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HomeMy WebLinkAbout16158 ORD - 03/31/1981TEXAS: i AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH GULF STATES OIL & REFINING FOR A TERM OF SEVEN (7) YEARS COMMENCING JANUARY 1, 1981; DESIGNATING AN AREA TO BE KNOWN AS "CORPUS CHRISTI INDUSTRIAL DISTRICT NO. 9 "; 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 Gulf States Oil & Refining for a term of seven (7) years commencing January 1, 1981; designating an area to be known as "Corpus Christi Industrial District No. 9"; 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. 8.6158 SSP 2 71984 GULF STATES OIL&REFINING February 24, 1981 Honorable Mayor and Members of the City Council ' 302 South Shoreline Corpus Christi, Texas 78408 Gentlemen: Attached is a signed copy of the Industrial District Agreement between the City of Corpus Christi, Texas and Gulf States Oil & Refining Co. . We respectfully request, however, that the following modifications be made to the agreement, to -wit: (1) Article I, Paragraph 2 should be amended to read as follows: "During the term hereof, City shall have no obligation to extend to said land any `services except fire protection in the event Company makes additionalpayments to City under Article III(d) hereof, and such other city services as are being pro- vided to and paid for by Company on date hereof." Our intention is to ensure that those city services currently being provided by the city will continue to be provided in the future. (2) The following phrase in Article XII should be deleted: "having the same or approximately the same expiration date." By deleting the limitation mentioned above, we feel that we can better assure that all landowners engaged in similar industries are equally treated now and in the future. 2000 SMITH STREET, PO BOX 53137, HOUSTON, TEXAS, 77052 (713) 659-2000. TELEX: 775189 A Subsichary of Thomas C Thompson Interests February 24, 1981 Page 2 A statement of value and a legal description of Gulf States property shall be provided and will be forthcoming in the immediate future. Thank you for your consideration. Sincerely yours, GULF STATES OIL & RC/jh Enclosure REFINING CO. Rachel Capote Attorney et - IPS INDUSTRIAL DISTRICT AGREEMENT THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI 1 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 GULF STATES OIL & REFINING CO. (Landowner) a Texas corporation, (Lessee) corer r✓d'�YBrrr-a- T& (Improvements Owner) a- -- eorporatioa, hereinafter collectively called "COMPANY", WITNESSETH: WHEREAS, it is the established policy of the City Council of the City of Corpus Christi, Texas, to adopt reasonable measures permitted by law which will tend to enhance the_economic stability and growth of the City and its en- virons and which will attract the location of new and expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and • WHEREAS, Company is the owner or lessee of land or owner of improve- ments on land within the extraterritorial jurisdiction of the City of Corpus Christi, which land shall, upon execution of this agreeme(ntt 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 agree- ments with industries located within its extraterritorial jurisdiction and ' designating areas located in its extraterritorial jurisdiction as industrial districts, herein collectively called "Districts" and 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, 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: City covenants and agrees that during the term of this Agreement, and subject to the terms and provisions hereof, said land shall retain its extra- territorial status as an industrial district and shall continue to retain such status until and unless the.same is changed pursuant to the terms of this Agree- ment. Except as herein provided City further covenants and agrees that said land shall be 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 compliance with its rules or regu- lations (a) governing zoning and platting of said land or any additions thereto outside the City limits; provided, however, Company further agrees that it will in no way divide said land or additions thereto without complying with State law and City ordinances governing subdivision of land; (b) prescribing any building, electrical, plumbing or inspection code or codes; or (c) prescribing any rules governing the method of operations of Company's business, except as to those regulations relating to the delivery of utility services and industrial waste disposal through City owned facilities. II The term of this Agreement shall begin on the first day of January, 1981, and shall continue until December 31, 1987, unless extended for additional period or periods of time'upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before March 31 of the final calendar year of the term hereof, then the immunity from 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 agreements of this kind are conducive to the development of existing and future industry and business and are to the best interest of all citizens of City. Accordingly, future City Councils are hereby encouraged, but are not obligated, to enter into industrial district agreements and to extend existing industrial district agreements. III Each year during the term hereof, Company shall pay to City: (a) An amount in lieu of taxes on said land (excluding improvements and personal property located thereon) equal to one hundred percent (100% of the amount of ad valorem taxes based upon the market value of said land which would otherwise be payable to City by Company if said land were situated within the city limits of City. With respect to any new land acquired by Company after January 1, 1981, located in the extraterritorial jurisdiction of City, and the use of which relates directly to the primary use of the parent tract, and which Company d to add tc-said 1:nd- such new land shall be included in Company's land known as said land, and shall be considered in calculating the in lieu of tax payment on said land as of January 1 of the first year following the date which such new land is acquired by Company. In addition, Company shall provide City a revised Exhibit "A" which