HomeMy WebLinkAboutResolution - 4867 - Notice Of Intent - Economy Mill Ltd - Tax Abatement Agreement, 211 15Th St - 06/08/1995Resolution No. 4867
June 8, 1995
Item #28
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Tax Abatement Agreement with Economy Mills, LTD.; 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 Economy Mills, LTD., 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 BLOCK 189, LOTS 1- L TOWN.
Passed by the City Council this
ATTEST:
etty A Johnson, City Secretary
APPROVED AS TO CONTENT:
Joel Beesin r, InterimAirector of
Business Development
APPROVED AS TO FORM:
Eknfald G. Vandiver, First Assistant
City Attorney
DGV:vI
ccdocs/Econmyses
May 30, 1995
Resolution No. 4867
June 8, 1995
Item 428
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 BLOCK 189, LOTS 1-10, ORIGINAL TOWN
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 Economy Mills, LTD. 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 Economy
Mills, LTD. 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 5 , 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 Economy Mills, Ltd. (hereinafter called "Company"), -
WITNESSETH:
WHEREAS, City did receive from Company on the 19th day of May, 1995, an
application for tax abatement for the construction of a new modernized manufacturing
facility to be located at 211 15th Street, which is further described as Original Town
Lubbock, Block 189, Lots 1-10, Lubbock, County, Texas; and
WHEREAS, upon review of the above application it was determined that the
facility 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 Original Town
Lubbock, Block 189, Lots 1-10, of Lubbock County; and
WHEREAS, V.A.T.C., Tax Code, Sec. 312.2011 provides that designation as an
enterprise zone constitutes designation as a reinvestment zone without further action; and
WHEREAS, the application received by City from Company is an application for
the 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
Resolution No. 4288 does recognize construction of new modernized facilities as being
eligible for tax abatement status; and
WHEREAS, Section IV (9)(d) provides for variance of the Guidelines and Criteria
Governing Tax Abatement by the affirmative vote of three-fourths of the governing body
of an affected jurisdiction; and
WHEREAS, the application does not meet the specific standards of Section IV
(9)(c)(2) in that the replacement and modernization will not cause 25% increase in the
existing workforce; 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 otherwise been met by Company; and
WHEREAS, the City Council finds that variance of the requirements of Section IV
(9)(c)(2) and entering into this agreement to abate taxes on the property described in
Exhibit "A" will contribute to the retention of existing jobs within the affected jurisdiction,
and enhance economic development within the designated Enterprise Zone;
AGREEMENT - ECONOMY MILLS, LTD. PAGE 2
WHEREAS, variance of the requirement that the replacement and modernization
will cause a 25% increase in the existing workforce is hereby granted;
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 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 Original Town
Lubobck, Block 189, Lots 1-10, of Lubbock County, which proposed
AGREEMENT -- ECONOMY MILLS, LTD. PAGE 3
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".
(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 necessary to qualify for tax abatement by constructing a new
modernized facility and purchasing new equipment, and further that the Company will
retain existing jobs. The requirement to increase employment by 25% is waived pursuant
to Section IV (9)(d).
SECTION 8. Value of Improvements. Company intends to expend approximately
one hundred fifty thousand ($150,000) dollars in building related structural improvements
and four hundred fifty-two thousand and fifty ($452,050) in new equipment to be located
within the enterprise zone created by Ordinance No. 9591.
SECTION 9. Job Retention. Company agrees within twelve (12) months from the
date of execution of this Agreement that it will retain ten (10) full-time equivalent jobs
within the Company plant to be located within Original Town Lubbock, Block 189, Lots 1
- 10, Lubbock County and use its best efforts to maintain a minimum of ten (10) 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
AGREEMENT - ECONOMY MILLS, LTD. PAGE 4
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.
