HomeMy WebLinkAboutRES 12-268 RESOLUTION NO. 12-268
WHEREAS, HEB Grocery Company, LP is proposing to construct a new 68,000
square foot grocery store at the intersection of College and 11 th Streets in the City of
Beaumont, Texas; and,
WHEREAS, this construction is projected to be in excess of $5,000,000, a
substantial investment as outlined in the Neighborhood Empowerment Zone Policy and
would, therefore, be eligible for consideration for an abatement of City taxes for up to a
period of seven (7) years; and,
WHEREAS,the Neighborhood Empowerment Zones are intended to attract this type
of economic development in areas of the City with higher concentrations of low to moderate
income families and limited redevelopment by offering incentives such as tax abatement;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby, in
all things, approved and adopted; and,
THAT the City Manager be and he is hereby authorized to execute a Neighborhood
Empowerment Zone Tax Abatement Agreement with HEB Grocery Company, LP, a Texas
limited partnership offering economic incentives to encourage the construction of a retail
grocery store with a projected value in excess of$5,000,000 at the corner of College and
11th Streets in the City of Beaumont within Neighborhood Empowerment Zone #1. The
agreement is substantially in the form attached hereto as Exhibit "A" and made a part
hereof for all purposes.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of
October, 2012. w�
A.
- Mayor Becky Ames -
o
i
I
STATE OF TEXAS
COUNTY OF JEFFERSON
NEIGHBORHOOD EMPOWERMENT ZONE
INCENTIVE AGREEMENT
This Neighborhood Empowerment Zone Incentive Agreement (the "A r�Bement")
is entered into by and between the City of Beaumont, Texas, a home-rule municipal
corporation of Jefferson County, Texas, acting herein by and through its City Manager,
(hereinafter referred to as the "City"); and HEB Grocery Company, LP, a Texas limited
partnership(hereinafter referred to as the"Owner").
WITNESSETH:
WHEREAS, On the twenty-fourth day of January, 2012, the City Council of the
City of Beaumont, Texas, passed Ordinance No. 12-004, establishing the amended
boundaries of Empowerment Zone Number One for residential and commercial tax
abatements, and on the twentieth day of March, 2012 passed Resolution No. 12-062
establishing the amended guidelines for all Neighborhood Empowerment Zones
throughout the city, as authorized by Vernon's Texas Civil Statutes Tax Code, Section
312.001 and Chapter 378 of the Texas Local Government Code, et seq, as amended,
(hereinafter referred to as "Statute");
WHEREAS, the City desires to maintain and/or enhance the local economy and
increase the quality of social services in the zone in accordance with said Ordinance and
Statute;
NOW THEREFORE, the City and the Owner, for good and valuable
consideration described herein,do mutually agree as follows:
1. PROPERTY. The property subject to this Agreement shall be the land and
improvements thereto legally described: (a) Minor Plat of a 2.4740 Acre Tract out of the
David Brown Survey, Abstract No. 5 into Lot A, Stagg Court; and (b) Minor Plat of a
7.300 Acre Tract out of the David Brown Survey, Abstract No 5 into Lot 1, College
Street Plaza (both minor plats being situated within the city limits of Beaumont) and
depicted in "Exhibit A" attached hereto (the"Premises").
2. CONDITIONS FOR INCENTIVES. The Owner shall not be obligated to
develop or operate a grocery store. However, the following shall be conditions that must
be satisfied in order for the Owner to receive the incentives provided herein (collectively,
the"Incentive Conditions"):
062007.00754#163251 v5 EXHIBIT "A"
A. The Owner shall cause to be constructed a grocery store on the Premises not
less than 50,000 gross square-feet in size, as measured by the exterior
perimeter of the building(the"Project").
B. The Owner shall Complete (defined below) the Project on or prior to
December 31,2015 (the"Completion Deadline").
3. TERM. This Agreement shall commence upon the Effective Date, and shall
terniinate on the earlier to occur of. (a) the Final Abatement Date (defined below), or (b)
tennination of the AI,rm-nent, as provided herein (the "Term") not to exceed ten (10)
,years total.
