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HomeMy WebLinkAboutRES 08-348 RESOLUTION NO. 08-348 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 District Contract with Slamback Partners. The contract is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 23rd day of December, 2008. �1 .� C 1,111 Mayor Beck � I Y Y Ames - 11,1 r 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 Slamback Partners, 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 District which 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. In view of the above and foregoing reasons and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2009 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 "the properties"). 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for ad valorem tax purposes. 3. The term "Assumed City Taxes Due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2009 shall be due and payable on or before February 1, 2009. The 2009 payment is calculated as follows: SAAGENDA\AGENDA ITEM MEMOS\Slamback Industrial Contract.,�c Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2009 Payment Each October thereafter, the Chief Financial Officer of the City shall obtain the current Assessed Values set by the Jefferson County Appraisal District for the Company's Properties having taxable situs within the areas described in this Agreement. For example, in October, 2008, the 2008 assessed values shall be used in calculating the payment due February 1, 2009. 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 for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the Assessed Value of the Company's Properties has been determined, the annual payment due shall be calculated in accordance with the following schedule: The 2009 annual payment shall be eighty percent (80%) of Assumed City Taxes Due. The 2010 and 2011 annual payments shall be 80% of Assumed City Taxes Due, except such payment shall not exceed or be less than the previous year's payment by more than ten percent (10%). S:\AGENDA\AGE.NDA ITEM MEMOS\Slamback Industrial Contract.d-�c The 2012 through 2015 annual payments shall be seventy-five percent (75%) of Assumed City Taxes Due, except such payment shall not exceed or be less than the previous year's payment by more than seven percent (7%). (c) 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 Chief Financial 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 for the Properties involved in this Agreement for the year for 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 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 I1 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 real property, more particularly described in Exhibit "A" hereto, which are within the extraterritorial jurisdiction of the City of Beaumont. SIAGENDA\AGENDA ITEM MEMOS\Slamback Industrial Contract.¢4c 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 under this 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 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 City under this Agreement. 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 with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such S:\AGENDA\AGENDA ITEM MEMOS\Slamback Industrial Contract.dsc annexation becomes effective if the annexation becomes effective after January 1 st 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 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. 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, 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:\AGENDA\AGENDA ITEM MFMOS\Slamback Industrial Contract.48c 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 described in Exhibit "A" to this Agreement 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 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. S:\AGENDA\AGENDA ITEM MEMMSlamback Industrial Contract.dpc ARTICLE VII TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2009 and ending on December 31, 2015. ARTICLE VIII 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 Manager Slamback Partners City of Beaumont c/o Hal Bean 801 Main Street P. O. Box 430 P. O. Box 3827 Beaumont, Texas 77704-0430 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 prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. SAAGENDA\AGENDA ITEM MEMOS\Slamback Industrial ContractIc IN WITNESS THEREOF, this Agreement, consisting of 9 pages, is executed in duplicate counterparts as of this day of , 2008. CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: Tina Broussard City Clerk SLAMBACK PARTNERS By: ATTEST: SAAGENDA\AGENDA ITEM MEMOS\Slamback Industrial Contract.'�Pc 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 parries 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 Slamback Partners, 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 District which 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. In view of the above and foregoing reasons and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: 1 ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2009 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"the properties"). 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for ad valorem tax purposes. 