HomeMy WebLinkAboutO-2006-2956
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: November 6, 2006
Budl!et
Requested By: John Joerns
Source of Funds:
Department:
Administration
Account Number:
Report:
Resolution:
Ordinance:
x
Amount Budgeted:
Exhibits:
Ordinance 2006-
Amount Requested:
Tax Abatement Agreement
Budgeted Item: YES NO
Exhibits:
Exhibits: "A" La Porte Guidelines and Criteria Governing
Tax Abatement Agreement
Exhibits "B" Preferred Freezer Application for Tax Abatement
Exhibits "C" Legal Meets and Bounds Description
Exhibits Letters of Notice to San Jacinto College District, Harris County Commissioners Court and LPISD
SUMMARY & RECOMMENDATION
On October 23,2006 City Council approved a Public Hearing date for establishing a Reinvestment Zone and
authorized staff to publish said Public Hearing date and provides notice to other taxing entities as prescribed by
Chapter 312 of the Texas Tax Code for Preferred Freezer.
At the November 6, 2006 City Council meeting the Public Hearing was held and Ordinance 2006-_ was approved
by Council designating a 10.115 Ac tract as La Porte Reinvestment Zone "C" - "Preferred Freezer Services Houston
Port, LLC."
This Public Cold Storage Distribution Center is contracted to add $10,483,492 in value and create 35 new jobs
within the City of La Porte.
With assistance from Harris County Office of Econornic Development, the staff has reviewed the application for
conformance with the City's guidelines and prepared a Tax Abatement Agreement for Council's consideration.
The application and proposed abatement agreement meet the city's established guidelines.
Action Required bv Council:
Approve ordinance 2006-_ authorizing a Tax Abatement Agreement between the City of La Porte and
Preferred Freezer Services Houston Ports, LLC. for real Property located in the La Porte Reinvestment Zone "C".
1~f~6
Date
ORDINANCE NO. 2006- c:< Cf$k>
AN ORDINANCE APPROVING AND AUTHORIZING A TAX ABATEMENT
AGREEMENT BETWEEN THE CITY OF LA PORTE AND PREFERRED FREEZER
SERVICES HOUSTON PORT, LLC., A DELAWARE CORPORATION, FOR REAL
PROPERTY LOCATED IN THE LA PORTE REINVESTMENT ZONE C; MAKING
VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN
EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby approves and authorizes the contract, agreement, or
other undertaking described in the title of this ordinance, a copy of which is on file in the office
of the City Secretary. The City Manager is hereby authorized to execute such document and all
related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to
attest to all such signatures and to affix the seal of the City to all such documents.
Section 2. The City Council officially fmds, determines, recites, and declares that a
sufficient written notice of the date, hour, place and subject of this meeting of the City Council
was posted at a place convenient to the public at the City Hall of the City for the time required by
law preceding this meeting, as required by the Open Meetings law, Chapter 551, Texas
Government Code; and that this meeting has been open to the public as required by law at all
times during which this ordinance and the subject matter thereof has been discussed, considered
and formally acted upon. The City Council further ratifies, approves and confirms such written
notice and the contents and posting thereof.
Section 3. This Ordinance shall be effective from and after its passage and approval, and
it is so ordered.
PASSED AND APPROVED, this 6th day of November, 2006.
~tyofLapo. rte'2>
~L,,\~
Alton E. Porter, Mayor
By:
ATTEST:
~M~tlAd
Martha A. Gillett
City Secretary
APPROVED:
~r~~
Knox W. Askins /
City Attorney
EXHIBIT
"A"
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r ,
EXHIBIT "A"
ORDINANCE NO. 2005- ~.irft
AN ORDINANCE AMENDING THE CODE OF ORDlNANCES OF THE CITY OF LA
PORTE BY REPEALING ARTICLE V GUIDELINES AND CRITERIA GOVERNING TAX
ABATEMENT AGREEMENTS BY THE CITY OF LA PO~TE, SECTIONS 66-140
THROUGH 66-152 AND ADDING. ARTICLE V GUIDELINES AND CRITERIA
GOVERNING TAX ABATEMENT AGREEMENTS BY THE CITY OF LA PORTE,
SECTIONS 66-140 THROUGH 66-151lNCLUSIVE; FINDlNG CO:MPLIANCE WITH THE
OPEN :MEETJNGS LAW; AND PROVIDING AN EFFECTIVE DATE HEEtEOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council of the City of La Porte hereby amends the Code of
Ordinances of the City of La Porte by repealing Article V. "Guidelines and Criteria Governing
Tax Abatement Agreements by the City of La Porte", Sections 66-140 through 66-152 and
adding Article V. "Guidelines and Criteria Governing Tax Abatement Agreements by the City of
La Porte", Sections 66-140 through 66-151 inclusive, as follows, to-wit:
ARTICLE V. GUIDELINES AND CRITERIA
GOVERNING TAX ABATEMENT AGREEMENTS
Section 66-140. REDEVELOPMENT TAX ABATEMENT AUTHORIZED.
(1) Cr~ation of Reinvestment Zones.
(a) A property tax abatement program is hereby created to be administered in accordance with
V. T.e.A., Tax Code Ch. 312, as amended from time to time. Tax abatement shall only be allowed
in a reinvestment zone.
(b), Reinvestment zones in the city for this purpose will be considered for designation by city
council upon the recommendation of the City Manager's Office. The city council may approve the
creation of these reinvestment zones on it zone-by-zone basis after a public hearirig before the city
council. Following the public hearing the city council may consider the ordinance creating a new
reinvestment 'zone in the proposed area.
( c) The city council, may not adopt an ordinance designating a reinvestment zone until it has held
a pUblic hearip.g at wlllch interested persons are entitled to speak and present evidence for or against
the designation. Notice of the hearing shall be given at least seven days prior to the hearing. The
presiding officers of eligible jurisdictions shall be notified in writing at least seven days prior to the
hearing.
. . A notice of th~ public hearing shall be given to other affected taxing jurisdictions, published
in the legal classifi~d section of the local daily newspaper having general circulation, and posted in
other places as deemed appropriate, including notice to civic associations in the area surrounding
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the proposed zone, at least seven days prior to the hearing. The notice shall contain the locatio~
time, and place of the public hearing and a description of the proposed boundaries of the
reinvestment zone.
(d) The designation of such a zone by ordinance shall constitute aD. affirmative finding by the city
council that the improvements sought to be constructed or repairs to be made within the zone are
feasible and practical and would be of benefit to the land to be included within a zone and to the
city.
(e) In determining whether an area qualifies as a reinvestment zone for the property tax
abatement program, the city council shall use anyone or more of the following criteria as
guidelines:
(1) The area substantially impairs or arrests the sound growth of the city; retards the
provision of housing accommodations, or constitutes an economic or social liability and is a
menace to the public health, safety, morals, or welfare in its present condition and use by .
reasons of the presence of substantial nUmber of substandard, slum, deteriorated, or
deteriorating structures, predominance of defective or inadequate sidewalks or street layout;
faulty lot layout in relation to size, accessibility, or usefulness, unsanitary or unsafe
conditions; deterioration of site or other improvements; tax or special assessment
delinquency exceeds the fair value of the land; defective or unusual conditions of title; the
existence of conditions that endanger life or property by fire or other cause; or any
combination of these factors or conditions.
(2) The area is predominantly open and, because of obsolete platting or deterioration of
structures or site improvements or other factors, substantially impairs or arrests the sound
growth of the city. . .
(3) The area has been designated a local or state-federal enterprise zone under the Texas
Enterprise Zone Act.
(4) The area is located wholly within an eligible blighte4 area, as identified from time to
time by city council.
(5) There has been a demonStration of community interest and there is eVidence that
substantial nUmber of owners of taxable real property in the reinvestment zone will
participate in such a program.
(6) Be reasonably likely as a result of the designation to contribute to the retention or
expansion of primary employment or to attract major investment in the zone that would be a
benefit to the property and that would contribute to the economic development of the city.
(f) The goals and objectives expressed above and the standards and restrictions expressed in
V.T.C.A.) Tax Code Ch. 312, as amended, are not exhaustive and shall be supplemented by such
.fPrther ~d additional goals, objectives, rules, standards and restrictions as the city council may
from time to time impose.
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(g) The designation of a reinvestmenf zone hereunder shall expire five years after the date of its
designation and may be renewed for periods not to e:{Cceed five years. The expiration of a
designation, however, shall not affect existing agreements entered. into pursuant to section 66-140 or
section 66-145 of this chapter,
(2) Agreement for property tax abatement.
(a) Upon designation of a reinvestment zone, the city may'enter into property tax. abatement
agreements with interested owners of taxable real property located within the rei..TJ.vestment zone.
. The agreement shall be coD;ditioned on the owner of the property making certain improvement or
repairs to the property as outlined in Section 66-143, Application.
(b) In addition to the guidelines and criteria contained herein, to be eligible for tax abatement the
planned improvement:
(1) Should provide an economic benefit to the city, taking all relevant factors into
consideration, including (i) size of the ab&tement, (ii) income from sales tax and
franchise fees generated by the planned improvement, and (iii) any additional
expense to the city services as a result of the improvement; and
(2) Must be necessary because capacity cannot be provided efficiently utilizing
existing improved property when reasonable allowailce is made for necessary
improvements; and
(c) Property in a reinvestmen,t zone that is owned or leased by a member of the city council or by
a member of the city planniri.g coli1.mission is excluded from property tax abatement.
