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AN ORDINANCE
AMENDING ORDINANCE NO. 15898, PASSED AND APPROVED BY THE
CITY COUNCIL, ON NOVEMBER 26, 1980, TO CORRECTLY REFER
TO THE MINIMUM PAYMENT SUBSECTION IN ARTICLE III (e) OF
EXHIBIT 1 OF THE ORDINANCE, AND TO CORRECT THE CRITERION
FOR DETERMINING WHEN AN INDUSTRY MUST MAKE A MINIMUM
PAYMENT IN ARTICLE III (f) OF EXHIBIT 1 OF THE ORDINANCE;
AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the second sentence of Article III (e) of Exhibit 1
of ordinance No. 15898, passed and approved by the City Council of the City of
Corpus Christi, Texas, on November 26, 1980, be amended to hereafter read as
follows:
"If Company selects such alternative procedure, the amount
due to City under this section shall be the resulting dif-
ference or the minimum payment required in paragraph (f),
whichever is greater."
SECTION 2. That the initial portion of the first complete sentence
of Article III (f) of Exhibit 1 of Ordinance No. 15898, be amended to here-
after read as follows:
"For any Company which qualifies as an industry under
Ordinance No. 15898 and which has less than two million
dollars ($2,000,000.00) in market value' of improvements
on said land subject to this agreement, such Company, in
lieu of the payments in items (a), (b), (c), (d), and (e)
above, shall pay the lower of:"
SECTION 3. That the necessity for amending Exhibit 1 of the indus-
trial district Ordinance No. 15898 in order to offer an agreement to qualified
industries at the earliest practicable date creates a public emergency and an
imperative public necessity requiring the suspension of the Charter rule that
no ordinance or resolution shall be passed finally on the date of its introduc-
tion but that such ordinance or resolution shall be read at three several meetings
15941
ilicaOJLMED
SEP 271984
of the City Council, and the Mayor, having declared that such emergency and
necessity exist, having requested the suspension of the Charter rule and that
this ordinance be passed finally on the date of its introduction and take
effect and be in full force and effect from and after its passage, IT IS
ACCORDINGLY SO ORDAINED, this the /1 day of December, 1980.
ATTEST:
1 i ty-Secretary
\ MAYOR Elo•Teol
THE CITY OF COJ2P,,S CHRISTI, TEXAS
APPROVED:
/ 7 'DAY OF DECEMBER, 1980:
J. BRUCE AYCOCK, CITY
ATTORNEY
By GI%u
Assipant City Attorney
INDUSTRIAL DISTRICT AGREEMENT
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
This Agreement made and entered into by and between the CITY OF CORPUS
CHRISTI, TEXAS, a municipal corporation of Nueces County, Texas, hereinafter
called "CITY", and ,
a
(Landowner)
corporation,
a
(Lessee) •
corporation, and -
(Improvements Owner)
-a corporation, hereinafter collectively called
•
"COMPANY", •
WITNESSETH:.
WHEREAS, it is the established policy of the City Council of the City
of Corpus Christi, Texas, to adopt reasonable measures permitted by law which
will tend to enhance the economic stability and growth of the City and its en-
virons and-which•will attract the location of new and 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 or lessee of land or owner of improve-
ments on land within the extraterritorial jurisdiction of the City of Corpus •
'Christi,'which land shall, upon execution of this agreement by the City, be
known as "Corpus Christi Industrial District No.
and which land is more particularly.described in Exhibit "A" attached hereto,'
and incorporated herein for all purposes, herein called "said land" and upon
which Company has either constructed (and/or contemplates) the construction or
expansion of improvements; and -
WHEREAS, pursuant to said policy and the provisions of Article 970a,
Revised Civil Statutes of Texas, known as the Municipal Annexation Act, City
has enacted Ordinance No, 15898 indicating its willingness, within 90 days
after final passage of said ordinance, to enter into industrial district agree-
ments with industries located within its extraterritorial jurisdiction and
designating areas located in its extraterritorial jurisdiction as industrial
districts, herein collectively called "Districts"; and
•
WHEREAS, City desires to encourage the updating, expansion and
growth of industries within said Districts and for such purpose desires to
enter into this Agreement with Company:
NOW, THEREFORE,, in consideration of the premises, the mutual agreements
of the parties herein contained and pursuant to the.authority granted under the
Municipal•Annexation Act and the Ordinance of City referred to above,'City and'
Company hereby agree as follows: -
I
City covenants and agrees that during the term of this 'Agreenent,•and
subject to the terms arid provisions hereof, said land shad'retain its extra-
territorial
xtra-territorial status as an industrial district and shall continue to -retain such
status until and unless the same is changed pursuant to the terms ofthis Agree-
ment. Except as.herein provided City further covenants and agrees that said
land shall be•immune from annexation.
