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HomeMy WebLinkAbout16151 ORD - 04/01/1981TEXAS: t _. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH CENTRAL POWER & LIGHT COMPANY FOR A TERM OF SEVEN (7) YEARS COMMENCING JANUARY 1, 1981; DESIGNATING AN AREA TO BE KNOWN AS "CORPUS CHRISTI INDUSTRIAL DISTRICT NO. • 2 "; 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, SECTION 1. That the City Manager be and he is hereby authorized to execute an Industrial District Agreement with Central Power & Light Company for a term of seven (7) years commencing ' January 1, 1981; designating an area to be known as "Corpus Christi Industrial District No. 2"; 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. SECTION 2. In executing said agreement, it is expressly understood that Central Power and Light Company primarily engages in the generation of electric power within the area designated as "Corpus Christi Industrial District No. 2" which consists of the Nueces Bay Power Station, and it is further understood that other Central Power & Light Company power generating plants located within the City limits shall be not considered an integral part of Central Power & Light Company's operation at the Nueces Bay Power Station for purposes of Art. III (e) of Exhibit 1. i6151 SEP 2 71984 INDUSTRIAL DISTRICT AGREEMENT THE STATE OF TEXAS X X COUNTY OF NUECES X X CITY OF CORPUS CHRISTI X 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 CENTRAL POWER AND LIGHT COMPANY, a Texas corporation, hereinafter called "COMPANY", WITNES..SETH : 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 eco- nomic stability and growth of the City and its environs and which will attract the location of new and expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, Company is the owner or lessee of land or owner • of improvements on land within the extraterritorial jurisdic- tion of the City of Corpus Christi, which land shall, upon execution of this agreement by the City, be known as "Corpus • Christi Industrial District No. and which land is more particularly, described in Exhibit "A" attached hereto, and incorporated herein for all purposes, herein called "said land" and upon which Company has either constructed (and/or contemplates) the construction or expansion of improvements; and WHEREAS, pursuant to said policy and 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 agreements with industries located within its extraterritorial jurisdiction and designating areas located in its extraterritorial juris- diction 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 WHEREAS, City desires to encourage the updating, expan- sion and growth of industries within said Districts and for such purpose desires to enter into this Agreement with Company: NOW, THEREFORE, in consideration of the premises, the mutual agreements of the parties herein contained and pursuant to the authority granted under the Municipal Annexation Act and the Ordinance of City referred to above, City and Company hereby agree as follows: I City covenants and agrees that during the term of this Agreement, and subject to the terms and provisions hereof, said land shall retain its extraterritorial status as an indus- trial 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 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 com- pliance 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 way divide said land or additions thereto -2- 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 Agree- ment 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 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 annexa- tion 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 im- provements and personal property located thereon) equal to one - 3- hundred percent (100 of the amount of ad valorem taxes based upon the market value of said land which would otherwise be payable to City by Company if said land were situated within the city limits of City. With respect to any new land acquired by Company after January 1, 1981, located in the extraterritorial jurisdiction of City, and the use of which relates directly to the primary use of the parent tract, 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 des- cription 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 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 percentages of the amount of ad valorem taxes as calculated in paragraph (b) above for each year of use, i.e., 10% the second year in use, 15% the third year in use, etc. Payments under this provision shall never exceed fifty percent (50%). The first year of use 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- -4- ments or facilities and to the expansion of existing improvements or facilities on said land. New improvements or facilities not included within this paragraph (c) shall be deemed to be included within the provisions of paragraph (b) above. (d) An additional amount for City fire protection equal to fifteen percent (15%) of the amount which would be payable on 100% of assessed value of improvements located in said land not- withstanding the provisions of paragraph (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). q5 (e) At the request of Company,'an alternative to the method of calculation 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 de- ducting 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 -5- `..N+.;•u.+.:.�.• As..Ft..2Lv. .:......i. .w Y+i.r. <e.. wa.. .a.....c.«...+a ...i., s}.. .. .. w.. .:.G.% ..