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Home My WebLink AboutRES 23-003RESOLUTION NO. 23-003 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 Koch Fertilizer, 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 10th day of January, 2023. MayorRobin outon THE STATE OF TEXAS § COUNTY OF JEI:FERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the, Texas Local Governnient Code, The parties to the Agreement are The City of Beaumont, a municipal corporation and a home -rule city located in Jefferson County, Texas, lnereina#ler called "CITY," and Koch Fertilizer, LLQ hereinafter called "COMPANY." PRBAMBLE WHEREAS, Company owns inventory which is stored on the site of Martin Terminal Company located immediately adjacent to the City of Beaumont ( the "Site").. 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 benofits of this Agreement and an obligation to contribute to the rovcmic needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of storing inventory at the Silo.. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. hr view of the above find foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: I I_ . ARTICUE I COMPANY'S OBLIGATION Annual Payment on Company's Property I, Commencing with the calendar year 2023 and each calendar year thereafter for the duration of this Agreement, the Company will pay the City a certain stem which will be computed on the assessed value of the Company's inventory located on the Site. (Herein "the properties"), 2. By (lie 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" sball 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 Fach 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 inventory on the Site, 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 Central Appraisal District, payment shall be comptited 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 sehedule: The 2023-2025 payment shall be 80% of assumed City taxes clue The 2026 -2029 payment shall be 75% of assumed City taxes due, (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 fall, 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 eallection.shali berecoverable by the City as would be collectible in the case of delinquent 10 ad valorem taxes, Further, if payment is not timely trade, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptrrred and paid to the City within 60 days of any such event. ARTICLE ll PROPERTY COVERED BY AGREEMFN'F This instrument will reflect the intention of (lie parties hereto that this instrument shall govern and affect the inventories of Company located oil (lie Site as shown on the records of the Jefferson Central Appraisal District, which anwithin the Qx(ra-territorial jurisdiction of the City of Beaumont. ARTICLE Ili TERMINATION OF BREACH 1( is agreed by the partli;s to this Agreement that only Biel(, complete and faithful per£onnance of the ternxs hereof shall satisfy the rights and obligations assumed by (he parties and that, therefore, in addition to any action at law for daniag% which either party inay have, Company shall be entitled to enjoin the enactment or enforcernent of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall bs 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 slirrll be entitled, in addition to any action at late for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE, Iv TERM OF AGREEMENT The terin of this Agreement shall be for Seven (7) years, commencing January 1, 2023, and ending on December 31, 2029. ARTICLE V NO`1'ICI S Any notice provided for in this Agreement, or which may otherwise be required by law shall be given in writing to the patties hereto by Certified Mail addressed as follows: TO CITY City Manager City of Benurr►ont 80l ]Main Beaumont, Texas 77704 TO COMPANY Koch liertilizer, LLC Treasurer PO Box 2900 Wichita, KS 672012900 ARTICLE CONTINUATION If this Agreement shall be held invalid by flay 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, consistiiig of 6 pages is executed in duplicate Counterparts as of this day of CITY OF BEAUMONT, 'TEXAS By: ATTEST; Tina Broussard City Clerk KC ATTEST: K.enttetb R. Williams City Manager 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 Fertilizer, LLC, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns inventory which is stored on the site of Martin Terminal Company located immediately adjacent to the City of Beaumont ( the "Site").. 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 storing inventory at the Site.. 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 Agreement, 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. (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 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 inventory on the Site; 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 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 The 2026-2029 payment shall be 75% of assumed City taxes due, (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 R 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 as shown on the records of the Jefferson Central 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 specific performance of this Agreement and such other equitable relief necessary to enforce its rights. 4 ARTICLE IV 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 V NOTICES Any notice provided for in this Agreement, 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 Koch Fertilizer, LLC City of Beaumont Treasurer 801 Main PO Box 2900 Beaumont, Texas 77704 Wichita, KS 672012900 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. IN WITNESS THEREOF, this Agreement, consisting of 6 pages is executed in duplicate counterparts as of this � day of , a CIT OF BEAUMONT, TEXAS By: Kenneth R. Williams ATTEST: �n mwmd Tina Broussard City Clerk KC ATTEST: City Manager