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Home My WebLink AboutR-1966-51 . e RESOLUTION 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 was thereafter 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 Phillips Petroleum Company 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 "Exhibit A"; . 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 "Exhibit A", with the Phillips Petroleum Company. PASSED AND APPROVED, this the -:5'fi7dV day of January, 1966. ATTEST: . ~~A:P'~.-J" ~tJ~"y . City Clerk of the City 0 La Porte, Texas . , I . -i . -t INDUSTRIAL AGREEMENT THIS AGREEMENT entered into between the City ot LaPorte, Texas, a municipal corporation, hereinafter called "City", and Phillips Petroleum Company, a Delaware corporation with a permit to do business in Texas, hereinafter called "Phillips II , WITNESSETH: WHEREAS, City has a long-established policy ot endeavoring to attract industry and expand its growth, thereby enhancing the economic stability and growth of City, pursuant to which City entered into an agreement dated December 22, 1958, with Phillips and certain other industries therein named, which agreement was thereafter amended by a subsequent agreement between City, Phillips and said other industries dated December 30, 1961, to which agreements reference is here made; and WHEREAS, further pursuant to said policy City has enacted Ordinance No. 729 designating a part of the area located in its extraterritorial juris- diction as an industrial district to be mown as "The Battleground Industrial District of LaPorte", hereinafter called the "District", such ordinance being in compliance with the provisions of Article I, Section 5 ot the "Municipal Annexa- tion Act", H.B. 13, Acts of the 58th Legislature of the State of Texas, Regular Session" 1963; and ~, Phillips is the owner of those certain lands described in deeds dated April 4, 1956, recorded in Volume 3132, Page 541, and dated May 12, 1959, recorded in Volume 3700, Page 487 ot the Deed Records ot Harris County, Texas, . to which reference is here made, a portion of which land is annexed to the City by City's Ordinances Nos. 637 and 700, to which reference is here made, and a portion ot which land lies within the District; and . WHEREAS, City desires to encourage the industrial. development of said land owned by Phillips within said District as well as within the area annexed to City by said Ordinances Nos. 637 and 700, and tor such purpose desires to enter into this agreement with Phillips pursuant to resolution adopted by the City Council ot said City, and recorded in the official minutes of said City. NOW, THEREFORE, in consideration of the premises and the mutual agreements ot the parties herein contained, and pursuant to the authority granted under the Texas Municipal Annexation Act referred to above, the parties hereby agree as follows: ., e . r .; e e (1) City covenants, agrees and guarantees that during the term ot 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 Phillips which was conveyed to it by the above described deeds, and City does turther covenant, agree and guarantee .that such industrial district to the extent that it covers said land belonging to Phillips lying within said District shall be irmnune from annexation by City during the term hereof, and that all ot said land and property ot Phillips, both that heretotore annexed and that lying within said District, shall not have extez:1ded to it by ordinance any rules and regulations (a) governing plats and subdivision of land, (b) prescribing any building, electrical, plumbing or in- spection code or codes, or (c) attempting to exercise in any manner whatever con- tro1 over the conduct of Phillips' business thereon. (2) Phillips agrees that, as a payment :in lieu ot taxes on the property of Phillips within the District, it will pay to City on or betore December 31 in each year during the term hereot an amount reached by first ascertaining the fair market value of such property of Phillips within the District, by using as the basis therefor the fair market value established by Harris County in fixing its ad valorem tax assessment for that year on the property of Phillips which lies within the District, then applying to the fair market value so obtained the percentage ratio applied to the fair market value ot property which is then used by City in fixing ad. valorem tax assessments on property within the City, . and then applying to the tigure thus obtained eighteen percent (18%) of the tax rate of City tor that year. For the purpose of computing "fair market value" e.' .", hereunder, and for such purpose only, it is agreed that presently the ratio ot ad valorem tax assessment used by Harris County is twenty per cent (20%) of the fair market value of property and that presently the ratio of ad valorem tax assessment used by City is forty-two per cent (42%) ot 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 