HomeMy WebLinkAboutO-2001-2523
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ORDINANCE NO. 2001- ~5:K!>
AN ORDINANCE APPROVING AND AUTHORIZING AN AMENDMENT TO THE TAX
ABATEMENT AGREEMENT BETWEEN THE CITY OF LA PORTE AND PPG
INDUSTRIES, INC., MAKING VARIOUS FINDINGS AND PROVISIONS RELATING
TO THE SUBJECT, FINDING COMPLIANCE WITH 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
City 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.
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ORDINANCE NO. 2001-~~3
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PASSED AND APPROVED, this 22nd day of October, 2001.
ATTEST':
APPROVED:
Ow v)
Knox W. Askins
City Attorney
CITY OF LA PORTE
By: -~,~
Mayor
PJ\GE 2
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STATE OF TEXAS
1
COUNTY OF HARRIS
FIRST AMENDMENT
TO
TAX ABATEMENT AGREEMENT
PPG INDUSTRIES REINVESTMENT ZONE
This First Amendment to Tax Abatement Agreement (the "Amended
Agreement") is made and entered into by and between the City of La
Porte, Texas, a municipal corporation (the "City"), and PPG
Industries, Inc., a Pennsylvania corporation, with a permit to do
business in the State of Texas, (the "Owner"), the owner of the
real and personal property located within the Zone.
WIT N E SSE T H:
WHEREAS, the parties hark previou~~ered into a Tax
Abatement Agreement dated the day of ., 199JL; and
WHEREAS, the parties desire to amend the definition of
"Permanent Employee", as contained in said Agreement;
NOW, THEREFORE, the parties hereto, for and in consideration
of the premises and mutual promises stated herein, agree as
follows:
Paragraph 1, "Definitions", is hereby amended, by amending the
definition of a Permanent Employee, to read as follows, to-wit:
" "Permanent Employee" means a person who works for,
and is an employee of the Owner and works a minimum of
thirty-five (35) hours in a seven day period, and reports
to work in the Zone, excluding any contract employee,
seasonal employee, or part-time employee.
Contract employees will be considered as Permanent
Employees if the fo~lowing requirements are met:
1. The employee cannot be an individual contractor, but must
be employed by a business entity that performs work on a,
contract basis with the Owner/Operator of the facility;
2. the employee must be a full time employee (excluding
seasonal employees or part-time employees) of the
Contractor, must- work a minimum of thirty-five (35) hours
in a seven day period, report for work exclusively in the
Zone, and must be reflected in an Employers Quarterly TWC
Report filed by the Contractor; and
3. a notarized affidavit must be .provided by the Contractor,
(each year) attesting to its compliance with the above
requirements and stating the exact number of qualified
employees that they have provided to PPG."
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Except as amended hereby, the Tax Abatement Agreement between
the parties shall remain in full force and effect for the remainder
of its term.
The effective date of this Amendment is the date the Amendment
is authori~ed by Ordinance of the City Council of the City of La
Porte.
This Amended Agreement has been executed by the parties in
multiple originals, each having full force and effect.
PPG INDUSTRIES, INC.
By: ~~ /0)'/0'
Au orized Off ce
ATTEST:
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CITY OF LA PORTE
By:
G~ T. H-~
City Manager
ATTEST:
uf!V) A Jill Cu O. j<{A11JiJ
~~etary
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APPROVED:
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PPG Industries, Inc.
One PPG Place Pittsburgh, Pennsylvania 15272. USA Telephone: (412) 434-2330
Michael H. McGarry
General Manager
Fine Chemicals
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September 26, 2QO 1
1[0) IE ~ IE nil IE IInI
.lnl! OCT - 5 2001 1l1lJ
CllY MANAGER'S
OFFICE
Mr. Robert T. Herrera
City Manager
City Of LaPorte
Post Office Box 1115
LaPorte, Texas, 77572
Sl,lbject: "Tax Abatement Agreement, PPG Industries Reinvestment Zone"
Dear Mr. Herrera;
In accordance with your request during our telephone discussion of Tuesday, September 25,2001, we are pleased
to submit this letter requesting that the subject "Tax Abatement Agreement" be amended to eliminate certain existing
language and add th~ language set forth in the David Turkel (Harris County Economic Development Administrator)
letter to Hanson Gilan dated August 3,2001 (copy enclosed).
