Loading...
HomeMy WebLinkAboutMIN DEC 09 1986 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD DECEMBER 9, 1986 - 1:15 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in regular session this the 9th day of December, 1986, with the following present: HONORABLE: Maurice Meyers Mayor Bob Lee, Jr. Councilman At Large Andrew P. Cokinos Councilman At Large Nell Pruitt Weisbach Councilman, Ward I Mike Brumley Councilman, Ward II Audwin Samuel Councilman, Ward III David W. Moore Councilman, Ward IV Albert E. Haines City Manager Lane Nichols City Attorney -000- The Invocation was given by the Reverend Glenn Moore, pastor of the First Christian Church of Beaumont. The Pledge of Allegiance was led by Councilman Moore. -000- Mayor Meyers called an Executive Session, pursuant to Section 2(e) of the Texas Open Meetings Act, to consider pending litigation, specifically the Gulf States Utilities rate case. -000- One proclamation was issued: "Human Rights Day in Beaumont" - December 10, 1986. -000- Mayor Meyers recognized Jefferson County Judge Richard LeBlanc and members of the Tax Abatement Advisory Commission: Ms. Pat Henderson, Drainage District 6; Jefferson County Commissioner Norman Troy; Mr. Walter Crawford, Beaumont ,navigation District; Mr. Jim Covert, Assistant Superintendent of the Beaumont Independent School District. Mr. Ronnie Platt, manager of the Drainage District 6, was also recognized. -000- Four "Pride in Beaumont" awards were presented by the Clean Community Commission: Woodland Estates Association; Jack Buckner for property located at 7335 Silverwood; Falter Freeman for property at 555 Jay and San Jacinto Glass Association for 1290 Calder. -265- December 9, 1986 Mrs. Maree Calcote, Chairman of the Clean Community Commission, presented findings of the latest Photometric Index showing a decrease in' trash, refuse and litter in the City of Beaumont. A comparison made between the 1981 Index and this shows Litter has decreased 55%; Specific Areas: Vacant Lots - 83%; Commercial Refuse - 40%; Rights-of-Way - 55%; Parking Lots - 39.99%; Loading Docks - 20% and Streets (Car Litter) - 14%. -000- The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held November 25, 1986; Resolution 86-348 appointing Gaylynn Cooper as Chairman of the Housing Rehabilitation Loan Advisory Committee, term to expire May 31, 1988, and reappointing Ruth Willman to the Clean Community Commission, term to expire September 30, 1988; Resolution 86-349 authorizing conveyance of a track location easement to the Kansas City Southern Railway Company across Parcel 141 acquired for the Martin Luther King, Jr. , Parkway/Spur 380 Project and authorizing conveyance of the property to the State subject to the easement (Parcel 141, 8,747 square feet, all of Lot 14, Block 10, Ogden Addition, acquired from Ward McCurtain et al in the amount of $31 ,000); and Resolution 86-350 authorizing purchase of approximately 1,430.6 tons of limestone base material for the Sherwood Drive resurfacing project from Davidson Materials in an amount of $20,745.07. The Consent Agenda was approved on a motion made by Brumley and seconded by Councilman Lee. Question: Ayes: All Nayes: None -000- No one wished to address City Council on Agenda Items C through E. -000- Public hearing was held to consider a request by Mobil Corporation for the creation of two Reinvestment Zones in Beaumont-s area of Extraterritorial Jurisdiction: NORMAN WHITAKER, DIRECTOR OF PLANNING: Establishing these zones in Beaumont-s extraterritorial jurisdiction will allow Mobil Oil to approach each of the taxing entities that collect taxes from Mobil and negotiate tax abatement contracts. There's a request for two zones; the first one, Zone No. 2, is on the eastern city limits that includes the existing Mobil Refinery and Chemical Plant. -266- December 9, 1986 MR. WHITAKER continued: In your handout, the third page shows the location of the two zones. Zone No. 3 is on the western boundary of the City. It's the Mobil Chemical Plant on Highway 90. You have detailed maps of each of the two zones. The staff is recommending the Council approve the creation of the these two reinvestment zones. Aside from having endorsement of the Council's Tax Abatement Advisory Committee, we believe the City has complied with all the State requirements, all the legal requirements for creation of the zones. The hearing was noticed in advance as required by State law and the proposed zones meet the criteria that are spelled out in the Texas Property Tax and Tax Abatement Act. One of the findings