includes a complete description of such new land. (b) An amount in lieu of taxes on improvements (excluding personal property) located on said land equal to fifty percent (50%) of the amount of ad valorem taxes which would otherwise be payable to City by Company if said improvements were situated on land within the city limits of City. On or before March 31 of each year during the term of this Agree- ment, Company shall provide to City's Tax Assessor-Collector a written statement - 3 - 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- 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 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 Terminal Fire Company, or its successor, it shall not be obligated to pay the additional amount provided by this paragraph (d). (e) At the request of Company, an alternative to the method of calcu- lation set forth in paragraphs (a) through (d) above, the Company may make a pay- ment which is determined by considering using the method of calculation set forth in paragraphs (a) through (d) above, said land and all other lands contiguous to said land, or forming an integral part of Company's primary operation located on said land, owned by Company inside the city limits as if all the value of Company's lands above described and improvements thereon were outside the city limits, and deducting from the amount which would otherwise be due from such calculation the property taxes actually due to City resulting from the assessed values of land and improvements, excluding personal property, located inside the City. If Company selects such alternative procedure, the amount due to City under this section shall be the resulting difference or the minimum payment required in paragraph (f), whichever is greater. In addition, Company shall provide City, by attaching hereto as Exhibit "B", a complete description of the lands contiguous to said land, or forming an integral part of Company's primary operation located on said land, owned by Company inside the city limits. With respect to any new land acquired by Company after January 1, 1981, located inside the city limits, which is contiguous to said land, or forms an integral part of Company's primary operation located on said land, such new land may be considered in the alternative method of calculating the in lieu of tax payment as stated above, as of January 1 of the first year following the date which such new land is acquired by Company. Company shall provide City a new or revised Exhibit "8" which includes a complete description of such new land. (f) Minimum Payments. For any Company which qualifies as an industry under Ordinance No. 15898 and which has less than two million dollars ($2,000,000.00) in market value of improvements on said land subject to this Agreement, such Company, in lieu of the payments in items (a), (b), (c), (d) and (e) above, shall pay the lower of: (i) an amount in lieu of taxes on said land equal to one hundred percent (100%) of the amount of ad valorem taxes based on the market value of said land which would be 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 ori one million dollars ($1,000,000.00) of improvements which would be payable to City if said improvements were situated within the city limits, regardless of whether one million dollars ($1,000,000.00) of improve- ments exist on said land, or (ii) the amount of ad valorem taxes on land, improvements and personal property on said land which would be payable to City if said land, improvements and personal property were situated within the city limits of City, plus an amount in lieu of City sales tax equal to that which would be remitted to the State Comptroller annually by Company, and which would later be remitted to City by the State Comptroller, if said land were situated within the city limits. IV Company agrees to pay to City on or before December 31 of each year during the term hereof all payments in lieu of taxes provided for hereunder without discount for early payment. The present ratio of ad valorem tax assess- ment used by City is one hundred percent (100%) of the fair market value of property. Any change in such ratio used by City shall be reflected in any - 5 - subsequent computations hereunder. This Agreement and the method of determining and fixing the amount of in lieu of taxes payments hereunder shall be subject to all provisions of law relating to determinations of market value and taxation, including, but not limited to, laws relating to rendition, assessment, equaliza- tion and appeal. 'V In the event Company elects to protest the valuation set on any of its properties by City for any year or years during the term hereof, it is agreed that nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same as if such property were located within the City. Notwithstanding any such protest by Company, Company agrees to pay to City an initial in lieu of tax payment on or before the date therefor hereinabove provided, at least the amount of the payment in lieu of taxes on said land and improvements which would be due by Company to City hereunder 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 an additional payment due based on such final valuation. If as a result of final judgment of a court of competent jurisdiction, or as the result of other final settlement of the controversy, the valuation of Company's property is established as an amount less than the amount used to compute the initial in lieu of tax payment for such year by Company, then within thirty (30) days thereafter City shall make to Company any payment due based on the difference between the initial payment and that which is computed based on the final settlement. VI (a) In the event Company fails or refuses to comply with all or any of the terms, conditions and obligations herein imposed upon the Company, then this Agreement may be terminated at the option of City and/or the City may elect to sue to recover any sum or sums remaining due hereunder or take any other action which in the sole discretion of the City it deems best. In the event the City elects to sue to recover any sum due under this Agreement, the - 6 - same penalties, interest, attorney's fees, and