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 modernized manufacturing facility as described in Exhibit "A". The Company further
states that the proposed improvements to the property above mentioned shall commence
on the 1 st day of July, 1995, and shall be completed within approximately six (6) months
from said date. The Company may request an extension of the above date from City in the
event circumstances beyond the control of Company necessitates additional time for com-
pletion of such improvements and such consent shall not unreasonably be withheld.
SECTION 14. Drawings of Improvements. Company shall furnish City with one
set of as built plans and drawings of the improvements to be made pursuant to the terms of
this Agreement.
SECTION 15. Limitation on Use. Company agrees to limit the use of the prop-
erty set forth in Exhibit "A" to commercial 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.
AGREEMENT - ECONOMY MILLS, LTD. PAGE 5
SECTION 17. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK
City Manager
P.O. Box 2000
Lubbock, Texas 79457
ECONOMY MILLS, LTD.
Claude Tatum, II
P. O. Box 1737
Lubbock, Texas 79408
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
ECONOMY MILLS, LTD.
A Texas Corporation
General Partner
ATTEST:
Secretary
JB/mada:Economy Mills, Ltd.
June 8, 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 — ECONOMY MILLS, LTD. PAGE 6
L- 111 1 L i 1
�-! � ECONOTHV MILLS
4 Serving West Texas S Eastern New Mexico for over 60 Years
P O BOX 177 15TH 8 AVENUE B
;� nC LUBBOCK. TEXAS 79408
Awa ��EOi SM765.5547
SECTION III - FACILITY DESCRIPTION
GENERAL DISCRIMON OF D&MOVEl41X2M
FOR
ECONOMY MILLS, LTD.
15th & Ave B
Lubbock, Teras
(a) A new feed manus RmMty wkh a prodretioe
capacity of over 100 tons of bagged and brit teed per 0 boor
shift Located directly east of a 7500 square Ret WardKme
and office building at 211 15th street, Original Town Lubbock -
Block 189 - Lots 1-6.
(b) A 3400 square feet steel building will bouse a 12,000
bushelbatching system, sweet teed system, pellet mill, roller
mill, full circle grinder, grain cleaning, flaking, and roiling
equipment, .
The facility will replace and modernize the 70 yet oW
plant that was destroyed by a Are April 10, 1995.
[4,CON031V MILLS
Serving West Texas S Eastern New Mexico for over 60 Years
P O BOX 1737 1STk & AVENUE B
�+��j[p� �+► LUBBOCK, TEXAS 794
�IIL11 FEL`O� 808178S-SS47 08
SEC III (c)
EmpROVEhalM TO REAL PROPERTY
BLOCK 189 LOTS 1-10 LUBBOCK
TOTAL ABATEMENT REQUESTED
FOR REAL PROPERTY IMPROVEMENTS S 148.300.00
1) 4 HOPPER BOTTOM STORAGE BINS
2) 1 ELEVATOR 70' D.H. WITH 8-WDISTRIBUTOR
3) 2 PRODUCT CONVEYORS
4) 32 INGREDIENT & WORKING BINS
12,000 ba. cap.
5) 1 GRAIN CLFANKR-300BPH
6) 1 MIXING SCALES-2TON CAP.
7) 1 2 -TON RIBBON NIIXER
8) 1 ROLLED GRAIN ELEVATOR
9) 2 FINISHED FEED ELEVATORS
10) 1 BOILER 125 H.P.
TOTAL NEW EQUIPMENT
CONSIDERED FOR TAX ABATEM MT
48,000.00
29,750.00
16,000.40
240,000.00
8,300.00
10,000.00
20,300.00
20,300."
41,000.00
1$�44�4
$ 452.@50.00
GRAND TOTAL OF MIPROVENMNTS FEED MILL S 600350.00
VALUE
1) METAL BUILDING
$1159000.00
(3400 Sq. FC) & Ekctria!
