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CC Resolution No. 1296 2495 RESOLUTION NO. 1296 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE MAYOR TO SEND ENICHEM ELASTOMERS AMERICAS, INC., A LETTER OF THE CITY COUNCIL'S INTENT TO ESTABLISH A REINVESTMENT ZONE AND TO CONSIDER GRANTING TAX ABATEMENT AGREEMENTS THEREIN SHOULD ALL OF THE REQUIREMENTS OF BOTH THE PROPERTY REDEVELOPMENT AND TAX ABATEMENT ACT AND THE GUIDELINES AND POLICIES ADOPTED BY COUNCIL BE SATISFIED; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, EniChem Elastomers Americas, Inc. ("EniChem") has submitted Applications for Tax Abatement in Baytown, Texas,which are attached hereto as Exhibit "A" and are incorporated herein for all intents and purposes, WHEREAS, the applications submitted by EniChem appear to meet the requisite guidelines and criteria of the City and the Property Redevelopment and Tax Abatement Act (the "Act"); and WHEREAS, based upon such application, the City of Baytown has initiated the process to designate the area described in Exhibit "B," which is attached hereto and incorporated herein for all intents and purposes, as the EniChem Reinvestment Zone; and WHEREAS, should the City Council consider that the improvements proposed by Enichem are feasible and practical and will be a benefit to the land to be included in the zone and to the City of Baytown after the expiration of any tax abatement agreement hereinafter granted, the City Council may establish a reinvestment zone after a public hearing on the same; and WHEREAS, should the EniChem Reinvestment Zone be established, the City Council may execute a tax abatements with EniChem; and WHEREAS, the City Council finds that it is in the best interest of the City at this time to continue the process (i) to establish the Enichem Reinvestment Zone and (ii) to enter into tax abatement agreements should all of the guidelines and criteria of the City and the Act be satisfied; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the findings of the City Council and its actions approving this resolution taken at this council meeting are hereby approved and adopted. Section 2: That the Mayor is hereby authorized to send EniChem a letter expressing the City Council's intent(i)to establish a reinvestment zone within the area described in Exhibit "B" and (ii)to consider granting tax abatement agreements therein should all of the requirements of both the 2496 Act and the guidelines and policies adopted by the City Council be satisfied. Such letter is attached hereto as Exhibit "C," and incorporated herein for all intents and purposes. Section 3: 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 12th day of December, 1996. PETE C. ALFAAO, Mayor ATTEST: EILEEN P. RALL, City Clerk APPROVED AS TO FORM: ACIO RAMIREZ, SR., ' Attorney c klh25\city council\resolutions\TmAbatemenlApplication.EniChem -2- APPLICATION FOR TAX ABATEMENT IN BAYTOWN, TEXAS The filing of this document acknowledges familiarity and conformance with Guidelines and Criteria for Tax Abatement. 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. Box 424, Baytown, Texas 77522-0424, if property is located inside the corporate limits of Baytown. APPLICANT INFORMATION DATE: 11/05/96 Company Name: EniChem Elastomers Americas, Inc. Address: 2000 West Loop South Houston, TX 77027 Corporation (x) Partnership ( ) Proprietorship ( ) PROJECT INFORMATION Type of Facility See instructions. W Manufacturing Facility ( ) Wholesale Distribution Facility ( ) Research Facility ( ) Service Facility ( ) Entertainment & Recreation Facility ( ) Other Basic Industry Proposed Project Location Address and Legal Description: School District Goose Creek School College District Lee College City or Town Baytown Attach map showing proposed site. EXHIBIT A Describe Product or Service to be provided. Project Description: 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. ( ) New Plant (x) Expansion ( ) Modernization ( ) Other ECONOMIC INFORMATION Construction Estimates: Start Month/Year 06 / 98 Construction Man Years 40 Completion Date 09 / 99 Peak Construction Jobs 65 If Modernization: Estimated Economic Life of Existing Plant 15 Years Added Economic Life From Modernization 15 Years Permanent Employment Estimates (PTE's): Current Employment 98 Number of Jobs (x) Retained or ( 1() Created at start opening 98 in year 1998 5 years into operation 105 in year 2004 Estimated Appraised Value on Site: Personal Improvements Land Property Value January 1, preceding abatement agreement $1,784,000.00 $48,290.000.00 $ 45 3,000.00 , Estimated Value of Abated Properties after abatement $15,500,000.00 __ expires Value upon completion of project personal property and project improvements not subject to abatement $1,784,Ou0.00 $63,790,000.00 $543,000.00 VARIANCE Is the applicant seeking a variance under Section 4 (f) of the Guidelines? ( ) Yes -No If "Yes" attach required supplementary information. OTHER ABATEMENTS Has company made application for abatement of this project by another taxing jurisdiction or nearby counties? (X) Yes ( ) No. If"Yes" provide dates of application, hearing dates if held or scheduled, name of