HomeMy WebLinkAbout16142 ORD - 04/01/1981AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL
DISTRICT AGREEMENT WITH J. I. Hailey, Inc. and
Terminal Transportation, Inc. FOR A TERM OF SEVEN (7)
YEARS COMMENCING JANUARY 1, 1981; DESIGNATING AN AREA
TO BE KNOWN AS "CORPUS CHRISTI INDUSTRIAL DISTRICT NO.
• 11 "; EXEMPTING SUCH AREA FROM ANNEXATION AND PROVID-
ING FOR AN ANNUAL PAYMENT IN LIEU OF TAXES TO THE CITY
DURING THE TERM THEREOF-; ALL AS MORE FULLY SET FORTH
IN THE INDUSTRIAL DISTRICT AGREEMENT, A SUBSTANTIAL —
COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF,
MARKED EXHIBIT 1.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager be and he is hereby authorized
to execute an Industrial District Agreement with J. I. Hailey, Inc. and
Terminal Transportation, Inc.
for a term of seven (7) years commencing
January 1, 1981; designating an area to be known as "Corpus Christi Industrial
District No. 11"; exempting such area from annexation and providing for an
annual payment in lieu of taxes to the City durino the term thereof; all as
more fully set forth in the Industrial District Agreement„.a substantial
copy of which is attached hereto and made a part hereof, marked Exhibit 1.
16142
WORMED
P 2 1994
BSEP a 'r iid4
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INDUSTRIAL DISTRICT AGREEMENT
' THE STATE OFA TEXAS
COUNTY OF NUECES #
CITY OF CORPUS CHRISTI 0
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 J.I.Hailey, Inc. & Terminal Transportation, Inc.
(Landowners)
Texas corporations, J. I. Hailey, Inc.
(Lessee)
, a Texas
corporation, alta:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx . .
XXNPOliitalgtMINKOOK
?i XXXXXXXxxxxxxxxxxxxXXXMONVO=Citifg 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 asbeing 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.
11
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 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- asindustrial
districts, herein collectively called "Districts" and Ordinance No. 15949
designating land areas as Corpus Christi Industrial Development Area Ho. 1 and
Corpus Christi Industrial Development Area No. 2; and
WHEREAS, City desires'to encouranethe updating, expansion and growth
of industries within said Districts and for such purpose desires to enter into
this Agreement with Company:
N014, 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:
City covenants and agrees that during the term of this Agreement, and
subject to the terms and provisions hereof, said land shall retain its extra-
territorial status as an industrial district and shall continue to retain such
status until and unless the same is changed pursuant to the terms of this Agree-
ment, Except as herein provided City further covenants and agrees that said
land shall be innune from annexation. likctigitaxicCcxubmcxiox
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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
additional payments to City under Article'III(d) hereof, and such other City
services as are being provided to and paid for by Company on the date 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 regu—
lations (a) governing zoning and platting of said land 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 annexa—
tion granted herein shall terminate on that date, but all other terms of this
Agreement 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 31 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_dur-ing the.:te ;hereof;_Company-sbal=t= t _Gi_t ,..=. =
(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 iV
relates directly to the primary use of the parent tract,
thimiallIngarnamile 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 (excluding personal
property) 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
improvements were situated on land within the city limits of City.
On or before-March 31 of each year during the term of this Agree-
ment, 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.
(c) With respect to any new improvements or facilities, which are
hereby defined as those being completed after January 1, 1974, Company shall
pay to-City five, percent (5%) rather than the percentages of the amount of ad
valorem taxes as caluclated 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
for purposes 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 construction of new improve-
ments or facilities and to the expansion of existing improvements or facilities
on said land. Mew 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 shall
provide City, by attaching hereto as Exhibit "B", 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 "B" 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:
- 5 -
(i) an amount in lieu of taxes on said land equal to one hundred
percent.. (100;x). of. themamount.of.adLuaelorem .taxes ha:sed. onid- kct.
•
said land which would be payableto 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 i.f 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
personal property on said land which would be payable to City if said land,
improvements- and personal property were situated within the city limits of
City, plus an -amount in lieu of City sales tax equal to that which would be
remitted to the State Comptroller annually by Company, and which would later
be remitted to City by the_State Comptroller, if said land were situated
within the city limits.
