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HomeMy WebLinkAbout16543 ORD - 09/23/1981• AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH Weatherby Engineering Company FOR A TERM OF SEVEN (7) YEARS COMMENCING JANUARY 1, 1981; DESIGNATING AN AREA TO BE KNOWN AS "CORPUS CHRISTI INDUSTRIAL DISTRICT NO. 25 "; 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 Weatherby Engineering Company for a term of seven (7) years commencing January 1, 1981; designating an area to be known as "Corpus Christi Industrial District No.25"; 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. 16543 SEP 271984 MICROFILMED Property Tax Service Company 4455 South Padre Island Drive Commerce One Swte 51 Corpus Christi, Texas 78411 5121854 4452 Subsidiary of Alexander a Alexander Inc. FEBRUARY 26, 1981 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL 302 SOUTH SHORELINE f CORPUS CHRISTI, TEXAS GENTLEMEN: YOU WILL FIND ATTACHED LETTERS OF AGREEMENT TO ENTER INTO A CONTRACT WITH THE CORPUS CHRISTI INDUSTRIAL DISTRICT FOR THE COMPANIES SHOWN BELOW: CENTEX CEMENT CORPORATION NL BAROID rWEATHERBY-ENGINELNING--CSMPANY.. .. WE WOULD APPRECIATE YOUR ACKNOWLEDGING RECEIPT OF THESE LETTERS. VERY TRULY YOURS, W. DAN WADE PROPERTY TAX SERVICE COMPANY WDW:DMH ATTACHMENT LETTERS OF INTENT FOR THE ABOVE COMPANIES HAS BEEN RECEIVED: BY BATE MED I nls Nte a?/•0a,Day ol_.__ _ _ ,29-.81.. 3: 4r 4r r.APn. Secrnt:Iry Cllr Of Cnrffrr4 l,hri.t Dallas Detroit Tulsa Atlanta Houston San Antonio New York Los Angeles Minneapolis Seattle February 26, 1981 LETTER OF INTENT TO ENTER INTO A CONTRACT WITH CORPUS CHRISTI INDUSTRIAL DISTRICT City Council, Corpus Christi CITY OF CORPUS CHRISTI In accordance with the information available to us, we are required to express our intent concerning our agreement to enter into a contract to become a part of the Corpus Christi Industrial District. We wish to advise that while it is our present intention to sign the contract and become a part of the Industrial District, we may alter that intention and decide not to become part of the District when all of the terms and conditions of the agree- ment and the other ramifications of joining are ascertained. If we understand our prerogatives, no contract need be submitted by us until July 1, 1981. Please be assured of our desire and intention to be good corporate tax citizens of Corpus Christi and at this point do feel we will become a part of the Industrial District. However, we must withhold our actual commitment to do so until all facts are developed. Ihts Ini o?fr.. DaV O1-- ------- ,I9 .... 0 S�rotnry ,itvgig,Cbrrea_—. BY C.B. BRADLEY, VICE—P CONSTRUCTION 3: .s.‘112....4,0%.. 4-2-81 ' INDUSTRIAL DISTRICT AGREEMENT THE STATE OF TEXAS j COUNTY OF NUECES I CITY OF CORPUS CHRISTI I 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 a (Landowner) corporation, I/lJewn+eeziy corporation, and .a i Etas E4e..0.+ mgt.' 4 Cv Co. (Lessee) LJE kruea l Y ti.„ IG, wl a eL ic, Co • (Improvements Owner) corporation, 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. 2. and which land is more particularly described in Exhibit "A" attached hereto, and incorporated herein for all purposes, herein called "said land" and upon which Company has either constructed (and/or contemplates) the construction or expansion of improvements; and WHEREAS, pursuant to said policy and provisions of Article 970a, Revised Civil Statutes of Texas, known as the Municipal Annexation Act, City has enacted Ordinance No. 15898 indicating its willingness, within 90 days after final passage of said ordinance, to enter into industrial district agree- ments with industries located within its extraterritorial jurisdiction and designating areas located in its extraterritorial jurisdiction as industrial districts, herein collectively called "Districts" and Ordinance No. 15949 designating land areas as Corpus Christi Industrial Development Area No. 1 and Corpus Christi Industrial Development Area No. 2; and WHEREAS, City desires to encourage the updating, expansion and growth of industries within said Districts and for such purpose desires to enter into this Agreement with Company: NOW, THEREFORE, in consideration of the premises, the mutual agreements of the parties herein contained and pursuant to the authority granted under the Municipal Annexation Act and the Ordinance of City referred to above, City and Company hereby agree as follows: City covenants and agrees that during the term of this Agreement, and subject to the terms and provisions hereof, said land shall retain its extra- territorial status as an industrial district and shall continue to retain such status until and unless the same is changed pursuant to the terms of this Agree- ment. Except as herein provided City further covenants and agrees that said land shall be immune from annexation. - During the term hereof City shall have no obligation to extend to said land any City services except fire protection in the event Company makes additional payments to City under Article III(d) hereof, and such other City services as are being provided to and paid for by Company on the date