(d) The city may enter into a property tax abatement agreement with the interested owners of
taxable real property for improvements Or repairs completed before the city's approval of the tax.
abatement agreement if:
(1) . The applicant has complied with the reqvirements of section 66:..143; and
(2) The applicant provides evidence of good cause as to why the city shouid grant
tax abatements for improvements or repairs completed before the city's approval of
the tax abatem~nt agreement; and
(3) The agreement is consistent with the requirements of subsections (a) through
(c) above, except as provided in paragraph (2) of this subsection.
Notwithstanding any other provision of this section, for tax abatement agreements approved
under this subsection (d), city council shall determine the year that property tax abatement shall
.begin.
Section 66-141. DEFINITlONS
(a) "Abatement" means the full or partial exemption from ad valorem taxes of certain
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real property (including fixed-in-place machinery & equipment) in a reinvestment
zone designated for economic development purposes.
(b) "Eligible Jurisdiction" means the city and any school district, college district or
other taxing district eligible to abate its taxes according to Texas law that levies ad
valorem taxes upon and provides services to property located within the proposed or
existing reinvestment zone.
(c) "Agreemene mean.$ a contractual agreement between a property owner and/or lessee
and an eligible jUrisdiction for the purposes of tax abatement.
(d) "Base Year Value" means the assessed value of eligible property on January I
preceding the execution of the agreement plus the agreed upon value of eligible
propertY improvements made after January 1, but before the execution of the
agreement, or the sales price, if the property was conveyed subsequent to January 1,
whichever is greater.
(e) "Competitively-Sited Project" means a project where the applicant has completed a
written evaluation of competing locations for expansion, relocation, or new
operations, including identification of specific sites in those locations.
(f) "Department" shall mean the department offinance of the city.
(g) "Economic Life" means the number of years a property improvement is expected to
be in service in a facility.
(h) "Employee" means a person whose employment is both permanent and fulltime,
who works for and is an employee of the Owner or an employee of a Contractor, who
works a minimtlm of 1,750 hours pet year exclusively within the Zone, who receives
industry standard benefits, and whose employment is reflected in the Owner's (and
Contractor's, ifapplicable) quarterly report filed with the Texas Workforce
Commission; but excluding any direct contract (seasonal, part-time, and full-time
equivalent).
(i) "Expansion" meanS the addition of buildings, structures, fixed machinery or
equipment for purposes of increasing production capacity.
CD "Facility" means property improvements completed or in the process of construction
which together comprise an integral whole.
(k) "Manufacturing Facility" means buildings and structures, including fixed-in-place
machinery and equipment, the primary purpose of which is or will be the manufacture
of tangible goods or materials or the processing of such goods or materials by physical
or chemical change.
(1) ''New Facility" means a property, previously undeveloped, which is placed into
service by means other than or in conjunction with expansion or modernization. .
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(m) "Other Basic Industry Facility" means buildings and structures including fixed
machinery and equipment not elsewhere descnbed., used or to be used for the
production of products or services which primarily serve a market in the creation of
new permanent employment and bring in new wealth.
(n) "Owner of taxable real property" shall mean the person, corporation, company
or other entity responsible for paying property taxes on certain property or an
inter~st therein inciuding a leasehold interest or interests.
(0) "Regional Distribution Center F acility" means buildings and structures, including
fixed machinery and equipment, used orto be used primarily to receive, store,
service or distribute goods or materials owned by the facility operator where a
majority oithe goods or services are distrlbuted to points outside the city.
(P) "Regional Enterta.inn;lent Facility" means buildiIigs and structures, including fixed
machinery and equipment, used or to be used to provide entertainment through the
admission of the general public where the majority of users reside outside the city.
(q) "Regional Service Facility" means buildings and structures, including fixed
m~chinery and equipment, used or to be used to service goods wh~e a majority of the
goods being serviced originate outside the city.
(r) "Research Facility" means building and structures, including fixed machinery and
equipment, used or to be used primarily for research or experimentation to improve or
develop new tangible goods or materials or to improve or develop the production
processes thereto.
(s) "Research and Development Facility" means buildings and structures, including.
fixed-in-place machinery and equipment, used or to be used primarily for research or
experimentation to improve or develop current technology in biomedicine, electronics
or pre-commercial emerging industries.
Section 66-142~ ABATEMENT AUTHORIZED
(a) Authorized Facility. A facility may be eligible for abatement if it is a: Manufacturing
Facility, Research Facility, Regional Distribution Center Facility, Regional Service
Facility; Regional Entertainment Facility, Research and Development Facility or
Other Basic Industry.
(b) Creation ofN ew Value. Abatement may only be granted for the additional value of
eligible real property (including fixed-in-place machinery and equipment) listed in an
abatement agreement between the City and the property owner and lessee (if
required), subject to such limitations as City Council and the property tax
code may require.
(c) New and Existing Facilities. Abatement may be granted for new facilities, the
expansion of existing facilities, or the improvement to existing facilities having the
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effect of improving current environmental conditions.
(d) Eligible Property. Abatement may be extended to the value of buildings, structures,
fixed machinery and equipment, site improvements plus that office space and related
fixed improvements necessary to the operation and administration of the facility. The
value of all property shall be the Certified Apprai&ed Value for each year, as finally
determined by the County Appraisal District ("HeAD").
( e) Inelig101e Property. The following types or property shall be fully taxable and
ineligible for abatement: land; inventories; supplies; tools; furnishings, .and other
forms of movable personal property; vehicles; vessels; aircraft; housing; hotel
accommodations; deferred maintenance investments; property to be rented or leased
(except as provided in the Section 66-142(f), ~~OwnedJLeased Facilities");
property which has an economic life of less than 15 years; property owned or used
by the State of Texas or its political subdivisions or by any organization owned,
operated or directed by a political subdivision of the State of Texas, or any
property exempted by local, state or federal law. When such exempted property
includes manufacturing machinery and equipment listed in the Investment
Budget (as required in Section 3, "Application"); then the value of such property
may not be included toward the achievement of the investment or valuation thresholds
set out in the Tax Abatement Agreement.
(f) OwnedlLeased Facilities. If a leased facility is granted abatement the agreement shall
be executed with the lessor and the lessee.
(g) Value and Term of Abatement. A tax abatement shall be granted in accordance with
the terms of a Tax Abatement Agreement, as follows:
L Either with the January 1st valuation date immediately following the date of
ex<?cution of the agreement or a subsequent January 1st valuation date not more
than three years after execution of a tax abatement agreement, but not beyond
the completion of construction. Projects are eligiblefor apatement of new
value, subjeCt to an abatement cap: to be calcu1ateQ. as $1,000,000 per job
created/retained times the number of such jobs as required in the abatement
agreement. Such cap shall not exceed the increased value requirement as set out
in the abatement agreement, and will be adjusted annually (as set out in Section
66-142 (j), "Taxability"). Under no circumstances will any facility be granted the
benefit of a tax abatement for longer than ten (10) years. Value subject to abatement
must remain greater than or equal to the contractually-defined ''1\1in.in:ium. Value
RequiremeIit."
To determine the amount of each year's ex~mption, the adjusted cap shall be multiplied by
a sliding scale as follows:
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1-3 Including Construction
4
5
6
7-10
Percentae:e of Value for Proiects
Creating or Maintaining a Minimum
of25 Full-time Emplovees
100%
80%
60%
40%
20%
Percentage of Value forProiects
Creating or Maintaining a Minimum
of 10 Full-time Emplovees
50%
40%
30%
20%
.10%
Year Abated
2. No tax. abatement shall be given in any year in which the facility fails to meet
The contra:ctually defined "Minimum Value Requirement."
3. All Tax. Abatement Agreements shall set out in detail the exact method to be
used !n computing each year's exemption.
4. No tax abatement shall be given in any year in which the facility fails to meet
the employment minimuin set forth in Section 66-1 42(h), "Basic Qualifications for
Tax. Abatement."
(h) Basic Qualifications for Tax Abatem.ent. To be eligible for designation as a
reinvestment zone and r.eceive tax abatement the planned improvement:
1. muSt be shown to increase the assessed value of the property at least $1.0
million upon completion of the contractually-defined. "Construction Period;"
2. must be shown to directly create or prevent the loss of permanent full-time
employment for at least 10 people within the rem vestment zone upon completion of
the contractually-defined "Employment Period;"
. .
3. must be shown not to solely or primarily have the effect of transferring
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employment from one part of City to another.
4. the Citymay, at its discretion, take into account alternative or competing site
information provided with the application for tax abatement.
(i) Research and Development Projects. If the planned project improvement is for a
research and development facility, in order to be eligible for tax abatement the
planned improvement:
L must be reasonably expected. to increase the value of the property by a
minimum amoUnt of $500,000 upon the compietion of coIistruction, and
2. must be expected to create permanent employment for at least five people on a
permanent basis iri. the designated zone, provided that this employment
qualification shall take effect no more than two years after the effective date of
the agreement and cOntinue through the term of the agreement. The abatement
period shall not exceed five years from the effective date of abatement and the
. percentage of va hie to be abated shall be up to 100 percent of new value
throughout the abatement period, subject to a maximum abatable new value of
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$1,000,000 per job created/retained.
