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HomeMy WebLinkAboutRES 09-029 RESOLUTION NO. 09-029 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 Entergy Texas, Inc. 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 27th day of January, 2009. - Mayor Becky Ames - S 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 Entergy Texas Inc., hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and/or 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: 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 Contra h 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. (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 the previous tax year. 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 February 1, 2009 payment is calculated as follows: 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 2 Each.October thereafter, the Chief Financial Officer shall obtain the most recent assessed 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, 2008, the 2008 assessed values shall be used for the February 1, 2009 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 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 payment to City shall be 80% of assumed City taxes for the years 2010 - 2011 and 75% of assumed City taxes for the years 2012 - 2015. (c) City hereby agrees to bill Company for its 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 final payment, the Chief Financial 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 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 3 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 real property more particularly described in Exhibit "A" hereto, which are within the extra-territorial jurisdiction of the City of Beaumont. Additional property not included in Exhibit "A" but covered by this agreement includes the land, caverns, gas, and personal property located on Company's real property commonly known as the Spindletop Gas Storage Facility as shown on the records of the Jefferson County Appraisal District which are also within the extra- territorial jurisdiction of the City of Beaumont. ARTICLE III SALE BY COMPANY Company shall notify City of any sale or transfer of any or all of Company's facilities to any person or entity. As to payments due under this contract no such sale or transfer shall reduce the amount due the City under this contract until the purchaser or recipient of such facility 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 or transfer had been made. It is the intent of the parties that no sale or transfer of any of Company's facilities will affect the amount to be paid to the City under this Agreement. 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 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 becomes effective if the annexation becomes effective after January 1 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 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 land and property of Company within said City of Beaumont 5 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 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 OF 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. 6 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 Article II of and 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 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 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 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 President City of Beaumont Entergy Texas Inc. 801 Main P.O. Box 2951 P. O. Box 3827 Beaumont, Texas 77704-2951 Beaumont, Texas 77704 7 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. IN WITNESS THEREOF, this Agreement, consisting of 9 pages plus Exhibit "A", is executed in duplicate counterparts as of this day of , 2009. CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: Tina Broussard City Clerk ENTERGY TEXAS, INC. By: ATTEST: 8 EXHIBIT "A" Entergy Texas Inc., Real and Personal Property located within the five mile extraterritorial limits of the City of Beaumont is as follows: Substations Jefferson County Name Amelia Bulk Bevil Mobil Chemical No. 1 Mobil Chemical No. 2 Mobil Chemical No. 3 Mobil Hebert Dupont Beaumont Gulf Lucas Meeker Colonial Hebert McFaddin Spurlock Dupont Capro Houston Chemical Humphrey Dupont Dee Cheek Central Goodyear Cheek Colmobil Pennwalt Poly Villiva Orange County Georgetown Hardin County Loeb Transmission Lines: Jefferson County KV Miles 69 41.53 138 35.10 230 41.15 Orange County KV Miles 69 4.44 138 19.71 230 4.96 Hardin County KV Miles 69 5.00 138 5.60 Distribution Facilities Neches Station Machine Shop Real Estate (See Attached) REAL ESTATE TRACT NO. 1 BEING a tract of land out of the David Brown League Abstract 5, Jefferson County, Texas, being more fully described as follows: BEGINNING at a southeast corner of Entergy Texas Inc., tract, same being the intersection of the left ascending bank of the "Cut Off Ship Channel" cutting through Blocks 15, 16, 17 and 20, C. Cartwright No. 2, D. Brown League, A-5, Jefferson County, Texas, and the north line of Cartwright and Roberts Subdivision B, same being the south line of the C. Cartwright Subdivision No. 2 in the D. Brown League, A-5; THENCE West along a south line of Entergy Texas Inc., tract and a north line of Mobil Oil, same being the north line of the Cartwright and Roberts Subdivision B and the south line of C. Cartwright Subdivision No. 2 to interior corner of the Entergy Texas Inc., tract, same being the northeast corner of Lot G, Block 3, Cartwright and Roberts Subdivision B; THENCE South along an east line of Entergy Texas Inc., tract and west line of Mobil Oil Corporation property and Houston Chemical Company to the most southeast corner of the Entergy Texas Inc., tract; THENCE West along a south line of the Entergy Texas Inc., tract and a north line of Mobil Oil property and the west extension of same to a point for corner, said corner being 100 ft. east of an east line of Mobil Oil property and the west line of Entergy Texas Inc.'s 150 ft. power line right of way; THENCE North along a line that is parallel to and 100 ft. east of the west line of Entergy Texas Inc.'s 150 ft. power line right of way and the east line of Mobil Oil property to the north line of Cartwright and Roberts Subdivision B; THENCE West along a south line of Entergy Texas Inc., property and the north line of Cartwright and Roberts Subdivision B to the south bank of the south leg of"Old River"; THENCE in a northeasterly direction along a northwesterly line of Entergy Texas Inc., property and the south bank of the south leg of"Old River", to the left ascending bank of the "Cut Off Ship Channel" of the Neches River; THENCE in a southeasterly direction along the left ascending bank of the "Cut Off Ship Channel" of the Neches River to the point of beginning. 