Ordinance No. 4,30851114 -4
ORDINANCE NO. 4308
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE AND THE CITY CLERK TO ATTEST TO AN INDUSTRIAL
DISTRICT AGREEMENT WITH AMOCO CHEMICALS CORPORATION AND
PROVIDING FOR THE EFFECTIVE DATE HEREOF.
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 and directs the Mayor and City Clerk of the City of Baytown to execute
and attest to an Industrial District Agreement with Amoco Chemicals Corporation. A
copy of said agreement is attached hereto, marked Exhibit "A," and made a part
hereof 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 14th day of November, 1985.
P-�12CWAESAA,
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EILEEN P. HALL, City Clerk
APPROVED:
ANDALL B. STRONG, y Attorney
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EXHIBIT "A"
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INDUSTRIAL DISTRICT AGREEMENT BETWEEN
AMDCO CHEMICALS CCRPCRAT I CN
AND
THE CITY OF BAYTOWN, TEXAS
This Agreement is made and entered into between the City of
Baytown, Texas, a municipal corporation in Harris County, Texas,
hereinafter also referred to as "Baytown" and "City," and Amoco
Chemicals Corporation, a Delaware Corporation with a permit to
engage in business in the State of Texas, hereinafter referred to
as "Amoco" or "Company."
W I T N E S S E T H:
WHEREAS, Baytown has a history of cooperating with
industries located within and near its city limits; and
WHEREAS, the City Council of the City of Baytown is of the
considered opinion that such cooperation results in economic
growth and stability for Baytown and its adjacent areas; and
WHEREAS, the Texas Legislature in 1963 adopted the "Muni-
cipal Annexation Act," Article 970a, Revised Civil Statutes of
Texas, which provides for the creation of Industrial Districts
within the extraterritorial jurisdiction of cities; and
WHEREAS, pursuant to such Municipal Annexation Act and in
the interest of further cooperation with industry and the
economic enhancement of Baytown, the City of Baytown enacted
Ordinance No. 893, dated the 28th day of September, 1967,
designating a part of its extraterritorial jurisdiction as an
Industrial District known as Baytown Industrial District No. 2;
and
WHEREAS, the City Council desires that those properties of
Amoco described in Appendix A hereof (embracing in general
Amoco's Plant properties) except for that which is located in the
1
"NOTICE. PORTIONS OF THIS AGREEMENT ARE SUBJECT TO
ARBITRATION UNDER THE TEXAS GENERAL ARBITRATION ACT."
51114 -4c
area annexed as described in Appendix A, be included in the
Baytown Industrial District No. 2, and further desires to enter
into this contractual agreement with Amoco for this purpose; and
WHEREAS, Amoco's properties include both real and personal
property in its plant facilities, including any office facilities
used in direct support of these operations and either situated
contiguous thereto or separated by public roads; NOW THEREFORE,
In consideration of the promises and of the mutual covenants
and agreements herein contained, it is agreed by and between the
Company and the City of Baytown as follows:
1. The City of Baytown hereby agrees that all of the land
and improvements thereon owned, used, occupied, leased, rented or
possessed by the Company within the area designated as Baytown
Industrial District No. 2 by Ordinance No. 893 and amendments
thereto shall continue its extraterritorial status as an
Industrial District and shall not be annexed by the City of
Baytown nor shall the City attempt to annex, or in any way cause
or permit to be annexed any of such property during the term of
this Agreement, except for such parts of Company's property as
maybe necessary to annex in order to annex property owned by
third parties within the Industrial District that the City may
decide to annex. The City further agrees, promises and
guarantees that during the term of this Agreement the City of
Baytown shall not apply or purport to apply any ordinance, rule
or regulation to such property except as relating to noise,
vibration, drainage or flood control, and pollution performance
standards as hereinafter provided. Specifically, but without
limitation, the City agrees, promises and guarani -ees that it will
not extend to said property any ordinance, rules or regulation
(a) governing plats and the subdivision of land; (b) prescribing
any zoning, building, electrical, plumbing or inspection code or
codes; and (c) attempting to exercise in any manner whatsoever
control over the conduct of the Company's business thereof. The
City further agrees that during the term of this Agreement it
will not levy or purport to levy ad valorem taxes against any
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real or personal property owned, used, occupied, leased, rented,
or possessed by the Company within the Industrial District.
