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HomeMy WebLinkAbout020539 ORD - 12/13/1988AN ORDINANCE AUTHORIZING THE EXECUTION OF AN INDUSTRIAL DISTRICT CONTRACT WITH DE DIETRICH (USA), INC.; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: $ECTION 1. That the City Manager is hereby authorized to execute an Industrial District Contract with De Dietrich (USA), Inc., all as more fully set forth in the contract, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit A. 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 for the efficient and effective administration of City affairs, such finding of an emergency is made and declared requiring suspension of the Charter rule as to consideration and voting upon ordinances at three regular meetings so that this ordinance is passed and shall ke effect upon lIrst reading as an emergency measure this the /5 day of , 19K5 ATTEST: City Secretary APPROVED:11A DAY 0�iarewk, 19$9*<, HAL GEORGE, CITY ATTORNEY 207HG093.ord THE CITY OF CORPUS CHRISTI, TEXAS 20539 MICROFILMED INDUSTRIAL DISTRICT AGREEMENT (MASTER FORM NO. 1) THE STATE OF TEXAS § COUNTY OF NUECES § This Agreement is made and entered into by and between the City of Corpus Christi, Texas, a municipal corporation of Nueces County, Texas, hereinafter called "City", and De Dietrich (USA) , Inc. (Landowner) a Delaware corporation, -corporat- -r- d- a Delaware "Company". -a - (Lessee) De. Dietrich (USA) Inc. (Improvements Owner) corporation, hereinafter collectively called 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 environs 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 improvements 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. c.! ", 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 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 ofsaid ordinance, to enter into industrial district agreements with industries located within its extraterritorial jurisdiction and designating areas located in its extraterritorial jurisdiction as industrial districts, herein collectively -1- 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, themutual 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: 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 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. 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 regulations (a) governing zoning and platting of said land or any additions thereto outside the City limits; provided, however, Company further agrees that it will in no way divide said land or additions thereto without complying with State law and City ordinances governing subdivision of land; including the provisions of Article XI of this Agreement; (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 be 2k months beginning on the first day of January 19 89, and continuing until December 31, 1990 unless extended for additional period or periods of time upon mutual consent of p • • Company and City as provided by the Municipal pal 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. -2- 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 bestallY interest of citizens zens of City. Accord- ingly, 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 landexcludin � 9 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 Corr, an if said land were situated within the city limits of City. With respect to any new land acquired by Company after January1, 1981, located in the extraterritorialjurisdiction of City, and the use of which relates directly to the primary use of the parent tract, such new landshall 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. i s 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 said improvements were situated Company if f P � on land within i n the city limits mz is of City. Improvements shall be as defined in Section 1.04(3) of the Texas Tax Code, and shall also include_ petroleum and/or chemical refining, 9 processing, extraction or storage facilities, structures, or equipment i ment .. P erected on or affixed to the land, regardless of the land ownership, and pipelines on, under, or across the land which are owned by the Company. On or before March 31 of each year during the term of this Agreement, Company shall provide to City's Tax 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 payto 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 1st day of January next following the date which the new improvements are placed in use. This provision shall apply PP Y -3- to construction of new improvements or facilities and to the expansion of existing improvements or fa said facilities i t1 es on sa id 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 1 to percent (15%1 of the amount which would be a ab l e cn 100% of improvements assessed value of saidP y located i n 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 e Company, or its successor, it shall not be obligated to paythe additional amount provided by this paragraph (d). (e) At the request of Company, an alternative to the method a of calculation set forth in paragraph (a) through (d) above,the Company make a payment which is determined by P S may considering using the method of calculation set forth in paragraphs (a) through (d) above, said landn ad all other lands contiguous to said land, or forming an integral part of Company's primary operation located on said land, owned byCompany inside the city limits as if all the- P y value of Company's lands above described and improvements thereon were outside the city limits, and deducting from rom the amount which would otherwise be due from such calculation the from property taxes actually due to City resulting tre assessed values of land and improvements, excluding personal. property, located inside the City. If Company selects- - such al ternati�ve .roced y . p ure, .the amount due to City under this_ section shall be the resulting difference or the minimum payment required inparagraph(f),whichever P y � s greater. In addition, Company shall provide City, by attaching hereto as Exhibit "B a conpletedescription of the lands contiguous to said land, or formingan