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 determining
and fixing the -amount of in lieu of taxes payments hereunder shall be subject
to all provisions of law relating to determinations of market value and taxation,
including, but not limited to, laws relating to rendition, assessment, equaliza— .
tion 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 an 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 an 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 Company's property is established as an amount
less than the amount used to compute 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
recoverable by the City as would be in a suit to recover delinquent ad valorem
taxes.
(b) City shall be entitled to a tax lien on said land and improve-
ments, in the event of default in payment of in lieu of tax 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, eNcli lex o'9ili45xl lxlWilcW.
}1x4ottinktrxeiixemx Company shall be entitled to enjoin City from the date of ""
its breach for the balance of the term of this Agreement, from enforcing any
annexation ordinance adopted in violation of this Agreement 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.
-7-
VII
Company agrees to provide to City at Company's expense, a survey
plat and field note description'of 'said land: "With respect to Copiy'
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
injunction against such annexation or incorporation, with the -cooperation of
Company, 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
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 cal-
endar year in which such annexation or incorporation is attempted, prorated to
the date such temporary injunction or relief is denied, in a separate interest-
bearing 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 permanent injunction 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 benefi9ts�accruirigto`Companyunder this Agreement shall also
extend 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 improve—
ments 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 intermediaries 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 Company is
a member.
This Agreement 'shall' inure to the benefit of and be binding upon City
and Company, and upon Company's successors and assigns,
aries, and shall remain in force whether Company sells,
manner disposesof, either voluntarily or by operations
of said land, and the agreements herein contained shall
running with said land for so long as this Agreement or
remains in force. -
affiliates and subsidi—'
assigns, or in any other
of law, all or any part
be held to be covenants
•
any extension thereof
XI
(a) 'Whenever the Company sells a contiguous portion of said land
consisting 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's use
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
1 ieu'"of =taxes-attrtbutabl'e-tot'tie=lfEtyer's'IcOTLri'nas-onr vp�r Ly arFT'e, Crr.
buyer has entered into a supplemental industrial district contract with the
City concerning 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 foranypayments 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(l) or enters into a renewal of any existing industrial district agreement
with an industry of the same classification, which contains in lieu of tax pay-
ment terms and provisions 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,•
paragraphs, sections, articles or other parts of this Agreement or the appli-
cation 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
(1) Standard Industrial Classification Manual. (Executive Office of the President -
Office of Management and Budget, Statistical Policy Division, 1972). 659 pp:
words, phrase, clause, sentence, paragraph, section, article or other part
of the: Agreement= shalt, sha1ibedeemed eckbe {ndependent::n£ aneF se{snr tibrfr t[ =; —
remainder of this Agreement and the validity of the remaining parts of this
Agreement shall not be affected thereby.
ENTERED into this / day of �i��r.., rJ
(I,•,
EST:'.,
, 19 g/.
J.I. HAILEY, INC_ (Company)
(Landowner)
By , �..
cretary,. Vice -President & General Manager
.;'.ATTEST:
./ e,=
'.,Secretary
'ATTEST:
' (.11 ,
%Secretary
Inc.
TERMINAL TRANSPORTATION, (Company).
•(Landowner)
By . ,may G ---,
President
J.I. HAILEY, INC. (Company)
• (Lessee)
BY'1!_�...�_CG-... ;.
