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Ordinance No. 9,196ORDINANCE NO. 9196 ® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, GRANTING A VARIANCE FROM THE GUIDELINES AND CRITERIA FOR GRANTING A TAX ABATEMENT IN A REINVESTMENT ZONE CREATED IN HARRIS OR CHAMBERS COUNTY; AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO A TAX ABATEMENT AGREEMENT FOR CERTAIN TAXABLE PROPERTY LOCATED IN THE ELASTOMERS REINVESTMENT ZONE WITH ENICHEM AMERICAS, INC.; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, Enichem Americas, Inc. ( "Enichem ") has submitted an application for tax abatement in Baytown, Texas; and WHEREAS, in such application, Enichem has requested a variance to Resolution No. 1402, which adopts the guidelines and criteria for granting tax abatement in a reinvestment zone created in Harris or Chambers County (the "Guidelines "); and WHEREAS, the Guidelines provide that the planned improvement must "prevent the loss of employment, retain or create employment for at least fifteen (15) people on a permanent basis "; and WHEREAS, Enichem's SIX MILLION TWO HUNDRED FIFTY THOUSAND AND NO /100 DOLLARS ($6,250,000.00) improvement project is projected to create between 7 and I I full -time positions with Enichem and to retain in Baytown between 7 and 9 full -time positions; and WHEREAS, the City Council, after considering the variance requests and the Guidelines, believes that the variances requested should be granted and the tax abatement agreement should be approved; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: The facts and matters set forth in the recitals of this Ordinance are hereby found to be true and correct. Section 2: That the City Council of the City of Baytown, Texas, having reviewed and evaluated the variance requests detailed hereinabove, hereby finds that the terms of the tax abatement agreement, which is attached hereto as Exhibit "A" and incorporated herein for all intents and purposes, further the objectives of the Guidelines; and (1) there will be no substantial adverse affect on the provision of the City's service or tax base and., (2) the planned use of the property will not constitute a hazard to the public safety, health ® or morals. ® As such, the variances requested are hereby granted. Section 3: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the City Manager of the City of Baytown to'execute and the City Clerk to attest to a tax abatement agreement for certain taxable property located in the Elastomers Reinvestment Zone with Enichem Americas, Inc. A copy of said contract is attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes. 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 12t" day of July, 2001. ,l..2' -c.. PETE C. ALFAR0,IffVayor W 4MITH, City Clerk APPROVED AS TO FORM: ACIO RAMIREZ, SR., Qi ZDAttorney ® c:klh271 \CityCouncil\ Ordinances\ EnichemVariance &TaxAbatementAgreementOrdinance 2 ® CITY OF BAYTOWN Tax Abatement Agreement for Certain Taxable' Property located in the Eiastomers Reinvestment Zone and the Enichem Reinvestment Zone C] THE STATE OF TEXAS § COUNTY OF HARRIS § This Tax Abatement Agreement ( "Agreement"), dated as of July 12, 2001, to be effective as described in Article XIV hereof, is made and entered into by and between City of Baytown, Texas ( "City"), and Enichem Americas, Inc., a Delaware corporation ( "Owner"), which will acquire or has acquired certain taxable property in Harris County, Texas, including property located in Elastomers Reinvestment Zone and the EniChem Reinvestment Zone (collectively, the "Reinvestment Zone")- 1. Authorization This Agreement is authorized by (i) the Texas Property Redevelopment and Tax Abatement Act, (ii) Ordinance No. 8943 of the City Council of the City of Baytown, Texas, providing for the designation of the Elastomers Reinvestment Zone, and (iii) Ordinance No. 7872 of the City Council of the City of Baytown, Texas, providing for the designation of the EniChem Reinvestment Zone. H. Definitions For the purpose of this Agreement, the definitions set forth in Resolution No. 1402 of the City Council of the City of Baytown, Texas, which is attached hereto as Exhibit "A" and incorporated herein for all intents and purposes (the "Guidelines "), shall govern unless it is apparent from the context that the term as used herein has a different meaning or unless such word is specifically defined in this Article H. All other words shall be given their common, ordinary meanings, as the context may reasonably suggest. a. Abatement means the full or partial exemption From ad valorem taxes of certain property in the Reinvestment Zone designated for economic development purposes. b. Abatement Period means the period of time corrunencing with the effective date of this Agreement and ending upon the sooner of (i) the fourth anniversary of the 2444262] ZO'd TT :6 TO, OT In[ SUZ0- Ob6- 2TZ :X23 EMIDq A Si' MISd33 W3H3IN3 ® Effective Date of Abatement (as defined in Article N hereof) or (ii) the termination of this Agmcm=t pursuant tu tltc ycu Vh1iv1L.1 of AJ -U%A0 VII hCLCOf, C. Base Year Yalue means the appraised value of the property within the Reinvestment Zone as certified by the Harris County Appraisal District as of January 1 preceding the execution of this Agreement plus the agreed upon value of Improvements made after such January 1 but before the execution of the Agreement. d. Construction Phase means a material and substantial improvement of the property which represents a separate and distinct construction operation undertaken for the purpose of erecting the Improvements. The period of Construction Phase ends upon the earlier of (i) the corresponding date exactly one year after the Effective Date of the Abatement (as defined in Article IV hereof) or (ii) the date that the New Facility commences operations as a storage and/or distribution warehouse. C. Effective Date of Abatement has the meaning given to that terra in Article W hereof. f: Eligible Property means the buildings, structures, fixed machinery, equipment and process units, site improvements, and that office space and related fixed improvements necessary to the operation and administration of the New Facility as hereinafter defined. g. Improvements means the buildings or portions thereof and other improvements, including fixed machinery, equipment and process units, used for commercial or industrial purposes that are erected by the Owner on the property after the execution of this Agreement. h. Ineligible Property means land, inventories, supplies, tools, furnishings and other forms of movable personal property, vehicles, vessels, aircraft, housing, hotel accommodations, deferred maintenance investments, improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or expansion, any Improvements, including those to produce, store, or distribute natural gas, fluids, or gases which Improvements are not integral to the operation of the facility, and property that has an economic life of less than fifteen, (15) years, and any property owned or used by the State of Texas or its political subdivisions or any organization owned, operated, or directed by a political subdivision of the State of Texas. i. New Eligible Property means Eligible Property, the construction of which commences subsequent to the date of execution of this Agreement. A list of the New Eligible Property is set forth in Owner's Application for Tax Abatement in the City of Baytown, which is attached hereto as Exbibit "B" (the "Application") and incorporated herein for all intents and purposes. During the Construction Phase of the New Eligible Property, the Owner may make such change orders to 24442621 • 120'd TT :6 T0, OT Inf SZZ0- Ob6- 2TZ :Xp3 S2J3WOlSU-13 W3HOIN3 the New Eligible Property as are reasonably necessary to accomplish its intended use. i. j. New Facility has the meaning given to that term in Article VI hereof. k. Subject Property has the meaning given to that term in Article III hereof. III. Property The Reinvestment Zone is an area within Harris County, Texas, comprised of the Elastomers Reinvestment Zone and the EniChern Reinvestment Zone, each of which is more fully described in Exhibit "C," which is attached hereto and made a part hereof for all intents and purposcs. Thu property subjcct to this AE7ccment (the "Subject Property") is comprised of a tract of land of approximately 12.1795 acres, which is located within the Reinvestment Zone and more fully described in Exhibit "D," attached hereto and made a part hereof. As of the date of execution of this Agreement, the Subject Property is comprised of portions of three existing tracts of land in the records of the Harris County Appraisal District, which are more particularly described as: Tract HCAD Account Number Size Preliminary Value 1 045 -144 -001 -0189 31.1479 acres $371,900 2 045- 144 - 0010109 1.0101 acres $ 18,500 3 045 -144- 001 -0186 24.9010 acres $542,780 Total 57.079 acres $933,180 The preliminary value per acre of the three above - referenced tracts is S 16,355. The parties agree that for purposes of establishing an estimated value of the Subject Property as of January 1, 2001, the Harris County Appraisal District valuation for the constituent tracts shall be prorated based on the preliminary value of $16,355 per acre, as determined above. Thus, the estimated preliminary values for the Subject Property as of January 1, 2001 shall be: Account No. Value Land $199,196 Existing Improvements $ 0 Leasehold Improvements $ 0 The above - referenced values (or, if the certified values hereafter established for tax year 2001, by the Harris County Appraisal District are different, the corresponding per acre value based on such certified values, pro rated by the size of the Subject Property) plus zero dollars ($0.00), representing the agreed upon value of Improvements made after January 1, 2001, but 24442111 b0'd TT:6 l0, OT Inf SZZO- Ob6- 2TZ:x2J S?GWOISti-13 W3H3IN3 before the execution of this Agreement, shall be the Base Year Values for purposes of this Agreement. , N. Value and Term of Agreement Abatement on the Improvements shall be permitted only for the value of New Eligible Property as defined in Article U of this Agreement and as specifically listed in Exhibit °l3 . This Abatement shall be granted on the property valuation effective on the 1st of January imt'nediately following the date of execution of this Agreement (the "Effective Date of Abatement "). The portion of New Eligible Property value to be abated shall be in accordance with the following schedule: :� � �� .