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HomeMy WebLinkAboutR-1966-50 - . . . .- RESOLUT ION ~ 6-t5"6 WHEREAS, the City of La Porte, in keeping with its long established policy of endeavoring to attract industry and expand its growth, has entered into an agreement dated December 22, 1958, with certain industries named therein which agreement wasfuereafter amended by a subsequent agreement between the City and other indus- tries dated December 30, 1961, to which agreement reference is here made; and WHEREAS, further pursuant to said policy the City of La Porte has been negotiating for the past several years with said industries named in said agreements and with other industries in an effort to amend and extend the duration of the said agreements; and WHEREAS, the City of La Porte and the Celanese Corporation of America have reached an agreement on the terms of a new contract in keeping with the City policy of endeavoring to attract industry and expand its growth, a copy of said contract being attached here- to and marked as IIExhibit All; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LA PORTE, TEXAS: That the Mayor, the Commission and the Clerk of the City of La Porte, Texas, be, and they are hereby, authorized and empowered to enter into and execute on behalf of the City of La Porte, Texas, the contract set forth in II Exh ibit A", with the C~~~se Corporation of America. PASSED AND APPROVED, this the r~ day of January, 1966. ATTEST: La Porte, . ~AA~'~##~r .' Ci ty Clerk of the Ci ty f La Porte, Texas . . . . e e INDUSTRIAL AGREEMENT THIS AGREEMENT entered into between the City of La Porte, Texas, a municipal corporation, hereinafter called "City", and Celanese Corporation of America, a Delaware cor- poration with a permit to do business in Texas, hereinafter called "Company", WIT N E SSE T H: ---------- WHEREAS, City has a long-established policy of en- deavoring to attract industry and expand its growth, thereby enhancing the economic stability and growth of City, pur- suant to which City entered into an agreement dated December 22, 1958, with Company and certain other industries therein named, which agreement was thereafter amended by a subsequent agreement between City, Company and said other industries dated December 30, 1961, to which agreements reference is here made; and WHEREAS, further pursuant to said policy City has en- acted Ordinance No. 7~' designating a part of the area located in its extraterritorial jurisdiction as an industrial district to be known as "The Battleground Industrial District of La Porte", hereinafter called the "District", such ordinance being in compliance with the provisions of Article 1, Section 5 of the "Municipal Annexation Act", H.B. 13, Acts of the 58th Legislature of the State of Texas, Regular Session, 1963; and WHEREAS, Company is the owner of that certain land described in a deed to it from Phillips Petroleum Company dated April 5, 1956, recorded in Volume 3133, pages 361 et seq. of the Deed Records of Harris County, Texas, to which reference - . . . e e is here made, upon which Company has constructed an in- dustrial plant, a portion of which is situated on land annexed to the City by City's Ordinance No. 637, to which reference is here made, and a portion of which land and plant lies within the District; and WHEREAS, City desires to encourage the expansion and growth of said industrial plant of Company within said District as well as within the area annexed to City by said Ordinance No. 637, and for such purpose desires to enter into this agree- ment with 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 herein contained, and pursuant to the authority granted under the Texas M~nicipal Annexation Act referred to above, the parties hereby agree as follows: (1) City covenants, agrees and guarantees that during the term of this agreement hereinbelow provided, said District shall continue and retain its extraterritorial status as an industrial district at least to the extent that the same covers the land lying therein belonging to Company which was conveyed to it by the above described deed, and City does further covenant, agree and guarantee that such industrial district to the extent that it covers said land belonging to Company lying within said District shall be immune from annexation by City during the term hereof, and that all of said land and property of Company, both that heretofore annexed and that lying within said District, shall not have extended to it by ordinance any rules and regulations (a) governing plats and -2- . . . . e e subdivision of land, (b) prescribing any building, elec- trical, plumbing or inspection code or codes, or (c) at- tempting to exercise in any manner whatever control over the conduct of Company's business thereon. (2) Company agrees that, as a paYment in lieu of taxes on the property of Company within the District, it will pay to City on or before December 31 in each year during the term hereof an amount reached by first ascertaining the fair market value of such property of Company within the District, by using as the basis therefor the fair market value estab- lished by Harris County in fixing its ad valorem tax assessment for that year on the property of Company which lies within the District, then applying to the fair market value so ob- tained the percentage ratio applied to the fair market value of property which is then used by City in fixing ad valorem tax assessments on property within the City, and then applying to the figure thus obtained eighteen percent (18%) of the tax rate of City for that year. For the purpose of computing "fair market value" hereunder, and for such purpose only, it is agreed that presently the ratio of ad valorem tax assessment used by Harris County is twenty percent (20%) of the fair market value of property and that presently the ratio of ad valorem