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HomeMy WebLinkAboutC2008-502 - 12/16/2008 - ApprovedTHE STATE OF TEXAS § COUNTY OFNUECES § CONTRACT FOR SERVICES IN LIEU OF ANNEXATION This Contract made and entered into by and between the City of Corpus Christi, Texas, a municipal corporation of Nueces County, Texas ("City"), and Sam Kane Beef Processors, Inc., a Texas for-profit corporation, Landowner, ("Company"). WITNESSETH: WHEREAS, it is the general policy of the City Council of the City of Corpus Christi, Texas, to adopt reasonable measures permitted by law that will tend to enhance the economic stability and growth of the City and its environs and will attract the location of new and the retention and expansion of existing industries in the City and its environs, and this 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 of land and improvements on land within the extraterritorial jurisdiction of the City of Corpus Christi, and WHEREAS, upon execution of this contract by the City this land shall be known as "Corpus Christi Strategic Partnership Zone No. 1," and this land is more particularly described in Exhibit "A" by metes and bounds, as provided in Section VII and in Exhibit "B" by a listing of the property by account number designated by the Nueces County Appraisal District ("NCAD") or its successor attached to this Contract, and incorporated in this Contract for all purposes, in this Contract called "the land" and upon which Company has either constructed improvements; and WHEREAS, under the policy and the provisions of Section 43.0563, Texas Local Government Code, City is willing to enter into strategic partnership agreements for the provision of services to industries located within its extraterritorial jurisdiction in lieu of annexation; and WHEREAS, City desires to encourage the retention, updating, expansion, and growth of industries within the City and its environs, and for this purpose desires to enter into this Contract with Company. NOW, THEREFORE, in consideration of the premises, the mutual contracts of the parties in this Contract contained and under the authority granted under Section 43.0563, Texas Local Government Code, City and Company agree as follows: ,. A.1. City covenants and agrees that during the term of this Contract, and subject to the terms and arovisions of this Contract, the land will retain its extraterritorial status as a 2008-502 and shall continue to retain this status until and unless the M2008-331 12/16/08 Page 1 of Sam Kane Beef Processors lion--SKBP -'i205~0U8 status is changed under the terms of this Contract. Except as provided in this Contract, the City further covenants and agrees that it will not annex the land. 2. During the term of this Contract, City has no obligation to extend to the land any City services, except fire protection and City utility services being provided to and paid for by Company on the date of this Contract, including water, wastewater, gas, and storm water services. Utility services will be provided at inside city limits rates. B. Further, City and Company agree that during the term of this Contract, Company shall comply with the City's: 1. Ordinances, rules, or regulations governing platting of the land, as required by Section 212.003, Texas Local Government Code, and Section I.A., Corpus Christi Platting Ordinance. Company further agrees that it will in no way divide the land or additions to this Contract without complying with State law and City ordinances governing subdivision of land. 2. Ordinances, rules, or regulations prescribing any building, electrical, energy conservation, fuel gas, mechanical, plumbing, inspection, or other technical construction code or codes. This requirement is imposed as a condition of receiving utility services under this contract, in lieu of a separate contract under Article VIII, Chapter 55, Code of Ordinances, City of Corpus Christi. 3. Company agrees to pay the municipal solid waste system service charge, that would apply if the property was located within the city limits. C. Company covenants and agrees that this Contract must be treated as a petition for annexation of the land and a request for immediate annexation upon termination of this Contract. Upon termination of this Contract for default or termination at the request of the Company, the lands are automatically annexed into the City, and the Company waives any and all rights to contest the annexation by the City. This covenant is a covenant running with the land, and is binding upon the Company's successors and assigns. The term of this Contract shall be fifteen (15) years beginning December 1, 2008, and continuing until November 30, 2623, unless extended for additional period or periods of time upon mutual consent of Company. If this Contract is not extended for an additional period or periods of time on or before May 31 of the final calendar year of the term of this Contract, then the immunity from annexation granted in this Contract terminates on that date, but all other terms of this Contract shall remain in effect for the remainder of the term; provided, ho~.vever, the effective date and time of annexation may not be earlier than