HomeMy WebLinkAboutO-1991-1790
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ORDINANCE NO. 1790
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AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN
INDUSTRIAL DISTRICT AGREEMENT WITH BAYSHORE INDUSTRIAL, INC., WITHIN
THE SOUTH LA PORTE INDUSTRIAL DISTRICT FOR THE TERM COMMENCING
JANUARY 1, 1992, AND ENDING DECEMBER 31, 1998.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby finds, determines and
declares that BAYSHORE INDUSTRIAL, INC. has executed an industrial
district agreement with the City of La Porte, for the term
commencing January 1, 1992, and ending December 31, 1998, a copy of
proposed industrial district agreement being attached hereto,
incorporated by reference herein, and made a part hereof for all
purposes.
Section 2.
The Mayor, the City Manager, and the City
Secretary of the City of La Porte, Texas, be, and they are hereby,
authorized and empowered to execute and deliver on behalf of the
City of La Porte, Texas, the industrial district agreement with the
corporation named in Section 1 hereof, a copy of which is attached
hereto.
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, 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 14th day of October, 1991.
ATTE.ST: /I. .
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:~ ~~1 .,. :1'.' J ~
:J&, ~L(' , L-t.,t c..k--
Cherie BlaCk, City Secretary
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Knox W. Askins, City Attorney
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NOTICE. THIS CONTRACT IS SUBJECT TO ARBITRATION
UNDER THE TEXAS GENERAL ARBITRATION ACT, ARTICLE
224, ET. SEO., REVISED CIVIL STATUTES OP TEXAS
STATE OF TEXAS S
S
COUNTY OF HARRIS S
S
CITY OF LA PORTE S
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 BAY SHORE INDUSTRIAL, INC., a
corporation, hereinafter called "COMPANY",
WIT N E SSE T H: That
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, Company is the owner of a certain tract(s) of land
more particularly described in the Deed Records of Harris County,
Texas, in the following Volume and Page references, to-wit:
TRACT 1, 2, and 3, as described on Exhibit "A" attached hereto.
This agreement shall be subject to the additional restrictions
contained in Exhibit "B" attached hereto.
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upon which tract(s) Company has either constructed an industrial
plant(s) or contemplates the construction of an industrial plant(s);
and
WHEREAS, pursuant to its policy, City has enacted Ordinance
No. ____, designating a portion of the area located in its
extraterritorial jurisdiction as the "South La Porte Industrial
District," hereinafter called "District," such Ordinance being in
compliance with Section 42.044 of the Texas Local Government Code;
and
WHEREAS, City desires to encourage the expansion and growth of
industrial plants within said District 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:
I.
A. City covenants, agrees and guarantees that during the term
of this Agreement, provided below, and subject to the terms and
provisions of this ~greement, said District shall continue and
retain its extraterritorial status as an industrial district, at
least to the extent that the same covers the land described above
and belonging to Company and its assigns, and 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, or to be disannexed from the corporate limits of City,
shall be immune from annexation by City during the term hereof
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(except as hereinafter provided) and shall have no right to have
extended to it any services by City, and that said land 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
proceeding authorized by the Texas Water Code, the Texas Clean Air
Act, or the Texas Health & Safety Code to the same extent and to the
same intent and effect as if all land covered by this Agreement were
located within the corporate limits of City and not subject to the
Agreement.
B. Company agrees that it will not, during the term of this
Agreement, use or seek legislative or regulatory approval to use,
nor allow any other person to use or seek legislative or regulatory
approval to use, any portion of the tract(s) of land described above
as any part of a commercial hazardous waste management facility, as
defined in Chapter 296, Acts of the 72nd Texas Legislature (1991).
Company further agrees that it will, within thirty days after
execution of this Agreement, place a deed restriction on the
tract(s) of land described above prohibiting the use of any portion
of such tract(s) as any part of a commercial hazardous waste
management facility. Company hereby agrees that in any suit by City
for breach of any provision of this paragraph, City may seek and,
should it prevail it shall be entitled to, specific performance of
this provision of this paragraph.
II.
Company agrees to render to City and pay full City ad valorem
taxes in the form of "in lieu of taxes" payments, on its land and
improvements, and tangible personal property, as fully as if s~id
land, improvements, and tangible personal property were annexed to
City.
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III.
This Agreement shall extend for a period beginning on the 1st
day of January, 1992, and continue thereafter until December 31,
1998, unless extended for an additional period or periods of time
upon mutual consent of Company and City as provided by Section
42.044, Texas Local Government Code; provided, however, that in the
event this Agreement is not so extended for an additional period or
periods of time on or before June 30, 1998, 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, and in such event Company agrees that
if the Texas Municipal Act, as amended after January 1, 1980, 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 the 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, 1980.