G) Taxability. From the execution of the abatement to the end of the agreement period,
taxes shall be payable as follows:
1. value of ineligible property (as provided in Section 66-142 ( e), "Ineligible
Property,") shall be fully taxable;
2. the non abatable real property within the reinvestment zone shall be fully
taxable each year; ,
3. additional value of new eligi,bleproperty shall be t~able in the manner
described in Section 66-142 (g), 'CYalue and Term of Abatement;"
4. when due to the employment formula (as described in Section 66-142 (g), ''Value
and Term of Abatement,"), the maximum amount eligible for abatement ("the cap")
is less than the total value of the new facility, the amount of the cap will be
reduced each year at the same rate as the taxable improvements are reduced in
valu~ from the previous year' s value; and
5. each year's exemption will be computed by HeAD in the following manner:
(a) The Base Property Value will be the current value of all real property
plus fixed-in-place machinery and equipment within the zone that is
not subject to abatement 0
(b) The Basoe Year Value will be subtracted from the value of the Abated
Property plus the Base Property Value, the result to be called CuIrent
AmoUnt Eligible for Abatement. In no case can this amount exceed the
cap set'out in the abatement contract.
(c) The Current Amount Eligible fOf Abatement is then multiplied by
the abatement schedule set out in section 66-142 (g) to
determine the ainount of each year's exemption.
(Ie) Environmental and Worker Safety Qualification. In determining whether to grant
a tax. abatement, consideration will be given to compliance with all state and federal
laws designed to pretect human health, welfare and the environment ("environmental
laws") that are applicable to all facilities in the State of Texas owned or operated by
the owner of the facility or lessee, its parent, subsidiaries and, if a joint venture or
partnership, every member of the joint venture or partnership ("applicants").
Consideration may also be given to compliance with environmental and worker safety ,
laws by applicants at other facilities within the United States.
Section 66-143. APPLICATION
(a) Timely application: Any current or potential owner or lessee of taxable property in
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City must request a tax. abatement by :filing a completed application with the City prior to any
public expression of a siting decision or any commitment (legal or financial) to the proposed
project. .
(b) A complete application package for consideration of a tax abatement shall consist of:
. a completed City Application form;
. a completed narrative prepared in accordance with the template provided with
the City Application and its instructions;
· an "Illvestment Budget" detailing components and costs of the real property
improvements .and fixed-in-place iI,nprovements 'for which tax abatement is
requested~ including type, number, economic life, and eligIoility for a tax
exemption granted by the Texas .Commission on Environmental Quality
("TCEQ") (ifknown); .
· a map and legal description of the property;
· a time schedule for undertaking and completing the proposed improvements;
· a ten-year enviroD.n1ental and worker safety compliance history for all facilities
located within the State of Texas and owned in wbple or in part by applicants (as
defined in Section 66-142(k), ''Environmental and Worker Safety Qualification");
· a copy of the evaluation of competing locations, as described in Section 66-141,
"Definitions,"
· information pertaining to the reasons that the requested tax abatement is
necessary to ensure that the proposed project is built in City (i.e., documentation
supporting assertion that '~ut for" a tax abatement, the stated project could
not be constructed in City);
· copie~ of the itnmediately preceding quarterly report(s) filed with the Texas
Workforce Commission, documenting the current number ofperm31;lent full-
time employees, and full-time Contractor employees, if any, at the time the
application is submitted;
· finanCial and other information, as the City deems appropriate for evaluating
, the financial capacity and other factors of the applicant;
· certification prepared by City Tax Assessor-Collector stating that all
tax accounts within City are 'Paid on a current basis;
. fOr a leased facility, .the applicant shall provide with the application the name
and address of the lessor and ~ draft copy of the proposed lease, or option
contract. In the event a lease or option contract has already been executed with
owner of site, the document must include a provision ,whereby abatement
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applicant may terminate such contract without penalty or loss of earnest money,
in the even.t that City does not grant a tax abatement.
(c) Upon receipt of a completed application, the City shall notify in writing and
provide a copy of the application to the presiding officer of the governing body of
each eligible taxing jurisdiction.
(d) After receipt of an application for creation of a reinvestment zone and application for
abatement, the City shall.determine whether the application qualifies for a tax
abatement under the terms of these guidelines and criteria Such detenrllnation may
be delegated to an employee or City department. If it is determined that an
application qualifies for abatement, it shall be recommended to the City Council
that the applicant be notified in writing that subject to a public hearing, if applicable,
and approval of a contract by City Council, the project qualifies for abatement.
(e) The City shall not establish a reinvestment zone or enter into an abatement
agreement if it finds that the request for the abatement was filed after the
commencement of construction, alteration, or installation of improvements related to
a proposed modernization, expansion or new facility. Property eligible for abatement
includes only the new improvements that occur after the completion of an abatement
agreement with City.
Section 66-144. PUBLIC BEARING AND APPROVAL
(a) The City Council may not adopt an ordinance designating a reinvestment
zone for the purposes of Considering approval of a tax abatement until it has held a public
hearing at which interested persons are entitled to speak and present evidence for or
ag~t the designation. Notice of the hearing shall be clearly identified on the City
Council agenda at least 10 days prior to the hearing. The presiding officers of
eliglole Jurisdictions shall be notified in writing at least 7 days prior to the hearing.
(b) At the public hearing, interested persons shall be entitled to speak and present written
materials for or against the approval of the proposed project or tax abatement agreement.
(c) In order to enter into a tax abatement agreement, the City Council must find that
the terms of the proposed agreement meet these Guidelines and Criteria and that:
1. there will be no substantial adverse effect on the provision of the
jurisdictions' service or tax base; and
2. the planned use of the property will not constitute a hazard to public safety,
health or morals.
Any variance to these guidelines must be approved by a vote of at least three-fourths (3/4)
of the City Council.
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Section 66-145. AGREEl\1ENT
After approval the City shall formally pass an ordinaIlce and execute an agreement with the
owner of the facility and lessee as required which shall include:
(a) estimated value to be abated and the base year value;
(b) percent of value to be abated each year as provided in Section 66-142 ("Abatement
Authorized); .
( c) the commencement date and the termination date of abatement;
(d) the proposed use of the facility; nature of construction., time schedule, survey,
property description and improvement list;
(e) contractual obligations in the event of default, violation ofterms or conditions,
delinquent taxes, recapture, anministration and assignment as provided in Section 66-142
("Abateinent Authorized"), Section 66-146 ("Recapture"), Section 66-147
("Administration"), and Section 66-148 ("Assignment"), or other provisions that may be .
required for uniformity or by state law;
(f) amount ofinvestrnent, increase in assessed value and number of jobs mvolved,.as
provided in S~tion 66-142 ("Abatement Authorized");
(g) a requiremeJ?t that the applicant annually submit to HCAD and City, a January
employee count for the abated facility which corresponds to employment counts
reported in the facility's Employer's Quarterly Report' to the TexaS Workforce
Commission for the quarter most recently ended at calendar year....end, and a separate
notarized letter certifying the number of jobs created or retained as a. direct result of
the abated improvements. and the number of employees in other facilities located
within the City and the compliance with the environmental and w<;>rker safety
requirements in. the agr~ent-fqt the pr~g calendar year, for as of January 1.
Submission shall be used to determine abatement eligibility for that year and shall be
subject to audit if requested by the governing boqy. Failure to submit will result in the
ineligibility to receive an abatement for that year; and
(h) A requirement that the owner or lessee will (a) obtain and maintain all required
permits ~d other authorizations from the United States Environmental Protection
Agency and the TCEQ for the construction and operation of its facility and for the
storage, transport and disposal of solid waste; and (b) seek a perniit from the TCEQ
for all grandfathered units on the site of the abated facility by filing with the TCEQ,
, within three years of receiving the abatement, a technically complete application for
such a permit.
(i) Amount of investment and total permanent employees to be retained. or created
and total full-time equivalent jobs to be retained or created.
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G) A requirement that the company, on or before February 1 of each year the tax
abatement agreement is in effect, provide the director a sworn statement that includes
a delineation of the number of permanent employees; contract employees and part-time
employees of the applicant company as of the iinmediately preceding January 1, who
report to work in the reinvestment zone at each site covered by the agreement.
(k) A requirement that the company annually :file the Form i 11.28 with the appropriate
County appraisal district to qualify for the abatement.
(1) Limit the uses of the property consistent with the general purpose of encouraging
development or redevelopment of the zone during the period that property tax
exemptions are in effect.
(m) Contain each term agreed to by the owner of the property.
(n) Reqlli!e the owner of the property to certify annually to the governing body of each
taxing-unit that the owner is in compliance with each applicable term of the agreement.
(0) Provide that .the gov~rning body of the municipality may cancel or modify the
agreement if the property owner fails to comply with the agreement.
Such agreement normally shall be executed within 60 days after the applicant has forwarded
all necessary information and documentation to the City
Section 66-146. RECAPTURE
(a) If the facility is completed and begins producing product or service, but subsequently
diScontinues producing product or service for any reason for a period of 180 days
during the abatement period, or one year in the event of natural disaster, then the
agreement-shaIl ten'ninate ami so shall the abatement of the taxes for the calendar year
during which the facility no longer produces. The taxes otherwise abated for that. .
calendar year shall be paid to the City within sixty (60) days from the date of
termination. The company or individual shall notify the City in writing at the address
stated in the agreement within ten (10) days from any discontinuation, stating the
reason for the diSContinuation and the projected length of the discontinuation. If the
City determines that such requirement has not been complied with, the agreement
may be terminated i.nJ.?1ediately and all taxes previously abated by virtue of the
agreement may be recaptured and paid within sixty (60) days of the termination.
(b) Ifth.e company or individual is in default according to the terms and conditions of its
agreenient; the company or individual shall notify the City in writing at the address
stated in the agreement within ten (10) days from the default, and cure such default
witbin sixty (60) days from the date of the default ("Cure Period"). If the City
determines that such requirement has not been complied with, the agreement may be
terminated immediately and all taxes previously abated by virtue of the agreement
may be recaptured, together with interest at 6% per annum calculated from the
effective date of the agreement and paid within sixty (60) days of the termination. If
- 12 -
. .
the City'does not receive full payrilent within said sixty (60) days, a penalty may be
added, equal to 15% of the total amount abated.