jurisdictions and contacts, and letters of intent. Harris County COMPANY REPRESENTATIVE TO BE CONT C ED: Name: Cosimo Caracciolo if Signature of Company Official Title: V.P. Finance Ccsimo Caracciolo. V.P_ Finance Name & Title of Company Official Address: 2000 West Loop South, Houston, TX 7702.7 Telephone: (713) 940-0782 STATEMENT OF DEPOSITS & FILINGS J� TAX FILING SERVICE FOURTH QUARTER 1995 " , ,,,,, STATEMENT GATE 01/20/96 ENICHEM ELASTOMERS AMERICA INC BR/COMPANY 13/DJE R C LUMPKIN AGENT 005 2000 W LOOP S X2010 COMBO NO HOUSTON TX 77027 LEGAL NAME: ENICHEM ELASTOMERS AMERICAS INC SUI-ID: 01-849323 3 - STATE OF TEXAS QUARTER WAGE RECAP: EMPLOYEES: TOT MALE FEM NEW SUI SUBJECT WAGES 1 ,493,209.82 MONTH 1 113 79 34 HIRE EXCESS SUI WAGES 1,468,252.47 MONTH 2 112 78 34 SUI TAXABLE WAGES 24,957.35 MONTH 3 110 78 32 2 WAGE OTL 113 SUI ER RATE 1 .5300% SUI LIMIT 9,000 COUNTY CODE: 201 ADP FILING RESPONSIBILITY: SUI QUARTERLY CLIENT FILING RESPONSIBILITY: NONE DEPOSIT DETAIL QBU BATCH NBR 95/4/353 DEPOSIT EMPLOYER DATE SUI TOTAL 01-29-96 381.85 381 .85 TOTAL DEPOSITS 381.85 381 .85 TOTAL LIABILITY 381 .85 381.85 *ADJUSTMENT .00 •00 DIFFERENCE .00 .00 We have filed this information with the appropriate agency. •�•- ••�:�^ THIS STATEMENT SHOULD BE RETAINED AS PART OF YOUR TAX RECORDS. N Y K K O O + F Z y N 2 N T o 0 0 0 a'i 0 x z�3 a c o � = m n D 31 -+ ✓I O n U1 UI IA V1 * Y m N o m -1 x m p + y y -i ti D m O F m 3 K w C C C C Y O m m mcm n Z ri Y n O n n M r 9 N O T m y D O y S O r O 3 * F F F F + D 3 < m D K y D T O N m T -. -1 N y 31 y O + m m m m Y A Z IA I x O O y D K N N N N T y ➢ J y m r r m + m u A p n m + x x x x m m m J S A C A Z U J O N m n + m VI m N * y O O m (J J N D 31 31 m m O A m Z m t� m m m m m ? } A m A m + Z m O D r A 37 O m m on < y D D D D O m D N O y i y w m D m n + O m n -Di m m } m f m m m } } 31 m v + ➢ � N N + m lA D 0 Oi p m M y O + A ➢ m m } N N T lA I m J J N N * O O N n 0 O _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _M _ _ m_ f0_ _ _N N w m A UI f } D -lyD O ➢ m _ _ _ _ _ _ _ _ _ _ _ 4 _ _ -_ _ _ _ _ _ _ _ _ _ - f J J y N y N tJ 4) m Z F y y O n O Z . N N N N + D D O -I O M O Z p J + m Ny -I D * N J O m T D m _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ A 3 ♦ ow r D I x 2 to O ➢ A O + ♦ m r K } . m m n . N m + a r p n m O } In m N m * O m O m Q1 m N A m y N D + X C C C C mo s n n n n Z O T * n n n n Y m m m r O O O O 10 m O n _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _•" _ _ Z_ � _ _y_ y_ _i - - - - - - -0 _ _ n m - r - - - - - - - 3 o m y F + m m m m + OOTO I^ C C C C m m C I r } y y y y + VI J\yy D @ O •'I D _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Z3 _ I N + - -o } } 3 O 9 O 9 O m " f * m o m 0 m 0 W i + X X m O m O D 2 _ _ p_ _� _ _A T * 3 _ _ m _ _ _ _ _ m m * Z D Z D n n N O S D N D + T A m A + ti X y 0 D D m N D D J'L _ _L._ IP_ _ _ _ _ _ _ _ _ _� n — } N 3 } * N D m0 1 f } p C) " y O m O I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _i _ _ _ _ _ _ _N _ _ N A p _ _ _ _ _ _ * f m m m * } D m m o O + A A f m 3 3 2Zm to m 3Tv ♦ ➢ ➢ m n O _ + O o + aym O Om 2 EniChem Elastomers Americas, Inc. APPLICATION FOR TAX ABATEMENT HARRIS COUNTY IMI ACT STATEMENT November 1996 SEBS FACILITY - COST $15,000,000 I. INTRODUCTION EniChem Elastomers Americas, Inc. is a wholly-owned subsidiary of Enichem S.p.a., a company of E.N.I. S.p.a. (the eighth (8th) largest petrochemical company in the world). E.N.I. is based in Rome, Italy and maintains subsidiaries and facilities around the world (see attached materials). Enichem Elastomers Americas, Inc. was incorporated in Delaware on February 3, 1988. Enichem Elastomers Americas, Inc. completed construction of its first U.S. manufacturing plant in Baytown, Texas in the summer of 1992. In 1991 the Company moved its sales staff and laboratory from New York to Houston and Baytown. In 1994 Enichem America, Inc. , a sister company of Enichem Elastomers Americas, Inc., moved its Headquarters from New York to Houston. Both Companies are located at 2000 West Loop South in the Galleria of Houston, Texas. Both Companies employ about 158 people in Baytown and Houston facilities. II REASON FOR ABATEMENT EEnichem Elastomers is considering whether to construct the new 0)) SEBS facility in Baytown or Italy. Tax abatement is important to attract the investment to Baytown. J e� 1` u EniChem Elastomers Americas, Inc. III. PROJECT DESCRIPTION A. Project Title: SEBS Production Facility Location: 4803 Decker Drive; Baytown, Texas 77520 Ownership: Enichem Elastomers Americas, Inc. Cost: $15,000,000.00 B. Project Type Capital Investment D. Project Environmental Impact None Company Environmental Compliance History: I'eruil:tY» mm. __ I'etuut.l�ta� fsuea RY mrt?uance7Cssies Air Quality Permit 20311 TNRCC None Solid Waste Registration 3457 TNRCC None Hazardous Waste Activity XC988067070 EPA None Stormwater NPDES TXRO00535 EPA None Industrial Wastewater IU-044 City of Violations received for: Discharge Baytown (1) Foam and solids in discharge (Last occurred December, 1994), (2) Non-sampling incidents. (January, 1996) IV JOBS A. The Manufacturing plant in Baytown currently employs 98 people in both force account and contract labor. (TEC filing attached). B. The importance of this project is that by modernizing the plant, the 98 current jobs will be retained. C. Peak construction will result in 60 jobs with a total construction Eimpact of the equivalent of 60 man years of employment. 