-.ks...c.::J:.L.o:....:<..w 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 improve- ments 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 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 hereunder without discount for early payment. The -6- present ratio of ad valorem tax assessment 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, equali- zation and appeal. V In the event Company elects to protest the valuation set on any of its properties by City for any year or years during the term hereof, it is agreed that nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same as if such property were located within the City. Notwithstanding any such protest by Company, Company agrees to pay to City an initial in lieu of tax payment on or before the date therefor hereinabove provided, at least the amount of the payment in lieu of taxes on said land and improvements which would be due by Company to ' City hereunder on the basis on 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 settle-' ment of the controversy, then within thirty -(30) days there- after 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 .pro- perty 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 -7- ;14,-1...{ 7- :L..( t%.�s+'.'..:.:P�'su:'r.s.:i..ne2i+:s.....�...._.._�.e, u..Y 9.`... ...'� sJ "+:K ,.._....a ..c c. .y w..,. r....s..o.+...�a�a-.. 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 sum or in the of City and/or the sums remaining due sole discretion of City may elect to hereunder or take the City it deems sue to recover any any other action which best. In the event the City elects to sue to recover any sum due under this Agree- ment, 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 improvements, 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 valorem taxes. (c) In the event or attempting to pass the collection of delinquent ad City breaches this Agreement by annexing 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 Agreement, from en- forcing any annexation ordinance adopted in violation of this Agreement and from taking any further this Agreement. If Company elects to so long as City specifically performs action in violation of pursue this remedy, then 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 re- spect to Company's acquisition of new land, as described in Article III(a) above, which becomes included in said land, -8- r,'.ry,7tx. roti • 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 owned, used, occupied, leased, rented or possessed by Company, is made by another muni- cipality, 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 injunc- tion against such annexation or incorporation, with the coopera- tion 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 calendar 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 in- junction 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, -9- n • if any, has been exhausted) is entered granting a permanent in- junction and/or invalidating 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 extend to Company's "affiliates" and to any properties pre- sently 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 Com- pany, 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 groupof 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. 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 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 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 -10- 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, drain- age, 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 uses described above, or if the Company's indus- trial district agreement terminates without extension. The seller shall remain solely responsible for any pay- ments 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 conveys to a buyer other than an affiliate a portion of the lands described in Exhibit "A" and/or Exhibit "B", Company shall fur- nish 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 con- veyance occurred. Seller shall remain solely responsible for any payments in lieu of taxes for the calendar 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 convey- ance 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 -11- 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 land- owner 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, sen- tences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, cor- poration 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 unconstitu- tionality 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 ATTEST: , 19 CENTRAL POWER AND LIGHT COMPANY (Landowner) (1) Standard Industrial Classification Manual. (Executive Office of the President -Office of Management and Budget, Statistical Policy Division, 1972). 