HomeMy WebLinkAboutResolution - 4865 - Notice Of Intent- Belt-Wide Industires Inc- Tax Abatement Agreement, 1002 E 50Th - 06/08/1995Resolution No. 4865
June 8, 1995
Item #27
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Tax Abatement Agreement with Belt -Wide Industries, Inc.; and
WHEREAS, V.T.C.A., Tax Code, Section 312.2041 requires notice of the intent of City
Council to be given to the presiding officer of the governing body of each taxing unit in which
the property to be subject to the Tax Abatement Agreement is located; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of City
Council to enter into a Tax Abatement Agreement with Belt -Wide Industries, Inc., said notice to
be given to the presiding officers of each governing body of each taxing unit having jurisdiction
in assessing taxes on property located in City of Lubbock, Lubbock County, Texas and further
described as LOT 16 AND WEST 135.7' LOT 15, JAMES SUBDIVISION.
Passed by the City Council this
VID R. LAQXjSTON, NMYOR
ATTEST:
Betty A Johnso , City Secretary
APPROVED AS TO CONTENT:
Joel Beesing6r, Inten Director of
Business Development
APPROVED AS TO FORM:
` otfald G. Vandiver,
City Attorney
DGV: Vl\ccdocs/Beltwd.res
May 30, 1995
5.
Resolution No. 4865
June 8, 1995
Item #27
NOTICE OF INTENT OF THE CITY COUNCIL
OF THE CITY OF LUBBOCK TO ENTER INTO
AN AGREEMENT TO ABATE TAXES ON REAL PROPERTY
IMPROVEMENTS AND TANGIBLE PROPERTY
LOCATED IN LOT 16 AND WEST 135.7' LOT 15, JAMES SUBDIVISION
CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS
Notice is hereby given that the City Council of the City of Lubbock intends to
enter into an agreement with Belt -Wide Industries, Inc. to abate taxes on improvements to
property and tangible property located within an enterprise zone created by Ordinance
No. 9591 and covering all of the subject property.
Notice is further given that the City Council of the City of Lubbock will consider
authorizing the Mayor of the City to execute a contract between the City and Belt -Wide
Industries, Inc. for tax abatement, a copy of said Agreement is attached to this Notice as
Exhibit "A" and made a part hereof for all purposes.
Notice is further given that the City Council will consider this matter at its
meeting held in the City Council Chambers, City Hall, 1625 13th Street, City of
Lubbock, on the 8th day of June , 199 , at 10 o'clock a m.
EXHIBIT "A"
AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this day of , 1995, by and
between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and Belt -Wide Industries, Inc. (hereinafter called "Company");
WITNESSETH:
WHEREAS, City did receive from Company on the 15th day of May, 1995, an
application for tax abatement for the construction of a new manufacturing facility to be
located at 1002 E. 50th Street, which is further described as Lot 16 and West 135.7' Lot
15, James Subdivision, City of Lubbock, Lubbock County, Texas; and
WHEREAS, upon review of the above application it was determined that the
facility 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 Lot 16 and
West 135.7' Lot 15 James Subdivision, City of Lubbock, 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 construction of a new 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 construction of new facilities as being eligible for tax
abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and 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 construct a new manufacturing facility; 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;
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:
AGREEMENT — BELT -WIDE INDUSTRIES, INC. PAGE 2
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 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 Lot 16 and
West 135.7' Lot 15 James Subdivision, City of Lubbock, Lubbock County,
which proposed improvements are set forth in a plat of the above tract of
land, attached hereto as Exhibit "A" and made a part hereof.
(b) All eligible tangible personal property placed in or upon the property set
forth in Exhibit "A".
AGREEMENT - BELT -WIDE INDUSTRIES, INC. PAGE 3
(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 construct a new 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(9xc) 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
two hundred thousand ($200,000) 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 forty-five (45) full-time
equivalent new jobs within the Company plant to be located within Lot 16 and West
135.7' Lot 15 James Subdivision, City of Lubbock, Lubbock County and use its best
efforts to maintain a minimum of ninety-five (95) jobs during the term of this Agreement.
SECTION 10. City 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.
SECTION 11. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate 100 percent of taxes on eligible property.
AGREEMENT -- BELT -WIDE INDUSTRIES, INC. PAGE 4
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 construct a
new manufacturing facility as described in Exhibit "A". The Company further states that
the proposed improvements to the property above mentioned shall commence on the 8th
day of August, 1995, and shall be completed within approximately three (3) 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 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 — BELT -WIDE INDUSTRIES, INC. PAGE 5
CITY OF LUBBOCK BELT -WIDE INDUSTRIES, INC.
City Manager Billy Hall
P.O. Box 2000 1116 E. 50th Street
Lubbock, Texas 79457 Lubbock, Texas 79404
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 day of
BELT -WIDE INDUSTRIES, INC
A Texas Corporation
President
ATTEST:
Secretary
JB/mwJa:Beltwid.doe
June ,1995
199_
CITY OF LUBBOCK
A Municipal Corporation
DAVID R. LANGSTON,
MAYOR
ATTEST:
Betty Johnson,
City Secretary
APPROVED AS TO CONTENT:
Joel Beesinger
Interim Director of Business Development
APPROVED AS TO FORM:
Don Vandivere
Assistant City Attorney
AGREEMENT -- BELT -WIDE INDUSTRIES, INC. PAGE 6
EXHIBIT "A"
SECTION III
New metal building --55' x 205' x 20' sidewalls = $155,000.00
Dirt work and black top
_ $ 46,500.00
Estimated electrical to re -locate Belt-Wide's
equipment to Lubbock from Brownfield = $ 25,000.00
Construction will begin by August 8, 1995 and
be completed by November 1, 1995.
This is a new facility that is being built by Billy and
Sandra Hall who are the owners of Belt -Wide Industries, Inc.
to move their shop from Brownfield to Lubbock. Billy and
Sandra completed an expansion at 1116 E. 50th Street in
February 1995 that enabled Belt -Wide to relocate one
fabricating shop to Lubbock in March 1995.
We feel the building and yard work should bring a total
additional value to property of $200,000.00.
By moving the welding and structural shop from Brownfield to
Lubbock will bring a total of 45 to 50 new jobs to Lubbock.
EXHIBIT "A"
8OUN0Aq ANO IMPROVEMENT SURVEY OF LOT 7W. WEST 137.7
OF LOT 15meING SOUTH Of THG EAST 50th STPbvfT RIGHT-OF-WAY
JAMES SUBDIVISION
INT}IE CITY OF LU8WCK LUBBOCKCOUNTY TEXAS ACCORDING TO
TME MAP PLAT MID/OftbERATION DEED TaEREOF RECORDED IN
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