0 a D. The current payroll at the Baytown plant only is about J $4,650,000.00 per year. u EniChem Elastomers Americas, Inc. V. LOCAL COMPETITION. A. No local companies compete with Enichem Elastomers Baytown Plant. B. The abatement does not impact other Harris County manufacturers because none produce the same product as Enichem does. VI. ATTRACTION This project has the potential of attracting new business in two ways: First, modernizing the existing manufacturing process and adding a new product line maintains the investment and significance of the Baytown plant to the Headquarters Group in Milan, Italy. Efficient and profitable operation of this plant will undoubtedly lead to future investment and possible new product lines. The new business will be in the form of in-house expansion and increased employment from a Company (Enichem) that is already in and committed to Harris County and Baytown. Second, employment at Enichem represents basic industrial employment. Expansion of this employment base always positively impacts service sector employment. Therefore this project may attract new business or increase employment not only through directly related activities but also through service suppliers, retail and commercial outlets. VII. ALTERNATIVE SITES. The Headquarters Group of Enichem is considering whether or not to invest in the modernization of the Baytown plant or the sister plant in Italy. Approval of tax abatement for the Baytown project will serve to offset the intrinsic interest and cost of operating in Italy, therefore: making this project more feasible. {� VIII. The Company owns its land and has since 1991. E 0 J u n EniChem Elas#omers Americas, Inc. IX. PROJECT DESCRIPTION. Project Type Capital Investment Scope of work: Provide the plant with all necessary facilities for Hidrogenated Block Copolymer (SEBS) production. The SEBS production will be on campaign base and it will be added to the current SBS/SIS production. Major Works List Construction of the Hydrogenating Catalyst section. Construction of Hydrogenation Reaction section. Upgrading of the existing Solvent Recovery Section. Expansion of the existing Chem- Mix Section. Add a new cooling tower. Equipment connection piping Expansion of the paved area. Upgrading of the existing sewer system. Upgrading the Hardware and the Software of the existing control system (DCS) Equipment List. 6 Vessels (Average volume 6,000 GIs) Hydrogenation Reactor 1 Stripper 20 Pumps 7 Mixers 2 Heat Exchangers Construction starting date: June 1998 Construction Finishing date: January 1999 Ec 10) 1 APPLICATION FOR TAX ABATEMENT IN BAYTOWN, TEXAS The filing of this document acknowledges familiarity and conformance with Guidelines and Criteria for Tax Abatement. 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. Box 424, Baytown, Texas 77522-0424, if property is located inside the corporate limits of Baytown. APPLICANT INFORMATION DATE: 11/05/96 Company Name: EniChem Elastomers Americas, Inc. Address: 2000 West Loop South Houston, TX 77027 Corporation (X) Partnership ( ) Proprietorship ( ) PROJECT INFORMATION Tvpe of Facility See instructions. Manufacturing Facility ( ) Wholesale Distribution Facility ( ) Research Facility ( ) Service Facility ( ) Entertainment & Recreation Facility ( ) Other Basic Industry Proposed Project Location Address and Legal Description: School District Goose Creek School College District Lee College City or Town Baytown Attach map showing proposed site. EXHIBIT A EniChem Elastomers Americas, Inc. OFFICERS: Mr. Luciano Topi Chairman & C.E.O. Mr. Cosimo Caracciolo Vice President Finance & Administration Mr. Rosario Composto Vice President Logistics & Purchasing u Describe Product or Service to be provided. Project Description: 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. ( ) New Plant O Expansion ( ii) Modernization O Other ECONOMIC INFORMATION Construction Estimates: Start Month/Year 6 / 97 Construction Man Years 25 Completion Date 1 / 98 Peak Construction Jobs 40 If Modernization: Estimated Economic Life of Existing Plant 15 Years Added Economic Life From Modernization 5 Years Permanent Employment Estimates (PTE's): Current Employment 98 Number of Jobs (x) Retained or ( ) Created at start/opening 98 in year 1997 5 years into operation 98 in year 2oo2 Estimated Appraised Value on Site: Personal Improvements Land Property Value January 1, preceding abatement agreement $1,784,000.00 $48,290,000.00 $543,000.00 Estimated Value of Abated Properties after abatement expires -- $ 4,870,000.00 -- Value upon completion of project personal property and project improvements not subject to abatement $1,784.000.00 $53.160.000.00 $941 00n_n0 VARIANCE Is the applicant seeking a variance under Section 4 (f) of the Guidelines? ( ) Yes (x) No If "Yes" attach required supplementary information. OTHER ABATEMENTS Has company made application