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Ordinance No. 12,395ORDINANCE NO.12,395 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,AUTHORIZING ANDDIRECTINGTHE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN INDUSTRIAL DISTRICT AGREEMENT WITH ENTERPRISE PRODUCTS OPERATING LLC;AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. *************************************************************** BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section1:ThattheCityCouncil of theCityofBaytown,Texas,herebyauthorizes anddirectsthe Mayor andCityClerk of theCity of Baytownto execute andattesttoan IndustrialDistrictAgreementwith Enterprise ProductsOperatingLLC.Acopy of said Industrial DistrictAgreementisattached hereto,markedExhibit"A"andincorporatedhereinfor all intents and purposes. Section2:This ordinance shalltakeeffect immediately fromandafteritspassageby theCityCouncil of theCity of Baytown. INTRODUCED,READ,and PASSED by the affirmative \f^eof the City Council of the City of Baytown,this the 18lh day of November,2013. STEPHEN II.DONCARLOS,Mayor ATTEST: J2TICIA BRYSeHyCityoZlerk APPROVED AS TO FORM: ACIO RAMIREZ,SR.,Cit^Attorney R:\Karcn\Filcs\CityCouncil\Ordinances\2013\Novembcr l8\EnierpriseProductsOperatingIDAOrdinaiice.doc Exhibit "A" Industrial District Agreement This IndustrialDistrict Agreement ("Agreement")ismadeandenteredinto between the City of Baytown,Texas,amunicipal corporation in Harris andChambersCounties,Texas, hereinafter also referred toas"Baytown"or"City,"and Enterprise Products Operating LLC,a Texaslimitedliabilitycompany,hereinafter referred toas"PropertyOwner."In consideration of thepromisesand of themutualcovenantsandagreementshereincontained,itisagreed by and between the City andProperty Owner asfollows: I. Parties ThisAgreementismadeundertheauthority of TexasLocalGovernmentCodeAnnotated §42.044(Vernon1993),articleXI,§5 of theTexasConstitutionandotherapplicablelaw.The parties totheAgreementandtheir addresses are: 1.The "City" City of Baytown Attn:CityManager P.O.Box 424 Baytown,TX 77522 'Copy to: City of Baytown Attn:City Attorney P.O.Box 424 Baytown,TX 77522 The"PropertyOwner"TaxStatementAddress: Enterprise Products Operating LLC Enterprise Products Operating LLC I Attn:Ad Valorem Tax Attn:AdValoremTax ! P.O.Box 4018 P.O.Box 4018 j Houston,TX 77210-4018 Houston,TX 77210-4018 j II. Identification of PropertyandIndustrialDistrict This Agreement includes provisions concerning certain real estate and tangible personal property owned or leased bythe Property Owner.Real estate located outside the corporate lunits of theCityis sometimes referred to herein asthe "affected area,"anditis described in Exhibit A, whichis attached tothis Agreement and made a part hereof.Acting pursuant tothe above mentioned authority,theCity Council of theCityhasby ordinance,designated the affected area asanindustrial district,thesametobe known as Baytown IndustrialDistrictNo.2(the "Industrial District"). Theterm of thisAgreementisseventax years,from2014through2020unlessitis sooner terminated undertheprovisionshereof.ThisAgreementshallbeeffectiveandbindingon the parties heretouponexecutionhereofonbehalf of the parties tothisAgreementandshall remainin effect forsevenyears.ThisAgreementsupersedesanypriorexistingagreements betweenthe Property OwnerandtheCity relating tothesubjectmatterhereofand governing the affected area;totheextentanysuchpriorexistingagreementrequiredpaymentonorafter January 1,2014,suchpaymentobligationsareherebycanceledandaresupersededbythe provisionscontainedherein. IV. Limited Immunity from Annexation bv the City In consideration of theobligations of the Property Ownerhereinsetforth,theCityhereby guarantees fortheterm of thisAgreementtheimmunity of theaffected area from annexation of a&y typebytheCityexceptforsuchparts of theaffectedpropertyas may