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HomeMy WebLinkAboutRES 08 245 RESOLUTION NO. 08-245 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Industrial District Contract with The Goodyear Tire & Rubber Company effective January 1, 2008. The agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of September, 2008. ®�I Mayor Becky Ames 0 assn e LU r O �Oflik is 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 The Goodyear Tire and Rubber 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: C:\DOCUME-1\ramona\LOCALS-1\Temp\Goodyear2 EXHIBIT 'A' ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2008 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 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: Assessed Value/ 100 X Current City Tax Rate =Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2008 shall be in the amount of$1,087,092. The payment will be made in two payments: A payment of$850,000 will be due on April 14, 2008, and $237,092 will be due on August 14, 2008. (b) The payment for 2009 shall be due and payable on or before February 1, 2009, and calculated as follows: C:\DOCUME-1\ramona\LOCALS-1\Temp\Goodyear 2008-8 Yeand-2 Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due Year 1 70% of Assumed City Taxes Due =Payment due, not to be less than $1,200,000 Each October, the Chief Financial 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, 2008, the 2008 assessed values shall be used for the February 1, 2009 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 question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (c) After the assessed value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2010 payment shall be 72% of assumed City taxes due, except such payment shall not exceed or be less than the 2009 payment by 10%. The 2011 payment shall be 74% of assumed City taxes due, except such payment shall not exceed or be less than the previous year's payment by 10%. The 2012 payment shall be 76% of assumed City taxes due, except the payment shall not exceed or be less than the previous year's payment by more than 10%. C:\DOCUME-1\ramona\LOCALS-1\Temp\Goodyear 2008-8 Year.d-3 The 2013 through 2015 payments shall be 80% of assumed City taxes due, except the payments shall not exceed or be less than the previous year's payment by more than 7% (d) 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 Chief Financial 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. ARTICLE 11 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 more particularly described in Exhibit "A" hereto, 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 C:\DOCUME-1\ramona\LOCALS--1\Temp\Goodyear 2008-8 Yeando 4 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 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. C:\DOCUME-1\ramona\LOCALS-1\Temp\Goodyear 2008-8 Year.d-5 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. ARTICLE V 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. C:\DOCUME—l\ramona\LOCALS-1\Temp\Goodyear 2008-8 Yeandoc( ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "parent", "affiliates" and to any properties owned or acquired by said parent and 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 parent and or 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. The word "parent" as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII TERM OF AGREEMENT The term of this Agreement shall be for eight (8) years, commencing January 1, 2008, and ending on December 31, 2015. ARTICLE VIII CONTRACT REOPENERS Either party, by giving written notice to the other party a minimum of one hundred twenty (120) days prior to the end of the fifth year of this contract may reopen for negotiation any portion or all of this Agreement for the years 2014 and 2015. C:\DOCUME—I\ramona\LOCALS—I\Temp\Goodyear 2008-8 YeandoC7 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 The Goodyear Tire & Rubber Company City of Beaumont Attn: Secretary 801 Main 1144 East Market Street P. O. Box 3827 Akron, Ohio 44316 Beaumont, Texas 77704 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 or 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 processing facility or modernization of or additions to present facilities and shall not include the maintenance, reconditioning, replacement, 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 C:\DOCUME-1\ramona\LOCALS-1\Temp\Goodyear 2008-8 Year.d-8 exclusion will take place. Subject to the upper and lower limitations on payments set out in Article I 4 (c) 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 remaining years of this contract. 