HomeMy WebLinkAbout16178 ORD - 04/08/1981AN ORDINANCE
AUTHORIZING THE CITY'MANAGER TO EXECUTE AN INDUSTRIAL
DISTRICT AGREEMENT WITH Producers Grain Corporation
FOR A TERM OF SEVEN (7)
YEARS COMMENCING JANUARY 1, 1981; DESIGNATING AN AREA
TO BE KNOWN AS "CORPUS CHRISTI INDUSTRIAL DISTRICT NO.
17 "; EXEMPTING SUCH AREA FROM ANNEXATION AND PROVID-
ING FOR AN ANNUAL PAYMENT IN LIEU OF TAXES TO THE CITY
DURING THE TERM THEREOF; ALL AS MORE FULLY SET FORTH
IN THE INDUSTRIAL DISTRICT AGREEMENT, A SUBSTANTIAL
COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF,
MARKED EXHIBIT 1.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager be and he is hereby authorized
to execute an Industrial District Agreement with Producers Grain •
Corporation " for a term of seven (7) years commencing
January 1, 1981; designating an area to be known as "Corpus Christi Industrial
District No.17"; 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.
161.98MMCROFILMED
SEP 2 71984
GEORGE W. JONES
VIOL P1E810E147
CHARCIC
Mayor and City Council
Corpus Christi, Texas
Gentlemen:
3113 PETROLEUM BLOO.
AMARILLO, TEXAS 79120
February 24, 1981
P. 0. BOX 32390
PHONE AC 006.374-0331
TELEx 730446 PROGRAIN AMA
RE: Corpus Christi Industrial District Agreement
On November 26, 1980, Ordinance No. 15989 authorizing the designation of
land areas located within the extraterritorial jurisdiction of the City of Corpus
Christi, Texas, as industrial districts became effective. Since the effective
date of the Ordinance, the City of Corpus Christi has invited certain industries
owning property within its extraterritorial jurisdiction to execute and tender to
the City a proposed Industrial District Agreement. Producers Grain Corporation
is one of the industries to which an invitation was extended. The Ordinance
required that the Agreements be tendered to the City on or before February 26,
1981. Subsequently, the Council agreed that only a letter of intent to tender
an Industrial District Agreement to the City would be required by the February 26
date,
Please consider this to be the letter of intent of Producers Grain Corporation
to sign an Industrial District Agreement covering all of the property operated as
Producers Grain Port Terminal. This property includes a long-term leasehold
interest in land and the full ownership of the improvements located upon the land.
This Agreement will cover all of the property owned by Producers Grain Corporation
situated within the extraterritorial jurisdiction of the City which is eligible
to be covered by such an Agreement. The Agreement to be signed by Producers Grain
Corporation shall be in a form, and contain terms and provisions, which are
mutually acceptable to the City of Corpus Christi and the Corporation.
If a mutually acceptable form of Agreement is negotiated, it is the intent
of the Corporation to sign such Agreement and tender it to the City in sufficient
time to have the Agreement heard and considered by the City Council on three read-
ings by no later than July 1, 1981.
RECEIVED:
Gity,:Secretary's•,Office
DATE:
TIME:
February 25, 1981
11:32 a.m.
Very truly yours,
PRODUCERS GRAIN CORPORATION
By
George W. Jones, Vice swC r¢
ldent and
Acting General Manager
.J; f
INDUSTRIAL DISTRICT AGREEMENT
THE STATE OF TEXAS
COUNTY OF NUECES
CITY OF CORPUS CHRISTI
This Agreement made and entered into by and between the CITY OF CORPUS
CHRISTI, TEXAS, a municipal corporation of Nueces County, Texas, hereinafter
called "CITY", and
(Landowner)
Atxxxxxxxxxxxxxxxxxxxxxxxx¢or aXs4p) PRODUCERS GRAIN CORPORATION
(Lessee)
, a Texas Cooperative Marketing
corporation,x'LId Lessee and Improvements Owner
(Improvements Owner)
AcxxxxxxxrxxxxxxxxxxxxxxR4ilziOrrAkieoa2s hereinafter collectively called "COMPANY",
WITNESSETH:
WHEREAS, it is the established policy of the City Council of the City
of Corpus Christi,_Texas, to adopt reasonable measures permitted by law which
will tend to enhance the economic stability and growth of the City and its en-
virons and which will attract the location of new and expansion of existing
industries therein, and such policy is hereby reaffirmed and adopted by this
City Council as being in the best interest of the City and its citizens; and
WHEREAS, Company is the owner or lessee of land or owner, of improve-
ments on land within the extraterritorial jurisdiction of the City of Corpus
Christi, which land shall, upon execution of this agreement by the_City, be
known as "Corpus Christi Industrial District No. ! 7
11,
and which land is more particularly described in Exhibit "A" attached hereto,
and incorporated herein for all purposes, herein called "said land" and upon
which Company has either constructed (and/or contemplates) the construction or
expansion of improvements; and
WHEREAS, pursuant to said policy and provisions of Article 970a,
Revised Civil Statutes of Texas, known as the Municipal Annexation Act, City
'has enacted Ordinance No. 15898 indicating its willingness, within 90 days
after final passage of said ordinance, to enter into industrial district agree-
ments with industries located within its extraterritorial jurisdiction and
designating areas located in its extraterritorial jurisdiction as industrial
districts, herein collectively called "Districts" and Ordinance No. 15949
r1 .
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 industriaal
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
e 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
interestofall citizens of City. Accordingly, future City Councils are hereby
encouraged, but are not obligated, to enter into industrial district agreements
_and to extendexisting 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, such new land shall be
included in Company's land known as said land, and shall be considered in calcu-
lating 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 de-
scription of such new land.
(b) An amount in lieu of taxes on improvements (excluding personal
property) located -on said land equal to fifty percent (50%) of the amount of
ad valorem taxes which would otherwise be payable to City by Company if said
improvements were situated on land within the city limits of City.
On or before March 31 of each year during the term of this Agree-
ment, Company shall provide to City's Tax Assessor -Collector a written statement
of its opinion of the market value sworn to by an official of Company authorized
to do the same.
(c) With respect to any new improvements or facilities, which are
hereby defined as those being completed after January 1, 1974, Company shall
pay to City five percent (5%) rather than the percentages of the amount of ad
valorem taxes as calculated in paragraph (b) above for each year of use, i.e.,
1n% 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
said land, or
on said land,
(a) through (d) above, said land and all other lands contiguous to
forming an integral part of.Company's primary operation located
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
requiredin 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.
- 4 -
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
saidlandwhich 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 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 determini,g1
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 municipalityshould 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 -
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 thisAgreement 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 -
r
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 into a supplemental industrial district contract with the
= City concerning such holdings.
