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HomeMy WebLinkAbout022092 ORD - 11/29/1994AN ORDINANCE AMENDING ORDINANCE 15898, AS AMENDED, AUTHORIZING THE DESIGNATION OF LAND AREAS LOCATED WITHIN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS CHRISTI, TEXAS, AB INDUSTRIAL DISTRICTS; RESERVING AND PRESERVING ALL RIGHTS, POWERS AND DUTIES OF THE CITY COUNCIL; AND PROVIDING A SAVINGS CLAUSE. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION A. City of Corpus Christi Ordinance 15898, as amended by Ordinances 15941, 16129, 16167, 16601, 18023, is hereby amended to read as follows: WHEREAS, orderly economic growth increases the standard of living of the community and its citizens and improves the quality of life; and WHEREAS, Corpus Christi has a number of industries located within its extraterritorial jurisdiction and near its city limits; and WHEREAS, some industries make limited use of certain municipal services provided by the City of Corpus Christi; and WHEREAS, the City Council is of the opinion that such industries should compensate the City for the benefits received, both direct and indirect, from City services; and WHEREAS, it is the policy of the City Council to adopt such reasonable measures as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new, and the expansion of old industries; and WHEREAS, pursuant to Section 42.044. Texas Local Government Code. .., "Municipal Annexation Act," the City Council has the right, power and authority to designate all or any part of area located in its extraterritorial jurisdiction as an industrial district or districts, as the term is customarily used, and to treat such area from time to time as such governing body may deem to be in the best interest of the City; and WHEREAS, included in such rights and powers of the governing body of any city is the permissive right and power to enter into written agreements with the owner or owners of land, and holder or holders of right to use the land, in the extraterritorial jurisdiction of City to guarantee the continuation of the extraterritorial status of such land, and immunity from annexation by the City for URB\ORD \005.aar MIVily: ■LMLvi 2 a period of time not to exceed fifteen (15) acvcn (7) years, and upon such other terms and considerations as the parties might deem appropriate, and such written contracts may be renewed or extended for successive periods not to exceed fifteen (15) , WHEREAS, pursuant to Section 11.0131 of the Texas Natural Resources Code, the City Council has the right, power, and authority to designate areas located in the City's extraterritorial jurisdiction and within the Gulf of Mexico as an industrial district or districts, as that term is customarily used, and to treat such area from time to time as such governing body may deem to be in the best interest of the City; WHEREAS, industrial districts created pursuant to Section 11.0131 of the Texas Natural Resources Code may be created by the City Council with or without the existence of any agreement between the City and the owner of property within the industrial district; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. An Industrial District will be established and described upon the execution of an "Industrial District Agreement" in the form attached hereto, designated as Exhibit "1" la J. J. "-2", by the City of Corpus Christi and an industry as defined in Section 2 below. SECTION 2. Except for industrial districts in the Gulf of Mexico created pursuant to Section 11.0131 of the Texas Natural Resources Code, the term "industry" for the purpose of this ordinance is defined to mean any person, firm or corporation owning a parent tract of land or holding a right to go upon or use the surface or subsurface of a tract of land within the extraterritorial jurisdiction of the City of Corpus Christi, and within either Corpus Christi Industrial Development Area No. 1 or No. 2, as described in Ordinance No. 15949, as amended, and ml,l�h on said tract is engaged primarily in . or is holding the tract for. manufacturing or assembling of goods or processing of raw materials unserviceable in their natural state, which are extracted, processed, or made fit for use or substantially altered or treated so as to create commercial products or materials and/or which: (a) is engaged in a heavy industrial or transportation purpose, such as a manufacturing plant; chemical or petrochemical plant; refinery, oil or other product storage terminal or pipeline that if situated within the City of Corpus Christi would be allowed