the Council has to make is that these zones . . . creation of these zones will serve a public purpose as specified in the Act. The Act mentions addressing conditions which would impair the sound growth of the City. The decline of unemployment in this area over the past five years is something that very clearly impairs the sound growth of the City. Creating these zones and the opportunity for investment which will create hew jobs is going address this problem that is stopping the City from meeting its physical and economic development goals. This is also consistent with the City's Comprehensive Plan. In 1982, Council adopted a goal of helping existing and new businesses to create new jobs in the City with a specific objective of fostering the expansion of our existing industries, and the two areas under consideration today Are shown on the land use map as industrial zones subject to the policy. If there are any questions about any of the procedures, I will be glad to answer them. MAYOR MEYERS: Thank you, Norman. Does Council have any questions of Mr. Whitaker? CITY MANAGER HAINES: Mayor, excuse me. I did want to introduce the representatives here from Mobil Corporation, Morris Crim, the spokesman for the Corporation and I think both the Chemical Company as well as the other and certainly, I don't know if you wanted to make a brief presentation, Morris, or respond to any questions perhaps. MAYOR MEYERS: I guess we want to open the public hearing for Morris' comments first. Morris, I think before I would ask for your comments I would now like to call this public hearing to order, referencing the creation of Reinvestment Zones 2 and 3 as outlined by Mr. Whitaker and very pleased to first ask Mr. Morris Crim, representing Mobil Oil, and if you would, please introduce your associates. -267- December 9, 1986 MR. MORRIS CRIM: I'd be proud to. Dr. Lawrence McMakin is representing the Chemical group and Chuck Roper is representing the Refinery. And first of all I'd just like to thank the Mayor and Members of the City Council and also members of the Tax Abatement Advisory Committee for allowing us to be here today to take this rather giant step forward. Several months ago when Mobil was approached about this tax abatement policy, there were a lot of unanswered questions but with the cooperation of your staff, namely Al Haines and Lane Nichols and Norman Whitaker, a lot of these questions have been answered and we appreciate their cooperation. It goes without saying that Mobil is a rather large tax payer in the Beaumont, Jefferson County area. In 1986, we will pay somewhere between $16.0 and 17.0 million to the various taxing entities in Jefferson County. The Tax Abatement policy will give us some tax incentives that we think will allow us to build on our existing tax base. We do have some projects that we currently think will fall under this tax abatement policy and I'd like to hand these out at this time, if that's agreeable. (Attached as ,exhibits to Minutes) Once those go around, there may be some questions from members of the City Council relative to these projects. I would prefer to yield the podium to Dr. McMakin who can answer any questions relative to these projects. So, Lawrence, if you want to come up and field any questions . . . MAYOR MEYBRS: Council had an opportunity since I think most -members sat in at the meeting that you held with our Investment Board so they're probably somewhat familiar with the projects you've got before them. If there's some other points that you'd want to reference in the interim while they are examining that, it would be appropriate. Lawrence . . . DR. LAWRENCE McMAKIN: I just might point out, Mr. Mayor, that the project for the refinery feed gas modification is presently in progress and we are hoping to complete that project not later than the first quarter of 1987. The other project that's described in the handout is one that the local management of Mobil Chemical has approved and we have submitted to the corporate management of Mobil and we are optimistic that that will be also approved here in the first quarter and we can start breaking ground on that project next year. MAYOR MEYERS: Morris, both of these are identified as Mobil Chemical. Should they be? DR. McMAKIN: Yes, these are both Mobil Chemical projects and both are associated with the same plant, the olefins plant. -268- December 9, 1986 MAYOR MEYERS: Does Council have any Questions? Both of these are abatement requests that fall in the dollar category, one in the 100 percent category being above $10.0 million and the other at $5.1 million would be I assume in the 50 percent category. And, for those present, the abatement policy is structured based on both number of employees that would be hired or the dollars to be expended and they progress 25 employees - $2.5 million; 50 employees - $5.0 million; 75 employees - $7.5 million and 100 employees or more - $10.0 million and they progress in increments of abatement over a five year period 25 percent at a time. So, the two projects we have here before us, one if 100 percent and the other if 50 percent. Morris, are there any other statements that you would care to make? MR. CRIM: Mayor, I really don't have anything. Again, we appreciate the opportunity to appear before you today and we really think this policy is just a start as far as our management being aware of the tax incentives that can be available here in Beaumont and the Jefferson County area and we think it's a very good start in the right direction. MAYOR MEYERS: That was my question and you've answered it. We hope and encourage more. MR. CRIM: Definitely, we are here and we'll be here so this is a good message to management that they can build on the base that they have here now. MAYOR MEYERS: Tell them we are prejudiced but we think this is the best place for them to make their investment. MR. CRIM: A lot of people feel the same way on our side. MAYOR MEYERS: Good, thank you. With this public hearing still open, I would offer any members of our Board, those taxing entities that are present who would care to make any comments to do so at this time, plus any citizen present who would care to make comment at the public hearing. -2169- December 9, 1986 JEFFERSON COUNTY COMMISSIONER NORMAN TROY: Mayor Meyers and City Council and Mrs. Nell, having been here since a very young boy, having seen this City in different categories to be right here, to be right here, and to be right here and then regre tably to take the slump that we've had put into our face, I think maybe I can speak from a little bit of experience. I think and feel that this abatement zone has been created and apparently with all the taxing entities to come together as one in great cooperation of it. I have never seen the like of it that we have so much to offer to these people. As you pointed out, it starts here; it starts here; it starts here and finally it escallates to the acme. And, Jefferson County is proud to be shall we say the Grandpapa to be able to offer this catalyst to the different taxing entities to go along with us and invite industry in that we need very badly to encourage the employment, to put people back to work and I think that going along with the wonderful things that have been done in the cleaning of the town. The City streets look beautiful; they are going to look better than that. Good to have you here, Chief. And, with all these things that are coming together, I feel very excited; the County feels excited and I think that I speak in behalf of the entire Commissioners' Court that we are being this thing 100 percent. Thank you very much. MAYOR M&YERS: Thank you very much. We appreciate that. Anyone else that would care to make any comments? Any other comments from Council? COUNCILMAN BRUMLEY: I would just say that this is a new venture for the City but every time the discussion of abatement has come up, there's always been a sense of agressiveness within the Council members and it's never . . there's never been a sense of reluctance in what we felt was a positive move to attract whatever could be attracted through the abatement policy; but it's also one of the beginnings of I think a partnership between the Commissioners, the Schools, the Council, because it's a collective effort. I know how much work .fudge LeBlanc has done on it for years, not just the past few weeks and with the Mobil program. And, it is sort of a sense of participation by everyone. You feel privileged to take opportunity; we feel privileged to be able to give you the opportunity and it's an important thing to us and there has never been a lax moment at all as far as our interest in participating in this program. I am glad you are doing it. COUNCILMAN MOORE: The only thing I can say to Mobil, of course, Beaumont's happy to have you here and I think this demonstrates very vividly that public/private partnership to the extent that we can participate and you said something awfully encouraging that Mobil likes it here, wishes to be here and with that in mind we look forward to future projects and even the creation of more