Specifically, we are z:equesting tlUlt the term "permanent employee" as defined on page two (2) of the agreement be
modified, eliminating the words "excluding any contract employee, seasonal employee, or part-time employee"
and replacing it ~ith the language suggested in the David Turkel letter.
'Contract employees will be considered as permanent employees if the following requirements are met
'1) The employee can not be an individual con~actor, but must be employed by a business entity that
performs work on a contract basis with the Owner/Operator of the facility. ;'
2) The employee must be a full time employee (excluding seasonal' employees or part-time employees) of
the Contractor, must work a minimum of thirty five (35) hours in a seven day period, report for work
exclusively in the Zone, and must be reflected in an Employers Quarterly TWC Report filed by the
Contractor. .' ,
3) A notarized affidavit must be provided by the Contractor, (each year) attesting to its compliance with
the above requirements and stating the exact number of qualified employees that they have provided to
PPG.'
Mr. Herrera, thank you for your consideration of our request.
Respectfully Submitted;
/Yl
Michael H. Mc Garry
General Manager
Fine Chemicals
Encl:
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City of La Porte
Established 1892
October IS, 2001
via federal ex~ress
Mr. Michael H. McGarry
General Manager/Fine Chemicals
PPG Industries, Inc.
One PPG Place
Pittsburgh, PA 15272
Re: Tax Abatement Agreement Between PPG Industries
and the City of 'La Porte
Dear Mr. McGarry:
As requested in your letter of September 26, 2001, I enclose
multiple copies for your execution, of a proposed Amendment to the
Tax Abatement Agreement between PPG Industries, Inc. and the City
of La Porte.
Please sign ~nd return all copies to me, by Federal Express. I
will place this matter on the City Council agenda of October 22,
2001.
When approved by City' Council, we will furnish a fully executed
copy for your records.
Thank you for your cooperation in this matter.
gb- ytJ! it
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9.
CITY OF LA PORTE
By: Q~J: T \-\~
Rob~rt T. Herrera
City Manager
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Enclosures
P.o. Box 1115 · La Porte, Texas 77572-1115 · (281) 471-5020
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: October 22.2001
Appropriation
Requested By: Robert T. Herrera
Source of Funds:
Department: Administration
Account Number:_
Report:
Resolution:
Ordinance: XX
Amount Budgeted: _
Exhibits:
Amount Requested:
Exhibits:
Budgeted Item:
YES
NO
Exhibits:
SUMMARY & RECOMMENDATION
Please be advised that I have asked our City Attorney to prepare an amendment to the Tax Abatement Agreement
the City entered with PPG Industries on October 1, 1998. '
The request comes to us from Michael H. McGarry, General Manager of Fine Chemicals for PPG. The amendment
will simply address the definition of permanent employees as defined on page two of the Agreement to language
recommended by Harris County Office of Economic Development. This language will mirror what HalTis County'
uses now in its definition of what constitutes a permanent employee iF certain requirements are met. '
The requested change will not alter the spirit of the Agreement entered on October I, 1998. The contract the City
approved on October 1, 1998 laid out the following elements: ,
o The project as proposed by PPG is for a pharmaceutical unit, to be built in three stages which, when
completed, is estimated to add $55 million in taxable value to the tax roll. The project will also add 57
permanent full time jobs.
o The City offered PPG tax abatement on their project, for a: seven-year period (from January 2000 to
December 2006) for the value of the additions to their property as long as the additions exceed $21 million
but no more than a maximum of $42,750.00. We limited the abatement amount to $750,000 per job
created.
In my opinion, PPG has been a good corporate neighbor. They have donated over 80% of the right-oF-way needed
for the extension of Bay Area Boulevard and have supported the City in other ways. I would hope you would
support their request for contract modifications.
Action Required bv Council:
Approve Ordinance No. 2001- authorizing the City Manager to execute a modification to the Tax
Abatement Agreement with PPG Industries.
Approved for City Council A~enda
~J~{' -(. \-\~~
Robert T. Herrera, City Manager
J" Ho"DI
Date