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HomeMy WebLinkAboutPACKET NOV 13 2001 WOW City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 13, 2001 1:30 P.M. AGENDA OPENING • Invocation Pledge Roll Call • Presentations and Recognition • Public Comment: Persons may speak on scheduled agenda items • Consent Agenda GENERAL BUSINESS 1. Consider authorizing the City Manager to execute Industrial District Contracts with Centana Intrastate Pipeline, L.L.C., Duke Energy and Sabine Gas Transmission Company 2. Consider authorizing the City Manager to execute Industrial District Contracts with Dupont, Dupont Dow Elastomers, BMC Holdings, Inc. and Ineos Acrylics, Inc. 3. Consider approving a contract to repair and paint the 5,000,000 gallon steel water storage tank located on the west side of Eastex Freeway in Rose Acres (Loeb) COMMENTS • Councilmembers comment on various matters • City Manager's Report- USDA Emergency Funding, STAG Program Funding, Sales Tax Update, Oh Holy Night Production, Second Municipal Courtroom, Holiday Budget Impact, Celebration of Nations Ride for the Arts, Digital Cities Survey Winner • Public Comment (Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Beaumont Professional Firefighters' Local 399 Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kyle Hayes at 880-3716 a day prior to the meeting. 1 November 13, 2001 Consider authorizing the City Manager to execute Industrial District Contracts with Centana Intrastate Pipeline, L.L.C., Duke Energy and Sabine Gas Transmission Company V~ City of Beaumont 117EJ!j Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kyle Hayes, Economic Development Director MEETING DATE: November 13, 2001 AGENDA MEMO DATE: November 8, 2001 REQUESTED ACTION: Consider authorizing the City Manager to execute Industrial District Contracts with Centana Intrastate Pipeline, L.L.C., Duke Energy and Sabine Gas Transmission Company. RECOMMENDATION The Administration recommends approval of a resolution authorizing the City Manager to execute Industrial District Contracts with Centana Intrastate Pipeline, L.L.C., Duke Energy and Sabine Gas Transmission Company. BACKGROUND Industrial District Contracts enable the City to collect payments in lieu of taxes from industries located outside the city limits. The contracts with Centana Intrastate Pipeline, Duke Energy and Sabine Gas Transmission will be for seven years beginning January 1, 2002. The in-lieu of tax payments will be based on a ratio of 80%of property taxes due to the City as if the industry were located within the city limits in 2002-2004 and 75% of property taxes due to the City in 2005-2008. The 2002 payment by Centana will be $241,423, the payment by Duke Energy will be $49,333 and the payment by Sabine Gas Transmission Company will be $56,011. Payments are due to the City by February the 1" of each year. The Administration is currently working to renew 14 industrial agreements that expire December 31, 2001. During the review process, it was discovered that the three above companies were located outside the city limits of Beaumont and that they did not have in-lieu agreements with the City. The Administration originally proposed annexing an area which included the companies;however,representatives of the companies expressed their desire to enter into in-lieu agreements. Draft agreements are attached for your review. The City Attorney and Economic Development Director are finalizing the agreements with the hope that the City will enter into the agreements with the said companies on Wednesday, November 14, 2001. BUDGETARY IMPACT Industrial payments are estimated to total$11,728,700 in FY 2002 which are approximately 17% of the General Fund revenues. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Economic Development Director. RECOMMENDED MOTION Approve/Deny authorizing the City Manager to execute Industrial District Contracts with Centana Intrastate Pipeline, L.L.C., Duke Energy and Sabine Gas Transmission Company. THE STATE OF TEXAS § DRAFT COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and Centana Intrastate Pipeline, L.L.C.,its parent,subsidiaries and affiliates,hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial,and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS,the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: S:VYLE\Centana Interstate Stg 1 / 7 ARTICLE I. COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2002 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Centana Intrastate Pipeline, L.L.C., properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term"assumed City taxes due"shall be calculated by the following formula: Assumed City Taxes Due: $47,524,120 / 100 X 0.635 = $301,778 Year 1 80% of Assumed City Taxes Due = $241,423 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2002 shall be in the amount of$241,423 and shall be due and payable on or before February 1, 2002. Each October thereafter, the Finance Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement;for example, in October, 2002,the 2002 assessed values shall be used for the February 1, 2003 payment. S:VCYLE\Centana Interstate Stg 2/ 7 If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties have been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2003 and 2004 payments shall be 80% of assumed City taxes due. The 2005 - 2008 payments shall be 75% of assumed City taxes. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys'fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. SAKYLEICentana Interstate Stg 3/ 7 ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III. SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City as provided under this Agreement. Accordingly and as to payments due under this contract no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has entered into a contract in lieu of taxes with the City,that provides for a continuation of like payments to the City. ARTICLE IV. CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in anyway cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered bythis Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full S:XYLE\Centana Interstate Stg 4/ 7 payment for the year during which such annexation become effective if the annexation becomes effective after January 1 st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District,any rules,regulations,or any other actions: (a)seeking in any way to control the platting and subdivisions of land, (b)prescribing any buildings, electrical, plumbing or inspection standards or equipment, or(c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to fumish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. The City will also provide police protection if called upon by the Jefferson County Sheriff s Department for assistance. S:VKYLElcentana Interstate Stg 5/ 7 ARTICLE IV. TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company,the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE V. TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2002, and ending on December 31, 2008. ARTICLE VI. NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY Stephen J. Bonczek, City Manager Centana Intrastate Pipeline, L.L.C. City of Beaumont Property Tax Division 801 Main P.O. Box 1642 Beaumont, Texas 77704 Houston, Texas 77251-1642 If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder SAKYLEICentana Interstate Stg 6 / 7 prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 7 pages, is executed in duplicate counterparts as of this day of , 2001. CITY OF BEAUMONT, TEXAS By: Stephen J. Boncek ATTEST: City Manager Barbara Liming City Clerk CENTANA INTRASTATE PIPELINE, L.L.C. By: ATTEST: SAKYLE\Centana Interstate Stg 7/ 7 THE STATE OF TEXAS § D P& � COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and Duke Energy Field Services, Inc., its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial,and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS,the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: SAKYLEADuke Energy Sery Inc 1 / 7 ARTICLE I. COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2002 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Duke Energy Field Services, Inc. properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term"assumed City taxes due"shall be calculated by the following formula: Assumed City Taxes Due: $9,711,280 / 100 X 0.635 = $61,667 Year 1 80% of Assumed City Taxes Due = $49,333 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2002 shall be in the amount of $49,333 and shall be due and payable on or before February 1, 2002. Each October thereafter, the Finance Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement;for example, in October,2002,the 2002 assessed values shall be used for the February 1, 2003 payment. SAKYLE\Duke Energy Sery Inc 2/ 7 If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties have been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2003 and 2004 payments shall be 80% of assumed City taxes due. The 2005 - 2008 payments shall be 75% of assumed City taxes. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys'fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. SAKYLEOuke Energy Sery Inc 3/ 7 ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III. SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City as provided under this Agreement. Accordingly and as to payments due under this contract no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has entered into a contract in lieu of taxes with the City that provides for a continuation of like payments to the City. ARTICLE IV. CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in anyway cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full S:WnE\Duke Energy Sery Inc 4/ 7 payment for the year during which such annexation become effective if the annexation becomes effective after January 1 st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being bome equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement,there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District,any rules, regulations,or any other actions: (a)seeking in any way to control the platting and subdivisions of land,(b)prescribing any buildings, electrical, plumbing or inspection standards or equipment, or(c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. The City will also provide police protection if called upon by the Jefferson County Sheriffs Department for assistance. SAKYLE)Duke Energy Sery Inc 51 7 ARTICLE IV. TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE V. TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2002, and ending on December 31, 2008. ARTICLE