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Ordinance No. 13,203ORDINANCE NO. 13,203 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE THE THIRD AMENDMENT TO THE INTERLOCAL AGREEMENT BETWEEN HARRIS COUNTY, CITY OF BAYTOWN, AND REINVESTMENT ZONE NUMBER ONE, CITY OF BAYTOWN, TEXAS, FOR HARRIS COUNTY'S PARTICIPATION IN THE TIRZ FOR THE EXTENSION OF JOHN MARTIN ROAD TO HUNT ROAD PROJECT, THE CONSTRUCTION OF HUNT ROAD FROM GARTH ROAD TO JOHN MARTIN ROAD PROJECT AND CONSTRUCTION OF SAN JACINTO BOULEVARD, IH 10 TO CEDAR BAYOU LYNCHBURG ROAD PROJECT; 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 the Third Amendment to the Interlocal Agreement between Harris County, Reinvestment Zone Number One, City of Baytown, Texas, and the City of Baytown for the County's participation in the TIRZ for the Extension of John Martin Road to Hunt Road Project, the Construction of Hunt Road from Garth Road to John Martin Road Project and Construction of San Jacinto Boulevard, IH 10 to Cedar Bayou Lynchburg Road Project. A copy of said amendment 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 f e City Council of the City of Baytown this the 26"' day of May, 2016. �7IEPPMN-H. DONCARLOS, ATTEST: iLZA- I:ETICIA BRYSCH, City erk a�� 0 A APPROVED AS TO FORM: �qrF OF'�� +P NACIO RAMIREZ, S i y Attorney Ri •KarenlFiles %City Council'.Ordinances\2016\May 26. ThirdAmendment2lnterlocal4CountyParticipationNTIRZProject .doc Exhibit "A" THE STATE OF TEXAS § § COUNTY OF HARRIS § THIRD AMENDMENT TO INTERLOCAL AGREEMENT BETWEEN HARRIS COUNTY, CITY OF BAYTOWN, AND BAYTOWN TAX INCREMENT REINVESTMENT ZONE NUMBER ONE THIS THIRD AMENDMENT TO THE INTERLOCAL AGREEMENT (this "Third Amendment "), dated and effective as of ' 2016, is made by and between the CITY OF BAYTOWN (the "City "), a municipal corporation and home -rule city of the State of Texas, principally situated in Harris County, acting through its governing body, the Baytown City Council (the "City Council "); HARRIS COUNTY (the "County ") acting through its governing body, the Harris County Commissioners Court (the "Commissioners Court "); and TAX INCREMENT REINVESTMENT ZONE NO. ONE, CITY OF BAYTOWN, TEXAS (the "TIRZ "), created by City action, pursuant to Chapter 311, Texas Tax Code. This Third Amendment is made pursuant to Chapter 791, Texas Government Code, and Chapter 311, Texas Tax Code. WHEREAS, the TIRZ was created by the City in 2001 for the purpose of financing certain public improvements described in the Project Plan and Reinvestment Zone Financing Plan adopted on behalf of the TIRZ, as amended (the "Project Plan"); and WHEREAS, the County, the City and the TIRZ entered into that certain Interlocal Agreement, approved by Commissioners Court on December 18, 2007 (the "Original Agreement ") providing for participation in the TIRZ by the County, amended by that certain First Amendment to Interlocal Agreement, approved by Commissioners Court on August 23, 2011 (the "First Amendment "), and by that certain Second Amendment to Interlocal Agreement, approved by Commissioners Court on March 26, 2013 (the "Second Amendment ") (the Original Amendment, the First Amendment, and the Second Amendment are hereafter collectively referred to as the " Interlocal Agreement "); and WHEREAS, by appropriate actions in 2014 and 2015, the TIRZ and the City have taken the requisite steps to add certain undeveloped land to the TIRZ, remove the land known as the "San Jacinto Mall" from the TIRZ, extend the term of the TIRZ, and amend the Project Plan to provide for such changes, and the County, the City and the TIRZ wish to amend the Interlocal Agreement again to provide for the described changes to the TIRZ and the Plan as more fully provided herein; now, therefore 533456 In consideration of the mutual covenants contained herein, the sufficiency of which is hereby acknowledged, the City, the County and the TIRZ agree as follows: 1. Capitalized terms used herein shall have the meanings provided for them in the Interlocal Agreement, unless otherwise defined or the context clearly provides otherwise. Solely for purposes of this Third Amendment, the following terms are defined as follows: "2014 Expansion Tract" means the land added to the TIRZ by the City by Ordinance No. 12,730, as more fully described in Exhibit