(b) Whenever the Company properly plats, subdivides and conveys to a
buyer other than an affiliate a portion of the lands described in Exhibit "A"
and/or Exhibit "B", Company shall furnish to the City's Tax Assessor -Collector
a revised Exhibit "A" and/or Exhibit "B", which revised exhibit or --exhibits
shall constitute an amendment to this Agreement, effective for the calendar
year next following the calendar year in which the conveyance occurred. Seller
shall remain solely responsible for any payments in lieu of taxes for the calen-
_dar year in which the conveyance occurred. In the event the Company improperly
plats, subdivides or conveys a portion of the lands described in Exhibit "A" or
Exhibit "B", Company shall remain solely responsible 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
-9-
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 -day of , 19
ATTEST:
Secretary
ATTEST:
, Secr ary
ATTEST::,
ezA4e, Secre .ry
ATTEST:
City Secretary
APPROVED: DAY OF
J. BRUCE AYCOCK, CITY ATTORNEY
By
, 19
By
(Landowner)
(Company)
PRODUCERS GRAIN CORPORATION_ _(Company)
(Lessee)
PRODUCERS GRAIN CORPORATION
(Improvements Owner)
(Company)_
CITY OF CORPUS CHRISTI
By
R. Marvin Townsend, City Manager
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 -
EXIIIBIT "A"
A tract embracing 53.98 acres of land, more or less, and
submerged land situated in Nueces County, Texas, about
4-1/2 miles N 75° W from the County Seat, extending from
Up River or Shell Road northward to a line crossing the
waters of Nueces Bay in a general northwesterly and south-
easterly direction and referred to as the Navigation
District south bulkhead line, being the westerly portion
of a tract known as the Wm. Meaney 56.5 acre tract, with
accretion (said Wm. Meaney 56.5 acre tract being comprised
of four tracts described in instruments of record in the
Deed Records of Nueces County, Texas, in Volume 119, page
389, Volume 120, page 223 and Volume 194, page 333),
together with a part of that portion of State of Texas
submerged land Surveys Nos. 689 and 750, patented to
Nueces County Navigation District No. 1 by the State of
Texas on May 7, 1930, as recorded in the Deed Records of
Nueces County, Texas, in Volume 192, at page 579; said
53.98 acre tract is described by metes and bounds as
follows:
'Beginning at a point, the southeast corner
of a tract known as the Helen Dunn 15.3 acre
tract and the southwest.corner of said Wm. Meaney
Tract, for the southwest corner of this tract;
Thence N 24° 33' 10" E with said east bound-
ary line of Dunn 15.3 acre tract, and west boundary
line of Meaney Tract, at 710 -feet, an iron pipe in
an old dam, at 825 feet, more or less, cross the
centerline of -mainline tract of San Antonio, Uvalde
and Gulf Railroad, at 1180.29 feet, an old post, in
all 1204.09 feet to a point in said line running in
a general northwesterly and southeasterly direction
and referred to as the Navigation District south
bulkhead line, being -located parallel with and 300
feet southwesterly measured at right angles, from
a line established as the centerline for a channel,
authorized to be 200 feet wide at the bottom and
34 feet deep, the northeast corner of said Helen
Dunn tract and northwest corner of a 7.48 acre
tract out of the said State of Texas submerged land
Surveys Nos. 689 and 750, conveyed to tors. Wm.'
Meaney by Nueces County Navigation District No. 1
in June, 1957, as recorded in said Deed Records
of Nueces County, Texas, in Volume 780 at page 503,
for the northwest corner of this tract;
Thence S 77° 20' 00" E, thru the waters of said
Nueces Bay, along said Navigation District south
bulkhead line, 2062.08 feet to a point, the north-
west corner of an 18 acre tract out of the east por-
tion of said Wm. Meaney Tract, for the northeast
corner of this tract;
Thence S 31° 31' 30" W, with the west boundary
line of said 18 acre tract, crossing a portion of
State submerged land Survey No. 750, a portion of
the 100 foot right of way of San Antonio, Uvalde
and Gulf Railroad, and of said Meaney 56.5 acre
tract, 1294.40 feet to a point in the north margin
of said Up River Road, the southwest corner of said
18 acre tract, for the southeast corner of this
tract;
Thence with the south boundary line of said
Meaney Tract and north boundary line of Up River
Road, N 74° 11' 20" E 538.65 feet N 75° 08' 00" W
596.40 feet, N 75° 52' 00" W 390 feet, N 75° 12' 00"
EXHIBIT "A"
W 210 feet, and N 81° 53' 00" W 158.20 feet to the
place of beginning; a portion of the land covered
by said lease lies between the upland tract of
lessor and the established south bulkhead line of
the ship channel of Nueces County Navigation District
No. 1 as said channel is now constructed, including
a twenty foot (20 ft.) strip of land south of and
along the said south bulkhead line and out of the
tract described as Parcel No. One and awarded to
the District by judgment of the County Court of
Nueces County, Texas, entered July 24, 1948, in
Cause No. 3693, which judgment is recorded in Vol.
455 at p. 191, Deed Records of Nueces County, Texas.
In the event the south bulkhead line of the said
channel, or any further extension thereof, should
be established in the future in a different location,
then the south bulkhead line of said channel as so
established shall become ipso facto the northerly
boundary of the land leased thereby, it being the
intention of the parties hereto to include within
said lease, as well as that portion of the leased
premises which is upland, all lands lying south of
the south bulkhead line of said channel, as the same
.or any further extension thereof may be constructed
or altered, and between an extension, if necessary,
of the east and west boundary lines of the leased
premises in a northerly direction to said south
bulkhead line;
Containing a gross area of 53.98 acres more or
less, of which 3.66 acres, more or less, is embraced
within the recorded right of way for San Antonio,
Uvalde and Gulf Railroad.
EXHIBIT "A"
R E. LNDERWOOD
11877.19661
W. N SUTTON
11907.19791
4, R. A. WILSON
H. A. BERRY
CLIFFORO A STEIN
EROM E
HARLOW Y. JOHNSON
JER
LYONS
wLOW 5
WINSTON R. Sm TH
EDWARD M. HILL
D. BARRY STONE
JAMES A. BESSELMAN
E. T MANNING. JR.
UNDERWOOD, WILSON, BERRY, STEIN &JOHNSON
ATTORNEYS AND COUNSELLORS AT LAW
AMARILLO NATIONAL BANK BUILDING
TELEPHONE B06-376-5613
AMARILLO, TEXAS
ADORE POST OFFICE CORRESPONDENCE TO
CE 00%9158
78108
June 18, 1981
Mr. Thomas J. Basile,
Administrative Assistant
Office of the City Manager
P. 0. Box 9277
Corpus Christi, Texas 78408
30E
Jim 7987
`—' ADIyrlNl
N SRATIVE
OFFICES
cr?6, 7 V
RE: Producers Grain Corporation Industrial
Agreement_
Dear Mr. Basile:
District
DON Y. DEAN
A. W.SORELLE III
GERALD G. 8YBEE
WILLIAM A. HOY
JERRY N. SMITH
JOHN MOZOLA
ALAN O. JONES
RICmARO ROwN
®OF2 N
DEBORAH D. WELCH
THOMAS R. DIXON, JR.
JOSIAH M. DANIEL III
JANET L. ICING
LINDA C. GROVES
KELLY urs-INGE
RICHARD S ON
In accordance with our telephone conversations of today, we
enclose for your review copies of the lease -documents covering
the land upon which Producers Grain Corporation's Port Terminal
"facility is situated.
As you can see from the enclosed documents, Producers is the
lessee from Mary Dunn Meaney with the lease to expire December 7,
2057. The lease covers only the unimproved land; all of the
improvements situated upon the -property, including the grain
elevators, are owned outright by Producers. Under the lease, the
rental is redetermined every ten years based upon new appraisals
at -the time of the redetermination. The current rental; --which is
paid annually, is based upon a redetermination made in 1978 and
is thus fixed until 1988. Also, we would call your attention to
the fact that the lease permits the lessee to freely assign all
or any part of its interest in the leasehold estate without the
joinder or approval of the lessor.
As I indicated to you, we are having great difficulty in,
obtaining the joinder of each of the current landowners in the
Industrial District Agreement. While we are prepared to furnish
you with an agreement executed by Producers at any time, we are
unable to provide you with an agreement executed by the land-
owners before the first of July deadline. In the past, Mr. John
C. North, Jr., a Corpus Christi attorney, has represented the
family with regard to the lease, including matters relating to
the redetermination of rentals. However, Mr. North advises me
that the ownership is now fragmented among approximately sixty
Mr. Thomas J. Basile
Page 2
June 18, 1981
individuals and entities spread all over the world and it has
become increasingly difficult for him to manage his representation
of the entire group. We hay been working with him over the past
several weeks in attempting to obtain execution by all of the
landowners. However, it is apparent to us now that we will not
be able to do that by July 1.
