HomeMy WebLinkAboutRES 11-135 RESOLUTION NO. 11-135
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 Oiltanking Beaumont Partners, L.P. 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 19th day of
April, 2011.
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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 Oiltanking
Beaumont Partners, LP, subsidiaries and affiliates, hereinafter called "COMPANY."
PREAMBLE
WHEREAS, Company owns land and improvements which are a part of the terminaling
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:
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EXHIBIT "A"
ARTICLE I
COMPANY'S OBLIGATION
Annual Payment on Company's Property
1. Commencing with the calendar year 2012 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 and 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 2012 shall be due and payable on or before February 1, 2012,
and calculated as follows:
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Assumed City Taxes Due:
(1) Assessed Value of existing property, on the books at the time of disannexation,/ 100 X
Current City Tax Rate = Assumed City Tax Due
Year 1 100% of Assumed City Taxes Due = 2012 Payment on existing property
(2) Assessed Value of new improvements made after the effective date of the disannexation/ 100
X Current City Tax Rate =Assumed City Tax due
Year 1 75%of Assumed City Taxes Due=2012 Payment on new improvements
Total 2012 Payment= (1)+(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, 2011, the 2011 assessed values shall be used for the February 1, 2012 payment. This
assessed value shall be used in the calculation of the 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.
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(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 2012 - 2015 payments shall be 100% of assumed City taxes due on existing
property and 75%on any new improvements.
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_.-11e...pxgxrfies of Company (facilities, real, personal, and mixed) located on
Company's real property as shown on the records of the Jefferson County Appraisal District
which are within the extra-territorial jurisdiction of the City of Beaumont. See Exhibit A for the
legal description of property covered by this agreement. This agreement shall also govern and
affect any improvements or additions to the existing property.
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
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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 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 I 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
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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
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. The City will also provide police protection if called
upon by the Jefferson County Sheriffs Department for assistance.
ARTICLE IV
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
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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 V
TERM OF AGREEMENT
The term of this Agreement shall be for four(4) years, commencing January 1, 2012, and
ending on December 31, 2015.
ARTICLE VI
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
Kyle Hayes, City Manager Kim M. Ivy,Vice President and Terminal
Manager
City of Beaumont Oiltanking Beaumont Partners, LP
801 Main 6275 Hwy 347
Beaumont, Texas 77704 Beaumont, TX 77705
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ARTICLE VII
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.
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IN WITNESS THEREOF, this Agreement,consisting of 8 pages, is executed in duplicate
counterparts as of this day of , 2011.
CITY OF BEAUMONT, TEXAS
By:
Kyle Hayes
City Manager
ATTEST:
Tina Broussard
City Clerk
COMPANY
By:
ATTEST:
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Oiltanking Beaumont Partners, L.P.
i Industrial District
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BEING a 523.23 acre tract composed of the following tracts:
1. All of that certain called 461.42 acre tract of land identified as "TRACT A" as described
in a "Special Warranty Deed" from BP Pipelines (North America) Inc. to Oiltanking
Beaumont Partners, L.P. as recorded in Clerk's File No. 200101484, Official Public
Records of Real Property, Jefferson County, Texas, save and except that certain called
24.6091 acre tract of land as described in a "Special Warranty Deed" from Oiltanking
Beaumont Partners, L.P. to TX Energy, LLC as recorded in Clerk's File No. 2009022171,
Official Public Records, Jefferson County, Texas.
2. All of that certain called 24.6091 acre tract of land as described in a "Special Warranty
Deed" from TX Energy, LLC to Oiltanking Beaumont Partners, L.P. as recorded in
Clerk's File No. 2009022170, Official Public Records of Real Property, Jefferson County,
Texas.
3. The Easterly 1.36 acres of that certain called 2.108 net acre tract identified as "TRACT
D" as described in a "Special Warranty Deed" from Mamie McFaddin Ward Heritage
Foundation, et al. to Oiltanking Beaumont Partners, L.P. as recorded in Clerk's File No.
2005006972, Official Public Records of Real Property, Jefferson County, Texas. Said
1.36 acre tract being that portion of"TRACT D" lying East of the East right-of-way line
of the K.C.S. Railroad.
4. All of that certain called 6.4 acre tract of land identified as "TRACT' E"as described in a
"Special Warranty Deed" from Mamie McFaddin Ward Heritage Foundation, et al. to
Oiltanking Beaumont Partners, L.P. as recorded in Clerk's File No. 2005006972, Official
Public Records of Real Property, Jefferson County,Texas.
5. 54.05 Acres of the Neches River adjacent to the above referenced 24.6091 acre
Oiltanking Beaumont Partners, L.P. tract and the remainder of the above referenced
461.42 acre Oiltanking Beaumont Partners, L.P. tract.
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