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HomeMy WebLinkAboutMinutes City Council - 06/09/1980 - Special111H11TES Clof OF CCntFIiS CHRISTI, TEXAS SPECFA5_ CRikiCIL:HE ETIHHS Mit:9. 19a) 7:a) PRESENT Hayor.:Pro Tema: Edward L_l Council Pesters: Dr Jack. Best ilavui Diaz Betty N. Turner Cliff Zarsliy ABSENT: City Manager R. Ha"rvin Tot4n4errd City Attorney J. Bruce Aycock City Secretary Bill C: Read Mayor Luther Jones Coiincii.iHember: Jack`. K. Dunphy; HaiOr-Fro-Tem _Edward -1..-:Sample :called themeetingtoorder in the Council'.- Chamber of City Hall arid stated that the, -'purpose >oF -the fleeting was to conduct a public'hearingan thepossibility of forming industrial districts. City Secretary Bill G. Read nailed he roll of required Charter Officers d verified that the .necessary :quorum was present to conduct a legally consti- tuted, meeting.::,- . .. /lotion .by Diaz that Mayor Luther Jones and Council Member Jack K. Rumphy, who were out of the City, be excused for, just cause; seconded by Turner; and ,passed unanimously. Hayes' Pro TemSatsple invited membersof the audience who wished to address the Council_ to speak at this time. Hr_ frank Wiggins, 118 Senvieu, informed the Council that he has been in business in the City of Carpus Christi for 16 years. He stated that he has en interest in the Port Area and is familiar with the problems with industrial dis- tricts in is- tric s;in ?Houston and Port Arthur_ Mr. Wiggins also explained that he is on the bard .of Equalization, nod in this capacity, he has had occasion to hear from apProxitnately i,500 taxpayers who are concerned about their ad valorem taxes. li Wiegins Stated that he is quite disturbed about the mood of the taxpayers and that he is cif the opinion that the City of Corpus Christi can no longer expect the homeowners' to gay the heavy harden of taxation, and he feels that the Port area should contribute taxes to the City but that the area should riot he annexed. kin. !lignins reGt7R16tehded that the Council seriously consider setting Spa+c.iin! ;067i•A! l}i vtP r iPa 2 up industrint districts «i a fee basis., :ire pointed oat that the "iindustries have their:orae fire protection. secsrit;t and other services and would not require any expenditure an the part of the. City if industrial..districts are -formed. We also painted out that there are other fringe businesses that are not paying taxes and should also be considered -.for _industrial 'districts. Council 14emher.Bent intigired of lir_ Wiggins how the Peveto Bill would affect industrial districts if they are formed. Mr- §Piggin explained that the Tax Appraisal District will have tax rolls provided they by the City of Corpus Christi wish all of the- property within the City limitst the Schaol 0istrict>will have a larger. list for their use; and the Appraisal District Will:' piece a - value on every piece of property: Cauna+.1I(eixber Zarsky noted :that it .is his understanding. that there wi11 be r re than ono Industrial district in. that each business wl1i have a separate district agreement. The next speaker was Fir.: Clifford Cosgrove, 3302 Olsen Street, who stated that I- es. disappointed in the events`: of the previous evening at which time the Corpus.Chrisye tr-Taxpars Association discontinued their efforts to; obtain a recall petition in regard to the industrial. districts, Nr. Ca5gr ve expressed the opinion. that Ilona of the business firms would be in favor of industrial districts, ROI"' would they'rwent annexation and the resultant fees. He suggested' that a tax rate of 50G per $100,' veluation be set for every house in Corpus Christi and pointed nut that the revaluation could be increased any tine to generate the necessary tax income He reiterated that he felt that the Taxpayers Association had surrendered In their efforts to reduce ad valorem taxes. Council.Hember Diaz denied that the members and directors of Corpus Christi TaXpayers Association had surrendered, but instead, he felt that they were rea- sortable .people and were willing to work out a compromise with the Council. Ffr. Tom':Hunt, spokesman for the Corpus Christi Taxpayers Association, denied - that that organization had surrendered. He explained that an agreement had been reached ,etween'the City Council and the Taxpayers PS5ociation which would be in the; best Interest ,f both parties and the citizens of this City. He ildrietes :];'erne 9. 