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HomeMy WebLinkAboutRES 95-290 f RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a Supplement to the In Lieu Agreement with Mobil Oil Corporation executed on January 20, 1995. The Supplement to In Lieu Agreement is attached hereto as Exhibit "A". PASSED BY THE CITY COUNCIL of the City of Beaumont this the. day of , 1995. - Mayor - SUPPLEMENT TO IN LIEU AGREEMENT WITH MOBIL OIL CORPORATION WHEREAS, the City of Beaumont, a home-rule city of the State of Texas, (herein referred to as "CITY"), and Mobil Oil Corporation, a New York corporation (herein referred to as "MOBIL"), entered into a certain agreement under the authority of Section 42.044 of the Texas Local Government Code on January 20, 1995. The parties desire to supplement that agreement. WHEREAS, MOBIL has caused a foreign trade zone subzone grant to be applied for, and WHEREAS, said subzone, if granted, will be a part of the U.S. Foreign Trade Zone No. 115 at U.S. Custom's Port of Entry in Beaumont, Jefferson County, Texas, and WHEREAS, MOBIL will enter into a grantee/subzone operator agreement with the grantee of U.S. Foreign Trade Zone No. 115, the Foreign Trade Zone of Southeast Texas, Inc., and WHEREAS, CITY supports and has supported MOBIL undertakings to expand its facilities in Jefferson County, Texas, and WHEREAS, payments made by MOBIL under the agreement described above (herein referred to as "In Lieu Agreement") are based upon the annual evaluation of MOBIL properties as determined by the Jefferson County Appraisal District, and WHEREAS, CITY and MOBIL both seek certainty in their relations and would like to avoid confusion, uncertainty and delay in the In Lieu Agreement. NOW, THEREFORE, in consideration of the mutual covenants contained herein and in the In Lieu Agreement, the parties agree to amend the In Lieu Agreement to add two provisions to read as follows: 1. MOBIL and CITY agree that for purposes of computing MOBIL payments under the In Lieu Agreement, such computation will be without regard to any exemption from ad valorem taxes which might otherwise apply under the terms of the Foreign Trade Zone Act, 19 U.S.C. §81 o(e). In other words, the term "Assessed Value," as used and defined in the In Lieu Agreement, shall be determined without regard to any exemption which might otherwise apply under the terms of the Foreign Trade Zone Act, 19 U.S.C. §81o(e). 2. This Agreement shall be construed under the laws of the State of Texas. EXHIBIT "A" IN WITNESS HEREOF, this Agreement is executed in duplicate counterparts as of this day of , 1995. CITY OF BEAUMONT, TEXAS MOBIL OIL CORPORATION By: By: Ray Riley City Manager Title: ATTEST: ATTEST: By: By: - 2 -