integral part of Company's rimar operation g primary p rati on located on said d land , owned by Company inside the c i ty limits. With respect to any new land acquired by Company after January1, 1981, located inside the citylimits,_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 t P yof January1 of the first year following the date which such new land is acquired by Company. Company shall provide City a new or revised Exhibit "8"which includes a complete description of such new land. (f) Minimum Payments. For any company whichual ifies as q 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 �s (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 thead q valorem o rens taxes on one -4- million dollars ($1,000,000.00) of improvements which a able to Citysaidwould be P i f improvements eve re situated within the c i ty limits, regardless of whether one million dollars rs ($1,000,000.00) of improvements exist cn said land, or (ii) the amount of ad valorem taxes on land, improvements and personal property on said land which would payable to Cityi said land, improvements y f 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 bey 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 it lieu of taxes provided hereunder without discount payment. for t for early payment. The present ratio of ad valorem tax assessment used by City is one hundred percent(100%)fair ma � of the market value of property. Any change in such ratio used byCity shall lbe reflected in any subsequent computations hereunder. This Agreement and the method of determining and fixing the amount of in 1 i euf c taxes payments hereunder shall be subject to all provisions of law relating t t value and taxation,including, o determination of market but not limited to, laws relating to rendition, assessment, equalization and appeal. V In the event• Company elects to protest the valuation set on any of its properties by City for anyyear oryears during is the term hereof, i t agreed that nothing in this Agreement shall preclude suchrotest and Company shall have the rightP g 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 payto• g City an initial in lieu of tax payment on or before the date therefor hereinabove provided, at least the amount of the payment i n lieu which P Y of taxes on said land and improvements v�hi ch would be due by Company � to C hereunder on the basis of renditionsP � City filed by Company with City's Tax 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 al judgment of a court of competent jurisdiction or as the result of other final settlement of the controversy, then within thirty (30) days thereafter Company shall make to City any addi ti cnaia ment due P Y based on such final valuation. If as a result of final judgrnent of a court of competent jurisdiction, or as the result of other final settlement of controversy, the - valuation ua t � on of �; the Company's property i s _ 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 ter -5- 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 y it deems best. In the event the City elects to sue to recover any sum due under this Agreement, the 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 or said land and improvements, in the event of default in payment of in lieu of taxes 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 atterrpti nos topass 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 Agreement, frorri enforcing any annexation ordinance adopted in violation of this Agreement and from taking • n � ay further action in violation of this Agreement. .If Company elects toP ursue 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_. Ci ty 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 i n 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 Trade by another municipality, or if the incorporation 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 agai rest such annexation or incorporation, with the cooperation of Company, and shall take such other legal action as may be necessary cr 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 beaid by the party retaining same. P -6- In the event City and Company are unsuccessful in obtaining temporary injunction enjoining such attempted annexati en or incorporation, a Company shall have the option of (1) terminating this Agreement, effective date of such - as of the annexation or incorporation, or (2) continuing to make the in lieu of taxes payments required hereunder. Such option on sh P ail 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 shall1 ace future payments hereunder together withp p � 9 part of the payment for the calendar 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 followinc: (a) In the event final judgment (after all appellate l ate review,if any, has been exhausted)PF i s entered denying a permanent injunction and/or upholding such annexation or incorporation, then all sucha ments and accrued interest thereon shall be•. F y 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 invalidating such annexation or incorporation, then all sucha rents and FY n 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,ro ert and P P Y improvements owned by Company, that shall also include land and improvements presently owned by its affiliates. The word "affiliates" as used herein shall mean (1) all companies with respect to which Company , through one or more intermediaries• directly or i ndi recti Y 9 at the time � n question, owns or has the power to exercise control over fiftypercent (50%) or more of the stock having the g right to vote for the election of directors; or (2) all corporations which are members of a "controlled group corporations"(as that term is defined in Section 156., (a of the I Internal Revenue Code of 1954, as amended) of which the Company is a member. P Y X This Agreement shall inure to the benefit of and be binding u and Company, , and upon Company's on City F P Y Psuccessorsand assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manger disposes of, either voluntarily or by operations of law, all or any part of said lard, and the agreements herein