Loading...
2006R23-Schwab Road Agreement RESOLUTION NO. 06-R-23 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A DEVELOPMENT AGREEMENT FOR AN ECONOMIC DEVELOPMENT PROJECT CONCERNING SCHWAB ROAD; AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, by Ordinance No.06-T-44, the City Council of the City of Schertz, Texas (the "City") has established a program (the "Program") under Chapter 380, Texas Local Government Code, as amended, to promote economic development and to stimulate business and commercial activity in the City; and WHEREAS, pursuant to, and in furtherance of, the Program, the City has determined to enter into a Development Agreement relating to Schwab Road in substantially the form attached hereto as Exhibit A. BE IT RESOLVED BY THE CITY COUNCIL OF .THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute and deliver a Development Agreement in substantially the form set forth on Exhibit A hereto, with any additions and modifications which are not inconsistent with such terms. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the Council hereby declares that this Resolution would have been enacted without such invalid provision. RESOL (Schwab Rd Dev Agmt).doc Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 19th day of September, 2006. CITY OF SC ERT TEXAS Hal Baldwin, Mayor ATTEST: y Tok ,City Secretary (CIT'YSEAL) RESOL (Schwab Rd Dev Agmt).doc ®EC i 'zoos DEVELOPMENT AGREEMENT This DEVELOPMENT AGREEMENT, (this "Agreement"), dated October 12, 2006, is among Lack Properties, Inc., a wholly owned subsidiary of Lack's Stores, Inc. ("Lacks"), San Antonio One Limited Partnership (the "Partnership"), Comal County, Texas (the "County"), Schertz Economic Development Corporation (the "SED Corporation"), and the City of Schertz, Texas, (the "City") (Lacks, the Partnership, the County, the SED Corporation, and the City, together, the "Parties"). WITNESSETH: WHEREAS, by Ordinance No. 06-T-44, the City has established a program (the "City Program") under Chapter 380, Texas Local Government Code, as amended, to promote economic development and to stimulate business and commercial activity in the City; and WHEREAS, the SED Corporation has been established by the City to promote economic development in the City by sponsoring and funding economic development projects; and WHEREAS, the Partnership owns an approximately 192-acre tract of land within the City between Schwab Road and Friesenhahn Road on the north frontage road of IH-35 (the "Partnership Tract"), as more particularly described on Exhibit A; and WHEREAS, Lacks proposes to build an approximately 300,000 square feet regional distribution center (the "Lacks Development"), at the location more particularly described on Exhibit A (the "Lacks Development Site"); and WHEREAS, the Parties propose to cooperate in the realignment and improvement of approximately 3,350 linear feet of Schwab Road (the "Project") on the Northeast side of the Partnership Tract from IH-35 to FM 482 to provide better access to the Lacks Development Site, as more particularly described on Exhibit A; and WHEREAS, a portion of Schwab Road, as currently aligned, lies within the corporate boundaries of the City, and a portion of such Road lies within the extraterritorial jurisdiction of the City in the County; and WHEREAS, the County currently maintains the portion of Schwab Road which is not within the City's corporate boundaries; and WHEREAS, the Parties are entering into this Agreement for the purpose of setting forth their respective obligations with respect to the Project and the Lacks Development. Section 1. Anticipated Project Costs and Project Contributions. The Parties agree that Lacks, the County, and the SED Corporation will each share equally in the cost of the Project (costs of design, engineering, right-of--way acquisition from third parties, construction, and change orders being the "Total Project Costs") to the extent such Total Project Costs do not exceed $1,050,000. If Total Project Costs exceed $1,050,000, the County and the SED Corporation will each contribute $350,000, and Lacks will contribute the balance. The Partnership will dedicate its portion of the right-of--way as required, and the County will provide 20169409.7 ~ its right-of--way as required. The City, with the assistance of the Partnership, will arrange