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CC Resolution No. 1291 2488 RESOLUTION NO. 1291 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, SUPPORTING A FOREIGN TRADE ZONE SUBZONE DESIGNATION FOR U.S. DENRO STEELS, INC., AND SAW PIPES, USA, INC., BY THE PORT OF HOUSTON AUTHORITY; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, SAW Pipes, USA, Inc., plans to purchase and reopen the U.S. Steel Plate Mill that has been closed since 1987; and WHEREAS, the reopening of the U.S. Steel Plate Mill is expected to create four hundred (400) new jobs and add one hundred (100) new jobs to the existing Pipe Mill; and WHEREAS, SAW Pipes will continue to pay ad valorem taxes on all land, buildings and equipment and agrees to enter into an agreement with the City of Baytown for payment of future inventory taxes so that the City of Baytown will not be adversely affected by the Foreign Trade Zone subzone designation; and WHEREAS, U.S. Denro Steels, Inc., shall pay ad valorem taxes on all inventory which does not meet the strict definition of"exempted inventory" under the rules and regulations of the Federal Foreign Trade Zone Board; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That in consideration of the premises, the City Council of the City of Baytown, Texas, hereby registers its support of the Foreign Trade Zone subzone designation requested by and on behalf of U.S. Demo Steels, Inc., and SAW Pipes, USA, Inc., by the Port of Houston Authority. Section 2: That the support referred to in Section 1 herein is expressly conditioned upon the City of Baytown's receipt of the following at all times while the Foreign Trade Zone subzone designation requested by U.S. Denro Steels, Inc., and SAW Pipes, USA, Inc. is effective: a. ad valorem taxes on all land, buildings, and equipment of SAW Pipes USA, Inc.; b. payments in lieu of ad valorem taxes by SAW Pipes, USA, Inc., on inventory in the same manner and amounts as if the Foreign Trade Zone subzone designation requested by and on behalf of SAW Pipes, USA, Inc., was not granted by the Port of Houston Authority; and C. ad valorem taxes on all inventory of U.S. Denro Steels, Inc., not meeting the strict definition of"exempted inventory" under the rules and regulations of the Federal Foreign Trade Zone Board. 2489 Section 3: This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown. rNTRODUCED, READ and PASSED, by the affirmative vote of the City Council of the City of Baytown this the 24th day of October, 1996. PETE C. ALFARO, Mayor ATTEST: mac) 1 ;76� EILEEN P. HALL, City Clerk A__PP//ROVED AS TO FORM: ` W, �� efe'NACIO RAMIRE , City Attorney c:klh23\city wuncil\resolutions\ForeignTradeZone.Support -2-