IV.
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.
In this connection, City hereby expresses its belief that industrial
district agreements of the kind made herein are conducive to the
development of existing and future industry and are to the best
interest of all citizens of City and encourage future City Councils
to enter into future industrial district agreements and to extend
for additional periods permitted by law this Industrial District
Agreement upon request of Company or its assigns; provided, however,
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that nothing herein contained shall be deemed to obligate either
party hereto to agree to an extension of this Agreement.
V.
Company agrees to pay all "in lieu of taxes" payments
hereunder, to City on or before December 31 of each year during the
term hereof. It is agreed that presently the ratio of ad valorem
tax assessment used by City is one hundred percent (100%) of the
fair market value of property. Any change in such ratio used by
City shall be reflected in any subsequent computations hereunder.
This Agreement shall be subject to all provisions of law relating to
determination of value of land, improvements, and tangible personal
property, for tax purposes (e.g., rendition, assessments, Harris
County Appraisal District review and appeal proc~dures, court
appeals, etc.) for purposes of fixing and determining the amount of
ad valorem tax payments, and the amount of "in lieu of tax" payments
hereunder, except as otherwise provided in Article VI hereof.
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 City on or before the date therefor hereinabove provided, the
total amount of the "in lieu of taxes" on the unannexed portions of
Company's hereinabove described property which would be due by
Company to City in accordance with the foregoing provisions of this
Agreement on the basis of renditions which shall be filed by Company
on or before March 31 of each year during the term of this
Agreement, with both the City and the Harris County Appraisal
District for that year.
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
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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 with any appraisal made by the
independent appraiser selected by City (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
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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, in
accordance with the rules and regulations of the American
Arbitration Association. The sole issue to be determined in
the arbitration shall be resolution 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, subject 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 City and Company, and upon Company's successors and assigns,
affiliates and subsidiaries, and, with the prior written consent of
City, which consent shall not be unreasonably withheld, shall remain
in force in the event 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.
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IX.
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, clause, sentence, paragraph, section, article or other part
of the Agreement shall be deemed to be independent of and separable
from the remainder of this Agreement and the validity of the
remaining parts of this Agreement shall not be affected thereby.
X.
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 this JL1ay of OC70l3,F.{., 1991, effective
January 1, 1992.
ATTEST: I'
l1d'l tel Vl~'
~tary ~
1300 McCabe Road
P.O. Box 785
La Porte, Texas 77572-0785
APPROVED BY COUNSEL:
DRIn>;L & LA~Y. 1/1
By: ~;/1~
Arlen M. Driscoll
Attorney for Company
1100 Louisiana Street
Suite 5000
Houston, TX 77002
Telephone: (713) 951-9000
ATTEST: / '
_ (!!/'f:,t~~~ .)J I/.I.{:~',..
Cherie Black, City Secretary
By:Q~ T,~
Robert T. Herrera
City Manager
CITY OF LA PORTE
P.O. Box 1115
La Porte, TX 77572-1115
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ADZ;;OUNSE~
KNOX W. ASKINS
City Attorney
702 W. Fairffiont Parkway
P.O. Box 1218
La Porte, TX 77572-12l8
Telephone: (713) 471-1886
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EXHIBIT "A"
INDUSTRIAL DISTRICT AGREEMENT
WITH BAY SHORE INDUSTRIAL, INC.
All that certain tract or parcel of land, consisting of 32.9112 acres in the W.P.
Harris Survey, A-30, Harris County, Texas:
BEGINNING AT THE intersect i on of the south ri ght-of-way 1 i ne of McCabe Road
and the west right-of-way line of State Highway 146;
THENCE in a southerly direction coincident with the west right-of-way line
State Highway 146 to its intersection with the north boundary of the
former Bayshore Municipal District Sewage Disposal Plant a 4.069 acre
tract;
TltENCE northerly and westerly coincident with the eastern and northern
boundaries of the former Bayshore Municipal District Sewage Disposal
Plant a 4.069 acre tract to its intersection with the east right-
of-way of the G.H.& S.A. Railroad;
THENCE northerly coincident with the east right-of-way line of G.H. & S.A.
Railroad to its intersection with the westerly projection of the
south right-of-way of McCabe Road;
THENCE easterly along the south right-of-way line of McCabe Road to the
POINT OF BEGINNING, said tract being 32.9112 acres.
Said 32.9112 acres being more particularly described in Exhibit "A", Tract 1,
Tract 2, and Tract 3 Bayshore Industrial, Inc.
