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.
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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
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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
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