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Home My WebLink AboutOrd. 2000-2456 - City & TIRZ #1 interlocal with Harris County . . ORDINANCE NO. 2000 - i 'f Sip AN ORDINANCE APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF LA PORTE, BARRIS COUNTY, AND REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; 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 Mayor 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. PASSED AND APPROVED, this 11th day of December, 2000. CITY O~PORTE By: c!!'-. > .. Norman L. Mal ne, . ATTEST: ~6v4 .1.iwJ Martha A. Gille~t City secretary Knox W. Askins City Atto~ney . 2 . . THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ INTERLOCAL AGREEMENT I. PARTIES A. Address THIS INTERLOCAL AGREEMENT ("Agreement") is made by and between the CITY OF LA PORTE, TEXAS ("City"), a municipal corporation and home-rule city of the State of Texas principally situated in Harris County, acting by and through its governing body, the City Council; HARRIS COUNTY, a body corporate and politic under the laws of the State of Texas, acting by and through its governing body, the Harris County Commissioners Court ("Harris County"), and REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS ("La Porte Zone"), a reinvestment zone created by the City of La Porte pursuant to Chapter 311 of the Texas Tax Code, acting by and through its Board of Directors. This Agreement is made pursuant to Chapter 791 of the Texas Government Code and Chapter 311 of the Texas Tax Code. The initial addresses of the parties, which any party may change by giving written notice of its changed address to the other parties, are as follows: City City Manager City of La Porte 604 West Fairmont Parkway P.O. Box 1115 La Porte, Texas 77572-1115 . La Porte Zone Harris County Harris County Harris County Administration Building 1001 Preston A venue, Ninth Floor Houston, Texas 77002 Attention: Director, Department of Management Services Reinvestment Zone Number One, City of La Porte, Texas c/o City Manager 604 West Fairmont Parkway P.O. Box 1115 . La Porte, Texas 77572-1115 Attention: John Joerns . . B. Index The City, Harris County and the La Porte Zone hereby agree to the terms and conditions of this Agreement. This Agreement consists of the following sections: Section Description Page I. Parties 1 II. Definitions 2 III. Background 3 IV. Obligations of Harris County 4 v. Obligations of City and La Porte Zone 6 VI. Tenn and Temlination 7 VII. Miscellaneous 8 C. Parts Incorporated All of the above described sections and documents are hereby incorporated into this Agreement by this reference for all purposes. II. DEFINITIONS As used in this Agreement, the following tenns shall have the meanings set out below: "Agreement" means this agreement between the City, Harris County and the La Porte Zone. "Agreement Teml" is defined in Section VI. "Captured Appraised Value" means the captured appraised value of the La Porte Zone, as defined by Chapter 311, Texas Tax Code. "City" is defined in Section I of this Agreement and includes its successors and assigns. "Harris County" is defined in Section I of this Agreement and includes Harris County and its successors and assigns. 2 . . "Harris County Tax Increment Participation" means the amount of the Harris County tax contribution to the La Porte Zone pursuant to Section IV of this Agreement. "La Porte Zone" means Reinvestment Zone Number One, City of La Porte, Texas, created by the City on May 24, 1999 by Ordinance No. 99-2325, and enlarged by Ordinance No. 99-2350, and includes its successors and assigns. "Project Plan" means the project plan and reinvestment zone financing plan for the La Porte Zone adopted by the board of directors of the La Porte Zone and approved by the City Council of the City on August 23, 1999 by City of La Porte Ordinance No.99-2352. "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the La Porte Zone. Otherwise, the tem1S used herein have the meanings ascribed to them in Chapter 311, Texas Tax Code. III. BACKGROUND On May 24, 1999, the City created the La Porte Zone by adoption of City of La Porte Ordinance No. 99-2325, for the purposes of development and redevelopment in the La Porte Area. On August 9,1999, the City approved the enlargement of the La Porte Zone by adoption of City of La Porte Ordinance No.99-2350. The Board of Directors of the La Porte Zone initially adopted a project plan and reinvestment zone financing plan, which was approved by the City on August 23, 1999 by City of La Porte Ordinance No.99-2352. The City has agreed to participate in the La Porte Zone by contributing tax increments produced in the La Porte Zone to the Tax Increment Fund. Harris County now desires to enter into a f0l111al