benecessarytoannex property ownedbythird parties withinthe Industrial District thattheCitymaydecidetoannex. Additionally,thisAgreement shall notaffectthe continuation of anylimited purpose annexation statusto which the affected areaisnowsubject. ''V.' Industrial District Payment As part of the consideration for theCity's undertakings asset forth above,the Property Owner agrees to pay to the City onor before December 31st of each year during the term hereof a sum of moneyequal to:the Base Value Industrial District Payment plustheAddedValue Industrial District Payment.Thesum of theBaseValue Industrial DistrictPaymentplusthe AddedValue Industrial DistrictPaymentshallbe referred toasthe Industrial DistrictPayment A. Base Value Industrial District Payment TheBaseValue Industrial District Paymentshallbe calculated as follows: (1)the fair marketvalueis agreed toandstipulatedbythe parties tobe TWO HUNDRED MILLION AND NO/100 DOLLARS ($200,000,000.00)fortaxyears 2014and2015,and THREE HUNDRED MILLION AND NO/100 DOLLARS ($300,000,000.00)fortaxyears2016,2017,2018,2019and2020,which fair market value shallbe hereinafter referredtoas "Base Year Value,"multiplied by (2)thepropertytaxrateper SI00.00 of assessedvaluationadoptedbytheCity CouncilfortheCity,multipliedbytheapplicableYearlyPaymentRateas detailed below. TheapplicableYearlyPaymentRateisthesum of theIndustrialDistrictPaymentRate plusthe Public Community Improvement Rateandshallbe determined usingthe following chart: TAX YEAR INDUSTRIAL DISTRICT PAYMENT RATE PUBLIC COMMUNITY IMPROVEMENT RATE YEARLY PAYMENT RATE 2014 .61 .01 .62 2015 .62 .01 .63 2016 .62 .01 .63 2017 .63 .01 .64 2018 .63 .01 .64 2019 .63 .01 .64 2020 .64 .01 .65 B. Added Value Industrial District Payment TheAddedValueIndustrialDistrictPaymentshallbe calculated asfollows: (1)thefairmarketvalueasdeterminedbytheCity,of all of theProperty Owner's landandall other tangibleproperty,real,personal or mixed,withinthe affected areaonJanuary1 of eachyearinwhichanIndustrialDistrictPaymentisdue hereunder minustheBase Year Value,hereinafter referred toasthe "Added Value,"multipliedby (2)the property taxrateper SI00.00 of assessed valuation adopted bytheCity CouncilfortheCityforeachyear of theterm of thisAgreement,multipliedbythe applicable total added value industrial district payment rate detailed below. The applicable Total Added Value Industrial District Payment Rateshallbe determined usingthefollowingchart: TAX YEAR ADDED VALUE INDUSTRIAL DISTRICT PAYMENT RATE PUBLIC COMMUNITY IMPROVEMENT RATE TOTAL ADDED VALUE INDUSTRIAL DISTRICT PAYMENT RATE 2014 0 .01 .01 TAX YEAR ADDED VALUE. INDUSTRIAL DISTRICT PAYMENT RATE PUBLIC COMMUNITY IMPROVEMENT RATE TOTAL ADDED VALUE INDUSTRIAL DISTRICT PAYMENT RATE 2015 0 .01 .01 2016 0 .01 .01 2017 0 .01 .01 2018 .21 .01 .22 2019 .42 .01 .43 2020 .64 .01 .65 Iftheformulausedin calculating theAddedValueIndustrialDistrictPaymentproducesa negativenumber,thentheAddedValue Industrial District Payment shallbe SO.00. VI. Valuations Forthe purpose of providing a procedure for determining and collecting the amounts payable bythe Property Owner hereunder,there are hereby adopted andmadeaparthereof all provisions of the Constitution and statutes of the State of Texas pertaining toad valorem taxation asamended throughout theterm of thisAgreement(including,in particular,theTexasProperty TaxCode),except,however,Uiat (i)tothe extent thatanyofsuch provisions would require the assessment ofthe Property Owner's property onan equal and uniform basiswith property inthe general corporate limits oftheCity,the provisions ofthis Agreement will control where in conflictwiththeprovisions of suchlawsand(ii)theincomemethod of appraisalasdescribedin Section23.012 of theTexasPropertyTaxCodeshallnotbelimitedtoonlypropertiesforwhich a rental market exists.Specifically,nothing contained herein shalllimitthe