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HomeMy WebLinkAboutO-2020-IDA-33 Lubrizol Advanced Materials ORDINANCE NO. 2020-IDA-33 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE, TEXAS OF AN INDUSTRIAL DISTRICT AGREEMENT WITH LUBRIZOL ADVANCED MATERIALS, A TEXAS CORPORATION, FOR THE TERM COMMENCING JANUARY 1, 2020, AND ENDING DECEMBER 31, 2031; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. Lubrizol Advanced Materials, a Texas corporation has executed an industrial district agreement with the City of La Porte, Texas, for the term commencing January 1, 2020, and ending December 31, 2031, 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, Texas, be and they are hereby, authorized and empowered to execute and deliver on behalf of the City of La Porte, Texas, the industrial district agreement with the corporation named in Section 1 hereof. 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. PASSED and APPROVED, this 28th day of October, 2019. CITY OF LA '*RT , TEXAS `r1 bill Louis ' Rigby, M..yo AEST: t ( kf e ( ' i _ Woodward, City Secretary APPROVED AS TO FORM: U__,/,‘,4( T:=A-4-44-(..., Clark T. Askins, Assistant City Attorney NO. 2020 IDA- 3 STATE OF TEXAS ' COUNTY OF HARRIS INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal coor- tion ofi arris Coun y, Texas, hereinafter called " I Y" , and A. a �/ / iloS _, a . corpora ion, hereinaf er called "COMPANY" , WITNESSET H: WHEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas" , and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas" , hereinafter collectively called "District" , such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42 . 044, Texas Local Government Code; and WHEREAS, Company is the owner of land 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: 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, 1) 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, 2) intermodal shipping containers (including but not limited to freight and tank containers) placed on Land belonging to Company shall be permitted to be stacked only two containers in height within the 100 ' wide portion of Company' s Land contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146; beyond said 100' wide strip, intermodal shipping containers shall be eligible to be stacked one additional container in height within and for each successive 100' wide portion of Company' s Land behind and following the preceding 100' wide strip, up to a maximum of six containers in height, regardless of distance from Fairmont Parkway, State Highway 225, or State Highway 146; and 3) 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 2 determined by the Harris County Appraisal District . The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall be conducted by City, at City's expense, by an independent appraiser of City' s selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. III. A. The properties upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection C, 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. Property included in this Agreement shall not be entitled to an agricultural use exemption for purposes of computing "in lieu of taxes" hereunder. B. On or before the later of December 31, 2020, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2031, Company shall pay to City an amount of "in lieu of taxes" on Company' s Property as of January 1st of the current calendar year ("Value Year") . C. Company and City agree that the following percentages ( "Percentage Amount" ) shall apply during each of the Value Years: Value Year 2020: 64% Value Year 2021: 64% Value Year 2022: 64% Value Year 2023 : 64% Value Year 2024: 64% Value Year 2025: 64% Value Year 2026: 64% Value Year 2027: 64% Value Year 2028: 64% Value Year 2029: 64% Value Year 2030: 64% Value Year 2031: 64% Company agrees to pay to City an amount of "in lieu of 3 taxes" on Company' s land, improvements and tangible personal property in the unannexed area equal to the sum of: 1 . Percentage Amount 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, 2020, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts which would be so payable with respect to any Substantial Increase in value of such Land and improvements to which subparagraph 2, below applies) , had been within the corporate limits of City and appraised 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, 2019, 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%) , where construction is completed in Value Years 2020 through 2031, 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. The eligible period for application of said thirty percent (30%) "in lieu" rate shall