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HomeMy WebLinkAboutO-1987-1570 . . ORDINANCE NO. 1i"1tJ AN ORDINANCE AUTHORIZING THE EXECUTION BY TIlE CITY OF LA PORTE OF INDUSTRIAL DISTRICT AGREEMENTS WITH INDUSTRY WITHIN THE BATTLEGROUND INDUSTRIAL DISTRICT, AND THE BAYPORT INDUSTRIAL DISTRICT, FOR THE SEVEN (7) YEAR PERIOD COMMENCING JANUARY 1, 1987. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. the City Council of the City of La Porte hereby finds, determines and declares that the following named corporation has executed an industrial district agreement with the City of La Porte, for the seven-year term commencing January 1, 1987, a copy of said proposed industrial district agreement being attached hereto, incorporated by reference herein, and made a part hereof for all purposes, to wit: UNION CARBIDE INDUSTRIAL SERVICES COMPANY Section 2. The Mayor and the City Secretary 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 firm named in Section 1 hereof, copy of which is attached hereto. 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, Article 6252-17, Texas Revised Civil Statutes Annotated; 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. PASSED.AND APROVED this the.7th day of December, 1987 CITY OF LAPORTE 8Y~~ No n Malone, May r -- ATTEST: ~M~ City Secretary .APPROVED: d . tkiuJ ' City Attorney . .' . ~,.. -.,.. e , '. . (Revised: 06/86) NOTICE: THIS CONTRACT IS SUBJECT TO ARBITRA~ION UNDER THE TEXAS GENERAL ARBITRATION ACT, ARTICLE 224, ET. SEQ., REVISED CIVIL STATUTES OF TEXAS . THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ ~ CITY OF LA PORTE ~ 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 Union Carbide Industrial Services Company , a Texas corporation, hereinafter called "COMPANY", WIT N E SSE T H: That 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, Company is the owner of a certain tract(s) of land more particularly described in the Deed Records lof Harris County, Texas, in the following Volume and Page references, to-wit: A tract of land approximately 4.000 acres situ~ted in the Enoc.i1 Brinson Survey, Abstract i.~o. 5, Harris County, Texas, being part of a 57.580 acre tract conveyed to Union Carbide Corporation. by Deed dated l~ovember l2, 19 80, duly recorded under County Clerk's File ~~o. G-753519 in the Official Public Records of Harris County, Texas, reference to w~ich is here made for all purposes. '. . e e Industrial District Agreement - 2 upon which tract(s) Company has either constructed an industrial plant(s) or contemplates the construction of an industrial p1ant(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 lo- cated in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas," hereinafter collectively called "Dis- trict," such Ordinances being in compliance with the Municipal Annex- ation 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 within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Resolution 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. Ci ty 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 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 industrial district may be changed pursuant to the terms of this Agreement. Subject to . . e e Industrial District Agreement - 3 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, 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, including 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 a~d regulations (a) governing plats and subdivisions of land, (b) prescri- bing 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 City 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 b~ this Agreement were located within the corporate limits of City. II. A portion of the hereinabove described property equal to twenty- I five (25%) of the total value of the land and improvements of such property, 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), e e Industrial District Agreement - 4 the appraised value for tax purposes of the annexed portion of land, improvements, and tangible 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, improvements, and tangible personal property in the unannexed area for the purpose of computing the II in lieu II 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 II 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 City ad valorem taxes on such annexed land, improvements, and tangible personal pro- perty. Company also agrees to render to City and pay an amount lIin lieu of taxes II on company's land, improvements, and tangible personal property in the unannexed area equal to the sum of: (I) Fifty percent (50% ) of the amount of ad valorem taxes which would be payable to City if all of the hereinabove described property which existed on January 1, 1986, had been within the corporate limits of City and appraised each year by City.s independent appraiser: and (2) Thirty percent (30% ) of the amount of ad valorem taxes which would be payable to City on any increase in value of the hereinabove described property, in excess of the appraised value of same on January 1, 1986, resulting from new construction and new acquisitions of tangible personal property, (exclusive of Construction in Progress, which shall be exempt from taxation), if all of said new construction and acquisitions had been within the corporate limits of City and appraised by City.s independent . e Industrial District Agreement - 5 appraiser: with the sum of (1) and (2) 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. Nothing herein contained 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, 1987, and continue thereafter until December 31, 1993, 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, 1993, 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 immediate annexation proceedings as to all of Company' s property covered by this Agreement, notwithstanding any of the terms and provisions of this agrement, and in such event Company agrees that if the Texas Municipal Act, Article 970a (V.A.T.S.), as amended after January 1, 1980, 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 Texas Municipal Annexation Act as the same existed January 1, 1980. e e Industrial District Agreement 6 IV. 