HomeMy WebLinkAboutResolution - 5043 - Agreement - United Supermarkets Inc #503 - Commercial Tax Abatement - 12/07/1995Resolution No. 5043
December 7, 1995
Item #12
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 United Supermarkets, Inc. #503, for commercial 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
ATTEST:
& 3 aT -, & C J-�'� —
Betty 94. Johnson,kity Secretary
APPROVED AS TO CONTENT:
Beesinger, lAterinybirector of
ness Development
APPROVED AS TO FORM:
D&fald G. Vandiver, First Assistant
City Attorney
DGV:da
ccdocsla-united.res
June 5, 1995
STATE OF TEXAS
COUNTY OF LUBBOCK
AGREEMENT
M
This Agreement made this 7th day of December
Resolution No. 5043
December 7, 1995
Item #12
1995,
by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and United Supermarkets, Inc. (hereinafter called "Company");
WITNESSETH:
WHEREAS, City did receive from Company on the 11th day of May, 1995, an
application for tax abatement for construction of Company's facilities located within Judy
Jane Addition Block 1, Lots 1 & 2 and Roberts -McWhorter Addition Block 50 Less W5' of
S250' further described by Metes and Bounds as follows:
Beginning at a point in the East right-of-way line of University Avenue, same being the West
line of Tract A, United Supermarket Addition which bears North a distance of 225.0 feet
from the most Westerly Southwest point of Lot 3, Judy Jane Addition to the City of
Lubbock, Lubbock County, Texas;
THENCE North a distance of 258.0 feet;
THENCE N. 02 °51'45" W. a distance of 86.36 feet to a point of curative;
THENCE Northeasterly around a curve to the right, said curve having a radius of 15.00 feet,
a central angle of 92°51'45", tangent lengths of 15,77 feet and a chord distance of 21.74 feet
to a point;
THENCE East a distance of 558.03 feet;
THENCE South a distance of 276.33 feet;
THENCE West a distance of 282.70 feet;
THENCE South a distance of 36.33 feet;
THENCE West a distance of 286.00 feet to the point of Beginning, to the City of Lubbock;
and
WHEREAS, upon review of the above application, it was determined that facilities
would be located in the North Enterprise Zone designated by City in its Ordinance No. 9591;
and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commercial
Projects in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by
Resolution No. 4974 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 312.2011; and
WHEREAS, the City did comply with all of the criteria and guidelines for creation of
an enterprise zone as set forth in Chapter 2303, Subchapter C of the Texas Enterprise Zone
Act, Texas Government Code, having adopted Ordinance No. 9591 of the City on February
18, 1993, which ordinance includes Judy Jane Addition Block 1, Lots 1 & 2 and Roberts -
McWhorter Addition Block 50 Less W5' of 5250' further described by Metes and Bounds
as follows: Beginning at a point in the East right-of-way line of University Avenue, same
being the West line of Tract A, United Supermarket Addition which bears North a distance
of 225.0 feet from the most Westerly Southwest point of Lot 3, Judy Jane Addition to the
City of Lubbock, Lubbock County, Texas;
THENCE North a distance of 258.0 feet;
THENCE N. 02 °51'45" W. a distance of 86.36 feet to a point of curative;
THENCE Northeasterly around a curve to the right, said curve having a radius of 15.00 feet,
a central angle of 92°51'45", tangent lengths of 15.77 feet and a chord distance of 21.74 feet
to a point;
UNITED SUPERMARKETS, INC. 2
THENCE East a distance of 558.03 feet;
THENCE South a distance of 276.33 feet;
THENCE West a distance of 282.70 feet;
THENCE South a distance of 36.33 feet;
THENCE West a distance of 286.00 feet to the point of Beginning, to the City of Lubbock;
and
WHEREAS, the application received by City from Company is an application for the
construction of a new Company facility; and
WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones adopted by the City Council by Reso-
lution No. 4974 does recognize construction of new facilities as being eligible for commer-
cial tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and Criteria
established for Commercial Tax Abatement within the Enterprise Zones of the City of
Lubbock, as adopted by Resolution No. 4974, have been met by Company; and
WHEREAS, Company does intend to construct its new facility; and
WHEREAS, the location of the constructed facility and surrounding real property,
which are to be the subject matter of the 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 designated Enterprise Zone,
UNITED SUPERMARKETS, INC. 3
