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HomeMy WebLinkAboutRES 01-073 RESOLUTION NO. 01-073 THAT the City Manager be and he is hereby authorized to execute a tax abatement agreement with WLK Limited Partnership and Baker McMillen Company. The agreement is substantially in the form as Exhibit W attached hereto and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2001. - Mayor - Pro Tem GAMRESOLUTRAGENDAI.RES AGREEMENT STATE OF TEXAS § COUNTY OF JEFFERSON § This Agreement is entered into by and between the City of Beaumont, Texas, a home-rule city and municipal corporation of Jefferson County, Texas, acting herein by and through its City Manager, hereinafter referred to as "City," and WLK Limited Partnership and Baker McMillen Company, acting by and through their Presidents, hereinafter referred to as "Owners." WITNESSETH : On the 12'h day of December, 2000, the City Council passed Resolution No. 00-318 establishing a Reinvestment Zone for commercial industrial tax abatement, hereinafter referred to as "Resolution," as authorized by Vernon's Texas Civil Statutes Tax Code, Section 312.001, et seq, as amended, hereinafter referred to as "Statute." WHEREAS, in order to maintain and/or enhance the commercialAndustdal economic and employment base of the Beaumont area to the long interest and benefit of the City, in accordance with said Resolution and Statute, the parties hereto do mutually agree as follows: 1. The property to be the subject of this Agreement shall be that property described by metes and bounds and map attached hereto as Exhibit"A" and made a part hereof and shall be hereinafter referred to as "Premises." 2. The Owner shall immediately commence construction of a certain approximately 50,000 square foot building located on the premises. The total cost of WWWIAGREEMENTS\REMEST.AGR EXHIBIT "A" construction is estimated to be not less than One Million Two Hundred Thousand Dollars ($1,200,000). 3. The Owner agrees and covenants that itwill diligently and faithfully, in a good and workmanlike manner, pursue the completion of said improvements of the Premises as a good and valuable consideration of this Agreement. Owner further covenants and agrees that all construction will be in accordance with applicable City codes, ordinances and policies. In further consideration, Owner shall thereafter, during the five (5) year term of this Agreement, use its good faith efforts to continuously operate and maintain the Premises as a manufacturing facility. 4. In the event that(1)the improvements or facility for which an abatement has been granted are not completed at a cost of at least $1,200,000, excluding land costs or (2) Owner allows its ad valorem taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest and/or contest of any such ad valorem taxes or (3) Owner breaches any of the terms and conditions of this Agreement, then this Agreement shall be subject to termination and all delinquent taxes and taxes which otherwise would have been paid to the City without the benefit of abatement will become a debt to the City and shall be due, owing and paid to the City within sixty (60) days of any such event. In the event that the Owner defaults in the terms and conditions of this Agreement, then the City shall give the Owner written notice of such default and if the Owner has not cured such default within thirty (30) days of said written notice, this - 2 - G:IRMVNMGREEMENTSVtEINVEST.AGR Agreement may be terminated by the City. If the default is of such a nature that it cannot reasonably be cured or remedied within a thirty (30) day period and owner fails to use its best efforts to commence to cure the same during the thirty (30) day period, this Agreement may be terminated by the City. Notice shall be in writing and shall be delivered by personal delivery or certified mail addressed as follows: WLK Limited Partnership Baker McMillen Co. 3688 Wyoga Lake Road Stow, OH 44224 Contact: Bill Kimmerle Tony Silvidi 5. The Owner agrees to limit the uses of the premises consistent with the general purpose of encouraging development or redevelopment during the term of this Agreement. 6. Annually on the anniversary date of this Agreement, Owner shall certify in writing to City that Owner is in compliance with all terms of this Agreement. 7. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. This Agreement cannot be assigned by Owner unless written permission is first granted by the City, which permission shall be in the sole discretion of the City. 8. It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently, and the City assumes no - 3 - G:VWW%AGREEMENTSVMNVEST.AGR responsibilities or liabilities in connection therewith to third parties. The Owner further agrees to indemnify and hold the City, its officers, agents and employees harmless from any and all kinds of claims, losses, damages, injuries, suits or judgments involving the City and relating to such improvements, even should suits allege negligent or intentional acts on the part of City, its officers, agents or employees. 9. The Owner further agrees that the City, their agents and employees, shall have reasonable right of access to the Premises to inspect the improvements in order to insure that the improvements are made according to conditions of this Agreement. After completion of the improvements, the City shall have the continuing right to inspect the Premises to insure that the Premises are thereafter maintained and operated in accordance with this Agreement. City's entries will not unreasonably interrupt any of Owner's business on the premises. Owner will not incur any liability because of City's entry on the premises. 10. Subject to complete compliance with the terms and conditions of this Agreement and subject to the rights of holders of any outstanding bonds of the City, all increases in ad valorem real property taxes resulting from the development and improvement of the Premises,otherwise owed to the City, are hereby abated thirty percent (30%) for a period of five (5) years beginning the year after construction is completed as determined by City. - 4 - G:%RNIWMGREEAAENTSIREINVEST.AGR 11. This Agreement was authorized by resolution of the City Council at its council meeting on the day of , 2001, authorizing the City Manager to execute the Agreement on behalf of the City. 12. This Agreement was authorized by Board Minutes of the Board of Directors of Baker McMillen Company on the day of , 13. This shall constitute a valid and binding agreement between the City and Owner when executed on behalf of said parties, for the abatement of City taxes in accordance therewith, regardless of whether any other taxing unit executes this Agreement. The Agreement is performable in Jefferson County, Texas, witness our hands this day of , 2001. CITY OF BEAUMONT By: Stephen J. Bonczek City Manager ATTEST: City Clerk 5 ' GNWMAGREEMENTMREINVESTJâ–ºGR BAKER McMILLEN COMPANY By: President ATTEST: WLK LIMITED PARTNERSHIP By: General Partner ATTEST: - 6 - G:VWVMMGREEMENTS\REINVEST.AGR