Mr. North advises me that none of the family members have
refused to sign an agreement. It is simply a matter of his being
unable to contact some of the owners or, in some cases, not being
able to generate much enthusiasm or sense of urgency about signing
_,in those whomhe has contacted.
We will continue to attempt to obtain execution by as many
members of the family as we can. Perhaps we can even obtain
execution -by some prior to the July 1 deadline. However, we
request that the city consider accepting the agreement signed by
Producers only in view of the fact that the lease does not expire
until the year 2057 and the fact that Producers owns all of the
improvements situated upon the land. It appears to us that,
except for the obligation to pay rental, Producers possesses all
of the incidents ofownershipof the land that should be of
concern to the city in connection with the formation of the
:Industrial District. While it is true that the failure to pay
rental could result in terminationof the lease, we consider that
to be a very unlikely prospect. In any event, we believe the
possibility of losing the leasehold interest by failing to pay
rental to be analogous to the possibility of a landowner losing
his land to a mortgagee because of the landowner's failure to pay
a mortgagedebt when due. In either event, the party in lawful
possession of the land would be divested of its interest in favor
of a party, not subject to the Industrial District Agreement. As
I understand it, you are not requiring parties holding mortgage
liens on lands to be included in an Industrial District to become
parties to the agreement even -though the mortgage liens are in
existence at the time the Industrial District is created.
Please consider the requests set forth in this letter and
advise us of your decision with regard to our situation. In the
meantime, we will attempt to obtain signatures on the agreement
of as many landowners as we can. However, we cannot represent to
you that we will be able to obtain any.
JNS/mc
cc: Mr. John Bauer, Executive Vice President
Producers Grain Corporation
Very truly youks,
. Smith
THE STATE OF TEXAS
COUNTY OF ULECES 4
The GUARANTY TITLE INSURANCE COMPANY, a corporation, having its
principal office at Corpus Christi, Texas, does hereby certify that the
foregoing pages numbered from Three (3) to.Twenty-eight (28) inclusive,
are a true and correct abstract of all instruments of record or on file
in the offices of theClerks of the County and District Courts of Nueces
County, Texas and in the office of the United States District Court.
Clerk located At Corpus Christi, Texas, affecting the title to the
property. described on Pages One (1) and Two (2) hereof, since February
24th, -_A. D. 1960 at 8:00 o'clock A. M. as to TRACT ONE.
We -further certify that the foregoing pages numbered Three (3) to
Twenty-eight (28) together with; Supplemental Abstract No. 23753,
certified from September 22, 1930 at 8:00 o'clock A. M. to December
29, A. D. 1958 at 8:00 o'clock A. M., prepared by Guaranty Title and
Trust Company, are a true and correct abstract of all instruments of
record affecting the title to the property described as TRACT TWO on
Page Two (2) of caption., since May 7th, A. D. 1930 at 8:00 o'clock A.M.
This Certificate DOES NOP cover any TAXES assessed against said
property.
This Certificate is issued for the use of and shall inure tothe
benefit of MR. HAYDEN HEAD
_The undersigned hereby certifies that it is the owner of a complete
abstract plant covering the above named records to the titles to all real
estate situated in said County from the Sovereignty of the Soil.
IN TESTIMONY WHEREOF, the Guaranty Title Insurance Company, by order
of its Board of Directors has caused this Certificate to be signed and the
corporate seal of said Company hereto affixed. -
DONE AT Corpus Christi, Texas
This the 21st day of March,
A. D. 1960 at 8:00 o'clock A. M.
GUARANTY TITLE INSURANCE COMPANY
Abstract No. 24002
PSG • Eckels�=G
Manager Abstract Department
THE STATE OF TEXAS
KNOW ALL MLN BY THESE PRESENTS:
COUNTY OF NUECES
THAT, Gulf Terminal Grain Company, a Texas corporation,
hereinafter called "Gulf", for and in consideration of -the
sum of Ten ($10.00) Dollars and other good and valuable con-
sideration in hand paid by Producers Grain Corporation, a
Texas corporation, hereinafter called "Producers", the
receipt of which consideration is acknowledged, hereby as-
signs, transfers and conveys to_Produccrs all of the lease-
hold estate created and..existing under and by virtue of that
:certain -lease -agreement dated February 25, 1960, recorded
in Volume 881, Page 296 et seq., of the Deed Records of
lhieces County, Texas, as amended by that certain agreement
dated March 29, 1960, recorded 3n Volume 884 at Page 637
et seq.,.o£ the Deed Records of Nueces County, Texas,
_entered into between Mary Dunn Meaney, as lessor. and Gulf,
as lessee, covering -the following described land situated
in Nueces=County;-Texas, to -wit:
A tract embracing 53.98 acres of land, more or
less, and submerged land situated in Nueces
County, -Texas, about'4-1/2 miles N 75° W from
the County Seat, extending from Up River or
Shell Road northward to a line crossing the
waters -of Nueces Bay in a general northwesterly
-and southeasterly direction and referred to as*
the -Navigation District south bulkhead line,
being the westerly portion of a tract known as
the 1,lm.-Heaney 56.5 acre tract, with accretion
(said Wm. Meaney 56.5 acre tract being comprised
of four tracts described in instruments of re-
cord in the Deed Records of Nueces County, Texas,
in Volume 119, page 389, Volume 120, page 223
and Volume 194, page 333), together with a part
of that portion of State of Texas submerged
land Surveys Nos. -689 and 750, pntented to
Nueces County Navigation District No. 1 by the
�-
State of Texas on May 7, 1930, as recorded in the
Deed Records of Nueces County, Texas, in Volume
192, at page 579; said 53.98 acre tract is
described by metes and bounds as follows:
Beginning at a point, the southeast
corner of a tract known as the Helen Dunn
15.3 acre tract and the southwest corner
of said Wm. Meaney Tract, for the south-
west corner of this tract;
Thence N 24° 33' 10" E with said east
boundary line of Dunn 15.3 acre tract, and
nest boundary line of Meaney Tract, at 710
feet, an iron pipe in au old dam, at 825
feet, more or less, cross the centerline
of mainline tract of San Antonio, Uvalde
and Gulf Railroad, at'1180.29 feet, an old
-post, in all 1204.09 feet to a point in said
line running in a general northwesterly and
_southeasterly direction and referred to as
the Navigation District south bulkhead line,
--being located parallel with and 300 feet
southwesterly measured at right angles, from
a line established as the centerline for a
channel, authorized to be 200 feet wide at
the bottom and 34 feet deep, the northeast
corner of said Helen Dunn tract and north-
west corner of.a 7.48 acre tract out of the
said State of Texas submerged land Surveys
Eos. 689 and 750,- conveyed to Mrs. Wm. Meaney
by Nueces County Navigation District No. 1 in
June, 1957, as recorded in said Deed Records
of tueces County, Texas, in Volume 780 at page
503, for the northwest corner of this tract;
-Thencc_S 77° 20' 00" E, thru the waters of
said .`;ucces Bay, along said Navigation District
south bulkhead line, 2062.08 feet to a point,
thenorthwestCorner of an 18 acre tract out
of_the east portion of said Wm. Meaney Tract,
for the northeast corner of this tract;
Thence S 31° 31' 30" W, with the west boun-
dary line of said la acre tract, crossing a
portion of State submerged land Survey No. 750,
a portion of the 100 foot right of way of San
Antonio, Uvalde and Gulf Railroad, and of said
Meaney 56.5 acre tract, 1294.40 feet to a
point in the_north margin of said Up River
Road, the southwest corner of said 18 acre
tract, for the southeast corner of this tract;
Thence with the south boundary line of
said Meaney Tract and north boundary line
of Up River Road, N 740 11' 20" E 538.65 feet,
-2-
I
2-
N 75° 08' 00" W 596.40 feet, N 75° 52' 00"
W 390 feet, fi 75° 12' 00",W 210 feet, and
N 81° 53' 00" W 158.20 feet to the place
of beginning; n portion of the land covered
by said lease lies between the upland tract
of lessor and the established south bulkhead
line of tho ship channel of Nueces County
Navigation District No.'1 as said channel
is now constructed, including n twenty foot
(20 ft.) strip of land south of and along
the said south bulkhead 'line and out of the
tract described as Parcel No. One and awarded
to the District by judgment of the County
Court of Nueces County, Texas, entered July
24, 1948, in Cause No. 3693, which judgment
is. -recorded in Vol. 455 at p. 191, Deed Re-
cords of Nueces County, -Texas. In the event
__-the south.bulkhend line of the said channel,
-or-any- further_extension thereof, should bo -
established in the future in a different lo-
cation, then the south bulkhead line of said
channel -as so established shall -become ipso
facto the northerly boundary- of the land
leased thereby, -it being the intention of
the parties hereto to include within said
.lease, as well as -that portion of the leased
premises which is upland, all lands lying
south of the -south bulkhead line of said
channel, aS the same or any further eaten-
= sion--thercof may be constructed or altered,
and between an extension, if necessary, of
the east and west_boundary-lines of the
leased premises in a. northerly direction -
to said south. bulkhead line;
Containing n gross area of 53.98 acres,
more or less, of which 3.66 acres, more or
less, is embraced within the recorded right
of way for San Antonio, Uvalde and Gulf
Railroad,
together with all improvements thereon and all buildings,
structures, machinery, equipment, apparatus and tools of what-
soever character or -description comprising and used in and
about the operation and conduct by Gulf of its business on
the premises, including, but not limited to the following,
to -wit:
AL1 storage elevators, storage buildings, head -
houses, conveyor bridges, marine towers, ship
loading galleries, docks, piling, truck dumps,
track or car dumps, siding and switch tracks,
-3-
(7) Instrument dated September 26, 1936, recorded
in Volume 222, page 221, Deed Records, Nueces County, Texas,
executed by William Meaney and wife, Mary Dann Heaney, to
Houston Oil Company of Teas.