During the term hereof City shall. have no obligation to extend to said
land any City services except fire protection in the event Company makes addi-
tional payments to City under Article III(d) hereof.
= Further, City and Company agree that during the term hereof, City shall
not require with respect to said land compliance with its rules or regulations
(a) governing zoning and platting of said Tand or any additions thereto outside
the City limits; provided, however, Company further agrees that it will in no
way divide said land or additions thereto without complying with State law and
City ordinances governing subdivision of land; (b) prescribing any building,•
.electrical, plumbing or inspection code or codes; or (c) prescribing any rules
governing -the method of operations of Company's business, except as to those
regulations relating to the delivery of utility services and industrial waste
disposal through City owned facilities.
II
The term of this Agreement shall begin on the first day of January,
1981, and shall continue until December 31, 1987, unless extended for 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 March
31 of the final calendar year of the term hereof, then the immunity from annexation
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granted herein shall terminate on that date, but all other terms of this Agree-
ment shall remain in effect for the remainder of the term; provided, however,
the effective date and time of such annexation shall be no earlier than midnight
of December 3I of such final year of the term.
This Agreement may be extended for an additional period or periods by
agreement between City and Company and/or its assigns. In this connection, City .
recognizes that industrial district agreements of this kind are conducive to the
development of existing and future industry and business and are to the best°
interest of all citizens of City. Accordingly; future City Councils are hereby
encouraged,. -but are not obligated, to enter into industrial district agreements
and to extend existing industrial district agreements. •
•
•
III
Each year during the term hereof, Company shall pay to City:
(a) An amount in lieu of taxes on said land (excluding improvements and
personal property located thereon) equal to one hundred percent (100%) of the
amount of ad valorem taxes based upon the market value of said land which would
otherwise be payable to City by Company if said land were situated within the
city limits. of City.
With respect to any new land acquired by Company after January 1,
1981, located in the extraterritorial jurisdiction of City, and the use of which
relates directly to the primary use of the parent tract, and which Company desires
to.add to said land, such new land shall be included in Company's land known as
said land, and shall be considered in calculating the in lieu of tax payment on
said land as of January 1 of the first year following the date which such new
land is acquired by Company. In addition, Company shall provide City a revised
Exhibit "A" which includes a complete description of such new land.
(b) An amount in lieu of taxes on improvements (exluding personal prop-
erty) located on said land equal to fifty percent (50%) of the amount of ad •
valorem taxes which would otherwise be payable to City by Company if said improve-
ments were situated on land within the city limits of City.
On or before March 31 of each year during the term of this Agreement,
Company shall provide to City's Tax Assessor -Collector a written statement of its
opinion of the market value sworn to by an official of Company authorized to do
the same. .
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(c) With respect to any new improvements or facilities, which are
hereby defined as those being completed after January 1, 1974 which increase
production capacity, which may be required or proper for environmental or
safety reasons, or which are made necessary because of a change in raw mater-
ials being processed, Company shall pay to City five percent (5%) rather than
the percentages of the amount of ad valorem taxes as calculated in paragraph (b)
above for each year of use, i.e., 10% the second year in use, 15% the third year.
in use, etc. Payments under this provision shall never exceed fifty percent
(50%). The first year of use forpurposes of this new improvements payment shall
be deemed to commence on the first day of January next following the -date which
the new improvements are placed in use. •This provision shall apply to construc-
tion of new improvements or facilities and to the expansion of existing improve-
ments or facilities on said land. New improvements or facilities not included
within this paragraph (c) shall be deemed to be included within the provisions
• of paragraph (b) above.
