HomeMy WebLinkAboutC2019-290 - 5/21/2019 - Approved 689462 AGREE Total Pages: 19
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INDUSTRIAL DISTRICT AGREEMENT No. 105
THE STATE OF TEXAS §
COUNTY OF SAN PATRICIO §
CITY OF CORPUS CHRISTI §
This Industrial District Agreement ("Agreement") made and entered into under the authority of Section
42.044 of the Local Government Code, by and between the CITY OF CORPUS CHRISTI, TEXAS, a
Texas home-rule municipal corporation, hereinafter called the "CITY," and TEDA TPCO America
Corporation, a Delaware corporation, Land and Improvements Owner(s), hereinafter collectively called
the"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 that 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 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, the COMPANY is the owner and/or lessee of Land or owner of Improvements on land
within the Extra Territorial Jurisdiction of the CITY; and
WHEREAS,under said policy and the provisions of Section 42.044, Texas Local Government Code, the
CITY has enacted Ordinance No. 15898, approved November 26, 1980, as amended, incorporated for all
purposes, indicating its willingness to enter into Industrial District Agreements with industries located
within its Extra Territorial Jurisdiction and designating the specified land areas as Corpus Christi
Industrial Development Area No. 1 and Corpus Christi Industrial Development Area No. 2;and
WHEREAS,the CITY has subsequently reestablished the boundaries of Industrial Districts Nos. 1 and 2
and created Industrial District No. 4 within the CITY's Extraterritorial Jurisdiction in Nueces County;
and
WHEREAS, Ordinance No. 0 3 1415 established the boundaries of the land area known as Corpus
Christi Industrial District No. 6 for a portion of the CITY's Extraterritorial Jurisdiction in San Patricio
County; and
WHEREAS, the CITY desires to encourage the updating, expansion and growth of industries within said
Industrial Districts, and for this purpose,desires to enter into this Agreement with the COMPANY;and
WHEREAS, the COMPANY desires to minimize its tax burden and avoid regulation by the CITY of the
COMPANY'S structures and properties within such Industrial Districts.
SCANNED
NOW, THEREFORE, in consideration of the premises, the mutual agreements of the parties herein
contained and under the authority granted under Section 42.044,Texas Local Government Code, and the
Ordinances of the City referred to above,the CITY and the COMPANY hereby agree as follows:
Article 1
Section 1.01 Immunity from Annexation. The CITY covenants and agrees that during the term of this
Agreement, and subject to the terms and provisions herein, the Land shall retain its extraterritorial status
as an Industrial District, and shall continue to retain this status until and unless the same is changed
under the terms of this Agreement. Except as herein provided, the CITY further covenants and agrees
that the Land shall be immune from annexation during the term of this Agreement.
Section 1.02 Limited to Industrial Use. COMPANY covenants and agrees that during the term hereof,
COMPANY will not use or permit the use of the Land and Improvements covered by this Agreement for
purposes not included within the term "industry". "Industry" as used herein shall mean for the same
industrial uses to which the Land, or similarly situated land within the Industrial Districts, is now
devoted by the COMPANY or other such parties holding such similarly situated land. Holding the Land
and Improvements for future "industry" use, without using same for non-industry purposes, does not
violate this paragraph. If the COMPANY uses, or permits use of, the Land and/or Improvements
covered by this Agreement for purposes not included within the term "industry" as defined above, the
payment in lieu of tax to be paid by the 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 that would otherwise be payable to the CITY by the
COMPANY if said Improvements were situated on land within the CITY limits of the CITY. The
increase shall be immediately effective for all payments from the inception of this Agreement, and the
COMPANY shall transmit to the CITY within sixty (60) days of being notified by the CITY of the
determination of a non-industry use, subject to the notice provided for in Section 4.04, 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 the amounts were delinquent taxes.The CITY
shall be entitled to its attorneys' fees and other costs in collecting any of these amounts. In addition, the
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 and until
the Land is annexed, the COMPANY shall continue to make payments equal to said one hundred
percent(100%)of ad valorem taxes.
