HomeMy WebLinkAbout16351 ORD - 07/01/1981AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL
DISTRICT AGREEMENT WITH Valero Hydrocarbons
Company FOR A TERM OF SEVEN (7)
YEARS COMMENCING JANUARY 1, 1981; DESIGNATING AN AREA
TO BE KNOWN AS "CORPUS CHRISTI INDUSTRIAL DISTRICT NO.
20 "; 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 Valero Hydrocarbons
Company for a term of seven (7) years commencing
January 1, 1981; designating an area to be known as "Corpus Christi Industrial
District No_20"; 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.
MICROBLMEIA.
:135i ►SEP 27 1914
f", HYDROCARBONS COMPANY
Post Office Box 500 • San Antonio, Texas 78292 • Telephone (512) 299.2000
February 24, 1981
City of Corpus Christi
ATTN: R. Marvin Townsend, City Manager
P. 0. Box 9277
Corpus Christi, TX 78408
Dear Mr. Townsend:
The Valero Hydrocarbons Company intends to file an Industrial
District Agreement for the properties commonly known as the
Corpus Christi Gas Plant and Shoup Plant.
Sincerely,
%„ ,..,��
Ron Meadows
Assistant Secretary
RM:tt
v� ,1
FEB 13,47 `ate
City Pnanagsr &'
/!,
INDUSTRIAL DISTRICT AGREEMENT
THE STATE OF TEXAS k
COUNTY OF NUECES
CITY OF CORPUS CHRISTI i
4-2-c"
This Agreement made and entered into by and between the CITY OF CORPUS
CHRISTI, TEXAS, a municipal corporation of Nuec:as Cruity, Texas, 'i:�reinafter
called "CITY", and
VALERO HYDROCARBONS COMPANY
a DELAWARE Corporation;
corporation, and
a DELAWARE
,a
(Lessar)
V
VALERO HYDROCARBONS COMAPNY
Ump,'cv,-;hents C':n<_r)
cor;:cration, re;n:.fLar Lollec.tiv 'y called "COMPANY",
WITNESSETH:
WHEREAS, it is the establist,ed 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 herc:+y reaffirmed and adopted by this
City Council as being in the best interest the City and its citizens; and
WHEREAS, Company is the owner or ies:e of land or owner of improve-'
ments on land within the extraterritorial ji'risdietion'of-the City of Corpus -
Christi, which land shall, upon executin of this agreement by the City, be
known as "Corpus Christi Industrial District No.
and which land is more particularly described in Exhibit "A" attached hereto,
and incorporated Herein for'all: purposes, henein called "said land" and upon
which Company has either constructed (and/or cont,•niplate:s) 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 extraterritori,nl jurisdiction and
designating areas located in its extraterritorial juria6iction 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
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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, 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
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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 asif 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.
- 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
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 minion 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 wouTd 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
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/
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•dmount'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
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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
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/
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 remainin force whether Company sells, assigns, or in any other
manner disposes of, either voluntarily or by.„operations of•lat•,, all or any part
of said land, and the agreements herein contained shall be held to be covenants
-8- .7
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 26 day of June , 19 81 .
ATTEST:
m NAi(]p�<f>pV f/✓v
S retary RONALD A. MEADOWS
ATTEST:
Secretary
ATTEST:
v ao �M •�O G 7000 ✓'�/
Secretar;�-'�� RONSILD A. MEADOWS
ATTEST:,,,./'•\';1'
City Secretary
By
VALERO HYDROCARBONS COMPANY (Company)
(Landowner)
—PRESIDE
(Company)
• (Lessee)
By
APPROVED: DAY OF , 14
J. BRUCE AYCOCK, CITY ATTORNEY
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.
VALERO HYDROCARBONS COMPANY
(Improvement Owner)
CITY OF CORPUS CHRISTI
By
R. Marvin Townsend, City Manager
4-2-81
INDUSTRIAL DISTRICT AGREEMENT
THE STATE OF TEXAS Q
COUNTY OF NUECES
CITY OF CORPUS CHRISTI I
This Agreement made and entered into by and between the CITY OF CORPUS
CHRISTI, TEXAS, a municipal corporation of Nuec•as Connty, Texas, i:,-einafter
called "CITY", and BRYANT FICKEN AND WELDON L. WEBER, etal
a zr,,,ApeA; VALERO HYDROCARBONS COMPANY
, a DELAWARE
corporation, and VALERO HYDROCARBONS COMPANY
(-712,V'c:V,"7i'-.RtB C�••r •::
a DELAWARE cor;cration, ',._:•e;neft ..o(i:ctiv::y :ailed "COMPANY",
WITNESSFTii:
WHEREAS, it is' the established policy of the City Cot•:tcii of the City
of Corpus Christi, Texas, to adopt reasonable mc3sures 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 herr.* r::sffirmed and adopted by this
City Council as being in the best interest of the City and its citizens; and
' WHEREAS, Company is the owner ov les: -.2e of land or owner of improve-•
ments on land within the extraterritorial jurisdiction of.the City of Corpus,.
