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HomeMy WebLinkAboutPR 19288: EXECUTE A TAX ABATEMENT AGREEMENT WITH SEAHAWK LANDING, LLC P. R. No. 19288 01/22/15 vt RESOLUTION NO. A RESOLUTION AS IT PERTAINS TO AUTHORIZING THE CITY MANAGER OF THE CITY OF PORT ARTHUR TO EXECUTE A TAX ABATEMENT AGREEMENT WITH SEAHAWK LANDING, LLC WHEREAS, the City Council of the City of Port Arthur deems it in the best interest of the citizens of Port Arthur to enter into a tax abatement agreement with Seahawk Landing, LLC for the development of a dormitory on the campus of Lamar State College- Port Arthur. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS : 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 on behalf of the City of Port Arthur a tax abatement agreement with Seahawk Landing, LLC, in substantially the same form as attached hereto as Exhibit "A". Section 3. 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. , 2016, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: s.19288 Mayor: Councilmembers : , NOES : Presiding Officer ATTEST: SHERRI BELLARD CITY SECRETARY AP'RO '4D AS TO 'RM: ,gars, 'ALE;�A ' KENO CITY ATTfI' " APPROVE' FOR ADMINISTRATION: BRIAN MCDOUGAL CITY MANAGER s.19288 EXHIBIT "A" HAS BEEN PRESENTED TO CITY COUNCIL UNDER SEPARATE COVER s.19288 EXHIBIT "A" TO P.R. NO. 19288 TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF PORT ARTHUR,TEXAS AND SEAHAWK LANDING,LLC THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON § THIS TAX ABATEMENT AGREEMENT ("Agreement") is made and entered into by and between the CITY OF PORT ARTHUR, TEXAS, a home rule municipality located in Jefferson County, Texas ("City"), and SEAHAWK LANDING, LLC, the lessee of the tract of land with improvements to be constructed thereon, within Port Arthur Tax Abatement Reinvestment Zone #1 for the Lamar State College Area (per Ordinance 15-56) (hereinafter defined). The City Council finds that: a. The City has adopted Guidelines and Criteria for granting tax abatements set forth in its Uniform Tax Abatement Policy; b. The City has created the Port Arthur Tax Abatement Reinvestment Zone#1 for the Lamar State College Area(per Ordinance 15-56), in which the property subject to tax abatement will be located; c. The City has approved this Agreement by an affirmative vote of a majority of its members at a regularly scheduled council meeting WHEREAS, Seahawk Landing, LLC is the lessee of one (1) tract of land located in the Port Arthur Tax Abatement Reinvestment Zone #1 for the Lamar State College Area (per Ordinance 15-56) (the "Property"), as defined in Section 2 of this Agreement and attached hereto as Exhibit"A"; and WHEREAS, Seahawk Landing, LLC desires to construct a new dormitory facility (the "Improvements" as defined in Section 2 of this Agreement) on the Property, within the corporate limits of the City of Port Arthur; and WHEREAS, the performance of the terms, conditions, and programs provided for herein will contribute to the economic development of the City in furtherance of the policies and objectives of the City of Port Arthur; and WHEREAS, the City and Seahawk Landing, LLC wish to enter into a tax abatement agreement, which will provide for a ten (10) year tax abatement period that will commence on January 1, 2017. NOW THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, Seahawk Landing, LLC and the City hereby agree as follows: 1 1. Authorization. This Agreement is authorized by the Property Redevelopment and Tax Abatement Act, Chapter 312, TEXAS TAX CODE, as amended, and the Uniform Tax Abatement Policy adopted by the City Council of the City of Port Arthur, Texas, on July 7, 2015 pursuant to Resolution No.15-248. The City Council has determined that the terms of the Agreement and the property subject to this Agreement meet the provisions of the Tax Abatement Policy adopted by the City. 2. Defined Terms. As used in this Agreement, the following terms shall have the meanings set forth below: "Seahawk Landing" shall mean Seahawk Landing, LLC, the entity that owns or leases taxable real property on the date taxes are abated under this Agreement or any other person or entity to which this Agreement is assigned, in accordance with this Agreement. "Certified Appraised Value" shall mean the appraised value of the Property and existing improvements as certified by the Jefferson County Appraisal District. "City" shall mean the City of Port Arthur, Texas. "City Council" shall mean the governing body of the City. "City Manager" shall mean the City's city manager or any person designated or authorized to act for the city manager. "District" shall mean the Jefferson County Appraisal District. "Employee" shall mean a person who: (1) Is a direct employee of the Owner employed on-site at the Improvements and paid directly by the Owner; and (2) Regularly works at least 40 hours a week at the site of the Improvements, excluding time taken for holidays, vacations, sick leave, or other regular leave. "Improvements" shall mean the buildings and structures (or portions thereof) and other improvements, which are erected or expanded by Seahawk Landing on the Property as contemplated by Section 6 herein, and generally identified and described in Exhibit "A"attached hereto and incorporated herein for all purposes. "Land" shall mean the real property as described in Ordinance No.15-56, which created the Downtown/Lamar State Area Reinvestment Zone. "Targeted Business or Industry" shall mean a type of business or industry as determined by the City's latest Tax Abatement Guidelines Resolution. "Property" shall mean the 2.204 acres of land (attached hereto as Exhibit"A" and incorporated herein for all purposes, and all Improvements and Tangible Personal Property currently located thereon, which tract of land is located within the Port Arthur 2 Tax Abatement Reinvestment Zone #1 for the Lamar State College Area (per Ordinance 15-56) of the City. "Downtown/Lamar State Area Reinvestment Zone" shall mean that certain area qualifying for tax abatement pursuant to the Tax Abatement Policy adopted by the City of Port Arthur, Texas, and the City of Port Arthur Ordinance No. 15-56, a copy of which is attached hereto Exhibit"C" and incorporated herein for all purposes. "Tangible Personal Property" shall mean tangible personal property classified as such under state law, but excluding tangible personal property that was located on the Property at any time prior to the date of execution of this Agreement, and also excluding tangible personal property taxable by the City while owned by Seahawk Landing any time prior to the date of execution of this Agreement, and excluding inventory and supplies. 3. Administration of Agreement. This Agreement shall be administered by the City Manager or designee of the City. 4. Term. This Agreement shall be effective as of the date of execution hereof and shall continue through December 31, 2026, unless terminated earlier, as provided elsewhere herein; provided, however that the ten-year abatement period herein provided for shall not commence until January 1, 2017. For purposes of clarification, the abatement shall apply to taxes for the 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026 tax years. 5. Tax Abatement. Subject to limitations imposed by law and conditioned on the representations outlined in Section 6 herein below, there shall be granted and allowed hereunder to Seahawk Landing, LLC, a property tax abatement equal to the following percentages of the taxable value on the Improvements constructed or expanded hereunder on the Property and the Tangible Personal Property located on the Property subsequent to the date hereof: Tax Year Percentage Abatement 2017 (Year one) 100% 2018 (Year two) 100% 2019 (Year three) 100% 2020 (Year four) 100% 2021 (Year five) 100% 2022 (Year six) 100% 2023 (Year seven) 100% 2024 (Year eight) 100% 2025 (Year nine) 100% 2026 (Year ten) 100% 3 Provided, however, if the Certified Appraised Value of the Property is less than the Certified Appraised Value as of January 1, 2017 for any year during the term of this Agreement, such abatement shall not apply to the Improvements and Tangible Personal Property to the extent of the difference between the Certified Appraised Value of the Property for such year and the Certified Appraised Value of the Property as of January 1, 2017. The property tax abatement granted and allowed hereunder shall extend only to all real and personal property ad valorem taxes assessable on the Improvements, as constructed or expanded, and Tangible Personal Property; the Certified Appraised Value of the real property shall be fully taxable. Seahawk Landing, LLC represents and warrants that its new capital investment will equal or exceed $850,000 during construction and a projected $2,500,000 on the Improvements by the tenth year of the project. Representations. a) Seahawk Landing, LLC represents that (1) it has or will have an increased taxable interest with respect to Improvements and Tangible Personal Property placed on the Property; (2) the Improvements and Tangible Personal Property to be constructed and/or placed on the Property pursuant to the Agreement shall be set forth and described in Seahawk Landing, LLC's letter and application dated January 6, 2016, attached hereto as Exhibit "D", and incorporated herein for all purposes; (3) all Improvements placed on the Property will be completed in a workmanlike manner and will be completed in accordance with the City building codes in effect at the time such Improvements are erected; (4) the Improvements will be constructed on or before December 31, 2016, having a Certified Appraised Value of not less than $850,0000; (5) it will place on the Property, on or before December 31, 2016, Tangible Personal Property having a Certified Appraised Value of not less than $150,000 and will maintain on the Property said Tangible Personal Property or similar Tangible Personal Property of equal or greater value through the abatement period; (6) it shall maintain on the Property an increased employment level of not less than eight (8) full-time employees related to the operations on the Property beginning on or before December 31, 2016, and continuing during the remained of the term of this Agreement and approximately $100,000 of local payroll to be created annually; (7) it has, as of the effective date of this Agreement, the financial resources to implement the above respective representations; (8) it will comply with all applicable laws, rules, regulations, and provisions of the Code of Ordinances of the City; and all of the compliance requirements set forth in Exhibit"B". b) The City represents that (1) Port Arthur Tax Abatement Reinvestment Zone #1 for the Lamar State College Area (per Ordinance 15-56) has been created in accordance with Chapter 312 of the TEXAS TAX CODE and the Guidelines and Criteria for Granting Tax Abatement in Reinvestment and Enterprise Zones created in the City of Port Arthur, Texas, as both exist on the effective date of this Agreement; (2) the Property is within such Zone; and (3) the Property is located within the corporate limits of the City. c) Seahawk Landing, LLC, and the City represent that no member of the City Council or Planning Commission owns or leases the Property, Improvements, or Tangible Personal Property. 4 A. Discrimination. The Company agrees to make all hiring decisions in compliance with the Civil Rights Act of 1964. The Company shall not discriminate against any employee or applicant for hire on the basis of race,religion, color, sex, sexual orientation, national origin, age or disability. The Company agrees to aggressively seek to provide equal employment opportunity for all. B. Leased Property. In the case of leased property, the Company shall supply the City with a copy of the executed lease on any abated property which contains a provision assuring that the financial benefits of tax abatement resulting from this Agreement are fully passed on to the Company. C. Environmental Compliance. Within the City of Port Arthur and its Extraterritorial Jurisdiction the Company shall not violate any federal, state or local legislation or regulations prohibiting or regulating deleterious effects on the environment. D. Property Use. Company warrants that the uses of the property subject to this agreement shall be consistent with the general purpose of encouraging development and/or redevelopment of the zone with the Abatement Term, and the purposes set out in this Agreement. E. Company agrees to work with City as reasonably requested to effectuate all of the terms and conditions of this Agreement. F. Confidentiality. Company acknowledges and agrees that information provided to the City in connection with its applications for tax abatement that describes specific processes or business activities to be conducted or the equipment or other property to be located on the property for which tax abatement is sought is confidential and not subject to public disclosure until the tax abatement agreement is executed, at which time that information in the custody of the City is no longer confidential. G. Amendment. Amendment or modification of this agreement can only be made by written instrument subscribed to by both parties so long as those amendments or modifications reflect provisions which could have been included in this agreement under the Guidelines in effect on the date of approval of this Agreement. 