agreement with the La Porte Zone in consideration for the agreements set forth below. .. ..) . . IV. OBLIGATIONS OF HARRIS COUNTY A. Tax Increment Participation by Harris County For and in consideration of the agreements of the parties set forth herein, and subject to the remaining subsections of this section, the parties agree that Harris County's participation in the La Porte Zone is a contribution, to the extent authorized by law, to the Tax Increment Fund during the tenn of this Agreement of seventy-five percent (75%) ofthe tax increment attributed to the Captured Appraised Value in the La Porte Zone attributable to Harris County for the period January 1, 2001 through December 31, 2029; and that the contributions of the Port of Houston Authority of Harris County, Texas, the Harris County Flood Control District, the Harris County Hospital District, the Harris County Department of Education, and any other taxing entity for whom Harris County imposes taxes, either now or in the future, shall be zero percent (0%) of the tax increment attributed to the Captured Appraised Value in the La Porte Zone attributable to the Port of Houston Authority of Harris County, Texas, the Harris County Flood Control District, the Harris County Hospital District, the Harris County Department of Education, and any other taxing entity for whom Harris County imposes taxes, either now or in the future. Harris County's participation and use of funds is limited to the projects described in Exhibit A to this Agreement. In addition, Harris County, at its option, may choose to manage the construction of any project to which it will contribute. All increments contributed by Harris County shall be restricted for use only on those projects and in the amounts set out in Exhibit A, attached hereto and made a part hereof. In the event of bond financing, Harris County's tax increments may be dedicated to bond repayment, however, in that event, a portion ofthe bond proceeds equal to the total of all of Harris County's proposed participation set out in Exhibit A, shall be restricted for use only on those projects and in the amounts set out in Exhibit A. 4 . . B. Tax Increment Limitation Harris County is not obligated to pay its Harris County Tax Increment Participation from any source other than taxes collected by Harris County on the Captured Appraised Value. Furthermore, Harris County has no duty or obligation to pay the Harris County Tax Increment Participation from any other Harris County taxes or revenues, or until the Harris County Tax Increment Participation in the La Porte Zone is actually collected. Any portion of the taxes representing the Harris County Tax Increment Participation that are paid to Harris County and subsequently refunded pursuant to the provisions of the Texas Tax Code shall be offset against future payments to the Tax Increment Fund. The obligation to pay the Harris County Tax Increment Participation accrues, as taxes representing the Harris County Tax Increment Pa11icipation are collected by Harris County, and payment shall be due as provided in section 3] 1.013(c) of the Texas Tax Code. No interest or penalty will be charged to Harris County for any late payment received from Harris County; provided however, that penalty and interest received by Harris County on any delinquent taxes from the Harris County Tax Increment Pm1icipation shall be paid to the Tax Increment Fund in the amounts required by section 31] .0] 3(c) of the Texas Tax Code. C. Expansion of La Porte Zone The obligation of Harris County to participate in the La Porte Zone is limited to the area described in City of La P011e Ordinance Nos. 99-2325 and 99-2350. Harris County's participation does not extend to the tax increment on any additional property added to the La Porte Zone by the City or any amendment to the Project Plan by the La Porte Zone and the City that would increase the total amount of project costs unless Harris County specifically agrees to participate in the additional area or amendment to the Project Plan. In addition, Harris County's participation does 5 . . not extend to any dedication of revenue from the Tax Increment Fund by the La Porte Zone for projects outside the La Porte Zone, unless Harris County agrees to participate in the dedication. D. Board of Directors Notwithstanding anything to the contrary in City of La Porte Ordinance No. 99-2325, which created the La Porte Zone, pursuant to the provisions of Section 3l1.009(a), Texas Tax Code, Harris County shall have the unequivocal right to appoint and thereafter at all times maintain one (1) member on the La Porte Zone Board of Directors. Harris County may also appoint and maintain as many non-voting ex officio members on the La Porte Zone