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 Company's 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 C:\DOCUME-1\ramona\LOCALS-1\Temp\Goodyear 2008-8 Yeandoc9 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. I C:\DOCUME-1\ramona\LOCALS-1\Temp\Goodyear 2008-8 Year.dog0 IN WITNESS THEREOF, this Agreement, consisting of 11 pages plus Exhibit "A" is executed in duplicate counterparts as of this day of , 2008. CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: Tina Broussard City Clerk THE GOODYEAR TIRE & RUBBER COMPANY By: ATTEST: C:\DOCUME-1\ramona\LOCALS-1\Temp\Goodyear 2008-8 Year.doq] k 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 The Goodyear Tire and Rubber 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: CADOCUME--1W 14422\LOCALS-1\Temp\notesFE0FC0\Goodyear 2gO8-8 Year.doc ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2008 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 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: Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2008 shall be in the amount of$1,087,092. The payment will be made in two payments: A payment of$850,000 will be due on April 14, 2008, and $237,092 will be due on August 14, 2008. (b) The payment for 2009 shall be due and payable on or before February 1, 2009, and calculated as follows: C:\30CUME-1\a1 14422\LOCALS-1\Temp\notesFEOFC0\Goodyear 2Q08-8 Year.doc Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate =Assumed City Tax Due Year 170% of Assumed City Taxes Due=Payment due, not to be less than $1,200,000 Each October, the Chief Financial 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, 2008, the 2008 assessed values shall be used for the February 1, 2009 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 question and an adjustment for the payment, without interest, will be made within thirty(30) days following such resolution. (c) After the assessed value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2010 payment shall be 72% of assumed City taxes due, except such payment shall not exceed or be less than the 2009 payment by 10%. The 2011 payment shall be 74% of assumed City taxes due, except such payment shall not exceed or be less than the previous year's payment by 10%. The 2012 payment shall be 76% of assumed City taxes due, except the payment shall not exceed or be less than the previous year's payment by more than 10%. C:\DOCU ME-1\al 14422\LOCALS-1\Temp\notesFEOFC0\Goodyear 2g08-8 Year.doc The 2013 through 2015 payments shall be 80% of assumed City taxes due, except the payments shall not exceed or be less than the previous year's payment by more than 7% (d) 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 Chief Financial 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. 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 more particularly described in Exhibit "A" hereto, 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 CADOCUME-1W 14422\LOCALS—I\Temp\notesFEOFC0\Goodyear 2408-8 Year.doc 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 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. CADOCUME-1\a114422\LOCALS-1\Temp\notesFEOFC0\Goodyear 2008-8 Year.doc 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. ARTICLE V 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. C:\DOCUME-1\a114422\LOCALS-1\Temp\notesFEOFC0\Goodyear 2%D8-8 Year.doc ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "parent', "affiliates" and to any properties owned or acquired by said parent and 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 parent and or 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. The word "parent' as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII TERM OF AGREEMENT The term of this Agreement shall be for eight (8) years, commencing January 1, 2008, and ending on December 31, 2015. ARTICLE VIII CONTRACT REOPENERS Either party, by giving written notice to the other party a minimum of one hundred twenty (120) days prior to the end of the fifth year of this contract may reopen for negotiation any portion or all of this Agreement for the years 2014 and 2015. CADOCUME-1W 14422\LOCALS-1\Temp\notesFEOFC0\Goodyeaz 2Q08-8 Yeandoc 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 The Goodyear Tire &Rubber Company City of Beaumont Attn: Secretary 801 Main 1144 East Market Street P. O. Box 3827 Akron, Ohio 44316 Beaumont, Texas 77704 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 or 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 processing facility or modernization of or additions to present facilities and shall not include the maintenance, reconditioning, replacement, 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 CADOCUME-1W 14422\LOCALS—l\Temp\notesFEOFC0\Goodyear 2%08-8 Year.doc exclusion will take place. Subject to the upper and lower limitations on payments set out in Article I 4 (c) 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 remaining years of this contract. 