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HomeMy WebLinkAboutRES 22-175RESOLUTION NO_ 22-175 3=111110m 7=Yw]mkvI=1S7 "r01=111154"rrtK�1wL[411El 101 � r 01 =1111cy III rt40]m j=F&Vwj OVA DO 00 THAT the Interim City Manager be and he is hereby authorized to execute an Industrial District Agreement with OCI Clean Ammonia, LLC for economic development incentives during the construction phase of an industrial development_ The Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes_ The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSES BY THE CITY COUNCIL cf the City of Beaumont this the 19th day of July, 2022. �F1MOy��, �p - Mayor Robin Mouton - 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 OCI Clean Ammonia, LLC, subsidiaries, and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and 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: C:\Users\chrisbo\AppData\Local\Microsoft\Windows\lNetCache\Content.Outlook\AIOHGI7C\OCI Clean Ammonia LLC_ Pre-abatement.doc 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2023 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 2023 shall be due and payable on or before February 1, 2023, and calculated as follows: C:\Users\chrisbo\AppData\Local\Microsoft\Windows\INetCache\Contel-Outlook\AIOHGI7C\OCI Clean Ammonia LLC_ Pre-abatement.doc Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2023 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 properties, real, personal and mixed, having taxable situs within the areas described in this agreement; for example, in October 2022, the 2022 assessed values shall be used for the February 1, 2023 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 2023 - 2025 payments shall be 80% of assumed City taxes due. The 2026 - 2029 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. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt C:\Users\chrisbo\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\AIOHGI7C\OCI Clean Ammonia LLC_ Pre-abatement.doc 3 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. 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 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 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. C:\Users\chrisbo\AppData\Local\Microsoft\Windows\INetCache\Conter4.Outlook\AIOHGI7C\OCI Clean Ammonia LLC_ Pre-abatement.doc 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 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 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 C:\Users\chrisbo\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\AIOHGI7C\OCI Clean Ammonia LLC_ Pre-abatement.doc 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. The City will also provide police protection if called upon by the Jefferson County Sheriff's 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 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 specific performance of this Agreement and such other equitable relief necessary to enforce its rights. C:\Users\chrisbo\AppData\Local\Microsoft\Windows\INetCache\Conte,6.Outlook\AIOHGI7C\OCI Clean Ammonia LLC_ Pre-abatement.doe ARTTCT.F V TERM OF AGREEMENT The term of this Agreement shall commence upon execution and end on December 31, 2027, or at the start of the Company's abatement period for Phrase 1 of Company's project, and December 31, 2029, or at the start of Company's abatement period for Phrase 2 of Company's project. The Agreement for the projects referenced herein shall be attached hereto for reference to this Agreement. 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: TC) CTTV City Manager City of Beaumont 801 Main Beaumont, Texas 77704 TO COMPANY Beshoy Guirguis OCI Clean Ammonia LLC 2800 Post Oak, Suite 3150 Houston, Texas 77056 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. C:\Users\chrisbo\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\AIOHGI7C\OCI Clean Ammonia LLC_ Pre-abatement.doc 7 IN WITNESS THEREOF, this Agreement, consisting of 8 pages, is executed in duplicate counterparts as of this day of , 2022. CITY OF BEAUMONT, TEXAS am ATTEST: Tina Broussard City Clerk Chris Boone Interim City Manager COMPANY ME ATTEST: C:\Users\chrisbo\AppData\Local\Microsoft\Windows\INetCache\Conteig.Outlook\AIOHGI7C\OCI Clean Ammonia LLC_ Pre-abatement.doc THE STAI E 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 OCI Clean Ammonia, LLC, subsidiaries, and afftliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and 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 yevemic deeds 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, Ili view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City licreby agree as follows; C:lUserslregittst.linunonlT}csktoplUCi Clemi Ammonia LLC Pre-nbatemenl-2.doe ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2023 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 t1w 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 w Assumed City Tax Due 4, Payment Procedures The procedures for determining And making such payments shall be as follows: (a) The payment for 2023 shall be due and payable on or before February 1, 2023, and calculated as follows: C;lUscrslrcgina3fnr��tUnlDcsktop10C1 Ocnn Ammonia I.Lc Pre-ARIC12ut-2.doc Assumed City Taxes Due: Assessed Value / 100 X Current City Tax hate = Assumcd City Tax Due Year 1 90% of Assumed City Taxes Due = 2023 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 properties, real, personal and mixed, having taxable situs within the areas described in this agreement; for example, in October 2022, the 2022 assessed values shall be used for the February 1, 2023 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 oil 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 heremidev shall be calculated in accordance with the following schedule. 'File 2023 - 2025 payments shall be 80% of assumed City taxes due. The 2026 - 2029 payments shall be 75% of assumed City taxes, (c) City hereby agrees to bill Company for its payments due hereunder oil or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year, Upon receiving the final payment, the Chief Financial Officer shall issue aii official receipt C:%Uscrs\regina,linrmon%DcsktoploCi Clcnn Ammonia LLC— Prc-abittemcnt-7, A00 3 of said City acknowledging Rill, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year iii 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 ill the case of delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would ]nave been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within Ga days of any such event. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instruient shall govern and affect the properties of Company (facilities, real, personal, and mined) 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. ARTICLE Ill 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 contimiation of like payments to the City. C;\Userslregina,Ertn3ronlDcsktoplOCE Clean An11r1oniR LLC_ Px-abateVo-Moc ARTICLE IV CI f Y'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 Rill payment for the year during which such anwexation 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 litnits any land which is the subject natter 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 circunistances 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 nny land and property of Company within said City of Beaumont C:1[isers�rcgii3a,l�rtmrunl[]eskloplOCl Cion Ammasiia M.C.- Pro-nbalement-2.doc 5 Industrial District, any roles, regulations, or any other actions: (a) seeking ill ally way to control the platting acid subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in atay 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 famish 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 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 nights. C:IUs4rslrcgirra.Isnrmeuli)cskfo}�IOCtGlcan Amsno»in LLC ]'re-abMcr6ept-2,doo ARTICLE V TERM OF AGREEMENT The term of this Agreement shall commience upon execution and end on the earlier of completion of construction or December 31, 2027, for Phrase 1 of Company's project, and the earlier of completion of construction or December 31, 2029, for Phrase 2 of Company's project. The Agreement for the projects referenced herein shall be attached hereto for reference to this Agreement. ARTICLE VI NOTICES Any notice provided for in this Contract, or Which may other vise 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 Beshoy Guirguis City of Beaumont OCI Clean Ammonia LLC 801 Main 2800 Post Oak, Suite 3150 Beaumont, Texas 77704 Holston, Texas 77056 ARTICLB 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 provisions is intended to be an independent and separable provision not to be affected by such adjudication. G;IUserslregiuo,hnnuwdDcs4 toplOCf Ono A monla LLC_ Pro-abatcmcnl-2.doe 7 IN WITNESS THEREOF, this Agreement, consisting of 8 pages, is executed in duplicate counterparts as of this.. le day of w , 2022, t CITY OF BEAUMONT, TEXAS By: Chris Boone Interim City Manager ATTEST: -'- ca,�. Tina Broussard City Clerk COMPANY ;Tames Diaz Head of Finance ATTEST: c-� A-) VvcL C:lUseftlreginn,harmonlDeskiol)\OCI Clou Ammonia LLC_ Pre:-lbilei& of-ldoo JENNIFER L CERVAN ES Notary l011i 285bb381 My Commission Expires May 10, 2023