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Home My WebLink AboutResolution - 5060 - Tax Abatement Agreement-United Supermarkets Inc-Judy Jane Addition & RM Addtion - 12/14/1995Resolution No. 5060 December 14, 1995 Item #25 WWWO1101 OK 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 approval of an assignment to North University Associates, L.C. of that certain tax abatement agreement dated December 7, 1995, attached herewith, by and between the City of Lubbock and United Supermarkets, Inc., and any associated documents, which Agreement 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 14th day of D�c_eraber, 1995. DAVID R. LANGSTOM MAY ATTEST: &t.- , ISQ� Betty Jo on, City Secretary APPROVED AS TO CONTENT: Joel Beesinger, InterimPirector of Business Development APPROVED AS TO FORM: G. Vandiver, First Assistant City Attorney DGV:dalccdocsla-graco.res December 5, 1995 ATTEST: �i Betty Nf Johnson, C y Secretary g: vllcityattla-united. doc December 15, 1995 THE STATE OF TEXAS § ASSIGNMENT COUNTY OF LUBBOCK § Resolution No. 5060 December 14, 1995 Item #25 KNOW ALL MEN BY THESE PRESENTS THAT UNITED SUPERMARKETS, INC., a Texas Corporation ("Assignor"), has this day and does by these presents transfer and assign to NORTH UNIVERSITY ASSOCIATES, L.C., a Texas Corporation, that certain tax abatement Agreement dated December 7, 1995, between the CITY OF LUBBOCK, TEXAS, and UNITED SUPERMARKETS, INC., a copy of which is attached hereto and is incorporated herein by reference. NORTH UNIVERSITY ASSOCIATES, L.C. hereby assumes all of the obligations of the Assignor under the said Agreement. This Assignment shall be effective upon approval by the City Council of the City of Lubbock, Texas, and the execution by the Mayor thereof. DATED this the 14th day of December, 1995. UNITED SUPERMARKETS, INC. BY: KENT MOORE, VICE-PRESIDENT ATTEST: Secretary NORTH UNIVERSITY ASSOCIATES, L.C. RANDY ANDREW MEMBER ATTEST: e retary AGREEMENT STATE OF TEXAS COUNTY OF LUBBOCK 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 WV 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; 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 N 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) AU 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 36.33 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 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; 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 (l 03) new 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 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 lb. 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 20 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 -7 th -day of UNITED SUPERMARKETS, INC. A Texas C or on _)1 /'Z y� i Vice res dent UNITED SUPERMARKETS, INC. 9 ATTEST: Betty Nf Johnson, City Secretary APPROVED AS TO CONTENT: Joel Beesinger Interims Director of Business Development APPROVED ASF RM: L& D G. Vandiv r First Assistant City Attorney VOID THE STATE OF TEXAS § ASSIGNMENT COUNTY OF LUBBOCK § Resolution No. 5060 December 14, 1995 Item if 25 KNOW ALL MEN BY THESE PRESENTS THAT UNITED SUPERMARKETS, INC., a Texas Corporation ("Assignor"), has this day and does by these presents transfer and assign to GRACO REAL ESTATE DEVELOPMENT, INC., a Texas Corporation, that certain tax abatement Agreement dated December 7, 1995, between the CITY OF LUBBOCK, TEXAS, and UNITED SUPERMARKETS, INC., a copy of which is attached hereto and is incorporated herein by reference. GRACO REAL ESTATE DEVELOPMENT, INC. hereby assumes all of the obligations of the Assignor under the said Agreement. This Assignment shall be effective upon approval by the City Council of the City of Lubbock, Texas, and the execution by the Mayor thereof. DATED this the 14th— day of December, 1995. ATTEST: Secretary ATTEST: Secretary UNITED SUPERMARKETS, INC. IC KENT MOORE, VICE-PRESIDENT GRACO REAL ESTATE DEVELOPMENT, INC. RANDY ANDREWS, PRESIDENT ATTEST: Betty M. Johnson, City Secretary cityattla-un ited.doc December 5, 1995 APPROVFD: CITY OF LUBBOCK, TEXAS M. 2 DAVID R. LANGSTON, MAYOR