[e��.Z'.. 4... � "••a7: i:j:a`...� r"���...�(((�{t,�y.�y`I�jr .Yf�i�: .,J•.f' ^..11'.'1 411!.. }: µ�N'.i• • ��5� %^_� • L� ✓S1Yil1: /1 s ■1 11 ��1 2' Year after Construction 3" Year after Construction Phase The Construction Phase shall continue (i) for one year or (ii) until the construction of the New Facility is complete and the New Facility commences regular operation of a storage and distribution warehouse, whichever is earlier. If the period of construction extends beyond the Construction Phase, the New Facility shall be considered completed for purposes of the Abatement and in no case shall the Abatement Period inclusive of construction and completion extend past the fourth anniversary of the Effective Date of Abatement. The abated value shall be the value of New Eligible Property less the Base Year Value, as adjusted each year, of any Eligible Property existing upon the date of execution of this Agreement. 24442621 4 0 SO'd ZT:6 T0, OT Inc SZZO- Ob6- STZ:X23 S2MISJ33 W3H3IN3 V. Taxability During the Abatement Period, taxes shall be payable as follows: (1) The value of Ineligible Property shall be fully taxable; (2) The Base Year Value of Eligible Property existing prior to the date of execution of this Agreement, as the same may be adjusted each year, shall be fully taxable; and (3) The value of New Eligible Property shall be taxable in the manner described in Section 2(g) of the Guidelines and in accordance with Article TV of this Agreement. The estimated value of the New Eligible Property to be abated pursuant to the Agreement is $6,250,000. The City shall enter into only one tax abatement agreement for the New Facility described in this Agreement during the existence Of (i) the Elastomers Reinvestment Zone as designated by Ordinance No. 8943 or (ii) the EniChem Reinvestment Zone as designated by Ordinance No.7872. VI. Contem2lated Improvements As set forth in the Application, attached hereto as Exhibit `B ", the Owner represents that it will construct a wholesale distribution facility that it reasonably expects will cost approximately 56,250,000, which shall be used for commercial or industrial purposes (the "New Facility "). It is contemplated that this construction project will result in the creation of 7 to 11 jobs and approximately 88,000 man hours of construction employment during the Construction Phase of the New Facility. The project is not expected solely to transfer, or primarily have the effect of transferring, employment from one part of the City of Baytown to another. The New Facility as well as any other Improvements within the Subject Property shall be completed in accordance with all applicable laws, ordinances, rules or regulations, including the City's zoning ordinance. The New Facility is expected to initiate or fwther the active conduct of a trade or business within the Reinvestment Zone. The Owner further agrees that construction of the Improvements will begin on or before October 1, 2001, with completion on or before October 1, 2002, VII. Event of Default During the Abatement Period covered by this Agreement, the City may declare a default hereunder by the Owner if the Owner (i) fails to commence construction of the New Facility described in Part VI above and the Application attached hereto as Exhibit `B" on or 24442621 90'd ZT =6 T0, OT inf SZZ0- 0b6- 2iZ :xPJ SN3WO1Sb-13 W3h0IN3 before October 1, 2001, (ii) fails to complete construction on or before October 1, 2002, (iii) fails ® to construct the New Facility described in Part VI above, (iv) refuses or neglects to comply with any of the terms of this Agreement, or (v) makes any representation pursuant to this Agreement which is false or misleading in any material respect. Should the City determine the Owner to be in default of this Agreement or in any respect, except for the failure to timely commence construction or pay taxes when due, the City. shall notify the Owner in writing prior to the end of the Abatement Period, and if such default is not cured within sixty (60) days from the date of such notice ( "Cure Period' ), then this Agreement may be terminated; provided, however, that in the case of a default that, for causes beyond Owner's reasonable control, cannot with due diligence be cured within the Cure Period, the Cure Period may be extended, at the sole discretion of the City, if the Owner (i) promptly, upon the receipt of such notice, advises the City of Owner's intention to institute all steps necessary to curt such default and (ii) institutes and thereafter prosecutes to completion with reasonable dispatch all steps necessary to cure such default. If the default is caused by the Owner's failure to commence the project described in Exhibit "B" within the above - referenced time frame, this Agreement will terminate automatically with no further notice to the Owner or opportunity to cure the default being necessary. If this Agreement is automatically terminated, all taxes previously abated by virtue of this Agreement, if any, will be recaptured and paid within 30 days of the automatic termination. In the event that Owner allows its ad valorem taxes owed the City to become delinquent and fails timely and properly to follow the legal procedures for their protest and/or contest, or if the Owner violates any of the terms and conditions of this Agreement and fails to cure during the Cure Period, this Agreement may then be terminated and all taxes previously abated by virtue of this Agreement will be recaptured and paid within 30 days of the termination. In the event the New Facility is completed and begins operations as a Regional Distribution Center Facility, but subsequently discontinues such operations for any reason excepting fire, explosion or other casualty, accident or actual disaster, for a period of one -year or longer during the Abatement Period, then this Agreement shall be terminated. In the event of termination pursuant to the provisions of this paragraph, the Abatement of taxes and payments for the calendar year during which the New Facility discontinues operations shall terminate, but there shall be no recapture of prior years' taxes and payments abated by virtue of this Agreement. The taxes and payments otherwise abated for the calendar year during which the New Facility no longer operates shall be paid to the City prior to the delinquency date for such year. Any and all recaptured taxes not paid within the 30-day periods prescribed hereinabove shall accrue interest and penalties as set forth in the applicable provisions of the Texas Tax Code as if the same were never subject to Abatement. 24442621 6 ZO 'd 12T:6 10, 01 I of SU_0- 0b6 -1iTZ: xt?3 5dMiSU -13 W3H3IN3 ® VIII. A.ttrrtiuiols at,.,,i This Agreement shall be administered on behalf of the City by the City Manager or his designee pursuant to the direction of the City Council. The Owner shall allow employees and/or representatives of the City who have been designated by the City Manager to have access to the New Facility during the term of this Agreement to inspect the New Facility to determine compliance with the terms and conditions of this Agreement. All inspections required herein will be made only after the giving of twenty -four (24) hours' prior notice and will only be conducted in such manner as will not unreasonably interfere with the construction and/or operation of the New Facility. All inspections required herein will be made with one or more representatives of the Owner and in accordance with the Owner's safety standards. Upon completion of the contemplated construction, the City Manager or his designee shall annually evaluate the New Facility to ensure compliance with the terms and provisions of this Agreement and shall report possible defaults to the City Council and the City Attorney. The Chief Appraiser of the Harris County Appraisal- District shall annually determine (i) the taxable value after giving effect to the terms of this Agreement of the real and personal property located on the Subject Property and (ii) the full taxable value without Abatement of the real and personal property located on the Subject Property. The Chief Appraiser shall record both the abated taxable value and the full taxable value in the appraisal records. The full taxable value figure listed in the appraisal records shall be used to compute the amount of abated taxes that are required to be recaptured and paid in the event this Agreement is terminated in a manner that results in recapture. Each year the Owner shall furnish the Chief Appraiser with such information outlined in Chapter 22 of the Texas Tax Code, as may be necessary for the administration of the Abatement specified herein. If the City terminates this Agreement, it shall, when required, provide Owner written notice of such termination. If Owner believes that such termination was improper, Owner may file suit in the Harris County District Courts appealing such termination within sixty (60) days after receipt from the City of written notice of the termination. If an appeal suit is filed, Owner shall remit