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 Company's 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 CADOCUME—Ral 14422\LOCALS-1\Temp\notesFEOFC0\Goodyear 2908-8 Year.doc 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. CADOCUME-1\a114422\LOCALS-1\Temp\notesFEOFC0\Goodyear 2JV8-8 Yeandoc IN WITNESS THEREOF, this Agreement, consisting of 11 pages plus Exhibit "A" is executed in duplicate counterparts as of this Z l s� day of Qd @oS , 2008. CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: tnA.44 OA d Tina Broussard City Clerk THE GOODYEAR TIRE& RUBBER COMPANY By: ATTEST: NRkwvwftddw*dw* CIDOCUME-1W 14422\LOCALS-1\Temp\notesFEOFC0\Goodyear 2(198-8 Year.doc Exhibit 'A' - -WORTECII Land SurNeNors, Inc. out 110rafdll 11,17C 'N99 G;imly5 5''1-It? 10.' RzChirc! L. W(-'-rtney, R.P.L.S. Beaunio.)t, Texas 70(>,3,oq J.L. Sims, Jr. R.P.L.S. Te,,!: 409.86-6,9/ti9 F<ix, 409, 66-Ij/5 MCK E. fle,iut. R.P.L.S. August 10, 2005 GOODYEAR RETAINED PARCEL I BEING a 304.703 acre tract of land out of and a part of the T. &N.O. RR. Section No. 21, Abstract No. 261, the H.T. & B. RR. Section No. 25, Abstract No. 143, and the G.W. Kidd Survey,Abstract No. 761 in Jefferson County,Texas,and being the remainder of that same tract of land more fully described as First Tract in that certain deed dated June 20, 1960,recorded in Volume 1223, Page 221 of the Deed Records of Jefferson County,Texas executed by James P. Lee to The Goodyear Tire& Rubber Company. Said 304.703 acre tract of land being more particularly described as follows: BEGINNING at a point at the intersection of the North line of the Burlington,Northern, & Santa Fe Railroad(formerly known as the Gulf&Interstate Railroad) 100 feet wide right-of-way with the centerline of the Lower Neches Valley Authority(L.N.V.A.) 60 feet wide irrigation canal right-of-way, from which a I inch iron pipe found for reference bears South 41 degrees 37 minutes 00 seconds West a distance of 30.00 feet; THENCE South 41 degrees 37 minutes 00 seconds West along and with the North line of said Burlington, Northern, & Santa Fe Railroad right-of-way, a distance of 7894.33 feet to a point for comer in the centerline of Kidd Gully, same being the Southeast comer of called 80.238 acre tract of land, more fully described as Second Tract in said deed recorded in Volume 1223, Page 221, from which a 518 inch iron rod with cap stamped"Wortech" set for reference bears South 41 degrees 37 minutes 00 seconds West a distance of 100.00 feet; THENCE in a Northerly direction along and with the centerline meanders of said Kidd Gully, same being the East line of said 80.238 acre tract the following courses and distances: North 54 degrees 45 minutes 00 seconds West a distance of 317.55 feet to a point for comer; North 20 degrees 20 minutes 00 seconds West a distance of 209.75 feet to a point for comer; North 09 degrees 43 minutes 00 seconds East a distance of 481.68 feet to a point for comer; North 06 degrees 02 minutes 00 seconds East a distance of 530.68 feet to a point for corner; North 34 degrees 20 minutes 00 seconds West a distance of 166.84 feet to a point for comer, North 21 degrees 42 minutes 00 seconds West a distance of 412.25 feet to a point for comer; North 32 degrees 07 minutes 00 seconds West a distance of 140.46 feet to a point for comer; North 54 degrees 38 minutes 00 seconds West a distance of 237.32 feet to a point for comer in the South line of the Interstate Highway 10 right-of-way(300 feet wide), from which a 518 inch iron rod with cap stamped "Wortech" set for reference bears South 41 degrees 37 minutes 00 seconds West a distance of 100.00 feet; THENCE North 41 degrees 37 minutes 00 seconds East along and with the South line of said Interstate Highway 10 right-of-way, a distance of 2568.78 feet to a 5/8 inch iron rod with cap Page 1 of 5 G:\Projects 2004\2004-091\03\2004-091-03 Retained Parcel.doc stamped "Wortech" set for corner, same being the Northwest corner of a 17.330 acre tract of land out of and a part of said First Tract; THENCE in a Southerly direction along and with the Westerly line of said 17.330 acre tract the following courses and distances: South 48 degrees 21 minutes 12 seconds East a distance of 247.92 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for comer; South 40 degrees 53 minutes 23 seconds West a distance of 21.29 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; South 48 degrees 33 minutes 57 seconds East a distance of 86.44 feet to a cotton spindle set for corner; South 41 degrees 33 minutes 45 seconds West a distance of 180.64 feet to a cotton spindle set for corner; South 49 degrees 17 minutes 00 seconds East a distance of 208.21 feet to a cotton spindle set for comer; South 47 degrees 06 minutes 47 seconds