659 pp. -12- ATTEST: City Secretary APPROVED: CITY OF CORPUS CHRISTI By R. Marvin Townsend, City Manager DAY OF , 19 J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney -13- • . • -11;e45/1,411D / , jric)" .A- ^. C'eri-J i/pcwe,- . wd a EXHIBIT "A" Central Power and Light Company's Nueces Bay Power Station is located upon lands comprising 74.5185 acres purchased as follows: TRACT NO. 1: 55.1225 acres, purchased September 20, 1939. TRACT NO. 2: 5.37 acres, purchased September 20, 1939. TRACT NO. 3: 14.026, acres purchased September 2, 1947. These tracts, pieces or parcels of land, lying and being situated in the County of Nueces, State of Texas, and more particularly described as follows: TRACT NO. 1: All that certain tract or parcel of land situated in Nueces County, Texas, located on the North side of the Corpus Christi Ship Channel, and being a portion of Survey No. 3 as shown on the Map of Riparian Property Ownership recorded in Volume 3, Page 13, of the Nueces County Map Records, as described by metes and bounds as follows: BEGINNING at the most Westerly Southwest corner of Survey No. 3 of the Riparian Property indicated on Map Recorded in Volume 6,' Page 13, of the Nueces County Map Records, Nueces County, Texas, also a corner of the Nueces County Navigation District Property; THENCE with the Southwest boundary line of said Survey No. 3, a Northerly boundary line of the Nueces County Naviga- tion District Property South 66° 20' East 850 feet for the Southeast corner of this tract; THENCE North 23° 40' East parallel with the Northwest boundary line of Survey No. 3, 3011.14 feet to a point in the North boundary line of submerged lands patented by the State of Texas to Nueces County Navigation District May 7, 1930, for a Northeast corner of this tract; THENCE along the aforesaid North boundary line of sub- merged lands patented by the State of Texas to Nueces County Navigation District May 7, 1930, West 928.04 feet to the most Westerly Northwest corner of Survey No. 3 Riparian Property of record in Volume 6, Page 13, of the Nueces County Map Records, a corner of the Nueces County Navigation District Property, for the Northwest corner of this tract; THENCE along the Northwest boundary line of said Survey No. 3, Riparian Property, recorded in Volume 6, Page 13, Nueces County Map Records South 23° 40' West 2638.6 feet to the PLACE OF BEGINNING, containing 55.1225 acres of land. TRACT NO. 2: All that certain tract or parcel of land adjoining, on the North, Survey No. 3 as shown on the Map of Riparian Property Ownership recorded in Volume 6, Page 13, of the Nueces County Map Records, and described by metes and bounds as follows: ealSTANT ..T'dus,+r:ad 07`i-,& ,mrri Cer* ti - we 7goa • Jxhibif- BEGINNING at the most Westerly Northwest corner of Survey No. 3 of the Riparian Property indicated on Map recorded in Volume 6, Page 13, of the Nueces County Map Records, Nueces County, Texas, also a corner of the Nueces County Navigation District Property, and a point in the North boundary line of submerged lands patented by the State of Texas to Nueces County Navigation District May 7, 1930; THENCE along the North boundary line of submerged lands, patented by the State of Texas to Nueces County Navigation District May 7, 1930, East 655.09 feet for the Southeast corner of this tract; THENCE North 23° 40' East 779.26 feet to a point, for the most Northerly corner of this tract; THENCE South 530 35' West 1203.03 feet to the PLACE OF BEGINNING, being a triangular tract of land containing 5.370 acres of land. TRACT NO. 3: All that certain tract or parcel of land situated in Nueces County, Texas, located on the North side of the Corpus Christi Ship Channel, and being a portion of Rin - con or Brooklyn Addition, mow vacated, and Survey No- 3, as shown on the map of Riparian Property Ownership recorded in Volume 6, Page 13, Map Records of Nueces County, Texas; said tract of land being more particularly described by metes and bounds as follows: BEGINNING at a point in the South boundary line of said Survey No. 3 and on the North boundary line of the property of Nueces County Navigation District No. 1, as located on the ground by its engineers; said point being South 66° 20' East 850 feet from a concrete monument at the most westerly south- west corner of said Survey No. 3, also the Southwest corner of the Tract No. 1 conveyed to Central Power and Light Company by deed dated September 20, 1939, of record in Volume 250, Page 390, of the Deed Records of Nueces County, Texas; said beginning point of the tract herein conveyed being the South- east corner of said Central Power and Light Company's Tract No. 1; THENCE North 23° 40' East with the Northeastern boundary line of said Central Power and Light Company's 55.12 acre tract, 3011.14 feet to a point in the North boundary line of submerged lands patented by the State of Texas to Nueces County Naviga- tion District No. 1, May 7, 1930, to the Northeast corner of the said Central Power and Light Company's 55.12 acre tract and the Northwest corner of the tract herein conveyed; - THENCE East along the North boundary line of the patented submerged lands 218.50 feet to a point for the Northeast corner of this tract; THENCE South 23°,40' West, parallel with the Northwestern boundary line hereof, 3098.79 feet to a point on the North boundary line of the Nueces County Navigation District property, also on the South line of the Survey No. 3, heretofore referred to, for the Southeast corner of this tract; THENCE North 66° 20' West, 200 feet to the PLACE OF BEGIN- NING and containing 14.026 acres of land. ENTERED into this it ! day of ��, , 1981. Attest: CENTRAL POWER AND LIGHT COMPANY BY SIDNEY B. DENTON Vice President - District Operations INDUSTRIAL DISTRICT AGREEMENT THE STATE OF TEXAS X COUNTY OF NUECES X CITY OF CORPUS CHRISTI X 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 CENTRAL POWER AND LIGHT COMPANY, a Texas corporation, hereinafter called "COMPANY", W I T N E S S E T H: WHEREAS, it is the - tablished policy of the City Council of the City of Covus Christi, Texa , to adopt reasonable measures permitted by 1_ which will -tend enhance the economic stability and growth o the City and its =�virons and which will attract the location .f new and exp_ ion of existing