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HomeMy WebLinkAbout2000-IDA-69 ~ST FOR CITY C~UN€n. AGE&ITEM -'\ Annronriation Agenda Date Requested: Janua Source of Fonds: N/A ' Account Number: N/A Department: Plannine Amount Budgeted: N/A Report: _Resolution: _Ordinance:....K..- Amount Requested: N/A Exhibits: 1. Ordinance for Industrial District Agreement 2. Industrial District Agreement 3. Ordinance for Water Service & Utility Extension Agreements 4. Water Service Agreement 5. Utility Extension Agreement 6. Area Map Budgeted Item: _YES ...x.....NO SUMMARY & RECOMMENDATION Council has approved a policy to provide utility services to companies located outside city limits and within the City's industrial districts. In order to receive service, these companies are required to maintain a current Industrial District Agreement (IDA) with the City,. Houston Polymers Tenninal, located at 10925 S.H. 225, desires to pursue water service under the tenns of the policy. Based on the company's stated demand for domestic and industrial process uses, the average daily demand for water is 30,000 gallons per day (5,000 gpd for domestic + 25,000 gpd for industrial processes). This demand includes utilization of water for the building's on-site fire suppression tank, landscape inigation, make-up water and wash water for silo cleaning. The applicant will pay one and one- half (1-%) times the City's current utility rate for water service. Houston Polymers Tenninal is subject to a connection fee in the amount of $15,000 for its Water Service Agreement (WSA) with the City of which payment has subsequently been received. The tenn of the WSA expires on December 31,2007, plus any renewals and extensions thereof. The agreements shall automatically expire at such time as there is no effective IDA between the parties or if the city exercises the right of tennination. No existing water1ine is directly available to the site; therefore, a separate Utility Extension Agreement (UEA) between the Company and the City is required. Houston Polymers Tenninal has submitted plans for the extension of an 8D water1ine to and through their site to procure water service from the City. . Please note that Exhibit .CD of the IDA requires a 50' strip for landscape or screening purposes. Houston Polymers Tenninal's site was developed with concrete pavement encroaching into this 50' strip. In such cases, the IDA allows for the Company to meet with the City to arrive at a .suitable landscaping altemativeD. The company has met w~h the City and has submitted a landscaping plan calling for utilization of the adjacent TXDOT Right-of-Way to install a cO"1bination of palm trees and oleanders in order to meet the requirements of their agre~ments. Staff hat reviewed lhe Company's plan and feels that the plan compensates for the encro~ct1ment into the ~~O' strip. E>,Chibit .AD of the company's WSA requires the company to maintain this land$CS!ping as acol),dition of continued water service. ., Staff recommends approval of the Industrial District Agreement (IDA), Water S~rvi~ Agreement (WSA) and Utility Extension Agreement (UEA), as submitted herein. Action Required bv Council: Consider approval of an ordinance authorizing the City to enter into an Industrial District Agreement (IDA) and an ordinance authorizing the City to execute a Water Service Agreement (WSA) and Utility Extension Agreement (UEA) with Houston Polymers Tenni~al, L.P. J I~) /e,;s / Date( . .- EXHIBIT NO.1 Ordinance for Industrial District Agreement ,.' " ..-c:;. ~. . - ORDINANCB NO. 2000-IDA-~q AN ORDINANCE AUTHORIZING THE BXBCUTION BY THB CITY OF LA PORTB,OF AN INDUSTRIAL DISTRICT AGRBBMBNT WITH HOUSTON POLYMERS TBRMINAL, L,P~.' FOR THB TBRM COKKBNCING JANUARY 1, 2001, AND ENDING DBCBMBBR 31, 2007, KAXING VARIOUS FINDINGS AND PROVISIONS RELATING TO THB SUBJBCT, FINDING COMPLIANCE WITH THE OPEN IlEBTINGS LAW, AND PROVIDING AN BFFBCTIVE DATB HBRBOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. HOUSTON POLYMERS TERMINAL, 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 ~xecuteand 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 suf;icient 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~~day of ATTEST: (, cJIIIu1r~~. dauI Mar a A. GJ.llett City Secretary APPROVED: ~u Knox W. Askins, City Attorney e , 20Oj. Cd:;;;~,-- ~ .M 0, Mayor By: 2 e e EXHIBIT NO.2 Industrial District Agreement .. - NO. 2000-IDA-~ STATE OF TEXAS COUNTY OF