Vice -President & General Manager
ATTEST: CITY OF CORPUS CHRISTI
By
City Secretary R. Marvin Townsend, Cfty Manager
APPROVED: _ DAY OF , 19_
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant City Attorney
EXHIBIT "A"
LEGAL DESCRIPTION
34.969 acres of land, being
TRACT I: 4a11 of Block "A", Section 9, Range V, Kinney Sectionized Lands,
a subdivision near the City of Corpus Christi, Texas, as shown by map
thereof, recorded in Volume 26, at page 64, of the Map Records of Nueces
County, Texas, together with all adjoining dedicated acreage, if any,
owned by Grantor, atmMoraMmokatIx4x Igmeal mac s e SAVE AND EXCEPT, Lots
Two (2) through and including Sixteen (16) of a subdivision of said
Block "A", off the Northern portion of said Block "A", Section 9,
Range V. Kinney Sectionized Lands as said lots and subdivision appear
on the map above referred to; further SAVE AND EXCEPT a tract of land
out of Lot No. One (1), Block "A", Section 9, Range V, Kinney Sectionized
Land, as shown on the plat thereof recorded in Volume 26, at Page 64 of
the Map Records of Nueces County, Texas and being more particularly
described by metes and bounds as follows:
BEGINNING at the most Southerly Southwest corner of Lot No. Fourteen
(14), Block A, Section 9, Range V, Kinney Sectionized Lands and an
interior corner of said Lot 1, Block A for the Southeast corner of
this tract;
THENCE N 1° 00' 00" W along the West line of Lots 14, 15, and 16; at
100.74 feet pass the most Southerly corner of Lot 15, at 375.13 feet
pass the most Southerly corner of Lot 16, and in all a distance of
649.52 feet to a point the Southwest corner of Lot 16, an interior
corner on Lot 1 and an interior corner of this tract;
THENCE N 20° 22' 23" E along the Northwest line of Lot 16, a distance
of 261.34 feet to the Northwest corner of Lot 16, the most Northerly
Northeast corner of Lot 1 and the Northeast corner of this tract,
said point lying in this South right-of-way line of Up River Road,
and the North line of Lot 1;
THENCE N 69° 37' 37" W along said South right-of-way line of Up River
Road the North line of Lot 1, a distance of 50.0 feet -to a point
for the Northwest corner of this tract;
THENCE S 20° 27' 23" W, 50 feet Northwest of and parallel to, the
Northwest line of Lot 16, a distance of 270.77 feet to a point for an
interior corner of this tract;
THENCE S 1" 00' 00" E, 50 feet West of land parallel to the West line
of Lots 16, 15 and 14, a distance of 658.52 feet to a point for the
Southwest corner of this tract, said point lying on the Westerly
extension of the South line of Lot 14;
THENCE N 89° 30' 23" E along said Westerly extension of the South line
of Lot 14, a distance of 50.0 feet to the POINT OF BEGINNING, forming
a tract of land embracing 46,002.49 square feet or 1.056 acres;
TRACT II: Being 1.13 acres of land out of that certain grant made by
Spanish Government to Enrique Villareal, Abstract 1 for Nueces County,
Texas, and being a part of Section 8, Range V, in what is known as the
H. L. Kinney Sectionized Lands, and being also a portion of that certain
tract of land conveyed.by J. A. Hughes, et al to A. J. Till by Deed
dated May 28, 1923, of record in Volume 140, at page 629 of the Deed
Records of Nueces County, Texas, said tract being more particularly
described by metes and bounds as follows:
BEGINNING at a point in the N right of way line of the proposed Inter-
state Highway No. 37, for the SW corner of this tract;
THENCE N 40° 49' 37" E, 202.86 feet to a point in the North line of
the J. A. Till 52.6 acre tract for the NW corner of this tract;
THENCE N 89° 35' 30" E, 109.41 feet along the N line of said Till 52.6
acre tract to point for NE corner of this tract;
L- Xu,6,T „A
/,VDUST€/AL ,OiSr r- .46,eEarn z %y
T. !. /J4I&f'7, /e/C. r- tgl INAt�
THENCE S 0° 36' 48" E, 335.39 feet to point in North right of way
r'=^�'='^'•'^^lime of"-the''ro osed=2nterstai-LL::'rfi gh:sa Ns'•-'3.7'frrr_ the-8�r �`_�.__— iz,---_--'-- �'=`r`
this tract;
THENCE N 53° 36' 02" W, along said right of way line 305.18 feet to
place of beginning, including all appurtenant rights and easements,
if any.
E XN/t3,/T "A "
/A/Dap-le/A L 0/-7 r .P &v7
�.