VI. NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY Stephen J. Bonczek, City Manager Duke Energy Field Services, Inc. City of Beaumont Property Tax Division 801 Main P.O. Box 1642 Beaumont, Texas 77704 Houston, Texas 77251-1642 If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder SAKYLE1Duke Energy Sery Inc 6/ 7 prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 7 pages, is executed in duplicate counterparts as of this day of , 2001. CITY OF BEAUMONT, TEXAS By: Stephen J. Boncek City Manager ATTEST: Barbara Liming City Clerk DUKE ENERGY FIELD SERVICES, INC. By: ATTEST: &WYLE\Duke Energy Sery Inc 7/ 7 THE STATE OF TEXAS § DRAFT COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and Sabine Gas Transmission Company, its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial,and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS,the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: SAKYLE\Sabine Gas Trans Co 11-01.wpd 1 / 7 ARTICLE I. COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2002 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Sabine Gas Transmission Company properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due"shall be calculated by the following formula: Assumed City Taxes Due: $11,025,800 / 100 X 0.635 = $70,014 Year 1 80% of Assumed City Taxes Due = $56,011 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2002 shall be in the amount of $56,011 and shall be due and payable on or before February 1, 2002. Each October thereafter, the Finance Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement;for example, in October, 2002,the 2002 assessed values shall be used for the February 1, 2003 payment. S:\KYLE\Sabine Gas Trans Co 11-01.wpd 2 / 7 If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties have been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2003 and 2004 payments shall be 80% of assumed City taxes due. The 2005 - 2008 payments shall be 75% of assumed City taxes. No payment shall be more than 10% less than the previous year's payment. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. S:IKYLE1Sabine Gas Trans Co 11-01.wpd 3 / 7 ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III. SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City as provided under this Agreement. Accordingly and as to payments due under this contract no such sale shall reduce the amount due the City underthis contract until the purchaserof such facility has entered into a contract in lieu of taxes with the City that provides for a continuation of like payments to the City. ARTICLE IV. CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in anyway cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered bythis Agreement belonging to said Company is reasonably necessaryto promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full SIKYLE\Sabine Gas Trans Co 11-01.wpd 4 / 7 payment for the year during which such annexation become effective if the annexation becomes effective after January 1 st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement,there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations,or any other actions: (a)seeking in any way to control the platting and subdivisions of land, (b)prescribing any buildings, electrical, plumbing or inspection standards or equipment, or(c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. The City will also provide police protection if called upon by the Jefferson County Sheriffs Department for assistance. S:\KYLE\Sabine Gas Trans Co 11-01.wpd 5/ 7 ARTICLE IV. TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE V. TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2002, and ending on December 31, 2008. ARTICLE VI. NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY Stephen J. Bonczek, City Manager Sabine Gas Transmission Company City of Beaumont 1100 Louisiana, STE 515 801 Main Houston, Texas 77002-5219 Beaumont, Texas 77704 If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder S:\KYLE\Sabine Gas Trans Co 11-01.wpd 6 / 7 prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 7 pages, is executed in duplicate counterparts as of this day of , 2001. CITY OF BEAUMONT, TEXAS By: Stephen J. Bonczek ATTEST: City Manager Barbara Liming City Clerk SABINE GAS TRANSMISSION COMPANY By: ATTEST: SAKYLE\Sabine Gas Trans Co 11-01.wpd 7 / 7 2 November 13, 2001 Consider authorizing the City Manager to execute Industrial District Contracts with Dupont, Dupont Dow Elastomers, BMC Holdings, Inc. and Ineos Acrylics, Inc. City of Beaumont �• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kyle Hayes, Economic Development Director MEETING DATE: November 13, 2001 AGENDA MEMO DATE: November 8, 2001 REQUESTED ACTION: Consider authorizing the City Manager to execute Industrial District Contracts with Dupont, Dupont Dow Elastomers, BMC Holdings, Inc. (formerly Beaumont Methanol) and Ineos Acrylics, Inc. (formerly ICI Acrylics). RECOMMENDATION The Administration recommends approval of a resolution authorizing the City Manager to execute Industrial District Contracts with Dupont,Dupont Dow Elastomers,BMC Holdings,Inc.and Ineos Acrylics, Inc. BACKGROUND Industrial District Contracts enable the City to collect payments in lieu of taxes from industries located outside the city limits. The contracts with the above companies are for seven years beginning January 1, 2002. The in- lieu of tax payments will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2002-2004 and 75% of property taxes due to the City in 2005-2008. The 2002 payments will be $669,074 (Dupont), $139,538 (Dupont Dow Elastomers), $546,559(BMC Holdings, Inc.) and$408,466(Ineos Acrylics, Inc.). Payments are due to the City by February the ls` of each year. The Administration is currently working to renew 14 industrial agreements that expire December 31, 2001. Draft agreements with the above companies are attached for your review. The City Attorney and Economic Development Director are finalizing the agreements with the hope that the City will enter into the agreements with said companies on Wednesday, November 14, 2001. BUDGETARY IMPACT Industrial payments are estimated to total$11,728,700 in FY 2002 which are approximately 17% of the General Fund revenues. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Economic Development Director. RECOMMENDED MOTION Approve/Deny authorizing the City Manager to execute Industrial District Contracts with Dupont, Dupont Dow Elastomers, BMC Holdings, Inc. and Ineos Acrylics, Inc. THE STATE OF TEXAS § V91%.� COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and E. I. duPont deNemours and Company, its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. I In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ARTICLE I. COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2002 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: $131,707,400/ 100 X 0.635 = $836,342 Year 1 80% of Assumed City Taxes Due = $669,074 4. Payment Procedures 2 The procedures for determining and making such payments shall be as follows: (a) The payment for 2002 shall be in the amount of$669,074 and shall be due and payable on or before February 1, 2002. Each October thereafter, the Finance Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement; for example, in October, 2002, the 2002 assessed values shall be used for the February 1, 2003 payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value in question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties have been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2003 and 2004 payments shall be 80% of assumed City taxes due, except such payment shall not exceed or be less than the previous year's payment by more then 10%. The 2005 through 2008 payments shall be 75% of assumed City taxes due, except the payment shall not exceed or be less than the previous year's payment 3 by more than 7%. Should the assessed value of the Company's properties decrease more than 20% due to the physical shutdown of an operating unit, compared to the previous year, then payments shall be calculated as follows: 1. The payment for the year after the 20% plus reduction shall not be affected and shall be calculated as set out in this subsection. 2. If the assessed value for the next year does not increase, the payment shall be calculated using the reduced value notwithstanding the 10% and 7% upper and lower limits set out above. 3. If the assessed value for the next year increases above the 20% limit, the payment shall be calculated as set out in "(b)" above. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, reasonable attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not received within 30 days of the due date, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured for the year in which the payment was not timely made and paid to the City within 30 days of any such event after notice by the City as set out herein that the 4 payment is delinquent. ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson CountyAppraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III. SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City as provided under this Agreement. Accordingly and as to payments due under this contract no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has entered into a contract in lieu of taxes with the City that provides for a continuation of like payments to the City. 5 ARTICLE IV. FACILITIES ON COMPANY PROPERTY OWNED BY OTHERS City and Company recognize that Company has transferred ownership of certain facilities and properties to other entities. Specifically, Company has transferred ownership of facilities to BMC Holdings, Inc., DuPont Dow and Ineos Acrylics, Inc. (herein the "Entities") and that the value of such facilities would not be included within the definition of Company's "assessed value" as defined herein Article I, 2. City has entered into contracts in lieu of taxes with the Entities; however, should the Entities fail or refuse to make required payments under such contracts City will notify Company of default. Company will request of the City annexation of so much of the properties of Company as are necessary to annex facilities and properties belonging to the Entities. Company agrees that it will not oppose such annexation and Company further realizes that some portion of the properties of Company may have to be included within the annexation effort by City. Annexation of the Company's properties shall be limited to include only that which is necessary to satisfy the state's requirement for a strip allowing access to the Entities. Such annexation by City will not effect the amount of the payment due by Company to City in the year the annexation takes place. ARTICLE V. CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: 6 (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which annexation becomes effective if the annexation becomes effective after January 1st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne by the City. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any 7 renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. The City will also provide police protection if called upon by the Jefferson County Sheriff's Department for assistance. ARTICLE VI. TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VII. AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "affiliates" and to any properties owned or acquired by said affiliates within 8 the area owned by Company, and where reference is made herein to land, property and improvements owned by Company, that shall also include land, property and improvements owned by its affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (50%) or more of the stock having the right to vote for the election of directors. ARTICLE VIII. TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2002, and ending on December 31, 2008. ARTICLE IX. NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: 9 TO CITY TO COMPANY City Manager E. I. duPont deNemours and City of Beaumont Company 801 Main Property Tax, Suite 135 P. O. Box 3827 140 Cypress Station Drive Beaumont, Texas 77704 Houston, Texas 77090 ARTICLE X. EXCLUSIONS 1. In determining the assessed value of the Company facilities there is to be excluded therefrom the value of any new plant facilities, replacement, modernization or additions that significantly increase the assessed value of Company's properties. "Significantly increase" shall be defined as an increase in assessed value of fifty percent (50%) or more above the prior year's assessed value of Company's properties excluding land. Any number of projects (whether new construction, replacement, modernization or additions) may be added together to determine whether they aggregate a significant increase in the assessed value of Company's properties so long as construction of each project begins within a single 12-month period. This exclusion will be restricted to include only a new and distinct processing facility, replacement, modernization or additions to present facilities, and shall not include the maintenance, reconditioning, upgrading, refurbishing or repairing of existing process facilities. The intent of this exclusion is to encourage major new capital investment within the extraterritorial environs of the City. Determination of qualifications for this exclusion shall be made by the City Manager upon petition by Company and presentation of all 10 pertinent data. Company shall notify the City Manager of its intention to claim an exclusion at least one hundred twenty (120) days prior to the end of the calendar year prior to the year in which the exclusion will take place. Subject to the upper and lower limitations on payments set out in Article 14 (b) hereof Company agrees that to whatever extent that the non-excluded plant's accessed value on realty improvements is reduced for whatever reason (excepting from fire, explosion, or other casualty or accident or from any natural disaster), an equivalent amount (dollar for dollar) of assessed value on realty improvements of the excluded facilities shall be deemed for the purposes of this agreement to lose its exclusion for the current year and accordingly shall be deemed to be included in the non-excluded plant's total assessed value and payments shall be calculated and made by Company thereon to City for the subsequent year, however, in no event shall the offset exceed the fair market value of the realty improvements that would otherwise be excluded. Company agrees to provide the City Manager with all the information necessary for the City Manager to determine whether the expenditure by the Company is qualified for exclusion. The seven-year exclusion shall commence the first calendar year following the completion of construction and it shall be in the amount of 100% for the first, second and third years, 75% of value for the fourth and fifth years, and 50% of value for the sixth and seventh years. 2. In determining the assessed value of the Company's facilities, there is also to be excluded therefrom the value of incomplete construction also known as 11 construction in progress. This exclusion applies to new and distinct plant facilities or modernization of or additions to present facilities as specified in item (1) above, regardless of whether such will significantly increase the assessed values of Companies properties. 3. If a question arises relating to the exclusion amount, payment shall be made based on the last Certified assessed value, without the questioned exclusion. An adjustment to the payment, if any, shall be made following resolution of the question. The determination concerning whether a capital expenditure by Company is qualified for exclusion hereunder shall be made by the City Manager. Any appeal of the decision of the City Manager shall be made in writing to the City Council within fifteen (15) days of the decision of the Manager. The decision of the City Council shall be final. If any part or all of this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. 12 IN WITNESS THEREOF, this Agreement, consisting of 13 pages, is executed in duplicate counterparts as of this day of , 2001. CITY OF BEAUMONT, TEXAS By: Stephen J. Bonczek City Manager ATTEST: Barbara Liming City Clerk E. I. duPont deNemours and Company By: ATTEST: 13 THE STATE OF TEXAS § D COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and DuPont Dow Elastomers, L.L.C., its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. SAKYLEOUPONT Elastomers-08-01.wpd 1 / 10 In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: SAKYLEOUPONT Elastomers-08-01.wpd 2/ 10 ARTICLE I. COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2002 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: $27,468,200/ 100 X 0.635 = $174,423 Year 1 80% of Assumed City Taxes Due = $139,538 4. Payment Procedures The procedures for determining and making such payments shall be as follows: S:WYLE\DUPONT Elastomers-08-01.wpd 3/ 10 (a) The payment for 2002 shall be in the amount of $139,538 and shall be due and payable on or before February 1, 2002. Each October thereafter, the Finance Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement; for example, in October, 2002, the 2002 assessed values shall be used for the February 1, 2003 payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties have been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2003 and 2004 payments shall be 80% of assumed City taxes due. The 2005 - 2008 payments shall be 75% of assumed City taxes. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment SAKYLEOUPONT Elastomers-08-01.wpd 4/ 10 due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not received within 30 days of the due date, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured for the year in which the payment was not timely made and paid to the City within 30 days of any such event after notice by the City as set out herein that the payment is delinquent. ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District, which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III. SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City as provided under this Agreement. SAKYLEOUPONT Elastomers-08-01.wpd 51 10 Accordingly and as to payments due under this contract no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has entered into a contract in lieu of taxes with the City that provides for a continuation of like payments to the City. ARTICLE IV. CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation become effective if the annexation becomes effective after January 1st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such SAKYLE\DUPONT Elastomers-08-01.wpd 6 / 10 attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. The City will also provide police protection if called upon by the Jefferson County Sheriff's Department for assistance. ARTICLE IV. TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either SAKYLEOUPONT Elastomers-08-01.wpd 7/ 10 party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE V. AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "affiliates" and to any properties owned or acquired by said affiliates within the area owned by Company, and where reference is made herein to land, property and improvements owned by Company, that shall also include land, property and improvements owned by its affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (50%) or more of the stock having the right to vote for the election of directors. SAKYLETUPONT Elastomers-08-01.wpd 8 / 10 ARTICLE VI. TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2002, and ending on December 31, 2008. ARTICLE VII. NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY City Manager DuPont Dow Elastomers, L.L.C. City of Beaumont Property Tax, Suite 135 801 Main 140 Cypress Station Drive P. O. Box 3827 Houston, Texas 77090 Beaumont, Texas 77704 If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 10 pages, is executed in duplicate counterparts as of this day of , 2001. SAKYLEOUPONT Elastomers-08-01.wpd 9/ 10 CITY OF BEAUMONT, TEXAS By: Stephen J. Bonczek City Manager ATTEST: Barbara Liming City Clerk DuPont Dow Elastomers, L.L.C. By: ATTEST: SAKYLEOUPONT Elastomers-08-01.wpd 10/ 10 THE STATE OF TEXAS fI DV, COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and BMC Holdings, Inc., its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company leases land and owns improvements which are a part of the manufacturing, industrial,and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS,the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: SAKYLE\Beaumont Methanol-10-01.wpd 1 / 12 ARTICLE I. COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2002 and each calendar year thereafter for the duration of this Agreement, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due"shall be calculated by the following formula: Assessed value _ 100 x the current ad valorem tax rate by City Council of City = Assumed City Taxes due. 