to the City, within sixty (60) days after receipt of the notice of termination, any additional and/or recaptured taxes as may be payable during the pendency of the litigation pursuant to the payment provisions of Section 42.08 of the Texas Tax Code. If the final determination of the appeal increases Owner's tax liability above the amount of tax paid, Owner shall remit the additional tax to the City pursuant to Section 42.42 of the Texas Tax Code. If the final determination of the appeal decreases Owner's tax liability, the City shall refund to Owner, as appropriate, the difference between the amount of tax paid and the amount of tax for which Owner is liable pursuant to Section 42.43 of the Texas Tax Code. Ix. Assigent The Owner may assign its rights and obligations under this Agreement to a new owner of the New Facility with the written consent of the City .Council, which consent shall -not be unreasonably withheld. Any assignment shall provide that the assignee shall irrevocably and 24442421 80'd �T = 6 TO. OT I of SZZO- M -£TZ. XP3 Sd3WOlSti-13 W3HOIN3 unconditionally assume all the duties and obligations of the assignor upon the same terms and ® conditions as set out in this Agreement_* Any assignment of this Agreement shall be to an entity that contemplates the same Improvements to the property, except to the extent such Improvements have been completed. No assignment shall be approved if'the assignor or the assignee is indebted to the City for delinquent ad valorem taxes or other obligations. • X. Notice Any notice required to be given under the provisions of this Agreement shall be in writing and shall be duly served when (i) it is personally delivered or (ii) it is deposited, enclosed in a wrapper with the proper postage prepaid thereon, and duly registered or certified, return receipt requested, in a United States post office, addressed to the City or the Owner, as appropriate, at the following addresses. If mailed any notice or communication shall be deemed to be received three days after the date of deposit in the United States mail. Unless otherwise provided in this Agreement, all notices shall be delivered to the following addresses: Owner: Enichem Americas, Inc. 2000 West Loop South, Suite 2010 Houston, Texas 77027 Attention: Cosimo Caracciolo City: City of Baytown P. O. Box 424 Baytown, Texas 77522 -0424 Attention: Monte Mercer, City Manager Either party may designate a different address by giving the other party ten (10) days' written notice. XZ. Non - Waiver Failure of the City to insist ort the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by an appropriate remedy, strict compliance with any other obligation hereunder to exercise any right or remedy occurring as a result of any future default or failure of performance. 14442621 60'd bT:6 T0, OT Inc S6ZO- OV6- !�TZ:xp3 Sd3WOiSd13 W3H3IN3 • `X c Y O� u i This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be the City of Baytown, Harris County, Texas. Severabili All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and cffoat. )ay. Date of of A�eement; Condition to Effectiveness Condition to Effectiveness The City executes this Agreement by and through the City Manager, acting pursuant to Ordinance No. of the City of Baytown and this Agreement shall be dated as of July 12, 2001, which is the date that this Agreement is signed by the City Manager. Notwithstanding the earlier execution and delivery of this Agreement, this Agreement shall not become effective until the City shall have received written notice that the Owner has become the holder of record title of a fee interest in the Subject Property. 24442621 9 OT'd VT:6 T0, OT Inr SL20- Ob6- STZ:Xe3 S213WOiSt>133 W3HOIN3 ® This Agreement has been executed by the parties in multiple originals, each having full force and effect, y ATTEST: CrrY OF BAYTOWN GARY W. SMTH, City Clerk MONTE MERCER, City Manager ENICHEM AMERICAS, INC. ATTES$siimo By: By' .� ar acciolo, Secretary Salvatore Iabiceha, an &CEO to ?4442621 TT'd VT:6 T0, OI inr SI10- Ob6- -2TI :xp3 S213WO1Sb33 W3HOIN3 • TAX ABATEMENT GUIDELINES SUMMARY OBJECTIVES Primary job creation — target industries. Amount abatement — niinimu n to be competitive. Fair to taxing jurisdictions — It is a local option Fair to existing business — modernization, expansion. Regional cooperation — similar abatements. Flexibility — toughly enforced variance procedum. TERMS 100% during construction, not to exceed two (2) years. 100% Ist year after eoasttvcdon. 75% 2nd year after construction: 50% 3rd year after construction. FACILITIES Manufacturing. THAT QUALIFY Regional service & distribution. Regional entertainment, Research and development. Other basic industry. AUTHORIZED New plant. INVESTMENTS Expansion. Modernization. ABATED Buildings and structure. Fixed machinery and equipment. Size improvements. Office space to administer plant. NOT ABATED Land. Existing improvements. Construction -in- progress. Personal propcmy. Hotcls. Housing. Pipelines. Gas and fluid storage. Electrical generating facilities. Deferred maintenance. Property WWI useful life less than fifteen (15) years. CCONOMIC Minimum one millioie dollar (S 1,000,000) investment. CRITERIA Rctain or create at (cast r1hecn (IS) jobs. Cannot reasonably use existing property. No serious ndvcrsc affect on jurisdictions. Tar nbarcmnu Guidelines Stimmiry. PaSc Solo FXt]IBlT A GUIDELINES AND CRITERIA FOR REINVESTMENT ZONES SECTION 1 DEFINITIONS (a) "Abatement" etcaru the full or partial exemption from ad valorem taxes of c=%ain real Property in a reinvestment zone designated for economic development purposes. (b) "Eligible Jurisdiction" means any county, municipaJiry, school district or college district that levies ad valorem taxes upon and provides services to property located within the proposed or existing reinvestment zone. (c) "Agreement" means a contradtuaJ agreement between a property owner and/or lessee and an eligible jurisdiction for the purposes of tax abatement. (d) "Base Year Valve" means the assessed value of eligible property January I preceding the execution of the Agreement plus the agreed upon valued of eligible property improvements made after January 1 but before the execution of the Agreement. {e) "Economic Life" means the number ofyears a property improvement is expected to be in service in a facility. (!] "Deferred Maintenance" means improvement necessary for continued operations which do not improve productivity or alter the process technology. (S) "Expansion" means the addition of buildings, structures, fixed machinery or equipment for Purposes of increasing production capacity. (h) "Facility" means property improvements completed or in the process of construction which together comprise an integral whole. (i) "Manufacturing Facility" means buildings and structures, including fixed machinery and equipment, the primary purpose of which is or will be the manufacture of tangible goods or materials or the processing of such goods or matcrials by Physical or ehcmical change. (j) "Modernization" means the replacement and upgmding ofexisting facilities which increases the productive input or output, updates the technology or substantially lowers the unit cost of the operation. Modernization may result from the cmutruetion, alteration or installation of buildings, structures, fixed machinery or equipment. It 511211 not be for the purpose of reconditioning, refurbishing or repairing. isCUWClinc; and Criieria roe Rcinvesiment Zoncs. Pale I (k) "New Facility" means a property previously undeveloped which is placed into service by means other than or in conjunction with expansion or modernization. (!) "Other Basic. Industry." means buildings and structures including fixed machinery and equipment not elsewhere described, used or to be used of the production of products or services which primarily serve as a market outside the Houston Consolidated Metropolitan Statistical Area and result In the creation of new permanent jobs and bring new wealth in. (m) "Regional Distribution Center Facility" means buildings and structures including fixed machinery and equipment, used or to be used primarily to receive, store, services or distribute goods or material owned by the facility o2=tor where a majority of the goods or services are distributed to other points. (n) "Regional Entertainment Facility" means buildings and structures, including fixed machinery and equipment, used or to be used to provide entertainment through the admission of the general public. (o) "Regional Service Facility" means buildings and structure, including fixed machinery and equipment, used or to be used to service goods where a majority of the goods being serviced Originate at least one hundred (100) miles away. (p) "Research Facility" means buildings and structures, including fixed machinery and equipment; used or to be used primarily for research or experimentation to improve or develop new tangible goods or materials or to improve or develop the production processes thereto. SECTION 2 ABATEMENT AUTHORIZED (a) Authorizcd Facility. A facility may be eligible for abatement if it is a Manufacturing Facility, Research Facility, Regional Distribution Center Facility, Regional Service Facility, Regional Entertainment Facility or Othcr Basic Industry. (b) Creation of New Value. Abatement may only be granted For the additional value of eligible property improvements made subsequent to and listed in an abatement ngrccment between the City of 13aytown and Ute property owner and lessee (irrcquircd), subject to such limitations as City Council may rcquirc. (c) New and Existing Facilities. Abntcmcni may begrantcd for nc%v Gtcilititm and improvements to existing facilities Cos purposes ormodcrnization or expansion. 