6. Administrative. a) Access to and Inspection of Property by Municipal Employees. Seahawk Landing, LLC shall allow City's employees and/or designated representatives of the City access to the Improvements for the purpose of inspecting any Improvements erected to ensure that such Improvements are completed and maintained in accordance with the terms of this Agreement and to ensure that all terms and conditions of this Agreement are being met. All such inspections shall be made only after giving Seahawk Landing, LLC twenty-four (24) hours advance notice and shall be conducted in such manner as to not unreasonably interfere with the construction and/or operation of the Improvements. All such inspections shall be made with one (1) or more representatives of Seahawk Landing and in accordance with all applicable safety standards. 5 Upon completion of construction, the designated representative of the City shall evaluate annually each facility receiving abatement to ensure compliance with the Agreement, and a format report shall be made to the City Council. b) On January 31 of each year that this Agreement is in effect, Seahawk Landing, LLC shall certify to the City, and to the governing body of each taxing unit, that Seahawk Landing, LLC is in compliance with each applicable term of this Agreement. c) The Chief Appraiser of the Jefferson County Appraisal District shall determine annually (i) the Certified Appraised Value of the Property, Improvements, and Tangible Personal Property and (ii) the taxable value, pursuant to the terms of abatement under this Agreement, of the Property, Improvements, and Tangible Personal Property. The Chief Appraiser shall record both the abated taxable value and the Certified Appraised Value in the appraisal records. The Certified Appraised Value listed in the appraisal records shall be used to compute the amount of abated taxes that are required to be recaptured and paid in the event this Agreement is terminated in a manner that results in recapture. During the term of this Agreement, each year, Seahawk Landing, LLC shall furnish the Chief Appraiser with such information outlined in Chapter 22, TEXAS TAX CODE, as may be necessary for the administration of the abatement specified herein. 7. Default: a) The City may declare a default hereunder if Seahawk Landing, LLC (1) fails, refuses, or neglects to comply with any of the terms, conditions, or representations of this Agreement and fails to cure during the cure period; or (2) allows ad valorem taxes owed to the City to become delinquent and fails either to cure during the cure period or to timely and properly follow the legal procedures for their protest or contest. b) If the City declares a default on this Agreement, this Agreement shall terminate (after notice and opportunity to cure as provided for herein), and the City, in such event, shall be entitled to recapture any and all property taxes which have been abated as a result of this Agreement. The City shall notify Seahawk Landing, LLC of any default in writing in the manner prescribed herein. The notice shall specify the basis for the declaration of default, and Seahawk Landing shall have sixty (60) days from the date of such notice to cure any default; provided, however, where fulfillment of any obligation requires more than sixty (60) days, performance shall be commenced within sixty (60) days after the receipt of notice, and such performance shall be diligently continued until the default is cured. If the default cannot be cured, or if Seahawk Landing, LLC fails to cure within the period herein specified, Seahawk Landing, LLC shall be liable for and will pay to the City within sixty (60) days following the termination of this Agreement (1) the amount of all property taxes abated under this Agreement, (2) interest on the abated amount at the rate provided for in the Texas Tax Code for delinquent taxes, and (3) penalties on the amount abated in the year of default at the rate provided for in the Texas Tax Code for delinquent taxes. c) Notwithstanding any other provision contained herein to the contrary, in the event of termination of this Agreement due to the default of Seahawk Landing, Seahawk Landing's obligation to pay the City any property taxes that have been abated on Improvements 6 and Tangible Personal Property, plus applicable penalty and interest thereon as herein provided, shall not terminate until the abated taxes, plus penalty and interest, are paid. 8. Changes in Tax Laws. The tax abatement provided in this Agreement is conditioned upon and subject to any changes in the state tax laws during the term of this Agreement. 9. Compliance with State and Local Regulations. Nothing in this Agreement shall be construed to alter or affect the obligations of Seahawk Landing, LLC to comply with any ordinance, rule, or regulation of the City or laws of the State of Texas. 10. Assignment of Agreement. This Agreement may not be assigned by Seahawk Landing, LLC without the approval of the City by resolution of the City Council. The approval of any assignment shall be subject to the financial capacity of the assignee and will require that all conditions and obligations in this Agreement shall be assumed by the assignee. No assignment shall be approved if(a) the City has declared a default hereunder that has not been cured, or (b) the assignee is delinquent in the payment of ad valorem taxes owed to the City. Approval by the City shall not be unreasonably withheld. 11. Conditions Precedent. This Agreement is conditioned entirely upon (a) the approval of the City Council by the affirmative vote of a majority of the members present at a regularly scheduled meeting of the City Council; (b) the construction of the Improvements and the location of the Tangible Personal Property on the Property on or before August 31, 2016. The abatement granted herein shall not be effective until tax year commencing January 1, 2017. 12. Responsibilities of Owner. In consideration of receiving the tax abatement granted herein, the Owner agrees that: (a) Improvements and Personal Property. (1) By January 1, 2017: (A)The Owner must complete construction of the Improvements in compliance with this Agreement, the City's ordinances, and the plans shown in Exhibit A; (B)The Owner must have received from the City a certificate of occupancy for the Improvements; and (C)Cumulatively, the Improvements and Personal Property must have a value of at least $850,000 by year one and a projected 2,500,000 on the improvements by the tenth year of the project. 13. Notice. All notices shall be in writing. If mailed, any invoice or communication shall be deemed to be received three (3) days after the date of deposit in the United States mail, 7 first-class, postage prepaid. Unless otherwise provided in this Agreement, all notices shall be delivered to the following addresses: To Seahawk Landing, LLC: c/o ITEX Development, LLC Attn: Chris Akbari 3735 Honeywood Ct. Port Arthur, Texas 77642 To City: Brian E. McDougal, City Manager City of Port Arthur 444 4th Street Port Arthur, Texas 77641 Either party may designate a different address by giving the other party at least ten (10) days written notice in the manner prescribed above. 14. Entire Agreement. This Agreement and the Exhibits attached hereto contain the entire tax abatement agreement between the parties and supersedes all other negotiations and agreements between Seahawk Landing, LLC and the City relating to the grant of tax abatement for the Improvements and Tangible Personal Property located on the Property, whether written or oral. In the event that there is a conflict between any of the Exhibits to this Agreement and this Agreement, the provisions of this Agreement shall control over the provisions in the Exhibits. IN TESTIMONY OF WHICH, THIS AGREEMENT has been executed by the parties as of the day of , 2016. Seahawk Landing, LLC By: Name: Title: THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on this day of 2016, by , for and on behalf of Seahawk Landing, LLC. (SEAL) Notary Public in and for the State of Texas 8 CITY OF PORT ARTHUR, TEXAS ATTEST: By: Sherri Bellard, City Secretary Brian McDougal, City Manager THE STATE OF TEXAS § COUNTY OF JEFFERSON This instrument was acknowledged before on this day of 2016, Brian McDougal, City Manager, of the City of Port Arthur, Texas, for and on behalf of the City. Notary Public in and for the State of Texas (SEAL) 9 EXHIBIT "A" PROPERTY & IMPROVEMENTS 10 -d'4'••' ' "Iir :',.'.....'''' ' - Nlir• . W. 'ller . N '/ ,e- / \'' ,O,.:4;\:\,, I ,, * N + NI ..',. e ".j/ N Nv, 1. 11 N / 'N. * ,- a 4V-4' ' . iikko. , N. . , . . ,.. . . , .. 4 N ... , .... . , , ... { yM.Ty t sz. c. . l .,, kr. 19 ,. ..,..''' 4:::-N414.: : ,.,,‘7.://: . • I- a • p ,,.N.N iiii!. ,::, , 1 .i Iv N r� a Q rn n L, 0 0 •` 17 f ro a x `� n a 0 CD ro o. Vo ^•s ° fr, - u �� yr c3 II DfflO 11 O C mw N.o f Q = b: Irn 1 ONG0 00 A n 2 - c # N„, p O Zrn o $ -' ' '13i, ~ co13 XI I -I -I X a.. '. . i P. R. No. 18924 06/24/15 gt RESOLUTION NO. /3-1- 03 (z°' A RESOLUTION CALLING A PUBLIC HEARING TO CONSIDER THE DESIGNATION OF A REINVESTMENT ZONE FOR THE DOWNTOWN/LAMAR STATE COLLEGE AREA PURSUANT TO CHAPTER 312 .201 OF THE TEXAS TAX CODE. WHEREAS, the City of Port Arthur will consider entering into tax abatement agreement for the purpose of construction of a dormitory in the downtown area on property owned by Lamar State College; and WHEREAS, the authority to enter into tax abatement agreements is found in the Property Redevelopment and Tax Abatement Act located in Chapter 312 of the Texas Tax Code; and WHEREAS, Chapter 312 authorizes property taxing entities, such as the City of Port Arthur to limit the property taxes assessed on real property or tangible personal property located on real property due to the repairs or improvements to the property; and WHEREAS, a proposed tax agreement will be limited the increase in the value of the property taxes due to improvements or repairs to real property for a period of ten (10) years in length; and WHEREAS, only property located within a reinvestment zone is eligible for a tax abatement agreement; and WHEREAS, the City of Port Arthur is interested in considering a tax abatement agreement regarding the construction of a dormitory s.pr18924 as a variance to the tax abatement policy in the area shown in Exhibit "A" . A metes and bounds description of the property is attached hereto as Exhibit "B"; and WHEREAS, the City of Port Arthur deems it in the public' s interest to consider the creation of the "Downtown/Lamar State College Reinvestment Zone"; and WHEREAS, pursuant to Chapter 312 .201 of the Texas Tax Code, a public hearing must precede the creation of a reinvestment zone; and WHEREAS, the area depicted in Exhibits "A" and "B" appear to meet the criteria for a reinvestment zone due to it being reasonably likely as a result of the designation to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City. 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 a public hearing to consider whether or not to create a reinvestment zone for a project that will take place on property owned by Lamar State College Port Arthur, as shown on Exhibit "A", shall be held on Tuesday, July 21, 2015 at 6: 00 p.m. s.pr18924 in the City Council Chambers, Fifth Floor, City Hall, 444 4th Street . Section 3 . That a Notice of this Hearing shall be given by the City Secretary and City Attorney to the presiding officer of each of the other taxing units that has taxing jurisdiction over the real property within the zone. Section 4 . That the City of Port Arthur must publish in the official newspaper of general circulation within the city a notice of the public hearing designating a reinvestment zone not later than the seventh (7th) day before the date of the public hearing. Section 5 . That the City of Port Arthur must deliver in writing to the presiding officer of the Governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone notice of the public hearing designating a reinvestment zone not later than the seventh (7th) day before the date of the public hearing. Section 6 . That a copy of the caption of this Resolution be spread upon the Minutes of the City Coo ncil . READ, ADOPTED AND APPROVED on thiscJ day ofill _ __ A. D. , 2015, at a Meeting of the City Council of the City of Port Arthur, by the following vote: AYES: s.pr18924 Mayor: l 4(4 e.� ' mar-) J�-I . f Councilmembers: QA014-EibPLO Cx' &j)(L , \Jzock,ir. aThot_ JAAoimant.J • f NOES: Al , 1 • 42 1141--t-J 4.,( ?