L. NA/BEY / NC. Y Te.f'n'NAL_
7-,Fnnl3PoRt'Arrijon/'=.in
THE STATE OF TEXAS
COUNTY 'OF NUECES
CITY OF CORPUS CHRISTI
INDUSTRIAL DISTRICT AGREEMENT
Q -
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 J.I.HAILEY, INC. and TERMINAL TRANSPORTATION, INC.
(Landowners) .
Texas Corporations, J.I. HAILEY, INC.
(Lessee)
a Texas
corporation, a dxxxxxxxxxxxxxxxxxxxxXxxxxxxxxxxxxxxxxxxxxxxxxXXxxxxxxxx
(Improvements Owner) •
a: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxwmaxx xx hereinafter collectively. called
- "COMPANY", .
WITNESSET.H:.
.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 att
industries therein, and
City Council as •eing i
. WHEREAS
ments on land wi
the locat'
uch policy
Compa
new and expansion of existing _
hereby reaffirmed and adopted by this
interest of the City and its citizens; and
y is the owner or lessee of land or owner of improve—
e extraterritorial jurisdiction of the City of Corpus.
"Christi,'which la all, upon execution of this agreement by the City, be
known as "Corpus.Christi Industrial District No. II' "
and which land is•more particularly•described in Exhibit "A"' "!!!!!!!'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
•
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 ....erg+4.....: of r_____..t_. b___ -. _ _• - -
s, except as
regulations relating to the delivery of utility services and industrial waste
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 agreement: -
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:
City covenants and agrees that during the term of. this Agreement, -and
subject to the terms and provisions hereof,•said land shall retain its extra—
territorial status as an industrial' district and shall continue to -retain such:.'
.status until and unless the same 'is changed pursuant to the terms of this Agree
menta Except as•herein provided City furiher covenants and agrees that said , _
land shall be immune from annexation. "
During the term hereof City shall. have no obligation to exten•
d -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 tern hereof, City shall
not require -with respect to said land compliance with its rules or regulations
(a) governing zoning and platting of said land or any additions thereto outside
the City limits; provided, however, Company further agrees that it will in no
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
ell
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 31 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 (100z).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
toadd 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. .
(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
(501). The first year of use for.purpoes 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. Hew 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 (151) 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 mayrake apayment
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
-4-
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 news
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 "B" 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
-5-
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
fsuch 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—
parry'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_
IMO(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 incur
7.
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
-7-
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 permanent injunction and/or inval1-
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.
XI
. (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 industrialdistrict 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) cr 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.
-9-
41.
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 provisions 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,
paragraphs, 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 Agreement 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 _6+c ry , 1981.
J.I. HAILEY, INC. (Company)
(Landowner)
ATTEST: -
Secretary
ATTEST:
: ,'Secretary.,
''ATTEST:
•V ee-President & General Manager
TERMINAL TRANSPORTATION, INC. (Company)
(Landowner)
President
J.I. HAILEY, INC.
(Lessee)
(Company)
By. L�•t Ll
Secretary Vice -President & General Manager
ATTEST: CITY OF CORPUS CHRISTI
By
Cit( Secretary R. Marvin Townsend, City Manager
APPROVED: DAY OF , 1981:
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant City Attorney
-10-
•
Nueces - Cou ty Texas,ArtaittrdeAtti.iikdIARR92 situated in, Nueces
• County, Texas, described as follows, to -wit: EXHIBIT "A"
.TRACT Ii All of Block "A", Section Nine+(9),..Range V,,KINNEY SECTIONIZED LANDS,'.
a subdivision near the City of Corpus Christi,' Nueces County, Texas, as shown by
map recorded in Vol. 26, Page 64, Map Records of Nueces County, Texas, together,,.
;with all adjoining dedicated acreage, if any, owned by Grantor; SAVE AND EXCEPT,
Lots 2 thru 16 of a subdivision of Block "A" off the northern portion -of Block "A",
Section 9, Range V, Kinney Sectionized Lands as said lots and subdivision appear on
the map above referred to. Further, SAVE AND EXCEPT, a tract of land out of Lot,l,
Block "A", Section 9, Range V, Kinney Sectionized Lands, as shown on plat recorded
in Vol. 26, Page 64, Map Records of Nueces County, Texas, and being described by
metes and bounds as follows:
L.