Section 1.03 Annexation Corridor. If any other company within the Extra Territorial Jurisdiction of
the CITY fails to enter into an Industrial District Agreement with the CITY or defaults on their in lieu of
tax payments, and said defaulting company is not contiguous with the CITY'S boundary, the
COMPANY shall, after the CITY provides the COMPANY with sixty (60) days prior written notice of
intent to initiate annexation proceeding, permit the CITY to annex a suitable strip of land out of the
COMPANY'S Land from the CITY'S boundary to the defaulting company's land to permit its
annexation. In the event the CITY must annex a part of the COMPANY'S property in order to annex
property owned by third parties, the CITY will annex the absolute minimum amount of the
COMPANY'S property legally necessary to annex such property owned by third parties. The location of
such annexed property shall be subject to the approval of the COMPANY, such approval shall not be
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unreasonably withheld. COMPANY and such annexed property shall have no right to any CITY
services as a result of such annexation; nor shall the CITY extend, by ordinance, any rules, or
regulations, including, but not limited to, those (a) governing plats and subdivisions of land, (b)
prescribing any building, electrical, plumbing or inspection code or codes, or(C) attempting to exercise
in any manner whatsoever control over the conduct of COMPANY'S business thereon. Such annexed
portion of land shall remain a part of this Agreement and shall not be subject to CITY taxes, but shall
continue to be included within the in lieu of tax payment. In the event that the need for an annexation
corridor no longer exists, including but not limited to the defaulting company entering into an Industrial
District Agreement, or has met its obligations to the CITY, the CITY agrees to immediately cease any
annexation proceedings related to the annexation corridor over the COMPANY'S Land, or within (60)
days, take the steps necessary to complete disannexation proceedings required to remove from the city
limits any unnecessary annexation corridor.
Section 1.04 City Services. During the term hereof,pursuant to this Agreement,the CITY shall have no
obligation to extend to the Land any utility or other CITY services, except for services that are being
provided to and paid for by the COMPANY on the date hereof,or as otherwise stated herein.
Section 1.05 Fire Protection Services. The CITY may provide fire protection services to the
COMPANY at the option of the COMPANY for an additional payment to the CITY as set forth under
Section 3.05 hereof.
Section 1.06 Compliance with City Rules and Regulations.The CITY and the COMPANY agree that
during the term hereof, with respect to the Land, the CITY shall not require compliance with its rules or
regulations: (1) governing zoning and platting of the 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 the Land or additions thereto without complying with State law and CITY ordinances governing
subdivision of land; (2)prescribing any building,electrical,plumbing or inspection code or codes; or(3)
prescribing any rules governing the method of operation of COMPANY'S business, except as to those
regulations relating to the delivery of utility services and industrial waste disposal through CITY-owned
facilities.
Section 1.07 Definitions.
A. City.As defined in the preamble hereof and includes its successors and assigns.
B. Commencement of Construction. Physical construction (including, at a minimum,
excavation for foundations or the beginning of installation or erection of improvements) at
the primary site of the eligible project has begun.
C. Existing Improvements. Improvements that were in use prior to January 1,2015.
D. Extra Territorial Jurisdiction (ETJ). The unincorporated area that is contiguous to the
corporate boundaries of the City of Corpus Christi and that is located within five miles of
those boundaries.
E. Improvements. As defined in Section 1.04(3) of the Texas Tax Code, and shall also include
power generation facilities, petroleum and/or chemical refining, processing, extraction or
storage facilities, structures, or equipment erected on or affixed to the land, regardless of the
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land ownership,and pipelines on,under,or across the land which are owned by COMPANY.
Includes Existing Improvements and New Improvements.
F. Industrial District. The industrial districts created pursuant to any ordinance of the CITY,
including any Industrial Districts created for portions of the CITY'S Extraterritorial
Jurisdiction in San Patricio County.
G. Industrial District Agreement. An agreement made and entered into under the authority of
Section 42.044 of the Texas Local Government Code.
