HomeMy WebLinkAboutPR 15005 INDUSTRIAL DISTRICT AGMT. W/FLINT HILL~ J u N1
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To: Mayor; City Council, and City;Manager ~,
From : Mark Sokolow, City Attorney ~`7,,~,~
Date: December 12, 2008
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Subject: P. R. No. 15~05;
Special C~uncil Meeting December 15, 2008 .
Regular Council Meeting Decernber 16, 2008
.4
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 ~erms as described in
Exhibit "A" and is still being reviewed by the parties.
J MTS:ts
- Attachment ~
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cc: Directar of Finance
Clark Colvin, Flint Hill Resources ~
Joel Barnes, Flint Hill Resources ~
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P. R. No. 15005
12/12/08 ts
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RESOLUTION N0.
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 ~o enter into =._.~ w~ -~
,.
~ an "In Lieu of Tax" Agree~nent with Flint Hill Resources .~ ~
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 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 Flir~t Hill
Resources, in substanti~lly the same form as attached hereto as
Exhibit "A" .
Section 3. That Flint Hill Resources shall sign and return
the Agreement by December 23, 2008, 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. 0. 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 ~~he City of Port
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Arthur, by the following vote: AYES:
Mayor ,
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Councilmembers ` ,
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,;
NOES: .
MAYOR
~ATTEST:
TERRI HANKS, ACTING CITY SECRETARY
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APPROVED~~AS TO FORM: ~
CIT.Y ATTORNEY
APPROVED FOR ADMINISTR.ATION:
,
CITY MANAGER
2.pr15005
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.The Industrial
wi h
A reement t
g
~ ~Resources will
Distric~
Flint Hill
have the
followin terms:
g
• Five ~5~ ear a reement with similar
~ g
terms as in the Chevron Philli s~
p
Industrial District A reement (P.R.
g
No. 15000)
• Pa ment to the Cit of an u front
Y Y p,
a me~.t of $2-, 3 0 0, 0 0 0 on January 1,
pY
,
2009 ~ . ~
~ Pa ment on an annua l ba s i s o f 7 5 a o f
Y
the amount of taxes that the Company
.
~
would have aid to the City with
p
t to the land im rovements
respec , p ,
i ment and inventor , and all
equ p y,
other ro ert~ as i f they were
p p ~
located within the Cit ~
Y
• Credit towards industrial district
a ents of $460,000 er year for
p Ym p
-`
five ~rears ' ~
• Minimum floor of $1,000,000 in
industrial district a ments er
pY p
ear as to.the 75 o values, sub'ect
Y ~
~
to the annual credit af $460, 000 er
p
year
~ Reco ni~i~n that the lant has been
g p
idled and .lS 11'1 need of a s ecial
p
consideration or i~ncentives to
continue o erations ~
p
• Reco nition that Flint Hill ~
g
Resources does not have a record of
air emissions fire revention r ~
, p ,o
safet violations
Y
• Reco nition that the Cit has taken
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' into conside~ation the revious ~
. p
, excess~taxes aid as described in
p ~
trie indus~rial district a reement as
g ~
a roved b Resolution No. 03-296
pp Y
and that the Cit is therefore . in
Y ,
due re ard thereof allowin Flint
g - g
Hill Resources to make a ments at
~ ~~
the 75o rate on an annual basis
instead of the annual a ments of
pY ,
$2,050,000, which was the rate as
denoted in Resolution No. 03-296