Board of Directors as Harris County may desire. v. OBLIGATIONS OF CITY AND LA PORTE ZONE A. Project Plan Any member of the Harris County Commissioners Court may review and comment upon any amendment to the Project Plan before any amendments thereto are submitted to the City Council for City approval. The City agrees to provide Harris County with a copy of any proposed amendments at least] 4 days prior to their submission to the City Council for approval. B. Disposition of Tax Increments Upon termination of the La Porte Zone, and after all bonded indebtedness of the La Porte Zone has been paid, the City and the La Porte Zone shall pay to Harris County, within sixty (60) days of said tennination, all monies remaining in the Tax Increment Fund that are attributable to the Harris County Tax Increment Participation paid by Harris County into the Tax Increment Fund. C. Audits The City shall provide to Harris County a copy of each of the audits required by the Agreement by and between the City of La Porte, Texas, Reinvestment Zone Number One, City of 6 . . La Porte, Texas and the La Porte Redevelopment Authority approved by City of La Porte Ordinance .~DCO . No. do'" ~I) , as it may be amended from time to time, within thirty (30) days of receipt of each audit. In addition, the City shall provide to Harris County a copy of all reports, studies and analyses prepared by the City, the Redevelopment Authority or others that concern the expenditure of Tax Increment Funds of said Zone. VI. TERM AND TERMINATION A. Agreement Term This Agreement becomes effective as of the date of the final signature hereto. The term of this Agreement shall commence with the tax year beginning on January 1, 2001. This Agreement shall terminate on the earlier of December 31, 2029, or when Harris County contributions are no longer required to cover bond debt service, unless earlier temlinated by the parties hereto, or when the increments contributed by all participating taxing entities total $46,444,762, or when the increments contributed by Harris County total $10,054,000, whichever occurs first. In the event bonds are issued, Harris County's participation may increase by 11 % of the bond financing cost, not to exceed 55,429,000. It is the intent of the parties that Harris County's participation in the La Porte Zone, or any expansion thereof, is limited to the tenn stated herein. Nothing in this Agreement, however, limits the authority of the Harris County Commissioners Court to extend the term of this Agreement or increase the amount of the Harris County Tax Increment Participation in the La Porte Zone, as set forth in Section IV of this Agreement. Upon termination of this Agreement, the obligation of Harris County to contribute to the Tax Increment Fund for the La Porte Zone shall end. However, the obligations of the City and the La Porte Zone to refund any overpayment by Harris County shall survive such termination. 7 . . B. Early Termination The La Porte Zone may tenuinate pursuant to the provisions of Texas Tax Code Section 311.017. VII. MISCELLANEOUS A. Severability In the event any term, covenant or condition herein contained is held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained. In the event any tenn, covenant or condition shall be held invalid and affects in any manner the limitations on Harris County's, or any other party's contributions or participation, then neither Harris County nor any other party shall have any liability for any incremental or other payments as may otherwise be provided for in this Agreement. B. Entire Agreement This Agreement merges the prior negotiations and understandings ofthe parties hereto and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied) or other tenus with respect to the covenants, whether written or verbal, antecedent or contemporaneous, with the execution hereof. C. Written Amendment Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. 8 . . D. Notices All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed in Section I of this Agreement or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. E. Non-'''aiver Failure of any party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any other right or remedy occurring as a result of any future default or failure of perfomlance. F. Assignment No party shall assign this Agreement at law or otherwise without the prior written consent of the other parties. No party shall delegate any portion of its performance under this Agreement without the written consent of the other parties. G. Successors This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any officer, agent or employee of the City, the La Porte Zone or Harris County. 