hereof. Further, City and Company agree that during the term hereof, City shall not require with respect to said land compliance with its rules or regu- lations (a) governing zoning and platting of said land or any additions thereto outside the City limits; provided, however, Company further agrees that it will in -no way divide said land or additions thereto without complying with State law and City ordinances governing subdivision of land; (b) prescribing any building, electrical, plumbing or inspection code or codes; or (c) prescribing any rules governing the method of operations of Company's business, except as --. to those regulations relating to the delivery of utility services and industrial waste disposal through City owned facilities. II The term of this Agreement shall begin on the first day of January, 1981, and shall continue until December 31, 1987, unless extended for additional period or periods of time upon m!tual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before March 31 of the final calendar year of the term hereof, then the immunity from annexation granted herein shall terminate on that date, but all other terms of this Agreement shall remain in effect for the remainder of the term; provided, however, the effective date and time of such annexation shall be no earlier than midnight of December 31 of such final year of the term. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns. In this connection, City recognizes that industrial district agreements of this kind are conducive to the development of existing and future industry and business and are to the best interest of all citizens of City. Accordingly, future City Councils are hereby encouraged, but are not obligated, to enter into industrial district agreements andtoextend existing industrial-district agreements. 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 (1001)of the-amount of ad valorem taxes based upon the market value of said land which would otherwise be payable to City by Company if said land were situated within the city limits of City. With respect to any new land acquired by Company after January 1, 1981, located in the extraterritorial.- jurisdiction of City, and the use of which relates directly to the primary use of the parent tract, such new land shall be included in Company's land known as said land, and shall be considered in calculating the in lieu of tax payment on said land as of January 1 of the first year following the date which such new land is acquired by Company. In addition, Company shall provide City a revised Exhibit "A" which includes a complete description of such new land., (b) An amount in lieu of taxes on improvements (excluding personal property) located on said land equal to fifty percent (50%) of the amount of ad valorem taxes which would otherwise be payable to City by Company if said improvements were situated on land within the city limits of City. On or before March 31 of each year during the term of this Agree- ment, Company shall provide to City's Tax Assessor-Collector a written statement 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 10% the second year in use, 15% the third year in use, this provision shall never exceed fifty percent (50%). for purposes of this new improvements payment shall be the first day of January next following the date which each year of use, i.e., etc. Payments under The first year of use deemed to commence on 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 (h) 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 said land, or forming an integral part of on said land, owned by Company inside the land and all other lands contiguous to Company's primary operation located 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. -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 million dollars ($1,000,000.00) of improvements which would be payable to City if said improvements were situated within the city limits, regardless of whether one million dollars ($1,000,000.00) of improve- ments exist on said land, or (ii) the amount of ad valorem taxes on land, improvements and personal property on said land which would be payable to City if said land, improvements and personal property were situated within the city limits of City, plus an amount in lieu of City sales tax equal to that which would be remitted to the State Comptroller annually by Company, and which would later be remitted to City by the State Comptroller, if said land were situated within the city limits. Iv Company agrees to pay to City on or before December 31 of each year during the term hereof all payments in lieu of taxes provided for hereunder without discount for early payment. The present ratio of ad valorem tax assess- ment used by City is one hundred percent (100%) of the fair market value of property. Any change in such ratio used by City shall be reflected in any. -5- subsequent computations hereunder. This Agreement and the method of determining and fixing the amount of in lieu of taxes payments hereunder shall be subject to all provisions of law relating to determinations of market value and taxation, including, but not