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HomeMy WebLinkAboutResolution - 4824 - Qualified Business Certification-United Supermarkets Inc #501-Enterprise Project - 04/27/1995Resolution No. 4824 April 27, 1995 Item #36 RESOLUTION WHEREAS, the Texas Department of Commerce ("Commerce") designated the Lubbock North Enterprise Zone (the "Zone") on June 7, 1993 and amended said zone on February 11, 1994; and WHEREAS the City Council for the City of Lubbock, Texas desires to pursue the creation of the proper and social environment in order to induce the investment of private resources in productive business enterprises located in enterprise zones and to provide employment to residents of the enterprise zones and to other economically disadvantaged individuals; and WHEREAS, the Texas Department of Commerce will only consider an enterprise project application from UNITED SUPERMARKETS, INC., #501 pursuant to a nomination and an application made by the City of Lubbock, provided UNITED SUPERMARKETS, INC., #501 is located in a designated enterprise zone within its jurisdiction; and WHEREAS, pursuant to the Texas Enterprise Zone Act (Chapter 2303 of the Government Code), UNITED SUPERMARKETS, INC., #501 has applied to the City of Lubbock for designation as an enterprise project; and WHEREAS, the City of Lubbock fords that UNITED SUPERMARKETS, INC., #501 meets the criteria for designation as an enterprise project under Section 2303.403 of the Government Code (Section 3 of Acts 1993, 73rd Leg.,Ch. 974). 1. UNITED SUPERMARKETS, INC., #501 is a qualified business under Section 2303.401 of the Government Code (Section 2 of Acts 1993, 73rd Leg.Ch. 974) since it will be engaged in the active conduct of a trade or business in the enterprise zone and at least twenty-five percent (25%) of the business employees will be residents of the Lubbock Enterprise Zone or economically disadvantaged individuals. A Qualified Business Certification to comply with this provision by the Applicant is attached hereto as Exhibit A and made a part hereof for all purposes. 2. UNITED SUPERMARKETS, INC., #501 is located in an enterprise zone which has an unemployment rate of one and one-half ( 1'/2) times the state 82q unemployment rate and is an economically distressed area because it has a zone poverty rate of at least twenty percent (20%). 3. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the enterprise zone; and 4. The designation of UNTIED SUPERMARKETS, INC., 4501 as an enterprise project will contribute significantly to the achievement of the plans of the City of Lubbock for the development and revitalization of the enterprise zone. WHEREAS, the City of Lubbock finds that UNITED SUPERMARKETS, INC., #501 meets the criteria for tax relief and other incentives adopted by the City of Lubbock and nominates UNITED SUPERMARKETS, INC., #501 on the grounds that it will be located wholly within the enterprise zone, and will create a higher level of employment, economic activity and stability; and WHEREAS, the City of Lubbock finds that it is in the best interest of the City of Lubbock to nominate UNITED SUPERMARKETS, INC., #501 as an enterprise project pursuant to the Act; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the findings of the City Council and its action approving this resolution taken at the Council meeting are hereby approved as adopted. BE IT FURTHER RESOLVED that UNITED SUPERMARKETS, INC., #501 is a "qualified business," as defined in Section 2303.401 of the Government Code (Section 2 of Acts 1993, 73rd Leg.,Ch. 974), and meets the criteria for designation as an enterprise project, as set forth in Section 2303.403 of the Government Code (Section 3 of Acts 1993, 73rd Leg.,Ch. 974) of the Texas Enterprise Zone Act. BE IT FURTHER RESOLVED that the enterprise project shall take effect on the date of approval and designation of the enterprise project by the Texas Department of Commerce and terminate five (5) years after that date of designation. PA Passed by the City Council this ATTEST: Autt'- w--�- i = Betty A Johnson ity Secretary APPROVED AS TO CONTENT: noel Beesinger, Int6rim Diree r of Business Development APPROVED AS TO FORM - Donald G. Vandiver, First Assistant City Attorney DGV: dplccdocsiuoited.Res April 13, 1995 3 Resolution No. 4824 April 27, 1995 Item #36 CITY OF LUBBOCK LUBBOCK. TEXAS LUBBOCK T! DAVID R. LANGSTON MAYOR Mr. Dan Wattles, Manager Enterprise Zone Program Texas Department of Commerce P.O. Box 12728 Austin, Texas 78711 April 27, 1995 Re: United