HomeMy WebLinkAboutRES 19-0160
RESOLUTION NO. 19-016
WHEREAS, on December 8, 2015, the City Council of the City of Beaumont,
Texas passed Resolution No. 15-259 authorizing the City Manger to execute an
Industrial District Agreement with Air Liquide Large Industries U.S.; and,
WHEREAS, on February 18, 2014, the City Council of the City of Beaumont,
Texas passed Resolution No. 14-038 authorizing the City Manager to execute an
Industrial District Agreement with Natgasoline, LLC, a wholly-owned subsidiary of OCI
N.V.; and,
WHEREAS, due to a delay in the completion of construction an amendment to
the Industrial District Agreements with Air Liquide Large Industries U.S. and
Natgasoline, LLC is necessary to amend the terms of the tax abatement period from
years 2015 through 2024 to read as tax years 2015 through 2024 (fiscal years 2016
through 2024) to reflect an abatement of the new construction for a period of ten (10)
years as intended; and;
WHEREAS, City Council is of the opinion that it is in the best interest of the
citizens of the City of Beaumont for the City to enter into amendments to the Industrial
District Agreements between the City of Beaumont and Air Liquide Large Industries
U.S. and Natgasoline, LLC;
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
S
amendment to the Industrial District Agreements between the City of Beaumont and Air
Liquide Large Industries, U.S. and Natgasoline, LLC to amend the terms of the tax
abatement period from years 2015 through 2024 to read as tax years 2015 through
2014 (fiscal years 2016 through 2025), substantially in the form attached hereto as
Exhibits "A" and "B," respectively, and made a part hereof for all purposes.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of
January, 2019.
THE STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is made under the authority of §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
Air Liquide Large Industries US L.P, a Delaware limited partnership, hereinafter called
"Company."
•• IC
WHEREAS, City has established an industrial district comprising a certain part of
the extra -territorial jurisdiction of City, such industrial district being known as City of
Beaumont Industrial District (the "District").
WHEREAS, Company and/or its Affiliates (as hereinafter defined) owns and/or
leases land and improvements which are part of the manufacturing and industrial
facilities of Company and/or its Affiliates located within District, such land and
improvements (the "Property").
WHEREAS, 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 City and benefits derived by Company by reason of being
located immediately adjacent to City.
Page i
EXHIBIT "A"
0
WIEREAS, Company and City desire to base the industrial district payment on
assessed value to ensure equity among the companies.
WIEREAS, City desires to encourage the addition of new improvements to the
Company's property located within the City of Beaumont Industrial District.
In view of the above and foregoing reasons, and in consideration of the mutual
agreements herein contained, Company and City hereby agree as follows:
ARTICLE 1.
COMPANY'S OBLIGATION
1. The City of Beaumont granted Natgasoline, LLC 100% abatement for a
term of tax years 2015 through 2024, (Fiscal years 2016 through 2025) on all new
construction and improvements to existing, facilities on the herein described property. In
November 2014, Natgasoline made a partial Assignment of the abatement to Company
through which after executing a ground lease with Natgasoline, Company will construct,
own, and operate an air separation unit ("ASU") as part of Natgasoline's methanol
project. The estimated value of the ASU is $115 million. Such an assignment was
allowed by the industrial district agreement between the City of Beaumont and
Natgasoline. Such new construction and improvements will be abated at 100% through
tax year 2024 (Fiscal year 2025).
2. The abatement does not include the value of the existing property owned by
Company and in the City's extraterritorial jurisdiction related or unrelated to this new
construction. Company shall be responsible for the payment in lieu of taxes based upon
the existing value of the property and improvements currently existing on property leased
Page 2
from Natgasoline or any other unrelated property in the ETJ as determined by the
Jefferson County Appraisal District.
3. Company will make an annual payment to City on or before February 1 'c of
each such year computed based on 100% of the Assessed Value of the Company's
facilities and property, real, personal, and mixed, located on Company's land covered by
this Agreement (herein "the property") as provided herein (the "Annual Payment"). Upon
expiration of the abatement period, the Annual Payment shall include all property
covered by this Agreement.
4. "Assessed Value" means the 100% valuation of Company Property and
improvements thereon as determined by the Jefferson County Appraisal District for the
previous tax year.
5. "Assumed City Taxes Due" means the number obtained by the following
for
mul
a:
Assessed Value Less Improvement Value Subject to Abatement/ I 00x
Current City Tax Rate = Assumed City Tax Due
6. In October of each year the Finance Officer for City shall obtain the most
recent Assessed Value as set by the Jefferson County Tax Appraisal District and such
valuation shall be used for the Annual Payment due the following February; by way of
example, October 2015 Assessed Values would be used for the February 1, 2016
payment.