midnight of November 30 of the final year of the term. Page 2 of 7 Contract for Services In Lieu of Annexation -- SKBP - 1105200E Each year during the term of this Contract, Company shall pay to City an amount in lieu of taxes on the land, including improvements and personal property located on the land, equal to one hundred percent (100%) of the amount of ad valorem taxes based upon the market value of the land, improvements, and personal property, which would otherwise be payable to City by Company if the land were situated within the city limits of City. IV. A. Company agrees to pay to City on or before January 31 of the year following each year during the term of this Contract all payments in lieu of taxes provided for under this Contract 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, including land, improvements, and personal property. Any change in the ratio used by City shall be reflected in any subsequent computations under this Contract. This Contract and the method of determining and fixing the amount of in lieu of taxes payments under this Contract 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 the Company's in lieu of taxes annual payment required under this Contract, the calculation shall be made utilizing the fair market value of all property determined by NCAD or its successor under provisions of the Texas Property Tax Code. The Company shall timely provide information and reports required under Texas law, rules, and regulations to NCAD or its designee, so that the appraisal process can be completed in accordance with all applicable state laws. Upon written request each year by the City's Collection Section, the Company will provide the City with the certified fair market value assessment for use in calculation and preparation of the annual in-lieu tax payment. V. If Company elects to protest the valuation set on any of its properties by Nueces County Appraisal District (NCAD) for any year or years during the term of this Contract, it is agreed that nothing in this Contract shall preclude the protest and Company shall have the right to take all legal steps desired by it to reduce the same as if the property were located within the City, except with regard to the exemptions in Part IV B. Notwithstanding any protest by Company, Company agrees to pay to City an initial in lieu of tax payment, on or before the date provided for in this Contract, of ai least the amount of the payment in lieu of taxes on the land, improvements, and personal property that would be due by Company to City under this Contract on the basis of renditions filed by Company with City's Collection Section for that year on the basis of 'the assessment of this Contract for the last preceding year, whichever is higher. WFter, the valuation on the 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 fhe controversy, then within thirty (30) days thereafter Company shall make to City any additional payment due based on the final valuation. If as a result of final judgment of a Page 3 of 7 f;ontract for Services In Lieu of Arnezation -- SKBP -- 12052008 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 that 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. If Company fails or refuses to comply with all or any of the terms, conditions, and obligations in this Contract imposed upon the Company, then this Contract may be terminated at the option of City and the City may elect to sue to recover any sum or sums remaining due under this Contract or take any other action which in the sole discretion of the City it deems best. If the City elects to sue to recover any sum due under this Contract, the penalties, interest, attorney's fees, and cost of collection are 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 constitutes grounds for termination of this Contract, provided however, that the Company must 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 Contract may not be terminated. The lands are automatically annexed into the City upon termination of the Contract. 13. If Company defaults in paying in lieu of tax payments under this Contract, City is entitled to a tax lien on the land and improvements; and the lien may be enforced by City in the same manner as provided by law for the collection of delinquent ad valorem taxes. C. If City breaches this Contract by annexing or attempting to pass an ordinance annexing any of the land, Company may enjoin City from the date of its breach for the balance of the term of this Contract, from enforcing any annexation ordinance adopted in violation of this Contract and from taking any further action in violation of this Contract. If Company elects to pursue this remedy, then so long as City specifically performs its obligations under this Contract, under injunctive order or otherwise, Company shall continue to make the annual payments required by this Contract. VII. Company agrees to provide to City at Company's expense, a survey plat and field note description of the land. VIII. !