0 GuiJeFlics and Critcrin rur Reinvestment %ones, t'abe 2 (d) Eligible Property. - Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements plus that office .space .and mlated fixed improvements necessary to the operation and administration of the facility. (e) Ineligible Property. The following types ofproperty shall be fully taxable and ineligible for abatement: land; inventories; supplies; tools; furnishings; and other forms of movable personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred maintenance investatents; property to be rented or leased except as provided in Section 2 (f); improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or expansion; any improvements, including those to produce, store or distribute natural gas, fluids or gases, which arc not integral to the operation of the facility; property which has an economic life of less than fifteen (IS) years; and property owned or used by the State of Texas or its political subdivision or by any organization owned, operated or directed by a political subdivision of the State of Texas. (f) Owned/Leased Facilities. If a leased facility is granted abatement the agreement shall be executed with the lessor and the lessee. (g) Value and Term of Abatement. Abatement shall be granted effective with the January 1 valuation date immediately following the date of execution of the agreement. One hundred percent (100°/x) of the value of new eligible properties shall be abated for up to two (2) years during the period of construction, followed by one hundred percent (100 %) abatement for the first year after construction, seventy -five percent (75%) abatement for the second year after construction and fifty percent (50 %) abatemcnt for the third year after construction. If the period of construction exceeds two (2) years the facility shall be considered completed for purposes of abatement and in no case shall the period of abatement inclusive of construction and completion exceed rive (5) years. If a modcmization project includes. facility replacement, the abated value shall be the value of the new unit(s) less the value of the old unit(s). (h) L-conomic Qualification. In order to be eligible for designation as a reinvestment zone and receive tax abatement, the planned improvement: (I) must be reasonably expected to increase the appraised value of the property in the amount of one million dollars (51,000,000) after the period of abatement has expired; (Z) must be cxpcctcd to prevent the loss of employment, retain or create employment for at least fi fteen (IS) people on a permanent basis; '(3? must not be expected to solely or prinvirily hive the eflcet oC transferring cniployment from one part of a county to another; and • Gui 04ics and Cr ;tcria for Rcifivemnein %ones, rage 3 (4) must be necessary because capacity cannot be provided efficiently utilizing existing improved property when reasonable allowance is made for necessary improvements. (i) . Taxability....From the execution of the abatement to the end of the agreement period, taxes shall be payable as follows: (1) The value of ineligible property as provided in Section 2(e) shad be fully taxable. (2) The base year value of existing eligible property as determined each year shall be My taxable. (3) The additional value of new eligible property shall be taxable in the manner described in Section 2(g). SECTION 3 APPLICATION (a} Any present or potential owner of taxable property in the City of Baytown may request the creation of a reinvestment zone or tax abatement by filing a written request with the City of Baytown. (b) The application shall consist of a completed application form accompanied by a general description of the new improvements to be undertaken; a descriptive list of the improvements for which in abatement is requested, a list of the kind, number and location of all proposed improvements of the property; a map and property description; and a time schedule for undertaking and completing the proposed improvements. In the case of modernization, a statement of real and personal property shall be given for the tax year immediately proceeding the application. The application form may require such financial and other information as the City Council deems appropriate for evaluating-the financial capacity and - other factors of the applicant. (c) Upon receipt of a completed application, the Mayor of die City of Baytown or his designee shall notify in writing the presiding officer of the governing body of each eligible jurisdiction. (d) After receipt of an application for creation of a reinvestment zone and application for tax abatcmcnt, the City Council through its designated officer or employee shall Prepare feasibility study setting out the impact of the proposed reinvestment zone yid tix abatement. Mic feasibility study shall include, but not be limited to, an estimate of the economic effect of the creation of the zone and tlu abatement of taxes and the bcnera to tile eligible jurisdiction and the property to be included in the zonc. 0 Guidclin¢s Ind Criteria for ftcinvcstincnt Zoncs. NSe 4 (e) The City Council shall not establish a reinvestment 'zone or enter into an abatement - agreement if it finds that the request of the abatement was filed after the commencement of construction, alteration, or installation of improvements related to a proposed modernization, expansion or new.faeility. (I} variance_ Requests for variance from the provisions of Subsections (a), (e) and (g) of Section 2 may be made in written form to a designate member of City Council, provided, however, the total duration of an abatement shall in no instance exceed five (5) years. Such request shall include a complete description of 'the circumstances explaining wily the applicant should be granted a variance. Approval of a request for variance requires a three fourths C /,) vote of the City Council. --- SECTIONA PUBLIC HEARING AND APPROVAL (a) The governing body of a city may not adopt an ordinance, or a county a resolution designating a reinvestment zone until it has held a public hcarins at which interested persons are entitled to speak and present evidence for or against the designation. Not later than the seventh (7th) day before the date of the hearing notice of the hearing must be published in a newspaper having general circulation in the municipality; and delivered in writing to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone. (b) Prior to entering into a tax abatement agreement, the City Council may, at its own option, hold a' public hearing at which interested persons shall be entitled to speak and present written materials for or against the approval of the tax abatement agreement. (c) In order to enter into a tax abatement agreement, the City Council must rind that the terms of the proposed agreement meet these Guidelines and Criteria and that: (1) there will be no substantial adverse afTect on the provision of the jurisdiction's service or tax base; and (2) the planned use of the property will not constitute a hazard to public safety, licalth or morals. - (d) Any applicant requesting ;t variance under Section 3(0 shall be approved by a vote of at least three- fourths ('/.) of the City Council. No application which devi:ues from the requircmcnts of these Guidelines and Criteria shall be approved unless accompanied by a rcqucst for variance as provided under Section 3(f). 0 Goidclincs J110 Cnicrin rot Rcinvcsinicn1 Zoncs. Pabc 5 SECTION 5 • AGREEMENT .. After-approval the City -Council shall formally pass a resolution or an ordinance and execute an agreement with the Owner of the facility and lessee as required which shaU include: (1) the estimated value to be abated and the base year value; (2) the percent of value to be abated each year as provided in Section 2(g). (3) the commencement date and the termination date of abatement; (4) the proposed use of the facility, nature of construction, time schedule, map property description and improvement list as provided in Application Section 3(b). (5) the contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture, administration and assignment as provided in Section 2(a), 2(f). 2(g), 6; 7 and 8, or other provisions that may be required for uniformity or compliance with state law, arid; (6) the amount of investment and the average number of jobs involved. Such agreement shall normally be executed within sixty (60) days after the application and all necessary information and documentation has been forwarded to the City Council. SECTION 6 RECAPTURE (a) In tite event that the facility is. completed and begins producing product or service, but subsequently discontinues producing product or service for any reason excepting fire, explosion or other casualty or accident or natural disaster of a period of one year during the abatement period, the agreement shall terminate and so sliall the abatement of the wxcs for the calendar year during which the facility no longer produces. The taxes otherwise abated for that calendar year shall be paid to the City of Baytown within sixty (60) days from the date of termination. (b) ' Should the City Council determine that the company or individual is in default according to the (cmis and conditions of its agrccnient, the City Council small notify the company or individual in writing it the address stated in tltc agreement, and if such is not cured within sixty (60) days from the date of such notice ( "Cure Period "), tl►en the abreernent may be tcr►ninatcd. • cuidctioics 311 d Critcri� for ttcinvcstmcn► 7_o2cs. rase 6 (c) In the event that the company or individual (1) allows its ad valorem taxes owed the Ci'ry of • Baytown to become. delinqu en t and fails to timely and properly follow the legal procedures for their protest and/or contest; or (2) violates any of the terms and conditions of the ..abatement agreement-and