Loading...
HomeMy WebLinkAboutO-1993-1942 . .. ORDINANCE NO. 93- 194"'" AN ORDINANCE AUTHORIZING AND RATIFYING THE OFFER OF INDUSTRIAL DISTRICT AGREEMENTS IN THE BATTLEGROUND AND BAYPORT INDUSTRIAL DISTRICTS, FOR THE SEVEN YEAR TERM COKKENCING JANUARY 1, 1994; 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 of the City of La Porte hereby authorizes and ratifies the offer of industrial district agreements in form attached hereto, to companies within the City's Battleground Industrial District and Bayport Industrial District. 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, Article 6252-17, Texas Revised civil statutes Annotated; 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 25th day of October, 1993. By: ATTEST: ~~ Sue enes, e e CITY OF LA PORTE PHONE (713) 471-5020 0 P. O. Box 1 1 15 0 LA PoRTE. TEXAS 77572 '.r.' October 14, 1993 Air Products Manufacturing corporation P.o. Box 538 Allentown, PA 18105-0538 Attn: Roland Nicol, Manager Property Tax Gentlemen: The City of La Porte is pleased to offer your company an industrial district agreement for the seven year term commencing January 1, 1994. Copies of the agreement are attached to this letter. You will see that this agreement is very similar to your company's present agreement with the City, which expires December 31, 1993. This agreement includes valuable input from industry committee representatives, in long and fruitful negotiations. We at the City of La Porte feel that the continuation of industrial district agreements, which first commenced in the City of La Porte in 1958, is mutually beneficial to the City and the more than forty companies with which it has such agreements. Unfortunately there has been some slippage of time in supplying you with a final document for execution. We therefore request that your company mail or deliver to the City as soon as possible, and no later than Friday, October 29, 1993, the enclosed Letter of Intent to enter into an industrial district agreement with the City. Conversely, if your company does not desire to enter into the proposed agreement, we likewise request a letter from your company to that effect, by Friday, October 29, 1993. The City of La Porte then must complete annexation proceedings prior to December 31, 1993, to annex the property of any company which does not desire to enter into the enclosed proposed industrial district agreement. Further, the City must reserve the right to withdraw its offer to your company, if necessary to accommodate annexation procedures of other land in the industrial district, if one or more companies elect not to enter into the City's offered agreement. Yours very truly, CITY OF LA PORTE By: Robert T. Herrera, City Manager EXHIBIT A e e (LETTER OF INTENT) (TO BE TYPED ON COMPANY'S LETTERHEAD) October , 1993 Mr. Robert T. Herrera [Fax No. (713) 471-7168] City Manager City of La Porte P.O. Box 1115 La Porte, TX 77572-1115 Re: City of La Porte Proposed Industrial District Agreement, Dated October 12, 1993. Dear Mr. Herrera: (Name of Company) has received and reviewed the City of La Porte's proposed industrial district agreement dated October 12, 1993, for the term January 1, 1994, through December 31, 2000. By this Letter of Intent, our firm expresses its agreement to complete, execute and deliver to the City, the City's proposed form of industrial district agreement, with appropriate attachments as Exhibit "A" and Exhibit "B", at the earliest possible date. This letter of intent is given by our firm to the City of La Porte at this time, with the request that the City of La Porte not include our firm's land in any annexation proceedings. Our firm understands that the city of La Porte, in reliance upon this letter, will not include our firm's land in the proposed annexation proceedings. Yours very truly, (NAME OF COMPANY) By: Authorized Officer e e INSTRUCTIONS FOR EXECUTION OF INDUSTRIAL DISTRICT AGREEMENT Please follow these instructions for the completion of the form industrial district agreement submitted to your firm: 1. On page 1, fill in the proper corporate name of your firm, and its state of incorporation in the appropriate blanks. 2. On page 8, again fill in the proper corporate name of your company, and have signed by an authorized official of your company. Complete the official's title and address. 3. As Exhibit "A", attach a metes and bounds description of all of the land owned by your company in the district. In lieu of metes and bounds description, a description of the land may be attached with reference to acreage, date and parties to the deed, and recording references of the original deed in the Harris County, Texas, clerk's office. You may wish to refer to your company's expiring contract, and then note any additions or deletions to that legal description. 4. Attach as Exhibit "B", a plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines, railroads, and also showing areas of the land previously annexed by the City of La Porte. If such a plat is not immediately available, it will be satisfactory to the city for your firm to deliver the agreement without Exhibit "B" attached, with the understanding that it will be furnished to the City for attachment to the agreement, as soon as reasonably possible. 5. Please forward two signed copies to Mr. Robert T. Herrera, City Manager, City of La Porte, 604 West Fairmont Parkway, P.O. Box 1115, La Porte, Texas 77572-1115. 6. Upon receipt of executed industrial district agreements by the City, the agreements will be placed on a City Council agenda, for formal approval by City Council by passage of an approval ordinance. Thereafter, a certif ied copy of the approval ordinance, and a fully signed copy of the agreement, will be forwarded to your firm. THANK YOU e e NO. 93-IDA- { { STATE OF TEXAS { { COUNTY OF HARRIS { INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and , a corporation, hereinafter called "COMPANY", WIT N E SSE T H: WHEREAS, it .is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the city and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter "Land") ; and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a si te layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the City Council of said City and recorded in the official minutes of said City: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City referred to above, City and Company hereby agree with each other as follows: Revised: October 22, 1993 e e I. City covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, City does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of City, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by City, Company agrees to render and pay full City ad valorem taxes on such annexed Land and improvements, and tangible personal property. Under the terms of the Texas Property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended), the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the "in lieu" paYments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall be conducted by City, at City'S expense, by an independent appraiser of City'S selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessi ty appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal 2 e e property in the annexed portion, for ad valorem tax purposes. III. A. On or before April 15, 