(d) An additional amount for City fire protection equal to fifteen
percent (15%) of the amount which would be payable on 100% of assessed value
of improvements located in said land notwithstanding the provisions of para-
graph (b) above; provided, however, that if and as long as Company is a member
in good standing of the Refinery Terminal Fire Company, or its successor, it
shall not be obligated to pay the additional amount provided by this paragraph •
(d).
(e) At the request of Company, an alternative to the method of calcula-
tion set forth in paragraphs (a) through (d) above, the Company may make a payment
which is determined by considering using the method of calculation set forth in
paragraphs (a) through (d) above, said land and all other lands contiguous to
said land, or forming an integral part of Company's primary operation located
on said land, owned by Company inside the city limits as if all the value of
Company's lands above described and improvements thereon were outside the city .
limits, and deducting from the amount which would otherwise be due from such
calculation the property taxes actually due to City resulting from the assessed
values of land and improvements, excluding personal property, located inside the
City. If Company selects such alternative procedure, the amount due to City
under this section shall be the resulting difference or the minimum payment
required in paragraph (f), whichever is greater. In addition, Company
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shall provide City, by attaching hereto as Exhibit "8", a complete description '
of the lands contiguous to said land, or forming an integral part of Company's .
primary operation located on said land, owned by Company inside the city limits.
With respect to any new land acquired by Company after January 1,
1981, located inside the city limits, which is contiguous to said land, or forms.
an integral part of Company's primary operation located on said -land, such new
land may be considered in the alternative method of calculating the in lieu of.
tax payment as stated above, as of January 1 of the first year following the
date which such new land is acquired by Company. 'Company shall provide City a.,
new or revised Exhibit "8" which includes a complete description of such new land.,
(f) Minimum Payments. For any Company which qualifies as an industry•under
Ordinance No. 15898 and which has less than two million dollars ($2,000,000.00) in
market value of improvements on said land subject to this agreement, such Company,
in lieu of the payments in items (a),(b);(c),(d) and (e) above, shall pay the lower of:
(i) an amount in lieu of taxes on said land equal to one hundred
percent (100%) of the amount of ad valorem taxes based on the market value of.
said land which would be payble to City if said land were situated within the
city limits ,plus an amount equal to one hundred percent (100%) of the ad
valorem taxes on one million dollars ($1,000,000.00) of improvements which
would be payable to City if said improvements were situated within the city .
limits, regardless of whether one million dollars ($1,000,000.00) of improve-
ments exist on said land, or •
(ii) the amount+of.ad valorem taxes on land, improvements and per-
sonal property on said land which would be payable to City if said land, improve=
ments and personal property were situated within the city limits of City.
IV
Company agrees to pay to City on or before December 31 of each year
during the term hereof all payments in lieu of taxes provided for hereunder
without discount for early payment. The present ratio of ad valorem tax assess-
ment 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
subsequent computations hereunder. This Agreement and the method of deter-
mining and fixing the amount of in lieu of taxes payments hereunder shall be
subject to all provisions of law relating to determination of market value and
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taxation, including, but not limited to, laws relating to rendition, assessment,
equalization and appeal.
V
In the event company elects to protest the valuation set on any of its
properties by City for any year or years during the term hereof, it is agreed
that 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 as if
such property were located within the City. Notwithstanding any such protest
by Company, Company agrees to pay to City an initial in lieu of tax payment on
or before the date therefor hereinabove provided, at least the amount of the
payment in lieu of taxes on said land and improvements which would be due by
Company to City hereunder on the basis of renditions filed by Company with
City's Tax Assessor -Collector for that year or on the basis of the assessment •
.thereof for the last preceding year, whichever is higher. When the valuation •-
on said property has been finally determined, either as the result of final
judgment of a court of competent jurisdiction or as the result of other final
settlement of the controversy, then within thirty (30) days.thereafter Company
shall make to City any additional payment due based on such final valuation. .
If as a result of final judgment of a court of competent jurisdiction, or as .
the result of other final settlement'of the controversy, the. valuation of Com-
pany's property is established as an amount less than the amount used to com-
pute the initial in lieu of tax payment for such year by Company, then within
thirty (30) days thereafter City shall make to Company any payment due based_
on the difference between the initial payment and that which is computed based
on the final settlement.
