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Home My WebLink AboutC2024-239 - 10/15/2024 - ApprovedDEVELOPMENT AGREEMENT UNDER SECTION 43.016, TEXAS LOCAL GOVERNMENT CODE This Development Agreement (the "Agreement") is entered into pursuant to Sections 43.016 and 212.172, Texas Local Government Code by and between the City of Corpus Christi, Texas (the "City") and Corpus Fuels LLC (the "Owner"). The term Owner shall include all owners of the Property. The City and the Owner are collectively referred to as the Parties. WHEREAS, the Owner owns parcels of real property in Nueces County, Texas, which are identified by Nueces County Appraisal District as Geographic ID; 0276-0110- 0001 and more particularly described in the attached Exhibit A (the "Property") that is appraised for ad valorem tax purposes as land for agricultural, wildlife management, or timber land under Chapter 23, Texas Tax Code; WHEREAS, that Real Property is located in the City of Corpus Christi Extraterritorial Jurisdiction within Industrial District No .2; WHEREAS, Texas Local Government Code §43.016(b)(1) requires the City to offer to make a development agreement with the Owner that will provide for the continuation of the extraterritorial status of the area and authorize the enforcement of all regulations and planning authority of the municipality that do not interfere with the use of the area for agriculture, wildlife management, or timber; WHEREAS, Texas Local Government Code §43.016 provides that the restriction or limitation on the City's annexation of all or part of the Property under this Agreement is void if the Owner files any type of subdivision plat or related development document for the Property, regardless of how the area is appraised for ad valorem tax purposes; WHEREAS, the Owner desires to have the Property remain in the City's extraterritorial jurisdiction, in consideration for which the Owner agrees to enter into this Agreement; WHEREAS, Texas Local Government Code §43.016(c) provides an area adjacent or contiguous to an area that is the subject of a development agreement under Texas Local Government Code §43,016 is considered adjacent or contiguous to the municipality; WHEREAS, the Owner has been provided written disclosure attached to this agreement as Exhibit B as required by Texas Local Government Code §212.172 and WHEREAS, this Agreement is entered into pursuant to Sections 43.016 and 212.172, Texas Local Government Code; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties hereto agree as follows: Section 1. Term. The term of this Agreement (Term) shall be 15 years from January 1, 2025 to December 31, 2039, unless earlier terminated as herein provided. Page 1 of 8 SCANNED Section 2. Extraterritorial Jurisdiction Status of Property. Pursuant to Texas Local Government Code §43.016(b)(1)(A), the City guarantees the continuation of the extraterritorial status of the Property identified by Nueces County Appraisal District as Geographic ID: 0276-0110-0001 and more particularly described in the attached Exhibit A (the "Property"), its immunity from annexation by the City, and its immunity from City property taxes, for the term of this Agreement, subject to the provisions of this Agreement. Except as provided in this Agreement, the City agrees not to annex the Property, agrees not to involuntarily institute proceedings to annex the Property, and further agrees not to include the Property in a statutory annexation plan for the Term of this Agreement. However, if the Property is annexed pursuant to the terms of this Agreement, then the City shall provide services to the Property pursuant to Chapter 43 of the Texas Local Government Code. Section 3. Authority of Municipality. Pursuant to Texas Local Government Code §43.016(b)(1)(B), the City is authorized to enforce all regulations and planning authority of the municipality that do not interfere with the use of the Property for agriculture, wildlife management, or timber. Section 4. Owner's Obligations. In consideration of the City's agreement not to annex the Property and as a condition of the Property remaining in the City's extraterritorial jurisdiction, the Owner covenants and agrees to the following: (a) The Owner shall not to use the Property for any use other than for agriculture, wildlife management, and/or