(8) Instrument dated January 7, 1937, recorded in
Volume 228, page 85, Deed Records, Nueces County, Texas, -
executed by William Heaney and Mamie Heaney to Magnolia
Pipe Line Company.
(9) Instrument dated October 12, 1939, recorded in
Volume 253, page 14, Deed Records, Nucces County, Texas,
executed -by William and Mary Dunn Meaney to Magnolia Petro-
leum Company.
(10) Instrument dated April 6, 1937, recorded in
Volume 231, page 69, Deed Records, Nueces County, Texas,
executed by William Heaney and wife, Mamie Heaney, to
Humble Pipe Line Co..
(11)-Instrrrit dated January 16,_1940, recorded in
Volume 255';_page 104, Deed-Records,-Nueces County, -Texas,
executed12yMary Dunn Meaney, a widow, to Continental Pipe -
Line Company.
(12) Instrument dated December 30, 1939, recorded in
Volume 255, page 1, Deed Records, Nueces County, Texas,
executed-by_Crudc.0i1 Pipe Line Company -to Continental Oil
Company. •
(13) Instrument dated October 9, 1941, recorded in •
Volume 276, -Page 178, Deed Records, Nucces County, Texas,
executed by -P. C. Henderson, Individually and as Trustee,
to Southern -Pipe Line Corporation.
(14) ---Instrument dated November 18, 1941, recorded in
Volume 276, Page ---179, Deed Records, Nueces County, Texas,
executed_by-L. P. Henderson and husband, F. C. Henderson,
to Southern Pipe Line Corporation.
0.5) =Instrument dated June 10, 1943, recorded in
Volume 295, page 214, --Deed Records,'Nueces County, Texas,
executed by Firs. William Meaney, a widow, to the City of
Corpus Christi.
(16) -Instrument dated October 28, 1952, recorded in
Volume 591, page 334, Deed.Records, Nueces County, Texas,
-executed by Mary D. Meaney, a feme sole, to Central Power
-and Light Company..
(17) Instrument dated May 6, 1955, recorded in Volume
697, page 114, Deed Records. Nueces County, Texas, executed
by Mary Dunn Meaney, a feme solo, to Central Power and
Light Company.
(18) Instrument dated September 12, 1953, recorded in
Volume 610, page 144, Deed Records, Nueces County, Texas,
-5-
±';�''%.r_.. -.. ,.. ''- •.'"'-' _-..y. .,<.-.-. _,,. _.,fir.. ..�.:-,
executed by Mary Dunn Meaney to Sun Oil Company.
•
(19) Instrument dated December 12, 1955, recorded
in Volume -717, page 1, Deed Records of Nueces County, Texas,
executed by Mrs. Mary Dunn Meaney to Humble 0i1 & Refining
Company, as amended by instruments dated April 19, 1961,
recorded in Volume 923, Page 563, Deed Records of Nueces
County, Texas, and April 9, 1963, recorded in Volume 999,
Page 442, Deed Records of Nueces County, Texas.
(20) Instrument dated July 26, 1956, recorded in Volume
744, prge-88, Deed Records, Nueces County, Texas, executed
by Mrs. Mary -Dunn Meaney to Mumble Pipe Line Company, as
amended by instrument dated April 16, 1963, recorded in
Volume 1003, Page 128, Deed Records of Nueces County, Texas.
• (21) Easement created by judgment of the County Court
of-Nueces County, Texas, entered July 24, 1948, in Cause
No. 3693;-Nucces County -Navigation District No. 1 v. Mary
Dunn 2-tenney,.certified copy of which is recorded in Volume
455, page 191, Deed Records, Nueces County, Texas.
(22) Instrument dated May 13, 1953, recorded in Volume
988, page 210, Deed -Records -of Nueces County, Texas, executed
to Suntide Refining Company.
-TO HAVE AND TO Ii0LDz_the above described leasehold estate
and property, together with -all rights,.privileges, easements _
and appurtenances thereto in anywise -belonging unto Producers,
its successors and assigns, for the remainder of the term
of said lease in accordance with the -covenants, agreements
and _conditions- therein contained, Gihich Producers hereby assumes
and undertakes as the 1cssee owning said leasehold estate
therein from and after this date.
Ad valorem taxes for the year 1963 and all prior years on
the above described premises and property have been paid, and
Gulf hereby warrants such payment, but taxes for the year
1964 have been prorated:as of this date between the parties,
and Producers agrees to make_payment of the same when such
taxes become due and payable.
For the same consideration, Gulf hereby represents and
-6-
covenants that the above described lease is in full force
and effect, that it is not in default in any of its obliga-
tions thereunder nud has not breached the sane, that said
leasehold estate in the above described property is free
and clear of all liens and encumbrances, and that it will
warrant and forever defend the title thereto unto Producers,
-its successors and assigns, against the lawful claims and
demands -of all persons whomsoever claiming or to claim the
sameorany part thereof.
IN WITNESS WHEREOF, this_ instrument is executed by the
-parties acting by and through their respective _officers
-duly-authorized hereunto on this first day of June, 1964.
ATTEST:
Secretary
GULP TERMINAL GRAIN COMPANY
By
President
PRODUCERS GRAIN CORPORATION
By
President
- 7-
THE STATE OF TEXAS X
COUNTY OF NUECES X
• BEFORE ME, the undersigned authority, on this day
personally appeared Walter A. Theis, President of Gulf
Terminal Grain Company, a corporation, known to me to be
the'person and officer whose name is subscribed to the
foregoing instrument, and acknowledged to me that he
executed the same as the act and deed of said corporation
for tha purposes and consideration therein expressed,. and
in the capacity therein stated.
