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HomeMy WebLinkAboutRES 98-340 RESOLUTION NO. 1 0 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 addendum to the Industrial Contract with Mobil Oil substantially in the form attached hereto as Exhibit "A" which original agreement was entered into in January, 1995 for the tax years 1995 - 2001. BE IT FURTHER RESOLVED that the City Manager be and is hereby authorized to approve a separate in lieu of agreement with the Wilmington Trust Company for the tax years 1999 - 2001 substantially in the form attached hereto as Exhibit "B." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 09�6 day of 1998. - Mayor - ADDENDUM TO INDUSTRIAL DISTRICT CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, pursuant to Article VIII of the Industrial Contract executed by and between THE CITY OF BEAUMONT, TEXAS and MOBIL OIL CORPORATION, dated January 20, 1995, the parties have mutually agreed to re-negotiate the amount of the payment for the tax years 2000 and 2001; and WHEREAS, THE CITY OF BEAUMONT desires planning and budget certainty, consistent with the requirements of Texas law; and The parties, after negotiation, have agreed that the payment amount for the tax year 2000 (payable on or before February 1, 2000) shall be $7,250,000, and the payment amount for the tax year 2001 (payable on or before February 1, 2001) shall be $7,600,000. It is understood that the foregoing amounts incorporates any amounts otherwise payable by the WILMINGTON TRUST COMPANY for tax years 2000 and 2001, relating to its properties in the City of Beaumont Industrial District. IN TESTIMONY WHEREOF,the parties have caused the Addendum to the Industrial Contract dated January 20, 1995,to be executed on the day of 1998,by their duly authorized representatives. THE CITY OF BEAUMONT, TEXAS By: ATTEST: MOBIL OIL CORPORATION By: ATTEST: EXHIBIT "A" TIDE 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 Wilmington Trust Company, hereinafter called"COMPANY." PREAMABLE WHEREAS, Company owns improvements, upon leased land, 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: ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. For each of the tax years 1999, 2000, and 2001, the Company will pay the City a certain sum(when due), which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed, located on Company's leased land covered by this contract. (Herein the"properties".) 1 EXHIBIT "B" 2. By the term"Assessed Value" is meant the 100%valuation of the Wilmington Trust Company's properties, as determined by the Jefferson County Appraisal District for the previous 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. PMent Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for tax year 1999 shall be in the amount of$321,761 and shall be due and payable on or before February 1, 1999. The February 1, 1999 payment is calculated based on a discount of the Assumed City Taxes due as follows: Assumed City Taxes due: $67,561,400 (-) 100 (x) 0.635 = $429,015 =Assumed City Taxes due, $429,015 (x) 75% Discount = $321,761 =payment due (b) Wilmington Trust Company's payment for tax year 2000 shall be a portion, [based on a ratio of Company's tax year 1999 Assessed Value to Mobil Oil Corporation's tax year 1999 Assessed Value], of Mobil Oil Corporation's tax year 2000 payment due of$7,250,000, as further described in this Agreement, Article 14 (d) below. (c) Wilmington Trust Company's payment for tax year 2001 shall be a portion, [based on a ratio of Company's tax year 2000 Assessed Value to Mobil Oil Corporation's tax year 2000 Assessed Value], of Mobil OR Corporation's tax year 2001 payment due of$7,600,000, as further described in this Agreement, Article 14 (d)below. (d) Wilmington Trust Company's obligations [for payments outlined herein in this Agreement, Article 14 (b) and (c), for tax years 2000 and 2001] shall be governed by and based entirely on the Agreement of January 20, 1995, and the October 1998 Addendum to Industrial District Contract thereto, between the City of Beaumont and Mobil Oil Corporation under the authority of Section 42.044 of the Texas Local Government Code. (e) City hereby agrees to bill Company for its tax years 1999, 2000, and 2001 obligations due hereunder on or before January 1, 1999, January 1, 2000 and January 1, 2001, respectively. Company shall pay to City the amount billed for tax years 1999, 2000, and 2001 on or before February 1, 1999, February 1, 2000, and February 1, 2001, respectively. Upon receiving the final payment for a tax year, 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 properties 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 the City as would be collectable in the case of delinquent ad 2 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 leased land more particularly described in Exhibit­r' hereto, which are within the extra-territorial jurisdiction of the City of Beaumont. 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 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 OBLICATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of facilities or properties or leased land 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 or leased land 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 is effective if the annexation becomes effective after January 1'r 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 3 any properties or leased 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. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any properties and leased land 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 properties and leased land 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 OR BREACH It is agreed by 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, 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 or leased by said affiliates within the area described in Exhibit"I"to this Agreement, and where reference is made herein to properties, improvements and leased land owned by Company, that shall also include properties, improvements and lease land 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. 4 ARTICLE VII TERM OF AGREEMENT The term of this Agreement shall be for three (3) years, commencing January 1, 1999, and ending on December 31, 2001. 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: TO CITY TO COMPANY City Manager Wilmington Trust Company City of Beaumont c/o Manager, Property Tax Division 801 Main 1201 Elm P. O. Box 3827 P. O. Box 290 Beaumont, TX 77704 Dallas, TX 75270 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. IN WITNESS THEREOF, this Agreement, consisting of 6 pages plus Exhibit "I", is executed in duplicate counterparts as of this day of , 1998. s CITY OF BEAUMONT, TEXAS ATTEST: By: Ray Riley City Manager Rosemarie Chiappetta City Clerk WILMINGTON TRUST COMPANY ATTEST: By: Morris S. Crim Mobil Business Resources Corporation Agent for and on behalf of Wilmington Trust Company(owner) Richard G. Sneed Assistant Secretary Mobil Business Resources Corporation 6 EXHIBIT 1 Part 1 of 2 Annex A to Exhibit A to the Facility Assets Lease Agreement The land and building referred to in Exhibit A to the Facility Assets Lease Agreement consist of the Main Tract, the Tank Farm Tract, and the Operator Shelter described below. Main Tract Legal Description: Tract One Paraxylene Plant 5.732 Acres of Land David Brown League, Abstract 5 Jefferson County, Texas BEING a 5.732 acre tract or parcel of land