for abatement of this project by another taxing jurisdiction or nearby counties? (X) Yes ( ) No. If "Yes" provide dates of application, hearing dates if held or scheduled, name of jurisdictions and contacts, and letters of intent. HARRIS COHrrrY COMPANY REPRESENTATIVE TO BE CONTACTED: Name: Cosimo Caracciolo Signature of Company Official Title: V.P. Finance Cosimo Caracciolo, V.P. Finance Name & Title of Company Official Address: 2000 West Loop South Houston TX Telephone: 713/940-0704 STATEMENT .OF DEPOSITS & FILINGS J� TAX FILING SERVICE " FOURTH QUARTER 1995 STATEMENT DATE 01/20/96 ENICHEM ELASTOMERS AMERICA INC BR/COMPANY 13/DJE R C LUMPKIN AGENT 005 2000 W LOOP S X2010 COMBO NO HOUSTON TX 77027 LEGAL NAME: ENICHEM ELASTOMERS AMERICAS INC SUI-ID: 01-849323 3 - STATE OF TEXAS QUARTER WAGE RECAP: EMPLOYEES: TOT MALE FEM NEW SUI SUBJECT WAGES 1 ,493,209.82 MONTH 1 113 79 34 HIRE EXCESS SUI WAGES 1 ,468,252.47 MONTH 2 112 78 34 SUI TAXABLE WAGES 24,957.35 MONTH 3 110 78 32 2 WAGE DTL 113 SUI ER RATE 1 .5300% SUI LIMIT 9.000 COUNTY CODE: 201 ADP FILING RESPONSIBILITY: SUI QUARTERLY CLIENT FILING RESPONSIBILITY: NONE DEPOSIT DETAIL QBU BATCH NBR 95/4/353 DEPOSIT EMPLOYER DATE SUI TOTAL 01-29-96 381.85 381.85 TOTAL DEPOSITS 381 .85 381 .85 TOTAL LIABILITY 381 .85 381.85 *ADJUSTMENT .00 •00 DIFFERENCE .00 .00 We have filed this information with the appropriate agency. THIS STATEMENT SHOULD BE RETAINED AS PART OF YOUR TAX RECORDS. » K t O O * £ Z I O m S N m N 0 H y H ➢ T T CD3 D C O '-' O O O O + T D D r a ti N 0 0 S 3 m ti 2 N V A N * M m O + ti ti ti ti a m m0O O £ m 3 D + + Z < 3 aim C Z 3 m < C C C C O m m Cm O r r a O m m y D o -.� x o a 0 O w m m m m D * A Z N x 0 m y m I m N (/I N VI m -1 n J r m m m A p y m * X X x X + O m (O J S A A Z v O m C m O + m N m fA * -1 O O N N D S C m O m O O 3 ti m m Z m m O A m m Z m O T m m m + A O m o O n 'C y D D ➢ D O A m O y N m A m A m m " "1 D + D D + o z -D/ m m m * m m + m i + m v Q + O O w O 9 O (J m ENO + G A N N * m D O 00 O ti Q w A > m m + N N m N m J J Ul m O J VI m O + _ _N N + IQ _ O O do IX �. \ D � o p y Q w X X X X _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Q _ _ J_ O _- _ _ _ _ _ _ _ _ _ _ _ _ _y > � Z O O + O n O a * N J O m m a m _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D n m n a 4 D m V O + n m O w _ _ _ _ _ _ _ _ _ _ _ - - - w m C N y c rOF m O + m + m H m D O * y m N m + O S m m m m m y Am y -0 m D + J w y X C C C C £-1 * o n n O + m aD I mO m m I zO m + a n O n + m m m .. a r O O O O m N O O _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Y _ _ - _ _ _ _ _ _ Z_ _ _ti_ Z_ _* - - - - - - - 0o m 3m m 0 F + W W W W * OO mO ml C C C C m N C I r D I »+ nn _ _ O H D N - - - - - - - - - - - - - - - - - - - - - - - - -r - - a- -o a- a- -± - - - - - - - -J Ov o 0 no » + 7. 0 9 0 9 0 m " w + A O m N m N m a w X ti X + v o m o _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _+i _ _ A_ T _ _A_ T _+L _ _ _ _ _ _ _ _ _ 3 m mm A rl- * Z > Z D w ti ti-I O O O N 0 2 D A D + T A D D m y D D _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ A ~ -i ~ + _ _ _ _ _ _yy m y m Z O _ _ P_ J'L _ _2_ 2^_ _ _ _ _ �p _ gOrm OnmO N 3 * w N £m O D O I * * 8 0 m1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _+_ _ _ _ _ _ _ _ _ _ _ _ _ _R. _ _ _ _ _ _ _N N A O w + m m m + w _ D O O O m + A A + m m 3 3 ZZm m l0 3Tv w A a + mnr O O m O + * aym O Om Z EniChem Elastomers Americas, Inc. APPLICATION FOR TAX ABATEMENT HARRIS COUNTY IMPACT STATEMENT November 1996 Finishing Area - Cost $4,870,000 I. INTRODUCTION EniChem Elastomers Americas, Inc. is a wholly-owned subsidiary of Enichem S.p.a., a company of E.N.I. S.p.a. (the eighth (8th) largest petrochemical company in the world). E.N.I. is based in Rome, Italy and maintains subsidiaries and facilities around the world (see attached materials). Enichem Elastomers Americas, Inc. was incorporated in Delaware on February 3, 1988. Enichem Elastomers Americas, Inc. completed construction of its first U.S. manufacturing plant in Baytown, Texas in the summer of 1992. In 1991 the Company moved its sales staff and laboratory from New York to Houston and Baytown. In 1994 Enichem America, Inc. , a sister company of Enichem Elastomers Americas, Inc., moved its Headquarters from New York to Houston. Both Companies are located at 2000 West Loop South in the Galleria of Houston, Texas. Both Companies employ about 158 people in Baytown and Houston facilities. H REASON FOR ABATEMENT E (� In order to retain the 98 jobs located at the Baytown plant, it is vital to remain competitive. Toward this end, the Company is considering whether or not to modernize and upgrade its finishing area here or a 10 EniChem Elastomers Americas, Inc. sister plant in Ravenna, Italy. The availability of tax abatement will be a factor in making the investment in Baytown. III. PROJECT DESCRIPTION A. Project Title: Finishing Area Completion Location: 4803 Decker Drive; Baytown, Texas 77520 Ownership: Enichem Elastomers Americas, Inc. Cost: $4,870,000.00 B. Project Type Capital Investment D. Project Environmental Impact None Company Environmental Compliance History: SO ryPH, w: _ .. ?init g._�.._ 5!4S Y