(c) If the company or individual allows its ad valorem taxes owed the City to become
delinquent and fails to timely and properly follow the legal procedures for its protest
. and/or contest, the agreement then may be terminated, and all taxes previously abated
by the agreyment may be recaptured and paid within sixty (60) days of the
termination, and penalties and interest may be assessed as set out in Section 66-146
(''Recapture'').
Section 66-147. ADl\1INISTRATION
(a) The Chief Appraiser of the County annually shall determine an assessment of the real
and personal property comprising the reinvestment zone. Each year, the company or
individual receiving abatement shall furnish the assessor with such information as
may be necessary for the' abatement. Once value has been established, the Chief
Appraiser shall notify the affected jurisdictions, which levies taxes of the amount of
the assessment.
(b) The agreement shall stipulate that employees and/or designated. representatives of the
City will have access to the reinvestment zone during the term of the abatement to
inspect the facility to determine if the terms and conditions of the agreement are being
met. All inspections Will be made only after giving twenty-four (24) hours prior
notice and will only be conducted in such maimer as to not unreasonably interfere
with the construction and/or operation of the facility. An inspections will be made
with one or more representatives of the company or individual and in accordance with
the facility's safety standards.
( c) Upon completion of construction, the City or the jurisdiction creating the
reinvestment zone annually shall evaluate each facility receiving abatement to ensure
compliance with the agreement and report possible violations to the contract and
agreement to the City Council and the City Attorney and the affected jurisdictions which
levy taxes.
Section 66-148. ASSIGNMENT
A tax abatement agreement may be assigned to a new owner or lessee of a facility with the written
consent of the City Council, which consent shall not be unreasonably withheld. Any assignment
shall provide that the assignee shall irrevocably and unconditionally assume all the duties and
obligations of the assignor upon the same terms and conditions as set out in the agreement. AIiy
assignment of a tax abatement agreement shall be to an entity that continues the same improvements
or repairs to the property (except to the extent such improvements or repairs have been completed),
and continues the same use of the facility as stated in the original Tax Abatement Agreement with
the initial applicant. No assignment shall be approved .if the assignor or the assignee is indebted to
the City for past due ad valorem taxes or other obligations. .
- 13-
Section 66-149. SUNSET PROVISION
(a) These Guidelines and Criteria are effective February 14, 2005, and will remain in force until
January 31, 2007, at which time all tax abatement contracts created pursuant to these provisions
will be reviewed by the City to determine whether the goals have been achieved. ,Based on
that review, the Guidelines and Criteria will be modified, renewed, or eliminated. ,
(b) This policy is mutually exclusive of existing Industrial" District Contracts and owners
of real property in areas deserving of special attention as agreed by the affected
jurisdictions.
Section 66-150. LIMITATIONS
The adoption of the guidelines and criteria by the city council of :the City of La Porte
does not:
(l) Limit the discretion of the city, council of the City of La Porte to decide
whether to enter into a specific tax abatement agreement;
(2) Limit the discretion of the city council of the City of La Porte to delegate to its
employees the authority to determine whether or not the governing body should
consider a particular application or request for tax abatement; or
(3) Create any property, contract, or other legal right in any person to have the city
council of the City of La Porte consider or grant a specific application or 'request for
tax abatement
Section 66-151. NONAPPLICABLE AREAS; EXCEPTION
, The city council of the City of La Porte hereby establishes the policy of the City of La Porte,
that tax abatement agreement applications will not be accepted for areas within the any existing
Industrial District. or Tax Increment Reinvestment Zone of the City of La Porte or any Industrial .
bistrict or Tax Increment Reinvestment Zone, which may be created. However, as to any portion of
such areas which are not within the corporate limits of the City of La Porte, Harris County
COmpllssioriers Court may establish tax abatement agreements for the benefit of itself; and taxing
units other than the City of La Porte having jurisdiction over said area.
Section 2. The City Council officially finds, determines, recites, and declares that a
sufficient written notice of the date, hour, plac~ and subject of this meeting of the City Council
was posted at a place convenient to the public at the City Hall of the City for the time required by
law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas
Government Code; and that this meeting has been open to the public as required by law at all
- 14 -
- ../
.
'.
times. during which this ordinance and the subject matter thereofhas been discussed, considered
and formally acted upon. The City Council further ratifies, approves and confirms such writte:p.
notice and the contents and posting thereof
Section 3. This Ordinance shall be effective from and after its passage and approval.
PASSED AND APPORVED this 14th day of February, 2005.
CITY OF LA PORTE
Bl"~CY~
Alton E. Porter
Mayor
ATTEST:
v.l{tJ) IU .JIIU--l~)Lf!J}
Martha A. Gillett
City Secretary
APPROVED: ~
~.
Knox W. Askins .
City Attorney
- 15 -
EXHIBIT
"B"
Application for Tax Abatement
-La Porte, Texas-
Prior to any public expression of a decision or any commitment (legal or financial) to the proposed project by applicant, a
completed original of this application, including supporting documentation of competitive siting and narrative impact statement,
must be submitted to the City of La Porte, 604 West Fairmont Parkway, La Porte, TX 77571. This application will become part
of the Tax Abatement Agreement and any knowingly false representations will be grounds for terminating the application
and/or voiding the agreement. The City will forward copies to other taxing jurisdictions, as may be required by Texas statute.
PART I. APPLICANT INFORMATION
Application Date _8-"_16_L06_
Company Name: Preferred Freezer Services
Headquarters Address: 360 A venue P Newark, NJ 07105
Local Address: 10000 Porter Rd. La Porte, TX Annual Sales: $79 million
Local Phone: (305) 885-7077 ext. 3453 Years in City of La Porte: 0
Total All Employees Worldwide: 500 Employees in La Porte at Present: 0
Attach description of Applicant Company, including brief history, corporate structure, financial statement, & annual report:
PART II . PROJECT INFORMATION
Location Address: 10000 Porter Rd.
City: La Porte
School District: La Porte ISD
College District: San Jacinto Community College
County: Harris
Legal Description*: Metes and Bounds Attached
Tax Acct. Numbers:
040-174-000-0006
* Attach plat survey, with a metes & bounds description, for project site.
Project Description:
00 New Construction
o Expansion
Attach statement fully explaining project, describe existing site and all proposed improvements, and provide "Investment Schedule"
detailing improvements for which abatement is requested.
Section A . Economic Development
Type of Facility:
o Manufacturing
o Regional Entertainment
00 Regional Distribution
o Research & Development
o Regional Service Center
o Other Basic Industries
Describe product or service to be provided: Public Cold Storage Distribution Center
For ref!ional facilities. provide market studies. business plans. or other materials demonstratinf! that the facility will serve a primary market
which lies outside of La Porte.
Section B . Variance
Is the applicant seeking a variance to Guidelines? [8] Yes 0 No
If "yes" attach letter requesting and justifying the variance, with supplemental information.
Application - Page 1 of 4
PART III - ECONOMIC INFORMATION
Construction Estimate:
Start Date _1tJ_01j_06_
Completion Date _05_/_0LC07_
Contract Amount $10.483.492
Peak Construction Jobs _150_ Construction Man-Years
1
If Modernization:
Estimated current economic life of structure
Added economic life from modernization
N/A
N/A
years
years
Permanent Job CreationlRetention in La Porte:
. Current employment in LaPorte:_O
. Jobs to be Retained in LaPorte:_O
. Jobs to be created within 3 years from contract inception (by Jan. 1,2009) _35
Value on J anu
$1,300,000
N/A
$0
$10,483,492
$400,000
$1,300,000
$10,483,492
$400,000
Estimated value of new abatable investment
Estimated value not sub. ect to abatement (e.
Estimated value of property subject to ad valorem tax at
end of abatement
Name: Bill Forrester
Authorized Com"anv om~
Authorized Signature: ~
./
Name (please print): Dan Coon
Company Representative to be Contacted:
Title: Development Director
Telephone: (305) 885-7077 ext. 3453
Title:
Chief Operating Officer
Application - Page 2 of 4
Preferred Freezer Services
Narrative for Tax Abatement
1. Introduction of the Company
A. Describe the Company's business activities, locations, primary markets, history
(when and where incorporated), headquarters location, parent or subsidiary
companies, etc.
Preferred Freezer Services started in 1989 in Perth Amboy, NJ. Preferred Freezer
Services was formed with intentions of becoming a leader in the cold storage
warehousing industry. Owner and President/CEO John Galiher acquired a 3
million cubic foot freezer in Perth Amboy that had 26 full time employees and
generated $3.6 million dollars in sales. As of August 2006 Preferred Freezer
Services operates fourteen (14) cold storage warehouses with a total 74 million
cubic feet of space. Sales for the 14 facilities generated $79 million in 2005. The
fourteen (14) current Preferred Freezer Services cold storage warehouses are in
the New Y orklNew Jersey metropolitan surrounding area, Boston-Massachusetts
surrounding area, Los Angeles-California surrounding area, Miami-Florida and
Chicago-lllinois.
Headquarters: Preferred Freezer Services
360 Avenue P
Newark, NJ 07105
(973) 820-4040
(973) 820-4004-fax
B. Names of Chief Officers:
John Galiher-President/Chief Executive Officer
Dan Coon-Chief Operating Officer
Greg Robinson-Chief Financial Officer
C. Provide copy of annual report or financial statements, as detailed in
"Instructions" .