out of and a part of that certain 51.961acre tract (Mobil Oil Fee 1610 ) and a part of that certain 14.4798 acre tract(Mobil Oil Fee 1982 Aout of the David Brown League, Abstract 5, Jefferson County, Texas; which said 51.96 acre tract of land was conveyed by L Cartwright Realty Company to Magnolia Petroleum Company by deed dated April 9, 1942 recorded in Volume 510, Page 116 of the deed records of said Jefferson County, Texas and said 14.4798 acre tract of land was conveyed by Matthew Cartwright III and 11 Cartwright to Magnolia Petroleum Company by den! dated December 8, 1955 recorded in Volume 1004, Page 174 of the deed records of said Jefferson County, Texas. Said 5.732 acre tract of land being more particularly described as follows: Note: All bearing are bawd on a North line of a 3.359 acre coact(1 S0 foot right-of-wary)granted to GuyStates Utilities Company by easement from Magnolia petroleum Company dated August 30, 1951 recorded in Yolume 826, Pap 188 of the deed reconit of said Jefferson County as being South 89'15'00'West All coon d data shown air Infect and bawd on the Mobil Chemical Par=)lene Coordinate S)a1em as shown on the Beaumont Parmrylene Plant Plot Plan Dwg. No. 22822-02-1000-001. C0rdNMNC7NG at a S/8•iron rod found at the Southwest corner of a 3.864 acre tract as conveyed by John Bertram Streater and wife, Harrah Hayden Streater to Jefferson Shell Company by deed dated June 4, 1964 recorded in Volume 1388, Page 197 of the deed records of said Jefferson County and being at the Northeast corner of said 3.359 acre tract (150 foot right-of-way) and being in the East line of(Mobil Oil Fee 1693)as conveyed by J. I. Cartwright to Magnolia Petroleum by deed dated June 23, 1945 recorded in Volume 584, Page.276 of the deed records of said Jefferson County and being in the Ease line of Lot 4, Block I same being the West tine of Lot S, Block 1 of the Cartwright&Roberts Subdivision 'B' recorded in Volume 7, Page 4 of the map records of said Jeffenon County, Page 2 Legal Description: Tract One Paraxylene Plant 5.732 Acre of Land David Broom League, Abstract 5 Jefferson County, Texas THENCE North 07°50'58" West a distance of 3754.24 feet to a pk nail set(N 742.26, E 656.02) at the Southwest corner and PLACE OF BEGINMG of the tract herein described. THENCE along and with the lines of said Paraxylene Plant as follows: North 01 deg. 14 min. 44 see.West a distance of 400.74 feet to a 3/8" iron rod set (N 1143.01. E 656.02); North 88 deg. 45 min. 15 sec. East a distance of 66.00 feet to a 60d nail set(N 1143.01, E 722.02); North 01 deg. 15 min. 26 sec. West.&distan of 23.50 feet to a318" iron rod set (N 1166.50, E 722.02); South 88 deg. 45 min. 46 sec.West a distance of 13.99 feet to a 3/8" iron rod set (N 1166.5 1,E 708.03 ); North 01 deg. 19 min. 43 sec. West a distance of 20.99 feet to a 318"iron rod set (N 1187.50, E 707.99); North 88 deg. 45 aim 17 see.East a distance of 75.00 feet to a 3/8"iron rod set (N 1187.50,E 783.00); South 01 deg. 14 min. 18 sec. East a distance of 44.50 feet to a 3/8"iron rod sa (N 1142.99,E 782.99); North 88 deg. 4S min; 15 sea East a distance of 345.01 feet to a 3/8"iron rod set (N 1142.99,E 1128.00 Y South 01 deg. 16 min. 32 sec.East a dstance of 111.75 feet to a 6W nail set(N 103 l.25, E 1128.06 North 88 deg. 45 miL 19 sea East a distance of 107.75 feet to a 60d nail set(N 103 1.25,E 1235.80 r South 01 deg, 14 min.42 sea East a distance of 92.27 feet to a 60d nail set (N 931.98,E.1235.80 Y. North 88 deg.4S min. 36 sec.East a distsnce of 43.75 feet to a mark in concrete made(N 93 3.98, E 1281.56); North 01 deg. 14 min. 30 sec. West a distance of 44.02 feet to a 60d nail set (N 983.00, E 1281.56); North 88 deg. 45 min. 21 sec. East a