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Ordinance No. 12,416ORDINANCE NO. 12,416 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH CHEVRON PHILLIPS CHEMICAL COMPANY LP., HARRIS COUNTY, THE BAYTOWN REDEVELOPMENT AUTHORITY AND TI -IE REINVESTMENT ZONE NUMBER ONE, CITY OF BAYTOWN, TEXAS, FOR THE TIRZ SJOLANDER ROAD PROJECT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes the City Manager to execute and the City Clerk to attest to an Amendment to the Development Agreement with Chevron Phillips Chemical Company LP., Harris County, the Baytown Redevelopment Authority and the Reinvestment Zone Number One, City of Baytown, Texas, for the TIRZ Sjolander Road Project. A copy of said amendment is attached hereto as Exhibit "A," and incorporated herein for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative v of the City Council of the City of Baytown this the 18" day of November, 2013. l S EPHEITTI. DONCARLOS,M or ATTEST: LETICIA B$YSCH.. CI Clerk APPROVED AS TO FORM: ART R R:T=nkFileskCity CouncilkOMinm =\2013Wovember I R endmenCTIRZNvelopuAgement.doc AMENDMENT TO DEVELOPMENT AGREEMENT This AMENDMENT TO DEVELOPMENT AGREEMENT (this "Agreement "), dated 2013, is made by and between REINVESTMENT ZONE NUMBER ONE, CITY OF BAYTOWN, TEXAS ( "Zone "), a tax increment reinvestment zone created by the City of Baytown, Texas pursuant to Chapter 311 of the Texas Tax Code, as amended; BAYTOWN REDEVELOPMENT AUTHORITY ( "Authorihj "), a local government corporation created and organized under the provisions of the Texas Transportation Corporation Act, Chapter 431, Transportation Code; the CITY OF BAYTOWN, TEXAS (the "Cih./ "), a Texas home -rule city; HARRIS COUNTY, TEXAS (the "Counhj "), a political subdivision of the State of Texas; and CHEVRON PHILLIPS CHEMICAL COMPANY LP ( "Chevron Phillips "), a Delaware limited partnership. RECITALS WHEREAS, the City, the County, Chevron Phillips, the Authority and the Zone entered into that certain Development Agreement, dated March 28, 2013 (the "Development Agreement'), providing for the financing, design, and construction of improvements to Sjolander Road, within the Zone; and WHEREAS, pursuant to the Development Agreement, Chevron Phillips advanced $6,900,000 to the County to finance such improvements, and, after receipt of the construction bids for the project, it was determined that all of the advanced funds will not be necessary to finance the project; and WHEREAS, the parties wish to amend the Development Agreement to provide for the return of unneeded funds to Chevron Phillips prior to the completion of the project; NOW THEREFORE, AMENDMENT For and in consideration of the mutual promises, covenants, obligations, and benefits of this Amendment, the Zone, the Authority, the County, the City, and Chevron Phillips contract and agree as follows: 1. Definitions. Capitalized terms used in this Amendment shall have the meanings assigned to them in the Development Agreement, unless otherwise defined, or the context clearly requires otherwise. 2. Amendment to the Development Agreement. Section 6.1(B) of the Development Agreement is amended to read in its entirety as follows: 441046 "(B) If at any time the County believes that the Project Costs will be greater than the estimate, it shall promptly notify Chevron Phillips and provide a summary of costs expended and expected future costs. Within 30 days of receipt of such notice, Chevron Phillips shall provide the County with an additional deposit of funds so that its advances are sufficient to pay the Project Costs. After receipt of bids, or otherwise during the process of completion of the Public Improvements, if the County Engineer, or the County Engineers designee, determines that the Chevron Phillips Advance under this Section clearly exceeds the amount reasonably required to pay the actual Project Costs, including contingency amounts, the County shall as soon as practicable after the determination is made restore and pay over the amount so determined to be excess to Chevron Phillips; provided that, this sentence will not restrict the ability of the County to require additional funds in accordance with the preceding sentence, if necessary, or obviate the need for a final accounting, pursuant to the terms of this Agreement." 