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HomeMy WebLinkAboutOrdinance No. 16, 462 (Item 7.f.) ORDINANCE NO. 16,462 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 AN INTERLOCAL AGREEMENT WITH THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT TO RECEIVE AND ADMINISTER MDD FUNDS THROUGH A UNIFIED CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM; 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 Council of the City of Baytown, Texas, hereby authorizes the City Manager to execute and the City Clerk to attest to an Interlocal Agreement with the Baytown Municipal Development District ("MDD") to receive and administer MDD funds through a unified Chapter 380 economic development program. 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 14"day of May, 2026. C RLES JO S yor A TEST: jP —JI , E ANGELA 91KSON, City C1erW l ^ t Pa.RN�� 'bay��r� APPROVED AS TO F RM: SCOTT LE iiy tiriorciey RAOrdinances and Resolutions.Ordinance Drafts 2026-05-14 Ord-MDD Interlocal Agt-380-SL.docx Exhibit "A" INTERLOCAL AGREEMENT BETWEEN THE CITY OF BAYTOWN, TEXAS AND THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT This Interlocal Agreement (the "Agreement") is made to be effective as of the day of , 202_, by and between the City of Baytown, Texas, a Texas home rule municipality(the "City"), and the Baytown Municipal Development District, a municipal development district created under Chapter 377, Texas Local Government Code (the "MDD"). The City and the MDD may be referred to individually as a "Party" or collectively as the "Parties." RECITALS A. The City of Baytown is a Texas home-rule municipality duly authorized to exercise all powers conferred upon home-rule municipalities under the Texas Constitution and applicable law. B. The MDD is a municipal development district created by the City pursuant to Chapter 377, Texas Local Government Code, for the purpose of promoting economic and community development within the City. C. Pursuant to Chapter 377, Texas Local Government Code, the MDD has the authority to impose sales and use taxes within the boundaries of the City for the purposes authorized under that chapter. D. Section 791.003(4)(A), Texas Government Code, provides that a municipality, such as the City, is a "local government" for purposes of the Interlocal Cooperation Act, which Act has been codified as Chapter 791, as amended, Texas Government Code ("Chapter 791"). E. Section 791.003(4)(A), Texas Government Code, provides that a political subdivision of the State of Texas, such as the MDD, is a "local government" for purposes of Chapter 791. F. Section 791.011(a), Texas Government Code, provides that "[a] local government may contract or agree with another local government ... to perform governmental functions and services in accordance with [Chapter 791]." G. The Parties desire to enter into this Agreement to authorize the City to provide, administer, and implement tax abatements, economic incentives, and related programs funded in whole or in part by the MDD's sales and use tax revenues, without the necessity of further action or approval by the MDD Board, in furtherance of the economic and community development purposes of the MDD and the City. H. The adoption of this Agreement is found and determined to be in the best interest of the residents of the City and in furtherance of the public purposes of both the City and the MDD. ACCORDINGLY, in consideration of the foregoing, the Parties agree as follows: SECTION 1: AGREEMENT OF THE PARTIES A. Authorization The MDD hereby authorizes the City to provide, administer, and implement abatements or economic development incentives related to and funded from MDD Sales and Use Tax Revenues. The City may approve and execute any such abatement or economic incentive, including entering into any related agreement with a third party, without the necessity of any further action, approval, resolution, or vote by the MDD Board. 2. Scope The City is authorized to: (a) negotiate, approve, and execute tax abatement agreements and economic development incentive agreements funded in whole or in part by MDD Sales and Use Tax Revenues; (b) grant rebates, reimbursements, or other economic incentives to eligible persons or entities using MDD Sales and Use Tax Revenues, as permitted by applicable law; (c) take all actions necessary or convenient to carry out the purposes of this Agreement; and (d) take any other action authorized by applicable law in furtherance of the economic development purposes of the MDD. 3. No Further MDD Board Action Required Any action taken by the City Council in approving an abatement or economic incentive under this Agreement shall be deemed to constitute action by both the City and the MDD Board, and no separate or additional resolution, approval, or meeting of the MDD Board shall be required 4. Entire Agreement This Agreement contains the entire agreement between the Parties pertaining to the subject matter hereof and fully supersedes all prior agreements and understandings between the Parties pertaining to such subject matter. 5. Incorporation of preamble and recitals The recitals contained in the preamble are found to be true, and such recitals are made a part of this Agreement for all purposes and are adopted as a part of the judgment and findings of the respective governing body of each Party. 6. Governing Law This Agreement shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. 7. Appropriations The Parties acknowledge that obligations under this Agreement are payable only from funds appropriated or available for the purpose of this Agreement, consistent with applicable law. IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the date and year last written below. CITY OF BAYTOWN BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT JASON E. REYNOLDS CHARLES JOHNSON City Manager President ATTEST: ATTEST: ANGELA JACKSON ANGELA JACKSON City Clerk Assistant Secretary APPROVED AS TO FORM: APPROVED AS TO FORM: SCOTT LEMOND SCOTT LEMOND City Attorney General Counsel