HomeMy WebLinkAboutPR 18429: INTERLOCAL AGREEMENT WITH JEFFERSON RELATING TO THE CITY OF POR ARTHUR'S DOWNTOWN TAX INCREMENT P. R. NO. 18429
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RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO
AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF PORT ARTHUR,
TEXAS, AND JEFFERSON COUNTY, TEXAS, RELATING TO THE CITY
OF PORT ARTHUR' S DOWNTOWN TAX INCREMENT REINVESTMENT ZONE
NO. 1
WHEREAS, per Resolution No. 12-264 , the City Council
authorized the City of Port Arthur Section 4A Economic Development
Corporation to hire the Parker Law Firm to begin the tax increment
reinvestment zone process pursuant to Chapter 311 of the Tax Code;
and
WHEREAS, per Ordinance No. 12-75, the City Council, acting
under the provisions of Chapter 311, Texas Tax Code, including
Section 311 . 005 (a) , designated as a reinvestment zone, and created
and designated a reinvestment zone over the area described in
Exhibit "A" to promote the redevelopment of the area and named for
identification as "Reinvestment Zone No. 1, which also may be
referred to as the Downtown Tax Increment Reinvestment Zone; and
WHEREAS, per Resolution No. 12-615, the City Council appointed
Floyd T. Johnson to the Downtown Reinvestment Board, which expired
on December 18 , 2014 ; and
WHEREAS, per Ordinance No. 13-10, the City Council adopted the
final Project and Reinvestment Zone Financing Plan which was
previously adopted by the Downtown Reinvestment Board No. 1 on
February 7, 2013 ; and
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WHEREAS, on November 17, 2014 , at a Special Meeting, the
Commissioners Court of Jefferson County, Texas, approved and
authorized the County Judge to execute an Interlocal Agreement
between Jefferson County, Texas, and the City of Port Arthur,
Texas, relating to Downtown Tax Increment Reinvestment Zone No. 1,
attached hereto as Exhibit "B" .
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 Manager is herein authorized to
enter into an Interlocal Agreement between the City of Port Arthur,
Texas, and Jefferson County, Texas, relating to the City of Port
Arthur' s Downtown Tax Increment Reinvestment Zone No . 1, in
substantially the same form as attached hereto as Exhibit "B" .
Section 3 . That a copy of the caption of this Resolution
shall be spread upon the Minutes of the City Council .
READ, ADOPTED, AND APPROVED, this day of
2015 AD, at a Regular Meeting of the City Council of the City of
Port Arthur, Texas by the following vote : AYES :
Mayor:
Councilmembers : ;
NOES: •
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Mayor
ATTEST :
City Secretary
APPROVED AS TO FORM:
2/4;11 ---
ity Attorn-y
APPROVED FOR ADMINISTRATION:
City Manager
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EXHIBIT "A"
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EXHIBIT "B"
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INTERLOCAL AGREEMENT
BETWEEN THE
CITY OF PORT ARTHUR, TEXAS
AND
JEFFERSON COUNTY, TEXAS
RELATING TO
CITY OF PORT ARTHUR, TEXAS
DOWNTOWN TAX INCREMENT REINVESTMENT ZONE NO. 1
1
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
INTERLOCAL AGREEMENT
BETWEEN JEFFERSON COUNTY AND THE CITY OF PORT ARTHUR RELATED
TO PORT ARTHUR,TEXAS TAX INCREMENT REINVESTMENT ZONE NO. 1
THIS INTERLOCAL AGREEMENT ("Agreement") is made by and between the
CITY OF PORT ARTHUR, TEXAS (the"City"), a home rule municipality of the State of
Texas, acting by and through its governing body, the City Council, and JEFFERSON
COUNTY, TEXAS (the "County"), acting by and through its governing body, the
Commissioners Court. This Agreement is made pursuant to Chapter 791 of the Texas
Government Code and Chapter 311 of the Texas Tax Code for the participation of the City and
the County in REINVESTMENT ZONE NUMBER ONE, CITY OF PORT ARTHUR,
TEXAS (the "Reinvestment Zone"), a reinvestment zone to be created by the City pursuant to
Chapter 311 of the Texas Tax Code.