for additional required right-of--way from the landowner adjacent to the Partnership Tract and will arrange for the dedication of such right-of--way. The amount to be provided by each of Lacks, the County (excluding the value of the County's dedicated right-of--way), and the SED Corporation is its "Funding Obligation". The Funding Obligation of each of the County and the SED Corporation will be the lesser of one-third of the Total Project Costs or $350,000. Lack's Funding Obligation will be one-third of the Total Project Costs if the Total Project Costs are less than or equal to $1,050,000 or, if the Total Project Costs exceed $1,050,000, $350,000 plus all amounts in excess of $1,050,000. Section 2. Project Design and Funding Obligation Credits. Bury + Partners ("Lacks' Engineers") will design the Project to City standards based on engineering parameters approved by Ford Engineering, Inc. (the "City's Engineers") to serve the Lacks Development and eventual additional development by the Partnership, Lacks, and adjacent property owners. Lacks' Engineers will modify their plans as required by the City's Engineers (the "Final Construction Plans"). The Parties agree that -the Project may be built in two phases. The Parties intend to complete the portion of the Project from IH 35 to the southern approach to the Union Pacific Railroad tracks (the "Primary Phase") as quickly as possible. If it appears that the total Project could be delayed as a result of securing required consents from Union Pacific Railroad to complete the balance of the Project to FM 482 (the "Secondary Phase"), Lacks' Engineers will prepare phased Final Construction Plans. The City and Lacks will each pay the fees, respectively, of the City's Engineers and of Lacks' Engineers, and the City will pay any costs of acquiring additional right-of--way. The City's costs for the City's Engineers and the City's cost, if any, of acquiring right-of--way from the adjacent landowner will be a credit against the SED Corporation's Funding Obligation, and Lacks' Engineers' costs will be a credit against Lacks' Funding Obligation. Section 3. Funding Procedure and Project Control. (a) When the Final Construction Plans (whether one or two phases) have been approved by the City's Engineers, the City's Engineers, in consultation with Lacks' Engineers, will notify all Parties and will provide an estimate of the anticipated lowest and best bid for the entire Project (the "Preliminary Bid Amount"). Lacks, the County, and the SED Corporation will thereupon contribute their respective Funding Obligation share of the Preliminary Bid Amount (showing engineers' fees and right-of--way acquisition costs as a credit as permitted under Section 2 above). Amounts contributed by Lacks, the County, and the SED Corporation will be held by the City in an interest- bearing account (the "Escrow Account") invested in permissible City investments at the . City's depository bank, Schertz Bank & Trust, for disbursement on the order of the Construction Manager (see Section 3(c) below), for approved Project costs. Whether the Project is to be built in one or two phases, the entire Preliminary Bid Amount shall be deposited in the Escrow Account. (b) Within sixty (60) days after all required amounts have been deposited to the Escrow Account, the City will solicit bids for construction of the Project based upon the Final Construction Plans. Bids will be solicited only when all the deposits to the Escrow Account described under Section 3(a) above have been received, whether the 20169409.7 2 Project is to be built in one or two phases. If the Project is to be build in two phases, bids will be solicited for the second phase as soon as appropriate. (c) At bid opening, the City will consult with Lacks, the County, and the SED Corporation, but the City will select the lowest and best bid (or may reject all bids) in its sole discretion. If it rejects all bids, all amounts in the Escrow Account will be promptly refunded to Lacks, the County, and the SED Corporation. If the accepted bid is less than the total amount deposited to the Escrow Account, the excess (reserving anticipated costs for the Secondary Phase if necessary) will be promptly refunded to Lacks, the County, and the SED Corporation on a pro rata basis. If the accepted bid is more than the total amount