~. If any attempt to annex any of the land owned, used, occupied, leased, rented; or possessed by Company, is made by another municipality, or if the incorporation of any new municipality should attempt to include within its limits the land or property, the City >hall seek a temporary and permanent injunction against the annexation or Page 4 of 7 Contract for Services In Lieu of Annexation -- SKBP -- 12052008 incorporation, with the cooperation of Company, and shall take any other legal action necessary or advisable under the circumstances. The cost of the legal action shall be borne equally by the Company; provided, however, the fees of any special legal counsel shall be paid by the party retaining same. B.1. If City and Company are unsuccessful in obtaining a temporary injunction enjoining the attempted annexation or incorporation, Company shall have the option of: (a) Terminating this Contract, effective as of the date of the annexation or incorporation. (b) Continuing to make the in lieu of taxes payments required under this Contract. 2. This option must be exercised within thirty (30) days after the application for the temporary injunction is denied. 3. If Company elects to continue the in lieu of taxes payments, the City shall place future payments under this Contract together with part of the payment for the calendar year in which the annexation or incorporation is attempted, prorated to the date the temporary injunction or relief is denied, in a separate interest-bearing escrow account that must be held by City subject to the following: (a) If final judgment (after all appellate review, if any, has been exhausted) is entered denying a permanent injunction and/or upholding the annexation or incorporation, then all these payments and accrued interest must be refunded to Company. (b) If final judgment (after all appellate review, if any, has been exhausted) is entered granting a permanent injunction and/or invalidating the annexation or incorporation, then all the payments and accrued interest may be retained for use by City. IX. This Contract inures to the benefit of and be binding upon City and Company, and upor Company's successors and assigns, affiliates and subsidiaries, and remains 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 the land, and this Contract contained must be held to be covenants running with the land for so long as this Contract or any extension of this Contract remains in force. X. 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 County, unless same are not reasonably and competitively available within the area. Company acknowledges that the City provides a regional water system that is critical to the well-being and economic growth of the entire area and that it is important for each customer to continue to use the system as its principal source of water. Company agrees to provide six months written notice of Page 5 of 7 ^ontract for Services In Lieu of Annexation -- SK6P -- 72052008 any intent or action to obtain water from any source other than the City. The Company shall make reasonable efforts to determine local availability and competitiveness of other supplies, materials, equipment, service, construction, and professional service contracts, but shall not be required to maintain records regarding this requirement other than those normally kept in its usual course of business. XI. If any word, phrase, clause, sentence, paragraph, section, article or other part of this Contract or the application of this Contract 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 the word, phrase, clause, sentence, paragraph, section, article or other part of this Contract shall be deemed to be independent of and separable from the remainder of this Contract and the validity of the remaining parts of this Contract shall not be affected thereby, unless the holding has the effect of diminishing the revenues payable to City under this Contract. XII. This Contract may be executed in multiple counterparts, each of which is deemed an original. ~~~ ENTERED into this ~~day ofd 2008. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI ~t~~ ___ 'A el .Escobar City Manager LEGAL FORM APPROVED: eeeMber ~ 2008 R. y fining First Assistan ity Attorney For City Attorney ~~t~- 33~ AU//T_HORIIE~ 3Y COUHCIL....~a~~~Y.~~~~) C.~ 'SECRETARY ~~ CITY OF CORPUS CHRISTI ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF NUECES § Page 6 of Contract for Services In Lieu of Annexation -- SKBP -- 12052008 This instrument was acknowledged before me on November 2008 by 'Angel R Escobar, City Manager, City of Corpus Christi, a Texas municipal corporation, on behalf of the corporation. Notary Public, State of Texas SAM KANE BEEF PROCESSORS, INC. LANDOWNER By: Jer Kai e Pr ident and CEO LANDOWNER ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF NUECES § Before me, the notary public whose name is signed and printed (or typed) below, on this day personally appeared Jerry Kane, President and CEO, Sam Kane Beef Processors, Inc., a Texas for-profit corporation, as landowner, for the purposes and consideration in this Contract expressed. Given under my hand and seal of office this ~~ day of November, 2008. Notary Public, State of Texas ~,.a~~~.,, AICApAD WILIAAD PAlI11ER Notary Publk ~~~ STATE Of TEXAS ~a~ My Comm. Exp. 03.13.2011 Page 7 of 7 Contract for Serviczs In Lieu of Annexation -- SKBP -- 12052008