(---t<_../ MAYOR ATTEST: /01 / / / / 7 �� AD / CIT ' SECRETARY APPROVED AS TO FORM: C TY A ORN Y p APPROVED FOR • r. INISTRATION: if10 CITY • r• s.pr18924 • Exhibit "A" is a map of the area. It will be presented at or before the City Council meeting Exhibit "B" is a metes and bounds description of the property. BEING 2.203(Called 2.2000)acres of land out of and a part of Lakeshore Park, City of Port Arthur,recorded in Volume 1, Page 50, Map Records,Jefferson County, Texas; being the same land conveyed to Port Arthur Independent School District, recorded in Film Code 103-08-0051, Official Public Records. Jefferson County, Texas;said 2.203 acre tract being more fully described by metes and bounds as follows, to wit: COMMENCING at a point on the intersection of the South right of way line of a dedicated road named Procter Street and the West right of way line of a dedicated road named Lake Charles Avenue; said point being the Northeast corner of Block 154,City of Port Arthur, THENCE, (Called South 48 deg.,47 min., 00 sec., East), on the West right of way line of said Lake Charles Avenue and crossing a dedicated road named Lakeshore Drive, a distance of(Called 480.90')to a '/"steel rod found on the intersection of the West right of way line of said Lake Charles Avenue and the South right of way line of said Lakeshore Drive; said Y2"steel rod being the Northeast corner of a(Called 7.412)acre tract of land conveyed to Port Arthur College Foundation, Inc.,recorded in Film Code 100-86-1857, Official Public Records, Jefferson County, Texas: THENCE,on the South right of way line of said Lakeshore Drive,on the arc of a curve to the left having a radius of 650.00',an arc length of 283.52'(Called 283.62'),a chord bearing of South 49 deg., 10 min., 09 sec..West(Called South 53 deg.,43 min.,00 sec..West),a chord distance of 281.27'(Called 281.36')to a '4"steel rod found bent for point of tangency; THENCE,South 36 deg.,40 min.,51 sec.,West(Called South 41 deg., 13 min., 00 sec.,West),continuing on the South right of way line of said Lakeshore Drive,same being the North line of the(Called 7.412)acre tract,a distance of 480.33'(Called 480.44')to a W steel rod found for the POINT OF BEGINNING;said W rod being the Northeast corner of the herein described tract; having a State Plane Coordinate of N: 13902467.99, E:3576308.35 THENCE,South 53 deg., 19 min., 09 sec., East(Called South 48 deg., 47 min., 00 sec., East),a distance of 313.57'(Called 312.95')to a'/2"steel rod,capped and marked"SOUTEX", set on the South line of the (Called 7.412)acre tract, same being the North line of Jefferson County Drainage District No. 7 Hurricane Protection Levee,recorded in Volume1454, Page 1,Volume 1517, Page 41, and Volume 1521, Page 326, Deed Records,Jefferson County,Texas;said W'steel rod being the Southeast corner of the herein described tract;from which a W steel rod found bears North 53 deg., 26 min.,22 sec., West,a distance of 0.57'and a Jefferson County Drainage District No. 7 concrete monument bears South 35 deg., 16 min.,33 sec.,West,a distance of 3.06'; THENCE,South 36 deg., 10 min., 38 sec.,West(Called South 40 deg.,40 min., 30 sec.,West),on the North line of said Drainage District No. 7 Hurricane Levee, same being the South line of the(Called.7.412) acre tract,a distance of 304.82'(Called 304.86')to a Jefferson County Drainage District No. 7 concrete monument found for the Southwest corner of the(Called 7.412)acre tract and the Southwest corner of the herein described tract; having a State Plane Coordinate of N: 13902034.63, E: 3576379,89, THENCE, North 53 deg., 19 min.,37 sec.,West(Called North 48 deg.,47 min.,00 sec„West),on the West line of the(Caller!7.412)acre tract, a distance of 316.25'(Called 315,80')to a W steel rod,capped and marked"SOUTEX",set on the South right of way line of said Lakeshore Drive;said 1/2"rod being the Northwest corner of the(Called 7.412)acre tract and the Northwest corner of the herein described tract; THENCE, North 36 deg.,40 min., 51 sec.,East(Called North 41 deg., 13 min., 00 sec., East),on the South right of way line of said Lakeshore Drive, same being the North line of the(Called 7.41.2)acre tract,a distance of 304.85'to the POINT OF BEGINNING and containing 2.203 acres of land,more or less. Note: Bearings.distances, coordinates and acreage are based on State Plane Coordinate Grid System, Texas South Central Zone,NAD83. Scale Factor=0.999912380,Convergence angle 02 deg.,29 min., 11 sec. Reference monument NGS AJ6221. Weekend,July 11-12,2015 Port Arthur News/Orange Leader Public Notices Public Notices Public Notices NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PORT ARTIILR> • ,'Notice is hereby given that,pursuant to Chapter 312.201 of the Texas Tax Code,the City Council of the City of Port Arthur wilt hold a public hearing on Tuesday;July 21.2015 at 6:00 p.m.in the Port Arthur City Hall Council Chambers,Fifth Floor.444 45'Street,to consider whether or not to create a reinvestment zone for the DOvvr,to vra1.arnar State College area,as shown on Exhibit'-A". Further information on this public hearing is available in the Legal Department.City Ilan,444 4°i Street,Fourth Floor,Port Arthur.Texas. Ke 1 Moore Assistant .icy Secretary EK•481'4' eve s-esao .a.,. f a ♦^ r«' Ste` /.al 4e, • 33 r Y ` Yi f t {"r • • 11A ' w Qa ahNZ, BEING 2 263{Gated 2 200')acres or lard out of and a pen of Lakeshore Park,City of Port Anna,recorded in dd.,.1,Page 50.Mao Records,Jefferson County,Texas:tong Pe same end conveyed to Port Ann ifdeperndrn Shod District,recorded n Fath Code 103 003051,051..11 Public Records.bRxaot Counts, Texas;orad 2.207 a .Pact being moo Pity desmbed by metes and bounds as tollowt.to Mit COMMENCING at a pont on the mtersacnon of Pe South right of'nay line or a dedicated road named Pro*.See,end the West 0,401 of way toe d a dela:red road named Lake Chocks Avenue,said point team to Naitheaat corner of Stoic 154.Cey of Port Arthur. THENCE.(Caned South 48 dog..42 min..00 Pec,East).on the West nye of way tine of sad Lake Charles Scotia end crooning a dedicated road named t-akea tO*Calve.a drtence of(Cared-480.90')to a'4'sleet sod fond on the bre,eaCbOn of ere West right of way tem of sad Lake cilaritli Avenue aro the Sost'ngla of**vane of said Lakastw.clove:sad'0 tree,rod Dong the Nonhesst:one of a(Caed 7 417)acre 0E1 of bre conveyed to Pori Arthur Cotoge F.undaaon.ktc,recorded m Fan Code t00-85-1351,Ofboai Public Retails,Jolters.,County.'reset. THENCE,on hie South r Jnr Di way fire of said ti ieshare D,-'e,m tai an of a cava b ge tett having a radus of 6'0.00,an as engin of 233 52'(Ceded 281.971bearing of South sg deg.10 min.,09 sec,Wed(Cared South 53 deg..45 min.,1W are..+Nes4.a chord distance of 281 27'(Carted 281 36')to a 1144"steel«al writ bent Qo'oat at tangency, THENCE,Soret,38 deg e0 corn.51 sec.,West(Ceited Scutt 41 deg..13 roe DO sec,Wes*,ctnbnum4 on the South right of way(n,co aad Lakeshore Or rue.same LAMS tM 005 One oft s{Caned 7.412)arse 4444..w.......r d eAd li9'rcaa.d 480.447 to a w eteer rod found sof the POdiT OF BEGINNING;olid X' i :,: _ f ? a ; amoa yrumrsernra -t.,\ t ilrg I: E� —Ng ;.747.;7.1-' '''..L.7,--i-1 1- et- 1 1 } '1- } 911 'Artr "..,i. 1C==J ,4—O1NLw, 15. _1 4 is ! .=Y°f 4. 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I L _" L �8 's •/t"- I !q�I /" /� ( ' -i 1?..00.,-„:'7- e�I E$I ss 0 \ r--- air°y3. -� B o 1 1 I w '1 w..R�A EM E 11101.§; iEFOo 1 (m'wa) `\ ; 4�`' ; 1110 :§ li -(117 i-Ir TIT TI7 T-Ii ITT it q t I I a n ill Ilii; " . Iillllll I ii •$ Iiilil Iiiliiii n \.,�_-_1 J J.LU LH LU LL"LUL1.11JR \ Nd15fOx 878817 11737 j�w xnwl .,.4,E B�, _37, r 8 w 187'7 . a 81.88 uvro718 s:NK C'i T I� Ir I I I I I I I I r1 I 1 sag%4 §§§§ WIWI:t ” I OA I Ii I;I.Iiti1'-lililil.l'I .ss-"- 1I 1 I - - I I!L°I^1°I!Iil!17:1!I I l ° i ft v 1 1 I I gLU.LI1LI_1LI1 'i ba§ 4a \1.7 t 11 x Rs 1 SC=7.=D:[--1 §'F ES .#�' 1 � l 4''34= 1 I I __t_ I =C"= EXHIBIT "B" COMPLIANCE REQUIREMENTS 11 Updated 7/6/15 GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENTS IN REINVESTMENT ZONES IN PORT ARTHUR TEXAS ADMONITORY PROVISION The final determination of value to be abated invested with the Jefferson County Appraisal District (JCAD), an agency autonomous from the City of Port Arthur. The Procedures used by JCAD are attached as Exhibit "A" and incorporated and adopted in this Abatement Policy for all purposes. These provisions are illustrative only and shall not limit the Appraisal District in making determinations in any manner otherwise allowed by law. STATEMENT OF PURPOSE SECTION I (a) The City Council of the City of Port Arthur, Texas adopts this tax abatement policy to provide incentives to the owner of real property, who proposes a Project to develop, redevelop or improve eligible facilities. The incentives will consist of a limited special exemption from certain taxes provided that the Owner agrees to accept and abide by this Policy and provided that the real property is located in a lawfully created Reinvestment Zone. (b) This policy is intended to improve the quality of life in economically depressed areas by stimulating business development and job creation within such areas. DEFINITIONS SECTION II (a) Abatement means the full or partial exemption from ad valorem taxes of certain real property value and/or tangible personal property value in a reinvestment zone designated by the City for economic development purposes. (b) Agreement means a contractual agreement between a property owner and/or lessee and the City. (c) "Base Year" means the calendar year in which the abatement contract is executed (signed). (d) Base Year Value means the assessed value of eligible property within the entity on January 1 preceding the execution of the abatement agreement and which property is owned by the owner, co-owner and/or its parent companies, subsidiaries, partner or joint venturers or any entity exercising legal control over the owner or subject to control by the owner. (e) Deferred Maintenance means improvements necessary for continued operation which do not improve productivity, or aster the process technology, reduce pollution or conserve resources. (f) Distribution Center means buildings and structures, including fixed machinery and equipment, used or to be used primarily to receive, store, service or distribute goods or materials owned by the Facility operator where a majority of the goods or services are distributed to points beyond Port Arthur. Updated 7/6/15 (g) Eligible Facilities means new, expanded, or modernized buildings and structures, tangible personal property as defined in the Texas Tax Code, including fixed machinery and equipment, which is reasonably likely as a result of granting abatement to contribute to the retention or expansion of primary employment or to attract major investment in the reinvestment zone that would be a benefit to the property and that would contribute to the economic development within the City, but does not include facilities which are intended primarily to provide goods or services to residents or existing businesses located in the City. Eligible facilities may include, but shall not be limited to, industrial buildings and warehouses. (h) "Expansion" means the addition of buildings, structures, machinery,tangible personal property, equipment or payroll for purposes of increasing production capacity. (i) Modernization means a complete or partial demolition of facilities and the complete or partial reconstruction or installation of a facility of similar or expanded production capacity. Modernization may result from the construction, alteration or installation of buildings, structures, machinery, equipment, pollution control devices or resource conversation equipment. (j) Facility means property improvements completed or in the process of construction which together comprise an integral whole. (k) New Facility means a property previously undeveloped which is placed into service by means other than or in conjunction with Expansion or Modernization. (I) Productive Life means the number of years a property improvement is expected to be in service in a facility. (m) Tangible Personal Property means tangible personal property classified as such under state law, but excluding inventory and/or supplies and tangible personal property that was located in the investment zone at any time before the period covered by the agreement with the City. (n) Eligible Projects means a project that fits into one of the following categories: Industrial or Manufacturing. The minimum capital investment and corresponding abatement percentage required for an industrial project is specified in Exhibit "B". The minimum capital investment and corresponding abatement percentage required for a manufacturing project as is specified in Exhibit "C". (o) Variance: means an exception upon approval of the City Council which will allow commercial enterprises to participate in the abatement process for projects that facilitate the purpose of higher education. 2 Updated 7/6/15 ABATEMENT AUTHORIZED SECTION III (a) Eligible Facilities. Upon application, Eligible Facilities shall be considered for tax abatement as hereinafter provided. (b) Creation of New Value. Abatement may only be granted for the additional value of eligible improvements made subsequent to and specified in an abatement agreement between the City and the property owner or lessee, subject to such limitations as the City may require. Under no circumstances will abatements be considered or granted once construction on a facility or project has begun. (c) New and Existing Facilities. Abatement may be granted for new facilities and improvements to existing facilities for purposes of modernization or expansion. (d) Eligible Property. Abatement may be extended to the increase in value of buildings, structures, tangible personal property, fixed machinery and equipment, site improvements and related fixed improvements necessary to the operation and administration of the facility. (e) Ineligible Property. The following types of property shall be fully taxable and ineligible for tax abatement: land, supplies, inventory, vehicles, vessels, housing, improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or ' expansion; any improvements, including those to produce, store or distribute natural gas, fluids or gases, which are not integral to the operation of the facility; deferred maintenance, property to be rented or leased (except as provided in Section III(f), property which has a productive life of less than ten years, or any other property for which abatement is not allowed by state law. (f) Owned/Leased Facilities. If a leased facility is granted abatement, both the owner/lessor and the lessee shall be parties to the abatement contract with the City. (g) Economic Qualifications. In order for an Eligible Facility to qualify for designation as a reinvestment zone and receive tax abatement for the planned improvement,the Eligible Facility : 1) Must create increased appraised ad valorem tax value based upon the Jefferson County. Appraisal District's assessment of the Eligible Property; 2) Must prevent the loss of payroll or retain, increase or create payroll on a permanent basis in the City; • 3) Must not have the effect of displacing workers or solely transferring employment from one part of the City to another; and 3 Updated 7/6/15 4) Must demonstrate by an independent economic impact analysis that the local economic benefit to the City of Port Arthur will be substantially in excess of the amount of anticipated foregone tax revenues resulting from the abatement. (h) Factors Considered By City In Considering Abatement Requests, the following factors, among others, shall be considered in determining whether to grant tax abatements for an Eligible Facility and, if so, the percentage of value to be abated and duration of the tax abatement. 