CC Resolution No. 1253 2418
RESOLUTION NO. 1253
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, REPEALING RESOLUTION NO. 1093 DULY ADOPTED ON JULY
26, 1990 , BY THE CITY COUNCIL OF THE CITY OF BAYTOWN AND
DECLARING SAID RESOLUTION TO HAVE NO FORCE AND EFFECT;
FINDING, DECLARING AND ESTABLISHING THAT MANUFACTURING
INDUSTRIES NEAR THE CORPORATE LIMITS OF THE CITY OF
BAYTOWN RARELY USE BAYTOWN' S MUNICIPAL SERVICES TO THE
SAME EXTENT AS DO PRIVATE CITIZENS AND, CONSEQUENTLY SUCH
MANUFACTURING INDUSTRIES AS A WHOLE SHOULD COMPENSATE THE
CITY OF BAYTOWN PROPORTIONATELY AS TO THEIR USE AND
ENJOYMENT OF SUCH MUNICIPAL SERVICES; AND PROVIDING FOR
THE EFFECTIVE DATE THEREOF .
WHEREAS, orderly economic growth raises the standard of living
and otherwise improves the quality of life for the community as a
whole; and
WHEREAS, the Baytown area has a number of industrial
establishments; and
WHEREAS, it is to the mutual advantage of industries and
municipalities to cooperate whenever possible for the general
advancement of the affected population; and
WHEREAS, it is generally recognized that manufacturing
industries should compensate the City of Baytown proportionately
recognizing their limited use of municipal services, but realizing
that industries derive benefits, both direct and indirect, from
municipal services; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN:
Section 1 : That the City Council of the City of Baytown
hereby repeals Resolution No. 1093 , which was adopted on July 26 ,
1990, and declares said resolution to be without force and effect .
Section 2 : That the City Council of the City of Baytown
hereby finds, declares and establishes that such manufacturing
industries as described above should pay a fair share of tax
revenues to the City of Baytown.
Section 3 : That the City Council further finds, declares
and establishes that such manufacturing industries should not be
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annexed in excess of twenty percent (20o) of the fair market value
of such property, unless otherwise agreed by a manufacturing
industry. Manufacturing industries accepting the benefits of an
industrial district agreement consent to the annexation of twenty
percent (200s) of the fair market value of their properties
Section 4 : That the City Council, having previously
created industrial districts, desires to continue with contractual
arrangements with industries situated in the industrial districts
in the City' s extraterritorial jurisdiction, as provided for in the
Texas Local Government Code, Section 42 . 0743 . The City Council
further desires that all manufacturing industries be treated
equally and that contractual provisions with all such industries
should be uniform and consistent so as to generate equitable
industrial revenues between industries, set uniform boundary lines,
and uniformly apply environmental protection regulations .
Section 5 : It is hereby provided that compensation shall
be determined uniformly for each manufacturing industry as follows :
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:
TOTAL PAYMENT TO CITY = TAX PAYMENT + INDUSTRIAL
DISTRICT PAYMENT
TAX PAYMENT = Tax Rate x Fair Market Value of Industrial
Facility in Annexed Area
INDUSTRIAL = (Tax x Fair Market x Applicable) - Tax
DISTRICT Rate Value of Industrial Payment
PAYMENT Industrial Payment
Facility Rate
[determined
by the City]
The applicable Industrial Payment Rate shall be determined as
follows :
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YEAR OF iNijUSTRIAL PAYMENT
4NTRAT/ RATE
VALiTATICIN
1 .45
2 .48
3 . 50
4 . 50
5 . 50
6 . 50
7 . 50
Section 6 : That the City Council desires to encourage the
establishment and expansion of responsible industry near the City
of Baytown in order to encourage orderly economic growth and thus
enhance the general advancement of the affected population.
New manufacturing industries or expansions to existing
industries, announced after the effective date hereof, may upon
application to the City Council, be entitled to exemptions from
compensation to the City of Baytown in the following manner.