A. "2014 Expansion Tract Base Year" is January 1, 2014. "Project Plan Amendments" means the Project Plan amendment approved by the City by Ordinance No. 12,730 on December 11, 2014, and the Project Plan amendment approved by the City by Ordinance No. 12,918 on August 13, 2015. "San Jacinto Mall Tract" means the land excluded from the TIRZ by the City by Ordinance No. 12,730 as more fully described in Exhibit B. 2. The Interlocal Agreement is amended to add the following terms and provisions: a. TIRZ adjustments and Project Plan Amendments. The County accepts and acknowledges (i) the exclusion of San Jacinto Mall Tract from the TIRZ; (ii) the addition of the right of way of San Jacinto Boulevard to the TIRZ; (iii) the addition of the 2014 Expansion Tract to the TIRZ; and (iv) the Project Plan Amendments. The Project Plan Amendments were accomplished with the consent and approval of the County as provided in the Interlocal Agreement. b. County non - participation. The County does not elect to participate in the TIRZ with respect to (i) the extension of the termination date of the TIRZ to December 31, 2045; and (ii) the expansion of the TIRZ boundaries in the 2015 amendment to the Project Plan. The County's participation in the TIRZ will terminate as of the original termination date of the TIRZ, being December 31, 2030, and the County Increment will not include any increment generated from the 2015 Expansion Tract. C. County participation. The County agrees that the San Jacinto Mall Tract shall not be included in the TIRZ, the base year value for the TIRZ shall be reduced as provided by Chapter 311 of the Texas Tax Code, and the County Tax Increment Participation will not include increment relating to the San Jacinto Mall Tract. The County further agrees to participate in the 2014 Expansion Tract, 533456 and will contribute the County Tax Increment Participation with respect to the 2014 Expansion Tract; provided that the Captured Appraised Value of the 2014 Expansion Tract shall be computed with respect to the 2014 Expansion Tract Base Year. The timing and manner of payment of the County Tax Increment Participation shall be accomplished as provided for other County payments in the Interlocal Agreement. The County shall not participate in the 2015 expansion of the TIRZ boundaries. d. County project particiRation. The parties agree that the County participation as described in the Interlocal Agreement is amended to provide that the County Tax Increment Participation shall be restricted for use only on the projects and in the amounts set forth below: Maximum Amount $ Extending John Martin Road to Hunt Road: $1,500,000 Construction of Hunt Road from Garth Road to John Martin Road $3,500,000 Construction of San Jacinto Boulevard, IH 10 to Cedar Bayou Lynchburg $9,500,0 TOTAL PROJECT COSTS $14,500,000 The costs set forth herein are estimates and shall not act as a limitation on any particular element of the costs for the specified projects, although the County participation Payment Cap shall not be increased in the event of cost overruns in specific categories of cost. In the event of bond financing, the County Tax Increment Participation may be dedicated to bond repayment. However, in that event the County Tax Increment Participation shall still be limited to the total amount specified above. Notwithstanding the above, the County Tax Increment Participation shall be limited to no more than 50 percent of the total cost (design, construction, permitting, right of way, and similar expenses) of the specified projects. e. TIRZ financial statements. The TIRZ and the City agree that the TIRZ will prepare and provide to the County an annual audited financial statement with respect to the TIRZ, separate from the City's annual audit, to be submitted immediately following the completion of the City's audit. 533456 3. Except as amended hereby, the Interlocal Agreement, as amended and restated in the First Amendment and Second Amendment, remains in full force and effect as of the effective date thereof. [Remainder of page intentionally left blank.] 