMOUNT OF TAXES, PENALTY AND INTEREST DUE. AFTER JULY AN ADDITIONAL 1% PENALTY AND INTEREST WILL BE APPLIED. OCT 12 '99 1488 FR SBC TAX October 12, 1999 Mr. Wayne Boring Director Economic Development Market Lubbock, Inc. 1301 Broadway, Suite 200 Lubbock, Texas 79401 Dear Mr. Boling: 210 351 3960 TO 88967494501 P.02/02 Mkhdte A. Thomas SBC Comanmimtions Inc C=PC=1751r.80u1mn smaa4-06 Stora & Local bw=zdm and Lt b1nion Ban Antonia, Texas 78203 210-3S1 3420 0ffi= 2W351-390 Fax Pursuant to our recent discussions regarding Southwestern BeA's (SWB) desires to expand its operations in West Texas, specifically in Lubbock, the purpose of this letter is to request economic incentives from Market Lubbock, Ina to assist in financing this proposed project. Southwestern Belt Is proposing to open a Customer Care Center in Lubbock that will employ more than 800 permanent employees over the next three years. We have identified a facility located at 2301 N. University in Lubbock, which meets the space and infrastructure requirements Of our proposed project We are currently in the process of negotiating lease terms with the property owner. SWB expects to invest more than $8 Million in building and Infrastructure improvements, furniturelfoctures and expenses at that location. SWB's expansion In Lubbock will provide positive impact by stimulating local businesses, increasing real and property tax values and increasing annual eamings, and therefore spending, In Lubbock In consideration of the above-mentioned facts and in accordance with the Market Lubbock policy. Southwestern Bell is requesting a financial grant of $1.2 million equal to $10,000 for each of the120 full-time positions that will be created at that location with an annual salary of $28,000 or above. In addition, SWB will request that the Lubbock Office of Business Development submit a recommendation to the State for Enterprise Zone Project status for this property located within the North Enterprise Zone. This enterprise zone project will allow SWB to qualify for other economic Incentives such as, property tax incentives, sates tax mflmds and development fee rebates. Southwestern Bell is committed to Lubbock and these tax incentives are essential to our continued investment and increased employment In Lubbock, Texas. Thank you for your time and consideration in this matter. I look forward to yourwritten response reflecting Market Lubbock's offer for assistance. Please do not hesitate to call me with any questions at (210) 351-3920. Sincerely, Michelle A. Thomas Corporate Manager— State & Local Incentives and Legislation CC: Kevin G. Walker, Office of Business Development