HomeMy WebLinkAboutO-2020-IDA-34 Lycra Company ORDINANCE NO. 2020-IDA-34
AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE, TEXAS OF
AN INDUSTRIAL DISTRICT AGREEMENT WITH THE LYCRA COMPANY, A KANSAS
LIMITED LIABILITY COMPANY, 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 1The LYCRA Company, a Kansas limited liability company 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 1' 'OR , TEXAS
A
\Louis - . Rigby, M.
ATTEST:
Le: oodward, City Secretary
APPROVED AS TO FORM:
Clark T. Askins, Assistant City Attorney
NO. 2020 IDA:tla> '
STATE OF TEXAS '
COUNTY OF HARRIS
INDUSTRIAL DISTRICT AGREEMENT
This AGREEMENT made and entered into by and between the CITY
OF LA PORTE, TEXAS, a municipal corporation of Harris County,
Texas, hereinafter called "CITY., and The LYCRR C,Omixkin LL .
a i mittd IiQbi(►t►l Cor►1Qanu ci on, hereinafter
called "COMPANY" , J
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:
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
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
•
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
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
T ST: i-) CITY O ,•% E, " .S
-it,
41
Q�
BY: AgriCit Secretary Lpuis R. Rigb ff
Mkyo
APPROVED:
/. BY: 4 �y
Knox W. Askins , �'*- C. . Alex.nder
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
1Ea ASOS
STATE OF TEXAS '
COUNTY OF 5- '
SCctci .�:cam-.
This instru nt was ckno ledged before on then day of
-1G M b(r, 2 01 L e'by o frorri S rm , " i req re C"f�'S*Sec rar8_
of -�� LN/Cefa- c en, a /-irxi4rc� oe e a-on,
on behal of said entrty.) ` LLc LA a h; r. Pc+-ft
Notary Public, State of xei�s. A&C}S
SUSAN RANDALL
NorARYA NOTARY PUBLIC
STATE OF KANSAS
=� �= MY COMMISSION EXPIRES
ANSAE
11
"EXHIBIT A"
(Metes and Bounds Description of Land)
13
Legal Description
Being a 24.2326 Acre tract out of the Enoch Brinson Survey in Harris County, Texas and being a
portion of a called 792.154 Acre tract described in a Deed to Dupont recorded in Volume 1318,
Page 364 and a portion of a called 40.0 Acre tract described in a Deed to Dupont recorded in
Volume 1318, Page 444, of the Deed records in Harris county, Texas, said 24.2326 Acre tract
being more particularly described by metes and bounds as follows:
COMMENCING at a 1" brass rod found designated as plant Control Point 1 (plant grid
coordinates N = 4400.00, E = -3580.00), from which a 1" brass rod found designated as plant
Control Point 2 (plant grid coordinates N = 3799.83, E = -3850.00) bears South (basis of
bearings) 600.20 feet in the centerline of Sixth Street, a Dupont Plant road; thence
N.09°28'41"W., a distance of 300.17 feet to a 6 feet high chain link perimeter fence corner on
the north side of Avenue A, a Dupont Plant road and the POINT OF BEGINNING, thence
N.00°20'48"E., a distance of 319.54 feet to a found chain link fence post; thence
N.87°45'22"W., a distance of 70.20 feet to a found chain link fence post; thence N.00°20'48"E.,
a distance of 30.00 feet to a found chain link fence post; thence S.87°45'22"E., a distance of
70.20 feet to a found chain link fence post; thence N.00°20'48"E., a distance of 338.41 feet to a
found chain link fence post;thence S.87°54'06"E., a distance of 230.31 feet to a found chain link
fence post; thence S.82°14'08"E., a distance of 141.70 feet to a found chain link fence post;
thence S.76°34'10"E., a distance of 109.64 feet to a found chain link fence post; thence
S.71°38'45"E., a distance of 109.24 feet to a found chain link fence post; thence S.60°54'46"E.,
a distance of 103.71 feet to a found chain link fence post; thence S.57°46'14"E., a distance of
153.15 feet to a found chain link fence post; thence S.46°41'07"E., a distance of 99.40 feet to a
found chain link fence post; thence S.38°44'02"E., a distance of 133.63 feet to a found chain link
fence post; thence S.44°30'47"E., a distance of 58.54 feet to a found chain link fence post;
thence S.19°05'30"E., a distance of 70.23 feet to a found chain link fence post; thence
S.10°46'24"E., a distance of 50.07 feet to a found chain link fence post; thence S.00°36'16"E., a
distance of 279.56 feet to a found chain link fence post; S.20°46'08"E., a distance of 84.21 feet
to a chain link fence post; thence S.15°28'25"E., a distance of 109.65 feet to a found chain link
fence post; thence S.14°39'37"E., a distance of 119.38 feet to a found chain link fence post;
thence S.88°42'40"W., a distance of 73.27 feet to a found chain link fence post; thence
S.07°29'45"E., a distance of 19.35 feet to a calculated point in a 6' chain link fence; thence
West, a distance of 383.45 feet to a calculated point; thence South, a distance of 149.36 feet to a
calculated point; thence West, a distance of 200.49 feet to a calculated point; thence North, a
distance of 26.20 feet (L1) to a calculated point; thence West, a distance of 23.00 feet (L2) to a
calculated point; thence South, a distance of 26.20 feet (L3) to a calculated point; thence West, a
distance of 16.50 feet (L4) to a calculated point; thence North, a distance of 24.40 feet (L5) to a
calculated point; thence West, a distance of 20.50 feet (L6) to a calculated point; thence South, a
distance of 24.40 feet (L7) to a calculated point; thence West, a distance of 34.51 feet (L8) to a
calculated point; thence North, a distance of 209.36 feet to a calculated point; thence West, a
distance of 272.00 feet to a calculated point; thence North, a distance of 401.62 feet to a
calculated point; thence West, a distance of 105.65 feet to the POINT OF BEGINNING.
Containing 1,055,730 square feet or 24.2326 acres, more or less.
KC-1176613-1
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"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.
• 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 . 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
"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