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HomeMy WebLinkAbout93-IDA-23 '. e~ ORDINANCE NO. 93-IDA-23 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH HOUSTON LIGHTING AND POWER COMPANY, FOR THE TERM COMMENCING JANUARY 1, 1994, AND ENDING DECEMBER 31, 2000; 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. HOUSTON LIGHTING AND POWER COMPANY has executed an industrial district agreement with the City of La Porte, for the term commencing January 1, 1994, and ending December 31, 2000, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. The Mayor, the City Manager, the City Secretary, and the City Attorney of the City of La Porte, be, and they are ....." hereby, authorized and empowered to execute and' deliver on behalf of the City of La Porte, the industrial district agreement with the corporation named in Section 1 hereof. Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, ... hour, place and subject of,~~~s 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 Durther ratifies, approves and confirms such written notice and the contents and posting thereof. . . ORDINANCE NO. 93-IDA-23 PAGE 2 section 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 14th day of March, 1994. CITY OF LA PORTE By:Jh.QW<I(~ orman . Ma e, Mayor ATTEST: ~~ Sue Lenes, city Secretary . . CURRENT NAME PREVIOUS NAME & DATE Houston Lighting & Power Company . . - e CITY OF L41 PORTE \ PHONE (7131 471.5020 . p, 0, BOx 1115 . LA PORTE, TEXAS 77572 ..:.-3 March 15, 1994 Houston Lighting & Power company Attn: Paul D. Gastineau P.o. Box 1700 Houston, TX 77251 Re: city of La Porte Industrial District Agreement, Effective January I, 1994. Dear Mr. Gastineau: I am pleased to enclose herewith fully executed duplicate original copy of the industrial district agreement between your firm and the city of La Porte, effective January I, 1994, for the term expiring December 31, 2000. I also enclose certified copy of the City of La Porte's approval ordinance, for your records. Thank you for your cooperation in this matter. If my office can ever be of assistance to your firm, please do not hesitate to call. Yours very truly, CITY OF LA PORTE By: Q~'~ Robert T. Herrera City Manager RTH:sw Enclosures , e e NO. 93-IDA- ~3 { \. { 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 Houston Lighting & Power Company , a Texas' corporation, hereinafter called "COMPANY", WIT' N E ,S SET 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 wi thin 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 site 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 necessity 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 maili~g 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 wi thin 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 ci ty · 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 ci ty' 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 ci ty 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 agree~ent 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 . city on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annex,ed portions, plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company I 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 wi th 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 ci ty 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 controll'ing 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 arbi tration 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 I 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 ~he 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 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 city 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 la~downer 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 . 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, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be ind~pendent 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 s~id Land shall terminate. ENTERED INTO effective the 1st day of January, 1994. ATTEST: ~ Knox W. Askins city Attorney city of La Porte P.O. Box 1218 La Porte, TX 77572-1218 Phone: (713) 471-1886 Fax: (713) 471-2047 Houston Lighting Joseph B.' McGoldrick Treasurer P.O. Box 1700 Houston, Texas 77251 By: ~= PORTE~ R an L. ~4 Mayor . By: G?~ T. ~ Robert T. Herrera city Manager CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 8 . The Light coDlpany Houston Lighting llc Power . P.O. Box 1700 Houston, Texas 77251 (713) 228-9211 February 7, 1994 Robert T. Herrera City Manager City of La Porte P. O. Box 1115 La Porte, Texas 77572-1115 Dear Mr. Herrera: Enclosed are two copies of the La Porte Industrial District Agreement between the City of La Porte and Houston Lighting and Power Company, Please sign the agreement where stated and forward to our office, A copy has been provided for your files. For your convince a self address envelope has been provided, Please contact Denny Piper if you have questions or need further assistance at (713) 229':7911. Sincerely, Paul D, Gastineau Supervisor, Finance & Property Tax JDP/PDG/caf Enclosure cc: Georgianna Nichols A Subsidiary of Houston Industries Incorporated --- . . .. e The Light cOlDpaay Houston Lighting &: Power, . P,Q. Box 1700 Houston, Texas 77251 (713) 228-9211 October 28, 1993 RECEIVED NOV 1 1993 Crry MANAGERS OFFICE ' t.,' Mr. Robert T. Herrera City Manager City of La Porte P. O. Box 1115 La Porte, Texas 77572-1115 Re: City of La Porte Proposed Industrial District Agreement Dated October 22, 1993 Dear Mr. Herrera: Houston Ljghting & Power Company has received and reviewed the City of La Porte's proposed industrial district agreement dated October 22, 1993, for the term January 1, 1994, through December 31,2000. }, 4.,..'