MF! FF. :;. Air Quality Permit 20311 TNRCC None Solid Waste Registration 3457 TNRCC None Hazardous Waste Activity XC988067070 EPA None Stormwater NPDES TXR00C535 EPA None Industrial Wastewater IU-044 City of Violations received for: Discharge Baytown (1) Foam and solids in discharge (Last occurred December, 1994), (2) Non-sampling incidents. (January, 1996) IV JOBS A. The Manufacturing plant in Baytown currently employs 98 people in both force account and contract labor. (TEC filing attached). B. The importance of this project is that by modernizing the plant, the 98 current jobs will be retained. rc u EniChem Elastomers Americas, Inc. C. Peak construction will result in 40 jobs with a total construction impact of the equivalent of 25 man years of employment. D. The current payroll at the Baytown plant only is about $4,650,000.00 per year. V. LOCAL COMPETITION. A. No local companies compete with Enichem Elastomers Baytown Plant. B. The abatement does not impact other Harris County manufacturers because none produce the same product as Enichem does. VI. ATTRACTION This project has the potential of attracting new business in two ways: First, modernizing the existing manufacturing process maintains the investment and significance of the Baytown plant to the Headquarters Group in Milan, Italy. Efficient and profitable operation of this plant will undoubtedly lead to future investment and possible new product lines. The new business will be in the form of in-house expansion and increased employment from a Company (Enichem) that is already in and committed to Harris County and Baytown. Second, employment at Enichem represents basic industrial employment. Expansion of this employment base always positively impacts service sector employment. Therefore this project may attract new business or increase employment not only through directly related activities but also through service suppliers, retail and commercial outlets. VII. ALTERNATIVE SITES. The Headquarters Group of Enichem is considering whether or not to invest in the modernization of the Baytown plant or the sister plant in u EniChem Elastomers Americas, Inc. Italy. Approval of tax abatement for the Baytown project will serve to offset the intrinsic interest and cost of operating in Italy, therefore: making this project more feasible. VHL The Company owns its land and has since 1991. IX. PROJECT DESCRIPTION. Scope of work: Construction of a new line for cooling, drying , and packaging of Block Copolymers based on Styrene, Isoprene, Butadiene. Major Works List Construction of a new portion of building for 6,500 Sq. Ft. of total covered surface. Construction of relevant steel structures for equipment steel support. Upgrading the hardware and the software of the existing control system (DCS). Upgrading of the existing exhaust system. Equipment List. 2 Spiral Vibrating Elevators 2 Mills 1 Cold Box 4 Vibrating Conveyors 3 Belt Conveyors 5 Blowers 1 Pneumatic transport 1 Packaging Silo 1 Packaging Station Construction starting date: June 1997 Construction Finishing date: January 1998 u EniChem Elastomers Americas, Inc. OFFICERS: Mr. Luciano Topi Chairman & C.E.O. Mr. Cosimo Caracciolo Vice President Finance & Administration Mr. Rosario Composto Vice President Logistics & Purchasing f- 5 u =111 o1 -Aarox 161ecopler ivL� O—li—Oi D 40eM 11,1(L..LvL— ii0 44. 000O,w C TRACT METES AND BOUNDS DESCRIPTION FOR A 24.921 ACRE (1,o850552 SQUARE FEET) TRACT OUT OF T88 HARVEY WEaTING SURVEY, ABSTRACT NO. 840 HARRIS COMM, TEXAS Being a tract or parcel containing 24.921 acres (1,085 , 552 square feet) of land out of the Harvey whiting survey, Abstract No. 940, Harris County, Texas, being also out of those certain 99.782 acre tract, 31.394 aore tract and 2.52 acre tract in deeds to the Texas Olefins Company of record in rilm Code Numbers 105-03-0493 , 121-02-1001 and 137-16-1554 of the Dead Records of Harris County, Texas, and being more Iparticularly described by metes and bounds as follows; COMMENCING at the southwest corner of the said 99.782 acre tract, from which a 8" wood post in Concrete was found 0. 38 feet North of said corner, and being in the northerly right- of-way line of Baker Road (80.00, wide) ; THENCE With the southerly line of said 99.782 acre tract and the northerly right-of-way line of said Baker Road, East for a distance of 1535.89 feat to a 1/2-inch iron rod set for the POINT OF BEGINNING and being in the easterly right-of-way line of a San Jacinto River Authority Canal Right-Of-way ( 210' wide) of record in volume 1163 , Page 576 of the Dead Records of Harris County, Texas and being the southwest corner heroin; THENCE with said easterly right-of-ray line of the San Jacinto River Authority Canal right-of-way and the westerly line herein, North 00 deg. 20 min. 49 sec. west for a distance of 371.32 feet (Deed - North 00 sag. 39 min. Kest, 1 370.24 feet) to a 1/2-inch iron rod found for corner, the beginning of a curve to the left; THENCE with said easterly right-of-way line and the westerly line herein along said curve to the left having a central angle of 36 deg. 21 min. , a radius of 395.62 feet a chord bearing of North 18 deg. 31 min. 19 sec. West, a chord distance of 246.30 feet for an are distance of 25o.99 feet to a 1/2-inch iron rod met for corner, the and of said curvei EXHIBIT B _,.. � ..oron aeccpiar iuc� c—ia—yi n »or.M iiacc.4[a[- Ile 4[0 dZ0.6;; 4 f peg• 2 TXOL p THENCE, continuing with said easterly right-of-way line and the westerly line herein, North 36 deg. 15 min. 29 sec. west (Dead - North 37 deg. 00 min, west) for a distance of 1219. 