Ordinance No. 16,218 ORDINANCE NO. 16,218
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO
ATTEST TO A REBATE AGREEMENT WITH THE BAYTOWN MUNICIPAL
DEVELOPMENT DISTRICT, IN ACCORDANCE WITH CHAPTER 351 OF THE
TEXAS TAX CODE, RELATED TO THE HOTEL AND CONVENTION CENTER;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Manager is authorized to execute, and the City Clerk is authorized to
attest, to a Rebate Agreement with the Baytown Municipal Development District, in accordance with
Chapter 351 of the Texas Tax Code,related to the Hotel and Convention Center. A copy of said agreement
is attached hereto as Exhibit "A," and incorporated herein for all intents and purposes.
Section 2: This ordinance shall take effect immediately from and after its passage by the City
Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of
Baytown this the 141h day of August, 2025 jMayor--------
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ANGEL CK OMI Clerl_
APPROVED AS OF RM:
SCOTT LE N , City Attorney
R,Ordinances and Resolutions Ordinance Drafts 2025-08-14 Ord-MDD-Rebate Agt-SL doc.x
EXHIBIT "A!'
REBA t t At,Kr L!v1r tv i
BAYTOWN CONVENTION CENTER HOTEL PROJECT
This Rebate Agreement ("Agreement"), as authorized by Chapter 351, Texas Tax Code, as amended
("Chapter 351"'), is entered into effective August 14, 2025 by and betNreen the City of Baytown, Texas
("City") and the Baytown Municipal Development District ("District") (collectively, the "Parties"),
acting by and through their authorized representatives, to set forth the Parties' agreement concerning the
transfer of available funds authorized under Chapter 351 in connection with the Baytown Convention
Center Hotel Project (the "Project").
RECITALS
WHEREAS. the City and the District have collaborated to plan, develop, and finance the Project and
to qualify the Project as a "qualified project" eligible to receive certain revenues available under Chapter
351 ("Rebates")-,
WHEREAS, the Parties have determined that the Project meets the requirements of a "qualified hotel", a
"qualified convention center facility", and a "qualified project" for purposes of and as defined under
Chapter 351;
WHEREAS_ on August 25, 2021 the District issued its First-Lien Hotel Revenue Bonds, Series 2021 A.
Second-Lien Hotel Revenue Bonds, Series 202 E B, and Combination Limited Sales Tax Revenue and
Third-Lien Hotel Revenue Bonds, Series 2021 C to finance the Project;
WHEREAS, the Project was open for initial occupancy on May 18,2023, and
WHEREAS, as a result of the foregoing, the City is entitled to receive Rebates for a period of 10 years
after the date the Project is open for initial occupancy;
NOW THEREFORE, IN CONSIDERATION OF THE ABOVE-REFERENCED CLAUSES, WHICH
ARE INCORPORATED HEREIN, THE PARTIES AGREE AS FOLLOWS:
1. Transfer of Revenues The City shall transfer, on a monthly basis, all Rcbatcs recci%ed from the
Comptroller in connection with the Project under Chapter 351 to the District, and the District shall use such
funds in connection with the Project for any lawful purpose authorized under Chapter 351.
2. General Provisions
(a) Notices. Any notice given hereunder by either Party to the other shall be in writing and
may be effected by personal delivery in writing or by registered or certified mail, return receipt requested
when mailed to the proper party, at the following addresses (email addresses are included for convenience
only):
(Remainder of Page Intentionally Left Blank)
4928-7986-3387v.2 63325-1 8;:7,'2025
CITY: The City of Baytown,Texas
2401 Market Street
Baytown,Texas 77520
Attn: City Manager
citvniana2er(Zbbavtown.oru
DISTRICT: Baytown Municipal Development District
2401 Market Street
Baytown, Texas 77520
Attn: General Manager
citvmanaQerambavtown ore
(b) Other Instruments. The City and the District, respectively, authorize the City Manager
and General Manager to execute any further instruments and documents as may become necessary or
convenient to effectuate and carry out the purposes of this Agreement or as may be required by the Texas
Comptroller of Public Accounts in connection with the payment of Rebates.
(c) Invalid Provision. Any clause, sentence, provision, paragraph, or article of this agreement
held by a court of competent jurisdiction to be invalid, illegal, or ineffective shall not impair, invalidate,
or nullify the remainder of this Agreement, but the effect thereof shall be confined to the clause, sentence,
provision, paragraph, or article so held to be invalid, illegal, or ineffective.
(d) Non-Waiver Provision. Nothing in this Agreement shall be construed as a waiver or
relinquishment by any of the Parties of their respective rights to claim any or all of the exemptions,
privileges, and immunities as may be provided by or allowed under the Constitution of the State of Texas
or any other applicable laws.
The Parties have signed this lnterlocal Agreement to become effective as of the first date written
above:
CITY OF BAYTOWN,TEXAS
By:
Jason Reynolds,City Manager
BAYTOWN MUNICIPAL DEVELOPMENT
DISTRICT
By-
Jason Reynolds,General Manager
4928-7986-3387v.2 63325-1 8:7:2025