3. Except as specifically amended hereby, the Development Agreement remains in full force and effect in accordance with its terms. [The remainder of this page is intentionally left blank] 441046 2 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed as of �10 VQhI hPr ci0 2013. ONE, CITY OF BAYTOWN BAYTOWN EDEVELO ^ENT AUTHORITY By: Name: Title: CHEVRON PHILLIPS CHEMICAL COMPANY LP Name: Chaney Moore Title: Real Estate and Property Tax Manager 441046 HARRIS COUNTY David B. Turkel, Director Harris County Community Services Department APPROVED AS TO FORM: VINCE RYAN Hty Attorne} By: [tom Douglas P. Ray, Assistant County Attorney 441046 CITY OF BAYTOWN By: Z2,.eo4��a6' of ert D. Leiper, City Manager ATT T: Leticia Brysch, City Cle Approved as to form: A cio Ramirez, Sr., City Att riey 741W THE STATE OF TEXAS COUNTY OF HARRIS Presented to Commissioners Court NOV 12 2013 APPROVE Recorded Vol_ Page The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris County Administration Building in the City of Houston, Texas, on the _ day of NOV 12 9014 , 2013, with the following members present, to -wit: Ed Emmett County Judge El Franco Lee Commissioner, Precinct 1 Jack Morman Commissioner, Precinct 2 Steve Radack Commissioner, Precinct 3 R. Jack Cagle Commissioner, Precinct 4 and the following members absent, to -wit: &ION Q constituting a quorum, when among other business, the following was transacted. ORDER AUTHORIZING AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN HARRIS COUNTY, CITY OF BAYTOWN, CITY OF BAYTOWN TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, BAYTOWN REDEVELOPMENT AUTHORITY, AND CHEVRON PHILLIPS CHEMICAL COMPANY LP Commissioner introduced an order and made a motion that the same be adopted. Commissioner seconded the motion for adoption of the order. The motion, carrying with it the akfoplion of the order prevailed by the following vote: Yes No Abstain Judge Emmett ❑ ❑ Comm. Lee ❑ ❑ Comm. Morman ❑ ❑ Comm. Radack ❑ ❑ Comm. Cagle ❑ ❑ The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: RECITALS WHEREAS, on August 9, 2001, Baytown City Council created Baytown Tax Increment Reinvestment Zone Number One ( "the TIRZ ") by adoption of Ordinance No. 9197, for the purposes of development and redevelopment in the Baytown area. WHEREAS, on November 20, 2001, Baytown City Council approved an enlargement of the TIRZ by adoption of Ordinance No. 9275. The Board of Directors of Baytown Tax Increment Reinvestment Zone Number One ( "the Board ") adopted a Plan, approved by Baytown City Council on December 13, 2001, but such Plan was later determined to be obsolete; and WHEREAS, Harris County ( "the County "), Baytown City Council, and the Board entered into the Interlocal Agreement approved by Commissioners Court on December 18, 2007 ( "the Original Agreement "), providing for participation in the TIRZ by the County; and WHEREAS, Commissioners Court amended the Original Agreement by approving the First Amendment on August 23, 2011 (the Original Amendment and First Amendment hereafter collectively referred to as "the Interlocal Agreement' ' herein); and WHEREAS, the Board and the Baytown City Council have taken the requisite steps to enlarge the TIRZ and amend the Plan to provide for the Sjolander Road Project, and the inclusion of a portion of certain proposed Chevron Phillips Chemical Company LP ( "Chevron Phillips ") facilities located on the Expansion Tract, and have entered into a Second Amendment to the Interlocal Agreement ( "the Second Amendment ") on March 28, 2013, pursuant to which a Development Agreement has been entered into to carry out the Sjolander Road Proj ect; and WHEREAS, Harris County ( "the County "); Reinvestment Zone Number One, City of Baytown, Texas ( "the TIRZ "); Baytown Redevelopment Authority ( "the Authority "); City of Baytown, Texas ( "the City "); and Chevron Phillips Chemical Company LP ( "Chevron Phillips ") have determined that it is in the best interest of all relevant parties to this transaction to execute the Amendment to Development Agreement. NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS, THAT: Section 1: The recitals set forth in this Order are true and correct. Section 2: The Director of Harris County Community Services Department is hereby authorized to execute the subject Amendment to Development Agreement between Harris County, City of Baytown, Baytown Tax Increment Reinvestment Zone Number One, Baytown Redevelopment Authority, and Chevron Phillips Chemical Company LP. The Amendment to Development Agreement is attached hereto as Exhibit A and made a part hereof for all purposes. Section 3: All officers and employees of Harris County are hereby authorized to execute whatever documents and take whatever actions are necessary and appropriate to perform the Amendment to Development Agreement.