CC Resolution No. 1469 2755
RESOLUTION NO. 1469
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AMENDING RESOLUTION NOS. 1253 AND 1308 DULY ADOPTED
ON JULY 27, 1995, AND APRIL 10, 1997, RESPECTIVELY, BY THE CITY
COUNCIL OF THE CITY OF BAYTOWN BY EXPANDING THE INDUSTRIAL
DISTRICT POLICY TO APPLY TO REGIONAL WAREHOUSE DISTRIUBTION
CENTERS AT THE COUNCIL'S DISCRETION; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
WHEREAS, on the 271h day of July, 1995, the City Council of the City of Baytown,
established a new industrial district policy; and
WHEREAS, on the 10°i day of April, 1997, the City Council of the City of Baytown,
amended such policy to clarify that the abatement for qualified new construction should only be
given to companies which have previously had an industrial district agreement with the city and then
only to the extent that such companies have not breached any term or condition of such agreement;
and
WHEREAS, the industrial district policy has traditionally been applied to manufacturing
industries,recognizing that such industries should compensate the City of Baytown for the benefits
received, both direct and indirect, from municipal services; and
WHEREAS, these same benefits are also realized by other industries located within the
City's industrial districts; and
WHEREAS, the City Council desires to amend the industrial district policy to expand it to
regional warehouse distribution facilities; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby amends the
Industrial District Policy established on the 27`' day of July, 1995, via Resolution No. 1253 and
amended on the 11°i day of April, 1997,via Resolution No. 1308 (the"Policy"),by adding Section 8
to the same to read as follows:
Section 8: The City Council may,in its sole discretion,extend industrial
district agreements to regional warehouse distribution facilities under the same terms
and conditions as set forth herein for manufacturing industries or as modified in
accordance with this section. Regional warehouse distribution facilities, as used in
this section, shall mean the buildings and structures of at least 700,000 square feet,
including fixed machinery and equipment, used or to be used primarily to receive,
store, service or distribute goods or materials owned by the facility operator where a
majority of the goods or services are distributed to other points.
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A. In determining the industrial district payment in accordance with Section 5
hereinabove,the City Council may exclude from the fair market value of the
regional warehouse distribution facility all inventory that could be excluded
from local taxation pursuant to 19 U.S.C.A. Section 81o(e)and as amended,
regardless of whether the facility is within a foreign trade zone. This
exemption may also apply to all other inventory in the facility if at least 95%
of all inventory in the facility would qualify for such exclusion from local
taxation.
B. The new construction industrial district payment referenced in Section 6
hereinabove may be afforded to regional warehousing distribution facilities
regardless of whether they have previously had an industrial district
agreement with the City, if notice of the construction of such a facility is
given within 90 days after the execution of an industrial district agreement. If
so afforded,the terms and conditions associated with the new construction of
manufacturing industries shall be applicable to regional warehouse
distribution facilities; provided, that the Council may, in its sole discretion,
make the following modifications thereto:
1. The applicable new construction industrial payment rate for regional
warehouse distribution facilities may be determined as follows:
YEAR OF NEW
VALUATION OF CONSTRUCTION
NEW QUALIFYING INDUSTRIAL
CONSTRUCTION DISTRICT
PAYMENT RATE
1 0%
2 0%
3 0%
4 25%
5, 6 and 7 50%
2. If the fair market value of the new construction of a regional
warehouse distribution facility is less than $20 million, the new
construction industrial district payment may at Council's discretion,
be calculated based upon a value of$20 million.
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Section 2: 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 25th day of January, 2001.
l, tx-� a Q
PETE C. ALFARO, Mayor
ATTEST:
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GAO W. MITH, City Clerk
APPROVED AS TO FORM:
ACIO RAMIREZ, ., City Attorney
c.klh260\Council\Resolutions\RevisedlDAPolicyException
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