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 ten (10) 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 the 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(6) of the Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones, and heretofore adopted by the City
Council by Resolution No. 4974, and incorporated by reference herein as if fully set out in
this Agreement is 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 upon Judy Jane Addition Block 1,
Lots 1 & 2 and Roberts -McWhorter Addition Block 50 Less W5' of 5250'
further described by Metes and Bounds as follows: Beginning at a point in
UNITED SUPERMARKETS, INC. 4
the East right-of-way line of University Avenue, same being the West line
of Tract A, United Supermarket Addition which bears North a distance
of 225.0 feet from the most Westerly Southwest point of Lot 3, Judy
Jane Addition to the City of Lubbock, Lubbock County, Texas,
THENCE North a distance of 258.0 feet;
THENCE N. 02 °51'45" W. a distance of 86.36 feet to a point of curative;
THENCE Northeasterly around a curve to the right, said curve having a
radius of 15.00 feet, a central angle of 92°51'45", tangent lengths of 15.77
feet and a chord distance of 21.74 feet to a point;
THENCE East a distance of 558.03 feet;
THENCE South a distance of 276.33 feet;
THENCE West a distance of 282.70 feet;
THENCE South a distance of 36.3 3 feet;
THENCE West a distance of 286.00 feet to the point of Beginning, to the
City of Lubbock, 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".
(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 sub -par -
graph (a) above set forth.
UNITED SUPERMARKETS, INC. 5
SECTION 7. Economic Qualification. It is hereby found by the City that Company
will expend funds necessary to qualify for tax abatement by constructing a new facility, and
further that the Company will create new jobs in excess of the number required for tax
abatement, all as set forth in Section IV(10)(f) of the Guidelines and Criteria Governing Tax
Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock
adopted by the City through Resolution No. 4974.
SECTION 8. Value of Improvements. Company intends to expend approximately
three million nine hundred thousand dollars ($3,900,000) 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 one hundred three (103) new
jobs within the Company facility located within Judy Jane Addition Block 1, Lots 1 & 2 and
Roberts -McWhorter Addition Block 50 Less W5' of 5250' further described byMetes and
Bounds as follows: Beginning at a point in the East right-of-way line of University Avenue,
same being the West line of Tract A, United Supermarket Addition which bears North a
distance of 225.0 feet from the most Westerly Southwest point of Lot 3, Judy Jane Addition
to the City of Lubbock, Lubbock County, Texas;
THENCE North a distance of 258.0 feet;
THENCE N. 02 °51'45" W. a distance of 86.36 feet to a point of curative;
THENCE Northeasterly around a curve to the right, said curve having a radius of 15.00 feet,
a central angle of 92151'45", tangent lengths of 15.77 feet and a chord distance of 21.74 feet
to a point;
THENCE East a distance of 558,03 feet;
THENCE South a distance of 276.33 feet;
THENCE West a distance of 282.70 feet;
THENCE South a distance of 36.33 feet;
UNITED SUPERMARKETS, INC. 6
THENCE West a distance of 286.00 feet to the point of Beginning, to the City of Lubbock,
and use its best efforts to maintain a minimum of one hundred three (103) new jobs during
the term of this Agreement.
SECTION 10. Ci 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 conditions of
Company's application for commercial tax abatement and this Agreement.
SECTION 11. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate one hundred (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 ten (10) years after
such date.
SECTION 13. Type of Improvements. The Company proposes to construct a new
grocery store facility as described in Exhibit "A". The Company further states that the
proposed improvements to the property above mentioned shall commence on the 12th day of
May, 1995, and shall be completed within approximately 120 days 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 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 property
set forth in Exhibit "A" to commercial uses as those terms are defined in the zoning
ordinances of the City of Lubbock, and to limit the uses of the property to uses consistent
with the general purpose of encouraging development of the designated Enterprise Zone
during the term of this Agreement.
