HomeMy WebLinkAbout026043 RES - 11/16/2004
RESOLUTION
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE TO
EXECUTE AN AGREEMENT WITH LOFTY DEVELOPMENTS, LTD.
PROVIDING FOR TEMPORARY PROPERTY TAX ABATEMENT
WHEREAS, the Texas Property Redevelopment and Tax Abatement Act (the "Act"),
Texas Tax Code, Chapter 312, as amended, authorizes the City of Corpus Christi,
Texas (the "City") to enter into Tax Abatement Agreements for projects meeting the
guidelines and criteria for granting tax abatement, as amended, duly adopted by the
City; and
WHEREAS, an application for temporary tax abatement has been filed with the City by
Lofty Developments, Ltd. for the rehabilitation of a facility in the City; and
WHEREAS, the enterprise zone created in the City includes the property to be covered
by the proposed tax abatement agreement and is eligible for such treatment in
accordance with the provisions of the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. The City finds and determines that the terms of the proposed agreement
and the property subject to the proposed agreement meet the applicable guidelines and
criteria, as amended, adopted by the City, and the City further determines that the
proposed project is feasible and the proposed temporary abatement of taxes will inure
to the long term benefit of the City.
SECTION 2. The execution of the Tax Abatement Agreement attached in substantial
form as Exhibit A is authorized and approved.
Duly adopted at a regular meeting of the City Council on the II/t;;~y of November, 2004.
ATTEST:
~
Armando Chapa
City Secretary
Samuel L.
Mayor
APPROVED AS TO FORM:
By: i...J./Yli;ttv0-..
Lisa Aguilar<
Assistant City Attorney
for City Attorney
November 9, 2004.
Nov 16 2004 Lofty Developments.doc
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Corpus Christi, Texas
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The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
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1126043
TAX ABATEMENT AGREEMENT
THE STATE OF TEXAS
COUNTY OF NUECES
This Tax Abatement Agreement (hereinafter referred to as the 'Agreement") is made and entered
into by and between the CITY OF CORPUS CHRISTI, TEXAS (the "Governmental Unit") and Lofty
Developments, Ltd. a Texas Limited Partnership (the "Owner"), the owner of taxable property in the
City of Corpus Christi, Texas, identified on the attached Exhibit B, (the "Property')
I. AUTHORIZATION
This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Texas
Tax Code, Chapter 312, as amended (the "Act") , and is subject to the laws of the State of Texas and
the charter, ordinances, and orders of the Governmental Unit.
II. DEFINITIONS
As used in this Agreement, the following terms shall have the meanings set forth below:
A. "Abatement means the temporary, full or partial exemption from ad valorem taxes of certain
Added Value to real and personal property in a zone designated for economic development purposes
pursuant to the Act.
B. "Added Value" means the increase in the assessed value of an eligible property as a result
of "expansion" or "modernization" of an existing facility or construction of a facility." It does not mean
or include "deferred maintenance."
C. "Agreement" means this Tax Abatement Agreement
D. "Base Year Value" means the assessed value of the Improvements on the Property as
certified by the Nueces County Appraisal District as of the January 1 preceding the execution of this
Agreement plus the agreed upon value of Improvements made after January 1 but before the
execution of this Agreement.
E. "Deferred Maintenance" means improvements necessary for continued operations which do
not improve productivity or alter the process technology.
F. "Economic Life" means the number of years a property improvement is expected to be in
service in a Facility.
G. "Eliaible Jurisdiction" means the City of Corpus Christi or Nueces County and any
municipality, the majority of which is located in Nueces County that levies ad valorem taxes upon and
provides services to property located within the proposed or existing zone designated pursuant to the
Act.
H. "Enterprise Zone Residential Redevelopment Facility' means buildings and structures used or
to be used primarily for residential purposes and which are located within an enterprise zone.