HARRIS INDUSTRIAL DISTRICT AGRBBMBNT .:L l.r- 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 HOUSTON POLYMERS TERMINAL, ~, a corporation, hereinafter called "COMPANY", WIT N E SSE T H: WHEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the city and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the nBayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit nAn (hereinafter "Land") ; and said Land being more particularly shown on a plat attached as Exhibit nB", 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 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 ncn 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 n in lieu n payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangiple 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 lieun payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, impro~ements, 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 nRenditionn). 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 ofn taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III (someti~es collectively called the n Propertyn) ; 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 n in lieu of taxes n 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 taxesn on Company's Property as of January' 1st of the current calendar year (nValue Year") . . D. Company agrees to render to City and pay an amount nin lieu of taxes n 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 e 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 City 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. with the sum of 1, 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter until December 31, 2007, 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, 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 land, Company will waive the right to require city to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to 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 nin lieu of taxes n on the unannexed portions of Company's hereinabove described property which would be due to city in accordance with the 5 e 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 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 nin lieu of taxesn 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 lieun 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 nin lieun 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 nin lieu of taxesn 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 n 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 n 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 expert op1n1on, 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 (Chapter 171, nGeneral Arbitrationn, 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 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 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 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. Lp. HOUSTON POLYMERS TERMINAL, ~. ~ (COMPANY) By: "':""" ~ ~ ,vo~....." TJ.tle: .p1~.I'ol:...r- Address: 61~D ,"U,' 'nu.I'" 1.0 Ho &U""O~ ..,.. It "11Qt.. ATTEST: ~~~1 ~OF LA PO~ By: ~~ ~ orman . Ma 0 e Mayor fj!:d14l'd Knox W. Askins City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 By: CITY OF LA PORTE 604 Weset Fairmont Parkway La Porte, TX 77571 Phone: (281) 471-1886 Fax: (281) 471-2047 8 e tit nBDIBIT An (Metes and Bounds Description of Land) __.. ~1I01l01 14: 2-' FA."t 7139778142 e COMMOMWEALTH e IaI 006/007 GF No. 984l004A EXHIBIT II A" A tract of land containing 71.4228 acres out of 116.9341 acres being part of and out of a called 822.154 Acre Tract originally conveyed to E.I. DuPont De Nemours & Company as described in Volume 1318, Page 364 of the Harris County Deed Records (HCDR), in the Enoch Brinson Survey, Abstract No.5, in Harris County, Texas; said 71.4228 acres being more particularly described by metes and bounds as follows: BEGINNING at a S/8-inch iron rod set for the Southwest corner of a called 50 foot wide strip conveyed to Harris County for road right-of-way, construction and maintenance as described in Volume 75~, Page 628, HCDR, on the east line of Miller Road (50 feet wide), on the south line of STRANG SUBDIVISION, according to the map or plat thereof recorded in Volume 75, Page 22 of the Harris County Map Records (HCMR); THENCE, North 89 deg. 11 min. 03 sec. East, along the south line of said STRANG SUBDIVISION, for a distance of 2,819.69 feet to a S/8-inch iron rod set for corner, on the westerly