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Home My WebLink About024327 RES - 12/19/2000RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH DEL MAR COLLEGE FOR THE PARTICIPATION OF THE CITY OF CORPUS CHRISTI AND DEL MAR COLLEGE IN REINVESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRISTI, TEXAS WHEREAS, on November 14, 2000, in Ordinance No. 024270, the City Council approved Reinvestment Zone Number Two, City of Corpus Christi, Texas; and WHEREAS, the City of Corpus Christi and Del Mar College desire to enter into an Interlocal Agreement for participation in said reinvestment zone for their mutual benefit and the benefit of their citizens. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: The City Manager is hereby authorized to execute an Interlocal Agreement with Del Mar College for the participation of the City of Corpus Christi and Del Mar College in Reinvestment Zone Number Two, City of Corpus Christi, Texas, a substantial copy of which is attached hereto as Exhibit A and incorporated herein. ATTEST: Ar~ City Secretary APPROVED THIS THE DAY OF ~laaa~l T[I~eN~I'ySC orpus Christi 2000: James R. Bray, Jr., City Attorney 0JRB0501.017 024327 1 Corpus Christi, Texas lq-~dayof %t~ ~ ~ The above resolution was passed by the following vote: Samuel L. Neal, Jr. ~ Javier Colmenero Melody Cooper Henry Garrett Dr. Arnold Gonzales Rex A. Kinnison Betty Jean Longoria John Longoria Mark Scott 0 '" 4 3 :;; THESTATE OFTEXAS § COUNTY OF NUECES § INTERLOCAL AGREEMENT THIS INTERLOCAL AGREEMENT ("Agreement") is made by and between the CITY OF CORPUS CHRISTI, TEXAS (the "City"), a municipal corporation and home-rule city of the State of Texas, acting by and through its governing body, the City Council, and DEL MAR COLLEGE ("Del Mar"), acting by and through its governing body, the Board of Trustees. This Agreement is made pursuant to Chapter 791 of the Texas Government Code and Chapter 311 of the Texas Tax Code for the participation of the City and Del Mar in REINVESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRISTI, TEXAS (the "Reinvestment Zone"), a reinvestment zone created by the City pursuant to Chapter 311 of the Texas Tax Code. Section 1. DEFINITIONS. As used in this Agreement, the following terms shall have the meanings set out below: "Agreement" means this agreement between the City and Del Mar. "Agreement Term" is defined in Section 4. "Captured Appraised Value" has the meaning ascribed by Chapter 311, Texas Tax Code. "City" is defined in the preamble of this Agreement. "City's Tax Increment Participation" shall mean an amount of the City's ad valorem tax levy on the Captured Appraised Value, which the City agrees to contribute to the Reinvestment Zone pursuant to Sections 3 and 4 of this Agreement. "Del Mar" is defined in the preamble of this Agreement. "Del Mar Tax Increment Participation" shall mean the amount of Del Mar's ad valorem tax levy on the Captured Appraised Value, which Del Mar agrees to contribute to the Reinvestment Zone pursuant to Sections 3 and 4 of this Agreement. "Creation Ordinance" means City Ordinance No. 024270, adopted by the City Council on second reading at its November 14, 2000 meeting. "Plan" means the project plan and reinvestment zone financing plan for the Reinvestment Zone which shall be adopted by the board of directors of the Reinvestment Zone and approved by the City Council of the City, as consistent as possible with the preliminary plan described in the Creation Ordinance. "Reinvestment Zone" means Reinvestment Zone Number Two, City of Corpus Christi, Texas, created by the Creation Ordinance, incorporated herein by reference. H:kLEG~DIRklIMMY~WPDOCS\COUNCIL/0 JRB0501 021 "Reinvestment Zone Area" shall mean the area of the City included in the Reinvestment Zone as described in the Creation Ordinance. "Tax Increment" has the meaning ascribed by Chapter 311, Texas Tax Code. "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the Reinvestment Zone. Terms used herein and not otherwise defined shall have the meanings ascribed to them in Chapter 311, Texas Tax Code. Section 2. PURPOSE FOR PARTICIPATING IN THE ZONE. The City and Del Mar desire to participate in the Reinvestment Zone for the purposes of development in the Reinvestment Zone Area in accordance with the Plan, for their mutual benefit and the benefit of their citizens. Section 3. OBLIGATIONS OF CITY AND DEL MAR. (a) Tax Increment Participation. For and in consideration of the agreements of the parties set forth herein: 1) the City agrees to participate in the Reinvestment Zone by contributing into the Tax Increment Fund one hundred percent (100%) of its Tax Increment each year during the term of this Agreement on the Captured Appraised Value of real property within the Reinvestment Zone, and 2) Del Mar agrees to participate in the Reinvestment Zone by contributing into the Tax Increment Fund one hundred percent (100%) of its Tax Increment for each of the first five (5) years of this Agreement, eighty percent (80%) for the sixth (6th) year, sixty percent (60%) for the seventh (7th) year, forty percent (40%) for the eighth (8th) year, and twenty percent (20%) for the ninth (gth) year on the Captured Appraised Value of real property within