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HomeMy WebLinkAboutRES 12-013 RESOLUTION NO. 12-013 WHEREAS, on April 19, 2011, City Council approved Resolution No. 11-135 authorizing the City Manager to execute an Industrial District Contract with Oiltanking Beaumont Partners, L.P.; and, WHEREAS, due to the approval of the disannexation in April 2011, the effective date for tax purposes is January 1, 2012 thereby making the first in-lieu of tax payment not due until year 2013; and, WHEREAS, an amendment to the contract is necessary to reflect the in-lieu of tax payment due dates; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Manager be and he is hereby authorized to execute an amended Industrial District Contract with Oiltanking Beaumont Partners, L.P. The contract 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 17th day of January, 2012. ayor Becky Ames - l� 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 Oiltanking Beaumont Partners, LP,subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the terminaling 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: 1 C 1DOCtUMG-INyrauV.(X'AI.S-IS'1'cmp+rrotcsG031K'8lDihaoting Bowman.Parinmrs 1.112013-2011 doc EXHIBIT"A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2013 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: 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 2013 shall be due and payable on or before February 1, 2013, and calculated as follows: 2 C-U)OCUMIi-IU yrone U.00AI.S-1%1'emp\we"30CMhankins BesnmoM Pannerc LP 2013.2015.doe Assumed City Taxes Due: (1) Assessed Value of existing property,on the books at the time of disannexation,/ 100 X Current City Tax Rate = Assumed City Tax Due Year 1 100%of Assumed City Taxes Due = 2013 Payment on existing property (2) Assessed Value of new improvements made after the effective date of the disannexation/ 100 X Current City Tax Rate=Assumed City Tax due Year 175%of Assumed City Taxes Due=2013 Payment on new improvements Total 2013 Payment=(1)+(2) Each October thereafter, 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, 2012, the 2012 assessed values shall be used for the February 1, 2013 payment. This assessed value 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. 3 CADOCUMH-I\Iyroac I.OCAI.S-ri7'empinaec6b30C81p4knnking Hemmom Panwrs LP 2013.2815.doc (b) 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 2013 - 2015 payments shall be 100% of assumed City taxes due on existing property and 75%on any new improvements. 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 as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. See Exhibit A for the legal description of property covered by this agreement. This agreement shall also govern and affect any improvements or additions to the existing property. 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 4 C:M)OC AML-ntym=V.ncnLs-I\rempinac0030C ikanriag neaumm r.nne..Lr sod 3.201 s a« 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 l 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 S C:IDOCUMI 14 yronc\LLOC'AI.S--RTanV%motea6O30CWiltm*ing Hosunwnt Partners LP 2013-2015.duc and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. The City will also provide police protection if called upon by the Jefferson County Sheriff's Department for assistance. ARTICLE IV TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either 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 6 C-WOCUMIi-IkyroxU.OCAI.S-11 TcmpinmesW3 0CM)IankinaBcwn1001fa nnersLP2013•2015A c to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE V TERM OF AGREEMENT The term of this Agreement shall be for three (3) years, commencing January 1, 2013, and ending on December 31, 2015, ARTICLE VI NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY Kyle Hayes,City Manager Kim M. Ivy,Vice President and Terminal Manager City of Beaumont Oiltanking Beaumont Partners, LP 801 Main 6275 Hwy 347 Beaumont, Texas 77704 Beaumont, TX 77705 7 (:UX)CUML-NyroneU.0CALS-lyf"lnde3b030(:?A(Mitan4•ing Bauman Pothers LP 2013-2015 doe ARTICLE VII 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. 8 C.U"UMli-14ymncUA GALS-iVl'emp%nmc960)OCMihnnkipS Henunwm Pmnen LP 2013-2015.doc i IN WITNESS THEREOF,this Agreement, consisting of 8 pages, is executed in duplicate counterparts as of this day of , 2012. CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: Tina Broussard City Clerk COMPANY By: ATTEST: 9 GVtWuWislCadraab11W910kwiftOnumoAPatu tLP2013.2015AOC