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THE STATE OF TEXAS
COUNTY OF HARRIS
A G R E E MEN T
THIS AGREEMENT made and entered into by and be-
tween the City of La Porte, Texas, a home rule municipal
corporation in Harris County, Texas, hereinafter called the
"City", acting by and through its officers and members of
its City Commission signatory hereto, and E. I. du Pont de
Nemours and Company, Celanese Corporation of America,
National Petro-Chemicals Corporation, Houston Lighting &
Power Company and Phillips Petroleum Company, each being
corporations with permits to do business in Texas, herein
called the "Industries" and/or "Industry",
WITNESSETH THAT:
WHEREAS, the City has passed at first reading
on October 17, 1958 that certain Ordinance No. 558, pur-
porting to annex to the existing City limits an additional
area which would include all or a part of the real proper-
ties and/or manufacturing plants of the Industries within
the City limits, as so extended, and
WHEREAS, the Industries have duly filed with
the City written protests and objectinns to the said
annexation proposed in said Ordinance No. 558, contending
that the City is without the power or authority in law to
annex all or any part of the prope~ties of each of the
Industries to the CitYj that said properties are not
suitable for municipal needs and purposesj that said prop-
erties have no need of municipal services and entitlements
from the City and the City is not in position to furnish
the same in the foreseeable future; that such properties
cannot be annexed to pay existing bonded indebtedness of
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the City; that such proposed annexation contravenes statu-
tory and constitutional rights of the Industries; all as
more particularly set out in said protests and objections,
and
WHEREAS, a controversy therefore exists as to
the legal right of the City to annex the properties of the
Industries and it is the desire of the parties to settle
such controversy, and
WHEREAS, the parties recognize that in the cir-
cumstances a partial annexation of some of the real proper-
ties of each of the Industries within the area, but not
the full annexation of their entirety, pursuant to the
terms hereinafter set out, is a reasonable, lawful and
equitable manner in which to settle such controversy;
NOW, THEREFORE, in consideration of the mutual
covenants and agreements herein contained, the sufficiency
of which is acknowledged, it is agreed by and between the
parties as follows:
I.
The Industries withdraw any protest or objec-
tion to the final enactment of Amended Ordinance No. 558,
as passed upon second and final reading by the City Com-
mission on the date hereof (a copy of which i,s attached
for all purposes), and waive any and all right to notice,
protest or any other procedural requirement as to such
final enactment of said Amended Ordinance that might
otherwise be required, and covenant that they will make
no attack upon the annexation therein provided, subject
to the other terms hereof.
II.
The City will maintain the areas annexed in
said Amended Ordinance No. 558, as areas within the
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limits of the City, for the duration of this Agreement,
will not disannex the same or any part thereof, or enter
into any agreement with any other municipality of what-
ever nature, which would result in a transfer of the
area so annexed to the jurisdiction of any other munici-
pality.
III.
During the term hereof, the City will not
annex or attempt to annex any properties of the Indus-
tries, or any of them, other than those included within
the descriptions set out in said Amended Ordinance No.
558.
IV.
During the term hereof each of the Industries
will pay ad valorem taxes to the City on that portion of
its land included within the limits of the City under
said Amended Ordinance No. 558, the amount of such taxes
to be determined by the use of the following formula:
1. The assessed ad valorem tax value
fixed annually by Harris County on the entire
property of each of the Industries which lies
within the area described in Ordinance No. 558
prior to its amendment, (sometimes referred to
herein as the "area"), shall be assessed by the
City as the ad valorem tax value for that year
of that portion of the property of such Industry
which lies within the limits of the City under
the provisions of amended Ordinance No. 558,
(sometimes referred to herein as the 11annexed
property"). The then current tax rate of the
City shall be applied to the valuations so ob-
tained and each Industry will pay to the City
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the amount of taxes thus resulting on its annexed
property for that year; provided, however, that if the
total amount of taxes to be paid the City by all of the
Industries collectively as determined by the use of
said formula shall exceed the sum of One Hundred Twenty-
five Thousand Dollars ($125,000) in any year, then for
that year the valuation of the annexed property of each
of the Industries shall be in an amount which will yield
to the City at the then current City tax rate that In-
dustry's proportionate part of the sum of $125,000 in
the ratio that the Harris County ad valorem tax valua-
tion of the property of such Industry in the area for
that year bears to the total Harris County ad valorem
tax valuation of the properties of all of said Indus-
tries within the area.
2. The annual tax payment of each Industry to '
the City hereunder shall be in two installments, the
first of which shall be made by such Industry on or
before January 15 in each year in an amount not less
than one-half of the taxes which would be paid by that
Industry to the City calculated on its Harris County
ad valorem tax valuation of its property in the area
for the preceding year. The second installment shall
be paid by each Industry on or before September 1 in
each year unless Harris County has not then made final
its assessment on the properties of:auch Industry in
the area for that year, in which event the second in-
stallment shall be paid within thirty days after such
assessment has been made final. Such second install-
ment to be paid by each Industry shall be in an amount
equal to the balance of taxes remaining due by it to
the City for' that year when calculated on the basis of
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its final Harris County ad valorem tax valuation of
its properties in the area for such year, taking into
account the then current tax rate of the City and the
final ad valorem tax valuation placed by Harris County
for that same year on the properties of each of the
other Industries lying within the area when related
proportionately to the limitation of $125,000 per year
in total taxes to be paid the City by the Industries
collectively a~ hereinabove provided. In the event
the valuation of said property of any Industry has not
been made final by Harris County prior to September 1
in any year and any payment thereafter by such Industry
based on its final valuation for that year would be in
an amount which would cause the total taxes paid by all
of the Industries collectively to the City for that
year to exceed $125,000, then such Industry shall pay
to the other Industries proportionately on the basis
hereinabove provided an amount equal to that by which
its tax payment for that year would exceed said total
$125,000 (and reduced, if necessary) in order to effect
a readjustment among all of the Industries of the pro-
portionate tax payment of each to the City for that
year in accordance with the formula above provided.