30 feet n; a 1/2-inch iron rod set for the northwest corner herein; THENCE leaving said easterly right-of-way line, With the northerly lino herein, South 99 deg. 47 min. 32 asc. East, at a distance o! 928.g3 feat pass the seat line of eaid 99.7at acre tract and the westerly line of said 2.52 acre tract, at a distance of 13682 fast pass the easterly line of said 2.52 acre tract andd the westerly line of said ]1.]94 acre tract, and continuing for a total distance of 149831. feet to a being inch iron rod set for the northeast corner herein, being also in the easterly line of said 31.394 acre tract and being in the vsat•rly right-of-way line of Decker Drive (State Highway No. 330) ; THENCE with the easterly line of said 31.394 acre tract, the westerly right-vf-way line of said Decker Drive and easterly lins herein, South 39 do ass gse .(Deed - South 40 deg. 02 min. East) for2a distance ofc1&0.53 rest to n 1/2-inch iron rod a•t for an angle point in the asterly line herein, being also the most easterly point of rod set for the subject 24.921 sore tract, and from which a S/8-inch iron the most northerly corner of the 2.516 Falstaff Distributing Company tract was acre found for the northeast corner of said 31.394 acre tract bears South 39 dog. 29 min. 00 sec. Fast for a distance of 78.41 fast, T=NCE leaving the easterly line of said 31.394 acre tract, ' and continuing with the easterly line herein, South 28 deg. 43 min. 18 •ac. Nest for a distance of 468.59 feet. to a 1/2- inch iron rod set for corner; ATHENCE continuing rith said easterly line,min. 32 see. Nast for a distance of 246.93 fe North 89 47 at to a ,deg.. 47 1 iron rod set for corner; min. THENCE continuing last forhaeaid distance•ofy493142,taSouth 001deg. 1 2 iron rod set for cornart 1 a cni UInOi JR eieG Jja B( IvL� i O +a Ph i3LLu4GOG ii0 .LV ::70 rii Page 3 TXOL P THENCE continuing with said easterly line, North 89 dog. 47 min. 32 sec. Want for a distance of 176.24 feet to a 1/2-inch iron rod set for corner; THENCE continuing with said easterly line, south 00 deq. 11 min. 38 sec. West for a distance of 540.94 feat to a 1/2-inch iron rod not for the southeast corner herein, being also in the northerly right-of-way line of said Baker Roadj THENCE with said northerly right-of-way line, and the southerly line heroin, West at a distance of 39.33 feet pass a 1/2-inch iron rod set for tha southwest corner of eaid 31.394 acre tract and being the southeast corner of said 99.782 acre tract, and continuing for a total distance of 159.33 feet to the POINT OF BEGINNING and containing 24 .921 acres (1,046,SS2 square feat) of land, more or less. March 26, 1991 Primary Site ' nl3 1. �RCE+�cA:x p• Y} 4572 �- ���0�S U Fq�{O r w J GVi DI A4rDR IB12D0p:8r I.zU Y] 0 41-M iijzz.4L0z- 1'j 42U 0D00;i. 0 TRACT 2 lO METES AND BOUNDS DESCRIPTION FOR 19.066 ACRE (830,499 SQUARE FEET) TRACT OUT OF THE HARVEY WHITING uuRVEY ABSTRACT 840, RARRIS COUNTY, TEXAS Being a tract or parcel containing 19 .066 acre (830,499 square feet) of land out of and a part of the Harvey Whiting Survey, Abstract 840, Harris County, Texas and being a part of that certain 32.425 acre tract of land conveyed to Frank Thielan et al by the &state of Webb Greer, by Deed dated July 14 , 1967 as recorded in Volume 6837, Page 301, of the Harris County Deed Records, and being more particularly described by metes and bounds as follows: COMMENCING at a 5/8-inch iron rod found at the Northwest corner of said 32.425 acre tract, said point being on the Southwest right-of-way line of Decker Drive (State Hwy. 330) ; THENCE South 39 deg. 29 min. 0o sec. East along the Southwest right-of-way line of Decker Drive for a distance of 1069.41 fast to a 1/2-inch iron rod set for corner, and being the POINT OF BEGINNING and the most Northerly point of the 19.069 acre (830,499 square feet) tract of land herein describedi THENCE continuing South 39 deg. 29 min. 00 sec. East along the Southwest right-of-way line- of Decker Drive for a distance of 78.41 fast to a 5/8-inch iron rod found for corner; THENCE South 00 deg. 38 min. 52 sec. West along the West line of Falstaff Distributing Company 2.5165 acre tract for a distance of 665,40 feet to a 1/2-inch iron rod found for corner; THENCE South 89 deg, 19 min. 19 sec. East for a distance of 200.02 feet to a 1/2-inch iron rod found for corner on the West line of a 1Canaas City Southern Railroad right-of-way and being the most Northeasterly corner of the herein described 19.066 acre tract; THENCE South 00 deg, 38 min. 52 sec. West along said West right-of-way lino for a distance of 412.31 fast to a 1/2-inch iron rod not for corner; EXHIBIT B or:xarox iaiacopior NiJ : 6-13-91 : i:ourM : 'I1i22042d2- 71i 42J 5505:; 7 �n - n Page 2 TXOL B THENCE continuing