limited to, laws relating to rendition, assessment, equaliza- tion and appeal. V In the event Company elects to protest the valuation set on any of its properties by City for any year or years during the term hereof, it is agreed that nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same as if such property were located within the City. Notwithstanding any such protest by Company, Company agrees to pay to City an initial in lieu of tax payment on or before the date therefor hereinabove provided, at least the amount of the payment in lieu of taxes on said land and improvements which would be due by Company to City hereunder on the basis of renditions filed by Company with City's Tax Assessor -Collector for that year or on the basis of the assessment thereof -for the last preceding year, whichever is higher. When the valuation on said property has been finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final settlement of the controversy, then within thirty (30) days ;hereafter Company shall make to City an additional payment due based on such final valuation. If as a result of final judgment of a court of competent jurisdiction, or as the result of other final settlement of the controversy, the valuation of Company's property is established as an amount less than the amount used to compute the initial in lieu of tax payment for such year by Company, then within thirty (30) days thereafter City shall make to Company any payment due based on the difference between the initial payment and that which is computed based on the final settlement. VI (a) In the event Company fails or refuses to comply with all or any of the terms, conditions and obligations herein imposed upon the Company, then this Agreement may be terminated at the option of City and/or the City may elect to sue to recover any sum or sums remaining due hereunder or take any other action which in the sole discretion of the City it deems best. In the event the City elects to sue to recover any sum due under this Agreement, the -6- same penalties, interest, attorney's fees, and cost of collection shall be recoverable by the City as would be in a suit to recover delinquent ad valorem taxes. (b) City shall be entitled to•a tax lien on said land and improve- ments, in the event of default in payment of in lieu of tax payments hereunder, which may be enforced by City in the same manner- as provided by law for the collection of delinquent ad valorem taxes. (c) In the event City breaches this Agreement by annexing or attempting to pass an ordinance annexing any of the said land, Company shall be entitled to enjoin City from the date of its breach for the balance of the term of this Agree- ment, from enforcing any annexation ordinance adopted in violation of this Agree- ment and from taking any further action in violation of this Agreement. If Company elects to pursue this remedy, then so long as City specifically performs its obligations hereunder, under injunctive order or otherwise, Company shall continue to make the annual payments required by this Agreement. VII Company agrees to provide to City at Company's expense, a survey plat and field note description of said land. With respect to Company's acquisition of new land, as described in Article III(a) above, which becomes included in said land, Company agrees to provide to City at Company's expense, a survey plat and field note description of such new land. VIII If any attempt to annex any of said land owned, used, occupied, leased, rented or possessed by Company, is made by another municipality, or if the incor- poration of any new municipality should be attempted so as to include within its limits such land or property, the City shall seek a temporary and permanent injunction against such annexation or incorporation, with the cooperation of Company, and shall take such other legal action as may be necessary or advisable under the circumstances. The cost of any such legal action shall be borne equally by the parties hereto; provided, however, the fees of any special legal counsel shall be'paid by the party retaining same. In the event City and Company are unsuccessful in obtaining a temporary injunction enjoining such attempted annexation or incorporation, Company shall have the option of (1) terminating this Agreement, effective as of the date of such annexation or incorporation, or (2) continuing to make the in lieu of taxes 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 acqwired by said affiliates within the area described in Exhibit "A" to this Agreement, and where.reference is made .herein to land, property and improve- ments owned by Company, that shall also include land and improvements presently owned by its affiliates. The word "affiliates" as used herein shall mean (1) all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise control over fifty percent (50%) or more of the stock having the right to vote for the election of directors; or (2) all corporations which are members of a "controlled group of corporations" (as that term is defined in Section 1563(a) of the Internal Revenue Code of 1954, as amended) of which Company is a