". Expansion" means the addition of buildings, structures, fixed machinery or equipment for the
purposes of increasing capacity
E xhl ~Jlt A
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J. "Facilitv" means property improvements completed or in the process of construction which
together compromise an integral whole.
IK. Mixed use facilitv" means a facility having residential and commercial uses where the
commercial use occupies more than 20% of the structure
L. "Multi-familv housinq" means a facility designed, arranged, or used exclusively for the use and
occupancy of three or more families living independently of each other. The dwelling structure may
Include a triplex, apartment, townhouse, condominium, cooperative, high-rise. etc.
M. "Modernization" means the replacement and upgrading of existing facilities which increase the
productive Input or output, updates the technology or substantially lowers the unit cost of the
operation, and extends the economic life of the facilities. Modernization may result from the
construction, alteration or installation of buildings, structures, fixed machinery or equipment it shall not
be for the purpose of reconditioning, refurbishing, repairing or completion of deferred maintenance.
N. "New Facilitv" means a property previously undeveloped which is placed Into service by
means other than or in conjunction with an expansion or modernization.
O. "Owner means the owner of a Facility subject to abatement. If the Facility is constructed on a
leased property, the owner shall be the party which owns the property subject to tax abatement. The
other party to the lease shall join in the execution of Agreement but shall not be obligated to assure
performance of the party receiving abatement.
P. "Permanent full-time iob" means a new employment position created by a business that
provides a regular work schedule of at least 35 hours per week or 1820 hours of employment per year
to a Nueces County resident and maintains the employment position during the term of the abatement
agreement.
a. "Renewal Communitv Facilitv" means a building or structure in the Corpus Christi Renewal
Community which includes Census Tracts 1,3,4, 10 and 11 to be used for the creation of a new
business or business expansion, but not a relocation of a business. A project may be considered on a
case by case basis for abatement if it is a Renewal Community Facility and if the building or structure
will be defined as a rehabilitation project or is defined as new facility. Projects that may be considered
as Renewal Community Facilities include: multi-family housing facilities, mixed-use facilities, retial
facilities, hotel accommodations.
R. "Rehabilitation" means that the Added Value, as defined, of the project exceeds the base year of
a development property by $250,000.
S. "Texas Enterprise Zone" means any census block group with greater than 20% poverty,
federally designated Renews Community, or area designated as a Texas Enterprise Zone prior to
2003.
T "Improvements" means the buildings or portions thereof and other improvements, used for
commercial purposes on the Property.
U. "Construction Phase" means the period during which a material and substantial improvement
of the Property occurs which represents a separate and distinct construction operation undertaken for
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the purpose of erecting the Improvements. The Construction Phase ends upon the earliest to occur
of the following events:
(1) when a certificate of occupancy is issued for the project (if within City limits); or
(2) when commercial production of a product or provision of a service is achieved at the
facility, or
(3) when the architect or engineer supervising construction issues a certificate of
substantial completion, or some similar instrument, or
(4) two (2) years after the date of this Agreement.
The determination of the end of the Construction Phase shall be made by the Governmental
Unit, in its sole and absolute discretion, based upon the above criteria and such other
factors as the Governmental Unit may deem relevant. The determination of the end of the
Construction Phase by the Governmental Unit shall be conclusive, and any judicial review of
such determination shall be governed by the substantial evidence rule.
V. "Eligible Property" means the buildings, structures, site Improvements, and that office space
and certain personal property necessary to the operation and administration of the Facility and
Renewal Community facilities to be constructed pursuant to this Agreement. A list of the Eligible
Property is set forth in the Project Description which is attached hereto as Exhibit "A" and made a part
hereof.
W "Ineligible Property" means land; inventories; supplies; tools; furnishings and other forms of
movable personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred
maintenance investments; improvements for the generation or transmission of electrical energy not
wholly consumed by a New Facility or expansion; any improvements, including those to produce,
store or distribute natural gas, fluids or gases, which are not integral to the operation of the Facility;
improvements to real property which have an economic life of less than 15 years; property owned or
used by the State of Texas or its political subdivisions or by any organization owned, operated or
directed by a political subdivision of the State of Texas: unless any of the above types of property are
specifically authorized by the Governmental Unit.
