HomeMy WebLinkAboutPR 19297: INTERLOCAL AGREEMENT WITH SABINE-NECHES NAVIGATION DISTRICT P.R. NO. 19297
02/02/16 ht
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO
AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF PORT ARTHUR,
TEXAS, AND SABINE-NECHES NAVIGATION DISTRICT, RELATING TO
THE CITY OF PORT ARTHUR' S DOWNTOWN TAX INCREMENT
REINVESTMENT ZONE NO. 1
WHEREAS, per Ordinance No. 12-75 , the City Council, acting
under the provisions of Chapter 311, Texas Tax Code, including
Section 311 . 005 (a) , designated as a reinvestment zone, and created
and designated a reinvestment zone over the area described in
Exhibit "A" to promote the redevelopment of the area and named for
identification as "Tax Increment Reinvestment Zone No. 1" (TIRZ
No. 1 (Downtown TIF) , which also may be referred to as the Downtown
Tax Increment Reinvestment Zone; and,
WHEREAS, per Ordinance No. 13-10, the City Council adopted the
final Project and Reinvestment Zone Financing Plan which was
previously adopted by the Downtown Reinvestment Board No. 1 on
February 7, 2013 ; and,
WHEREAS, on April 14 , 2015, the Sabine-Neches Navigation
District approved the Interlocal Agreement with the City of Port
Arthur, Texas, relating to Downtown Tax Increment Reinvestment Zone
No. 1, attached hereto as Exhibit "B" ; and,
WHEREAS, pursuant to Ordinance 15-55, the City of Port Arthur
reduced the boundaries of TIRZ No. 1 (Downtown TIF) to remove a
portion (2 . 204 acres) of property as designated in Exhibit "C" from
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the Tax Increment Reinvestment Zone that is owned by Lamar State
College- Port Arthur.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1 . That the facts and opinions in the preamble are
true and correct .
Section 2 . That the City Manager is herein authorized to
enter into an Interlocal Agreement between the City of Port Arthur,
Texas, and Sabine-Neches Navigation District relating to the City
of Port Arthur' s Downtown Tax Increment Reinvestment Zone No. 1
(TIRZ No. 1 (Downtown TIF) ) , in substantially the same form as
attached hereto as Exhibit "B" .
Section 3 . That a copy of the caption of this Resolution
shall be spread upon the Minutes of the City Council .
READ, ADOPTED, AND APPROVED, this day of ,
2016 AD, at a Regular Meeting of the City Council of the City of
Port Arthur, Texas by the following vote: AYES :
Mayor:
Councilmembers : ;
NOES : .
Deloris Prince,
Mayor
s.pr.19297
ATTEST:
Sherri Bellard,
City Secretary
APPROVED AS TO FORM:
\i‘j (2)
Valeciaize o
City Attorne
APPROVED FOR ADMINISTRATION:
Brian McDougal,
City Manager
s.pr.19297
EXHIBIT "A"
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Downtown Reinvestment Map Boundaries
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INTERLOCAL AGREEMENT
BETWEEN THE
CITY OF PORT ARTHUR, TEXAS
AND
SABINE-NECHES NAVIGATION DISTRICT
RELATING TO
CITY OF PORT ARTHUR, TEXAS
DOWNTOWN TAX INCREMENT REINVESTMENT ZONE NO. 1
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
INTERLOCAL AGREEMENT
BETWEEN SABINE-NECHES NAVIGATION DISTRICT AND
THE CITY OF PORT ARTHUR RELATED
TO PORT ARTHUR TEXAS TAX INCREMENT REINVESTMENT ZONE NO. 1
THIS INTERLOCAL AGREEMENT ("Agreement") is made by and between the
CITY OF PORT ARTHUR, TEXAS (the "City"), a home rule municipality of the State of
Texas, acting by and through its governing body,the City Council, and SABINE-NECHES
NAVIGATION DISTRICT ("Navigation District"), acting by and through its governing body,
Board of Commissioners. This Agreement is made pursuant to Chapter 791 of the Texas
Government Code and Chapter 311 of the Texas Tax Code for the participation of the City and
Navigation District in REINVESTMENT ZONE NUMBER ONE, CITY OF PORT
ARTHUR, TEXAS (the "Reinvestment Zone"), a reinvestment zone to be created by the City
pursuant to Chapter 311 of the Texas Tax Code.