member. X This Agreement shall inure to the benefit of and be binding upon City and Company, and upon Company's successors and assigns, affiliates and subsidi- aries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operations of law, all or any part of said land, and the agreements herein contained shall be held to be covenants - 8 - running with said land for so long as this Agreement or any extension thereof remains in force. XI (a) Whenever the Company sells a contiguous portion of said land consisting of 20 acres or more to an ancillary industry which will be engaged on the property in the further processing of the product of the Company or the preparation of raw materials prior to their processing by the Company, then platting of such property may be deferred under the following conditions: (i) The seller shall submit for approval by the City Council a site plan indicating the proposed water, sewer, drainage, access, and street plans for said land. (ii) Both the buyer and the seller shall enter into an agreement with the City requiring the platting of said land in the event the buyer's use of the property materially changes from the permitted uses described above, or iftheCompany'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 "8", Company shall furnish to the City's—Tax Assessor -Collector a revised Exhibit "A" and/or Exhibit "B", which revised exhibit or exhibits shall constitute an amendment to this Agreement, effective for the calendar year next following the calendar year in which the conveyance occurred. Seller shall remain solely responsible for any payments in lieu of taxes for the calen- dar year in which the conveyance occurred. In the event the Company improperly plats, subdivides or conveys a portion of the lands described in Exhibit "A" or Exhibit "8", Company shall remain solely responsible for any payments in lieu of taxes applicable to such property, including improvements thereon, as if no such conveyance had occurred. XII" If City enters into an agreement with any other landowner, within the extraterritorial jurisdiction of the City, engaged in a similar industry, as classified by Major Group according to the Standard Industrial Classification -9- .dal(1) or enters into a renewal of any existing industrial district agreemen, v,ith 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 16 day of -. v-`/ , 19 81 . ATTEST: Secretary ATTEST: Secretary ATTEST: (Company) • (Landowner) By busstr►ta2s./ ,sCawEewiompany) (Lessee)- e_T n1C, iuEetnai Imprdvements Owner Secretary ATTEST: City Secretary APPROVED: DAY OF J. BRUCE AYCOCK, CITY ATTORNEY By CITY OF CORPUS CHRISTI By R. Marvin Townsend, City Manager , 19_ 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 - P.I:. ELt;1• ;•.r STA. Of +20.0.9 _ 0 ._:.:.J. 77°52'E_, 6;.ii5.00. \. C'• T fZ A_� G_�3 E I= ^:. jLl ,Fd.57°5=„!!., 63500'/G / r'1 - • =•:'sia_ q+2o.g9--_” 0 WE TT4-1EIZBY ' (N 3i E.:ERI IG C :: - LEASE NO. 2, T TCT D trD L]J STA. 55-1. 20.03 J 7 d STA. 8Z+20.09 (AT STA. -144(.0,76j CENTER - G..I'.!E OF (.'I::^:d Kyr. "; 3.Z• EXi PK;i?:'i GI: h' :::"I 1:IIJE i F.JuriL.. Vl1 ,•7.) Vo; OAT L•I NEVIT.ION C050, 00' __ S.5'!° 57.1E.) 650.00) Q U TTACT C CD.7_ACR�� ' w 4,1 '►'TACT A ACTZ=S - 111 LV �. • La •I-EACT , 2..98 ACTZES, • N. 57°52'Y1., C.,:70.00, Ci NIIl:CC9 COU1HY NAVIGATION t)II.TRICT UUt.111[.R ONC r' LW 1,Vt. ' ': , %'Exhibit A LEASE TO WEATHERBY ENGINEERING COMPANY SEP 1531 RECEIVED v, ADMINISTRE,71Vc X OFFICES THIS LEASE is executed this 1st day of April, 1974, by and between Nueces County Navigation District No. 1, a political subdivision of the State of Texas, acting herein by and through its Navigation and Canal Commissioners duly authorized, called "District", and Weatherby Engineering Company, a Texas corpora- tion, called "Weatherby", WITNESSETH: For and in consideration of the rents to be paid and other considerations given by Weatherby herein, District hereby leases to Weatherby and Weatherby hires from District, the tract of land hereinafter described as Tract, to -wit: TRACT A The leased premises are in the Rincon Industrial Park, situated on Corpus Christi Beach, Nueces County, Texas, within the original Brooklyn Subdivision on Rincon Peninsula recorded on November 6, 1906, in Volume A, pages 30, 31 and 32 of the Map Records of Nueces County, Texas, all within the section of said subdivision re- turned to acreage by the Commissioners Court of Nueces County, Texas, said action being recorded ' in Volume 194, page 538 of the Deed Records of Nueces County, Texas. The premises are located 2.1 miles N. 50 E. from the Nueces County Court House in Corpus Christi, Texas, and is bounded on the west by a 100 foot wide road and railroad right of way located mid- way between Canals A and B in the Rincon Industrial Park, on the north by lands of District, on the east by Canal A, and on the south by lands of Dis- trict, and is further described by metes and bounds as follows: Beginning at the southwest corner of Tract A (Weatherby Lease) (Rincon Road Station 82+20.09) located in the east line of a 100 foot wide road and railroad right of way situated midway between