H. Land.All of the real property owned, leased or possessed by COMPANY and located within
the Industrial Districts and designated on Exhibit A attached hereto.
I. Market Value.As determined and defined by SPCAD.
J. New Improvement. Improvement for which no government permit has been secured and for
which construction had not commenced prior January 1, 2015.
K. Placed in Use. Improvements that are completed and Placed in Use and are not listed by
SPCAD as Construction Work in Progress(CWIP).
L. SPCAD.The San Patricio County Appraisal District and includes its successors and assigns.
Article 2
Section 2.01 Term. The term of this Agreement shall begin on January 1, 2019 and continue until
December 31, 2024, unless terminated as herein provided or extended for additional period or periods of
time upon mutual consent of the COMPANY and the CITY as provided by the Local Government Code;
provided however, if this Agreement is not extended, or replaced with a similar agreement that provides
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 annexation shall be no earlier than midnight of December 31 of the final year
of the term.
Section 2.02 Extended Term. This Agreement may be extended for an additional period or periods
only by written agreement between the CITY and the COMPANY.
Article 3
Section 3.01 Payment in lieu of Ad Valorem Taxes. Each year during the term hereof, the
COMPANY shall pay to the CITY:
A. Land. An amount in lieu of tax on the Land (excluding Improvements and personal property
located thereon) equal to one hundred percent (100%) of the amount of ad valorem taxes based
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upon the Market Value of the Land which would otherwise be payable to CITY by COMPANY
if the Land were situated within the CITY limits.
B. Existing Improvements. An amount in lieu of tax on Existing Improvements (excluding personal
property) located on the Land equal to sixty-two and one half percent (62.5%) of the amount of
ad valorem taxes based upon the Market Value of the Existing Improvements which would
otherwise be payable to the CITY by the COMPANY if said Existing Improvements were
situated on land within the CITY limits.
C. New Improvements. With respect to any New Improvements, the in lieu of tax payment shall be
phased in as follows: for the first four years after the New Improvement is Placed in Use, the
COMPANY shall pay no in lieu of tax payment to the City for said New Improvement.
Commencing with the fifth calendar year after the New Improvement is Placed in Use,the in lieu
of tax payment shall be equal to sixty two and one half percent(62.5%). The first year of use for
purposes of this New Improvements payment shall be deemed to begin on the first day of
January following the date when the New Improvements are Placed in Use.
D. With respect to any new land acquired by the COMPANY located within an Industrial District,
the use of which relates directly to the primary use of the parent tract, the new land shall be
included in the COMPANY'S land known as the Land, and shall be considered in calculating the
in lieu of tax payment on the Land as of January 1 of the first year following the date which the
new land is acquired by the COMPANY. Within ninety (90) days after the acquisition of new
land by the COMPANY, the COMPANY shall provide the CITY with a revised Exhibit A that
includes a complete listing by SPCAD Geographic ID number of the newly acquired land.
E. With respect to any new land acquired by the COMPANY after January 1, 2015, located within
the Extra Territorial Jurisdiction of the CITY, the use of which does not relate to the primary use
of the parent tract, the COMPANY shall report such purchase to the CITY and the CITY shall
determine whether an Industrial District Agreement is desired for such newly acquired land.
Section 3.02 Company Schedule of Value. On or before August 31 of each year of this Agreement,or
upon final determination of Market Values by SPCAD,whichever is later, the COMPANY shall provide
to the CITY an itemized Schedule of Value by sworn affidavit,on the form attached hereto as Exhibit B,
listing all SPCAD Geographic ID numbers and the values related thereto, and showing all Land and
Improvements, owned or controlled by the COMPANY including and identifying the property to be
valued as part of this Agreement (the "Schedule"). The Schedule shall also list the year any
Improvements were Placed in Use. The COMPANY has no objection to the CITY'S review of all forms,
information, and documents provided by the COMPANY to. SPCAD and, in the event of appeal, the
Appraisal Review Board. Failure to provide the Schedule to the CITY shall constitute a breach of this
Agreement.