along said West right-of-way line and along a curve to the right with a central angle of 09 deg. 29 min. 04 sec. , a radius of 1843.26 feet, a chord bearing of South 05 deg. 23 min. 25 sec. West, a chord distance of 304.79 feet for an arc distance of 305.97 feet to an °X° set in rail for corner at the intersection of said West right-of-way line with the North right-of-way line of a public road known as Baker Road (80 feet wide) t THENCE North 89 deg. 59 min. 10 sec. West along the North right-of-way line of Balser Road (80 feet wide) for a distance of 857.40 foot to a 1/2-inch iron rod set for corner being the most Southwesterly corner of the herein described 19.066 acre tract; THENCE North 00 deg. 11 min. 38 sec. East for a distance of 540.94 feet to a 1/2-inch iron rod set for corner; THENCE south 89 deg. 47 min. 32 sec. East for a distance of 176. 24 feet to a 1/2-inch iron rod net for corner! THENCE North 00 deg. 12 min. 28 sec. West for a distance of 493.42 fact to a 1/2-inch iron rod not for corner; THENCE South 89 deg. 47 min. 32 sec. East for a distance of 246.93 feet to a 1/2-inch iron rod set for cornert THENCE North 28 deg. 43 min. 18 Sec. East for a distance of 468.59 feet to the POINT OF BEGINNING and containing 19.066 acres (830,499 square feet) of land. March 26, 1991 Texas Olefins Boundary „ 0r � A, .Si.. L J. ARCENE?.U4 �0 457---2 SUR4� �Cry J; ndi'Oz iviv.L..o i.L. — i—li a0.r,i TRACTS PMTES AND BOUNDS DESCRIPTION FOR A 35.258 (1,535,836 SQUARE FEET) ACRE TRACT OUT OF THE HARVBY WHITING SURVEY, ABSTRACT NO. 840 HARRIS COUNTY, TEXAS AS SHOWN ON SURVEY DATED MARCH 19, 1991, AND PREPARED BY RON ARCENEABY i ASSOCIATES Being a tract or parcel containing 35.259 acres ( 1, 535 ,932 square feat) of land out of the Harvey Whitinq Survey, Abstract No. 840, Harris County, Texas, being also out of those certain 99.782 acre tract, 31.394 acre tract and 2.52 acre tract in deeds to the Texas Olefins Company of record in Film Code Numbers 105-03-0493 and 121-02-1001 and 137-16-1554 of the Deed Records of Harris County, Texas, and being more particularly described by metoo and bounds as follows; BEGINNING at a 8" wood post in concrete found for the northwest corner of said 99.782 acre tract, being also in the easterly right-of-way line of a San Jacinto River Authority Canal Right-Of-Way (210, wide) of record in Volume 1163 , Page 576 of the Deed Records of Harris County, Texas and being the northwest corner herein; THENCE, with the northerly line of said 99.782 acre tract and the northerly line herein, North 89 deg. 11 min. 20 sec. East for a distance of 1423.73 feet (Deed - North 89 deg. 25 min. 36 sec. East, 1427.12 fast) to a broken 8" wood post in concrete found for the most northerly northeast corner of said 99.782 acre tract, being also the northeast corner herein and being in the westerly right-of-way lino of Decker Drive (State Highway No. 330) ; THENCE, with the easterly line of said 99.792 aura tract, the easterly line herein, and the westerly right-of-way line of said Decker Drive, South 33 deg. 20 min. 03 sec. East for a distance of 456.13 feet (Deed - South 33 deg. 15 min. 57 sec. East, 446.77 fast) to a 5/8-inah iron rod found for an angle point, being the most easterly northeast corner of said 99.792 acre tract and being the northwest corner of aaid 31.394 acre tract) EXHIBIT B ]Clvi tlr :xar:x lalaco,lar 1.14 0- a-tlI 1 a Page 2 TXOL 0 THENCE, continuing with the northeasterly Una of said 31.394 acre tract, a easterly line right- of-way line OfsaidDeckerDrive, South d 9 a westerly deg. 29min. 00 sec. East (Dead - south 40 deg. 02 min. East) for a distance of ss9.ss feet to a 1/2-inch iron rod set for the southeast earner herein; THENCE, leaving the northeasterly line of said 31.394 acre tract, with the southerly line herein, North 89 flag. 47 min. 32 sec. West, at a distance of 129.70 feet pass the westerly line of said 31.394 acre tract and the easterly line of said 2.52 acre tract, at a distance of 569.74 feet pass the easterly line of said 2.52 acre tract and the westerly line of said 99.782 acre tract, and continuing for a total distance of 1498.29 feat to a 1/2-inch iron rod ■at for the southwest corner herein, and Deing in the easterly right-of- way line of said San Jacinto River Authority Canal; THENCE with said easterly right-of-way line and the westerly line herein, North 36 deg. 15 min. 29 sea. West (Dead a North 37 deg. 00 min. West) at 149.02 feet pass a 1/2-inch iron rod sat for southwesterly Corner of a 3.100 acre Diamond Shamrock Corporation fee strip, at 430.92 feat pass a 1/2-inch iron rod set for northwesterly corner of said fee strip and continuing for a total distance of 1253.07 fast to a 1/2-inch iron rod set for corner, being an angle point herein and being in the westerly lino of said 99.782 acre tract; THENCE, continuing with said easterly right-of-way line, the westerly line herein and the westerly line of said 99.782 acre tract North 00 dog. 09 min. 13 sec. Mast for a distance of 31.12 fast to the POINT OF BEGINNING and containing 35.259 acres of land, more or leas. SAVE AND EXCEPT, that certain 3.100 acre tract of land, conveyed to the Diamond Shamrock Corporation by instrument filed of record in Film Coda Number 017-90-2526 of the Deed Records of Harris County, Texas, being a part of that certain 7.6944 acre tract of record in the County Clark's Pile No. F175605 and being all of that certain 0.2173 acre tract of record in County Clerk's File No. J752753 both of the Deed Records of Harris county, Texas, said 3.100 acre tract being more particularly described by metes and bounds as follows; yen, �rxarax aiacoe:ar , .,ed .,-ln-e . , ,.