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Ordinance No. 11,811ORDINANCE NO. 11,811 AN ORDINANCE OF THE CITY COUNCIL OF THE' CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECLFIT' AND THE CITY CLERK TO A'i"TES'I"' TO A 2011 INTERIM INDUSTRIAL DISTRICT PAYMENT AGREEMENT WITH LS ENERGY PROPERTIES, LLC AND LS ENERGY FABRICATION, LLC; AND PROVIDING FO "I EFFECTIVE DATE'THEREOF. * * * * * * * * * * * * * * * * * * * * * * Ai * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** *****Ac * * * * * * * * * * * * * * BE IT ORDAINI"',D BY 'I'I IE CITY COUNCIL 01" THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, "I'exas, hereby authorizes and directs the City Manager and City Clerk of the City of Baytown to execute and attest to a 2011 Interim Industrial District Payment Agreement with LS 17nergy Properties, LLC and LS Energy Fabrication, LLC, A copy of said agreement is attached hereto, marked Exhibit *A" and incorporated herein for all intents and purposes. Section 2: This ordinance shall take effect immediately fron'i and after its passage by the City Council of the City of Baytown. I INTRODUCED, RFAD, and PASSED by the affirmative of the City Council ofthe City of Baytown, this the 8 d I day of December, 2011. 1 STY,I)N],N , DONCARLOS, 6IG ACID RAMIREZ,SR,,CjAttorney Iffleccinher KLSE'nergy icaii onInteri m IDA] lay inuwAgreeinenO (h nal ice d(r� Mr. Brian Slianklin President LS Energy Properties, LLC LS E.nergy Fabrication, LLC 8555 W. Monroc Road I louston, TX 77061 Re: 2011 Interitil Industrial District Pa.ymcnt CCAD Account Numbers: 00023 - 00000 - £701800 - ?50210 00023-00000-00800-350220 00023-00000-00800-350230 036-2-646861-000010 036-2-646861-000020 036 -2- 646861- 0000:30 Dear Mr. Slianklin: III order For the real and personal properties associated with the above-referenecd account numbers Owned by LS Energy Properties, LLC and LS Fnergy Yabrication, LLC (collectively -LSF1 Parties") located in Baytown Industrial District No. 3 to retain its industrial district status, LSE Parties must sign in a joint and several capacity «a new company industrial district agreement ( "ID A ") with tile City of Baytown (the "City"). You have expressed a willingness to do so in lieu of annexation, but YOU have indicated that the most recent certified values Im LSE Parlics' properties, as more specifically identified in Exhibit "A" which are attached hereto and incorporated herein for all intents and purposes, are currently being contested. Therefore, instead of executing an IDA, which locks in tile base value as most recently certified by the Chambers County Appraisal District ffi• SCVC11 Years, you desire to enter into this letter agreement whereby LSE Parties Will be jointly and severally obligated to make a norl- refundable industrial District P,41)'111CIlt if] the 81TIOLIT11 of TWELVE THOUSAND TWO HUNDRED THIRTY-ONE' AND 811100 DOLLARS (S 12,231.81) to the City by December 31, 2011, as an interim payment pending the resolution of the l)rOj)CJ-t)' N",I]Lle Contest with Chambers County Appraisal District, Delinquent amounts shall be inimediately subject to the same penalties, interest, attorneys, Ices and costs Of Collection as recoverable by the City in the case ofdelin(limit ad valorem taxes. The City shall have a lien upon the LSE1 Parties' properties upon any delinquency in the interim industrial district payment, Furthermore, it is e xpressiy understood by all parties that: the 2011 Industrial District Interim Pay111QW May be 'MIJUSted up or down dependent upon the outcome ofthe valuation contest described hereinabove; and the 2011 tax year included in this letter agremmit shall be the first year of* the new company 111CILIStrial District Agreement, which the LSE Parties Will hereinaller exceme oil Or before May 31, 1, 2012, atad Which Will LISC as its base value (lie 2011 value as finally certil'ied by the Chambers County Appraisal District. 2401 i\hrket Street P'.0, Box 424 77522-0424 (281)422-8281 F,,ix (281)420-6SM IS Energy Properties, LLC Interim IDA Payment Letter Agreement November 7, 2011 Page 2 Each of the parties expressly reserves unto itself all rights, privileges and remedies that exist either by reason or in consequence of this letter agreement. Failure of either party hereto to insist on 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. This letter agreement shall be effective and binding on the parties thereto upon execution hereof on behalf of the parties to this Agreement and supersedes any prior or existing agreements between LSE Parties and the City relating to the industrial districts and associated payments. Should the above - referenced terms and conditions be acceptable to you, please execute this letter agreement and return the same to my attention at the above- referenced address. Thereafter, I will present it to the City Manager for approval. Should you have any questions or if I may be of any assistance, please do not hesitate to contact me. Thank you for your attention in this matter. Sincerely, Ignacio Ramirez, Sr. City Attorney Enclosure AGREED: LS ENERGY PROPERTIES, LLC (Signature) (Date) (Printed Name) (Title) ATTEST: (Signature) (Printed Name) (Title) IS Energy Properties, LLC Interim IDA Payment Letter Agreement November 7, 2011 Page 3 AGREED: LS ENERGY FABRICATION, LLC (Signature) (Date) (Printed Name) (Title) ATTEST: (Signature) (Printed Name) (Title) AGREED: CITY OF BAYTOWN ROBERT D. LEIPER (Date) City Manager ATTEST: LETICIA BRYSCH City Clerk 1 \Cobfa011lepM (a=\Fdcs\Conuacu12009 MA Form1LS EncWPmpadesRePaymwt& othCompaWcsNewL mSuage11072011 tcmdoc LONESTAR ENERGY FABRICATION 13,60,000 2050 FM 1405 MFG BUILDINGS 036-2- 646861 -000020 LONESTAR ENERGY FABRICATION 65,000 2050 FM 1405 OFFICE BUILDING 036.2- 646861400030 13.997,558 Exhibit W 2011 Parcel Id Owner Name Market Value Property Tyne Property Location Description Acmunt / Geo Number 49641 LS ENERGY PROPERTIES LLC 76AW Real Estate Cedar Crossing 1L0 Acres Land 000234000040800350210 51024 LS ENERGY PROPERTIES LLC 3,810 Real Estate Cedar Crossing 8.190 Acres Land 0350220 51025 LS ENERGY PROPERTIES LLC 2,240 Real Estate Cedar Crossing 4.810 Acres Land 00023- 000fl040WO- 350230 LONESTAR ENERGY FABRICATION 2501000 2050 FM 1405 MACHINERY & EQUIPMENT 036-2- 646861 -080010 LONESTAR ENERGY FABRICATION 13,60,000 2050 FM 1405 MFG BUILDINGS 036-2- 646861 -000020 LONESTAR ENERGY FABRICATION 65,000 2050 FM 1405 OFFICE BUILDING 036.2- 646861400030 13.997,558 Exhibit W