BEGINNING at most southerly SW cornei of Lot 14, Block A, Section 9, Range V, Kinney
Sectionized Lands and an interior corner of Lot 1, Block A, for SE corner of this
tract; THENCE, N. 1 deg. 00' 00" W. along W. line of Lots 14, 15 and 16 at 100.74
ft. past most southerly corner of Lot 15, at 375.13 ft. past most southerly corner
of Lot 16, and in all a distance of 649.52 ft. to a point the SW corner of Lot 16,
an -interior corner on Lot 1 and an interior corner of this tract; THENCE, N. 20 deg.
22' 23" E. along NW line of Lot 16 a distance of 261.34 ft. to NW corner of Lot 16, t
most northerly NE corner of Lot 1 and NE corner of this tract, said point lying in
S. ROW line of Up River Road, and.N. line of Lot 1; THENCE, N. 69 deg. 37' 37". W.
along said S. ROW line of Up River Road and N. line of Lot 1 a distance of 50.0 ft.
to a point for NW corner of this tract; THENCE, S. 20 deg. 22' 23" W. 50 ft_ NW of
and parallel to NW line of Lot 16, a distance of 270.77 ft. to a point for an interio
corner of this tract; THENCE, S. 1 deg. 00' 00" E. 50 ft. W. of and parallel to the
W. line of Lots 16, 15 and 14, a distance of 658.52 ft. to a point for SW corner of
this tractr said point lying on westerly extension of S. line of Lot 14; THENCE, N.
89_leg, 30'23" 1._ along said westerly extension of S. line of Lot 14, a distance of
50.0 ft. td'POINT OF BEGINNING, forming a tract of land embracing 46,002.49 square
ft., or 1.056 -acres. - -
TRACT II: 1.1'6 acres of land out of that certain grant made by the Spanish
Government-to'Enrique Villareal, Abstract 1, for Nueces County, Texas, and being -
'a part of Section 8, Range V, in what is known as H. L. Kinney Sectionized Lands,
in Nueces'County, Texas, and being also a portion of that certain tract of land - -
conveyed by J. A. Hughes et al to A. J. Till by deed dated May 28, 1923, recorded
in Vol. 140, Page 629, Deed Records of Nueces County, Texas, and said tract being
described by 'metes and bounds as follows: .
_BEGINNING at a point in N. ROW line of proposed Interstate Highway No. 37 for SW
corner of this tract; THENCE, N. 40 deg. 49''37" E..202.86 ft. to a point in•N...,.line
- of J. A. Till 52.6 acre tract for NW corner of this tract; THENCE, N.•89 deg. 35'
30" E. 109.41 ft. along N. line of said Till 52.6 acre tract to point for NE corner._
. of this tract; .THENCE, S. 0 deg. 36' 48" E. 335.39 ft. to point in N. ROW line of
proposed Interstate Highway No. 37 for SE corner of this tract;-•THENCE,;N:.:53 deg:
Z.36' 02" W. along said ROW.line 305,.18. ft. TO PLACE OF BEGINNING. `
- . ..... • ... -:-. ... . ..,. . .1{. ... i ,;.7.',14---.1.f. .t.h'i= 'az '...til_ t _it :,t
�•. the land by this policy is: free �imp.= z�>••••-
,`-The eslate-of:interest in. insured .. -. _ _ .
FEE .SIMPLE 4:
f:2.:The land referred to in this policy is described as follows: - J. - ' :`
All of Block "A", Section 9, RANGE V, KINNEY SECTIONIZED LANDi;.- .-'
:.: TRACT I: '
a subdivision near the City of Corpus Christi,-Nueces County,-:•-;! �.G•Y:•
Texas, as shown: by may thereof;.recorded in Volume 26, Page 64,_��L_
'of the Map Records of Nueces County, Texas, together With all ,-•,
adjoining dedicated acreage,_if any, owned by Grantor, SAVE PND;:c
EXCEPT-, Lots.Two (2) through and including
Sixteen (16) of of. a-~ ~,
subdivision'of'said Block "A'_",p '-` `
said Block "A", Section 9,,Range V, Kinney Sectionized Lands-;',---- .='-
as said lots:and••'.subdivisionappear on the map above referred ''--,:i.:.. 2
'-=_
to; further ,SAVE ANDS XCEPT atract of land out of Lot No. Ona (1),=
Block "A",: Section_9r.RangaaV' K mey Sectionized Land, as shown-
eo..:-.:.._...,
on the platT-tliereof'n-recorasdnVolvma 26, at Page 64, of the Map
Records of-NoeceS Couatyr:=Texas and being more particularly des-: y;
cribed by%met.s umdsas;,foLlows: .