Canals A and B in the Rincon Industrial Park. Thencs N. 32° 081 E. along the east line of said road and railroad right of way, a distance of 550.00 feet to a point for the northwest corner of Tract A (Weatherby Lease)(Rincon Road Station 87+70.09). -1- Thence S. 570 52' E. along the north line of Tract A (Weatherby Lease), a distance of 650.00 feet, to a point in the existing cor- crete bulkhead located along Canal A for the northeast corner of Tract A (Weatherby Lease). Thence S. 32° 08' W. along Canal A and east property line of the District's land in the Rincon Industrial Park, a distance of 550.00 feet to a point for the southeast corner of Tract A (Weatherby Lease). Thence N. 57° 52' W. along the south line of Tract A (Weatherby Lease), a distance of 650.00 feet, to the east road and railroad right of way line for the southwest corner of Tract A (Weatherby Lease) and point of beginning; said tract contain- ing 8.21 acres of land, more or less. Tract A is shown on District Drawing No. L-1-161(1) which is attached hereto and incorporated herein by reference. The above survey is based upon a bearing of S. 57° 52' E. for Bryan Street in the original Brooklyn Subdivision on Rincon Peninsula, and the intersection of the westward tangent ex- tension of the north right of way line of Burleson Street with the centerline of Rincon Road being Station 46 + 68.76. TO HAVE AND TO HOLD the premises above described as Tract A to Weatherby, subject to the conditions and covenants herein contained, for a period of ten (10) -years, beginning the 1st day of April, 1974, and ending at midnight on the 31st _________ ,day of March, 1984, subject to earlier termination and to ex- tension as hereinafter provided. 1. District grants to Weatherby the options to include as additional land covered by this lease, upon the terms and conditions hereinafter set out, the lands hereinafter described as Tracts B and C or the lands hereinafter described as Tracts C and D, the said Tracts B, C and D being more particularly described as follows: TRACT B Beginning at the southwest corner of Tract B (Weatherby Lease) (Rincon Road Station 80 + 20.09) located in the east line of a 100 foot wide road and railroad right of way situated midway between Canals A and B in the Rincon Industrial Park. -2- Thence N. 32° 08' E. along the east line of said road and railroad right of way, a distance of 200.00 feet to a point for the northwest corner of Tract B (Weatherby Lease) (Rincon Road Station 82 + 20.09). Thence S. 57° 52' E. along the north line of Tract B (Weatherby Lease), a distance of 650.00 feet, to a point in the existing concrete bulkhead located along Canal A for the northeast corner of Tract B (Weatherby Lease). • Thence S. 32° 08' W. along Canal A and east property line of the District's land in the Rincon Industrial Park, a distance of 200.00 feet to a point for the southeast corner of Tract B (Weatherby Lease). Thence N. 570 52° W. along the south line of Tract B (Weatherby Lease), a distance of 650.00 feet, to the east road and railroad right of way line for the southwest corner of Tract B (Weatherby Lease) and point of beginning; said tract containing 2.98 acres of land, more or less. Tract B is shown on District Drawing No. L-1-161(1) which is attached hereto and incorporated herein by reference. The above survey is based upon a bear- ing of S. 57° 52' E. for Bryan Street in the original Brooklyn Subdivision on Rincon Peninsula and the Intersection of the westward tangent extension of the north right of way line of Burleson Street with the centerline of Rincon Road being Station 146 + 68.76. TRACT C Beginning at the southwest corner of Tract C (Weatherby Lease) (Rincon Road Station 87 + 70.09) located in the east line of a 100 foot wide road and railroad right of way situated midway between Canals A and B in the Rincon Industrial Park. • Thence N. 32° 08' E. along the east line of said road - and railroad right of way, a distance of 250.00 feet to a point for the northwest corner of Tract C (Weatherby Lease) (Rincon Road Station 90 + 20.09). Thence S. 57° 52' E. along the north line of Tract C (Weatherby Lease), a distance of 650.00 feet, to a point in the existing concrete bulkhead located along Canal A for the northeast corner of Tract C (Weatherby Lease). Thence S. 32° 08' W. along Canal A and east property line of the District's lend in the Rincon Industrial, Park, a distance of 250.00 feet to a point for the southeast corner of Tract C (Weatherby Lease). Thence N. 57° 52' W. along the south line of Tract C (Weatherby Lease), a distance of 650.00 feet, to the east road and railroad right of way line for the southwest corner of Tract C (Weatherby Lease) and point of beginning; said tract containing 3.73 acres of land, more or less. -3- r r Tract C is shown on District Drawing No. L-1-161(1) which is attached hereto and incorporated herein by reference. The above survey is based upon a bear- ing of S. 57° 52' E. for Bryan Street in the ori- ginal Brooklyn Subdivision on Rincon Peninsula, and the intersection of the westward tangent exten- sion of the north right of way line of Burleson