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Res 184-94 11/15/1994RESOLUTION NO. 1N-C444 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, APPROVING A NON-ANNEXATION AGREEMENT WITH HOWMET CORPORATION, GUARANTEEING ITS IMMUNITY FROM ANNEXATION FOR A PERIOD OF SEVEN YEARS BEGINNING JANUARY 1, 1995, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF SAID AGREEMENT; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS DISCUSSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, by Resolution Number 2230, the City Council of the City of Wichita Falls designated a certain tract of land in the Thomas Curry Survey, Abstract 345 in Wichita County, as an industrial district, in accordance with the provisions of Section 42.044 of the Texas Local Government Code; and, WHEREAS, Howmet Corporation, the owner of said tract of land, has requested an extension of its non-annexation agreement with the City for said tract of land. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS: SECTION 1. That the City Manager be and is hereby authorized to execute a renewal of the non-annexation agreement with Howmet Corporation, in accordance with the terms and conditions of said agreement, attached hereto and made a part hereof for all purposes. 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 15th day •f November, '94. M A Y O ATTEST: City Clerk STATE OF TEXAS § COUNTY OF WICHITA § NON-ANNEXATION CONTRACT WITH HOWMET CORPORATION This contract, made and entered into by and between the City of Wichita Falls, Texas, a municipal corporation, hereinafter called "City, " and Howmet Corporation, hereinafter called "Howmet, " WITNESSETH: WHEREAS, Howmet is the owner of a certain tract of land containing 66 acres, more or less, hereinafter called "Subject Property, " being a part of the Thomas Curry Survey, A-345, Wichita County, Texas, more fully described by metes and bounds in Exhibit A, which is attached hereto and incorporated herein, and which land is located within City's extraterritorial jurisdiction; and, WHEREAS, the City Council of City did, by Resolution No. 2230, designate Subject Property as an industrial district, and approved a non-annexation agreement with the Wichita Falls Board of Commerce and Industry, who then owned such property. Subsequently, the Board of Commerce and Industry sold Subject Property to Howmet, and assigned to Howmet the non-annexation agreement, which was dated September 20, 1978 ; and, WHEREAS, by Resolution No. 120-88 , the City Council approved an extension agreement dated May 31, 1988, which was 2 executed by City and Howmet, and it extended the non- annexation agreement to December 31, 1994 ; and, WHEREAS, an industrial plant has been constructed on Subject Property, and said plant is owned and operated by Howmet; and, WHEREAS, Howmet has requested a renewal of this non- annexation contract, and the City Council of City has, by Resolution No. 15341 9 approved authorized and this contract, which it deems to be in the best interest of City. NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained to be performed by the parties hereto, City and Howmet do hereby agree as follows: 1. City guarantees the continuation of the extraterritorial status of Subject Property, and its immunity from annexation by City, for a period of seven (7) years, from January 1, 1995. 2 . City will furnish water service to Howmet on Subject Property at rates equal to 105% of the rates charge users located within the City limits during the term of this contract. In the event City's City Council completely eliminates the standard out-of-City additional charge established by ordinance, Howmet shall thereafter pay the same rates charged to users within the City limits. 3 . City will furnish sanitary sewer service to Howmet on Subject Property at rates equal to 105% of the rates charged to users located within the City limits during the 3 term of this contract. In the event City's City Council completely eliminates the standard out-of-City additional charge established by ordinance, Howmet shall thereafter pay the same rates charged to users within the City limits. 4 . The water service and sanitary sewer service provided to Howmet by City shall be subject to the ordinances of City as presently existing and as may be hereinafter amended. 5. City will furnish fire protection service to Howmet on Subject Property. 6. Howmet shall not allow the sale of fireworks on Subject Property. 7 . Howmet will pay to City each year during the seven (7) years of this contract, as payment in lieu of taxes, an amount in cash, or cash equivalents acceptable to City, equal to 65% of that amount that their normal City taxes would have been that year had they been in the City limits. Each annual payment shall be made between October 15 and December 31 of each year; the first such payment in lieu of taxes shall be payable between October 15 and December 31 of 1995. In computing the amount that their normal City taxes would be each year during this contract, the following rules shall be applied: a. The appraised value of the land shall be an amount equal to 100% of the 1995 appraised value of such land made by the Wichita County Appraisal District. 