CC Resolution No. 2383 RESOLUTION NO. 2383
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, GRANTING A VARIANCE TO THE TAX ABATEMENT
GUIDELINES TO SBE CHEMICAL PARTNERS I LLC, TO ALLOW THE
ABATEMENT TO COMMENCE POST-CONSTRUCTION CONTINGENT
UPON COUNCIL'S CREATION OF THE SBE CHEMICAL PARTNERS I
REINVESTMENT ZONE AND COUNCIL'S APPROVAL OF THE
CORRESPONDING TAX ABATEMENT AGREEMENT AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
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WHEREAS, the City Council of the City of Baytown adopted its
Tax Abatement Guidelines on March 12, 2015; and
WHEREAS, such guidelines provide that variances may be granted to certain subsections
therein, including Subsection 2(g),which states, in part, as follows:
Abatement shall be granted effective with the January 1 valuation date
immediately following the date of execution of the agreement. One hundred
percent (100%) of the value of new eligible properties shall be abated for the first
two (2) years, followed by eighty percent (800/0) abatement for the third year,
sixty percent (60%) abatement for the fourth year and fifty percent (50%) for the
fifth year. In no case shall the period of abatement exceed five(5) years.
WHEREAS, the City of Baytown has received a request from SBE Chemical Partners I
LLC, to vary the above-referenced provision to allow the tax abatement to commence as of
January 1, 2018, which is post-construction of its new facility, a 100,000 tonnes per year olefins
producing facility; and
WHEREAS, the City Council finds that by granting the variance, the City of Baytown
will be on par with the economic development incentives offered by other governmental entities
for competing sites located in Louisiana and Alabama; and
WHEREAS, the City Council of the City of Baytown desires to grant such variance
contingent upon the creation of the SBE Chemical Partners I Reinvestment Zone and Council's
approval of the corresponding tax abatement agreement;NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS:
Section 1: That the City Council hereby grants a variance to the Tax Abatement
Guidelines to SBE Chemical Partners I LLC, to allow the abatement specified in such guidelines
to commence on January 1, 2018, contingent upon the City Council's creation of the SBE
Chemical Partners I Reinvestment Zone and the City Council's approval of the corresponding tax
abatement agreement.
Section 2: This resolution shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ and PASSED, by the affirmativ e of the City Council of the
City of Baytown this the 22nd day of October,2015.
S PH H. DONCARLOS,M yor
ATTEST:
LETICIA BRYSCH,Wy Clerk
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APPROVED AS TO FORM:
ACIO RAMIREZ, SR.,Cit A orney
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