9 . . H. No Waiver of Immunity No party hereto waives or relinquishes any immunity or defense on behalf of itself. officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. IN WITNESS \\'HEREOF, the City, Harris County and the La Porte Zone have made and executed this Agreement in multiple copies, each of which is an original. ATTEST/SEAL: CITY OF LA PORTE '--11 ~fffifl limy artha A. Gillett City Secretary By ~ /1 flj4)2J Norn~n L.~one Mayor Date Signed: /~ //IIDu I / APPROVED AS TO FORM: ~td City Attorney APPROVED AS TO FORM: HARRIS COUNTY MICHAEL P. FLEMING County Attorney ~~ By 6- ICHOLAS J. L YKOS Assistant County Attorney By /7~ ~CKELS County Judge Date Signed: OCT 24 2000 10 . . REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS (La Porte Zone) By Alton Porter, Chairman, Board of Directors ~v~- Date Signed: i1- (1- q I CDCf> ATTEST/SEAL: ~~~~ . ~/, r-/ ' By: ..r~. Date Title: Peggy Antone, Secretary, Board of Directors I~ I; _ I' .0) , ,:ezl [The remainder of this page is intentionally left blank.] C:\DOCUMENTS AND SETTINCiSlSCOTTClLOCAL SETTINCiSITEMPORARY INTE~T2~LES\OLK8Il.APORTE INTERLOCAL DRAFT #2.DOC . . EXHIBIT A . . Project Description Projected Cost Powell Road 4 lane concrete roadway with curb and gutter and center median Length of roadway: 7,700 linear feet Lime stabilization: 41,100 sq. yds. Concrete paving: 10" thick; 41,100 sq. yds. Storm sewer: 3,850 linear feet Curb and gutter: 30,800 linear feet Powell Road South 2 lane concrete roadway with curb and gutter Length of roadway: 2,200 linear feet Lime stabilization: 8,800 sq. yds. Concrete paving: 10" thick; 8,800 sq. yds. Storm sewer: 1,100 linear feet Curb and gutter: 4,400 linear feet McCabe Road (east of'SHI46) 4 lane concrete roadway with curb and gutter Length of roadway: 4,300 linear feet Lime stabilization: 22,900 sq. yds. Concrete paving: 10" thick; 22,900 sq. yds. Storm sewer: 2,150 linear feet Curb and gutter: 8,600 linear feet McCabe Road (west of'SH146) 2 lane concrete roadway with curb and gutter Length of roadway: 1,200 linear feet Lime stabilization: 4,800 sq. yds. Concrete paving: 10" thick; 4,800 sq. yds. Storm sewer: 600 linear feet Curb and gutter: 2,400 linear feet San Jacinto Street from Main to Park 4 lane concrete roadway with curb and gutter Length of roadway: 4,700 linear feet Lime stabilization: 25,600 sq. yds. Concrete paving: 10" thick; 25,600 sq. yds. Storm sewer: 2,350 linear feet Curb and gutter: 9,400 linear feet Park Street from San Jacinto to Garfield 2 lane concrete roadway with curb and gutter Length of roadway: 3,400 linear feet Lime stabilization: 13,600 sq. yds. Concrete paving: 7" thick; 13,600 sq. yds Storm sewer: 1,700 linear feet Curb and gutter: 6,800 linear feet Bayshore Drive 2 lane concrete roadway with curb and gutter Length of roadway: 3,600 linear feet Lime stabilization: 13,600 sq. yds. Concrete paving: 7" thick; 13,600 sq. yds. Storm sewer: 1,700 linear feet Curb and gutter: 6,800 linear feet $ 3,000,000 $ 1,170,000 $ 2,200,000 $ 605,000 $ 2,400,000 $ 1,700,000 $ 1,700,000 County Participation $1,000,000 390,000 733,000 202,000 800,000 567,000 567,000 . . Sens Road (26th Street) from Spencer Hw)'. To Avenue D $1,010,000 5 lane concrete roadway with curb and gutter Length of roadway: 2,000 linear feet Lime stabilization: 13,350 sq. yds. Concrete paving: 10" thick; 13,350 sq. yds. Storm sewer: 1,000 linear feet Curb and gutter: 4,000 linear feet Broadway Street from McCabe Road to Main Street $1,960,250 4 lane concrete roadway with curb and gutter and center median Length of roadway: 8,000 linear feet Lime stabilization: 42,700 sq. yds. Concrete paving: 10" thick; 42, 700 sq. yds. Storm sewer: 4,000 linear feet Curb and gutter: 32,000 linear feet Note: the cost estimate for Broadway only reflects contributions from the TIRZ. Other agencies are anticipated to participate in this project. Fairmont Parkway Overpass $ 4,250,000 Construction ofa grade separation (overpass) of Fairmont Parkway over Union Pacific Railroad right-of-way. Project contributions from other agencies are anticipated. Sylvan Beach Shoreline Protection $ 1,750,000 Sylvan Beach Park has approximately 2,500 linear feet of shoreline. Much of this shoreline is either unprotected or has an aged and failing bulkhead. This project would provide new shoreline protection. Sylvan Beach Park Entrance Improvements $ 500,000 Improvements to roadway entrance to Sylvan Beach Park, landscaping, marquee and signage, etc. Sylvan Beach Park Facility Improvements $ 750,000 Various improvements to Sylvan Beach Park. Proposed projects include parking lot improvements, traffic circulation improvements, pedestrian walkways, marina, boat launch improvements, gazebos. etc. Buffer Walls $1,695,000 Buffer walls along SH146, Weems Boulevard and Me Cabe Road to isolate