2. It is further agreed that during the term of this
Agreement the City of Baytown shall not be required to furnish
municipal services to the Company's Baytown Plant, which are
ordinarily and customarily supplied by the City to property
owners within its boundaries, except as provided by mutual
agreement. Specifically, but without limitation, it is agreed
that the City of Baytown shall not be required to furnish (1)
sewer or water service, (2) police protection, (3) fire
protection (4) road or street repairs, and (5) garbage pickup
service.
3. The Company and the City of Baytown recognize that the
Company should pay a share of the needed revenue for operating
the City and providing services for its residents. It is further
recognized that during the next succeeding seven years the City
of Baytown will experience population growth as a result of
industrial expansion which wi11 necessitate increased revenue to
provide expanded services and facilities. In view of this
increased need for revenue, beginning in 1985 the Company agrees
to pay the City of Baytown an Industrial District payment on or
before December 31 of each year during the term of this Agreement
an amount to be calculated on the basis of the below stated
formula:
A. In applying the below stated formula, the following
definitions shall apply;
1). Full Value Payment: The fair market value as
determined by the City, of all of the Company's
Baytown Plant within the corporate limits or
extraterritorial jurisdiction of the City, X .35 X
the property tax rate per $100.00 of assessed
valuation adopted by the City Council for the City
of Baytown for financing the fiscal year in which
such December due date falls.
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2 ) . Tax Payment: The amount paid by the Company
to the City of Baytown as ad valorem taxes on that
portion of the Company's Baytown Plant within the
City limits. The tax payment shall be based on
either the value determined by the Harris County
Appraisal District or such other Appraisal District
as may succeed the Harris County Appraisal District
in assessing the Company's property for the City.
3). Industrial District Payment: Amount paid by
the Company in lieu of taxes pursuant to this
Agreement, which amount shall not include the tax
payment paid by the Company.
B. The Company's Industrial District payment shall be
calculated each year in the following manner using the above
definitions:
Industrial District Payment W l=ull Value Payment
minus Tax Payment.
C. The appraised value for tax purposes of the annexed
portion of land, improvements, and tangible personal property
shall be determined by the Harris County Appraisal District. The
parties hereto recognize that said District has no authority to
appraise the land, improvements, and tangible personal property
in the unannexed area for the purpose of computing the Industrial
District payments hereunder. Therefore, the parties agree that to
determine the fair market value of all of the Company's Baytown
Plant for the purpose of calculating the Industrial District
Payment in the manner described above, the appraisal of the land,
improvements, and tangible personal property in the Company's
Baytown Plant shall be conducted by the City of Baytown, and/or
an independent appraiser of the City's selection, and at the
City's expense. This value shall be used in determining the full
value payment described above. Nothing contained herein shall
ever be construed as in derogation of the authority of the Harris
County Appraisal District to establish the appraised value of
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land, improvements, and tangible personal property in the annexed
portion for ad valorem tax purposes.
D. It is agreed by the parties that the City has the power
and shall create an Industrial District Review Board which shall
carry out the duties designated to it in this Agreement.
4. With the exception of the annual payment for 1985,
annual payments under this Agreement shall be calculated by the
City of Baytown in the above stated manner. For 1985, as the
Company did not have any property within the corporate limits of
Baytown, the Company's tax payment will be zero, and the
Company's Industrial District payment will be 35% of what the
Company would pay in taxes if all of the Company's Baytown Plant
had been within the corporate limits of Baytown on January 1,
1985, and calculated using the tax rate for the 1985 -1986 budget
year of the City of Baytown.
Determination of City and Industrial District fair market
values, in the above stated manner, shall be made by City of
Baytown and approved by the Industrial District Review Board.
Such final fair market value as approved by the Industrial
District Review Board shall be subject to exception by the
Company and should the Company take exception to the fair market
value of such property as determined by the Board and should the
Board and the Company be unable, through negotiations, to reach a
mutually acceptable fair market value on or before September 1 of
the calendar year in which such December 31 due date falls, then
either party may request determination of such disagreement by a
mutually acceptable arbitrator. The costs of such arbitrator
shall be shared equally by the City of Baytown and the Company,
and such arbitrator's determination shall be final and binding
unless either party within thirty (30) days after such
arbitrator's determination is received by the parties, petitions
for a Declaratory Judgment to the Civil District Court of Harris
County, Texas, as provided for by Section 5 hereof.
