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AI# 11765  Regular City Council Meeting 6.8. 07/25/2023:

Information

Agenda Item

Resolution - Business Development: Consider a resolution authorizing the Mayor to execute City Tax Abatement Agreement No. 17471, with Dura-Line, LLC.

Item Summary

The City of Lubbock received an application for an industrial tax abatement from Dura-Line, LLC, for real property improvements and the acquisition of new machinery and equipment.  The property was not located in an Enterprise Zone, so a Reinvestment Zone was required for the City Council to consider a tax abatement for the real property improvements and new machinery and equipment. The public hearing for the Reinvestment Zone and the First Reading of the Ordinance creating the Reinvestment Zone were held on the June 27, 2023 City Council meeting. The Second Reading of the Ordinance creating the Reinvestment Zone was approved at the July 11, 2023 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 $22,000,000 in improvements, and $32,500,000 in new machinery and equipment.  The City Council approved the Notice of Intent to the other taxing jurisdictions at the July 11, 2023 City Council meeting, and the notice was sent to the other taxing jurisdictions at least 7 days prior to this City Council meeting. Notice of the meeting at which the City Council would consider the Dura-Line, LLC Tax Abatement Agreement was given at least 30 days prior to this meeting, in the manner required by Chapter 551 of the Government Code.

Fiscal Impact

The estimated total amount of the City tax abatement will be $779,506 over the term of the 5-year, declining scale abatement.

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments Resolution

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