deposited to the Escrow Account, Lacks, the County, and the SED Corporation will deposit the difference to the Escrow Account, under the parameters set forth in Section 1 above. (d) Ford Engineering, Inc. will serve as Construction Manager for the Project. (e) The Construction Manager will provide written notice of each proposed draw request on the Escrow Account to Lacks, the SED Corporation, and the Comal County Engineer for their review at least ten (10) days before authorizing such draw request for payment from the Escrow Account. Section 4. Project Schedule. The Construction Manager will provide a schedule for construction of the Project to all of the Parties, with a goal of completing construction of the Project as quickly as is reasonably possible. The Construction Manager will provide periodic updates on the status of Project construction and will promptly notify all of the Parties of any changes in the Project construction schedule and copies of any change orders. The Construction Manager will also provide periodic on-site reviews of construction progress. Section 5. Annexation and Amendment of Certain Ri t-of-Wad Within ninety (90) days after completion of the Project, the City (i) will annex the improved road (to the extent it is not already within the City's corporate boundaries after realignment) and any remaining County/Schwab Road right-of-way and (ii) will assume road maintenance responsibility. The surplus road/right-of--way will be quitclaimed to the Partnership and adjacent landowners by the City as permitted by law. Section 6. Grants. The City and the County will investigate grants that may be available to pay or reimburse portions of the costs of the Project. To the extent that any such grants are received, such grant funds will be used to pay construction costs (reducing the County's and the SED Corporation's contributions on a pro rata basis) or, if permitted by the terms of such grant, to reimburse the County and the SED Corporation for expenditures previously made. Section 7. Proiect Reimbursement Program. The City will investigate its ability to impose a Project reimbursement program upon property owners in the Project area other than Lacks and the Partnership to require their financial participation in the Project when and as they develop their properties adjacent to the Project. If such reimbursement program is permissible, reimbursements will go first to the County and the SED Corporation on a pro rata basis and, when the County and the SED Corporation have been fully reimbursed, then to Lacks. 20169409.7 3 Section 8. Tax Phase-In and Inventory Tax Rebates. Pursuant to the City Program, Lacks has agreed that the Lacks Development will contain the elements set forth on Exhibit B and that the Lacks Development will be completed and staffed within the schedule set forth on Exhibit B. Pursuant to the City Program, the City will provide a ten (10)-year ad valorem tax phase-in rebate for the Lacks Development valued at approximately $430,000, as more particularly described on Exhibit C. In addition, pursuant to the City Program, the City will rebate Lacks inventory tax relating to the Lacks Development for three (3) years, but in no event will the total inventory tax rebate exceed $120,000, as more particularly described on Exhibit C. If Lacks does not start or complete the4 Lacks Development by agreed dates, it will reimburse the SED Corporation and the County for fifty percent (50%) of their respective Project costs. Notwithstanding the foregoing, if -without fault on the part of Lacks -completion of the Project is delayed, Lacks shall be entitled to an equitable adjustment in such agreed dates for completion of the Lacks Development. Section 9. Cit~gram Determination. The City has determined, and hereby agrees with all of the other Parties, that the intent and terms of this Agreement, and the obligations of the City hereunder, are in accordance with and in furtherance of the City Program. Section 10. Representations and Covenants. (a) Lacks hereby represents and covenants as follows: (i) Lacks is a duly authorized and existing corporation, created and operating and in good standing under the laws of the State of Texas. (ii) Lacks has taken all necessary corporate action to authorize its execution and delivery of this Agreement and its performance