CC Resolution No. 7671296
RESOLUTION NO. 767
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, REPEALING RESOLUTION NO. 514 DULY ADOPTED BY THE
CITY COUNCIL OF THE CITY OF BAYTOWN ON JULY 10, 1975,
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, CONSE-
QUENTLY, SUCH MANUFACTURING INDUSTRIES AS A WHOLE
SHOULD COMPENSATE THE CITY OF BAYTOWN PROPORTIONATELY
AS TO THEIR USE AND ENJOYMENT OF SUCH MUNICIPAL SERVICES.
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 whenever possible for the
general advancement of the affected population; and
WHEREAS, it is generally recognized 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 repeals Resolution No. 514, which was adopted on July
10, 1975, and declares said resolution to be without force
and effect.
Section 2: That the City Council of the City of Baytown
hereby finds, declares, and establishes that such manufactur-
ing industries should pay a fair share of tax revenues to
the City of Baytown.
1297
Section 3: That the City Council further finds, de-
clares, 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 4: 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 juris-
diction, 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 5: It is hereby provided that compensation
shall be determined uniformly for each manufacturing indus-
try as follows:
TOTAL PAYMENT TO CITY = TAX PAYMENT + INDUSTRIAL DISTRICT PAYMENT
Tax Payment = Tax Rate x fair market value of
industrial facility in annexed area.
Industrial District Payment = (Tax Rate x fair
market value of total industrial
facility as determined by the City
of Baytown x 0.35 )
minus tax payment.
Section 6: 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.
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:
1298
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 follow-
ing manner: January 1 of the second contract
year, 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 tax payment and industrial District
payment due the City of Baytown using the Industrial
District Payment Formula as per the standard
contract. One-third of this amount shall be paid
January 31 of each contract year beginning with
the second contract year and ending with the
fourth contract year. Adjustments as to the 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 dis-
trict 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.
Any 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 (50) per cent of the fair market value of the existing
facilities or ten million dollars. Investments which solely
replaces or modernizes existing facilities shall not be
1299
considered as 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.
The City Council reserves the right to judge the desir-
ability of new industry or expansions to existing industry
so as to qualify for the exempt compensation period.
New industries which accept the benefits of this exemp-
tion consent to the annexation of twenty (20%) per cent of
(fair market value) of their facilities in the third contract
year of this exemption and agree to entering into the Standard
Industrial District Contract with the City of Baytown.
Section 7: 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 the 14th day
of April , 1981.
41MEATT44�OHUMC, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED:
RANDALL B. STRONG, City Atik6rney