Section 3.03 Determination of Value. In determining the COMPANY'S annual in lieu of tax payment
required under this Agreement, the calculation shall be made utilizing the Market Value of all Land and
Improvements as determined by SPCAD, or its successor, under provisions of the Texas Property Tax
Code. The COMPANY shall timely provide information and reports required under this Agreement and
under Texas law, rules and regulations to SPCAD or its designee, so that the appraisal process can be
completed in accordance with all applicable state laws.
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Section 3.04 Company Protest of Value or Billing. If the COMPANY elects to protest the valuation
set on any of its properties by SPCAD for any year or years during the term hereof, it is agreed that
nothing in this Agreement shall preclude the protest, and the COMPANY shall have the right to take all
legal steps desired to reduce the same as if the property were located within the CITY, except with
regard to the exemptions in Section 3.06 below. The COMPANY shall notify the CITY of its appeal
within 30 days after its protest of the valuation is submitted to SPCAD.
Notwithstanding any protest of valuation by the COMPANY or any non SPCAD related billing dispute,
the COMPANY agrees to pay to the CITY an initial in lieu of tax payment,on or before the Due Date in
Section 3.07 below, based on the amount billed by the CITY. When the valuation on said property or
any billing dispute 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, the COMPANY shall make to the CITY any additional payment due based on the final
determination. 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 amount of in lieu of tax payment due to the CITY is
established to be an amount less than the amount of the initial in lieu of tax payment for that year paid
by the COMPANY,the excess in lieu of tax payment, if any, collected by the CITY shall be returned to
COMPANY within thirty (30) days after said final determination. Any non SPCAD related billing
disputes shall be resolved by the CITY within ninety (90) days from the date notice of the dispute is
received by the CITY.
Section 3.05 Fire Protection. An additional amount for city fire protection equal to fifteen percent
(15%) of the amount which would be payable on 100%of Market Value of Improvements located on the
Land will be paid annually; provided,however,that if and as long as the COMPANY, as of January 1 of
each year, is a member in good standing of the Refinery Terminal Fire Company, or its successor,or the
COMPANY agrees to provide fire protection and emergency services either from a qualified external
provider or by use of a qualified internal emergency response organization, it shall not be obligated to
pay the additional amount provided by this Section 3.05. Minimum qualifications would include
meeting certain standards as defined by applicable OSHA, state regulatory and NFPA Standards that
apply to fire control,emergency management,disaster planning and rescue services as recognized by the
Texas Industrial Fire Training Board, the State Fireman's and Fire Marshal's Association of Texas or
equivalent. The COMPANY will provide equipment, training, and facilities necessary to safely handle
all expected emergencies and properly protect the COMPANY and the community from the adverse
effects of an industrial disaster, which obligation may be satisfied by the COMPANY being a member in
good standing of the Refinery Terminal Fire Company, or its successor. (Calculation: Market Value of
Improvements x 15%x City Tax Rate=Fire Protection Fee)
Section 3.06 Calculation of Amount Due. The CITY shall mail an invoice to the COMPANY, which
sets forth the amount of payment in lieu of tax owed to the City calculated in accordance with this
Agreement. Such invoice shall be postmarked at least thirty (30) days prior to the Due Date defined in
Section 3.07 below, and shall be mailed to the address shown in Section 10.03 of 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 14, Texas Constitution, as same presently
exist or may be hereafter amended, using the Market Value of pollution control equipment certified by
SPCAD. In addition, all the amounts shall be calculated without reference to any new tax exemption or
any increase in an existing tax exemption enacted after January 1, 1995.
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Section 3.07 Payment. The COMPANY agrees to pay to the CITY on or before January 31 of the year
following each year during the term hereof(the "Due Date"), all payments in lieu of tax provided for
hereunder and invoiced by the CITY in accordance with Section 3.06 above, without discount for early
payment. The present ratio of ad valorem tax assessment used by the CITY is one hundred percent
(100%) of the Market Value of property. Any change in the ratio used by the CITY shall be reflected in
any subsequent computations hereunder. This Agreement, and the method of determining and fixing the
amount of in lieu of tax 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. Any invoiced amounts that are not paid by the Due Date shall be
considered delinquent. Delinquent amounts shall be immediately subject to interest at twelve(12%) per
annum, compounded monthly and the COMPANY shall reimburse the CITY for its costs of collections,
including reasonable attorneys' fees.