1) Value of land and existing improvements, if any; 2) Type and value of proposed improvements; 3) Productive life of proposed improvements; 4) Number of existing jobs to be retained by proposed improvements; 5) Number of type of new jobs to be created by proposed improvements; 6) The extent to which new jobs to be created will be filled by persons who are economically disadvantaged, including residents of a Reinvestment Zone; 7) The extent to which-Port Arthur labor and Port Arthur Business Enterprises will be used in the construction phase of the project; 8) Amount of local taxes to be generated directly; 9) Amount property tax base valuation will be increased during the term of abatement and after abatement; 10) The costs to be incurred by the City to provide facilities or services directly resulting from the new improvements; 11) The amount of ad valorem taxes to be paid to the City during the abatement period considering (a) the existing values; (b) the percentage of new value abated; (c) the abatement period; and, (d)the value after expiration of the abatement period; 12) The population growth of Port Arthur expected to occur directly as a result of new improvements; 13) The types and values of public improvements, if any to be made by applicant seeking abatement; 4 Updated 7/6/15 14) Whether the proposed improvements compete with existing businesses to the detriment of the local economy; 15) The impact on the business opportunities of existing businesses; 16) The attraction of other new businesses to the area as a result of the project; 17) The overall compatibility with the zoning ordinance and comprehensive plan for the area; 18) Whether the project is environmentally compatible with no negative impact on quality of life perceptions; and 19) The extent to which the new employment will reflect the cultural diversity of the City. Each application for tax abatement shall be reviewed on its merits utilizing the factors provided above. After such review, abatement may be denied entirely or may be granted to the extent deemed appropriate after full evaluation. (I) Local Employment. For purposes of evaluating Section III (h) (7), local labor is defined as those laborers or skilled craftsmen who reside in Port Arthur. 0) Historically Underutilized Businesses/Disadvantaged Business Enterprises.The City will also strongly consider the extent to which the project will encourage and promote the utilization of Historically Underutilized Businesses (HUBS) (also known as Disadvantaged Business Enterprises, or DBEs) by the owner and general contractor by ensuring that qualified HUB vendors and contractors are given an opportunity to bid on all contracts. 1. A Historically Underutilized Business(HUB) is a business owned or controlled by socially and Economically Disadvantaged Individuals as defined by all applicable federal or state laws and local policies,including Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Asian-Indian Americans, women and individuals with disabilities. A HUB is one that is at least 51 percent owned or controlled by one or more women or Socially and Economically Disadvantaged Individuals who actively participate in the conduct of the business or, in the case of a publicly owned business, one in which at least 51 percent of the stock is controlled by one or more women or Socially and Economically Disadvantaged Individuals. A business that has been certified as a HUB/DBE by an agency of the federal government or the State of Texas is presumed to be a HUB/DBE for purposes of this policy. Only a HUB/DBE with its principal office in Jefferson, Hardin, and Orange, County will be recognized as a HUB/DBE for purposes of this policy. The City of Port Arthur will supply a Minority Business Directory to each applicant. 5 Updated 7/6/15 2. The City will require that each abatement contract between itself and any individual or entity seeking the abatement of ad valorem taxes contain a provision requiring the owner, on at least a quarterly basis, and at owner's cost,to allow the full examination by City or its designated representative(s) of all documents necessary for the City to assure that best efforts have been used by owner to utilize local labor, subcontractors,vendors, suppliers and HUB's/DBE's.The City will also require that such contracts contain provisions binding the engineering/construction firms utilized as general contractors on the project to the terms of the abatement agreement. (k) Denial of Abatement. Neither a reinvestment zone nor abatement agreement shall be authorized if it is determined that; 1) There would be a substantial adverse effect on the provision of government service or tax base; 2) The applicant has insufficient financial capacity; 3) Planned or potential use of the property would constitute a hazard to public health, safety or morals; 4) Violation of state or federal laws; or, 5) Any other reason deemed appropriate by the City. (I) Taxability. From the execution of the abatement agreement to the end of the agreement period,taxes shall be payable as follows: 1) The value of ineligible property as provided in Section Ill (e)shall be fully taxable; and, 2) The base year value of existing eligible property as determined each year shall be fully taxable. The additional value of new Eligible Property shall be fully taxable at the end of the abatement period. APPLICATION SECTION IV (a) Any owner or his agent of taxable property in the City may request the creation of a reinvestment zone and tax abatement by filing a written request with the City Manager. (b) Any present owner, potential owner or Lessee of taxable property in the City may request the creation of a reinvestment or enterprise zone and tax abatement by filing a written request with the City Manager. 6 Updated 7/6/15 (c) The application shall consist of a completed application form which shall provide detailed information on the items described in Section III (h) hereof; a map and property description; a time schedule for undertaking and completing the planned improvements. In the case of modernization, a statement of the assessed value of the facility separately stated for real and personal property shall be given for the tax year immediately preceding the application. The application form may require such financial and other information as may be deemed appropriate for evaluating the financial capacity and other factors of the applicant. (d) The City shall also require a non-refundable application fee in the amount of$1,000.00 to be submitted with the application. (e) Prior to the adoption of an ordinance designating a reinvestment zone, the City shall: (1) give written prior notice to the presiding officer of the governing body of each taxing unit in which the property to be subject to the agreement is located not later than the seventh (7th) day before the public hearing; and (2) publish notice of a public hearing in a newspaper of general circulation within such taxing jurisdiction not later that the seventh (7th) day before the public hearing. Before acting upon the application, the City shall, through public hearing, afford the applicant and the designated representative of any governing body referenced hereinabove opportunity to show because why the abatement should or should not be granted. (f) The City shall make every reasonable effort to either approve or disapprove the application for tax abatement within forty-five (45) days after receipt of the application. The City of Port Arthur shall notify the applicant of approval or disapproval. (g) The City shall not establish a reinvestment zone for the purpose of abatement if it finds that the request for the abatement was filed after the commencement of construction, alteration, or installation of improvements related to a proposed modernization, expansion or new facility. (h) Information that is provided to the City in connection with an application or request for tax abatement and that describes the specific processes or business activities to be conducted or the equipment or other property to be located on the property for which a tax abatement agreement is requested is confidential and not subject to public disclosure pursuant to the Texas Public Information Act until the tax abatement agreement is executed. That information in the possession of a taxing unit after the agreement is executed is not confidential and is subject to disclosure. AGREEMENT SECTION V (a) Not later than the seventh (7th) day before the date on which the City enters into the abatement agreement, the City shall deliver to the presiding officer of the governing body of each other taxing unit in which the property is located a written notice that the City intends to enter into an agreement.The notice shall include a copy of the prepared agreement. 7 • Updated 7/6/15 (b) After approval, the City shall formally pass a resolution and execute an agreement with the owner of the facility and lessee as required which shall include at least the following terms; 1) Estimated value to be abated and the base year value; 2) Percent of value to be abated each year; 3) The commencement date and the termination date of abatement; 4) The proposed use of the facility; nature of construction,time schedule, map, property description and improvement list as provided in application, Section IV(c); 5) Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture, administration or assignment; 6) Provision for access to and authorization for inspection of the property by City employees to ensure that the improvements or repairs are made according to the specifications and conditions of the agreement; 7) Limitations on the uses of the property consistent with the general purpose of encouraging development or redevelopment of the zone during the period that property tax exemptions are in effect; 8) Provision for recapturing property tax revenue lost as a result of the agreement if the owner of the property fails to make the improvements or repairs as provided by the agreement; 9) Provision that all permanent jobs be registered with the Texas Workforce Commission and that all contractors shall give preference to and to seek qualified workers through the Texas Workforce Commission. 