here- under. In the event Phillips 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 shall preclude such protest and Phillips shall have - 2 - ~ ". ... . e . I the right to take aU legal steps desired by it to reduce the same, but at such time as the protested Harris County tax valuation on said property of Phillips has been finally determined, either as the result of final judgment ot a court of competent jurisdiction or as the result of other. .final conclusion of the con- troversy I then within thirty (30) days thereafter Phillips shall make payment to City of any additional tax due hereunder based on such final valuation. Even though Phillips does protest the valuation set on its said properties by Harris County, Company will pay to City on or before the time therefor hereinabove pro- vided the total amount ot the pa;yment in lieu ot taxes which would be due by . Phillips to City in accordance with the foregoing provisions of this paragraph (2) on the basis of renditions filed by Phillips 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 Phillips' 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 ot com- parable properties within the District, the City may question Phillips' said assessment for the purpose of this agreement by so notifying Phillips in writing. Such written notice shall be given Phillips within six (6) days after the adoption ot such resolution by registered United States mail addressed to Phillips at: . Phillips Petroleum Company Attention: Tax, Insurance & Claims Department P. O. Box 1967 Houston, Texas 77001 and the same shall be accompanied by a true copy ot such resolution. If Phillips and City then do not agree on an assessment, City may within three (3) months after the delivery 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 ot the evidence that the assessment of Phillips' said property for that year is in fact more than twenty per cent (20%) less than the asseSSMent by Harris County for that same year of comparable properties. If final judgment is entered in any such suit declaring Phillips' said assessment to be more than twenty per cent (20%) less than said assessment by Harris County ot . comparable properties and detenuining in dollars the prop.r a....sm.nt that should have been placed on Phillips' said property by Harris County for the year in - 3 - .... ,", .. , t . e e question, then the assessment determined by said judgment shall be used tor the purpose of cal.culating 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 Phillips' property to be more than twenty per cent (20%) less than said assessment by Harris County ot comparable properties within the District, then the assessment originaJ.ly established for that year shall be used for the purpose of paragraph (2) above. The costs of any suit, exclusive of attorney's fees, shall be borne by the losing party. (3) This Industrial Agreement shall extend for a term beginning on the tirst day ot January, 1966, and continuing thereafter until December 31, 1972, unless extended tor an additional period or periods of time as provided by the Texas Municipal Annexation Act upon mutual consent of the parties; provided, how- ever, that in the event this agreement is not so extended for an additional period or periods of time on or before August 31, 1972, the agreement of the City not to annex property of Phillips within the District shall terminate. In this con- nection, City hereby expresses its beliet that such industrial district agree- ments are conducive to development ot existing and future industry, are to the best interest ot aJ.l citizens ot this City, and City hereby encourages tuture City Commissioners to enter into future industrial agreements and to extend for additional periods permitted by law this industrial agreement upon the request of Phillips, its successors or assigns. (4) Contemporaneously and eftective herewith, Phillips and the other . industries which were parties to the above described agreement dated December 30, 1961, which amended and carried torward 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 ot and be binding upon City and Phillips, its assignees, successors, aftiliates and subsidiaries, and shall re- main in force whether Phillips sells, assigns or in any other manner disposes of, either voluntarily or by operation ot law, all or any part 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 deeds dated April 4, 1956, and May 12, 1959, for so long as this agreement or any extension thereof remains in force. -4- . I .' ...' ..'1' .... ., e ENTERED into this 31st " 19 65 . . I ,. e day of December ... - ATTEST: ~ ~ ~ -...... n--,a~ t(7--~K.. Secretary A TrEST: ~~ "';-:K-J... %/I#A~ Cl.ty See etary PHILLIPSPEl'ROLEUM COMPANY ~~~ V' ident CITY OF LA. PORTE By' -~,) t:tf f;f f) ---- \..-- Cit-y ommissio er ~~~~ a - - - it;v C<lIIIIIissioner <4/(.(/ ~ AL(. City C siorfer City Commissioner '-./"YI ~.. ~~/~,/ City ax Assessor - 5 - , (J,5 pJ