of its obligations hereunder. (iii) Lacks has available to it, without restriction, all funds required to be expended by it under this Agreement. (iv) Lacks will use its best efforts to complete all of its obligations under this Agreement when and as required. (v) Lacks has not entered into, and will not enter into, any agreement (written or otherwise) with any person or entity that would prohibit or limit Lacks from performing all of its obligations under this Agreement. (vi) There is no litigation, claim, or proceeding pending of which Lacks has received notice, nor to the knowledge of Lacks is there any litigation, claim, or proceeding threatened that would prohibit or limit Lacks from performing all of its obligations under this Agreement. (vii) Lacks will not dissolve or take any action in furtherance thereof so long as it has not performed all of its obligations under this Agreement. (viii) Lacks will not dispose of or transfer any of its assets to a person or entity not a party to this Agreement if such disposition or transfer would 20169409.7 4 materially and adversely affect its ability to perform all of its obligations under this Agreement. (ix) Lacks covenants and agrees to complete the Lacks Development described on Exhibit B within the schedule set forth on Exhibit B. (x) Lacks covenants and agrees that the Lacks Development will at all times comply with all applicable City building codes and ordinances, including, but not limited to, flood, subdivision, building, electrical, plumbing, fire and life safety codes and ordinances in effect from time to time. Further, Lacks covenants to maintain the Lacks Development in compliance with all such building codes and ordinances and in accordance with the site plan approved by the Planning and Zoning Commission of the City. (xi) Lacks agrees to pay all ad valorem taxes on the Lacks Development and on personal property in a timely manner, whether assessed by the City or any other tax jurisdiction. (xii) Lacks agrees to allow inspection of the Lacks Development by the City Manager or his designee. Such inspection shall be to determine if the terms and conditions of this Agreement are being met and for the purpose of assuring compliance with applicable City codes and ordinances. Inspections will be made only after giving Lacks a minimum of twenty-four (24) hours notice and will be conducted in such a manner as to not unreasonably interfere with the operation of the Lacks Development. (xiii) Lacks agrees to certify annually in writing its compliance with the terms of this Agreement, which certification shall be filed with the City by January 15th of each year during the term of this Agreement. (b) The Partnership hereby represents and covenants as follows: (i) The Partnership is a duly authorized and existing limited partnership, created and operating under the laws of the State of Michigan and is authorized to transact business in the State of Texas. (ii) The Partnership has taken all necessary action to authorize its execution and delivery of this Agreement and its performance of its obligations hereunder. (iii) -The Partnership has available to it, without restriction, all funds required to be expended by it under this Agreement. (iv) The Partnership will use its best efforts to complete all of its obligations under this Agreement when and as required. (v) The Partnership has not entered into, and will not enter into, any agreement (written or otherwise) with any person or entity that would prohibit or limit the Partnership from performing all of its obligations under this Agreement. 20169409.'7 5 (vi) There is no litigation, claim, or proceeding pending of which the Partnership has received notice, nor to the knowledge of the Partnership is there any litigation, claim, or proceeding threatened that would prohibit or limit the Partnership from performing all of its obligations under this Agreement. (vii) The Partnership will not dissolve or take any action in furtherance thereof so long as it has not performed all of its obligations under this Agreement. (viii) The Partnership will not dispose of or transfer any of its assets if such disposition or transfer would adversely affect its ability to perform all of its obligations under this Agreement. (c) The County hereby represents and covenants as follows: (i) The County