income method of appraisal specified in Section 23.012 oftheTexas Property TaxCodetoonly properties for whicharentalmarketexists,insteadifsuchmethodisused,the chief appraiser shall: 1.use income and expense data pertaining tothe property,if possible and applicable; 2.makeany projections of future income andexpensesonly from clearand appropriate evidence; 3.usedata from generally accepted sources in determining an appropriate capitalization rate; 4.determineacapitalizationrateforincome-producingpropertythatincludesa reasonablereturnon investment,takingintoaccounttheriskassociatedwiththe investment. A. Valuation of Property Inside theCorporateLimitsbutSubsequentlyDisannexed Land,improvements and tangible property,realor mixed,ofthe Property Owner,which aredisannexed from thecorporatelimits of theCityduringtheterm of thisAgreement,shall becomepart of the affected areaimmediatelyupondisannexation.The valueforsuch land, improvements and tangible property,real ormixed,shall bebaseduponthe2014 appraised value,asfinallydetermined by theChambersCountyAppraisalDistrictoritslegalsuccessor(or through administrative orjudicial appeal of the Chambers CountyAppraisalDistrict's determination),andshallbeaddedtotheBaseYearValuespecifiedinArticleVforpurposes of payment hereunder on January 1 of theyearthesameis disannexed. B. Valuation of PropertyOutsidetheCorporate Limits The parties heretorecognizethatsaid Chambers CountyAppraisalDistrictisnot required to appraise the land,improvements,and tangible property,realor mixed,intheaffected area, whicharenotwithinthe corporate limits of theCity,forthepurpose of computingthepayments hereunder.Therefore,the parties agree thattodeterminethe fair marketvalue of all of the Property Owner's land,improvements,and tangible property located outsidethe corporate limits of theCityin accordance withthemarketvaluecomputationcontemplatedintheTexas Property TaxCodeforthepurpose of calculating the Property Owner'spaymentinthemanner described above,theCitymaychoosetousethe appraised value for eachyearinwhichan Industrial District Paymentisdue hereunder,as finally determined bytheChambersCounty Appraisal District (orthrough administrative or judicial appeal of theChambersCounty Appraisal District's determination),orby appraisal conducted bytheCityand/orbyan independent appraiser of the City's selection,and atthe City's expense.Nothing contained herein shall ever be construed asin derogation of the authority of the.Chambers County Appraisal District to establish the appraised value of land,improvements,and tangible personal property inthe annexedportionforad valorem taxpurposes. C. BindingEffect Determination of the Base Year Value and the Added Value in the above-stated manner outside the corporate limits shall bemadebytheCityand approved bythe Industrial Appraisal Review Board.Such final fair marketvalueas approved bythe Industrial Appraisal Review Board shall be final and binding unlesseither party withinthirty(30)daysafterreceipt of the Board's determination petitions for a Declaratory Judgment totheCivil District Court of Harris County,Texas,as provided for by Section XIV hereof.In determining the fair market value of property and improvements asused herein,the Industrial District Appraisal Board shall base its determinationonthefairmarketvalueasdefinedinSection VI herein,givingdueconsideration to comparable present day facilities considering and giving effectto sound engineering valuation practices relative toservicelife,life expectancy,process and functional obsolescence. D. Statements TheCityshallmailonestatementtothePropertyOwneronoraboutDecember1 of each yearshowingthetotalamountdueonDecember 31 of suchyearpursuanttothisAgreement. Suchstatementshallbemailedtothe "Tax Statement Address"notedinthis Agreement.Any amountsdueonDecember 31 thatarenotpaidwhendueshall become