Ordinance No. 12,112ORDINANCE NO.12,112
AN ORDINANCE APPROVING THE 2012 AMENDMENT TO THE PROJECT
PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR
REINVESTMENT ZONE NUMBER ONE,CITY OF BAYTOWN,TEXAS;
AUTHORIZING THE CITY CLERK TO DISTRIBUTE SUCH PLANS;
CONTAINING FINDINGS AND PROVISIONS RELATED TO THE
FOREGOING SUBJECT;CONTAINING A SAVINGS CLAUSE;AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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WHEREAS,theCityCouncil of theCity of Baytown ("City")pursuanttotheprovisions
of Chapter 311,TexasTaxCode,created Reinvestment Zone Number One,City of Baytown,
Texas,(the "Zone");and
WHEREAS,theBoard of Directors of theZonehasadoptedand recommended,andthe
Cityhas approved,the Project Plan and Reinvestment Zone Financing Plan (the "Plan")for the
Zone;and
WHEREAS,Chapter 311 of theTexasTaxCode authorizes theenlargement of theZone
and amendments to the Plan;and
WHEREAS,theBoard of Directors of the Zone considered and adopted the2012
Amendment totheProject Plan andReinvestmentZone Financing PlanforTaxIncrement
Reinvestment ZoneNumberOne(the "Amendment")thatreflectstheenlargement of theZone,
and recommended the Amendment forapprovalbyCityCouncil;and
WHEREAS,theCityenlargedtheboundaries of the existing reinvestment zonepursuant
to Section 311.007,Texas Tax Code;and
WHEREAS,afterpublicnoticethereofwasgivenin accordance withthelaw,theCity
Council conductedapublic hearing onNovember 19,2012,ontheproposedAmendment,at
whichpropertyownersandotherinterestedpersonswereallowedtospeak;and
WHEREAS,evidencewasreceivedandpresentedatthepublichearinginfavor of the
proposed Amendment;NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1:ThattheCityCouncil of theCity of Baytown,Texas,herebyfindsand
declaresthatthefindingsandrecitalscontainedinthepreamble of thisordinancearehereby
foundanddeclaredtobetrueandcorrectandare adopted aspart of this ordinance forall
purposes.
Section 2:The Planis hereby amended to reflect the Amendment shown as Exhibit
"A,"which isattachedheretoandincorporatedhereinforall intents and purposes.The
Amendment is determined tobefeasibleandisapproved.The appropriate officials of theCity
are authorized totakeallsteps reasonably necessary to implement the Amendment.
Section3:TheCity Clerk isdirectedto provide copies of the Amendment toeach
taxingunitlevyingad valorem taxesintheZone.
Section4:If any provision,section,exception,subsection,paragraph,sentence,
clauseorphraseofthisordinanceortheapplicationofsametoanypersonorthesetof
circumstances,shallforanyreasonbeheldunconstitutional,voidorinvalid,suchinvalidityshall
notaffectthevalidity of theremainingprovisionsofthisordinanceortheirapplicationtoother
persons orsetsof circumstances andtothisendall provisions ofthisordinanceare declared tobe
severable.
Section5:This ordinance shalltakeeffect immediately fromandafterits passage by
theCityCouncil of theCity of Baytown.
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ATTEST:,'X—«..♦....
l W
LETICIAmpXJi GUyOerk
APPROVED AS TO FORM:
<^TCiNACIO RANRAMIREZ,SRi Oity Attorney
INTRODUCED,READ and PASSED bythe affirmative vote/f the City Council ofthe
City of Baytown this the 19th day of November,2012.
ST/EPHEN H.DONCARLOS,MaVor
R:\Karen\Files\City Council\Ordinanccs\2012\Novemer 19\BTIRZl_Ord_approving 2()12Amcndmcnt_l 112 112.rtf
BAYTOWN
TAX INCREMENT REINVESTMENT ZONE,NUMBER ONE
CITY OF BAYTOWN
November 6,2012
2012 AMENDMENT TO THE PROJECT PLAN
AND REINVESTMENT ZONE FINANCING PLAN
TABLE OF CONTENTS
Page
PROJECT PLAN
3
I.Existing uses and conditions of real property within the area of the proposed Zone
II.Proposed changes in zoning ordinance,master plan of the municipality,building codes 4
and other municipal ordinances
III.List of estimated non-project cost items 4
REINVESTMENT ZONE FINANCING PLAN
I.A detailed list describing the estimated projects of the Zone,including administrative 4
expenses
II.A statement listing the kind,number and location ofall proposed public works or 4
public improvements in the Zone
III.The estimated amount of bonded indebtedness to be incurred 4
IV.The time when related costs or monetary obligations are to be incurred 4
V.A description of the methods of financing all estimated project costs and the expected 5
sources of revenue to finance or pay project costs,including the percentage of tax
increment to be derived from the property taxes of each taxing unit that levies taxes
on real property in the Zone
VI.The current total appraised value of taxable real property in the Zone 5
VII.The estimated captured appraised valueof the Zone during each year of its existence 5
VIII.Duration of the Zone 5
IX.Schedule A 7
X.Schedule B 8
I.
2012 AMENDMENT
PROJECT PLAN
Existing uses and conditions of real property within the area of the Zone
Tax Increment Reinvestment Zone Number One,Cityof Baytown ("Zone")consists of property
located in the general vicinity of the intersection of Interstate 10 and Garth Road.Existing
development within the Zone consists of residential and commercial/retail development
including the San Jacinto Mall.The below map shows existing conditions of the Zone.Also
included in the map is the proposed enlargement area located east of Sjolander Road and north
of Interstate 10.The enlargement area willbe developed as a Chevron Phillips chemical plant
and road improvement.
