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AI# 10521
Regular City Council Meeting
15.
03/08/2022:
Information
Agenda Item
Resolution - Finance:
Consider a resolution giving Notice of Intent to consider the designation of a Reinvestment Zone on the Leprino Foods property.
Item Summary
The City of Lubbock has received an application for industrial tax abatement from Leprino Foods, for the construction of a new facility and acquisition of machinery and equipment. The property is not located in an enterprise zone, so it would require that a reinvestment zone be created at the location of the facility, in order to consider a tax abatement in a reinvestment zone.
The project meets the Industrial Tax Abatement Policy and Guidelines minimum investment, for a new company of $1,000,000 in real property improvements. Total investment in the project will be $76.5 million for real property improvements and $539.2 million for machinery and equipment.
Since the site is not in an Enterprise Zone, several additional steps are added to the process to accommodate the creation of the reinvestment zone. The proposed steps and the proposed council meetings that they will be on are:
Notice of intent to create a reinvestment zone that will be sent to other taxing jurisdictions (March 8, 2022 City Council meeting).
Public hearing to determine if the improvements sought are feasible and practical and would be a benefit to the land to be included in the zone and to the municipality after the expiration of any tax abatement agreement. At the hearing, any interested persons will be entitled to speak and present evidence for and against the designation (March 22, 2022 City Council meeting).
Adopt an ordinance designating the reinvestment zone (1
st
Reading, March 22, 2022 City Council meeting and 2
nd
Reading, April 12, 2022).
Notice of Intent to enter into a tax abatement agreement (April 12, 2022 City Council meeting).
Consideration of a tax abatement agreement (April 26, 2022 City Council meeting).
This item is the first step in the process and is for the consideration of the notice of intent to other taxing jurisdictions, that the City of Lubbock is having a public hearing to consider the designation of a reinvestment zone on the Leprino Foods property.
Fiscal Impact
The cost of designating the reinvestment zone is appropriated in the Business Development Adopted FY 2021-22 Operating Budget.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Resolution and Exhibit A
Exhibit B
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