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HomeMy WebLinkAboutIDA-349 - Southwest Chemical Services, 1979 ~" ' . . - . ;. .. e NOTICE: THIS CONTRACT IS SUBJECT TO ARBITRATION UNDER THE TEXAS GENERAL ARBITRATION ACT, ARTICLE 224, ET. SEQ., REVISED CIVIL STATUTES OF TEXAS THE STATE OF TEXAS S S COUNTY OF HARRIS S S CITY OF LA PORTE S 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 SOUTHWEST CHEMICAL SERVICES INCORPORATED e , a Del aware corporation, hereinafter called "COMPANY", W.I T N E SSE T H: That WHEREAS, it is the established policy of the City Commission of the City of La Porte, Texas, ~o 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 Ci ty and its environs by attracting the location of new and the expansion of existing indus- tries therein, and such policy is hereby reaffirmed and adopted by this City Commission as being in the best interest of the City and its citizens~ and WHEREAS, Company is the owner of a certain tract(s) of land more e particularly described in the Deed, Records of Harris County, Texas, in the following Volume and Page references, to-wit: ElC";~:+ " A It e (Revised: 0-79) e e e e Ill" ,.. - - Industrial District Agreement - 2 upon which tract(s) Company has either constructed an industrial plant(s) or contemplates the construction of an industrial plant(s); and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas," and Ordinance No. 842, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Indus- trial District of La Porte, Texas," hereinafter collectively called "District," such Ord inances being in compl iance wi th the Jl.1unicipal Annexation Act of Texas, Article 970a, Vernons Annotated Revised Civil Statutes of Texas; and WHEREAS, City desires to encourage the expansion and growth of industrial plants wi thin said Distri<;:t and for such purpose desires to enter into this Agreement wi th Company pursuant to Resolution adopted by the City Commission 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 authori ty granted under the Municipal Annexation Act and the Ordi- nances of City referred to above, City and Company hereby agree with each other as follows: I. Ci ty covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provi- sions of this Agreement, said District shall continue and retain its extraterritorial status as an industrial district, at least to the extent that the same covers the land described above and belonging to Company and its assigns, and unless and until the status of said land, or a portion or portions thereof, as an indust'rial district may be changed pursuant to the terms of this Agreement. Subject to e e e e " . e Industrial District Agreement - 3 the foregoing and 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 wi thin said District and not now wi thin the corporate 1 imi ts of City, or to be annexed under the provisions of Article II hereof, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, and that all of said land, includ ing that which has been heretofore or which may be annexed pursuant to the later provisions of this Agreement, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, it is agreed that Ci ty shall have the right to institute or intervene in any judicial proceeding authorized by the Texas Water Code or the Texas Clean Air Act to the same extent and to the same intent and effect as if all land covered by this Agreement were located within the corporate limits of City. II. (A) A portion of the hereinabove described property has hereto- fore been annexed by City. Company has filed ,with City, coincident with the execution hereof, its petition to City to annex an addi- tional portion of the hereinabove described property, to the end that twenty-five per cent (25%) of the total value of the land and improvements hereinabove described shall be annexed to City. Com- pany agrees to render and pay full City ad valorem taxes on such annexed land and improvements, and tangible personal property. (1) For tax years 1980 and 1981, Company also agrees to render and pay an additional amount "in lieu of taxes" on Company's land, improvements, and tang ible personal property in the