VI
(a) In the event Company fails or refuses to comply with all or any
of the terms, conditions and obligations herein imposed upon the Company, then
this Agreement may be terminated at the option of City and/or the City may elect
to sue to recover any sum or sums remaining due hereunder or take any other •
action which in the sole discretion of the City it deems best. In the event .
the City elects to sue to recover any sum due under this Agreement, the same
penalties, interest, attorney's fees, and cost of collection shall be recover-
able by the City as would be in a suit to recover delinquent ad valorem taxes.
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(b) City shall be entitled to a tax lien on said land and improvements,
in the event of default in payment of in lieu of taxes payments hereunder, which
may be enforced by City in the same manner as provided by law for the collection
of delinquent ad valorem taxes. .
(c) In the event City breaches this Agreement by annexing or attempting
to pass an ordinance annexing any of the said land, Company shall be entitled to
enjoin City from the date of its breach for the balance of the term of this Agree-
ment, from enforcing any annexation ordinance adopted in violation of this Agree-
ment and from taking any further action in violation of this Agreement. If
Company elects to pursue this remedy, then so long as City specifically performs'
its obligations hereunder, under injunctive order or otherwise, Company shall ..-
continue to make the annual payments required by this Agreement.
•
VII
Company agrees to provide to City at Company's expense, a survey plat
and field note description of said land. •With respect to Company's acquisition
of new land, as described in Article III(a) above, which becomes included in
said land, Company agrees to provide to City at Company's expense, a survey
plat and field note description of such new land.
VIII •
If any attempt to annex any of said land owned, used, occupied, leased,
rented or -possessed by Company, is made by another municipality, or if the incor-
poration of any new -municipality should be attempted so as to include within its
limits such land or property, the City shall seek a temporary and permanent in-
junction against such annexation or incorporation, with the cooperation of Com-
pany, and shall take such other legal action as may be necessary or advisable
under the circumstances. The cost of any such legal action shall be borne
equally by the parties hereto; provided, however, the fees of any special legal'
counsel shall be paid by the party retaining same.
In the event City and Company are unsuccessful in obtaining a temporary
injunction enjoining such attempted annexation or incorporation, Company shall
have the option of (1) terminating this Agreement, effective as of the date of ••
such annexation or incorporation, or (2) continuing to make the in lieu of taxes
payments required hereunder. Such option shall be exercised within thirty (30)
days after the application for such temporary injunction is denied. In the
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event Company elects to continue such in lieu of taxes payments, the City shall
place future payments hereunder together with part of the payment for the calen-
dar year in which such annexation or incorporation is attempted, prorated to the
date such temporary injunction or relief is denied, in a separate interest -bear
ing escrow account which shall be held by City subject to the following:
(a) In the event final judgment (after all appellate'review, if any,
has been exhausted) is entered denying a permanent•injunction and/or upholding
such annexation or incorporation, then all such payments and accrued interest
thereon shall be refunded to Company; or
(b) In the event final judgment (after all appellate review, if any,. .
has been exhausted) is entered granting a permanentinjunction and/or invali- -
dating such annexation or incorporation, then all such payments and accrued
interest thereon shall be retained for use by City.
IX
•
The_benefits accruing to Company under this Agreement shall also ex-
tend to Company's "affiliates" and to any properties presently owned or acquired •
by said affiliates within the area described in Exhibit "A" to this Agreement,
and where reference is made herein to land, property and improvements owned by
Company, that shall also include land and improvements presently owned by its
affiliates. The word "affiliates" as used herein shall mean (1) all companies
with respect to which Company directly or indirectly, through one or more inter-
mediaries at -the time in question, owns or has the power to exercise control - .
over fifty percent (50%) or more 'of the stock having the right to vote for the
.election of directors; or (2) all corporations which are members of a "controlled
group of corporations" (as that term is defined in Section 1563(a) of the Internal
Revenue Code of 1954, as amended) of which the Company is a member. •
X
This Agreement shall inure to the benefit of and be binding upon City
and Company, and upon Company's successors and assigns, affiliates and subsidi-
aries, and shall remain in force whether Company sells, assigns, or in any other
manner disposes of, either voluntarily or by operations of law, all or any part
of said land, and the agreements herein contained shall be held to be covenants
running with said land for so long as this Agreement or any extension thereof
remains in force.