line of a Humble Pipeline Company Tract as described in Volume 5857, Page 142, HCDR; THENCE, South 58 deg. 22 min. 41 sec. East, along the westerly line of said Humble pipeline Company ,Tract, for a distance of 379.00 feet to a S/8-inch iron rod set for corner, on the easterly line of an Exxon Pipeline Company BO-foot Easement as described in Volume 4022, Page 278 of the Harris County Deed ~ecords; THENCE, South 40 deg. 06 min. 44 sec. West, along the easterly line of said Exxon Pipeline Company 80-foot Easement, for a distance of 1,9~1.26 feet to a s/8-inch iron rod set for corner, on the northerly right-of-way- line of State Highway 225, same being the southwesterly corner of a 6.0000 Acre Tract; THENCE, North 70 deg. 44 min. 34 sec. West, along the northerly right-of-way line of State Highway 225, for a distance of 17.39 feet to a SiB-inch iron rod set for a point of curvature; , THENCE in a general NORTHWESTERLY direction, continuing along the northerly right-of-way line of State Highway 225, being a curve to the right'having a radius of 5,689.58 feet and a central angle of 08 deg. 00 min. 00 sec., for an are distance of 794.42 feet to a found Texas Department of Highways and Transportation (TXDOT) Concrete Monument for point of tangency; THENCE, North 62 deg. 44 min. 34 sec. West, continuing along the northerly right-of-way line of State Highway 225, for a distance of 403.90 feet to a found TXDOT Concrete Monument for point of curvature; THENCE in a general NORTHWESTERLY direction continuing along the northerly right-of-way line of State Highway 22S, being a curve to the right having a radius of 341.97 feet and a central angle of 44 deg. 00 min. 00 sec., for an arc distance of 262.61 feet to a point of tangency, from which a found Concrete Monument "marked DuPont" bears witness at South 15 deg. 31 min. 14 sec. East, a distance of 1.11 feet; THENCE, North 1B deg. 44 min. 34 sec. West, continuing along the northerly right-of-way line of State Highway 225, for a distance of 414.50 feet to a point of curvature, from which a found Concrete Monument "marked DuPontll bears witness at South 18 deg. 44 min. 34 Sec. East, a distance of 0.79 feet; Form No. B20 Page 1 11/01/01 14:27 FAX 7139778142 . --- COMMOMWEALTH e IaI 007/007 GF No. 9841004A THENCE in a general NORTHWESTERLY direction, continuing along the northerly right-of-way line of State Highway 225, being a curve to the left having a radius of 421.97 feet and a central angle of 72 deg. 00 min. 00 sec., for an arc distance of 530.26 feet (called 530.28 feet) to a point of tangency, from which a found TXDOT Concrete Monument bears witness at south 61 deg. 37 min. 31 sec. West, a distance of 0.44 feet; THENCE, South 69 deg. 15 min. 26 sec. West , continuing along the northerly right-of-way line of State Highway 225, for a distance of 53.90 feet (called 48.00 feet by TXDOT) to a SIB-inch iron rod set for corner, same being a southerly corner of a cutback for the easterly right-of-way line of Miller Road; THENCE, North 45 deg. 44 min. 34 sec. West, along said cutback for the easterly right-of-way line of Miller Road, for a distance of 52.21 feet (called 56.57 feet by TXDOT) to a found TXDOT Concrete Monument, same being the northerly corner of said cutback for the easterly right-of-way line of Miller Road; THENCE, North 00 deg. 44 min. 34 sec. West, along the easterly right-of-way line of Miller Road (60 feet wide), for a distance of 215.06 feet to the PLACE OF BEGINNING of a tract containing 71.4228 acres of land. Form No. B20 Page 2 e e DBXHIBIT BD (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 e EXHIBIT NO.4 Water Service Agreement e e 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 Ranis County, Texas, hereinafter called "CITY", and HOUSTON \ .' POLYMERS TERMINAL, L.P., a corporation, hereinafter called "COMPANY". I. COMPANY is the long-tenn lessee of certain real property, which is situated in CITY'S Battleground 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. e e 2 Upon review of these represemations, the City has detennined the following: Number of Company Employees on site 7~ Number of Contract Employees on site ?~ Total on-site Employees 100 Potable Water Approved for Domestic Use (Total on-site Employees times 50 gpd per employee) ~ 000 , Potable Water Approved for Industrial Processes (gpd) ?