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 Entergy Texas Inc., hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and/or 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: 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 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. (Herein "the properties") 2. By the term "Assessed Value" is meant the 1001/o valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 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 February 1, 2009 payment is calculated as follows: Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate =Assumed City Tax Due Year 1 80%of Assumed Cite Taxes Due = 2009 Pa-,-ment 2 Each October thereafter, the Chief Financial Officer shall obtain the most recent assessed 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, 2008, the 2008 assessed values shall be used for the February 1, 2009 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 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 payment to City shall be 80% of assumed City taxes for the years 2010 - 2011 and 75% of assumed City taxes for the years 2012 - 2015. (c) City hereby agrees to bill Company for its 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 final payment, the Chief Financial 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 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. 3 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 extra-territorial jurisdiction of the City of Beaumont. Additional property not included in Exhibit "A" but covered by this agreement includes the land, caverns, gas, and personal property located on Company's real property commonly known as the Spindletop Gas Storage Facility as shown on the records of the Jefferson County Appraisal District which are also within the extra- territorial jurisdiction of the City of Beaumont. ARTICLE III SALE BY COMPANY Company shall notify City of any sale or transfer of any or all of Company's facilities to any person or entity. As to payments due under this contract no such sale or transfer shall reduce the amount due the City under this contract until the purchaser or recipient of such facility 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 or transfer had been made. It is the intent of the parties that no sale or transfer of any of Company's facilities will affect the amount to be paid to the City under this Agreement. 4 ARTICLE IV CITY'S OBLIGATIONS I. 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 annexation becomes effective if the annexation becomes effective after January I 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 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 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 5 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 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 OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall sat i sfy the rights a n obligations assumed by t h e 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. 6 ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's it and to any properties owned or acquired by said affiliates within the area described in Article 11 of and 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 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 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 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 President City of Beaumont Entergy Texas Inc. 801 Main P.O. Box 2951 P. O. Box 3827 Beaumont, Texas 77704-2951 Beaumont, Texas 77704 7 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. IN WITNESS THEREOF, this Agreement, consisting of 8 pages plus Exhibit "A", is ri -- executed in duplicate counterparts as of this Z� day of ] L �1 2009. CITY OF BEAUMONT, TEXAS By: v� Kyle Hayes City Manager A TEST: Tina Broussard City Clerk igONT ENTERGY TEXAS, INC. tetN } 1 �] Y L_1 .. . 3 f = ' ATTEST: A. �. 8 EXHIBIT"A" Entergy Texas Inc., Real and Personal Property located within the five mile extraterritorial limits of the City of Beaumont is as follows: Substations Jefferson Countv Name Amelia Bulk Bevil Mobil Chemical No. 1 Mobil Chemical No. 2 Mobil Chemical No. 3 Mobil Hebert Dupont Beaumont Gulf Lucas Meeker Colonial Hebert �tv McFaddin— - be m o t i s u F D Spurlock Dupont Capro Houston Chemical Humphrey Dupont Dee Cheek Central Goodyear Cheek Colmobil Pennwalt Poly Villiva Orange County Georgetown Hardin County Loeb Transmission Lines: Jefferson County KV Miles 69 41.53 138 35.10 230 41.15 Orange County KV Miles 69 4.44 138 19.71 230 4.96 Hardin County KV Miles 69 5.00 138 5.60 Distribution Facilities Neches Station Machine Shop Real Estate (See Attached) REAL ESTATE TRACT NO. 1 BEING a tract of land out of the David Brown League Abstract 5, Jefferson County, Texas, being more fully described as follows: BEGINNING at a southeast corner of Entergy Texas Inc., tract, same being the intersection of the left ascending bank of the "Cut Off Ship Channel" cutting through Blocks 15, 16, 17 and 20, C. Cartwright No. 2, D. Brown League, A-5, Jefferson County, Texas, and the north line of Cartwright and Roberts Subdivision B, same being the south line of the C. Cartwright Subdivision No. 2 in the D. Brown League, A-5; THENCE West along a south line of Entergy Texas Inc.,tract and a north line of Mobil Oil, same being the north line of the Cartwright and Roberts Subdivision B and the south line of C. Cartwright Subdivision No. 2 to interior corner of the Entergy Texas Inc., tract, same being the northeast corner of Lot G,Block 3, Cartwright and Roberts Subdivision B; THENCE South along an east line of Entergy Texas Inc., tract and west line of Mobil Oil Corporation property and Houston Chemical Company to the most southeast corner of the Entergy Texas Inc., tract; THENCE West along a south line of the Entergy Texas Inc., tract and a north line of Mobil Oil property and the west extension of same to a point for corner, said corner being 100 ft. east of an east line of Mobil Oil property and the west line of Entergy Texas Inc.'s 150 ft. power line right of way; THENCE North along a line that is parallel to and 100 ft. east of the west line of Entergy Texas Inc.'s 150 ft. power line right of way and the east line of Mobil Oil property to the north line of Cartwright and Roberts Subdivision B; THENCE West along a south line of Entergy Texas Inc., property and the north line of Cartwright and Roberts Subdivision B to the south bank of the south leg of"Old River"; THENCE in a northeasterly direction along a northwesterly line of Entergy Texas Inc., property and the south bank of the south leg of"Old River", to the left ascending bank of the "Cut Off Ship Channel" of the Neches River; THENCE in a southeasterly direction along the left ascending bank of the"Cut Off Ship Channel" of the Neches River to the point of beginning.