Page 3
J
If the assessed values 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.
a) 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 Fiscal years 2016-2018 payments shall be 100% of assumed taxes due.
The Fiscal years 2019-2021 payments shall be 80% of assumed City taxes due.
The Fiscal years 2022-2025 payments shall be 75% of assumed City taxes due.
b) City shall bill Company for 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 Finance 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 City as would be collectible in the case of delinquent ad valorem
4
taxes. Further, if payment is not timely made, all payments which otherwise would
have been paid to City had Company been in the city limits of City will be
recaptured and paid to City within 60 days of any such event.
Page 4
ARTICLE 11.
PROPERTY COVERED BY AGREEMENT
This Agreement will reflect the intention of the parties hereto that this Agreement
shall govern and affect the properties of Company and/or its Affiliates (facilities, real,
personal, and mixed) located on the Property more particularly described in Exhibit "A,"
which are within the extra -territorial jurisdiction of the City of Beaumont. "Affiliates"
shall mean any entity owned entirely or in part by Company.
ARTICLE Ill.
SALE BY COMPANY
(a) 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 City as provided under this Agreement.
Accordingly, and as to payments due under this Agreement, no such sale shall reduce the
amount due City under this Agreement until the purchaser of such facility has entered
into a contract in lieu of taxes with City that provides for a continuation of like payments
to City.
(b) Company shall have the right to assign, transfer or convey all, or any part
of, its rights, title and interest in the Agreement in connection with any transfer or
conveyance of title to all or any part of the properties subject to this Agreement to any
person or entity at any time of this Agreement; provided, however, that Company shall
provide City with written notice of such assignment. Company shall be relieved of its
obligations under this Agreement to the extent that an assignee expressly assumes
Company's obligations in a written instrument binding such assignee to City. Subject to
Page 5
the preceding, this Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns.
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 becomes final 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 1st 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
Page 6
annexation or incorporation and shall take such other legal steps as may be necessary or
advisable under the circumstances with all costs of such action being borne equally by the
City and by the said Company or companies with 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, 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 FOR 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
Page 7
performance of the Agreement, as is necessary to enforce its rights. It is further agreed
that should this Agreement be breached by Company, 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 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.
31, 2025.
ARTICLE V11.
TERM OF AGREEMENT
The term of this Agreement shall be for ten (10) years, expiring December
Page 8
NOTICES
Any notice provided for in this Agreement, 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 of Beaumont Air Liquide Large Industries US L.P.
Attn: City Manager Attn: Property Tax
801 Main Street P. O. Box 460149
Beaumont, Texas 77704 Houston, Texas 77056-8149
IN WITNESS THEREOF, this Agreement, consisting of ten pages plus Exhibit
"A" is executed in duplicate counterparts as of this day of 92019.
ATTEST:
Tina Broussard
City Clerk
City of Beaumont
Nei
Page 9
Kyle Hayes
City Manager
ATTEST:
Air Liquide Large Industries US L.P
Page 10
Legal Description: 24.0000 Net Acre Tract or Parcel of Land
Pelham Humphrey Survey, Abstract No. 32
Jefferson County, Texas
BEING a 25.0000 acre gross tract or parcel of land situated in the Pelham Humphrey Survey,'Abstract No.
