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HomeMy WebLinkAboutRES 02-017 RESOLUTION NO. 02-017 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS,the City Council of the City of Beaumont passed Resolution No. 01-234 on Octoberg,2001 authorizing the City Managerto execute an Industrial District Agreement with ATOFINA; and, WHEREAS,the amended Agreement is substantially in the form attached hereto as Exhibit "A". NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and is hereby authorized to execute the amended Agreement with ATOFINA Chemicals, Inc. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of January, 2002. - Guy N. Goodson, Mayor Pro Tern - 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 ATOFINA Chemicals, Inc., 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: SAAGENDAUTY CLEMATOFINA-1-02.wpd 1 /8 EXHIBIT"A" ARTICLE 1. COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2002 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 property,real,personal,and mixed located on Company's land covered by this contract as described in Article I I (hereinafter called the "Company's properties"). 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties,as determined by the Jefferson County Appraisal Districtfor the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assessed value=100 x the current ad valorem tax rate by City Council of City = Assumed City Taxes due. 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2002 shall be in the amount of$395,761 and shall be due and payable on or before February 1, 2002. The February 1, 2002 payment is calculated as follows: Assumed City Taxes Due: $77,905,730 / 100 X .635 = $494,701 Year 1 80% of Assumed City Taxes Due = $395,761 Each October thereafter,the Finance Officer shall obtain the most recent assessed SAAGENDMU Y GIERMTOFINA-1-02.wpd 2/8 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,2003,the 2003 assessed values shall be used for the February 1,2004 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 forthe payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties have been determined, the payment to City shall be 80%of assumed City taxes for the years 2002 2003, and 2004 and 75% of assumed City taxes for the years 2005, 2006, 2007 and 2008. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City such 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 any annual 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. SAAGENDAUTY CLERMATORNA-1-02.wpd 3/8 jdl Company expects to obtain approval of a construction pmject to be done by Company and Novus Intemational on Company's properties. Novus will lease land from ATOFINA to construct its part of the proposed project. In the event the project is approved, the value of Novus assets will be subject to provisions of this Agreement. No separate agreement with Novus will be executed. Should the project be approved, the annual payment provided for herein shall not exceed 110% of the prior year's payment in each of 2003 and 2004 and shall not exceed 107% of the prior year's payment in 2005. 2006, 2007 and 2008. In any event, such annual payment for each year of this Agreement shall never be less than $395,761 e jej In 2005. 20% of the assessed value of the project as determined by the Jefferson County Appraisal District will be included in the Company's and Novus' assessed value for purposes of calculating assumed city taxes due for the payment in 2006 subject to the 10% and 7% caps set out in Article I(4)(d)above. Each year thereafter an additional 20%of the assessed value of the project will be included in the calculation of assumed city taxes due subject to the 10% and 7% caps. Zf If the project is approved,paragraphs, "(d)"and"Le)"will take priority over the second and third subparagraphs of paragraphs "4(a)"and"4&"and Novus' assets shall constitute part of"Company's properties"underthis Agreement. If the project is not approved,paragraphs"(d)"and' e)"will be ofno force and effect and the contract will not include provisions providing for minimum or maximum payments. SAAGENDA\CITY CLERMTOFINA-1-02.wpd 4/8 ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affectthe 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 Ill. SALE BY COMPANY Company shall notify City of any sale of any or all of Company's properties to any person or entity. As to payments due under this contract,no such sale shall reduce the amount due the City under this contract until the purchaser of such property has entered into a contract in lieu of taxes with the City that provides for a continuation of payments to the City as if no such sale had been made. It is the intent of the parties that no sale of any of Company's properties will affect the amount to be paid to the City under this Agreement. ARTICLE IV. CITY'S OBLIGATIONS 1. City agrees that it will not annex,attempt to annex or in anyway cause or permit to be annexed any portion of Company's properties 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 Company's properties covered by this Agreement are 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. I n the event of such annexation,Company will not be required to make further payment underthis 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 forthe year during which S:\AGENDA\CITY CLEWATORNA-1-02.wpd 5/8 such annexation become effective if the annexation becomes effective after the last date on which taxes may be assessed in 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 of the Company's properties, 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 Company or all companies that have entered into agreements with the City for payments in lieu of taxes with respect to properties located within the City of Beaumont Industrial District 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 of the Company's properties within said City of Beaumont Industrial District,any rules, regulations,or any other actions: (a)seeking in anyway 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; 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 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, SAGENDAICITY CLERKIATORNA-1-02.wpd 6/8 Company may enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and may obtain such other equitable relief,including specific performance oftheAgreement,as is necessaryto 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 VI. AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's"affiliates"and to any properties owned or acquired by said affiliates within the area described in Exhibit "A" to this Agreement, and where reference is made herein to Company's property,that shall also include land, property and improvements owned by its 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. ARTICLE VII. TERM OF AGREEMENT Theterm of this Agreement shall beforseven(7)years,commencing January 1,2002, and ending on December 31, 2008. ARTICLE VIII. 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: SAAGENDMCITY CLERWATOFINA-1-02.wpd 7/8 TO CITY TO COMPANY City Manager ATOFINA Chemicals, Inc. City of Beaumont P. O. Box 1427 P. O. Box 3827 Beaumont, Texas 77704 Beaumont, Texas 77704 ARTICLE IX. 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 priorto such adjudication,and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 7 pages plus Exhibit"A", is executed in duplicate counterparts as of this day of ,2001. CITY OF BEAUMONT, TEXAS By: Stephen J. Bonczek City Manager ATTEST: Barbara Liming City Clerk ATOFINA Chemicals Inc. By: ATTEST: SAAGENDAUTY CLERMTOFINA-1-02.wpd 8/8