UNITED SUPERMARKETS, INC. 7
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 Company as
set forth in Exhibit "B", attached hereto and made a part hereof for all purposes.
SECTION 17. Certification, The Company agrees to certify annually to the
governing body of each taxing unit that the owner is in compliance with the terms of the
Agreement.
SECTION 18. Compliance. The City may cancel or modify this Agreement if the
Company fails to comply with the Agreement.
SECTION 19. Notices. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK
Manager
P.O. Box 2000
Lubbock, TX 79457
UNITED SUPERMARKETS, INC. 8
UNITED SUPERMARKETS, INC.
Kent Moore
7830 Orlando Avenue
Lubbock, TX 79423
SECTION 24 Effective Date. Notwithstanding anything contained herein to the contrary,
this Agreement shall not be effective until such time as it shall be finally passed and
approved.
EXECUTED this -7th -day of
UNITED SUPERMARKETS, INC.
A Texas C porafion
Vice- resident
M
(4d9
Secretary
UNITED SUPERMARKETS, INC. 9
ATTEST:
Betty Nf Johnson,
City Secretary
APPROVED AS TO CONTENT:
'Joel Beesinger
Interim Director of Business Development
APPROVED AST FORM:
i
Dbif G. Vandiv r
First Assistant City Attorney
EXHIBIT "A"
April 17, 1995 UNITED SUPERMARKETS, INC.
Mr. Dan Wattles, Manager
Enterprise Zone Program
Business Finance Division
Texas Department of Commerce
P 0 Box 12728
Austin, Texas 78711
Dear Mr. Wattles:
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, 9.34; and Ethel Ann Bumstead, 9.3a.
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 parttime employees.
The store for which we are requesting Enterprise Project
designation (United #503) is a new store that will be located at N.
University and Auburn in Lubbock, Texas. The new store will
replace our existing facility located at 1.06 N. University which
currently employs 44 full-time and 15 part-time employees with a
current market of North Central 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,
P.O. Box 6840 • 806!191-0220 a Lubbock, Texas 79493-6840
(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
rt1 will be approximately $6,100,000. The breakdown will be $3,900,000
etitc� for building improvements and the remaining $2,200,000 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. Three (3) warranty deeds are attached as Exhibit A.
We will begin ordering the needed equipment, machinery, and
fixtures in August, 1995. These items should begin arriving
between August, 1995 and December, 1995. The following is a list
of the equipment, machinery and fixtures to be purchased:
Bakery, deli, market equipment $ 550,000
Refrigeration cases, shelving, display
cases and other equipment 1,350.000
Computers, phones, office equipment
and decor 300.00Q
$2,200,000
Operations of the new facility will commence in December, 1995 or
January, 1996.
United Supermarkets, Inc. does not require any special permits and
licenses in order to operate.
We currently employ 59 persons in our existing Lubbock facility
4r1�) with a current annual payroll of $782,170. A list of the current
employees is included as Exhibit B.
It is estimated that within five years there will be an additional
103 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
$2,103,070. Initial hiring for the new jobs as a result of this
proposed expansion will begin in December 1995. 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
(256) 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 (256) 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 follow 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.
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
CALCULATION OF CURRENT APPRAISED VALUE
LOT 1 AND LOT 2 JUDY JANE ADDITION
Total Area per Property Record Card 92,960
Area Not Used for United Store _6.767
Area Used for United Store 86,193
% of Total Area Used for United 92.72%
Total Assessed Value for Lots 1 & 2 $95,686
Assessed Value of United Portion $88,720
BLOCK 50 ROBERTS MCWHORTER ADDITION
Total Area per Property Card 180,360
Area Not Used for United Store 82.605
Area Used for United Store 97,755
% of Total Area Used for United 54.20%
Total Assessed Value for Block 50 $56,544
Assessed Value of United Portion $30,647
Total Value of Property Used for United $119,367
"ES
CARDS IN ACCOUNT
APPRAISAL YEAR
00
PARCEL 8476300--00001-00802-000 KEY
236578
05/09i95
1994
LOCATION L8 116 N UNIVERSITY AVE
PRIOR YEAR VALUES
UNDIVIDED INTEREST
DISTRICTS
CURRENT YEAR VALUES
,T. LAND 139440
AREA ZONE CNTY SCNL CITY OTHER PCA MKT. LAND
92960
-ROVE.
