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HomeMy WebLinkAbout2000-IDA-68 . e ORDINANCB NO. 2000-IDA-~ AN ORDINANCB AUTHORIZING THB BXBCUTION BY THE CITY OF LA PORTB OF AN INDUSTRIAL DISTRICT AGREBKBNT WITH JACOBSON WARBHOUSB, INC., FOR THB TBD COKKBNCING JANUARY 1, 2001, AND ENDING DBCEMBBR 31, 2007, MAKING VARIOUS FINDINGS AND PROVISIONS RBLATING TO THB SUBJECT, FINDING COMPLIANCB WITH THB OPBN KBBTINGS LAW, AND PROVIDING AN BFFBCTIVE DATB HBREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. JACOBSON WAREHOUSE, INC. has executed an industrial district agreement with the City of La Porte, for the term commencing January 1, 2001, and ending December 31, 2007, 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 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 Code; 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 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. . e PASSED AND APPROVED, this ~1-- day of CfftrVlJMl/ , 2003. / By: CITY OF LA PORTE I!e~ Mayor ATTEST: ~fJA1JJ~ 1/./it;tt1l Mar ha A. Gillett City Secretary . Knox W. Askl.ns, Gity Attorney 2 . e EXHIBIT "B" Industrial District Agreement . e 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 (Chapter 171, "General Arbitration", Texas civil Practice and Remedies Code). 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 l'ieu 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 agreem~nts 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. 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 th& 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, 7 . . 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. 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, 2001. By: INC. y.eo.J rl-\t7e Titl. ..t..oG.s1lCS J i?rtALI..sT Address: ~BI( 1)~yo"J /.)e~"'j tflouJPc S ""-;t>~.a 503/3 ATTEST: ~Mid ~/;U c t secret"1ir By: ~ OF LA POR~ ~e>- . rman IJ. a e Mayor AP~M~ Knox W. Askins City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 By: /u$jC' CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 Phone: (281) 471-1886 Fax: (281) 471-2047 8 .\ \.. e e NO. 2000-IDA-~~ STATE OF TEXAS COUNTY OF HARRIS INDUSTRIAL DISTRICT AGRBBMERT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called nCITyn, and JACOBSON WAREHOUSE COMPANY, INC., a corporation, hereinafter called nCOMPANYn, 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 nBattleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the nBayport Industrial District of La Porte, Texasn, hereinafter collectively called nDistrict", 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 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: FINAL DRAFT. February 24, 2000 '. . 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, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or State Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "c" and made a part hereof; and 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. 2 ,., e e 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 property in the annexed portion, for ad valorem tax purposes. III. A. On or before April 15, 2001, 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, 2007, 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 simili;tr 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"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. 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, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, 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. 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, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 t. . e each year by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; 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, 2000, 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, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) 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, 2000; 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 Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to ci ty on all of the company's tangible personal property of every description, located in an industrial district of City, 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, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 e e in accordance with the applicable provisions of the Texas Property Tax Code. wi th the sum of 1, 2 and. 3 reduced by the amount of ci ty I 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, 2001, and continuing thereafter until December 31, 2007, 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, 2007, 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 lan~, 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 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 un annexed portions of Company's hereinabove described property which would be due to ci ty in accordance wi th the 5 -- e 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 with 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 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 fai th 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 arbit~ation 