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Should the parties be unable to agree upon a mutually
acceptable arbitrator, each party shall nominate one arbitrator
and the arbitrators so nominated by the parties shall select a
third arbitrator who will act with them as a three member
arbitration panel to decide the disagreement between the parties
by the concurrence of a majority of such panel. Such arbitrator
or arbitration panel shall determine whether the fair market
value of such property is as contended by the Industrial District
Review Board, by the Company, or some intermediate value. The
cost of such arbitration panel shall be shared equally by the
City of Baytown and the Company, and such panel's determination
shall be final and binding unless either party within thirty (30)
days after such determination is received by the parties,
petitions for a Declaratory Judgment to the Civil District Court
of Harris County, Texas, as provided for by Section 5 hereof.
In determining the fair market value of property and
improvements as used herein, the Industrial District Review Board
and any arbitrator or arbitration panel shall base its deter-
mination on the replacement cost of comparable present day
facilities considering and giving effect to sound engineering
valuation practices relative to service life, life expectancy,
process and functional obsolescense.
5. If any disagreement arises between the parties
concerning the interpretation of this Agreement or the decisions
of the arbitrator or arbitration panel provided for hereunder, it
is agreed that either of the said parties may petition any Civil
District Court of Harris County, Texas, far a Declaratory
Judgment determining said controversy and the cause shall be
tried as other civil causes in which the Plaintiff must establish
by a preponderance of the evidence the correct interpretation of
valuation. Pending final determination of said controversy, the
Company shall pay to the City of Baytown an the due date the same
amount which is paid to the City for the last preceding period
as to which there was no controversy concerning the amount owed
by the Company to the City. The Company agrees to tender the
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amount of potential liability to the registry of the Civil
District Court, Harris County, Texas, pending final determination
of the controversy beyond any further appeal.
6. All payments to the City of Baytown provided herein
shall be made to the City at the City Hall in Baytown, Texas. If
any payment is not made on or before the due date, the same
penalties, interest, attorneys' fees and costs of collection
shall be recoverable by the City as would be collectible in the
case of delinquent ad valorem taxes; provided, however, that this
sentence shall not apply to any payment which may be found to
have been deficient as the result of proceedings provided for in
Section 5 hereof. The City shall have a lien upon the Company's
property upon any delinquency in Industrial District payment.
7. 1f any other municipality attempts to annex any Iand or
property owned, used, occupied, leased, rented or possessed by
the Company within the area designated as Baytown Industrial
District6Vo. 2, or if the creation of any new municipality should
be attempted so as to include within its limits such land or
property, the City of Baytown shall, with the cooperation of the
Company, seek injunctive relief against any such annexation or
incorporation, and shall take such other IegaI steps as may be
necessary or advisable under the circumstances. The cost of such
legal steps, including attorneys' fees ( a t h e r than the City
Attorney) retained by mutual agreement of the parties, shall be
paid by the Company. Should the City refuse or fail to comply
with its obligations under this paragraph, the Company shall have
the right to seek such legal or equitable relief as it deems
necessary or advisable in its own name or in the- name of the City
and, if necessary, the Company may join the City as a party to
such legal action.
If the City and the Company are unsuccessful in preventing
any such attempted annexation or incorporation, the Company shall
have the right to terminate this Agreement as to any property so
annexed or incorporated retroactive to the effective date of such
annexation or incorporation, or the Company may continue this
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Agreement in full force and effect; provided, however, that the
Company's right to terminate this Agreement must be exercised
within thirty (30) days after judgment upholding such annexation
or incorporation becomes final beyond further appeal. If any
payment is made by the Company to the City of Baytown after the
effective date of such annexation or incorporation and if the
Company elects to terminate this Agreement as above provided,
then as to such property so annexed or incorporated such payment
shall be refunded by the City to the Company.