Article 4
Section 4.01 Company Failure to Pay/Company Breach. If the COMPANY fails to make a payment
due to the CITY hereunder or if the COMPANY fails to perform any other obligation incumbent upon
the COMPANY to be performed hereunder, and if such default is not fully corrected within sixty (60)
days after the CITY gives written notice of said default to the COMPANY (or, if within such 60 day
period, the COMPANY has not demonstrated a satisfactory plan of compliance approved by the CITY
(where compliance requires more than 60 days)), the City shall have the option to either(1)declare this
Agreement terminated and immediately commence annexation proceedings and sue to recover all
damages; (2)bill COMPANY and sue to recover 100%of all monies that the CITY would have received
from the COMPANY if it had been within the CITY limits, which includes 100%of all taxes,attorneys'
fees and court costs; or (3) continue this Agreement for its term and collect the payments required
hereunder.
Section 4.02 Lien. The CITY shall be entitled to and have a tax lien on the Land and Improvements
which may, in the event of default in payment of any sum due hereunder that is not cured in accordance
with Section 4.04 below, be enforced by CITY in the same manner as provided by law and for the
collection of delinquent ad valorem taxes. Additionally, the CITY shall be entitled to and have a
contractual lien on the Land and Improvements which may be foreclosed in the event of such uncured
default (1)judicially or (2) extra judicially in the same manner as a deed of trust under Texas Property
Code, and for that purpose may appoint a trustee or trustees.
Section 4.03 City Breach. If the CITY breaches this Agreement by annexing or attempting to pass an
ordinance annexing any of the Land (except with reference to the agreed annexation corridor in Section
1.03), the COMPANY shall be entitled to enjoin the 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 the COMPANY elects
to pursue this remedy, then so long as the CITY specifically performs its obligations hereunder, under
injunctive order or otherwise, the COMPANY shall continue to make the annual payments required by
this Agreement.
Section 4.04 Notice of Default. Notwithstanding anything to the contrary contained herein, in the event
of any breach by the COMPANY of any of the terms or conditions of this Agreement, the CITY shall
give the COMPANY written notice specifying the nature of the alleged default,and manner in which the
alleged default may be satisfactorily cured. Thereafter, the COMPANY will be afforded sixty (60) days
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within which to cure the alleged default (or, if cure requires more than 60 days, the COMPANY shall
have the right to demonstrate a satisfactory plan of cure approved by the CITY within such 60 days,
which shall be deemed to be a cure so long as the COMPANY is diligently pursuing such plan).
Section 4.05 Cumulative Remedies. The remedies provided herein are cumulative, none is in lieu of
any other, and any one or more or combination of the same is available. Each party, in addition to
remedies expressly provided herein is entitled to any and all other remedies available at law or in equity.
Section 4.06 No Waiver of Rights and Remedies. It is expressly understood that if at any time the
COMPANY is in default in any provision of this Agreement, the failure on the part of the CITY to
promptly avail itself of the rights and remedies that the CITY may have, will not be considered a waiver
on the part of the CITY; provided that if the CITY within ten(10) years from the date of any default by
the COMPANY, does not avail itself of the rights or remedies or elect to terminate this Agreement on
account of such default,then such default is deemed waived.
Further, is expressly understood that if at any time the CITY is in default in any provision of this
Agreement, the failure on the part of the COMPANY to promptly avail itself of the rights and remedies
that the COMPANY may have, will not be considered a waiver on the part of the COMPANY; provided
that if the COMPANY within ten (10) years from the date of any default by the CITY, does not avail
itself of the rights or remedies or elect to terminate this Agreement on account of such default, then such
default is deemed waived.