4 b. The appraised value of the presently existing buildings and other improvements owned, leased or existing within Exhibit A, shall be, throughout the term of this contract, an amount equal to 100% of the 1995 appraised value of such buildings and improvements made by the Wichita County Appraisal District. The appraised value of all buildings and other improvements constructed on Subject Property after January 1, 1995, shall be an amount equal to 100% of the appraised value of such buildings and improvements made by the Wichita County Appraisal District when such buildings and improvements are completed; the same appraised value shall be used for subsequent years of this contract. The appraised value for any year or years when the construction is in progress shall be 100% of the appraised value of such buildings and improvements made by the Wichita County Appraisal District for that year or years. The appraised value of all buildings an other improvements which are subsequently razed or removed from the premises shall be deleted from the appraised value of the buildings and other improvements under this contract. If any buildings or improvements are constructed, or are razed or removed, on or from Subject Property during a calendar year of this contract, Howmet shall inform City's Tax Assessor-Collector of this fact, together with the appraised value of such buildings or improvements, no later than May 15 of the following calendar year. 5 c. The appraised value of the present machinery, equipment and other personal property except for inventory shall be, throughout the term of this contract, an amount equal to 100% of the 1995 appraised value (less depreciation allowances) of such machinery, equipment and other personal property made by the Wichita County Appraisal District. The appraised value of any new machinery, equipment and other personal property except for inventory which may be acquired after January 1, 1995, shall be an amount equal to 100% of the appraised value (less depreciation allowances) of such machinery, equipment and other personal property made by the Wichita County Appraisal District; this same appraised value shall be used for subsequent years of this contract. The appraised value of all machinery, equipment or other personal property which is subsequently scrapped or removed from the premises shall be deleted from the appraised value of the machinery, equipment and other personal property under this contract. If any new machinery, equipment or other personal property except for inventory is acquired, or is scrapped or removed, on or from Subject Property during a calendar year of this contract, Howmet shall inform the City's Tax Assessor- Collector of this fact, together with the appraised value of such machinery, equipment or other personal property, not later than May 15 of the following calendar year. 6 d. The appraised value of the inventory shall be determined in the same manner that the inventory of other firms in the City are appraised, less the freeport exemption. e. Each year the then-current tax rate as established by the City Council shall be applied to the appraised value (as determined under a. through d. above) to obtain the amount that the normal City taxes would have been that year had the property been located within the City limits. The payment in lieu of taxes shall be 65% of the amount so computed. 8 . This contract does not release nor waive any obligation to the City in connection with any paving, curb and gutter, or other improvement liens which may be assessed against Subject Property. 9. Howmet shall not assign this contract, nor sell nor lease Subject Property or any part thereof, without the written consent of City; except, no consent shall be required for any mortgage or collateral assignment in connection with financing the purchase or construction of improvements located on Subject Property and which are supplementary to the industrial plant located thereon. Such written consent shall not be unreasonably withheld so long as such assignment is consistent with the purposes of City's industrial non- annexation policy. One of the reasons City originally entered 7 into a non-annexation agreement regarding Subject Property was to encourage Howmet and its predecessor to construct this industrial plant at this location; should Howmet sell or lease any of the unimproved portions of Subject Property for some use not related to this industrial plant, and which is inconsistent with the purpose of City's industrial non- annexation policy, City may terminate this contract insofar as it relates to those portions of Subject Property devoted to such incompatible use. This contract shall be binding upon and inure to the benefit of the successors and assigns (as permitted) of each party hereto. 10. In the event Howmet should breach any of the provisions of this contract, and fail to remedy such breach within thirty (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. 11. City shall initiate proceedings to annex Subject Property within the City limits early enough to be able to complete such proceedings by December 31, 2002 , and Subject Property shall be included on the tax rolls of City on January 1, 2003 . 12 . This contract shall be effective as of January 1, 1995. 8 IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed by their duly authorized officers on this the 6�h day of Nov ember , 1994 . ity of Wichita s, Texas B •( , /Berzin'a , City Mxfi,§er Attest: WHO h(MAJA) 0 City Clerk Approved as to Fo • /t Assi1 fit:City Attorney COI-PA -a tiles( 7�irt Howmet Wombs By: / vice .r`•ent Attest: A-1 -1‘1 04,sckr: Secretary r ' , 9 EXHIBIT A A tract of land out of the Thomas Curry Survey, A-345, Wichita County, Texas, and being more specifically described by metes and bounds as follows: BEGINNING at the point of intersection of the West right- of-way line of a 50 foot wide County Road and the centerline of bacon Switch Road, said point bears West 360. 00 feet from the Northwest corner of Section 39 , H. & H. G. R. R. Co. Survey, A-161, and an ell corner of said Thomas Curry Survey, for the Northeast corner and place of beginning of this description; THENCE West 2 , 100. 00 feet along said centerline of Bacon Switch Road to a point for the Northwest corner of this tract; THENCE South 1, 264 . 01 feet to a point for the Southwest corner of this tract; THENCE East 2 , 448 . 96 feet to a point in said West right- of-way line of County Road for the Southeast corner of this tract; THENCE North 15° 26' West 1, 311. 29 feet along said West right-of-way line of a 50' County Road to the Place of Beginning and containing 66. 00 acres, more or less. This tract of land is also described as Bacon Switch Addition, Block 2 , according to the plat of said subdivision recorded in the Plat Records of Wichita County, Texas.