Supermarkets, Inc. Enterprise Project Application Lubbock North Enterprise Zone Dear Mr. Wattles: To the best information and belief of the City of Lubbock, Texas, the information contained in this Enterprise Project Application is true and correct and the governing body's representative and designated liaison for the Lubbock Enterprise Zone has read the Texas Enterprise Zone Act and the Enterprise Zone Program Rules and are familiar with the provisions contained therein. Signed this 27th (Seal) day of April, 1995 Attest: Betty A J'ohnso , City Secretary Bob N. Cass, City Manager Enterprise Zone Liaison APR -18 95 10:54 FROM:UNITED SUPERMARKETS 806-791-7483 T0:606 767 2051 PAGE:06 APR. -14-95 FRI 10:00 GOV+T SERVICE AGENCY 214$421896 04/13/95 15:23 TExP'S DF_PARTrFINT OF COM1- RCE $02 "EXHIBIT A" y1brI 4% 1 1:0 1 Q1 V 1' • Pursuant to Section 2303.00(8) of the Texas Enterprise Zone Act (Texas Gover=eot Code) the undersigned business does hereby certify to the enterprioe .-4ne goy arntng body(e) of (plexi ji, en,ter narnr. Qf irgycrOw Wdy (kap' i CITYIQF LUBBOCK the Texas Department of Comtnerr.% and to the Comptroller of Public Accounts (Comptroller) for the State of Texas that ('please initial at teft,where applicable and entt one name): 1, it is enraged in cr has provided substantial eornmitment to initiate the (Initials) active conductaftrade orb sinsm in the _ LUDBOCK Enterprise Zone (tone); and Zk�- 2. at least twenty. -fire parcent (86%) of A4 now emploroes in the =one are Initials) residento of any zone in tha governing body's. or bodies' jurisdiction or economically disadvantaged individuals; or L� 3. the business will ,retain a bevel of employment horn Lha dste of sal®s tal (I itialri) thud rbr three fears, or may be @*act to romph rs ofrefund& by the Comptroller. ' The undersigned business ogre 6e to annually certify to the parties named herein no later than October I that tiie business is, and will remain in compliance %ith the above criteria, and that, if during any time period that compliance is not met, the business will be ineligible to' claim any benefits to which it may be entitl©d to as a qualified buoiness in the enteirpriss zone. This agreement Lnd certification is effective from the date of designation through the date of expiration a8 a qualified business. Sigi3ed tBIB 1'th day GIt —,19, C;-, Cor M P0aiijorlji4tlq.yPl Chief Fitnan�ial Officer Address of CompaAy" P o; Box 6840 City: Lubbock, Texasyip Cdde, 79493 Phone N=ber, 806 791 0220 1W1U4 Ports Err -o9 Buhiness pevelopment Divislun, Texas Dapartmeni of Commeree P. 04 APR -18 95 10:53 FROM:UNITED SUPERMARKETS 606-791-7983 TO:806 767 2051 ffn 1.7131 April 17, 1995 UNITED SUPERMARKETS, INC. Mr. Dan Wattles, Manager Enterprise Zone Program Business Finance Division Texas Department of Commerce P d Box 12728 Austin, Texas 78711 Dear Mr. Wattles: PAGE: 02 United Supermarkets, Inc. ("United") is a privately owned corporation incorporated in the state of Texas with headquarters at 7830 Orlando Avenue in Lubbock, Texas. The primary ownership of this corporation is as follows: Robert Snell - 39k; H.D. Snell Jr. Trust, 39.8%; Sara Jane Wood, 9.3k; and Ethel Ann Sumstead, 9.3%-. United has operated retail grocery stores since 1916, and currently operates thirty-nine stores in cities throughout West Texas, including Amarillo, Lubbock, Wichita Falls and Abilene. United Supermarkets, Inc. employs approximately 2,622 full. -time employees and 810 part-time employees. The store for which we are requesting Enterprise Project designation (United 4501) is a new store that will, be located at Parkway Drive and Zenith Avenue (southeast corner) in Lubbock, Texas. The new stare will replace our existing facility located at 3101 East 4th Street which currently employs 40 full-time and 13 part-time employees with a current market of East Lubbock and surrounding farm communities. our primary supplier for foods for this facility is Fleming Foods. Our short and long range goals for the new facility in Lubbock, Texas, are as follows: (1) to provide consumers with "one stop shopping" in a larger, modern, superstore type supermarket which provides customers with a wide selection of perishable and dry grocery products under one roof at competitively low prices, PO. Box 6840 + 806n91-0220 • Lubbock, Texas 79493.6840 APR -16 95 16:53 FROM:UNITED SUPERMARKETS 606-791-7463 T0:606 767 2051 PAGE:03 (2) to provide quality and service, by offering consumers only the highest quality products in a clean and