10) Contain each and every term agreed to by the owner of the property; 11) Requirement that the owner or lessee of the property certify annually to the governing body of each taxing unit that the owner or lessee is in compliance with each applicable term of the agreement; 12) All terms required by Texas Tax Code§ 312.205, as amended; and That the property subject to abatement is not owned or leased by a person who is a member of the governing body of the City or a member of the zoning or planning board or commission of the City. • (c) Quarterly Reports The Property Owner agrees to submit on a semi-annual basis a report (each, a "Report") in accordance with the procedures, and providing the information specified, herein with respect to the 8 Updated 7/6/15 hiring of qualified Port Arthur residents by the Property Owner and its Nested Contractors, and the retention of Port Arthur LBE's by the Property Owner, as the same relate to the Affected Area. The Report due for the six-month period ending on June 30th of each of such Tax Years shall be submitted on or before the July 31st immediately following the end of such six-month period, and the Report due for the six-month period ending on December 31st of each of such Tax Years shall be submitted on or before the January 31St immediately following the end of such six-month period; provided, however, that upon the written request of the Property Owner, the deadline for submitting a Report shall be extended for thirty (30) days. The six-month period covered by any Report is referred to herein as the "Report Period." The Reports shall be sent to the Office of the City Manager and copied to the City Attorney substantially in the format delineated in Exhibit "B". Each of the Reports will be reviewed for compliance by the City or its representative as to the following: (I) With respect to the hiring of qualified Port Arthur residents by the Property Owner at the Facility, such Report shall set forth the following information for the Report Period covered by such Report: (A) Total number of employees employed by the Property Owner at the Facility on the last day of such Report Period who were Port Arthur residents on such date; (B) Total number of employees employed by the Property Owner at the Facility on the last day of such Report Period; (C) Total number of new hires employed by the Property Owner at the Facility during such Report Period who were Port Arthur residents on their first day of employment with the Property Owner; (D) Total number of new hires employed by the Property Owner at the Facility during such Report Period; and (E) Total number of applicants completing the interview process for employment with the Property Owner at the Facility during such Report Period. (ii) With respect to the hiring of qualified Port Arthur residents by the Property Owner's Nested Contractors for projects at the Facility, the Property Owner will use commercially reasonable efforts to obtain the information set forth below for inclusion in such Report for the Report Period covered thereby: • 9 Updated 7/6/15 (A) Total number of employees employed by the Property Owner's Contractors for projects at the Facility on the last day of such Report Period who were Port Arthur residents on such date; (B) Total number of employees employed by the Property Owner's Contractors for projects at the Facility on the last day of such Report Period; (C) Total number of new hires employed by the Property Owner's Contractors for projects at the Facility during such Report Period who were Port Arthur residents on their first day of employment with the Property Owner's Contractors; (D) Total number of new hires employed by the Property Owner's Contractors for projects at the Facility during such Report Period; and (E) Total number of applicants completing the interview process for employment with Property Owner's Contractors for projects at the Facility during such Report Period. (iii) With respect to the retention of "Designated Port Arthur LBE's", such Report shall set forth the following information for the Report Period covered by such Report: (A) Total number of Designated Port Arthur LBE's that: (I) were on the approved vendor list of the Property Owner at any time during such Report Period, and/or (ii) Were invited by the Property Owner during such Report Period to bid on contracts for goods and/or services; (B) Total number and dollar amount of contracts awarded by the Property Owner during such Report Period for goods and/or services that the Property Owner determines could have potentially been obtained from Designated LBE's; and (C) Total number and dollar amount of the contracts described in Section 6(c) • (iii) (B) immediately above that were awarded to Designated LBE's during such Report Period. (d) The information provided by the Property Owner to the City in any Report shall be held confidential by the City to the fullest extent permitted under applicable law. If the City receives a request for such information, the City will notify the Property Owner, and the Property Owner will be afforded an opportunity to file a brief with the Texas Attorney General setting forth the reasons for exclusion of all or any portion of such information from the requirement to be released pursuant to the Texas Public Information Act. 10 Updated 7/6/15 Such agreement shall normally be executed within sixty{60) days after the applicant has forwarded all necessary information and documentation to the City. • RECAPTURE SECTION VI (a) Tax abatement agreements will provide for recapture of abated property taxes in the event contract terms and requirements are not met. These recapture provisions will survive any subsequent assignment of the Agreement. In the event that the company or individual {1) allows its ad valorem taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for their protest and/or contest; or (2) violates any of the terms and conditions of the abatement agreement; and fails to cure during the cure period, the agreement then may be terminated and all taxes previously abated by virtue of the agreement will be recaptured and paid within thirty(30)days of the termination. (b) Should the City determine that the company or individual is in default according to the terms and conditions of its agreement, the City shall notify the company or individual of such default in writing at the address stated in the agreement; and if such is not cured within thirty (30) days from the date of such notice ("Cure Period"),then the agreement may be terminated. (c) Milestones: The City will set specific milestones for each company to meet. These milestones will be incorporated into a tax abatement agreement that will be approved by the City Council. (d) Payment in Lieu of Taxes: If, during the period of this abatement, any Federal or State law provides an additional tax exemption for the property that is already the subject of this agreement,Applicant agrees to decline that tax exemption during the period of this abatement. If Applicant is unable to decline that tax exemption,Applicant agrees to pay the taxes, or payment in lieu of taxes, op the reduction of property tax revenue to the City that is the result of said exemption. Any payment in lieu of taxes shall be due on or before November 15 of the year in which payment is due. By this, it is understood and agreed that if the party granted this abatement avails itself of a Foreign Trade Zone exemption, the abated value subject to this contract will be reduced dollar for dollar and taxed. The following are the sample schedules that show what percentage of taxes abated will be recaptured (multiply the amount of taxes abated by the percentage in the recapture period): • 11 Updated 7/6/15 Less that 10 Year Abatement Period 10-Year Abatement Period Recaptured Recaptured Termination of Abatement Taxes Termination of Abatement Taxes During Abatement Period 100% During Abatement Period 100% Year 1 of Recapture Period Year 1 of Recapture Period Year 2 of Recapture Period 75% Year 2 of Recapture Period 80% Year 3 of Recapture Period 50% Year 3 of Recapture Period 60% Year 4 of Recapture Period 25% Year 4 of Recapture Period 40% _ Year 5 of Recapture Period 20% Year 6 of Recapture Period 10% ADMINISTRATION SECTION VII (a) The Chief Appraiser of the Jefferson County Appraisal District will annually determine an assessment of the real property comprising the reinvestment zone. Each year, the company or individual receiving abatement shall furnish the appraiser with such information as may be necessary for the abatement. Once value has been established,the Chief Appraiser will notify the City of the amount of the assessment. (b) The abatement agreement shall stipulate that employees and/or designated representatives of the City will have access to the reinvestment zone during the term of the abatement to inspect the facility to determine if the terms and conditions of the agreement are being met. All inspections will be made only after the giving of twenty-four(24) hours prior notice and will only be conducted in such manner as to not unreasonably interfere with the construction and/or operation of the facility. All inspections will be made with one or more representatives of the company or individual and in accordance with its safety standards. (c) Upon completion of construction, the designated representative of the City shall annually evaluate each facility receiving abatement to insure compliance with the agreement, and a formal report shall be made to the City. (d) The City shall timely file with the Texas Department of Economic Development and the State Property Tax Board all information required by the Tax Code. (e) During the course of construction of the Project, Owner and its general contractor and/or subcontractors shall, on at least a quarterly basis, meet with designated City representatives for an onsite inspection to assure compliance with the terms of the abatement agreement. Owner shall be responsible to City for the payment of costs associated with such monitoring. In the event it is determined that Owner or its contractors have failed to comply with the terms of the abatement agreement, then City may terminate the abatement agreement or, in City's discretion, reduce the duration or annual percentages of such abatement. 12 Updated 7/6/15 (f) During construction, the Applicant shall maintain appropriate records of the employees affected by this abatement, including but not limited to, proof of employees' legal residence, proof of immigration-resident status, and, if applicable, such other documentation that may be required to document compliance with the Agreement. (g) The Chief Appraiser of the'Jefferson County Appraisal District shall timely file with the Texas Department of Economic Development and the State Property Tax Board all information required by the Tax Code. (h) All requirements of the Abatement Agreement shall, apply to Applicant's contractors/subcontractors and Applicant shall ensure that they abide by the terms of the Agreement. ASSIGNMENT SECTION VI Abatement may be transferred, assumed and assigned in whole or in part by the holder to a new owner or lessee of the same facility upon the approval by resolution of the City Council; subject to the financial capacity of the assignee and provided that all conditions and obligations in the abatement agreement are guaranteed. No assignment or transfer shall be approved if the parties to the existing agreement,the new owner or new lessee are liable to any jurisdiction for outstanding taxes or other • obligations.Approval shall not be unreasonably withheld. As a condition of transfer, an assignment fee of$10,000.00 may be required, with the maximum fee being$10,000.00 SUNSET PROVISIONS SECTION VII These guidelines and criteria are effective upon the date of their adoption and will remain in force for two years, unless amended by three-quarters of the City Council at which time all reinvestment zones and tax abatement agreements created pursuant to these provisions will be reviewed to determine whether the goals have been achieved. Based on that review, the guidelines and criteria may be modified, renewed or eliminated. DISCRETION OF THE CITY SECTION VIII The adoption of these guidelines and criteria by the City does not: 1) Limit the discretion of the City to decide whether or not to enter into a specific tax abatement agreement. 13 Updated 7/6/15 2) Limit the discretion of the City to delegate to its employees the authority to determine whether or not the City should consider a particular application or request for tax abatement; or, 3) Create any property, contract, or other legal rights in any person to have the City consider or grant a specific application or request for tax abatement. • 14 Updated 7/6/15 QUESTIONS TO BE ANSWERED IN ORDER TO DEVELOP AN APPLICATION OF ECONOMIC IMPACT STATEMENT FOR VALUE ADDED TAX ABATEMENTS IN PORT ARTHUR,TEXAS General: The City of Port Arthur will provide a representative to assist in preparation and presentation of all documents and to guide them through the abatement process. Opening Paragraph: The application should include a summary statement about the company and its operations. ibis information can come from an annual report, corporate 10K or other document provided by the company. (Please include this document with this questionnaire). Answers to Statutory Questions: 1) Present Appraisal District value of land and any EXISTING improvements: (The City of Port Arthur will answer this question based on Appraisal District records for the specific site you select.) Cost of Land (If you are purchasing): $ Number of Acres: or Square Feet 2) Type and value of proposed improvements: Type of construction: (Tiltwall, Built-Out of Existing Facility, Etc.) Value of Construction: Value of Equipment: Value of Personal Property: Value of Inventory&Percent going out-of-state: Within 175- Day Cycle: 3) Productive life of proposed improvements: years, or term of initial lease: 4) Number of existing jobs to be retained by proposed improvements: (Answer only if the location is already in Port Arthur and now employs Port Arthur Residents). 5) Number and types of new jobs to be created by proposed improvements: 6) Amount of local payroll to be create: annually. 15 Updated 7/6/15 7) What percentage and type of jobs to be created will Port Arthur residents have the opportunity to fill? 8) Amount of local sales taxes to be generated directly: (Please uses prior year's taxes collected on your taxable sales.) 9) Amount property tax base valuation will be increased during term of abatement and after abatement: 10)The costs to be incurred by the City of Port Arthur to provide facilities or services directly resulting from the new improvements: (Explain any costs for development or depletion of infrastructure the city is being asked to absorb,if any). 11)The amount of ad valorem taxes to be paid to the city during the abatement period considering (A) the existing values; (b) the percentage of new value abated; (c)the abatement period; and (d)the value after expiration of the abatement period. 12)The types and values of public improvements,if any,to be made by applicant seeking abatement: List any facilities from which the public might benefit). 13)Whether the proposed improvements competle with existing businesses to the detriment of the local economy: 14)The impact on the business opportunities of existing businesses: Are there possibilities for local businesses to be become suppliers?Any new retail opportunities? 