\ 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 "An and Exhibit "B" at the earliest possible date. Our agreement to enter into this Agreement is subject to the understanding that the reduction of the in lieu tax payment made under this Agreement by the amount of the City's ad valorem taxes paid on the annexed portion of our property, will continue to be calculated in accordance with procedure established for this matter under the prior 1986 industrial district agreement. Further, our concurrence in this niatter is subject to our understanding that the assessment of an in lieu payment on tangible personal property, as further identified by Article III. D. 3. of the Agreement refers only to tangible personal property which is owned by HL&P, 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, Houston Ughting & Power Company By: ~mc.-~J D. M, McClanahan Group Vice President, Finance & Regulatory Relations A Subsidiary of Houston Industries Incorporated . . , e e (Revised: 06/86) NOTICE: THIS CONTRACT IS SUBJECT TO ARBITRATION UNDER THE TEXAS GENERAL ARBITRATION ACT, ARTICLE 224, ET. SEQ., REVISED CIVIL STATUTES OF TEXAS THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ ~ CITY OF LA PORTE ~ 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 Houston Lighting & Power Company , a Texas 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: 572/597, 812/36, 1887/73, 1928/380, 1928/383, 1981/528, 2260/65, 2419/524, 2425/686, 2440/455, 2447/478, 2609/623, 2609/625, 2609/628 2624/530, 2643/145, 2643/151, 2680/573, 2682/72, 2751/623, 3431/241, 3620/536 and 4278/264, containing a total of 667.1493 acres located within the Battleground Industrial District of LaPorte, Texas as enacted by Ordinance No. 729. . e . Industrial District Agreement - 2 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. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas," and Ordinance No. 842, designating portions of the area 10- _ cated in its extraterritdrial jurisdiction as the "Bayport Industrial District of La Porte, Texas," hereinafter collectively called "Dis- trict," such Ordinances being in compliance with the Municipal Annex- ation Act 'of Texas, Article 970a, Vernons Annotated Revised Civil Statutes of Texas: and WHEREAS, City desire's 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 Resolution 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: 1. 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 and retain its extraterritorial status as an industrial district, at least to t.he 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 Jnay be changed pursuant to the terms of this Agreement. Subject to e e Industrial District Agreement - 3 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 annexed under the provisions of Article II hereof, 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 of said land, including that which has been heretofore or which may be annexed pursuant to the later provisions of this Agreement, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescri- bing 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 judicial proceeding authorized by the Texas Water Code or the Texas Clean Air Act 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. II. A portion of the hereinabove described property equal to twenty- five (25%) of the total value of the land and improvements of such property, 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), - e . Industrial District Agreement - 4 the appraised value for tax purposes of the annexed portion of land, improvements, and tangible personal property shall be determined by the Harris County Apprais'al District. The parties hereto recognize that said 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 I 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 necessity appraise the entire (annexed and unannexed) land, improvements, and tangible personal property. Company agrees to render and pay full City ad valorem taxes on such annexed land, improvements, and tangible personal pro- perty. Company also agrees to render to City and pay an amount "in lieu of taxes" on company I s land, improvements, and tangible personal property in the unannexed area equal to the sum of: (1) Fifty percent (50%) of the amount of ad valorem taxes which would be payable to City if all of the hereinabove described property which existed on January 1, 1986, had been within the corporate limits of City and appraised each year by City's independent appraiser: and ( 2 ) Thirty percent (30% ) of the amount of ad valorem taxes which would be payable to City on any increase in value of the hereinabove described property, in excess of the appraised value of same on January 1, 1986, resulting from new construction and new acquisitions of tangible personal property, (exclusive of Construction in Progress, which shall be exempt from taxation), if all of said new construction and acquisitions had been within the corporate limits of City and appraised by City's independent e e Industrial District Agreement - 5 appraiser: with the sum of (1) and (2) reduced by the amount of City's ad valorem taxes on the annexed por~ion thereof as determined by appraisal by the Harris County Appraisal District. Nothing herein contained shall ever be construed as in derogation of the authority of the Harris County Appraisal