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HomeMy WebLinkAboutResolution - 4797 - Commericial Tax Abatement - Red River Commodities Inc - 212 NE Loop 289 - 04/13/1995Resolution No. 4797 April 13, 1995 Item 416 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 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 Red River Commodities, Inc., 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 13th day of April 1995. ATTEST: &tt'- a C'V�� �2 etty A fofinson-,-City Secretary TO CONTENT: Development APPROVED AS TO FORM: DGV :dp\G:\ccdocs\TAXABTRR.Res February 2, 1995 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § Resolution No. 4797 April 13, 1995 Item #16 This Agreement made this 13th day of April 1995, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Red River Commodities, Inc. (hereinafter called "Company"); WITNESSETH: WHEREAS, City did receive from Company on the 20th day of December, 1994, an application for tax abatement for improvements to an existing building, creating a new, value-added production facility located at 212 Northeast Loop 289, which is further described as North Loop Industrial Park, Block A, Lot 2, Lubbock County, Texas; and 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 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 North Loop Industrial Park, Block A, Lot 2, 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 improvements to an existing building; 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 improvements to an existing building 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 and WHEREAS, Company does intend to make improvements to an existing building; 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 — RED RIVER COMMODITIES, 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. Term. This Agreement shall remain in force and effect for a period of five (5) 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 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 North Loop Industrial Park, Block A, Lot 2, Lubbock County, which is set forth in a plat of the above tract of land, attached hereto as Exhibit "A" and made a part hereof. AGREEMENT - RED RIVER COMMODITIES, INC. 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 Qualification. 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 500 hundred thousand dollars in building related structural improvements and equipment 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 twelve (12) full-time equivalent new jobs within the Company plant to be located within North Loop Industrial Park, Block A, Lot 2, Lubbock County, and use its best efforts to maintain a minimum of twelve (12) new jobs during the term of this Agreement. SECTION 10. City Access to PropertX. 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 - RED RIVER COMMOD=S, INC. PAGE 4 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 five (5) years after such date. SECTION 13. Type of Improvements. The Company proposes to renovate an existing building and other improvements as described in Exhibit "A". The Company fur- ther states that the proposed improvements to the property above-mentioned shall com- mence on the 1 st day of February, 1995, and shall be completed within approximately five (5) 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 addi- tional time for completion 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 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 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 — RED RIVER COMMODITIES, INC. PAGE 5 CITY OF LUBBOCK RED RIVER COMMODITIES, INC. City Manager Box 3022 P.O. Box 2000 Fargo, North Dakota 58108 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 13 th day of April , 199 5 RED RIVER COMMODITIES, A Texas Corporation President ATTEST: ATTEST: Secretary Betty Yolinson, City Secretary AP D 7ONTENT: Rod Eflig, Director of Business Development APPROVED AS TO FORM: ier,tto s, Jr.,mey Ms"alarriver.doc January 30, 1995 AGREEMENT — RED RIVER COMMODITIES, INC. PAGE 6 EXHIBIT "A" (a) Red River Commodities, Inc. (RRC) is a leading processor of confection sunflowers in the United States, with processing plants in Fargo, ND and Colby, KS. Production of confection sunflowers in Texas has increased to the point where a production facility in Lubbock is feasible. The completed facility (formerly Big Crop Seed) will have the ability to clean, size and bag raw confection sunflowers. The facility