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HomeMy WebLinkAbout16149 ORD - 04/01/1981AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH Heldenfels Brothers, Inc. FOR A TERM OF SEVEN (7) YEARS COMMENCING JANUARY 1, 1981; DESIGNATING AN AREA TO BE KNOWN AS "CORPUS CHRISTI INDUSTRIAL DISTRICT NO. 28 "; 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 Heldenfels Brothers, Inc.' for a term of seven (7) years commencing January 1, 1981; designating an area to be known as "Corpus Christi Industrial District No.28"; exempting such area from annexation and providing 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. 16149 MICROFILMED SEP L 71984 ENWNRERIMGeomsTRUCTION HIGOireAYS UTIL TIES AIRPORTS BRIOCES Saw. 1909 HELDENFELS BROTHERS, INC. CONTRACTORS February 25, 1981 Honorable Mayor Luther Jones & Honorable Members of the City Council CITY OF CORPUS CHRISTI P. O. Box 9277 Corpus Christi, Texas 78403 Dear Gentlemen & Mrs. Turner: ON TRUCTION MATERIALS PRESTRESSED CONCRETC SAMD ANO GRAVEL MOT HI% ASPHALT Heldenfels Brothers, Inc., by this letter, in accordance with provisions of Ordinance No. 15898, as amended by Ordinance No. 15941 dated December 17, 1980, indicates its intention to enter into an industrial district agreement with the City of Corpus Christi. Attached hereto is a copy of a deed which con- tains the metes and bounds description of the 20.8 acres which will be the subject of the industrial district agreement_ Our attorneys are in the process of analyzing the ordinance, as amended, and the industrial district agreement as proposed and signed by Southwestern Refining Company, and we anticipate their analysis and recommendations shortly. Sincerely, HELDENFELS BROTHERS, INC. By: H. C. Heldenfels President iFiLE D this int 'ay PA rotar, City 01 rrniK rjk_f .9 •5 THE STATE_OF TEXAS COUNTY OF NUECES INDUJSTRIAL DISTRICT AGREEMENT X CITY OF CORPUS CHRISTIX 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 HELDENFELS BROTHERS, INC. (Land- owner & IMPROVEMENTS OWNER) a Texas corporation, hereinafter called "COMPANY", WITNESSETH: WHEREAS, it is the established policy of the City Council of the_City of Corpus Christi, Texas, to adopt reasonable measures per- mitted by law which will tend to enhance the economic stability and growth of the City -and -its environs and whichwillattract the loca- tion 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 improvements on land within the extraterritorial jurisdiction of the City of Corpus Christi,• which land shall, upon execution of this agree - went by the City, be known as "Corpus Christi Industrial District No.' ./8 , and which land is more particularly -described in Exhibit "A" attached hereto, and incorporated herein for all pur- poses, herein called "said land" and upon which Company has either con- structed (and/or contemplates) the construction or expansion of im- provements; and WHEREAS, pursuant to said policy and provisions of Article 970a, Revised Civil Statutes of Texas, known as the Municipal Annexation Adt, City has enacted Ordinance No. 15898 indicating its willingness, within 90 days after final passage of said ordinance, to enter into industrial district agreements with industries located within its extraterritorial jurisdiction and designating areas located in its extraterritorial jur- isdiction as industrial districts, herein collectively called "Districts" and Ordinance No. 15949 designating land areas as Corpus Christi Indus-_ trial Development Area No. 1 and Corpus Christi Industrial Development Area No. 2; and WHEREAS, City desires to encourage the updating, expansion and growth in 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 author- ity 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 Agree- ment, 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. During the term hereof City shall have no obligation to extend -to said land any City services except fire protection in the event Com- __pany_makes"additional payments to City under Article III(d) hereof, and such other City services as are being provided to and paid for by Com- pany -on the date hereof. Further, City and Company agree that during the terms hereof, City shall not require with respect to said land compliance with its rules or regulations—("a) governing zoning and planning of said land or any additions thereto outside the City limits; provided, however, Com- pany 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, plumb- ing or inspection code or codes; or (c) prescribing any rules governing the method of operations of Company's business, except as to those reg- ulations 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 Jan- uary, 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, -2- that in the event this Agreement is not so extended for an additional period of time on or before March 31 of the final calendar year of the term hereof, then the immunity from annexation granted herein shall - terminate on that date, but all other terms of this Agreement shall re- main in effect for the remainder of the term; provided, however, the effective date and time of such annexation shall be no earlier than mid- night of December 31 of such final year of the term. This Agreement may be extended for an additional period or per- iods by agreement between City and Company and/or its assigns. In this connection, City recognizes that industrial district agreement 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. A- ccordingly, future City Councils are hereby encouraged, but are not ob- ligated, to enter into industrial district agreements and to extend ex- isting 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 improve - merits and -personal property located thereon) equal to -one hundred per- cent (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 whichrelates directly to the primary use of the parent tract, 