2005 Audited Financial Report is attached.
IT. Reasons For Seeking Abatement
Preferred Freezer Services is proud of the business model it has formulated over the
past 17 years. Integral to that business model is the development of state of the art,
standardized refrigerated warehouses that can be built quickly and efficiently. The
financial burden of constructing and operating these state of the art facilities. is
substantial. The reason Preferred Freezer Services is seeking the tax abatement with
La Porte and Harris County is the abatement will lessen the financial burden, which
will allow us to stay competitive in the market place.
ill. Describe The Project
A. Facts about the proposed site (acreage, cost, location; ownership).
The proposed site is 10.1 acres in the Underwood Business Park in La Porte, TK.
Cost of the land will be $1,300,000. The current owner of the property is Clay
Development and Construction, Inc.
B. Type and value of proposed improvements (budget, list of fixed in place
equipment to be included in the project).
Preliminary construction costs of proposed 167,381 square foot facility:
Hard Costs
Foundations
Concrete Slabs
Structural Steel & Misc Iron
Racking
Tilt Up Concrete WaIls
Siding & Insulation
Roofing
HVAC
Plumbing
Building Sprinkler
Electric
Refrigeration (see below)
FKI Condors (see below)
Glass and Glazing
Carpentry
Doors & Hardware
Drywall & Metal Stubs
Painting
Floor Covering
Ceilings
Overhead doors/Dock Equipment
Standby Generator
Total Hard Costs
$
$
250,500
888,488
1,183,500
1,456,800
575,500
580,510
802,247
81,200
145,800
535,847
672,500
854,800
1,600,000
52,100
96,900
37,100
138,400
68,400
49,300
31,400
157,200
225,000
10,483,492
Fixed Equipment List
Refrigeration Equipment
Equipment
Condensing Unit
Evaporators
Compressors
Starters for Compressors
Condensers
Refrigerant Vessels
Heat Exchanger
Motor Control Center
Qty.
1
20- freezer area
4-dock area
I-USDA inspection room
4
4
2
4
1
1
FKI Logistex Condor Cranes
The Condor Cranes (8 for this facility) are fixed in place full mast material
handling hybrid cranes. They are fixed in place within the freezer area.
C. Project timeline-construction start date and end date.
Preferred Freezer Services intends to start this project upon receipt of the tax
abatement. Preferred Freezer Services is hopeful to have a start date of November
1,2006 with a scheduled completion date of May 1, 2007.
D. Environmental impact information must be provided, noting any anticipated
impacts of the project on the environment, including; but not limited to, water
quality, storm water and runoff, floodplain and wetlands, solid waste disposal,
noise levels and air quality. Further, include history of environmental compliance
by company as required in Guidelines and Criteria.
Preferred Freezer Services is committed to maintaining an excellent
environmental record and complying with all local, state and federal mandates. A
Phase I environmental site assessment, which is attached, was performed on the
207 acres of property of which is the 9.2 acres Preferred Freezer Services plans on
acquiring. There were no issues or findings noted. The proposed facility will not
have an adverse affect on this site. Preferred Freezer Services believes in the
environment and its surroundings, including neighbors.. All equipment is indoors
and therefore minimal noise levels go outside the facility. Even the back up
generator is in an enclosure to eliminate engine noise. There will be an enclosed
trash compactor on site to prevent rodents, odor and other issues relating to waste
disposal.
E. All other governmental assistance/incentives being requested or already approved
for the project, (e.g. Industrial Development Bonds, Smart Job Funds).
There are none at the time of application.
IV. Jobs
A. Provide information on current level of employment, including: (1) current payroll
and (2) breakdown of current employment by zip code. Attach a copy of the
company's most recent filing with the Texas Workforce Commission or other
supporting documentation that can be used to determine actual employment level
at time of application.
There is no current level of employment with respect to this application because
this will be the first facility in the state of Texas.
B. Provide information on the projected job creation associated with the project,
including: (1) new employee needs; e.g. skilled vs. non-skilled, level of education,
experience, etc; (2) proposed pay scale; (3) any training which the company will
provide to its new employees; (4) upward mobility opportunities, career tracks,
etc. available to less educated and experienced workers; and (5) if this is a
consolidation, information on number of "new hires" vs. "transfers". Also,
provide information on construction jobs to be created by the project.
1) New employment needs for this facility will be 35 employees with 8
skilled workers (management, clerical and mechanical) and 27 non-
skilled workers.
2) Proposed pay scale is as follows:
Skilled salary workers
Skilled hourly workers
Non-skilled hourly workers
$40,OOO-$90,OOO/year
$ 15.00-$22.00Ihour
$10.00-$15.00Ihour
3) Preferred Freezer Services provides all training for its employees,
especially on the specialized equipment used in the freezer. Employees
are often cross-trained for multiple jobs to maximize their productivity
and provide opportunities for them.
4) Preferred Freezer Services strongly believes in promoting from within
the company. Many employees with long tenures with the company are
running current facilities. The expansion and growth of the company is
directly due to the workers that make it successful and they have been
rewarded.
5) This is not a consolidation project so all jobs are "new hires".
Construction
There will be an estimated 150 jobs created for this project. The trades
involved will be masonry, electrical, ironworkers, pipe fitters, crane
operators, skilled and unskilled laborers, construction supervisors, etc.
V. Competition With Local Business
A. List any competition or similar businesses in the area.
There are 6 facilities in the Houston marketplace Preferred Freezer Services
considers direct competition.
Houston Central Industries
800 Middle Street
Houston, TX 77003
Houston Central Industries
7080 Express Lane
Houston, TX 770078
P&O Cold Logistics
16110 E. Hardy Road
Houston, TX 77032
P&O Cold Logistics
502 North Broadway
La Porte, TX 77571
International Trading Co., Inc.
300 Portwall St.
Houston, TX 77029
NOCS West Gulf, Inc.
9223 Highway 225
La Porte, TX 77571
B. Describe how an abatement will impact competition with other similar businesses
in the area.
The abatement will impact our competitors in the sense that a competing company
has built a facility in their area. The abatement will allow Preferred Freezer
Services to compete with the facilities that are established in the area. It will help
Preferred Freezer Services compete in pricing, which is directly related to the cost
of building and operating a state of the art facility. The tax abatement will ease
some of the cost and allow Preferred Freezer Services to establish themselves in
the market. This facility will be servicing many of our nationwide customers who
are interested in the Houston market as discussed below.
VI. How will this project attract new business?
Preferred Freezer Services has a tremendous following and loyal customer base that
has been the backbone of the growth of the company over the years. Through this
loyal base of customers Preferred Freezer Services has expanded a local New Jersey
warehouse into a nationwide corporation in currently in 5 states. This relationship has
benefited Preferred Freezer's customers as well. In many scenarios customers have
either expanded their businesses in the markets we have opened facilities in or started
selling product in markets they had never prior to Preferred Freezer Services opening
within said market.
Preferred Freezer Services will also become a good customer for local vendors. All
warehouse supplies are purchased on a local level within each market.
VIT. Provide information on alternative site considerations/and incentives being offered
the company.
Preferred Freezer Services is considering 2 other cities besides Houston to allocate
funds to building in 2006/2007, Chicago, II., and Jacksonville, FL.
Chicago, II., is attractive to Preferred Freezer Services because it would be the second
facility in that market so we know what to expect out of it. We have the resources for
employees, vendors and customers. Chicago also offers a Tax Increment Financing
(TIF) in areas to attract businesses such as Preferred Freezer Services. TIP allows
lower multiples on the assessed value and therefore lowers the taxes on the property,
up to 66% reduction.
Jacksonville, FL is also attractive to Preferred Freezer Services because of its location
in the Southeast. Jacksonville's strategic location and expanding port is very similar
to why Houston is attractive to Preferred. Freezer Services. The site in Jacksonville is
in an Enterprise/Empowerment Zone offering hiring incentives, infrastructure grants
and tax refunds. The estimated 3-year savings will be close to $2,000,000.
VIII. If leasing property, please attach copy of lease. If company owns or is purchasing
land, please attach copy of deed or executed contract-option to purchase.
There are none at time of application.
EXHIBIT
"C"
METES AND BOUNDS DESCRIPTION
10.115 ACRE TRACT LOCATED IN THE
ENOCH BRINSON SURVEY, A-5
BUUUUSCOUNTY,TEXAS
Being a tract or parcel of land containing 10.115 acres of land or 440,618 square feet, located in the Enoch
Brinson Survey, Abstract 5, Harris County, Texas, being out of and a part of that certain 207.049 acre tract
(called 206.990 acre tract) of record in the name of S1. Joe Paper Company in Harris County Clerk's File
(H.c.c.F.) Number M032856; Said 10.115 acre tract being more particularly described as follows (all bearings
based on the southerly Right-of-Way line of the Southern Pacific Railroad bearing South 70 Degrees 15 Minutes
00 Seconds East per said deed):
BEGINNING at a broken concrete monument called and found at the southwest comer of both the herein
described tract and aforesaid 207.049 acre tract, for the northwest corner of a called 19.566 acre tract of record
in the name of Houston Lighting and Power Company in RCCF. Number D417662, and on the east line of a
called 2.833 acre tract of record in the name of Houston Lighting and Power Company in Volume 2355, Page
173 of the Deed :Records of Harris County, Texas, said corner being on the west line of aforesaid Enoch
Brinson Survey and the east line of the Nicholas Clopper Survey;
THENCE, comcident the south line of aforesaid 207.049 acre tract and the north line of aforesaid 19.566 acre
tract, North 89 Degrees 39 Minutes 06 Seconds East, a distance of 3,740.00 feet to a 5/8 inch iron rod I.V'ith cap
set for the southwest comer and POINT OF BEGINNING of the herein described tract; .