will mean a new business to the City of Lubbock. This is a 'value added' business that will create new jobs to the surrounding area. (b) The improvements for which tax abatement is requested consists of various pieces of grain handling and processing equipment for the cleaning and sizing of confection sunflower. (c) The improvements will be installed in and around the existing buildings and structures at the named location. In particular, the improvements will consist of the following: Bulk handling conveyors and elevators (28) Air Screen Machine (1) Precision Sizing Machines (2) Indent Separators (2) Gravity Separators (2) Stoners (3) Friction Separators (5) Packaging Equipment (various pieces) Structural Additions and Electrical (d) Please see the attached site map of the named location. (e) A significant amount of the current equipment at the facility will be removed, as it is not usable for processing confection sunflower. The remaining property will consist mainly of the buildings and grain storage tanks. (f) RRC proposes to undertake the improvements as soon as possible, so that the project is completed prior to June 1, 1995. (g) The proposed improvements are in connection with a genAral expansion of the current facility by the structural additions of the listed machinery and equipment. (h) The proposed improvements are estimated to cost $450,000 when completed. (i) The assessed value of the Existing Facility for the Base Year should reflect the purchase value of $300,000. EXHIBIT "A" (j) New jobs will be created as follows: -One 'site manager' position One 'assistant manager - procurement' position -One 'office assistant' position -Nine 'production staff' positions, including mill operators, quality control, receiving, maintenance and warehousemen -Additional seasonal production staff as required Total annual personal costs are anticipated to be $350,000. QLi GO `J4 lc c3 kLD RIVER COMM COLBY EXHIBIT "A" PLAT OF BUILDING 48.3' 61 ul - - - -1 CARPORT' EQ Q I)FEIC�EXTEA BUI LDING. I OR(SrPAGEFOR 9,834 SP T DETAIL) 28.8 49 . .70 BUILDING 2 5,397 SF BUILDING 3 14,074 SF TRUCK 200.2' WELL SCALE: 50' zm IV: LM P.6/6 N CARDS IN ACCOUNT EXHIBIT "A" APPRAISAL YEAR 02 OF 02 PARCEL 8611760-00001-00020-000 KEY 352781 .12/31/94 1'394 LOCATION LB 212 NE LOOP 289 PRIOR YEAR VALUES CURRENT YEAR VALUES UNDIVIDED INTEREST % qr7r:CTaW_-,,! TAX DISTRICTS KT. LAND 109054 AREA ZONE CNTY SCHL CITYOTHER PCA MKT. LAND 109054 `APROVE. 252084 IMPROVE. 252W84 ATURES OWNER: RTC FOR FEATURES TOTAL 361138 CAPROCK FEDERAL S & L ASSN TOTAL 361138 BEVERCHON PLAZA 15TH FL ;. LAND 3500 MAPLE AVE AG. LAND 1PROVE. DALLAS TX 75219-3901 IMPROVE. -ATURES % OWN: 100 FEATURES TOTAL LEGAL: NORTH LOOP IND PK BLK A L 2 TOTAL .EW CONST. NEW CONST. YY BAS N30 E50 N70 4158 ase W50 W50 350 S50 E75 E75 w TAINT. DATES LAND IMP. VALUE INIDj DATE I VOL.IPAGE I INST. STRUCTURE PLOT N *---- 50 ---- *----- 50 ---- *---- 50 ---- *---- 50---- IBAS I 0 I I j 0 I I I I S I 0 *----50---- 3 I 0 ------- 75 ------- *------- 75 ------- X- S YR. BLT. I EFF. YR. AREA I % BASE I UNIT PR. I ADJ. U/P UMTS I % GOOD 821 821 BAS 1001 9.251 1 18500 9' ASE SD. FT. 18500 '.LNG AREA 18500 ')TAL SO. FT, 18500 PR. I ADJ. UIP I UMTS OTES: E1 VALUE CARDS IN ACCOUNT EXHIBIT "A" APP ISAi R 01 OF 02 PARCEL 8611760-00001-00020-000 KEY 352781 •12/31/94 1994 LOCATION LB 212 NE LOOP' 289 PRIM YEAR VALUES CURRENT Y ES UNDIVIDED INTEREST % TAX DISTRICTS FP IKT. LAND 109054 AREA -CZTra ZONE CNTV SCHL CITYOTHER PCA MKT. LAND 109054 `APROV E. 252084 IMPROVE. EATURES OWNER: RTC FOR FEATURES TOTAL 361138 CAPIROCK FEDERAL S & L ASSN TOTA 361138 REVERCHON PLAZA 15TH FL <� G, LAND 3500 MAPILE AVE AG. LAND .'PROVE. DALLAS TX 75219-3901 IMPROVE. ATURES % OWN: 100 FEATURES TOTAL LEGAL: NORTH LOOP IND PIK $LK A L 2 TOTAL EW CONST. NEW CONST. ACRES: PERMITS MAP N wuhim I MM f YY ITYPE COMMENT CMP. VALUE NA) DATE I VOLJPAGE SALES INST. VA 0/0 PRICE • STRUCTURE PLOT CTAS N68 W75 W75 A05 W30 S65 E90 N -90 . . IRAS5---------75-------- ---------7J-------- I I W 6 I I E 5 6 1 0 I *---------- 90 ----------- *---------- I i 90 ---------- X— i j 1AINT. DATES LAND S IMP. FEAT IMPROVEMENT• TYPE STC YR. BLT. EFF. YR. AREA %BASE UNIT PR. ADJ. UIP UNITS %GOOD OC. COND. VALUE 641 641 BAS 100 22.00 10950 40 96360 ASE SO. FT. 10950 VING AREA 10950 JTAL SO. FT. 10950 TYPE YR. BLT. EFF. YR. FEATURES UNIT PR. ADJ. UIP UMTS %6000 COND.1 VALUE TANKS SHOWN ON PERSONAL PROP,. JH