cost of collection shall be recoverable by the City as would be in a suit to recover delinquent ad valorem taxes. (b) City shall be entitled to a tax lien on said land and improve- ments, in the event of default in payment of in lieu of tax payments hereunder, which may be enforced by City in the same manner as provided by law for the collection of delinquent ad valorem taxes. (c) In the event City breaches this Agreement by annexing or attempting to pass an ordinance annexing any of the said land, Company shall be entitled to enjoin City from the date of its breach for the balance of the term of this Agree- ment, from enforcing any annexation ordinance adopted in violation of this Agree- ment and from taking any further action in violation of this Agreement. If Company elects to pursue this remedy, then so long as City specifically performs its obligations hereunder, under injunctive order or otherwise, Company shall -continue to make the annual payments required by this Agreement. VII Company agrees to provide to City at Company's expense, a survey plat and field note description of said land. With respect to Company's acquisition of new land, as described in Article III(a) above, which becomes included in said land, Company agrees to provide to City at Company's expense, a survey plat and field note description of such new land. VIII If any attempt to annex any of said land owned, used, occupied, leased, rented or possessed by Company, is made by another municipality, or if the incor- poration of any new municipality should be attempted so as to include within its limits such land or property, the City shall seek a temporary and permanent injunction against such annexation or incorporation, with the cooperation of Company, and shall take such other legal action as may be necessary or advisable under the circumstances. The cost of any such legal action shall be borne equally by the parties hereto; provided, however, the fees of any special legal counsel shall be paid by the party retaining same. In the event City and Company are unsuccessful in obtaining a temporary injunction enjoining such attempted annexation or incorporation, Company shall have the option of (1) terminating this Agreement, effective as of the date of such annexation or incorporation, or (2) continuing to make the in lieu of taxes -7- Ole payments required hereunder. Such option shall be exercised within thirty (30) days after the application for such temporary injunction is denied. In the event Company elects to continue such in lieu of taxes payments, the City shall place future payments hereunder together with part of the payment for the cal- endar year in which such annexation or incorporation is attempted, prorated to the date such temporary injunction or relief is denied, in a separate interest- bearing escrow account which shall be held by City subject to the following: (a) In the event final judgment (after all appellate review, if any, has been exhausted) is entered denying a permanent injunction and/or upholding such annexation or incorporation, then all such payments and accrued interest thereon shall be refunded to Company; or (b) In the event final judgment (after all appellate review, if any, has been exhausted) is entered granting a permanent injunction and/or invali- dating such annexation or incorporation, then all such payments and accrued interest thereon shall be retained for use by City. Ix The 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 improve- ments owned by Company, that shall also include land and improvements presently owned by its affiliates. The word "affiliates" as used herein shall mean (1) all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise control over fifty percent (50%) or more of the stock having the right to vote for the election of directors; or (2) all corporations which are members of a "controlled group of corporations" (as that term is defined in Section 1563(a) of the Internal Revenue Code of 1954, as amended) of which Company is a member. X This Agreement shall inure to the benefit of and be binding upon City and Company, and upon Company's successors and assigns, affiliates and subsidi- aries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operations of law, all or any part of said land, and the agreements herein contained shall be held to be covenants - 8 - 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 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 irito'a supplemental industrial district contract with the City concerning such holdings. (b) Whenever the Company propel'y plats, subdivides and conveys to a buyer other than an affiliate a portion of the lands described in Exhibit "A" and/or Exhibit "B", Company shall furnish to the City's Tax Assessor -Collector a revised Exhibit "A" and/or Exhibit "B", which revised exhibit or exhibits shall constitute an amendment to this Agreement, effective for the calendar year next following the calendar year in which the conveyance occurred.- Seller shall remain solely responsible for any payments in lieu of taxes for the calen- dar year in which the conveyance occurred. In the event the Company improperly plats, subdivides or conveys a portion of the lands described in Exhibit "A" or Exhibit "B", Company shall remain solely responsible for any payments in lieu of taxes applicable to such property, including improvements thereon, as if no such conveyance had occurred. XII If City enters into an agreement with any other landowner, within the extraterritorial jurisdiction of the City, engaged in a similar industry, as classified by Major Group according to the Standard Industrial Classification 011 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 pay- ment terms and provisions more favorable to such landowner than those in this Agreement, Company and its assigns shall have the right to either terminate this Agreement, or amend this Agreement to contain such more favorable in lieu of tax payment terms and provisions. XIII In the event any one or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the appli- cation thereof to any person, firm, corporation or circumstances shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such 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 24th day of February , 19 81 • ATTEST: Asst. secretaEyi ATTEST: Secretary ATTEST: Secretary ATTEST: City Secretary APPROVED: DAY OF J. BRUCE AYCOCK, CITY ATTORNEY GULF STATES OIL & REFINING CO(Company) (Landowner & Improvements Owner) By Th U.