attractive store environment, and by offering consumers a wide variety of perimeter service departments where a large selection of fresh products can be found, with special emphasis on merchandising to the needs of consumers in the Lubbock area, (3) to create a family environment for United shoppers through ongoing support and involvement in civic, charitable and community activities. when completed, the total investment in the new Lubbock facility will be approximately $4,040,000. The breakdown will be $2,280,000 for building improvements and the remaining $1,760,000 for machinery and equipment. Equipment and machinery will be purchased with funds from existing operating cash flow and/or United's short term operating line with Amarillo National Bank. The land and building improvements will be financed with traditional long term financing, we currently own the land on which the building will be located and have included a copy of the title insurance policy as Schedule A. Improvements of the property will begin in September, 1995 and will be completed in April, 1996. This construction will consist of construction of a 40,000 square foot building , site development, paved parking lot (approximately 3 acres) and lighting. The projected cost for these improvements will be $2,280,000. We will begin ordering the needed equipment, machinery, and fixtures in January, 1996. These items should begin arriving between January, 1996 and April, 1996. The total to be spent for equipment, machinery and fixtures will be approximately $1,760,000. The following is a list of the equipment, machinery and fixtures to be purchased: Bakery, deli, market equipment $ 475,000 Refrigeration cases, shelving, display cases and other equipment 1,060,000 Computers, phones, office equipment and decor 250.000 $1,760,000 operations of the new facility will commence in April or May, 1996. APR -18 95 10:53 FROM:UNITEO SUPERMARKETS 606-791-7483 TO:806 767 8051 PAGE:04 United Supermarkets, Inc. does not require any special permits and licenses in order to operate. We currently employ 53 persons in our existing Lubbock facility with a current annual payroll of $760,800. A list of the current employees is included as Exhibit B. It is estimated that within five years there will be an additional 70 employees at the replacement store. The list of the new jobs to be created with total annual salary is included as Exhibit C. The annual payroll at the new store should be approximately $1,606,400. Initial hiring for the new jobs as a result of this proposed replacement store will begin in April 1996. United Supermarkets, Inc. commits to participate in local efforts to achieve development and revitalization of the Lubbock, Texas Enterprise Zone. United Supermarkets, Inc. will hire under - skilled, inexperienced, disadvantaged, displaced workers, minorities, or residents of the enterprise zone. United Supermarkets, Inc. understands that to be a "qualified business" eligible for enterprise project designation, twenty-five percent (2St) of its new or additional employees must be residents of an enterprise zone within the city's jurisdiction or economically disadvantaged persons. United Supermarkets, Inc. hereby commits that twenty-five percent (25°s) of its new employees will be residents or an enterprise zone or economically disadvantaged persons. United Supermarkets, Inc. further understands that it must retain a level of employment for three years from the date of refund of state sales taxes, or United Supermarkets, Inc. may become liable for recapture of refunded taxes of the Comptroller. Rest assured United Supermarkets, Inc. understands the importance of a stable work force and will diligently fallow a path that keeps layoffs to a minimum. Along with our job creation commitment, United Supermarkets, Inc. also commits to hire minority workers and to contract with minority-owned and small businesses. United Supermarkets, Inc. is committed to participating heavily in community affairs. Our employees participated in the United Way through payroll deductions, as well as an annual corporate donation by the home office. In recent years, we have supported financially the Little Leagues, Ronald McDonald House, Fine Arts of Lubbock, Medical Health Research and many other needs. APR -1B 95 10:53 FROM:UNITEb SUPERMARKETS 806-791-7463 TO:806 767 2051 PAGE:05 The company is also willing to participate individually, in groups, or with other organizations which contribute time and manpower for the good of the