is a duly authorized and existing Texas county, created and existing under the laws of the State of Texas. (ii) The County has taken all necessary action to authorize its execution and delivery of this Agreement and its performance of its obligations hereunder. (iii) The County has appropriated or expects to appropriate when required all funds required to be expended by it under this Agreement. (iv) The County will use its best efforts to complete all of its obligations under this Agreement when and as required. (v) The County has not entered into, and will not enter into, any agreement (written or otherwise) with any person or entity that would prohibit or limit the County from performing all of its obligations under this Agreement. (vi) There is no litigation, claim, or proceeding pending of which the County has received notice, nor to the knowledge of the County is there any litigation, claim, or proceeding threatened that would prohibit or limit the County from performing all of its obligations under this Agreement. (vii) The County will not dispose of or transfer any of its assets to a person or entity not a party to this Agreement if such disposition or transfer would adversely affect its ability to perform all of its obligations under this Agreement. (d) The SED Corporation hereby represents and covenants as follows: (i) The SED Corporation is a duly authorized and existing special purpose non-profit corporation, created and operating and in good standing under the laws of the State of Texas. (ii) The SED Corporation has taken all necessary corporate action to authorize its execution and delivery of this Agreement and its performance of its obligations hereunder. 20169409.7 6 (iii) The SED Corporation has available to it, without restriction, all funds required to be expended by it under this Agreement.. (iv) The SED Corporation will use its best efforts to complete all of its obligations under this Agreement when and as required. (v) The SED Corporation has not entered into, and will not enter into, any agreement (written or otherwise) with any person or entity that would prohibit or limit SED Corporation from ,performing all of its obligations under this Agreement. (vi) There is no litigation, claim, or proceeding pending of which the SED Corporation has received notice, nor to the knowledge of the SED Corporation is there any litigation, claim, or proceeding threatened that would prohibit or limit the SED Corporation from performing all of its obligations under this Agreement. (vii) The SED Corporation will not dissolve or take any action in furtherance thereof so long as it has not performed all of its obligations under this Agreement. (viii) The SED Corporation will not dispose of or transfer any of its assets to a person or entity not a party to this Agreement if such disposition or transfer would adversely affect its ability to perform all of its obligations under this Agreement. (e) The City hereby represents and covenants as follows: (i) The City is a duly authorized and existing Texas municipal corporation and home rule city, created and existing under the laws of the State of Texas. (ii) The City has taken all necessary action to authorize its execution and delivery of this Agreement and its performance of its obligations hereunder. (iii) The City has appropriated or expects to appropriate when required all funds required to be expended by it under this Agreement. (iv) The City will use its best efforts to complete all of its obligations under this Agreement when and as required. (v) The City has not entered into, and will not enter into, any agreement (written or otherwise) with any person or entity that would prohibit or limit the City from performing all of its obligations under this Agreement. (vi) There is no litigation, claim, or proceeding pending of which the City has received notice, nor to the knowledge of the City is there any litigation, claim, or proceeding threatened that would prohibit or limit the City from performing all of its obligations under this Agreement. 