The purpose ofthisPlan Amendment istoprovidefor the expansion and reconstruction of
Sjolander Road from Interstate 10toWallisvilleRoad.The tax increment revenue to fund the
road improvement project will come from the increase in taxable value in the enlargement area
of the Zone.
II.Proposed changes in zoning ordinances,the master plan of the municipality,building
CODES AND OTHER MUNICIPAL ORDINANCES
There areno proposed changes to any city ordinance,master planor building codes.
IV.List of estimated non-project costs
There areno non-project costs.
V.There will be no persons dislocated asa result of this plan amendment.
REINVESTMENT ZONE FINANCING PLAN
I.A DETAILED LIST DESCRIBING THE ESTIMATED PROJECT COSTS OFTHE ZONE,INCLUDING
ADMINISTRATIVE EXPENSES
Estimated Project Costs
Project Estimated Cost
Sjolander Road Improvement $6,900,000
Administrative expenses areanticipatedtobenegligibleas the Baytown Redevelopment
Authority currentlymanages the Zoneundercontractwith the City of Baytown.
II.STATEMENT LISTING KIND,NUMBERAND LOCATION OFALL PROPOSED PUBLIC WORKSOR PUBLIC
IMPROVEMENTS INTHE ZONE
1.SjolanderRoad improvement fromInterstate10northtoWallisvilleRoad.
III.Economic Feasibility Study
Thisplan amendment isfoundtobeeconomicallyfeasibleasprovidedin the financial
exhibitstothisplan amendment (whichexhibits constitute an economic feasibility
study).
IV.THE ESTIMATED AMOUNT OF BONDED INDEBTEDNESS TOBE INCURRED
The cost for the roadway improvements willbe advanced by Chevron Phillipsand reimbursed
through tax increment.There willbeno bonded indebtedness associate with thisplan
amendment.
V.THE TIME WHEN RELATEDCOSTSOR MONETARY OBLIGATIONS ARETOBEINCURRED
TheZone will incuramonetaryobligationuponexecutionof the development agreement with
Chevron Phillips andactualconstructionoftheroadimprovementproject.TheZone will be
obligated torepay Chevron Phillips forthecostoftheroadimprovementthroughincrement
derived from the chemical plant project.
VI.ADESCRIPTIONOFTHE METHODS OFFINANCINGALL ESTIMATED PROJECTCOSTS AND THEEXPECTED
SOURCESOF REVENUE TO FINANCE ORPAY PROJECT COSTS,INCLUDING THE PERCENTAGE OFTAX
INCREMENTTOBEDERIVEDFROMTHEPROPERTYTAXESOFEACHTAXINGUNITTHATLEVIESTAXESON
REALPROPERTYINTHE ZONE
Description of the Methods of Financing
Chevron Phillips will advanceproject-relatedcostsandbereimbursedthroughtaxincrement.
Sources of Tax Increment Revenue:
Harris County will bethesoleparticipantinthe Zone enlargementand will participate according
to the following table.
INCREMENT DEDICATED TO THE ZONE
Taxing Unit Tax Rate Dedicated
Harris County 75%ofGeneralFundTaxRate
VII.THE CURRENT TOTAL APPRAISED VALUE OFTAXABLE REAL PROPERTY INTHEZONE
ThetotalcurrentappraisedvaluewithintheZoneis$.
VIII.THE ESTIMATED CAPTURED APPRAISEDVALUEOFTHEZONEDURING EACH YEAROFITS EXISTENCE
Theestimatedcapturedappraisedvalueofthe Zone during eachyearofitsexistenceisshown
in Schedules A and B attached to the rear of this document.
IX.Duration of the Zone
TheZone enlargement does notaffect the duration of the Zonewhichis scheduled to terminate
in 2030.
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SCHEDULE b
Baytown TIRZ 1-ChevronPhillipsChemicalProject
Projected Assessed Valuations and Tax Increment
Tax
Roll
Janl
Cumulative
Commercial
Valuation
2013
2014 $20,000,000
2015 $80,000,000
2016 $342,400,000
2017 $739,200,000
2018 $1,270,000,000
2019 S 2,521,920,000
2020 $2,521,920,000
2021 $2,559,748,800
2022 $2,598,145,032
2023 $2,637,117,207
2024 $2,676,673,966
2025 $2,716,824,075
2026 $2,757,576,436
2027 $2,798,940,083
2028 $2,840,924,184
2029 $2,883,538,047
2030 $2,926,791,117
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Tax
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Coll.
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
100%of
County
Tax Rate
$0.3912
$0.3912
$0.3912
$0.3912
0.3912
0.3912
0.3912
$0.3912
$0.3912
$0.3912
$0.3912
$0.3912
$0.3912
$0.3912
$0.3912
$0.3912
$0.3912
$0.3912
Note:Reflects1.5%annual appreciation oncebuildoutis complete in2020
75%Of
County Tax
Collection
58,676
234,702
1,004,525
2,168,646
3,725,894
7,398,746
$7,398,746
$7,509,727
7,622,373
7,736,709
7,852,759
7,970,551
8,090,109
$8,211,460
$8,334,632
$8,459,652
$8,586,547
$102,364,453
Total
Tax
Revenues
Available
$
$58,676
$234,702
$1,004,525
$2,168,646
3,725,894
7,398,746
7,398,746
7,509,727
7,622,373
7,736,709
7,852,759
$7,970,551
$8,090,109
$8,211,460
$8,334,632
$8,459,652
$8,586,547
$102,364,453
Cumulative
Tax Revenue
Available
1,004,525
3,173,171
6,899,065
14,297,811
21,696,557
29,206,284
36,828,657
$44,565,365
$52,418,125
60,388,675
68,478,784
76,690,244
85,024,877
93,484,529
$102,071,075