1994, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2000, Company shall provide City with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the Company's "Rendition"). Company may file such Rendition on a Harris County Appraisal District rendition form, or similar form. The properties which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III (sometimes collectively called the "Property"). A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to City a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 1994, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2000, Company shall pay to City an amount "in lieu of taxes" on Company's Property as of January 1st of the current calendar year ("Value Year"). D. Company agrees to render to City and pay an amount "in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. (a) Fifty percent (50%) of the amount of ad valorem taxes which would be payable to City if all of the Company's Land and improvements which existed on January 1, 1994, January 1, 1995, and January 1, 1996, had been within the corporate limits of City and appraised each year by City's independent appraiser; and (b) Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City if all of the Company's Land and improvements which existed on January 1, 1997, January 1, 1998, January 1, 1999, and January 1, 2000, had been within the corporate limits of City and appraised each year by 3 e e City's independent appraiser; and 2. (a) On any Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 1993, resulting from new construction (exclusive of construction in progress, which shall be exempt from taxation), for each Value Year following completion of construction in progress, an amount equal to Thirty percent (30%) of the amount of ad valorem taxes which would be payable to City if all of said new construction had been within the corporate limits of City and appraised by City's independent appraiser. . (b) A Substantial Increase in value of the Land and improvements as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements,. on January 1, 1993; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. . (c) If existing property values have depreciated below the value established on January 1, 1993, an amount equal to the amount of the depreciation will be removed from this calculation to restore the value to the January 1, 1993, value; and 3. (a) Fifty-percent (50%) of 'the amount of ad valorem taxes which would be payable to City on all of the Company's tangible personal property of every description, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 1994, January 1, 1995, and January 1, 1996, had been within the corporate limits of City and appraised each year by the City's independent appraiser; (b) Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to city on all of the Company's tangible personal property of every description, including, without limitation, inventory, oil, gas, and mineral interests, items 4 e e of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 1997, January 1, 1998, January 1, 1999, and January 1, 2000, had been within the corporate limits of City and appraised each year by the City's independent appraiser. wi th the sum of 1, 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. IV. This Agreement shall extend for a period beginning on the 1st day of January, 1994, and continuing thereafter until December 31, 2000, unless extended for an additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2000, the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, section 42.044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the state of Texas which imposes greater restrictions on the right of City to annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Company will waive the right to require City to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/ or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to 5 e e City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the City or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, 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 within thirty (30) days thereafter Company shall make payment to City of any additional payment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree wfth any appraisal made by the independent appraiser selected by City pursuant to Article II above (which shall be given in writing to Company), Company shall, within twenty (20) days of receiving such copy, give written notice to the City of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should Company give such notice of disagreement, Company shall also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company's property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" paYments which would be due hereunder on the basis of Company's valuations rendered and/ or submitted to City by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by City, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the u.s. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution 6 e . of the difference between the parties as to the fair market value of Company's property for calculation of the "in lieu" payment and total paYment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including expert opinion, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subj ect only to judicial review as may be available under the Texas General Arbitration Act (Articles 224-238, Vernon's Annotated Revised civil statutes of Texas). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on Company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by City in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon ci ty and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. If City enters into an Agreement with any other landowner with respect to an industrial district or enters into a renewal of any existing industrial district agreements after the effective date hereof and while this Agreement is in effect, which contains terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to amend this Agreement and City agrees to amend same to embrace the more favorable terms of such agreement or renewal agreement. This Paragraph shall not apply to any Court ordered extension of the term of the Agreement ordered in Southern Ionics, Inc. vs City of La Porte, civil Action H-89-3969, United states District Court, Southern District of Texas. 7 e e X. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. without such agreement neither party hereto would enter into this Agreement. In the event anyone or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, ciause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be ipdependent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate. ENTERED INTO effective the 1st day of January, 1994. (COMPANY) By: Name: Title: Address: ATTEST: CITY OF LA PORTE By: Norman L. Malone Mayor City Secretary APPROVED: By: Robert T. Herrera City Manager Knox W. Askins City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 Phone: (713) 471-1886 Fax: (713) 471-2047 8 . It "EXHIBIT A" TO INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE AND (Metes and Bounds Description of Land) 9 . e "EXHIBIT B" TO INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE AND (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte.) 10