=: „,...„,„:„.,„„,y,..,.;747.4). ------.•r-,, - ��. .;r.:
,
BEGINNING.atbgmostsoutherly�southwest corner of Lot No. Fourteen_-,
(14), Bloc]cA Section 9;'RangetV- Kinney Secti.onized Lands and an
interior corner;cf said;Lot 1'-,fBlock A for the southeast corner of
this tract;.;*- G,' _=
THE•NCE N 1°00 '}00"W along:the,west line of Lots 14;15 and 16;
at 100.74 feet;passthe_mostsoutherly corner of Lot 15, at 375.13
feet pass themost;,southerly:corner of Lot 16, and in all a distance
of 649.52 feenoint,the southwest corner of Lot 16, an interior
corner on Lot lf.a?id•an-?nterior corner of this tract;
•
SEE CONTINUATION SHEET...
THENCE N 20° 22' 23" E along the northwest line of Lot 16 a distance
of 261.34 feet to the northwest corner of Lot 16, the most northerly
northeast•corner of Lot 1 and the northeast corner of this tract,
said point lying in this south right-of-way line of Up River Road,
and the north line of Lot 1;
-THENCE N 69° 37' 37" W along said south right-of-way line of
Up River Road and the north line of Lot 1 a distance of 50.0 feet
to a point for the northwest corner of this tract;
THENCE S 200 22' 23" W, 50 feet northwest of and parallel to
the northwest line of Lot 16, a distance of 270.77 feet to a point .
for an interior corner of this tract; - -
THENCE S 1° 00'00-E 50 feet west.'of and parallel to the
": west line -
of Lots 16, 15 and:14, a distanceof 658.52 feet to a point for _
the southwest corner of this tract, said point lying on the westerly
- extension of the south line of Lot -14; .- •
+ •'r 5
THENCE N 89° 30'.23":,E,along.saidwesterly extension of the south '-
line of Lot:14 a.distance`of-.50 O.feet to -the POINT OF BEGINNING, •-
forming a tract:of.land:embracitig 46 -;002:49 -square feet or 1.056 acres;
TRACT II: Being 1.13 acres,of.land out:of,ttatr;certain grant made by the Spanish -
Government to. Enrique=Villarrea1;'Abstract 1 for Nueces County, Texas,.
and being a part of Section 8,••Range-V;'in what is known as the
H. L. Kinney sectionized Lands,' -and being also a portion of that
certain tract of land conveyed by J -A.. Hughes and others to A. J. .
Till by deed dated May 28, 1923;.of:record in Volume•140; Page 629 of
the Deed Records of Nueces County, Texas, said tract being more .
.particularly described by metes and bounds as follows:
BEGINNING at a point in the N Right -of -Way line of the proposed
Interstate Highway No. 37, for the SW corner of this tract;
THENCE N. 40° 491 37".E. 202.86 feetrto a point in the North line of
the J. A. Ti11.52.6 acre tract -for the NW corner of this tract;
THENCE N. 89' 35'-30"-'E. 109.41 feet along the N. line of said Till
52.6 acre tract to point,for NE.corner of this tract;
THENCE S. 0° 36' 48" E':'335.39..feet:to point in North Right -of -Way
line of the proposed:: Interstate:Hi.ghway No.•37 for the SE corner of
this tract; .,::•= - _ .