X. "The Guidelines and Criteria for Granting Tax Abatement" means the document that was
adopted by City Council in April 2004 by Resolution 025740, as amended. The Guidelines and
Criteria for Granting Tax Abatement are incorporated as a part of this Agreement. Except as the
same may be modified herein, all definitions set forth therein are applicable to this Agreement.
III. PROPERTY
The Property is an area within the City of Corpus Christi, Texas, located in whole or in part within the
jurisdiction of the Governmental Unit as is more fully described in Exhibit "B" attached hereto and
made a part hereof. Said Property is located within a zone for tax abatement established pursuant to
Chapter 312 of the Texas Tax Code, as amended, by the City of Corpus Christi, Texas.
The Nueces County Appraisal District has established the following values for the Property as of the
January 1 valuation date prior to the date of execution of this Agreement.
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Account No. 0797-0005-0070
Land
Improvements
$ 135.000
$ 8.531
Account No. 0797-0010-0050
Land
Improvements
$111,660
$80,000
Addition of the above amount to the valuation of the Improvements as of the January 1 valuation date
prior to the date of execution of this Agreement results in a Base Year Value as follows:
Base Year Value: $
335,191
IV. TERM OF ABATEMENT AND AGREEMENT
The Governmental Unit agrees to abate the ad valorem taxes on the Eligible Property in accordance
with this paragraph and paragraphs V and VI hereof. The Abatement shall be effective with the
January 1 valuation date immediately following the date of execution of this Agreement.
The Abatement shall continue for up to two (2) years during the period of the Construction Phase and
for the next three (3) full tax years thereafter, expiring as of December 31 of such fifth tax year.
If the period of the Construction Phase exceeds two (2) years, the Facility shall be considered
completed for purposes of Abatement, and in no case shall the period of Abatement inclusive of
construction and completion exceed five (5) tax years.
The years of Abatement provided herein shall in each instance coincide with the tax year commencing
on January 1 and expiring on December 31, and in no event shall the Abatement extend beyond
December 31 of the fifth tax year.
The term of this Agreement shall continue for a period of five (5) years following expiration of the
abatement period. All terms and conditions imposed upon the Owner shall continue in effect during
such period, and the Owner shall be obligated specifically to continue the minimum employment
levels specified herein. Any default shall be subject to the provisions of Article VIII hereof.
V. TAXABILITY
During the period that the Abatement is effective, taxes shall be payable as follows:
(1) The value of the land comprising the Property shall be fully taxable;
(2) The Base Year Value of existing Improvements comprising the Property shall be fully
taxable;
(3) The value of Ineligible Property shall be fully taxable; and
(4) The Added Value of Eligible Property shall be abated as set forth in Part VI herein.
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VI. AMOUNT OF ABATEMENT
The Abatement provided by this Agreement shall be based upon the Added Value of Eligible Property
as a result of the project.
