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AI# 11616
Regular City Council Meeting
6.8.
05/23/2023:
Information
Agenda Item
Resolution - Business Development:
Consider a resolution giving Notice of Intent to enter into and execute a Tax Abatement Agreement with X-FAB Texas, Inc., with said notice to be given to the presiding officers of each taxing unit having jurisdiction in assessing taxes on the property located at 2301 North University Avenue.
Item Summary
The City of Lubbock received an application for industrial tax abatement from X-FAB Texas, Inc. for the acquisition of new machinery and equipment at their current Lubbock, Texas manufacturing facility. 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 machinery and equipment. The public hearing for the reinvestment zone and the first reading of the ordinance creating the reinvestment zone were on the May 9, 2023 City Council meeting. The second reading of the ordinance creating the reinvestment zone is included on this City Council meeting agenda of May 23, 2023.
The project meets the Industrial Tax Abatement Policy and Guidelines minimum investment for an existing company of $1,000,000 in new personal property. Total investment in the project will be $200,000,000 for machinery and equipment.
In order to contract with a company for a 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
Notice of Intent
Exhibit 1
Exhibit 2
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