1 . For all qualifying new construction which is located within an
Industrial District and which has a value greater than $20
million, the industrial district payment shall be calculated
as follows :
New = Tax x Fair Market x Applicable New
Construction Rate Value of New Construction
Industrial Construction Industrial
District District
Payment Payment Rate
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a. The applicable New Construction Industrial Payment
Rate shall be determined as follows :
.YEAR:.t7F VALUATION Z7EW GtJNBTRU TIQN
QF NEN7 QITALIF'YING INL777STRIAL
UQNSTRUCTIQN I7ISTIt2CT PAYMEI+TP
RATE
1 Oo
2 Oo
3 200
4 306
5 400
6 and 7 506
b. Such new construction industrial district payment rate
shall apply only to qualified, new construction and then
only to the extent that the value of the manufacturing
industry' s plant in an Industrial District, exclusive of
such qualified, new construction, equals or exceeds the
market value of the Company' s entire facility as of
January 1 of the year immediately preceding the year in
which the industrial district agreement becomes
effective. If, however, in any year, the market value of
the Company' s property is less than such amount, then
value of the new construction shall be added to the
market value; and if such sum exceeds the market value
of the Company' s entire facility as of January 1 of the
year immediately preceding the year in which the
industrial district agreement became effective, the value
in excess of such amount shall be a factor in computing
the new construction industrial district payment .
2 . The new construction industrial district payment shall first
become effective as of January 1, immediately following the
date of the start of construction, which upon the earlier of
the final completion or the expiration of two years, qualifies
as "new construction. " For purposes of determining whether
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new construction is qualified for the new construction
industrial district payment calculation, the City shall verify
that the fair market value of the new construction after the
expiration of two (2) years from the effective date of the new
construction industrial district payment computation, equals
or exceeds $20 million dollars . Thus, if after the two year
period, the fair market value of the new construction is less
than $20 million, the difference between the amount that
would have been paid pursuant to the industrial district
payment calculation and the amount actually paid pursuant to
the new construction industrial district payment shall be
recaptured by the City and shall be paid within sixty (60)
days after written notice of the non-qualification of the new
construction for the new construction industrial district
payment computation by the City or its designee to the
Company. In no case, shall the period to which the new
construction industrial district computation applies,
inclusive of construction and completion, extend beyond the
term of any industrial district agreement .
3 . In the event that the Company allows all or any part of its
new construction industrial district payment to become
delinquent, this portion of the Agreement, dealing
specifically with new construction, shall become null and
void; and all payments previously reduced by virtue of this
section (i .e . , the difference between the industrial district
payment and the new construction industrial district payment)
shall be recaptured and paid within sixty (60) days of the
delinquency date .
4 . Any expansion shall be defined as a new manuacturing facility
or a major addition to an existing manaufacturing facility
which is intended to permanently and significantly increase
production capacity or produce a new product . An investment
which solely replaces or modernizes existing facilities shall
not be considered as an expansion. Replacement-type
expenditures including, but not limited to, repairs,
maintenance, catastrophe, losses, or similar items shall not
be considered or treated as an expansion.
5 . The City Council reserves the right to judge the desirability
of new industry or expansions to existing industry so as to
qualify for the exempt compensation period.
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Section 7 : Industries that qualify for tax abatement under
the City of Baytown Tax Abatement Policy may choose to participate
in such tax abatement program in lieu of participating in the
policy set forth in this resolution. Industries choosing to
participate in tax abatement shall not be eligible to enter into
the Standard Industrial District Contract with the City of Baytown
at the end of the tax abatement period.
Section 8 : This Resolution 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 27th day of July,
1995 .
PETE C. AL ARO, Mayor
ATTEST:
JI
EILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
ze'z�'�5)4
ACIO RAMIREZ, S City Attorney
b:k1h7/res-ida
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