�TThompson, res dent (Company) (Lessee) By (Company) , 19 (Improvements Owner) By CITY OF CORPUS CHRISTI By R. Marvin Townsend, City Manager By Assistant City Attorney (1) Standard Industrial Classification Manual. (Executive Office of the President - Office of Management and Budget, Statistical Policy Division, 1972). 659 pp. - 10 - Being approximately 19.20 acres of land out of the L.B. Hutchins 59.908 acre tractin Section 9, Range V of the H.L. Kinney Sectionized Lands; said 19.20 acre tract also being out of a 37.82 acre tract as described in Volume 564, Page 557, Deed Records of Nueces County, Texas, said 19.20 acre tract being the same. land conveyed to Grantor - by deed dated May 3, 1977 and recorded inVolume a1d 5, Page 904, Deed Records of Nueces County, Texas, further described by metes and bounds as follows: BEGINNING at the intersection of the West right-of-way line of a 60.00 foot wide road easement out of said 37.82 acre tract and the South right-of-way line -of Up River Road for the Northeast corner of this survey from which corner the Northeast corner of said 37.82 acre tract bears %South 650 41' 57" East 44.50 feet and South 65° 35' 20" East 210.80 feet; THENCE South 17° 04' 17" West, along said ?Jest right-of-way line of the aforementioned 60.00 foot wide road easement, 310.30 feet to a 5/8 inch iron rod found for the point of cur- vatur8 of a circular curve to the left having a central angle Of 17 53' 47", a radius of 560.00 feet, a tangent distance of 88.17 feet for an arc length of 174.91 feet; THENCE with said curve to the left, along said right-of-way 174.91 feet to a 5/8 inch iron rod found for the point of _tangency; THENCE South 000 49' 30" East, along said right-of-way 1,343.78 feet to a 5/8 inch iron rod for the point of curvature of a circular curve to the right having a central angle of 127° 32' 20, a radius of 18.40 feet, a tangent distance of 37.35 feet for an arc length of 40.97 feet; THENCE with said curve to the right, along said right-of-way 40.97 feet to a 5/8 inch iron rod found on the North right- of-way line of Interstate Highway No. 37 .fiar the point of tangency; THENCE North 53° 17' 10" 4Iest,alon7, g2the1te North t t ght-of fhway . line of Interstate Highway monument found on the West boundary line of said 37.82 acre tract and the Southwest corner of this Survey; THENCE North 00° 49' 30" West, along the west line of said 37.82 acre tract, 1,763.53 feet to a 5/8 inch iron rod found on the South right-of-way line of Up River Road for the Northwest corner of said 37.82 acre tract and the Northwest corner of this Survey; THENCE South 65° 41' 57" East, along said right-of-way line of Up tract,River 621.57°ad, feet tohtheeNorth Ine of said 37.82 acre POINT OF BEGINNING. EXHIBIT "A" Page 1 of 4 BEING 81.50 acres of land situated inAnecasSo1mt', Texas, and being out of Survey 421, patented to F. W. Shaeffer, assignee of B. S. & F. by virtue of Land Scrip No. 1-1047, State Abstract 572, said tract also being the same property conveyed by deed from Julius I. Blucher and wife, Margaret Blucher, to C. D. Johns, dated July 26, 1941, and recorded in Volume 271, page 231, Deed Records of Nueces County, Texas, and said 81.50 acre tract being more fully described by metes and bounds as follows: BEGINNING at a concrete right-of-way monument on the north right-of-way line of Interstate Highway 37 and the west boundary of this tract, said monument being the southwest corner of this tract; THENary of this pass aC2 inch ironOrod4 in E along te west all 3088.74 feet to ad1"ion pipetract, for the i northwest corner corner of this tract; THENCE with the oleanders of Hearnes Ferry Road S 27° 26' 15" E, 138.89 feet, to a 1" iron pipe; THENCE S 50°_30' 00" E, 583.33 feet, to a 1" iron pipe; THENCE S 67° 00' 00" E, 500.00 feet, to a 3/4 inch iron rod; THENCE S 22° 15' 00" E, 163.89 feet, to a 60d nail in the pavement; THENCE S 00° 00' 00", 194.44 feet, to a 60d nail in the pavement; THENCE S 21° 30' 00" W, 338:89 feel , to a 5/8 inch iron rod; - THENCE S 27° 00' 00" E, 713.89 feel, to a 60d nail in the pavement; THENCE S 34° 10' 00" E, 433.33 feet, to a 60d nail in the pavement; THENCE S 31° 10' 00" E, 986.67 feet, to a 60d nail in the pavement, said nail being the southeast corner of this tract; THENCE leaving the meanders of Hearnes Ferry Road, S 89° 55' 26" W, 1of disc in concrete ono the north rigl the south -ofaway oftboth his thighwayract to a department UpRiver Roadand Interstate Highway 37; THENCEN 63° 01' 44" W, 330.77 feet, along the north right-of-way of Interstate Highway 37 to the POINT OF BEGINNING, and containing 81.50 acres of land, more or Tess. Page 2 of 4 TRECINNINC at the Intersection of the South right-of-way line of the. Missouri the Pacific Railroad with the east right-ofwaY line of Suntide Roadnorthwest corner of this tracts THENCE 5. 0° 43' 28" E along the said east right -o! -way line cofnof Sutide er of this Road a distance of 629.88 feet to a point for the southwesttract, said point being the northwest corner of a 10.0 acre tract in the name of 5untide Refining 0:openY: THENCE S 54° 39' 22" E along the north line of said 10.0 acre tract a ���a2neast of 1076.62 feet to the northeast corner of the 10.0 acre tract fox the corner of this tract; TwzmcB u OHO 43' 28"w a distance of 631.18 feet to a point in the south -right- of-way 3..tawo• the Missouri Pacific Railroad for tho northwest corner of this tract; lies of the Missouri TNCZ N S_42°-.31"4° W along the said south right-of.,way Pacific Railroad right-of-way a distance of 1049.48 feet to the point of a curvature of avcurve to-tho left; direction on said curve to the left. whose radius. is 56�g in ae , northwesterly feet to the Point of Beginning, forming a Sb79.58 lest, a dis`.ance of 26.38 N or less. tract of lao& embracing 12.5976 acres,more TRACT ?z - t c02asx 0! the p etofore described 12.5976 