-
IMPROVE.
xTURES 2726
OWNER UNITED SUPERMARKET
FEATURES
2726
TOTAL 142166
7830 ORLANDO AVE
TOTAL
95686
LUBBOCK TX 79423-1942
LAND
AG.LAND
ROVE.
IMPROVE.
TURES
°r° CuvN. 100
FEATURES
TOTAL
LEGAL: JUDY JANE DLK 1 L 1 & 2
TOTAL
-V CONST.
NEW CONST.
1 65476CR
ACRES, MAP x
NUMESER mm, YY TYPE
PERMITS
COMMENT 96 CNP. VALUE NrD DATE VOL. PAGE
SALES
INST.
V f O D
PRICE
• • •
STRUCTUREPLOT
=. NT. DATES
_IND 931203 JW/NA
?dP
-AT,
IMPROVEMENT•
TYPE
STC YR. BLT. EFF. YR. AREA
°4 BASE
UNIT PR.
ADJ. UJP
UNITS
°ro GOOD
LOC.
COND.
VALUE
9E SO FT.
NG AREA
'AL SO, FT.
TYPE YR. BLT. EfF. YR.
FEATURES
UNIT PR.
ADJ. UrP
UNITS
°5 GOOD
LOC.
COND.
VALUE
)P001 60 60
.70
2726
"ES
CARDS IN ACCOUNT
00 PARCEL R750100-00050-00000-000
05/09/95
LOCATION LB 2415 AUBURN ST
PRIOR YEAR VALUES uNolvioEa INTEREST °!o
c TAX DISTRICTS
KT. LAND 54108 AREA ZONE= CNTY SCHL TY CIOTHER
IPROVE, Ila AA I "I LB I
ATURES 2436 OWNER. UNITED SUPIERMARKE-TS INC
TOTAL 56544 PO BOX 6840
LAND LUBBOCK TX 79493--x,840
� 7
'ROVE.
A TURES % OWN. 100
TOTAL LEGAL: ROBERTS—MCWHORTER BLK .5.10 LESS
W510F 5259'
'N CONST.
ACRES-. MAP a
PERMITS
NUMBER MM+YY I TYPE I COMMENT I %CNP. VALUE N,D DATE
X99999 02/92 1 DEMO D
399999 02/92 DEMO D
,iNT. DATES
AND
VP
-SAT
TYPE
STC YR. BLT. EFF. YR,
SE SQ. FT.
KEY 477479
;NG AREA
TAL SQ. FT.
TYPE
YR. BLT. EFF. YR.
TEST,
"TYPE
SIZE I UNIT PRICE
VOL.:PAGE I INST.
,IHUI, 1UHL FLU
IMPROVEMENT VALUATION
UNIT PR
ADJ. UIP
ADJ. PRICE
UNITS % GOOD
I�%l:i�EJ
�•1Jd�l�J�
541.08
PRICE
VALUE
VALUE
1596
AG. VALUE
APPRAISAL YEAR
KEY 477479
1994
CURRENT YEAR VALUES
STC rP
PCA
MKT. LAND
54108
2101
IMPROVE.
FEATURES
2436
TOTAL
56544
AG.LAND
IMPROVE.
FEATURES
TOTAL
NEW CONST.
VOL.:PAGE I INST.
,IHUI, 1UHL FLU
IMPROVEMENT VALUATION
UNIT PR
ADJ. UIP
ADJ. PRICE
UNITS % GOOD
I�%l:i�EJ
�•1Jd�l�J�
541.08
PRICE
VALUE
VALUE
1596
AG. VALUE
05/10/95 11:53 V806 763 3891 HUGO REED & ASSO »» GRACO R. E. DEV. Q001/W1
NORTH TRACT
-- AffaMM
H UGO REED AND ASSOCIATES, INC.