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2002 shall be in the amount of$546,559 and shall be due and payable on or before February 1, 2002. The February 1, 2002 payment is calculated as follows: Assumed City Taxes Due: $107,590,300 / 100 X .635 = $683,198 Year 1 80% of Assumed City Taxes Due = $546,559 SAKYLE\Beaumont Methanol-10-01.wpd 2 / 12 Each October thereafter, the Finance Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement;for example, in October, 2002,the 2002 assessed values shall be used for the February 1, 2003 payment. This assessed value less exclusions as described in Article 10 shall be used in the calculation of the payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value in question and an adjustment for the payment, with interest as specified in Section 42.43 of the Texas Property Tax Code for interest on tax refunds,will be made within thirty(30)days following such resolution. Should such final resolution increase the value of Company's properties, the Company's liabilities shall be calculated based on the final determination of value and Company shall pay within 30 days following such resolution the increased amount due to the City under their agreement plus interest from the date such payment should have been made to City under their contract. Interest shall be calculated in accordance with the tax code provisions for interest as calculated in Section 42.43 of the Texas Property Tax Code. (b) Afterthe assessed value of the Company's properties have been determined, the value of the property shall be calculated in accordance with the following schedule: The 2003 and 2004 payments shall be 80% of assumed City taxes due, except such payment shall not exceed or be less than the previous year's payment by more than 15%. S:\KYLE\Beaumont Methanol-10-01.wpd 3/ 12 The 2005-2008 payments shall be 75%of assumed City taxes due except the payment shall not exceed or be less than the Previous year's payment by more than 15%. If at any time during the term of contract, the assessed value of the properties is set at 40% less than the assessed value for 2001, the payments hereunder shall be as follows: 1. There shall be no change in the payment which would be due under this contract for the year after the year that the reduction in assessed value occurs. 2. Payment in subsequent years shall be based on the reduced assessed value without regard to the 15% upper and lower limits. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City such amount billed on or before February 1 each year. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If any annual payment is not made on or before any due date, the same penalties, interest, reasonable attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made,all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. SAKYLE\Beaumont Methanol-10-01.wpd 4 / 12 ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III. SALE BY COMPANY (a) Sale By Company. Company shall notify City of any sale of any or all of Company's facilities to any person or entity. As to payments due under this contract, no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has either assumed the Company's obligation underthis Agreement or entered into a written agreement with the City assuming all obligations of Company in this Agreement. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City under this Agreement. (b) Assignment. Company shall have the right to assign, transfer or convey all, or any part of, its rights, title and interest in this Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time during the term of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to the City. SAKYLE\Beaumont Methanol-10-01 mlad 5/ 12 Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. ARTICLE IV. CLOSURE OF FACILITY Company shall notify City of any plans to permanently close Company's facility at least nine months prior to the end of the calendar year. Permanent closure of Company's facility shall terminate Company's obligation to make payments in lieu of tax under this Agreement effective January 1s' of the year immediately following Company's timely notification to the City that it intends to permanently close the facility. It is the intent of the Parties that no payment of an in lieu of amount would be due in February of the year immediately following the year in which Company notified City of its intent to permanently close the facility so long as notification of such closure is given to the City at least nine months prior to the end of the calendar year. ARTICLE V. CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in anyway cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further SAKYLE\Beaumont Methanol-10-01.wpd 6 / 12 payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or Companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations,or any other actions: (a)seeking in any way to control the platting and subdivisions of land, (b)prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. SAKYLE\Beaumont Methanol-10-01.wpd 7/ 12 ARTICLE VI. TERMINATION It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company may enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and may obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VII. AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "affiliates"and to any properties owned or acquired by said affiliates within the area owned by Company, and where reference is made herein to land, property and improvements owned by Company, that shall also include land, property and improvements owned by its affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent(50%)or more of the stock having the right to vote for the election of directors. S:\KYLE\Beaumont Methanol-10-01.wpd 8 / 12 ARTICLE VIII. TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2002, and ending on December 31, 2008. ARTICLE IX. NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY City Manager BMC Holdings, Inc. City of Beaumont P.O. Box 20339 Beaumont, Texas 77704 Beaumont, Texas 77720 ARTICLE X. EXCLUSIONS 1. In determining the assessed value of the Company facilities there is to be excluded therefrom the value of any new plant facilities, replacements, modernization of or additions that significantly increase the assessed value of Company's properties. "Significantly increase" shall be defined as an increase in assessed value of fifty percent (50%) or more above the assessed value of Company's properties the year prior to the year construction began. This exclusion will be restricted to include only a new and distinct SAKYLE\Beaumont Methanol-10-01.wpd 9 / 12 processing facility, replacement, modernization of or additions to present facilities, and shall not include the maintenance, reconditioning, upgrading, refurbishing or repairing of existing process facilities. The intent of this exclusion is to encourage major new capital investment within the extraterritorial environs of the City. Determination of qualifications for this exclusion shall be made by the City Manager upon petition by Company and presentation of all pertinent data. Company shall notify the City Manager of its intention to claim an exclusion at least one hundred twenty (120) days prior to the end of the calendar year prior to the year in which the exclusion will take place. Subject to the upper and lower limitations on payments set out in Article 14 (b) hereof Company agrees that to whatever extent that the non-excluded plant's accessed value on realty improvements is reduced for whatever reason (excepting from fire, explosion, or other casualty or accident or from any natural disaster), an equivalent amount (dollar for dollar) of assessed value on realty improvements of the excluded facilities shall be deemed forthe purposes of this agreement to lose its exclusion for the current year and accordingly shall be deemed to be included in the non-excluded plant's total assessed value and payments shall be calculated and made by Company thereon to City for the subsequent year, however, in no event shall the offset exceed the fair market value of the realty improvements that would otherwise be excluded. Company agrees to provide the City Managerwith all the information necessary for the City Manager to determine whether the expenditure by the Company is qualified for exclusion. The exclusion shall commence the first calendar year following the completion of construction and it shall be in the amount of 100% for the first, second and SAKYLE\Beaumont Methanol-10-01.wpd 10/ 12 third years, 75% of value for the fourth and fifth years, and 50% of value for the sixth and seventh years. 2. In determining the assessed value of the Company's facilities, there is also to be excluded therefrom the value of incomplete construction also known as construction in progress. This exclusion applies to new and distinct plant facilities or modernization of or additions to present facilities as specified in item (1)above, regardless of whether such will significantly increase the assessed values of Companies properties. 3. If a question arises relating to the exclusion amount, payment shall be made based on the last Certified assessed value, without the questioned exclusion. An adjustment to the payment, if any, shall be made following resolution of the question. The determination concerning whether a capital expenditure by Company is qualified for exclusion hereunder shall be made by the City Manager. Any appeal of the decision of the City Manager shall be made in writing to the City Council within fifteen (15) days of the decision of the Manager. The decision of the City Council shall be final. ARTICLE XI. CONTINUATION If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 12 pages, is executed in duplicate counterparts as of this day of , 2001. S:\KYLE\Beaumont Methanol-10-01 mlad 11 / 12 CITY OF BEAUMONT, TEXAS By: Stephen J. Bonczek City Manager ATTEST: Barbara Liming City Clerk By: ATTEST: BMC Holdings, Inc. SAKYLE\Beaumont Methanol-10-01.wpd 12 / 12 THE STATE OF TEXAS PtfI COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and Ineos Acrylics, Inc., its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company leases land and owns improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS,the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: S:\KYLE\Ineos Acrylics,Inc.-10-01.wpd 1 / 13 ARTICLE I. COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2002 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term"Assessed Value"is meant the 100%valuation of the Ineos Acrylics, Inc. taxable properties, as determined by the Jefferson County Appraisal District for the previous tax year. "Assessed value" does not include (and such value shall be excluded from the provisions of this Agreement)the value, in whole or in part, of any property owned by Company, whether real, personal or mixed, which would not be subject to ad valorem taxation by the City pursuant to any current or future local, state or federal law, (whether by reason of exemption, exclusion, allocation, abatement or otherwise) if such property were located within the taxing jurisdiction of City. It is the intent of the parties to this Agreement that only the value of that property owned by Company which would otherwise be taxable by City if the property were located within the taxing jurisdiction of City is to be included in the calculation of payments to be made under this Agreement. 