For a Non-Renewal Community Facility which provides not less than 50 (but not more than 99) new
permanent jobs, the percentage of tax abated shall be in accordance with the following schedule:
Year
Construction Period
(not to exceed 2 years)
Year I
Year 2
Year 3
Year 4
Year 5
Percentaqe of Abatement
100%
50%
50%
50%
50%
50%
Provided that, for a Non-Renewal Community Facility which provides not less than 100 (but not more
than 199) new permanent jobs, the percentage of tax abatement shall be in accordance with the
following schedule:
Construction Period
(not to exceed 2 years)
Year I
Year 2
Year 3
Year4
Year 5
Percentage of Abatement
(for first $10 million)
100%
Percentage of Abatement
(over $10 million)
100%
75%
75%
75%
75%
75%
50%
50%
50%
50%
50%
Provided that, for a Non-Renewal Community Facility which provides at least 200 new permanent
jobs, the percentage of tax abatement shall be in accordance with the following schedule:
Construction Period
(not to exceed 2 years)
Year I
Year2
Year3
Year4
Year 5
Percentage of Abatement
(for first $10 million)
100%
Percentage of Abatement
(over $10 million)
100%
100%
100%
100%
100%
100%
50%
50%
50%
50%
50%
In the event that upon completion of the Construction Phase the Added Value of permanent
Improvements, as determined by said Appraisal District, shall at any time thereafter during the period
of Abatement be less than eight-five percent (85%) of the Estimated Added Value, not due to
circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes hereunder,
an amount equal to the then current tax rate of the Governmental Unit applied to the difference
between the Added Value from eighty'five percent (85%) of the Estimated Added Value, multiplied by
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100% minus the net percentage of Abatement provided under this Agreement. For the purposes of
this provision, the term "circumstances beyond the control of Owner" shall include casualty losses,
national economic factors, shutdowns due to governmental regulations, strikes, acts of war; and the
like The formula for calculating such additional tax is outlined as follows:
(Tax Rate] x [(85% of Est. Added Value - Actual AV) x (100% - Abatement%)] = Additional Tax
For Renewal Community Facilities involving rehabilitation, the Abatement provided by this Agreement
shall be based upon the Added Value of Eligible Property as a result of the project. For a Renewal
Community Facility which provides not less than one (1) new permanent full-time job per $50,000 of
Added Value to a property following the completion of construction, and maintains the same level of
employment for the term of this Tax Abatement Agreement, the percentage of tax abated shall be in
accordance with the following schedule:
YEAR
Percentaqe of Abatement of Added
Value of Renewal Communitv Facilitv involvinq
Rehabilitation
Construction Period (not to exceed 2 years)
Year 1
Year 2
Year 3
100%
100%
100%
100%
For Renewal Community Facility which is a residential Multi-Family Housing, the job requirement shall
be waived.
For Renewal Community Facility which is a Mixed Use Facilities, the job requirement shall be
prorated. For example, if Owner is constructing a Mixed-use Facility that is 30% non-residential and
the Added Value is $1,500,000, the job requirement shall be to create and maintain a minimum of 9
permanent full-time jobs during the term of the abatement agreement. ($1,500,000 x .30 = $450,000,
$450,000/$50,000=9).
In order to be counted as a permanent job under this Agreement, the job must be a full-time position
providing regular work schedules at least 35 hours per week. For compliance purposes, the
determination date shall be January 1 of each year commencing with the January 1 following the date
of completion of construction. The percentage of abatement provided each year under this Agreement
shall be based upon the employment information as of January 1 of such year. As a result, the actual
amount of abatement may vary from year to year based upon employment levels and property
valuations.
If this project is designated as a "rehabilitation project" under the Guidelines and Criteria which
involves the adaptive reuse of an existing structure or building for a Facility, the project must involve a
minimum capital expenditure of $250,000. The rehabilitation project must involve the adaptive reuse
of an existing structure or building currently on the property tax rolls so that the Base Year Value
associated with the project will include both the value of the land and the existing improvements.
For compliance purposes, the date for determining a permanent full-time job shall be six months from
the date of completion. The Owner must maintain the same level of employment or increase
employment during the term of the Agreement. The percentage of abatement provided shall be
based upon the employment information as of January 1 each year. The target living wage shall be
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that annual amount equal to or greater than poverty level for a family of three, as established by the
2004 U.S. Department of Health and Human Services Poverty Guidelines, divided by 1820 hours per
year, which is currently $8.60 per hour. The Governmental Unit shall have the right to adjust the living
wage target under these Guidelines and insert a specific target in each Tax Abatement Agreement to
govern the abatement offered under this Agreement.