1210 Avenue Q f LubbOCk. Tones 79401 1 IM767-3O42 /FAX 0 0061753.3091
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LAND SURVEYORS
Tnmmir E MnCeriOn. R P L S P1614ent CIVIL se.+lera.l GFadeE.Jr.PE.RPLS L ENGINEERS
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Steven N Goiemen. P E
Gregory S Me:. , P E.
METES AND BOLWDS DESCRIPTION of a proposed United Supermarket tract located in the North portion of Tract A,
United Supermarket Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows:
BEGINlv1NiNG at a point in the East right-of-way line of Univenity Avenue, same being the West line of Tract A. United
Supermarket Addition which bears North a distance of 225.0 feet from the most Westcrly Southwest point of Lot 3, Judy
Jane Addition to the City of Lubbock, Lubbock County, Texas;
THENCE North a distance of 258.00 feet;
THENCE N. 02°51'45" W. a distance of 86 36 feet to a point of curvature;
THENCE Northeasterly around a curve to the right, said curve having a radius of 13.00 feet, a central angle of 92°51'45",
tangent lengths of 15.77 feet and a chord distance of 21.74 feet to a point,
THENCE East a distance of 558.03 feet,
THENCE South a distance of 276.33 feet,
THENCE West a distance of 282,70 feet;
THENCE South a distance of 36.33 feet;
THENCE West a distance of 286,00 feet to the Point of Beginning.
DOES NOT REPRESENT AN ACTUAL SURVEY, FOR CONTRACT PURPOSES ONLY.
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EXHIBIT •Be
SECTION VII. Recapture:
In the event that any type of facility, (as defined in Sec-
tion I, Subparagraphs 5, 6, 7, 8, 10, 11, 12, 13, 17, 18) is
completed and begins producing goods or services, but subse-
quently discontinues producing goods or services for any
reason, excepting fire, explosion or other casualty or acci-
dent or natural disaster or other event beyond the reason-
able control of applicant or owner for a period of 180 days
during the term of a tax abatement agreement, then in such
event the Tax Abatement Agreement shall terminate and all
abatement of taxes shall likewise terminate. Taxes abated
during the calendar year in which termination takes place
shall be payable to each Affected Jurisdiction by no later
than January 31st of the following year. Taxes abated in
years prior to the year of termination shall be payable to
each Affected Jurisdiction within sixty (60) days of the
date of termination. The burden shall be upon the applicant
or owner to prove to the satisfaction of the Affected Juris-
diction to whom the application for tax abatement was
directed that the discontinuance of producing goods or ser-
vices was as a result of fire, explosion, or other casualty
or accident or natural disaster or other even beyond the
control of applicant or owner. In the event the applicant
or owner meets this burden, and the Affected Jurisdiction is
satisfied that the discontinuance of the production of goods
or services was the result of events beyond the control of
the applicant or owner, then such applicant or owner shall
have a period of one year in which to resume the production
of goods and services. In the event that the applicant or
owner fails to resume the production of goods or services
within one year, then the Tax Abatement Agreement shall ter-
minate and the Abatement of all taxes shall likewise termi-
nate. Taxes abated during the calendar year in which termi-
nation takes place shall be payable to each Affected Juris-
diction by no later than January 31st of the following year.
Taxes abated in years prior to the year of termination shall
be payable to each Affected Jurisdiction within sixty (60)
days of the date of termination. The one year time period,
hereinabove mentioned, shall commence upon written notifica-
tion from the Affected Jurisdiction to the applicant or
owner.
2. In the event that the applicant or owner has entered into a
tax abatement agreement to make improvements to a facility
of any type described in Section 1 above, but fails to
undertake or complete such improvements, then in such event
the Affected Jurisdiction to whom the application for tax
abatement was directed shall give the applicant or owner
sixty (60) days notice of such failure. The applicant or
owner shall demonstrate to the satisfaction of the Affected
Jurisdiction, above mentioned, that the applicant or owner
has commenced to cure such failure within the sixty (60)
days above mentioned. In the event that the applicant or
owner fails to demonstrate that he is taking affirmative
action to cure his failure, then in such event the Tax
Abatement. Agreement shall terminate and all abatement of
taxes shall likewise terminate. Taxes abated during the
calendar year in which termination takes place shall be
payable to each Affected Jurisdiction by no later than Jan-
uary 31st of the following year. Taxes abated in years
prior to the year of termination shall be payable to each
Affected Jurisdiction within sixty (60) days of the date of
termination.