.41
Given under my hand and seal of office this /
day of June, 1964.
THE STATE OF_TEXAS X
COUNTY OE NUECES
('r
Notary Public in and for NUECES
County, Texas.
GLADYS M. HISAW
Notary Pith ic• in and for Nucces County, Texos
My Commission Expires June 1, I9l
- BEFORE ME, the undersigned authority, on this day
-personally appeared
President of Producers Grain Corporation, a corporation,
known to me to be the person and officer whose nage is sub-
scribed -to -the foregoing .instrument,_ and acknowledged to me
-that he executed-thc same as the act and deed of said corpora-
tion for the purposes and consideration therein expressed,
and in the capacity therein stated.
Given under my hand and seal of office this
day of Junei-1964.
Notary Public in and for NUECES
County, Texas.
,1
No. 54904.7 '
MARY .DUNi4 MEANEY
TO
GULF TERMINAL GRAIN COMPANY
THE STATE OF TEXAS
COUNTY OF NUECES
LEASE
Dated: February 25, 1960
Filed: February 29, 1960
Recorded: Volume 881, page 296
Deed Records of
Nueces County, Texas
THIS AGREEKENT made this 25th day_of February,
1960, by'and between Mary Dunn Meaney of the County of Nueces,
.State of Texas, hereinafter referred to as'^lessors, and Gulf -
Terminal Grain Company, a corporation organized under and by
virtue of the_laws of the State of Texas, hereinafter called
"lessee", •
WITNESSETH:
That lessor, as well for and in consideration of
rents and taxes, as of the performance of.the covenanta and
agreements, which on the part of the lessee are to be paid and
performed as hereinafter provided, has demised and leased, and
by these presents -does demise -and lease unto the said. lessee,
all that certain lot or parcel of land lying and being situated
in the County of Nueces, State of Texas, and described as -follows,
to -wit:
A tract embracing 53.98 acres of land,
more or less, and submerged land situated in
Nueces County, Texas about 44 miles N 75' W
from the County Seat, extending from Up River
or Shell load northward to a line crossing the
waters of Nueces "iiay in a general northwesterly
and southeasterly direction and referred to as
the Navigation district south bulkhead line, be-
ing the westerly portion of a tract known as the
Wm. Meaney 56.5 acre tract, with accretion (said
Vim. Meaney 56.5 acre tract being comprised of
four tracts described in instrucnt0 of record
in the deed records of Nueces County, Texas, in
Volume 119, page 389, Volume 120, psi{" 223 and
Volume 194, page 333), together wLth n part of.
that portion of State of Texas suhmtargod land
Surveys No. 689 and 750, patented to Nuoces:
County Navigation District No, 1 bl 014 State .-
of Texas on May 7, 1930 as reco rdnd In
Deed Records of Nueces County, TuxAI4, In Volume?
192, at page $79; said 53.98 acre Gratia, s r'
CI` \ I; m:A' TITLE .4: \ t1
Deed Records; Volume 881, page 296, continued
Page # 2
described by metes and bounds as follows:
Beginning at a point, the southeast corner of
a tract known as the Helen Dunn 15.3 acre tract,
and the southwest corner of said Wm. Meaney tract,
for the southwest corner of this tract;
Thence N 24° 331 10" E, with said east boundary
line of Dunn 15.3 acre tract, and west boundary
line of Meaney tract, at 710 feet, an iron pipe in an
old dam, at 825 feet, -more or less, cross the center-
line of mainline track of San Antonio, Uvalde and
Gulf Railroad, at 11$0.29 feet, an old post, in all
1204.09 feet to a point in said line running in a
general northwesterly and southeasterly direction and
referred to as the Navigation District south bulkhead
line, being located parallel with and 300 feet
southwesterly, measured at right angles, from a line
established as the centerline for a channel, authorized
to be 200 feet wide at the bottom and 34 feet deep,
the northeast corner of said Helen Dunn tract, and
northwest -corner of a 7.48 acre tract out of the said -
State of.Texas submerged and Surveys Mo. 689 and 750,
•
conveyed to Mrs. Wm. Meaney by Nueces County Navigation
District No. 1 in June, 1957 as recorded in said Deedd
Records of Nueces County,"Texas, in Volume 780 at page
503, for the northwest corner of this tract;
Thence S 77° 20' 00" E, thru the waters of said
Nueces pay, along said Navigation District south
bulkhead line, -"2062.08 feet to a point, the Northwest
corner of -an 18 acre tract out of the east portion
of said -Wm. Meaney tract, for the northeast corner of
this tract;
Thence g 31° 31' 30" W, with the west boundary line of
said 18 acre tract, crossing a portion of State sub-
merged land Survey No. 750, a portion of the 100 foot
right of way of San Antonio, Uvalde and Gulf Railroad, and
of said Meaney 56.5 acre tract, 1294.40 feet to a point
in the north margin of said Up River load, the southwest
corner of said 18.acre tract, for the southeast corner
of this tract;
Thence with the south boundary line of said Meaney tract
and north boundary line of Up River Road, N 74° 111 20"
E 538.65 feet, N 75° 081 00" W 596.40 feet, N 75° 52' 00•
W, 390 feet, N 75° 12' 00" W 210 feet, andN 81° 53' 00" V!
l-58.20:feet to the place of beginning;
Containing a gross area of 53.98 acres, more or less, of
which 3.66 acres, more or less, is embraced within the
recorded right of way for San Antonio, Uvalde and Gulf
Railroad;
GUARANTY TITTLE AND TRUST COMPANY r ..Lig;:, CI
Deed Records, Volume 881, page 296, continued
Page # 3 '
TO HAVE AND TO HOLD the above described premises, together
with all rights, privileges, easements and appurtenances thereunto in
anywise belonging unto lessee for and during a term beginning on this
date and ending - on the 7th day of December, 2057, subject to and unless
,said term be sooner ended under the terms hereof:
I.
In consideration of the leasing aforesaid, lessee covenants
and agrees to pay to lessor in Nueces County, Texas, or at such
other -place or places in the United States as lessor, her heirs and
assigns, may hereafter designate in writing, rental as follows:
A. On or -before December, 1960, lessee shall pay to
lessor the amount of iighteen•Thousand Dollars ($18,000), and a
like amount of 418,000 .shall be paid by lessee to lessor on or before
the Sth day of December in each calendar year thereafter until and
including December 8, 1967.
B. beginning --on Lecember 8, 1968, and at intervals of ten
years thereafter during the remainder of the entire term of this
lease, the annual_rental•to be paid by lessee to lessor during each
year -of each ten-year period shall be determined as follows;,
•(1) 3y -the agreement of the parties hereto in writing tq a
mutually satisfactory rental; or, in lieu thereof, and if the parties
are unable to agree,
(2) By each party appointing an appraiser and the two so appointed
to appoint a third; the appraisers so named to forthwith appraise the
leased premises at its then fair market evaluation without taking into
account the value of any improvements erected thereon by lessee or any
increase.in the value of the - leased premises as the result of any such
improvements. In this connection the partychsiring the appointment of
appraisers. shall give.written notice to the other party stating that the
party giYing such notice desires to submit the value of the leased
premises to arbitration and naming its appraiser. The -other party:shal.
«;:; ,-W
S.
Deed Records, Volume 881, page 296, continued
Page # 4
then have five (5) days after its receipt of said notice within which
to notify in writing the party desiring arbitration the name of its
appraiser. If such other party shall fail within said five-day period
to name a wand appraiser, then the party who first served. notice may
on reasonable notice -to the other party apply to the person who is then_
:senior judge in length of service of the United States District Court
•
-for- the Southern -District of Texas, Corpus Christi Division, for the
_appointment of such second appriaser for and on behalf of the other
party, and in such case the appraiser appointed by such judge shall act
as if named .by' the other party. The two appraisers chosen as above
privided for shall within ten (10) days after the appointment of the
second appraiser choose the third appraiser and in the event of their
.failure -to do so within said ten days, either of the parties hereto
may in like manner on reasonable notice to the other party apply to
such judge for the appointment of a third appraiser and in such case the
appraiser appointed bysuch judge shall act as the third appraiser.