Section 4.07 Limitation of Liability. To the fullest extent permitted by law, and not withstanding any
other provision of this Agreement, in no event will either party be liable to the other party hereunder for
punitive, exemplary, or indirect damages, lost profits or business interruptions damages; provided
however,this limitation in not meant to limit the CITY'S rights under this Agreement to collect from the
COMPANY any unpaid in lieu of tax payments, late penalties and interest associated therewith, and any
costs of collection including but not limited to attorney fees.
Article 5
Section 5.01 Description of Property. The COMPANY agrees to provide the CITY with a listing of
Geographic ID numbers, as available from SPCAD or its successor, to be attached hereto and
incorporated herein as Exhibit A. With respect to COMPANY'S acquisition of new land,as described in
Section 3.01 F, which becomes included in the Land,COMPANY agrees to provide to CITY a listing of
Geographic ID numbers as available from SPCAD or its successor.
Article 6
Section 6.01 Annexation By Another Entity. 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 shall seek a temporary and permanent injunction against the annexation or incorporation, with
the cooperation of the 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 parties hereto; provided,
however,the fees of any special legal counsel shall be paid by the party retaining same.
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Section 6.02 Termination. If the CITY and the COMPANY are unsuccessful in obtaining a temporary
injunction enjoining the attempted annexation or incorporation described in Section 6.01 above, the
COMPANY shall have the option of (1) terminating this Agreement, effective as of the date of the
annexation or incorporation, or (2) continuing to make the in lieu of tax payment required hereunder.
This option shall be exercised within thirty(30) days after the application for the temporary injunction is
denied. If the COMPANY elects to continue the in lieu of tax payment, the CITY shall place future
payments hereunder 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 which shall 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 thereon shall be refunded to the COMPANY;or
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 thereon shall be retained for use by the CITY.
Article 7
Section 7.01 Sale or Lease. Whenever the COMPANY sells all or a portion of the Land or
Improvements to any entity that is not an affiliate of the Company, unless such affiliate will be
responsible for payment hereunder, the COMPANY shall within ninety (90) days give notice to the
CITY of said sale, and this Agreement shall continue in effect as to all Land and Improvements sold. If
COMPANY sells only a portion of the Land or Improvements, the COMPANY shall furnish to the
CITY a revised Exhibit A effective for the calendar year next following the calendar year in which the
conveyance occurred. If the COMPANY leases all or a portion of the Land or Improvements to an entity
that will be responsible for payment hereunder,the COMPANY shall within ninety(90)days give notice
to the CITY of said lease, and this Agreement shall continue in effect as to all Land and Improvements
leased.
Section 7.02 Company's Responsibility for Payment. The COMPANY as seller or lessor in a
transaction pursuant to Section 7.01 above,shall remain solely responsible for any payment in lieu of tax
attributable to the Land or Improvements sold or leased unless the COMPANY has entered into an
assignment and assumption agreement with the buyer or lessee of such Land or Improvements, which
shall be consented to by the CITY, in which the buyer or lessee assumes all responsibilities and
obligations under this Agreement as to the purchased or leased Land and/or Improvements.
Section 7.03 Assignment. This Agreement may be assigned by the COMPANY. If this Agreement is
assigned,the COMPANY shall notify the CITY of such assignment within thirty(30)days.
Article 8
Section 8.01 Inurement. This Agreement shall inure to the benefit of and be binding upon the CITY
and the COMPANY, and shall inure to the benefit of and be binding upon the COMPANY'S successors
and assigns, affiliates and subsidiaries, and, subject to Section 7.02, shall remain in force whether the
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 the agreements herein contained shall be held to be covenants running
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with the Land for so long as this Agreement or any extension thereof remains in force. The word
"affiliates" as used herein shall mean: (1) all companies with respect to which the 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 (or other entities) controlled by or under common control with the
Company as contemplated by Section 1239(c)of the Internal Revenue Code of 1954, as amended.