timber land consistent with Chapter 23 of the Texas Tax Code without the prior written consent of the City. (b) The Owner shall not file any type of subdivision plat or related development document for the Property with a governmental entity that has jurisdiction over the Property, regardless of how the Property is appraised for ad valorem tax purposes. Section 5. Development and Annexation of Property. (a) Pursuant to Texas Local Government Code §212.172, the following occurrences shall be deemed the Owner's petition for voluntary annexation of the Property, and the Property may subsequently be annexed at the discretion of the City Council: (1) The filing of any type of subdivision plat or related development document for the Property with a governmental entity that has jurisdiction over the Property, regardless of how the Property is appraised for ad valorem tax purposes. (2) The Property no longer being appraised for ad valorem tax purposes as land for agricultural, wildlife management, or timber land under Chapter 23, Texas Tax Code, or successor statute, unless the Property is no longer appraised for such purposes because the Legislature has abolished agricultural, wildlife management, or timberland exemptions. Page 2 of 8 (3) The filing for voluntary annexation of the Property into the City by the Owner. (4) The expiration of this Agreement. (5) Upon termination of this Agreement. (b) The Owner agrees that annexation initiated due to an occurrence under Section 5(a) shall be voluntary and the Owner hereby consents to such annexation as though a petition for such annexation had been tendered by the Owner. Section 6. Vested Rights Claims. Pursuant to Texas Local Government Code §43.016(e), this Agreement is not a permit for the purposes of Chapter 245, Texas Local Government Code. The Owner hereby waives any and all vested rights and claims that the Owner may have under §43.002(a)(2) and Chapter 245 of the Texas Local Government Code that would otherwise exist by virtue of any actions Owner takes or has taken in violation of Section 5 herein. The Owner further waives any and all vested rights and claims that the Owner may have under §43.002(a)(2) and Chapter 245 of the Texas Local Government Code that would otherwise exist by virtue of any application, plan, plat or construction the Owner may file or initiate with respect to the Property following the expiration of this Agreement prior to annexation of the Property by the City, provided that the City initiates annexation proceedings within one year following the expiration of this Agreement. Section 7. Conveyance of the Property. Conveyance of the Property or portions thereof is allowed under this Agreement. This Agreement constitutes a covenant running with the land, and all successive future owners will be to the same extent bound by and will have the same right to invoke and enforce, its provisions as the original signers of this agreement. Conveyance of the Property or portions thereof to subsequent owners does not trigger a request for voluntary annexation. Section 8. Notice. Any person who sells or conveys any portion of the Property shall, prior to such sale or conveyance, give written notice of this Agreement to the prospective purchaser or grantee. Any person who sells or conveys any portion of the Property shall, give written notice of the sale or conveyance to the City within 30 days of such sale or conveyance. Furthermore, the Owner and the Owner's heirs, successor, and assigns shall give the City written notice within 14 days of any change in the agricultural exemption status of the Property. A copy of the notices required by this Section shall be sent by personal delivery or certified mail, return receipt requested, to the City at the following address: City of Corpus Christi Attn: City Manager PO Box 9277 Corpus Christi, Texas 78469-9277 Section 9. Covenant Running with the Land. This Agreement shall run with the Property and be recorded in the real property records of Nueces County, Texas. The Owner and the City acknowledge and agree that this Agreement is binding upon the City and the Owner and their respective successors, executors, heirs, and assigns, as Page 3 of 8 applicable, for the term of this Agreement and constitutes a covenant running with the land. Section 10. Severability. If any provision of this Agreement is held by a court of competent and final jurisdiction to be invalid or unenforceable for any reason, then the remainder of the Agreement shall be deemed to be valid and enforceable as if the invalid portion had not been included. Section 11. Amendment and Modifications. This Agreement may be amended or modified only in a written instrument that is executed by both the City and the Owner after it has been authorized by the City Council. Section 12. Gender, Number and Headings. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, unless the context otherwise requires. The headings and section numbers are for convenience only and shall not be considered in interpreting or construing this Agreement. Section 13. Governmental Immunity; Defenses. Nothing in this Agreement shall be deemed to waive, modify, or amend any legal defense available at law or in equity to either the City or Owner, including governmental immunity, nor to create any legal rights or claims on behalf of any third party. Section 14. Enforcement; Waiver. This Agreement may be enforced by any Owner or the City by any proceeding at law or in equity. Failure to do so shall not be deemed a waiver to enforce the provisions of this Agreement thereafter. Section 15. Effect of Future Laws. No subsequent change in the law regarding annexation shall affect the enforceability of this Agreement or the City's ability to annex the properties covered herein pursuant to the terms of this Agreement. Section 16. Venue and Applicable Law. Venue for this Agreement shall be in Nueces County, Texas. This Agreement shall be construed under and in accordance with the laws of the State of Texas. Section 17. Counterparts. This Agreement may be separately executed in individual counterparts and, upon execution, shall constitute one and same instrument. Section 18. Sections to Survive Termination. This Agreement shall survive its termination to the extent necessary for the implementation of the provisions related to annexation of the Property into the City. Section 19. Reservation of City Rights. The City states and specifically reserves its authority pursuant to Chapter 251 of the Texas Local Government Code to exercise eminent domain over property that is subject to a Chapter 43 and/or Chapter 212 development agreement. Section 20. Authorization. That all parties and officers signing this Agreement warrant to be duly authorized to execute this Agreement. Page 4 of 8 Entered into this d1*`" day of cc-A-1 t , 2024. Owner: Corpus Fuels LLC, a Delaware limited liability company By Flora S.pvis Director, Ad Valorem Tax THE STATE OF 'rexA<, COUNTY OF tArsgle.ts This instrument was acknowledged before me on the day of 1x 6 2024, by, Flora S. Davis, Director Ad Valorem Tax of Corpus Fuels LLC, a Delaware limited liability company By: Kayla For rt a Manager, Ad Valorem Tax THE STATE OFx.p,;, ROBERT EARL MCCORKLE, 1I 1�'...: Notary Public, State of Texas +r Comm. Expires 08-15-2026 ;:),;,- � Notary y ID 133908761 Notary Public, State of 'ICJA-S COUNTY OF NAA.R-‘s § This instrument was acknowledged before me on the 2f - day of o& 2-- 2024, by, Kayla Forsythe, Manager, Ad Valorem Taxof Corpus Fuels LLC, Delaware limited liability company -clarsimmraa.m.......11...01W `ci.SfaV PV'�i ROBERT EARL MCCORKLE. 11 3z: Notary Public, State of Texas +� Comm. Expires 08-15-2026 �''-/,°;,��` Notary ID 133908761 Notary Public, State of 7EX 45 Page 5 of 8 City of Corpus Christi: ATTEST: By: er Zano I City Manager STATE OF TEXAS COUNTY OF NUECES § Rebecca Huerta City Secretary BY COUNCIL AUTHORIZED SECRETARY This instrument was acknowledged before me on this /G day of , 2024, by Rebecca Huerta, City Secretary, of the City of Corpus Christi, a Texas home -rule municipal corporation, on behalf of said corporation. MILES K. ; .i:;;;_EY My Notary ID 0 3603452 Expires September 7, 2025 STATE OF TEXAS § COUNTY OF NUECES § T/l� X h. Notary Public, State of Texa This instrument was acknowledged before me on this 16, day of e... r , 2024, by Peter Zanoni, City Manager, of the City of Corpus Christi, a Texas home -rule municipal corporation, on behalf of said corporation. MILES K. RISLEY Notary ID # 3603452 September 7, 2025 My Public, State of Tex Expires Notary APPROVED AS TO FORM: ke Buck Brice Deputy City Attorney