un- e e e e It e . . . Industrial District Agreement - 4 annexed area to the end that Company's payment of taxes on the annexed area, combined with its payment of "in lieu of taxes" on the unannexed area, will equal forty-five percent (45%) of the amount of ad valorem taxes which would be payable to Ci ty by Company if all of the hereinabove described property had been within the corporate limits of City. (B) The Texas Property Tax Code (S. B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979) will be effective for 1982 and subsequent years hereunder. Under the terms of said Act, the appraised value for tax purposes of the annexed portion of land, improvements, and tang ible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said District has no authority to appraise the land, improve- ments, and ,tang ible personal property in the unan.nexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, for 1982 and subsequent years under this Agreement, the parties agree that the appraisal of the, land, improvements, and tang ible personal property in the unannexed area shall be conducted by City, at City's expense, by an independent appraiser of City's selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) land, improvements, and tangible personal property. Company agrees to render and pay full. Ci ty ad valorem taxes on such annexed land, improvements, and tangible per- sonal property. ~( 1) For tax year 1982 and thereafter, Company also agrees to render to City and pay an amount "in lieu of taxes" on Company's land,. improvements, and tang ible personal property in the un- annexed area equal to forty-five percent (45%) of the amount of ad valorem taxes which would be payable. to City if all of' the hereinabove described property had been within the corporate ~.. . e e e e " e e , . . Industrial District Agreement - 5 limits of City and appraised by City's independent appraiser, reduced by the amount of City's ad valorem tax on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. Nothing contained in Article II (B) (1) shall ever be construed as in derogation of the authority of the Harris County Appraisal District to establish the appraised value of land, improvements, and tangible personal property in the annexed portion', for ad valorem tax purposes. III. This Agreement shall extend for a period beginning on the 1st day of January, 1980, and continue thereafter until December 31, 1986, unless extended for an additional period or periods of time upon mutu~ al consent of Company and City as provided by the Municipal Annexation Act; prov ided, however, that in the event this Agreement is not so extended for an additional period or periods of. time on or before August 31, of the final calendar year of the term hereof, the agree- ment of Ci ty not to annex property of Company wi thin the District shall terminate. In that event, City shall have the ri~ht to com- mence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and pro- visions of this agreement, and in such event ~ompany agrees that if the Texas Municipal Act, Article 970a (V.A.T.S.), is hereafte~ amended or any new legislation is enacted by the Legislature of the State of Texas wh ich 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 exists ..on the date of 1 e e e Industrial District Agreement - 6 e execution of this Agreement. This Agreement may be extended for an addi'tional 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 wi thin the District of which it is a part. In this connection, City hereby expresses its belief that industrial district agreements of the kind made herein are conducive to the development of existing and future indus- try and are to the best interest of all citizens of City and encour- age future City Commissions to enter into future industrial district agreements and to extend for additional periods permitted by law this Industrial District Agreement upon request of Company or its assigns; provided, however, that notqing herein contained sha.ll be deemed to obligate either party hereto to agree to an extension of this Agreement. IV. Company agrees to pay all ad valorem taxes, and ~ll,lIin