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 pro- vide City a revised Exhibit "A" which includes a complete description of such new land. (b) An amount in lieu of taxes on improvements (excluding per- sonal 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. -3- 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, Company shall pay to City five percent (5%) rather than the percent- ages 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 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 improve- ments are placed in use. This provision shall apply to construction of new improvements or facilities and to the expansion of existing im- provements or facilities on said land. New improvements or facili- ties not included within this paragraph (c) shall be deemed to be in- -cluded--withim'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 paragraph (b) above; provided, however, that if and as long as Company is—a member in good standing of the Refinery Term- inal 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 Comany, an alternative to the method of calculation set forth in paragraphs (a) through (d) above, the Com- pany 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 result- ing from the assessed values of land and improvements, excluding per- sonal property, located inside the City. If Company selects such al- ternative procedure, the amount due to City under this section shall -4- be the resulting difference or the minimum payment required in para- graph (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 in- side 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 meth - of calculating the in lieu of tax payment as stated above, as of Janu- ary 1 of the first year following the date which such new land is ac- quired by Company. Company shall provide City a new or revised Exhib- • it "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'paymentsin 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 hun- dred percent (100%) of the amount of ad valorem taxes rased on the mar- ket_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 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 improvements 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 -5- hereunder without discount for early payment. The present ratio of ad valorem tax assessment used by City is one hundred percent (100x) 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, in- cluding, 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, Com- pany 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 de- termined, either as the result of final judgment of a court of compe- tent -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 settle - went. vi. In the event Company fails or refuses to comply with all or any of the terms, conditions and obligations herein imposed upon the -6- ,_.,,any, then this Agreement may be terminated at the option of amity 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 re- cover 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 im- provements, in the event of default in payment of in lieu of taxpay- ments 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 termof 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 ob- ligations hereunder, under injunctive order or otherwise,-Companyshall continue to make the annual payments required by this. Agreement. vii. Company agrees to provide to City at Company's expense, a sur- vey plat and field note description of said land. With respect to Com- pany'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 incorporation 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 injunction against such annexation or incorporation, with the coopera- tion of Company, and shall take such other legal action as may be nec- essary or advisable under the circumstances. The cost of any such le- gal action shall be borne equally by the parties hereto; provided, how- -7 - evor, 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 in- corporation, Company shall have the option of (1) terminating this Agreement, effective as of the date of such annexation or incorpora- tion, or (2) continuing to make the in lieu of taxes payments requir- ed 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 calendar year in which such annexation of incor- poration 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 pay- ments ayments and accrued interest thereon shall be refunded to Company; or (b) rn the event final judgment (after all appellate review, if any, has been exhausted) is entered granting a permanent injunction and/or invalidating such annexation or incorporation, then all such • payments and accured interest thereon shall be retained for use by City. IX. The benefits accruing to Company under 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 Ex- hibit "A" to this Agreement, and where reference is made herein to land, property and improvements owned by Company, that shall also in- clude land and improvements presently owned by its affiliates. The word "affiliates" as used herein shall mean (1) all companies with re- spect to which Company directly or indirectly, through one or more in- termediaries 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 defin- ed in Section 1563 (a) of the Internal Revenue Code 1954, as amended) of which Company is a member. -8- 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 subsidiaries, and shall remain in force whether Com- pany sells, assigns, or in any other manner disposes of, either vol- untarily 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. IX. (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 pro- duct of the Company or the preparation of raw materials prior to their -processing by the Company, then platting of such property may be defer- red 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 agree- ment with the City requiring the platting of said land in the