Christi, which land shall, u;•on executit.n of this agreementby the City, be
known as "Corpus Christi Industrial District No.c).0-8
and which land is more particularly descnibd in Exhibit "A" attached hereto,
and incorporated Herein for'all: purposes, Herein called "said land" and upon
which Company has either constructed (and/or cordwiplatc:s) the construction or
expansion of improvements; and
WHEREAS, pursuant to said policy and provisions of Article 970a,
Revised Civil Statutes of Texas, known as '.he 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 jt:ri=.:.;:r;.ion as industrial
districts, herein collectively called "Cist-i:Ls" 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:
r 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
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
-2-
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, 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-
mr.mt, Co:epany 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.
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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 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 rof
property. Any change in such ratio used by City shall be reflected in any
subsequent computations hereunder. This Agreement and the method of determining
and fixing the amount of in lieu of taxes payments hereunder shall be subject to
all provisions of law relating to determinations of market value and taxation,
including, but not limited to, laws relating to rendition, assessment, equaliza-
tion and appeal.
V
In the event Company elects to protest the valuation set on any of
its properties by City for any year or years during the term hereof, it is
agreed that nothing in this Agreement shall preclude such protest and Company
shall have the right to take all legal steps desired by it to reduce the same
as if such property were located within the City. Notwithstanding any such
protest by Company, Company agrees to pay to City an initial in lieu of tax
payment on or before the date therefor hereinabove provided, at least the
amount of the payment in• lieu of taxes on said land and improvements which
would be due by Company to City hereunder 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 toinclude 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 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 -
cents 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 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 26 .day of .TUNE , 19 81 .
ATTEST: l'
� rt
r•� . cc . (Company)
Landowner
Secretary
ATTEST:
Secretary
ATTEST:
=3-4)000 yCS
t
Secretary; ;, �,OI•iA`D A. MEADOWS
City Secretary
(Lessee)
(Company)
By
APPROVED: DAY OF , 19
J. BRUCE AYCOCK, CITY ATTORNEY
VALERO HYDROCARBONS COMPANY
(Improvement Owner)
CITY OF CORPUS CHRISTI
By
R. Marvin Townsend, City Manager
By
Assistant City Attorney
(1) Standard Industrial Classification Manual. .(Executive Office of the 6esid:ent -
Office of agc.:ent r.rd °udgpt, S`afisYic,a Policy Ui•.ision, 1?72). 659 ?n.
That the foregoing ordinance was read for the first time and passed to its
second reading on this the day of - , 19 , by the
following vote:
Luther Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
That the foregoing'ordinance was read for the second time and passed to its
third reading on this the day of , 19 , by the
following vote:
Luther Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff-Zarsky
That the foregoing ordinance
on this the ) ,f- day of
read for the thrd time and passed finally
, 19g/ , by the following vote:
Luther Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
PASSED AND APPROVED, this the /2. day of
ATTEST:
APPROVED:
DAY OF
, 19_
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant City Attorney
, 19 I/ .
MAYOR / V
THE CITY OF CORPUS CHRISTI, TEXAS
16351
That the foregoing ordinance was read for firs time angi passed to its
second reading on this the // day of , 194/ , by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K. Dumphy
Leopoldo Luna
Betty N. Turner
Cliff Zarsky
That the foregoing ordinance was read for oe sec.nd time and passed to its
third reading on this the .fir day of
following vote:
Luther Jones
. Edward L. Sample
Dr. Jack Best
Jack K..Dumphy
Leopoldo Luna
Betty N. Turner
Cliff Zarsky
That the fo e of g ordina as read for the ird time and passed finally
on this the day of , 19 , by he following vote:
Luthe on
Edward L.
, 19 5)/ , by the
Dr. Jack Best
Jack K.'Dumphy
Leopoldo Luna.