delinquent onJanuary1 of thefollowingyear.Provided,however,if thetaxstatementismailedafterDecember10,the delinquencydateispostponedtothefirstday of thenext month that will provideaperiod of at least21daysafterthedate of mailingforpayment of theamountdue.Delinquent amountsshall be immediately subject tothesamepenalties,interest,attorneys'feesand costs of collection as recoverable bytheCityinthecase of delinquentadvaloremtaxes.TheCityshallhavealien uponthe Property Owner's landwithintheaffected area uponanydelinquencyinthe Industrial District Payment E. Valuation Contests If anydifferencesconcerningthe appraised valuesshallnothavebeenfinallydetermined bytheduedate of thePropertyOwner'spaymenthereunderandthePropertyOwnerdesiresto pursue any additional available remedies,the Property Ownershall,without prejudice tosuch remedies,paytotheCitybyDecember 31 of eachyear(subjecttotheexceptioninthe preceding paragraph forstatementsmailedafterDecember10),suchamountasisprovidedintheTexas Property TaxCode,asamended throughout theterm of thisAgreement,for payments made undersuchconditionsbyowners of propertywithinthegeneralcorporatelimits of theCity subjecttoadvaloremtaxation.Any refundpayablebytheCitytothePropertyOwnerhereunder shallbepaidwithin60daysafterreceiptbytheCity of bothChambersCounty Appraisal District'sformnotificationthatthe appraised value of thepropertyhasbeenreducedanda writtenrefundrequestbythe Property Owner;if notpaidtimely,therefundamountshallbear interestateightpercentperannumbeginning60daysaftertheCityreceivedboththe Property Owner'swrittenrefundrequestandtheChambersCountyAppraisalDistrict's formal notificationthatthe appraised value of the property hasbeen reduced. VII. Compliance withLaw TheCityandthe Property Ownermutually recognize thatthehealthandwelfare of Baytown residents require adherence tohigh standards of qualityintheairemissions,water effluents andnoise,vibrationandtoxiclevels ofthoseindustrieslocatedintheIndustrialDistrict, and that development withinthe District mayhavean impact onthe drainage of surrounding areas.Tothisend,the Property OwnerandtheCity agree thatthesame standards and criteria relative tonoise,vibrationandtoxiclevelsand drainage andfloodcontrolwhichareadoptedby theCityandmade applicable to portions of theCity adjacent tothe Industrial Districtshallalso be applicable totheaffected area.The Property Owner agrees thatany industrial orother activity carried onwithintheaffected area willbe constructed in strict compliance withall applicable validstateand federal airandwater pollution control standards.Ifthe Property Owner's property withintheaffected area issubjecttothe Occupational Safetyand Health Act, 29 U.S.C.65,etseq.,asamended,thenthe Property Ownershallundertaketoensurethatits facilities andimprovementsintheaffected area complywiththe applicable firesafety standards of suchactandtheresolutionsfromtimetotimepromulgatedhereunder(the "OSHA Standards"),butthereshallbenoobligationtoobtainanypermits of anykindfromtheCityin connectionwiththe construction,operation or maintenance of improvementsand facilities inthe affected area notlocatedwithinthe corporate limits of theCity.Nonetheless,for construction which commences aftertheexecution of this Agreement,theProperty Owner agreesthatany structure built within the affected areashallbe built in accordance with the building code adopted by the City in effect atthetime ofconstruction. TheCityandthe Property Owner recognize thatactivitiesinthe City's industrial districts aresubjecttoregulationbyother governmental entities,includingthestateand federal governmentsandtheirvariousdepartmentsandagencies.TheCityandthePropertyOwneralso recognizethattheCitymayhaveaninterestinactivitiesinthe City's industrialdistrictsthatare regulated byothergovernmentalentities.Nothinginthis Agreement isintendedtolimitthe