XII
(a) Whenever the Company sells a contiguous portion of said land con-
sisting of 20 acres or more to an ancillary industry which will be engaged on
the property in the further processing of the product of the Company or the
preparation of raw materials prior to their processing by the Company,then
platting of such property may be deferred under the following conditions:
(i) The seller shall submit for approval by the City Council a
site plan indicating the proposed water, sewer, drainage, access, and street
plans for said land.
(ii) Both the buyer and the•seller shall enter into an agreement
with the City requiring the platting of said land in the event the buyer'suse
of the property materially changes from the permitted uses described above, or
if the Company's industrial district agreement terminates without extension.
The seller shall remain solely responsible for any payments in lieu
of taxes attributable to the buyer's holdings on the property unless the buyer
has entered -into a supplemental industrial district contract with the City con-
cerning such holdings.
(b) Whenever the Company properly plats, subdivides and conveys to a
buyer other than an affiliate a portion of the lands described in Exhibit "A"
and/or Exhibit "B", Company shall furnish to the City's Tax Assessor -Collector
a revised Exhibit "A" and/or Exhibit "B", which revised exhibit or exhibits
shall constitute an amendment to this Agreement, effective for the calendar
• year next following the calendar year in which the conveyance occurred. Seller
shall remain solely responsible for any payments in lieu of taxes for the calen- .
dar year in which the conveyance occurred. In the event the Company improperly
plats, subdivides or conveys a portion of the lands described in Exhibit "A" or:
Exhibit "B", Company shall remain solely responsible for any payments in lieu of
taxes applicable to such property, including improvements thereon, as if no such
conveyance had occurred.
XII
If City enters into an agreement with any other landowner, within the
extraterritorial jurisdiction of the City, engaged in a similar industry, as ,
classified by Major Group according to the Standard Industrial Classification
Manual (1) or enters into a renewal of any existing industrial district agreement
(1) Standard Industrial Classification Manual . (Executive Office of the President -
Office of Management and Budget, Statistical Policy Division, 1972). 659 pp.
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with an industry of the same classification, having the same or approximately
the same expiration date, which contains in lieu of tax payment terms and pro—
visions more favorable to such landowner than those in this Agreement, Company
and its assigns shall have the right to either terminate this Agreement, or
}
amend this Agreement to contain such more favorable in lieu of tax payment terms
•
and provisions.
XIII
In the event any one or more words, phrases, clauses, sentences, para—
graphs, sections, articles or other parts of this Agreement or the application
thereof to any person, firm, corporation or circumstances shall ever 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 Agree—
ment shall be deemed to be independent of and separable from the remainder of
this Agreement and the validity of the remaining parts of this Agreement shall
not be affected thereby.
ENTERED into this day of , 19 _
ATTEST: (Company)
Secretary
ATTEST:
Secretary
(Landowner)
By
(Company)
(Lessee)
By
ATTEST: (Company)
Secretary
(Improvements Owner)
By
ATTEST: CITY OF CORPUS CHRISTI
By
City Secretary R. Marvin Townsend, City Manager
APPROVED: DAY OF , 1980:
' J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant City Attorney
..in_
Corpus Christi, exas
/7 day of, /.__•�
19,0
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance, a
public emergency and imperative necessity exist for the suspension of the Charter
rule or requirement that no ordinance or resolution shall be passed finally on
the date it is introduced, and that such ordinance or resolution shall be read
at three meetings of the City Council; I, therefore, request that you suspend
said Charter rule or requirement and pass this ordinance finally on the date it
is introduced, or at the present meeting of the City Council.
The Charter rule was
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
Respectfully,
A,
MAYOR_Pm.Tem / ,(/ _ ' '1
THE CITY OF CORPUS' CHRISTI, TEXAS
suspende by the follop'ngvote:
L....,
The above ordinance was passe, by the following vote:
Luther Jones
Edward L. Sample
Dr. Jack.Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
15941