event the buyer's use of the property materially changes from the permitted used described above, or if the Company's industrial district agree- ment 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 concerning such holdings. (b) Whenever the Company properly plats, subdivides and con- veys to a buyer other than an affiliate a portion of the lands des- cribed in Exhibit "A" and/or Exhibit "B", Company shall furnish to the City's Tax•Assessor-Collector a revised Exhibit "A" and/or Exhib- it "B", which revised exhibit or exhibits shall constitute an amend- ment to this Agreement, effective for the calendar year next following the calendar year in which the conveyance occurred. Seller shall re- • main solely responsible for any payments in lieu of taxes for the cal- endar year in which the conveyance occurred. In the event the Company -9- .operly plats., subdivides or -conveys a portion of the lands _ ,- cribed in Exhibit "A" or Exhibit "B", Company shall remain solely re- sponsible for any payments in lieu of taxes applicable to such prop- erty, including improvements thereon, as if no such conveyance had occurred. XII. If City enters into an agreement with any other landowner, with- in the extraterritorial jurisdiction of the City, engaged in a similar industry, as classified by Major Group according to the Standard Indus- trial Classification Manual (1) or enters into a renewal of any exist- ing industrial district agreement with an industry of the same classi- fication, 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 application thereof to any person, shall ever be held by any court of or unconstitutional for any reason unconstitutionality of such words, parts of this Agreement or the firm, corporation or circumstances competent jurisdiction , then the application, to be invalid invalidity or phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be in- dependent 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 ZS -Id -day of / , 1981. ATTEST: City Secretary APPROVED: DAY OF J. BRUCE.&YCOCK, CITY ATTORNEY By Assis (1) ty Att'o�ney Standard Industrial Classification Manual. (Executive Office of the President- Office of Management and Budget, Statistical Policy Division, 1972). 659 pp. HELDENFELS BROTHERS, INC. (Landowner & Improvements) By CITY OF CORPUS C " STI By R. Marvin Townsend, City Manager , 1981. -10- PROPERTY DESCRIPTION All that certain tract or parcel of land located in Nueces County, Texas, being a part and partial of a tract of 100 hundred acres of land conveyed to Thomas Whelan by deed from J. B. Murphy, dated July 11; 1883, recorded in Volume P, p. 416 of the Deed Re- cords of Nueces County, Texas, being out of that certain larger grant of land made by the Spanish government to Enrique Villareal, as Tract No. 1 for Nueces County, Texas, being 20.8 acres of'land, more or less, and being further described as follows: BEGINNING at a 5"X5" concrete monument N64°06'East a distance of 347.3 feet to a corner; thence S06°43'East a distance of 1,907.0 feet to a corner; thence S79°20'West a distance of 138.4 feet to a corner-; thence S56°48'West a distance of 492.6 feet on a line which contains two one-inch pipes within it to-a corner consisting of a 12-inch pipe; thence S07°33'East a distance of 359.7 feet to a cor- ner; thence N77°07'West a distance of 20.6 feet to a corner; thence N07°33'West a distance of 2,283.8 feet to a corner; thence N64°06' East a_distance of 312.1 feet with the curb to the point of beginning; SAVE AND EXCEPT: 4.1321 acres previously taken as railroad right-of- way, and a 1.9679 acre tract previously conveyed to Quintana-Howell Joint Venture (now known as Nueces Petrochemical) by warranty deed dated April 2, 1975. The same aggregating 20.8 acres more or less. EXHIBIT "A" } PROPERTY DESCRIPTION Lots 1 and LA, Block 1, Lantana Industrial Area, a Subdi- vision in Corpus Christi, Nueces County, Texas as set out in the map or plat of said subdivision filed in the map or plat records of Nueces County, Texas. EXHIBIT "B" That the foregoing ordinance/Ts read for •� first time and passelto its second reading on this the day of , 191% , by the following vote: Luther Jones Edward L. Sample Dr. Jack Best Jack K. Dumphy Leopoldo Luna .Betty N. Turner Cliff Zarsky That the foregoing ordinance was read for third reading on this the day of following vote Luther Jones Edward L. Sample Dr. Jack Best Jack K.•Dumphy Leopoldo Luna Betty N. Turner Cliff Zarsky That the foregoing ordina - was r_e.d for the hird time and passed finally on this they¢' day of 19 ; , by the following vote: time and passed to its , 19 J / , by the Luther Jones Edward L. Sample Dr. Jack Best Jack K.•Dumphy Leopoldo Luna. - Betty N. Turner Cliff Zarsky PASSED AND APPROVED, this the day of _ 19 ATTEST: C Secretary /TRUED: Vg DAY OF, , 19 9/ : J. BRUCE AYCOCK, CITY ATTORNEY THE CITY OF CORPUS CHRISTI, TEXAS 16149 MOTION TO AMEND moved and seconded this motion to ame'hd the ordinance authorizing the City Manager to exe— cute an industrial district agreement with Heldenfels Brothers, Inc. for a term of seven (7) years commencing January 1, 1981, passed on first reading by the City Council of the City of Corpus •tt 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 1II(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 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." 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,'Company shall designate, within sixty (60) days after the City sends Company written 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 immunity 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." - 2 - 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 Tess 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: Ni) 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 dollars ($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 %�p� -e �C� /8 / 4g , -- 4 -