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' 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 6 e e "BXHIBIT A" (Metes and Bounds Description of Land) .:. . e METES AND BOUNDS DESCRIPTION 35.36 ACRE TRACT ENOCH BRINSON SURVEY, A-5 HARlUSCOUNTY,TEXAS Being a 35,36 tract ofland out ofa part of that certain tract ofland conveyed by St. Joe Paper Company to E,I. Du Pont de Nemours and Company on December 21,1967 as described in the instrument recorded in Volume 7034, Page 10 of the Harris County Deed Records and that certain call 822.154 acres conveyed by H. C. Cockburn to E.I. Du Pont de Nemours and Company on March 29,1944 as described in the instrument recorded in Volume 1318, Page 364 of the Harris County Deed Records. The 32.64 acre tract ofland as surveyed by H. Carlos Smith, Engineers and Surveyors, Inc. is more particularly described by metes and bounds as follows: BEGINNING at the Southwest comer of the 35,36 acre tract; said point having Dupont La Porte Plant Coordinate ofN 1682.499 and W 9358.924 and from which a 3 inch galvanized fence comer post was found N 43 degrees 06 minutes E- 0.31 feet. The said point of beginning being coincident with a Southeast comer ofa 60 feet wide easement described as Tract I - Parcel No. B-542-01 as referred to in that certain Indenture made on the 28th day of October 1977 between E. I. Du Pont de Nemours and Company and Houston Lighting & Power Company; said point being described in this indenture as having coordinates of X = 3,252,400.24; Y= 697,632.10, Texas Plane Coordinate System, South Central Zone as based on the position of the U.S.C. & G.S. Triangulation Station ''La Porte 1952", X = 3,249,279.06: Y= 686,904.03; said point being the point of intersection of the East boundary line of the above mentioned Indenture and the North line of that certain 250 feet wide easement conveyed by E. I. Du Pont de Nemours and Company to Houston Lighting and Power Company according to the Instrument recorded in Volume 8437, Page 88 of the Harris County Deed Records. The said point of beginning bears S 69 degrees 43 minutes 33 seconds E a distance of 60.14 feet from a % inch iron rod found for the Southeast comer of that certain Exxon Pipeline Company 60 feet wide easement as recorded in Volume 7093, Page 455 of the Harris County Deed Records. Thence, N 18 degrees 37 minutes 06 seconds E ( call N 15 degrees 31 minutes 37 seconds E "grid bearing"); coincident with the East line of the aforementioned 60 feet wide Houston Lighting and Power Company Easement: a distance of 1,106.51 feet (ca111,106.44 feet) to a 'I. inch iron rod found for comer; said point having DuPont La Porte Plant Coordinates ofN 2731.103 and W 9183.368. Thence, N 21 degrees 44 minutes 34 seconds W ( call N 24 degrees 50 minutes 03 minutes W - grid bearing); coincident with a Northwest boundary line of the aforementioned 60 feet wide Houston Lighting and Power Company Easement; a distance of92.64 feet to a 5/8 inch iron rod set for comer; said point having DuPont La Porte Plant Coordinates ofN 2817.157 and W 9217.687. Page 1 of2 e e Thence, N 18 degrees 37 minutes 06 seconds E~ coincident with the East right-of-way line of the aforementioned Exxon Pipeline 60 feet wide easement~ a distance of384.44 feet to a 5/8 inch iron rod set for the Northwest comer of this 35.36 acre tract~ said point having DuPont La Porte Plant Coordinates ofN 3 181.476 and W 9094.951. Thence, S 57 degrees 29 minutes 38 seconds E~ coincident with the North boundary line of this tract~ said line being 35 feet south of (as measured perpendicular to) the Southerly right-of-way line of that certain 40 feet wide railroad easement as conveyed by E, I. Du Pont de Nemours and Company to Texas and New Orleans Railroad Company on August 2,1954 according to the instrument recorded in Volume 2807, Page 654 of the Harris, County Deed Records~ for a distance of 1,140,26 feet to a 5/8 inch iron rod set for the Northeast comer of this tract~ said point having DuPont La Porte Plant Coordinates of N 2568.711 and W 8133.329. Thence, S 00 degrees 01 minute 38 seconds W a distance of948.41 feet to a 5/8 inch iron rod set for Southeast comer of this 35.36 acre tract~ said point having DuPont La Porte Plant Coordinates of N 1620.302 and W 8133.780; said point being coincident with the North easement line of that certain 250 feet wide easement granted to Houston lighting and Power Company by E. I. Du Pont de Nemours as recorded in Volume 8437, page 88 of the Harris County Deed Records. Thence, S 89 degrees 50 minutes 19 seconds W~ coincident with the North easement line of the 250 feet wide Houston Lighting and Power Company easement; far a distance of 1,225.15 feet to a 5/8 inch iron rod found for comer; said point having DuPont La Porte Plant Coordinates of N 1616,851 and W 9358.924. Thence, N 69 degrees 43 minutes 33 seconds W; continuing coincident with the Northerly easement line of the Houston Lighting and Power Company 250 wide easement; a distance of 189.45 feet RETRURNING TO THE POINT OF BEGINNING. Coordinates and bearings contained in the above description refer to DuPont La Porte Plant System, unless specified otherwise. JI~~ H. Carlos Smith Texas Professional Land Surveyor No. 1228 Project #3366-00 Date: November 26,2001 Page 2 of2 e e "EXHIBIT B" (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.) ;;... . . e . "BXHIBIT e" paqe 1 of 2 RULBS AND RBGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit "A" which is adjacent to Fairmont Parkway, state Highway 225, or state Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: . One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. . Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. . One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights-Of-way. . Freestanding identification signs for multiple businesses shall not exceed 350 square feet. . Freestanding identification signs shall not exceed 45 feet in height. . Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50' of said strip beyond any existing' pipeline easement contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be screened by one of the following techniques: a), Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) The use of earthen berms with approximately 3: 1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be maintained by the property owners. '. . . e . "EXHIBIT e" Page 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights-of-way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items band c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50 ' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto State Highway 225 or State Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Code of Ordinances, whichever is more restrictive. Driveways opening from said strip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4. Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and city. This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called nCITyn, and JACOBSON WAREHOUSE COMPANY, INC., a corporation, hereinafter called nCOMPANYn, 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, Texasn, and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the nBayport Industrial District of La Porte, Texasn, hereinaf"ter collectively called "Districtn, 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 "An (hereinafter nLandn) ; and said Land being more particularly shown on a plat attached as Exhibit nBn, 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: FINAL DRAFT.' February 24, 2000 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, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "c" and made a part hereof; and 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. 2 . . 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 property in the annexed portion, for ad valorem tax purposes. III. A. On or before April 15, 2001, 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, 2007, 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"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. 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, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, 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. 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, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, '(excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 . . each year by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; 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, 2000, 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, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase, in value of the Land, improvements, and tangible personal property (excluding inventory) 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, 2000; 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 Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to ci ty on all of the Company's tangible personal property of every description, located in an industrial district of City, 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, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had. been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 . e in accordance with the applicable provisions of the Texas Property Tax Code. 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, 2001, and continuing thereafter until December 31, 2007, 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, 2007, 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 lan4, 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 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 ci ty in accordance wi th the 5 . e 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 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 submi t 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 yalorem 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 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 6 . e 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 (Chapter 171, "General Arbitration", Texas civil Practice and Remedies Code). 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 ent;ers 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. 