• , ._ TM -NCR N. 53°.36' 02!!--:,14:.-alongsaid Right -of -Way line 305.18 feet to
!WITNESSETH: _
n consideration-of'_the ren:tal-and other. -covenants -
to be paid, kept and performed byJ.,essee, Lessor hereby
leases to Lessee the following described property -lying
•
and being situated in Nueces'County, Texas, and being more
particularly described as follows : - - -:
' TRACT A - Being 32.019.acres of land.situated
' in Nueces County, Texas, 2-3/4-miles,north-
• west of the County Seat of:.Nueces County, Texas,-:
lying north of and fronting on Navigation Blvd.
and located 534 feet northwest of the north-
westerly corner of Avery Point -Turning -Basin,
and being more fully described by metes and
bounds as follows: -, . . - .• -
BEGINNING at a point in the -north right-of-way
line of Navigation Boulevard and in the -south'--;-
line of this tract. Said•point bearing,N. 23°
20' 48" E., 1522.36 feet and N. 66° 34'-:58"-W.-•
342.79 feet from'the U.S.E.D-, 4-x 4 Hub; -which' .
Hub is a northwesterly extension of the -South. ,-
Bulkhead line of Avery Point Turning Basin and -
Industrial Canal, and N. 66?"39' 12" W. -'682.42_ -
feet from the southwest corner of Avery Point..
-Basin.. . . .. ,. • 4• .
THENCE continuing' N. 66° 34;'''58" W. 801.12-,_
feet along:the north right-of-way line of Navi-
- gation Boulevard to•.'a point which is,the be-_
ginning of a left- curve in: thessaid.rig
way line. : "'� ' r'. ?; : `:':=;,�; ,••f.,
THENCE along said. left `curve -:having': a: radius' '-��€;
of 1234 feet'a :di.stance'of 173 33: feet to a '- ��;
4A, it
point for :the southwesterly; orner' of • Tract -A h
• ,myµ r
_ _ ._ •'�=�`:..--%�*T ...+ .'1 3....:. . �c• �!-y..—
THENCE N. 0° 09' 58"WW. 049.26 feet to a
-point for the northwest corner o£ Tract A.
THENCE N. 89° 50' 02" E. 449.43 feet to a point.
•
THENCE S. 0° 09' 58"•E. 196.20 feet. to a point.
THENCE N. 89° 50' 02""E. 449.43 feet to a point.
THENCE S 0° 09' 58";E..196.20 -feet to.a point. -
THENCE N. 89° 50' 02" E. 449.43 feet to a point
for the northeast-corner•of this Tract A. -
THENCE S. 0° 09' 58" -E. -1131.97 -feet to a point
for the southeast corner of this Tract A in'the
north right -of -Way line of Navigation Boulevard.
THENCE aiong'the North right-of-way line of
Navigation Boulevard N. 66° 34' .58" W. 490.39
feet -to the place of beginning and containing
in all 32.019 acres,' more or less:
-All bearings are based on Grid North for Texas,
South Zone, as established by the U.' S. Coast
and Geodetic Survey. -
That the foregoing ordinance w s read fox,,he firpt time an passed to its
second reading on this the day of 'q� , 19 , by the
following vote: C
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K. Dumphy
Leopoldo Luna
Betty N. Turner
Cliff Zarsky
That the foregoing ordinance wps read fo he � �sec/ppn�d time and passed to its
third reading on this the „ 2 , day of . ff. , 19 , by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K. Dumphy
Leopoldo Luna
Betty N. Turner
Cliff Zarsky
That the for aping ordinan
on this the -1 % day of
was read_for the
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K.'Dumphy
Leopoldo Luna_'
Betty N. Turner
Cliff Zarsky
19
ird time and passed finally
, by the following vote:
PASSED AND APPROVED, this the day of , 19_/
ATTEST:
City Secretary
APPR VED: r
j DAY OF A4arr � , 1981 :
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assisif'n� City Attor
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
16142
3,Qrski
MOTION TO AMEND
moved and
eem-
seconded this motion to amend the ordinance authorizing the City Manager to exe-
cute an industrial district agreement with J.I. Hailey, Inc. and Terminal
Transportation, Inc.
for a term of seven (7) years commencing
--January 1, 1981, passed onfirstreading by the City Council of the City of Corpus
Christi on March 18, 1981.
