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CC Resolution No. 2367RESOLUTION NO. 2367 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE MAYOR TO SEND SBE CHEMICAL PARTNERS I LLC, A LETTER OF THE CITY COUNCIL'S INTENT TO ESTABLISH A REINVESTMENT ZONE AND TO CONSIDER GRANTING TAX ABATEMENT AGREEMENTS THEREIN SHOULD ALL OF THE REQUIREMENTS OF BOTH THE PROPERTY REDEVELOPMENT AND TAX ABATEMENT ACT AND THE GUIDELINES AND POLICIES ADOPTED BY COUNCIL BE SATISFIED; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** WHEREAS, SBE Chemical Partners I LLC, ( "SBE ") has submitted an Application for Tax Abatement in Baytown, Texas, which is attached hereto as Exhibit "A" and is incorporated herein for all intents and purposes; and WHEREAS, the application submitted by SBE appears to meet the requisite guidelines and criteria of the City and the Property Redevelopment and Tax Abatement Act (the "Act "); and WHEREAS, based upon such application, the City of Baytown will initiate the process to designate the area described in Exhibit "A" as the Raven Reinvestment Zone; and WHEREAS, should the City Council consider that the improvements proposed by SBE are feasible and practical and will be a benefit to the land to be included in the zone and to the City of Baytown after the expiration of any tax abatement agreement hereinafter granted, the City Council may establish a reinvestment zone after a public hearing on the same; and WHEREAS, should the Raven Reinvestment Zone be established, the City Council may execute a tax abatement agreement with Texas Petrochemicals; and WHEREAS, the City Council finds that it is in the best interest of the City at this time to continue the process (i) to establish the Raven Reinvestment Zone and (ii) to enter into tax abatement agreements should all of the guidelines and criteria of the City and the Act be satisfied; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the findings of the City Council and its actions approving this resolution taken at this council meeting are hereby approved and adopted. Section 2: That the Mayor is hereby authorized to send SBE a letter expressing the City Council's intent (i) to establish a reinvestment zone within the area described in Exhibit "A" and (ii) to consider granting tax abatement agreements therein should all of the requirements of both the Act and the guidelines and policies adopted by the City Council be satisfied. Section 3: This resolution 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 23'd day of July, 2015. /J 4TS RY SCH, Clerk APPROVED AS TO FORM: A�7 NACIO )RAMIREZ, SR. 'ty Attorney R: KarenTiles ^City CoundhResolutions\2015Vuly 23', TaxAbatementApplicationSBEChemicalPartners.doc • .S o° • u, •O n Ila R: KarenTiles ^City CoundhResolutions\2015Vuly 23', TaxAbatementApplicationSBEChemicalPartners.doc Exhibit "A" Page 1 APPLICATION FOR TAX ABATEMENT IN BAYTOWN, TEXAS The filing of this document acknowledges familiarity and conformance with Guidelines and Criteria for Reinvestment Zones. This application will become part of the agreement and any knowingly false representations will be grounds to void the agreement. An original copy of this request should be submitted to City Manager, P.O. Box 424, Baytown, Texas 77522 -0424, if property is located inside the corporate limits of Baytown. APPLICANT INFORMATION Date: July 17, 2015 Company Name: SBE Chemical Partners I LLC Address: 24044 Cinco Village Center Blvd., Suite 100 City: Katy State: TX Zip Code: 77494 Corporation: X❑ Partnership: ❑ Proprietorship: ❑ PROJECT INFORMATION Type of Facility See Guidelines X El El Manufacturing Class "A" Office Space LEED® Certified Office Building