RECITALS:
The City, on November 9, 2012, designated the Reinvestment Zone in the area more
particularly described in the attached Exhibit A and on the map attached hereto as Exhibit B.
The Reinvestment Zone consists of approximately 372 acres of land.
The general purpose of the Reinvestment Zone is to promote the redevelopment of the
property in the Reinvestment Zone and in surrounding areas in the City and Navigation District
pursuant to the tax increment finance provisions of Section 311.005(a)(1), (2) and (4) of the
Texas Tax Code. The specific purpose of the Reinvestment Zone is to provide a financing
mechanism to pay for a portion of the costs associated with certain water, wastewater,
roads/drainage and reclaimed water improvements within the Reinvestment Zone as set forth in
Exhibit C (the Project"). The purposes of the Project are to improve economic development and
to enhance the quality of living conditions within the City of Port Arthur.
The financial plan for the Project is for the Developer to provide construction for the
Project and for the City, with assistance from Navigation District as provided in this Agreement,
to reimburse the Developer for a portion of the Project Costs from tax increment revenues
derived from increases in property values resulting from new development in the Reinvestment
Zone.
The City and Navigation District wish to provide in this Agreement for Navigation
District to make payments to the City of a portion of Navigation District's tax increment
revenues derived from increases in property values resulting from new development in the
Reinvestment Zone, which payments are to be used by the City to reimburse the Developer for a
portion of the Project Costs under the terms and conditions described in this Agreement.
AGREEMENT:
In consideration of the mutual covenants and agreements contained herein, as well as
other good and valuable consideration,the receipt and sufficiency of which is hereby •
acknowledged, the City and Navigation District agree as follows:
SECTION 1. Definitions.
In this Agreement:
A. Captured appraised value for a year means the total appraised value of all real
property taxable by the City or Navigation District and located in the Reinvestment Zone for that
year, less the respective tax increment base of the City or Navigation District.
B. Developer will be the apartment owners, commercial business, industrial
development organizations, economic development organizations and related organizations who
commit to spending a minimum of FIFTY THOUSAND ($50,000.00) DOLLARS for economic
development improvements within the Project Zone.
C. Project means, initially,the Project as set forth in Exhibit C. The public
improvements constituting the Project may be revised or supplemented by amendments to the
Project Plan that are adopted by the Board of Directors of the Reinvestment Zone and approved
by the City Council of the City from time to time.
D. Project Plan means the Project Plan and Reinvestment Zone financing plan for the
Reinvestment Zone adopted by the Board of Directors of the Reinvestment Zone and approved
by the City Council of the City, and amendments to these plans that are adopted by the Board of
Directors of the Reinvestment Zone and approved by the City Council of the City from time to
time. By entering this Agreement,Navigation District is not obligating itself to directly fund or
construct or repair any infrastructure within the Zone and all such expenses will be borne by the
Board.
E. Tax increment for a year means the amount of property taxes levied and collected
by the City or Navigation District for that year on the captured appraised value of real property
taxable by the City or Navigation District and located in the Reinvestment Zone.
F. Tax increment base means the total appraised value of all real property taxable by
the City or Navigation District and located in the Reinvestment Zone for the year 2012 according
to the certified Jefferson County Tax Roll.
G. Tax Increment Fund means the tax increment fund created by the City for the
Reinvestment Zone.
H. Terms other than those defined above shall have 1)their meanings as given in
Chapter 311, Texas Tax Code, or 2) if not so defined,their usual and ordinary meanings.
I. References to state statutes shall include amendments to those statutes that are duly
enacted from time to time.
SECTION 2. Obligations of Navigation District.
