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HomeMy WebLinkAboutRES 22-334 RESOLUTION NO. 22-334 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 Agreement with Martin Operating Partnership L.P., to enable the City to collect payments in lieu of taxes from industries located outside the city limits, but within the extra territorial jurisdiction of the City. 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. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 12th day of December, 2022. ,r ,x,,N400 , , _ 0,UMOA" ft7, a ram':u F O t tot ouoim JET rrxAS - Mayor Robin Mouton - 01 . po"i 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 Martin Operating Partnership L.P.,its parent,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: 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 properties, as determined by the Jefferson Central 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 deteinnining 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: • 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 2 Each October thereafter,the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson Central 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. 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 Central Appraisal District, payment shall be computed on the most recent certified values from the Jefferson Central 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 payment shall be 80% of assumed City taxes due, except that the amount may not be more than 10%more or less than the prior year payment. The 2026-2029 payment shall be 75% of assumed City taxes due, except that the amount may not be more than 7%more or less than the prior year payment. (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 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 3 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 Central Appraisal District,which are within the extra-territorial jurisdiction of the City of Beaumont. On or before May 1 of each year during the term of this Agreement, the Property Owner shall furnish to the City a written report listing the names and addresses of all persons and entities who store any tangible personal property on the land in the Affected Area with the Property Owner and are in the possession or under the management of Property Owner on January 1 of such year, and further giving a description of such tangible personal property. The Property Owner shall file all reports required by the chief appraiser of the Jefferson Central Appraisal District under Section 22.04 of the Texas Property Tax Code relating to (i) third parties' property that is in the Affected Area and in the Property Owner's possession or under the Property Owner's management by bailment, lease, consignment, or other arrangement, and (ii) storage space leased or otherwise provided to third parties for storage of personal property in the Affected Area. 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 4 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. 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 become effective if the annexation becomes effective after January 1st 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 5 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. 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 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 6 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 "parent" "affiliates" and to any properties owned or acquired by said parent and affiliates within the extraterritorial jurisdiction, 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 parent and or 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. The word"parent" as used herein shall mean all companies which directly or indirectly,through one or more intermediaries at the time in question owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII ASSIGNMENT Company may assign this Agreement to any entity succeeding to the ownership of its properties covered by this Agreement after providing written notice to the City. It is specifically agreed by the City that the covenants,promises, and guarantees of the City made to Company in this agreement extend to its respective successors and assigns and to all of the manufacturing facilities/lands included within the area described throughout the entire term of this Agreement notwithstanding the fact that the legal title to such lands or properties may pass, in whole or in part,to successors or assigns during the term of this agreement. ARTICLE VIII TERM OF AGREEMENT The term of this Agreement shall be for Seven(7)years,commencing January 1,2023,and ending on December 31,2029. ARTICLE IX 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 Martin Operating Partnership L.P. City of Beaumont Plant Manager 801 Main P.O.Box 191 P. O. Box 3827 Kilgore, Texas 75663 Beaumont,Texas 77704 With copy to: Chief Financial Officer City of Beaumont P.O.Box 3827 Beaumont,Texas 77704 8 ARTICLE X 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. 9 IN WITNESS THEREOF,this Agreement, consisting of 10 pages is executed in duplicate counterparts as of this day of ,2022. CITY OF BEAUMONT,TEXAS By: Kenneth R. Williams City Manager ATTEST: Tina Broussard City Clerk Martin Operating Partnership L.P. By: Martin Operating GP LLC, its general partner By: Martin Midstream Partners L.P., its sole member By: Martin Midstream GP LLC, its general partner By: Randy Tatrscher, Exec. Vice President ATTEST: • ao 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 Martin Operating Partnership L.P., its parent, 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: 1 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 properties, as determined by the Jefferson Central 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: 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 2 Each October thereafter, the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson Central 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. 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 Central Appraisal District, payment shall be computed on the most recent certified values from the Jefferson Central 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 payment shall be 80% of assumed City taxes due, except that the amount may not be more than 10%more or less than the prior year payment. The 2026-2029 payment shall be 75% of assumed City taxes due, except that the amount may not be more than 7%more or less than the prior year payment. (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 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 3 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 Central Appraisal District,which are within the extra-territorial jurisdiction of the City of Beaumont. On or before May 1 of each year during the term of this Agreement, the Property Owner shall furnish to the City a written report listing the names and addresses of all persons and entities who store any tangible personal property on the land in the Affected Area with the Property Owner and are in the possession or under the management of Property Owner on January 1 of such year, and further giving a description of such tangible personal property. The Property Owner shall file all reports required by the chief appraiser of the Jefferson Central Appraisal District under Section 22.04 of the Texas Property Tax Code relating to (i) third parties' property that is in the Affected Area and in the Property Owner's possession or under the Property Owner's management by bailment, lease, consignment, or other arrangement, and (ii) storage space leased or otherwise provided to third parties for storage of personal property in the Affected Area. 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 4 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. 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 become effective if the annexation becomes effective after January 1st 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 5 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. 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 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 6 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 AFFILIA I'bS The benefits accruing to Company under this Agreement shall also extend to Company's "parent" "affiliates" and to any properties owned or acquired by said parent and affiliates within the extraterritorial jurisdiction, 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 parent and or 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. The word"parent" as used herein shall mean all companies which directly or indirectly,through one or more intermediaries at the time in question owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII ASSIGNMENT Company may assign this Agreement to any entity succeeding to the ownership of its properties covered by this Agreement after providing written notice to the City. It is specifically agreed by the City that the covenants,promises, and guarantees of the City made to Company in this agreement extend to its respective successors and assigns and to all of the manufacturing facilities/lands included within the area described throughout the entire term of this Agreement notwithstanding the fact that the legal title to such lands or properties may pass, in whole or in part, to successors or assigns during the term of this agreement. ARTICLE VIII TERM OF AGREEMENT The term of this Agreement shall be for Seven(7)years,commencing January 1,2023,and ending on December 31, 2029. ARTICLE 1X 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 Martin Operating Partnership L.P. City of Beaumont Plant Manager 801 Main P.O.Box 191 P. O. Box 3827 Kilgore,Texas 75663 Beaumont, Texas 77704 With copy to: Chief Financial Officer City of Beaumont P.O. Box 3827 Beaumont,Texas 77704 8 ARTICLE X 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. 9 IN WITNESS THEREOF,this Agreement, consisting of 10 pages is executed in duplicate counterparts as of this day of CITY OF BEAUMONT, TEXAS By: Kenneth R. Williams City Manager ATTEST: Tina Broussard City Clerk Martin Operating Partnership L.P. By: ATTEST: io f IN WITNESS THEREOF,this Agreement,consisting of 10 pages is executed in duplicate counterparts as of this day ofbC , ,2022. ®.ga®aztolos®x CITY OF BEAUMONT,TEXAS ii .a ,,. 4 By: ey .,„" = Kenneth R. Williams 40 Ht'r iir::ii,3if;xa5r. �� City Manager A EST: "N 'r�l 1.1 .r 6LNPASOWi- Tina Broussard City Clerk Martin Operating Partnership L.P. i s By: Martin Operating GP LLC, its general partner V -- By: Martin Midstream Partners L.P., its sole member By: Martin Midstream GP LLC, its general partner By: 7--- 4?.M- �L— Randy Tut cher, Exec. Vice President ATTEST: 011::Factey:e„._ • • 10