jobs in the near future. Thank you again. -270- December 9, 1986 COUNCILMAN LEE: I would only say that I don't know that any of us have anything other than our deepest gratitude for you to come ask or us to be able to offer what is being offered at this point and we all stand I think together - I don't want to speak for anybody other than myself - but I think we all stand together to offer industry and business throughout this country the opportunity to do business here in Beaumont and Southeast Texas. MAYOR MEYERS: Are there any other comments? Yes, Judge, I knew we'd get you up here. JEFFERSON COUNTY JUDGE RICHARD LeBLANC: Norman did an excellent job proporting the County's position in this endeavor but I just wanted to thank you Mayor and Councilmen and Al and Lane, Norman, for the work that you'll have put into this endeavor. There was a work session; we had to go through the procedure, learn the process, get the legal interpretations as your folks understood it and it's going to be easy from now on. And, we thank you for assuming that leadership role and providing that vehicle for everyone in the north part of the County that we can follow your leadership in the future. And, to Mobil folks, you don't get Mobil people at a public meeting very often. You know, they're always back there behind that seven foot fence and the 4,000 acres and it is certainly good to see you'll out in the public light. Morris, we want you to know that we love you, we want you and if there's anything that any of us can do in this room, the School Board, the Drainage District folks, the Beaumont Navigation District folks, the city of Beaumont folks, Commissioners' Court people, you know we are here to help you and we want you to be happy in our community because we are certainly happy to have you in our community. Thank you. MAYOR MEYERS: Thank you. Audwin, you don't want to be left out. COUNCILMAN SAMUEL: Well, I said I wasn't going to say anything but I think this, as many have Mentioned before, is a perfect example of what can be done when we work together toward a common goal and I would like to thank all the members of Mobil for their effort as well as all the other taxing entities that have worked so hard on this particular project and I hope I won't be accused of plagiarism but there's something that comes to mind and it's like the United Way - "Thanks to ,you, it works for all of us". COUNCILMAN COKINOS: I also want to say, to add on to what Judge LeBlanc said, not only do we want them, we need them and that Mobil has always been the pillar of this community. They have been the trunk of this community and I am very pleased to see the fine cooperation between all the agencies in helping Mobil not only expand but to stay here in Beaumont. -271- December 9, 1986 COUNCILMAN WEISBACH: Of course, I add my thanks. I let my menfolks talk for me but we do thank you and I see this as a very exciting venture and I don't think it is going to stop here. MAYOR MEYERS: Thank you, Nell. If there are no other comments, then I would now declare this public hearing closed and I would make only one comment that I truly believe and I would say it in light of Mobil's visit today that I feel very good about 1987 and the fact that our economic health and prosperity will start up and I would hope that your actions today, Morris and Lawrence, are indicative of what we will see a lot more of and the fact that the cycle is going back up. Ordinance No. 86-117 designating Reinvestment Zone No. 2 was considered: ORDINANCE NO. 86-117 ENTITLED AN ORDINANCE DESIGNATING REINVESTMENT ZONE NO. 2; ESTABLISHING THE BOUNDARIES THEREOF; MAKING NECESSARY FINDINGS; PROVIDING FOR SEVER- ABILITY AND PROVIDING FOR REPEAL. The ordinance was approved on a motion made by Councilman Cokinos and seconded by Councilman Lee. Question: Ayes: All Nayes: None -000- Ordinance No. 86-118 designating Reinvestment Zone No. 3 was considered: ORDINANCE NO. 86-118 ENTITLED AN ORDINANCE DESIGNATING REINVESTMENT ZONE NO. 3; ESTABLISHING THE BOUNDARIES THEREOF; "TAKING NECESSARY FINDINGS; PROVIDING FOR SEVER- ABILITY AND PROVIDING FOR REPEAL. The ordinance was approved on a motion made by Councilman Lee and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -000- Ordinance No. 86-119 authorizing execution of a conditional Deed of Gift with the United States of America for static display of an Air Force GF-101B, F-100 Voodoo (arrangements for the donation were made possible by citizens and defrayment of costs for transportation from Wichita Falls to Beaumont by their