acro BEG crat inG-hthe-south - ou hri line of the Missouri Pacific Railroad for tho northwest coder of this a tract: THENCE S 54°-42' 31" E•along•the-said south right-of-way line of tho Missouri Pacific Railroad a distance of 115.81 feet to a point in tho west line of a pipeline easement granted to Corpus Christi Petrochemical Company for the north- east -corner of -this tract; L s.i a� THEN= S 350 07' 51"W along said west line of the Corpus Christ erior Company pipeline easement a distance of 155.90 fest to A poin Corner of this -tract; • • the st line of the Corpus Christi Petrochemical Tcontinuing Along easement 5 0� 34' 08" E a distance of 437.58 feet to a point for the southeast erpoint lying on the easterly extension for the southeast cower of this tract. said of the south line of the heretofore described 12.5976 acre tract; THENCE $ 540 39' 22" W along said easterly extension of the south line of tho 12.5976 acre tract, a distance of 1.45 feet to the southeast corner of said tract for the southwest corner of this tract: THENCE N O° 43' 28" W along the east line of the 1 15976 .576 aocfro land embracing a. dist of 631.18 feet to the Point of Beginning forming 0.2302 acres, mare or leas. Page 3 of 4 TRACT NO. 33:out of the W. S - BEGINNING at the Northeast corner of a 10.0 acre tract, McGregor tract, in the nam* of Suntide Refining Company out the northwest corner of this tract, said point also being the southeast corner of the heretofore described 12.5976 acre tract and the southwest corner of the heretofore described 0.2302 acre tract, said point having Lembert Grid Coordinates (south Zona) of X.2,317,677.72. Y. 789,909.751 tan THENCE S O° 43' 28" E along the east line of said ir0 tractacre rartaa list cce of 500.0 feet to the southeast corner of the 10.0 corner of this tract; THENCE N 540 39' 22" W along the south line of the 10.0 acre tract a distance of 0.16 feet to -a point for a coiner of this tract; THENCE S 0° 59' 48" E a distance of 50.0 (fceet t o! aointet for t ersouthanted to Corpus orner Christi Petrocsaid point being ahemical Company; THENCE N 89° 00' 12" E along said easement granted to Corpus Christi Petroabenical Company a distance of 10.0 feet to a point for the southeast corner of this tract, said point being 15 feet from the centerline of tha- Corpus Christi -Petrochemical Company eaaeaeat; T1mmuCE N 0°-59' 48" W 15 feet west of and parallel to the centerline of the Corpus Christi:Petrochemical Company easement a distance of 56.70 foot to a point for-an_interior corner of this tract; THENCE -N 00=34' 080W 15-fest west of and parallel to the centerline of the - Corpus Christi 22trcbeaical Company easement a distance of 543.14 feet to a point for -the northeast corner of this tract; TENCE_S 690 25' 52" W a distance of 10.0 feet to a point in the west boundary of the Corpus Christi Petrochemical Company easement and the east line of the 0.2302 acre treat for the most northerly northwest corner of this tract; =et= S 00-34''08" E along the east boundary of the 0.2302 acre tract a distance of 50.85 feet to the southeast corner of the 0.2302 acro tract for an interior corner of this tract; THENCE N 54° 42' 31" W along the south line of the 0.2302 acre tract a • a tract of land embracing of 1.457.feet ge to tha est or�0.143 acres�gmore or less. ea2>racis+9 6247.89 *gears • Page 4 of 4 THE STATE OF TEXAS COUiNTY OF PIUECES CITY OF CORPUS CHRISTI INDUSTRIAL DISTRICT AGPEEPEHT • This Agreement made and entered into by and between the CITY OF CHRISTI, TEXAS, a municipal corporation of Nueces County, Texas, hereinaf called "CITY", -and GULF STATES OIL & a REFINa7G CO. corporatie Landowner a "COMPANY", Lessee Improvements icier #opt, hereinafter collectively c WITNES.S ETH: WHEREAS, it is the established policy of the City Council of the C of Corpus Christi, Texas, to adopt reasonable measures permitted by 1aw whir will tend to enhance the economic stab virons and which will attract the to Y and growth of the City and its e ion of new and expansion of existing industries -therein, and such p cy is hereby reaffirmed and adopted by this City Council as being in he be interest of the City and its citizens; and WHEREAS, o..anv s the owner or lessee of land or owner of improve- ments on land within P traterritorial jurisdiction of the City of Corpus Christi, which land shall, upon execution of this agreement by the City, be knoVrn as "Corpus Christi Industrial' District h'o. and which land is more particularly." described in Exhibit "A" attached hereto, and incorporated herein for ail purposes, herein called "said land' which Company has either constructed � and upon expansion of improvements; and (and/or contemplates) the construction or WHEREAS; pursuant to. said policy and the provisions of Article 970a, 'Revised Civil Statutes of Texas, known a -s the Municipal Annexation Act,.City has enacted Ordinance.no. Is898 .•Ctty indicating. its willingness-, within 90 days after final passage of said ordinance, to enter into industrial d ments with industries located within its extraterritorial ' district agree - designating areas located in its extraterritorial jurisdiction and districts, herein collective) " jurisdiction as industrial y called Districts"; and f 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 uith Company: NMI, THEREFORE, in consideration of the premises, the mutual agreement of the parties herein contained and pursuant to the authority granted under the Municipal Annexation Act and the Ordinance'of City referred to above, City and Company hereby agree as follows: 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 extra - •:territorial status as an industrial district and shall continue to retain such status until and unless the same is changed 'pursuant to the terms of this Agree- ment. Except as, herein provided City further covenants and agrees that said • land shall be immune from annexation. During the term hereof City shall have no obligation to extend to said land any City services except fire protection in the event Company makes addi-. . tiona} payments to City under Article III(d) hereof s and such other cit services as are being provided to and yy(i� - -,-Further, Cit paid for by CanpanY•on date hereof. _11 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;• provided, however, Company further agrees that it will in no way divide said land or additions thereto without complying with State law and City ordinances governing subdivision of land; (b) prescribing any building, electrical, plumbing or inspection code or codes; or (c) prescribing any rules governing the method of operations of Company's business, except as to those regulations relating to the delivery of utility services and industrial waste disposal through.City owned facilities. • • • • II The term of this Agreement shall begin on the first day of January, 1981,.and shall continue until December 31, 1987, unless extended for additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act;'provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before March. 