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HomeMy WebLinkAboutR25-683105 1 RESOLUTION R25-683 A RESOLUTION APPROVING THE EXECUTION OF A TAX ABATEMENT AGREEMENT WITH WALMART INC. WHEREAS, the Texas Property Redevelopment and Tax Abatement Act (the "Act") provides that the governing body of a municipality has the power to create one or more reinvestment zones for the abatement of ad valorem taxes assessed against real property or tangible personal property located on the real property, or both, in such zone provided that certain conditions as detailed in the Act are met; and WHEREAS, the City Council of the City of Plainview, Texas ("City Council"), through City Ordinance No. 24-3759 established the City of Plainview Reinvestment Zone No. 1 (Enterprise Zone Tract No. 950200 Block 3) ("TRZ EZ No. 1") as a reinvestment zone in accordance with the terms of the Act; and WHEREAS, the City Council elected to be eligible to participate in tax abatements and adopted its Tax Abatement Guidelines and Criteria (the "Guidelines") as required by Section 312.002(a) of the Act and as recorded in Resolution No. R24-622 approved by the City Council on January 9, 2024; and WHEREAS, the Guidelines constitute appropriate "guidelines and criteria" governing tax abatement agreements which may be entered into by the City as contemplated by the Act and provide for the availability of tax abatement for new construction of commercial or industrial improvements or other investment consistent with such guidelines and criteria; and WHEREAS, Walmart Inc. or its subsidiaries, including but not limited to Wal-Mart Stores East, LP and Wal-Mart Associates, Inc. ("Walmart"), owns a regional distribution center (the "Distribution Center"), including both real property and tangible personal property, within the TRZ EZ No. 1; and WHEREAS, Walmart is modernizing and updating the Distribution Center with a personal property capital investment of approximately $275,000,000 and has requested consideration of a personal property tax abatement for the Distribution Center pursuant to the Act and the Guidelines; and WHEREAS, the City Council finds that the Tax Abatement Agreement and Walmart's investment in the Distribution Center will benefit the TRZ EZ No. 1 and contribute to the economic development of the City, and are consistent with encouraging development of the TRZ EZ No. 1 in accordance with the purposes for its creation and in compliance with the Guidelines. Resolution R25-683 Page 1 of 2 106 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Plainview, Texas that: 1. The City Council finds that entering into the Tax Abatement Agreement will serve the best interests of the City and its residents and comply with the Guidelines by: (i) providing an incentive for improvements to the Distribution Center, an existing facility, for the purpose of modernization or expansion; and (ii) encouraging retention or expansion of an existing, major employer. 2. The City Council finds that Walmart's continued use of the Distribution Center is expected to continue to significantly enhance the economic and employment base of the City, in accordance with the purposes for the creation of TRZ EZ No.1 and in compliance with the Guidelines. 3. The City Council approves the execution of a Tax Abatement Agreement with Walmart for the Distribution Center. PASSED AND APPROVED this 11th day of November, 2025 Charles Star es, M yor ATTEST: -/ ?&� 4z- Belinda Hinojosa, City tary 1 Resolution R25-683 Page 2 of 2