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, 7 e . "EXHIBIT A" (Metes and Bounds Description of Land) \ . -- METES AND BOUNDS DESCRIPTION 35.36 ACRE TRACT ENOCH BRINSON SURVEY, A-5 HA~SCOUNTY,TEXAS Being a 35,36 tract ofland out ofa part of that certain tract ofland conveyed by St. Joe Paper Company to E.1. Du Pont de Nemours and Company on December 21,1967 as described in the instrument recorded in Volume 7034, Page 10 of the Harris County Deed Records and that certain call 822.154 acres conveyed by H. C. Cockburn to E.I. Du Pont de Nemours and Company on March 29,1944 as described in the instrument recorded in Volume 1318, Page 364 of the Hams County Deed Records. The 32.64 acre tract ofland as surveyed by H. Carlos Smith, Engineers and Surveyors, Inc. is more particularly described by metes and bounds as follows: BEGINNING at the Southwest comer of the 35,36 acre tract; said point having Dupont La Porte Plant Coordinate ofN 1682.499 and W 9358.924 and from which a 3 inch galvanized fence comer post was found N 43 degrees 06 minutes E- 0.31 feet. The said point of beginning being coincident with a Southeast comer ofa 60 feet wide easement described as Tract I - Parcel No. B-542-01 as referred to in that certain Indenture made on the 28th day of October 1977 between E. 1. Du Pont de Nemours and Company and Houston Lighting & Power Company; said point being described in this indenture as having coordinates of X = 3,252,400.24; Y= 697,632.10, Texas Plane Coordinate System, South Central Zone as based on the position of the U.S.C. & a.s. Triangulation Station "La Porte 1952", X = 3,249,279.06: y= 686,904.03; said point being the point of intersection of the East boundary line of the above mentioned Indenture and the North line of that certain 250 feet wide easement conveyed by E. I. Ou Pont de Nemours and Company to Houston Lighting and Power Company according to the Instrument recorded in Volume 8437, Page 88 of the Harris County Deed Records. The said point of beginning bears S 69 degrees 43 minutes 33 seconds E a distance of 60.14 feet from a 3h inch iron rod found for the Southeast comer of that certain Exxon Pipeline Company 60 feet wide easement as recorded in Volume 7093, Page 455 of the Harris County Deed Records. Thence, N 18 degrees 37 minutes 06 seconds E ( call N 15 degrees 31 minutes 37 seconds E "grid bearing"); coincident with the East line of the aforementioned 60 feet wide Houston Lighting and Power Company Easement: a distance of 1,106.51 feet (call 1,106.44 feet) to a % inch iron rod found for comer; said point having DuPont La Porte Plant Coordinates ofN 2731.103 and W 9183.368. Thence, N 21 degrees 44 minutes 34 seconds W ( call N 24 degrees 50 minutes 03 minutes W - grid bearing); coincident with a Northwest boundary line of the aforementioned 60 feet wide Houston Lighting and Power Company Easement; a distance of 92.64 feet to a 5/8 inch iron rod set for comer; said point having DuPont La Porte Plant Coordinates ofN 2817.157 and W 9217.687. Page 1 of2 \. . -- Thence, N 18 degrees 37 minutes 06 seconds E; coincident with the East right-of-way line of the atorementioned Exxon Pipeline 60 teet wide easement~ a distance of384,44 feet to a 5/8 inch iron rod set for the Northwest comer of this 35.36 acre tract; said point having DuPont La Porte Plant Coordinates ofN 3181.476 and W 9094,951. Thence, S 57 degrees 29 minutes 38 seconds E; coincident with the North boundary line of this tract; said line being 35 feet south of( as measured perpendicular to) the Southerly right-of-way line of that certain 40 feet wide railroad easement as conveyed by E. I. Du Pont de Nemours and Company to Texas and New Orleans Railroad Company on August 2,1954 according to the instrument recorded in Volume 2807, Page 654 of the Harris County Deed Records; for a distance of 1,140.26 feet to a 5/8 inch iron rod set for the Northeast comer of this tract; said point having DuPont La Porte Plant Coordinates of N 2568.711 and W 8133.329. Thence, S 00 degrees 01 minute 38 seconds W a distance of 948.41 feet to a 5/8 inch iron rod set for Southeast comer of this 35.36 acre tract; said point having DuPont La Porte Plant Coordinates of N 1620.302 and W 8133.780; said point being coincident with the North easement line of that certain 250 feet wide easement granted to Houston lighting and Power Company by E. 1. Du Pont de Nemours as recorded in Volume 8437, page 88 of the Harris County Deed Records. Thence, S 89 degrees 50 minutes 19 seconds W~ coincident with the North easement line of the 250 feet wide Houston Lighting and Power Company easement; far a distance of 1,225.15 feet to a 5/8 inch iron rod found for comer; said point having DuPont La Porte Plant Coordinates of N 1616.851 and W 9358.924. Thence, N 69 degrees 43 minutes 33 seconds W; continuing coincident with the Northerly easement line of the Houston Lighting and Power Company 250 wide easement; a distance of 189.45 feet RETRURNING TO THE POINT OF BEGINNING. Coordinates and bearings contained in the above description refer to DuPont La Porte Plant System, unless specified otherwise. Jf &L~ H. Carlos Smith Texas Professional Land Surveyor No. 1228 Project #3366-00 Date: November 26,2001 Page 2 of2 . . "BXHIBIT B" (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.) ::.. . . "EXHIBIT e" Page 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit nAn which is adjacent to Fairmont Parkway, state Highway 225, or state Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: . One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved pUblic right-of-way. . Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. . One freestanding identification sign for identifying multiple businesses is a~lowable at the intersection of improved public rights-of-way. . Freestanding identification signs for multiple businesses shall not exceed 350 square feet. . Freestanding identification signs shall not exceed 45 feet in height. . Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50' of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be screened by one of the following techniques: a) Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. ,~ b) The use of earthen berms with approximately 3: 1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be maintained by the property owners. . e "BXHIBIT e" Paqe 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights-of-way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items band c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50 ' landscape easement is not available or practical, Company shall meet with City to determine a sui table landscaping alternative. 3. Driveways opening from said strip of land onto State Highway 225 or State Highway 146 shall be sUbject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Code of Ordinances, whichever is more restrictive. Driveways opening from said strip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4. Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and city. . e EXHIBIT "C" Ordinance for Water Service Agreement .' e EXHIBIT "D" Water Service Agreement .A. ............. I.... l"'~,;. " .;~<' e . 1 STATE OF TEXAS ~ COUNTY OF HARRIS ~ WATER SERVICE 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 JACOBSON WAREHOUSE COMPANY, INC. hereinafter called "COMPANY". I. COMPANY is the owner of certain real property, which is situated in CITY'S Batt1~ground Industrial District and not within the corporate limits of the CITY, CITY and COMPANY are parties to a current Industrial District Agreement. n. COMPANY is desirous of purchasing potable water from CITY for usual human domestic consumption and uses, and for limited industrial processes as hereinafter stated. Previous planning considerations for the long-range potable water supply of CITY did not include the needs of property located outside the city limits of CITY. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited water service. CITY agrees, however, to provide limited potable water service to COMPANY. For and in consideration offumishing domestic potable water by CITY, the parties hereto agree as follows, to-wit: m. COMPANY has made certain representations to CITY as to its number of employees, and/or its desired amount of potable water for limited industrial processes, as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. UpotlJreview of these representations, the City has detennined the following: ~ ,.,:;- oJ".. e . 2 Number of Company Employees on site Vi Number of Contract Employees on site o Total on-site Employees lS Potable Water Approved for Domestic Use (Total on-site Employees times 50 gpd per employee) 17S0 . .Potable Water Approved for Industrial Processes (gpd) o Total Amount of Potable Water Approved for Company (Average Daily Demand, gpd) 17S0 . IV, CITY has detennined that adequate facilities are available to CITY to furnish potable water to COMPANY based on the following tenns and conditions, to-wit: (A) Company shall pay to CITY a one-time administrative connection charge of $ S 000 00 . (B) Potable water used for Industrial Processes shall be limited to the following: Fi11ine of on-~e Fire SlIppre~~ion Tsm1c (not to P.XC'P.PLI '-SO evm) smcllrrig;-t1nn for lancl~C'.apine (C) COMPANY shall file an application for water service with CITY'S Utility Billing Division and pay appropriate deposit and water meter charge. CITY shall be responsible for furnishing and installing meter at Company's expense. COMPANY shall be responsible for installing appropriate meter box to b~ apPI:oved by City. (D)CQMPANY shall submit payment to the CITY (on behalf of John Frantz) in the amount of $UU,'-6, as a pro-rata reimbursement for initial installation of water main per tenns of Utility Extension Agreement No. 98-7602 as generally illustrated on Exhibit ''B'' attached hereto and made part of herein. (E) The .total amount of potable water approved (average daily demand) is established at ONE THOlJSANn SEVEN ffiTNTlREn FIFTY (1,750) gallons per day. This number is based on an ..... .. ! '. '. . . . 