RECITALS:
The City, on November 9, 2012, designated the Reinvestment Zone in the area more
particularly described in the attached Exhibit A and on the map attached hereto as Exhibit B.
The Reinvestment Zone consists of approximately 372 acres of land.
The general purpose of the Reinvestment Zone is to promote the redevelopment of the
property in the Reinvestment Zone and in surrounding areas in the City and County pursuant to
the tax increment finance provisions of Section 311.005(a)(1), (2) and(4) of the Texas Tax Code.
The specific purpose of the Reinvestment Zone is to provide a financing mechanism to pay for a
portion of the costs associated with certain water, wastewater, roads/drainage and reclaimed
water improvements within the Reinvestment Zone as set forth in Exhibit C (the Project"). The
purposes of the Project are to improve economic development and to enhance the quality of
living conditions within the City of Port Arthur, Texas.
The financial plan for the Project is for the Developer to provide construction for the
Project and for the City, with assistance from the County as provided in this Agreement, to
reimburse the Developer for a portion of the Project Costs from tax increment revenues derived
from increases in property values resulting from new development within the Reinvestment
Zone.
The City and County wish to provide in this Agreement for the County to make payments
to the City of a portion of the County's tax increment revenues derived from increases in
2
property values resulting from new development in the Reinvestment Zone, which payments are
to be used by the City to reimburse the Developer for a portion of the Project Costs under the
terms and conditions described in this Agreement.
AGREEMENT:
In consideration of the mutual covenants and agreements contained herein, as well as
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged,the City and the County agree as follows:
SECTION 1. Definitions.
In this Agreement:
A. Captured appraised value for a year means the total appraised value of all real
property taxable by the City of County and located in the Reinvestment Zone for that year, less
the respective tax increment base of the City or County.
B. Developer will be the apartment owners, commercial business, industrial
development organizations, economic development organizations and related organizations who
commit to spending a minimum of FIFTY THOUSAND ($50,000.00) DOLLARS for economic
development improvements within the Project Zone.
C. Project means, initially,the Project as set forth in Exhibit C. The public
improvements constituting the Project may be revised or supplemented by amendments to the
Project Plan that are adopted by the board of Directors of the Reinvestment Zone and approved
by the City Council of the City from time to time.
D. Project Plan means the Project Plan and Reinvestment Zone financing plan for the
Reinvestment Zone adopted by the Board of Directors of the Reinvestment Zone and approved
by the City Council of the City, and amendments to these plans that are adopted by the Board of
Directors of the Reinvestment Zone and approved by the City Council of the City from time to
time. By entering this agreement the County is not obligating itself to directly fund or construct
or repair any infrastructure within the zone and all such expenses will be borne by the Board
D. Tax increment for a year means the amount of property taxes levied and collected by
the City or County for that year on the captured appraised value of real property taxable by the
City or County and located in the Reinvestment Zone.
E. Tax increment base means the total appraised value of all real property taxable by
the City or County and located in the Reinvestment Zone for the year 2012 according to the
certified Jefferson County Tax Roll.
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F. Tax Increment Fund means the tax increment fund created by the City for the
Reinvestment Zone.
G. Terms other than those defined above shall have 1)their meanings as given in
Chapter 311, Texas Tax Code, or 2) if not so defined, their usual and ordinary meanings.
H. References to state statutes shall include amendments to those statutes that are duly
enacted from time to time.
SECTION 2. Obligations of the County.
A. Payments to the City. The County agrees to make payments to the City during the
term of this Agreement, for deposit in the Tax Increment Fund, in the amount of 20% of the tax
increment attributed to the captured appraised value of the County in the Reinvestment Zone.