lieu of taxes" payments hereunder, to City on or before December 31 of each year during the term hereof. It is agreed that presently the ratio of ad valorem tax assessment used by City is eignty per cent (80%) of the fair market value of property. Any change in such ratio used by City shall be reflected in any subsequent computations hereunder. This Agreement shall be subject to all provisions of law relating to e determination of value of land, improvements, and tang ible personal property, for tax purposes (e.g., rendition, assessment, Board of Equalization procedure, court appeals, etc.) for purposes of fixing and determining the amount of ad valorem tax payments, and the amount of "in lieu of tax" payments hereunder, except as otherwise provided in Articles II and V hereof. V. , (A) In the event Company elects to protest the valuation for -e tax purposes set on its said properties by Ci ty or by the Harris e e e Industrial District Agreement - 7 County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove- .... ..... ~ described property which would be due by Company to City in accord- e ance with the foregoing provisions of this Agreement on the basis of renditions which shall be timely filed by Company with City's Tax Assessor-Collector or with both the City and the Harris County Appraisal District (as the case may be) for that year. When the City or Harris County Appraisal District (as the case may be) valua- tion on said property of Company has been so finally determined, either as the result of final judgment of a court of competent juris- diction or as the result of other final conclusion of the controversy, then wi thin thirty (30) days thereafter Company shall make payment to City of any additional payment due hereunder based on such final valuation. (B) Should Company disagree wi th any appraisal made by the independent appraiser selected by City pursuant to Article II(B) e above (which shall be given in writing to Company), Company shall, within twenty (20) days of receiving such copy, give written notice '" to the Ci ty of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should Company give such notice of disagreement, Company shall e also submit to the City with such notice a written statement setting ! e e . e Industrial District Agreement - 8 e forth what Company believes the market value of Company's herein- above described property to be. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agree- ment 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 ~gree to submit the dispute to final arbitration as pro- vided in subparagraph (1) of this Artjcle V(B). Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" 'payments which would be due hereunder on the basis of Company's valuations rendered and/or submitted to City by Company hereunder. (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 Dis- trict of Texas appoint the third -arbitrator who, (as the "Im- partial Arbitrator") shall preside over th~. arbitration pro- ceeding. The sole issue to be determined in the arbi tration 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 rele- vant 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 e e !" . e e Industrial District Agreement - 9 e available under the Texas General Arbitration Act (Articles 224-~38, Vernon's Annotated Revised Civil Statutes of Texas). Costs of the arbitration shall be shared equally by the Com- pany and the City, provided that each party shall bear its own attorneys fees. (C) Should the provisions of Article II (B) of this Agreement become impossible of enforcement because of (1) the invalidity or unenforceability of the Texas Property Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979), or any relevant provision thereof, or (2) because of any material delay or failure to act on the part of the Harris County Appraisal District, then and in any of such events, all payments under this Agreement shall be governed by the provisions of Article II(A) hereof; anything to the contrary in this Agreement notwithstanding. VI. City shall be entitled to a tax lien on Company's above-described property, all improvements thereon, and