3 .. ..' average offifty (50) gallons per employee per day established by CITY, plus any amount approved for industrial processes, (F) The average monthly demand ofFWfY THRFR THOTJ~ANh THRRR HITNnRFn ~RVF.NTV- F1VR (';1,17';) gallons is established by multiplying the average daily demand by a factor of 30.5, which shall be used to facilitate service billings. (G)The cost of water up to the average monthly demand ofFTFTV THRRR THOTJ~ANJ) THRRR HITNnRRn ~FVFNTV- FTVR (';1,17';) gallons shall be one hundred fifty percent (150%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (H) The cost of water for amounts used in excess of the established average monthly demand shall be two hundred percent (20001c>>) of the, CITY'S rate as established from time to time for commercial customers inside its corporate limits. (I) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly demand of FWfY THREE THOTJ~ANJ) THREE HITNnRFn ~EVF.NTV- FTVR (';1,17';) gallons per day, Repeated consumption greater than the established average monthly demand may result in tennination of service. (J) CITY shall have the right to interrupt or temporarily suspend said water service to COMPANY if an emergency arises and there is not an adequate water supply to meet the needs of the citizens of La Porte. (1<) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (L) The total cost for the engineering design and construction of any potable water main, service line, back flow preventer, meter or other required appurtenances will be the responsibility of COMPANY. ,". "-":: . ~" J. e e 4 (M) COMPANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of potable water to customers within the corporate limits of CITY. (N) All plumbing installed by COMPANY connected to the domestic water line from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and code enforcement personnel shall have the right of prior review and approval of COMPANY'S plans and specifications for the plumbing system(s). CITY plumbing inspectors shall have the right to inspect any and all work related to the furnishing of potable water to COMPANY. (O)A reduced 'pressure zone backf10w preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross-connections. (P) The potable water supply system will be segregated from any existing and future COMPANY fire protection system, (Q) There shall be no resale of the water provided by CITY, nor any extension of service lines by COMPANY to serve other parties, (R) COMPANY shall submit a certified site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site, Company's development may be subject to certain additional requirements as descn'bed in Exhibit A These requirements shall be shown on the site plan and approved by City. v. , All expenses of the installation of the meter; service lines from the main to the meter; and fom the meter to COMPANY'S facilities, shall be solely at the expense of COMP ANY. COMPANY ~haIl own and maintain all service lines and plumbing facilities beyond the meter. CITY s~ own the l}leter. VI. CITY will have ownership and maintenance responsibility for its water mains, and service lines up tQ and including CITY'S water meter. In the event a State or Harris County license, pennit, or . '! 4~" 'i. . e . 5 permission to install the water main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. VIT. ClTY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S water facilities, and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notify COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S facility. vm. CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereofby COMPANY. CITY Wi.l1 provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (10) days may result in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the integrity of the public water supply is threatened. IX. Upon receipt of written notice of termination, COMPANY shall have up to six (6) months to prepare for transition to another water supply. If the transition is not complete within said six-month period, CITY shall have the right to terminate water service at its sole discretion. x. In the event of any conflict between the terms and provisions of this Water Service Agreement and the terms and provisions of the Industrial District Agreement between the parties, the term,s and provisions of the Water Service Agreement shall control, to the extent of such conflict. The term of this Agreement shall terminate on December 31,2007. However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right of termination. e . 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. 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, 2001. APPROVED: d 1/~z:,J ~ Knox W. Askins City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 Phone: (281) 471-1886 Fax: (281) 471-2047 By: COMPANY, INC. Name: Title: Address: .(Q ~,.s TiC...s. .5 ~er, II-o..s-/ 3811 .Lh'x.oAJ ~'S "'Ol"~ ~ .5noAJl!.\ 5D3/,3 ~OF LA PO~ By: ~ ~ , rmand1e- Mayor By: ~""-;r0ll," .A&h^, y Ma ger CITY OF LA PORTE P.O. Box 1115\ La Porte, TX 77572-1115 .:toe.rn~ 8 . 0' . . . 6 .I!!, ~ ENTERED INTO effective the l71! day of D ~~I'JIf'< , 2002. Tlu..nhlilon WarP.holl~ Company, Tnc Company Name: Title: Address: By: CITY OF LA PORTE ATTEST: ,f, I ''!ID. .'