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HomeMy WebLinkAbout16599 ORD - 10/14/1981sp;10/12/81;lst AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH TEXAS PIPE AND SUPPLY COMPANY, INC., FOR A TERM OF SEVEN (7) YEARS COMMENCING JANUARY 1, 1981; DESIGNATING AN AREA TO BE KNOWN AS "CORPUS CHRISTI INDUSTRIAL DISTRICT NO. 38"; EXEMPT- ING 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, MARK- ED EXHIBIT 1; AND DECLARING AN EMERGENCY. 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 Texas Pipe and Supply Company, Inc., for a term of seven (7) years commencing January 1, 1981; designating an area to be known as "Corpus Christi Industrial District No. 38"; exempting such area from annexation and providing for an annual payment in lieu of taxes to the City during the term thereof; all as more fully set forth in the Industrial District Agreement, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit 1. SECTION 2. That upon written request of the Mayor or five Council members, copy attached to find and declare an emergency due to the need of executing an industrial district agreement with Texas Pipe and Supply Company, Inc., prior to an annexation election, such finding of an emergency is made and declared requiring suspension of the Charter rule as to consider- ation and voting upon ordinances or resolutions at three regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this Iday of October, 1981. ATTEST: City cretary APPROVED:rt4DAY OF OCTOBER, 1981 J. BRUCE AYCOCK, CITY ATTORNEY Assi'a 4 ity Attorney THE CITY OF CORPUS CHRISTI, TEXAS 16599 SEP 27i984 MICROFILMED INDUSTRIAL DISTRICT'AGREEMENT THE STATE OF TEXAS 1 COUNTY OF NUECES 1 CITY OF CORPUS CHRISTI j 4-2-81 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 Jermar Company, a Texas general partnership TLandowner) Texas Pipe and Supply Company, Inc. (Lessee) , a Texas corporation, and Jermar Company, a Texas general partnership (Improvements Owner) a , hereinafter collectively called "COMPANY", WITNESSETI1: 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. dr 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 - rents 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 caste 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 ;o+ or periods of time upon mutnai 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 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 prorcrty) 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 ?larch 31 of each year during the term of this Agree- ment, Company shall provide to City's Tax Assessor -Collector a written statement -3- of its opinion of the market value sworn to by an official of Company authorized to do the same. (c) t•;ith re:pect to any new improvements or racilitie.3, which are her.ftq Jofined as tho_e being completed atter January 1, 1974, Company shall pay to City five percent (57) rather than the percentages of the amouIIL of ad ',1r �r taxes as calculated in paragraph (h) above for each year of use, i.e., tt cerond year in use, 157 the third year in use, etc. Payments under this o•avision 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 p_rcent (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 ebiigated 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; awned 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 frau the amount which would otherwise be due from such calculation the property taxes actually due to City resulting From the assessed -Jl,.e_ Def land and improvements, excluding personal property, located inside the city If Company selects su,_h alternative procedure, the amount due to City ._i : ,:nis s,,cLion shill he the resulting difference or the minimum payment er,quired in paragraph (f), whichever is greater. In addition, Company shall :'ie City, by atta`ling hereto as Exhibit "R", a complete description of the I.❑ls contiguous to said land, or forming an integral part of Company's primary o2.,,r lien located on ;.-id land, owned by Company inside the city limits. -4- With r•esnect to any new land acquired by Company after January 1, located in:idr the city limits, which is contiguous to said land, or forms an irl^;rel f,. t of Company's primary operation located on said land, such new la'i! .,_,;: tr rc•nsidered in the alternative method of calculating the in lieu of to. :'r'v gent .' • .i ntcd above, as of January 1 of the first year following the c6rr t I rah sr,., new land is acquired by Company. Company shall provide City a na, : revised Er;ril it "P" which includes a complete description of such new (f) Minimum Payments. For any Company which qualifies as an industry under Ordinance flo. 15893 and which has less than two million dollars ($2,000,000.00) in market value or 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 paymen`. The present ratio of ad valorem ten: assess- ment used by City is one hundred percent (100%) of the fair market value of prep2rty. 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 11,;ng the amount of in lieu of taxes payments hereunder shall be subject to all p e/isinns of law relating to determinations of market value and taxation, inci'rrlir , but not limited to, laws relating to rendition, assessment, equaliza- tion ; r. i appeal. V In the event Company elects to protest the valuation set, on any of its p:ceerties 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 A reerient may he 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, irterest, attorney's fees, and cost of collection shall be recover,b1e by the City as would be in a suit to recover delinquent ad valorem taxes: ;h) City shall be entitled to a tax lien on said lama and impruve- wntc- in the event of default in payment of in lieu of tax payments hereunder, whi:a1 errs he enforced by City in the same manner es provided by law for the celic:;.i r of delinquent ad valorem taxes. (c) in the event City breaches this Agreement by annexing or attempting to pest. en 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 courEcl shall be paid by he 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 es of the date of such annexation or incorporation, or (2) continuing to make the in lieu of taxes - 7 - pay7p urs required hereunder. Such option shall be exorcised within thirty (30) daps .`ter the application For such temporary injunction is denied. In the event Company .elects to continue such in lieu of taxes payments, the City shall plaLe future payments hereunder together with part of the payment For the cal- enrlr,..-Ar in which such annexation or incorporation is attempted, prorated to the ,};,a such temporary injunction or relief is denied, in a separate interest- bear, ,r 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 anne:,ation or incorporation, then all such payments and accrued interest thereon shall he 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 terns is defined in Section 1553(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 niay 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 buye'r'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•shaIl 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 "8", Company shall remain solely responsible for any payments in lieu of taxes applicable to such property, including improvements thereon, as if no such .7onveyance had occurred. XII If City enters into an agreement with any other landowner, within thr extraterritorial jurisdiction of the City, engaged in a similar industry, classified by Major Group according to the Standard Industrial Classification -9- ,;al(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 a 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- ceti,n 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 5 day of October , 1981 Partner, Jerry Rubenstein ATTEST: Secretary, Jerry Rubenstein ATTEST: Secretary JERMAR COMPANY (Company) • (Landowne & Imp .vements Owner) Com an •n•o a, i;iToa: a•cs,.e4o;•o.r ;TV By ATTEST: CITY OF CORPUS CHRISTI By ,secretary R. Marvin Townsend, City Manager f.PPPO,';_D: DAY OF J. BRUCE AYCOCK, CITY ATTORNEY By , 19 Assistant City Attorney (1) Standard Industrial Classification Manual. (Executive Office of the President - O;fice of Management and Budget, Statistical Policy Division, 1972). 659 pp. - 10 - • EXHIBIT A Lot One (1), Block One (1), Meaney Industrial Tracts, a subdivision of Nueces County, Texas, as shown in Map 46, page 180, Map Records of Nueces County, Texas, reference which is here made. Corpus Christi, Texas /'1 day of , 1981 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members MAYOR THE CITY OF CORPUS CHRISTI, TEXAS The above ordinance was passed by the following vote: Luther Jones Betty N. Turner Jack K. Dunphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky 1.6599