Street with the centerline of Rincon Road being Station 46 + 68.76. TRACT D Beginning at the southwest corner of Tract D (Weatherby Lease) (Rincon Road Station 90 + 20.09) located in the east line of a 100 foot wide road and railroad right of way situated midway between Canals A and B in the Rincon Industrial Park. Thence N. 32° 08' E. along the east line of said road and railroad right of way, a distance of 200.00 feet to a point for the northwest corner of Tract D (Weatherby Lease) (Rincon Road Station 92 + 20.09). Thence S. 57° 52' E. along the north line of Tract D (Weatherby Lease), a distance of 650.00 feet, to a point in the existing concrete bulkhead located along Canal A for the northeast corner of Tract D (Weatherby Lease). • Thence S. 32° 08' W. along Canal A and east property line of the District's land in the Rincon Industrial Park, a distance of 200.00 feet to a point for the southeast corner of Tract D (Weatherby Lease). Thence N. 57° 52' W. along the south line of Tract D (Weatherby Lease), a distance of 650.00 feet, to the east road and railroad right of way line for the south- west corner of Tract D (Weatherby Lease) and point of beginning; said tract containing 2.98 acres of land, more or less. Tract D is shown on District Drawing No. L-1-161(1) which is attached hereto and incorporated herein by reference. The above survey is based upon -a bearing of S. 57° 52' E. for Bryan Street in the original Brooklyn Subdivision on Rincon Peninsula, and the intersection of the westward tangent extension of the north right of way line of Burleson Street with the centerline of Rincon Road being Station 46 + 68.76. District has advised Weatherby that Tract B is subject to an option held by Texas Maritime Industries, Inc. to include Tract B in its lease which must be exercised by that company on or before June 30, 1974. The rights herein granted to Weatherby as to Tract B are subject to such prior option. -4- LEASE TO WEATHERBY ENGINEERING COMPANY (LEASE N0. TWO) THIS LEASE is executed this 9th day of June, 1975, by and between Nueces County Navigation District No. 1, a political subdivision of the State of Texas, acting herein by and through its Navigation and Canal Commissioners duly authorized, called "District", and Weatherby Engineering Company, a Texas corporation, called "Weatherby", WITNESSETH: I. For and in consideration of the rents to be paid and other considerations given by Weatherby herein, District hereby leases to Weatherby and Weatherby hires from District, the tract of land hereinafter described as Tract D, to -wit: TRACT D (LEASE N0. TWO) Said leased premises being situated in the Rincon Industrial Park on Corpus Christi Beach, Nueces County, Texas, within the ori- ginal Brooklyn -Subdivision on Rincon Peninsula recorded on November 6, 1906, in Volume A; page 30, 31 and 32 of the Map Records of Nueces County, Texas, and lying within the Section of the subdivision returned to acreage by the Nueces County Commissioners Court,— said action being recorded in Volume 194, page 538 of the Deed Records of Nueces County, Texas. Said leased premises being located 2.3 miles N. 5` E. from the Nueces County Court House in Corpus Christi, Texas, and bounded on the east by.a 115 -foot wide road and railroad right-of-way easement (formerly 100 -feet wide) located midway between Canals A and B in the Rincon Industrial Park, on the south by un- leased District land, on the west by the deep water line of Canal B and on the north by un- leased District land, and further described by metes and bounds, as follows: B=.ginning at a point, which point is the south- east corner of Tract D and located in the west line of the road and railroad right-of-way easement opposite Rincon Road Station 85 + 20.09. -1- Thence N. 57° 52' W. across District lands and along the south lease line of this tract a distance of 635.00 feet to a point on the west deep water line of Canal B for the south- west corner of this tract. Thence N. 32° 08' E. along the east deep water line of Canal B a distance of 500.00 feet to a point, which point is the northwest corner of this tract. Thence S. 57° 52' E. across District lands and along the north lease line of this tract a dis- tance of 635.00 feet to a point for the north- east corner of this tract, which point is in the west 115 -foot wide road and railroad right- of-way easement and located opposite Rincon Road Station 90 + 20.09. Thence S. 32° 08' W. along the road and railroad right-of-way easement a distance of 500.00 feet to a point of beginning, and containing 7.31 acres of land, more or less. Tract D of Lease No. 2 is shown on District Drawing No. L-1-161 (2) which is attached hereto, and incorporated herein by reference. The above survey is based upon a bearing of S. 57° 52' E. for Bryan Street in the original Brooklyn Addition, and the intersection of a westward tangent extension of the north right- of-way line of Burleson Street and the center- line of Rincon Road being Station 46 + 68.76. TO HAVE AND TO HOLD the premises above described as Tract D (Lease No. Two) to Weatherby, subject to the condi- tions and covenants herein