HomeMy WebLinkAboutO-2010-3287 mutual termination/tax abatement agreement providing for the payment of abated 2007/2008 ad valorem taxes to La Porte
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: October 11, 2010
Appropnatlon
Requested By: Ron Bottoms
Source of Funds:
Department: Administration
Account Number:
Report: ~Resolution: ~Ordinance: ~
Amount Budgeted:
Exhibits:
Ordinance
Amount Requested:
Exhibits:
Mutual Termination Agreement
Budgeted Item:
YES
NO
Exhibits:
SUMMARY & RECOMMENDATION
Attached is an ordinance and Mutual Termination of Tax Abatement Agreement tew your review and
consideration. Packwell and P0I1er Road Venture L.P. failed to meet the terms of their tax
abatement agreement with the City of La P0I1e and have remitted back taxes to the City in the
amount of $116,678.16.
Action Required hv Council:
Council approve the attached ordinance authorizing the execution of the Mutual Termination of Tax
Abatement A reement.
Ron Bottoms, City Manager
/1 A- ~c)
.
Date
(I
ORDINANCE NO. 2010- 326
AN ORDINANCE APPROVING AND AUTHORIZING A MUTUAL TERMINATION OF TAX
ABATEMENT AGREEMENT, BETWEEN THE CITY OF LA PORTE, PACKWELL, INC.,
AND PORTER ROAD VENTURE, L . P . , MAlCING 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, a copy of which is on file in the office
of the City Secretary. 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
Codei 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
ATTEST:
~a. t4jfjf-
a tha A. Gillett
City Secretary
APPROVED:
~4'T~
Clark T. Askins
Assistant City Attorney
)4L
By:
day of
Dc)-
, 2010.
2
MUTUAL TERMINATION OF TAX ABATEMENT AGREEMENT
THE STATE OF TEXAS ~
~
COUNTY OF HARRIS ~
THIS MUTUAL TERMINATION OF TAX ABATEMENT AGREEMENT is entered into by The
City of La Porte, Texas ("City" herein), Packwell, Inc. (the "Lessee"), A Texas Corporation and
Porter Road Venture, L.P. (the "Lessor"), a Texas limited partnership and the owner of taxable
interests in real property located at 10016 Porter Road, La Porte, Texas 77571, also known as
the La Porte Reinvestment Zone "B" (the "Property").
RECITALS:
On July 10, 2006, City Council of La Porte, Texas approved a tax abatement agreement
between the City and the Lessee and the Lessor to abate a portion of any increase in the
certified appraised value of certain taxable property located in the Property, for a period of ten
(10) years beginning on January 1, 2007; and
The tax abatement agreement required that a certain minimum investment be made in
the Property and that the Property meet a certain minimum valuation, both of which the
Lessee acknowledges have not been met and that the Lessee will be unable to cure.
Lessee and Lessor hereby request a mutual termination of tax abatement agreement
conditioned upon the payment by Lessee of all City taxes previously abated for the tax years of
2007 and 2008; no City taxes have been abated for the tax year 2009.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledge and confessed, the parties hereto agree as follows:
TERMS:
I.
In accordance with TEX. TAX CODE ANN. ~~312.208(b) and 312.402(e), the tax
abatement agreement approved by La Porte City Council on July 10, 2006 is terminated,
conditioned upon the payment by Lessee of $116,678.16 to City, constituting the recapture of
all City taxes due for the tax years 2007 and 2008, the receipt of which is evidenced by Exhibit A.
1
for year 2009 no ad valorem taxes were abated, and City has received payment in full for taxes due
for that period.
II.
Lessor and Lessee represent and warrant that they have no outstanding indebtedness to
the City, or other political subdivisions who are parties to this Agreement, for ad valorem taxes
or other obligations.
III.
The parties agree that this Agreement contains all of the terms and conditions of the
understanding of the parties relating to the subject matter hereof. All prior negotiations,
discussions, correspondence and preliminary understandings between the parties and others
relating hereto are superseded by this Agreement.
IV.
This Agreement shall be governed according to the laws of the State of Texas and shall
bind and insure to the benefit of the respective legal representatives, successors and permitted
assigns of the parties.
V.
The City executes this Agreement by and through the acting pursuant to Ordinance of
the City Council of La Porte City, Texas so authoring. This Agreement shall not become effective
until executed by all parties hereto.
This Agreement may be executed by the parties in multiple originals, each having full
force and effect.
ATTEST:
(;~
Porter Road Venture, L.P.
A Texas Limited Partnership
General Partner
("LESSORJI)
By: 1IJ ~
/tL .() C/~~
Date signed: /0/ Sit 0
I I
2
ATTEST:
Ilf~
APPROVED AS TO FORM:
By:~;;-A~~~#
Clar T. Askins
Asst. City Attorney
PACKWELL,INC.
A Texas corporation
("LESSEE")
By:
U
Date signed:
lO.-OS"\O
By:
Ron Bottoms
City Manager, City of La Porte
Date signed: Ib;fJ--~
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PORTER ROAD VENTURE LP
VENDOR NO' NAME'
CHECK DATE' 10/4/2010
1036
REFERENCE INVOICE DATE GROSS AMOUNT DISCOUNT TAKEN NET AMOUNT PAID
NC 040-174-000-0048 1 0/4/2Q1 0 116,678.16 0.00 116,678.16
,
, TOTAL> 116,678.16 0.00 116,678.16
PORTER ROAD VENTURE lP
10016 Porter Road
La Porte
Texas 77571
WACHOVIA BANK
HOUSTON
TEXAS
32-1515/1110
DATE
':-.'O~.1l)'aB>;
.,'~~~.~~:~""\':'"
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...J\.. PAY
'-V ONLY.. . .
PAY
One Hundred Sixteen Thousand Six Hundred Seventy-Eight and 16/1 OO~
/
, .. ~ ..: ;":
TO THE
ORDER
OF
CITY OF LA PORTE
604 W.FAIRMONT PKWY
LA PORTE, TEXAS 77571
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