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EXIIIBI'!' "A"
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IH\Y'SlIonE INlllJS'rIlIAr" INC.
Being 14.6253 acres of land out of the C.l". McCabe 20 acre tract in
the W.Ll. lIa[rls Survey, Abstract No. 30, lIarrl,s County, 'reKas, said
tract being described as follows; Bearings are based on North 070
351 20~ West as per record descrIption.
BEGINNING at a point on the Hesterly right-of-way line of re-located
State lIighway No. 146, where sallie intersects the South right-:-of-way
line of McCabe Road (00 feet wide) said point being marked by a 4 K
4 concrete r Ight-of-\-/ay marker (top now broken off) for the
Northeast corner of the herein described tract,
'l'lIENCE south 230 40' 36" Hest, with the Hesterly line of said State
Illghway 146, a distance of 507.21 eeet to a 4 K 4 concrete right-of-
way marker Ear corner, said point being the Northeast corner of a
called 18.4285 acre tract nO\-I or formerly ownel1 by the Carla
Company, et aI,
'l'III~NCE South 000 2J' 39" \'lest, along the North line of said 10.4285
acre tract and general.ly along a f.ence (as shown on survey map) at
250.40 feet passing the center line of lIarrls County Flood Control
Easement No. AI04-09-00, at 110.25 feet and 0.32 feet South passing
a 2 Inch pipe, at .1009.00 feet passing a 1/2 In(:h iron pipe on line
anl' continuing in all 1040.61 feel: to an Iron "'1'" rail fence post
set Ln concrete (found broken off level with the ground and 1eanlng-
reset) for corner, said point heLng in the I~ast rIght-of-Hay line of
the Sou the r n Pac I, fie Il ail r 0 ad 1 0 0 f 00 t rig h t - () f - \-1 a y (b a sed 0 nth e
c(~nte( line locatIon of. t(acts),
'l'IIENCI~ North 07035' 20" West, along the I~ast lIne of said railroad,
530.60 feet to a 5/0 inch iron rod set for corner from which a 3/4
i n chi ran pip e I s f 0 u n d .1. 60 fee t Sou t h and 1."3 0 fee t I~ a s t, sa i d
point being in the South line of said t-1cCabe !load,
'l'III~NCI~ North 000351 30" I~asl:, along the South line of McCabe Road
and generally parallel to and l.OO feet North of a fence at 31.07
f.eet and 2.50 feet South passing a 3/4 lnch Iron pIpe at 103.10 feel:
pasdlng the center line of said drain easement and continuing in all
1347.57 feet to the PLI\C~ OL;> BEGINNING and contaLninlj within these
calls 14.6253 acres of land.
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EXIII B 1'1' "/\"
'l'HAc'r 2
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EKIIIBI'l' "A"
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BAYSIIORE INOUS'I'RIAr., INC.
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EXHIBIT "8"
INDUSTRIAL DISTRICT AGREEMENT
BETWEEN THE CITY OF LA PORTE AND
BAYSHORE INDUSTRIAL, INC.
Company agrees that it will not, during the term of this
Agreement, use the tract(s) of land described in Exhibit "A" to this
Agreement, for any purpose other than the purpose for which said
tract(s) of land are being used on the date of execution hereof,
which is a blending, mixing and plastics processing operation.
Company's raw materials are plastic pellets from major American
producers and mostly food grade additives that are mixed into the
plastic. The final products by, downstream producers are films, wire
coatings, insulation, and moldings for many applications including
household appliances and automotive uses. The waste generated by
Company shall consist principally of paper bags, corrugated craft
and wooden palettes, plus some scrap plastic. All plant waste that
is not recycled shall be disposed of in an approved sanitary
landfill. City shall not be obligated to dispose of Company's
waste. Company shall not dispose of any matter on the tracts of
land described on Exhibit "A", by any method, including, but not
limited to, incineration, toxic emissions, disposal wells, burying,
or any other form of disposal.
Company further agrees that it will, during the term of this
Agreement, keep and maintain a "greenbelt" of trees and other
vegetation, in a minimum fifty foot strip of land, described as
follows:
1) A mlnlmum fifty foot "greenbelt" along Company's property
line abutting the State Highway 146 right-of-way;
2) A minimum fifty foot "greenbelt" along Company's property
line abutting McCabe Road, and extending from the State
Highway 146 right-of-way, approximately 650 feet east; and
3) A minimum fifty foot "greenbelt" along Company's south
property line, except for that portion of Company's south
property line required for rail track ingress and egress.
Company shall retain the right to create reasonable openings in
such "greenbelts", for ingress and egress to its property.