community. United Supermarkets, Inc. is willing to negotiate and cooperate in the achievement of the purposes of the Texas Enterprise Zone Act. I also certify that the company's proposed Lubbock facility is located within the Lubbock Enterprise Zone and that separate books and reports of the business activity conducted in the zone or any other information as required by local and state government units will be made available for inspection and review as needed. United Supermarkets, Inc. appreciates the nomination and values the implications of the designation as an enterprise project in the city of Lubbock, Texas Enterprise Zone. We look forward to working with the city of Lubbock and the State of Texas in furthering the purposes of the Texas Enterprise Zone Program. Sincerely, United Supermarkets, Inc. L. Kent Moore vice President and Chief Financial Officer APR -18-95 TUE 12:05 GOV'T SERVICE AGENCY 2143421896 P.02 T-1 Owne Policy Schedules arm Prescribed by Texas Department of ,rance - Revised 1/1193 r, - SCHEDULE A NO.10017180 F N Owner Policy No.: 0-5841- 16771 Date of Policy: June 27, 1994 FIFTY-SIX THOUSAND EIGHT HUNbRED 6 00/100 - {$ ArnourM' �6 PbVf $ DOLLARS 1. Name of Insured: UNITED SUPERMARKETS, INC. 2. The estate or interest in the land that is covered by this policy is: FEE SIMPLE 3. Title to the estate or interest in the land is insured as vested in: UNITED SUPERMARKETS, INC. 4. The land referred to In this policy is described as follows: METES AND BOUNDS DESCRIPTION of a portion of Tract "A" and "`B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at a square head bolt found in the North line of a 20 foot alley, for the Southeast corner of this tract, which bears West a distance of 1910.2 feet and North, a distance of 1497.50 feet from they Southeast; corner of Section 2, Block A; THENCE west, along the North .line of a 20 foot alley also being the South line of Tracts "A" and "B", a distance of 593.90 feet to a point for the Southwest corner of this tract; THENCE North a distance of 32.00 feet to a 1/2" iron rod with cap set for a corner of this tract; THENCE North 56 degrees 39`12" East a distance of 158.18 feet to a 1/2" iron rod with cap set in the West line of Tract "B" for a corner of this tract; THENCE North 26 degrees 11'46" Fest, along said West line of Tract "B" a distance of 150.00 feet to a 1/2" iron rod with cap' set in the South right-of-way line of Parkway Drive, for the Northwest corner of this tract, also being the original Northwest corner of Tract "B"; THENCE North 56 degrees 28112" East along the South right-of-way line of Parkway Drive, also being the North line of Tract "13", a distance of 120.2 feet to a 1/2" iron rod with cap set for a point of curvature; Continued on next page STEWART TITLE APR -18-95 TUE 12;09 GOV'T SERVICE RGENCY 2143421896 P.03_ CF No. 1001718u - 0-5841-16771 Attached to and made a part of Stewart Title Guaranty Company Policy No. Continuation of Schedule A SCHECULE A, NO. 4 CONTINUED; THENCE Northeasterly, along said South right-of-way, a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 15 degrees 09'14", tangent lengths of 239.42 feet, and a chord distance of 474.66 feet to a 3/8" iron rod found at the Northeast corner of this tract; THENCE South a distance of 526,15 feet to the Point of Beginning. METES AND BOUNDS DESCRIPTION of a portion of Tract "B", Wilshire Park Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows. BEGINNING at 1/2" iron rod with cap set in the West right-of-way line of Beech Avenue for the Southeast corner of this tract, also being the original southeast corner of Tract "B", which bears west a distance of 1832.75 feet and North 1497.54 feet from the Southeast corner of Section 2, Block A; THENCE West, along the North line of a 20 foot alley a distance of 77.45 feet to a square head bolt found at the Southwest corner of this tract; THENCE north, a distance of 526.15 feet to a 3/8" iron rod found in the South right-of-way line of Parkway Drive, for the Northwest corner of this tract; THENCE Northeasterly around a curve to the right, said curve having a radius of 1799.9 feet, a central angle of 1 degree 56'41", tangent lengths of 30.55 feet, and a chord distance of 61.09 feet to a 3/8" iron rod found at a point of compound curvature; THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 90 degrees, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to a 3/8" iron rod found in the West right-of-way line of Beech Avenue, at a point of compound curvature; THENCE Southeasterly, along said West right-of-way line of Beech Avenue, around a curve to the right, said curve having a radius of 28.92 feet, a central angle of 15 degrees 02', tangent lengths of 3.56 feet, and a chord distance of 7.57 feet to a Continued on Next page Page STEWA.RT TITLE A.1 . t...Tr ,`.Yr 91. \ x APR -18-95 TUE 12:10 GOVT SERVICE AGENCY 2143421896 P.04 GF No.