East a distance of 140.54 feet to a cotton spindle set for corner; North 41 degrees 35 minutes 58 seconds East a distance of 118.52 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner, South 48 degrees 00 minutes 10 seconds East, passing at a distance of 183.84 feet a scribed"X" set in concrete for the Southwest corner of said 17.330 acre tract, same being the Northwest comer of a 1.529 acre tract of land out of and a part of said First Tract, and continuing along and with the Easterly line of said 1.529 acre tract a total distance of 223.85 feet to a 5/8 inch iron rod with cap stamped "Wortech"set for corner; North 44 degrees 18 minutes 54 seconds East a distance of 21.68 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; South 48 degrees 19 minutes 27 seconds East a distance of 189.69 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for the Southwest comer of said 1.529 acre tract; THENCE in an Easterly direction along and with the Southerly line of said 1.529 acre tract the following courses and distances: North 41 degrees 37 minutes 50 seconds East a distance of 260.80 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for comer; North 48 degrees 32 minutes 39 seconds West,passing at a distance of 270.90 feet a 5/8 inch iron rod with cap stamped "Wortech"set for the Northeast corner of said 1.529 acre tract, same being a Southeast corner of said 17.330 acre tract, and continuing a total distance of 400.91 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; North 42 degrees 46 minutes 50 seconds East a distance of 410.39 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; North 87 degrees 12 minutes 11 seconds East a distance of 19.46 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; South 48 degrees 42 minutes 32 seconds East a distance of 404.33 feet to a 5/8 inch iron rod with cap stamped"WORTECH"set for corner; North 43 degrees 00 minutes 02 seconds East a distance of 446.13 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for the Southeast comer of said 17.330 acre tract; Page 2 of 5 G:\Projects 2004\2004-091\03\2004-091-03 Retained Parcel.doc THENCE in a Northerly direction along and with the Easterly line of said 17.330 acre tract the following courses and distances: North 48 degrees 01 minutes 53 seconds West a distance of 238.47 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; South 41 degrees 26 minutes 55 seconds West a distance of 206.08 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; North 49 degrees 28 minutes 29 seconds West a distance of 649.04 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; South 41 degrees 32 minutes 17 seconds West a distance of 443.33 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner; North 48 degrees 15 minutes 12 seconds West a distance of 248.32 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for the Northeast corner of said 17.330 acre tract, same being in the South line of said Interstate Highway 10 right-of-way; THENCE North 41 degrees 37 minutes 00 seconds East continuing along and with the South line of said Interstate Highway 10 right-of-way,a distance of 2370.05 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for corner, from which a Texas Department of Transportation concrete monument found bears South 18 degrees 27 minutes 26 seconds West a distance of 4.19 feet; THENCE in a Northeasterly direction continuing along and with the South line of said Interstate Highway 10 right-of-way the following courses and distances: North 52 degrees 28 minutes 48 seconds East a distance of 169.48 feet to a 5/8 inch iron rod with cap stamped "Wortech" set for comer; North 59 degrees 28 minutes 10 seconds East a distance of 230.00 feet to a Texas Department of Transportation concrete monument found for corner; North 52 degrees 11 minutes 01 seconds East a distance of 150.00 feet to a Texas Department of Transportation concrete monument found for corner; North 41 degrees 37 minutes 11 seconds East a distance of 273.00 feet to a Texas Department of Transportation concrete monument found for corner; North 29 degrees 06 minutes 23 seconds East a distance of 120.00 feet to a Texas Department of Transportation concrete monument found for corner; North 19 degrees 39 minutes 04 seconds East a distance of 278.00 feet to a Texas Department of Transportation concrete monument found for corner; North 41 degrees 37 minutes l 1 seconds East a distance of 61.81 feet to a Texas Department of Transportation concrete monument found for corner in the East line of the relocated L.N.V.A. 60 feet wide irrigation canal right-of-way, same being the West line of Smith Road 60 feet wide right-of-way; THENCE South 61 degrees 36 minutes 17 seconds East along and with the East line of said canal right-of-way, same being the West