~ 000 , Total Amount of Potable Water Approved for Company (gpd) 10 000 , IV. CITY has detennined that adequate facilities are available for 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 $ 1 ~, 000 . (B) Potable water used for Industrial Processes shall be limited to the following processes: Filling nf On-~itp. 1 ~O,OOO Wlnnn Firp. ~lIpprp.~~inn TSInK (nnt tn p.xrP.P.rl ?~O gpm), Tni~tinn fnr T Jlnti~aping, Makp.-llp watp.r anti wa~h watp.r fnr ~iln dPJlning (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 be approved by City. (0) Where applicable, COMPANY shall also pay to CITY $ NI A as a pro-rata reimbursement for installation of utility mains funded by other parties. (E) The total amount of potable water approved (average daily demand) is established at _ 10,000 _ gallons per day, This number is based on an average of fifty (50) gallons per It e 3 employee per day established by CITY, plus any amount approved for industrial processes, (F) The average monthly demand of Ql ~,OOO gallons is established by multiplying the average daily demand by a factor of30.5, which shall be used to facilitate service billings. (G) The cost of water up to the average monthly demand of Ql ~,OOO gallons shall be one hundred fifty percent (1500,/0) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (II) The cost of water for amounts used in excess of the established average monthly demand shall be two hundred percent (2000,/0) 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 Ql ~ ,000 gallons. Repeated consumption greater than the established average monthly demand may result in termination of service. (J) CITY shall have the right to intenupt 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. (M)COMP ANY 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. tit e 4 (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, (0) A reduced pressure zone bacld10w 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 described 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 from the meter to COMPANY'S facilities, shall be solely at the expense of COMPANY, COMPANY shall own and maintain all service lines and plumbing facilities beyond the meter, CITY shall own the meter. VI. CITY will have ownership and maintenance responsibility for its water mains, and service lines up to and including CITY'S water meter. In the event a State or Harris County license, pennit, or pennission 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. e e 5 ..- VIT. CITY reserves the right of entiy at all reasonable times for the purpose of inspection of COMPANY'S water facilities, and to observe compliance with the tenns 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 tenninate this agreement in the event of violation of the terms and provisions hereof by COMPANY. CITY will 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 tennination 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 tenninate 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 tenns and provisions of the Water Service Agreement shall control. to the extent of such conflict, The term of this Agreement shall be for five years plus any renewals and extensions thereof 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 tennination. -. e e 6 ENTERED INTO effuctivethe~ clay of h~~ T........I, T. P Company By: Ivo Creton President 8750 Wallisville Rd. Houston, TX 77029 Name: Title: Address: CITY OF LA PORTE Martha A. Gillett ,City Secretary C)J;OF LA PORTE By. /~~'v~A Nonnan L. Malone Mayor ATTEST: Lff! aulrtJ.II./1i11 APPROVED: ~14-~ ~ Knox W. Askins City Attorney By: J Acting City Manager City Attorney PO Box 1218 LaPorte, TX 77572-1218 City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 Phone: (281) 471-1886 Fax: (281) 471-2047 Phone: (281) 471-5020 Fax: (281) 471-7168- ';. e e 7 This is EXHIBIT A, consisting of 1 page, referred to in and part of the Water Service Agreement between CITY and COMPANY dated .~ AnnTTTONAT, RP.QTJTRP.MF.NT~ 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 provide a Landscaping Plan subject to approval by CITY. COMPANY shall install and maintain landscaping along its existing developed frontage to State Hwy. 225 as per approved Landscaping Plan as a condition of continued water service. In addition, Company shall install and maintain landscaping within TXDOT Right-of-Way as per Approved Landscaping Plan, - e EXHIBIT NO.5 Utility Extension Agreement .... -. e e UTILITY EXTENSION AGREEMENT (Owner Funded Extension) THE STATE OF TEXAS: COUNTY OF HARRIS: This agreemen~ made 1his ~ rpI- day of J d.JlllI1 rt . 