`,I lattu42cC- ' 3 CiJ o0;«1 Page 3 TXOL 0 ' BEGINNING at the broken 8" wood post in concrete found for the most northerly northeast corner of above said 35.258 acre tract, THENCE, with the westerly right-of-way line of said Decker Drive and the easterly line of said 35.258 acre tract, South 33 flag. 20 min. 03 sec. East for a distance of 106.43 feet (Dead - South 33 deg. 33 min. 44 sec. East, 102.93 feet) to a concrete monument found at the southeast corner of said 7.644 acre tract; THENCE, leaving the easterly line of said 35.259 acre tract, with the southerly line of said 7.644 acre tract, South 51 deg. 06 min. 12 sec. West for a distance of 160.19 foot (Deed - South 51 deg. 02 min. 31 ace. West, 158. 35 feet) to a concrete monument found for an angle point; THENCE, continuing with said southerly line, North 35 deg. 28 min. 09 sec. West for a distance of 59.78 feet (Deed - North 38 deg. 57 min. 29 Sec. West, 60.00 feet) to a concrete monument found for an angle point; THENCE, continuing with said southerly lino, South 51 deg. 01 min. 26 use. West for a distance of 877.64 fast (Dead - South 51 dog. 02 min. 31 sec. West, 874.39 feet) to a concrete monument found for an angle point; I THENCE, continuing with said southerly line, South 36 dog. 53 min. 40 oac. East, (Deed - South 36 dog. 59 min. 00 sec. East, 186.57 feet) for a distance of 196.67 fast to a concrete monument found for an angle point; THENCE, continuing with said southerly line, South 45 deg. 01 min. 23 sec. West at a distance of 131.37 feet pass a concrete nonument found, and continuing for a total distance of 14o.63 feet (Dead - South 44 deg. 50 min. 29 sec. west, 131.35 foot) to a 1/2-inch iron rod met for the southwest corner herein, being also in the easterly right-of-way line of said San Jacinto River Authority Canal, and being in the westerly line of said 35. 258 acre tract; .CiVi JI AvrQX ivivw Or Iv/.J 444-1.1 iii .. .... wi , r . r Page 4 TXOL 0 THENCE, With the said easterly right-of-way line, the westerly line of said 35.258 acre tract and the westerly line herein, North 36 deg. 15 min. 29 sec. hest for a distance of 291.90 feet to a 1/2-inch iron rod set for the northwest corner herein; THENCE, leaving the westerly line of said 35.259 acre tract, With the northwesterly line heroin, North 51 deg. 02 min. 07 sec. East at a distance of 5.77 feet pass a concrete monument found, and continuing for a total distance of 1016.02 feet aDconcreterth 51 Monumsntefound for an sec. East,angle 1010.57 feet) to angle point; THENCE, continuing with said northwesterly line, North 38 deg. 57 min. 53 sec. west (Deed = North 38 deg. 57 min. 29 sec. west) for a distance of 60.00 feet to a 1/2-inch iron rod set for an angle points THENCE, continuing with said northwesterly line, North 51 dsq. 02 min. 07 sec. last for a distance of 42.14 feet (Deed North 91 deg. 02 min. 31 sec. East, 36.43 fast) to a 1/2- inch iron rod set for the northwest corner herein and being in the northerly line of said 35.259 acre tract; THE line of said nd theNnortherlythe lineeherein}, North 99 deg.35.259 11min. 20 sac- East for a distance of 152.27 rent (Dead - North 89 deg. 30 min. 45 sec. East, 156.77 feet) to the POINT OF BEGINNING and containing 3 .100 acres of land, more or loss. MMarch 21, 1021 Option Tract , r. r V...:� ..R.�r 4572 SU B CITY OF BAYTOWN ......... ...1111111.­�........ 2401 MARKET P.O. BOX 424 BAYTOWN,TX 77522-0424 (713)422-8281 FAX(713)420-6586 December 13, 1996 Mr. Cosimo Caracciolo Vice President Finance EniChem Elastomers Americas 2000 West Loop South Houston, TX 77027 Re: Resolution No. 1296 Dear Mr. Caracciolo: Enclosed please find a certified copy of Resolution No. 1296 whereby 1, as Mayor of the City of Baytown, am hereby authorized to express and hereby do express the City Council's intent (i) to establish a reinvestment zone within the area described in such resolution and (ii) to consider granting tax abatement agreements therein should all of the requirements of both the Property Redevelopment and Tax Abatement Act and the guidelines and policies adopted by the City Council be satisfied. Please be advised that the public hearing concerning the proposed nomination and designation of the Enichem Reinvestment Zone will be held at 6:3 5 p.m. on the 9th day of January, 1997, in the Council Chambers of the City of Baytown, located at 2701 Market Street, Baytown, Texas 77520. Should you need any more information concerning this matter, you may contact Bobby Rountree, City Manager at the above-referenced address and phone number. Sincerely, Pete C. Alfiaro Mayor Enclosure c:klli25\Ciiy,Matiagcr\]:nictiemNlityor.lxtter EXHIBIT C