A. Payments to the City. Navigation District agrees to make payments to the City
during the term of this Agreement, for deposit in the Tax Increment Fund, in the amount of 20%
of the tax increment attributed to the captured appraised value of Navigation District in the
Reinvestment Zone. Navigation District's obligation to make these payments will accrue only as
taxes on the captured appraised value are collected by Navigation District. Payments shall be
due on May 1 of each year during the term of this Agreement. No interest or penalty will be
charged to Navigation District for any payments made by Navigation District based on
collections that occur after this due date; however,Navigation District will pay to the City, for
deposit in the Tax Increment Fund, 20% of any penalty or interest received by Navigation
District on any delinquent taxes on the captured appraised value of Navigation District.
Navigation District may offset against future payments to the Tax Increment Fund any portion of
payments to the City under this Agreement that Navigation District subsequently refunds to
taxpayers pursuant to the provisions of the Texas Tax Code.
B. Limitations on Payments. Navigation District is not obligated to make payments
under this Agreement 1) unless and until taxes on the captured appraised value are actually
collected by Navigation District, or 2) from any source other than taxes actually collected on
Navigation District's captured appraised value, or 3) from any Navigation District taxes or
revenues other than taxes actually collected on the Navigation District's captured appraised
value. Notwithstanding any provisions contained herein, this Agreement is expressly contingent
upon the availability of funds for each obligation herein for the term of this Agreement and any
extension thereto. In.the event that either no funds or insufficient funds are appropriated for the
payments due under this Agreement for the period covered by such budget or appropriation,the
contract shall terminate without penalty to Navigation District.
C. Expansion of the Reinvestment Zone; Supplemental Projects. Navigation
District's obligation to make payments under this Agreement is limited to Navigation District's
captured appraised value on property in the Reinvestment Zone as described in this Agreement.
Navigation District is not obligated to make payments based on the addition of property to the
Reinvestment Zone unless Navigation District specifically agrees to do so by amendment to this
Agreement. Navigation District's obligation to make payments under this Agreement is also
limited to use by the City for partial reimbursement of the Project Costs, as described herein.
Navigation District is not obligated to make payments towards the costs of any other
improvements unless Navigation District specifically agrees to do so by amendment to this
Agreement. Any member of the Commissioners of Navigation District may review and provide
comments to the Board of Directors of the Reinvestment Zone or the City Council of the City on
any proposed expansion of the Reinvestment Zone or amendment to the Project Plan prior to its
approval by the City Council.
D. Navigation District's Appointment to Board of Directors of the Reinvestment
Zone. Pursuant to the provisions of Section 311.009(a), Texas Tax Code,the Commissioners
4
Navigation District shall have the unequivocal right during the term of this Agreement to appoint
and remove, at its sole discretion, a qualified person to serve as a voting member of the Board of
Directors of the Reinvestment Zone. Failure of the Board of Commissioners of Navigation
District to appoint a person to the Board of Directors of the Reinvestment Zone shall not be
deemed a waiver of Navigation District's right to make an appointment at a later date. The
Board of Commissioners of Navigation District will make best faith efforts to appoint a qualified
person to serve on the Board of Directors, and to fill vacancies in this position as needed.
SECTION 3. Obligations of the City.
A. Initial Project Plan. The City agrees that the Project, as described herein will
comprise the Project in the initial Project Plan to be adopted by the Board of Directors of the
Reinvestment Zone and approved by the City Council of the City. The City agrees that the
Reinvestment Zone financing plan in the initial Project Plan to be adopted by the Board of
Directors of the Reinvestment Zone and approved by the City Council of the City shall provide
for use of Navigation District's payments under this Agreement solely to reimburse the
Developer for a portion of the Project Costs.
B. Use of Navigation District Payments. The City agrees to use payments made by
Navigation District under this Agreement solely to reimburse the Developer for Project Costs.
C. Notice to Navigation District of Amendments to Project Plan. The City agrees
to provide Navigation District with written notice of any proposed amendments to the Project
Plan at least 14 days prior to their submission to the City Council for approval. The City agrees
to work with the Reinvestment Zone Board of Directors to implement the Project Plan.
D. Disposition of Tax Increments. Upon termination of the Reinvestment Zone, and
after all obligations of the Reinvestment Zone have been paid, the City agrees to pay to
Navigation District, within 60 days of the termination, all monies remaining in the Tax
Increment Fund that represent Navigation District's pro rata amount of participation authorized
under this Agreement.