3. The term "assumed City taxes due"shall be calculated by the following formula: Assessed value = 100 x the current ad valorem tax rate by City Council of City=Assumed City Taxes due. S:\KYLE\Ineos Acrylics, Inc.-10-01.wpd 2 / 13 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2002 shall be in the amount of$408,466 and shall be due and payable on or before February 1, 2002. The 2002 payment is calculated as follows: Assumed City Taxes Due: $80,406,710 / 100 X 0.635 = $510,583 Year 1 80% of Assumed City Taxes Due = $408,466 Each October thereafter,the Finance Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this Agreement;for example, in October, 2002, the 2002 assessed values shall be used for the February 1, 2003 payment. This assessed value less exclusions as described in Article IX shall be used in the calculation of the payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and if the final resolution reduces the value of the Company's properties, the Company's liability hereunder shall be recalculated based on the final determination of value and City shall, within 30 days following such resolution refund to Company the difference between the amount actually paid hereunder and the amount for which Company is determined to be liable, together S:\KYLE\Ineos Acrylics, Inc.-10-01.wpd 3 / 13 with interest thereon from the date of tender of payment by Company to the date of payment by City of such refund at the rate specified in Section 42.43 of the Texas Property Tax Code for interest on tax refunds. Should such final resolution increase the value of Company's properties, the Company's liability hereunder shall be recalculated based on the final determination of value and Company shall pay within 30 days following such resolution the increased amount due to the City plus interest from the date such payment should have been made to City underthis Agreement atthe rate specified in Section 42.43 of the Texas Property Tax Code for interest on tax refunds. (b) After the assessed value of the Company's properties have been determined, the value of the property shall be calculated in accordance with the following schedule: The 2003 and 2004 payments shall be 80% of assumed City taxes due, except such payment shall not exceed or be less than the previous year's payment by more than 10%. The 2005-2008 payments shall be 75%of assumed City taxes due except the payment shall not exceed or be less than the Previous year's payment by more than 7%. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City such amount billed on or before February 1 each year or within 30 days of the delivery of such bill,whichever is later. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If any annual payment is not made on or before any due date, the same penalties, interest, S:\KYLE\Ineos Acrylics,Inc.-10-01.wpd 4 / 13 reasonable attorneys'fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made and Company fails to cure by making the payment due within thirty (30) days of written notice by the City, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured for the year in which the payment was not timely made and paid to the City within 60 days after written notice by the City as set out herein that the payment is delinquent. ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on records of the Jefferson County Appraisal District, which are within the extra-territorial jurisdiction of the City of Beaumont. It is the intent of the parties to this Agreement that only the value of that property owned by Company which would otherwise be taxable by City if the property were located within the taxing jurisdiction of City is to be included in the calculation of payments to be made under this Agreement. ARTICLE III. SALE BY COMPANY (a) Sale by Company. Company shall notify City of any sale of any or all of Company's facilities to any person or entity. As to payments due under this contract, no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has either assumed the Company's obligation under this Agreement or entered S:\KYLE\Ineos Acrylics, Inc.-10-01.wpd 5 / 13 into a entered into a written agreement with the City assuming all obligations of Company in this Agreement. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City under this Agreement. (b) Assignment. Company shall have the right to assign, transfer or convey all, or any part of, its rights, title and interest in this Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time during the term of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to the City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. ARTICLE IV. CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in anyway cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the Agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered bythis Agreement belonging to said Company is reasonably necessaryto promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation S:\KYLE\Ineos Acrylics, Inc.-10-01.wpd 6 / 13 with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1 st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or Companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this Agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District,any rules, regulations,or any other actions: (a)seeking in any way to control the platting and subdivisions of land, (b)prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this Agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. S:\KYLE\Ineos Acrylics, Inc.-10-01.wpd 7 / 13 4. In the event any portion of the property covered by this agreement should be annexed by any municipality or in the event the creation of any municipality shall include within its limits any property covered by this Agreement, Company will not be required to make further payment under this Agreement for any calendar year commencing after the annexation or creation of a new municipality with respect to the property so annexed or included, but shall nevertheless be obligated to make full payment for the year during which annexation or inclusion became effective if the annexation or inclusion becomes effective after January 1 of said year. In the event of annexation by a municipality or the creation of a municipality which includes within its limits any property covered by this Agreement,the limitations on decreases in payments from year to year contained in Article I, 4(b) shall not apply. ARTICLE V. TERMINATION It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have,Company may enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and may obtain such other equitable relief, including specific performance of the Agreement and may exercise the right of offset, deduction or other remedies, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific S:\KYLE\Ineos Acrylics, Inc.-10-01.wpd 8 / 13 performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VI. AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's"affiliates"and to any properties owned or acquired by said affiliates within the area owned by Company, and where reference is made herein to land, property and improvements owned by Company, that shall also include land, property and improvements owned by its affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent(50%)or more of the stock having the right to vote for the election of directors. ARTICLE VII. TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2002, and ending on December 31, 2008. ARTICLE VIII. NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto at the addresses set forth below by certified mail, return receipt requested,and shall be deemed to have been duly served and received on the earlier of actual receipt or the second business day after the mailing thereof. TO CITY TO COMPANY S:\KYLE\Ineos Acrylics, Inc.-10-01.wpd 9/ 13 City Manager Plant Manager City of Beaumont Ineos Acrylics, Inc. P. O. Box 3827 6350 N. Twin City Hwy Beaumont, Texas 77704 Nederland, Texas 77627 With copy to: Finance Director Ineos Acrylics, Inc. 7275 Goodlett Farms Prkwy Cordova, Tennessee 38018 ARTICLE IX. EXCLUSIONS 1. In determining the assessed value of the Company facilities there is to be excluded therefrom the value of any new plant facilities, replacement, modernization or additions that significantly increase the assessed value of Company's properties. "Significantly increase" shall be defined as an increase in assessed value of fifty percent (50%) or more above the prior year's assessed value of Company's properties excluding land. Any number of projects (whether new construction, replacement, modernization or additions) may be added together to determine whether they aggregate a significant increase in the assessed value of Company's properties so long as construction of each project begins within a single twelve (12) month period. This exclusion will be restricted to include only a new and distinct processing facility, replacement, modernization of or additions to present facilities, and shall not include the maintenance, reconditioning, upgrading, refurbishing or repairing of existing process facilities. The intent of this exclusion is to encourage major new capital investment within the extraterritorial environs of the City. Determination of qualifications for this exclusion shall be made by the City Manager upon petition by Company and presentation of all pertinent data. S:\KYLE\lneos Acrylics,Inc.