for the City Attorney date Page 6of8 Exhibit A NUECES COUNTY APPRAISAL DISTRICT GEOGRAPHIC ID: 0276-0110-0001, including but not limited to the tract as described in a deed recorded in Document Number 2013050760, Deed Records of Nueces County, Texas, and the metes and bounds description herein LEGAL DESCRIPTION OF THE PROPERTY Being a tract situated in Nueces County, Texas, a portion of AB&M Survey 410, Abstract 853 and being that tract described in the gift deed to Clarence Edward Jauer, et al, recorded in Volume 1947 at Page 949 of the Deed Records of Nueces County, Texas and being more particularly described by metes and bounds as follows: BEGINNING at a 5/8" iron rod set in concrete found for the southwest corner of this tract, said point lying in the north boundary of that 50 foot strip of land off the south side of Survey No. 410 granted to Texas Mexican Railroad Company for right-of-way by deed recorded in Volume 95 at Page 53, Deed Records of Nueces County, Texas; THENCE N 1 °01 '35" W along the west boundary of Survey 410 and the east boundary of Survey 408, a distance of 5231.70 feet to a 1 1/4" iron pipe found for the northwest corner of this tract, said point being the northwest comer of AB&M Survey 410; THENCE N 89°07'21" E along the north line of Survey 410, a distance of 2614. 73 feet to a 1/2" iron rod found for the northeast corner of this tract, said point Tying in the west right-of-way line of McKinzie Road (Farm to Market Road 3386); THENCE S 0°46'53" E along the west right-of-way line of McKinzie Road a distance of 5208.20 feet to a 5/8 inch iron rod set in the north right-of-way line of the railroad right- of-way tract for the southeast corner of this tract; THENCE S 88°36'12" W along the north right-of-way line of the railroad right-of-way, a distance of 2592.51 feet to the POINT OF BEGINNING, forming a tract embracing 311.99 acres. Page 7 of 8 Exhibit B DEVELOPMENT AGREEMENT DISCLOSURE (1) The landowner is not required to enter into the Development Agreement or any other development or annexation agreement. (2) The City of Corpus Christi is authorized to annex the Property pursuant to the Texas Constitution, Texas Local Government Code Chapter 43, and the Corpus Christi City Charter, including Texas Constitution Art. XI, § 5, Texas Local Government Code §43.0116 and Corpus Christi City Charter Art. 1, §2. (3) The City Council can direct the City's Planning Department to create a service plan for the area to be annexed. Following two public hearings, the land may be annexed by adoption of an ordinance. (4) The annexation procedure does not require the Iandowner's consent. (5) Except to the extent required by State law, the City of Corpus Christi does not waive immunity to suit. Texas Local Government Code §212.172(i) provides "A municipality that enters into a contract waives immunity from suit for the purpose of adjudicating a claim for breach of the contract." Furthermore, Texas Local Government Code 43.908 provides "(a) This chapter may be enforced only through mandamus or declaratory or injunctive relief. (b) A political subdivision's immunity from suit is waived in regard to an action under this chapter. (c) A court may award court costs and reasonable and necessary attorney's fees to the prevailing party in an action under this chapter." Page 8 of 8 Nueces County Kara Sands Nueces County Clerk *VG 50-2024-2024043026* Instrument Number: 2024043026 Official Public Records AGREEMENT Recorded On: December 17, 2024 02:00 PM Number of Pages: 9 " Examined and Charged as Follows: " Total Recording: $48.00 STATE OF TEXAS Nueces County I hereby certify that this Instrument was filed in the File Number sequence on the date/time printed hereon, and was duly recorded in the Official Records of Nueces County, Texas Kara Sands Nueces County Clerk Nueces County, TX dr<pu\a__ 5,,,,,Q2 *********** THIS PAGE IS PART OF THE INSTRUMENT *********** Any provision herein which restricts the Sale, Rental or use of the described REAL PROPERTY because of color or race is invalid and unenforceable under federal law. File Information: Record and Return To: Document Number: 2024043026 LEGAL DEPT CORPUS CHRISTI Receipt Number: 20241217000095 P 0 BOX 9277 Recorded Date/Time: December 17, 2024 02:00 PM User: Dusty G CORPUS CHRISTI TX 78469 Station: CLERK02