be for a total of six (6) Value Years . In the case of new construction which is completed in Value Year 2028 or later, and provided, further, that City and Company enter into an Industrial District Agreement after the expiration of this Industrial District Agreement, then, and in such events, such new construction shall be entitled to additional Value Years under the new Agreement at a Thirty percent (30%) valuation under this subparagraph (a) , for a total of six (6) Value Years, but not extending beyond Value Year 2034 . In the case of new construction which was completed in Value Years 2016 through 2019 in accordance with the previous Industrial District Agreement between City and Company, such .new construction shall be subject to a Twenty percent 20o)valuation through Value Year 2022, and a 4 Thirty (30%) valuation for any additional Value Years beyond Value Year 2022, for a total of six (6) Value Years. (b) Application of the thirty percent (30%) "in lieu" rate for Substantial Increase in value of the Land, improvements, and tangible personal property dedicated to new construction is limited to new construction purposed for or related to manufacturing and processing uses . In no case shall Company be entitled to application of the thirty percent (30%) "in lieu" rate for Substantial Increase in value of the Land, improvements, and tangible personal property dedicated to new construction where the new construction is purposed for or related to uses for warehousing, storage, distribution, and/or general freight trucking and transportation, as well as general commercial uses, such as truck stops , rental facilities, or repair shops. (c) 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, 2019; 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. (d) If existing Property values have depreciated below the Property value established on January 1, 2019, 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, 2019, value; and 3 . Percentage Amount 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, (including inventory in a federal Foreign Trade Zone and including Freeport exempted 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, 2020, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, 5 (excluding amounts which would be so payable with respect to any Substantial Increase in value of such tangible personal property to which subparagraph 2, above applies) , had been within the corporate limits of City and appraised each year by the City' s independent appraiser, 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. 4 . Notwithstanding the above, should City elect to grant the freeport inventory exemption authorized by Article VIII, Section 1-j of the Texas Constitution and Section 11.251 of the Texas Property Tax Code to taxpayers within the City limits, then the freeport inventory exemption shall apply to parties to this Agreement. Further, should inventory or any other class or type of property become exempt from taxation by constitutional amendment or act of the Texas Legislature (including, but not limited to, Article VIII, Section 1-n, of the Texas Constitution and Section 11 .253 of the Texas Property Tax Code) , such class or type of property shall be exempt for purposes of this Agreement, unless the City Council of the City of La Porte shall by Ordinance provide for the continued taxation of such property under the authority of any applicable provisions of the Texas Constitution and Texas Statutes . 5 . City and Company acknowledge circumstances might require the City to provide emergency services to Company' s Property described on Exhibit "A" attached hereto. Emergency services are limited to fire, police, and public works emergency services. If Company is not a member of Channel Industries Mutual Aid Association (LIMA) , Company agrees to reimburse City for its costs arising out of any emergency response requested by Company to Company' s property, and to which City agrees to respond. If Company is a member of LIMA, the obligations of Company and City shall be governed by the CIMA agreement, to which agreement City is a party. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2020, and continuing thereafter until December 31, 2031, 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, 2031, 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 6 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 Local Government Code Section Chapter 42 . 044 "Creation of Industrial District in Extraterritorial Jurisdiction" , or Texas Local Government Code Chapter 43 "Municipal Annexation" , is amended, 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 laws as the same existed on January 1, 2019 . 