-10-01.wpd 10 / 13 Company shall notify the City Manager of its intention to claim an exclusion at least one hundred twenty (120) days prior to the end of the calendar year prior to the year in which the exclusion will take place. Subject to the upper and lower limitations on payments set out in Article 1 4 (b) hereof Company agrees that to whatever extent that the non- excluded plant's assessed value on realty improvements is reduced for whatever reason (excepting from fire, explosion, or other casualty or accident or from any natural disaster), an equivalent amount (dollar for dollar) of assessed value on realty improvements of the excluded facilities shall be deemed for the purposes of this agreement to lose its exclusion for the current year and accordingly shall be deemed to be included in the non-excluded plant's total assessed value and payments shall be calculated and made by Company thereon to City for the subsequent year, however, in no event shall the offset exceed the fair market value of the realty improvements that would otherwise be excluded. Company agrees to provide the City Manager with all the information necessary for the City Manager to determine whether the expenditure by the Company is qualified for exclusion. The exclusion shall commence the first calendar year following the completion of construction and it shall be in the amount of 100% for the first, second and third years, 75% of value for the fourth and fifth years, and 50% of value for the sixth and seventh years. The exclusions provided by this Article shall survive the term of this Agreement and shall be included in any subsequent Industrial District Agreement between the parties or in an abatement agreement should the Company's property be annexed. It is the parties' intentions that any increases in value qualifying for exclusion should receive the benefits of exclusion for the full seven years after the completion of construction regardless of the number of years remaining in the term of this Agreement. S:\KYLE\Ineos Acrylics, Inc.-10-01.wpd 11 / 13 2. In determining the assessed value of the Company's facilities, there is also to be excluded therefrom the value of incomplete construction also known as construction in progress. This exclusion applies to new and distinct plant facilities, replacements, modernization of or additions to present facilities as specified in item (1)above, regardless of whether such will significantly increase the assessed values of Companies properties. 3. If a question arises relating to the exclusion amount, payment shall be made based on the last Certified assessed value, without the questioned exclusion. An adjustment to the payment, if any, shall be made following resolution of the question. The determination concerning whether a capital expenditure by Company is qualified for exclusion hereunder shall be made by the City Manager. Any appeal of the decision of the City Manager shall be made in writing to the City Council within fifteen (15) days of the decision of the Manager. The decision of the City Council shall be final. ARTICLE XI. CONTINUATION If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. S:\KYLE\Ineos Acrylics,Inc.-10-01.wpd 12/ 13 IN WITNESS THEREOF, this Agreement, consisting of 13 pages, is executed in duplicate counterparts as of this day of , 2001. CITY OF BEAUMONT, TEXAS By: Stephen J. Bonczek City Manager ATTEST: Barbara Liming City Clerk By: ATTEST: Ineos Acrylics, Inc. S:\KYLE\Ineos Acrylics,Inc.-10-01.wpd 13 / 13 3 November 13, 2001 Consider approving a contract to repair and paint the 5,000,000 gallon steel water storage tank located on the west side of Eastex Freeway in Rose Acres (Loeb) City of Beaumont uii Council Agenda Item ML TO: Stephen J. Bonczek, City Manager FROM: Tom Warner, Public Works Director PREPARED BY: Joseph G. Majdalani, Water Utilities Manager MEETING DATE: November 13, 2001 AGENDA MEMO DATE: November 6, 2001 REQUESTED ACTION: Consider a contract to repair and paint the 5,000,000 gallon steel water storage tank located on the west side of Eastex Freeway in Rose Acres (Loeb). RECOMMENDATION Administration recommends approval of a contract with Blastco, Inc., Irving, Texas, in the amount of$552,377 to repair and paint the 5,000,000 gallon steel ground water storage tank located on the west side of Eastex Freeway in Rose Acres (Loeb). BACKGROUND The existing tank was built in 1960, the exterior was last painted in 1995 and the interior was painted in 1971. Due to its poor condition, the tank is in need of structural repairs and painting on both interior and exterior surfaces. The life expectancy of the proposed interior and exterior paint is 7-10 years. BUDGETARY IMPACT Funds are available in the Water Utilities Division Operating Fund for this project. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director, and Water Utilities Manager. RECOMMENDED MOTION: Approve/Deny the structural repair and the painting of the interior and exterior of the 5,000,000 gallon steel ground water storage tank located on the west side of Eastex Freeway in Rose Acres (Loeb). Loeb-tank0l sk.wpd 11/06/2001 BID TABULATION CITY OF BEAUMONT JEFFERSON COUNTY, TEXAS REHABILITATION OF THE 5,000,000 GALLON AWWA STEEL GROUND STORAGE (LOEB) TANK LOCATED AT THE WEST SIDE OF EASTEX FREEWAY IN ROSE ACRES BLASTCO,INC. GULF STATES ANGELOS UTILITY SERVICE M&M INDUSTRIAL D&W R.BRYAN,INC. ALLCO,INC. A.G.INDUSTRIAL CORROSION N.G.PAINTING, 1825 WALNUT HILL PROTECTIVE PAINTING,INC. CO.,INC. SERVICES,INC. CONTRACTORS, 406 WESTSIDE P.O.BOX 3684 SERVICES ELIMINATORS, INC. BID OPENING: MONDAY,OCT.29,2001 AT 2:00 P.M. LANE,SUITE 120 COATINGS,INC. 8830 AMANDA LN P.O.BOX 41304 P.O.BOX 1112 INC. DRIVE BEAUMONT,TX 9001 AIRPORT INC. 313 MILL RUN ENGINEER: SC1)AUMBURG&POLK,INC. IRVING,TX 75038 P.O.BOX 1608 MANVEL,TX 77578 HOUSTON,TX NEDERLAND,TX P.O.BOX 1075 VIDALIA,LA 71373 777043684 BLVD.,SUITE 801 P.O.BOX 1546 KERRVILLE,TX LA PORTE,TX 77241 77627-1112 CHANNELVIEW,TX HOUSTON,TX MINERAL WELLS, 78028 77571 77530 77061 TX 76068 ITEM DESCRIPTION QTY. UNIT TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL,PRICE TOTAL PRICE 1. Mobilization cost, including payment bond,performance bond, insurance, and moving equipment to project, all in strict accordance with plans and specifications for, 1 LS $66,200.00 $37,000.00 $60,000.00 $60,000.00 $75,600.00 $73,816.30 $39,000.00 $40,000.00 $83,184.00 $50,000.00 $30,000.00 2. Fumish and install all labor, materials,and equipment to repair, rehabilitate, abrasive blast, shrouding, repaint and disinfect the existing 5,000,000 gallon welded steel water storage tank as required in the Special Provision to the Technical Specifications(SP I),all in strict accordance with the Contract Documents, Technical Specifications and Drawings,for, I LS $486,177.00 $580,000.00 $568,000.00 $642,200.00 $634,400.00 $664,346.70 $745,000.00 $757,518.00 $748,656.00 S829,872.00 $860,000.00 TOTAL BID AMOUNT $552,377.00 $617,000.00 $628,000.00 $702,200.00 $710,000.00 $738,163.00 $784,000.00 $797,518.00 $831,840.00 $879,872.00 $890,000.00 Bid Proposal/Bid Opening YES YES YES YES YES YES YES YES YES YES YES Bid Bond YES YES YES YES YES YES YES YES YES YF.FS YES Corporate Resolution YES YES YES YES YES YES YES YES YES YES YES Information Required of Bidder YES YES YES YES YES YES YES YES YES YES YES Minority Business Utilization Commitment YES YES YES YES YES YES YES YES YES YES YES Schedule C(MBE Participation) YES YES YES YES YES YES YES YES YES YES YES Acknowledge Addendum No.I&2 YES YES YES YES YES yES YES YES YES YES YES The Bid Proposals submitted have been reviewed,and to the best of my knowledge this is an accurate tabulation of the Bids received. BY: DATE: r uu r.e.«w un.,.,e-a rp.tdr cowuu„a,na.,rcns Q. W- � IL City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 13, 2001 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Authorize the City Manager to renew a lease agreement with the State of Texas for coastal public lands on the Neches River B) Authorize the City Manager to submit an application to the Texas Criminal Justice Division for grant funding for the Family Violence Task Force C) Authorize the City Manager to execute a deed conveying seven lots to the Beaumont Community Housing Development Organization, Inc. for the construction of homes CONSENT AGENDA NOVEMBER 13, 2001 • Committee Appointments Bruce Drury would be reappointed to the Community Development Advisory Commission. The term would expire September 26, 2003. (Mayor David W. Moore) Arthur Berry would be reappointed to the Convention and Tourism Advisory Committee. The term would expire October 30, 2003. (Mayor Pro-Tem Guy Goodson) Dale Hallmark would be reappointed to the Historical Landmark Commission. The term would expire August 18, 2003. (Mayor David W. Moore) A) Authorize the City Manager to renew a lease agreement with the State of Texas for coastal public lands on the Neches River The Administration recommends authorizing the City Manager to renew a five-year lease agreement with the State of Texas. The lease agreement provides for a public recreation facility on coastal public lands on the Neches River, adjacent to Collier's Ferry Park. As consideration for the right to use the premises, the City of Beaumont agrees to pay the State an advance payment of $25.00 as a one-time application fee for the five-year term. No other consideration is required. A copy of the staff memorandum is attached for your review. B) Authorize the City Manager to submit an application to the Texas Criminal Justice Division for grant funding for the Family Violence Task Force The Administration recommends approval of this item. The Family Violence Task Force has been in existence since 1995. The Case Specialist position assists investigators assigned to the Family Violence Task Force and the position has been funded from the grant for the past five years. The grant funding is estimated at$41,836, with a 25% cash match required. A copy of the staff memorandum is attached for your review. C) Authorize the City Manager to execute a deed conveying seven lots to the Beaumont Community Housing Development Organization, Inc. The Administration recommends approval of this item. The seven lots are located on Kenneth Street and will be used for the construction of homes for the Neighborhood Revitalization Project. As part of the Neighborhood Revitalization Project, lots are being acquired in various locations throughout the city to provide decent, safe and sanitary housing for low and moderate income families. A copy of the staff memorandum is attached for your review. A .rte. City of Beaumont A -3 K, Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 13, 2001 AGENDA MEMO DATE: November 5, 2001 REQUESTED ACTION: Council consider authorizing the City Manager to renew a lease agreement with the State of Texas for coastal public lands on the Neches River. RECOMMENDATION Administration recommends authorizing the City Manager to renew a five (5) year lease agreement with the State of Texas, beginning June 19, 2Q00 and expiring June 18, 2005. This lease agreement provides for a public recreation facility on coastal public lands on the Neches River, adjacent to Collier's Ferry Park. BACKGROUND The lease area is for a two-lane, reinforced concrete ramp and piers, situated on