. . flI~!J,~Jf.r,QF,LAPQRT.H. .. ,.... BY:'--",.~,."" Norman L. Malone Mayor A Gillett . City Secretary APPROVED: . . 1 I, ~21,J, t:;;l~ Knox W. Askins City Attorney City Attorney POBox 1218 LaPorte, TX 77572-1218 City of La Porte 604 West Fairmont Parkway LaPorte, TX 77572 Phone: (281) 471-1886 Fax: (281) 471-2047 Phone: (281) 471-5020 Fax: (281) 471-7168 .." . , ' r.'." . . 7 -<. ... .. . This is EXHIBIT A, consisting of 1 page, referred to in and part of the Water Service Agreement and/or Sanitary Sewer Service Agreement between CITY and COMPANY dated 11.12.7 / ~2 , AnnTTTONAT. RRQTTTRFMRNTS The Agreement is amended and supplemented to include the following agreement of the parties. COMPANY shall provide additional improvements as specifically set forth below. These agreements represent contractual undertakings of COMPANY, undertaken to induce CITY to sell water to COMPANY pursuant to the terms of the Water Service Agreement and/or Sanitary Sewer Service Agreement and this addendum. Said additional improvements undertaken by COMPANY are an integral part of the consideration by COMPANY for obtaining the provision of water and/or sanitary sewer service from CITY. 1) Storm Water Plan: For new development COMPANY shall provide a Storm Water Management Plan that is approved by Harris County Flood Control District and CITY. COMPANY shall construct and maintain any storm water system as a condition of continued water and/or sewer service. 2) Beautification Efforts: COMPANY shall submit a Landscaping Plan subject to approval by CITY. COMPANY shall install and maintain landscaping along its existing developed frontage as per approved Landscaping Plan as a condition of continued water servIce. '" . 'l, '.pt . - ~~~--~ ~~j ""fr" . . ':\,~,' .., t: ~ :."':> : .~'...,.' . ;-"'..', .. ", t::.t '. '.....l;}o , , ' ,;,.:~t."...:~f;..':.,.. . ' ,I..." ,,6:><, ' rm _.""l'" -J,;, . "",'" (~. "~'~' " . ,,' ", ;,,.~ ;-,c: ,.' f'" . "" '-I ~''''''-'' "" ""';;'~'" ;.' .'..".') ";-~~., ':.;.......;:: -.-:', ;:'-.04 :'. /,\:., d~ I ::~~~~-;~{....'1j>, ;;. ;t:/~t. ,,! ~l;< ;"7f~i']" Q;~~ :"'~~'.' ';":.;r.t~ ;'.: ," "":'r~ ' '...~ "-4,-" : '_"~"'" '.";.',,~: .~~ .ijiN;' ' " -,..,~.:;. :.. " ',~ >I: '.., '~;;;;'~~,!l. t,;; ~;i ,,", '-/"". .''",,, , "';:"3 -. '~jrr. t., \ '~~i~;:.,,~ ,;'-: ';"'~~ · ~~~;if-~.' ,,' "-"4 "'-~'_.'" ( <", " " "-'-.r'/",.~"'\..:. ':"'I. .....-01", ~"R..~,:",'^ -~.iU.. ~~~J ..: "," .. .~:~_.~... ., . e EXHIBIT "E" Area Map . e . . REQUEST FOR CITY COUNCIL AGENDA ITEM Aoorooriation I Agenda Date Requested: Janua" 13. 2003 Requested By: Doue Kneuooer~.1 ~ /' Department: Plannine ~ ' Source of Funds: N/A Account Number: N/A Report: _Resolution: _Ordinance:...L Amount Budgeted: N/A AmoUnt Requested: N/A Exhibits: A. Ordinance for Industrial District Agreement B. Industrial District Agreement C. Ordinance for Water Service Agreement D. Water Service Agreement E. Area Map Budgeted Item: _YES ..x.....NO SUMMARY & RECOMMENDATION Jacobson Warehouse Company, Inc., developer of the Jacobson Warehouse site in the Battleground Industrial "District, has recently approached the' City to provide water service to serve its new 35-acre development located on State Highway 225 between Miller Cut-Off Road and Sens Road (See Exhibit DEj. Council has approved a policy to provide utility services to companies located outside city limits and within the City's industrial districts. These companies are required to maintain a' current Industrial District Agreement with the City. Jacobson Warehouse Company, Inc. desires to pursue water service under the tenns of the aforementioned policy. Based on the company's stated demand for domestic uses, the average daily demand for water is 1,750 gallons per day. This demand includes utilization of water for the building's fire sprinkler system and landscape inigation. The applicant will pay one and one-half (1-%) times the City's current utility rate. The company is subject to administrative connection charges in the amount of $5,000. Additionally, Jacobson is assessed a pro-rata reimbursement charge in the amount of $18,626 for utilization of a water main previously extended by John Frantz under a previous Utility Extension Agreement. Payment in the total amount of $23,626 has been received from Jacobson Warehouse. The tenn of the Water Service Agreement expires on December 31, 2007, plus any renewals and extensions thereof. However, the agreements shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if the city exercises the right of tennination. Staff recommends approval of the Industrial District Agreement and Water Service Agreement as submitted herein. Action Reauired bv Council: Consider approval of two ordinances: an ordinance authorizing the City Manager to execute an Industrial District Agreement with Jacobson Warehouse, Inc. and an ordinance authorizing the City Manager to execute a Water Service Agreement with Jacobson Warehouse, Inc. ADDfoved fOf Citv Council Aeenda (~~ Date . e EXHIBIT "A" Ordinance for Industrial District Agreement