THENCE, through and across aforesaid 207.049 acre tract the following three (3) courses:
1. North 00 Degrees 20 Minutes 54 Seconds West, a distance of 884.19 feet to a 5/8 inch iron
rod with cap set for the northwest comer of the herein described tract;
2. North 89 Degrees 39 Minutes 06 Seconds East, a distance of 496.66 feet to a 5/8 inch iron
rod with cap set for the northeast corner of the herein described tract;
3. South 00 Degrees 33 Minutes 54 Seconds East, a distance of 884.20 feet to a 5/8 inch iron
rod I.V'ith cap set for the southeast comer of the herein described tract;
THENCE, coincident the north line of aforesaid 19.566 acre tract South 89 Degrees 39 Minutes 06 Seconds
West, a distance of 500.00 feet to the POINT OF BEGINNING and containing 10.115 acres of land.
Reno & Associates
July 13, 2006
Job No. 36-0404_10.1 acre
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City of La Porte
Established 1892
October 24, 2006
CMIRRR# 7005 0390 0004 8165 3515
The Honorable Robert Eckels
Harris County Judge
Attn: David Turkel
Director of Community & Economic Development
8410 Lantern Point Drive
Houston, TX 77054
RE: Notice of Public Hearing
Notice of Intent to Enter Into Tax Abatement Agreement
Dear Judge Eckels:
Pursuant to Chapter 312, Texas Tax Code, enclosed is a copy of the Notice of
Public Hearing on the designation of La Porte Reinvestment Zone "Zone C" for
Preferred Freezer Services, LLC. on November 6, 2006.
Per Section 312.2041 of the Texas Property Tax Code, the City of La Porte is
providing notice of intent to enter into a Tax Abatement Agreement with
Preferred Freezer Services Houston Port, LLC. A copy of the proposed Tax
Abatement is provided.
At this time we anticipate City Council's consideration at their regular scheduled
meeting of November 6, 2006. The meetings are held at City Hall Council
Chambers, 604 West Fairmont Parkway, La Porte, Texas beginning at 6:00 PM.
Yours Truly,
John J oems, Interim City Manager
JJIkrp
Enclosure
604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020
City of La Porte
Established 1892
October 24, 2006
Ms. Kathy Powell, Tax Assessor
City of La Porte
604 W Fairmont Parkway
La Porte, TX 77571
RE: Notice of Public Hearing
Notice of Intent to Enter Into Tax Abatement Agreement
Dear Ms. Powell:
Pursuant to Chapter 312, Texas Tax Code, enclosed is a copy of the Notice of
Public Hearing on the designation of La Porte Reinvestment Zone "Zone C" for
Preferred Freezer Services, LLC. on November 6, 2006
Per Section 312.2041 of the Texas Property Tax Code, the City of La Porte is
providing notice of intent to enter into a Tax Abatement Agreement with
Preferred Freezer Services Houston Port, LLC. A copy of the proposed Tax
Abatement is provided.
At this time we anticipate City Council's consideration at their regular scheduled
meeting of November 6, 2006. The meetings are held at City Hall Council
Chambers, 604 West Fairmont Parkway, La Porte, Texas beginning at 6:00 PM.
Yours Truly,
John J oems, Interim City Manager
JJIkrp
Enclosure
604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020
City of La Porte
Established 1892
October 24, 2006
CMIRRR# 7005 0390 0004 8165 3522
Dr. Michael Say, Superintendent
La Porte Independent School District
Attn: Gene Hom, President
LPISD School Board
1002 San Jacinto Street
La Porte, TX 77571
RE: Notice of Public Hearing
Notice of Intent to Enter Into Tax Abatement Agreement
Dear Dr. Say:
Pursuant to Chapter 312, Texas Tax Code, enclosed is a copy of the Notice of
Public Hearing on the designation of La Porte Reinvestment Zone "Zone C" for
Preferred Freezer Services, LLC on November 6, 2006.
Per Section 312.2041 of the Texas Property Tax Code, the City of La Porte is
providing notice of intent to enter into a Tax Abatement Agreement with
Preferred Freezer Services Houston Port, LLC. A copy of the proposed Tax
Abatement is provided.
At this time we anticipate City Council's consideration at their regular scheduled
meeting of November 6, 2006. The meetings are held at City Hall Council
Chambers, 604 West Fairmont Parkway, La Porte, Texas beginning at 6:00 PM.
Yours Truly,
John Joems, Interim City Manager
JJIlcrp
Enclosure
604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020
City of La Porte
Established 1892
October 24, 2006
CM/RRR# 7005 0390 0004 8165 3508
Dr. Bill Lindemann, Chancellor
San Jacinto College
Attn: Dr, Ruede Wheeler
Board of Regents
4624 Fairmont Parkway, Suite 200
Pasadena, TX 77504
RE: Notice of Public Hearing
Notice of Intent to Enter Into Tax Abatement Agreement
Dear Dr. Lindemann:
Pursuant to Chapter 312, Texas Tax Code, enclosed is a copy of the Notice of
Public Hearing on the designation of La Porte Reinvestment Zone "Zone C" for
Preferred Freezer Services, LLC. on November 6, 2006.
Per Section 312.2041 of the Texas Property Tax Code, the City of La Porte is
providing notice of intent to enter into a Tax Abatement Agreement with
Preferred Freezer Services Houston Port, LLC. A copy of the proposed Tax
Abatement is provided.
At this time we anticipate City Council's consideration at their regular scheduled
meeting of November 6, 2006. The meetings are held at City Hall Council
Chambers, 604 West Fairmont Parkway, La Porte, Texas beginning at 6:00 PM.
Yours Truly,
John Joems, Interim City Manager
JJ/krp
Enclosure
604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020
TAX ABATEMENT AGREEMENT FOR REAL PROPERTY
LOCATED IN THE LA PORTE REINVESTMENT ZONE "ZONE C"
THE STATE OF TEXAS S
S
COUNTY OF HARRIS S
This Tax Abatement Agreement (the "Agreement") is made and entered into by and between
the City of La Porte, Texas, a municipal corporation (the "City), and Preferred Freezer Services
Houston Port, LLC, ("Lessee"), a Delaware Corporation qualified to do business in the State of Texas
and Under Bear, LLC. ("Lessor"), a Delaware Corporation and an owner of interests in real property
located within the Zone (defined below).
I. AUTHORIZATION
This Agreement is authorized by the following: (a) the Texas Property Redevelopment and
Tax Abatement Act, chapter 312 of the Texas Tax Code, as amended, (b) the City of La Porte
Ordinance 2006-~ authorizing this agreement; and (c) Guidelines and Criteria for Granting Tax
Abatement in a Reinvestment Zone Created in La Porte, Texas, adopted by the La Porte City Council
on February 14, 2005; Ordinance 2005-2809 (the "Guidelines"), attached hereto as Exhibit A and
made a part hereof. All definitions set forth therein are applicable to this Agreement, except as
otherwise expressly provided in this Agreement.
II. DEFINITIONS
As used in this Agreement, the following terms shall have the meanings set forth below:
a) "Abatement" means the full or partial exemption from ad valorem taxes of certain real
property (including fixed-in-place machinery & equipment) located on the Project Site
within the Zone designated for economic development purposes.
b) "Effective Date of Abatement" means January 1, 2007.
c) "Base Year Value" means the 2006 certified appraised value, as determined by the
Harris County Appraisal District ("HCAD"), for the real property located in the
Reinvestment Zone "Zone C".
d) "Improvements" means the buildings or portions thereof and other improvements,
including fixed-in-place machinery and equipment, that are erected by the Lessor or
Lessee in the Reinvestment Zone "Zone C" on or after August 16, 2006 and no later
than December 31, 2008, and more fully described in the "Application for Tax
Abatement in La Porte, Texas" (the "Application"), attached hereto as Exhibit B and
made part hereof for all purposes.
e) "Construction" means a material and substantial improvement of the property, which
represents a separate and distinct construction operation undertaken for the purpose of
erecting the hnprovements. The period of Construction ends when the facility is
available for occupancy, or on December 31, 2008, whichever occurs first.
f) "Eligible Property" means the construction commencing on or after August 16, 2006,
of buildings, structures, fixed machinery, equipment and process units, site
improvements, and that office space and related fixed improvements necessary to the
operation and administration of the facility, as set forth in the Investment Budget in the
Application. The value of all property shall be the certified appraised value as finally
determined by HCAD each year.
g) "Ineligible Property" means any construction commencing before August 16, 2006 and
after December 31, 2008, land, inventories, supplies, tools, furnishings and other
forms of movable personal property, vehicles, vessels, aircraft, housing, hotel
accommodations, deferred maintenance investments, improvements for generation or
transmission of electrical energy not wholly consumed by a new facility or expansion,
any improvements which are not integral to the operation of the facility, property that
has an economic life of less than fifteen (15) years, any hnprovements that have an
economic life of less than fifteen (15) years, or any hnprovements exempted by local,
state or federal law .
h) "Lessee" means Preferred Freezer Services Houston Port, LLC. a Delaware
Corporation.
i) "Lessor" means Under Bear, LLC, a Delaware Corporation
j) "Permanent Employee" means a person who works a minimum of 1,750 hours per
year exclusively in the Project within the Zone (excluding any contract employee,
seasonal employee, full-time equivalent, or part-time employee), whose employment is
both permanent and full-time, who receives industry-standard benefits, and whose
employment is reflected in the quarterly report filed with the Texas Workforce
Commission ("TWC") by the Lessor and/or Lessee (or Contractor, if applicable).
k) "Project" means the 167,381 Square feet Building and hnprovements to be built on a
10.15 acre tract of real property located at 10000 Porter Road, La Porte, Texas, known
herein as the Project Site, and as more fully described in the Investment Budget
included in Exhibit B, attached hereto and made a part hereof for all purposes.