31 of the final calendar year of the term hereof, then the immunity from annexatioi -2- 71 granted herein shall terminate on that date, but all other terms of this AA ment shall regain in effect for the remainder of the term; provided, howeve the effective date and time of such annexation shall be no earlier than mid . of December 31 of such final year of the term. • This Agreement may be extended for an additional period or periods agreement between City and Company and/or its assigns_ In this connection, recognizes that industrial district agreements of this kind are conducive tc development of existing and future industry and business and are to the bes5 - interest of•all citizens of City.. Accordingly, future City Councils are her :encouraged, but are not obligated, to enter into industrial district agreemc 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 .personal property located thereon) equal to one hundred percent (1004) of th• amount of ad valorem taxes based upon the market value of said land which wot otherwise be payable to City by Company if said land were situated within "thr city limits df 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 wh relates directly to the primary use of. the parent tract, and which Companyde to add to said land, such new land shall be included in Company's land known said land, and shall be considered in calculating the in lieu of tax payment( said land as of January 1 of the first year following the date which such new land is acquired by Company. In addition, Company shall provide City a revise Exhibit "A" which includes a complete description of such new land. (b) An amount in lieu of taxes on improvements (exluding personal pro erty) located on said land equal to fifty percent (50Z) of the amount of ad valorem taxes which would otherwise be..payable to City by Company if said imprr ments were situated on land within the city limits of City. On or before March 31 of each year during the term of this Agreemc Company shall provide to City's Tax Assessor -Collector a written statement of i opinion of the market value sworn to by an official of Company authorized to dd the same. -3- M ,(c) With respect to any new improvements or facilities, which are:• -hereby defined as those being completed after January 1, 1974 which increase production capacity, which may be required or proper for environmental or safety reasons, or which are made necessary because of a change in raw mater- ials being processed, Company shall pay to City five percent (5%) rather 'than the percentages of the amount of ad valorem taxes as calculated in paragraph (b) • above for each year of use, i.e., 10% the second year in use,.15% the third year. in use, etc. Payments under this provision shall never exceed fifty percent - - (50%). The first year of use 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 construc- - tion of new irn.proveriients .or facilities'and to the expansion of existing improve-. ments or facilities on said land. New improvements or facilities not included-- - within this paragraph (c) shall be deemed to be included within the provisions • • of paragraph (b)•above. (d) An additional amount for City fire protection equal to fifteen • percent (15%) of the amount which would be payable on 100% of assessed.value of improvemeits located in said land notwithstanding the provisions of"pare- _ graph (b) above; provided, however, that if and as long as Company is a member in good standing of the Refinery Terminal Fire Company, or its successor, it - shall not be obligated to pay the additional amount provided"by this paragraph •- - (d). (e) At the request of Company, an alternative to.the method of calcula- . tion set forth in paragraphs (a) through (d) above, the Company tnay•make aYpayment 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 ';ere outside the city limits, and deducting from the amount which would otherwise be due from such calculation the property taxes actually due to City resulting from the assessed values of land and improvements, excluding personal property, located inside the City. If Company selects such alternative procedure, the amount due to City under this section shall be the resulting difference or the minimum payment required in paragraph (f), whichever is greater. In addition, Company - 4 - IPprovide City,•by attaching hereto as'Exhibit "B", a complete descr fon of the lands contiguous to said land, or forming an integral part of Company's . primary operation located on said land, owned by Company inside the city limits. With respect to any new land acquired by Company after January 1,-, 1981, located inside the city limits, which is contiguous to said land, or forms. an integral part of Company's primary operation located on said land, such new land may be considered in the alternative method of calculating the in lieu of:. tax payment as stated above, as of January 1 of the first year following the :- --date which such new land is acquired by Company. 