only in I-3 zoning; (b) generates substantial tonnage through the Port of Corpus Christi; (c) creates a substantial number of jobs for the citizens of Corpus Christi and in the opinion of the City Council in its sole discretion is compatible with other uses in the district; (d) is engaged in the business of constructing or maintaining the facilities of the industries described in (a), (b), and (c) above; (e) engages in the generation, transmission or URBWRD\005.aar 3 distribution of electricity to the facilities of the industries described in (a), (b), and (c) above; (f) is engaged in the repair or storage of products, equipment, raw materials or supplies that are used by or shipped by the industries described in (a), (b), (c), (d) and (e) above; or (g) has been dedicated by the owner and approved by the City as an "Industrial Park" upon which there are improvements being used by one or more persons, firms or corporations meeting the definition of "industry' as defined in this Section 2. "Industry" does not include retail sales or Service to the general public For purposes of determining whether one industrial district agreement contains in lieu of tax payment terms and provisions more or less favorable than another industrial district agreement for similar industries, industry classification shall be according to Major Group listed in the Standard Industrial Classification Manual 1987 (Executive Office of the President, Office of Management and Budget, 705 pp), as it may be amended.} The term "owning" as used in this Section 2 shall include the leasing of such property. -- -- •• An industry which has been identified as of January 1, 1995, by the Texas Natural Resources Conservation Commission as responsible for an area of contamination of ground water or soil underlying property currently utilized for residential purposes shall be eligible to participate in an industrial district contract only if (1) the industry agrees to remediate in accordance with the directives, rules, or orders of the Texas Natural Resources Conservation Commission, and (2) the industry agrees to participate in a program of buffer land acquisition to be undertaken by a governmental entity at fair market value agreed to by owners of industries owning a majority of the assessed value of all property of industries within the industrial area. • -. } - . • . e } • } a . } belsbJ i«ol,l tun ed Ly Lhe Te s N t al R Cres , 1 v 7 111' erre-tele }•!! t♦ )l=fl-} ! 1. P \ .1• \i-1: \ } is- } } !Rite i. P1T•4! �!ba U - •Slea ltl} 194 lR.fll q !1'!!!1_ flag} V.S\}\!1!t--1,15•11.a. P Nit• S•.lS 9K4 \S:R nl4-m}\}c-1el41}t•!}tt-l7R wt}-}w,l-arre }lt-•.ls-l9,, el•ltom\-flc- tZt•fl}}lt a r7 Alt l lard J y ay • 4 Nita vCj - }P • el_ - } •_ • I4V.1• ►e/T fag/!9}1.tTt]•I-1-1d!SY-1 tt ter! IM :/ VIM eld i9'S'i! 49}}\}t•S pt{. ,_17 W5-! tourist 'ndr is di i end ion 4 044, Texas Land Government Code. URB\ORD\005.aar 4 SECTION 3. Pursuant to Lection_ilflassalarungat Code, Article 970a of the Revised Civil Statutes of Texas, upon the execution and tender by an industry, whose land is located in the extraterritorial jurisdiction of the City, of an Industrial District Agreement which is received by the City no later than April 1, 1945 milhi,l 90 days after final Naseage of this ordi,tance, the City may, solely at the discretion of its City Council, enter into such agreement with such industry, including all owners and lessees of the land and owners of improvements thereon. Additional non-contiguous tracts owned by the industry and situated within the extraterritorial jurisdiction of the City may be included within the industrial district agreement covering the parent tract if the use of each additional tract relates directly to the primary use of the parent tract. Any such industry which does not presently own land therein but which acquires land within the extraterritorial jurisdiction of the City more than St l Q days after final passage of this ordinance, may, prior to December 391 of the year in which such land is acquired, execute and tender an Industrial District Agreement to City and in such event the City may, solely at the discretion of its City Council, enter into such agreement with such industry. SECTION 4. It is hereby declared to be the intention of the no later than April 1, 1995, with the present owner or owners of land and improvements on land in the extraterritorial jurisdiction of the City if it deems such agreement to be in the best interest of the City for the attraction and maintenance of industry. SECTION 5. Industrial