Article 9
Section 9.01 Buy Local. COMPANY shall use reasonable efforts to acquire all of its procurements,
including, but not limited to, supplies, materials, equipment, service contracts, construction contracts,
and professional services contracts from businesses located within Nueces and San Patricio Counties,
unless such procurements are not reasonably and competitively available within said area. COMPANY
shall not be required to maintain records regarding this requirement other than those normally kept in its
usual course of business.
Section 9.02 Water Procurement. 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 any intent or action to obtain more than ten percent (10%) of its
total water needs from any source other than the CITY.
Article 10
Section 10.01 Severability. In the event any word, phrase, clause, sentence, paragraph, section, article
or other part 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 the word, phrase, clause,
sentence, paragraph, section, article or other part of this 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.
Section 10.02 Entire Agreement. This Agreement constitutes the entire agreement of the parties and
supersedes any and all prior understandings, or oral or written agreements, between the parties
respecting such subject matter, except as otherwise provided in the instruments referenced herein. This
Agreement may be amended only by written instrument signed by all of the parties hereto.
Section 10.03 Notices. Any notice to the COMPANY or the CITY concerning the matters to which this
Agreement relates may be given in-writing by registered or certified mail addressed to the COMPANY
or the CITY at the appropriate respective addresses set forth below. The COMPANY must notify the
CITY of any change of address in writing. Notices by a party to the other party hereto, shall be mailed or
delivered as follows:
To the City:
City Manager
City of Corpus Christi
1201 Leopard
P.O.Box 9277
10
Corpus Christi,Texas 78469-9277
Phone:361-826-3220
Fax:361-826-3845
With copies to:
City of Corpus Christi-City Secretary
1201 Leopard
P.O.Box 9277
Corpus Christi,Texas 78469-9277
Phone:361-826-3105
Fax:361-826-3113
City of Corpus Christi-City Attorney
1201 Leopard
P.O. Box 9277
Corpus Christi,Texas 78469-9277
Phone: 361-826-3360
Fax: 361-826-3239
If to Company:
Xuegiang Zhu
President
TEDA TPCO America Corporation
5431 Highway 35
Gregory,Texas 78359
Phone:361-704-8100
Fax:361-400-2960
With copies to:
F.Edward Barker
Fancher&Neblett,LLP
555 N. Carancahua, Suite 1200 Tower II
Corpus Christi,Texas 78401-0843
Phone: 361-884-8777
Fax: 361-882-9437
Section 10.04 Governing Law.This Agreement shall be governed by and construed in accordance with
the laws of the State of Texas.This Agreement is to be performed in Nueces County,Texas.
Section 10.05 Counterparts.This Agreement may be executed in multiple counterparts, each of which
is deemed an original, and all of which taken together, shall constitute but one and the same instrument,
which may be sufficiently evidenced by one counterpart.
Section 10.06 Authority. By acceptance of this Agreement and/or benefits conferred hereunder, each
party represents and warrants to the other that its undersigned agents have complete and unrestricted
authority to enter into this Agreement and to obligate and bind such party to all of the terms, covenants
and conditions contained herein.
11
Section 10.07 Most Favored Nations. If CITY enters into a new Industrial District Agreement, or a
renewal of any Industrial District Agreement, with a landowner which contains in lieu of tax payment
terms and provisions more favorable to the 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 the
more favorable in lieu of tax payment terms and provisions. "Landowner" shall not include any tourist-
related business or facilities under Section 42.044,Texas Local Government Code.
The foregoing does not preclude the CITY from entering into a onetime, economic development
agreement with any new major employer within the City's non-industrial district ETJ, or with any
company proposing a major new investment within the City's non-industrial district ETJ, as part of the
CITY'S economic development program.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
12
ENTERED into this day of , 2019.
ATTEST: CITY OF CORPUS CHRISTI
- _ejX6ee • *1-471-A
Rebecca Huerta,City Secretary Peter Zanoni, City Manager
LEGAL FORM APPROVED 22"4of I ,2019.
