Ordinance No. 6,884931209 -20
ORDINANCE NO. 6884
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE AND THE CITY CLERK TO ATTEST TO AN INDUSTRIAL
DISTRICT AGREEMENT WITH MOBLEY COMPANY, INC.; 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 and directs the Mayor and City Clerk of
the City of Baytown to execute and attest to an Industrial District
Agreement with Mobley Company, Inc. 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 9th day of December,
1993.
PETE C. AL O, Mayor
ATTEST:
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EILEEN P; HALV, City Clerk
POACIO RAMIREZ, SR., ity Attorney
le=aUoouoW12- 9- 93mobWAa"XME 1T
INDUSTRIAL DISTRICT AGREEMENT BETWEEN
MOBLEY COMPANY INC.
AND
CITY OF BAYTOWNt TEXAS
This Agreement is made and entered into between the CITY OF
BAYTOWN, Texas, a municipal corporation in Harris County and
Chambers County, Texas, hereinafter also referred to as "Baytown"
or "City," and MOBLEY COMPANY INC., a Texas corporation with a
permit to engage in business in the State of Texas, hereinafter
referred to as "Company."
W I T N E S S E T H:
WHEREAS, Baytown has a history of cooperating with
businesses and 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 "Municipal
Annexation Act," Article 970a, Revised Civil Statutes of Texas,
(now TEX.L.GOVIT.CODE ANN. S 42.044) 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 business and industry and the
economic enhancement of Baytown, the City of Baytown enacted
Ordinance No. 899, dated October 26, 1967, designating a part of
its extraterritorial jurisdiction as an Industrial District known
• as Baytown Industrial District No. 3; and
EXHIBIT A
MOBLEY COMPANY INC.
• WHEREAS, the City Council desires that all of Mobley Company,
Inc.'s Baytown facility 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 Mobley Company, Inc. for this purpose;
and
WHEREAS, Mobley Company, Inc. Is Baytown Facility includes both
real and personal property used in the operation and conduct of the
company's business 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 decide to annex. The City
further agrees, promises and guarantees that during the term of
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MOBL$Y COMPANY INC.
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 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 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 Facility, 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.
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MOBLEY COMPANY INC.
• 3. It is 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 1993, the Company
agrees to pay the City of Baytown an Industrial District payment on
or before December 31st of each year during the term of this
Agreement, such payment 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 Facility
within the corporate limits or extraterritorial
jurisdiction of the City, X .40 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 Facility within the City limits. The
tax payment shall be based on the value determined by
the appropriate Appraisal District or such other
appraisal district as may succeed the County Appraisal
District in assessing property for the City.
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MOBLEY COMPANY INC.
• 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:
Full Value Payment
- Tax Payment
Industrial District 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 is not required to appraise the land,
improvements, and tangible personal property in the
unannexed area for the purpose of computing the
Industrial payments hereunder. Therefore, the parties
agree that to determine the fair market value of all of
the Company's Baytown Facility for the purpose of
calculating the Industrial District payment in the manner
described above, the City may choose to use an
appraisal of the appropriate Appraisal District, or an
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MOBLEY COMPANY WC.
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2
appraisal 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 appropriate
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
to and shall create an Industrial District Review Board
which shall carry out the duties designated to it in
this Agreement.
E.
If any disagreement arises between the Company and the
appropriate Appraisal District that results in a delay in
the determination of Company's fair market value, the
Company shall pay to the City of Baytown on the due date
the same amount which was paid to the City for the last
preceding period as to which there was no controversy
concerning the fair market value of the Company.
Adjustments to this amount shall be made within thirty
(30) days of the resolution of the disagreement.
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
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2
40
MOBLEY COMPANY INC.
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.
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 shall be shared equally by the City of Baytown and the
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MOBI $tt COWFAN r INC.
• 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
determination 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 obsolescence.
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 was 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
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MOSLEY COWFANY INC.
• 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. 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
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T.1:l0 Q
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 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.
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
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L'1,010- � i • Z d Z76A
• 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 Facility shall also be applicable to the
establishment 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 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
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MONEY COWANY INC.
• 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 "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 should this Agreement be breached by the
Company, the City shall be entitled, in addition to any action at
12
MOBLEY CONFANY WC.
• 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.
12. In the event the terms and conditions of this Contract
are rendered ineffective or their effect changed by the
Constitution, any Legislative changes, 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 this the 2nd
December , 1993 .
ATTEST:
6 U1.0i
q ,fy4, SECRETARY
•
MOBLEY COMPANY INC.
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IIIIIII
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PLAT OF MOBLEY COMPANY TWO TRACTS OF LAND
SITUATED IN THE JOHN STEELE SURVEY. ABSTRACT NO. 227
CHAMBERS COUNTY. TEXAS
DECEMBER 3. 1993
BUSCH. HUTCHISON t ASSOCIATES. INC. SCALE: I' - 300• JOB No.:
ENGINEERS • ARCHITECTS • SURVEYORS DRANK BY.RLHJ CHECKED BY: J ►H
1107 FLEETNOOD DRIVE. BAYTOWN. TEXAS
713/422 -6213