City'srightandauthoritytocommunicateits interest in,oroppositionto,thoseactivitiestothe applicable regulatoryagenciesorto participate,totheextentallowed by law,inany related administrativeorjudicialproceeding. VIII. Inspections The Chief Appraiser of the Chambers County Appraisal.District andtheCityorits independent appraiser shall havethe same right to enter and inspect the Property Owner's premises andthe same righttoexaminethe Property Owner'sbooksand records todeterminethe value of the Property Owner's properties asareprovidedintheTexasPropertyTaxCodeas amended. IX. Public Community Improvement ThePropertyOwnermayapplytotheCityforreimbursementforaPublic Community Improvement Project designedto further thepubliccommunityimprovementgoals of theCity of Baytown.Such project,theduration of the project,andthelocationthereofmustbeapprovedin writingbytheCity Manager of theCitybaseduponthepublic commumty improvementgoals of theCityineffectatthetime of the application.ThePublic Community Improvement Project mustbecompleted prior tothe expiration of theAgreementyearduringwhichitisapprovedto beeligiblefor reimbursement,except if itis approved asamulti-year project.The Public CommunityImprovement Project maybeformultiple years;however,inordertobeeligiblefor reimbursementinaccordancewiththisarticle,itmustbe completed priortotheexpirationor termination of this Agreement Further,theprojectmaybeconstructedontheProperty Owner's property;providedthattheprojectisvisible from and enhances apublicwayorotherpublic property.Any reimbursementunderthisarticleshallbesubjecttotheCityManager's determination thatthecompleted Public CommunityImprovement Project meetsorexceeds thoseimprovementefforts proposed and approved priortothestart of the project. Reimbursementmaynotexceedtheamountthe Property OwnerwillpaytotheCitybasedsolely uponthePublicCommunityImprovementRate established inArticleV hereof duringtheterm ofthisAgreementItis expressly understood and agreed thatinanyyear during theterm of this Agreement,the Property Ownershallnotsubmita request for reimbursement whichexceedsthe amountthe Property Ownerhas paid totheCitybasedsolelyuponthe Public Community Improvement Rate established inArticleV hereof.Ifthe Property Owner fails to receive the City Manager's approval of a Public Community Improvement Project prior tothe expiration of anAgreementyear,the Property OwnerwillhavenoclaimtothemoniespaidtotheCitybased uponthe Public Community Improvement RateandtheCityshallusesuch funds for a project consistentwiththe City's publiccommunityimprovementgoals. X. Default A. Default bv Property Owner Intheevent of defaultbythe Property Ownerinthe performance of any of theterms of thisAgreement,including the obligation tomakethe payments aboveprovided for,theCity shall have the option,if such default isnotfully corrected within sbcty (60)days from thegiving of writtennotice of suchdefaulttothe Property Ownertoeither(i)declarethisAgreement terminatedor(ii)continuetheterm of thisAgreementandcollectthepaymentsrequired hereunder.Notwithstandinganytothe contrary containedherein,shouldtheCitydeterminethe Property Owner isin default according tothe terms and conditions of Section VII hereof,the Cityshallnotifythe Property Ownerin writing byU.S.Mail,certified return receipt requested,at the address stated in this Agreement,and if such default is not cured within sixty (60)days from thedate of suchnotice(the "Cure Period")thensuch failure tocureshallconstitutea material breach of this Agreement;provided that,inthecase of a default under Section VII for causes beyond the Property Owner's control that cannot withdue diligence be cured withinsuch sbcty (60)day period orintheevent that the failure tocure results from ongoing negotiations with federal orstate officials,administrativeproceedingsorlitigationregardingthenecessarycure steps,thenthecure