1) "Project Site" means the 10.15 acre tract of real property to be improved, as more fully
described in Exhibit C attached hereto and made a part hereof for all purposes.
m) "Reinvestment Zone "Zone C"" means the 1 0.15 acre tract of real property located at
1 0000 Porter Road in La Porte, Texas, and as more fully described in Exhibit C
attached hereto and made a part hereof for all purposes.
III. SUBJECT PROPERTY
The Project Site is in La Porte, Texas, generally described as 10.15 acres of land situated in
the Enoch Brinson Survey, Abstract 5, Harris County, Texas and as more fully described in Exhibit
C, attached hereto and made a part hereof for all purposes.
Upon completion of the Improvements to be constructed and further described in Exhibit B,
the Project will consist of a Public Cold Storage Distribution Center.
In accordance with TEXAS TAX CODE ANN. g312.204(a), HCAD shall determine the Base
Year Value of real property subject to the Abatement Agreement. The Chief Appraiser of HCAD
shall annually certify the appraised value of the Project Site and any improvements to the Project Site
subject to abatement under this Agreement.
IV. REPRESENTATIONS AND CONTEMPLATED IMPROVEMENTS
A. The Lessor and Lessee represents that Under Bear, LLC, presently owns fee simple
title to the project site more fully described in Exhibit C, attached hereto and made a part hereof; and
that the Improvements will be constructed on the project site within the boundaries of the
Reinvestment Zone. .
B. The Lessor and Lessee each represent that: (1) Preferred Freezer Services Houston Port,
LLC. is the lessee of the real property located at 10000 Porter Road in La Porte, Texas; and (2) the
property is located within the boundaries of the zone.
C. The Lessor and Lessee each represent and warrant that they have executed a valid Lease
Agreement in Exhibit D for the construction of the Improvements described in the Investment Budget
in Exhibit B, which will begin on or after August 16, 2006.
D. The Lessor and Lessee represents and warrants that the proposed use of the Project is a
Public Cold Storage Distribution Center. Additionally, the Lessor and Lessee agrees to maintain the
Improvements in good repair and condition during the Abatement Period, and that construction of the
Improvements shall be done substantially in conformity with the Investment Budget included in
Exhibit B.
E. The Lessor and Lessee represents and warrants they will invest at least $10.4 million in
the Improvements by December 31, 2008, and that the certified appraised value of the Improvements,
as determined by HCAD, shall be at least $9.9 million by January 1, 2009.
F. The Lessee represents and warrants that they will create at least 35 new full-time,
permanent employment positions on the Project Site no later than December 31, 2008. If at any time
the Lessee fails to meet the total employment requirement, all taxes previously abated by virtue of this
Agreement may be recaptured by the City and in such event such taxes shall be paid to the City, and
the other political subdivisions that are parties to this Agreement, within sixty (60) days from demand.
G. The Lessor and Lessee represents and warrants that they are not indebted to the City for
any past due ad valorem taxes or other obligations.
H. The Lessor and Lessee represents and warrants that they are in compliance with all state
and federal laws designed to protect human health and welfare. The construction of the Improvements
and operation of the facility shall be in compliance with all applicable federal, state and local laws,
rules and regulations, including those designed to protect the environment from environmental hazards
and degradation.
V. VALUE AND TERM OF AGREEMENT
A. The Lessor and Lessee shall make the Improvements in conformity with this Agreement
as set out in the Investment Budget in Exhibit B attached hereto and made a part hereof for all
purposes. Upon completion of the Improvements, the Lessor and Lessee shall use the Improvements as
set forth in Section ill of this Agreement. The Lessor and Lessee shall further maintain the
Improvements in good repair and condition during the Abatement Period.
B. The term of this tax abatement shall be for a period of ten (10) years beginning on
January 1, 2007 ("Effective Date of Abatement"). In no case shall the term of this abatement exceed
ten (10) years from the Effective Date of Abatement. The value of the Eligible Property shall be
abated as follows:
Year Abated
Percentage of Value
1-3 Including Construction
4
5
6
7-10
100%
80%
60%
40%
20%
C. If the period of construction extends beyond December 31, 2008, two (2) years from the
Effective Date of Abatement, the Improvements shall be considered completed for purposes of
abatement. In no case shall the abatement period, inclusive of the construction period, exceed ten (10)
years from the Effective Date of Abatement.
VI. TAXABILITY
During the period that this Abatement Agreement is in effect, taxes shall be payable as follows:
(1) The certified appraised value of the Ineligible Property as determined each year by the Harris
County Appraisal District will be fully taxable.
(2) The tax abatement shall apply only to Eligible Property which value shall be abated in
accordance with the percentage set forth in Section V (B), above. The abatement applied to Eligible
Property in any year may not be greater than the amount by which the value of all property located in
the Project Site, including Eligible Property, existing property and Ineligible Property, as listed on the
appraisal roll for that year, exceeds the Base Year Value.
Vll. EVENT OF DEFAULT
A. During the period covered by this Agreement, the City may declare a default hereunder upon
the occurrence of anyone or more of the following circumstances or events:
1. Failure by the Lessor and Lessee to commence construction of the Project
Improvements specified in the Investment Budget of Exhibit B and Section IV of this
Agreement by January 1, 2007, or
2. If the Lessor and Lessee fails, refuses, or neglects to comply with any of the terms of
this Agreement; or
3. Failure by the Lessor and Lessee to comply with TEX. TAX CODE ANN. 922.01, as
amended, requiring an annual rendition of all personal property with HCAD; or
4. If any representation made by the Lessor and Lessee in the Application or in this
Agreement is false or misleading in any material respect.
B. In the event the City declares the Lessor and Lessee to be in default of this Agreement, this
Agreement shall terminate unless such default is cured in accordance with Subsection C below. If
this Agreement is terminated, the City, and the other political subdivisions that are parties to this
Agreement, shall be entitled to recapture all property taxes which have been abated as a result of this
Agreement. Additionally, the Lessor and Lessee agrees to pay the City, and the other political
subdivisions who are parties to this Agreement, interest at the rate of six percent (6%) per annum on
any amount of previously abated taxes that are due to be recaptured under Section vn of this
Agreement from the effective date of this Agreement. Interest for each year's abated taxes to be
recaptured pursuant to Section vn of this Agreement shall be calculated beginning from the effective
date of this agreement. Interest shall be calculated on the basis of a year of 360 days and the actual
days elapsed (including the first day but excluding the last day) occurring in the period for which such
interest is payable, unless such calculation would result in a usurious rate, in which case interest shall
be calculated on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days
elapsed (including the first day but excluding the last day).
C. The Lessor and Lessee is responsible for notifying the City of any default of this Agreement
within ten (10) days of the default and must cure such default within sixty (60) days of the default
("Cure Period"). If the City determines that the Lessor and Lessee has failed to notify the City of any
default of this Agreement as provided in this paragraph, the Agreement may be terminated
immediately by the City and all taxes previously abated by virtue of this Agreement may be
recaptured from Lessor and Lessee. In such event, such taxes must be paid to the City, and other
political subdivisions that are parties to this Agreement, within sixty (60) days from the date of
termination. If the City does not receive full payment within said sixty (60) days of termination of
this Agreement, a penalty may be added, pursuant to section 312.205 (b)(6) of the Texas Tax Code,
equal to fifteen percent (15%) of the total amount of taxes abated under this Agreement.
D. In the event the Lessor and Lessee allows the ad valorem taxes owed the City to become
delinquent or fails to timely and properly follow the legal procedures for its protest and/or contest,
then this Agreement may be terminated and all taxes previously abated by virtue of this Agreement
will be recaptured from the Lessor and Lessee. In such event, such taxes must be paid to the City,
and other political subdivisions that are parties to this Agreement, within sixty (60) days from the
date of termination.
E. In the event the facility herein is completed and the Lessee begins operation, but subsequently
discontinues operation after January 1, 2007, for any reason, for a period of 180 days during the
abatement period, or one year in the event of a natural disaster, then this Agreement shall terminate.
In the event of termination pursuant to the provisions of this paragraph, the abatement of taxes under
this Agreement for the calendar year during which the facility no longer is in operation shall terminate
and there shall be full recapture with penalties and interest as set out herein. Further, the Lessor and
Lessee shall notify the City within ten (10) days of any discontinuation, stating the reason for the
discontinuation and the projected length of discontinuation. Any taxes otherwise abated for the
calendar year during which the Lessee no longer operates its Public Cold Storage Distribution Center,
must be paid directly to the Tax Assessor-Collector for City for the benefit of the political
subdivisions who are parties to this Agreement, within sixty (60) days from the date of
discontinuation.
VIII. ADMINISTRATION
The City of La Porte Finance Department shall administer this Agreement on behalf of the
City. The Lessor and Lessee shall allow employees and/or representatives of the City who have been
designated by the City Manager's Office to have access to the Project Site during the term of this
Agreement to inspect the facility to determine compliance with the terms and conditions of this
Agreement. All inspections will be made only after giving twenty-four (24) hours prior notice and
will only be conducted in such manner as to not unreasonably interfere with the construction and/or
operation of the Project. All inspections will be made with one or more representatives of the Lessor
and Lessee and in accordance with safety standards ofthe Lessor and Lessee.