This project is designated as a "rehabilitation project" under the Guidelines and Criteria which involves
the adaptive reuse of an existing structure or building for a Facility. Owner represents and warrants
that the project shall involve a minimum capital expenditure of $250,000. The rehabilitation project
must involve the adaptive reuse of an existing structure or building currently on the property tax rolls
so that the Base Year Value associated with the project will include both the value of the land and the
existing improvements.
At the time of execution of this Agreement, the Owner reasonably estimates and represents to the
Governmental Unit that the Added Value of the Renewal Community Mixed User Facility comprising
permanent Improvements upon completion of the Construction Phase shall be:
$387.500 ("Estimated Added Value").
VII. CONTEMPLATED IMPROVEMENTS
Owner represents that it shall improve a Facility at the cost, for the purpose, and in the manner as set
forth in the Project Description attached as Exhibit"A. During the Construction Phase, the Owner
may make such change orders to the project as are reasonably necessary, provided that no such
change order may be made which will change the qualification of the project as a "Facility" under the
Guidelines for Granting Tax Abatement approved by the Governmental Unit. All improvements shall
be completed in accordance with all applicable laws, ordinances, rules or regulations. During the term
of this Agreement, use of the Property shall be limited to operation of the Facility described in the
Project Description consistent with the general purpose of encouraging development or
redevelopment of the zone during the period of this Agreement.
VIII. EVENTS OF DEFAULT AND RECAPTURE
A. Failure to Commence Operation Durinq Term of Aqreement. In the event that the Facility
does not create within six months of construction completion the required number of
permanent full-time job(s) per $50,000 of Added Value to a property and maintain the same
level of employment or increase employment during the term of this Agreement, no
abatement shall be given for that tax year, and the full amount of taxes assessed against the
property shall be due and payable for that tax year. In the event that the Owner fails to
create and maintain the required number of full-time jobs by the next January 1, then the
abatement Agreement shall terminate and all abated taxes during the period of construction
shall be recaptured and paid within 60 days of such termination.
B. Discontinuance of Operations Durinq Term of Aqreement. In the event the Facility is
completed and begins operation with the required minimum number of 2 permanent jobs but
subsequently discontinues operations and the required minimum number of 2 permanent
jobs is not maintained on any January 1 during the term of the Agreement after the
completion of construction, for any reason except on a temporary basis due to fire, explosion
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or other casualty or accident or natural disaster, the Agreement may be terminated by the
Governmental Unit, and all taxes previously abated by virtue of the Agreement shall be
recaptured and paid within 60 days of such termination.
C Delinquent Taxes. In the event that the Owner allows its ad valorem taxes to become delinquent
and fails to timely and properly follow the legal procedures for their protest and/or contest, this
Agreement shall terminate and so shall the abatement of the taxes for the calendar year of the
delinquency. The total taxes assessed without abatement for that calendar year shall be paid within
60 days from the date of termination Penalty and interest shall not begin to accrue on the additional
amount of taxes due as the result of recapture under this provision until the first day of the month
following such sixty (60) day notice, at which time penalty and interest shall accrue in accord with the
laws of the State of Texas. Penalty and interest on the amount of taxes originally levied based upon
the Abatement shall, of course, begin to accrue as of the date such taxes were due in accord with the
laws of the State of Texas.
D. Notice of Default. Should the Governmental Unit determine that the Owner is in default according
to the terms and conditions of this Agreement, it shall notify the Owner that if such default is not
cured within sixty (60) days from the date of such notice ('Cure Period'), then this Agreement may
be terminated. In the event the Owner fails to cure said default during the Cure Period, this
Agreement may be terminated and the taxes abated by virtue of the Agreement will be recaptured
and paid as provided herein.