191 if'age $" ageee,l that the frylimitation on.revaluations need^d tobe clarified_ Mr. Cunt also stated that they allreed'with Elie Councilthat the City does not have the authority to.limi£ valuatices°to San, increase per year the Association realizes_.- that the City deer not have central ever theincrease in valuation; and the only seal ss•chanism wfrich the Council can control is the tax rate. Hr. Hunt continued by_stating that the tax rate should be addressed on a State -wive level. He noted that the City Council.` has agreed to a tax rate of 68c per $100 valuation, and after the tax roll is corAlleted and the results of.the .Budget Advisory Cdr.eittee study are subaitted, if the tax rate can further be decreased to offset the increase in valuations, the Council will:: do so. hr. Hunt continued by stating that the Taxpayers Association is in sup- port of the formation of industrial districts generate more funds far the City. He noted that at the time annexation was attempted approximately`a yearago, so. many representatives of industries appeared in opposition, that the annexation issue was not presented to the voters. lir. Hunt pointed out that the industries are not paying any City tax and the Taxpayers Associatinn feels that they: should pay their portion of the taxes for the City. He pointed out that in the State of Ts,only Corpus Christi and Brownsville do not have industrial districts or have industries that do not pay taxes directly or indirectly to the City. He urged that the Council pursue as snon as possible the formation of the industrial districts in order to obtain tax relief for the homeowners- Hr. hunt also stated thet if the Council could not agree on the formation of industrial districts to obtain' a fee from those.' businesses, he would asse.re the Council that his organiza- tion could obtain enough signatures within 24 hours to call for an annexation election of those industries. Council !€ember Best referred to a news broadcast in regard to the setti_e- r,ent between the Council and the "Caxpayers flssoc€ation in which it was alleged that tt-e city Ccuncll had bribed the Taxpayers Association. into the compromise agreement by pramiSing to form industrial districts to generate more inceve ono`also to .,replace -the current City Manager. Or. Best stated that he wanted to emphatically rimy these allegations and explained that there was no compromise that dealt with either of those categories.; �cpet�$al ebancil $ti�ig 9s 13713 1!r. iraL agreed sl!+at- this was s- true i, that ono, deals :were made he Taxpayers Assaclatiisie::asid slic::City:Ceu:�cil_ Couniril fcr4er.ZarsAy mentioned a discussion conducted with Kr. Hunt In regarrd to unCiids mbar 2 City of Corpus Christi could enploy to generate more incoaia €or tiee'City. ane is seas agreed that so-e'type of'State..legis1atiari should be passed to help the':hm.a.oacers_ Mr_ alum agreed that this is the message that. shoeilj he sentto the Legislature in..Austin. Kr. Calan 'estwick, 336 Merrill, expressed the °pinion -that there are sere relseanceptrans about the Port industry. He stated that he did not think that the Port had attracted as much.industry es City officials origlnal1y thaoght. 41r- ir 4lestwick.pointed out that the port -related industries had been in business for many years without paying any fees to the City. .He further stated that he was opposed to the-pIan to allow the industries to set the amount of fees that they are xlrliing to :;pay. Ke.�suggested that they should. be annexed fors the benefit of the h11'1 wners who pay such large ad valorem.taxes. Mr. Westwick also expressed the opinion that the industries would not rove their feeilities:from the City if they iced to pay taxes and r.aiterated that all of the contiguous areas of the City should.