The appraisal board so constituted shall fix a reasonable time and place
for hearing, at which time each of the parties may submit such evidence
as it_may see fit. The action of a majority of the members of such board
shall govern and their decision in writing shall be final and binding
on.the parties hereto, and the annual rental for the decade following
the date of such appraisal shall_be such sum as is equal to six per cent
(6%) per annum of such appraised valuation of said premises, which amounts
shall be -payable -in -equal installments each year in advance on the
anniversary date of this lease as aforesaid but in no event shall the
annual rental at any time during the term of this lease ever be less than
318,000. per year. In, the event of any such appraisal hereunder each
party shall bear the cost of its own appraiser and the cost of the third
appraiser shall be divided equally between the parties.
Deed Records, Volume 881, page 296, continued Page // 5
II.
In the event any of the property. hereby leased is condemned
for the purpose of widening said Shell or Up River Road or is voluntarily
sold for that purpose, this lease shall_continue in effect on the remainder
-of the property under the same terms and conditions and without any
reduction in rent; provided, however, lessor agrees not to make any
foluntary conveyance fon any such purpose without having first obtained
_the -approval of lessee in writing. Further, lessor agrees that she
will not voluntarily grant any easement of any kind upon said property
without lessee's written consent thereto, but in the event any such
easement is granted pursuant to lessee's written consent or is condemned
by operation of law, then any permanent damage to the leased premises
shall be paid to lessor with any damage to buildings, other improvements
or the leasehold estate created by this lease to be paid to lessee. In
the evert of the condemnation of said property or any part hereof for any
purpose, lessee agrees that it will at its expense defend such condemnation
proceedings. -
Lessor reserves to herself oil, gas and other minerals under
the herein leased premises together with the right of ingress and egress;'
provided, however, that any oil, gas or mineral lease hereafter executed
.by Lessor covering said land shall 'be made subject expressly to the •
provisions of this lease and the rights of the Lessee hereunder, which
shall remain superior thereto in all respects, and no well shall be
drilled or .any other operation of -any kind undertaken under the terms
of any such oil, gas or mineral lease at any location on said land without
the prior written consent of lessee thereto, which consent, however,
shall not be unreasonably withheld.
III.
In the event that lessor, or any future owner of said premises,
shall receive a bona fide offer to purchase the premises during the
�`' GC 11i�111'" LTCTi ti tyY1LL;l:t ij 'i' CLL1tI;�•.1 ��-
Deed hecords, Volume $$1, page 296, continued Page #6
term of this lease, and such offer of purchase shall be satisfactory
to ,lessor,
to give to
-and on the
-notice sent
said offer,
or future owner, the lessor or future owner hereby agrees
lessee the privilege of purchasing the premises at the price
terms of the offer so made,said privilege to be given by a
to lessee by registered mail and if lessee elects to accept
lessee shall accept -it in writing and sign a suit able form
-of -contract of purchase within the period of -thirty (30) days after the
-_mailing_of such notice. Sould lessee fail to accept such offer to
purchase or sign such contract within the said -period, then and in that
event, the privilege of lessee herein to purchase at such price -and on
such terms shall become null and void and lessor or future owner shall be
at liberty to sell and premises to the other person, firm or corporation
- proposing to purchase the same; provided, however, that any -such sale
shall be subject to this lease and to all the terms, conditions and
.covenants hereof.
IV.
At any time prior to or upon the termination of this lease,
lessee shall have the right to remove any and all improvements placed
upon the property.by it or those.holdingunder it, provided lessee be
not at such time in default in any of the terms of this agreement.
V.
Lessee acknowledges that it has made a thorough inspection of -
the above described premises prior to the •execution of this lease
agreement and is familiar with the premises and acknowledges
to be suitable to the use or uses to which lessee intends to put -same.
VI.
Lessee further agrees and covenants to pay, in addition to all
the rentals above provided, as the same shall become due and payable and
before delinquency, all ad valorem taxes' and assessments of every Rind -
and character -which maybe lawfully levied or imposed by the State of •
said premises
Ci4A.ILA.l"_ l" 'rrSr.r. AND TRL; 5 ti..
Deed Records', Volume 881, page 296, Continued
Page # 7 •
Texas, County of Nueces, City of Corpus Christi, Corpus Christi
Independent School "istrict, and any other competent governmental authority,
upon said premises and any improvements thereon, and every other kind of
asseasrnent, whether special or general, against said property, at all
times during the term of this lease beginning with and including the
entire year 1960 and ending with and including the entire year 2057.
All taxes herein assumed to be paid -by lessee shall be paid by
_it annually and before they become delinquent and lessee agrees that it
will upon demand by lessor -at any time during the term of this lease
furnish lessor satsifactory proof that all such taxes and special -
assessments, if any, have been paid. Lessor agrees to render the leased
premises for taxation upon lessee's request, using the amount for
rendition purposes specified by lessee. .However, this shall not detract
from the -obligation of lessee to make payment of taxes on the basis of
final.assessment, subject only to lessee's right to contest provided
below.
If any taxes or special assessments hereafter assessed or levied
against the demised premises or.any of the improvements thereon are
illegal or excessive,_in the opinion of lessee, and as a consequence
thereof_lessee shall determine -to contest the collection by legal
proceedings or lessee desires to appear before any taxing agency or board
of equalization, then lessee is given authority to do so and in such
event lessee shall be deemed in full compliance with this lease provided.
any such taxes or assessments or any interest or penalty thereon shall
be paid within thirty (30) days after a final judicial determination of
the question with respect to whether such taxes or assessments are
illegal or excessive.
. Legal proceedings or other actions to challenge the payment or
amount of any such taxes or assessments shall be borne in their entirety
by lessee. •
Lessee shall provide and pay for all utility connections
��...e.._� t��RTr�tts�rnrpntiN-
sa.:.i•. _ _ . -..: �P=.aS ��s�x.,i ,. _ t:.`,,: -•-�- `_ _ � _ ., '..__ : +r ��_rs:a�f `s.+> �:.o- a�r._�h..•...-r
Deed records, Volume $$1, page 296, continued
Page # $
services, if any, including, but not confined to, electric power and
light, gas, water and sewage. .
VII.
Lessee shall' save lessor harmless and free -from any loss,
damage or expense arising out of any accident or other occurrences,
causing injury to any person or property and due directly or indirectly
,to the use or occupancy of said premises by lessee or other person
holding under it, and shall save lessor, her heirs and assigns, free from
any -loss, damage or expense arising- out of failure of lessee or other
person holding under it to comply with -the requirements and provisions
of this lease.
VIII.)
It is understood and agreed by and between lessor and lessee
that lessee -shall have the right, at its option and will, to freely _
assign or sublease the whole or any portion of the leased premises,•and
it shall be_unnecessary to obtain- the written consent of lessor thereto.
.In like manner and without the consent of lessor, the leasehold estate
created by this lease may be made subject to any deed of trust, mortgage,
chattel mortgage or other lien created by -lessee for the purpose of
securing any indebtedness incurred by it for or in connection withthe •
erection, construction, alteration or maintenance of any or all improve-
_ments on the leased premises.
SX.