distance of 180.24 feet to a mark in concrete made(N 982.99, E 146 1.80); South 01 deg. 14 min. 40 sec. East a distance of 29.02 feet to a mark in concrete made(N 953.98, E 146 1.80 North 88 deg. 45 min. 22 see. East a distance of 117.00 feet to a,pk nail set (N 953.97, E 1578.80); Page 3 Legal Description: Tract One Paraxyiene Plant 5.732 Acre of Land David Brown League, Abstract 5 Jefferson County, Texas South 01 deg. 14 min. 56 sec. East a distance of 79.12 feet to a pk nail set(N 874.85, E 1578.80); South 78 deg. 42 min. 39 sec. West a distance of 46.36 fees to a pk nail set(N 866.77, E 1533.15 ); South 88 deg. 45 min. 14 sec. West a distance of 48:60 feet to a 60d nail set(N 866.77, E 1484.56); North 01 deg. 17 min. 27 sec. West a distance of 6.48 feet to a 60d nail set(N 873.24, E 1484.55 ); South 88 deg. 45 min. 24 sec. West a distance of 52.84 feet to a pk nail set(N 873.25,E 1431.72 ); North 01 deg. 15 min. 21 sea West a distance of 27.00 feet to a pk nail set(N 900.24, E 1431.71 ); South 88 deg. 45 min. 50 sea West a distance of 10.66 fees to a pk nail set(N 900.24, E 1421.05); South 01 deg. 15 min. 22 sea East a distance of 27.00 feet to a pk nad set(N 873.25,E 1421.06); South 88 deg. 4S min. 25 sea West a die =of 25.17 fees to a pk nail set(N 873.25,E 1395.89); North 01 deg. 15 min. 37 sec.West a distance of 26.99 fed to a pk nail set(N 900.24,E 1395.88); South 88 deg.4S mm. 44 sec.West a distame of S3.99 feet to a pk nail set(N 900.24,E 1341.89 X South 01 deg. 14 min 43 sec.East a distance of 27.00 feet to a pk nail set(N 873.24,E 1341.88 X South 88 deg.46 min.09 see.West a distance of 24.08 feet to a pk nail set(N 873.259 E 1317.80 X North 01 deg. 14 rain 20 sea West a distance of 27.00 feet to a pk nail set(N 900.23,B 1317.80); South 88 deg, 45 min 13 sea West a distance of 56.00 fed to a pk nail set(N 900.23, E 1261.81 ); South 01 deg. 14 min. 20 sea East a distance of 58.47 fed to a 60d nail set(N 841.77, E 1261.80); North 88 deg. 4S min. 16 sea East a distance of 44.25 feet to a 60d nail set(N 859.20, E 1255.88 ); South 01 deg. 14 min. 50 sea East a distance of 86.78 fed to a 60d nail set(N 754.99, E 1306.03 ); Page 4 Legal Description: Tract One Paraxylene PIant 5.732 Acre of Land David Brown League, Abstract 5 Jef'erson County, Texas South 88 deg. 4S min 11 sec. West a distance of 44.25 feet to a 60d nail set (N 754.99, E 1261.80); South 01 deg. 14 min. 57 sec. East a distance of 76.95 feet to a 60d nail set(N 678.05, E 1261.80); North 88 deg. 45 min. 05 sec. East a distance of 72.22 feet to a 60d nail set(N 678.05, E 1334.02); North 01 deg. 14 min. 42 sec. West a distance of 36.71 feet to a 60d nail set(N 714.76, E 1334.02); South 61 deg. 24 min. 13 sea East a distance of 84.69 feet to a 60d nail set(N 672.61,E 1407.48 ); South 58 deg. 59 min. 15 sea West a distance of 84.62 feet to a 60d nail set(N 630.60, E 1334.03 ); North 28 deg. 25 min. 44 sea West a distance of 37.22 feet to a 60d nail set (N 663.7 1. E 1317.02); South 88 deg 45 min. 28 sea West a distance of 75.72 feet to a 60d nail set(N 663.72, E 1241.30); North 01 deg 14 min. 40 sea West a distance of 135.03 feet to a 60d m l set;(N 798.75, E 1241.30); South 88 deg. 45 min. 06 sea West a distance of 116M feet to a 60d nail set(N 798.75,E 1125.05 Y South 01 deg. 16 min. 43 sea East a diiscance of 59.75 feet to a point for corner (N 738.99,E 1125.09); South 88 deg 45 rein. 25 sec. West a distance of 141.03 feat to a pk nail set(N 739.01.E 984.06 k South 01 deg. 14 min. 04 sec.East a distance of 49.00 feet to a pk nail set(N 690.00,E 984.05 X South U deg.4S mia. 18 sec. West a distance of 149.03 feet to a 60d nail set(N 690.00,E 835:01 r North 01 deg. 14 ruin.37 sea West a distance of 131.24 