fails to cure during.the Cure Period, the agreement thew may be terminated and all taxes previously abated by virtue of the agreement will be recaptured and paid within sixty (60) days of the termination SECTION 7 ADMINISTRATION (a) The Chief Appraiser of the County shall annually determine an assessment of the real and personal property comprising the reinvestment zone. Each year, the company or individual receiving the abatement shalt famish the assessor with such information as may be necessary for the abatement. Once value has been established, the Chief Appraiser shall notify the affected jurisdictions which levies taxes on the amount of the assessment. (b) The agreement shall stipulate that employees and/or designated representatives of the City of Baytown will have access to. the reinvestment zone during the term of the abatement to inspect the facility to determine if the terms and conditions of the agreement are being met. All inspections will be made only after the giving of twenty-four (24) hours' prior notice and will only be conducted in such manner as to not unreasonably interfere with the conswction and/or operation of the facility. All inspections will be made with one or more representatives of the company or individual and in accordance with its safety standard. (c) Upon completion of construction, the jurisdiction which created the zone shall annually evaluate each facility receiving abatement to ensure compliance with the agreement and report possible violations of the contract and agreement to the City Council and its attorney. SECTION 8 ASSIGNMENT Tax abatement agreements may be assigned to a new owner or lessee of facility with the Millen consent of the City Council which consent shall not be unreasonably withheld. Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor upon the same terms and conditions as set out in the agreement. Any assignmcnt of a tax abatement agreement shall be to an entity that contemplated the same improvements or repairs to the property, except to the extent such improvements or repairs have been completed. No assignmcnt shall be approved if the assignor or the assignee is indebted to the City of Baytown for ad valorem trues or other obligations. OLIN 19S1C��nue�u�hyrk +c�ornw�itGui�ielin� e7a ,�nb,ume,�eNne���.�uR�en�,o�,n I7'J7 ® Gu;d1:1 llcs ,end Crilerij roe RCii1vcS1111Cl11 Zoncl. Page 7 APPLICATION FOR TAX ABATEMENT W BA"YTOWN, TEXAS The filing of this document acknowledges familiarity and conformance with Guidelines and Criteria for Tax AbatemenL This application will become part of the agreement and any knowingly false representations will be grounds to void the agreement. Original copy of this request should be submitted to City Manager, P.O. Pox 424, Baytown, Texas 77522 -0424, if property is located inside the corporate limits of Baytown. APPLICANT INFORMATION Company Name: ENZCHEM AMERICAS, INC. Address: 2000 WEST LOOP SOUTH Corporation (X) partnership ( ) Proprietorship ( ) PROJECT ]FORMATION Tyne of Facility DATE: MAY 3, 2001 See instructions. ( ) Manufacturing Facility (X) Regional.. Distribution Center Facility () Research Facility () Service Facility (} Entertainment & Recreation Facility () Other Basic Industry proposed )Project Location Address nizd Legal Description: SchQpl District College District City or Town LEE COLLEGE BAYTOWN Attach map showing proposed site. SEE ATTACHMENT # 1 0 Describe Produtt or Service to bt provided. SEE ATTACHMENT # 2 EXHIBIT R Proiect DeserliXion: • Attach statement fully explaining project, describe existing site and improvements and provide list of improvements and fixed machinery and equipment for which abatement is requested. (y) New Plant ( ) Expansion ( ) Modernization ( ) Other ECONOMIC INFORMATION Construction ltstimates: Start Month /Y= 8 / 01 Construction Man Years 4 4 Completion Date 4 102 peak Construction Jobs 50 -100 If odernintion- Estimated Economic Life of Existing plant N/A Years Added Economic Life From Modernisation N/A Yes Permanent Em to ment ima (PT EIS)! Current Employment _ 0 Number of Jobs (X) Retained or (X) Created at swVopcning 14 -20 in year 2001 5 years into operation 14 -20 in year 2006 imated A raised Value on Site: Personal Ymprovements land Property Value January 1, preceding abatement agreement —p— _0_ $410, 0 0.00 Estimated Value of Abated Properties after abatement expires X00.00 $6,290, _1100.00 $410,n n 0.00 Value upon completion of project personal property and project improvements not subject to abatement $200,000.00 $6,250,000.00 $410, 000.00 VARIANCE ® Is the applicant seeking a variapce under Section 4 (f) of the Guidelines? (x} Yes ( ) No If "Yes" attach required supplementary inforntation._SEE ATTACHMENT, 2 TO TAX ABATEMENT ® OTHER ABATEMENIS APPLICATION Has company madd application for abatement of this project by another taxing jurisdiction or nearby cpu11tie5? ( ) YeS (X) No. If "Yes" provide dates of application, hearing dates if held or scheduled, name of jurisdictions and contacts, and letters of intent. CQMWAN'Y REPRESENTATIVE TO BE CONTACTED: Name: COSIMO CARACCIOLO Signature of Cg7ri y w icial Title: V.P. FINANCE & 'ADMIN . SALVATORE IABIqUELLA CHAIRMAN & CEO Narno & Witte of Company Official Address: _2000 WEST LOOP SOUTH HOUSTON, TEXAS 77027 Telephone: (713) 940 -0704 0 `���v�u • `/ i�±� ���, l� Application for Tax Abatement City of Baytown, Texas ATTACHMENT 2 Applicant: Enichem Americas, Inc. A Delaware Corporation Date of Application: May 3, 2001 I. INTRODUCTION In an effort to address the need to store and distribute products manufactured by its plant in a safe and economically efficient manner, Enichem Americas, Inc. "Enichem" is contemplating the following structured transaction: Enichem would acquire certain undeveloped land adjacent to its existing facility on Decker Drive in Baytown, Texas and will build a 250,000 square foot warehouse facility (the "Warehouse ") at a cost of approximately $6,250,000.00. The Warehouse would also contain approximately 3,000 square feet of office space for administrative functions related to the Warehouse and to office Enichem's technical staff. As described below, the net impact of the Warehouse would be the construction of approximately $6,250,000.00 improvement on the property and the retention of 14 to 20 jobs in the City of Baytown. II. COMPANY SUMMARY Enichem, formerly known as Enichem Elastomers Americas, Inc., is a wholly owned subsidiary of Enichem S.p.a. which is itself a subsidiary of E.N.I. S.p.a.. the fifth (5`") largest petrochemical company in the world. E.N.I. is based in Rome, Italy and maintains subsidiaries and facilities around the world. Enichem was incorporated in Delaware on February 3, 1988. In 1991 Enichem moved its sales staff and laboratory from New York to Houston and Baytown. Enichem completed construction of its first U.S. manufacturing plant in Baytown, Texas in the summer of 1992. In 1994 Enichem America, ® Inc. a sister company of Enichem Americas, Inc. moved its Headquarters from New York to Houston. In September 1999, Enichem America, Inc. merged with Enichem and the name of the resulting company was changed to its present Enichem Americas, Inc. Enichem's principal office is' located at 2000 West Loop South in the Galleria area of Houston, Texas. Enichem employs about 110 people between its Baytown and Houston facilities. III. REASON FOR ABATEMENT In order to make the proposed investment feasible and permit Enichem to retain certain jobs in the City of Baytown, it is imperative that the warehouse project offers a competitive opportunity. The availability of the tax abatement will influence the economic analysis of the transaction, and will therefore be a factor in determining whether or not to proceed with the investment in the City of Baytown. IV. PROJECT DESCRIPTION A. Improvements The project will result in the construction of the 250,000 square foot distribution facility, including 3,000 square feet of one story office space. The Warehouse will be dockhigh, sprinklered and will be a concrete tilt wall structure. The Warehouse will be partially equipped with racks for the storage of the products and will be linked by means of a covered driveway to the packaging area of the plant to shuttle the products. B. Fixed Machinery and Equipment Fixed storage Rack (10,000 pallet capacity) Stretchwrapper Machine Pallet Conveyor V. JOB CREATION & RETENTION The construction of the Warehouse would result in 50 -100 jobs during the construction period with an impact equivalent to 88,000 man hours of employment. Once operational, Enichem expects to maintain between 7 and 11 full -time employees at the Warehouse. The total annual payroll of Enichem at the Warehouse is projected to be approximately $220,000.00. In addition, Enichem expects to use the office space in the Warehouse to retain in the City of Baytown between 7 and 9 full -time positions that would • otherwise be relocated to Enichem's corporate offices in Houston. The aggregate gross compensation for the employees whose positions would be retained in the City of Baytown as a result of the Warehouse is $385,000.00 VI. VARIANCE The applicant requests a variance from the Guidelines and Criteria established by the City of Baytown because Enichem may not directly employ or retain 15 employees in the City of Baytown. Instead, the Warehouse would create 7 to 11 new positions and would permit Enichem to retain between 7 and 9 positions by moving office employees from the existing manufacturing facility to the Warehouse instead of moving those positions to the corporate offices in Houston. 