tax assessment used by City is forty-two percent (42%) of the fair market value of property. Any change in such ratios used by Harris County and/or the City on or after January 1, 1966, shall be reflected in all future computations hereunder. In the event Company elects to protest the valuation set on its said properties by Harris County for any year or years during the term hereof, then nothing in this agreement -3- e e shall preclude such protest and Company shall have the right to take all legal' steps desired by it to reduce the ~ same, but at such time as the protested Harris County tax valuation on said property of Company has been finally de- termined, 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 addi- tional amount due hereunder based on such final valuation. Even though Company does protest the valuation set on its said properties by Harris County, Company will pay to City on or . before the time therefor hereinabove provided the total amount of the payment in lieu of taxes which would be due by Company to City in accordance with the foregoing provisions of this paragraph (2) on the basis of renditions filed by Company with the Tax Assessor of Harris County for that year. Should the City Commission, by resolution duly adopted by a majority of its members within thirty (30) days after the ad valorem tax assessment on Company's said property within the District is fixed by Harris County for any year during . the term hereof, determine that such assessment is more than twenty per cent (20%) less than the assessment for that year by Harris County of comparable properties within the District, the City may question Company's said assessment for the pur- pose of this agreement by so notifying Company in writing. Such written notice shall be given Company within six (6) days after the adoption of such resolution by registered United States mail addressed to Company at: . . . Celanese Corporation of America 522 Fifth Avenue New York, N. Y. 10036 -4- e e with copy thereof sent in the same manner addressed to Company at: . Celanese Plastics Company, a Division of Celanese Corporation of America P. O. Box 1000 Deer Park, Texas 77536 Attention: ,Plant Manager and the same shall be accompanied by a true copy of such resolution. If Company and City then do not agree on an assessment, City may within three (3) months after the de- livery of such notice petition the District Court of Harris County for a declaratory judgment to be tried as other civil causes in which City must establish by a preponderance of the . evidence that the assessment of Company's said property for that year is in fact more than twenty percent (20%) less than the assessment by Harris County for that same year of comparable properties. If final judgment is entered in any such suit de- claring Company's said assessment to be more than twenty per- cent (20%) less than said assessment by Harris County of com- parable properties and determining in dollars the proper assessment that should have been placed on Company's said property by Harris County for the year in question, then the . assessment determined by said judgment shall be used for the purpose of calculating the amount to be paid City in lieu of taxes in accordance with the provisions of paragraph (2) above. If final judgment entered in any such suit does not find said assessment on Company's property to be more than twenty percent (20%) less than said assessment by Harris ,... --... . County of comparable properties within the District, then the assessment originally established for that year shall be used for the purpose of paragraph (2) above. The costs ~ of any such suit, exclusive of attorney's fees, shall be -5- , . . . e e borne by the losing party. (3) This Industrial Agreement shall extend for a term beginning on the first day of January, 1966, and con- tinuing thereafter until December 31, 1972, unless extended for an additional period or periods of t~e as provided by the Texas Municipal Annexation Act upon mutual consent of the parties; provided, however, that in the event this Agree- ment is not so extended for an additional period or periods of time on or before August 3l, 1972, the agreement of the City not to annex property of Company within the District shall terminate. In this connection, City hereby expresses its belief that such industrial district agreements are con- ducive to development of existing and future industry, are to the best interest of all citizens of this City, and City hereby encourages future City Commissions to enter into future industrial agreements and to extend for additional periods permitted by law this industrial agreement upon the request of Company, its successors or assigns. (4) Contemporaneously and effective herewith, Company and the other industries which were parties to the above de- scribed agreement dated December 30, 1961, which amended and carried forward said agreement dated December 22, 1958, have entered into a further agreement with City terminating said prior agreements effective as of the effective date hereof. This Agreement shall inure to the benefit of and be binding upon City and Company, its assignees, successors, 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 -6- , . . . ~ , ." e e of the property belonging to it within said District, and the agreements herein contained shall be held to be covenants running with the land described in said deed dated April 5, 1956, for so long as this agreement or any extension thereof remains in force. ENTERED into this 31st day of December, 1965. ATrE~~ 0-.; .Secretary ATTEST: . "'~ y.,-,~' A ;t~"_.2 ""- ..R#h pi- City 'ecretary - ", f:~ AP CELANESE CORPORATION OF AMERICA ~~.~ Vice President By CITY OF LA PORTE . ~tP~ By / ayor Ci Y Comm ssioner ~~L~~_ ~i..ioner ~~~/~,~~~ City Commissioner . City Commissioner Lrr->aA~~-.J, ~.P'#"-Y City Tax As essor -7-