all tang ible personal prop- erty thereon, in the event of defaul t in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and \'lhich shall be collectible by City in the same manner as provided by law for delinquent taxes. VII. e Company agrees to provide to City at Company's expense, a survey plat and field note description of the land and improvements which, Company petiti~ns to be annexed in accordance with the provisions of Article II above. Such annexation tract shall be contiguous to a point on the existing corporate iimits of La Porte. In the event of failure of Company to file either such petition, or such description, Ci ty shall have the right by notice in writing to Company to cancel and terminate this Agreement. e , 4. . .' ... ; h e e e Industrial District Agreement - 10 VIII. This Agreement shall inure to the benefit of and be binding upon Ci ty and Company, and upon Company t. s successors and ass igns, aff il i- ates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntar- ily or by operation ~f 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. - IX. If City enters into an Agreement with 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. ENTERED INTO thi.s 15th day of August, 1979. -- SOUTHWEST CHEMICAL SERVICES INCORPO~O~PANY) BY~"r:> ~ "- harles P. LeW1S, Vlce President-Finance ^TTES~_ Se~retary - . "':'.; ..~..... . ... .' ~ " . e e e e . T . Industrial District Agreement - 11 ATTEST: dc~v)~iA~/ rCl y C rk - - - - ...... . ..r-" ..... _ -- ":-- ;;;;Y;SEL KNOX W. ASKINS, City Attorney' 702 W. Fairmont Parkway P. O. Box l218 La Porte, Texas 77571 Telephone: (713) 471-1886 '=t-~~ ATTORNEY FOR COMPANY CITY OF LA PORTE By~ ~-~ J. J. Meza, Mayor ,. ~ COmmlSSl.Oner ~ Clty Comrnl sioner ~ ~.~ ~ /_ C. City Commissioner (Revised: 8-79) ~ e e e e - EX ;-1/13 /7 ,f j) " 2, The lalltl ,crern'd III ill fhis p'lliry is ill COlloly. Tl'~as alld i'; d,'q'ril'l,d :'\ ",'II'l\\'~' lIa [1- is (Tract I-A) Ten (.1.0) ;)cre:; of LlIld Ollt of alld part of Lots 21 Clnd 22 of the Str;lllge Suhdivision in' the Enoch Brinson Survey. Ahstract 5, located in 11;ln-is County, TexCls. ,lccord'lng to -the map or plnt thereof recorded in Volume 75, l'ilgC 22' of the Decu Reconls of lIarris County, Texas, SAVE AND EXCEPT: it 0.003 Clcre tract conveyed to the State of Texas, said property being more particularly dc~cribed- in deed filed under Harris County Clerk's Fiie N~. C-2l.0383, and also being recorded in Volume 6226, Page 228 of the Deed Records of lIarris County, Texas, <:1nd being more particularly described by metes and bOlll1ds in Exhibit IIA" at t<:1chcd hereto and made a part hereof: (Tract I-B) A tr<lct of l,1nd beinr. 0.7 ll, acre out of the Enoch I3ringon SlJi:vey, Ahs tract 5, lI:n-ris, County, TeX,lS and being more particulQrly descrihed by metes and bounds on Exhihit IIA" attached hereto and made apart hereof: " (Tract I-C) A trClct of land contni.ning 0.l,303 Clcres out of Lots 21 Clnd 22 of. the Strang Subdivision in the Enoch Brinson Survey, Abstract 5,"an <:1ddition in lI<:1rri,5 County, Tex;)s, according to the map or plat thereof recorded in Volume 75, PClge 22 of the Oeed ~ecorcls of Harris County, Texas, and being more pnrticularly descri.bed by metes iJnd bounds on Exhibit "A" attached hereto and made a part hereof: ' - , .".. ....7 <71::Y:70}/' . . I I "/{/ , ,"/ ./' /'. I..... ... '/,. /~:.. . Tl'\~' (~\\'nt'l 1.'1:I,i:>'. V:dlll ();il\' If' ~dl,"ll\k n '\1111 '. '.' \.' , , ~ e e e e. 'e .. . , EXHIBIT "A" TRACT I-A Ten (10) acres of land in Lots 21 and 22 of the Strang Stilidivision in the Enoch Brinson Survey~ Abstract No.5, Harris County, Texas, according to the plat thereof recorded in Volume 75, Page 22 of the'Harris County' Deed Records, being part of the land conveyed by Olive H. Good to E. J. Klein, et aI, by deed dated November 10, 1941, recor'dp.d inVoltunc l196, Page 725, .of the D,eed Records of Ha,r.ri5 County, 'l'CX<lS, su:id 10 acres being mote partic~l~rly described AS fol10W9: COHMENCING at an iron pipe in the south line of Lot 21 in said subdi- vision located West 304 feet from the southeast corner of said Lot 21, said pipe being also