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Ordinance No. 16,134 ORDINANCE NO. 16,134 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE (ACT), PROVIDING TAX INCENTIVES, DESIGNATING A LIAISON FOR COMMUNICATION WITH INTERESTED PARTIES AND NOMINATING CHEVRON PHILLIPS CHEMICAL COMPANY LLC TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT & TOURISM (EDT) THROUGH THE ECONOMIC DEVELOPMENT BANK (BANK) AS AN ENTERPRISE PROJECT (PROJECT), AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF. WHEREAS,the City Council of the City of Baytown,Texas desires to pursue the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals; WHEREAS, the City of Baytown elects to participate in the Texas Enterprise Zone Program and may provide local incentives enumerated in this ordinance; WHEREAS, the Texas Economic Development and Tourism Office within the Office of the Governor through the Texas Economic Development Bank will consider Chevron Phillips Chemical Company, LLC, as an enterprise project pursuant to a nomination and an application made by the City; WHEREAS, the Project is not located in an area designated as an enterprise zone; WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), Chevron Phillips Chemical Company, LLC, has applied to the City for designation as an enterprise project; WHEREAS, the City finds that Chevron Phillips Chemical Company, LLC, meets the criteria for tax relief and other incentives adopted by the City and nominates Chevron Phillips Chemical Company, LLC, for enterprise project status on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; WHEREAS, the City finds that it is in the best interest of the City to nominate Chevron Phillips Chemical Company, LLC, as an enterprise project pursuant to the Act; WHEREAS, the incentives listed in this ordinance are or will be made available for Chevron Phillips Chemical Company, LLC, as a nominated project; and WHEREAS, after proper notice, a public hearing to consider this ordinance was held by the City Council on May 8, 2025. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS: Section 1: The City finds that Chevron Phillips Chemical Company, LLC, meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: I. Chevron Phillips Chemical Company, LLC, is a " qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site located outside an enterprise zone and at least thirty-five percent (35.Vo) of the business's new employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans; 2. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and 3. The designation of Chevron Phillips Chemical Company, LLC, as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area; and Section 2: That the enterprise project shall take effect on the date of designation of the enterprise project by the agency and terminate on June 3, 2030. Section 3: The following local incentives, at the election of the governing body, are or will be made available to the nominated project or activity of the qualified business: a) The City may abate taxes on the increase in value of real property improvements and eligible personal property that locate in a designated enterprise zone. The level of abatement shall be based upon the extent to which the business receiving the abatement creates jobs for qualified employees, in accordance with the City of Baytown Tax Abatement Policy, and with qualified employee being defined by the Act. b) The City may provide regulatory relief to businesses, including: 1) zoning changes or variances; 2) exemptions from unnecessary building code requirements, impact fees, or inspection fees; or 3) streamlined permitting. c) The City may provide enhanced municipal services to businesses, including: 1) improved police and fire protection; 2) institution of community crime prevention programs; or 3) special public transportation routes or reduced fares. d) The City may provide improvements in community facilities, including: 1) capital improvements in water and sewer facilities; 2) road repair; or 3) creation or improvement of parks. e) The City may provide improvements to housing, including: 1) low-interest loans for housing rehabilitation,improvement,or new construction; or 2) transfer of abandoned housing to individuals or community groups. f) The City may provide business and industrial development services, including: 1) low-interest loans for business; 2) use of surplus underutilized publicly owned facilities as small business incubators; 2 3) provision of publicly owned land for development purposes, including residential,commercial,or industrial development; 4) creation of special one-stop permitting and problem resolution centers or ombudsmen; or 5) promotion and marketing services. g) The City may provide job training and employment services to businesses, including: 1) retraining programs; 2) literacy and employment skills programs; 3) vocational education;or 4) customized job training. h) The City may provide local incentives through established programs including: 1) local sales tax refunds; 2) other tax deferrals,tax refunds or tax incentives; 3) Economic Development Sales Tax(4A)and(413)Contribution; or 4) Chapter 380 Agreements. Section 4: The enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code,Chapter 312. Section 5: The City of Baytown City Council directs and designates its City Manager or his designee as the City's liaison to communicate and negotiate with the EDT through the Bank and enterprise project(s)and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. Section 6: All ordinances or parts of ordinances inconsistent with the terms of this ordinance are hereby repealed; provided, however, that such repeal shall be only to the extent of such inconsistency, and in all other respects, this ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this ordinance. Section 7: If any provision, section, exception, subsection, paragraph, sentence, clause or phrase of this ordinance or the application of same to any person or set of circumstances shall for any reason be held unconstitutional, void, or invalid, such invalidity shall not affect the validity of the remaining provisions of this ordinance or their application to other persons or sets of circumstances; and to this end, all provisions of this ordinance are declared to be severable. Section 8: The City Clerk is hereby directed to give notice hereof by causing the caption of this ordinance to be published in the official newspaper of the City of Baytown at least twice within ten (10) days after passage of this ordinance. 3 INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 8"day of May, 2025. CHARLES J NS N, Mayor ATTEST: tt-- YTOW ANGEL C E APPROVED AS F� SCOTT LEM ,City Attorney R:Ordinances and Resolutions Ordinance Drafts 2025-05-08 CP Chem Enterprise Zone Ordinance 050825.docx 4