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Res 188-92 12/15/1992Resolution No. /Id ' 7 RESOLUTION APPROVING NON-ANNEXATION CONTRACT WITH HOWMET CORPORATION GUARANTEEING ITS IMMUNITY FROM ANNEXATION FOR A PERIOD OF SEVEN (7) YEARS BEGINNING JANUARY 1, 1993. WHEREAS, by Resolution No. 2927, the Board of Alderman of the City of Wichita Falls designated a certain tract of land known as Lot 1, Block 27, Kemp & Newby Subdivision as an industrial district in accordance with the provisions of Section 42 . 044 of the Texas Local Government Code; and WHEREAS, Howmet Corporation has requested a non- annexation agreement for said tract of land. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: That certain contract, a copy of which is attached hereto between the City of Wichita Falls and Howmet Corporation; whereby the City guarantees the extraterritorial status of said Lot 1, Block 27, Kemp & Newby Subdivision and its immunity from annexation by City for a period of seven (7) years from January 1, 1993, is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls. PASSED AND APPROVED THIS THE 15TH DAY OF DECEMBER 1992. IFt44P410111 . M A Y 77"-R ATTEST: IC/ / ; ,1 Y CLERK 7 J 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 twenty (20) acres, more or less, hereinafter called "Subject Property, " being a part of the Kemp and Newby Subdivision, 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 the City's extraterritorial jurisdiction; and, WHEREAS, the Subject Property is located within the Expressway East Industrial District previously designated by the City Council as an industrial district by Resolution No. 2927; and WHEREAS, the City Council of City did by Resolution No. 188-92 on December 15 1992, approve a non-annexation agreement with Howmet for Subject Property. NOW, THEREFORE, for and in consideration of the mutual covenants hereafter contained to be performed by the parties hereto, City and Howmet do hereby agree as follows: 1. City guarantees the extraterritorial status of Subject Property and its immunity from annexation by City for a period of seven 7) years from January 1, 1993. 2 2 . City will furnish water services to Howmet on Subject Property at rates equal to one hundred fifty (150%) percent of the rates charged users within the City limits. 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 one hundred fifty (150%) percent of the rates charged users located within the City limits. 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. City will furnish sanitation services to Howmet on Subject Property at rates equal to one hundred twenty five (125%) percent of the rates charged similar users located within the City limits; provided, however, Howmet reserves the right to use a private sanitation service so long as applicable City requirements, if any, are satisfied. In the event City's City Council completely eliminiates 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 services provided to Howmet by City shall be subject to the ordinances of the City as presently existing and as may be hereinafter amended. 5. City will furnish fire and police protection services to Howmet on Subject Property. 6. Howmet shall not allow the sale of fireworks on Subject Property. 3 7. Howmet will pay to the 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 a certain percentage, as specified below, of that amount that its normal City taxes would have been that year had the subject property been in the City limits. Each annual payment shall be made within the latter of; (i) between November 1 and December 31; or (ii) within thirty (30) days after the receipt by Howmet of the bills therefor. In computing the amount that Howmet's 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, throughout the term of this contract, an amount equal to one hundred (100%) percent of the 1992 appraised value of such land made by the Wichita County Appraisal District. b. The appraised value of the presently existing buildings and other improvements shall be, throughout the term of this contract, an amount equal to one hundred (100%) percent of the 1992 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, 1993, shall be an amount equal to one hundred (100%) percent 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 one hundred (100%) percent of the appraised value of such buildings and improvements made by the Wichita 4 County Appraisal District for that year or years. Construction in progress shall be appraised for purposes of this contract in compliance with Section 23 . 01 of the Property Tax Code, and in conformance with generally accepted appraisal techniques. This same appraisal method shall be used for subsequent years of this contract. The appraised value of all buildings and 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 Tax Assessor-Collector of this fact, together with the appraised value of such buildings or improvements, not later than August 1 of the following calendar year. 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 one hundred (100%) percent of the 1992 appraised value (less depreciation allowances) of such machinery, equipment and other personal property as valued by the Wichita County Appraisal District. d. The appraised value of any new machinery, equipment and other personal property (except inventory) which may be acquired on the Subject Property after January 1, 1993, shall be an amount equal to one hundred (100%) percent of the appraised value (less depreciation allowances) of such machinery, equipment and other personal property as valued 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 5 which is subsequently scrapped or removed from the premises shall be deleted from the appraised value and the machinery, equipment and other personal property under this contract. e. 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. f. Each year the then-current tax rate as established by City Council shall be applied to the appraised value (as determined under a. through e. 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 twenty-five 25%) percent of the amount so computed for Sections 7 (a) , 7 (b) and 7 (d) , and forty (40%) percent for Sections 7 (c) and 7 (e) . g. By August 1 of each contract year, Howmet shall furnish to the City Tax Collector a detailed list of all new construction, equipment purchased, and related equipment replaced for the preceding calendar year. Such reports so furnished shall, if pertinent, identify the applicable subsection of this Section 7 covering such property. 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 without the written consent of City except that no consent shall be required for any mortgage or collateral assignment in connection with financing the purchase or construction of the improvements located on Subject Property which are supplementary to the industrial plant located thereon. Such written consent shall not be unreasonably withheld so 6 long as such assignment is consistent with the purposes of City's industrial non-annexation policy. In the event Howmet should sell or lease any of the unimproved portions of Subject Property for some use not related to the existing 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 when 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, 1999, and Subject Property shall be included on the tax rolls of City on January 1, 2000. 12 . This contract shall be effective as of January 1, 1993. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed by their duly authorized officers on this 15 day of December 1992. City of Wichita F Texas BY' 3a s rzina, `City Manager 1 • 7 ATTEST: x/111 L / City lerk APPROVED AS TO FORM: City o ney Howmet Corporation By: Name: 9c7Ck;fligflt 1!Y Title: Vice President ATTEST: Refurbishment and Coating Operations Name: 4 Title: General Manager Wichita Falls Refurbishment Center EXHIBIT A Real Property Description A tract of land out of and being a part of Block 27, of Kemp and Newby Subdivision, of Cherokee County School Lands, A-33, Wichita County, Texas, as per plat described by metes and bounds as follows: Beginning at a point in the occupied North line of said Block 27, and the South line of Block 26, Kemp and Newby Subdivision, South 88 deg. 57 ' 19" East 28.5 feet from the occupied Northwest corner of said Block 27, said point also being in the East right-of-waylineofHammonRoadandalsobeingintheSouthlineofTract1, Unit 3, Expressway East Industrial District as per plat thereof recorded in Volume 23, Page 265 of the Wichita County Plat Records . THENCE South 88 deg. 57 ' 19" East, along the North line of said Block 27 and the South line of aforementioned Tract 1, Unit 3, Expressway East Industrial District, a distance of 1452 .0 feet to a point for the Northeast corner of this tract; THENCE South 01 deg. 02 ' 05" West, 600.0 feet to a point for the Southeast corner of this tract; THENCE North 88 deg. 57 ' 19" West, 1452 .0 feet to a point for the occupied East right-of-way line of Hammon Road for the Southwest corner of this tract; THENCE North 01 deg. 02 ' 05" East, 600.0 feet to the place of beginning, known as Lot One ( 1) , Block Twenty-seven (27) , Kemp &Newby Subdivision, in Volume 24, Page 377, Wichita County, Texas .