at the southwest croner of an 8.504 acre tract conveyed by E. J. Klein, et aI, to the Houston Lighting and Power Compuny by deed dated July 29, 1953, and recorded in .Volume 2643, Page 151, .of the Deed Records of Harri's County, Texas; THENCE N. 0 deg. 07 min. W. 41 feet along the west line of said 8.504 acre tract to an iron rod at the PLACE OF BEGINNING: THENCE N. 0 deg. 07 min. W., 790 feet along the west line of said 8.504 acres and the west line ~f an easement granted to the T. & N. O. R. R. Co. by the Houston Lighting and Power Company, to an iron rod in the south line .of Strang Road based on a width of 60 feet; THENCE West 551.39 feet along the south line of said road to an iron rod; THENCE S'. 0 deg. 07 min. E. 790 feet to an iron rod; THENCE East 551.39 feet to the' PLACE OF BEGINNING. f!!~ .- . I . . . .~ I ~ e e e. e e l:XIlI13I'f "1\" ',Il....'-' 1- IS BEING a 0.714 acre tract of land out of an 'J 822 .1511-acre-t-~ac-t~o-f-rand-(rcscribed in deed date'd Marc~ 29, 1944, from H. C. Cockburn to E. I. du Pont de Ne:nours and Conpc..ny,. recorded in Volune 1318; page 36~, Harris County Deed Records, said 0.714 acre .tract of land bei~g no~e particularly described as follows: , , BEGINNING at the ooint of intersection of the north line of said 822:15~-ac~e t~2ct ,of land with' the northeas terly line of the ri~ht of '.'ray or" Te'xas State High~ay No~ 225 a~ established by deed dated June 3, i966, and r~cordccl in Volu:Ti~ 6:151, pase II:;, Harris County Dc'eel H~c'ord~, ~2..i.d .point b~illG lnar~{cci by a 5/8-inc,n iron rod) and running. the,nce ~ " . In an easterly direction along 'the north line of said 822.154-acre tract' of lang., a distance o.f IllS. 50. feet to a point for' corner in the "lest line of a lID-foot ,-:ide easer.:ent gre.nted to Houston Lighting & Power'Co~~any by docu~e~t dated June 6, 1966~ and recorded in'Volu~e 7033; paGe 197, Harris County Deed ~ecord~; ~h~~ce '.' S' 0 u tOn '1 n 0 1 ~ I ::; 0 I! ::' ...' Co .. ":l 1 0 r - ... on ~ \., n. 6 t 1" n l"> .. 1...."'" -. ',.; ~c....,Ju '""""_ ...&1""'-.. t...-.. _._ __ of" sa.id f!o~ston I..i~:ltin;; & Po..,~:-' Co~~a!1.yts l'IO-foot wide ea9c~cnt 2 di~~~ncc of 14~.72 feet. to a point. for Ccrn~r in the north~~~te:-ly line of the ri~ht of '.'ay of Tr."("2s C:""l~'" i~t,"n"'"'I" ~_!o """5' t'n"'n-n . \,;. ". ".... ... ".. .. l.: .. .I. ... ......'" .. ._ ,..... _ '-- '- ..' . north 700 13' 12" HE'st along said nort~- easterly line of the r'ir;ht of "lay of Tey.a~ State Highway No. 225 a distance of ~~2.43 feet to the point and place o~ be~lnnlng. fffi,d ~ .... y , \ \1': 0' ~- ~.. c ., ", ~'~,: II., ,\oIor . \ i \ i i I 'I , ; I ; , .. . I r.._ ....,.' ,. . -e' e . . \ -I e EXHIDIT "J\" II(.~a 1- <... . Tract OI land' consisting of 0.4304 acres being- 011t of Lob; ~l\l,'cl1 ty-onr. (21) and 1'1,,,,, t y ~ t;,o (22) or .1IlC :; tra 11[: SUlJd i v is i 01\ . ",; pCt- In" P or i'L:.! of said subdivision recorded in Vol. 75, Vg-. 22, of the Deed Recore!:> c H:ti"ris County, Texas, in the Enoch Briz:1son Survey, Abst. ~5, in.Harr:i.!..i County, Texas, and more particular,l)" cicscribec by metes and bounds as follo~s:' , BEGIN'XING :lot a Doint for corner'on the. i-iortheasterly line of State Hit::l!way 225,. 370.00 fcct wide, said bcg-inning .ccrncr bcin::; located. S 68: deg. 5"5' 03" E" a distance of 231'1.78 feet" from a i inch iron r(l In:1rking. the intersection of the ;;orthe::\sterlY line of St:1.tc Hi~hw6.y 22 370.00 icet wide, arid the South line of Strang Road, GO feet wiele; THENCE S G9 dc~. 55 I .03 ",:E, ulon:; th.c North~::lsterly line of Sta te ' . Hi~hw:1Y 225,' 370.00 [ec.t 'Wi'ct,e';" a distance of l19.~O feet to n point :fo - ' corner on the South line' of the' aforesaid Lot 22, on the South line of ~ Str~nG Subdiv~sion; , r:8' t 57'" E 'alonrr the South line of Strang Subdivi~ .- '.r!t!;:NCE S S 9 cleg.;J, co _ . .' . d. t. f 401 22 feet to a pOJ.nt fox corner,. . ~3ion, a :1.S :mce 0 06' 05" W a distance of 41.00 feet to a' poin-t; for THENCE..N O. deg. . , . .. I. corner;_ 57" 11 a d~ s+"'nce of 513.39 feet -to PLACE OF., ' THE~CE N 89 deg. 58' i" ~ ~U BEGINNING. W:? / -- .... .. e