contained shall be held to be covenants running with said land for so longas this Agreement or anyextension thereof remains i n force. -7- XI (a) Whenever the Company sells a contiguous portion of said land to another industry as defined in Ordinance No. 15E98, as amended 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; and (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 thero ert unless P P Y 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 ay portion crl of the lands described in Exhibit "A" and/or Exhibit "B", Company shall furnish to. the City's Tax Collector a revised Exhibit "A" a"B", nd/or. Exhibitwhich 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 calendar 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 "6", Company shall remain solely in lieu of taxes responsible for any payments applicable to such property, including improvements thereon, as if no such conveyance had occurred. XII Except for industrial districts in the Gulf of Mexico created pursuant to Section 11.0131 of the Texas Natural Resources Code, If City Y enters i ntoan agreement with any other landowner, within the extraterritorial jurisdiction al of the City, engaged in a similar industry, as classified by Matilor Group according to the Standard Industrial Classification Manual or enters into a renewal of any existing agreement exi sti n nindustrial district with an industry of the same classification which contains in lieu of tax payment teras and provisions more favorable to such landowner than those ' i n 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. (1)stdd Industrial Classification Manual. (Executive Office of the President, Office of Management and Buaget, Statistical Policy Division, 1972). 659 pp. -8- XIII In the event any ore or more words, phrases, clauses, sentences, paragraphs, sections, articles or otherparts Agreement of this s or the application thereof to any person, firm, corporation or circumstances uC,C,eS sha 1 ever be held by any court of competent jurisdictiori 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 validity of the remaining 9 and the parts of this Agreement shall not be affected thereby. XIv Upon the commencement of the terry of this Agreement, all other previously existing industrial district agreements with respect to land shall terminate. said .406 ENTERED into tis '/ day of ATTEST: Name: Don R. Collier ATTEST: Secretary itri) De Dietrich (USA) , Inc. (Company) (La ndowne r)( prnveirent Owner) Name: Dick Cahoon Title: President Address: U. S. Highway 22 By Union, New Jersey 07083 (Lessee) (Company) Names: Name: Title: Address: _g_ ATTEST: Secretary Name: ATTEST: APPROVED: DAY OF. By ,1 98.7 aat....ci ty Attorney • By (Cornpany) (Impruvements Owne Name: Title: Address: CITY OF CORPUS CHRISTI, TEXAS By -10- • City of Corpus Christi P. 0. Box 9277 :Corpus Christi, Texas 78469- r' L1. LANDOWNER ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me o by h Fck CR/zoo& Ae s file 4J of Oe- (d_ use) THE STATE OF TEXAS § COUNTY OF NUECES § , Inc. (title), on behalf Nam Notary Public 'n and for the LOU FARC#A Notary Public, State of T My Comrniss n Expires d My Commission ex i res : 3z Q/ P State of Texas LESSEE ACKNOWLEDGMENT This instrument was ackncwledged before me on 19 , by (title), on behalf of , Inc. Name: Notary Public in and for the State of Texas My Commission expires: -11- IMPROVEMENTS OWNER ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me or, , 19 by (title), on behalf of , Inc. Name: Notary Public in and for the State of Texas My Commission expires: CITY OF CORPUS CHRISTI'S ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on ,, 19 by Juan Garza as City Manager of the City of Corpus Christi, Texas. Lou Vargo Notary Public in and for the State of Texas My Commission expires: -12- 0 c; cc < e. e < a e. - — cc irar- tc' ,90-1.2W8g 3 dr al t) ijj 1' txl Ili CC rrtginL.,4 g t,u44kFq'3rs..) tHIFIla.p! 2 PWligt:Igkgd Cj.JLh <0< v,1 < 0 g'ing 22 g < m tri a 4 4 in 0 411 4'1 PIZR}t044pW 4W424.401) gUitidg‘) ,(:)0 'QC 0 d 0 1 4 • t $1.4 IA* ss ,oca.co .S 0 'OS S ti„s? ,op.00 clvwzi 17.1\I k‘ri \ts1 1111111110.1.• APPild.orie DLT/ds EN61NEER1NG CORPUS CHRISTI, TEXAS � Job No. 27467.00,02 P,O, BOX 6355, 2725 SWANTNEB CORPUS CHRISTI, TEXAS 78411 (512) $54-3101 December 5, 1988 STATE OF TEXAS COUNTY OF NUECES FIELDNOTES for a 1249 acre tract of land out of the 118.6 acres out of the fast one-half of section 410, by virtue of Adams, Beatty and Moulton, Cort1f1cte No. 959, patented to Peter, James and Dennis McBride, September 13, 1906, by Patent No. 369, Volume 32, State Abstract No. 991 ,. Nueces County, Texas and being the same 118,6 acres described In a deed from John C. North, et al, to Rand Morgan, dated April 1 I , 1940 and recorded In Volume 255, Pages 570 thru 572, Deed Recons of Nueces County, Texas: •. . BEGINNING at a point on the East right-of-way line of McKinzie Rapti (12000 feet wide) for the Southwest corner of this tract, from which corner the intersection of said East right,of-way line with the North right-of-way line the Texast1ex1ean Railroad (100.00 feet wide) begs South 04'04'2S" East 449.97 feet; THENCE North 00`00'25" West, alpng said East right-of-way line of McKinzie Road, parallel with its centerline and 60.00 feet distant therefrom, meesuretat right angles thereto, 53003 feet to a 5/8 inch iron rod set for the Northwest corner of this tract; THENCE North 89.22' IS" East 1040,00 foot for the Northeast corner of this tact; THENCE South 00'37'45" East 530,00 feat for the Southeast corner of this tact; THENCE South 89'22' I S"West 89'22'15" Wast 1095,76 feet to the POINT OF BEGINNING. UBAN CNOINEERINO Dan L. Urban,,R.P.3. EI.VA AV—VP A " Corpus Christi, Texas 43 day of LOW-411CeiL) 198 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, 99.045.01 Council Members THE CITY OF CORPUS CHRISTI, TEXAS The above ordinance was passed by the following vote: Betty N. Turner David Berlanga, Sr. Ot/itLeo Guerrero dJL'iQ/L)lam Clif Moss Bill Pruet Mary Rhodes tf:/. Frank Schwing, Jr. U /. Mary Pat Slavik Linda Strong V.(te)c (6- 20539