Res 040-2006 3/7/2006 RESOLUTION NO. �O ' �� �
RESOLUTION APPROVING AN AMENDMENT TO THE NON-
ANNEXATION AGREEMENT WITH PPG INDUSTRIES,
INCORPORATED, GUARANTEEING ITS IMMUNITY FROM
ANNEXATION FOR A PERIOD OF SIX YEARS BEGINNING JANUARY
1, 2006; FINDING AND DETERMINING THAT THE MEETING AT
WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE
PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City of Wichita Falls entered into a fifth generation
non-annexation agreement with PPG Industries, Incorporated for a period of seven
years from January 1, 2003; and
WHEREAS, this agreement was amended effective January 1, 2005 to allow for
the value of new improvements (Coater Facility) to be assessed a payment in lieu of tax
at 25% of total assessed property value; and
WHEREAS, PPG Industries is planning to make an additional expansion to its
facility that would resutt in an additional capital investment of approximately $6.5 million
for a tempering furnace and associated material handling equipment; and
WHEREAS, the City of Wichita Falls desires to modify the agreement to provide
an economic incentive for this expansion such that the value of the new construction be
assessed a payment in lieu of tax at 25% of total assessed property value.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. The City Manager is hereby authorized to enter into a non-
annexation agreement with PPG Industries, Incorporated, a copy of which is attached
hereto.
SECTION 2. It is hereby officially found and determined that the meeting at
which this resolution was passed was open to the public as required by law.
PASSED AND APPROVED this the 7th day of March, 2006.
AYOR
ATTEST:
�
y Clerk
STATE OF TEXAS §
COUNTY OF WICHITA §
NON-ANNEXATION CONTRACT
WITH PPG INDUSTRIES, INC.
This contract made and entered into by and between the City of Wichita Falls,
Texas, a municipal corporation, hereinafter called "City", and PPG Industries, Inc.,
hereinafter called "PPG".
WITNESSETH :
WHEREAS, PPG is the owner of a certain tract of land, (hereinafter called
"Subject Property") located in Wichita County, Texas, said land being more fully
described in Exhibit A, which is attached hereto and incorporated herein, and which
includes land located within the City's extraterritorial jurisdiction.
NOW, THEREFORE, for and in consideration of the mutual covenants
hereinafter contained to be performed by the parties hereto, City and PPG do hereby
agree as follows:
1. City guarantees the continuation of the extraterritorial
status of Subject Property, and its immunity from annexation by the
City, for a period of six (6) years from January 1, 2006.
2. City will furnish water and sewer service to PPG for that
portion of the Subject Property described in Exhibit A at rates equal to
100% of the rates charged to users located within the City limits
throughout the term of this contract. These services shall be subject to
the ordinances of the City presently existing and as may be hereinafter
amended.
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3. City will furnish fire protection services to PPG on Subject
Property throughout the term of this contract.
4. PPG shall not allow the sale of fireworks on Subject
Property.
5. PPG will pay to the City each year during years one
through three of this contract, as payment in lieu of all taxes, an
amount in cash, or cash equivalents acceptable to City, equal to (1)
90% of the amount that its normal City taxes would have been for that
year had it been within the City limits for all property described in
Exhibit B "Existing Improvements", and (2) 90% of the taxable value of
any leased property for all property described in Exhibit B "Existing
Improvements". The appraised value of the land, buildings and other
improvements, machinery, equipment, inventory, and other personal
property shall be determined by the Wichita County Appraisal District
each year as set forth in the Texas Property Tax Code, as amended.
6. PPG will pay to the City each year during years four
through six of this contract, as payment in lieu of all taxes, an amount
in cash, or cash equivalents acceptable to City, equal to (1) 100% of
the amount that its normal City taxes would have been for that year
had it been within the City limits for all property described in Exhibit B
"Existing Improvements", and (2) 100% of the taxable value of any
leased property for all property described in Exhibit B "Existing
Improvements". The appraised value of the land, buildings and other
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improvements, machinery, equipment, inventory, and other personal
property shall be determined by the Wichita County Appraisal District
each year as set forth in the Texas Property Tax Code, as amended.
7. PPG will pay to the City each year during the six (6)
years of this contract, as payment in lieu of all taxes, an amount in
cash, or cash equivalents acceptable to City, equal to (1) 25% of the
amount that its normal City taxes would have been for that year had it
been within the City limits for all property described in Exhibit C "New
Improvements" and (2) 25% of the taxable value of any leased
property for all property described in Exhibit C "New Improvements".
The appraised value of the land, buildings and other improvements,
machinery, equipment, inventory, and other personal property shall be
determined by the Wichita County Appraisal District each year as set
forth in the Texas Property Tax Code, as amended.
8. Each annual payment shall be billed by the City and be
due and payable upon receipt. To assist the Wichita County Appraisal
District with the annual appraisal, PPG shall provide the following
information to the Wichita County Appraisal District on or before April
15th of each year for all property described in Exhibit B and C:
• A renderingof the property in accordance with applicable law.
p p Y Pp
• Records of the total cost, year of acquisition, description of each
asset and its use. At a minimum, this information should include
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a property description, and asset number (if applicable) and the
date the property was placed in service or removed.