The County's obligation to make these payments will accrue only as taxes on the captured
appraised value are collected by the County. Payments shall be due on May 1 of each year
during the term of this Agreement. No interest or penalty will be charged to the County for any
payments made by the County based on collections that occur after this due date; however, the
County will pay to the City, for deposit in the Tax Increment Fund, 20% of any penalty or
interest received by the County on any delinquent taxes on the captured appraised value of the
County. The County may offset against future payments to the Tax Increment Fund any portion
of payments to the City under this Agreement that the County subsequently refunds to taxpayers
pursuant to the provisions of the Texas Tax Code.
B. Limitations on Payments. The County is not obligated to make payments under
this Agreement 1) unless and until taxes on the captured appraised value are actually collection
by the County, or 2) from any source other than taxes actually collected on the County's captured
appraised value, or 3) from any County Taxes or revenues other than taxes actually collected on
the County's captured appraised value. Notwithstanding any provisions contained herein, this
Agreement is expressly contingent upon the availability of funds for each obligation herein for
the term of this Agreement and any extension thereto. In the event that either no funds or
insufficient funds are appropriated for the payments due under this Agreement for the period
covered by such budget or appropriation,the contract shall terminate without penalty to the
County.
C. Expansion of the Reinvestment Zone; Supplemental Projects. The County's
obligation to make payments under this Agreement is limited to the County's captured appraised
value on property in the Reinvestment Zone as described in this Agreement. The County is not
obligated to make payments based on the addition of property to the Reinvestment zone unless
the County specifically agrees to do so by amendment to this Agreement. The County's
obligation to make payments under this Agreement is also limited to use by the City for partial
reimbursement of the Project Costs, as described herein. The County is not obligated to make
payments towards the costs of any other improvements unless the County specifically agrees to
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do so by amendment to this Agreement. Any member of the County Commissioners Court may
review and provide comments to the board of Directors of the Reinvestment Zone or the City
Council of the City on any proposed expansion of the Reinvestment Zone or amendment to the
Project Plan prior to its approval by the City Council.
D. County Appointment to Board of Directors of the Reinvestment Zone.
Pursuant to the provisions of Section 311.009(a), Texas Tax Code,the Commissioners Court of
the County shall have the unequivocal right during the term of this Agreement to appoint and
remove, at its sole discretion, a qualified person to serve as a voting member of the Board of
Directors of the Reinvestment Zone. Failure of the Commissioners Court to appoint a person to
the Board of Directors of the Reinvestment Zone shall not be deemed a waiver of the County's
right to make an appointment at a later date. The Commissioners Court will make best faith
efforts to appoint a qualified person to serve on the Board of Directors, and to fill vacancies in
this position as needed.
SECTION 3. Obligations of the City.
A. Initial Project Plan. The City agrees that the Project, as described herein will
comprise the Project in the initial Project Plan to be adopted by the board of Directors of the
Reinvestment Zone and approved by the City Council of the City. The City agrees that the
Reinvestment Zone financing plan in the initial Project Plan to be adopted by the Board of
Directors of the Reinvestment zone and approved by the City Council of the City shall provide
for use of the County's payments under this Agreement solely to reimburse the Developer for a
portion of the Project Costs.
B. Use of County Payments. The City agrees to use payments made by the County
under this Agreement solely to reimburse the Developer for Project Costs.
C. Notice to County of Amendments to Project Plan. The City agrees to provide the
County with written notice of any proposed amendments to the Project Plan at least 14 days prior
to their submission to the City Council for approval. The City agrees to work with the
Reinvestment Zone Board of Directors to implement the Project Plan.
D. Disposition of Tax Increments. Upon termination of the Reinvestment Zone, and
after all obligations of the Reinvestment Zone have been paid,the City agrees to pay to the
county, within 60 days of the termination, all monies remaining in the Tax Increment Fund that
represent the County's pro rata amount of participation authorized under this Agreement.