Research & Development Service & Distribution Regional Entertainment & Recreation Other Basic Industry Proposed Project Location Address and Legal Description:_ 9.300 Needlepoint Road, Baytown, TX 77521 Attach map showing proposed site. Jurisdictions: School District College District City or Town Goose Creek Lee College Baytown Describe Product or Service: This Petroleum Chemical Plant will produce approximately 100,000 tonnes of olefins per year for sale and delivery via pipeline, rail Page 2 and truck offtake. Residual products will include 8,000 tonnes of liquid hydrocarbons for sale on a spot basis to various customers. Project Description: Stone Bridge Energy Partners LLC and Evonik Corporation have established a joint venture company - SBE Chemical Partners I LLC (Raven). Stone Bridge has been performing development work on Raven, which would be a 100,000 tonnes per year olefins production facility to be designed and built by Quanta Corp operating affiliates in Baytown utilizing commercialized and proven technology; involving creditworthy stakeholders (feedstock suppliers, pipeline operators and off takers), and projected to complete development, achieve Financial Close and start construction in early 2016. Attach statement fully explaining project, describe existing site and improvements and provide list of improvements and fixed machinery and equipment for which abatement is requested (Refer to Guidelines, Section 3). X❑ NEW PLANT ECONOMIC INFORMATION Construction Estimates: ❑ EXPANSION ❑MODERNIZATION Start Month/Year: 1/1/2016 Construction Man Years: 258 Completion Date: 7/1/2017 Peak Construction Jobs: 175 If Modernization: Estimated Economic Life of Existing Plant: Years Added Economic Life from Modernization: Years Permanent Employment Estimates (PEE'S) Current Plant Employment: 0 Number of Plant Jobs: ❑ Retained or 30 Created At start/opening: 30 in year: 2017 5 years into operation: 30 in year: 2022 Estimated Appraised Value on Site Personal Improvements Land Value January 1 Preceding 0 _ 0 .3MM Abatement Agreement: Page 3 Est. Value of Improvements: 5MM 130MM .6MM Est. Value of Abated Properties 5MM 95MM .7MM After Abatement Expires: Value upon Completion of Project Personal Property and Project Improvements Not Subject To Abatement: 5MM TBD .7MM VARIANCE Is the applicant seeking a variance under Section 3 (f) of the guidelines? ❑ YES X❑ NO If "YES ", attach required supplementary information. OTHER ABATEMENTS. Has company made application for abatement of this project by another taxing jurisdiction or nearby counties? ❑YES X ❑NO. If "YES" please provide dates of application, hearing dates if held or scheduled, name of jurisdictions and contacts, and letter of intent. COMPANY REPRESENTATIVE TO BE CONTACTED: NAME: Thomas M. Suffield TITLE: EVP & Partner ��� Signature of Company Official Robert Toker, Partner Name & Title of Company Official ADDRESS: 24044 Cinco Village Center Blvd. Suite 100 CITY: Katy STATE: TX ZIP -CODE: 77494 TELEPHONE: 713 805 1296 c Q > @ � � 0 Ll � 0 � � � m c .k � � ( �2 z z | § | ui � > .} < � cc & .| §( � Bk � �� ° ■ ■ § ■ .� � , . . 1 All ID •,( � | §§ ' 2�t§ •, � � |- � | � | | | | |.| � • L > r•1 a% > L O LL O m J s t m LU a) aA O O m c E a� L a CL O U c N m L O LL O m J t m W _N 4A O O (D m C E O L d m m L Q Q) N m Q1 J a m E X O L Q Q Q .3 CL a� O 'i C 4J m L O LL O m J t m W GJ 4,0 O O C7 m C E L (1 Q E m x w c M a m +r c v N L CL N x w c N fC U Ir � -I t 7� ol* 0.1 N. 4 LU AL dw el i `W ; Ln CL.. 0 X W C GJ CC k � \ 9 tD in / § � f m \ § ( 2 2 / k 3 ) 2 \ � ) \ \ \ ( k !!� !|7 $f! E #! k ƒ` � \� png)13!nb I 22 ] £ #$ !$ §{ aE )$ Ek ki 4£ !7 =! : § Ln e $ m 0 Ll @ @ � � � � � � a v § �