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HomeMy WebLinkAboutP.R. 15034: AIR PRODUCTSinteroffice MEMORANDUM To: Mayor, City Council, and City Manager From: Mark Sokolow, City Attorney / `~` Date: December 12, 2008 Subject: P. R. No. 15034; Special Council Meeting December 15, 2008 Regular Council Meeting December 16, 2008 Attached is P. R. No. 15034 authorizing the City Manager to execute another Industrial District Agreement with Air Products. Air Products built one hydrogen plant in the Valero facility that is covered by an Industrial Distr=ict Agreement with Air Products as approved by Resolution No. 05-:?02 for the years 2006 to 2010. There is another Air Products hydrogen plant in the Valero/Clark facility, of which Valero is responsible for the payment of the "In Lieu of Taxes". In the latest draft of the Valero Agreement, they indicated that thesy would not be responsible for the Air Products portion of the Agreements. I have had additional discussions with Mr. Eaves, the attorney for Valero, and he has indicated that Valero will be willing to change their proposed agreement to include the Air Products payments for' the hydrogen plant as referenced in Resolution No. 99-174. Therefore, a new Industrial District Agreement with Air Products may not be necessary. MTS:ts Attachment cc: Director of Finance Mike Eaves Carl Parker z.pr15034 memo P. R. No. 15034 12/12/08 is RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH AIR PRODUCTS WHEREAS, the City Council of the City of Port Arthur deems it in the best interests of the citizens of Port Arthur to enter into an "In Lieu of Tax" Agreement with Air Products. NOW THEREFORE, BE IT RESOLVEII BY THE CITY COUNCIL OF TF[E CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby authorizes the City Manager to execute an "In Lieu of Tax" Agreement with Air Products, in substantially the same form as attached hereto as Exhibit "A". Section 3. That Air Products shall sign and return the Agreement by December 23, 2008, or this Resolution is null and void and the property described hereir.~ is annexed, effective December 31, 2008 at 11:59 p.m., as further delineated in P. O. No. 5925. Section 4. That a copy o:f the caption of this Resc>lution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of , A.D. , 2008, at a Meeting of the C'.ity Council of the City of Port Arthur, by the following vote: AYES: z.pr15034 Mayor Councilmembers NOES: _: MAYOR ATTEST: TERRI HANKS, ACTING CITY SECRETARY APPROVED AS TO FORM: (SEE MEMO) CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER z.pr15034 EXHIBIT "A" will be presented at or before the Council Meeting