32, Jefferson County, Texas and being out of and part of that certain tract of land as described in a deed from
the Beaumont Pasture Company. to Wm. McFaddin, W.P.H. McFaddin, V. Wiess and W.W. Kyle as
recorded in Volume 11, Page 174, Deed Records, Jefferson County, Texas and also being out of and part of
that certain called 366,58 acre tract of land as described in a deed from W.P.H. McFaddin and wife, Ida
Caldwell McFaddin to W:P.H. McFaddin, W,P.H. McFaddin, Jr. and J.L.C. McFaddin, Trustees of the
McFaddin Trust as recorded in Volume 387, Page 208, Deed Records, Jefferson County, Texas, the same
that certain called 3 66.5 8 acre McFaddin-Wiess-Kyle Land Co. tract as shown on the Partition Map No. I of
the McFaddin-Wiess-Kyle Land Co. as in Volume 4, Page 198, Map Records, Jefferson County, Texas and
also being out of and part of that certain called 298.90 acre tract of land, identified as Tract 3, as recorded in
a "Special Warranty Deed° from Mary Kyle, et al. to Judy Waldo, et al. as recorded in Film Code No. 105-
20-0357, Official Public Records of Real Property, Jefferson County, Texas, and also being out of and part
of that certain called 60 acre tract of land as described in a "Special Warranty Deed" from Kyle White to
Mary Kyle as recorded in Clerk's File No. 2007030761, Official Public Records of Real Property, Jefferson
County, Texas, save and except that certain called one acre tract, identified as Second Tract, as described in
a deed from the McFaddin Wiess & Kyle Land Company to W,E. Brice as recorded in Volume 55, Page
222, Deed Records, Jefferson County, Texas, the same being that certain called 1.0 acre tract of land as
described in a "Deed without Warranty" from IPLLC Centennial Partnership, IPLLC Centennial Partnership
Il and Spindletop Renaissance, LP to EeGp Cordts, Jr. as recorded in Clerk's File No. 2008022302 and
Clerk's File No. 2008022303, Official Public Records of
Real Property, Jefferson County, Texas, therefore leaving 24.0000 acres net, said tract being more
particularly described as follows:
NOTE: All bearings are referenced to the Texas State Plane Coordinate System South
Central Zone NAD83(CORS). All distances and acreages shown are surface. All set 5/8"
iron rods set with a cap stamped "M. W. Whiteley & Associates".
BEGINNING at a 5/8" iron rod found for the most Northerly corner of the tract herein described, said corner
being the most Northerly corner of the said 366.58 acre McFaddin-Wiess-Kyle Land Co. tract, the most
Northerly comer of the said 60 acre Kyle tract and said corner also being in the Southwesterly rightof-way
line of a L.N.V.A. canal (formerly known as McFaddin Canal No. 3) and said comer being in the common
line between the said Pelham Humphrey Survey and the John A. Veatch Survey, Abstract No. 55, Jefferson
County, Texas and said corner also being in the Southeasterly line of Block 40 t of Spindletop Heights
Subdivision as recorded in Volume 1, Page 27, Map Records, Jefferson County, Texas and said Block 40
being abandoned by the Commissioner's Court of Jefferson County on March 19, 1953 and recorded in
Volume 890, Page 633, Deed Records, Jefferson County, Texas;
THENCE SOUTH 51 03444" EAST, along and with the Southwesterly right-of-way line of the above
referenced L.N.V.A. canal and the Northeasterly line of the said 366.58 acre McFaddin-Wiess-Kyle Land
Co. tract and the Northeasterly line of the said 60 acre Kyle tract, for a distance of 242.54 feet to a 5/8" iron
rod set for comer, and from said corner a I I' iron pipe found for the most Northerly comer of that certain
called 67.9106 acre tract, identified as Tract Two, as described in a "Special Warranty Deed" from Barco
Crushed Concrete, Inc. to Martin Operating Partnership L.P. as recorded in Clerk's File No. 2007001379,
Official Public Records of Real Property, Jefferson County, Texas bears SOUTH 51 034144" EAST a I
distance of 954.54 feet;
25.0000 Acre Tract
T j,#!V WWI- I- t ?1'- 7� ISiWI'1f live;4:
a-
THENCE SOUTH 41 °56102" WEST, for a distance of200.38 feet to a 5/8'! iron rod set for comer;
THENCE SOUTH 0204334" EAST, for a distance of 1350.05 feet to a 5/8" iron rod set for corner, said
being in the Southeasterly line of the said 60 acre Kyle tract;