B. The City of Baytown and the Company mutually recognize
that the health and welfare of Baytown residents require
adherence to high standards of quality in the air emissions,
water effluents and noise, vibration and toxic levels of those
industries located in the Baytown Industrial District No. 2, and
that development within the District may have an impact an the
drainage of surrounding areas. To this end, the Company and the
City agree that the same standards and criteria relative to
noise, vibration and toxic levels and drainage and flood control
which are adopted by the City and made applicable to portions of
the City adjacent to the Company's Baytown Plant shall also be
applicable to the plant within the Industrial District. The
Company further agrees to abide by the rules and regulations and
the permits issued to it by the Environmental Protection Agency,
the Texas Water Commission, the Texas Air Control Board, and any
other governmental agency having legal authority in these
matters. In this connection, it is recognized between the
parties that these agencies are charged with the responsibility
for enforcing air and water quality standards, and it is agreed
that so long as the Environmental Protection Agency, the Texas
Water Commission, the Texas Air Control Board, and other related
agencies are charged with such responsibility, nothing contained
herein shall be construed to impose upon the City of Baytown any
responsibility, authority or right, by termination of this
Agreement or otherwise to enforce any standards relative to air
and water quality as are established by law, rule, regulation or
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permit. it is also agreed that no violation of any standards or
criteria adopted by the City shall be a reason for termination of
this Agreement.
9. This Agreement shall be for a term of seven (7) years
from the date this instrument is executed and for such additional
period or periods of time as provided by the Texas Municipal
Annexation Act and mutually agreed upon the parties hereto.
10. The benefits accruing to the Company under this
Agreement shall also extend to the Company's "affiliates" and to
any properties owned or acquired by said affiliates within the
area encompassed by Industrial District No. 2, and where
reference is made herein to land, property and improvements owned
by the Company, that shall also include land, property and
improvements owned by its affiliates. The word "affiliates" as
used herein shall mean all companies with respect to which the
Company directly or indirectly through one or more intermediaries
at the time in question, owns or has the power to exercise the
control over fifty (50%) percent or more of the stock having the
right to vote for the election of directors.
11. It is agreed by the parties to this Agreement that only
full, complete and faithful performance of the terms hereof snail
satisfy the rights and obligations assumed by the parties and
that, therefore, in addition to any action at law for damages
which either party may have, the Company may enjoin the enactment
or enforcement of any ordinance or charter amendment in violation
of, or in conflict with, the terms of this Agreement and may
obtain such other equitable relief, including specific
performance of the Agreement, as is necessary to enforce its
rights. It is further agreed that should this Agreement be
breached by the Company, the City shall be entitled, in addition
to any action at law for damages, to obtain specific performance
of this Agreement and such other equitable relief necessary to
enforce its rights. However, nothing contained herein shall be
construed to give the City any right to terminate this Agreement
on the basis of the Company's violation of any standard or
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criteria relative to air emissions, water effluents, noise,
vibration, or toxic levels, or drainage and flood control
established by any law, ordinance, rule, regulation or permit.
12. In the event the terms and conditions of this Contract
are rendered ineffective or their affect changed by the
Constitution, any Legislative changes, the implementation of the
Texas Property Tax Code, or any interpretation of the Texas
Property Tax Code by the State Tax Assessment Board, both
parties mutually agree that said Contract shall be renegotiated
to accomplish the intent of this Agreement.
EXECUTED IN DUPLICATE ORIGINALS th i s the day of
, 1985.
ATTEST:
SECRETARY
ATTEST:
EfCEEN P. HALL, City Clerk —
10
AMDCO to --fEMI CAL S CORPORATION
By
CITY OF BAYTCW,4
ENNETT U. HUTTO, vlayor
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EXHIBIT "A"
AMOCO PROPERTY WITHIN BAYTOVIN INDUSTRIAL DISTRICT NO. 2:
BEING a 51.1968 acre tract of land out of the Gulf Oil Products Co. 650.78 acre
tract of land out of the William Eloodgood League, Abstract Humber 4, Barris
County, Texas and being sore particularly described by owtes and bounds as
follows :
COl4ENCING at the point of intersection of the West right- of-way line of
T i A.O. (Dayton -Goose Creek) Railroad 'vial the Nortb right- of-way line
of Interstate 10;
THENCE Worth 87`06'00" West with the Borth right- of-way line of Interstata
10 a distance of 383.57 feet to point of curvature of a curve to the left;
THENCE in a Westerly Direction continuing with the North right- cf-way line
of Interstate 10, a curve to the left having a radius of 3,274.04 feet, a
curvilinear distance of 1,546.67 feet to the point of tangency of said curve;
THENCE South 64'05'00" West continuing with the North right-of -way line
of Interstate 10 a distance of 1,205.04 feet to a point;
THENCE forth 46'41.28" West a distance of 668.67 feet to a point;
THENCE North 30'04100" West a distance of 177.15 feet to the POINT OF
BEGINNING;
THENCE continuing North 30`04'00" West a distance of 49.14 feet to a point;
THENCE South 80'30'50" West a distance of 657.54 feet to a point;
THENCE North 09'29'10" West a distance of 1,000.29 feet to a point;
THENCE South
80'30'50"
West a
distance of
30.00
feet
to
a point;
THENCE North
09029910"
West a
distance of
20.00
feet
to
a point;
Tmmz. North 80030150" East a distance of 30.00 feet to a point;
THENCE North 09029'10" West a distance of 174.41 feet to a point;
THENCE forth 80'30'50" East a distance of 2,236.50 feet to a point;
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Fag* 2
TU=Z North 61029'18"
East
a
distance
of
107.77 feet to a point;
TZ=Z- South 09.29110"
East
a
distance
of
31.00 feet to a point;
TIMICE South 52.381133"
Nest
a
distance
of
526.67 feet to a point;
TBEECE South 80'30150"
West
a
distance
of
87.00 feet to a point;
ZwnrE South 09'29'10"
East
a
distance
of
176.50 feet to a point;
SEMI South 80'30'50"
Vest
a
distance
of
55.00 feet to a point;
TEUM South 09'29'10"
East
a
distance
of
244.40 feet to a point;
T1N9NU North 80'30130"
East
a
distance
of
23.40 feet to a point;
THENCE south 09029110"
East
a
distance
of
578.60 feet to a point;
S8EliCE South 80'30'50"
West
a
distance
of
1,051.88 feet to the POINT
or 3ECI1 DC9 enclosing a tract of land containing 51.1968 acres, sore
or less.
AMOCO PROPERTY ANNEXED BY THE CITY OF BAYTOWN:
BEING a 17.9011 acre tract of land out of the Gulf Oil Products Company 650.78
acre tract of land out of the William Bioodgood League, Abstract Number
4, Harris County. Texas and being more particularly described by metes and
bounds as follows:
COM9ENCING at the point of intersection of the West right -of -way line
of T i N.O. (Dayton -Goose Creek) Railroad with the North right -of -way
line of Interstate 10;
THENCE North 87.06'00" West with the North right- of-way line of Inter-
state 109 a distance of 383.57 feet. to point of curvature'of a curve
to the left;
THENCE in a Westerly direction continuing with the North right -of -way
line of Interstate 10. a curve to the left having a radius of 3,274.04
feet, a curvilinear distance of 1,646.67 feet to the point of tangency
of said curve;
THENCE South 64'05'00" West continuing with the North right -of -way line
of Interstate 10 a distance of 1,205.04 feet to a point;
Slli4 -4n
Page 3
THENCE North 46.41128" West a distance of 668.67 feet to a point;
THENCE North 30'04'00" West a distance of 226.29 feet to a point;
THENCE South 80.30'50" West a distance of 657.54 feet to a point;
THENCE North 09.29110" West a distance of 1,000.29 feet to a point;
THENCE South 80'30'50" West a distance of 30.00 feet to a point;
THENCE North 09029'10" West a distance of 20.00 feet to a point;
THENCE North 80'30'50' East a distance of 30.00 feet to a point;
THENCE North 09029'10" West a distance of 1,031.71 feet to a point;
THENCE South 80.30150" West a distance of 131.00 feet to the POINT OF
BEGINNING of the safd 17.9011 acre tract;
THENCE continuing South 80030'50" !lest a distance of 891.00 feet to
a point;
THENCE North 09.29'10" West a distance of 854.70 feet to a point;
THENCE North ;80 *30'500 East a distance of 919.00 feet to a point
situated in the existing North property line;
THENCE South 09.29110" East a distance of 500.70 feet to a-point;
THENCE North 80030'50" East a distance of 24.00 feet to a point;
THENCE South 09029'10" East a distance of 45.00 feet to a point;
THENCE South 80'30150" West a distance of 24.00 feet to a point;
THENCE South 09.29'10" East a distance of 67.00 feet to a point;
THENCE South 80.30'50" West a distance of 28.00 feet to a point;
THENCE South 09029110" East a distance of 242.00 feet to the POINT
OF BEGINNING, enclosing a tract of land containing 17.9011 acres,
more or less.