1. Amending the sentence comprising the second paragraph of Article I
of Exhibit 1 to hereafter read as follows:
"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 additional payments to City under
Article III(d) hereof, and such other City services as are
being provided to and paid for by Company on the date hereof."
2. Amending the first sentence of Article III(c) of Exhibit 1 to
hereafter read as follows:
• __"with respect to any new improvements or facilities, which
are hereby defined as those being completed after January 1,
1974, Company shall pay to City five percent (5%) rather than
the percentage 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.'
3. Amending the sentence comprising Article XII of Exhibit I to
hereafter read as follows:
"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
with an industry of the same classification which contains in
lieu of tax payment terms and provisions more favorable to such
landowner than those
shall have the right
amend this Agreement
of tax payment terms
in this Agreement, Company and its assigns
to either terminate this Agreement, or
to contain such more favorable in lieu
and provisions."
4. Amending the first paragraph of Article I of Exhibit 1 to hereafter
read as follows: -
"City covenants and agrees that during the term of this
Agreement; and subject to the terms and provisions hereof,
said land shall retain its extraterritorial status as an -
industrial district and shall continue to retain such status
until and unless the same is changed pursuant to the terms
of this Agreement. Except as herein provided City further
covenants and agrees that said land shall be immune from
annexation. Whenever it may be necessary, in the opinion
of the. City Council', to annex land not immune from annexa-
tion by an effective industrial district• agreement pursuant
to Ordinance 15898, and in order to carry out such annexation
it -is necessary, in the opinion of the City Council, to annex
a strip or corridor of land contained within Exhibit A,:Companli
shall: designate, within sixty (60) days after the City sends
Company writLen request -to provide such strip or corridor, a
strip or corridor (hereinafter called "annexation corridor")
in a width and length legally sufficient to accomplish a con-
tractual annexation of.the annexation corridor pursuant to
Article I, Section 2 of the City Charter of Corpus Christi and
to enable the City to annex the aforementioned land not immune
from annexation.' Said annexation corridor shall thereafter be
included within the corporate boundaries of the City of Corpus
Christi, and shall become a part thereof, subject to the terms
of Article I, Section 2 of the City Charter of Corpus Christi,
as amended. In the event that Company fails or refuses to make
such designation legally sufficient to accomplish such purpose,
the City may, at its option, either (1) terminate this industrial
district agreement and any guarantee of impunity from annexation
shall thereafter be void, or (2) seek a mandatory injunction from
any court of competent jurisdiction to compel Company to make
such designation and perform such other acts as may be necessary
for the City to annex said annexation corridor pursuant to this
agreement and to Article I, Section 2 of the City Charter, or
both."
5. Amending the first sentence of Article VI(c) of Exhibit 1 to
hereafter read as follows:
"In the event City breaches this Agreement by annexing
or attempting to pass an ordinance annexing any of the said
land, except as provided in Article I of this Agreement,
Company shall be entitled to enjoin City from the date of
its breach for the balance of the term of this Agreement,
from enforcing any annexation ordinance adopted in violation
of this Agreement and from taking any further action in vio-
lation of this Agreement."
6. Amending Article III(f) of Exhibit 1 to hereafter read as follows:
"(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) 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 payable 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 doliars
($1,000,000) of improvements which would be payable to
City if said improvements were situated within the city
limits, regardless of which one million dollars ($1,000,000)
of improvements exist•on said land, or
"(ii) the amount of ad valorem taxes on land, improve-
ments and personal property on said land which would be
payable to City if said land, improvements and personal
property were situated within the city limits of City,
plus an amount in lieu of City sales tax equal to that
which would be remitted to the State Comptroller annually
by Company, and which would later be remitted to City by
the State Comptroller, if said land were situated within
the city limits."
7. ,Amending the third "WHEREAS" clause of Exhibit 1 to hereafter
read as follows:
"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
-3-
agreements with industries located within its extraterritorial
jurisdiction and designating areas located in its extraterritorial
jurisdiction as industrial districts, herein collectively called
"Districts",and Ordinance No. 15949 designating land areas as
Corpus Christi Industrial Development Area No. 1 and Corpus Christi
Industrial Development Area No. 2; and"
PASSED
/8) /9 P/
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