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HomeMy WebLinkAboutResolution - 5200 - Agreement - Grinnell Flow Control - Tax Abtement, 2401 NE Loop 289 - 06/24/1996RESOLUTION NO.5200 June 24, 1996 Item #18 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 Grinnell Flow Control, a Division of Grinnell Corporation, attached hereto and which 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. ,1 APPROVED AS TO FORM: i d G. Vandiver, First Assistant City Attorney DGV:js/GRWNELL.RES jccdocs/June 6, 1996 AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § RESOLUTION N0.5200 June 24, 1996 Item x{'18 This Agreement made this 24th day of June , 1996, by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas (hereinafter called "City") and Grinnell Flow Control, a Division of Grinnell Corporation, (hereinafter called "Company"); 1./I .Y."Mel WHEREAS, City did receive from Company on the Kith day of May, 1996, an application for tax abatement for the expansion of the existing manufacturing facility located at 2401 N.E. Loop 289, which is further described as Allen Industrial Park, Lot 1, City of Lubbock, Lubbock County Texas; and WHEREAS, upon review of the above application it was determined that the facilities 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 within the jurisdictions of the taxing units of Lubbock County was heretofore adopted by Resolution No. 4973 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. 4973 of the City on September 28, 1995, and WHEREAS, the City did thereafter pass Ordinance No. 9591 creating an enter- prise zone for commercial and industrial tax abatement, said zone including Allen Industrial Park, Lot 1, City of Lubbock, Lubbock County, Texas; 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 expansion of an existing facility; and WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a purpose is to be included in the guidelines for tax abatement and to be eligible for such treatment; and WHEREAS, Section IV of the Guidelines and Criteria for Tax Abatement within the jurisdictions of the taxing units of Lubbock County adopted by the City Council by Resolution No. 4973 does recognize expansion of existing 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. 4973, have been met by Company; and and WHEREAS, Company does intend to expand an existing manufacturing facility; 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; AGREEMENT -- Grinnell Flow Control PAGE 2 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, as defined in Section 11. of the Guidelines and Criteria Governing Taut Abatement For All Taxing Units Contained Within Lubbock County, which is the subject of this Agreement, shall be 1996, 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. Propgay 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. 4973 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 new improvements to be placed by Company upon Allen Industrial Park, Lot 1, City of Lubbock, Lubbock County, Texas; which AGREEMENT -- Grinnell Flow Control PAGE 3 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) AU eligible tangible personal property placed in or upon the property set forth in Exhibit "A". Ineligible property is outlined in Section IV(5) of the Guidelines and Criteria Governing Tax Abatement For All Taxing Units Contained Within Lubbock County. (c) It is further understood that AI items affixed to the new 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 subparagraph (a) above set forth. SECTION 7. Economic Qualification It is hereby found by the City that Com- pany will expend funds in excess of the funds necessary to qualify for tax abatement by expanding an existing facility, as defined in Section II of the Guidelines and Criteria Governing Tax Abatement For All Taxing