15)The attraction of other new business to the area: (Will any of your suppliers, customers,parent,or sister companies relocate because of your relocation?) 16)The overall compatibility with the zoning ordinances and comprehensive plan for the area: 17) Maps and Plats Provide maps, plats, and drawings necessary to establish the location of the improvements and their relationships to the boundaries of cities, ETA, and reinvestment or enterprise zone boundaries. 16 Updated 7/6/15 18) Questions to be Answered (1) Is your project within a city limit? . Name of City (2) Is your project within an ETj? Name of City ETJ (3) Is your project within an Enterprise or Reinvestment Zone?Which? 19) (4) Will you own the realty or lease the realty? (5) Present Appraisal District value of land and any EXISTING improvements owned by the OWNER: (Answer this question based on Appraisal District records for the specific site you select.) Cost of Land (If you are purchasing): $ Number of Acres: or Square Feet: (6)Type and value of proposed improvements: Type of construction: (Tiltwall, Build-Out of Existing Facility, Etc.) Value of Construction: Value of Equipment: • (7) Productive life of proposed improvements: years, or term of initial lease: (8) Number of existing jobs to be retained by proposed improvements: (Answer only if the location is already in or near the City of Port Arthur and now employs Port Arthur residents.) 17 Updated 7/6/15 (9) Number and types of new jobs to be created by proposed improvements: Include in this answer the number of Port Arthur residents that will be employed. (10)Amount of Annual local payroll to be created: 20) (11) What percentage and type of jobs to be created will Jefferson residents have the opportunity to fill? (12) Amount property tax base valuation will be increased: During term of abatement: After term of abatement: (13) The costs to be incurred by local government to provide facilities or services directly resulting from the new improvements: (Explain any costs for development or depletion of infrastructure the city is being asked to absorb, if any.) (Are there possibilities for local businesses to become suppliers?Any new retail opportunities? If you have previously conducted business within Port Arthur, please provide a list of any and all local/non-local HUB/DBE companies with whom you have worked and the extent of that work relationship) (21) Describe, including the estimated value,all pollution control devices and other improvements for which you intend to seek TNRCC exemption from taxation: NOTE: Failure to accurately disclose exempted property may result in a total default under the Abatement Contract,resulting in recapture of previously abated taxes and forfeiture of future abatement. 18 Updated 7/6/15 EXHIBIT"A" PROCEDURE FOR CALCULATING ABATEMENTS Purpose The purpose of this procedure is to clarify the method used in calculating tax abatement. This procedure requires calculation of the Current Year Market Value, Base Year Value, and Taxable Value as these terms are defined below. -In accordance with the City of Port Arthur Uniform Tax Abatement Policy, the Real Property Owner's Current Taxable Value shall not be less than the Base Year Value in order for a project to receive the full amount of abatement. Calculation of"Base Year Value" "Base Year Value"for each taxing entity executing an abatement contract is the Taxable Value of all industrial realty improvements of a property owner and/or its affiliates located within that entity for the tax period defined as the "Base Year". "Base year" is defined as the calendar year in which the abatement contract is executed (signed). Calculation of"Current Year Market Value" "Current Year Market Value" for each taxing entity executing an abatement agreement is determined by calculating for the Current Tax Year the Market Value of all industrial realty improvements of a property owner and/or its affiliates that comprise the "Base Year Value." 19 Updated 7/6/15 Calculation of "Taxable Value" "Taxable Value" for each taxing entity executing an abatement agreement is determined by deducting from the Market Value of all industrial realty improvements of a property owner and/or its affiliates the amount of any applicable exemptions and abatements granted for that Tax Year. Calculation of Abated Value The following procedures are followed for each project for which a tax abatement contract has been executed and for each taxing entity granting the abatement. VALUE POTENTIALLY ELIGIBLE FOR ABATEMENT: The Base Year Value is subtracted from the Current Year Market Value. If the difference is greater than zero (0), then the remaining value is the value potentially eligible for abatement. If the difference is zero (0) or less, then the project is not eligible for an abatement for that Tax Year. VALUE AVAILABLE FOR ABATEMENT: For each project that remains potentially eligible for abatement, a preliminary calculation of the abated value of all other projects for the owner and/or its affiliates, if any, must be made. This calculation must first be done based on a preliminary abated value for subsequent projects since the full calculation has yet to be performed. For multiple abated projects, the calculations of the preliminary abated values are made in chronological order based on the date the contract was executed. Once the abated value for the subsequent project is calculated, if the actual abated value differs from the preliminary abated value, this calculation must be redone in order to reflect the actual abated value. Once all calculations have been completed, the abated value of other projects for the owner and/or its affiliates, if any, is subtracted from the Value Potentially Available for Abatement. If the difference is 20 Updated 7/6/15 greater than zero (0), then the remaining value is the Value Available for Abatement. If the difference is zero (0) or less,then the project is not eligible for an abatement for that Tax Year. VALUE SUBJECT TO ABATEMENT: The project base value, if applicable, is subtracted from the current year project value, and the percentage of abatement to be granted is then applied to the net amount to determine the Value Subject to Abatement. ABATED VALUE: Any applicable reductions for Foreign Trade Zone or Pollution Control restrictions are subtracted from the Value Subject to Abatement. If the difference is less than the Value Available for Abatement, then this is the Abated Value. If the difference is greater than the Value Available for Abatement,then the Value Available for Abatement becomes the Abated Value. 21 Updated 7/6/15 (g) Eligible Facilities means new, expanded, or modernized buildings and structures, tangible personal property as defined in the Texas Tax Code, including fixed machinery and equipment, which is reasonably likely as a result of granting abatement to contribute to the retention or expansion of primary employment or to attract major investment in the reinvestment zone that would be a benefit to the property and that would contribute to the economic development within the City, but does not include facilities which are intended primarily to provide goods or services to residents or existing businesses located in the City. Eligible facilities may include, but shall not be limited to, industrial buildings and warehouses. (h) "Expansion" means the addition of buildings, structures, machinery,tangible personal property, equipment or payroll for purposes of increasing production capacity. (i) Modernization means a complete or partial demolition of facilities and the complete or partial reconstruction or installation of a facility of similar or expanded production capacity. Modernization may result from the construction, alteration or installation of buildings, structures, machinery, equipment, pollution control devices or resource conversation equipment. (j) Facility means property improvements completed or in the process of construction which together comprise an integral whole. (k) New Facility means a property previously undeveloped which is placed into service by means other than or in conjunction with Expansion or Modernization. (1) Productive Life means the number of years a property improvement is expected to be in service in a facility. (m) Tangible Personal Property means tangible personal property classified as such under state law, but excluding inventory and/or supplies and tangible personal property that was located in the investment zone at any time before the period covered by the agreement with the City. (n) Eligible Projects means a project that fits into one of the following categories: Industrial or Manufacturing. The minimum capital investment and corresponding abatement percentage required for an industrial project is specified in Exhibit "B". The minimum capital investment and corresponding abatement percentage required for a manufacturing project as is specified in Exhibit "C". (o) Variance: means an exception upon approval of the City Council which will allow commercial enterprises to participate in the abatement process for projects that facilitate the purpose of higher education. 2 EXHIBIT "C" ORDINANCE NO. 15-56 12 % P. O. No. 6509 12/02/15 vrt/ht ORDINANCE NO. ta:54r, AN ORDINANCE DESIGNATING A TAX ABATEMENT REINVESTMENT ZONE FOR THE DOWNTOWN REINVESTMENT ZONE NO. 1/ LAMAR STATE COLLEGE AREA WHEREAS, under Chapter 312 , Property Development of the Texas Property Tax Code, a municipality may designate an area as a tax abatement reinvestment zone; and WHEREAS, a public hearing was held on July 21, 2015 to take comments on the proposed designation; and WHEREAS, notice of this hearing was provided to the presiding officer of all taxing units that include in their boundaries the property that is to be included in the Zone . NOW THEREFORE, BE IT ORDAINED 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 area of the City, as denoted in the attached map as Exhibit "A" , which is the same area, is hereby designated as a tax abatement reinvestment zone, known as the "The Downtown Reinvestment Zone No. 1/ Lamar State College Area" . Section 3 . That the City Council finds that the designation of the Reinvestment Zone would likely result in the designation to contribute to the retention or expansion of primary employment or attract major investment in the zone that would benefit the property and that would contribute to the economic s.po6476 Section 4 . That if any section, subsection, sentence, clause, phrase, or portion of this Ordinance, is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions hereof . Section 5 . That the term of this designation shall be five (5) years from the effective date of this Ordinance and may be renewed for periods of five (5) years . Section 6 . That all Ordinances and parts of Ordinances in conflict herewith are hereby repealed, but only to the extent of such conflict . Section 7 . That a copy of the caption of this Ordinance be spread upon the Minutes of the City Council . Section 8. That this being an Ordinance which does not carry a penalty and does not require publication, it shall take effect immediately from and after its passage. READ, ADOPTED AND APPROVED on this day ofLie- , A.D. , 2015 , at a Council Meeting of the City Council of the City of Port Arthur, Texas , by the following vote:` AYES : Mayor: ✓Gv yK� di/in V Councilmembers : W‘iffittifkaY) 4,4We ) m4 , NOES : A, MAYOR /9 4 s.po6476 r ATTEST: c_____5iic / , 1 /g) SHERRI BELLARD CITY SECRETARY APPROVED AS TO FORM: \i/l/ti / VALECIA TI EN041 CITY ATTORNEY APPROVED FOR ADMI ISTRATION: /%iii BRIAN MC►•U►/ ' CITY . 4AG' • s.po6476 EXHIBIT "A" s.po6476 Downtown Reinvestment Map Boundaries -- 012> f .. of Lamar Student Housing EXHIBIT "D" LETTER AND APPLICATION 13 Seahawk Landing, LLC 3735 Honeywood Court Port Arthur, Texas 77642 January 6, 2016 Brian McDougal City Manager City of Port Arthur,Texas 444 4th Street Port Arthur,Texas 77640 Re: Lamar State College-Port Arthur Student Housing Tax Abatement • Dear Mr.McDougal: Lamar State College-Port Arthur and I"1'EX Development, LLC are working together to close and begin construction on an on-campus student housing development called Seahawk Landing to be located at 1550 Lakeshore Drive in. Port Arthur, Texas. The development will consist of one building which will include 101 beds within 37 suites with a community area and management office. The development's amenities will include a lounge with a full kitchen, study room, computer lab, laundry facility, volleyball court, one-half basketball court, and a splash pad. The land, which is currently vacant, is owned.by.Lamar State College-Port Arthur and is being ground leased for 30 years to the development owner, Seahawk Landing,LLC. Prior to closing on the development and beginning construction Seahawk Landing, LLC is • requesting a 100% Tax Abatement from the City of Port Arthur for a ten year period beginning in 2016. In 2015 the Jefferson County Appraisal District valued the land at $8,370. During the first year the development is projecting a valuation of approximately$850,000. The second year is projected to be valued at approximately $2,250,000,with an increase in the growth rate of 1.5% each year. On the tenth year the projected value is approximately $2.5 million. Seahawk Landing, LLC is estimating the City of Port Arthur's 100% Tax Abatement will equal approximately$177,000 over ten years. Following this letter you will find our Tax Abatement application. We ask that this request and application are put on the City Council's agenda for January 12,2016 for approval. • If you have any questions please feel free to contact me at 409-853-3681 or David Belvin at 281- 898-4208. Sincerely, itV4tia 1 Miranda Ashline Authorized Representative QUESTIONS TO BE ANSWERED IN ORDER TO DEVELOP AN APPLICATION OF ECONOMIC IMPACT STATEMENT FOR VALUE ADDED TAX ABATEMENTS IN PORT ARTHUR,TEXAS General: The City of Port Arthur will provide a representative to assist in preparation and presentation of all documents and to guide them through the abatement process. Opening Pgragraph: The application should include a summary statement about the company and its operations. This information can come from an annual report, corporate 10K or other document provided by the company.