contributions) was considered: -272- December 9, 1986 ORDINANCE NO. 86-119 ENTITLED AN ORDINANCE AUTHORIZING THE EXECUTION OF A CONDITIONAL DEED OF GIFT WITH THE UNITED STATES OF AMERICA; PROVIDING FOR THE LEVYING AND COLLECTING OF A SUFFICIENT TAX TO PAY THE INTEREST ON OBLIGATIONS INCURRED IN SUCH DOCUMENT AND TO PROVIDE A SINKING FUND AND PROVIDING FOR SEVERABILITY. The ordinance was approved on a motion made by Councilman Moore and seconded by Councilman Lee. Question: Ayes: All Nayes: None -000- Resolution 86-351 authorizing execution of a contract with the Beaumont Police Officers Association (highlights of contract include two percent across the board salary increase, an increase in educational incentive pay, certificates, health insurance benefits remain the same, an increase in life insurance benefits, and a floating holiday provision once each year) was approved on a motion made by Councilman Lee and seconded by Councilman Cokinos. Question.: Ayes: Mayor Meyers Nayes: Councilman Brumley Councilman Lee Counclman Cokinos Councilman Weisbach Councilman Samuel Councilman Moore -000- Resolution 86-352 accepting a bid from T-Mix Materials for supplying a year's requirement of limestone base material at an approximate amount of $57,550.00 was approved on a motion made by Councilman Lee and seconded by Councilman Brumley. Question: Ayes: All Nayes: None -000- Resolution 86-353 accepting as completed the work performed under Contract 17D of the Sanitary Sewer Improvement Program by Sterling Utility Construction, Inc. , approving Change order No. 3 reducing the contract by $66,845.00 for adjustments reflecting actual quantities of materials used and extra work items performed and authorizing final payment at $25,832.56 (contract to $2,583,256. 12) was approved on a motion made by Councilman Brumley and seconded by Councilman Moore. Question: Ayes: All Nayes: None -000- -273- December 9, 1986 Resolution 86-354 awarding a contract to Sterling Utility Construction, Inc. in the amount of $736,379.00 for construction of Project 18C of the Sanitary Sewer Improvement Program subject to approval by the Environmental Protection Agency (project to consist of new sanitary sewer and storm sewer lines replacing combination sewer in the vicinity of Grand Avenue between Harrison and Interstate 10 East) was approved on a motion made by Councilman Weisbach and seconded by Councilman Lee. Question: Ayes: All Nayes: done -000- A public hearing was held to consider an application by Mr. Mansfield Flanagan for a license to operate a taxicab service (Square Deal Company). MR. THEODORE JOHNS: To the Mayor and members of the Panel. I am Theodore Johns, a local attorney here in Beaumont. I represent the Flanagans in this application for taxicab permit . . application to operate a taxicab company. I would like to say that on the question of the necessity and the community convenience, we conducted a study in order to determine the feasibility of operating a cab company from a financial standpoint and it was found in this area there is one taxicab to service 6,000 people in this area and that's on paper and, of course, the actuality is less than one cab for 6,000 people and we found there is a, of course, necessity. We also found that during certain periods of the night, there's almost impossible to get a cab and so therefore the public convenience is certainly in question here. And, in this company, it is proposed that five cabs will operate on a 24-hour basis and also the cabs will be of such a nature and uniform and the same type of cab and uniform in its color and that type of thing where people can easily identify them and they will be cabs that will be representative of a community like Beaumont. We find that also that as many as 1,500 people per month are visiting Beaumont with need for a cab and that's what our study showed and we €eel as though the cabs should be of the type to present a good image to the visitor here and of course the same token serve the purpose of a community need and convenience to the public. And, I don't think we have any opposition by the public and so I am asking that for the benefit of a new company that the resolution . . the application will be granted of course for the benefit of Beaumont, too. I might add that the applicant is no stranger to cab business. He is a Flanagan and his family has been in the taxicab business for some time and of course he's operated in that company but now he is proposing to establish a new company with new equipment, new cabs in order to pose a