HomeMy WebLinkAbout022360 ORD - 09/19/1995AN ORDINANCE
AMENDING ORDINANCE NO. 022092 TO PROVIDE FOR A NEW
CONTRACTUAL DATE AND REPEALING ORDINANCE NO. 022201;
AMENDING EXHIBIT 1 TO ORDINANCE NO. 022092 BY AMENDING
ARTICLE III SECTION (e) AND DELETING ARTICLE III SECTION (1)
FROM THE INDUSTRIAL DISTRICT AGREEMENTS; AUTHORIZING
THE CITY MANAGER TO EXECUTE CORRECTED INDUSTRIAL
DISTRICT AGREEMENTS, SUBSTANTIALLY IN ACCORDANCE WITH
ORDINANCE NO. 022092, AS AMENDED, TO CONFORM THE
AGREEMENTS IN ACCORDANCE WITH ORDINANCE NO. 022092, AS
AMENDED, TO PROPERLY IDENTIFY COMPANIES AND PARCELS OF
LAND, AND TO FILE THE AGREEMENTS IN THE OFFICIAL RECORDS
OF NUECES COUNTY, TEXAS; AND PROVIDING FOR SEVERANCE.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That Ordinance No. 022092 is hereby amended to read as shown on the
attached and incorporated Exhibit A.
SECTION 2. That Ordinance No. 022201 is hereby repealed.
SECTION 3. That the City Manager is hereby authorized to execute corrected industrial
district agreements with the entities listed on the attached and incorporated Exhibit 1, which is part
of Exhibit A, substantially in accordance with Ordinance No. 022092, as amended, and is directed
to make such changes to the entities' submitted agreements as are necessary to conform to Ordinance
No. 022092, as amended, to properly identify entities and parcels of land, and to file the industrial
district agreements in the Official Records of Nueces County, Texas.
SECTION 4. 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 has the effect of diminishing the revenue payable to the
City under any agreement entered into under this ordinance.
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That the foregoing ordinance was read for the first time and passed to its second reading on this the
12 Day of 5 -)V YvV ' , 19(0, by the following vote:
Mary Rhodes
Dr. Jack Best
Betty Black
Melody Cooper
Tony Heldenfels
Betty Jean Longoria
John Longoria
Edward A. Martin
Dr. David McNichols
That the foregoing ordinance was read for the second time and passed finally on this the 1 VA Day
of k�O / mvx_r , 19 °1 h, by the following vote:
Mary Rhodes l!u'✓.�
Dr. Jack Best CUA1-- John Longoria
Betty Black Edward A. Martin
Betty Jean Longoria
Melody Cooper Dr. David McNichols
Tony Heldenfels
PASSED AND APPROVED, this the 161 Day of '4421-€1,1,\.6? ✓ , 19 CIS"
ATTEST:
Ouiy-
41441.City Secretary
MAYOR
THE CITY OF CORPUS CHRISTI
APPROVED: 5 DAY OF emc.e-✓ 1995 :
JAMES R. BRAY, JR., CITY ATTORNEY
By:
Alison Gallaay
Assistant City Attorney
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AN ORDINANCE
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AMENDING ORDINANCE 15898, AS AMENDED, AUTHORIZING THE
DESIGNATION OF LAND AREAS LOCATED WITHIN THE
EXTRATERRITORIAL JURISDICTION OF THE CITY OF CORPUS
CHRISTI, TEXAS, AS 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, 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
EXHIBIT A
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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 a period of time not to exceed fifteen (15) years, and upon such other terms and consderations
as the parties might deem appropriate, and such written contracts may be renewed or extended for
successive periods not to exceed fifteen (15) years;
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", 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 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
EXHIBIT A
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distribution of electricity to the facilities of the industries described in (a), (b), and (c) above; (0 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.
"Industry" for purposes of this ordinance does not include tourist industrial districts under
Section 42.044, Texas Local Government Code.
SECTION 3. Pursuant to Section 42.044, Texas Local Government Code, 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 December 15
April 1, 1995, 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
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the extraterritorial jurisdiction of the City more than 120 days after final passage of this ordinance,
may, prior to December 31 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 City to contract no latcr 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, if substantially complete executed contracts are
received from such owner or owners no later than December 15, 1995.
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.
SECTION 8. This ordinance shall take effect from and after its passage.
SECTION 9. If for any reason any section, paragraph, subdivision, clause, phrase, word,
or proviison 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 has the effect of diminishing the revenue payable to
the City under any agreement entered into under this ordinance.
EXHIBIT A
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INDUSTRIAL 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 [state of incorporation] corporation. if
applicable),Landowner, (a [state of incorporation] corporation.
if applicable, Lessee,and a
corporation Improvements Owner, hereinafter collectively called "COMPANY".