THENCE SOUTH 42006146" WEST, along and with the Southeasterly line of the said Kyle tract,
passing at a distance of 180.85 feet a 5/8" iron rod set for reference and continuing for a total distance
of 432.00 feet to a point for comer (unable to set due to water);
THENCE NORTH 87°58 148" WEST, for a distance of 354.39 feet to a point for corner (unable to set due
to water);
THENCE NORTH 04034' 19" WEST, for a distance of 126524 feet to a point for corner (unable to set due t(
water), said comer being in the Northwesterly line of the said 3 66.5 8 acre McFaddin-Wiess-Kyle Land _Co
tract and the Northwesterly line of the said 60 acre Kyle tract and being in the common line between the saic
Pelham Humphrey Survey and the said John A. Veatch Survey, and said corner also being in th(
Southeasterly line of Block 39 of the said Spindletop Heights Subdivision and said Block 39 being abandon(
by the Commissioner(s Court of Jefferson County on March 19, 1953 and recorded in Volume 890, Page 633
Deed Records, Jefferson County, Texas, and said corner bears NORTH 41 056102" EAST a distance o
1828.60 feet from a 3/4" iron rod found for the most Easterly comer of that certain called 47.3482 acre trac
of land as described in a "Special Warranty Deed with Vendor's Lien" from Sabine Gas Operating Compan]
to Coastal Caverns, Inc. as recorded in Clerk's File No. 2004031764, Official Public Records of Rea
Property, Jefferson County, Texas and an exterior ell corner of that certain called 15.7893 acre tract of land a:
described in a "Special Warranty Deed" from PCS Phosphate Company, Inc. to Centana Intrastate Pipelinf
Company as recorded in Clerk's File No. 9519110, Official Public Records of Real Property, Jeffersor
County, Texas;
THENCE NORTH 41 056102" EAST, for the boundary between the said Pelham Humphrey Survey and
the said John A. Veatch survey, the same being the Southeasterly line of former Blocks 39 and 40 of the
said Spindletop Heights Subdivision and also along and with the Northwesterly line of the said 298.90
acre Waldo, et al. tract, the same being the Northwesterly line of the said 366.58 acre McFaddin-Wiess-
Kyle Land Co. tact and the Northwesterly line of the said 60 acre Kyle tract, passing at a distance of
3 84.3 4 feet a 5/8" iron rod set for comer and continuing for a total distance of 93 4.3 4 feet to the POINT
OF BEGINNING and containing 25.0000 acres gross, more or less, save and except the above
referenced one acre W.E, Brice tract as recorded in Volume 55, Page 222, Deed Records, Jefferson
County, Texas, the same being that certain called 1.0 acre tract of land as described in a "Deed without
Warranty" from IPLLC Centennial Partnership, IPLLC Centennial Partnership 11 and Spindletop
Renaissance, LP to
E.G. Cordts, Jr. as recorded in Clerk's File No, 2008022302 and Clerk's File No. 2008022303, Official
Public Records of Real Property, Jefferson County, Texas, therefore leaving 24.0000 acres net, more or less.
Surveyed on November 21, 2007
survey.
Thomas S. Rowe,)
W2007 07A8607.986rRINama
This legal description is being submitted along with a plat based on this
25.0000 Acre Tract
Page 2 of 2
Legal Description: I .000 Acre Tract or Parcel of Land
Pelham Humphrey Survey, Abstract No. 32
Jefferson County, Texas
BEING a 1,000 acre tract or parcel of land situated in the Pelham Humphrey Survey, Abstract
No, 32, -Jefferson County, Texas and being all of that certain called one acre tract, identified as
Second Tract, as described in a deed from the McFaddin Wiess & Kyle Land Company to W.E.
Brice as recorded in Volume 55, Page 222, Deed Records, Jefferson County, Texas, the same
being that certain called acre fract of land as described, in a "Deed without Warranty" from IPLLC
Centennial Partnership, IPLLC Centennial Partnership Il and Spindletop Renaissance, LP to E.G.
Cordts, Jr. as recorded in Clerk's File No. 2008022302 and Clerk's File No. 2008022303, Official
Public Records of Real Property, Jefferson County, Texas, said 1.000 acre tract being more
particularly described as follows:
NOTE: All bearings are referenced to the Texas State Plane Coordinate System South
Central Zone NAD83(CORS). All distances and acreages shown are surface.
