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AI# 10674
Regular City Council Meeting
8.11.
04/26/2022:
Information
Agenda Item
Resolution - Finance:
Consider a resolution authorizing the Mayor to execute an industrial tax abatement agreement with Leprino Foods Company.
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 was 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 was approved at the April 12, 2022 City Council meeting.
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 contract is $76.5 million for real property improvements and $342 million for machinery and equipment. The company plans to create 300 new jobs by 2025.
The City Council approved the Notice of Intent to the other taxing jurisdictions at the April 12, 2022 City Council meeting and the notice was sent to the other taxing jurisdictions at least seven days prior to this Council meeting. Notice of the meeting at which the City Council would consider the Leprino Foods Tax Abatement Agreement, was given at least 30 days prior to the meeting, in the manner required by Chapter 551, Government Code.
The term of the contract is 10 years with 100% tax abatement for all 10 years.
Fiscal Impact
The estimated total amount of the City tax abatement will be $21,884,095 over the term of the abatement.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Resolution
DRAFT of Amended Tax Abatement Agreement
Exhibit A
Exhibit B
Exhibit C
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