line of said Smith Road right-of-way, a distance of 506.45 feet to a point for corner in the centerline of the original L.N.V.A. irrigation canal right- of-way; Page 3 of 5 G:\Projects 2004\2004-091\03\2004-091-03 Retained Parcel.doc THENCE South 50 degrees 08 minutes 00 seconds East along and with the centerline of said canal right-of-way a distance of 1472.64 feet to the PLACE OF BEGINNING, containing 13,272,843.95 Square Feet or 304.703 Acres of land, more or less. GOODYEAR RETAINED PARCEL 2 BEING an 80.305 acre tract of land out of and a part of the T. &N.O. RR. Section No. 25, Abstract No. 143 in Jefferson County,Texas, and being that same called 80.238 acre tract of land described as Second Tract in that certain deed dated June 20, 1960,as recorded in Volume 1223, Page 221 of the Deed Records of Jetferson County, Texas, executed by James P. Lee to The Goodyear Tire& Rubber Company. Said 80.305 acre tract of land being more particularly described as follows: BEGINNING at a 5/8 inch iron rod with cap stamped"Wortech" set for the Southwest corner of the herein described tract of land, same being the Southeast corner of a 31.85 acre tract of land more fully described in that certain deed recorded in Clerk's File No. 2001036136 of the Official Public Records of Jefferson County,Texas, same being in the North line of the Burlington, Northern, &Santa Fe Railroad (formerly known as the Gulf& Interstate Railroad) 100 feet wide right-of-way, from which a 5/8 inch iron rod found at the Southwest corner of said 31.85 acre tract bears South 41 degrees 37 minutes 00 seconds West a distance of 1200.09 feet; THENCE North 41 degrees 37 minutes 00 seconds East along and with North line of said railroad right-of-way, at 1082.59 feet passing a 5/8 inch iron rod with cap stamped "Wortech" set for reference,and continuing on a total distance of 1182.59 feet to a point for corner in the centerline of Kidd Gully, same being the Southwest corner of a called 325.692 acre tract of land, more fully described as First Tract in said deed recorded in Volume 1223, Page 221; THENCE in a Northerly direction along and with the centerline meanders of said Kidd Gully, same being the West line of said 325.692 acre tract of land the following courses and distances: North 54 degrees 45 minutes 00 seconds West a distance of 317.55 feet to a point for corner; North 20 degrees 20 minutes 00 seconds West a distance of 209.75 feet to a point for corner, North 09 degrees 43 minutes 00 seconds East a distance of 481.68 feet to a point for comer; North 06 degrees 02 minutes 00 seconds East a distance of 530.68 feet to a point for corner, North 34 degrees 20 minutes 00 seconds West a distance of 166.84 feet to a point for corner; North 21 degrees 42 minutes 00 seconds West a distance of 412.25 feet to a point for corner; North 32 degrees 07 minutes 00 seconds West a distance of 140.46 feet to a point for corner; North 54 degrees 38 minutes 00 seconds West a distance of 237.32 feet to a point for corner in the South line of the Interstate Highway 10 right-of-way(300 feet wide); THENCE South 41 degrees 37 minutes 00 seconds West along and with the South line of said Interstate Highway 10 right-of-way, at 100.00 feet passing a 5/8 inch iron rod with cap stamped "Wortech" set for reference, and continuing on a total distance of 1949.32 feet to a 5/8 inch iron rod with cap stamped "Wortech " set for corner,same being the Northeast corner of a 31.6 acre tract of land more fully described in that certain deed recorded in Volume 1295, Page 411 of said Deed Records, from which a Texas Department of Transportation concrete monument found bears South 41 degrees 37 minutes 00 seconds West a distance of 2420.16 feet; Page 4 of 5 G:\Projects 2004\2004-091\03\2004-091-03 Retained Parcel.doc THENCE South 00 degrees 09 minutes 26 seconds East along and with the East line of said 31.6 acre tract a distance of 505.66 feet to a 1 inch iron pipe found for corner, same being the Northeast corner of said 31.85 acre tract; "THENCE South 48 degrees 24 minutes 37 seconds East along and with the east line of said 31.85 acre tract a distance of 1628.11 feet to the PLACE OF BEGINNING, containing 3,498,088.23 Square Feet or 80.305 acres of land, more or less. (These descriptions are based upon a survey made on the ground under my direct supervision on April 17, 2003, November 4, 2004, and May S, 2005, and is being submitted along with a survey plat showing the property and,facts found as described herein. All bearings are based upon the Northwest line of said 325.692 acre tract, as being North 41 degrees 37 minutes 00 seconds East.) of R stered Professional Lan S eyor J.L. s1MS, 1R. oe 4599 ?� ►� svA4 Page 5 of 5 G:\Projects 2004\2004-091\03\2004-091-03 Retained Parcel.doc