'Company shall 'provide City..a.:• • • new or revised Exhibit "B" which includes a complete description of such. new land.. (f) Minimum Payments. For any Company which qualifies as an industry.under. Ordinance No. 15898 and which has less than two million dollars ($2,000,000.00) in market value of improvements on said land subject to this agreement, such Company, in lieu of the payments in items (a),(b),(c),(d) and (e) above, shall pay the lower of: • (i).an amount in lieu of taxes on said land equal to one hundred . . percent (100%) of the amount of ad valorem taxes based on the market value of. said land which would be payble-to City if said land were situated within the city li.mits,'plus.an amount equal to one hundred percent (100%) of the ad valorem taxes on one million dollars ($1,000,000.00) of improvements which would be payable to City if said improvements were situated within the city limits, regardless of whether one million dollars ($1,000,000.00) of improve- ments exist on - said land, or (ii) the amount of .ad valorem taxes on land, improvements and per-: sonal property on said land which .would be payable to City if said land, improve=. ' . ments and personal property were situated within the city limits of City. Iv Company agrees to pay to City on or before December 31 of each year . during the term hereof all payments. in lieu of taxes provided for hereunder without discount for early payment. The present ratio of ad valorem tax assess- ment used by City is one hundred percent (100%) of the fair market value of property. Any change in such ratio used by City shall be reflected in any subsequent computations hereunder. This Agreement and the method of deter- mining and fixing the amount of in lieu of taxes payments hereunder shall be subject to all provisions of law relating to determination of market value and -5- l taxation, including, but not limited to, laws relating to rendition, assessmf equalization and appeal. V In the event company elects to protest the valuation set on any of i 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 o) 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 the result of other final settlement of the pany's property is established as an amount pute the initial in lieu of tax payment for thirty (30) days thereafter City shall make of competent jurisdiction, or as controversy, the valuation of Com - less than the amount used to com- such year by Company, then•within 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 elec 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 penalties, interest, attorney's fees, and able by the City as would be in a suit to -6- due under this Agreement, the same cost of collection shall be recover- recover delinquentad vol orem taxes. • (b) City shall be entitled to a.tax lien on said land and improvemen in the event of default in payment of in lieu of taxes payments hereunder, wWf may be enforced by City in the same manner as provided by jaw for the collect of delinquent ad valorem taxes. . (c) In the event City breaches this Agreement by annexing or attempt to pass an ordinance annexing any of•the said land, Company shall be entitled enjoin City from the date of its breach for the balance of the term of this Ac ment, from enforcing any annexation ordinance adopted in violation of this Agr ment and from taking any further action in violation of this Agreement. If Company -elects to pursue this remedy, then so long as City specifically perfo? 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 acquisitio 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, leasee rented or possessed by Company, is made by another municipality, orif the incc poration of any new municipality should be attempted so as to include within ii limits 'such land or property, the City shall seek a temporary and permanent in- junction against such annexation or. incorporation, with the cooperation of Com - l. pany, and shall take such other legal action as may be necessary or advisable under the .circumstainces. 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 temporar 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 taxe. payments required hereunder.' Such option shall be exercised within thirty (30) days after the application for such temporary injunction is denied. In the -7- ISO. .' event Company elects to continue such in lieu of taxes payments, the City sh. place future payments hereunder together with part of the payment for the ca. dar year in which such annexation or incorporation is attempted, prorated to date such temporary injunction or "relief is denied, in a separate interest -be ing escrow account which shall be held by City subject to the following:.' (a)'In the eevent final judgment (after all appellate review, if any, has been exhausted) is entered denying a permanent injunction.and/or upholdin such annexation or incorporation, then all such payments and accrued interest thereon shall be refunded to Company; or (b) In the event final judgment (after all appellate review, if any, has been exhausted) is entered granting a permanent injunction and/or.invali- dating such annexation or incorporation, then all such payments end accrued interest thereon shall be retained for use by'City. IX • The benefits accruing to Company under this Agreement shall also ex- tend to Company's "affiliates" and to any properties presently owned or acquirr by said affiliates within the area described in Exhibit "A".to this Agreement, and where reference is made herein to land, property and improvements owned by Company, that shall also include land and improvements presently owned by -its affiliates. The word "affiliates" as used herein shall mean (1) all companies with respect to which Company directly or indirectly, through one or more inter mediaries at the time in question, owns or has the power to exercise control • over fifty percent (50%) or more of the stock having the right to vote for the .election of directors; or (2) ail corporations which are members of a .."controllf group of corporations" (as that term is defined in Section 1563(a) of the Interr Revenue Code of 1954, as amended) of which the Company is a member. • X This Agreement shall inure to the benefit of and be binding upon:City and Company, and upon Company's successors and assigns, affiliates and subsidi- aries, and shall remain in force whether Company sells, assigns, or in any other manner.disposes of, either voluntarily or by operations of law, all or any part - of said .land, and