the Neches River at Collier's Ferry Landing. This ramp is a public boat ramp utilized by the citizens of Beaumont. The lease agreement requires that the Lessee maintain and/or repair any improvements on the premises. Additionally, the City agrees to hold the State harmless for any liability or damages arising out of the use of the lease. As consideration for the right to use the premises, the City of Beaumont agrees to pay the State an advance payment of Twenty-Five Dollars ($25.00) as a one- time application fee for the five (5) year term. No other consideration is required. A copy of the lease agreement is provided for your review. Collier's Ferry Boat Ramp Lease Agreement November 5, 2001 Page 2 BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Central Services Director. RECOMMENDED MOTION Approve/Deny authorizing the City Manager to execute a five (5) year lease agreement with the State of Texas for a public recreation facility on coastal public lands on the Neches River, adjacent to Collier's Ferry Park. The State of Texas L u,yo in F a L i p• I' T.cosh Austin, Texas RENEWAL OF COASTAL LEASE NO. CL940006 STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF JEFFERSON § This Coastal Lease No. CL940006 (the"Agreement") is issued by virtue of the authority granted in Chapter 33, TEX. NAT. RES. CODE ANN. and Title 31, TEX. ADMIN. CODE, Chapter 155 and all amendments thereto, and all other applicable statutes and rules,as the same may be promulgated and/or amended from time to time. ARTICLE I. PARTIES 1.01. In consideration of the mutual covenants and agreements set forth herein, the STATE OF TEXAS, acting by and through the School Land Board and its Chairman, David Dewhurst,Commissioner of the General Land Office(the "State"), hereby authorizes the City Of Beaumont (the "Lessee") whose address is PO Box 3827, Beaumont, TX 77704-3827, telephone number 4098803764, to use the "Premises" (defined below) for the purposes identified in Article V below. ARTICLE II. PREMISES 2.01. The coastal public land Lessee may use is described as follows: A portion of the Neches River, Jefferson County, Texas (the "Premises"). The Premises are further described and depicted on Exhibits A,B,and C,attached hereto and incorporated herein by reference. 2.02. Lessee acknowledges and agrees that when any authorized improvements are placed on the Premises, the location of such improvements shall thereby become fixed at such location and shall not be changed except by a written amendment to this Agreement. 2.03. LESSEE HAS INSPECTED THE PHYSICAL AND TOPOGRAPHIC CONDITION OF THE PREMISES AND ACCEPTS THE SAME "AS IS", IN ITS EXISTING PHYSICAL AND TOPOGRAPHIC CONDITION. THE STATE DISCLAIMS ANY AND ALL WARRANTIES OF HABITABILITY, MERCHANTABILITY, SUITABILITY, FITNESS FOR ANY PURPOSE, AND ANY OTHER WARRANTY WHATSOEVER NOT EXPRESSLY SET FORTH IN THIS AGREEMENT. THE STATE AND LESSEE HEREBY ACKNOWLEDGE AND AGREE THAT USE OF THE TERM "GRANT^ IN NO WAY IMPLIES THAT THIS AGREEMENT IS FREE OF LIENS, ENCUMBRANCES AND/OR PRIOR RIGHTS. NOTICE IS HEREBY GIVEN TO LESSEE THAT ANY PRIOR GRANT AND/OR ENCUMBRANCE MAY BE OF RECORD AND LESSEE IS ADVISED TO EXAMINE THE RECORDS IN THE ARCHIVES AND RECORDS DIVISION OF THE GENERAL LAND OFFICE, 1700 NORTH CONGRESS AVENUE,AUSTIN,TEXAS 78701-1495,AND ALL RECORDS OF THE COUNTY IN WHICH THE PREMISES ARE LOCATED. LESSEE IS NOT RELYING ON ANY REPRESENTATION OR WARRANTY OF THE STATE REGARDING ANY ASPECT OF THE PREMISES,BUT IS RELYING ON LESSEE'S OWN INSPECTION OF THE PREMISES. CL940006 ] renewd.doc V 2.0 jemw ARTICLE III. TERM 3.01. This Agreement is for a period of five (5) years, beginning on June 19, 2000, and ending on June 18, 2005, unless renewed or terminated as provided herein. ARTICLE IV. CONSIDERATION AND TAXES 4.01. As consideration(the"Consideration") for the right to use the Premises, Lessee agrees to pay the State the sum of Twenty-five and 00/100 Dollars($25.00)as an application fee.No other consideration is required. 4.02. In addition to the above, Lessee shall pay and discharge any and all taxes, general and special assessments, and other charges which during the term of this Agreement may be levied on or assessed against the Premises or any improvements constructed or installed thereon(the"Taxes"). Lessee shall pay such Taxes at least five(5)days prior to the date of delinquency directly to the authority, official or entity charged with collection. Lessee may, in good faith and at its sole cost and expense, contest any Tax and shall be obligated to pay the contested amount only if and when finally determined to be owed. ARTICLE V. USE OF THE PREMISES 5.01. A. In connection with Lessee's use of the Premises, Lessee may construct and/or maintain the following improvements: a public wood piling pier consisting of three (3) 4' x 31' walkways, a 6' x 13' walkway, a 7' x 13' walkway, a 6' x 31' walkway, a 5' x 20' walkway, a 4' x 49' walkway, a 5' x 85' walkway and a 5' x 108' walkway, comprising an encumbrance of 1,988 square feet; also, two (2) 26' x 30' concrete boat ramps, comprising an encumbrance of 1,560 square feet; also,a 5' x 96' area of fill and a 13'x 79'area of fill, comprising an encumbrance of 1,507 square feet, for a total project encumbrance of 5,055 square feet of coastal public land, as depicted on Exhibits attached hereto and incorporated herein by reference(the"Improvements"). Lessee shall not use the Premises for any other purpose without prior written consent from the State, which consent may be granted or withheld in the State's sole discretion. Lessee is specifically prohibited from using or permitting the use of the Premises for any commercial or illegal purpose. Provided the State does not unreasonably interfere with Lessee's use of the Premises,the State may use or permit the use of the Premises for any purpose consistent with Lessee's use of the Premises. B. Lessee shall comply, and cause its officers, employees, agents, representatives, contractors and invitees to comply, with applicable laws, ordinances, rules and regulations of all governing authorities with jurisdiction over the Premises. Lessee is specifically notified of its need to comply with laws and regulations enacted for the purpose of protecting and preserving public lands and waters. C. Lessee shall permit the State's agents, representatives, and employees to enter into and on the leased premises at all reasonable times for the purpose of inspection and any other reasonable purpose necessary to protect the State's interest in the leased Premises. D. Lessee may not charge any holder of a valid mineral lease or other grant of interest from the State for surface damages for the use of the leased Premises. All such damage payments shall be made directly to the State. Lessee, however, may seek compensation for damages to personal property in an action against the holder of a valid mineral lease or other grant-of-interest issued by the State. This damage limitation in no way limits the liability of third parties in an action at law for damages inflicted upon Lessee by acts of negligence. E. Except as otherwise provided herein, Lessee shall have the right to file a criminal complaint or institute civil proceedings to protect Lessee's right of possession and leasehold interest in the leased Premises. F. Lessee shall use the highest degree of care and all appropriate safeguards to prevent pollution of air,ground and water in and around the Premises, and to protect and preserve natural resources and wildlife habitat. In the event of pollution of or damage to natural resources in or around the Premises which is the result of an act or omission of CL940006 2 renewd.doc V 2.0 jcrow Lessee, its officers,employees,agents,representatives,contractors,and/or invitees, Lessee shall immediately notify the State and undertake all required and appropriate action to remedy the same. Lessee shall be liable for all damages and/or mitigation to the Premises and public lands and waters as a result of such act or omission. G. LESSEE IS EXPRESSLY PLACED ON NOTICE OF THE NATIONAL HISTORICAL PRESERVATION ACT OF 1966, (PB-89-66,80 STATUTE 915; §470) AND THE ANTIQUITIES CODE OF TEXAS, CHAPTER 191, TEX. NAT. RES. CODE ANN. AND ALL AMENDMENTS THERETO. IN THE EVENT THAT ANY SITE, OBJECT, LOCATION, ARTIFACT OR OTHER FEATURE OF ARCHEOLOGICAL,SCIENTIFIC,EDUCATIONAL,CULTURAL OR HISTORIC INTEREST IS ENCOUNTERED DURING THE ACTIVITIES AUTHORIZED BY THIS AGREEMENT, LESSEE WILL IMMEDIATELY CEASE SUCH ACTIVITIES AND WILL IMMEDIATELY NOTIFY THE STATE AND THE TEXAS HISTORICAL COMMISSION, P.O. BOX 12276, AUSTIN, TEXAS 78711, SO THAT ADEQUATE MEASURES MAY BE UNDERTAKEN TO PROTECT OR RECOVER SUCH DISCOVERIES OR FINDINGS,AS APPROPRIATE. 5.02. A. Lessee's use of the Premises is subject to compliance with the following covenants, obligations and conditions(the"Special Conditions"):None. B. Prior to undertaking construction or installation of Improvements on the Premises, Lessee shall provide written notice of the terms of this Agreement, including the Special Conditions,to each person or entity authorized by Lessee to perform any such activity on its behalf. Lessee shall retain a copy of each such written notice provided to its agents, representatives, employees, and/or contractors under this provision and, if a dispute arises concerning construction or installation of the Improvements, Lessee shall provide the State with a copy of all applicable notices within ten(10)days of the State's written request. Lessee's failure to maintain and provide each required written notice shall constitute a default under this Agreement. 