HomeMy WebLinkAboutRES 16-096RESOLUTION NO. 16-096
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to execute a First Amended
Agreement to the Industrial District Agreement with ExxonMobil Oil Corporation. The
amended 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 24th day of
May, 2016.
w �N -Mayor EVecky Ames
Y
THE STATE OF TEXAS
COUNTY OF JEFFERSON
FIRST AMENDED AGREEMENT
This Agreement is made under the authority of Section 42.044 of the Texas Local
Government Code by and between the City of Beaumont, a municipal corporation and a home -
rule city located in Jefferson County, Texas, hereinafter called "CITY," and ExxonMobil Oil
Corporation, its parent, subsidiaries and affiliates, hereinafter called "COMPANY."
PREAMBLE
WHEREAS, City Council authorized the execution of an Industrial District Agreement
(IDA) by Resolution No. 16-024 on the 2"d day of February, 2016.
WHEREAS, ExxonMobil has requested abatements of two potential projects:
ExxonMobil Beaumont Polyethylene Expansion Project (BPEX) and ExxonMobil Beaumont
Refinery Capacity Expansion Project (SCANFiner) for an estimated total amount of $1.5 Billion.
WHEREAS, the parties agree that the IDA is to be amended to provide for the
abatement.
NOW, THEREFORE, in consideration of the foregoing promises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in
consideration of the mutual promises and agreements herein constrained, the Parties agree as
follows:
ABATEMENTS
1. Company is in advanced phases of evaluating two projects known as the ExxonMobil
Beaumont Polyethylene Expansion Project (BPEX) and the ExxonMobil Beaumont
EXHIBIT "A"
Refinery Capacity Expansion Project (SCANFiner) with final investment decisions
anticipated in 2016.
a. ExxonMobil Beaumont Polyethylene Expansion Project (BPEX): Possible
construction of a world-class polyethylene manufacturing production line located
alongside the current ExxonMobil Polyethylene Plant (BPEP). The facility would
be constructed on approximately 300 acres of land and will include a
polymerization line, finishing line, associated new utilities, control building, rail
facilities and interconnecting lines to the existing plant. All new construction and
equipment related to this project will receive 100% abatement for payments due
in each of the ten (10) years following the year the production line is fully
operational.
b. ExxonMobil Beaumont Refined Capacity Expansion Project (SCANFiner):
Possible construction of a facility which will increase the ExxonMobil Beaumont
Refinery's capacity to produce high-quality, ultralow-sulfur gasoline and diesel
fuels. It would be constructed on approximately 1.5 acres of land and will include
recycled compressors, reactors, cooling tower, drums, scrubbers, pumps,
analyzers, instrumentation and controls, fractionation units, utilities services
upgrade, building and condensers. All new construction and equipment related to
this project will receive 100% abatement for payments due in each of the ten (10)
years following the year the expansion is fully operational.
2. The abatements do not include the value of existing property. The Company shall be
responsible for the payment of ad valorem taxes based upon the existing value of the
property and improvements as determined by the Jefferson County Appraisal District.
The Company shall notify City in writing at least thirty (30) days prior to the date
construction is scheduled to commence.
3. In addition to the calculated payments to be made per the terms of the IDA, Company
agrees to pay to City in years 2017, 2018, and 2019, certain payments to be attributed
70% to BPEX and 30% to SCANFiner, as follows:
a. Year 2017 — Up to $750,000, with $525,000 attributed to BPEX and $225,000
attributed to SCANFiner
b. Year 2018 - $750,000, with $525,000 attributed to BPEX and $225,000 attributed
to SCANFiner
c. Year 2019 - $700,000, with $490,000 attributed to BPEX and $210,000 attributed
to SCANFiner
d. The payments identified in this paragraph and attributed to BPEX and
SCANFiner are contingent upon the respective project receiving final Company
approval and funding. Should either BPEX or SCANFiner fail to receive final
approval or funding, Company's payment obligation in 2017, 2018, and 2019 will
be reduced by the percent attributable (70% BPEX, 30% SCANFiner) to the
project or projects that did not receive final approval or funding.
4. In addition, the Annual Payment due as defined in the industrial district agreement shall
never be less than $11 million subject to the conditions for final Company approval and
funding set out in paragraph 3 above. Any 2017, 2018, or 2019 payment made in
accordance with paragraph 3 must be included when calculating Company's compliance
with minimum payment obligations. Upper and lower limitations as set out in Article 15
(b) of the agreement shall be applied to the prior year amount paid by Company.
EXISTING INDUSTRIAL DISTRICT AGREEMENT
Except as indicated above, all terms of the existing IDA as originally approved and
attached herein shall remain in full force and effect.
IN WITNESS THEREOF, this Agreement, consisting of 4 pages, is executed in
duplicate counterparts as of this day of , 2016.
CITY OF BEAUMONT, TEXAS
In
ATTEST:
Tina Broussard, City Clerk
Kyle Hayes, City Manager
EXXONMOBIL OIL CORPORATION
Fernando Salazar, Refinery Manager
Agent and Attorney -In -Fact
ATTEST:
Stephen Foster, Refinery Attorney