contained, for a period of eight i! (8) years, nine (9) months and twenty-one T21) days, begin- ning the 9th day of June, 1975, and ending at midnight on the 31st day of March, 1984, subject to earlier termination and to extension as hereinafter provided. II. Weatherby is given and granted the option to extend the term of this lease as to the premises covered hereby for an additional term of five (5) years from the 1st day of April, 1984, to and including the 31st day of March, 1989, provided Weatherby exercises its option to extend by giving -2- WEATHERBY ENGINEERING COMPANY TRACT E LEASE NO. TWO • Said leased premises being situated in the Rincon Industrial Park on Corpus Christi Beach, Nueces County, Texas, within the original Brooklyn Subdivision on Rincon Peninsula recorded on November 6, 1906, in Volume A, page 30, 31, and 32 of the Map Records of Nueces County, Texas, and lying within the section of the subdivision returned to acreage by the Nueces County Commissioners Court, said action being recorded in Volume 194, page 538 of the Deed Records of Nueces County, Texas. Said leased premises being located 2.3 miles N. 5° E. from the Nueces County Court House in Corpus Christi, Texas, and bounded on the east by a 115 foot wide road and railroad right-of-way easement (formerly 100 feet wide) located midway between Canals A and B in the Rincon Industrial Park, on the south by Weatherby Tract D (Lease No. Two), on the west by the deep water line of Canal B and on the north by unleased District land, and further described by metes and bounds as follows: Beginning at a point and northeast corner of Tract D which point is the southeast corner of Tract E, and located in the west line of the road and railroad right-of-way easement opposite Rincon Road Station 90 + 20.09. Thence N. 57°52'W. across District lands and along the south lease line of this tract and the north lease line of Tract D a distance of 635.00 feet to a point on the east deep waterline of -Canal B for the southwest corner of this tract and the northwest corner of Tract D. Thence N. 32°08'E. along the east deep waterline of Canal B a distance of 1C3.00 feet to a point, which point is the northwest corner of this tract. Thence S 57°52'E. across District lands and along the north lease line of this tract a distance of 635.00 feet to a point for the northeast corner of this tract, which point is in the west 115 foot wide road and railroad right-of-way easement and located opposite Rincon Road Station 91 + 20.09. Thence S. 32°08'W. along the road and railroad right-of-way easement a distance of 100.00 feet to a point of beginning, and containing 1.46 acres of land, more or less. Tract E of Lease No. 2 is shown on District Drawing No. 1-1-161 (8) which is attached hereto, and incorporated herein by reference. The above survey is based upon a bearing of 5. 57°52'E. for Bryan Street in the original Brooklyn Addition,: and the intersection of a westward tangent extension of the north right-of-way line of Burleson Street and the centerline of Rincon being Station 46 + 68.76. Exhibit A ai,asJ_ acv ti [. ZttuC U111 -1T llec6-rno , Zy257, unless extended for additional period or periods of time upon mutual consent of Authority and City; WEATHERBY EGLEASEI NO . CTWO OMPANY Said leased premises being situated in the Industrial rialnPark kronklyn Subdivision Christi Beach, Peninsula Nueces County, Texas,iand Subdivision on Rincon Peninsula recorded on November 6, 1906, in volume A, page 30, 31, and 32 of the t4ap Records of Nueces County, lying within the section of the subdivision returned tocacreagenbyothe Nueces County Commissioners Court, said action being Trecs. 194, page 538 of the Deed Records of Nueces County, Said leased premises being located 2.3 miles N. 5° E. from the Nueces ao115�footrwideuroadnandrrailroads right of-wayneasementd d(formerlyon the aby Copus 100 feet wide) located midway between Canals A and 8 in the Rincon Industrial Par, on the thek kdeep water olineboflCanalrByand a on the Lnorth ease t,by unleased Distriby yct land, and further described by metes and bounds as follows: Binning at a ct D so theast cornerooftTract E,tthe awest line h'point the andthe road and railroad right-of-way easement opposite Rincon Road Station 90 + 20.09. 57°52'W. theross northileasetline ofs Tractalong at distance osouth f 635se 100e feet to a point on the east deep waterline of•Canal B for the southwest corner of this tract and the northwest corner of Tract D. l B a ance Thence 00 feet8'E. to aslone point, e which tpooint waterline northwestacornerdoftthis tract. Thence S 57°52'E. across District lands and along the north lease line of this tract a distance of 635.00 feet to a point for the northeast corner of this tract, which point is in the west i15te foot t widedde roadtad and railroad right-of-way easement and located oppo on 91 + 20.09. Thence S. 32°08'W. along the road and railroad right-of-ay iasement a distance of 100.00 feet to a point of beginning, acres of land, more or less. Tract E of Lease No. 2 is shown on District Drawing No. 1-1-161 (8) which is attached hereto, and incorporated herein