�be annexed, iiicluding,the-Port area_ The next speaker was Hi. John Stensland, 337 Primrose Drive, who asked for n explanation of the mechanics of forming an industrial district. He expressed the opiinioa that citizen:actioe night be token if Irsdustria1 districts are not formed ior-annexation ef:;the industries is not accompFished. City Manager' Townsend replied to Mr. Stenslandis inquiry by explaining that -4f the council entered into a contract with any Industry, that such contract could be far a period of up -to seven years, and in some cases-, contracts of other cities have praVisions that an industry cannot he annexed for up to that seven- year period but sc e -agreements do not have that protection. City Manager Tov,send further explained that the Charter provides for several different gays that the matter of an non can cone before the Council and enumerated them. firs Y,atherine ':ankleeck, =034 Cascade Drive, addressed the Council, noting "that she"-.ijas speaking as an individcal taxpayer, and complimented then • a , the excellent jobthat,they ''ad pecfarx+ed during the recent- events_ ''. errs. Va �f leecic sfated tliaet sFe did:'moL feel that an iexation `nf industries ras the rtglt aoswcr-fo generate more .faxes but rxpressed tha;opinion.:.thaf industrial t1i trios rrnuld provide sore; ''intone without inflicting annexation Iimitations uprnt; the :ian�sirres 11r Putt Hi13' 4301 1tanldridge Road, representing Tule Lake Industrial Park ",stated that he'is speaking both.an a.domxowner and as a businessman and .: r explained that he has., properties both.'#nside ane outside the City limits. Hr 1€11,1-infornnd :the:.Council that he is.spr'king an behalf of the{18 Tule Lake lndustrial Park tenants a#1 of which' are. strictly service related to the Pet€ociaanicel.'indclstry Hr. .Hill pointed oat. that any increased costs that mightbe generated by:-form�aw,industrial dcstricts and .charging:fees of these. 18 tenants'wauld iean'that the eonscaaer would evehtuafly pay.:: Council ile�e Best inguired`of Hr. 1111,1 if he'artd-fiis tenants would prefer to be-auaexed cr cooperate in::the"'lndustri al district pian. Hr. {tali rept,#ed .that they could rather have the industry remain just as i tis. Mr li#11 expressed the opinion that it -is .best to support industries just as they are; so that they trii.l`.have room to expand arid that the area should not be annexed He said if 11 became necessary, he Would prefer an industrial district rather than being annexed_ Count#1 Member Best pointed ou• t to Hr. Hill that if the Part industries and related industrres are notincfuued in an - industrial district and pay a fee to`the City, lie feeis that the c#t#zees will petition for an annexation election of the endustraes Ci"ty l4anager Tameend inquired of Hr. Hann; ill If he had. any idea of the value of the.Ifl,:cGmpanies located in Tule Lake Park_ Hr H -i.11 replied that'an appraising authority .could have a reconmendatiOO on tilts but lie _painlod t tliat-ts.o-LH#rds"uf'the NIdustries located in his park T are highly rr.'abile and::stau1d possibly relocate if they are subject to paying a fee or. If ;they 'are annexdi5_ Mr "Eppy Gonz4les;addrussed the Council and stated that he was associated wfth-an industry an the isort that he had been associated with people from the Barrlss and aniy" Lhe.Par¢-related industries tact helped hese pcopiKre 5y prov cnyad-pay go:rig .;obs ` -arid recztuinn illi;? freta the tr v rty level. . Gonzales • also stated treat -he is a eieinb6r of •ih induseriai Gari is ion" acid that: orgenizatied Jeer use LGc f ct that the Port is root."subject to taxation or'annexation_En their appraaeh to ttraet;neirindustry For ;that reason, Isr. Gonzales urged that the Port-relatad,:iintustes he,alluWed>to.reraain Laic free and, exempt,'froia:fees that Iruu d=be necessary riin an industrial"district: ;lEe agreed; h» ver, that his can ,' parry:krill retain its'facflity:here evert if they: da haye to participate Iii. industrial districts Hr. Gonzales expressed_ the`opiuion that if;annexation of the,Port related industries is'presented to tllevoterx :;he Felt that the issue would be defeated because of their'asany,eurfloyees wlw yiurk for the various industries. Ca+tnci 1 ileieber- Zarsiiy :reminded ;Hr.: Gonzales that: a number of . i ndustries have already icated that .they, are ii -.favor of the forination-of industrial districts in order toavoid annexatiosc; .