Units Contained Within Lubbock County, 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(9)(b) of the Guidelines and Criteria for Tax Abatement adopted by the City through Resolution No. 4973. SECTION 8. Value of Improvements. Company intends to expend approximately one hundred fifty thousand ($150,000) dollars in building related structural improvements, as outlined in Exhibit "A", and one million seven hundred and eighty-three thousand ($1,783,000) in equipment 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 fifty (50) full-time equivalent new jobs within the Company plant located within Allen Industrial Park, Lot AGREEMENT -- Grinnell Flow Control PAGE 4 1, City of Lubbock, Lubbock County, Texas; and use its best efforts to maintain a minimum of two hundred thirty (230) 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 reasonably inspect the property to insure that the improvements are being made in accordance with the terms and conditions 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. Tyne of Improvements. The Company proposes to modernize and expand an existing manufacturing facility as described in Exhibit "A". The Company further states that the proposed improvements to the property above mentioned shall commence on the 13th day of May, 1996, 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 completion of such improvements and such consent shall not unreasonably be withheld. SECTION 14. prawings 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. Limilatiwl 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 - AGREEMENT -- Grinnell Flow Control PAGE 5 erty to uses consistent with the general purpose of encouraging development of the enter- prise zone during the term of this agreement. SECTION 16. Rte. 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 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. Notjces. 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 GRINNEL FLOW CONTROL James R. Coleman 2401 N.E. Loop 289 Lubbock, Texas 79403 AGREEMENT -- Grinnell Flow Control PAGE 6 SECTION 20, 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 24th GRINNELL FLOW CONTROL AD[ ' 'on of Grinnell Corporation wyl Vice residen of Manu acturing lYll1 1 WL\ ATTEST: ATTEST: etty Yolinson, lj'�L- ' W „c) e Y7 -F City Secretary APPROVE AS TO CONTENT: �+ Joel Beesinger Interim Director of B iness Development APPROVED AS TO FORM: an iver Assistant City Attorney JBICB:Grinnel.doc May 9, 1996 AGREEMENT -- Grinnell Flow Control PAGE 7 05%09/98 14:46 FAX GRIN ELL i»» CITY OF LUBBOCK 2001 EXHIBIT "A" APPLICATION FOR TAX ABATEMENT IN LUBBOCK COUNTY Section III -Fac city De=*tion (a) The mami hcturing facility in Milwaukee, Wisconsin will be closed and a large portion of equipmerrt and h vemoy will be moved to Lubbock, Texas. Production of the additional product will commence once building rearrangements and improvements have been made, equipment is placed in the Lubbock Plant and people hired to begin the incremental operations. (b) A listing of the irVrovemeats for which abatemeig is being requested is at= ed as schedule 1. (c) The improvements to real property, as shown on schedule 1, are as follows: Bufldmg rearrangensent for wiring, compressed air and Other faicility upgrades to accommodate additional equip- ment and moving of existing equipment. $100,000 Rearrangement of staff office facilities to make room for additiowl people and computer equipment_ $50,000 (d) See attached (e) See attached (f) The proposed start date for the improvements is May 13, 1996 and wM be completed by December 31, 1996. (g) The improvements to be undertaken are for the expansion of the irm, darttuing operations in order to be able to increase our production capacity and additional people needs. (h) The additional value of the additions to the real property are expected to be $150,000. (i) The assessed value of the real property for the base year(1995) is $121,483. 