better image for Beaumont. So, we ask that you allow the application. Thank you. Mr. Ken Mcraddin, 3123 W. Crockett, addressed Council to suggest that they consider franchising public transportation and services of this type, charge a $50.00 franchise fee and charge a yearly percentage of the gross receipts to the cab service. There being other to address Council, the public hearing was closed. After a lengthy discussion of the ordinances governing taxicabs, it was decided that a complete review is needed for discussion in a future workshop session. -274- December 9, 1986 Resolution 86-355 granting a license to Mansfield Flanagan, to operate a taxicab service know as the Square Deal Company was approved on a motion made by Councilman Moore and seconded by Councilman Samuel. Question: Ayes: All Nayes: None -000- Councilman Samuel reported that he had received numerous letters concerning support for some type of rate relief for Gulf States Utilities and publicly stated that "at this point I feel that the position of Gulf States is real in the way that they presented it. The options that are available to the City, one being denying it immediately and sending it to the PUC and the other being to approve it and sending it to the PUC. . . . . . so at this point, I would be in favor of . . . I will be leaning toward denying it and immediately sending it to the Public Utilities Commission for their evaluation. " In addition, Councilman Samuel stated his support for the choice made in appointing Mr. Max Patterson as Interim Police Chief. Councilman Moore expressed his support for the choice of Mr. Patterson as Interim Police Chief. Councilman Moore also reported that the local cemetery located . at Regele and Broussard is again being used as a dumping site and asked that enforcement be increased for the area and that city crews pick up the trash that is already there. Councilman Samuel mentioned a traffic accident that occurred at IH-10 and Grand Avenue and requested that the Transportation Department relocate the stop sign that is located behind a building which forms a blind corner. Councilman Cokinos commended the Public Works Department personnel for their Clean Street project along a portion of Calder Avenue, saying he had heard compliments from the merchants in the area. Councilman Lee mentioned Sunday in the Park activities scheduled for December 14th to be hosted by the Beaumont Fire Department and Channel 6 TV. -000- Mrs. Delia Harrington, 815 Willow, addressed Council to compliment the Symphony of Trees- activities held in downtown and in the Civic Center; to express her support of Gulf States Utilities Company, and to express her concern for the sale of water by the Sabine River Authority to the City of Houston. Mr. Henry Dannenbaum, 1567 Wall Street, commended the Council and wished everyone a joyous holiday season. Mrs. Marilyn Adams, 4695 Dellwood, addressed Council to compliment the beautiful Christmas lights in the downtown area and to invite everyone to participate in the "Fantasy" festivities in downtown scheduled for December 13th and 14th which will include a Carolers Parade, flashlight walk to Riverfront Park and a Christmas-lighted boat parade on the River Friday night ` and Christmas parade and other activities scheduled for Saturday. -275- December 9, 1986 The Reverend Timothy Hunley, 1698 LaSalle, addressed Council to express his support of the Tax Abatement Program and to urge total support of City Manager Haines. -000- There being no further business, the meeting was recessed before continuing with the City Council Workshop Session. -000- I, Rosemarie Chiappetta, Secretary in the City Clerk's Office, certify that the above is a true copy of the Minutes of the regular City Council session held December 9, 1986. Rosemarie Chiappetta Secretary -276- December 9, 1986 PROJECT IDENTIFICATION COMPANY REQUESTING ABATEMENT: MOBIL CHEMICAL COMPANY NAME OF PROJECT: REFINERY GAS FEED MODIFICATION TYPE OF PROJECT: NEW UNIT ESTIMATED MARKET VALUE OF PROJECT: $11,300,000+ ESTIMATED BEGINNING CONSTRUCTION DATE: JUNE, 1986 ESTIMATED COMPLETION DATE: APRIL, 1987 ESTIMATED NUMBER OF EMPLOYEES TO BE USED DURING CONSTRUCTION: 30 TO 40 DESCRIPTION OF PROJECT: THIS PROJECT WILL PROVIDE NEW PROCESSING FACILITIES IN THE OLEFINS/AROMATICS PLANT IN BEA10MONT TO RECOVER MARKETABLE PRODUCTS FROM A BEAUIONT REFINERY OFF-GAS STREAM THAT IS NOW BEING BURNED AS FUEL. THE PROJECT USES A REFRIGERATION/SEPARATION SYSTEM AND ASSOCIATED EQUIPMENT TO RECOVER THE PRODUCT FROM THE REFINERY STREAM. THIS REVISED METHOD OF PROCESSING RE-FINERY GAS WILL EXPAND THE PLANT CAPABILITY TO MANUFACTURE EXISTING PRODUCTS AND REDUCE RAW 'MATERIAL COSTS. DURING THE CONSTRUCTION PERIOD OF THIS PROJECT WE WILL EMPLOY AN ESTIMATED ADDITIONAL THIRTY TO FORTY CONSTRUCTION PERSONNEL. 