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, and except as otherwise provided in Article VI (B) , Company agrees to pay to City on or before the date therefore 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 City in accordance with the foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the City or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter Company shall make payment to City of any additional payment due hereunder, or City shall make payment to Company of any refund due, as the case may be, 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, 7 within twenty (20) calendar days of receiving City' s invoice, give written notice to the City of such disagreement . In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should Company give such notice of disagreement, Company shall also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company' s hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company' s property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI (B) . Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" payments which would be due hereunder on the basis of Company' s written valuations statement 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 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, "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. 8 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 any one or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. 9 Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate . XII. Notices by a party to the other party hereto, shall be mailed or delivered as follows: To the City of La Porte: City Manager City of La Porte 604 West Fairmont Parkway La Porte, TX 77571 To Company: Lubrizol Advanced Materials (COMPANY) Attention: Accounting Department P.O.Box 158 Deer Park,TX 77536 Company shall promptly notify City of any change of ownership of Property, any assignment of this Agreement, and of any change of billing address. Company shall notify City annually, on or before June 1, of any changes to the following information: Plant Manager Name : Tanya Travis Address: P.O.Box 158 Deer Park TX.77536 Phone: (832)260-7200 Fax: (832)260-7339 Email : Tanya.Travis@Lubrizol.com Tax Agent/Billing Contact Name : Deborah Peres Address: P.O.Box 158 Deer Park,TX 77536 Phone: (832)260-7260 Fax: (832)260-7339 Email: Deborah.Peres@Lubrizol.com ENTERED INTO effective the 1st day of January, 2020. Lubriz�1/ooll Advanced Materials By: 1,(14;LCOMPANY) `\G��/ /r Name: Tanya Tra is Title: Gene anager Address: P. .Box 158 Deer Park,TX 77536 10 A r!IESTI.; CITY OF TEXAS isr0 1 By: -' I t ecretary L..uis R. Rill, M. o• APPROVED:_1,2 Ts /r4444.4-vi )4 By: / .1140 0 Knox W. Askins j Corby P 1exander City Attorney City Manager City of La Porte P.O. Box 1218 CITY OF LA PORTE, TEXAS La Porte, TX 77572-1218 604 West Fairmont Parkway 281.471. 1886 La Porte, TX 77571 281 .471 .2047 fax knoxaskins@comcast .net .*°'�`°be LORENA C TRIVINO STATE OF TEXAS I ;�� Notary ID#131874765 I J�,74A My Commission Expires I 0 'Foot January 31, 2023 COUNTY OF HARRIS ' This instrument was acknowledged before me on the ep day of Sp 1 , 201q , by Tanya Travis , General Manager of Lubrizol Advanced Materials corporation, a _ Ohio corporation, on behalf of said entity. / r otary Public, State of Texas 11 STATE OF TEXAS COUNTY OF HARRIS ' ]� This instrument was acknowledged before me on the a\ day of tl-bb 20/ , by Louis R. Rigby, Mayor of the City of La Porte, a municipal corporation, or beha of said entity. 6 / 0 No"::ry lic, Sas LEE WOODWARD emAtt, NOTARY PUBLIC 7� * STATE OF TEXAS ''oF�*�y MY COMM.EXP.2/19/21 NOTARY ID 12681012-9 12 "EXHIBIT A" (Metes and Bounds Description of Land) 13 TRACT I: . 52.9251 acres of land in the Arthur McCormick Survey, Abstract No. 46, being that part or portion of Tract Two described in that certain Deed dated July 23, 1956, from W. W. Kemmerer, et al to Ben G. Sewell, recorded in Volume 3192, Page 431, of the Deed Records of Harris County, Texas (herein after called the "Kemmerer Deed") , lying South of a line beginning at a point at a point in the East line of said Tract Two which point is the Northwest corner of that certain tract of 52.809 acres of land described in Exhibit A to that certain conveyance dated as of October 23, 1962, from the Carwin Company to The Upjohn Company, recorded in Volume 4908, Page 59 of the Deed Records of Harris County, Texas (said 52.809 acres of land being hereinafter called the "Carwin Tract"), and running in a Westerly direction as an extension of the North line of the Carwin Tract to the West line of