0) Expected new employment will consist of 50 people in direct production positions including support groups- 09/00/00 14:46 FAX CRINNELL CITY OF LUBBOCK 2003 Schedule 1 CNG equipment A04M computer Star equipment BuiWing rearrangement QMce reamarmement TaW Abatement Pt*queeted S 250,000 $ 33,000 $1,500,000 S 1010,000 5 50.000 $1,933,000 . Asn 41.: , r , � w .-.,..�s�r• sc-c+^�tia".-.. _.�: r•: r�.f}'n �^` ' 's`�at � � � 1 - r fi :KnJI���``'Ti=-�3SRc'Yv"w..:---'?pit=.w.+�."M"�_ _ '-`__ _— ___"- � .._ � .' Y, � y✓/�y,,.iE"�"I-r � ri _ �+ t- � `,� � • ••t , Ira 0r.! �''�l - ��• ��'�,�gr r. �.�h i �� __ — Via. �� ,r :PCX f'�. P� ►hrT+ \` `'� :,, ✓ • �, rye• t� � �1 r rA C �' its• �\ ' r�r _ Ck 144 'VIA c e 17 4 JULY AM /j� Aco(ToSt 41AKE C-MIC+3 aA irA&E To. LUSSOCK CEWTRA,. P.O. BOX 1056 LUBBOCK. TEXAI t806) 762 1995. TAX STATEMENT' ' , M PAVA& j up 11iCJ11'f mre�R� MD APPRAISAL DIST 1715 26TH ST. 79408-3568 XRETPROPERIRY R11 3IALLEN INMTRIAL PARK.L'.1 31781 -5000 EXT. SQO TO PMECC E A fC{V1T CHECK 9CIX ` 494 GRINftL .FIRE. PROTECTI ~t`-31781''95 SLB t COI z .. .. r' GRIN+ L 'CORP.'TAX, DEPARTlEW 3 PARK ST - ._: m, •> ',� 4 "', `: 1e917.04 EXETER. W 03833-1707 M -EAU ft'?L*W rMa ITAT/1OV nl,,k AiAYi�llfl r "P c a INS TAX WATEME MT k ,;* rrwtvAert Iip. 317811 NALtaATlpFf fwEAlcaowN ,, ' ,tiw I L/VlKX/ : Ius ... -. . ` — - +t., ,ru r ♦�°i K `J i. �' -,s'> PROPERTY ;8114933 ALLEN INDUSTRIAL PARK L 1 49453 GAYN€LL FIRE PROTECTION SYS CO INC GAIMELL CORP TAX DEPARTMW 3 PARK ST EXETER, Nk 03833-1707 OYIrR W YOV FAVI Mf1' OMEMP s N,=AM C4L4 004 7!Y.9M. T"" WMW OMMMINT 014 AFTIM JVW AER AO�TI ' r 1. ON TEE AhWLW ar TAXM& P906*LTT AM WrMMM Wjr AFT R JMY AM A MONAL I% PDIALTY Am iii WILL a gym. PfIU➢'I 11 V :L ♦i, jt• ll 4.A. V 1. .rl owiskJ- ,. . , .. , -......d_CARD 1, GRINNELL FIRE PRt)lrEC'flUN SYS (49453) GL© SLS C1.b 500122? • ALLAN INDUST-RIAL PARK ! 11 CO INC HSP WHR - -- -_- -- ---------_.�-_.._ - GRINNELL CORP TAX DEPARTMENT EXEMPTIONS APPRAISED VAL EXETER NH 03833-17'07 t-FRINTED: 05/08i'36 VALUE CHG: 02/x'1/96 � 911,:• TY SITUS ADDRESS IMPROVE 10ENT SKETCH NBHD : J-4bl NE LOOP 289 � ------- _X IMS' 1. UBBOCK " •'of4T. STYLE FIDURAATION EXT. FINISH INT FIN}$N ROOT STYLE flv[[,ipRfNG -'t AT*lw,Q PL UMBrF4Cs 14f1'If0[.Y BIn.II4-7 C4LIMi M(3 Drl{N► SK ETCH COMMANDS 514 MA 54 1: DL24, DD54q DR249 DU 54 - - a :,Art. PRICE tlE _U WOK LD DF.I D BdGH fyA .'t - o[7►C7GFIA'AIY U77LOWS AQCES.S rONt 01KvH - V 'SF.GMti� TYPE flyt;'S�F1tli�TlOk SPtH ��ar CLASS ME -Moo ��'. �' AWUS9' _ UNIT. YEAR CMD.% AREA BUILT ! FAcmR AREA +PRIG! TION, GOOD PHY„ F�3W1. FUNC. X X % +iALl,l 1 1 C CAG VALUE FOR ALL FI T2 C COMMERCIAL F X; `6 E-84 95 � 2. 3 MA MAIN AREA F: wH.- DE5CRIPTt0N TYPF SPTB J'X:. JI;, p AREA tmT PAF[ rine kc)k ILIVr MARKET VALU ueiNno ue 4ac QCs 1�D. J NEHYERCIAL_ (TABLE) f I N SVT404943. 475 0. 30 121, 483 rli.,tl 9. 2962AI I I I,otal I ];2],483 IIJ Vv fei YYY.[I— PROPE.RTY. I D: R99146 CAVO V R 1 NNELL FIRE RAO T E.CT 1 ON S'YS, (4441-0 GLB SLB CLB 00014373 ALLAN INDUSTRIAL. PARK L 1 CO INC HSP WHP GRINNELL CORP TAX DEFFARTMtNT EREmFrnONS EXETER, NH 03833-1707 PRINTED: 05/08/96 VALUE CHG: 02/21/46 PROPERTY SR"US ADDRESS NSHD : IMPROVEMENT 2401 NE LOOP 289 LUBBOCK must STYLE F-OUMATION EXT.. FHSN NIR. ftwW ROOF 6TYU FLOORIMG raE AhYIf .+C. r1UN�ING lw■ ftt asrM uxx nraw■w fstiAP i d .� Ii03215j0--1d0�C @�--0001 1 3, 1 : DR65 DR97 DR96 DU37 DL13 OU -56,D057 DL7 ,DL75 K75 H75 6D75 U7546R53 T3-,3-. DU4b, D1_3b, DD4b, AR3jI ------ 75 ------ 75—_......-- • 57 Y MA 56 7 - - 311-- 4 0MA20 37 I1�pQ{i?e4)MIY (FnU'iICS ACCL—VS :YEAR COND. % . PW. ECON. FDNC. PRICF BUU_T ""WENT 71/f�E I]PEXRIP'TIQN SPTB ';ui Mr7moi ri. ASS AREA . .' ADJUST AREA FACIDR - AREA !D E-68' 55 13 C COMMERCIAL Fl 3.1 MA MAIN AREA F "11. 