Ordinance No. 4,52760828 -1
ORDINANCE NO. 4527
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE AND THE CITY CLERK TO ATTEST TO AN INDUSTRIAL
DISTRICT AGREEMENT WITH HOESCH TUBULAR PRODUCTS COMPANY
AND PROVIDING FOR THE EFFECTIVE DATE HEREOF.
DE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City COUnci1 of the City of Baytown,
9 -exas, hereby authorizes and directs the Mayor and City Clerk of
the City of Baytown to execute and attest to an Industrial
District Agreement with Hoesch Tubular Pr---�d uct s Company. A copy
of said agreement is attached hereto, marked Exhibit "A, " and
made a part hereof for all intents and purposes.
Section `: This ordinance shall take effect immediately
1-rom and after its passage by the City Ci- -,unci 1 of the City of
Baytown.
INTRODUCED, READ and PASSED by the affirmative vr_ite of the
City CI_{Uncil of the City of Baytown, this the 28th day of AUgUSt,
1986.
AE T O. UTTO, May---jr-
ATTEST:
/1 r �
EILEEN P. HALL, City Clerk
RANDALL B. STRONG, —Ci Attorney
60828 -1a
INDUSTRIAL DISTRICT AGREENIENT BETWEEN
HOESCH TUBULAR PRODUCTS CDvIPANY
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 Hoesch
Tubular Products Company, a Texas general partnership,
hereinafter referred to as "HTP" or "Company."
W I T N E 5 5 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 97Da, 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 lVo. 899, dated the 26th day of October, 19e7,
designating a part of its extraterritorial jurisdiction as an
Industrial District known as Baytown Industrial District No. 3;
and
WHEREAS, the City Council desires that those properties of
HTP described in Appendix A hereof (embracing in general HTP's
Plant properties) except for that which is located in the area
annexed as described in Appendix A, be included in the Baytown
Industrial District No. 3, and further desires to enter into this
contractual agreement with HTP for this purpose; and
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"NOTICE. PORTIONS OF THIS AGREEMENT ARE SUBJECT
O ARBI RATI N UNDER THE TEXAS GENERAL ARBITRATIDN
T.
WHEREAS, HTP's properties include both real and personal
property in its plant facilities, including any office faci €ities
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. 3 by Ordinance No. 899 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
may be necessary to annex in order to annex property owned by
third parties within the Industrial District that the City may
uecide to annex, in which case the City and Company shall agree
upon the part of the Company's property that may have to be
annexed. 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 guarantees 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-Nhatsoever 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
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60828 -1c
purport to levy ad valorem taxes against any real or personal
property owned, used, occupied, leased, rented, or possessed by
the Company within the Industrial District.
Z. 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) road or street
repairs, and (4) garbage pickup service. The City shall provide
proper fire protection, but shall not be obligated to purchase
any additional equipment or build any additional facilities in
order to provide fire protection to the Company, it being the
intent of the parties that the level of protection be that which
can be provided by the City as of the date of this contract, or
as improved thereafter.
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 will necessitate increased revenue to
provide expanded services and facilities. In view of this
increased need for revenue, beginning in 1986 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 oasis 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 Iimits or
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.it:
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.
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 property for the City.
3). Industrial District Payment: Amount paid by
the Company in tieu 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 = Full 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
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60828 -le
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
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. Determination of City and Industrial District fair
market values, in the above stated manner, shall be made by the
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 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.
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
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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, for 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 on 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
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 Hat 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
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M1. •
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. If any other municipality attempts to annex any land or
property owned, used, occupied, leased, rented or possessed by
the Company within the area designated as Baytown Industrial
District No. 3, 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 legal steps as may be
necessary or advisable under the circumstances. The cost of such
legal steps, including attorneys' fees (other 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
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 bey,nd 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
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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.
8. 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. 3, and
that development within the District may have an impact on 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, authori.ty 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
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.
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9. This Agreement shall be for a term of seven (7) years
beginning January 1, 1986, 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. 3, 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 shall
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 s h a u I d 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
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.