industries therein, and such po icy is he reaffirmed and adopted by this City Council _ being in the be.t interest of the City and its citizens; a‘ d WHEREA ny is owner of improvem land within the extraterritorial juris- , Comp_ nts on the owner or lessee of land or diction of the Cit pus Christi, which land shall, upon execution of this agr --- nt by the City, be known as "Corpus Christi Industrial District No. 2 ", and which land is more particularly described in Exhibit "A" attached hereto, and in- corporated 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 agreements with industries located within its extraterritorial jurisdiction and designating areas located in its extraterritorial jurisdiction as industrial districts, herein collectively called "Districts"; and • WHEREAS, City desires to encourage the updating, expansion and growth of industries within said Districts and for such purpose desires to enter into this Agreement with Company: NOW, THEREFORE, in consideration of the premises, the mutual agreements of the parties herein contained and pursuant to the authority granted under the Municipal Annexation Act and the Ordinance of City referred to above, City and Company hereby agree as follows: I City covenants and agrees that during the term of this 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. Ex- cept as herein provided City further covenants and agrees that said land shall be immune from annexation. During the term hereof City shall have no obligation to extend to said land any City services except fire protection in the event Company makes additional payments to City under Article III(d) hereof. Further, City and Company agree that during the term hereof, City shall not require with respect to said land compliance with its rules or regulations (a) governing zoning and platting of said land or any additions thereto outside the City limits; pro- vided, 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) pre- scribing 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, -2- 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 Agree- ment 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 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 agree- ments of this kind are conducive to the development of existing and future industry and business and are to the best interest of all citizens of City. Accordingly, future City Councils are hereby encouraged, but are not obligated, to enter into industrial district agreements and to extend existing industrial district agreements. III Each year during the term hereof, Company shall pay to City: (a) An amount in lieu of taxes on said land (excluding improvements and personal property located thereon) equal to one hundred percent (100%) of the amount of ad valorem taxes based upon the market value of said land which would otherwise be payable to City by Company if said land were situated within the city limits of City. With respect to any new land acquired by Company after January 1, 1981, located in the extraterritorial jurisdiction of City, and the use of which relates directly to the primary use of the parent tract, and which Company desires to add to said land, such new land shall be included in Company's land known as said land, and shall be considered in calculating the in lieu of tax payment on said land as of January 1 of the first year follow- ing the date which such new land is acquired by'Company. In addition, -3- 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 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 materials being processed, Company shall pay to City five percent (5%) rather than the per- centages 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 improvements are placed in use. This provision shall apply to construction of new improvements or facilities and to the expansion of existing improvements or facilities on said land. New improvements or facilities not included within this paragraph (c) shall be deemed to be included within the provisions of paragraph (b) above. (d) An additional amount for City fire protection equal to fifteen percent (15%) of the amount which would be payable on 100% of assessed value of improvements located in said land not- withstanding the provisions of paragraph (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). -4- (e) At the request of Company, an alternative to the method of calculation set forth in paragraphs (a) through (d) above, the Company may make a payment which is determined by con- sidering 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 opera- tion 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 des- cription 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%) 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 ($1,000,000.00) of improve- ments 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. 