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HomeMy WebLinkAboutResolution - 4884 - Agreement - Belt-Wide Industries Inc - Industial Tax Abatement, 1002 E 50Th St - 07/13/1995Resolution No. 4884 July 13, 1995 Item 417 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 Belt -Wide Industries, Inc., for industrial tax abatement, which Agreement is attached hereto and 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 th day o�\, July , 1995. :►���� ill/V••a ATTEST: &V�- a CC Betty A Johnson, tity Secretary APPROVED AS TO CONTENT: BeesingerlInterim Oirector of APPROVED AS TO FORM: DoYald G. Vandiver, City Attorney DGV:da ccdocs/a-belt.res June 6, 1995 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § Resolution No. 4884 July 13, 1995 Item #17 This Agreement made this 13th day of July , 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 MU, 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. RecWhI e. 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 13th day of July BELT -WIDE INDUSTRIES, INC. A Texas Corporation ,a a — Presi ent ATTEST: Secretary JB/macta.Beltwid.doc June ,1995 1995 ATTEST: etty Jo son, City Secretary PROVED -AS TO CONTENT: _,,,"/Joel Beesmget Interim Director of usiness Development APPROVED AS FORM: i" DbwV P andive 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. KiMMLL & ELMS iLL;I-BO6-744-2355 Mar 29.95 10:44 No .002 P.02 FXHIBIT "A" BOUNOArf ANO IMPROVEMENT SURVEY OF LUT I 71! WEST 135.7 OF LOT 1 %&ING SOUTH of TNG FAST Wth STf*m4r RIGHT -OF -WY JAMES SUBDIVISION W THE CITY OF LUBBOCK LUBBOCK COUNTY TEXAS ACCORDING TO THE MAP PLAT AND/OR bBCATION DEED TAREOF RECORDED W VOWMEM, PAOE 110, DE .DFMMSOF WBBOCK COUNTY, TEXAS -- - - - EAST - - 50th - STRErr - - iw~r Aowal p �/ Y�Q.IIII M.Rl q.0 -M pnx.ON pe.l11 7� Ne7/ 32 ! YaL.l�1, AR N/ J — zes.�x — ..---- of �qni RlY7/r-/f•N71/t/Ir Pr -"-• w.r• w.r a Q � N I 1 � 1 � I _ LOT 16 kI WEST 135.7 iTi 15 I T9,419 90UAAE FEET I w tt Lv I mul SUREYED APO COMFI A COWMT MARCH 1 IM REii MCN 10, q!S NRSERI wrWwlX*M MTA7/ffiPNA%M. N7w ram wrwm NOTim e HEXVY�9-KTy2'MI01 MDI/ITMCAP C "M WSAAWAYS AS 10" No F t JGO E� -•--- +3v Arent o �s 4Ea. WN004. TEMAO L 01 - ,So nth 5TRC-ET EXHIBIT "A" 7 LoT 15 NORTH 1 a NORTH