E. Actual Added Value. Should the Nueces County Appraisal District determine that the total level
of Added Value during any year of the term of this Agreement after completion of the
Construction Phase is lower than the Estimated Added Value, for each year during which an
Abatement has been granted, the difference between the tax abated and the tax which should
have been abated based upon the actual Added Value shall be determined by the Governmental
Unit and paid within 60 days of notification to the Owner of such determination. Penalty and
interest shall not begin to accrue upon such sum until the first day of the month following such
sixty (60) day notice, at which time penalty and interest shall accrue in accord with the laws of the
State of Texas.
F. Reduction in Rollback Tax Rate. If during any year of the period of Abatement any portion of the
abated value is added to the current total value of the Governmental Unit but is not treated as
'new property value' (as defined in Section 26.012 (17) of the Texas Tax Code) for the purpose of
establishing the "effective maintenance rate" in calculating the 'rollback tax rate' in accord with
Section 26.04 (c) (2) of the Texas Tax Code and if the Governmental Unit's budget calculations
indicate that a tax rate in excess of the 'rollback tax rate' is required to fund the operations of the
Governmental Unit for the succeeding year, then the Governmental Unit shall recapture from the
Owner a tax in an amount equal to the lesser of the following:
(1) The amount of the taxes abated for that year by the Governmental Unit with respect to the
Property.
(2) The amount obtained by subtracting the rollback tax rate computed without the abated
property value being treated as new property value from the rollback tax rate computed with
the abated property value being treated as new property value and multiplying the difference
by the total assessed value of the Governmental Unit.
If the Governmental Unit has granted an abatement of taxes to more than one taxpayer, then the
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amount of the recapture calculated in accord with subparagraph (2) above shall be prorated on
the basis of the value of the abatement with respect to each taxpayer.
This event shall not constitute a 'default" under this Agreement, and the sixty (60) day Cure
Period provided above shall not apply. Such recaptured taxes must be paid within thirty (30) days
after notice thereof has been given to the Owner. Penalty and interest shall not begin to accrue
upon such sum until the first day of the month following such thirty (30) day notice, at which time
penalty and interest shall accrue in accord with the laws of the State of Texas.
G. Continuation of Tax Lien. The amount of tax abated each year under the terms of this Agreement
shall be secured by a first and prior tax lien which shall continue in existence from year to year
until such time as this Agreement between the Governmental Unit and Owner is fully performed
by Owner, or until all taxes, whether assessed or recaptured, are paid in full.
In the event of any default by Owner, the governing body of the Governmental Unit reserves the right
to terminate or modify this Agreement. Owner shall be afforded written notice of such default and the
opportunity to cure as provided above. If Owner believes such action was improper, Owner may file
an appeal in Nueces County district court within sixty (60) days after written notice of the action by the
Governmental Unit. Owner shall remit to the Governmental Unit, within such 60-day period, any
additional or recaptured taxes levied pursuant to the payment provisions of Texas Tax Code S 42.08.
If the final determination of the appeal increases Owner's tax liability above the amount paid, Owner
shall remit the additional tax pursuant to Tax Code S 42.42. If the final determination of the appeal
decreases Owner's tax liability, the Governmental Unit shall refund the Owner the difference between
the amount of tax paid and the amount of tax for which Owner is liable pursuant to Tax Code S 42.43.
IX. ADMINISTRATION
A. Inspections. The Owner shall allow employees and/or representatives of the Governmental Unit
to have access to the Property during the term of this Agreement to inspect the Facility to determine
compliance with the terms and conditions of this Agreement. All inspections will be made only after
the giving of twenty-four (24) hours prior notice and will only be conducted in such manner as to not
unreasonably interfere with the construction or operation of the Facility. All inspections will be made
with one or more representatives of the Owner and in accordance with Owner's safety standards.
