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HomeMy WebLinkAboutRES 10-025 RESOLUTION NO. 10-025 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute Industrial District Contracts with Koch Nitrogen Company, LLC, and Koch Nitrogen International Sarl effective January 1, 2010. The agreements are substantially in the form attached hereto as Exhibits "A" and "B" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 2nd day of February, 2010. o1 - Mayor Becky Ames XiN +w� DRAFT 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 Koch Nitrogen Company, LLC, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns inventory which is stored on the site of Martin Terminal 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 S AGFNDAAGEN DA I I FM MEMOS'Draft Koch Nitrogen Companv 2010-Feb'_Mtg Joc EXHIBIT "A" DRAFT ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2010 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 inventory located on the site owned by the Martin Terminal 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 2010 shall be due and payable on or before March 1, 2010, and calculated as follows: 2 DRAFT Assumed City Taxes Due: Assessed Value / 100 X Current City "Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City `Taxes Due = 2010 Payment 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 inventory, having taxable situs within the areas described in this agreement: for example, in October, 2009, the 2009 assessed values shall be used for the March 1, 2010 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 payments due hereunder shall be calculated in accordance with the following schedule: The 2011 payment shall be 80% of assumed City taxes due. The 2012 - 2015 payments shall be 75% of assumed City taxes. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year, beginning in 2011. 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 3 S AGI ND4 AGENDA I IFN1 MGMOS WA Koch Nitrogen C—p-,2010-Feb 2 Mlg do, DRAFT 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. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the inventories of Company located on the site of Martin Terminal as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III 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 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 4 DRAFT specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE IV TERM OF AGREEMENT The term of this Agreement shall be for six (6) years, commencing January 1, 2010, and ending on December 31, 2015. ARTICLE V 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 City of Beaumont Koch Nitrogen Company, LLC 801 Main PO Box 2900 Beaumont, Texas 77704 Wichita, KS 67201-2900 ARTICLE VI 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. 5 S'.AGENDA AGENDA FI FM MEMOS\Diafi Koch Nitrogen Company 2010-Feb 2 M(g doc DRAFT IN WITNESS TIIFREOF, this Agreement, consisting of 6 pages, is executed in duplicate counterparts as of this _ _ day of 2010. CITY OF BEAUMONT, TEXAS By: — Kyle Hayes City Manager ATTEST: Tina Broussard City Clerk KOCH NITROGEN COMPANY, LLC By: ATTEST: 6 DRAFT THE STATE OFT EXAS § 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 Koch Nitrogen International Sarl, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns inventory which is stored on the site of Martin Terminal. 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 S',AGENDA AGENDA ITEM MEMOSVDraFl Koch Nitrogen International 2010-Feb?Mtg doc EXHIBIT "B" DRAFT ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2010 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 inventory located on the site owned by the Martin Terminal 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 2010 shall be due and payable on or before March 1, 2010, and calculated as follows: S'AGFND A A(AINDA ITNM MEMOS.Drafl K-h Nitrogen Internaoon a1?010-1 eh_Mig d� DRAFT Assumed City Taxes Due: Assessed Value / 100 X Current City 'Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2010 Payment 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 inventory, having taxable situs within the areas described in this agreement; for example, in October, 2009, the 2009 assessed values shall be used for the March 1, 2010 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 payments due hereunder shall be calculated in accordance with the following schedule: The 2011 payment shall be 80% of assumed City taxes due. The 2012 - 2015 payments shall be 75% of assumed City taxes. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year, beginning in 2011. 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 3 S..AGENDA'AGEND A ITEM MEMOS:Draft Koch Nitrogen Internationa12010-Feb 2 Mtg doc DRAFT 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. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the inventories of Company located on the site of Martin Terminal as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III 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 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 S AGI-7NDA.AGFND;A ITEM MEMOS'Drah Ruch Nitrogen International 2010-Feb 2 Mtg d( DRAFT specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE IV TERM OF AGREEMENT The term of this Agreement shall be for six (6) years, commencing January 1, 2010, and ending on December 31, 2015. ARTICLE V 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 City of Beaumont Koch Nitrogen International Sarl 801 Main PO Box 2900 Beaumont, "Texas 77704 Wichita, KS 67201-2900 ARTICLE VI 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. 5 S AGE.ND A,AGE.ND.4 ITEM MEMOS',Draft Koch Nitrogen I nternationa l'_010-Eeb 2 Mtg doc DRAFT IN WITNESS THEREOF, this Agreement, consisting of 8 pages, is executed in duplicate counterparts as of this day of _, 2010. CITY OF BEAUMONT, TEXAS By: ---- ---- -- Kyle Hayes City Manager ATTEST: Tina Broussard City Clerk KOCI I NITROGEN INTERNATIONAL SARI, By: ATTEST: S AGE NDA'.AGE:N D;1 I I EM MEA1OS`Drafl Koch Nitrogen Internation a l'_010-I eb 2 Mig fi 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 Koch Nitrogen Company, LLC, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns inventory which is stored on the site of Martin Terminal 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 G:Undu teal Conhacts\20091Koch Nitrogen Company 2010-Final.doc ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2010 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 inventory located on the site owned by the Martin Terminal 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 2010 shall be due and payable on or before March 1, 2010, and calculated as follows: 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 = 2010 Payment 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 inventory, having taxable situs within the areas described in this agreement; for example, in October, 2009, the 2009 assessed values shall be used for the March 1, 2010 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 payments due hereunder shall be calculated in accordance with the following schedule: The 2011 payment shall be 80% of assumed City taxes due. The 2012 - 2015 payments shall be 75% of assumed City taxes. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year, beginning in 2011. 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 3 GAIndusmW Conhacts\20091Koch Nitrogen Company 2010-Fi W.doc 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. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the inventories of Company located on the site of Martin Terminal as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III 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 parry 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 4 specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE IV TERM OF AGREEMENT The term of this Agreement shall be for six (6) years, commencing January 1, 2010, and ending on December 31, 2015. ARTICLE V 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 City of Beaumont Koch Nitrogen Company, LLC 801 Main PO Box 2900 Beaumont, Texas 77704 Wichita, KS 67201-2900 ARTICLE VI 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. 5 G:Undustrial Contracts12009\Koch Nitrogen Company 2010-Fimd.doc IN WITNESS THEREOF, this Agreement, consisting of 6 pages, is executed in duplicate counterparts as of this day of Fe k-ve.r , 2010. CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: is MC�ilyg1 (its" 4" �i N COMPANY, LLC By. �GP ate ry£.t . µo,Cw a A ST:Ass.—. rr2e.45, LESLIE I. ;jTYlITIi Notary Public-S 'e of Kj!nsas RPAyAppi. Ex Tres Qf�O�-ZcJ// 6