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AI# 10608
Regular City Council Meeting
7.6.
04/12/2022:
Information
Agenda Item
Resolution - Finance:
Consider a resolution giving Notice of Intent to enter into and execute a Tax Abatement Agreement with Leprino Foods, with said notice to be given to the presiding officers of each taxing unit having jurisdiction in assessing taxes on the property located at 4301 East 19th Street and 4502 East 4th Street.
Item Summary
The City of Lubbock received an application for industrial tax abatement from Leprino Foods Company for the construction of a new facility and acquisition of machinery and equipment. The property is not located in an enterprise zone, so a reinvestment zone is required for the City Council to consider tax abatement for the facility, machinery, and equipment. The public hearing for the reinvestment zone and the 1st reading of the ordinance creating the reinvestment zone, were on the March 22, 2022 City Council meeting. The 2nd reading of the ordinance creating the reinvestment zone is included on this City Council meeting agenda of April 12, 2022.
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. The company plans to create 300 new jobs by 2024.
In order to contract with a company for tax abatement, the municipality must first deliver a Notice of Intent to enter into a Tax Abatement Agreement to the other taxing jurisdictions, with a draft of the proposed contract attached. If approved, this Notice of Intent will be mailed to the other taxing jurisdictions which fulfills this requirement. Notice of the meeting that the municipality will consider a tax abatement, is also required 30 days prior to the meeting.
Fiscal Impact
None
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Resolution - Tab Abatement, Leprino
Notice of Intent - Tax Abatement, Leprino
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