2003, by and between the City of La Porte, herein called "City", acting herein through its City Manager and Houston Polymers Terminal, LP., a corporation, hereinafter called "Owner", WITNESSETH 1. All references to "Utility Main(s)" hereunder shall, for the purposes of this agreement, shall refer to the extension of an 8-inch potable water line and related appurtenances as per plans and specifications prepared by ATR Engineering, Dated 09/05/01 (CLP Project No. 2002-7601) and as generally illustrated on Exhibit "A" attached hereto and made part of herein. 2. Owner is the owner of certain property in the City of La Porte, Harris County, Texas, identified as 69.9934 Acres of the Enoch Brinson Survey, A-5, Harris County, Texas. City's utility main(s) presently do not extend to Owner's said property. Owner has requested the extension of City's utility main(s) to selVe Owners said property. 3, City hereby agrees to the construction and installation of an extension of its utility main(s) to said property commencing at the nearest existing utility main(s) of sufficient size and capacity. Thence along/through public rights-of-way and/or easements to and through said Owner's property. Provided, however, that City should not possess all necessary rights-of-way and/or easements to complete said extension(s), Owner shall be solely responsible for obtaining said additional rights-of-way and/or easements at no cost to City on City approved fonns, All pennits and approvals required by entities with jurisdiction shall be secured prior to construction. .......~ . . e e 2 1 7'.. . 4. Owner agrees to pay all costs related to the const11lction and installation of said utility main(s) including necessary appurtenances in confonnance with City's standards and specifications for said utility main(s). Owner further agrees to pay all engineering fees for survey, design, contract documents, bidding, construction staking, const11lction inspection, and preparation and submittal of As-Built const11lction dmwings, 5. Subject to the provisions of this agreement, City hereby agrees to the const11lction and installation of said utility main(s) according to the plans, specifications and contract documents to be prepared by the Owner's engineer and approved by the City. The contract documents shall include a provision for a one (1) year warranty from defects in materials and workmanship. The documents will also provide a "Notice" to Contractor that the City of La Porte will perform daily const11lction inspection to insure compliance with plans and specifications. Owner agrees that City will not be responsible for issuing or approving payments to the Contractor. It is agreed and understood that Owner is responsible for paying for any unforeseen costs or cost overruns in the project that result from circumstances beyond the control of the City, 6. City shall have the right to approve the Engineer and the Contractor selected by Owner. Upon completion and approval of plans, specifications, and contract documents, the City shall authorize the Owner to secure bids from qualified underground utility contractors. 7. Owner agrees that upon completion and acceptance by City, City will assume ownership and maintenance of the utility main(s) and as such shall have full control over future extensions and connections thereto. ~......, ~ .: ... e e 3 ':f .. ., IN WITNESS WHEREOF, the Parties to these presents have executed this agreement in several counterparts, each of which shall be deemed an original, in the year and day first mentioned above. (Seal) CITY OF LA PORTE BY:~J!. ( ity See 0 La Porte) ef ATI'EST: (Seal) BY: AI.. me. I fIJ ATI'EST: HOUSTON POLYMERS TE orporation) APPRO~~ City Attorney I e EXHIBIT NO.6 Area Map e . '.< , ,',A'.....R'..'.',E:...'A.....:..'~.M".:,rA. .'.'p.. . ' ..~.~" .'~' ..:.~:::'. ':':: .:~<: '..:J~o.,q~:E.';~~::~ciO~~7~oi ,"l '<>:::: " i:xHi~h;},~ 1;0 AGENDA PACKET' ': ". , . ,'. "6:l-> '.:..\"\. ~.~,~.;;;-~~..~: ..;t~I..'!',.".<.' ..... '"! ';':~'.l( e e DBXHIBIT CD Page 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 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 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 e nBXHIBIT CD 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 subj ect 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 accelerationldeceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and City. ~" e e NO. 2000-IDA-~ STATE OF TEXAS COUNTY OF HARRIS INDUSTRIAL DISTRICT AGRBBMBNT ~t.p This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called nCITY", and HOUSTON POLYMERS TERMINAL, ,JJK!'