45461 3� L AR 1 PAVING ASP°HAL.1 F 43-087 3� 3 MA:_ MAIN AREA USF F H 1 1 1200 �r sc�a rlow (TABLE) T1/PE �SPTH {MI�,�, I AREA I IRVIT P1tICE I FWA� NZ�H� 1 I j "NBH 8" MARKET VALUE otaI Lite- r a, r f• C77 •. . APPRAISED VAI 5 J. 1 , IMP VAI -4. ■ AC VA! -LL OMIT :YEAR COND. % . PW. ECON. FDNC. PRICF BUU_T WON GOOD % % % E-68' 55 E--68 34 E-68 = 55 �r sc�a rlow (TABLE) T1/PE �SPTH {MI�,�, I AREA I IRVIT P1tICE I FWA� NZ�H� 1 I j "NBH 8" MARKET VALUE otaI Lite- r a, r f• C77 •. . APPRAISED VAI 5 J. 1 , IMP VAI -4. ■ AC VA! -LL EXHIBIT "B" SECTION VII. Recapture: In the event that any type of facility, (as defined in Section U, Subparagraphs 5, 6, 7, S, 10, 11, 12, 13, 17, 19) is completed and begins producing goods or services, but subsequently discontinues producing goods or services for any reason, excepting fire, explosion, other casualty or accident or natural disaster or other event beyond the reasonable 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 latex 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 Jurisdiction to whom the application for tax abatement was directed that the discontinuance of producing goods or services was as a result of fire, explosion, or other casualty or accident or natural disaster or other event 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 ygg 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 and services within one year, then the Tax Abatement Agreement shall terminate and the Abatement of all 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 one year time period, hereinabove mentioned shall commence upon written notification 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 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. In the event that the Affected Jurisdiction to whom application for tax abatement was directed determines that the applicant or owner is in default of any of the terms or conditions contained in the Tax Abatement Agreement, then in such event the Affected Jurisdiction shall give the applicant or owner sixty (60) days written notice to cure such default. In the event such default is not cured to the satisfaction 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 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. 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. In the event that the applicant or owner, who has executed a tax abatement agreement with any affected jurisdiction, relocates the business, for which tax abatement has been granted, to a location outside of the designated reinvestment zone, then 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 termination 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 Subsection 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 Agreement 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 form the Affected Jurisdiction, failing in which, the abatement remains terminated and the abated taxes must be paid. 7. 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 the Owner (Applicant) in the terms and conditions of the Tax Abatement Agreement and shall so notify all other Affected Jurisdictions. Termination of the Tax Abatement Agreement by the Affected Jurisdiction to which the application for tax abatement was directed shall constitute simultaneous termination of all Tax Abatement Agreements of all other Affected Jurisdictions. 8. In the event that a tax abatement agreement is terminated for any reason what so ever and taxes are not paid within the time period herein specified, then in such event, the provisions of V.T.C.A., Tax Code, Section 33.01 will apply. Guidelines and Criteria Governing Tax Abatement For All Taxing Units Contained Within Lubbock County Page 2