0 • • EXHIBIT C Reinvestment Zone C -1 Elastomers Reinvestment Zone Ordinance 8943 C -2 EniChem Reinvestment Zone Ordinance 7872 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, ® TEXAS, CREATING THE ELASTOMERS REINVESTMENT ZONE PURSUANT TO RESOLUTION NO. 1402 OF THE CITY COUNCIL OF THE CITY OF BAYTOWN; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, the creation and retention of job opportunities that bring new wealth to the City of Baytown is one of the highest civil priorities of the City of Baytown (the "City"); and WHEREAS, Elastomers.Warehouse, L.P, ( "Elastomers Warehouse ") desires to construct and operate a storage and distribution warehouse; and WHEREAS, Elastomers Warehouse has represented that it will increase the value of the property described in Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes by approximately SIX MILLION TWO HUNDRED FIFTY THOUSAND AND N0 1100 DOLLARS ($6,250,000.00) after the construction is completed; and WHEREAS, Elastomers Warehouse has represented that the construction and operation of the facility will result in the creation and/or retention of fourteen (14) to twenty (20) full -time jobs in the City; and WHEREAS, notice of the public hearing held on May 23, 2000, concerning the designation of the Elastomers Reinvestment Zone was (i) published in a_ newspaper having general circulation in the City and (ii) delivered to the presiding officer of the governing body of each taxing unit that includes in its boundaries the real property that is to be included in the proposed reinvestment zone; and WHEREAS, the City Council of the City of Baytown has held a public hearing on May 23, 2000, on the designation of the proposed reinvestment zone to be known as the Elastomers Reinvestment Zone; and WHEREAS, the City Council of the City of Baytown finds.that it is reasonably, likely that the creation of the proposed zone will contribute to the.expansion_of primary, employment- and mill attract major investment- in- the proposed -zone- that .will be ofbenefit:to the property and that will contribute to the economic development of the City; and WHEREAS, the City Council of the City of Baytown finds that the improvements sought to be constructed within the proposed zone are feasible and practicable and will be of benefit to the land to be included within the proposed zone and to the City after the expiration of a municipal tax abatement agreement; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the facts and matters set forth in the recitals of this Ordinance are hereby found to be true and correct. Section 2: That the City Council of the City of Baytown, Texas, hereby establishes and designates a reinvestment zone to be known as the Elastomers Reinvestment Zone (the "Zone ") for the purpose of encouraging economic development through commercial - industrial tax abatement. This designation shall be effective for five (5) years from the effective date of this Ordinance. 0 Section 3: That the Zone hereby established is more particularly described in Exhibit "A," ® which -is attached hereto and made a part hereof for all intents and purposes. Section 4: That this Ordinance shall serve as notice to every taxing unit that includes inside its boundaries property that is located within the boundaries of the Zone of the establishment of the Elastomers Reinvestment Zone by the City, and the City Clerk is hereby directed to send certified copies of this Ordinance to all such affected taxing units. Section 5: Should any portion or part of this Ordinance be held for any reason to be invalid and unenforceable, the same shall not be construed to affect any other valid portion hereof, but all valid portions hereof shall remain in full force and effect and to this end all. provisions of this Ordinance are hereby declared to be severable. Section 6:- 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 13`s day of July, 2000. PETE C. ALFARO, Mayor ATTEST: GARY W. SMITH, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney 0 c:klh25 I \ council \ord inancc\ ElastomersRcinvcstmentZoncordinancc 2 STATE OF TEXAS) ® COUAiTY OF HARRIS) DESCRIPTION of an 11.3437 acre tract of land situated in the Harvey Whiting Survey, Abstract 840, Hams County, Texas, out of and a part of that certain 99.782 acre tract of land conveyed by Hance Busch, et al, to Texas Olefins Company by Deed dated June 7, 1974 and recorded in County Clerk's File No. E176573 of the Official Public Records of Real Property of Hams County, Texas; out of and a part of that certain 31.394 acre tract of land conveyed by J. Livingston Kosberg, et al, to Texas Olefins Company by Deed dated May 16, 1975 and recorded in County Clerk's File No. E440858 of the Official Public Records of Real Property of Hams County, Texas; and out of and a part of that certain 2.52 acre tract of land conveyed by Bill Bishop, et al, to Texas Olefins Company by Deed dated March 12, 1976 and recorded in County Clerk's File No. E712624. This 11.3437 acre tract of land is more particularly described by the following metes and bounds, to -wit: NOTE: BEARINGS ARE BASED ON DEED BEARINGS AND FOUND MONUMENTS IN THE NORTH LINE OF THAT CERTAIN 24.921 ACRE TRACT OF LAND ("EXHMIT A -1 ") CONVEYED BY TEXAS OLEFDJS COMPANY TO ENICHEM ELASTOMERS AMERICAS, INC., BY DEED DATED MARCH 28, 1991 AND RECORDED IN COUNTY CLERK'S FILE NO. N070826 OF THE OFFICIAL PUBLIC RECORDS OF REAL PROPERTY OF HARRIS COUNTY, TEXAS. COMIv1ENCING at a % inch iron rod in the West right -of -way line of Decker Drive (right -of -way width varies) in the East line of said 31.394 acres, at the Northeast corner of said 24.921 acres. THENCE: North 89 deg. 47 min. 32 sec. West along the North line of said 24.921 acres for a distance of 359.82 feet to a point for the Southernmost Southeast comer and POINT OF BEGDITNI G of this tract. THENCE: Continue North 89 deg. 47 min. 32 sec. West along the Westernmost South-.line'of this tract and the North line of said 24.921 acres for a distance of 378.03 feet to a-point for a Southwest corner of this tract. THENCE: North 39 deg. 28 min. 48 sec. West along a West line of this tract for a distance of 33.14 feet to a point for an interior corner of this tract. THENCE: South 50 deg. 31 min. 11 sec. West along an exterior line of this tract for a distance of 39.93 feet to a point for an exterior corner of this tract. THENCE: North 39 deg. 28 min. 48 sec. West along a West line of this tract for a distance of 24.00 feet to a point for an exterior corner of this tract. THENCE: North 50 deg. 31 min. 11 sec. East along an exterior line of this tract for a distance of 39.91 feet to a point for an interior comer of this tract. PAGE 2 - 1 1.3437 ACRES. ® THENCE: North 39 deg. 28 min. 59 sec. West along_ a West line of this tract for a distance of 12.00 to a point for an interior corner of this tract. THENCE: South 50 deg. 31 min. 08 sec. West along an interior line of this tract for a distance of 3.98 feet to a point for an exterior corner of this tract. THENCE: North 39 deg. 28 min. 48 sec. West along a West line of this tract for a distance of 505.43 feet to a point for the point of curvature-of a curve to the right, concave Southeasterly. THENCE: Along and around said curve to the right in a Northeasterly direction, said curve has a radius of 76.00 feet, a central angle of 90 deg. 00 min. 00 sec., a chord bearing and distance of North 05 deg. 31 min. I2 sec. East 107.48 feet, for an arc length of 119.38 feet to the terminus point of said curve. THENCE: North 50 deg. 31 min. 11 sec. East along the Westernmost North line of this tract for a distance of 322.10 feet to a point for an interior comer of this tract. THENCE: North 39 deg. 10 min. 38 sec. West along the Northernmost West line of this tract for a distance of 89.00 feet to a point for the Westernmost Northwest corner of this tract. THENCE: North 51 deg. 10 min. 16 sec. East along the Easternmost North line of this tract for a distance of 207.60 feet to a point in the West right -of -way line of Decker Drive and the East line of said 99.782 acre tract for the Northeast comer of this tract. THENCE: South 33 deg. 20 rain. 03 sec. East along the East line of this tract, the East line of said 99.782 acre tract and the West right -of -way line of said Decker Drive fora distance of 321.37 feet to a 5/8 inch iron rod for an angle-point in.said line at the Northwest corner of.that certain 32.425 acre tract of land described in-Volume 6837 at Page 301 of the Deed Records-of Harris County, Texas, the Northwest comer of said 31.394 acre tract and the Easternmost Northeast comer of said 99.782 acres. THENCE: South 39 deg. 29 min. 00 sec. East along the East line of this tract, the East line of said 99.782 acres and the West right -of -way line of said Decker Drive for a distance of 659.09 feet. to a point for the Easternmost Southeast comer of this tract. THENCE: South 50 deg. 31 min. 00 sec. West along the Easternmost South line of this tract for a distance of 276.88 feet to the PLACE OF BEGINNING and containing within these boundaries 11.3437 acres of land. • STATE OF TEXAS) 40 COUNTY OF HARRIS) DESCRIPTION of a 0.7922 of an acre tract of land situated in the Harvey Whiting Survey, Abstract 840, Harris County, Texas; out of and a part of that certain 24.921 acre tract of land described as "Exhibit A -1" in Deed dated March 28, 1991 from Texas Olefins Company to Enichem Elastomers Americas, Inc., recorded in County Clerk's File No. N070826 of the Official Public Records of Real Property of Harris County, Texas. This 0.7922 of an acre tract of land is more particularly described by the following metes and bounds, to -wit: NOTE: BEARINGS ARE BASED ON DEED BEARINGS AND FOUND MONUMENTS IN THE NORTH LINE OF SAID 24.921 ACRE TRACT OF LAND. COMMENCING at a % inch iron rod in the West right -of -way line of Decker Drive (right -of -way width varies) at the Northeast comer of said 24.921 acres. THENCE: North 89 deg. 47 min. 32 sec. West along the North line of said 