by reference. an in theooriginalyBrooklyndAddoition,:and nthe fintersectfor ion ofa8et westward tangent extension of the north right-of-way line of Burleson Street and the centerline of Rincon being Station 46 + 68.76. Exhibit A AGREEMENT CONCERNING INDUSTRIAL DISTRICTS THE STATE OF TEXAS ) COUNTY OF NUECES ) 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 the Port of Corpus Christi Authority of Nueces County, Texas, a political subdivi- sion of the State of Texas, situated in Nueces County, Texas, hereinafter called "Authority", WITNESSETH: WHEREAS, Ordinance No. 15898, as amended, authorized the designation of certain land areas in the City's extraterri- torial jurisdiction as industrial districts; and WHEREAS, Ordinance Nos. 15949 and 16131 established, designated, and described certain industrial development dis- tricts within the City's extraterritorial jurisdiction; and WHEREAS, lessees of certain lands owned by Authority, which lands are contained in Corpus Christi Industrial Develop- ment District No. 1 as described in Ordinance 16131, desire to participate in the City's industrial district program; and WHEREAS, the City of Corpus Christi and Authority desire to facilitate the participation of such lessees in the City's industrial district program; NOW, THEREFORE, in consideration of the premises, mutual agreements of the parties herein contained and pursuant to the authority granted under the Municipal Annexation Act (Article 970A of the Revised Civil Statutes of Texas) and the Ordinances of the City referred to above, City and Authority hereby agree as follows: I. 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 Authority and City; II. The City agrees to establish industrial districts with lessees of land owned by the Authority upon submission by each respective lessee, or association of lessees, and appro- val by the City Council of the City, of a signed industrial district agreement, the prescribed form of which appears as Exhibit 1 to Ordinance No. 15898, as amended. III. The Authority agrees and consents to any land it owns in Corpus Christi Industrial District No. 1 being included in an industrial district agreement between the City and any Authority lessees, or association of lessees, as described in Article II above. EXECUTED in duplicate originals this the Z 3 day , 1981. PORT 'F COR US CHR T UTHORITY OF N- 'ES hhUNTY �• ii ' ' Car "Apr �'� " fames C. Storm 4 ATTEST: G. RE d, City Sec etary APPROVED: this _— day of _ J. BRUCE A COCK, CITY ATTORNEY By: ,es Cj Assists. Attorney By: Ji l l is E.die Galvan T. D. Sex on ck B Norris Its Port Commissioners CITY OF CORPUS CHRIS , TEXAS By:R. Ma in To sen , 1981: >/ , City M. ager AU rHONILL BY COMM sECwARv That the foregoing ordinance s read for a > firs time an assed to its second reading on this the day of ��, , 19 , 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 the se and time a c{ passed to its third reading on this the ..2S—day of , 19 p , 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 ordin on this the `3 day o Luther Jones Edward L. Sample Dr. Jack Best Jack K.'Dumphy Leopoldo Luna Betty N. Turner Cliff Zarsky PASSED AND APPROVED, this the 23 day of , 19 /1 ATTEST: .. for thethird time and passed finally , 19r , by the following vote: 1 I if APPR VED: DAY OF /1!a,d , 19.11_) J. BRUCE AYCOCK, CITY ATTORNEY By Assis/�t+ ty Attorne J r MAYOR THE CITY '�ii -� 1€ 543 F CORPUS CHRISTI, TEXAS MOTION TO AMEND Se 8 1.14,4A -Ary moved and C),IFf 2/9/QS17S/ seconded this motion to amend the Ordinance authorizing the City Manager/ to execute an industrial district agreement with Weatherby Engineering_ 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: 1. Amending Exhibit 1 of the Ordinance to add Exhibit °A° (Industrial District Land Description). PASSED: T-1.2 MOTION TO AMEND moved and 6gssvL' seconded this motion to the ordinance authorizing the City Manager to exe- cute an industrial district agreement with Weatherby Engineering Company 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 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 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." - 2 - 5. Amending the first sentence of Article VI(c) of Exhibit 1 to hereafter read as follows: "In the event City breaches this Agreement by annexing or attempting to pass an ordinance annexing any of the said land, except as provided in Article I of this Agreement, Company shall be entitled to enjoin City from the date of its breach for the balance of the term of this Agreement, from enforcing any annexation ordinance adopted in violation of this Agreement and from taking any further action in vio- lation of this Agreement." 6. Amending Article III(f) of Exhibit 1 to hereafter read as follows: "(f) Minimum Payments. For any Company which qualifies as an industry under Ordinance No. 15898 and which has less than two million dollars ($2,000,000) in market value of improvements on said land subject to this agreement, such Company, in lieu of the payments in items (a), (b), (c), (d), and (e) above, shall pay the lower of: "(1) 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 -