• Information regarding any property on the premises that is
cosigned or leased. At a minimum, this information should
included the beginning and ending dates of each lease
agreement, the cost of the property to which each agreement
pertains, the name and addresses of the parties to each
agreement, asset numbers (if applicable), the party responsible
for property taxes on each agreement, and the termination
provisions of each agreement.
9. PPG shall dispose of all the municipal and industrial solid
waste (but not hazardous waste or industrial Class I solid waste) that is
being removed from the Subject Property for disposal at a landfill ("the
landfill") owned and operated by the City. PPG shall use no other
landfill for the disposal of its municipal and industrial solid waste during
the term of this contract, but PPG is free to reuse, recycle or reclaim its
waste.
PPG shall pay the City a disposal rate of Twenty Five ($25.00)
Dollars per ton for all waste deposited in the City landfill. The City shall
have the right to request from PPG at any time during the term of this
contract an adjustment in the disposal rate, and the rate may be
adjusted in the event of a material change in the operating costs of the
City due to or as a direct result of revised federal or state laws, ad
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valorem taxes, governmental fees and regulations or unforeseen
increases in fuel costs. The City shall have the right to petition PPG
for these unusual cost adjustments and shall provide PPG with
documents and records in any reasonable form and sufficient detail to
reasonably establish the necessity of any requested rate adjustment at
the time of the request.
10. PPG shall be required to obtain a buildingpermit from the
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City for new structures proposed for construction for property
described in Exhibit C. The City shall waive the building permit fee for
this new construction.
11. In the event that PPG should breach any of the
provisions of this contract, and it fails to remedy such breach within 30
days after having been notified in writing by City to do so, then City
shall have the right to terminate this contract, and to proceed to annex
Subject Property, provided that City shall not have the right to
terminate this contract if PPG has in good faith disputed any alleged
breach.
12. The City shall initiate proceedings to annex Subject
Property into the City limits early enough to be able to complete such
proceedings by December 31, 2011 , and Subject Property shall be
included on the tax rolls of the city on January 1, 2012. City shall notify
PPG in writing 30 days prior to initiating such proceedings.
13. This contract shall be effective January 1, 2006.
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14. Nothing in this contract shall limit or in any way restrict
PPG's ability to appeal any appraisal made by the Wichita County
Appraisal District. This contract shall inure to the benefit of PPG's
assigns or successors in interest to Subject Property.
15. This contract repeals and replaces any previous non-
annexation agreement between the parties.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be
executed by their duly authorized officers on this '1 day of
44,c-tt , 2006.
CI OF WICHITA F
By: n _
Darron eL iker, ('� " Mauer
V
ATTEST:
( City Clerk
V
APPR VED AS TO FORM:
City Attorney
PP NDUSTRI N
By:
ATTEST:
6—CL
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EXHIBIT A
Bacon Switch Addition, Block 1, a subdivision containing 490.46 acres, more or less,
out of the Thomas Curry Survey, Abstract 345, in Wichita County, Texas, according to
the plat of said subdivision recorded in Volume 21, Page 49 of the Plat Records of
Wichita County, Texas.
All of that lot, tract and parcel of land out of the Thomas Curry Survey, A-345, Wichita
County, Texas, and being specifically described by metes and bounds as follows:
Beginning at the occupied Northwest corner of the Thos. Curry Survey, A-
345, being the Northwest corner of this tract;
Thence South 89°59' 00" East 2809.33 feet along the Centerline of East
Road and the North line of the Thos. Curry Survey to a point in the West
line of the Missouri-Kansas-Texas (M-K-T) Railroad for the Northeast
corner of this tract;
Thence South 15° 26' 00" East 5925.37 feet along the West line of said M-
K-T Railroad to a point for the Northeast corner of the F. Evert 3 Acre tract
as recorded in Vol. 578, Page 389, Wichita County Deed Records, for the
most Easterly Southeast corner of this tract;
Thence North 89° 38' 00" West 753.44 feet to the Northwest corner of said
F. Evert 3 Acre Tract for an ell corner of this tract;
Thence South 01° 10' 00" West 232.40 feet to a point in the centerline of
Bacon Switch Road for the most Southerly Southeast corner of this tract;
Thence West 3624.40 feet along the centerline of Bacon Switch Road to a
point in the West line of the Thos. Curry Survey for the Southwest corner
of this tract;
Thence North 00° 02' 00" West 5941 .00 feet along the West line of the
Thos. Curry Survey to the Place of Beginning and containing 490.46
acres, more or less, and also described as Block 1 of the Bacon Switch
Addition, an addition to Wichita County, Texas
EXHIBT B "EXISTING IMPROVEMENTS"
Exhibit "B" improvements are within the boundaries of Exhibit "A". The PPG Glass
Production Facility consisting of melting, forming, processing, storage, and shipping of
flat glass. The 1 ,308,528 square foot multi building facility is confined within a fenced
off area of 83 acres inside the subdivision of Exhibit "A".
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EXHIBT C "NEW IMPROVEMENTS"
Exhibit "C" new improvements are within the boundaries of Exhibit "A" and located
adjacent to Exhibit "B" northeast perimeter. The improvements include the PPG Glass
Coater Facility consisting of coating equipment and glass storage in a 160,000 square
foot building and a New Tempering Furnace and Associated Material Handling
Equipment. This will include glass loading equipment, conveyors, glass washer,
TAMCO furnace and quench section, and unload equipment.
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