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 assessment 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 subse- quent 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 determination of market value and taxation, including, but not limited to, laws relating to rendition, assessment, equalization and appeal. V In the event Company elects to protest the valuation set on any of its properties by City for any year or years during the term hereof, it is agreed that nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same as if such property were located within the City. Notwithstanding any such protest by Company, Company agrees to pay to City an initial in lieu of tax -6- • 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 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 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, -7- 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 specifi- cally 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 pro- vide 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 munici- pality 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 in- corporation, 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, -8- the City shall place future payments hereunder together with part of the payment for the calendar year incorporation is attempted, prorated injunction or relief is denied, in a in which such annexation or to the date such temporary 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 all such payments to Company; or (b) In the upholding such annexation or incorporation, then and accrued interest thereon shall be refunded 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 accrued interest thereon shall be re- tained 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 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 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 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 subsidiaries, and shall remain in force -9- 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 Agree- ment or any extension thereof remains in force. - XI (a) Whenever the Company sells a contiguous portion of said land consisting of 20 acres or more to an ancillary in- dustry 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 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 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 calendar year in which the conveyance occurred. -10- In the event the Company improperly plats, subdivides or conveys a portion of the lands described in Exhibit "A" or Exhibit "B", Company shall remain solely responsible for any payments in lieu of taxes applicable to such property, including improvements thereon, as if no such conveyance had occurred. XII If City enters into an agreement with any other landowner, within the extraterritorial jurisdiction of the City, engaged in a similar industry, as classified by Major Group according to the Standard Industrial Classification Manual (1) or enters into a renewal of any existing industrial district agreement with an in- dustry 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 it 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 , 1981. ATTEST: Secretary CENTRAL POWER AND LIGHT COMPANY ( downer) w to By (1) Standard Industrial Classificaton Manual. (Executive Office of the President - Office of Management and Budget, Statistical Policy Division, 1972). 659 pp. -11- ATTEST: City Secretary APPROVED: CITY OF CORPUS CHRISTI By R. Marvin Townsend, City Manager DAY OF , 19 J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney -12- (Page 12 of 12) EXHIBIT "A" Central Power and Light Company's Nueces Bay Power Station is located upon lands comprising 74.5185 acres purchased as follows: TRACT NO. 1: 55.1225 acres, purchased September 20, 1939. TRACT NO. 2: 5.37 acres, purchased September 20, 1939. TRACT NO. 3: 14.026, acres purchased September 2, 1947. These tracts, pieces or parcels of land, lying and being situated in the County of Nueces-, State of Texas, and more particularly described as follows: TRACT NO. 1: All that certain tract or parcel of land situated in Nueces County, Texas, located on the North side of the Corpus Christi Ship Channel, and being a portion of Survey No. 3 as shown on the Map of Riparian Property Ownership recorded in Volume 3, Page 13, of the Nueces County Map Records, as described by metes and bounds as follows: BEGINNING at the most Westerly Southwest corner of Survey No. 3 of the Riparian Property indicated on Map Recorded in Volume 6; Page 13,'of the Nueces County Map Records, Nueces County, Texas, also a corner of the Nueces County Navigation District Property; THENCE with the Southwest boundary line of said Survey' No. 3, a Northerly boundary line of the Nueces County Naviga- tion District Property South 660 20' East 850 feet for the Southeast corner of this tract; THENCE North 23° 40' East parallel with the Northwest boundary line of Survey No. 3, 3011.14 feet to a point in the North boundary line of submerged lands patented by the State of Texas to Nueces County Navigation District May 7, 1930, for a Northeast corner of this -tract; THENCE along the aforesaid North boundary line of sub- merged lands patented by the State of Texas to Nueces County Navigation District May 7, 1930, West 928.04 feet to the most Westerly Northwest corner of Survey No. 3 Riparian Property of record in Volume 6, Page 13, of the Nueces County Map Records, a corner -of the Nueces County Navigation District Property, for the Northwest corner of this tract; THENCE along the Northwest boundary line of said Survey No. 3, Riparian Property, recorded in Volume 6, Page 13, Nueces County Map Records South 23° 40' West 2638.6 feet to the PLACE OF BEGINNING, containing 55.1225 acres of land. TRACT NO. 2: All that certain tract or parcel of land adjoining, on the North, Survey No. 3 as shown on the Map of Riparian Property Ownership recorded in Volume 6, Page 13, of the Nueces County Map Records, and described by metes and bounds as follows: BEGINNING at the most Westerly Northwest corner of Survey No. 3 of the Riparian Property indicated on Map recorded in Volume 6, Page 13, of the Nueces