the agreementsherein contained shall be held to be covenants running with said land for so long as this Agreement or any extension thereof remains in force. -8- XI' 111A4i 4\ (a) Whenever the Company sells a contiguous portion of said land *con- sisting. of 20 acres or more to an ancillary industry which will be engaged on the property in the further processing of the product of the Company or the preparation of raw materials prior to their processing by.the Company, then platting of such property may be deferred under the following conditions: (i) The seller shall submit for approval by the City Council a site plan indicating the proposed water, sewer, drainage, access, and street plans for said land.' . (ii) Both the buyer and the seller shall enter into an agreement with the City requiring the platting of said land in the event • the buyer'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 lie of taxes attributable to the buyer's holdings on the property unless the buyer has entered into a supplemental industrial district contract with the City con- :cerning such holdings. ((i} Whenever the Company properly plats, subdivides and conveys to a buyer other than an affiliate a portion of the lands described in Exhibit "A" and/or Exhibit "B", Company shall furnish to the City's Tax Assessor -Collector a revised Exhibit "A" and/or Exhibit "B"•, which revised exhibit or exhibits shall constitute an amendment to this Agreement, effective for the calendar year next following the calendar year in which the conveyance occurred. Seller shall•remain solely responsible for any payments in lieu of taxes for the calen- dar year in which the conveyance occurred. In the event the Company improperly plats, subdivides or conveys a portion of the lands described in Exhibit "A" or- Exhibit "8", 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 agreemen (1) Standard Industrial Classification Manual . (Executive Office of the Presid Office of Management and Budget, Statistical Policy Division, 1972)_ 659 pp -9- Asst. litCan industry of. the same classification,' i, theosnoaconfpcoarognottmic which contains in lieu of tax payment terms and pro visions more favorable to such landowner than those in this Agreement, Company and its assigns shall have the right to either terminate this Agreement, or amend this Aereement to contain such more favorable in lieu of tax payment terms and provisions. XIII In the event any one or more words, phrases, clauses, sentences, para— graphs, sections, articles or other parts of this Agreement or the application _- thereof to any person, firm, corporation or circumstances shall ever.be held by . any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agree- ment shall be deemed to be independent of and separable from the remainder of _ this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. ENTERED into this 24 day of February ATTEST: e,'tary ATTEST:• 1.. 1 'Secretary ATTEST: Secretary ATTEST: 19 81. GULF STATES OIL & REFINING CO(Company) .- (Landowner` & Improvements ixaner) By Gary T. Jo es • Senior Vice President ' By (Lessee) • (Company) By • (Company) (Improvements Owner) CITY OF CORPUS CHRISTI • By City Secretary R. Marvin Townsend, City Manager APPROVED: DAY OF , 1980: J. BRUCE AYCOCK, CITY ATTORNEY By • Assistant City Attorney -1 o- That the foregoing ordinance was read for e first time and passed to its second reading on this the a5— 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 ordinance as 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 foregoin ordina ,.� as re on this the day of Luther Jones Edward L. Sample Dr. Jack Best Jack K.'Dumphy Leopoldo Lunar Betty N. Turner Cliff Zarsky PASSED AND APPROVED, this the 3/ day of it Zf .i_ , 19 p/ ATTEST: , 19g/ , by the d time and passed to its 19 $ j , by the for the third time and.passed finally _, 190/ , by the following vote: APPRD ED: Zs DAY OF r4,r , 19g( : J. BRUCE AYCOCK, CITY ATTORNEY B Assis City Attorney MAY1R TH CITY OF CORPUS CHRISTI, TEXAS 16158 MOTION TO AMEND moved and g � seconded this motion to am .d the ordinance authorizing the City Manager to exe- cute an industrial district agreement with Gulf States Oil and Refining 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 11, 1981, the following: 1. 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." 2. 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 &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 i mnunity-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." - 3. 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." , - 4.Amending Article ILI(f) of Exhibit 1 to hereafter read as follows: "(f) Minimum Payments. For any Company which qualifies as an -industry under Ordinance No. 15898 and which has less than , two million dollars ($2,000,000) in market value -of improvements on said land subject to this agreement, such Company, in lieu of the payments in items (a), (b), (c), (d), and (e) above, shall pay the lower of: "(i) an amount in lieu of taxes on said land equal to one hundred percent (100%) of the amount of ad valorem taxes based on the market value of said land which would be payable to City if said land were situated within the city limits, plus an amount equal to one hundred percent (100%) of the ad valorem taxes on one million 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." 5. 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—indicatingits 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 juri sdfction-as-industrial districts, herein collectively called "Districts",-and.0rdinance No. 15949 designating land areas as Corpus Christi Industrial Development Area No. 1 and Corpus,Christi Industrial Development Area No. 2; and" PASSED - *u r-cA. Z .4),) /1P/ MOTION jj U M PY/. moved and LxJ A/el-- seconded this motion to include in the ordinance authorizing the City Manager to execute an industrial district agteement with Gulf States Oil and Refining Com- pany for a term of seven (7) years commencing January 1, 1981, passed on first 4 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. Adding the required Exhibit "A" describing the lands to be included within the industrial district. PASSED 1_„... // / l e/