E. Annual Reports. The City agrees to provide to Navigation District an annual
report regarding the Reinvestment Zone as required under Texas Tax Code Section 311.016.
F. Audits—Redevelopment Authority. In the event the City creates a redevelopment
authority in connection with the Reinvestment Zone, the City shall provide to Navigation
District a copy of each of the audits required by the agreement between the City, the
Reinvestment Zone and any such redevelopment authority within 30 days of receipt of each
audit.
SECTION 4. Term and Termination.
A. Agreement Term. This Agreement will take effect only upon designation of the
Reinvestment Zone by ordinance of the City and will be in effect for the earlier of 1)thirty(30)
years from the date of the designation of the Reinvestment Zone or 2)the date the Developer is
reimbursed the Project Costs, unless earlier terminated by the parties hereto. Nothing in this
Agreement limits the authority of Navigation District or City to extend the term of this
Agreement. Upon termination of this Agreement,the obligation of Navigation District to make
payments to the City shall end; however, any refund obligations of the City shall survive the
termination.
B. Early Termination of Reinvestment Zone. The City may terminate the
Reinvestment Zone pursuant to the provisions of Section 311.017 of the Texas Tax Code or at
any time there is a breach by the other party. The party desiring to terminate this Agreement
may do so upon giving thirty(30) days' written notice to the other party.
C. Interpretation. The parties acknowledge and confirm that this Agreement has
been entered into pursuant to the authority granted under the Interlocal Cooperation Act, Chapter
791 of the Texas Government Code. All terms and provisions hereof are to be construed and
interpreted consistently with that Act.
D. Invalid Provisions. Any clause, sentence, paragraph or article of this Agreement
which is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable
in any respect shall not be deemed to impair, invalidate, or nullify the remainder of this
Agreement if the Agreement can be given effect without the invalid portion.
E. Applicable Laws. This Agreement shall be construed in accordance with the laws
of the State of Texas. All obligations hereunder are performable in Jefferson County, Texas, and
venue for any action arising hereunder shall be in Jefferson County, Texas.
F. Authorization; Funding. Each party hereto acknowledges and represents that this
Agreement has been duly authorized by its respective governing body, and that funding from
each party for the performance of this Agreement will be provided from current revenues
available to the parties.
G. Notices. Notices required by this Agreement will be provided by the parties to one
another by certified mail, return receipt requested, or by confirmed facsimile transmission,to the
following address/fax numbers:
CITY: SABINE-NECHES NAVIGATION DISTRICT:
City Manager, City of Port Arthur Board of Commissioners
P. O. Box 1089 P. O. Box 778
Port Arthur TX 77641 Nederland TX 77627
H. Non-Waiver. Failure of any party hereto to insist on the strict performance of any
of the agreements herein or to exercise any rights or remedies accruing hereunder upon default
or failure of performance shall not be considered a waiver of the right to insist on, and to enforce
by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise
any right or remedy occurring as a result of any future default or failure of performance.
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I. Successors. This Agreement shall bind and benefit the parties and their legal
successors. This Agreement does not create any personal liability on the part of any officer or
agent of the City or the Reinvestment Zone or any officer, agent or employee of Navigation
District.
J. No Waiver of Immunity. No party hereto waives or relinquishes any immunity or
defense on behalf of itself, its officers, employees, and agents as a result of its execution of this
Agreement and performance of the covenants contained herein.
K. Third Party Beneficiary. The parties agree that Developer and its successors and
assigns shall have the right to enforce as a third party beneficiary Section 2.A. against
Navigation District for any breach of its contractual obligations thereunder, as well as Section
5.B. and this Section 5.K.
IN WITNESS HEREOF, the City and Navigation District have made and executed this
Agreement in multiple copies, each of which is an original.
CITY OF PORT ARTHUR
City Manager
Date
ATTEST/SEAL:
City Secretary
Date
APPROVED AS TO FORM AND LEGALITY:
City Attorney
SAB E-NECHES NAVIGATION DISTRICT:
I III-1 WI'S
Date
er
ATTES . :
1 l \4, 20\6
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EXHIBIT "C"
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