20169409.7 7 (vii) The City will not dissolve or take any action in furtherance thereof so long as it has not performed all of its obligations under this Agreement. (viii) The City will not dispose of or transfer any of its assets to a person or entity not a party to this Agreement if such disposition or transfer would adversely affect its ability to perform all of its obligations under this Agreement. Section 11. Termination. (a) If Lacks refuses or neglects to comply with any of the terms of this Agreement or, if any representation made by Lacks in this Agreement is false or misleading in any material respect and such refusal or default is not cured within sixty (60) days after written notice, this Agreement may be terminated by the City. (b) In the event Lacks allows ad valorem taxes on the Lacks Development to become delinquent and fails to timely and properly follow the legal procedures for their protest and/or contest, this Agreement may be terminated by the City. (c) In the event the City determines that Lacks is in default under this Agreement, the City will notify Lacks in writing at the address stated in Section 13 of this Agreement, and, if the defaults specified with reasonable particularity in such notice are not cured within sixty (60) days from the date of such notice, then this Agreement maybe terminated by the City upon written notice to Lacks. (d) If the City terminates this Agreement, taxes without rebate will be due for the year in which termination occurred and shall accrue without rebate for all tax years thereafter. (e) If during the term of this Agreement Lacks should discontinue all operations at the Lacks Development, then the City shall have the right to: (i) recapture one hundred percent (100%) of the taxes rebated in prior years and the year in which such discontinuance occurs; and (ii) terminate this Agreement. Section 12. Representatives. Each Party will designate a representative and will notify all other Parties in writing of such designation and any changes in such designations. Each Party's representative will be the contact person for such Party to facilitate completion of its obligations under this Agreement. The initial designated representatives are identified in Section 13. Section 13. Notices. All notices and requests for information or action under this Agreement shall be given in writing and delivered by personal delivery, electronic delivery, registered mail, or overnight delivery service to the following addresses: 20169409.7 g If to Lacks: Lack Properties, Inc. 200 South Ben Jordan Victoria, Texas 77901 Attention: Melvin Lack or David Baggs Fax number: (361) 576-9814 e-mail address: mlack@lacks.com dbaggs@lacks.com with a copy to: Walker Keeling & Carroll LLP 210 East Constitution Victoria, Texas 77901 Attention: Lee Keeling Fax number: (361) 576-6196 e-mail address: lkeeling@wkcfirm.com If to the Partnership: San Antonio One Limited Partnership 2111 Woodward Avenue, Suite 910 Detroit, Michigan 48201 Attention: Charles A. Forbes Fax number: (313) 965-6457 e-mail address: grave151 @aol.com If to the County: Comal County, Texas 150 North Seguin, Suite 301 New Braunfels, Texas 78130 Attention: County Judge Fax number: (830) 620-5505 e-mail address: cctdrs@co.comal.tx.us with a copy to: Comal County District Attorney 150 North Seguin, Suite 307 New Braunfels, Texas 78130 Attention: Geoff Barr Fax number: (830) 608-2026 e-mail address: barrg@co.comal.tx.us If to the SED Corporation: Schertz Economic Development Corporation 1400 Schertz Parkway Schertz, Texas 78154 Attention: Director of Economic Development Fax number: (210) 659-3204 e-mail address: amadison@ci.schertz.tx.us 20169409.7 9 If to the City: City of Schertz, Texas 1400 Schertz Parkway Schertz, Texas 78154 Attention: Don Taylor, City Manager Fax number: (210) 659-3204 e-mail address: detaylor@ci.schertz.tx.us with a copy to: Michael Spain Fulbright & Jaworski L.L.P. 300 Convent Street, Suite 2200 San Antonio, Texas .78205 Fax number: (210) 270-7205 e-mail address: mspain@fulbright.com Section 14. No Partnership or Joint Venture. Nothing contained in this Agreement shall be construed to create or imply a partnership or joint venture between or among the Parties. Section 15. Other Agreements. This Agreement supercedes all other agreements between or among the Parties as to the subject matter hereof. .Section 16. Amendments. This Agreement may not be amended except in writing and signed or acknowledged by all Parties. Section 17. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unconstitutional, illegal, or otherwise unenforceable, and the Parties agree that such determination does not cause the remainder if this Agreement to fail to accomplish the goals of the Parties, the remainder of this Agreement shall continue in effect. Section 18. Counterparts. This Agreement may be executed in multiple counterparts but will be considered as a single instrument when it has been finally executed by all of the Parties. Section 19. Governing Law and Venue. This Agreement is governed by the laws of the State of Texas, and the Parties agree that venue shall be in the courts of Guadalupe County, Texas. Section 20. Effective Date and Term. This Agreement shall be effective on the date first above written (the "Effective Date") until (a) all actions required of all of the Parties have been completed or (b) this Agreement has been terminated pursuant to Section 11; provided, if the City is successful in establishing a reimbursement program as described in Section 7, this Agreement shall remain in effect for so long as reimbursements could be received by the County, the SED Corporation, and Lacks. [Remainder of page intentionally left bZank.J 20169409.7 10 IN WITNESS WHEREOF, this Agreement is hereby approved by the Parties, as of the Effective Date. LACK PROPERTIES G COMAL COUNTY, TEXAS By: e~A sy: Title: County Judge SAN ANTONIO ONE LIMITED SCHERTZ ECONOMIC DEVELOPMENT PARTNERSHIP CORPORATION By: By: Charles A. Forbes, General Partner President CITY OF SCHERTZ, TEXAS 1 By: City Manager 20169409.7 S-1 IN WITNESS WHEREOF, this Agreement is hereby approved by the Parties, as of the Effective Date. LACK PROPERTIES, INC. COMAL COUNTY, TEXAS By: BY~ Title: County Judge SAN ANTONIO ONE LIMITED SCIIERTZ ECONOMIC DEVELOPMENT PARTNERSHIP CORPORATION By: 1 By: Charles A. Forbes, Gen ral Partner President CITY OF SCHERTZ, TEXAS • By: City Manager 20169409.7 S- I IN WITNESS WHEREOF, this Agreement is hereby approved by the Parties, as of the Effective Date. LACK PROPERTIES, INC. COMAL COUNTY, TEXAS By: BY~ Title: County Judg SAN ANTONIO ONE LIMITED SCHERTZ ECONOMIC DEVELOPMENT PARTNERSHIP CORPORATION BY ~ By ~ , ~l~J Charles A. Forbes, General Partner President CITY OF SCHERTZ, TEXAS By: City Manager 20169409.7 S-I Exhibit A Map Map showing the location of the Partnership Tract, the Lacks Development Site, and the Project location attached 20169409.7 A-1 a V~ . lip ?ffi ,f ~ ~ ~ ` ~'i'l(~~' .4 ; '_2`;•,c" 4 ~ ~1 -a',Itr13 §Cy ~ ~ i ~ ( ~ , ~ Fat: ~ J~ \ ~ / ~ 1 y J, ~ its( ~~r - - r '..~~:~~t~: t ~ ~ - ~.r ,i ..y - ~ll~ t _ _ _ '~i _ - ~ _ I ~ ~ ( ' 2.^-`' ~ ~ 3CHWAB RO PHASE 2 ~ ~ ~+r. g IMPROVE T8 SCHWAB ROAD ~ I I ~ IMPROV6MEN \ I 1 ~ ~ ~e l I I ooop; ooo®®s®®o®~ eo ~1 p aa~ ~ ~ ~~6g~ ®o®®©ao o eo i a ~ 5 ~ Rae c ~ ~ ~ 4~~ a ~ s s r s a ~ ~ ~ c ~Q~ ~s 4 ~:9%3~7~ j ~i PIl6M l:Q54i; ;i ~ )i(~~~~111~ ~ ~ . g ~ R Y ~ • ~ c a i r a iFD i i i y 3 i 5.yy Y 6p 6 i ~i ig i i ~ ~ 6 tg°5ba~~U'~E~ i#.i ~ ~ ~ ~ ASS aP 20169409.7 A-2 Exhibit B Lacks Development Building Description: Usable space -approximately 300,000 square feet Cost -approximately $12,000,000 Cost of personal property to be in building -approximately $9,700,000 Employee Details: Projected employees by December 2008 -approximately 245 Annual payroll by December 2008 -approximately $5,000,000 Lacks Development Timetable: Distribution Center Site Work* -January 2007 Distribution Center Completion - later of December 2008 or 9 months after completion of the Project, provided any delay in completion of the Project is not due to the failure of Lacks to perform its obligations hereunder. " Actual start date may vary based on processes required by the City with respect to the site plan, platting, and pernutting. 20169409.7 B-1 Exhibit C Ad Valorem Tax Phase-In Rebate and Inventory Tax Rebate Ad Valorem Tax Phase-In Rebate Projected Calculations: Year Antici ated Value 2008 $42,951.60 2009 42,951.60 2010 42,951.60 2011 42,951.60 2012 42,951.60 2013 42,951.60 r..---~~-- 2014 42,951.60 2015 42,951.60 2016 42,951.60 2017 42,951.60 ----...__._...---..___..._......_._._._4__..__...._.___.__...______..._.._.__...._...__.._...._......._...... Total $429,516.00 Inventory Tax Rebate Projected Calculations: ------.._..._~........__.._..-~-----....__.T Year Anticipated Value 2007 $39,770.00 2008 39,770.00 2009 39,770.00 Total $119,310.00 Total inventory tax rebate will not exceed $120,000. 20169409.7 C-1