B. Appraisals. The Chief Appraiser of the Nueces County Appraisal District shall annually determine
(i) the taxable value of the real and personal property comprising the Property taking into
consideration the Abatement provided by this Agreement, and (ii) the full taxable value without
Abatement of the real and personal property comprising the Property. The Chief Appraiser shall
record both the abated taxable value and the full taxable value in the appraisal records. The full
taxable value figure listed in the appraisal records shall be used to compute the amount of abated
taxes that are required to be recaptured and paid in the event this Agreement is terminated in a
manner that results in recapture. Each year the Owner shall furnish the Chief Appraiser with such
information outlined in Chapter 22, Texas Tax Code, as amended, as may be necessary for the
administration of the Agreement specified herein.
C. Annual Reports. Owner shall certify to the governing body of the Governmental Unit on or before
April 1 each year that the Owner is in compliance with each applicable term of this Agreement.
Additionally, during the initial four years of the term of property tax abatement, Owner shall provide to
the Governmental Unit an annual report covering those items listed on Schedule I attached hereto in
order to document the efforts of the Owner to acquire goods and services on a local basis. Such
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annual report shall be prepared on a calendar year basis and shall be submitted to the
Governmental Unit no later than ninety (90) days following the end of each such calendar year. The
annual report shall be accompanied by an audit letter prepared by an independent accounting firm
which has reviewed the report.
D. "Buv Local' Provision. The Owner additionally agrees to give preference and priority to local
manufacturers, suppliers, contractors and labor, except where not reasonably possible to do so
without added expense, substantial inconvenience, or sacrifice in operating efficiency. In any such
exception cases involving purchases over $10,000.00 a justification for such purchase shall be
included in the annual report. The Owner further acknowledges that it is a legal and moral obligation
of persons receiving property tax abatements to favor local manufacturers, suppliers, contractors and
labor, all other factors being equal. For the purposes of this provision, the term 'local" as used to
describe manufacturers, suppliers, contractors and labor shall include firms, businesses, and persons
who reside in or maintain an office in either Nueces County or San Patricio County. In the event of a
breach of the buy local provision, the percentage of abatement shall be proportionately reduced equal
to the amount the disqualified contract bears to the total construction cost for the project.
X. ASSIGNMENT
The Owner may assign this Agreement to anyone or more corporation(s), 50% or more of the
outstanding voting securities of which are owned, directly or indirectly, by one of the Owners, or any
partnership(s) or limited partnership(s) in which an Owner, or a subsidiary of an Owner, is a general
partner. The Owner may assign this Agreement to any other new owner or lessee of the Facility with
the prior written consent of the Governmental Unit, which consent shall not be unreasonably withheld.
Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all the
duties and obligations of the assignor and become the Owner upon the same terms and conditions as
set out in this Agreement. In the event more than one entity is Owner hereunder, the obligations of
said entities shall be joint and several. Any assignment of this Agreement shall be to an entity that will
provide substantially the same improvements to the Property, except to the extent such improvements
have been completed. No assignment shall be approved if the Owner or any assignee are indebted
to the Governmental Unit for ad valorem taxes or other obligations.
XI. NOTICES
Any notice required to be given under the provisions of this Agreement shall be in writing and shall be
duly served when it shall have been deposited, with the proper postage prepaid thereon, and duly
registered or certified, return receipt requested, with the United States Postal Service, addressed to
the Governmental Unit or Owner at the following addresses. If mailed, any notice or communication
shall be deemed to be received three days after the date of deposit in the United States Mail. Unless
otherwise provided in this Agreement, all notices shall be delivered to the following addresses:
To the Governmental Unit. CITY OF CORPUS CHRISTI, TEXAS
1201 Leopard Street
P. O. Box 9277
Corpus Christi, Texas 78469
Attn: City Manager
II
To the Owner:
Lofty Developments, Ltd.
Attn David Loeb, Vice President
921 N. Chapparal Suite 100
Corpus Christi, Texas 78401
Either party may designate a different address by giving the other party ten days' written notice. This
Agreement has been executed by the parties in multiple originals or counterparts, each having full
force and effect.