24.921 acres for a distance of 359.82 feet to a point for the Northeast corner and POINT OF BEGINNING of said tract herein described. THENCE: South 50 deg. 31 min. 00 sec. West along the East line of this tract for a distance of 252.44 feet to a point for the Southeast comer of this tract. THENCE:- WEST along the South Iine of this tract for a distance of 49.84 feet to a point for the Southwest comer of this tract. THENCE: North 39 deg. 28 min. 48 sec. West along the West line of this tract for a distance of 209.74 feet to a point in the North line of said 24.921 acres for the North west corner of this tract. THENCE: South 89 deg. 47 min. 32 sec. East along the North line of this tract and the North line of said 24.921 acres for a distance of 378.03 feet to the PLACE OF BEGINNING and containing within these boundaries 0.7922 of an acre of land. n STAVE OF TEXAS) COUNTY OF HARRIS) DESCRIPTION of a 0.0436 of an acre tract of land situated in the Harvey Whiting Survey, Abstract 840, Harris County, Texas; out of and a part of that certain 24.921 acre tract of land described as "Exhibit A -1" in Deed dated March 28, 1991 from Texas Olefins Company to Enichern Elastomers Americas, Inc., recorded in County Clerk's File No. N070826 of the Official Public Records of Real Property of Harris County, Texas. This 0.0436 of an acre tract of land is more particularly described by the following metes and bounds, to -wit: NOTE: BEARINGS ARE BASED ON DEED BEARINGS AND FOUND MONUMENTS IN THE NORTH LINE OF SAID 24.921 ACRE TRACT OF LAND. COMMENCING at a'' /.2 inch iron rod in the West right -of -way line of Decker Drive (right -of -way width varies) at the Northeast corner of said 24.921 acres. THENCE: North 89 deg. 47 min. 32 sec. West along the North line of said 24.921 acres for a distance of 359.82 feet to a point. THENCE: South 50 deg. 31 min. 00 sec. West for a distance of 252.44 feet to a point. THENCE: WEST for a distance of 22.03 feet to a point for the Northeast corner and POINT OF BEGINNING of said tract herein described. THENCE: SOUTH along the East line of this tract for a distance of 95.00 feet to a point for the Southeast corner of this tract. THENCE: WEST for a.distance.of 20.00 feet to a point for the Southwest,corner of-this.tract. THENCE: NORTH along the West line of this tract for a distance of 95,00 'feet to a point for the Northwest comer of this tract. THENCE: EAST along the North line of this tract for a distance of 20.00 feet to the PLACE OF BEGINNING and containing within these boundaries 0.0436 of an acre of land. • ORDINANCE NO. 7872 AN ORDINIANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, CREATING THE ENICHEM REINVESTMENT ZONE FOR TAX ABATEMENT ® PURPOSES PURSUANT TO RESOLUTION NO. 1262 OF THE CITY COUNCIL OF THE CITY OF BAYTOWN; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE-SUBJECT, AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. #*#################*#!#*# rt## rt##### rtrt##### rtrtrt# rtrtrtrtrtrtrt # # #rt # * #rtrtrtrt #rtrt # # # # # # # # # * # # # ## WHEREAS, the creation and retention of job opportunities that bring new wealth is one of the highest civil priorities of the City of Baytown (the "City "); and WHEREAS, EniChem Elastomers Americas, Inc. ( "EniChem ") desires to expand and modernize its current manufacturing facility for product distribution throughout the United States and for export; and WHEREAS, EniChem has represented that it will increase the value of its property by approximately FOUR MILLION EIGHT HUNDRED SEVENTY THOUSAND AND NO 1100 DOLLARS ($4,870,000.00) after the abatement has expired; and WHEREAS, EniChem has represented that the modernization project will result in the preservation of jobs for all of its current ninety -eight (98) employees and will create approximately forty (40) construction jobs; and WHEREAS, the City Council of the City of Baytown has held a public hearing on January 9, 1997, on the designation of the proposed reinvestment zone to be known as the EniChem Reinvestment Zone; and WHEREAS, the City Council of the City of Baytown finds that it is reasonably likely that the creation of the proposed zone will contribute to the expansion of primary employment and will attract major investment in the proposed zone that will be of benefit to the property and that will contribute to the economic development of the City; and WHEREAS, the improvements - sought to be_constructed.within the proposed -zone are feasible and practicable and_will be-of benefit to the land-to be included-within the proposed zone and to the City; NOW THEREFORE 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 establishes and designates a reinvestment zone to be known as the EniChem Reinvestment Zone (the 'Zone') for the purpose of encouraging economic development though commercial or industrial tax abatement. This designation shall be effective for five (5) years from the effective date of this ordinance. Section 2: That the Zone encompasses approximately 24.921 acres as more particularly described in Exhibit "A" which is attached hereto and made a part hereof for all intents and purposes. Section 3: That this ordinance shall serve as notice to every taxing unit that includes inside its boundaries property that is located within the boundaries of the Zone of the establishment of the EnicChem Reinvestment Zone by the City, and the City Clerk is hereby directed to send certified copies of this Ordinance to all such affected taxing units. r� U Section 4: Should any portion or part of this ordinance be held for any reason to be invalid and unenforceable, the same shall not be construed to affect any other valid portion hereof, but all valid portions hereof shall remain in full force and effect and to this end all provisions of this ordinance are hereby declared to be severable. Section 5: 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 January, 1997. ATTEST: EILEEN P. HALL, City Clerk APPROVED AS TO FORM: u FjAACIO R.A v I , SR., i Attorney c:k10Ocounciilordinu%ccV -WA 1iduncnlRcinvc.UnentZ*nc.EniC1mn • /� �'Y� PETE C. AL RO, Mayor :'j r 'r� TRACT 1 H~i'ES AND BOLDS DESCRIPTION FOR 1. 26.921 ACAS (1,085,55] SQDhRX FEET) 'TRACT OUT OT M EXRVYy WE27.,NC SURWY, e�+aSTR�iL�T NO. 840 HARRIS CDI RTy, TZXAS Being a tract or parcal s containing 14.921 acres (2-0e5,552 quare fast) oS land out of the Harvey Whiting 6ur-vey, Abstract No. 640, Harris County, Texas, being also out of those certain 99.782 acre- tract, 31.394 &ore tract and 2.52 ac:a L_set in deade to the Texas Olefins CoMpany of r4Qoord in Plln Cods Nut hers 105 -07 -0493, 121 -02 -1001 and 137 -16 -1554 of the Deed Records or hErrls County, Taxaa, and being more particularly described by metes and bounds as follows; CO .rNCINO at the sauthwcst corner of the said 99.7x2 acre I tract, from which a 8" wood post In concrete was found 0.38 Seat North of said corner, and being in the nOrthQrly right - of -way Inc 1 of Baker Road (80.001 vide); T7:ENCE with the 8outharly line of acid 99.782 acre the northerly right -,l -way nett and a line of raid Baker Road, East ror POINT orae of 1535.89 feet to a 1/2 -Inch iron rod oat for the NT OF BEGIN):INC and being in the easterly right-of-way line of a San Jacinto River Authority Canal Right-or-way (110' vlda) of record In VOluce 1163, Paga 576 of the D..d Records of Harris County, Taxes and being the southwsgt corner herain; T}'.E3+CE with.. said easterly- right -of -way line of the Ban Jacinto Rivsz,.AuLhor.ity. Canal right -of -way and the­ vestarly line herein, North- 00. deg. 20. sin. 49 sac. Kest for a distannco of 371.72 fast (Deed - VOrLn DD d +q. 39 airs. mast, 370.24 feat) to a 1/2 -inch Iron rod found for corner, the beginning of a curve to the left: 4 THENCE with said saatarly right -of -way line and tha westerly line.herain along said curve to the left having a angle of 36 .deg. 21 tin.. a radius central of ]Db.62 root a chord bearing Of North 18 deg. 31 min. 19 sac_ West, a chord i diatancs ar 246.80 test for an arc distance of 250.99 test zo i a 1/2-.inch Iran rqd mat for corner, the and at maid curvet • EXHIBIT A 6 . ' page 2 TXOZ p THENCE, continuing v the i'esterly line erein Bald easterly right -of -va (Decd - North 37 de North 35 dog. 15 min. 29ysec. and feet to a 9• 00 min. Giant ) for a distance of 1319.30 herein; 1/7 -inch iron .rod sat for the northwest Corner TXZNCE leaving said Gasterl northerly lino herein, etorlye9rdght -of -way lino, With the a distance of 928.55 toot aQa g 47 min. 32 sec. acre tract and P ue Gaut line of Said a99,782 a distance ct the westerly line of said 2.52 3.52 acre 1368.59 loot ass acre tract, at LraCt and P the easterly line o2 said tract, and cantinuln• Westerly line of said 31.394 acre a 1/2 -inch i 4 for a total distance of 2498 being to bale Iron rod get for g also in the aastarly line Of Gsaid31�394ca me rtrher being Sn t1�a westerly herein, (State highway No. 730 );right -oZ -vay line of Decker Drive Z71F_NCf with the easterl westerly right -of_va Y line of said 31.394 acre tract, the easterly lino her4iny line °f said Docker Drive (Deed SovtR 10 dog- t11 ]9 g• 29 min. 00 84C. dn d the Sou da feet to a g• 02 min• Past) for a East easterly 1/2 -inch iron rod set for distance of -1a0.S3 the e y line herein, being also a�9 dn41e, point it, the ubject 74.921 acre tract tha moat easterly point of fad a for the post northerly and from which a 5/8 -inch Iran Falstaff Distributing Comp&M Y acrner or the northeast ca Y tract vas 3.516 acre rner of said 31.344 acre found for the deg. 29 a"�n• 00 sec. FeAt for a diet tract bears South 75 anre a1 78,41 taetl ??CtNCE leaving the easterl and.contlnu±ng with the - eaatline of said 31. 