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SAVE AND EXCEPT FOR THE FOLLOWING TRACT WHICH HAS BEEN ANNEXED BY THE CITY
OF BAYTOWN:
Beginning at a point an the existing City Limit line, said point
being at the waters edge of the West bank of Cedar Bayou Stream,
also said point having a Texas plane coordinates value of x =
3,290,722.19 and y = 706,361.94;
TF£NCE, North 45' 58' 03" East along a line from the West bank of
Cedar Bayou Stream to the East bank for a distance of 303.74 feet
to &.paint;
T1 -ENCE, North 45' 58' 03" East for a distance of 461.23 feet to a
point for a corner, said point having Texas plane coorainates of
x _ 3,291,272.17 and y = 706,893.64;
THENCE, North 90" 00' 00" East along the South boundary line of a
40.0 acre tract of land situated in the John Steele Survey,
Abstract No. 227, Chambers County, Texas, and being out of a part
of a 357.611 acre tract of land called Tract No. One in a deed
from Theo Wilburn, et at to United States 5teel Corporation dated
March 2, 1967, recorded in volume 283, Page 205 of the Deed
Records, Chambers County, Texas, for a distance of 4.8 feet to a
point for a corner;
THENCE, North 00' 00' 00" East for a distance of 1,100.0 feet to
a point for a corner, said point being an the North boundary line
of the aforementioned 40.0 acre tract and havinq a Texas plane
coordinates x = 3,291,276.96 and v = 707,993.64;
THENCE, North 90' 00' 00" West along the North boundary line of
the aforementioned 40.0 acre tract for a distance of 188.76 feet
to a point for a corner, said point being the most Northwestern
corner of said 40.0 acre tract, also said point having Texas
Plane coordinates x = 3,291,088.20 and v a 707,933.64;
TF -ENCE, South 00' 00' 00" East along the West boundary line of
said 40.0 acre tract for a distance of 860.59 feet to a point for
a corner, said point having Texas plane coordinates x -
3,291,088.20 and y = 707,133.06;
THENCE, South 45' 58' 03" West for a distance of 652.47 feet to a
Point for a cnrner, said point being on the East bank of Cedar
Bayou Stream and having Texas plane coordinates x = 3,290,619.12
and y = 706,679.54;
TFEN , South 45' 58' 03" West alonq a line from the East bank of
Cedar Bayou to the West bank for a distance of 303.74 feet to a
point, said paint raving Texas plane coordinates of x
3,290,400.75 and y = 706,468.42;
THENCE, North 54' 07' 58" East along the waters edge of the West
bank and the City of Baytown existing City Limit line for a
distance of 147.15 feet to a point, said point having Texas plane
coordinates x = 3,290,519.99 and y = 706,554.64;
THENCE, South 46' 22' 39" East along the waters edge of the West
bank of Cedar Bayou Stream and existing City Limit line for a
distance of 279.31 feet to the Point of Beginning, containing
9.724 acres of land, more or less.
EXHIBIT "A"
HOESCH TUBULAR PRODUCTS COMPANY PROPERTY WITHIN! INDUSTRIAL DISTRICT
NO. 3, BEING:
A 40.0000 &ere tract of land situated in the Joln
Steele Purvey, Abstract MO. 277, Chambera County,
Texas, and beirka out of and & part of a 357.611 acre
tract of lan:! called 'Tact No. One in a Aq@A from "'hoc
wilburn. at 411 to united :states Ft eel Corporation
dated March 2, 1967, recorded in Volume 2P3 at Pace
205 of the Deed Records of Chamhers County, '"eras.
Said 40.nn00 acre tract of land is more particularly
described by metes and bounAs as follows, to -Mitt
P *c:r"Tr * +G at a 1/2" Pe -bar net for the Northwest
corner of this tract of land in the South and mast
line of the Continental Mil Co. In foot right -of -May
and from this point the Southeast corner of said
?57.611 acre tract of lance bears South Fn' 46' 30"
fast 5453.07 feet anA concrete control monumont vo.
230x1 -7 bears Fouth 54' 77, 44" East 4619.34 feet and
this PFGIr'NIl1q corner has a fitate Plane Coordinate
Value of Y ■ 7n7,99.A.35 art! Y • 3,201.0eP.2o
TFrNrr root with the Forth line of this tract and the
South line of acid 10 foot right -of -way a distance of
1456.44 foot to a 1/2" Pe -bar set for the Northeast
corner of this tract of land
T'+Fk'rr south with the Fast line of this tract of land
a distance of 1100.00 feet to a 1/2" Pe -tar set for
the southeast corner of this tract of land
TMrNrr west with the South line of this tract a
distance of 1272.47 feet to a 1/2" Pe -hAr set for a
corner of this tract of land,
'rwrmCr South 45' Sa' 03" F'est with the cc+utheest line
Of this tract at 269.81 feet set a 1!2" Pe -bar in line
for a corner of said lft foot right -of -way, in all a total
distance of 461.23 feet to an iron pipe set for the
south corner of this tract of land on the bank of
Cedar Payou ,
7vTv'rF with the South or southwest line of this tract
and the meanders of roAar 1Vyou the following courses
and distances: north S4' 00' wet:t 41.70 feet.. North
78' 08' West 252.77 feet to on iron pipe set for the
southwest or west eern*r of this tract of land.
T►a Wrr North 45' 511' 03" rant with the vorthwest or
West line of this tract of land a distance of 652.47
feet to a 1/2" Pe -bar set for a corner of thi s tract
of land in the rast line of said 10 foot right -of -way!
THENC!" Borth wit), the West 1f"# of this tract ant the
Fast line of said 10 foot right- of -wev a distance of
A40.50 feet to the PLACr (+e PrcI��w'TNI, cont ainina
within W0 boundaries 40.n0110 acres of lanA-
NOfF. ALI. PrAPINGS APr LAmPkrPr cPIn PrAP7Pr -c A %,— ALI,
CDOPrINATrc Writ TO FzaTr PLAvr rm-sni rr ey%7rv,
SO+r"H CFNTPAL ZONr, AS nvFlmrr% PY APTIrLr S3n(+A (+r IPWT
PfvISrn C?%'IL SrAWPS nr T14r F'rATF OV TMXF.
60828 -11
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 CUPLICATE ORIGINALS this the day of
. 1986.
ATTEST:
7�t"o,%ag&
DON CARROLL, Vice President
Administrations
ATTEST:
EILEEN P. HALL, City Clerk
10
HOESCH TUBULAR PRODUCTS
COMP
By • P f DT
Pr
CITY OF BAYTOM
MPETT O. HJTTO, Mayor