533456 IN WITNESS WHEREOF, the City, the County and the TIRZ have made and executed this Third Amendment in multiple counterparts, each of which is original. HARRIS COUNTY By: David B. Turkel, Director Harris County Community Services Department APPROVED AS TO FORM: VINCE RYAN Harris County Attorney By: Douglas P. Ray, Assistant County Attorney 533456 CITY OF BAYTOWN By: Rick Davis, City Manager ATTEST: Leticia Brysch, City Clerk Approved as to form: Ignacio Ramirez, Sr., City Attorney REINVESTMENT ZONE NUMBER ONE, CITY OF BAYTOWN By: Name: Title: 533456 Exhibit A The 2014 Expansion Tract 533456 Boundary Description TIRZ No. 1 —Addition of 45 acre tract City of Baytown, Harris County The area to be included in the City of Baytown Tax Increment Reinvestment Zone No. 1 is approximately 45 acres and is located 1,220 feet south of the intersection of John Martin Road and Interstate Highway 10 East (eastbound) Frontage Road Right-of-Way (ROW). With the point of beginning being the northwest corner of 90.6741 acre tract (ABS 899 W.C. RR. CO. HIGHLAND FARMS TR 61E BLK 19) and east ROW of John Martin Rd.; Then generally east along north boundary of said 90.6741 acre tract to northeast corner of said tract and west boundary of City of Baytown TIRZ No. 1; Then generally south along east boundary of said 90.6741 tract and west boundary of City of Baytown TIRZ No. 1 to south easement of drainage channel (trib. to Goose Creek); Then generally west along south easement of drainage channel (trib. to Goose Creek) and City of Baytown TIRZ No. 1 Boundary to east ROW of John Martin Rd. and west boundary of said 90.6741 acre tract; Then generally north along east ROW of John to northwest corner of said tract and point of City of Baytown TIRZ No.1 2014 Amendment Rd., and west boundary of said 90.6741 acre tract ig of approx. 45 acre tract; 9of11 Map Exhibit San Jacinto Boulevard Right -Of -Way City of Baytown, Harris County City of Baytown TIRZ No. 1 2024 Amendment I Exhibit B The San Jacigio M Tract 533456 TIRZ No. 1— Excl City of The area to be excluded from the City approximately 112 acres in size and is situi Highway 10 East and Garth Road Rieht -of -w With the point of beginning being the sou heas JACINTO MALL TR C) and west ROW of Garth Rd.; SanjJacinj Mall Property % H rris Ounty ytowl Taxj Increment Reinvestment Zone No. 1 is the southWpst corner of the intersection of Interstate Then generally west along the south boundary cf said tract; Then generally north along the west bound: of 2.5 acre parcel (SAN JACINTO MALL LTD); Then generally west along south boundary bf salo 2.5 MALL LT F) to southwest corner of said parcel; Then generally north along west boundary of said 14.92 MALL R/P TR 1) to northwest corner of said 8.45 acre acre tract (HIGHLAND FARMS TR61A -2 BLK 11); Then generally east along north boundary o said 0.4 acre tract, and 3.261 acre tract (HIGHLAND F RM TR tract; Then generally north along east boundary o said south ROW of Interstate Hwy 10 East Frontage 1 0.752 acre parcel (ABS 1472 G. C. DAVIS SAN JACII Then generally east along south ROW of In1 boundary of said 0.752 acre parcel, and SAN parcel (ABS 1472 G. C. DAVIS CHIUS REST JACINTO MALL LT All to north corner of 0.99 Then southeast along north boundary of west ROW of Garth Road; of 12.4302 acre tract (ABS 899 W. C. RR. CO. acre tract to southwest corner of said acre tract to coincident southeast corner rcel, and 14.92 acre parcel (SAN JACINTO rcel, and 38.453 acretract (SAN JACINTO id coincident south boundary of 20.5195 tract, and south boundary of said 20.5195 19) to southeast corner of said 3.261 acre ct to northeast corner of said parcel and nd) and coincident northwest corner of LT K); Hwy 10 E st Frontage Road (eastbound) and north LL TF S J, J3, J2, J1, Lots E and A, and 0.966 acre END RESERVE), and 0.9926 acre parcel (SAN par el (SP N JACINTO MALL LT Al); acfe pate) to northeast corner of said parcel and Then generally south along west ROW of Garth Rd and east b undary of said 0.9926 acre parcel, 1.0414 acre parcel (ABS 1472 G. C. DAVIS JOHNNY CAR NOS EST RANT AMEND), 0.9904 acre tract (SAN JACINTO MALL R/P TR 1 -2), 38.453 acre tract (SAID JACINTO M LL R/P TR 1), 9.8 acre tract (SAN JACINTO MALL LT B), 0.9904 acre parcel (ABS 899 W C. R Co. ROADHOUSE BAYTOWN LT 1 BLK 1), to southeast corner of 12.4302 acre tract (SA JACI TOE ALL R C) and point of beginning of 112 acre tract, 7of11 City of Baytown TIRZ No. 1 2014 Amendment 8 ;f 11 City of Baytown TIRZ No.1 2014 Amendment i