COMMENCING at a 5/8" iron rod found for the most Northerly corner of that certain called
366.58 acre McFaddin-Wiess-Kyle Land Co. tract as shown on the Partition Map No. 1 of the
McFaddinWiess-Kyle Land Co. as recorded in Volume 4, Page 198, Map Records, Jefferson
County, Texas and also being the most Northerly comer of that certain called 60 acre tract of land
as described in a "Special Warranty Deed" from 'Kyle White to Mary Kyle ag recorded in Clerk's
File No. 2007030761, Official Public Records of Real Property, Jefferson County, Texas and said,
corner also being in the Southwesterly right-of-way line of a L.N.V.A. canal (formerly known as
McFaddin Canal No. 3) and said corner being in the common line between the said Pelham
Humphrey Survey and the John A, Veatch Survey, Abstract No. 55, Jefferson County, Texas and
said corner also being in the Southeasterly line of Block 40 of Spindletop Heights Subdivision as
recorded in Volume 1, Page 27, Map Records, Jefferson County, Texas and said Block 4() being
abandoned by the Commissioner's Court of Jefferson County on March 19, 1953 and recorded in
Volume 890, Page 633, Deed Records, Jefferson County, Texas;
THENCE SOUTH 41 ° 56'02" WEST, for the boundary between the said Pelham Humphrey
Survey and the said John A. Veatch survey, the same being the Southeasterly line of former
Blocks 39 and 40 of the said Spindletop Heights Subdivision and also along and with the
Northwesterly line of the said 366.58 acre McFaddin-Wiess-Kyle Land Co. tract and the
Northwesterly line of the said 60 acre Kyle tract, for a distance of 703.40 to a point;
THENCE SOUTH 48°0358" EAST, over and across the said 366.58 acre McFaddin-WiessKyle
Land Co. tract, and the said 60 acre Kyle tract, for a distance of 396.99 feet to a 5/8" iron rod
found for the most Northerly comer and the POINT OF BEGINNING of the tract herein
described;
THENCE SOUTH 30003158" EAST, continuing for the boundary between the tract herein
described and the said 60 acre Kyle tract, for a distance of 208.71 feet to a 5/8" iron rod found for
comer;
1.000 Acre Tract
Pelof2
THENCE SOUTH 41 056102" WEST, continuing for the boundary between the tract herein
described and the said 60 acre Kyle tract, for a distance of 219.47 feet to a 5/8" iron rod found for
corner;
THENCE NORTH 3000358 WEST, continuing for the boundary between the tract herein
described and the said 60 acre Kyle tract, for a distance of 208.71 feet to a 5/8" iron rod found for
comer;
THENCE NORTH 41 °56102" EAST, continuing for the boundary between the tract herein
described and the said 60 acre Kyle tract, for a distance of 219.47 feet to the POINT OF
BEGINNING and containing 1.000 ACRES, more or less.
Surveyed on November 21, 2007. This legal description is being submitted along with a plat
based on this survey.
Thomas S. Rowe, RPLS No. 5728
//.7C0
.cf.Q•..
•-2.1K.Q .9
1.000 Acre Tract
Pa e20f2
THE STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is made under the authority of §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
Natgasoline, LLC, a Texas limited liability company and a wholly-owned subsidiary of OCI
N.V., hereinafter called "Company."
WHEREAS, City has established an industrial district comprising a certain part of the
extra -territorial jurisdiction of City, such industrial district being known as City of Beaumont
Industrial District (the "District").
WHEREAS, Company and/or its Affiliates (as hereinafter defined) owns and/or leases
land and improvements which are part of the manufacturing and industrial facilities of
Company and/or its Affiliates located within District, such land and improvements being
more particularly described in Exhibit "A" attached hereto (the" Property").
WHEREAS, 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 City and benefits derived by Company by reason of being located immediately
adjacent to City.
WHEREAS, Company and City desire to base the industrial district payment on
assessed value to ensure equity among the companies.
WHEREAS, City desires to encourage the addition of new improvements to the
Page 1
EXHIBIT "B"
Company's property located within the City of Beaumont Industrial District.
In view of the above and foregoing reasons, and in consideration of the mutual
agreements herein contained, Company and City hereby agree as follows:
ARTICLE I.
COMPANY'S OBLIGATION
1. The Company will receive 100% tax abatement for payments due in the years
of 2016 through 2025, on all new construction and improvements to existing land herein
described property. This abatement does not include the value of the existing property
described in Exhibit "A." The Company shall be responsible for the payment of ad valorem
taxes based upon the existing value of the property and improvements currently existing in
Exhibit "A" as determined by the Jefferson County Appraisal District. The Company shall
notify City in writing at least thirty (30) days prior to the date any construction that will be
subject to abatement is scheduled to commence
2. Company will make an annual payment to City on or before February 1 stof
each such year computed based on 100% of the Assessed Value of the Company's existing
real property covered by this Agreement (herein 'the property") as provided herein (the
"Annual Payment"). Upon expiration of the abatement period, the Annual Payment shall
include all property covered by this Agreement.
3. "Assessed Value" means the 100% valuation of existing Company property as
determined by the Jefferson County Appraisal District for the previous tax year.
4. "Assumed City Taxes Due" means the number obtained by the following
formula:
Assessed Value Less Improvement Value Subject to Abatement/100 x
Current City Tax Rate = Assumed City Tax Due
Page 2
5. In October of each year the Finance Officer for City shall obtain the most
recent Assessed Value as set by the Jefferson County Tax Appraisal District and such
valuation shall be used for the Annual Payment due the following February; by way of
example, October 2013 Assessed Values would be used for the February 1, 2014 payment.