• 1001718u - 0-5841-•16771 Attached to and made apart of Stewart Title Guaranty Company Policy No. _ Continuation of Schedule A 3/8" iron rod found at a point of tangency; THENCE South, along said West right-of-way line, a distance of 526.83 feet to the Point of Beginning. A Page STEWART TITLE 203A -.1.... rry 0"-... - APR -18-95 TUE 12:10 GOVT SERVICE AGENCY 2143421896 P.05 T-1 Owner Policy Schedules arm Prescribed by Texas Department of ' irance - Revised 111193 CF No. 10017180 O'W'NER POLICY SCHEDULE EXCEPTIONS FROM COVERAGE Policy No.: 4-5841- 16 771 This policy does not insure against loss or damage (and the Company will not pay casts, attorney's fees or expenses) that arise by reason of the terms and conditions of the leases and easements, if any, shown in Schedule A, and the following matters: 1 speAW�U6,919-MAMWXi��t�+�'�ti1���i��tt��rXi1XXX 4 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. 3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. 4. Any titles or rights asserted by anyone, including but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or c. . to filled-in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e, to the area extending from the line of mean low tide to the line of vegetation, or the right of access to that area or easement aiong and across that area. 5. Standby fees, taxes and assessments by any taxing authority forthe year 19 ____2 end subsequent years, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership. 6. The following matters and all terms of the documents creating or offering evidence of the matters ( The Company must insert matters or delete this exception.): 7. Rights of parties in possession. S. one—half of all the oil, gas and other minerals, the royalties, bonuses, rentals and all other rights in connection with same are excepted herefrom as the same are set forth in instrufnent recorded in volume 453, Page 321, of the Deed Records of Lubbock County, Texas. Title to said interest not checked subsequent to its date of execution. 9. one-half of all the oil, gas and other minerals, the royalties, bonuses, rentals and all other rights in connection with same are excepted herefrom as the same are set forth in instrument recorded in volume 251, Page 575, of the Deed Records of Lubbock County, Texas. Title to said interest not checked subsequent to its date of execution. 10. Subject to the two year right and three year right of redemption Countersi ed: Continued on next page gy STEWA nT TITLE fr Authorized Countersignature GUARANTY COMPANY APR -18-95 TUE 12:11 GOV'T SERVICE AGENCY 2143421896 P.06 GF No. 1001,180 Attached to and made a part of Stewart Title Guaranty Company Policy No. 0-5841-16771 Continuation of Schedule B SCHEDULE H CONTINUED: under Texas law pertaining to tax sales, which shall expire August 21, 1995. (Pertains to all the property except the East 77.45' of Tract B) Page STEWART TITLE 203A GUARANTY COMPAVY APR -18-95 TUE 12:11 GOVT SERVICE AGENCY 2143421896 P.07 EMPLOYEES CURRENTLY EMPLOYED BY UNITED SUPERMARKETS STORE #501 Title/Position Number of Jobs Full-Time/Part- Time/Seasonal Annual Salary Management 6 Full -Time $33,800 Checkers 8 Full -Time $13,000 Checkers 3 Part -Time $3,750 Meat Market 6 Full -Time $19,500 Stockers 6 Full -Time $15,500 Stockers 1 Part -Time $2,500 Departmental Clerks 3 Full -Time $8,500 Sackers 8 Full -Time $7,500 Sackers 4 Part -Time $3,500 Pharmacist 1 Full -Time $52,000 Pharmacy Staff 2 Full -Time $15,000 Security 5 Part -Time $10,500 TOTAL $3 $764,550 EXHIBIT "B" APR -18-95 TUE 12:12 GOVT SERVICE AGENCY 2143421896 P.08 PROPOSED JOBS TO BE CREATED AT UNITED SUPERMARKETS, INC. STORE #50I Job 'Title/Position Number of Jobs Full-Time/Part- Time/Seasonal Annual Salary Management S Full -Time $19,200 Checkers 7 Full -Time $10,500 Checkers 4 Part -Time $3,750 Meat Market 3 Full -Time $17,000 Stockers 6 Full -Time $15,000 Deaprtmental Clerks 21 Full -Time $12,500 Departmental Clerks 4 Part -Time $4,000 Bakers 1 Full -Time $15,000 Sackers 3 Full -Time $7,500 Sackers 4 Part -Time $3,000 Pharmacist 1 Full -Time $52,000 Pharmacy Staff 3 Full -Time $15,000 TOTAL 70 $845 fi0(I EXHIBIT "C"