period shall be extended untilsuch negotiations,administrative proceedings orlitigationareconcluded. B. Default bv City Intheevent of default bytheCity,the Property Ownermay,if such default isnot fully corrected within60days from giving written notice of such default totheCity,terminate this Agreement.Upon such termination,both the Property Owner and theCity shall be relieved of all further obligations hereunder,butthe Property Owner shall notbe relieved of the obligation to pay any amounts that accrued prior to such termination.Intheevent of termination,theCity shall havetherightto repeal the ordinance designating theaffected area asan industrial district. Provided,however,if the termination occursasaresult of the City's exercisingitsoptionto terminate (as provided inthe first sentence of this Section X),theCity shall not have the right to annex the affected area intothe general corporate limits of theCitysoastosubjectthe affected area toadvaloremtaxesforany part of the period coveredbythe Property Owner'slastpayment hereunder. XI. Notice Any notice tothe Property OwnerortheCity concerning the matters towhichthe Agreement relates maybegivenin writing by registered or certified mail addressed tothe Property OwnerortheCityatthe appropriate respective addresses set forth onthecover page of thisAgreement Any suchnoticein writing maybegiveninanyother manner.If givenby registered orcertifiedmail,thenotice shall beeffectivewhen mailed.Withtheexception of annual bills for payments due herein,notice giveninanyother manner shall beeffectivewhen receivedbythePropertyOwnerortheCity,asthecasemaybe. XII. No Further Expansion ofTaxing Jurisdiction Nothing herein contained shall be construed to change or enlarge the jurisdiction,power or authority of theCityoverorwith respect totheaffected area as prescribed by applicable law, except as specifically provided inthis Agreement.The Property Owner shall notbe obligated by virtue of thisAgreementorthe establishment of the industrial district covering theaffected area notwithinthe corporate limits of theCity,tomakeanypaymentstotheCityinthe nature of a taxor assessment baseduponthevalue of the Property Owner's property intheaffected area during theterm of this Agreement,other than the payments specified herein^Specifically,.the Property Owner shall notbe liable for anyCity taxes within the affected area,including,without limitation,Cityadvaloremtaxesontaxable property withintheaffected area. XIIL Reimbursement for Services Ifthe Property Owner requests and receives mutual aid firefighting assistance and isa member of Channel Industries Mutual Aid organization ("CIMA")orsimilar organization,the Property Owner shall reimburse the City for costs incurred bytheCityin providing fire protection services tothe Property Owner as shall be provided inthe charter,bylaws and agreements pursuant to which CIMAor such similar organization is organized and operates.If the Property Owner requests and receives mutual aid firefighting assistance andisnotamember of CIMAora similar organization,thenthe Property Owner shall be required to reimburse the City for costs actually expended bytheCityin providing any firefighting assistance tothe Property Owner,includingchemicaland personnel costs. XIV. Declaratory Judgment Action Ifany disagreement arises betweenthe parties concerning the interpretation of this Agreement,itis agreed that either of the said parties may petition anyCivil District Court of Harris County,Texas,fora Declaratory Judgment determining saidcontroversyandthecause shallbetriedasother civil causes.If thecontroversyaffectsanIndustrialDistrict Payment,the Property Owner shall,pending final determination of said controversy,paytotheCityonthedue datethesameamountwhichwaspaidtotheCityforthelastprecedingperiodastowhichthere wasnocontroversyconcerningtheamountowedbythePropertyOwnertotheCity.The