If the assessed values 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.
6. Payments for each year of the agreement shall be equal to 100% of the
Assumed City Taxes Due, as defined above, on real property during the tax years of
abatement, 2015 thru 2024 (Fiscal years 2016 through 2025).
City shall bill Company for 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 Finance 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 City as would be collectible jn the case of
delinquent ad valorem taxes. Further, if payment is not timely made, all payments which
otherwise would have been paid to City had Company been in the city limits of City will be
recaptured and paid to City within 60 days of any such event.
ARTICLE II.
PROPERTY COVERED BY AGREEMENT
Page 3
This Agreement will reflect the intention of the parties hereto that this Agreement
shall govern and affect the properties of Company and/or its Affiliates (facilities, real,
personal, and mixed) located on the Property more particularly described in Exhibit "A,"
which are within the extra -territorial jurisdiction of the City of Beaumont, "Affiliates" shall
mean any entity owned entirely or in part by Company.
ARTICLE III.
SALE BY COMPANY
(a) 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 City as provided under this Agreement. Accordingly, and as
to payments due under this Agreement, no such sale shall reduce the amount due City under
this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes
with City that provides for a continuation of like payments to City.
(b) Company shall have the right to assign, transfer or convey all, or any part of,
its rights, title and interest in the Agreement in connection with any transfer or conveyance
of title to all or any part of the properties subject to this Agreement to any person or entity
at any time of this Agreement; provided, however, that Company shall provide City with
written notice of such assignment. Company shall be relieved of its obligations under this
Agreement to the extent that an assignee expressly assumes Company's obligations in a
written instrument binding such assignee to City. Subject to the preceding, this Agreement
shall inure to the benefit of and be binding upon the parties hereto and their respective
successors and assigns.
Page 4
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 jaw 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 becomes final 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 1st of said year.
M 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 costs of such action being borne equally by the
City and by the said Company or companies with 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
Page 5
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, 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 FOR 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, 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 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
Page 6
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.
2025.
ARTICLE VII.
TERM OF AGREEMENT
The term of this Agreement shall be fortes eleven years, expiring December 31,
NOTICES
Any notice provided for in this Agreement, 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
City of Beaumont
Attn: City Manager
801 Main Street
Beaumont, Texas 77704
TO COMPANY
Natgasoline LLC
PO Box 2008
Nederland, TX 77627
IN WITNESS THEREOF, this Agreement, consisting of 9 pages plus Exhibit "A" is
executed in duplicate counterparts as of this 19th day of January, 2019.
Page 7
ATTEST:
Tina Broussard
City Clerk
ATTEST:
City of Beaumont
Kyle Hayes
City Manager
Natgasoline, LLC.
Page 8
EXHIBIT "A"
The proposed project is to construct a new Chemical Plant. The ability to construct
this plant will enable Company to increase its productivity and marketing ability. The
facility would be constructed on approximately 514 acres of land (the defined
boundary of the OCI Reinvestment Zone is attached).
Significant components of the facility will include:
The project provides for the design and construction of one (1) methanol unit and
one (1) methanol to gasoline unit (MtG), related utility, infrastructure and logistics
improvements.
The proposed investment (or construction) for which the tax limitation is sought will
include one (1) methanol unit and one (1) methanol to gasoline unit (MtG), along
with all process auxiliaries including but not limited to packaged systems, blowers
and fans, furnaces, heat exchangers, electrical heaters, , rotary valves, vessels,
reactors, scales, trolleys and hoists pipe ways, utility service lines, raw material
pipelines, storage tanks, compressors, drums, f heat exchangers, pumps, filters
piping, insulation, electrical switchgear, transformers, instrumentation equipment,
equipment and structural foundations and supports, control equipment and
facilities, warehouses, raw material and utility distribution improvements, flare,
shipping facility improvements, inter -plant piping, other chemical processing
equipment, modifications, tie-ins, upgrades and revamps to existing facilities, air
compressors, electrical sub -stations, road improvements, utilities (including all
lines), flares, tankage, pipe connections, cooling towers, waste water units, control,
administration and other plant buildings, water and sewer treatment facilities, fire
prevention and safety equipment, any other tangible personal property utilized in
the process, storage, quality control, shipping, waste management and general
operation of the methanol and MtG units and any other infrastructure additions,
upgrades and modifications related to the methanol unit,
The qualified investment and qualified property will also include any other necessary
equipment to construct a fully functioning manufacturing plant.
Page 9