2945Z/1 F'-XHIBIT 1 PROJECT IDENTIFICATION COMPANY REQUESTING ABATEMENT: MOBIL CHEMICAL COMPANY NAME OF PROJECT: INCREASE ETHYLENE CAPACITY TYPE OF PROJECT: NEW UNIT ESTIMATED MARKET VALUE OF PROJECT: $5,100)000 + ESTIMATED BEGINNING CONSTRUCTION DATE: FIRST QUARTER 1987 ESTIMATED COMPLETION DATE: FOURTH QUARTER 1988 ESTIMATED NUMBER OF EMPLOYEES TO BE USED DURING CONSTRUCTION: 20 TO 30 DESCRIPTION OF PROJECT: THIS PROJECT IS TO INSTALL A NEW FURNACE AT THE OLEFINS/AROMATICS UNIT IN BEAUMONT. THIS PROJECT, WHICH INCLUDES THE INSTALLATION OF MAJOR EQUIPMENT ITEMS, WILL INCREASE THE MANUFACTURING CAPACITY OF THE EXISTING ETHYLENE UNIT IN THE PLANT. DURING THE CONSTRUCTION PERIOD OF THIS PROJECT WE WILL EMPLOY AN ESTIMATED -ADDITIONAL TWENTY TO THIRTY CONSTRUCTION PERSONNEL. THIS PROJECT HAS BEEN APPROVED BY LOCAL MANAGEMENT AND IS AWAITING FINAL APPROVAL BY CORPORATE MANAGEMENT. 2945Z/2 EXHIBIT 2 INTER-OFFICE MEMORANDUM CITY OF BEAUMONT. TEXAS Date December 8, 1986 TO: A.E. Haines, City Manager FROM: Norman Whitaker, Planning Director SUBJECT: Creation of Reinvestment Zones Ps 2 and 3. COMMENT: A. Location of Zones Exhibit A shows the general locations the proposed reinvestment zone Ps 2 and 3.* Exhibits B and C show specific boundaries of each zone. B. Compliance with Procedural Requirements The following procedures are required by state law. a. A notice of the hearing must be published at least 7 days prior to the hearing. A legal notice was published in the November 26, 1986 Beaumont Enterprise, Page 7C. b. A public hearing must be held giving opportunity for interested persons to speak and present evidence for or against the designation. c. The Council must pass an ordinance describing the boundaries of the zones and the eligibility of the zones for tax abatement, specifying that the zones are being created for industrial/commercial tax abatement. Council will consider separate ordinances for each zone on December 9. C. Eligibility for Tax Abatement To be designated as a Reinvestment Zone for Tax Abatement, a site must meet the criteria established in Section 3(a) of the Texas Property Redevelopment and Tax Abatement Act. The criteria are attached as Exhibit D. *Reinvestment Zone #1 is the Downtown Tax Increment Zone established in 1982. EXHIBIT 3 r The Planning and Legal staffs have reviewed the applicability of these criteria to the proposed Reinvestment Zones Ps 2 and 3 and have found that the zones meet the criteria because the use of tax abatement to bring about improvement, modernization, or expansion of the Mobil refining and petroch_emmi_ al facilities t }1 ..address, and contribute to the C of, conditions which "substantially impair or arrest the sounT growth of the city". The decline in industrial employment in Beaumont and the metropolitan area has impaired the sound growth of the city. r—In EXHIBIT„An LOCATION MAP INVESTMENT rm" Y h Gut-Of /�} ZONES 0 OA A 7 • � NORTH Hw . 105 'gym; SCALE 1'-$000` 6; E. Lucas J a Folsom C�c G ' O _ Data re L H.A 0 East Glod s Y o d pheion Calder O L C m _m Y College w Washin tan u°. a Sarah Lavaca Walden GardFna/ QrlVe t �, Jar s Florida Braoks � a LIMiT J ( .• •••I � II I! �! iI i� . l _�!1y \ �`3-�L-�1��._ I !I I�_� � II � �I II , "^f 2f� ��1�'��� ln�9it �� � ��I �% t '�`\� .• � d j - 1 R , < ( If rl < r { H)r3h(A`In � ' '�rl f) K"�f.-,)w�,� ..II !� -•{ - !�,��_, .� �:-� I � ._._ _ �� � a� �j ,l IL � C�� �t ..--'' .� � • ', p I I '# �r ij�- �i i( 1 �� � I �_ �I y�-y �-z!: I - n r -�t � �ll�•I �7��..i' 'a � - �� �L __ �� ..�-,'' �„�� �, � `k I: I _ 11 J _=� � ?I•._ _. �� _ -1j I t �,• �� �k�. �i�ic} �_.�__ �'� _—,n �C I r-i-� ,{[N�.��� � t ' \ /r I �I I �\ '(N,r � rid �, as y � 11ai \I � — 1,��. I 'u'`.—_.OL•~/ I ✓) Q L 1 .. o - I � aI II .: •�r. ,;#� �.__la���� � �-� .�d'�"I. >�.' v ....•+.� ' t. "( j N- � �� -���v _ �� II II II:. d i II (I {'n �; i,11'� �� •��••'�,� .+:.`"N + k }}} M' Y�'+.e• ? « 'I •i ,I 4• / ffi ■ • -� n I I ''1 A' ��� if t ``► y� � �� E ���x'�a r � -x 't .•• :r +~•f:, � {`� ice, ,r � ��+". f.r�''♦ i+' {``\^ ■ • • �,I A[-HJAN I� • 1� 5\T.� ' A } �r + i •at iR- A * g♦ �.a.i.•�..r ��Ilt � . . � I.. I, � f ° � yy� 1iYi 1R�1^'.I{ �"� `l �'} � *�•11 w..wjt� # y���#� � # .:•� / - --=___s. --- • i !I I � I 1`'► ` ►*� # �� MF.111' �'�'°: ""�.�' sue' � ♦.#M. #1 �."y 1 I-_ .