The parties hereto agree that in the event default shall be
made by lessee in the payment of any rent herein provided for or the
performance of any of the covenants or conditions provided herein,or
shoula lessee be declared bankrupt according to
assignment be made of the said property for the
lessor shall ive lessee written notice of such
does not correct such' default within thirty (30)
law, or should any
benefit of creditors, the
default and if lessee
days after receipt
c 77G�.11i�1.\
•
Deed Records', Volume $21, page 296, continued
Page # 9
of such written notice, lessor may, at lessor's option, declare this
lease to be canceled and terminated and may enter upon said premises and •
take possession thereof and relet said premises, in which event lessee
shall be liable for any loss of rent occasioned by the default of lessee'
or lessor may sue'for specific performance of this agreement.
Neither this lease nor any interest therein, nor any estate
created hereby shall pass to any trustee in bankruptcy,_or reel ver,
or any other assignee for the benefit of creditors.
.xi.
It is -further covenanted and agreed that no waiver by lessor
of any breach of any of the convenants herein contained to be performed
by lessee shall be construed as a waiver of any succeeding breach of the
Same Covenant or agreement.
XII.
Any holding over after the termination of this lease shall
not renew and -extend the same, but during such hold -over period, lessee
shall merely be a tenant at will of lessor, her heirs and assigns, and
lessee_agrees to pay to lessor°as rental for said premises and as
liquidated damages for such holding over period twice the amount of the
rental herein provided for and set for the last ten-year term of this
-lease for every day that lessee_may hold possession after the lease is
terminated.
xIII.
Lessor covenants and agrees that she is the owner of the entire
fee simple estate in and to the leased premises and that she, her heirs,
administrators and personal representatives, will warrant and forever
defend title to the leasehold estate hereinabove described as being created
by this instrument in accordance with its terms and provisions unto
lessee, its successors and assigns, against the lawful claims and demands
of every person whomsoever claiming or to claim said land or any part
9 F;
•Deed Records, Volume 881, page 296, continued Page 17 10
thereof.
xIv.
Subject to the limitations hereinabove provided,. this lease
shall extend to the heirs, assigns, successors, and successive heirs,
assigns and successors of the respective parties hereto, and all of
the__conditions, covenants and_limitations of this lease shall be -and
-hereby-agreed to be covenants running with the land.
_xv.
Upon the death of Mary Dunn Meaney, Corpus Christi.btate
National Bank at Corpus Christi, Texas, shall be come the depository
for all_rentals required to be paid hereunder, which bank and its -
successors shall be the agent of the heirs, successors or assigns of
lessor and shall continue as the depository for all rentals payable __-
hereunder regardless of changes in ownership of
hereunder either by conveyances or by the death
are
said land or the rentals
or incapacity of any
heir, heirs, successor, successors, assign or assigns of lessor. The
payment of rental may be made by the check or draft of lessee delivered
to said bank on or before such date -of payment and if such bank (or
any successor bank) should fail, liquidate or be succeeded by another
—bank or for any reason fail or refuse to accept rental on orbefore
such date of payment, lessee shall not be held in default for failure
to make such payment until thirty (30) days after receipt by it of a
,proper recordable instrument naming another bank as agent to'receive
such payment in the same manner as next provided for change of depository.
Said depository may be changed from time to time to another bank to
receive the payment of all rentals provided to be paid hereunder upon
written notice -to lessee from the heirs, successors or assigns of
lessor o:•.ning the majority interest in the rentals accruing hereunder
at the time such notice is given, and in•the same manner, the owners
of such majority interest shall also have the right to, and shall, '
'2` -64,4,-d=.t?n.
Deed Recordsi Volume 881, page 296, continued Page # 11
designate one person to act for them in the naming of the appraiser for
lessor to determine the value of the leased premises for rental purposes .
and to give and to receive all notices hereunder, and all persons claiming
any rights under lessor hereunder shall be bound thereby and lessee. shall
have the right to rely thereon.
_..IN WITNESS ':HEREOF, the parties hereto have executed this
instrument in duplicate originals at Corpus Christi, Texas, this 25th
day of February ,1960.
Mary Dunn meaney
(Mary Dunn Meaney)
- GULF TERMINAL GRAIN COMPANY
Attest: Hc,vden W. Head By '.alter A. Theis
Secretary (Seal) President
THE STATE OF TEXAS - €
COUNTY OF NUECES
BEFORE ME, the undersigned authority, on this day personally
appeared Mary Dunn Meaney, a widow, known to me to be the person whose
nave is subscribed to the foregoing instrument and she acknowledged to
me that she executed the same for the purposes and consideration therein
expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 25th day of.February
1960..
(L.S.)
Mary E. Lake
Mary E. Lake
Notary Public in and for
Nueces County, Texas
DDARAN.I'i 'ITLi; AND TIILIQ (C»fPr1N7;xr
Deed Records, Volume 881, page 296, continued' Page # 12
THE STATE OF TEXAS
COUNTY OF NUECES
BEFORE ME, -the undersigned authority, on this day personally
appeared .alter A. Theis, President of Gulf Terminal Grain Company, a
corporation, known to me to be the person and officer whose name is sub-
scribed to the foregoing instrument and he acknowledged that he executed
the same as the act and deed of such corporation for the purposes and
consideration therein expressed and in the- capacity therein stated.
GIVtN UNLE3 MY HAND AND SEAL OF OFFICE this 25th day of
February,- 1960.
(L,s.)
Bert Cross
Bert Cross
Notary Public in and for
Nueces County, Texas
No. 551239
MARY DUNN MEANEY AMENDMENT TO LEASE
Dated: March 29, 1960
TO AND WITH Filed: April 1, 1960 •
Recorded: Volume 884 Page 637
GULF TERMINAL GRAIN COMPANY Deed Records,
By Walter A. Theis, President Nueces County, Texas
THE STATE OF TEXAS
COUNTY OF NUECES
WHEREAS, on February 25, 1960, Mary Dunn Meaney, as Lessor,
rexecuted_and delivered to Gulf Terminal Grain Company, a Texas corporation,
_:as Lessee, a.certain lease recorded in Volume 881, page 296, et seq., Deed
-Records, Nieces County, Texas, embracing 53.98 acres of land in Nueces
County, Texas, more particularly described in said lease by metes and
bounds, to which and'the record thereof reference is here siade for all
-purposes,_.including- further and better description of said la nd; and
WHEREAS, a portion of the land covered by said lease adjoins the -
ship channel_of Nueces County Navigation District No. 1, it -being part of
T,48 acres conveyed by said Navigation District to Mary Dunn Meaney by
instrument dated June 29, 1957, recorded in Volume 780, page 503 et seq.,
of the Deed Records of Nueces County, Texas, to which and the record thereof
reference is here made for all purposes, which instrument contains, among
other things, the following provisions
"The 7.48 -acre tract above described -contains all of the land
lying -between the -said upland tract of Mary Dunn 'Meaney and the established
South bulkhead line of the channel as said channel is now constructed,
including a twenty -foot (20 ft) strip of land south of and along the said
South bulkhead line and out of the tract described as Parcel No. One and
awarded to the District by judgment of the County Court of Nueces County,
Texas, entered July 24, 1948, in Cause No. 3693, which judgment is recorded
in Vol. 455 at p. 191, Deed Records of Nueces County, Texas. In the event
the South bulkhead line of the said channel, or any further extension
therec , should be established in the future in a different location, then
the South bulkhead line of said channel as so established shall become ipso
facto the Northerly'boundary line of the land herein conveyed to Mary Dunn
GUAR ,,NTLl'I LJ :gin TflU �C'!]lILa11]'
r-,
Deed Records, volume 884, page 637, continued
Page #.2
Meaney, it being the intention of this instrument to vest in Mary Dunn
Meaney, her heirs and assigns, fee simple title to the surface estate in
and to any and all lands between the South bulkhead line of said channel,
as the -same or any further extension thereof may be constructed or altered,
and-the_above described upland tract now oened by Mary Dunn Meaney."