5.03. If Lessee fails to maintain and/or repair Improvements in good condition and repair, such failure shall constitute a default under this Agreement and the State may,at its option,terminate this Agreement upon written notice to Lessee or pursue a remedy under Section 51.3021, TEX. NAT. RES. CODE ANN. and all amendments thereto. If Lessee constructs improvements other than those authorized in Article V, such improvements shall constitute illegal structures and the State may, at its option, terminate this Agreement or pursue a remedy under Section 51.302, et seq., TEX. NAT. RES. CODE ANN. and all amendments thereto. ARTICLE VI. ASSIGNMENTS AND SUBLEASES 6.01. LESSEE SHALL NOT ASSIGN THIS AGREEMENT OR THE RIGHTS GRANTED HEREIN, OR SUBLEASE ANY PORTION OF THE PREMISES, IN WHOLE OR PART,TO ANY THIRD PARTY FOR ANY PURPOSE WITHOUT THE PRIOR WRITTEN CONSENT OF THE STATE,WHICH MAY BE GRANTED OR WITHHELD IN THE STATE'S SOLE DISCRETION. ANY UNAUTHORIZED ASSIGNMENT OR SUBLEASE SHALL BE VOID AND OF NO EFFECT,AND SUCH ASSIGNMENT OR SUBLEASE SHALL NOT RELIEVE LESSEE OF LIABILITY UNDER THIS AGREEMENT. ARTICLE VII. INDEMNITY 7.01. LESSEE AGREES TO INDEMNIFY AND HOLD THE STATE, ITS SUCCESSORS, ASSIGNS, OFFICERS, AGENTS, REPRESENTATIVES, CONTRACTORS AND EMPLOYEES (THE "INDEMNIFIED PARTIES") HARMLESS FROM AND AGAINST ALL CLAIMS, PROCEEDINGS, ACTIONS, DAMAGES, JUDGMENTS, LIABILITIES, AWARDS AND EXPENSES WHATSOEVER,INCLUDING STRICT LIABILITY CLAIMS(THE"CLAIMS")WITHOUT LIMIT AND WITHOUT REGARD TO THE CAUSE OR CAUSES THEREOF OR THE NEGLIGENCE OF THE INDEMNIFIED PARTIES,THAT MAY BE BROUGHT, INSTITUTED OR AWARDED ON ACCOUNT OF OR GROWING OUT OF ANY AND ALL INJURIES OR DAMAGES, INCLUDING DEATH,TO PERSONS OR PROPERTY RELATING TO OR RESULTING FROM,DIRECTLY OR INDIRECTLY:(1) ANY OCCURRENCE IN,UPON,AT OR FROM THE PREMISES OR ANY PART THEREOF,OR(II)THE USE OR OCCUPANCY OF THE PREMISES OR ANY PART THEREOF, TOGETHER WITH ANY AND ALL LOSSES THERETO, INCLUDING, WITHOUT LIMITATION, ALL COSTS OF DEFENDING AGAINST, INVESTIGATING AND SETTLING THE CLAIMS. IT IS THE EXPRESSED INTENTION OF THE PARTIES HERETO THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION 7.01 CL940006 3 renewd.doc V 2.0 jcrow IS AN INDEMNITY BY LESSEE TO INDEMNIFY AND PROTECT THE INDEMNIFIED PARTIES FROM THE CONSEQUENCES OF THE INDEMNIFIED PARTIES' OWN NEGLIGENCE WHERE THAT NEGLIGENCE IS A CONCURRING CAUSE OF THE CLAIM. THIS INDEMNITY SHALL HAVE NO APPLICATION TO ANY CLAIM WHERE THE CLAIM RESULTS FROM THE SOLE NEGLIGENCE OF THE STATE. LESSEE'S OBLIGATION OF INDEMNITY SET FORTH HEREIN SHALL SURVIVE EXPIRATION OF THIS AGREEMENT. ARTICLE VIII. DEFAULT, TERMINATION AND EXPIRATION 8.01. If Lessee fails or refuses to remedy a default under this Agreement within thirty (30) days of the State's written notice specifying such default, the State may terminate this Agreement by sending written notice of termination to Lessee in accordance with Article IX. Upon the effective date of such notice, this Agreement shall terminate and neither party shall have any further rights or obligations except for those accruing prior to the effective date of termination and/or those which specifically survive termination of this Agreement. 8.02. Unless waived in writing by the State prior to termination of this Agreement, Lessee shall, within one hundred twenty (120) days from the termination date, remove all personal property, structures and improvements (including, without limitation, the Improvements) from the Premises and restore the Premises (and all other property affected by Lessee's removal activities) to the same condition that existed prior to the placement, construction, or installation thereof on the Premises. Lessee's activities shall be conducted in accordance with General Land Office guidelines in effect at the time of such activity, including, without limitation, specific techniques required for protection of natural resources and mitigation, or payment in lieu of mitigation, for damages resulting from removal activity. Upon such termination Lessee shall notify the State in writing within ten(10) days following completion of Lessee's removal and restoration activity. Lessee's obligations to perform or undertake any specific activity under this Agreement, including the foregoing removal provision, shall survive termination of this Agreement. ARTICLE IX. NOTICE AND INFORMATION REQUIREMENTS 9.01. A. Any notice given under the terms of this Agreement shall be in writing and either delivered by hand, by facsimile or sent by United States first class mail, adequate postage prepaid, if for the State, to Deputy Commissioner, Asset Inspection, 1700 North Congress Avenue, Austin, Texas 78701-1495, and if for Lessee, to City Of Beaumont, PO Box 3827, Beaumont, TX 77704-3827. Any party's address may be changed from time to time by such party by giving notice as provided above, except that the Premises may not be used by Lessee as the sole notice address. No change of address of either party shall be binding on the other party until notice of such change of address is given as herein provided. B. For purposes of the calculation of various time periods referred to in this Agreement, notice delivered by hand shall be deemed received when delivered to the place for giving notice to a party referred to above. Notice mailed in the manner provided above shall be deemed completed upon the earlier to occur of(i) actual receipt as indicated on the signed return receipt,or(ii)three(3)days after posting as herein provided. 9.02. Lessee shall provide written notice to the State of any change in Lessee address within ten(10)business days of such change. 9.03. Lessee shall provide the State with information reasonably requested in writing within thirty (30) days of such request. ARTICLE X. MISCELLANEOUS PROVISIONS 10.01. Neither acceptance of Consideration or any other sum payable under this Agreement(or any portion thereof)by the State,nor failure by the State to complain of any act or omission of Lessee, shall constitute a waiver by the State of its rights under this Agreement. Waiver by the State of any covenant, duty or obligation of Lessee under this Agreement shall be in writing and signed by a duly authorized representative of the State. Waiver by the State shall be CL940006 4 renewd.doc V 2.0 jcrow limited to the act or omission specified in writing and shall not constitute a waiver of any other covenant, duty or obligation of Lessee under this Agreement,whether of the same or different subject matter. 10.02. All monetary obligations of the State and Lessee (including, without limitation, any monetary obligation for damages for any breach of the respective covenants, duties or obligations of either party hereunder) are performable exclusively in Austin,Travis County,Texas. 10.03. This instrument, including exhibits, constitutes the entire agreement between the State and Lessee and no prior written or oral or contemporaneous oral promises,warranties or representations shall be binding. This Agreement shall not be amended except by written instrument signed by the State and Lessee. CL940006 5 renewd.doc V 2.0 jerow IN TESTIMONY WHEREOF,witness my hand and the Seal of Office. 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Equals 20 ft. Exhibit: C B ...... Cit y of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED: Tom Scofield, Chief of Police MEETING DATE: November 13, 2001 AGENDA MEMO DATE: November 6, 2001 REQUESTED ACTION: Consider a resolution authorizing the City Manager to submit an application to the Texas Criminal Justice Division for grant funding for the Family Violence Task Force, to commit the city to provide the applicable cash match required and to assure that in the event of loss or misuse of CJD funds, the city will return all funds to CJD. RECOMMENDATION Administration recommends authorizing the City Manager to submit an application to the Texas Criminal Justice Division for grant funding for the Family Violence Task Force, committing to providing the applicable cash match required and assuring that in the event of loss or misuse of CJD funds, the city will return all funds to CJD. BACKGROUND The Family Violence Task Force has been in existence since 1995. The Case Specialist position assists investigators assigned to the police department Family Violence Task Force. This position has been funded through the Violence Against Women Act for the past four(5) years. The project costs for this grant application include personnel costs, office supplies, travel and training costs. The approximate total cost of the project is $ 41,836. The funding period for the grant this year is 15 months in order to move future grant starting dates to September rather than June. BUDGETARYIMPACT A commitment to provide matching funds of S10,347 which is 25% of the project cost, is necessary for continued funding. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Chief of Police. RECOMMENDED MOTION Accept/Deny the Resolution authorizing the City Manager to submit an application to the Texas Criminal Justice Division for grant funding for the Family Violence Task Force, to commit the city to provide the applicable cash match required and to assure that in the event of loss or misuse of CJD funds, the city will return all funds to CJD. 2 c Cit y of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: November 13, 2001 AGENDA MEMO DATE: November 6, 2001 REQUESTED ACTION: Council approval of a resolution authorizing the City Manager to execute a deed conveying seven (7) lots in the South Park 4th Addition (formerly Iowa Colony), to the Beaumont Community Housing Development Organization, Inc. for the construction of homes for the Neighborhood Revitalization Project. RECOMMENDATION The properties listed below need to be conveyed to the Beaumont Community Housing Development Organization, Inc. (BCHDO) for the construction of homes: Lots 6, 7, 8A, 9, 10, 11 and 12, Block 1 of the South Park 4th Addition [replat of part of Tract 2, Block 25 of the Iowa Colony Addition] (Kenneth Street) Administration recommends the execution of deeds conveying above properties to Beaumont Community Housing Development Organization, Inc. BACKGROUND As part of the Neighborhood Revitalization Project, lots are being acquired in various locations throughout the city to provide decent, safe and sanitary housing for low and moderate income families. BUDGETARY IMPACT None. PREVIOUS ACTION The City acquired the properties in the South Park 4th Addition from Cardinal Apartments, Inc. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director and City Engineer. RECOMMENDED MOTION Approve/Deny authorizing the City Manager to execute a deed conveying seven (7) lots in the South Park 4th Addition (formerly Iowa Colony), to the Beaumont Community Housing Development Organization, Inc. for the construction of homes for the Neighborhood Revitalization Project. bchdo-2/jld SUBJECT 00 N DE E PAL x > PROPOSED CONVEYANCE CAMPUS a E AlINIA W �' TO BEAUMONT COMMUNITY HOUSING ^ y ZAVALLA ¢ L ARK � a z Z SHELL = A ABA A x DEVELOPMENT ORGANIZATION, INC. as SAXE ARL44D 1 y GUN ER a ~ r < OVA LOTS 0,7,dA, ,10,11802 BLOCK 1 �y '" GILES SOUTH PARK 4TH ADDITION Z m SA JOSEPH a FLORIDA 9 x 61 v KENNETH STREET PARKWAY y OWNER= CITY OF BEAUMONT 9 LEGEND LOCATION MAP N.T.S. ® SUBJECT PROPERTY 627 ,O i W. -V 'J6.13 50 45 45 50 50 145 J5 50 JO 50 r? Zh � i rr r r r�C r Z 19; 11 I` 1I 1! 110 I! 42 i f/ IO 1 J9 :JI Jt J/ 150 its If O W� I 1 ! J62•J 10 !JO �66 5 J5 s3 SO ' So s5 'Q5 -'0 ! 10 h /d0 > /17 c '� �9 o K 140 O :59.4 �' 1�is6 6 V� J7 h My 19 16 i~. 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