2) CONCRETE DRIVEWAYS
24,000.00
& BASES FOR BINS
3) TRUCK RECEIVING PIT
9,300.00
TOTAL ABATEMENT REQUESTED
FOR REAL PROPERTY IMPROVEMENTS S 148.300.00
1) 4 HOPPER BOTTOM STORAGE BINS
2) 1 ELEVATOR 70' D.H. WITH 8-WDISTRIBUTOR
3) 2 PRODUCT CONVEYORS
4) 32 INGREDIENT & WORKING BINS
12,000 ba. cap.
5) 1 GRAIN CLFANKR-300BPH
6) 1 MIXING SCALES-2TON CAP.
7) 1 2 -TON RIBBON NIIXER
8) 1 ROLLED GRAIN ELEVATOR
9) 2 FINISHED FEED ELEVATORS
10) 1 BOILER 125 H.P.
TOTAL NEW EQUIPMENT
CONSIDERED FOR TAX ABATEM MT
48,000.00
29,750.00
16,000.40
240,000.00
8,300.00
10,000.00
20,300.00
20,300."
41,000.00
1$�44�4
$ 452.@50.00
GRAND TOTAL OF MIPROVENMNTS FEED MILL S 600350.00
r -AH 1611 A'
CCONOl'ViY MILLS
Serving West Texas S Eastern New Mexico for over 60 Years
f�
P O BOX 1737 15TH 8 AVENUE B
77)
[` LUBBOCK, TEXAS 79408
Rrr
f lis 8MM -SUI
SECTION III - FACILITY D19CRIPTION (CONT.)
(d) Site Map - Enclosed
(e) None
(f) Construction to begin July 1,1995 with
completion by January 1, 19%.
(g) Proposed Improvements are to replace,
modernize, and expand the old Fxonomy Mills
Located at 1413 Ave. R
(h) Additional value 1a RW Property WmW be ht
excess of S100,NA:00.
(1) Assessed value of Real Property and New Facility
would exceed 5500,000.00.
(j) The Are of April 10, 1995 destroyed the central
portion of the Feed Mill at 1413 Ave. B
completely shutting down feed production. A
New M" Facility would:
1) more than double the. production
apacty of the old mW
(2) retain all present employees,
(3) be a boost to Lubbock and the South
Plains area by competing had to
head with out of state and out of area
feed milb,
(4) reduce feed cost to area 0nrmers and
ranchers,
(5) add additional income to the
community,
(6) and create new jobs in the Mum
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a
:BOCK CENTRAL APPRAISAL DISTRICT
1715 26th STREET
P O BOX 10542
LUBBOCK. TEXAS 79408-3542
(806) 762-5000 EXT, 500
PROPERTY OWNER
IMPORTANT
PLEASE REVIEW ALL DATA ON THIS
NOTICE BECAUSE OF POSSIBLE IMPACT
ON YOUR PROPERTY TAXES.
LOCATION ADDRESS: L 8 1501
ECONOMY 11LLS LTD
PO BOX 1737
LUB13OCK TX 79408-1737
THIS IS NOT A TAX BILL.
PRINT DATE C5/1 7/94
AVE B
KEY r
OC33C572
PROPERTY DESCRIPTION.