feet to a mark in concrete made(N 821.25, E 83 5.02); North 88 deg. 44 min. S8 sea East a distance of 98.92 feet to a 60d nail set(N 821.26, E 933.94); North 01 deg. 14 min. 51 sec. West a distance of 75.75 feet to a 60d nail sa(N 897.0 1, E 933.94); South 89 deg 49 min. 44 sec. West a distance of 32.37 feet to a 60d nail set (N 897.61, E 901.58 ); Page 5 Legal Description: Tract One Paraxylene Plant 5.732 Acre of Land David Broom League, Abstract 5 Jefferson County, Texas North 00 deg. 55 min. 58 sec. West a distance of 39.23 feet to a mark in concrete made(N 93 6.24, E 901.79); South 88 deg. 54 min. 50 sea West a distance of 90.01 feet to a mark in concrete made(N 93 7.09, E 81 1.79); South 00 deg. 29 min. 01 sec. East a distance of 9.79 feel to a mark in concrete made(N 927.3 0, E 8 11.67); South 89 deg. 12 min. 28 sea West a distance of 17.64 feet to a mark in concrete made(N 927.44, E 794.02); South 01 deg. 14 min. 47 sea East a distance of 185.18 feet to a mark in concrete made(N 742.27, E 794.02); THENCE South 88 deg. 45 min. 16 sea West a distance of 138.00 feet to the PLACE OF BEGINNING, containing 5.732 Acres of land, more or less. SAVE AND EXCEPT THE FOLLOWING: BEING a 0.653 acre tract or parcel of land more particularly destrtbed as follows; COMN[ENCING at the Southwest corner of said 5.732 acre Paraxylene Plant; THENCE North 81 deg. OS min. S 1 see.East a distance of 592.81 fed a 60d nail set set (N 821.25,E 1243.54)at the Southeast corner and PLACE OF BEGMING of the tract herein desagmt TEEENCZ along and with the fines of said Paraxylene Plant as follow. South 88 deg.4$ min 17 sec.West a distance of 200.49 feet to a pk nail set(N 821.23,E 1043.05); North 01 deg. 14 min. 56 sec. West a distance of 33.75 feet to a pk nail set(N 855.00,E 1043.03 ); South 88 deg. 45 min. 26 sec. West a distance of 86.87 feet to a Wd nail set(N 85S.00,E 956.18); North 01 deg. 17 min. 08 set. West a distance of 4200 feet to a 60d nail set(N 897.0 1,E 956.15 ); North 88 deg. 45 min. 21 sec.East a distance of 171.90 feet to a 60d nail set(N 897.00, E 1128.05 ); } Page 6 Legal Description: Tract One Paraxylene Plant 5.732 Acre of Land David Brown League, Abstract 5 Jefferson County, Texas North 01 deg. 14 min. 36 sec. West a distance of 101.75 feet to a 60d nail set(N 998.75, E 1128.05 ); North 88 deg. 45 min. 11 sec. East a distance of 88.25 feet to a 60d nail set(N 998.76, E 1216.31 ); South 01 deg. 14 min. 36 sec. East a distance of 79.00 feet to a 60d nail set(N 919.76, E 1243.54); North 88 deg. 45 min. 57 sec. East a distance of 27.24 feet to a 60d nail set set(N 919.75, E 1243.54); TEDENC'E South 01 deg. 14 min. 45 sec. East a distance of 98.50 feet to the PLACE OF BEGUfNING, containing 0.653 acres of land, more or less leaving a net acreage of 5.079 acres in Tract One. . EXHIBIT 1 Part 2 of 2 Tank Farm Tram Legal Description: Tract Two Paraxylene Plant-Tank 9608 0.268 Acre of Land David Brown League, Abstract 5 Jefferson County, Texas BEING a 0.268 acre tract or parcel of land out of and a part of that certain 51.961acre tract (Mobil Oil Fee 1610 ) out of the David Brown League, Abstract 5, Jefferson County, Texas; which said 51.96 acre tract of land was eomveye&by L. Cartwright Realty Company to Magnolia Petroleum Company by deed dated April 9, 1942 recorded in Volume 510, Past 116 of the deed records of said Jefferson County, Texas. Said 0.268 acre tract of land being more particularly described as follows: Note: All bearings cars based on a North line of a 3.359 ears tract(1 S0 foot right-of-way) granted to Gulf State Utilldes CompanY by easement from Magnolia Petroleum Company dated August 30, 1951 recorded in Volume 826, Page 188 of the deed records of said Je,femon