anticipated residential areas from these high traffic corridors. Sidewalks $ 975,000 Sidewalks for pedestrian movements are proposed along major roadways in residential and business/commercial areas. Drainage Projects $ 4,095,000 Extension of Harris County Flood Control District facilities and acquisition/construction of detention basin(s) necessary to provide efficient drainage and flood protection for increased storm water runoff due to development within the TlRZ. 337,000 653,000 1,417,000 583,000 167,000 250,000 565,000 325,000 1,365,000 Zone Administration (over 30 year life of Zone) $ 324,000 108,000 Zone Creation Costs $ 75.000 25.000 Total Without Bond Financing $ 30,159,250 10,054,000 Bond Financing Costs (Contingent upon issuance of Bonds) $ .16.285.512 5.429.000 Total With Bond Financing $ 46,444.762 15.483,000 . . THE STATE OF TEXAS 9 9 COUNTY OF HARRIS 9 The Commissioners Court of Harris County, convened at a meeting of said Court at the Hf.l~s County Administration Building in the City of Houston, Texas, on the_ day of ~OWOO, with the following members present, to-wit: Robert Eckels EI Franco Lee James Fonteno Steve Radack Jerry Eversole County Judge Commissioner, Precinct No. 1 Commissioner, Precinct No.2 Commissioner, Precinct No.3 Commissioner, Precinct No.4 and the following members absent, to-wit: -""" /9.., L- - quorum, when among other business, the following was transacted: , constituting a ORDER APPROVING TAX INCREMENT CONTRIBUTION TO REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS Commissioner 4.. ~ introduced an order and made a motion that the same be adopted. Commissioner ~~,,~ seconded the motion for adoption of the order. The motion, carrying with it the adoption of the order, prevailed by the following vote: AYES: NAYS: ABSTENTIONS: Vote of the court: AYES: 4 (Commissioners Lee, Fontena, Radack, and Eversole\ NOES: 0 ABSTENTIONS: 1 (Judge Eckels) The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: R Eel TAL s: On or about May 18, 1999, the City of La Porte, Texas, pursuant to TEX. TAX CODE ANN. 9 311.003(f), made a fonnal presentation to the Commissioners Court of Harris County concerning the proposed creation of a tax increment zone located in the City of La Porte, Texas; and On or about May 24, 1999, the City Council of the City of La Porte, Texas, pursuant to chapter 311 of the Texas Tax Code, adopted Ordinance No. 99-2325 designating a certain area as Reinvestment Zone Number One, City of La Porte, Texas and describing the boundaries of said Zone; and Presented to Commissioners' Court OCT 2 4 2000 APPROVE Recorded VOI_Page_ . . On or about August 9, 1999, the City Council of the City of La Porte, Texas, pursuant to chapter 311 of the Texas Tax Code, adopted Ordinance No. 99-2350 enlarging the boundaries of Reinvestment Zone Number One. City of La Porte, Texas; and On or about August 9, 1999, the City Council of the City of La Porte, Texas adopted Ordinance No. 99-2352 approving a project plan and reinvestment zone financing plan for Reinvestment Zone Number One, City of La Porte, Texas; and The Commissioners Court of Harris County, pursuant to TEX. TAX CODE ANN. ~ 311.013, makes the determination on behalf of Harris County only and not on behalf of any other political subdivision within Harris County, to pay to the Tax Increment Fund, to the extent authorized by law, seventy-five percent (75%) of the tax increment attributed to the taxes collected by Harris County on the Captured Appraised Value in Reinvestment Zone Number One, City of La Porte, Texas, for the tax years commencing on January 1,2001 and terminating on December 31,2029; and The Commissioners Court of Harris County desires to approve the County's entering into an interlocal agreement with the City of La Porte, Texas and Reinvestment Zone Number One, City of La Porte, Texas based on the aforesaid representations. NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS THAT: Section I: The recitals set f0l1h in this order are true and correct. Section 2: The Interlocal Agreement is approved and the County Judge of Harris County or his designee is authorized to execute the Interlocal Agreement with the City of La Porte, Texas and Reinvestment Zone Number One, City of La Porte, Texas for the thirty-year period commencing on January 1, 2001 and terminating on December 31, 2029. The Agreement is attached hereto and made a part hereof for all purposes. Section 3: The Clerk of Commissioners Court shall transmit a copy of this Order to the Harris County Appraisal District, the Assessor and Collector of Taxes for Harris County, the Mayor and City Council of the City of La Porte, Texas and the Board of Directors of Reinvestment Zone Number One, City of La Porte, Texas. 2