., 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. 72,9, designating portions of the area located in its extraterritorial jurisdiction as the nBattleground Industrial District of La Porte, Texasn, 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 nDistrictn, 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 It 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 ncn and made a part hereof; and provided, however, it is agreed that City shall have the right to institute, or intervene in any administrative andlor 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 nin 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 nin lieu" payment purposes, such appraiser must of necessity 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 nRenditionn). 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 ofn taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III (sometimes collectively called the "Propertyn); 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 n 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 (nproducts in storagen), 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 nin lieu of taxesn on Company's Property as of January 1st of the current calendar year (nValue Yearn) . D. Company agrees to render to City and pay an amount nin 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 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, 2QOO; 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 city 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 tit in accordance with the applicable provisions of the Texas Property Tax Code. with the sum of 1, 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter until December 31, 2007, 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, 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 land, Company will waive the right to require City to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to 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 nin lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the 5 It 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 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 n 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 nin 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 nin lieun 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 nImpartial Arbitratorn) 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 n 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 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 (Chapter 171, nGeneral 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 nin lieu of taxesn 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 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 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. L-t ~ HOUSTON POLYMERS TERMINAL,;g(C. ) By: lvo {.~I:-rr>~ Name: Title: Address: . r 81--'0 c..uIU:JIltLLI: "-..,. Ho"" 't'8llJ "tlPo "t.1 ~ I ~ , ATTEST: ~~dR~~ i y ecre ary By: ~ OF LA PORTBV~ 'OMeU No man L.~ Mayor 7%4t/~ Knox W. Askins City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 By: CITY OF LA PORTE 604 Weset Fairmont Parkway La Porte, TX 77571 Phone: (281) 471-1886 Fax: (281) 471-2047 8 e e -BXHIBIT AD (Metes and Bounds Description of Land) __..1,1/01/01 14:2-' FAX 7139778142. COMMOMWEALTH 1aI 006/007 e GF No. 98410Q4A EXHIBIT nAil A tract of land containing 71.422S acres out of 116.9341 acres being part of and out of a called 822.154 Acre Tract originally conveyed to E.I. DuPont De Nemours & Company as described in Volume 1318, Page 364 of the Harris County Deed Records (HCDR), in the Enoch Brinson Survey, Abstract No.5, in Harris County, Texas; said 71.4228 acres being more particularly described by metes and bounds as follows: BEGINNING at a S/8-inch iron rod set for the Southwest corner of a called 50 foot wide strip conveyed to Harris County for road right-of-way, construction and maintenance as described in Volume 752, Page 628, HCDR, on the east line of Miller Road (50 feet wide), on the south line of STRANG SUBDIVISION, according to the map or plat thereof recorded in Volume 75, Page 22 of the Harris County Map Records (HCMR); THENCE, North 89 deg. 11 min. 03 sec. East, along the south line of said STRANG