WITNESSETH:
WHEREAS, it is the established policy of the city council of the City of Corpus Christi,
Texas, to adopt reasonable measures permitted by law which will tend to enhance the economic
stability and growth of the City and its 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, City has enacted Ordinance No. 15898, as amended, including without limitation
by Ordinance No. 022092, incorporated for all purposes, indicating its willingness, lio late) lima
• •• 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 Corpus Christi Industrial
Development Area No. 1 and Corpus Christi Industrial Development Area No. 2 if such industries
no later than December 15. 1995. (or later for subsequently acquired land as provided in the
ordinance) submit sustantially complete executed contracts to the City Manager; and
•
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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 goveming 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 not violate this paragraph.
II.
The term of this Agreement shall be ten (10) years beginning on the first day of January
1995, and continuing until December 31, 2004, unless extended for additional period or periods of
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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 taxes on improvements (excluding personal property) located on
said land equal to sixty percent (60%) 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. "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 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
percent (8%) for each year of use thereafter rather than the percentages of the amount of ad valorem
taxes as calculated in paragraph (b) above, i.e., 12% the second year in use, 19% the third year in
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use, 26% the fourth year in use, 34% the fifth year in use, etc. Payments under this provision shall
never exceed sixty percent (60%). 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 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 (0, 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. Provided, however. this
provision can only be used by a Company that was utilizing this provision on December 31. 1994,
only with respect to Land reflected in Exhibit "B" to that Company's Industrial District Agreement
with City as of said date. and only for so long as the alternate in this paragraph is continuously used.
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items (a), (b), (c), (d), and (c) above, shall pay thc lower of.
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(i) an amount in licu of taxes on said land cqual to one hundred percent (100%) of
($1,000,000.00) of iiny,ovcmcnts which would -be -payable -to City --i€ said
(ii) thc amount of ad valorem taxes on land, improvements and personal property on
IV
Company agrees to pay to City on or before January 31 of the year following each year
during the term hereof all payments in lieu of taxes provided for hereunder without discount for early
payment. The present ratio of ad valorem tax 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 without reference to the exemption for pollution control
property in Section 11.31, Texas Property Tax Code, and Article VIII, Section 1-1, Texas
Constitution, as same presently exist or may be hereafter amended. In addition, all such amounts
shall be calculated without reference to any new tax exemption or any increase in an existing tax
exemption enacted after January 1, 1995.
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).
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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 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.
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.
(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.
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(d) 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 on the land which would otherwise be payable
to City by Company if 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 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 of this Agreement less any amounts previously paid plus penalties 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
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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:
(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.
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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:
(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 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 Indus trial Classification Manual 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. "Similar industry" shall not include any tourist -related business or facilities under
Section 42.044, Texas Local Government Code.
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XIII
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 efforts to procure same from businesses located within Nueces and
San Patricio Counties unless same are not reasonably and competitively available 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.
XIV
Upon the commencement of the term of this Agreement, all other previously existing
industrial district agreements with respect to said land shall terminate.
This Agreement may be executed in multiple counterparts, each of which is deemed an
original.
ENTERED into this day of , 19
ATTEST:
Secretary
ATTEST:
Secretary
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(Landowner)
By:
(Lessee)
By:
EXHIBIT 1
ATTEST:
Secretary
17
(Improvements Owner)
By:
ATTEST: CITY OF CORPUS CHRISTI
By
City Secretary City Manager
APPROVED THIS DAY OF
JAMES R. BRAY, JR. CITY ATTORNEY
By:
Alison Gallaway
Assistant City Attorney
STATE OF TEXAS §
COUNTY OF NUECES §
, 19
LANDOWNER ACKNOWLEDGMENT
This instrument was acknowledged before me on , 1995, by
(name), (title), of
(name) a (state of incorporation) corporation, on behalf of said
corporation.
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Notary Public, State of Texas
Printed Name:
My Commission expires:
EXHIBIT 1
STATE OF TEXAS §
COUNTY OF NUECES §
18
LESSEE ACKNOWLEDGMENT
This instrument was acknowledged before me on , 1995, by
(name), (title), of
(name) a (state of incorporation) corporation, on behalf of said
corporation.
Notary Public, State of Texas
Printed Name:
My Commission expires:
IMPROVEMENTS OWNER ACKNOWLEDGMENT
STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on , 1995, by
(name), (title), of
(name) a
corporation.
STATE OF TEXAS §
COUNTY OF NUECES §
(state of incorporation) corporation, on behalf of said
Notary Public, State of Texas
Printed Name:
My Commission expires:
CITY OF ORPU H 7 TI'S A KNOW ED MENT
This instrument was acknowledged before me on , 1995, by
Juan Garza as City Manager of the City of Corpus Christi, a Texas municipal
corporation, on behalf of said corporation.
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Notary Public, State of Texas
Printed Name:
My Commission expires:
EXHIBIT 1