CC Resolution No. 514 739
RESOLUTION NO. 514
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAYTOWN, TEXAS , REPEALING RESOLUTION NO. 460 ,
DULY ADOPTED BY THE CITY COUNCIL OF THE CITY
OF BAYTOWN ON JANUARY 10 , 1974 , AND DECLARING
SAID RESOLUTION TO HAVE NO FORCE AND EFFECT,
FINDING, DECLARING AND ESTABLISHING THAT MANU-
FACTURING 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 MANU-
FACTURING INDUSTRIES AS A WHOLE SHOULD COMPENSATE
THE CITY OF BAYTOWN PROPORTIONATELY TO THEIR USE
AND ENJOYMENT OF SUCH MUNICIPAL SERVICES.
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WHEREAS, orderly economic growth raises the standard
of living and otherwise 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 population; 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 RESOLVED 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
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manufacturing industries should pay a fair share of tax
revenues of the City of Baytown.
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Section 2 : That the City Council further finds,
declares , and establishes that such manufacturing industries
should not be annexed in excess of twenty (20%) per cent 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 situated in the
industrial districts in the City' s extraterritorial jur-
isdiction, as provided for in Article 970a of Vernon' s Civil
Statutes. The City Council further desires that all manu-
facturing industries be treated equally and that contractual
provisions with all such industries should be uniform and
consistent so as to generate 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 con-
tractually 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 and expansion 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.
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New manufacturing industries or expansions to
existing industries , announced after the effective date
hereof, may upon application to City Council, be entitled to
exemptions from compensation to the City of Baytown in the
following manner:
1. The first contract year, the calendar year in
which construction is begun, no compensation
is due the City of Baytown.
2. Compensation due for the second, third, and
fourth contract years shall be calculated in
the following manner: January 1 of the
second contract year of the contract, the
anticipated fair market value of the new
industry or an expansion shall be rendered to
the City of Baytown. This value shall be
used for calculating the payment due the City
of Baytown using the 20%-80% Industrial
District Payment Formula as per the standard
contract. one-third of this amount shall be
paid January 31 of each contract year be-
ginning with the second contract year and
ending with the fourth contract year.
Adjustments as to value shall be made during the
fourth contract year. Payments reflecting any
increase in value shall be due on or before
December 31. Any credits shall be deducted
from the next year' s industrial district payment.
3. For the purposes of this Resolution and
contracts executed pursuant to the terms
hereof, contract year shall mean January 1
�. through December 31 of any given year.
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An expansion shall be defined as a new manufacturing
facility or a major addition to an existing manufacturing
facility which is intended to permanently and significantly
increase production capacity or produce a new product and
represents a capital investment in excess of the lesser of
five (5%) per cent of the fair market value of the existing
facilities or ten million dollars. Investment which replaces
or modernizes existing facilities only shall not be considered
an expansion. Replacement-type expenditures , including but
not limited to repairs , maintenance, catastrophe losses, or
similar items shall not be considered or treated as an
expansion, regardless of the amount involved.
The City Council reserves the right to judge the
desirability of new industry or expansions to existing
industry so as to qualify for the compensation exempt period.
New industries which accept the benefits of this
exemption consent to the annexation of twenty (20%) per cent
of their facilities in the third contract year of this ex-
emption and agree to entering into the Standard Industrial
District Contract with the City of Baytown.
Section 6 : That this Resolution shall take effect
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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 July , 1975 . /f
TOM GENTRY, Mayor
ATTEST:
EDNA OLIVER, City Clerk
APPROVED:
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NEEL RI 7
ARD ON, City Attorney
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