3. The term "Assumed City Taxes Due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2009 shall be due and payable on or before February 1, 2009. The 2009 payment is calculated as follows: G:'Jndustrial Contracu\2009,Slamba&2009-RrW.doc 2 Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due Year 1 80%of Assumed City Taxes Due = 2009 Payment Each October thereafter, the Chief Financial Officer of the City shall obtain the current Assessed Values set by the Jefferson County Appraisal District for the Company's Properties having taxable situs within the areas described in this Agreement. For example, in October, 2008,the 2008 assessed values shall be used in calculating the payment due February 1, 2009. 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 for the payment, without interest, will be made within thirty(30) days following such resolution. (b) After the Assessed Value of the Company's Properties has been determined, the annual payment due shall be calculated in accordance with the following schedule: The 2009 annual payment shall be eighty percent (80%) of Assumed City Taxes Due. The 2010 and 2011 annual payments shall be 80% of Assumed City Taxes Due, except such payment shall not exceed or be less than the previous year's payment by more than ten percent (10%). GAndusbial Cartrads\2009'Slamba&2009-RW.doc 3 The 2012 through 2015 annual payments shall be seventy-five percent (75%)of Assumed City Taxes Due, except such payment shall not exceed or be less than the previous year's payment by more than seven percent(7%). (c) 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 Chief Financial 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 for the Properties involved in this Agreement for the year for 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 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 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 real property, more particularly described in Exhibit "A" hereto, which are within the extraterritorial jurisdiction of the City of Beaumont. G:Industrial ContradO009\Slamback 2009-Final.doc 4 ARTICLE III SALE BY COMPANY Company shall notify City of any We 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 under this 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 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 City under this Agreement. 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 with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such G:Andustrial Contmcts'a009'S1ambwk 2009-Final.doc 5 annexation becomes effective if the annexation becomes effective after January 1 st 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 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. 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, 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. GAndustrial Contracts1200MIamback 2009-Final.doc 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 described in Exhibit "A" to this Agreement 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 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. GAnduatrial CoMracW2009\Slamback 2009-Final.doc 7 ARTICLE VII TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2009 and ending on December 31, 2015. ARTICLE VIII 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 Manager Slamback Partners City of Beaumont c/o Hal Bean 801 Main Street P. O. Box 430 P. O. Box 3827 Beaumont, Texas 77704-0430 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 prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. G:UnduswW Contracts\2009VS1amba&2009-HnW.doc 8 IN WITNESS THEREOF, this Agreement, consisting of 9 pages, is executed in duplicate x counterparts as of this �� day of J r-^~ ,.ZDW. 200 9. CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: AM AL- AA n A M9-A Tina Broussard City Clerk 'i 1 Ilj SLAMBACK P TNERS III1h� �s By: ATTEST: GAndustrial Cartracu\2009VSlamback 2009-Final.doc 9 ADP3R42 101 JEFFERSON COUNTY APPRAISAL DISTRICT 12391002 BBAUMONP INDEPENDENT SCHOOL DISTRICT 1 06T FIBD' 09 10.10.43 2008 APPRAISAL ROLL PAGE: 1 ..............I................................................................................................................................. PID$ ACCOUNT NQMBBQ N A M 8 TAYRP L H G A L LAND VALUE PRORAT LAND PRORATED LIMIT APPR A C R H S t- 65 DUDES ---a BEG DAIS END DATE A N D OWNER D H S C A I P T I 0 N DSPROVBMHNTS D(PROV PCT IEFFESD DT SC PO DD AA CI HS 065 DIS VST HY A D D R H S S ROLL PU PRODUCJPHR.PROP PROD/PBR DAYS FILM CODE MA LA FI MU CO GROSS VALUE GROSS PU EY AMT DD CE ST RHM .................................................................................................................................01..41..49..55..oO... SLAMBAIX PARTNERS 137438 300131-000-000200-00000-b M H HODGES ABS 131 763,810 23.823 i HAROLD BEAN III 2 TR 2 23.823AC 525,150 00 59 00 00 01 PO BOY 430 R F1 ABSTRACT 300131 00 00 00 BSAMONT TX 77704-0430 LOT 2 1,288,960 .......................................................... .............................................................. ...................................... .......................... L A N D I!U?ROVBMSNfS PBR.PROPHRTY GROSS VALUE ACCTS PRODUC VALUE AG ACCTS 2Y61Q?'T ACRES I.B. SUB.DIV. 763,810 $25,150 1,288,960 1 23.823 atfaaaf traatttttaf aatf of aatftat atf rrf tafff aatattaaataraaf aafffff aattaaa tat aaafat ttf affaf tatatatiaaffataf raa•aaf taaaffaataf aaaaaa ataaafaatataaf■asst sit aaaaaf of raataaaat ataa tatrf ataaartaf aff m x ao A