CC Resolution No. 10151814
RESOLUTION NO. 1015
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, REPEALING RESOLUTION NO. 767 DULY ADOPTED BY THE
CITY COUNCIL OF THE CITY OF BAYTOWN AND DECLARING SAID
RESOLUTION TO HAVE NO FORCE AND EFFECT; 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 COMPENSATE
THE CITY OF BAYTOWN PROPORTIONATELY AS TO THEIR USE AND
ENJOYMENT OF SUCH MUNICIPAL SERVICES.
WHEREAS, orderly economic
living and otherwise improves
community as a whole; and
growth raises the standard of
the quality of life for the
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. 767, which was adopted on April 14,
1981, 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 manufacturing
industries as described above should pay a fair share of tax
revenues to the City of Baytown.
Section 3: 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 the fair market
value of such property, unless otherwise agreed by a
manufacturing industry.
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 jurisdiction, as provided for in
the Texas Local Government Code, Section 42.043. The City
Council further desi
treated equally and
industries should be
equitable industrial
boundary lines, and
regulations.
res that
that con
uniform
revenues
uniformly
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all manufacturing industries be
;ractual provisions with all such
and consistent so as to generate
between industries, set uniform
apply environmental protection
Section 5: 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 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 0.4) 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:
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, 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 combined amount shall be paid
December 31 of each 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 of the fourth contract year.
Any credits shall be deducted from the next year's
industrial district payment.
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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
(5 %) per cent of the fair market value of the existing
manufacturing facilities or ten million dollars. An investment
which solely replaces or modernizes existing facilities shall not
be 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
expansions.
The City Council reserves the right to judge the
desirability 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 exemption
consent to the annexation of twenty (20%) per cent of the fair
market value of their facilities in the third contract year of
this exemption and agree to enter into the Standard Industrial
District Contract with the City of Baytown prior to the end of
the fourth contract year.
Section 7: Industries that qualify for tax abatement under
the City of Baytown Tax Abatement Policy may choose to
participate in such tax abatement program in lieu of receiving
the exemptions described in Section 6 above. Industries choosing
to participate in tax abatement shall agree to the annexation of
twenty (20 %) per cent of the fair market value of their
facilities prior to the first year of tax abatement and agree to
enter into the Standard Industrial District Contract with the
City of Baytown prior to the end of the tax abatement period.
Section 8: 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 24th day of March,
1988.
� - ,
METT • HUTTO, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED:
RANDALL B. STRONG, City Att ney
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