Upon completion of the Improvements, the City shall annually evaluate the Project to ensure
compliance with the terms and provisions of this Agreement and shall report possible defaults to the
City Council and City Attorney. The Lessee shall annually submit to HCAD and to the City,
beginning on January 1, 2007, and continuing through the term of this Agreement, a January 1st
employee-count for the Project Site which shall correspond to employment counts reported in the
Employer's Quarterly Report to the Texas Workforce Commission filed by the Lessor, Lessee or
Contractor, for the quarter ending on the previous December 31, and a separate notarized letter
certifying: (1) the number of jobs created as a direct result of the Improvements, and (2) the Lessee is
in compliance with the environmental and worker safety requirements for the preceding year. This
information will be used to determine eligibility and value of abatement for that year and shall be
subject to audit if requested by the City. The Lessee's failure to submit this information will render
the Lessor and Lessee ineligible to receive abatement for that year.
The Lessor and Lessee shall (a) obtain and maintain all required permits and other
authorizations from the United States Environmental Protection Agency and the Texas Commission
on Environmental Quality ("TCEQ") for the construction and operation of the Project facility and for
the storage, transport, and disposal of solid waste; and (b) seek a permit from the TCEQ for all
grandfathered units on the Project Site, if any, by filing with the TCEQ, within three years of
receiving the abatement, a technically complete application for such a permit.
The HCAD Chief Appraiser shall annually determine (i) the taxable value pursuant to the terms of
this abatement for all property located in the Project Site and (ii) the full taxable value without
abatement of the real and personal property comprising the Project Site. The Chief Appraiser shall
record both the abated value and the full taxable value in the appraisal records. The full exemption
value listed in the HCAD records shall be used to compute the amount of abated taxes that are
required to be recaptured and paid in the event this Agreement is terminated in a manner that results
in recapture. Each year, the Lessee shall furnish the HCAD Chief Appraiser with such information
outlined in Chapter 22, TEXAS TAX CODE, as may be necessary for the administration of the tax
abatement specified herein.
If the City terminates this Agreement, it shall provide the Lessor and Lessee with written
notice of such termination. If the Lessor and Lessee believes that such termination was improper, the
Lessor and Lessee may file suit in the Harris County District Courts appealing such termination
within sixty (60) days after receipt from the City of written notice of termination. If a suit is filed, the
Lessor and Lessee shall remit to the City, and other political subdivisions who are parties to this
Agreement, within sixty (60) days after receipt of the notice of termination, any additional and/or
recaptured taxes as may be payable during the pendency of the litigation pursuant to the payment
provisions of TEXAS TAX CODE ANN. ~ 42.08. If the final determination of the appeal increases the
Lessor's and Lessee's tax liability above the amount of tax paid, the Lessor and Lessee r shall remit
the additional tax to the City and other political subdivisions that are parties to this Agreement,
pursuant to TEXAS TAX CODE ANN. S 42.42. If the final determination of the appeal decreases tax
liability of the Lessor and Lessee, the City and other political subdivisions that are parties to this
Agreement shall refund the difference between the amount of tax paid and the amount of tax for
which the Lessor and Lessee is liable pursuant to TEX. TAX CODE ANN. S 42.43.
IX. ASSIGNMENT
The Lessor and Lessee may assign this Agreement to a new owner of the facility with the
written consent of the City Council, which consent shall not be unreasonably withheld. Any
assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties
and obligations of the assignor upon the same terms and conditions as set out in this Agreement. Any
assignment of this Agreement shall be to an entity that contemplates the same improvements to the
property, except to the extent such improvements have been completed. No assignment shall be
approved if the Lessor and Lessee or assignee is indebted to the City or the other political subdivision
that are parties to this Agreement, for ad valorem taxes or other obligations.
X. RENDITION
This Agreement is specifically conditioned upon the Lessor and Lessee complying with TEX.
TAX CODE ANN. S 22.01, as amended, requiring an annual rendition of all personal property with
HCAD.
XI. NOTICE
Any notice required to be given under the provisions of this Agreement shall be in writing and
shall be duly served when it shall have been deposited, enclosed in a wrapper with the proper postage
prepaid thereon, and duly registered or certified, return receipt requested, in a United States Post
Office, addressed to the City and the Lessor and Lessee at the following addresses. If mailed, any
notice or communication shall be deemed to be received three (3) days after the date of deposit in the
United States Mail. Unless otherwise provided in this Agreement, all notices shall be delivered to the
following addresses:
To Lessee: Preferred Freezer Services Houston Port, LLC. A Delaware
Corporation
John Galiher, President! Chief Executive Officer
360 Avenue P
Newark, NJ 07105
To Lessor: Under Bear, LLC a Delaware Corporation
Dan Coon, Chief Operating Officer
360 Avenue P
Newark, NJ 07105
To the City: Director, Department of Finance
City of La Porte
604 West Fairmont Parkway
La Porte, Texas 77571
with a copy to: Office of the Chief Appraiser/Abatements
Harris County Appraisal District
13013 Northwest Freeway
Houston, Texas 77040-6305
Any party may designate a different address by giving the other party ten (10) days' written notice.
XII. MERGER
The parties agree that this Agreement contains all of the terms and conditions of the
understanding of the parties relating to the subject matter hereof. All prior negotiations, discussions,
correspondence and preliminary understandings between the parties and others relating hereto are
superseded by this Agreement.
xm. APPLICABLE LAWS
Each party. to this Agreement understands and agrees that this Agreement shall be governed
and construed according to the laws ofthe State of Texas.
XIV. SEVERABILITY
The parties agree that if any provision, section, subsection, sentence, clause or phrase
contained in this Agreement is for any reason held to be unconstitutional, void or invalid, the
remaining portions of this Agreement shall not be affected thereby and all provisions contained herein
are deemed severable for that purpose.
XV. DATE
The City executes this Agreement by and through the City Manager acting pursuant to City of
La Porte Ordinance 2006-~qs~ , so authorizing. This Agreement shall not oecome enforceable until
executed by all parties hereto. The Effective Date of Abatement shall be January 1, 2007.
The parties in multiple originals, each, have executed this Agreement having full force and effect.
ATTEST:
APPROVED AS TO FORM:
BY:~Z~ 4/'
Knox . Askins /
City Attorney
BY~O. Mi/;
Martha ~. Gillett
City Secretary
By:
John Galiher
President/Chief Executive Officer
Date Signed: /6 - 30- C(;
Under Bear, LLC ("Lessor")
A D..w.re c.'P.n.~
By: ~
Dan Coon
Chief Operating Officer
Date Signed: /'0-.10 -0 C
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: November 6. 2006
Budg:et
Requested By: John Joerns
Source of Funds:
Department: Administration
Account Number:
Report:
Resolution:
Ordinance:
Amount Budgeted:
Exhibits: Request Letter from Preferred Freezer Service
Amount Requested:
Exhibits:
Budgeted Item: YES NO
Exhibits:
SUMMARY & RECOMMENDATION
The application for tax abatement from Preferred Freezer Services Houston Port, LLC included a
request for a variance from the City's Guidelines. The request is for an early construction start
prior to approval/completion of a tax abatement agreement. Per Section 66-144 of the City's
Guidelines and Criteria for Tax Abatement, the approval of a variance requires a % vote of the
City Council.
This "Early Start Variance" will not be required if the proposed abatement agreement is
approved prior to this item.
Action Required bv Council:
Consider approval of a variance to allow construction of improvements for a proposed Public
Cold Storage Distribution Center to be located at 10000 Porter Road, La Porte, Texas, to
commence prior to the execution and delivery of a Tax Abatement Agreement with Preferred
Freezer Services Houston Port, LLC. The variance is "at risk" and does not commit or bind the
City to approval of a Tax Abatement Agreement with Preferred Freezer Services Houston Port,
LLC.
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PREFERRED
FRdt:ll;.:"flS OF
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~ I ~282006 J~I
ASST. CITY MANAGER I
OFFICE j
To:
John Joems, Assistant City Manager, La Porte, TX
From:
Bill Forrester, Preferred Freezer Services
cc:
John Galiher, President/CEO; Dan Coon, COO
Date:
August 16, 2006
Re:
Early Start Variance
Dear John,
This letter is intended to inform you that Preferred Freezer Services is requesting an
"early start" variance with respect to the application this is accompanying. This request
is being made at the recommendation of the Greater Houston Partnership because
Preferred Freezer Services would like to begin construction as close to November 1,2006
as possible. GHP recommended requesting the variance to ensure Preferred Freezer
Services would be able to begin construction once approved for the tax abatement and not
have to wait for an executed contract. Preferred Freezer Services understands the
company would take sole responsibility of moving forward without an executed contract
in regards to construction. Preferred Freezer Services is confident if approved for the
abatement an executed contract will soon follow. Preferred Freezer Services also
understands it does take time with any legal document and would not want the project to
delay start while all the details are ironed out in the contract.
Please contact me if you have any questions or comments.
Best regards,
J-1~
Bill Forrester
Preferred Freezer Services
13700 NW 11Sth Ave.
Medley, FL 33304
(305) 885-7077 ext. 3453
bforrester@preferredfreezer.com
13700 N.W. 115th Ave. · Medley, FL 33178
Phone: (305) 885-7077 · Fax: (305) 885-7377