districts may be created in the Gulf of Mexico pursuant to Section 11.0131 of the Texas Natural Resources Code either upon the passage of an ordinance unilaterally establishing such districts or upon execution of an industrial district agreement in a form prescribed by the City Council. SECTION 6. The City may expand or diminish the size of any such District and the City hereby reserves all rights and powers it may have or acquire to revoke in whole or in part the creation of all or any part of a District except to the extent that it has agreed not to so do in any Industrial District Agreement. SECTION 7. If a portion of a District is not actually situated within the extraterritorial jurisdiction of the City of Corpus Christi, then such fact shall not affect the validity of the creation of such District as to the remaining portion thereof. City to contract • • SECTION 8. This ordinance shall take effect from and after its passage. URB\ORD\005.aar 5 SECTION 9. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof shall be given full force and effect for its purpose unless such holding ha h o d m;nish;ng the revenue payable to the City under any agreement entered into under this ordinance. vRB\oxnwos.aar t r 6 TNDTTSTRTAT, DISTRICT AGREEMENT THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI This Agreement made and entered into by and between the CITY OF CORPUS CHRISTI, TEXAS, a municipal corporation of Nueces County, Texas, hereinafter called "CITY", and , a (Landowner) a corporation, , corporation, (Lessee) and a (Improvements Owner) corporation, hereinafter collectively called "COMPANY". W ITNESSET H: 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. ", 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 Section 42.044. Texas Local Government Code. Aiti ncV1SCLL 1.1411 City has enacted Ordinance No. 15898. as amended. indicating its willingness, no later than April 1, 1995 (or later date for subsequently acquired land as provided in the ordinance) wiLhi„ 90 lays atter final �,a�.alle of maid oidinance7 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 called 'Districts' and Ordinance No. 15949 designating land areas as URRO Dw05atar EXHIBIT 1 7 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 - Section 42.044. Texas Local Government Code. 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 and in an industrial district; 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. Company covenants and agrees that during the term hereof. Company will not use. nor permit the use of. the land and improvements covered by this Agreement for purposes not included within the term "industry" as defined in Section 2 of Ordinance No. 15898 as amended Holding said land and improvements for future "industry" use. without using same for non -industry purposes. does pot violate this paragraph. VRB\ORD \005.aar EXHIBIT 1 8 II. The term of this Agreement shall be ten (10) years beginning on the first day of January 19-2 , and continuing until December 31, }9_2004, unless extended for additional period or periods of time upon mutual 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. 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 personal property) located on percent (&Q5e%) of the amount otherwise be payable to City by URB \ ORD \005.aar 1 T taxes on improvements (excluding said land equal to gixty fifty of ad valorem taxes which would Company if said improvements were EXHIBIT 1 9 situated on land within the city limits 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, processing, extraction or storage facilities, structures, or equipment 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 collection section Tax eenector 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 six percent (6%) each for the first and second years of use. seven percent (7%) each for the third and fourth years of use. and eight five percent (5$%) for each year of use thereafter rather than the percentages of the amount of ad valorem taxes as calculated in paragraph (b) above fn ca.h yca� if use, i.e., tea% the second year in use, i.512% the third year in use, 26% the fourth year in use. 34% the fifth year in use. etc. Payments under this provision shall never exceed sixty tifL1 percent (5 nQ%)• 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 improvements or facilities and to the expansion of existing improvements or facilities on said land. New improvements or facilities not included within this paragraph (c) shall be deemed to be included within the provisions of paragraph (b) above. (d) An additional amount for City fire protection equal to fifteen percent (15%) of the amount which would be payable on 100% of assessed value of improvements located in said land notwithstanding the provisions of paragraph (b) above; provided, however, that if and as long as Company is a member in good standing of the Refinery Terminal Fire Company, or its successor, it shall not be obligated to pay the additional amount provided by this paragraph (d). (e) At the request of Company, an alternative to the method of calculation set forth in paragraphs (a) through (d) above, the Company may make a payment which is determined by considering using the method of calculation set forth in paragraphs (a) through (d) above, said land and all other lands contiguous to said land, or forming an integral part of Company's primary operation located on said land, owned by Company inside the city limits as if all the value of Company's lands above described and improvements thereon were outside the city limits, and deducting from the amount which would otherwise be due from such calculation the property taxes actually due to City resulting from the assessed values of land and URB\ORD \005.aar EXHIBIT 1 10 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. 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 improvements 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 January 31 of the year following Dcembel 31 f each year during the term hereof all payments in lieu of taxes provided for hereunder without discount vaeroan\005.aar EXHIBIT 1 11 for early payment. The present ratio of ad valorem tax assessment 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 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 determination of market value and taxation, including, but not limited to, laws relating to rendition, assessment, equalization and appeal. (b) In determining all amounts in lieu of taxes to be paid by the Company under this Agreement. the calculation shall be made 1 • • 1 ' , ' qi • • , • • • • , • I • • • in Section Section 1-1. hereafter a calculated increase in 1995. 11.31. Texas Property Tax Code. and Article VIII. Texas Constitution, as same presently exist or may be mended. In addition. all such amounts shall be without reference to anv new tax exemption or any an existing tax exemption enacted after January 1. 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. except with regard to the exemptions in Part IV(b). 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, of 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 collection section Tax Colle..tn 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 any 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. URBOMX105.aar EXHIBIT 1 12 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 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. If the Company is an industry covered by the third paragraph of Section 2 of Ordinance 15898, as amended, failure to comply with the terms of that paragraph shall constitute grounds for termination of this Agreement, provided however, that the Company shall be given written notice of the grounds for termination and if within sixty (60) days the Company complies or demonstrates a satisfactory plan of compliance (where compliance requires more than sixty (60) days) the Agreement shall not be terminated. If the CLmpanj is a�, i.nlasLiy� c��eied Ly ll.� L11i�� S!ru ll—t S+ !) y11 u4ili c 1 i 9R " r5_ nm n5 i f i19[F1•l 1•10 4.01H't •/ WI! OP Ito lf\O S[ f. VMS, 1 taa1A111!!1' I SW* td•Wle id Nld.!4lS-f"l11111111fLn!earl n- IMP t- len. .l•1 -T 1IT 1tI [Mt -.P=P t*fl 1144*— Sa!1 .l (b) City shall be entitled to a tax lien on 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 attempting to pass an ordinance annexing any of said land, 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 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. Jd) In the event Company uses. or permits use of. the land and improvements covered by this Agreement for purposes not included within the term "industry" as defined in Section 2 of Ordinance 15898. as amended. the payment in lieu of taxes to be paid by Company under this Agreement shall be increased to an amount equal to one hundred percent (100%) of the amount of ad valorem taxes on land. improvements. and personal property sited ort the land which would otherwise be payable to City by Company it said improvements were situated on land within the city limits of City. Such increase shall be immediately effective for all payments from the inception of this Agreement, and Company shall URB\ORD \005.aar EXHIBIT 1 13 transmit to the City within 10 days of being notified by City of the determination of a non -industrial use. an amount equal to said one hundred percent (100%) of ad valorem taxes from the inception • a •11 . 