the Reinvestment Zone. Upon making the contribution into the Tax Increment Fund for the ninth year, as described in the preceding sentence, Del Mar is no longer obligated under the terms of this Agreement to contribute any Tax Increment into the Tax Increment Fund. The current tax rates of the City and Del Mar are subject to change and the respective Tax Increment Participation herein pledged shall change to the extent of any change in their tax rates. (b) Payment Dates. The City and Del Mar shall not be obligated to pay their respective Tax Increment Participation from other City or Del Mar taxes or revenues or until the City or Del Mar Tax Increment Participation is actually collected. The obligation to pay the City or Del Mar Tax Increment Participation shall commence as taxes representing the City or Del Mar Tax Increment are collected for the City or Del Mar and payment shall be due fifteen (15) days after collection. Section 4. TERM OF AGREEMENT. This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect through the earlier of (i) December 31, 2022, or (ii) the date on which the Plan has been fully implemented and all Project Costs (as defined in Texas Tax Code {}311.002, and as may be further limited in the Plan), bonds, notes or other obligations secured by or payable from, in whole or in part, Tax Increment (referred to herein as "obligations"), and interest on such obligations payable from Tax Increment collected on the Captured Appraised Value of the real property within the Reinvestment Zone have been paid in full, or (iii) the date on which Del Mar makes its final contribution of Tax Increment into the Tax Increment Fund, as described in Section 3(a) of this Agreement. The City will pursue the early payment of all Project Costs and the early payment in full of any bonds, notes or other obligations, H2LEG-DIRXJIMM Y~WPDOCS\COUNCIL\0JRB0501 021 2 and the interest_thereon, issued to finance Project Costs, to the extent Reinvestment Zone revenues reasonably permit. The first payment of Tax Increment by the taxing units under this Agreement shall be based upon the tax increment base for the property within the Zone being determined as of January 1, 2000, and the payment shall be based upon those taxes as levied in the year 2001. The last payment of Tax Increment by the taxing units under this Agreement is for those taxes levied in the year 2002. If the project to be undertaken pursuant to the Plan is not undertaken, is discontinued, or is terminated, all monies remaining in the Tax Increment Fund, after satisfaction of lawful claims, shall be paid to the participating taxing units in proportion to their respective share of the total amount of tax increments derived from taxable real property in the Zone that were deposited in the Tax Increment Fund during the Fund's existence. Section 5. ANNUAL REPORT. On or before the 90th day following the end of the fiscal year of the City, the governing body of the City shall submit to the chief executive officer of each taxing unit, Del Mar, the County and the Hospital District, that levies property taxes on real property in a reinvestment zone created by the City, a report on the status of the zone. The contents of the report must contain all information required under section 311.016 of the Texas Tax Code. Section 6. MISCELLANEOUS. (a) Severability. In the event any term, covenant or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either Del Mar or the City in their respective rights and obligations contained in the valid terms, covenants or conditions hereof. (b) Entire Agreement. This Agreement merges the prior negotiations and understandings of the parties hereto and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied) or other terms with respect to the covenants, whether written or verbal, antecedent or contemporaneous, with the execution hereof. (c) Written Amendment. Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. (d) Notices. All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed below, or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. The initial addresses of the parties, which one party may change by giving written notice of its changed address to the other party, are as follows: City Del Mar H:~LEG-DIR~JIIVdvlY\WPDOCS\COUNCIL\0JRB0501 021 David R. Garcia City Manager City of Corpus Christi 1201 Leopard Corpus Christi, Texas 78401 Terry L. Dicianna President Del Mar College Baldwin & Ayers Corpus Christi, Texas 78404 (e) Non-Waiver. Failure of any party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. (f) Successors. This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any officer or agent of the City or Reinvestment Zone or any officer, agent or employee of Del Mar. (g) No Waiver of Immunity. No party hereto waives or relinquishes any immunity or defense on behalf of itself, its officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. IN WITNESS HEREOF, the City and Del Mar have made and executed this Agreement in multiple copies, each of which is an original. CITY OF CORPUS CHRISTI DEL MAR COLLEGE City Manager Date President Date ATTEST/SEAL: ATTEST: City Secretary Date Date APPROVED AS TO FORM: City Attorney Date HSLEG-DIR~IIMMY\WPDOCS\COUNCIL\0JRB0501 021 4