Property Owneragreestotenderany additional amount of potential liabilitytotheregistry of the CivilDistrict Court,Harris County,Texas,pendingfinaldetermination of thecontroversy beyondany further appeal. XV. Assignment ThisAgreementshallnotbestowany rights uponanythirdparty,but rather,shallbind andbenefitthe Property OwnerandtheCityonly.If the Property Ownerconveys all orany part of the property then covered hereby,the Property Owner shall notifytheCitywithin30 days of theconveyanceandshall thereafter ceasetobe obligated withrespecttothe property so conveyedandtheBaseYearValueplustheAddedValueshallbe apportioned betweenthe Property Ownerandthe grantee based uponthe property conveyed,only if the grantee thereof entersintoan Industrial DistrictAgreementwiththeCitywithrespecttosuchpropertyso conveyed.Norightor obligation underthisAgreementmaybesold,assigned or transferred. XVI. Authority The Property OwnercovenantsthatithastheauthoritytoenterintothisAgreementby virtue of beingeitherthelegalor equitable owner of a possessory estate (including a leasehold estate)inthe land comprising the affected area,whichwillnot terminate beforethe expiration date of thisAgreement.Additionally,theofficersexecutingthisAgreementonbehalf of the parties hereby represent thatsuch officers have full authority toexecutethis Agreement and to bindthepartyherepresents. XVII. NoMunicipalServices Itis agreed that during theterm of this Agreement,theCityisunderno obligation to provide any governmental,proprietary or other municipal services totheaffected area. Specifically,butwithout limitation,itis agreed thattheCity shall notbe required to furnish (1) sewerorwaterservice,(2)police protection,(3)fire protection (4)road orstreet repairs,and(5) garbage pickupservice. XVIII. Severability Ifany provision of this Agreement,orany covenant,obligation or agreement contained herein,including,without limitation,that term hereof,is determined byacourttobe invalidated or unenforceable,suchprovision,covenant obligation oragreementshallbereformedsoasto complywith applicable law.If itisnot possible toso reform such provision,covenant 10 obligation or agreement,such determination shallnotaffectanyotherprovision,covenant, obligation or agreement,each of which shall be construed andenforcedas if theinvalidor unenforceable portionwerenot contained herein.Provided,further thatsuchinvalidityor unenforceability shallnotaffectanyvalidand enforceable provisionthereof,andeachsuch provision,covenant,obligation or agreement shall bedeemedtobeeffective,operative,made, enteredintoortakeninthemannerandtothefullextentpermittedbylaw.Notwithstandingthe above,if the application of thisSectionXVIII requires reformation orrevision of anytermthat removesormateriallydiminishestheobligation of the Property Ownertomakethepaymentsto theCity described herein(exceptintheevent of a reformation thatshortenstheterm of this Agreement),theCityshallhavetheoptionto declare thisAgreementterminated. XDC. Complete Agreement ThisAgreementcontainsalltheagreements of the parties relatingtothesubjectmatter hereofandisthefulland final expression of theagreementbetweenthe parties. XX. Non-waiver Failure of eitherpartyheretotoinsistonthestrict performance of any of the agreements herein ortoexerciseanyrightsor remedies accruing thereunder upondefaultor failure of performance shall not be considered a waiver of the right toinsistonandto enforce byan appropriate remedy,strict compliance with any other obligation hereunder to exercise any right or remedy occurring asa result ofany future default or failure of performance. XXI. Ambiguities Intheevent of any ambiguity inany of the terms of this Agreement,it shall notbe construed for or against any party hereto onthe basis that such party didordidnot author the same. XXII. Headings The headings appearing atthe first of each numbered sectioninthis Agreement are inserted and included solely for convenience and shall neverbe considered orgivenanyeffectin construing this Agreement orany provision hereof,orin connection withthe duties,obligations or liabilities of the respective parties hereto orin ascertaining intent if any question of intent should arise. 