,Ju4W /.�.ru (.firs. (1131-17 5
AU 1 NUruu.
Aimee Alcorn-Reed
Assistant City Attorney R comet op__! -/ 4/1/1i3FOR CITY ATTORNEY
SECR(TARV
CITY OF CORPUS CHRISTI ACKNOWLEDGMENT
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on JUna 0-D AID— , 2019,by
Peter Zanoni,City Manager of the City of Corpus Christi,a Texas home-rule municipal corporation, on
behalf of said corporation.
Notary Public, State of exasi`—�'�'. {'•
M)RTHAVAZQUEZ
•; M wary IDS 128028579
Printed Name: -kO ` •`Y` 4.Ck v(,( Uez-. Expires March 5,2022
My Commission expires: Nuc.`( t1, 5 15ar --
13
ATTEST: LAND AND IMPROVEMENTS OWNER
TEDA TPCO America Corporation
/ By:
i �— J
Name: kAbi ai'2J w Name: Xueqiang Zhu
Title: Q_C,N.`("\ Title: President
LAND AND IMPROVEMENTS OWNER ACKNOWLEDGMENT
THE STATE OF 1(x.c)S §
COUNTY OF c-. >C`KIA j,V C\ C §
This instrument was acknowledged before me onday of (i: , 2019,
byXue ian Zhu, as the President of TEDA TPCO America Corporation, a Delaware
q grp ,
corporation, on behalf of said corporation.
Given under my hand and seal of office thisaUday of fr C ,A.D.,2019.
c/24447/0710/
Notary Public, State of ICA/Cf�
Printed Name:A,10/1(4 Azkrnarkile7 :;p�i�"'Y' ;; NANCY HEWS 4DEZ
.� ,�," •.: my Notary 131826844
My Commission expires:pc(e( r/1/, "�; os � Expires December 142022
14
•
EXHIBIT A
Geographic ID Number Designated By
San Patricio County Appraisal District
San Patricio CAD Exhibit A Industrial District Agreement#105
Geographic IDs TEDA TPCO America Corporation
Confirmed by City ID Type Legal Description
0336-2000-0005-100 105 Outside Land PORTION OF LOT 5
0336-2000-0006-000 105 Outside Land LT 6 BLK B GREGORY S/D CFP CO
ABATEMENT 9900005 IMPROVEMENTS
0707775-0-9900005 105 Outside Improvements 5431 HIGHWAY 35, GREGORY,TX 0
0707775-0-9900035 105 Outside Improvements 9900035 TCEQ EXEMPT PROPERTY 0
0707775-0-9900010 105 Outside Personal Property M&E-ABATED
0707775-0-9900020 105 Outside Personal Property F&F
0707775-0-9900030 105 Outside Personal Property INVENTORY
0707775-0-9900015 105 Outside Personal Property SUPPLIES
0707775-0-9900025 105 Outside Personal Property VEHICLES
0708723-0-9900005 105 Outside Personal Property INVENTORY 5431 HIGHWAY 35, GREGORY
EXHIBIT B
Schedule of Value
CITY OF CORPUS CHRISTI
INDUSTRIAL DISTRICT
SCHEDULE OF VALUE
Company Name: Contract Number
Contact Name: As of 1/1/2015
Telephone: Due 8/31/2015
Address:
Address:
Geographic ID
444#-s44s-ss#s or Description Land PreTotal
2007 2008 2009 2010 2011 2012 2013 2014
14-sssssss-44s4 2007
• 1
Total -
- - - - - - - - -
,a duly authorized official of the above company,do swear that the information provided is accurate
to the best of my knowledge.
Signature of Authorized Official Date
Email Printed Name Authorized Official's Title
Sworn to and subscribed before me by on this day of ,20_
(Personalized Seal)
Notary Public's Signature
1 of 1
FILED AND RECORDED
OFFICIAL PUBLIC RECORDS
vuf>•>' Gracie Alaniz-Gan
zales
County Clerk Texas
San Patricia Cou2ttV,
06/24Fee19$9.00
689462 AGREE