E. Annual Reports. The City agrees to provide to the County an annual report
regarding the Reinvestment Zone as required under Texas Tax Code Section 311.016.
F. Audits—Redevelopment Authority. In the event the City creates a redevelopment
authority in connection with the Reinvestment Zone,the City shall provide to the County a copy
of each of the audits required by the agreement between the City, the Reinvestment Zone and any
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such redevelopment authority within 30 days of receipt of each audit.
SECTION 4. Term and Termination.
A. Agreement Term. This Agreement will take effect only upon designation of the
Reinvestment Zone by ordinance of the City and will be in effect for the earlier of 1) thirty(30)
years from the date of the designation of the Reinvestment Zone or 2) the date the Developer is
reimbursed the Project Costs, unless earlier terminated by the parties hereto. Nothing in this
Agreement limits the authority of the County or City to extend the term of this Agreement. Upon
termination of this Agreement, the obligation of the County to make payments to the City shall
end; however, any refund obligations of the City shall survive the termination.
B. Early Termination of Reinvestment Zone. The County or City may terminate the
Reinvestment Zone pursuant to the provisions of Section 311.017 of the Texas Tax Code or at
any time there is a breach by the other party. The party desiring to terminate this agreement may
do so upon giving 30 days' written notice to the other party.
C. Interpretation. The parties acknowledge and confirm that this Agreement has been
entered into pursuant to the authority granted under the Interlocal Cooperation Act, Chapter 791
of the Texas Government Code. All terms and provisions hereof are to be construed and
interpreted consistently with that Act.
D. Invalid Provisions. Any clause, sentence, paragraph or article of this Agreement
which is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable
in any respect shall not be deemed to impair, invalidate, or nullify the remainder of this
Agreement if the Agreement can be given effect without the invalid portion.
E. Applicable Laws. This Agreement shall be construed in accordance with the laws
of the State of Texas. All obligations hereunder are performable in Jefferson County, Texas, and
venue for any action arising hereunder shall be in Jefferson County, Texas.
F. Authorization; Funding. Each party hereto acknowledges and represents that this
Agreement has been duly authorized by its respective governing body, and that funding from
each party for the performance of this Agreement will be provided from current revenues
available to the parties.
G. Notices. Notices required by this Agreement will be provided by the parties to one
another by certified mail, return receipt requested, or by confirmed facsimile transmission, to the
following address/fax numbers:
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CITY: JEFFERSON COUNTY:
City Manager County Judge
P.O. Box 4025
Beaumont, TX 77704
FAX: 409-839-2311
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H. Non-Waiver. Failure of any party hereto to insist on the strict performance of any
of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or
failure of performance shall not be considered a waiver of the right to insist on, and to enforce by
any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any
right or remedy occurring as a result of any future default or failure of performance.
I. Successors. This Agreement shall bind and benefit the parties and their legal
successors. This Agreement does not create any personal liability on the part of any officer or
agent of the City or the Reinvestment Zone or any officer, agent or employee of the County.
J. No Waiver of Immunity. No party hereto waives or relinquishes any immunity or
defense on behalf of itself, its officers, employees, and agents as a result of its execution of this
Agreement and performance of the covenants contained herein.
K. Third Party Beneficiary. The parties agree that Developer and its successors and
assigns shall have the right to enforce as a third party beneficiary Section 2.A. against the County
for any breach of its contractual obligations hereunder, as well as Section 5.B. and this Section
5X.
IN WITNESS HEREOF,the City and the County have made and executed this
Agreement in multiple copies, each of which is an original.
CITY OF PORT ARTHUR
City Manager
Date
ATTEST/SEAL:
City Secretary
Date
APPROVED AS TO FORM AND LEGALITY:
City Attorney
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JEFFERSON COUNTY
Jefferson County Judge
Date
ATTEST:
County Clerk
Date
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