3. In the event any Industry should elect to
protest its Harris County tax valuation on its proper-
ties within the area, as fixed by the Commissioners
Court of Harris County for any year during the term
hereof, then nothing in this Agreement shall preclude
its protest of such valuation and its taking all legal
steps desired by it to defend against the same insofar
as Harris County is concerned. However, on or before
September 1 in that year or within ten days after the
action of the Commissioners Court of Harris County
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fixing such protested assessment, whichever is the
later date, such protesting Industry shall pay to the
City its second installment of taxes due for that
year based on its Harris County ad valorem tax valua-
tion of its properties within the area for the year
preceding. At such time as the Harris County ad
valorem tax valuation on the property of that Industry
which lies within the area has become final either as
the result of final judgment of a court of competent
jurisdiction or as the result of other final conclusion
of the controversy, then that Industry which has so
protested shall make payment to the City of any addi-
tional tax due it based on such final valuation unless
such additional payment shall cause the total taxes
paid by all of the Industries collectively to the City
for that year to exceed $125,000, in which event such
protesting Industry shall pay to the other Industries
proportionately on the basis hereinabove provided an
amount equal to that by which its tax payment for that
year would exceed said total $125,000 (and reduced, if
necessary), in order to effect a readjustment among all
of the Industries of the proportionate tax payment of
each to the City for that year in accordance with the
formula above provided.
4. Nothing herein contained shall be con-
strued as a joint undertaking of liability on behalf
of the Industries to the City, so as to create, or pur-
port to create any guarantee by any of the corporate
Industries of the obligations of another; the under-
taking of each of the Industries being direct to the
City in the same manner as any other obligation to
pay ad valorem taxes, and the remedies of the City
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for the enforcement of this Agreement are cumulative
of those otherwise resting in the City for the en~
forcement or collection of ad valorem taxes.
5. The payments to be made by each of the
Industries hereunder to the City are tax payments
and not payments in lieu of taxes.
v.
In the event the City should for any reason
dissolve or become dis-established in any manner during
the term hereof, the unaccrued obligations of the Indus-
trie's; hereunder shall immediately cease.
VI.
The term of this Agreement shall be from Janu-
ary 1, 1959 to and including December 31, 1963; provided,
however, that in the event this Agreement is not renewed
and/or extended in the same or an amended form on or be-
fore November 1, 1963, the agreement of the City not to
annex additional portions of the properties of the Indus-
tries shall terminate. No provision hereof shall prejudice
the rights of any of the parties hereto after termination
of this Agreement.
VII.
The terms and provisions hereof shall be bind-
ing upon, and inure to the benefit of, the successors and
assigns of the parties hereto. Provided, however, that
upon the sale, conveyance or lease, during the term hereof,
to any person or corporation not a party hereto, by any of
the Industries, of any of its land within the area, upon
which no substantial improvements exist on the date hereof,
the land so disposed of, and any substantial improvements
thereafter placed thereon, shall thereupon not be further
subject to the operation of this Agreement for all purposes,
except that the annexation of said Amended Ordinance NO.558
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shall remain intact. Furthermore, any substantial improve-
ments constructed on land within the area by Phillips Petro-
leum Company during the term hereof are excluded herefrom
for all purposes.
VIII.
This Agreement may be executed and delivered
in any number of counterparts or copies, any and all of
which shall constitute and be considered as one and the
same instrument. Each person, entity or corporation which
executes this instrument or any counterpart or copy there-
of shall be bound by all of its terms and provisions as
herein set forth from and after the time the.. same or a
counterpart or copy thereof is also executed by all other
parties hereto.
IN WITNESS WHEREOF, this Agreement is executed
as of December ~ 1958.
,....
~
E. I. du PONT de NEMOURS AND COMPANY
!'"
By i-.;i1lt
ATTEST:
Vice-President
Assistant
CELANESE CORPORATION OF AMERICA
By
President
ATTEST:
Secretary.
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j)LL3
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e:.
NATIONAL PETRO-CHEMICALS CORPORATION
By
President.
ATTEST:
Secretary.
HOUSTON LIGHTING & POWER COMPANY
By
ATTEST:
President.
Secretary.
PHILLIPS PETROLEUM COMPANY
By
President.
ATTEST:
Secretary.
CITY OF LA PORTE
Mayor
~ 1;..,:,'
..-' '
~ . i. ATTEST:' ~
~ ~_\' '~,~c:/ ~~ ~
,; " ~ 01 ty Sacra ary.
=-- /~}) ~
}/ City Commissioner.
City Commissioner.
City Commissioner.
City Commissioner.
City Commissioner.
APPROVED AS TO FORM:
City Attorney.
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