CC Resolution No. 460 RESOLUTION NO. 460
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
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 COM-
PENSATE THE CITY OF BAYTOWN PROPORTIONATELY TO THEIR USE AND ENJOYMENT
OF SUCH MUNICIPAL SERVICES.
WHEREAS, orderly economic growth raises the standard of living and other-
wise 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 wherever possible for the general advancement of the affected popu-
lation; and
WHEREAS, it is generally recognized that manufacturing industries make
limited use of municipal services of the City of Baytown ; and
WHEREAS, the City Council of the City of Baytown is of the opinion 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 ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN:
Section 1 : That the City Council of the City of Baytown hereby finds ,
declares , and establishes that such manufacturing industries should pay a fair
share of the tax revenues of the City of Baytown.
Section 2: That the City Council further finds , declares, and establishes
that such manufacturing industries should not be annexed in excess of twenty
percent (20%) of fair market value of such property.
SECTION 3: That the City Council , having previously created industrial
districts , desires to continue with contractual arrangements with industries sit-
uated in the industrial districts in the City 's extra-territorial jurisdiction, as
provided for in Article 970a of Vernon's Civil Statutes . 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 gen-
erate equitable industrial revenues between industries , set uniform boundary lines ,
and uniformly apply environmental protection regulations .
Section 4: It is hereby provided that compensation shall be determined
uniformly for each manufacturing industry as follows :
TOTAL PAYMENT TO CITY = TAX PAYMENT + INDUSTRIAL DISTRICT PAYMENT
Tax Payment = Tax Rate x Assessment Ratio x (20%) of fair market
value of entire industrial facility
Industrial District Payment = Tax Rate x (80%) of fair market value
of total industrial facility x ( 6%)
The above result may be accomplished by industries contractually agreeing
to render (20%) of the fair market value of their entire industrial facility
as the value of the property, both real and personal , situated within the
corporate limits of the City of Baytown.
Section 5: That the City Council desires to encourage the establishment
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 shall be exempt from compensation to the City
of Baytown for five (5) years after completion of construction. Thereafter, the
industry shall bear its full proportionate share of industrial revenues to the City.
Contracts with new industries shall provide for one year of construction,
a five (5) year compensation-free period, and one (1 ) year of full proportionate
compensation in their initial seven (7) years near the City of Baytown. The last
year of proportionate compensation shall be based on the anticipated fair market
value of the new industry at the end of the sixth contract year and shall be paid
one-seventh annually over the seven (7) year period. Under estimates in value will
be adjusted at end of the seven (7) year period.
The City Council reserves the right to judge the desirability of new in-
dustry so as to qualify for the five-year compensation exempt period.
Section 6: That this Resolution shall take effect from and after its
passage by the City Council , and the Mayor and City Clerk are hereby authorized
and directed to execute this Resolution and to properly publicize same.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council
of the City of Baytown this loth day of January 1974.
,=;;., A.'evi -
TOM GENTRY, 'Mayor
,
ATTEST:
EDNA OLIVER, City Clerk
APPROVED:
EN ss ant Ci y orney
77, O
NEEL RICHA DSON, City Attorney
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