CC Resolution No. 1684 86
RESOLUTION NO. 1684
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, NOMINATING BAYER MATERIALSCIENCE LLC TO THE
OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT & TOURISM,
THROUGH THE ECONOMIC DEVELOPMENT BANK FOR DESIGNATION
AS A QUALIFED BUSINESS AND TRIPLE JUMBO ENTERPRISE PROJECT
PURSUANT TO CHAPTER 2303 OF THE TEXAS GOVERNMENT CODE;
PROVIDING LOCAL INCENTIVES; MAKING OTHER PROVISIONS
ASSOCIATED THEREWITH; AND PROVIDING FOR THE EFFECTIVE
THEREOF.
******************************************************************************
WHEREAS, the City of Baytown ("City") has previously adopted Ordinance No. 9718
electing to participate in the Texas Enterprise Zone Program, and establishing local incentives, as
defined in Section 2303.4051 of the Texas Government Code, for a qualified business; and
WHEREAS, the local incentives offered under this resolution are substantially the same
on this date as were outlined in Ordinance No. 9718; and
WHEREAS, the Office of the Governor, Economic Development and Tourism
("GOED&T") through the Economic Development Bank ("Bank") will consider the project
proposed by Bayer MaterialScience LLC ("BMS") as an enterprise project pursuant to a
nomination and an application made by the City; and
WHEREAS, the City desires to pursue the creation of the proper economic and social
environment in order to induce the investment of private resources in productive business
enterprises located in the City and to provide employment to residents of enterprise zones and to
other economically disadvantaged individuals; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act,
Texas Government Code (the "Act'), BMS has applied to the City for designation of BMS as an
enterprise project; and
WHEREAS, the City finds that the BMS project meets the criteria for designation as an
enterprise project under Chapter 2303, Subchapter F of the Act; and
WHEREAS, the City finds that BMS meets the criteria for tax relief and other incentives
adopted by the City applicable to property located in its extraterritorial jurisdiction and
nominates the BMS project for enterprise project status on the grounds that it will be located at
the qualified business site, will retain jobs and create economic activity and stability; and
WHEREAS, the City finds that it is in the interest of the City to nominate the BMS
project as an enterprise project pursuant to the Act; NOW THEREFORE,
87
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: All matters and facts set forth in the recitals above are found to be true, and
are approved as the findings of the City Council of the City of Baytown.
Section 2: That BMS is a "qualified business," as defined in Section 2303.402 of the
Act, and meets the criteria for designation as an enterprise project, as set forth in Subchapter F of
the Act, on the following grounds:
1. BMS is a "qualified business" under Section 2303.402 of the Act since it is
engaged in the active conduct of a trade or business at a qualified business site
within the City's jurisdiction located outside of an enterprise zone and at least
35% of the business' new employees will be residents of an enterprise zone or
economically disadvantaged individuals; and
2. The BMS project is qualified under Section 2303.404 of the Act because (1) it
involves "an expansion, renovation, or new construction'; (2) it will be completed
within a predetermined period not to exceed five (5) years; and (3) the BMS
subsidiary maintains separate books and records for the Baytown refinery
operations; and
3. There has been and will continue to be a high level of cooperation between
public, private, and neighborhood entities within the City's jurisdiction; and
4. The designation of BMS as an enterprise project will contribute significantly to
the achievement of the plans of the City for development and revitalization of the
area in which the enterprise project will be located; and
5. BMS qualifies for job retention benefits under Section 2303.406(a)(4)(D) because
BMS expects a ten (10%) percent increase in production capacity.
Section 3: BMS qualifies as a Triple Jumbo Enterprise Project as defined in Section
2303.407(b)(6) and Section 2303.407(d) of the Act because BMS will be making a capital
investment in the proposed project in excess of$250,000,000. The City finds that it is in the best
interest of the City to nominate BMS as a Triple Jumbo Enterprise Project under the Act.
Section 4: The City nominates BMS as a Triple Jumbo Enterprise Project under the Act.
The City authorizes the Mayor or his designee to file an application requesting designation of
BMS as a Triple Jumbo Enterprise Project with the Texas Economic Development Bank, and to
execute all documents and agreements necessary to process the application. Further, the City
directs the Mayor or his designee to submit to the Texas Economic Development Bank the
information required by Section 2303.4052 of the Act.
Section 5: The City finds that BMS meets the criteria for tax relief and other incentives
adopted by the City; and will retain the level of employment, and increase economic activity and
stability. As required by Section 2303.4051(c)(2) of the Act, the City's local incentives,
2
88
including tax incentives, that, at the election of the City Council, are or will be made available to
BMS, the nominated project, are identified and summarized briefly in Ordinance No.9718. Such
local incentives which will be made available to BMS will be the same as those made available
to the project or activity that was the subject of Ordinance No. 9718.
Section 6: Upon approval of the Texas Economic Development Bank, the Triple Jumbo
Enterprise Project will be named Bayer MaterialScience LLC Project.
Section 7: The Enterprise Project designation must be for a predetermined designation
period approved by the Bank, with a beginning date and ending date for the Project; and the
designation period for the Project may not exceed five (5) years from date on which the
designation is made, as required by Section 2303.404 of the Act. BMS and the City request that
the Bank approve December 1, 2004, as the beginning date and December 1, 2009, as the ending
date of the Project.
Section 8: The Baytown areas meeting the 2003 Requirements for Texas Enterprise Zone
(Sections 2303.101 and 2303.109) are attached as Exhibit "A," and incorporated herein for all
intents and purposes.
Section 9: That the City Clerk is directed to deliver a certified copy of this Resolution to
BMS.
Section 10: 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 261h day of October, 2004.
�t
CALVIN MUNDINGER, Mayor
ATTEST:
G R W. SMI d, City Clerk
APPROVED AS TO FORM:
f
NACIO RAMIREZ, S .., City Attorney
3
Exhibit A
Baytown Areas meeting the 2003 Requirements for
Texas Enterprise Zone (Sections 2303.101 and 2303.109)
BLOCKENSUS TRACT ' • DESIGNATION
2530 1 Census Block Group with 20%poverty or greater
2535 3 Census Block Group with 20%poverty or greater
2536 4 Census Block Group with 20%poverty or greater
2538 1 Census Block Group with 20% poverty or greater
2538 4 Census Block Group with 20% poverty or greater
2541 1 Census Block Group with 20%poverty or greater
2541 4 Census Block Group with 20%poverty or greater
2542 3 Census Block Group with 20%poverty or greater
2543 3 Census Block Group with 20% poverty or greater
2544 2 Census Block Group with 20% poverty or greater
2544 3 Census Block Group with 20% poverty or greater
2544 4 Census Block Group with 20% poverty or greater
2544 5 Census Block Group with 20%poverty or greater
2545 1 Census Block Group with 20%poverty or greater
2545 2 Census Block Group with 20% poverty or greater
2545 3 Census Block Group with 20% poverty or greater
2546 1 Census Block Group with 20% poverty or greater
2546 2 Census Block Group with 20% poverty or greater
2546 3 Census Block Group with 20%poverty or greater
Exhibit"A,"Page Solo