County Map Records, Nueces County, Texas, also a corner of the Nueces County Navigation District Property, and a point in the North boundary line of submerged lands patented by the State of Texas to Nueces County Navigation District May 7, 1930; THENCE along the North boundary line of submerged lands, patented by the State of Texas to Nueces County Navigation District May 7, 1930, East 655.09 feet for the Southeast corner of this tract; THENCE North 23° 40' East 779.26 feet to a point, for the most Northerly corner of this tract; THENCE South 530 35' West 1203.03 feet to the PLACE OF BEGINNING, being a triangular tract of land containing 5.370 _acres of land. TRACT NO. 3: All that certain tract or parcel of land. situated in Nueces County, Texas, located on the North side of the Corpus Christi Ship Channel, and being a portion of Rin - con or Brooklyn Addition, now vacated, and Survey No. 3, as shown on the map of Riparian Property Ownership recorded in Volume 6, Page 13, Map Records of Nueces County, Texas; said tract of land being more particularly described by metes and bounds as follows: BEGINNING at a point in the South boundary line of said Survey No. 3 and on the North boundary line of the property of Nueces County Navigation• District No. 1, as located on the ground by its engineers; said point being South 66° 20' East 850 feet from a concrete monument at the most westerly south- west corner of said Survey No. 3, also the Southwest corner of the Tract No. 1 conveyed to Central Power and Light Company by deed dated September 20, 1939, of record in Volume 250, Page 390, of the Deed Records of Nueces County, Texas; said beginning point of the tract herein conveyed being the South- east corner of said Central Power and Light Company's Tract No. 1; THENCE North 23° 40' East with the Northeastern boundary line of said Central Power and Light Company's 55.12 acre tract, 3011.14 feet to a point in the North boundary line of submerged lands patented by the State of Texas to Nueces County Naviga- tion District No. 1, May 7, 1930, to the Northeast corner of the said Central Power and Light Company's 55.12 acre tract and the Northwest corner of the tract herein conveyed; THENCE East along the North boundary line of the patented submerged lands 218.50 feet to a point for the Northeast corner of this tract; THENCE South 23° 40' West, parallel with the Northwestern boundary line hereof, 3098.79 feet to a point on the North boundary line of the Nueces County Navigation District property, also on the South line of the Survey No. 3, heretofore referred to, for the Southeast corner of this tract; THENCE North 66° 20' West, 200 feet to the PLACE OF BEGIN- NING and containing 14.026 acres of land. ENTERED into this Ala. day of _ 4:2,tvEr�„ , 1981. tAAttes t: -413MSTRNT ecret' CENTRAL POWER AND LIGHT COMPANY SIONEV B. DENTON Vice President - District Operations That the foregoing ordinance was read for}e first time and passed to its second reading on this the �S day of r� y , 19 2( , 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 w s 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 fore- oirrg ordinanc on this the- ./ 15 day of Luther Jones Edward L. Sample Dr. Jack Best Jack K.'Dumphy Leopoldo Luna -- Betty N. Turner Cliff Zarsky PASSED AND APPROVED, this the %1 day of , 199/ . nd time and passed to its , 19 1(/ , by the s,read for the 4iird time and passed finally , 19 V , by the following vote: ATTEST: City Secretary MAYOR THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: JZ-s-Yi DAY OF Fob , 191/ : J. BRUCE AYCOCK, CITY ATTORNEY 16151 MOTION TO' AMEND moved and seconded this motion to amend the• ordinance authorizing the City Manager to exe— cute an industrial district agreement with Central Power and Light Company for a term of seven (7) years commencing January 1, 1981, passed on first reading by the City Council of the City of Corpus Christi on February 25, 1981, and on second reading on March 4, 1981, the following: 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 IIIc) 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." ' • 1' 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 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 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 via- 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 (52,000,000) 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 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 /t, 19,91 -4- 4 w.. MOTION 13 E.S T moved and S /4I-1 PA, seconded this motion to include in the ordinance authorizing the City Manager to execute an industrial district agreement with Central Power and Light Com- pany, for a term of seven (7) years commencing January 1, 1981, passed on first reading by the City Council of the City of Corpus Christi on February 25, 1981, the following: 1. Adding the required Exhibit "A" describing the lands to be included within the industrial district. PASSED a —64-- c a,}ta,...•ter 1.61.1.1.• U E Yea.. #a.F.OS..Y .W •a M.a.ay.P LAPP Foot.... • sPaIL b1i►0. i..aPi•tt� Carr%+ aa awisar Pwa...ty #..w.cn •O..44,1 WM.Mana.. a...•ft T*/.4..a...t. tao tl, Arrno. ri-•s' mt. IL t.100- %WV-.1.4aa 4•4'.•G•'7.7 4s G.•C•V1 GC (twea•L.D Alit . M.. t+.ULA. Fit LYE svoa4Y•i• - t 1 N DVS I' a 1. C.1 A N N • 1. L.e Ya L.A CEN-RALPo vrn ! LIGHT CO. PrlOPERTY r...c J tr festet KEY PLAN ...MCC. 0.af .*.T*. Lt}•.L.i •w..0 or ifa. i.. t./.f .fit• ..raga.,z. �.. w.wt , ,,•L q :•• . 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