District to establish the appraised value of land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. III. This Agreement shall extend for a period beginning on the 1st day of January, 1987, and continue thereafter until December 31, 1993, 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, 1993, 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 agrement, and in such event Company agrees that if the Texas Municipal Act, Article 970a (V.A.T.S.), 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 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 wi th the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1980. e e Industrial District Agreement - 6 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 indust.ria+ 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 Di~trict Agreement upon request of Company or its assigns: provided, however, that nothing herein contained shall be deemed to obligate either party hereto to agree to an extension of this Agrement. v. Company agrees to pay all "in lieu of taxes" payments hereunder, to City on or before Decemb~r 31 of each year during the term hereof. . The Company agrees to pay all ad valorem taxes hereunder in accordance wi th Section 3l. 0 2 of the Texas Property Code. It is agreed that presently the ratio of ad valorem tax assessment used by City is one hundred percent (lOO%) of the fair market value of property. Any change in such ratio used by City shall be reflected in any subse- quent 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, assessment, Harris County Appraisal District review and appeal procedures, 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 Articles II and 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 ~ e e Industrial District Agreement - 7 Coun"ty 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. Nothwithstanding such protest by Company, Company agrees to pay to 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 by Company to City in accordance with the foregoing provisions of this Agrement 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 (as the case may be) 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 competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days ~1ereafter Company shall make payment to Cit-y of any additional payment due hereunder based on such final valuation, together with applicable penal ties, interests, and costs. (B) Should Company disagree with any appraisal made by the independent apppraiser 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 e . Industrial District Agreement - 8 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 I s property for .. in lieu II 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 (l) 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 II in lieu of taxes II thereon for the last preceding year, whichever is higher. (l) 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 II Impartial Arbitratorll) shall preside over the arbitration proceeding. 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 I 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, e . Industrial District Agreement - 9 render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subject only to judicial review as may be available under the Texas General Arbitration Act (Articles 224-238, Vernon's Annot- ated 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. (c) Should the provisions of Article II of this Agreement become impossible of enforcement because of of any material delay or failure to act on the part of the Harris County Appraisal District, then and in any of such events, the City shall have the right to appoint an independent appraiser, whose appraisal shall be treated for all purposes in this Agreement as if it had been made by the Harris County Appraisal District. . VII. City shall be entitled to a tax lien on Company's above-described property, all improvements thereon, and all tangible personal property I 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. V I I I . ~.I'R()...ro AS TO FC,,'i~1. ~. Company has previously provided to City at Company's expense, a ' ~w survey plat and field note description of the land and improvements w~t have been annexed in accordance with the provisions of Article II !J~_ above. Such annexation tract is contiguous to a point on the exist- /~ ing corporate limits of La Porte. ~. " e . Industrial District Agreement - 10 IX. 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 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 wi thin the territory hereinabove described, and the agreements herein contained shall b~ 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. X. 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: provided, however , City reserves the right to enter into such agreements or renewal agreements with other landowners not covered by existing agreements, containing a percentage of ad valorem taxes more favorable to the landowner than that contained in Paragraph II, Subparagraph 3 (2) hereof, and Company and its assigns shall not have the right to amend this agreement to embrace the more favorable percentage of ad valorem taxes contained in such agreement or renewal thereof, than that contained in Paragraph II, Subparagraph 3 (2) hereof. City may extend more favorable terms to landowners covered by existing contracts only to the extent such favorable .terms apply to any increase in value of the hereinabove described property, in excess of the appraised value of same on January 1, 1986, as described in Paragraph II, Sub- paragraph 3 (2) hereof. e e Industrial District Agreement - 11 XI. In the event anyone or more words, phrases, clauses, sentences, paragraphs, sections, art;.icles or other parts of this Agreement or the applicaton thereof to any person, firm, corporation or circum- stances 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 partes of this Agreement shall not be affected thereby. XII. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said land shall terminate. ,~ ~o~ LJI J" Iv ENTERED INTO this ~ day of~, 1986. Houston Lighting & Power compan~ (COMPANY ASST~~e' ~ A'f'l'EST : Name: FRANK C. GEMAR Title: Vice President Address: 611 Walker Street APPROVED BY COUNSEL: Houston, Texas 77001 .. . ." ~~ ~~~~ y~~ ATTORNEY FOR OMPANY Name: CE"c:::.V"~e \.-\ ~!:::>\~ Address: Co lIt uo......lv.....€A.r- \--\c~tC-'f""-"'\ Ie.~<:::.: ./ Telephone: 2.-ZC::Z-7/:S<:' . . . . e Industrial District Agreement - 12 ATTEST: f!k;.u~ Cherie Black, City Secretary APPROVED BY COUNSEL: KNOX W. ASKINS, City Attorney 702 West Fairmont Parkway Post Office Box 1218 La Porte, Texas 77571 Telephone: (713) 47l-1886 (Revised: 06/86) . CITY OF LA PORTE BY I BY CITY OF LA PORTE Post Office Box 1115 La Porte, Texas 77571 Manager . CITY OF L~ PORTE PHONE 17131 471.5020 . P. O. Box 1 115 . LA PORTE. TEXAS 77572 , . ! '. April 15, 1994 Houston Lighting and Power Company Attn: Mr. Paul D. Gastineau P.O. Box 1700 Houston TX 77251 RE: Industrial District Agreement (IDA) Exhibits Dear Mr. Gastineau: A fully executed Industrial District Agreement together with the approval ordinance are enclosed. As part of the document preparation, the City examined Exhibits II A II and liB II furnished by your firm. While reviewing the documents, we found that Exhibit II A II lists various tracts that collectively comprise the property subject to this agree~ent While this .. is extremely helpful, it does not provide us with a legal description of the properties which is called for in the agreement We realize that producing separate metes and bounds descriptions for these tracts could be both tedious and burdensome. If such metes and bounds "are not readily available, we would gladly accept deed references for the properties, which are what Houston Lighting and Power furnished for the previous Industrial District Agreement (example enclosed). If you do not have the requested information, cannot readily develop it, or need to discuss this reqri~st, please contact my Assistant City Manager John Joerns. Thank you for your assistance in completing these documents. Sincerely, ~~T~ Robert T. Herrera City Manager ". RTH/cjb Enclosures cc Jeff Litchfield, Finance Director IDA File #93-IDA-23 .. \. . . '-'''~'' '-......~...: -.- 'p . ." '. - ". " .. '. ~"'. ~. ~ .. - --~-b~--'~-~ - k- --- --. ~--------------~T -----' '-.. ...'-tf--k -L - -- - .. .. '. . . ... ... . '." .+....._. ....._._... _. .. _...... a. _ ..... Industrial District Agreements Each company' s packet should contain the followlng:/ ~tter offering the agreement and certified copy of ordinance ~etter requesting action / / . / / v Agreement - sim;1ed by company. Mayor. RTII. Sue. Knox vi'~t "A" ~xhibit "B" - some will not have this item since we kept the only one that was sent . -.....-..-..... _._......;_.. ..._w..;:~';'_ ~._.:-.~:.:.:--~....:-;.~ ".:, ..:_::.:.......::. ".:' .:.;-..:... __ ~.._ :..~_...._... .._.. '. "';' -:":: '--. -",~,~""~'. ..---.:..--....... . -...... -. ......-..,~~.:-'...~....-.-:--..:'I"~..,....?~......,...... -~.........,........._....:"'~It':~,..~!.o'l....~,...........~~~._~__._:'"~_....."..........___~_ ......'!,.. "'''~'''_:. . ~:.' " ~. . ., .-." ... ... . . ...,. . - - -.'~ ... ..:..:..:.::"':.-=...:....~.. ~...'- ..:....:. - . '.. ...:.. .0":.;.' r-'':t.._... .._.... ~..., '.~'.. .~. _..:..::'.:::' . ..... . . . . Exhibit A LA PORTE BATTLE GROUND INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE AND HOUSTON LIGHTING & POWER COMPANY LAND SURVEY: ABSTRACT SUBDIVISION OR ADDITION NO. OF ACRES Arthur McCormick Survev. Abstract-46 Alexander Island 10.024 ac Less 4.00 ac Annexed 2.500 7.216 14.716 6.024 3.541 31.058 12.953 14.156 1 6.793 5.616 55.512 18.819 52.626 316.046 23.200 1.943 2.624 .647 2.640 3. 1 33 6.906 18.992 ac Less 2.199 ac Annexed 18.406 ac Less 9.214 ac Annexed Less 3.576 ac sold 61.612 ac Less 6.1 ac sold 20.202 ac Less 1.383 ac sold 61.726 ac Less 9.1 ac sold 324.485 ac Less 6.439 ac Annexed Less 2.0 ac sold 25.000 ac Less 1.8 ac sold 2. 143 ac Less 0.2 ac sold LaPorte Outlots Pt OIL 623-1/2 and 635-1/2; 9.362 ac Less 2.82 ac Annexed 6.542 ANNEXED PROPERTY Arthur McCormick Survev. Abstract 46 LaPorte Outlots 21.852 2.820 ENOCH BRINSON SURVEY. ABSTRACT-5 Strano Subdivision Pt Lots 21 and 38 16.93 Blackwell (PernO Subdivision Pt Lot 9 Total 8.856 655.669 -!' . . Exhibit A LA PORTE BATTLE GROUND INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE AND HOUSTON LIGHTING & POWER COMPANY IMPROVEMENTS Sam Bertron Power Plant Alexander Island Substation PERSONAL PROPERTY Transmission Lines 345 KV Steel Tower 138 KV Steel Tower 138 KV Steel Tower 138 KV H-Frame 69 KV Steel Tower 69 KV H-Frame 69 KV Wood Pole 1CKT 2CKT 1CKT 1CKT 2CKT 1CKT 1CKT 0.93 miles 8.93 miles 9.04 miles 3.39 miles 2.44 miles .90 miles 1 .75 miles Pioelines 1975 12-inch Fuel Oil 1975 18-inch Fuel Oil Fuel Oil in Storage 0.84 miles 4.75 miles Page 2 ... of. . . -- . Exhibit B LA PORTE BATTLE GROUND INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE AND HOUSTON LIGHTING & POWER COMPANY See Attached Map '!