the aforesaid Tract Two, described in the Kemmerer Deed, said West line also being the East line of that certain 31.058 acres of land described in that certain Deed dated April 28, 1952, from J. Waldene Hine to Houston Lighting & Power Company, recorded in Volume 2440, Page 455, of the Deed Records of Harris County, Texas (said 31.058 acres of landbeing hereinafter called the "Houston Lighting & Power Company Tract") ; the land hereby granted, bargained, sold and conveyed being more particularly described as follows, to—wit: BEGINNING at a point in the East line of the aforesaid Tract Two described in the Kemmerer Deed, which point is the Northwest corner of the Carwin Tract, and is marked by a 3/4ths inch iron rod; THENCE South 10 deg. 07 min. West, along the East line of said Tract Two described in the Kemmerer Deed and the West line of the Carwin Tract, 1078.93 feet to the Southeast corner of said Tract Two, which point is in the North line of that certain tract of land described as Tract One in that certain Deed dated June 28, 1963, from Philips Petroleum Company to The Upjohn Company, recorded in Volume 5185, Page 102, of the Deed Records of Harris County, Texas (said Tract One being hereinafter called the "Philips Tract") and which point is marked by a 1/2 inch iron pipe; THENCE South 88 deg. 56 min. West, along the South line of Tract Two described in the Kemmerer Deed, and the North line of the Philips Tract, 2307.65 feet to the Southwest corner of said Tract Two described in the Kemmerer Deed in the East line of the Houston Lighting & Power Company Tract, .ihich point is the Northwest corner of the Philips Tract and is marked by a 5/8ths inch iron rod; THENCE North 22 deg. 48 min. East, along the West line of said Tract Two described in the Kemmerer Deed and the East line of the Houston Lighting & Power Company tract, 1157.41 feet co the Northwest corner of the tract of land described herein, which point is marked by a 5/8ths inch iron rod; THENCE North 88 deg. 56 min. East, 2048.61 feet to the POINT OF BEGINNING. • 41r-. . . TRACT II: Fifty-Two and Eight Hundred and Nine/One Thousandths (52.809) acres of land, more or less, in the Arthur McCormick Survey, Abstract No. 46, Harris• County, Texas, described by metes and bounds as follows: BEGINNING at a point in the South line of said Arthur McCormick Survey, said line being the Southwest corner of that 14.156 acre tract of land described in that certain Deed from J. Waldene Hine to Houston Lighting & Power Company, recorded in Volume 2643, Page 145 of the Deed Records of Harris County, Texas; THENCE South 88 deg. 57 min. 41 sec. West, along the South line of said Survey, 1051.17 feet to the Southeast corner of a 30-acre tract of land described in that certain Correction Deed from Merrill I. Richardson to Ben Richards, recorded in Volume 2728, Page 230 of the Deed Records of Harris County, Texas, from which point a 3/4 inch rod is set South 01 deg. T4 min. East, a distance of 0.47 feet;r!) THENCE North 01 deg. 04 min long the East line of said Richards 30-acre tract 405.03 feet to the Northeast corner of said Richards 30-acre tract, marked by a 1-1/4th inch iron pipe; THENCE South 88 deg. 56 min. West, along the North line of said Richards 30-acre tract 828.26 feet to the Southeast corner of the 149.86 acre or Second Tract, described in that certain Correction Deed from Merrill I. Richardson to M. L. Muse, Trustee, recorded in Volume 2717, Page 513 of the Deed Records of Harris County, Texas; THENCE North 10 deg. 09 min. East, along the East line of said Muse Trustee 149.86 acre tract, at 518.25 feet passing a 1/2 inch iron pipe, a total distance of 1,0'78.55 feet to a point for corner marked by a 3/4 inch rod; THENCE North 88 deg. 57 min. 41 sec. East, 1666.41 feet to a point in the West line of :2 the aforementioned Houston Lighting & Power Company, 14.156 acre tract, a 3/4 inch rod set for corner; THENCE South 01 deg. 11 min. 34 sec. East, along the West line of said Houston; Lighting & Power Company, 14.156 acre tract, 1462.69 feet to the PLACE OF BEGINNING. • is:Zt • • • • _. .__ j' r� v.