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HomeMy WebLinkAboutRES 88-120 AGENDA IT /Z,O R E S 0 L U T 1 0 N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to execute industrial District Agreements, in substantialLy the form attached hereto as Exhibit "A" , with the following companies: Mo'!)il Oil Corporation Bethlehem Steel Corporation PD Glycol Amoco Chevron E. I. Dupont Gulf States Utilities Olin Corporation PPG Industries Texas Eastern TexasGulf, Inc. Penwalt Goodyear PASSED BY THE CITY COUNCIL of the City of Beaumont this the �Vc, day of lzi'e' 1988. layor - �or THE STATE OF TEXAS 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, its 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 c:ommensurate. 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 has requested exclusion of payment with respect to new plant facilities and additions to or- modernization of existing facilities, which exclusion would not be available under the terms of the existing Industrial district Agreement between the parties which will expire December 31 , 1987. Whereas, the Company and the City recognize that the addition of a major new industry within the City' s extra-territorial . jurisdiction, which significantly increases the assessed value within such area, may result in a desire to renegotiate the basis upon which these contracts were negotiated; and, Whereas, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. The yearly reduction in the percentage of assessed value used in the calculation was designed to reflect the level of services received by the Company and the benefits the Company enjoys by virtue of being near but not included within the boundaries of the City. 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 1988'-- and -each calendar year thereafter for the duration of this Contract, the 2 - i 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 properties, as determined by the Jefferson County:Appraisal District for the previous tax year. 3. Exclusions (a) In determining the assessed value of the Company facilities there is to be excluded therefrom the value of any new plant facilities or modernizations of or additions that substantially increase the assessed value of Company's properties. This exclusion will be restricted to include only a new .and distinct processing facility, or modernizations of or additions to present facilities, which substantially change the operational facilities, and shall not include the maintenance, reconditioning, replacement, upgrading, refurbishing or repairing of existing processing facilities. To establish such exclusion, the Company, prior to project construction, shall supply the city with a sworn affidavit, setting out the above qualifications, the estimated assessed value and the estimated date of completion of the new and distinct facility, modernizations or additions. 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 3 - fourth and fifth years, and 50% of value for the remaining years of this contract. (b) In determining the assessed value of the Company' s facilities, there is also to be --excluded therefrom the value of all incomplete construction also known as construction in progress. - (�) If a question arises relating to the exclusion amount, payment shall be made based on the last Certified assessed value, without 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. 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) For payments in June and August of 1988, the assessed value of the properties, as of January 1 , 1987, will be used. 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, 1987, the 1987 assessed values shall be used. This assessed value, less exclusions as 4 - described in Article I, Paragraph 3 , 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 an adjustment for the payment, without interest, will be made within thirty (30 ) days following such resolution. (b) Subject to the -provisions ,of 4(c) herein, after the assessed value of the Company' s properties has been determined, the value of the property shall be calculated in accordance-with the following schedule: Year Percent of Assessed Value 1988 70% 1989 69% 1990 68% 1991 67% 1992 66% 1993 659 1994 64% An ad valorem tax rate of $.69 per $100.00 of value shall be used for calculation of amounts to be paid by Company in 1988. Thereafter, the $ .69 rate per $100.00 of value shall be increased or decreased in the the- same amount as the tax rate 5 - change approved by the City Council of the City that is not related to sales tax revenues for the previous year. (c) If the average annual increase in assessed value for the years 1988 through 1991 , as compared to the 1987 base year assessed value, is less than a one percent ( 1 .0%) increase, the percent of assessed value in 4(b) shall remain at 66% for 1993 and 1994; if the assessed value used in the calculation increases an average of one and one-half percent (1 1 /2%) each year from 1988 through 1991 for a cumulative increase of at least six percent (6%) , then the percentage of assessed value used in the calculation for the last two (2) years of the contract shall be sixty percent (60%) . In any tax year from 1988 through 1991 that the assessed value used in the calculation increases more than one and one-half percent (1 1 /2%) above the previous year' s value, the percent of assessed value used in the calculation for that year only will be two (2) percentage points less than the standard assessed value for that year in the percentage table in paragraph 4(b) . (d) City hereby agrees to bill Company for its payments due hereunder on or before May 1 each year. Company shall pay to City one-half (1 /2 ) of slich amount billed on or before June 30 each year and the remaining one-half (1 /2 ) on or before August 15 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 under 6 - Section 4 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 without benefit of exclusions herein, if any, will be recaptured and paid to the City within 60 days of any such event. 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 more particularly described in Exhibit "A" hereto, which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III. CITY' S OBLIGATIONS 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: (1 ) 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 7 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. (2 ) 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 cooperation 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. (3) 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. - 8 - (4 ) 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. ARTICLE IV. TERMINATION OR 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 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 V. AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company' s "affiliates" and to any properties - 9 - owned or acquired by said affiliates within the area described in Exhibit "A" to this Agreement, 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 hereip. 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 VI. TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1 , 1988, and ending on December 31 , 1994. 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 E. I. du Pont de Nemours & Company City of Beaumont Property Tax Division P. O. Box 3827 P. 0. Drawer 1267 Beaumont, Texas 77704 Ponca City, OK 74604 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 - 10 - 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 ( ) pages . plus Exhibit "A" , is executed in duplicate counterparts as of this day of , 19 CITY OF BEAUMONT, TEXAS By: Albert E. Haines City Manager ATTEST: Rosemarie Chiappetta City Clerk E. I. DUPONT B y: 7,- 4,-V D. Minton ATTEST: listant Comptroller - 11 -