�D .._� � � tjYt'' jj '•t ! •�, k� � 41 Mrn*y-+1 ��� CFA. Mx '� yYS11+Y�ri� w`*�.'� � ��'_ I II (t � � (�L �. if � � � • ��.�, �,� 1!. �."� 4s�)+� .Mer -.-..t �y .Y may. c.. I I II � 5\ �y 5; t• > Mx:� ,� +3�1•'m-h f)�4 � t. ;.1 I, #i� � �F.�� T�' T � �: 7 :j;: I_ ,�! ��� ' ` ax f #f � � N1 IF# �h llkt • ::f 1/ +«+;* 1i 1# #1�►:' +�' CD _ I � '� �rt',,rl'�t.s�•a'� ,��. ot(a,�• 111 'N .r�►1 �, .,. '� #is'+k* }.«:.� S:�4r* ;�+y1 M �+111 i� m .�e ?p n. + +� �►itnit a tii y r:� 100,0 co r<+ r vf CIO•�•• .sq .` „r r F 11 • Y� i t { '+a.'#'r '.,; .... y fk a + M IN /' // • { s r s H \ • f \k { t`h � ��" �� {uta 3t?src�� aSS a t •�F 1 \ ........... � E � r � � • • \ I1 ;• ,,'' _m • \ Lrr/ice /' 1 II tu N, \ �v EXHIolT C , 34 �F I • f ��\ SIT T ZO a \ ,_. - -- -- -- -• CAL ----- •s Vt•ll n•� c r � ` � ,.[-:-."={jT_I}ik�k µ� `�'1• _=�-_ii=__-� - N s-ajad5c��ll•~.il F � M •� • '+ I� ROA 8711 IL A ti'( IPHI- ,`R //ART 1',`�,it 1} „\- niC tCAN High it SA S. - 4n "`' ,T ;i ' - .� x,11 C"'!`` - u ''j - "• i` ' t�-Vfa � "� 41 .q � ••• a 3ch ! 35 Mitchell AI r.JIrld X11 1�% \�' 1.( n__- _ ,:ar-.-`."" -` •�\ \' •.�.. v t 1 "I '� ,. - LLEGE ,,. ,•. I . :III. �- 76..- ,� •I' - :_ N 364 :'� '30 .__' 1; ^��• •I'� • r � :II• . II • fN "• a ,.;,e M � r. illy ° %I: a �O 1\` ___.---.� .�• LN .J�; ° - • Qli• 1• • 1 \ - ,=-ir- a �.��_,::, �\• �: _1119 .. .� - dr , A a • � 'I p r I K I 4 j_-..____--___� Wn\ .0 Ii - - \\�'� .,!I�o Ihl .7Nllo �1i __ll. e—•��` ;i l PL �I A_ �N, II 1 u � u \ l� IIZ +" \, „ . n \\ fA"«La / .al7 a t I\ II °- -•p •,.• -a 'F�y ° EXHIBIT D Art. 1066f CITIES, TOWNS AND VILLAGES Title 28 Designation of reinvestment zones Sec. 3. (a) To be designated as a reinvestment zone, an area must: (1) substantially impair or arrest the sound growth of a city or town, retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition and use by reason of the presence of a substantial number of substandard, slum, deterioLted, or deteriorating structures; predominance of defective or inadequate sidewalk or street layout; faulty lot layout in relation to size, accessibility, or usefulness; unsanitary or unsafe conditions; deterioration of site or other improvements; tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; the existence of conditions that endanger life or property by fire or other cause; or any combination of these factors or conditions; (2) be predominantly open and, because of obsolete platting or deterioration of structures or site improvements, or other factors, substantially impair or arrest the sound growth of the city or town; (3) be in a federally assisted new community located within a home-rule city or in an area immediately adjacent to the federally assisted new community; (4) be located wholly within an area which meets the requirements for federal assistance under Section 119 of the Housing and Community Development Act of 1974;' (5) encompass signs, billboards, and other outdoor advertising structures des- --ignated by the governing body of the incorporated city or town for relocation, reconstruction, or removal for the purpose of enhancing the physical environ- ment of the city or town, which the legislature hereby declares to be a public purpose; or (6) be designated a local or state-federal enterprise zone under the Texas Enterprise Zone Act.2 (b) For the purposes of Subdivision (3) of Subsection (a) of this section, a federaliv assisted new community is a federally assisted area that received or will receive assistance in the form of loan guarantees under Title X of the National Housing Act' and a portion of the federally assisted area has received grants under Section 107(x)(1) of the Housing and Community Development Act of 1974.' (c) The governing body of an incorporated city or town may designate, by boundaries, as a reinvestment zone any area, or real or personal property whose use is directly related to the business of outdoor advertising, within the taxing jurisdiction or extraterritorial jurisdiction of the city or town that the governing body finds to satisfy the requirements of Subsection (a) of this section, subject to the limitations set forth by Section 4 of this Act. The governing body of an incorporated city or town shall designate a reinvestment zone eligible for residential property tax abatement, or commercial-industrial tax abatement, or tax incentive financing as provided for in the Texas Tax Increment Financing Act of 1981 (Article 1066e, Vernon's Texas Civil Statutes). 142 U.S.C.A. § 5318. 2Article 5190.7. 312 U.S.C.A. ¢ 1749aa et seq. 442 U.S.C.A. 6 5307(aN1).