Betty N. Turn
Cliff Z. ky
PASSED AND APPROVED, this the day of
ATTEST:
City Secretary
APPRO ED:
/154.4.DAY OF /1M4,- , 191/
J. BRUCE AYCOCK, CITY ATTORNEY
, 19
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
MOTION TO AMEND
moved and
•
seconded this motion to 'amend the Ordinance authorizing the Cify Manager
to execute an industrial district agreement with Valero Hydrnrarhnns
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 March 18 „ 1981 and on second
reading on March 25 , 1981, the following:
PASSED:
1. Amending Exhibit 1 of the Ordinance to add Exhibit "A"
(Industrial District Land Description).
.•
d
c- a
MOTION TO AMEND
moved and 68
seconded this motion the ordinance authorizing the City Manager to exe-
cute an industrial district agreement with Valero Hydrocarbons Company
fora 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.
1. Amending the sentence comprising the second paragraph of Article I
of Exhibit 1 to hereafter read as follows:
"During the term hereof City shall have no obligation to
extend to said land any City services except fire protection
in the event Company makes additional payments to City under
Article III(d) hereof, and such other City services as are -
being provided to and paid for by Company on the date hereof."
2. Amending the first sentence of Article IIIc) of Exhibit 1 to
hereafter -read as follows:
.,"With respect to any new improvements or facilities, which
are hereby defined as those being completed after January 1,
1974, Company shall pay to City five percent (5%) rather than
the percentage of the amount of ad valorem taxes as calculated
in paragraph (b) above for each year of use, i.e., 10% the
second year in use, 15% the third year in use, etc."
3. Amending the sentence comprising Article XII of Exhibit I to
hereafter read as follows:
"If City enters into an agreement with any other landowner,
within the extraterritorial jurisdiction of the City, engaged
in a similar industry, as classified by Major Group according
to the Standard Industrial Classification Manual(1) or enters
into a renewal of any existing industrial district agreement
with an industry of the same classification which contains in
lieu of tax payment terms and provisions more favorable to such
landowner than those in this Agreement, Company and its assigns
shall have -the right to either terminate this Agreement, or
amend this Agreement to contain such more favorable in lieu
of tax payment terms and provisions."
4. Amending the first paragraph of Article I of Exhibit 1 to hereafter
read as follows:
"City covenants and agrees that during the term of this
Agreement; and subject to the terms and provisions hereof,
said land shall retain its extraterritorial status as an
industrial district and shall continue to retain such status
until and unless the same is changed pursuant to the terms
of this Agreement. Except as herein provided City further
covenants and agrees that said land shall be immune from
annexation. Whenever it may be necessary, in the opinion
of the -City Council, to annex land not immune from annexa-
tion by an effective industrial district agreement pursuant
to Ordinance 15898, and in order to carry out such annexation
it is necessary, in the opinion of the City Council, to annex
a strip or corridor of land contained within Exhibit A,'Company
shall designate, within sixty (60) days after the City sends
Company written request to provide such strip or corridor, a --
strip or'corridor (hereinafter called "annexation corridor")
in a width and length legally sufficient to accomplish a con-
tractual annexation of the annexation corridor pursuant to
Article I, Section 2 of the City Charter of Corpus Christi and
to enable the City to annex the aforementioned land not immune
from annexation. 'Said annexation corridor shall thereafter be
included within the corporate boundaries of the City of Corpus
Christi, and shall become a part thereof, subject to the terms
of Article I, Section 2 of the City Charter of Corpus Christi,
as amended. In the event that Company fails or refuses to make
such designation legally sufficient to accomplish such purpose,
the City may, at its option, either (1) terminate this industrial
district agreement and any guarantee of immunity from annexation
shall thereafter be void, or (2) seek a mandatory injunction from
any court of competent jurisdiction to compel Company to make
such designation and perform such other acts as may be necessary
for the City to annex said annexation corridor pursuant to this
agreement and to Article I, Section 2 of the City Charter, or
both."
-2-
5. Amending the first sentence of Article VI(c) of Exhibit 1 to
hereafter read as follows:
"In the event City -breaches this Agreement by annexing
or attempting to pass an ordinance annexing any of the said
land, except as provided in Article I of this Agreement,
Company shall be entitled to enjoin City from the date of
its breach for the balance of the term of this Agreement,
,t
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 // l9SI
- 4 -