ORiG T LUBBOCK BLK 189 L 1-10
ZONE0038
PLEASE
PARCEL*
ZONE
00-00139-00010-0
DO NOT
0038
PAY
1
LASTYEAR
FROM THS
1993
" PROPOSED TH!S YEAR
1994
-4NID-MAF KET VALUE
-AND-PRODUCTIVITY VALUE
16.-250
LAND -MARKET VALUE
LAND -PRODUCTIVITY VALUE
16.- 2 5,61
MPROVEMENTS-- MARKET
-1ERSONAL PROPERTY VALUE
IMPROVEMENTS - MARKET
PERSONAL PROPERTY VALUE
$2.-745
'.MINERAL INTEREST VALUE
MINERAL INTEREST VALUE
-OTAL MARKET VALUE
16.-250
TOTAL MARKET VALUE
98.,995
TAXES LEVIED
ESTIMATED
TAXES
AFTER
33 oft Igp
_UBO�CK CITY
FXE'.I;'-
Q4 2g
lif
TAXES
HUB
HUB
pg 9y
980099
6633
1.175f
AXES
33449q
198:93
,C MO19 Di TT
16��5
17.06
980099
.1>BZ1
10 :11
QfSOCK COUNTY
16,25
3$7.43
98,99
.1658
o01I — - 00j, P -- �
TM IS NOT A TAX STATEMENT
ESTIMATED PROPERTY TAXES
a pvbio baatrIBS for
lllbals_,�
IM yEAR19 NBTN 1T® TAX -ft Tiwa amol>rda m SIR *M 7" would pay on Offs Y••r'�F
valtr M hs �oMMlftlets bodice e0nabd in Wn s�ltMlllj - - - - -_ 7°9 3
'Tire Texas Legislature does not ser d1e amount of your local was Your property tax Auden is in r Im d
by your locally elected ofthils. and all +e canes concerning your taxes should be d acted to diose officials.'
PLEASE IF YOU ARE &Qg 65 OR OLDER and you received the $10,000 SCHOOL tax exemption on your Home, your SC 1OOL
READ taxes for this year will not be higher than when you received the exemption, unless you have improved your property
(by adding rooms, other buildings, pool. etc.)
If you feel any item of information on this form is incorrect, or if you disagree with oft year's proposed
value for your property. contact the appraisal office orxnediatety. If the problem Cannot be resolved, you
have a right to appeal to the Appraisal Review Board (ARB). In order to appeal, you must file a WRITTEN
protest with the ARB on or before 06/16/94 You can get a protest form from the appraisal
district office at 1715 26th Street Lubbock, Texas.
The ARB wi unpin heminpa on 0 6 / 17 / 94 You will be nolilled of the data, time and place your hearitq is arhediriad.
In each taxing unit tWed. the governing body decides whether property taxes increase. The appraisal district determines only the value of
property. tf you object to increasing taxes or govemment spending. you should contact the taxing unn s goveming body. You should contar.
the appraisal office and ARB only about your pr000sea oroperty value or exemptions
THIS IS NOT A TAX BILL - PLEASE DO NOT PAY FORM THIS NOTICE
PLEASE
DO NOT
PAY
(
FROM THS
NOTICE
IM yEAR19 NBTN 1T® TAX -ft Tiwa amol>rda m SIR *M 7" would pay on Offs Y••r'�F
valtr M hs �oMMlftlets bodice e0nabd in Wn s�ltMlllj - - - - -_ 7°9 3
'Tire Texas Legislature does not ser d1e amount of your local was Your property tax Auden is in r Im d
by your locally elected ofthils. and all +e canes concerning your taxes should be d acted to diose officials.'
PLEASE IF YOU ARE &Qg 65 OR OLDER and you received the $10,000 SCHOOL tax exemption on your Home, your SC 1OOL
READ taxes for this year will not be higher than when you received the exemption, unless you have improved your property
(by adding rooms, other buildings, pool. etc.)
If you feel any item of information on this form is incorrect, or if you disagree with oft year's proposed
value for your property. contact the appraisal office orxnediatety. If the problem Cannot be resolved, you
have a right to appeal to the Appraisal Review Board (ARB). In order to appeal, you must file a WRITTEN
protest with the ARB on or before 06/16/94 You can get a protest form from the appraisal
district office at 1715 26th Street Lubbock, Texas.
The ARB wi unpin heminpa on 0 6 / 17 / 94 You will be nolilled of the data, time and place your hearitq is arhediriad.
In each taxing unit tWed. the governing body decides whether property taxes increase. The appraisal district determines only the value of
property. tf you object to increasing taxes or govemment spending. you should contact the taxing unn s goveming body. You should contar.
the appraisal office and ARB only about your pr000sea oroperty value or exemptions
THIS IS NOT A TAX BILL - PLEASE DO NOT PAY FORM THIS NOTICE