County as being South 89'15'00" West:All coordinates shown an infect and based on the Mobil Chemical Pxmylene Coordlnatc System as shown on the Beaumont Parmeylene Plant Plot Plan Dwg.No. 22822-G2-1000-001. COM X,NCING at a 518" iron rod found at the Southwest coder of a 3.864 acre tract as conveyed by John Bertram Streator and wife,Hutch Hayden Strater to Jefferson Shell Company by deed dated June 4, 1964 recorded in Vohune 1388,Page 197 of the deed records of said Jefferson County and being at the Northeast corner of said 3.359 acre tract (150 foot right-of-way) and being in the Fast fine of(Mobil Od Fee 1693) as conveyed by J. L Cartwright to Magnolia Petroleum by deed dated June 25, 1945 recorded in Volume 584, Page 276 of the deed records of said Jefferson County and being in the East Brie of Lot 4,Block 1 same being the West line of Lot 5,Block 1 of the Cartwright do Roberts Subdivision"B" recorded in Volume 7,Page 4 of the map records of said Jefferson County; THENCE North 02'23'24' East a distance of 4346.65 fees to a point(N 1235.07, E 13 87.91 ) for the center of a circle with a radius of 60.93 feet containing 0.268 acre of land. INTER-OFFICE MEMORANDUM ------------------------- CITY OF BEAUMONT,TX TO: Mayor and Councilmembers FROM: Kyle Hayes SUBJECT: Amendment to Industrial Contract with Mobil DATE: December 1, 1998 In January of 1995, the City entered into an Industrial Contract or an In Lieu Contract with Mobil Oil for the tax years 1995-2001. We are recommending that a separate agreement be approved to recognize another entity at the Mobil Refinery and that an addendum to the contract be approved whereby the City will receive set payments in years 2000 and 2001. The other agreement would separate a 5.7 acre tract known as the Paraxylene Plant and a 0.268 acre tank farm from the current contract. The above properties will be owned by the Wilmington Trust Company. The Wilmington Trust Company will continue to be a part of the Mobil Refinery; however, the separation in name only will provide tax benefits for the Refinery. The Wilmington Trust Company's in lieu of tax payment will be included in the payments made by Mobil for years 1999-2001. The separate agreement in effect only recognizes the new company or name change. The City will continue to provide fire protection to the new company just as it has in the past. The addendum to the contract is related to the method of payment. For fiscal year 1999, Mobil will make a payment to the City in the amount of$6,900,000. The City Manager has been successful in negotiating an addendum to the contract whereby the City will receive set payments in fiscal years 2000 and 2001. Based on the $6,900,000 payment in 1999, the addendum provides for a 5% increase in year 2000 or a$7,250,000 payment with an additional 5%increase in year 2001 or a$7,600,000 payment. The set payments will allow for better planning and budgeting. In the past,the payment was based on a formula in which 75% of the tax rate was applied to the assessed value . An increase did not occur in two of the last five years; however, Mobil made a voluntary contribution of$350,000 each year for specified uses. The amendment will replace estimating anticipated revenues for the last two years of the contract with guaranteed amounts which represent a 5% increase in contribution each year. Based on the recent merger with Exxon, the amendment clearly protects the City from corporate decisions which could adversely affect the local refinery. The City continues to have an excellent working relationship with Mobil. We recommend that the addendum to the contract and the separate agreement with the Wilmington Trust Company be approved for the benefit of both parties.