394 acre tract., 43 min. 18 sec. west for a duty line herein. ,- South. ouch Iron a.ncG of 4958. Z8 deg. rod' set for Corner: S9 feet• to a 1 /g_ AT}1�NCE continuing vith said 32 sec, easterly line, Korth Bp Iron rod sat vest for ° distance of 346.93 feet deq. 47 for corner; to a 1/2 -1nch TNPWCL continuing With said easterl men. 28 sac. East for a distance otYag3i�Z�leSouth 00 de Iron rod mat for comer' 9l 1h /1 +1nch V ■ f f P5940 3 TxoL P THENCE continuing with said casterly 11ne, North 89 dog. 47 min. 32 sec. Wont for a distance of 176.24 fast to a 1/2 -inch iron rod set Tor corner; THENCE continuing With "'d enatarly ling, South 00 dog. 11 min. 38 sec. Kest fora distanca of 540.94 foot to a 1/2 -inch iron rod not for the aouthaast corner herein, being also in the northerly right -of -Way line of said Baker Road) THENCE With said northerly right -of -way line, and the Is southerly line herein, meet at a distanoe of 39.33 feet pass a 1/2 -inch iron rod sat for thA southwest corner of Said 71.394 acre tract and being the southeast corner of said It 99.782 acra tract, and continuing for a total dist&ncs.of 159.33 feet to the POINT Of BEGINNING and containing x4.921 acraa (1,025,553 square fast) of land, =ore or less. March 26, 1991 Primary site r,1 it D �.. �. • q ... I IALD J. j-2r[ !r;,�;i \ Y 4572 SLlA� n :1 EXHIBIT D Subject Property D -1 11.3437 Acre Tract D -2 0.7922 Acre Tract D -3 0.0436 Acre Tract STATE OF TEXAS) ® COUNTY OF HARRIS) DESCRIPTION of an 11.3437 acre tract of land situated in the Harvey Whiting Survey, Abstract 840, Harris County, Texas, out of and a part of that certain 99.782 acre tract of land conveyed by Hance Busch, et al, to Texas Olefins Company by Deed dated June 7, 1974 and recorded in County Clerk's File No. E 176573 of the Official Public Records of Real Property of Hams County, Texas; out of and apart of that certain 31.394 acre tract of land conveyed by J. Livingston Kosberg, et al, to Texas Olefins Company by Deed dated May 16, 1975 and recorded in County Clerk's File No. E440858 of the Official Public.Records of Real Property of Harris County, Texas; and out of and a part of that: certain. 2.52 acre tract of land conveyed by Bill Bishop, et al, to Texas Olefins Company by Deed dated March-1 2, 1976 and recorded in -County Cferk's File No. E712624. This 11.3437 acre tract of land is more -p arti cularly. described by the following metes and-bounds, to -wit: NOTE: BEARINGS ARE BASED ON DEED BEARINGS AND FOUND MONUMENTS IN THE NORTH LINE OF THAT CERTAIN 24.921 ACRE TRACT OF LAND ('EXHIBIT A -1 ") CONVEYED BY TEXAS OLEFINS COMPANY TO ENICHEM ELASTOMERS AMERICAS, INC., BY DEED DATED MARCH 28, 1991 AND RECORDED IN COUNTY. CLERK'S FILE NO. N070826 OF THE OFFICIAL PUBLIC RECORDS OF REAL PROPERTY OF HARRIS COUNTY, TEXAS. COMMENCING at a' /2 inch iron rod in the West right -of -way line of Decker Drive (right -of -way width varies) in the East line of said 31.394 acres, at the Northeast comer of said 24.921 acres. THENCE: North 89 deg. 47 min. 32 sec. VA%est along the North line of said 24.921 acres for a distance of 359.82 feet to a point for the Southernmost Southeast corner and POINT OF BEGDq.N'ING of this tract. THENCE- .Continue North- 89:deg.:47 min. 32 sec. West along-the Westernmost-South line of.this - tract and the North line of,said-24:92F acres -for a distance ofl-37.8.03 feet to o-a point -for. a- Southwest.. comer of this tract. THENCE: North 39 deg. 28 min. 48 sec. West along a West line of this tract for a distance of 33.14 feet to a point for an interior comer of this tract. THENCE: South 50 deg. 31 min. I I sec. West along an exterior line of this tract for a distance of 39.93 feet to a point for an exterior corner of this tact. THENCE: North 39 deg. 28 min. 48 sec. West along a West line of this tract for a distance of 24.00 feet to a point for an exterior comer of this tract. THENCE: North 50 deg. 31 min. 11 sec. East along an exterior line of this tract for a distance of 39.91 feet to a point for an interior corner of this tract. • PAGE 2 - 11.3437 ACRES. ® , THENCE: Notch 39 deg. 28 min. 59 sec. West along a West line of this tract for a distance of 12.00 to a point for an interior corner of this tract. THENCE: South 50 deg. 31 min. 08 sec. West along an interior line of this tract for a distance of 3.98 feet to a point for an exterior corner of this tract. THENCE: North 39 deg. 28 main. 48 sec. West along a West line of this tract for a distance of 505.43 feet to a point for the point of curvature of a curve to the right, concave Southeasterly. THENCE: Along and around said curve to the right in a Northeasterly direction, said curve has a radius of 76.00 feet, a central angle of 90 deg. 00 min. 00 sec., a chord bearing and distance of North 05 deg. 31 min. 12 sec. East 107.48 feet, for an art; length of 119.38 feet to the terminus point of said curve. THENCE: North 50 deg. 3I min. 1 I sec. East along the Westemmost North line of this tract for a distance of 322.10 feet to a point for an interior corner of this tract. THENCE: North 39 deg. 10 min. 38 sec. West along the Northernmost West lane of this tract for a distance of 89.00 feet to a point for the Westernmost Northwest corner of this tract. THENCE: North 51 deg. 10 min. 16 sec. East along the Easternmost North line of this tract for a distance of 207.60 feet to a point in the West right -of- -way line of Decker Drive and the East line of said 99.782 acre tract for the Northeast corner of this tract. THENCE: South 33 deg. 20 min. 03 sec. East along the East line of this tract, the East line of said 99.782 acre tract and the West right -of -way line of said Decker Drive fora distance of 321.37 feet to a 5/8 inch iron rod for an angle point in said line at the Northwest corner of that certain 32.425 acre tract of land described in Volume 6837 at Page 301 of the Deed Records of Harris Co Texas, the Northwest corner of said 31.394 acre tract and the Easternmost Northeast corner of said unty, 99.782 acres. THENCE: South 39 deg. 29 min. 00 sec. East along the East line of this tract, the East line of said 99.782 acres and the West right -of -way line of said Decker Drive for a distance of 659.09 feet point for the Easternmost Southeast corner of this tract. . to a THENCE: South 50 deg. 31 min. 00 sec. West along the Easternmost South line of this tract for a distance of 276.88 feet to the PLACE OF BEGINNING and containing within these boundaries 11.3437 acres of land. • STATE OF TEXAS) C(5UNTY OF HARRIS) DESCRIPTION of a 0.7922 of an acre tract of land situated in the Harvey.Whiting Survey, Abstract 840, Harris County, Texas; out of and a part of that certain 24.921 acre tract of land described as `Exhibit A -1" in Deed dated March 28, 1991 from Texas Olefins Company to Enichetn Elastomers Americas, Inc., recorded in County Cleric's File No. N070826 of the Official Public Records of Real Property of Harris County, Texas. This 0.7922 of an acre tract of land is more particularly described by the following metes and bounds, to-wit: NOTE: BEARINGS ARE.BASED ON DEED BEARINGS AND FOUND MONUMENTS IN THE' NORTH LIVE OF SAID 24.921 ACRE TRACT OF LAND. COMMENCING at a % inch iron rod in the West right -of -way line of Decker Drive (right -of -way width varies) at the Northeast comer of said 24.921 acres. THENCE: North 89 deg. 47 min. 32 sec. West along the North line of said 24.921 acres for.a distance of 359.82 feet to a point for the Northeast comer and POINT OF BEGINNING of said tract herein described. THENCE: South 50 deg. 31 min. 00 sec. West along the East line of this tract for a distance of 252.44 feet to a point for the Southeast corner of this tract. THENCE: WEST along the South line of this tract for a distance of 49.84 feet to a point for the Southwest comer of this tract. THENCE: North 39 deg. 28 min. 48 sec. West along the West line of this tract for a distance of 209.74 feet to.a point. in.the North-line of said.24.921 acres for-the North ;west. comer of this tract. THENCE: _South.89 deg. 47 min. 32 sec. East along the North, line of this tract and.the North line of said 24.921 acres for a distance of 378.03 feet to the PLACE OF BEGINNING and containing within these boundaries 0.7922 of an acre of land. STATE OF TEXAS) COUNTY OF HARRIS) DESCRIPTION of a 0.0436 of an acre tract of land situated in the Harvey Whiting Survey, Abstract 840, Harris County, Texas; out of and a part of that certain 24.921 acre tract of land described as "Exhibit A -1" in Deed dated March 28, 1991 from Texas Olefins Company to Enichem Elastomers Americas, Inc., recorded in County Clerk's File No. N070826 of the Official Public Records of Real Property of Harris County, Texas. This 0.0436 of an acre tract of land is more particularly described by the following metes and bounds, to -wit: NOTE: BEARINGS ARE BASED ON DEED BEARINGS AND FOUND MONUMENTS IN THE NORTH LINE OF SAID 24.921 ACRE TRACT OF LAND. COMMENCING at a'' /s inch iron rod in the West right -of -way line of Decker Drive (right -of -way width varies) at the Northeast comer of said 24.921 acres. THENCE: North 89 deg. 47 min. 32 sec. West along the North line of said 24.921 acres for a distance of 359.82 feet to a point. THENCE: South 50 deg. 31 min. 00 sec. West for a distance of 252.44 feet to a point. THENCE: WEST for a distance of 22.03 feet to a point for the Northeast comer and POINT OF BEGINNING of said tract herein described. THENCE: SOUTH along the East line of this tract for a distance of 95.00 feet to a point for the Southeast corner of this tract. THENCE: WEST for a distance of 20.00 feet to a point for the Southwest corner of this tract. THENCE: NORTH along the West line of this tract for a distance of 95.00 Feet to a point for the Northwest corner of this tract. THENCE: EAST along the North lane of this tract for a distance of 20.00 feet to the PLACE OF BEGINNING and containing within these boundaries 0.0436 of an acre of land. �11