(Please include this document with this questionnaire). Answers to Statutory Questions: 1) Present Appraisal District value of land and any EXISTING improvements: $8,370(per Jefferson CAD 2015) (The City of Port Arthur will answer this question based on Appraisal District records for the specific site you select.) Cost of Land(If you are purchasing):$N/A(Lamar State College-Port Arthur owns the land&will continue to own it) Number of Acres: apprx.2.206 or Square Feet N/A 2) Type and value of proposed improvements: 37 units with101 Bed Student Housing Development with a value of approximately$3.9M Type of construction: Student Housing,one 3-story wood structure building (Ti ltwall, Built-Out of Existing Facility,Etc.) Value of Construction: approximately$3.9M Value of Equipment: N/A, Value of Personal Property: approximately$150,000 Value of Inventory&Percent going out-of-state:N/A Within 175- Day Cycle: N/A 3) Productive life of proposed improvements: N/A years,or term of initial lease: 30 years Ground Lease between Lamar State College-Port Arthur&Development Owner,Seahawk Landing,LLC 4) Number of existing jobs to be retained by proposed improvements: N/A,this is a (Answer only if the location is already in Port Arthur and now employs Port Arthur new construction on a vacant site. Residents). 5) Number and types of new jobs to be created by proposed improvements: During Construction this will vary and then once constructed there will be approximately 8 permanent jobs,which will include a manager, resident assistant,maintenance,house keeper,and grounds keeper. 6) Amount of local payroll to be create: approximately$100,000 annually. l4 7) What percentage and type of jobs to be created will Port Arthur residents have the opportunity to fill? 100%new jobs once constructed,which will include a manager,resident assistant,maintenance,house keeper,and grounds keeper 8) Amount of local sales taxes to be generated directly: N/A (Please uses prior year's taxes collected on your taxable sales.) 9) Amount property tax base valuation will be increased during term of abatement and after abatement:The 2015 the valuation of the property is$8,370.During the first year it is projected that the valuation will be approximately$850,000.The second year is projected to be valued at approximately$2,250,000,with it increasing at a owth rate of %e ch ear,wi the tenth year being valu d t approximately$2.5M. 10)The costs to le incurred iy theCity of Port Arthur to provi efacilities or services directly resulting from the new improvements: approximately$9,500 (Explain any costs for development or depletion of infrastructure the city is being asked to absorb,if any). There is approximately$50,000 of off-site utility work,and the development owner requests the City to supply the materials to do the work which would cost approximately$9,500. 11)The amount of ad valorem taxes to be paid to the city during the abatement period considering (A)the existing values; (b)the percentage of new value abated; (c)the abatement period;and (d)the value after expiration of the abatement period.Please see the enclosed letter. 12)The types and values of public improvements,if any,to be made by applicant seeking abatement:One 3-story building with amenities that include splashpad,sand volleyball court, and 1/2 basketball court with approximately$3.9M of construction costs. List any facilities from which the public might benefit N/A,all site amenities will be for the student housing residents only. 13)Whether the proposed improvements competle with existing businesses to the detriment of the local economy: No,this will be the only student housing development in the local economy. 14)The impact on the business opportunities of existing businesses: There will be a higher demand for restaurants,convenience storesentertainment,and the like from having 101 students living in the area. Are there possibilities for local businesses to be become suppliers?Any new retail opportunities? Yes,there are possibilities for new opportunities with 101 students living in the downtown area. 15)The attraction of other new business to the area: There will be 101 students and one resident assistant living in the student housing on campus.These residents will create a demand for restaurants,convenience stores,entertainment,etc. (Will any of your suppliers,customers,parent,or sister companies relocate because of your relocation?) N/A 16)The overall compatibility with the zoning ordinances and comprehensive plan for the area: The property is currently finned Pr)-9 and theJlev.flopErient it compatible with the zoning. 17) Maps and Plats Provide maps, plats,and drawings necessary to establish the location of the improvements and their relationships to the boundaries of cities, ETJ's, and reinvestment or enterprise zone boundaries. The student housing site is within the city limits of Port Arthur.The site has been approved(on 10/19/15)by Planning and Zoning for a replat.Attached are:1. Jefferson CAD info,2.information from the planning and zoning meeting about the plat,3.a copy of the plat to be recorded, and 4. the survey. I5 18) Questions to be Answered (1) Is your project within a city limit?Yes . Name of City Port Arthur,Texas (2) Is your project within an ETJ? Name of City ETJ No,it is within the city limits. (3) Is your project within an Enterprise or Reinvestment Zone?Which? Yes,Port Arthur Tax Abatement Reinvestment Zone#1 for the Lamar State College Area. Attached is City of Port Arthur Ordinance 15-56. 19) (4) Will you own the realty or lease the realty? Lamar State College-Port Arthur owns the property will be ground leasing it to the development owner,Seahawk Landing,LLC. (5) Present Appraisal District value of land and any EXISTING improvements owned by the OWNER: $8,370--Attached is the information from the Jefferson CAD (Answer this question based on Appraisal District records for the specific site you select.) Cost of Land (If you are purchasing): $ N/A(Lamar State College-Port Arthur owns the land&will continue to own it) Number of Acres:apprx.2.206 or Square Feet: N/A (6)Type and value of proposed improvements: 37 unit,101 Bed Student Housing Development with a value of approximately$3.9M Type of construction: Wood structure of one 3-story student housing building (Tiltwall, Build-Out of Existing Facility,Etc.) Value of Construction: approximately$3.9M Value of Equipment: N/A (7) Productive life of proposed improvements: N/A years,or term of initial lease: 30 years Ground Lease between Lamar State College-Port Arthur&Development Owner,Seahawk Landing,LLC (8) Number of existing jobs to be retained by proposed improvements: NSA,this is a new construction on a vacant site. (Answer only if the location is already in or near the City of Port Arthur and now employs Port Arthur residents.) (9) Number and types of new jobs to be created by proposed improvements: During Construction this will vary and then once constructed there will be approximately 8 permanent jobs,which will include a manager,resident assistant, maintenance,house keeper,and grounds keeper. 16 Include in this answer the number of Port Arthur residents that will be employed. (10) Amount of Annual local payroll to be created: approximately$100,000 20) • (11) What percentage and type of jobs to be created will Jefferson residents have the opportunity to fill? 100%new jobs once constructed,which will include a manager,resident assistant,maintenance,house keeper,and grounds keeper. (12) Amount property tax base valuation will be increased: During term of abatement: During the first year it is projected that the valuation will be approximately$850,000.The second year is projected to be valued at approximately$2,250,000,with it increasing at a growth rate of 1.5%each year. After term of abatement: The tenth year being valued at approximately$2.5M. (13)The costs to be incurred by local government to provide facilities or services directly resulting from the new improvements: There is approximately$50,000 of off-site utility work,and the development owner requests the City to supply the materials to do the work which would cost approximately$9,500. (Explain any costs for development or depletion of infrastructure the city is being asked to absorb,if any.) (Are there possibilities for local businesses to become suppliers?Any new retail opportunities?If you have previously conducted business within Port Arthur,please provide a list of any and all local/non-local HUB/DBE companies with whom you have worked and the extent of that work relationship) Yes,there are possibilities for local businesses to become suppliers,especially during construction of the development.Also ager it is constructed there will be need for other services to maintain the property.With 100 students living in the downtown area/on-campus,there will be a demand for restaurants,convenience stores,entertainment,etc.Attached is a list of local/non-local HUB/DBE companies whom the general contractor,ICON Builders,LLC,has worked with in previously. (21) Describe,including the estimated value,all pollution control devices and other improvements for which you intend to seek TNRCC exemption from taxation: NOTE:Failure to accurately disclose exempted property may result in a total default under the Abatement Contract,resulting in recapture of previously abated taxes and forfeiture of future abatement. This abatement application falls under the variance allowing commercial enterprises to participate for higher education purposes.There will be no pollution controls needed because this is not a industrial or manfacturing development,but rather a student housing development. 17 10/21/2015 Jefferson CAD-Property Details Property Search Results >89186 LAMAR STATE COLLEGE for Year 2015 Property Account Property ID: 89186 Legal Description: OUT OF LAKESHORE PARK LT E BLK 154 TR 2 CITY OF PORT ARTHUR 2.200 Geographic ID: 053400-000-174540-00000-3 Agent Code: Type: Real Property Use Code: CS Property Use Description: REAL VACANT SCHOOLS/COLLEGES Location Address: Mapsco: TX Neighborhood: Map ID: 0 Neighborhood CD: Owner Name: LAMAR STATE COLLEGE Owner ID: 212926 Mailing Address: PORT ARTHUR %Ownership: 100.0000000000% PO BOX 310 PORT ARTHUR,TX 77641-0310 Exemptions: EX-XJ Values (+)Improvement Homesite Value: + $0 (+)Improvement Non-Homesite Value:+ $0 (+)Land Homesite Value: + $0 (+)Land Non-Homesite Value: + $8,370 Ag/Timber Use Value (+)Agricultural Market Valuation: + $0 $0 (+)Timber Market Valuation: + $0 $0 (=)Market Value: _ $8,370 (-)Ag or Timber Use Value Reduction:- $0 (=)Appraised Value: _ $8,370 (-)HS Cap: - $0 (=)Assessed Value: _ $8,370 Taxing Jurisdiction Owner: LAMAR STATE COLLEGE %Ownership: 100.0000000000% Total Value: $8,370 Entity Description Tax Rate Appraised Value Taxable Value Estimated Tax 109 PORT ARTHUR INDEPENDENT SCHOOL DISTRICT 1.353140 $8,370 $0 $0.00 235 CITY OF PORT ARTHUR 0.792000 $8,370 $0 $0.00 343 PORT OF PORT ARTHUR 0.156644 $8,370 $0 $0.00 755 SABINE-NECHES NAVIGATION DIST 0.091640 $8,370 $0 $0.00 851 DRAINAGE DISTRICT#7 0.165305 $8,370 $0 $0.00 901 JEFFERSON COUNTY 0.365000 $8,370 $0 $0.00 A59 FARM AND LATERAL ROAD 0.000000 $8,370 $0 $0.00 CAD JEFFERSON CO APPRAISAL DISTRICT 0.000000 $8,370 $0 $0.00 T235 TIF CITY OF PORT ARTHUR 0.000000 $8,370 $0 $0.00 Total Tax Rate: 2.923729 Taxes w/Current Exemptions: $0.00 Taxes w/o Exemptions: $244.72 Improvement/Building No improvements exist for this property. Land # Type Description Acres Sqft Eff Front Eff Depth Market Value Prod.Value 1 COM20 COM20 2.1006 91500.00 305.00 300.00 $7,870 $0 2 Al Acres Style Type 0.1000 4356.00 0.00 0.00 $500 $0 Roll Value History http://propaccess.jcad.org/clientdb/Property.aspx?prop jd=89186 1/2 10/21/2015 Jefferson CAD-Property Details Year Improvements Land Market Ag Valuation Appraised HS Cap Assessed 2016 N/A N/A N/A N/A N/A N/A 2015 $0 $8,370 0 8,370 $0 $8,370 2014 $0 $8,370 0 8,370 $0 $8,370 2013 $0 $8,370 0 8,370 $0 $8,370 2012 $0 $8,370 0 8,370 $0 $8,370 2011 $0 $8,370 0 8,370 $0 $8,370 2010 $0 $8,370 0 8,370 $0 $8,370 2009 $0 $8,370 0 8,370 $0 $8,370 2008 $0 $8,370 0 8,370 $0 $8,370 2007 $0 $8,370 0 8,370 $0 $8,370 2006 $0 $8,370 0 8,370 $0 $8,370 2005 $0 $8,370 0 8,370 $0 $8,370 2004 $0 $8,370 0 8,370 $0 $8,370 2003 $0 $8,370 0 8,370 $0 $8,370 2002 $0 $8,370 0 8,370 $0 $8,370 2001 $0 $8,370 0 8,370 $0 $8,370 Deed History-(Last 3 Deed Transactions) # Deed Date Type Description Grantor Grantee Volume PageNu Number 1 8/29/2013 12:00:00 AM WD WARRANTY DEED PORT ARTHUR HIG LAMAR STATE COL 2013030925 2 1/7/2013 1200:00 AM WD WARRANTY DEED PORT ARTHUR ISO PORT ARTHUR NIG 2013000842 3 4/1/1992 