4. EXEMPTION FROM AD VALOREM TAXATION. Subject to the terms
and conditions of this Agreement, following the completion of the Project and for each
tax year thereafter during the Tenn of this Agreement, the City shall exempt Owner from
paying increased real property taxes otherwise levied by the City against the Net
Increased Value(the "Tax Abatement"). For purposes of this Agreement, "Net Increased
Value" shall mean, for each tax year subject to this Agreement, the calculated difference
detennined by subtracting: (a) the Taxable Value of all real property of the HEB grocery
store located at 1180 South 1 I`l' Street, Beaumont, Texas (the "I It" Street Store Value"),
and (b) the Taxable Value of all real property of the HEB grocery store located at 3930
East Lucas Street, Beaumont,Texas (the"East Lucas Store Value"), from (c) the Taxable
Value of all real property of the Premises (including improvements thereto, namely the
Project) in excess of the 2012 Taxable Value of the Premises (the "New Store Value").
For determining the Net Increased Value, the IIt" Street Store Value shall be nine
hundred twenty seven thousand six hundred dollars ($927,600) and the East Lucas Store
Value shall be eight hundred seventy seven thousand four hundred sixty dollars
($877,460), which equals the Taxable Value for both stores as of the Effective Date. For
purposes of this Agreement, "Taxable Value" shall mean value of property subject to ad
valorem taxation as detennined by the Jefferson County Appraisal District for the
applicable tax year, subject to rights of the Owner to protest such value.
For purposes of illustration:
Taxable Value of the Store and Premises(New Store) $6,133,760
less: 2012 Taxable Value of the Premises (existing property) ($833,760)
Increased Value of Premises(after construction) $5,300,000
less: Existing Store Value(1180 S. I I`l' Street) ($927,660)
less: Existing Store Value(3930 E. Lucas) ($877,460,)
Amount of abatable value: $3,494,880
5. TERM OF EXEMPTION. The Tax Abatement shall commence with the tax
year which follows the date that the Project is Complete, and continue until December 31
of the seventh consecutive tax year (the later date being the "Final Abatement Date").
002007.1x1754 W 163251 v5 2
For purposes of this Agreement, "Complete" shall mean the completion of the Project to
such condition that permits use by the Owner, as evidenced by the issuance of a
certificate of occupancy by the City for the Project, not to be unreasonably withheld.
6. CITY FEE WAIVERS. With respect to the Owner's development of the
Project, the City hereby waives and shall not collect any planning and building fees
(except water tap fees and water usage charges and fees) typically charged in connection
with new construction. The Owner may rely on this Agreement to obtain said waivers at
time of application or pennitting required for the Project.
7. EXPEDITED REVIEW. The City and the Owner agree to cooperate with one
another to expedite processing of permits, including zoning applications (s), subdivision
applications, plat approvals, development application (s) and/or building pen-nit
applications required for the completion of the project, in accordance with State Statutes
and City Ordinances.
8. DEFAULT BY OWNER. In the event that the Incentive Conditions are not
satisfied, then this Agreement shall be subject to termination and all taxes shall be due for
the tax year in which the default occurred. In the event that the Owner defaults in the
terns and conditions of this Agreement, the City shall give the Owner written notice of
such default and if the Owner has not cured such default within thirty (30) days of said
written notice, or if extended by the City such longer time period not to exceed ninety
(90) days, this Agreement may be terminated by the City. City specifically agrees that
the Owner shall only be liable to City for taxes due and shall not be liable to City for any
alleged consequential damages. City hereby waives any rights or remedies available to it
at law or in equity.
9. DEFAULT BY CITY. In the event that the City should fail to timely or
substantially comply with any one or more of the requirements, obligations, duties, terms,
conditions or warranties of this Agreement, such failures shall be an Act of Default by the
City and the City shall have thirty(30) days to cure and remove the Default upon receipt
of written notice to do so from Owner. Owner specifically agrees that the City shall only
be liable to Owner for the amount of waivers and abatement, outlined herein, attorney's
fees, and costs of court, shall not be liable to Owner for any alleged consequential
damages. Owner hereby waives any rights or remedies available to it at law or in equity.