1 • . . and interest as if such amounts were delinquent taxes. City shall be_entitled to its attorneys fees and other costs in collecting any such amounts. In addition. City shall have the right. in its sole and absolute discretion: (1 to obtain an injunction from a court of competent jurisdiction. upon the court's determination that the use is not an "industry" use. requiring that the use be permanently discontinued. or (2) to annex the land covered by this Agreement. Until the land is annexed. Company shall continue to make payments equal to said one hundred percent (100%) of ad valorem taxes. 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 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 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 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 following: VRB\ORD\005.aar EXHIBIT 1 14 (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 invalidating 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 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 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 the 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 subsidiaries, 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 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 to another industry as defined in Ordinance No. 15898, as amended, then platting of such property may be deferred under the following conditions: vea\ORo\005 aar EXHIBIT 1 15 (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 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 Collection Section Tax Colle�tws 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 calendar year in which the conveyance occurred. Thereafter. the buyer shall be responsible for such payments including any rollback payments under Part VI(d). In the event the Company improperly plats, subdivides or conveys a portion of the lands described in Exhibit "A" or Exhibit "B", Company shall remain solely responsible for any payments in lieu of taxes applicable to such property, including improvements thereon, and_ including any rollback payments under Part VI(d). 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 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 Manualt 1987 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. VIIMOMN305aur EXHIBIT 1 • 16 or facilities under Section 42.044. Texas Local Government Code XITT In all of its procurements. including. but not limited to. procurements of supplies. materials, equipment. service contracts. construction contracts. and professional services contracts. the Company shall use reasonable iii Le.L efforts to procure same from businesses located within Nueces and San Patricio Counties t.lLc ,iLY unless same are not reasonably and competitively available nfaveilabit within said area. The Company shall make reasonable efforts to determine local availability and competitiveness but shall not be required to maintain records regarding this requirement other than those normally kept in its usual course of business. XIV In the event any one or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application 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. unless such holding has the effect of diminishing the revenues payable to City hereunder. URB \ ORD \005.aar 7 T EXHIBIT 1 17 XIV Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said land shall terminate. 19 ENTERED into this day of ATTEST: Secretary ATTEST: Secretary ATTEST: Secretary ATTEST: City Secretary APPROVED THIS By: By: By: (Landowner) (Lessee) (Improvements Owner) CITY OF CORPUS CHRISTI By • City Manager DAY OF , 19 , CITY ATTORNEY By Assistant City Attorney VRB\ORD\005.aar 18 _•NN c (pun tp, Texas, TEXAS, a nnlnlclpa , cOi pOlat1O1 , an (Lessee) COr9Ol atloai, LOipola Lloit, p �.atiOi� oL 11C.W alad elCraalai kJ apt cnla LS,.y 111 Ll L 11cSL1acs zizl, and pas Lil.ulas 1f c in olpolatcd 1 elel,l fu1 all purposes, 1telein ca FuaiiL t0 salal polia.rnhIJ-Lla URB \ ORD \005.aar area In lts eXtLat=In t'llal ju11slc t Ion as as Ila EXHIBIT 2 19 CS 11 l a„al any C1 Ly act v1C S t.a.cyL l sic yt VLc'.. L sun s„ Llac =van lleleuf, 1„g plon co al, sul.ca ul scyulaLiuua (a) guvcl„1„y Lol,ing and pla• tting 11owCVc1 , a Ars ll In no Way atot alc Sat ate laW ail Ci Ly ca guvvll,l,ly Ll,e Lie Chad v1 ul,el&Lsua,a u elaLil,� to Lh ity owne URB \ ORD \005.aar EXHIBIT 2 20 v1I[.11IUC u1I L11 LJCl.CILWC1 • 1C CL LCI.