SUBDIVISION, for a distance of 2,S19.69 feet to a S/8-inch iron rod set for corner, on the westerly line of a Humble Pipeline Company Tract as described in Volume 5857, Page 142, HeDR; THENCE, South 58 deg. 22 min. 41 sec. East, along the westerly line of said Humble pipeline Company.Tract, for a distance of 379.00 feet to a 5/s-inch iron rod set for corner, on the easterly line of an Exxon Pipeline Company BO-foot Easement as described in Volume 4022, Page 27B of the Harris County Deed Records; THENCE, South 40 deg. 06 min. 44 sec. West, along the easterly line of said Exxon pipeline Company so-foot Easement, ,for a distance of 1,921.26 feet to a s/S-inch iron rod set for corner, on the northerly right-of-way line of State Highway 225, same being the Southwesterly corner of a 6.0000 Aore Tract; THENCE, North 70 deg. 44 min. 34 sec. West, along the northerly right-of-way line of State Highway 225, for a distance of 17.39 feet to a S/8-inch iron rod set for a point of curvature; THENCE in a general NORTHWESTERLY direction, continuing along the northerly right-of-way line of State Highway 225, being a curve to the right having a radius of 5,6S9,58 feet and a central angle of OS deg. 00 min. 00 sec., for an arc distance of 794.42 feet to a found Texas Department of Highways and Transportation (TXDOT) Concrete Monument for point of tangency; THENCE, North 62 deg. 44 min. 34 sec. West, continuing along the northerly right-of-way line of state Highway 225, for a distance of 403.90 feet to a found TXDOT Concrete Monument for point of curvature; THENCE in a general NORTHWESTERLY direction continuing along the northerly right-of-way line of State Highway 22S, being a curve to the right having a radius of 341.97 feet and a central angle of 44 deg. 00 min. 00 sec., for an arc distance of 262.61 feet to a point of tangenoy, from which a found Concrete Monument "marked DuPont" bears witness at South 15 deg. 31 min. 14 sec. East, a distance of 1.11 feet; THENCE, North 18 deg. 44 min. 34 sec. West, continuing along the northerly right-of-way line of State Highway 225, for a distance of 414.50 feet to a point of curvature, from which a found Concrete Monument llmarked DuPont" bears witness at South 18 deg. 44 min. 34 Sec. East, a distance of 0.79 feet; Form No. B20 Page 1 11/01/01 14:27 FAX 7139778142 . . COMMOMWEALTH IaJ 007/007 e GF No. 9841004A THENCE in a general NORTHWESTERLY direction, continuing along the northerly right-of-way line of State Highway 225, being a curve to the left having a radius of 421.97 feet and a cent~al angle of 72 deg. 00 min. 00 sec., for an arc distance of 530.26 feet (called 530.28 feet) to a point of tangency, from which a found TXDOT Concrete Monument bears witness at south 61 deg. 37 min. 31 sec. West, a distance of 0.44 feet; THENCE, South 89 deg. 15 min. '26 sec. West , continuing along the northerly right-of-way line of State Highway 225, for a distance of 53.90 feet (called 4S.00 feet by TXDOT) to a S/S-inch iron rod set for corner, same being a southerly corner of a cutback for the easterly right-of-way line of Miller Road; THENCE, North 45 deg. 44 min. 34 sec. West, along said cutback for the easterly right-of-way line of Miller Road, for a distance of 52.21 feet (called 56.57 feet by TXDOT) to a found TXDOT Concrete Monument, same being the northerly corner of said cutback for the easterly right-of-way line of Miller Road; , THENCE, North 00 deg. 44 min. 34 sec. West, along the easterly right-of-way line of Miller Road (60 feet wide), for a distance of 215.06 feet to the PLACE OF BEGINNING of a tract containing 71.4228 acres of land. Form No. B20 Page 2 . . nEXHIBIT Bn (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 DBDIBIT Cn Page 1 of 2 RULES 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 -BXHIBIT CD 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 subj ect 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 accele,ation/deceleration lanes. Installation of a median crossov~r on Fairmont Parkway shall be subject to the approval of both Harris County and City. 5. . - .' .'. :":><~':t."iE'.'~~'H.''''':I'':B. ";I"T. ,iA" . ;'..:~..."'__t~~~..'~,..-"..... "..",. ~ c ""':'~ "~ j:O.,U;E;~A"",2002';7601 . '.. ~ }c .". ".. .:~ ~. . .' ....,.., ~ . ". ",' ',.~~~,.P.9INf,.~"A';:TO"~B'i f1I0TE'LIGIBLE <', ~~;\"?;'F:OR{REtMBURsEMENT', ,i. -~ e ~ .... .: EXHIBIT NO.3 Ordinance for Water Service Agreement & Utility Extension Agreement