- City,_I'lanagc Townsend stated that he -would tike to clarify. somethe remarks made by Mr Gonzales in regard'to the>iitforination provided industries in Either: areas see an effort to attract that to locate here. Henoted that the Inilustrsr,l Carraissiori� lir biaking appeals to other companies, have.always pointed out that Texas: has a gnarl,reputation in regard to low taxes, htit none of the information suppired by the City has indicated that industries will not be taxed. Also addressiny:the:Council on this matter was Hr. Billy Dickman, repre- searing Saiz e.Re'fining;Cnepany, who reminded the Council that -he had addressed these during their last'.srteetingon. this subject. Hr. Dickman stated that at that ttmo,'=he had eformed:'them that he preferred to maintain the climate' that exists in the indu5trial arcas.at this time. He objected to the discussion and the hreats and innuendos -'that if industrial districts are not formed, the industries til le,subjected to an annexation election. He expressed the opinion that - ttezens of the City would intelligently vote down annexation of the industries r„ --Hickman reminded -the Council that industries provide outstanding jobs for mployees Who "are citizens of the City who pay taxes and support the City in many they ways He noted also' that Industries pay taxes to several school districts, for cleat reason, he does not feel that they ore cemplcteiy.tax exempt. Mr. lcaiai sutmarized by.;assuring the Council that if there is an annexation election annex indus'Cries,'tIoy Wilt actively oppose it_ ltiretet fiat Co'melt 3 =9. 191 Pte? Cow-.c'cl i*Iher Turncr._s..itcd that she personally opposes annexation of • thc,ia4Wstrie:1de ause;'it isi.i ppropriate fcr:tfieni. bat.. cansidering the r od of th+e'eitiaen5 at Neil time, if annexation ii placed before thea.ncw, ie :.raid " be.approrcd .:Itis Turner assn porntec,out that a carpany:Stich as Saber Refining -Cuopany dors not seers, to ob;ect..10 paycitg courtly -;'.taxa and school taxes, yet they are very r�clr cpposed to paying. city taxes and she feitthat this was unfair. lir fticleaan stated t thathey pay tho7.:t.. xes ohly because they. must but i,f they entered into contracts for industrial districts they_would.be .cm- mttting themselves to taxes for many years and stated that they ;would prefer to gamble -on the fact hat an.annexation issue weld not be 'approved. by .he voters. Council liember,Bcst inquired of the staff that:.in the event that there +res a successful annexation electton.'toannex the"industries; Would it be possible for the industries to tiers :reqUeiti the formation of an industrial district rattier than 1=ein.9:,f77., City Attorney) liruce;Ayccck replied that an annexation election is a mandate of, the people.and industries could not then decide .that industrial dist- ricts'would he°preferable City Manager Townsend also stated that he could not conceive of annexa- tion not heiny,anaetedafter_-it had been votedon. Mr. Ditionan referred, to the alleged agreenent bettteen Ehe City Council aril the Taxpayers Association that they teould pursue annexation of industry. ;layar,Pro Tem Sar.:ple stated that Shay had discussed the possibility of continpiog the study of forsiing industrial districts only. Hr. Bob Jenkins,. 11j18.Nooldridye stated that he has run.businesses both inside and outside the city limits Fie stated that lee has ;ust purchased a 30 -acre tract un which he p1ans:-to establish an intlustrial park. Mr. Jenkins commented that.if he had some writitn material explaining industrial_districts. he would ce ready to discuss the farmatiun-of such districts. Mr Hi1 t, sssokc aurin and stated that he agreed with the representative of Saber i'efii.ing Coajeaay in that he mould prefer to take a chance of being annexed .1-'6ther than agreeing to She cora>ation of industrial districts. t r. '.'.iI1 annexe' 'e Lounct1 .thilt they find considere en .,ri ex e" cInctiNn o Pert-rata, indu_tries' i..t yea: and i.