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. In this connection, City hereby expresses its belief that industria+ district agreements of the kind made herein are conducive to the development of existing and future industry and are to the best interest of all citizens of City and encourage future City Councils to enter into future industrial district agreements and to extend for additional periods permitted by law this Industri'al Di~trict Agreement upon request of Company or its assigns; provided, however, that nothing herein contained shall be deemed to obligate either party hereto to agree to an extension of this Agrement. V. Company agrees to pay all "in lieu of taxes" payments hereunder, to City on or before December 31 of each year during the term hereof. . The Company agrees to pay all ad valorem taxes hereunder in accordance with Section 31.02 of the Texas Property Code. It is agreed that presently the ratio of ad valorem tax assessment used by City is one hundred percent (100%) of the fair market value of property. Any change in such ratio used by City shall be reflected in any subse- quent computations hereunder. This Agreement shaJ...l be subject to all provisions of law relating to determination of value of land, improvements, and tangible personal property, for tax purposes (e.g., rendition, assessment, Harris County Appraisal District review and appeal procedures, 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 VI hereof. 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 '" 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. Nothwithstanding 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 accordance with the foregoing provisions of this Agrement on the basis of renditions which shall be filed by Company on or before March 31 of each year during the term of this Agreement, 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) valuation on said property of Company has been so finally determined, either as the result of final judgm~nt of a court of competent jurisdiction 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, together with applicable penalties, interests, and costs. (B) Should Company disagree with any appraisal made by the independent apppraiser selected by City pursuant to Article II above (which shall be given in writing to Company), Company shall, within twenty (20) days of receiving such copy, 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 e e " Industrial District Agreement - 8 also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company IS 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 I s property for II in lieu II 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 I s valuations rendered and/or submitted to City by Company hereunder, or the total assessment and lIin lieu of taxesll 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 II Impartial Arbitratorll) 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 I s property for calculation of the "in lieu II 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, e . Industrial District Agreement - 9 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 (ArtiCles 224-23'8, - Vernon's Annot- ated Revised Civil Statutes of Texas). Costs of the arbitration shall be shared equally by the Company and the City, provided that each party shall bear its own attorneys fees. (C) Should the provisions of Article II of this Agreement become impossible of enforcement because of of any material delay or failure to act on the part of the Harris County Appraisal District, then and in any of such events, the City shall have the right to appoint an independent appraiser, whose appraisal shall be treated for all purposes in this Agreement as if it had been made by the Harris County Appraisal District. . VII. 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 ~hich shall be collectible by City in the same manner as provided by law for delinquent taxes. VII1. Company has previously provided to City at Company's' expense, a survey plat and field note description of the land and improvements have been annexed in accordance with the provisions of Article II above. Such annexation tract is contiguous to a point on the exist- ing corporate limits of La Porte. ~. .. . e . Industrial District Agreement - 10 IX. 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 wi thin 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. X. 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: provided, however, City reserves the right to enter into such agreements or ~enewal agreements with other landowners not covered by existing agreements, containing a percentage of ad valorem taxes more favorable to the landowner than that contained in Paragraph II, Subparagraph 3 (2) hereof, and Company and its assigns shall not have the right to amend this agreement to embrace the more favorable percentage of ad valorem taxes contained in such agreement or renewal thereof, than that contained in Paragraph II, Subparagraph 3 (2) hereof. City may extend more favorable terms to landowners covered by existing contracts only to the extent such favorable terms apply to any increase in value of the hereinabove described property, in excess of the appraised value of same on January 1, 1986, as described in Paragraph II, Sub- paragraph 3 (2) hereof. ....,.... /~'~ :f ~ ~~ 5~ : - -:: -- - ~ .... .. .."; ~::; ~ ..~ .Ao "',' " . . . .;. Industrial District Agreement - 11 XI. In the event anyone or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the applicaton thereof to any person, firm, corporation or circum- stances 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 partes of this Agreement shall not be affected thereby. XII. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said land shall terminate. ENTERED INTO this 1st day of June, 1986. ......:;.l- . ". ATTE.'~T : UiHaN CARBIDE nmUS'T'RTAT. SgRVICES CO. (COMPANY) - - <. .".. .~.~.~:~ .; '" . . :: ~ "-_..., ~ ~: - c:>'k. ~ ...\. S'Gcretar BY fI~.r~ Philip F.McGovern Name: Name: John Macdonald Title: Assistant Treasurer Address: 39 Old Ridqebury Road APPROVED BY COUNSEL: Danburv. Ct. 06817 r Q~~ ., AT OR COMPANY Na Jerrv L. Robinson Address: 39 Old Ridqebury Road Danbury, Ct. 06817.__ Telephone: (203) 794-3699 r . Industrial District Agreement - 12 ATTEST: t4u;/ ~ Cherie Black, City Secretary APPROVED BY COUN~ ~ tJ. '- KNOX W. ASKINS, City Attorney 702 W. Fairmont Parkway P. O. Box 1218 La Porte, Texas 77571 Telephone: (713) 471-1886 (Revised: 03/87) , , CITY OF LA PORTE BYJt~~~/--- By: G?~ T. ~ Robert T. Herrera, City Manager CITY OF LA PORTE P. O. Box 1115 La Porte, Texas 77571 /,