10. SUCCESSORS/ASSIGNMENT. The terns and conditions of this
Agreement are binding upon the Parties, successors and assigns of Parties hereto. Other
than assignment to an affiliate of the Owner or an entity owned or controlled by the
Owner, this Agreement cannot be assigned by Owner to anyone or any other entity which
is not an affiliate of the Owner, unless written permission is first granted by the City,
which permission shall be in the sole discretion of the City.
11. CLAIMS. During the Tern of this Agreement, the Owner agrees to hold the
City harmless from third-party claims, losses, damages, injuries, suits or judgments
062007AWS4#16325Ivs 3
pertaining to persons or property on the Premises against the City relating to Owner's
development of the Project.
12. INSPECTION BY CITY. Following the Project construction period, the
City shall have reasonable right to inspect the Project during regular daylight hours to
ensure that the improvements are constructed according to the teams of this Agreement.
13. NOTICES. Notices shall be in writing and shall be delivered by personal
delivery or certified mail addressed as follows:
To Owner:
Todd E. Piland
Executive Vice President
HEB Grocery Company, LP
646 South Main Avenue
San Antonio, Texas 78204
With copy to:
Stephen Golden
Golden Steves Cohen & Gordon LLP
300 Convent, Suite 2600
San Antonio,TX 78205
To City:
Kyle Hayes, City Manager
City of Beaumont
801 Main
Beaumont,TX 77701
14. GOOD FAITH EFFORTS. The City and Owner each agree to act in good
faith and to do all things reasonably necessary or appropriate to carry out the terms and
provisions of this agreement, and to aid and assist the other in carrying out such terms
and provisions in order to put the other in the same condition contemplated by this
Agreement.
15.TERMINATION BY OWNER. City acknowledges that the Owner does not
own the Premises as of the Effective Date, but has a contractual right to do so. If Owner
does not acquire the Premises, or elects not to proceed with the development of the
Project as contemplated by this Agreement, the Owner will notify the City in writing and
the obligations of the Owner and the City will be deemed terminated and of no further
force or effect as of the date of such notice, except those that expressly survive the
tennination hereof, if any.
062007.00754#163251 v5 4
lb. CITY AUTHORIZATION. This Agreement was authorized by resolution
of the City Council at its meeting on October 30, 2012 authorizing the City Manager to
execute the Agreement on behalf of the City.
17. OWNER AUTHORIZATON. This Agreement was authorized by the
Owner on or prior to the Effective Date.
18. BINDING AGREEMENT. This shall constitute a valid and binding
agreement between the City and the Owners when executed on behalf of said parties, for
the abatement of City ad valorem taxes in accordance therewith.
[Signatures on Following Page]
062007.(X)754 N 163251 v5 5
Effective this the day of 2012 (the "Effective
Date").
CITY OF BEAUMONT OWNER
By: By:
Kyle Hayes Todd E. Piland
City Manager Executive Vice President
HEB Grocery Company, LP
a Texas limited partnership
ATTEST: ATTEST:
Tina Broussard
City Clerk
002007.00754#163251 v 5 6
EXHIBIT A:
Premises
(See attached property descriptions)
MINOR PUT OF CMLM STIMT COWUN
Yd amwsai.Y..v.• ,+.m...a[a. U®V � = a� — _ — — .�
12t 1. i.
STATE OF TO" ZT=Z'
COUNTY or sDUUt
vAmwTY w
CITY PLANNM AND ZONM
CON1011"APPRO =41__
M t 1=1
Z=Z;
W7 I
10AM Acm Z:l__.V;l__il. Z =V:r:
SURVEYORS=701CAIE
ZLm I i !I xw
.R N
MINOR PLAT
PRELUMURY-NOT FOR RECORDIXG
OF A
10-1626 ACRE TRACT
OUT OF THE
M; DAVID BROWN SURVEY, ABSTRACT 5
I N
r, JEFFERSON COUNTY, TEXAS
3
INTO
LOT 1
COLLEGE STREET
COMPLEX
JEFFERSON COUNTY, TEXAS
SEP7U46M 201
ODEOM: HES GROCERY Comamy.LP
OMERSHIP OF DOCUMENTS
313m