HomeMy WebLinkAboutP.R. 15005: FLINT HILL RESOURCESinteroffice
MEMORANDUM
To: Mayor, City Council, and City Manager
From: Mark Sokolow, City Attoi°ney ~'Z,,,~~ ~?~r~
Date: December 12, 2008
Subject: P. R. No. 15005;
Special Council Meeting December 15, 2008
Regular Council Meeting December 16, 2008
Attached is P. R. No. 15005 authorizing the City Manager to
execute an Industrial District Agreement with Flint Hill Resources.
The material changes are bolded. The "In Lieu of Tax" Agreement is
in the process of being drafted, with the terms as described in
Exhibit "A" and is still being reviewed by the parties.
MTS:ts
Attachment
cc: Director of Finance
Clark Colvin, Flint Hill Resources
Joel Barnes, Flint Hill Resources
z.pr15005 memo
P. R. No. 15005
12/12/08 is
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH
FLINT HILL RESOURCES
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 witYi Flint Hill Resources.
NOW THEREFORE, BE IT RESOLVEI) BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. That the fact: and opinions in the preamble
are true and correct.
Section 2. That the City Council hereby authorizes t:he City
Manager to execute an "In Lieu oi= Tax" Agreement with Flint Hill
Resources, in substantially the ;same form as attached hereto as
Exhibit "A"
Section 3. That Flint Hill Resources shall sign and'. return
the Agreement by December 23, 200F3, or this Resolution is null and
void and the property described herein is annexed, effective
December 31, 2008 at 11:59 p.m., as further delineated in P. O. No.
5925.
Section 4. That a copy of the caption of this Resolution 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 City Council of the City of Port
z.pr15005
Arthur, by the following vote: AYE~,S:
Mayor
Councilmembers
NOES:
MAYOR
ATTEST:
TERRI HANKS, ACTING CITY SECRETARY'
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
z.pr15005
EXHIBIT "A"
The Industrial
Agreement with
Resources will
District
Flint Hill
have the
following terms:
• Five ( 5 ) year agrE~ement with similar
terms as in the Chevron Phillips
Industrial District Agreement (P.R.
No. 15000)
• Payment to the City of an upfront
payment of $2,300,.000 on January 1,
2009
• Payment on an annuua 1 ba s i s o f 7 5 0 o f
the amount of taxes that the Company
would have paid to the City with
respect to the land, improvements,
equipment and inventory, and all
other property as if they were
located within thE~ City
• Credit towards industrial district
payments of $460,000 per year for
five years
• Minimum f loor of $ 1, 0 0 0, 0 0 0 in
industrial district payments per
year as to the 75 o values, subject
to the annual credit of $460,000 per
year
• Recognition that the plant has been
idled and is in need of a special
consideration or incentives to
continue operations
• Recognition that Flint Hill
Resources does not have a record of
air emissions, fire prevention, or
safety violations
• Recognition that the City has taken
into consideration the previous
excess taxes paid, as described in
the industrial district agreement as
approved by Resolution No. 03-296
and that the City is therefore, in
due regard thereof, allowing Flint
Hill Resources to make payments at
the 75o rate on an annual basis
instead of the annual payments of
$2,050,000, which was the rate as
denoted in Resolution No. 03-296