Ordinance No. 9,159ORDINANCE NO. 9159
® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
FINDING NONCOMPLIANCE WITH THE TAX ABATEMENT AGREEMENT
BETWEEN THE CITY OF BAYTOWN AND ENICHEM ELASTOMERS
AMERICAS, INC AND TERMINATING SUCH AGREEMENT; AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, on January 9, 1997, the City of Baytown (the "City ") adopted Ordinance
No. 7872 designating the EniChem Reinvestment Zone and Ordinance No. 7873 authorizing a
Tax Abatement Agreement (the "Agreement ") with EniChem Elastomers Americas, Inc.
( "EniChem "); and
WHEREAS, on March 10, 1997, the City of Baytown entered into an Amendment of the
Agreement to correct a scrivener's error defining the effective date of the agreement as January
1, 1998; and
WHEREAS, pursuant to the terms of the Agreement between EniChem and the City,
EniChem represented that it would expand and modernize its current manufacturing facility and
create on average 40 construction jobs; and
WHEREAS, a noncompliance notice dated April 9, 2001, was sent to EniChem advising
the company that construction of the new facility had not commenced within the two -year
construction period and that the projected 40 construction jobs had not been created as pledged
in the Agreement; and
WHEREAS, on May 1, 2001, after receipt of the noncompliance notice, EniChem
responded that it concurs that the Agreement should be terminated because EniChem's parent
company decided to build a new manufacturing facility in Italy rather than expand the existing
facility in Baytown; and
WHEREAS, EniChem in its May 1, 2001, letter stated that it would be willing to
cooperate in any way necessary to terminate the Agreement; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: All matters and facts set forth in the recitals hereinabove are found to be
true, and are approved as the findings of the City Council of the City of Baytown.
Section 2: That the City Council of the City of Baytown hereby finds that EniChem
has failed to commence construction of the new facility within the two -year construction period
and failed to create the projected 40 construction jobs. As such, the City Council hereby finds
that EniChem has not complied with the Tax Abatement Agreement entered into on January 9,
1997, and that such noncompliance is not capable of being cured.
0 Section 3: That the City Council of the City of Baytown hereby terminates the Tax
Abatement Agreement with EniChem Elastomers Americas, Inc.
Section 4: 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 10th day of May, 2001.
/,e, c_
PETE C. ALFARO, ayor
ATTEST:
W SIe1ITH, City Clerk
APPROVED AS TO FORM:
ACID RAMIREZ, Sk,,Jity Attorney
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