11 XXIII. Choice of Law:Venue This Agreement shall inall respects be interpreted and construed in accordance with and governed bythelaws of theStateofTexasandtheCity,regardless of theplaceofits execution or performance.The place of making andthe place of performance forall purposes shall be Baytown,HarrisCounty,Texas. XXIV. Agreement Read The parties acknowledge thattheyhave read,understand andintendtobeboundbythe termsandconditions of thisAgreement. IN WITNESS WHEREOF,this Agreement isexecutedinmultiplecounterpartsonbehalf of the Property Owner this day of '2013,and on behalf of the City thisday of _,2013. ENTERPRISE PRODUCTS OPERATING LLC ATTEST: mj«&6.Mm. AssiiMt Secretarv BY:Enterprise Products OLPGP,Inc., its Sole Manager Bv:/VV^l >-(1>^L fr 12 Mtchae)ZT.K/teSek Printed Name rSWor Vfcr PWdgrif frfrttifri)Actftoirfto ©flffcfr™8 ewd ConWvlb*'^ CARLOS,Mayor ATTEST: LETICIA BRYSCH,City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ,SR.,City Attorney LOUISE RICHMAN,Finance Director R:Ucaiwne\My Documtnls\Contracts\IDA\RevisedEnlerpriteProducisOperaiinglDA.doc 13 Exhibit "A" SURVEY DESCRIPTION: TRACTB BEING A TRACT OR PARCEL OF LAND CONTAINING 75.741 ACRES (3,299,293 SQ.FT.) AND SITUATED IN THE HANNAH NASH SURVEY,ABSTRACT NUMBER 20, CHAMBERS COUNTY,TEXAS AND BEING A PART OF ALL OF THOSE PARCELS OF LAND DESCRIBED AS FOLLOWS:A CALLED 431.00 ACRE TRACT OF LAND DESCRIBED IN VOLUME 11-1244 AT PAGE 645,A CALLED FOR 88.077 ACRE TRACT OF LAND DESCRIBED IN VOLUME 11-1244 AT PAGE 658,A CALLED 6.854 ACRE TRACT OF LAND BEING DESCRIBED AS "TRACT 1"DESCRIBED IN VOLUME 1390 AT PAGE 595 ALL IN THE OFFICIAL PUBLIC RECORDS OF CHAMBERS COUNTY, TEXAS (BEARING AND DISTANCES HEREIN ARE ORIENTED TO THE TEXAS STATE PLANE COORDINATE SYSTEM,SOUTH CENTRAL ZONE 4204 AS PER GPS OBSERVATIONS PERFORMED BY NTB ASSOCIATES,INCORPORATED)AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A FOUND 1/2"IRON ROD AT THE SOUTHEAST CORNER OF SAID 88.077 ACRE TRACT,SAID POINT ALSO BEING ON THE WEST RIGHT OF WAY OF HATCHERVILLE ROAD (WITH VARYING R\W WIDTH)RECORDED IN VOLUME 95- 276 AT PAGE 344 FROM WHICH A FOUND 5/8"IRON ROD LYING ON THE PREVIOUS WEST RIGHT OF WAY OF HATCHERVILLE ROAD BEARS N77°02,18"E 19.73'AND RUNNING THENCE N14°2r43"W,ALONG SAID WEST RIGHT OF WAY AND EAST LINE OF SAID 88.077 ACRE TRACT,126.37'TO A SET 5/8"REBAR WITH CAP STAMPED PLS #5816 AND THE POINT OF BEGINNNIG;THENCE LEAVING SAID WEST RIGHT OF WAY AND SAID EAST LINE S77°54'53"W 1283.23'TO A SET 5/8" REBAR WITH CAP STAMPED PLS #5816;THENCE S66°35'22"W 53.99*TO A SET 5/8" REBAR WITH CAP STAMPED PLS #5816;THENCE N39°42'01 "W 153.49*TO A SET 5/8" REBAR WITH CAP STAMPED PLS #5816;THENCE N49°00'27"W 557.25*TO A SET 5/8" REBAR WITH CAP STAMPED PLS #5816:THENCE N67°48'47"W 319.71*TO A SET 5/8" REBAR WITH CAP STAMPED PLS #5816;THENCE N14°13'21 "E 252.74 TO A SET 5/8" REBAR WITH CAP STAMPED PLS #5816;THENCE N14°44'21 "E 1196.85'TO A SET 5/8" REBAR WITH CAP STAMPED PLS #5816;THENCE N78°21'06"E 1276.94'TO A SET 5/8" REBAR WITH CAP STAMPED PLS #5816 ON THE SAID WEST RIGHT OF WAY OF HATCHERVILLE ROAD AND THE EAST LINE OF SAID 88.077 ACRE TRACT;THENCE S13°29'05"E,ALONG SAID RIGHT OF WAY AND THE EAST LINE OF SAID 88.077 ACRE TRACT,240.70'TO A SET 5/8"REBAR WITH CAP STAMPED PLS #5816;THENCE S14°21'43"E,ALONG SAID WEST RIGHT OF WAY AND SAID EAST LINE,1796.61'TO THE POINT OF BEGINNING CONTAINING 75.741 ACRES,MORE OR LESS. TOGETHER WITH AND SUBJECT TO ANY AND ALL EASEMENTS,RIGHT OF WAYS, AND OTHER RESTRICTIONS OR ENCUMBRANCES OF RECORD.