and
WHEREAS, the parties desire -to amend said lease so that the
-provisions thereof will conform to the quoted provisions of the said
hereinabove set forth:
conveyance from Nueces County Navigation District No. 1 to Mary Dunn Meaney
NOW, THEREFORE, KNOW ALL MEN_BY THESE PRESENTS, that for and im
consideration of the premises and the sum of One Dollar (.1) paid to said
lessor by said lessee, the receipt of which. is acknowledged, the parties
hereby agree that said lease shall be altered, amended and modified by adding
thereto and inserting therein at a point immediately succeeding --the description
of the premises covered by said lease the following paragraph,
to -wit;
RA portion of the land covered by this lease lies between the
upland tract of lessor and the established south bulkhead line of the ship
channel of Nueces County Navigation District No. 1 as said channel is now
constructed, including a twenty foot (20 ft) strip of land south of and
along the said south bulkhead line and out of the tract described as Parcel -
No. -One .and awarded to the District by judgment of the County Court of
Nueces County, Texas, entered July 24; 1948, in Cause No. 36993, which
judgment is recorded in Vol. 455, at p. 191, Deed Records of Nueces County,
Texas. En the event the south bulkhead line of the said channel, or any
further extension thereof, should be established in the future in a different
location, then the south bulkhead line of said channel as so established
shall become ipso facto the northerly boundary of the.land leased hereby,
it being the intention•of the parties hereto to include within this lease,
as well as that portion of the leased premises which is upland, all lands;<n'w.',
GUARANTY TIME AND Tl:us•r Cfl II ..
Deed Records,' Volume 884, page 637, continued
Page #.3
lying south of the south bulkhead line of said channel, as the
any further extension thereof may be constructed
an extension, if necessary, of the east and west
leased- premises_ in a northerly direction to said
As so amended, said lease shall remain
and for
lessee-,
same or
or altered, and between
boundary lines of the
south bulkhead line."
in full force and effect,
the same consideration, lessor hereby leases and lets -said land to
its -successors and assigns, in accordance with -the terms_and
provisions of said original lease as amended by this instrument:
IN -WITNESS V,HEREOF, the -parties hereto_haveexecuted this
instrument in duplicate originals at Corpus Christi, Texas, this 29th day of
March, 1960.
ATTEST: Hayden W. Head
Secretary
(Seal)
THE STATE OF TEXAS
COUNTY OF NUECES
Mary Dunn Meaney-
( Mary Dunn Meaney )
GULF TERMINAL GRAIN COMPANY
By Walter A. Theis,
President
BEFORE'ME, the undersigned authority, on this day personally
appeared Mary Dunn Meaney, a widow, known to me to be the person Whose name
is -subscribed to the. foregoing instrument, and she acknowledged to me that
she executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND -AND SEAL OF OFFICE this 31st day of March,
1960.
U.S.)
Mary E. Lake
Notary Public in and for
Nueces County, Texas
"£ r a9`i:
r' •:d*.iK'" :�t'er' •+...:
Deed Records, Volume 884, page 637, continued
ThE STATE OF TEXAS
COUNTY OF NUECES I
BEFORE ME, the undersigned
appearedWalterA. Theis, President of
corporation, known to me to
subscribed -to the foregoing
_he -executed the same as the
Page # .4
authority, on this day personally
Gulf Terminal Grain Company, a
be the person and officer whose name is
instrument, and he acknowledged to me that
act and deed of such corporation
for the
purpoaes_and considerationthereinexpressed_and in the capacity therein
stated.
1960,
(L.S.)
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 29th day of March,
Mary E. Lake
Notary Public in and for
Nueces County, Texas
(Mary- E. Lake
Notary Public in and for
Nueces County, Texas)
That the foregoing ordinance was read fo
second reading on this the )9 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 was read fo
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
fir t time a d passed to its
.�� , 19, by the
nd timeapdby the passedtoiits
9
That the foregoing ordinance �+as read for
on this the 1' day of ( p„ ; !L. ,
Luther Jones "1_
Edward L. Sample
Dr. Jack Best
Jack-K.'Dumphy
Leopoldo Luna_
Betty N. Turner
Cliff Zarsky
PASSED AND APPROVED, this the b day of
ATTEST:
the third time and passed finally
19 , by the following vote:
nnCLl.<<2
(2k„1.42.
a(iJa
APPROV D:
141 DAY OF , 19f/ :
J. BRUCE AYCOCK, CITY ATTORNEY
By
AssisAttorn
MAY
, 19 is .
THE ` TY OF CORPUS CHRISTI, TEXAS
MOTION
.moved and
seconded this motiontoinclude in the ordinance authorizing the City Manager
to execute an industrial district agreement with Producers Grain Corporation
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 March 18, 1981,
and on second reading on March 25, 1981, the following:
1. Adding the required Exhibit "A" describing the lands to be
included within the industrial district.
PASSED — —8
j
MOTION TO AMEND
moved and
seconded this motion to am the ordinance authorizing the City Manager to exe-
cute an industrial district agreement with Producers Grain Corporatior
for a term of seven (7) years commencing
January 1, 1981, passed ontfirst reading by the City Council of the City of Corpus
Christi on March 18, 1981.
1. Amending the sentence comprising the second paragraph of Article I
of Exhibit 1 to hereafter read as follows:
"During the term hereof City shall have no obligation to
extend to said land any City services except fire protection
in the event Company makes additional payments to City under
Article III(d) hereof, and such other City services as are
being provided to and paid for by Company on the date hereof."
2. Amending the first sentence of Article III(c) of Exhibit 1 to
hereafter read as follows:
__"With respect to any new improvements or facilities, which
are hereby defined as those being completed after January 1,
1974, Company shall pay to City five percent (5%) rather than
"the percentage of the amount of ad valorem taxes as calculated
in paragraph (b) above for each year of use, i.e., 10% the
second year in use, 15% the third year in use, etc."
3. Amending the sentence comprising Article XII of Exhibit I to
hereafter read as follows:
"If City enters into an agreement with any other landowner,
within the extraterritorial jurisdiction of the City, engaged
in a similar industry, as classified by Major Group according
to the Standard Industrial Classification Manual(1) or enters
into a renewal of any existing industrial district agreement
with an industry of the same classification which contains in
lieu of tax payment terms and provisions more favorable to such
landowner than those in this Agreement, Company and its assigns
shall have the right to either terminate this Agreement, or
amend this Agreement to contain such more favorable in lieu
of tax payment terms and provisions."
4. Amending the first paragraph of Article I of Exhibit 1 to hereafter
read as follows:
"City covenants and agrees that during the term of this
Agreement; and subject to the terms and provisions hereof,
said land shall retain its extraterritorial status as an'•
industrial district and shall continue to retain such status
until and unless the same is changed pursuant to the terms
of this Agreement. Except as herein provided City further
covenants and -agrees that said land shall be immune from
annexation. Whenever it may be necessary, in the opinion
of the City Council, to annex land not immune from annexa-
tion by an effective industrial district- agreement pursuant
to Ordinance 15898, and in order -to carry out suchannexation
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
both." _
5. Amending the first sentence of Article VI(c) of Exhibit 1 to
hereafter read as follows:
"In the event City breaches this Agreement by annexing
or attempting to pass an ordinance annexing any of the said
land, except as provided in Article I of this Agreement,
Company shall be entitled to enjoin City from the date of
its breach for the balance of the term of this Agreement,
from enforcing any annexation ordinance adopted in violation
of this Agreement and from taking any further action in vio-
lation of this Agreement."
6. Amending Article III(f) of Exhibit 1 to hereafter read as follows:
"(f) Minimum Payments. For any Company which qualifies as
an industry under Ordinance No. 15898 and which has less than
two million dollars (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 / �, /9,0/
-4-
Y