__ 'J'( v ._ • • TRACT III-A: That certain Lot, Tract or Parcel of land situated in the Arthur McCormick Survey, . Abstract No. 46, containing 29.992 acres of land, more or less, •and being more parti- cularly described as follows: BEGINNING at a 3/4-inch iron rod at the intersection of the South line of said Arthur McCormick Survey and the East line of a tract of land described in Deed dated April 28, 1952, from 1. Waldene Hine to Houston' Lighting & Power Company, recorded in Volume 2440, Page 455 of the Deed Records of Harris County, Texas; THENCE North 88 deg. 56 min. East, along the South line of said Arthur McCormick Survey, a distance of 3315.31 feet to the Southeast corner of this tract, which corner is also the Southernmost Southwest corner of a 52.809-acre tract of land described.in that certain Deed dated as of October 23, 1962, from the Carwin Company to The Upjohn Company, recorded in Volume 4908, at Page 59 of the Deed Records of Harris County, Texas, from which corner a 3/4-inch iron rod is set South 00 deg. 04 min. East, a distance of 0.47 feet; THENCE North 01 deg. 04 min. West, along the Southernmost West line of said Upjohn 52.809-acre tract, a distance of 405.03 feet to a point marked by a 1-1/4-inch iron pipe; THENCE South 88 deg. 56 min. West, along the Westernmost South line of said Upjohn 52.809-acre tract a distance of 828.26 feet to the Northernmost Southwest corner of said Upjohn 52.809-acre tract, and continuing a total distance of 3136. 11 feet to a point for corner in the East line of the aforesaid Houston Lighting & Power Company Tract; THENCE South 22 deg. 48 min. West along the East line .of the aforesaid Houston Lighting & Power Company Tract, a distance of 442.90 feet to the PLACE OF BEGINNING. SAVE AND EXCTPT from said 29 . 992 acres of land the following described tract of land; to-wit: From 3/4-inch rod at Southwest corner of Tract One, Volute 5185 , Page 102 , of the Deed Records of Harris County, Texas, 1963 July 11; THT NCE North 88° 56 ' East a distance of 2348. 51 feet; THENCE North 1° 4 ' West a distance of 35. 83 feet to the Southwest corner of fence surrounding drum butial pit for point of beginning; THENCE North 88° 56 ' East with said fence a distance -be 106 feet; • THENCE North 1° 4 ' lest with the east line of said fence a distance of 40 feet; THENCE South 88° 55 ' •rest with the north line of said fence a distance cf 106 feet; THENCE South 1° 4 ' East a distance of 40 feet to the point cf beginning, so :as to include said drum burial pit and the surrounding fence. • ,;-._c, U',7,JC} i TRACT III—B: That certain Lot, Tract or Parcel of land situated partly in the George Ross Survey, Abstract No. 646, and partly in the Arthur McCormick Survey, Abstract 46, containing 3.525 acres of land, more or less, and being more particularly described as follows, to—wit: BEGINNING at the point of intersection of the East line of said George Ross Survey with the South line of said Arthu: McCormick Survey; THENCE North 88 deg. 56 min. East, along the South line of said Arthur McCormick Survey, a distance of 352.4 feet to a point in the West line of the Houston Lighting & Power Company Tract referred to above in Tract No. III—A; THENCE North 22 deg. 48 min. East, along the West line of said Houston Lighting & Power Company Tract, a distance of 183.03 feet to a point for corner; THENCE West and parallel to the South line of said Arthur McCormick Survey, a distance of 773.38 feet to a point in the East line of State Highway No. 134 (Battleground Road) 1. THENCE South 19 deg. 05 min. West, along the East line of said road, a distance of 239.00 feet to a point for corner; THENCE North 89 deg. 30 .min. East, a distance of 428.6 feet to a point for corner in the East line of said George Ross Survey; THENCE North 00 deg. 35 min. West,. along the East line of said George Ross Survey, a distance of 54.8 feet to the PLACE OF BEGINNING. "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. ) 14 s j . • * ,_ .7::,:::::.../...i.':'......, •.: ...,-7- / I \, jf I w •r I t.• '.- i ?w I Vi • \•••;;\..:, H i • - • ,... ot at of • • • • .......___..._...._-....._ .. ,t.. ,.., <ysX37 -. • 1714' 1. ,..,.; ..A,. Tint .. 5. _S. ..,4 y.,._ '•. .,.. _�. :' /*/ + / + 1..`v.- • i• 3o�...s viz Al. .•\ Ay• 1~ i3 .I\ V • • ---- — --. i..oT SSL A "\.t.\:. 1 el - -. C Oh • • : eI i 1 • drib j 11'..-' • 1 IC 1 =� ► 1 f 1 1 II i • I/ i . i_i:11 11 i 1 1 . 1j ti , "__ Exhibit 8 (1 of 3) LUBRIZOL ADVANCED MATERIALS INC ACCOUNT 0410020050142 ADDRESS 550 INDEPENDENCE PKY S LA PORTE,TX 77571 OWNER LUBRIZOL ADVANCED MATERIALS INC TAX YEAR 2019 KEY MAP 539E TOTAL APPRAISED 8696950 VALUE LEGAL DESCRIPTION 1 TRS 1R 40 4E 4L 4M& 10& LEGAL DESCRIPTION 2 (IMPS ONLYXLAND 0056) LEGAL DESCRIPTION 3 TR 9D ABST 646 G ROSS LEGAL DESCRIPTION 4 ABST 46 A MCCORMICK MAIL TO LUBRIZOL ADVANCED MATERIALS INC PROPERTY TAX DEPARTMENT MAIL ADDRESS PO BOX 158 DEER PARK,TX 77536-0158 UPDATED JULY 2019 Zoom to 111w 0410020050112 giii 1111 lifill X Q rpN C7 ./0'0I//,/l/,/,,S t\1\ w search result;for 04100 // �!,/•//,,:://,," ///"://,,,,` \\�\ / 0 a 4///// I9/flt;Ii!