Crockett grants 30-day extension to Lincoln Lumber after notice of default

The City of Crockett granted Lincoln Lumber a 30-day extension to the cure period under its tax abatement and incentives agreement after the city issued a notice of default following the company's closure of its Crockett site.

City staff told council Lincoln Lumber acknowledged the closure and the default but has asked for time to meet with legal counsel and the city's commissioners to present additional information. Staff said Lincoln Lumber argues it may have met or exceeded some obligations under the agreement, but because operations at the Crockett site have ceased, the company is technically in default under the agreement's performance and clawback provisions.

Staff asked council to grant a 30-day extension to allow Lincoln Lumber to present new information and any proposed concessions; staff said they did not have dates for when Lincoln Lumber first notified the city of closure but confirmed a notice of default had been prepared and sent. Several council members expressed concern about setting a precedent if the city forgave performance requirements for other businesses; staff said any changes would be considered after counsel and commissioners reviewed the company's presentation.

A motion to approve a 30-day extension to the cure period was made, seconded and carried by council on a voice vote. Staff said the extension simply opens the opportunity for Lincoln Lumber to present its case to counsel and the commissioner's court and does not itself modify the underlying contract or release the company from potential repayment obligations pending council and counsel review.