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HomeMy WebLinkAboutO-1995-2034 . e ORDINANCE NO. 95-2034 AN ORDINANCE APPROVING AND AUTHORIZING A SETTLEMENT AGREEMENT, RECEIPT AND RELEASE, BETWEEN THE C:ITY OF LA PORTE AND SOUTHERN IONICS, INC.; MAKING VARIOUS FINDINGS AND PROV:ISIONS RELATING TO THE SUBJECT; FIND:ING COMPLIANCE W:ITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. The city Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the city Council was posted at a place convenient to the pUblic at the City Hall of the ci ty for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. e ORDINANCE NO. 95-2034 e PASSED AND APPROVED, this 22nd day of May, 1995. ATTEST: 'S''4' L~ Sue Lenes, City Secretary APPR~~D : obi~ Knox W. Ask1ns, City Attorney PAGE 2 CITY OF LA PORTE ~~~~- Mayor By: e . SETTLEMENT AGREEMENT. RECEIPT AND RELEASE THE STATE OF TEXAS COUNTY OF HARRIS WHEREAS, The City of La Porte, Texas eCity) and Southern Ionics, Inc. (SI) are parties to an Industrial District Agreement dated August 1, 1986 (IDA). WHEREAS, for valuable consideration the IDA provides that SI pay City taxes and in-lieu-of taxes. WHEREAS, the validity of the IDA has been the subject of litigation between SI and City since 1989, such litigation being settled in November, 1994. WHEREAS, SI has not paid the taxes and in-lieu-of taxes to City during the pendency of the litigation, and City has, since the settlement, made demand that SI pay City $71,078.19 for taxes and in-lieu-of taxes allegedly due for the period of January 1, 1989 through December 31, 1994. WHEREAS, there is disagreement, dispute and controversy with reference to the validity of City's claim and the amounb thereof against SI. WHEREAS, City and SI have concluded that it is not in any party's interest for these claims to continue. THEREFORE, the parties have agreed to settle such claims on the following terms and conditions: Subject to the satisfaction of two conditions precedent, SI agrees to pay City SEVENTY-ONE THOUSAND SEVENTY-EIGHT AND 19/100 DOLLARS e$71,078.19), representing payment in full of all taxes and in-lieu-of taxes, interest, penalties and costs that City has asserted or could assert for the period beginning January 1, 1989 e e and ending December 31, 1994. The two conditions precedent to SI' s payment are: 1) that the City council of the City of LaPorte, Texas repeal or otherwise modify Ordinance 842-A, by ordinance of equal dignity, so that Southern Ionics' 60.794 acre site on Bay Park Road will be included within the boundaries of the "Bayport Industrial District No. 1 of La Port~, Texas"; and 2) that the City Council of the City of La Porte, Texas, by resolution, authorize the City Manager to execute this Receipt and Release. Subject to satisfaction of the two conditions precedent, and in consideration of SIts payment of SEVENTY-ONE THOUSAND SEVENTY- EIGHT AND 19/100 DOLLARS ($71,078.19), the receipt and sufficiency of which is acknowledged and confessed, City releases, acquits and forever discharges SI, and on behalf of City's successors and assigns, does hereby release, acquit and forever discharge SI, its successor corporations, employees, representatives, attorneys, and assigns, ~rom any and all claims for all taxes and in-lieu-of taxes, int~rest, penalties and costs that City has asserted or could assert for the period beginning January 1, 1989 and ending December 31, 1994. As further consideration for SI's payment, City warrants that it has made no assignment of its claims, or any part of them, to any other person, firm, or corporation, and that there are no current or outstanding liens in connection with or arising out of the unpaid taxes and in-lieu-of taxes made the subject of its claim. As further consideration for SIts payment, it is agreed that City will indemnify and hold harmless SI against and from any and all claims, demands, causes of action and/or judgments asserted -2- ~ . e or caused to be asserted against SI which any person, firm, or corporation has or may have in connection with the matters made the subject of this release. Si~ned on rn ~ ~.3 (!>~ ~eseIQt1on~:9~-~Of~uly passed by the City Council of the City of '. 1995 in accordance with La Porte, Texas. City of La Porte, Texas By~~T ~ Robert T. Herrera, City Manager Signed on M.4~ /2 , 1995. Southern Ionics, Inc. BY~o?/~~~~eL, President Jr. -3-