%///f///I1/ y',Ca iI// //11! ! i ! I c ' — /qN ,, „/A,f//, /,,,/// N s / mai z� i ;1wa1 ► ❑X •)4% /1/ LUSR¢OLADVANCED MATERIALS INC / __ I ACCOUNT 1041002005014] I _ - __- - _ = __ - .-_- 550 • • ADDRESS 550 I • k / INDEPENDENCE I 7 PKY S / �/ ) LA PORTE,TX 77571 i /� OWNER LUBRIZOL / ADVANCED / / MATERIALS INC r . i: r / ITAXYEAR 12019 - --- - -- - -- --- - / j , KEY MAP 1 539E I 11/ 11 it P t \' ii;Yate — � -- _----- __-.___ --- ' -- `\� II / ' II r '',: II 41 r 1 t 1 ) II Ir r I Braskem I II I I "' yr II' � 1 I1 0 '1 1 1.11.1111111 Map dere©OpenStreetMep contributors,CC-BV-SA I M ,r Harris ri i , A,, _��-- - —_ -.r County ,lA_i _ �--_ _ - - Appraisal r - District , , ii / r` -_ �,vY/OPT • I r � . � �0 1' - 4" TC\kiS r r i -•'r r Geospatial or map data .' maintained by the Hares -r Coo my Appraisal Distnct r 's for informational purposes n e- y + +•! r -.r r t J'i prepared furorhbe suitable — 1 r r for legal,engineering,or _ -! b +�` S wneying purposes.It t° - f does not repre se nt an ....i I iit r aim mow,., on-the-ground survey and __ - _ only represents the Mill r �R� - — - ""' approximate location of �._it pro perty bou ndarias. r i r 1 lakftk, ilt r Ms \\, litata Zq , 0+ , { IIIII iiir.. '''''',%.,,..„. v, a ti ..._ - W �t=E +, ., ti 25 I 11I t - _... � �� .- - - .. AI. 4 ~ t � �---" 0 335 670 1,340 Feet 6.1 ~' — -- — ..__ _ ___ � 1-7--_--- �,. Date: 9/26/2019 Lubrizol Advanced Materials 550 Independence Pkwy "EXHIBIT C" Page 1 of 3 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, as well as the stacking of intermodal shipping containers. 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. a Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. a 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. a Minimum setback for sign construction shall be ten (10) feet from property lines. 2 . Intermodal shipping containers (including by not limited to freight and tank containers) shall be permitted to be stacked only to a maximum of two (2) containers in height in the said 100' strip. In those instances where shipping containers are placed within the said 100' wide strip, the screening requirements established in paragraph 3 immediately below shall apply. 3 . 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, 15 etc. to provide a thorough and effective visual screening "EXHIBIT C" Page 2 of 3 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 . 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 b and 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. d) In the case of land contiguous to Fairmont Parkway, in addition to the other requirements of these Rules and Regulations, Company shall dedicate to City by Plat a ten foot (10 ' ) wide pedestrian and bicycle easement, extending along Company's Fairmont Parkway boundary, within the fifty foot (50 ' ) landscape easement. The pedestrian easement shall not be within any pipeline facility, except for necessary crossings . 4 . 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. 16 "EXHIBIT C" Page 3 of 3 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. 5 . 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 . 6 . Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and City. 17 OF A A ' City of La Porte City Manager's Office SPE atm !# ', Established 1892 The City of La Porte embraces our heritage,community values and _ • opportunities,while enhancing the quality of life for our citizens. September 20, 2019 Lubrizol Advanced Materials Inc. g‘i c/o: DMA, Inc. 12710 Research Blvd,Ste 305 Austin,TX 78759 00 10 Pf ( Ladies/Gentlemen: The City of La Porte is pleased to offer your company an industrial district agreement for the twelve year term commencing January 1, 2020. Copies of the agreement are attached to this letter. After months of negotiations, this agreement represents a consensus reached between the City of La Porte and Industry Committee representatives. We at the City of La Porte feel that the continuation of industrial district agreements, which first commenced in the City of La Porte in 1958, is mutually beneficial to the City and the more than 140 companies with which it has such agreements. We request that your company mail or deliver the executed agreements to the City no later than Monday,September 30,2019. Additionally,if your company has an existing outside water or waste water agreement with the City,we will be reaching out to update those agreements. The expiration dates coincide with the IDA agreements and will expire on December 31, 2019. If you have any questions, please call the undersigned at 281-470-5012. Yours very truly, Corby D.Alexander City Manager 604 W.Fairmont Parkway La Porte,Texas 77571 II (281)470-5011 ■ www.iaportetx.gov