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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 OEM 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. 1816 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 C:1:40:22