Executed this - day of
,2004
CITY OF CORPUS CHRISTI
ATTEST:
By:
Armando Chapa
City Secretary
George K. Noe
City Manager
APPROVED AS TO FORM
2004
By:
Lisa Aguilar
Assistant City Attorney
For City Attorney
STATE OF TEXAS ~
COUNTY OF NUECES ~
~
This instrument was acknowledged before me on the day of
George K. Noe, City Manager, or his designee
Corpus Christi, a Texas home rule municipal corporation, on behalf of the corporation.
,2004, by
of City of
Notary Public, State of Texas
Printed Name
Commission expires
OWNER:
By:
Name:
Title
12
Date:
STATE OF TEXAS
~
~
COUNTY OF NUECES
~
This instrument was acknowledged before me on
as
partnership, on behalf of said partnership.
, 2004, by
for Lofty Development, Ltd., a Texas limited
Notary Public
13
SCHEDULE 1
"Buy local' Annual Reports
The following information shall be reported to the Governmental Unit on a calendar-year basis
during the first four years of the tax abatement program:
1.
2
3
4.
5.
6.
7.
8.
Dollar amount spent for materials' (local).
Dollar amount spent for materials (total).
Dollar amount spent for labor" (local).
Dollar amount spent for labor" (total).
Number of jobs created in the construction project (local).
Number of jobs created in the construction project (total).
Number of jobs created on a permanent basis (local).
Number of jobs created on a permanent basis (total).
. 'Materials' is defined to include all materials used in excavation, site improvement, demolition,
concrete, structural steel, fire proofing, piping, electrical, instruments, paintings and scaffolding,
insulation, temporary construction facilities, supplies, equipment rental in construction, small tools and
consumables. This term does not include major items of machinery and equipment not readily-
available locally.
.. 'labor' is defined to include all labor in connection with the excavation, site improvement,
demolition, concrete construction, structural steel, fire proofing, equipment placement, piping,
electrical, instruments, painting and scaffolding, insulation, construction services, craft benefits,
payroll burdens, and related labor expenses. This term does not include engineering services in
connection with the project design.
The term "Iocal' as used to describe manufacturers, suppliers, contractors and labor shall include
firms, businesses, and persons who reside in or maintain an office in either Nueces County or San
Patricio County.
November 1, 2004
14
Exhibit A
Corpus Christi Project Plan
[Insert letters dated September 23, 2004 and October 11, 2004 from David Loeb]
The subject property consists of two parcels of land. Parcel A is approximately 11,094 square feet of
land improved with a 24,000 square foot office structure.
Parcel B is approximately 15,000 square feet of land improved with asphalt paving and used as a
parking lot.
This project will rehabilitate the ground floor as commercial office/retail/studio space, and the upper
three floors as approximately 18 mid income loft-style apartments. The site is currently an empty
office building with a paved parking lot. The cost for this rehabilitation is estimated at $
Task
Closing
Final plans
Budgeting
Financing
Asbestos Remediation
Permitting
Demolition
Re-Roofing
Cutting Chases
Utility Connections
Interior Utilities
Elevator repair
Stairwell extension
Walkway Modifications
Facade changes
Cleanup & overruns
Opening
Plan for completion:
Est. days for completion
Running Date
30
30
30
30
30
30
60
60
60 ???
60
60
30
30
60
60
60
October 1, 2005
15
EXHIBIT 'B'
Part, Lot 6A Block 10, Bluff Addition, a subdivision in the City of Corpus Christi, Texas, as
shown by map or plat thereof recorded in the Map Records of Nueces County, Texas, and
being known as 817 Carancahua Street North, Corpus Christi, Texas.
Lots 7 and 8, Block 5, Bluff Addition, a subdivision in the City of Corpus Christi, Texas, as
shown by map or plat thereof recorded in the Map Records of Nueces County, Texas, and
being known as Carancahua St North at Buffalo Street, Corpus Christi, Texas.