(.1. vc Qa LO allli L11Ile VL JuLII asIIIt la Ll Vll r111a11 LJC 1 L ca111C1 an midnight of Dccembel 71 of such fi11a f 1c 1/1a1 AcL v al Lit IJ1 0. CIS l GUI 1 w 1 wvuiU LJLllc1 w J. c Lc pay a LJ 1 1Cll. L, oua.n laces lalll 0,11a11 1 e 1Rt.1111ca1 111 company -s laau Anow ll as vI1a1 yl vycl Ly URB\ORD\OO5.aa1 all Cajual cv 111 Ly kJ= 4...C11 1C 111 tall of Ad oalolenl taxes Which WO11d 0LI1atwioe EXHIBIT 2 21 pcl l„e.7 ull, aa,luei , mpany . ngreemcnt, ca,mpanf s a pion a to Cltf .t La Lcults L jt ll,a %ay 11/4/11 _ .. 111.1.1 14 all a.ixi,ay llae amuuaa t. IJ 1.11 L1C4 vi a.axca pay ,]1 alipea't: v StaC plotcst and Compan]r shall SaaOe tlae a. lgl,t to tare a east tlae amount oZ the paywe,it In hea o taxa \JRB\ORD\005.aar EXHIBIT 2 Y 22 )9supcsLf ilao Lceii 111 Oetertuineti, cl.thcl as tate lesult of fina u,lyu,cuL vl a GOu1L of c%sup=LeinL jails ,llctlo 1 V mpanf, tisen on art tnllty mpany Y L.i, 15 cu (a) In the event C1,mpany falls or refuses to comp Lnipl04 elit .“ m, il, L11e eve,,t of a]efault i„ payaucnL of 111 lice of Lau a,,.,aal payre„tm leyuirel Ly this Ayleeu,e„t. URBORD \00s.aar EXHIBIT 2 y prat a,u L1e1,1 „ote acSLl 1ptlol 23 Llamyaa,y's acylisitJon of new larni, as ayscribe • row ac a4l lla vl1 1 la,1%kr a sill Jcy plat a [1 any attempt to annex any o2 sal rt lana owns , used, v1 yvaacaacal lay 'wally, is made Ly .L as Ga, Lcll yallly IL/L• au cl v1 ps Ope r Ly, Ll, pesmallclll. 1llj uzi Llvll aya111a1 auvn al ulcaa Lswat v1 11Aa1 kavl a Liv,,, w.1. tit 3, Yr' • y „cW upolaly a as may 1 9 liayule„ta legt. iIuB1 • ouGll 1/ 11 a11a11 LC cdiCll.-L w1r.1111 yo a1 Lc1. L11c app l lira 1v11 LWI auvll Lcluyvlaly 121 lieu v1 taaca paymc„La, L1,c CiLf alaall place 11t11e paylnc,lto Gn yayTlel at5 alail aGv11Gt1 111LG1eat L1ael.eola anall Lc 1c1 u11 Ina l -)algment (after all appellate lcolew, yl all l.l,ly a yc 111)u11v l�llalf aalu/vl 1a, v al laa l.l„y aul. Vll VI 111r..V 11JV1 aL1 V1,, 1c,1 all auvn yaymclata aunt avvl ucal 111Lc1 co 1cLa1„erl for lase l,y Y. URB \ ORD \005.aar EXHIBIT 2 1c1 CV al alfa e benetlts a Tto a,mpany linger this Agreement sna 24 pteoelaL1f owiaeu �i acy �1Coa..ribeal in LlA1alJ,lt A tO tnls Agreement, a made herein to land, property ant improoeme� oanea 1,y cOlapany, al. a1aa11 aiav iaaa.i UUc lanai au ni naps. vv emcn . pia se.aa lly wan=al Ly • iatcs. Tlae trot d"affiliatas" as a15ed hesein shall mean (1) nil companies with lesyect to alaich Q,mpany .litectly of inallie cl.ly, Lane aiuc��ivla, vh ttj Os vuyn u v �r the elegy^^. --^f (a) of the Intalnal Reocnse Y a aae,a>,ei . c of 1'!J•l, as a URB\ORD\005.aar EXHIBIT 2 25 y responslule Tut any pa_DU e.lta 1.1 �t upct Ly• ull holdings. • .e area Intal a sapplementa a.L 11 La W1L11 Llle C11y uuilCc1ll11L t ue11a1me11L LO L1ata 13 J. camel' , ec Livy lLa. Llic '..al=II ial. ycat uca olloaiag tl.e calendar year in mhi as 11 11O sack co.,neyancc l.aal occiltteal. any One Ol luOle Wu111a, plll sacs, L.lauaca, ban C111...0 , palaylaplla, acc. _Luna, atL±Gies 01 othcl palter of Lllls• u LutpulaLlu u a tt art./ y ally v 1- 11, Llae., Ll.e appllca Lloil, 11 Ol 111,GOlIs Ll LSLlunal lty vl oLhei pal L of Llle AgleemeiiL shall Le d eme • L-1 1 lr• VRB ORD\005.aar EXHIBIT 2 26 19 1 at j aiy Y• cc1eLar.y CORP C itJ 1 ijcs_ 1 �L M. no es, Act -mg VRB\ORD\005.aar EXHIBIT 2 27 1 1 IJRB\ORD \005.aar EXHIBIT 2 28 RECTION B. All existing industrial district agreements entered into pursuant to prior versions of Ordinance No. 15898 shall remain in full force and effect for their stated terms until new agreements are entered into pursuant to this amending ordinance. URB \ ORD \005.aar 29 That the foregoing ordinance was read for the first time and passed to its seco reading on this the 15 day of Vire() , 19 o+ , by the following vote: Mary Rhodes Dr. Jack Best Melody Cooper Cezar Galindo Betty Jean Longoria Edward A. Martin Dr. David McNichols �l�, David Noyola IUO Clif Moss That the foregoing ordinan,9R was read for the second tim f -and passed finally on this the L, day of MQ1JQy'V1ber , 19t44 - by the following vote: Mary Rhodes Dr. Jack Best Melody Cooper Cezar Galindo //��� Betty Jean Longoria ak PASSED AND APPROVED, this the AT Edward A. Martin Dr. David McNichols David Noyola Clif Moss day of ay - o IVptie Vnbr , 19g4_ Armando Chapa, City Secretary MAYOR THE CITY OF CORPUS CHRISTI APPROVED THIS 29TH DAY OF NOVEMBER, 1994: JAMES R. BRAY, JR., CITY ATTORNEY By: URB\ORD\005atar t' 07 92