- n deeideo net to jsat llsc i slue t❑ tine voters. Council afe alias fiat poiiiyted oel. tlta[ [li re }lore :fiterr a anyt clsanges: �wrtee'7that tiz a cine} the iat+livideral Taxpayers are very upset and mild 1ikc. to }lave store rt Pief feast ad v lmresi taxis and for [his >reaspn, ho.was • of the opirtieii that the peepie aotild;so c in, .fattorof.annexat.iet of'industries at 1io i•,ng:the presence of tir..Brrdie.Rfiei`in the -audience -Council:`. fleet rer Turner`asked'bin if he would-eXpress an:opinien ofsindustrial drstrist5 since ;he i5 the U1,ectwa of }he 1 dustriai-Conmissran_ Hr R11en appeared.. before tare Cdunci,! and st sta[ed:;that the=lr.terature [hat is sent out ,b7 [he-Indu;iaiCuamissicrt does include sEatEiiients,to'the effect -that Corpus Christi does -:enjoy' -lacer taxes but this rs in,'thi form the ct of';lciwer Colics is:cuepared;to other states'arid otherCpiv ani tie; in; oncep [ite state Hre_ Rllen noted that as faras-.the issue of industrial"districts versus annexation he felt that Chit. Was a very difficuit.question tot ansvier. Ite painted out -that the-Crty of: Corpus Christi' isfurther away from the major market`_that serves these industries and it does take more to attract industry to locate in Corpus Christi He' -pointed out that most of the portarea along [he xater is already occupied by industries, but north of the ship channel, land Ec sti°1'1 available but;`it win be a icing time before that part of the ship hannel could he developed .. Alien did express the opinion that if there. rs a Choice betw.cn.ennexatloii 0i'industrial districts, he felt that industrial_ listrtcts would be the best cioicn. He agreed that the mood of the citizens ndicates that'somethiiig.should.Eie done_ 445 Peefman, stated that he had .been Concerned ce the`agreernent.sCas-reached between the City Council and the Corpus hristij Taxpayers Association an Sunday that industries will be offered up as. acrifrces tit appease the taxpayers_ Por. Beck reminded the Council that it has eCse difficutt'to attract industry to this area and he would hate to see this eoparIzed te:pointed'out that industries utilizing city services 'must pay arger;emounts -than people within the city limits. He disagreed with the assump- ion that companies locate: outside the city limits should have to assist the r.eoreiers in ic1 taxa _ ttr. Berl' also in,ictFd that he. objected to the threat �16�EitsS .lsiti 9. of anneL t&dn." !'b _1-Heber&R`ag.:s, 25/.Cape Ikay, representing ,5cutlr.inbteru: Refinery tompaKey, staict3 that'he feels::that for the Council tn;porsuc the gar[aaticn of. industr5al di$triets:is Er v trialsuic de. He ref:arred to the recent charter ameidaaent election and expressedtts0:opinion.that [he voicrs i�+ho mated in.favor of ProposlL4on !$ dust alented�to life' the Council aware of Lhe -fact that they wante3 taxes '.reduced end.city expenses decreased. i!e expressed the opinion that if .the fousrci'.1 actually d'id_try-to.dacrease expenses rather -;than attempting told rot::'iaeet expenses. Re urged Yhat;they try fora time to operate vd th.a lower budget before they a.iprove the formation of indurtriel districts. Ito one else indicated:a desire -to speak or, this natter. - 1layar'Pro ten Sade expressed appreciation :to ail the people who had - attended the:-eeting.'an�S suggested thea this matter should be discussed at a Hednesday iiorkshop meeting since a hurried decision 1ioidd not be reached. He stated that possibly another meeting would be held in the future to obtain further input from industries: llrs "�P uline::Clarke,.speaking as a citizen, Stated that she has resided heresinte'.1934 She?note d. -that the average citizen usually did not appear before the Cnunct! in`:rega-d to matters such as those being discussed at this t�mei'.and suggeS£ed that the.Louncil provide en opport who are not darect1y,:involved in .industry to speak on this matter. Mrs. Clarke continued by stating that more.; information shauid be prepared and the citizens sbodld be mado;,aware of.all the, issues involved before the decision is made to form indust ✓ ;ai":dEstritts Council Member Zarsky made the observation that the suggestion has been made'tonighttthat the City Council should study its budget first before. any action taken and indicated his concurrence with this. - M.ryor>Pro.'fem Sample assured the weaibers of the audience that the Council w ill<;not hurriedly rush into forming industrial districts and agreed that more information 'should.'.be Fravided the rubiic. Ticre l:c.irtg: ct� -tiler busiscys to. _a:ic bofor2_ the Cc_nci l during this edeeEi'tg on sotron bybiaz,.seconded by turner, and passed unaniwously, the Special Council Neet'ng uas:adio:?ried at a:lb p.e., Jure `l. 1980. unity for citizens