3. In the event that the Affected Jurisdiction to whom applica-
tion for tax abatement was directed determines that the
applicant or owner is in default of any of the terms or con-
ditions contained in the Tax Abatement Agreement, then in
such event the Affected Jurisdiction shall give the appli-
cant or owner sixty (60) days written notice to cure such
default. In the event such default is not cured to the sat-
isfaction of the Affected Jurisdiction within the sixty (60)
days notice period, then the Tax Abatement Agreement shall
terminate and all abatement of taxes shall likewise termi-
nate. Taxes abated during the calendar year in which termi-
nation takes place shall be payable to each Affected Juris-
diction by no later than January 31st of the following year.
Taxes abated in years prior to the year of termination shall
be payable to each Affected Jurisdiction within sixty (60)
days of the date of termination.
4. In the event that the applicant or owner allows ad valorem
taxes on property ineligible for tax abatement owed to any
Affected Jurisdiction, to become delinquent and fails to
timely and properly follow the legal procedures for their
protest or contest, then in such event the Tax Abatement
Agreement shall terminate and all abatement of taxes shall
likewise terminate. Taxes abated during the calendar year
in which termination, under this subparagraph, takes place
shall be payable to each Affected Jurisdiction by no later
than January 31st of the following year. Taxes abated in
years prior to the year of termination shall be payable to
each Affected Jurisdiction within sixty (60) days of the
date of termination.
Guidelines " Criteria Governing Tax Abatement for
Ccarnercial Projects in Desigroated Enterpriser Zones
Exhibit .Qr
PAGE 2
In the event that the applicant or owner, who has executed
tax abatement agreement with any Affected Jurisdiction,
relocates the business, for which tax abatement has been
granted, to a location outside of the designated reinvest-
ment zone, thea in such event, the Tax Abatement Agreement
shall terminate after sixty (60) days written notice by the
Affected Jurisdiction to the Owner/Applicant. Taxes abated
during the calendar year in which termination, under this
subparagraph takes place shall be payable to each Affected
Jurisdiction by no later than January 31st of the following
year. Taxes abated in years prior to the year of termina-
tion shall be payable to each Affected Jurisdiction within
sixty (60) days of the date of termination.
6. The date of termination as that term is used in this Subsec-
tion VIII shall, in every instance, be the 60th day after
the day the Affected Jurisdiction sends notice of default,
in the mail to the address shown in the Tax Abatement Agree-
ment to the Applicant or Owner. Should the default be cured
by the Owner or Applicant within the sixty (60) day notice
period, the Owner/Applicant shall be responsible for so
advising the Affected Jurisdiction and obtaining a release
from the notice of default from the Affected Jurisdiction,
failing in which, the abatement remains terminated and the
abated taxes must be paid.
T. In every case of termination set forth in Subparagraphs 1,
2, 3, 4 and 5 above, the Affected Jurisdiction to which the
application for tax abatement was directed shall determine
whether default has occurred by Owner (Applicant) in the
terms and conditions of the Tax Abatement Agreement and
shall so notify all other Affected Jurisdictions. Termina-
tion of the Tax Abatement Agreement by the Affected Juris-
diction to which the application for tax abatement was
directed shall constitute simultaneous termination of all
Tax Abatement Agreements of all other Affected Jurisdic-
tions.
8. In the event that a tax abatement agreement is terminated
for any reason whatsoever, and taxes are not paid within the
time period herein specified, then in such event, the provi-
sions of V.T.C.A., Tax Code, Section 33.01 will apply.
Guidelines end Cr Iter IS Governing Tu Abe tam& t for
Cc merciel Projects in Desl "ted Enterprise zones
Exhibit •9■
PAGE 3