12:00:00 AM WD WARRANTY DEED PORT ARTHUR INC 103080051 Questions Please Call (409)840-9944 Website version:1.2.2.2 Database last updated on:10/20/2015 11:57 PM ©2015 True Automation,Inc.All Rights Reserved. Privacy Notice This site only supports Internet Explorer 6+,Netscape 7+and Firefox 1.5+. http://propaccess.jcad.org/clientdb/Property.aspx?prop id=89186 2/2 INTEROFFICE MEMORANDUM TO: THE CITY OF PORT ARTHUR - PLANNING AND ZONING COMMISSION FROM: RONALD BURTON, DIRECTOR OF DEVELOPMENT SERVICES SUBJECT: P15-09 - PLAT APPROVAL REQUESTED FOR - LAMAR PORT ARTHUR DORMS, PHASE I, PLAT OF 2.204 (CALLED 2.203) ACRES OF LAND OUT OF LAKESHORE PARK, LOT E, BLOCK 154, TR 2, CITY OF PORT ARTHUR, JEFFERSON COUNTY, TEXAS (PROPERTY LOCATED SOUTH OF LAKESHORE DRIVE BETWEEN P.A.LS.D. PROPERTY AND THE LAMAR STATE COLLEGE-PORT ARTHUR MUSIC HALL). DATE: 10/15/2015 BACKGROUND: The Planning and Zoning Commission is being asked to consider a plat for Lamar State College - Port Arthur. The site is located south of Lakeshore Drive between the P.A.I.S. D. Property (formerly known as Woodrow Wilson) and the Lamar State College - Port Arthur Music Hall. This subdivision is located in a Planned Development District - 9 (PD-9) zoned district that allows a dormitory in this location by right. The purpose of this Plat is to create one (1) Tract for the construction of student housing for the State College. Project Name: Lamar Port Arthur Dorms ProposedProperty Address: 1550 Lakeshore Drive Lot Dimension(s): 305' x 316' (96,380 SF) Current Zoning: "PD-9" Planned Development District - 9 Abutting Zoning: North/East/West: "PD-9"Planned Development District- 9 South:Sabine-Neches Waterway On Wednesday, October 7, 2015, two (2) notices were mailed to adjacent property owners within a 200 ft. radius and the notice was published in the Port Arthur News on Sunday, October 4, 2015; more than ten (10) days prior to the P&Z public hearing scheduled October 19, 2015. Owner/Applicant-Lamar State College - Port Arthur Engineer/Surveyor-Soutex Surveyors and Engineers RECOMMENDATION: The planning staff recommends approval. BUDGETARY/FISCAL EFFECT: None STAFFING/EMPLOYEE EFFECT: None SUMMARY: Planning staff recommends approval of this Plat. The plat meets all the city's requirements. 2 c. a • ig p $<Cylig 54 < �a b .... - ill — 0 00 O 585 55 ,2'25 k c -_°I 8 'tig z g 0 QQ $$ ! z fl N u 49 IF?<W o zx '� Ng k uz �a aW�i}}- o 1,,g a a § .- :lit' �2 120. W a� �a .'� 0 xi«rN W<F- I2 " a' ¢ W a ,h )3 124 u / 0~ 2. Gg $' A O C �7H+W.„"2,.... 2j~O ��rz, 42?, g<< ,N� �� Vi § 'Y o'iN a .-g 6 1 ,0 06 y B. 5'4 kW <' oX 4�W�" II L"€ k) , so p va Is.N Uzi EaaS OA,� ga z z No a0 + I-4 M W 8 � rc E-4i eM< WL kaE•y� 'I m Q'" W z 3 :4,,6iF di sZ ^W � vO3 �s .a ;d ' � oaa 7 y 'g = u E y �1 I I °a I rim warnsv. ¢, s mai iU ,1. I 'R- R ko ( IuMlael A 1Lt LI :1. � �� ,LsT 3.eo.eLcc s<13T403) H gds � r 15t. i I• , _ a Ga 01E6,. t w m of VA C E j5y'_ s p R 1 u§ pig `4, i E.: �gg ; •1a t'-1t g g 3- .1 g. .. a i. ,� � 1 $g i-2 4�L WA 3i3 1s ^' 5 S CO 3t/`e. 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' 41,9 snmeigiun IA t - , . - 4...- • ., . , . 144 .,..,,,,J., .i...:.. ...... • --la - , . _ -.22 • . ;,. . ,,, • ‘...,-,,,,,i ,. ,041 i ,. ,... ,. , , r , • _ r.;,. . „,..,..„.1 2' - --'-_f> • • 1-f;..t. - ° I •• • . . 002. , - 4.'''," i 024ambe..........4 • - ' • --N' •.-.4' 4„,, , ..0, S 4"- ,A,;••=2,zinre-f...a'"'77' ;'°Mi.,17-......117.5.t-C,77.77.14-4-,S- -_,..i......2424412,- '''''''. ' . - -4,,, .:1•1",e•L°--*''''.°4-._.--—-"--:-7-I !•-aw fli --_-, -.2.,..-.2. •-- --••------,..°°.....-•°°...,-.7!iiii•41Ai' le0... _,- -,1&201/9" ...„..., -.. .14".,...: .4..2-0-....... 4 §.-34 N.P....41‘cC.g. 2"-AG0 A -.1...*.1-7.10' -43,0.14AiltVagn&fP'4.040.d.44P03 PLANNED DEVELOPMENT DISTRICT - 9 SECTION 1. AREA That the zoning designation of the following described tract of land be and the same is hereby zoned "PD-9", Planned Development-9 District under the provisions of Section 19 and is designated a Historic Landmark District: Lots 1-3, Lions Park and all of Lot D, Block 153 ; Lots 7-12, Block 159; Lots 7-12, Block 160; Lots 4-8, Block 162 ; Blocks 154, 155, 161, 163 - 168, Port Arthur Townsite; Lots 1 - 11, Bledsoe Subdivision No. 1; all of Bledsoe Subdivision No. 2 ; all of that property that lies between the north right-of-way line of Lakeshore Drive and the north line of the Sabine Neches Ship Channel and between the extension of the East right-of-way line of Augusta Ave. and Woodworth Blvd. ;all of Rose Hill Park and being approximately 126 acres of land between Augusta Ave. and Rose Hill Park and between Procter Street and the Sabine Neches Ship Channel. { SECTION 2. PERMITTED USES A. Uses permitted in the Planned Development-9 (PD-9) District are as prescribed in the Use Schedules, Section 7 for: 1. All uses permitted in the "2F", Two Family District. 2 . All of Blocks 153 and 154 and all of that land located between Lakeshore Drive and the Sabine Neches Ship Channel from Augusta Ave. to Lake Charles Ave. shall permit Lamar University at Port Arthur and the Port Arthur Independent School District the following additional uses: a. Buildings and grounds of an educational institution b. Library, art gallery or mu�enm c. Institutions of a charitable or philanthropic nature d. Apartment or dormitory e. Lodge or fraternal organization 3. Double frontage lots located in Blocks 161 and 165 shall be permit the following uses by Specific Use Permit: a. Art Gallery b. Antique Shop c. Boutique shop d. Restaurant Said uses shall be subject to the following conditions: A - 23 1. Use shall be located in a structure in existence on or before January 26, 1981. 2. The residential character of the exterior shall be maintained. 3. Required off-street parking shall be provided in the rear. 4. Specific Use Permit Conditions may include requirements concerning (1) hours of operation (2) fencing (3) signage and (4) landscaping SECTION 3 DEVELOPMENT STANDARDS A. Area Standards The minimum lot area per dwelling unit shall comply with the standards prescribed for the Multiple Family District. B. Building. Setback and Coverage Regulations 1. Lot Width - The minimum lot width for residential buildings shall be fifty (50) feet for single family and two family dwellings and 60 feet for multiple family dwellings. 2. Front Yard - The minimum front yard required for all resi dential structures shall be twenty five (25) feet. Where existing residential structures have less front yard than herein required, the plans for any redevelopment, construction or alteration within the front yard shall be subject to review and action by the Planning and Zoning Commission as a site plan change. Where the existing front yards in any one block have observed a front yard greater than herein specified, any redevelopment, construction or alteration which may extend forward of existing structures shall be subject to review and action by the Planning and Zoning Commission as a site plan change. 3. Side Yard - The minimum side yard required for residential and institutional type buildings shall conform to the requirements for such uses specified for the respective uses in the Multiple family District. 4 . Rear Yard - The minimum required rear yard shall be ten (10) feet. 5. Lot Coverage - The maximum percentage of any lot that may be covered by a residential building shall conform to the requirements specified for the Multiple Family District. C. HEIGHT STANDARDS A — 24 The maximum height of buildings erected for residential pur- poses shall be two and one-half (2 1/2) stories. In Blocks 153 and 154, institutional buildings may be erected to six (6) stories provided that any building exceeding two (2) stories shall be set back from all property lines a minimum distance of one (1) foot for each two (2) feet of building height. D. OFF-STREET PARXING STANDARDS Off-street parking shall conform with the requirements for uses specified in Section 7, except that off-street parking for any apartment dwelling permitted shall be provided at a minimum of one (1) space for each dwelling unit. Where off-street parking is the primary use of a lot or tract, such primary parking uses may be • approved by the Planning and Zoning Commission based upon a site plan showing the layout of parking spaces, points of ingress and egress to the public street,lighting, screening, surfacing, and landscaping. Where the primary off-street parking use is considered to impact adjacent property, screening and special lighting and { landscaping standards may be required. • • E. SIGN STANDARDS • Signs shall conform with the standards specified in the Sign Ordinance for Non-Business Zoning Districts unless varied for eligible properties by Specific Use Permit. F. FENCE AND WALL STANDARDS The use of fences and walls for security, privacy and as part of the architectural treatment of properties is recognized as a permitted accessory use and the location or addition of any new fences or walls shall be subject to the following standards and provisions: 1. No fence or wall shall be erected in front of the main structure except that any such fence or wall which exists may be maintained or redeveloped. 2. All new fences or walls shall be constructed to the standards specified in the Fence Ordinance except as provided below: a. The Planning and Zoning Commission shall review and act on any application to construct a fence or wall and no permit for construction of any fence or wall shall be issued until a "Certificate of Approp- riateness" is approved by the Planning and Zoning Commission on the basis of plans submitted. In re- viewing the plans for any fence or wall, the Planning and Zoning Commission may approve variances from the Fence Ordinance standards if it is found that either of the following factors justify a variance: A - 25 1. That the application of the standards outlined would conflict with a specific architectural feature of the main structure. 2. That more visual screening or security is necessary to insure privacy and the protection of a structure from vandalism or excessive public impact. G. ACCESSORY BUILDINGS Accessory buildings attached to the main buildings shall be considered as part of the main building for purposes of setback and architectural design. Detached accessory buildings shall be constructed to the rear and not closer than ten (10) feet to the main building and shall otherwise comply with Section 23-500. H. PRESERVATION STANDARDS No construction of new structures nor redevelopment of existing structures shall be permitted that will adversely affect the architectural, historical, or cultural environment of PD-9. The issuance of a "Certificate of appropriateness" shall be determined by the fact that the plans and proposed construction comply with at least two (2) of the following three (3) criteria: 1. General Quality of Block - All new or redeveloped structures shall provide an open landscaped front lawn expanse which is in accord with existing lawn areas and open space in the block including side yards. 2. Building Form - All new or redeveloped structures shall be similar in height and width ratio to the existing structures in the block including the size and relationship of porches, wings, colonnades and facades and in the direction, pitch and arrangement of roof lines. 3 . Harmony of Building Treatment - All new or redeveloped structures shall be in harmony as to color, materials, facade design, position of windows and doors and projections with existing structures in the block. The Planning and Zoning Commission may find that the existing structures in any one block lack reasonable uniformity and harmony and on the basis of such findings may approve plans in variance with the foregoing criteria provided that the construction or redevelopment of a structure does not adversely affect the setting or environment of a existing recognized historic landmark structure. A - 26 I. NOISE STANDARDS All uses shall comply with the Residential District noise standards. SECTION 4. CERTIFICATE OF APPROPRIATENESS No building permit for construction or redevelopment within the PD-9 District shall be issued by the Building Official until the Planning and Zoning Commission has approved a "Certificate of Appropriateness" based upon the plans for such construction or redevelopment, The Planning and Zoning Commission shall review the plans and within thirty (30) days of the receipt of the plans shall act to approve or disapprove the plans. In the event of failure to act by the Planning and Zoning Commission within thirty (30) days of receipt of plans or in the event of disapproval of the plans, the applicant may appeal the request for a "Certificate of Appropriate- ness" to the City Council who shall review the request and take action to approve or disapprove the "Certificate of Appropriateness" as the request and facts warrant. • A - 27 r );'''Po }J' � R.: 1 11 � _1 , tC � t } 1 ..... z Ic : t aim : .1 t� t I I I i J 1 M 60�1-112!;11 " l y - * ler - SC - II I rw. ' IIVP,s0. . V IQ 161 " per-_, 111.114 1 i 1 1 ,. -=i : 0 --3- v s ; -t-Zg n FR LI,: . al Fr I:11FM AR .. 1 , . ,.., } ;CI � . '; � � � �. - -ter _ I .. . . E rn i " .:' lli a, -- ...4 M. Ell ErE4 fil Efi v eci _LEE ,,. lii, 1, , . . . _ . 7 i 7. E33 41 - M -- IN - - ♦,1 u s.«iai . ,_, / p-gt\• ,,.- .„.- r,_, trf - ' .- - 1 • X i 4 .e.. ,:.. ar.L.at.. i .t..r ? c 1 • , 1. z..za ark» : u: .• •'r77t Sc; ,i i 11.a1r.::-.,i• -. .7.;4..t4.1 •• . 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