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HomeMy WebLinkAboutRES 02-052 RESOLUTION NO. 02-052 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 Agreement with Trinity Industries. The agreement is substantially in the form attached hereto as Exhibit "A". PASSED BY THE CITY COUNCIL of the City of Beaumont this the 26th day of February, 2002. - Mayor - Pro Tem 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 Trinity Industries, its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS,the City has established an industrial district comprising a certain part of the extraterritorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, Company owns land and/or improvements within the City of Beaumont Industrial Districtwhich are a part of the manufacturing,industrial,and refining facilities of said Company. 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 by reason of being located immediately adjacent to said City and benefits derived by the Company by reason of being located within the Industrial District. SAAGENDA\CITY CLERK\No.5-TRINITY-08-01.wpd 1 / 9 EXHIBIT"A" 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 A. Annual Payment. Commencing with the calendar year 2002 and each calendar year thereafter for the duration of this Agreement,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 Agreement(herein referred to as the "Properties"). B. By the term"Assessed Value"is meant the 100%valuation of the Trinity Industries Properties, as determined by the Jefferson County Appraisal District for ad valorem tax purposes. C. The term"Assumed City Taxes Due"shall be calculated by the following formula: Assessed Value divided by 100 x the current ad valorem tax rate adopted by City Council of City = Assumed City Taxes due. D. Payment Procedures (1) The payment for 2002 shall be in the amount of$92,197 and shall be due and payable on or before March 15, 2002. The 2002 payment is calculated as follows: S:WGENDAUTY CLERK\No.5-TRINITY-08-01.wpd 2/9 Assumed City Taxes Due: $18,148,940 / 100 X 0.635 = $115,246 Year 1 80% of Assumed City Taxes Due = $92,197 Each October thereafter, the Finance Officer of the City shall obtain the current Assessed Values set by the Jefferson County Appraisal District forthe Company's Properties having taxable situs within the areas described in this Agreement. For example, in October, 2002,the 2002 Assessed Values shall be used in calculating the payment due February 1, 2003. If the Assessed Values of the Properties for a tax year are in question and/or under litigation with the Jefferson County Appraisal District,payment shall be computed on the most recent certified Assessed Values of the Properties by the Jefferson County Appraisal District. The Company shall notify the City following resolution of the Assessed Value question and an adjustment forthe payment,without interest,will be made within thirty(30)days following such resolution. (2) Afterthe Assessed Value of the Company's Properties have been determined, the annual payment due shall be calculated in accordance with the following schedule: The 2002 annual payment shall be eighty percent(80%)of Assumed City Taxes Due. The 2003 and 2004 annual payments shall be 80% of Assumed City Taxes Due. The 2005 through 2008 annual payments shall be seventy-five percent (75%) of Assumed City Taxes Due. S:WGENDXCITY CLERK\No.5-TRINITY-08-01.wpd 3/9 (3) City hereby agrees to bill Company for annual payments due hereunder on or before January 1 each year. Company shall pay such amount to City on or before February 1 each year. Upon receiving the annual payment due,the Finance Officer of the City shall issue an official receipt of said City acknowledging full,timely,final and complete payment due by said Company to City forthe Properties involved in this Agreement forthe yearforwhich such payment is made. If payment is not made on or before any due date,the same penalties, interest, attomeys'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 sixty (60) days of any such event. ARTICLE II. PROPERTY COVERED BY AGREEMENT This instrumentwill reflectthe intention of the parties hereto thatthis instrument shall govern and affect the Properties of Company(facilities,real, personal,and mixed)located on Company's real property as determined bythe Jefferson County Appraisal Districtwhich are within the extra-territorial jurisdiction of the City of Beaumont. SAAGENDAUTY CLERK\No.5-TRINITY-M01.wpd 4 /9 ARTICLE III. SALE BY COMPANY Company shall notify City of any sale of any or all of Company's Property, including facilities,to any person or entity,if the value of such property substantially affects the current assessed value of the property as set forth by the Jefferson County Appraisal District. As to payments due underthis Agreement no such sale shall reduce the amount due the City under this Agreement until the purchaser of such Property has entered into an Agreement 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 A. City agrees that it will not annex,attempt to annex or in anyway 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: (1) 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 protectthe general health,safety and welfare of persons residing within oradjacentto 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 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 for the year S:WGENDXCITY CLER"o.5-TRINITY-08-01.wpd 5/ 9 during which such annexation becomes effective if the annexation becomes effective after January 1st of said year. (2) 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. B. 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 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. C. 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 Properties 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. S:�AGENDXCITY CLERK\No.5-TRINITY-08-01.wpd 6/9 ARTICLE V. TERMINATION OR 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 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 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 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 owned by Company, and where reference is made herein to the Properties owned by Company,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 atthe time in question,owns or has the powerto exercise the control overfifty percent(50%)or more of the stock having the right to vote for the election of directors. ARTICLE VII. S:WGENDXCITY CLERK\No.5-TRINITY-08-01.wpd 7/ 9 TERM OF AGREEMENT The term of this Agreement shall be for seven(7)years,commencing January 1,2002, and ending on December 31, 2008. 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 5th year of this contract may reopen for negotiation any portion or all of this agreement for the years 2006 and 2007. ARTICLE IX. NOTICES Any notice provided for in this Agreement,orwhich 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 Trinity Industries City of Beaumont Property Tax Division 801 Main PO Box 35721 P. O. Box 3827 Dallas, Texas 75235-0721 Beaumont, Texas 77704 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. S:WGENDXCITY CLERK\No.5-TRINITY-08-01.wpd 8/9 IN WITNESS THEREOF, this Agreement, consisting of 9 pages, is executed in duplicate counterparts as of this day of , 2002. CITY OF BEAUMONT, TEXAS By: Stephen J. Bonczek City Manager ATTEST: Barbara Liming City Clerk TRINITY INDUSTRIES By: ATTEST: SAAGENDAUTY CLERK\No.5-TRINITY-08-01.wpd 9/9