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Res 022-2001 3/20/2001RESOLUTION NO. a9,_1od RESOLUTION APPROVING AN AMENDMENT TO A SECOND GENERATION NON - ANNEXATION AGREEMENT WITH PRATT & WHITNEY SERVICES, INCORPORATED WHICH GUARANTEES ITS IMMUNITY FROM ANNEXATION FOR A PERIOD OF SEVEN YEARS FROM JANUARY 1, 2000; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, by Resolution No. 2927, the City Council 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; and WHEREAS, the City of Wichita Falls entered into a first generation non - annexation agreement with Pratt & Whitney Services, Incorporated (formerly Howmet Refurbishment Corporation) for a period of seven years from January 1, 1993; and WHEREAS, on March 7, 2000, the City of Wichita Falls entered into a second generation non - annexation agreement with Pratt & Whitney Services, Incorporated for a period of seven years from January 1, 2000, and WHEREAS, Pratt & Whitney Services, Incorporated has recently requested that the City consider an amendment to the agreement that would provide for the payment in -lieu of taxes amount be reduced to 25% for the appraised value associated with a planned expansion; and WHEREAS, the City Council desires to amend the agreement to provide such an incentive for the planned expansion. 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 second generation non - annexation agreement, as amended, with Pratt & Whitney Services, 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 20th day of March 2001. ATTEST: City Clerk AYOR STATE OF TEXAS COUNTY OF WICHITA NON-ANNEXATION CONTRACT WITH PRATT & WHITNEY SERVICES, INC. This contract made and entered into by and between the City of Wichita Falls, Texas, a municipal corporation, hereinafter called "City", and Pratt & Whitney Services, Inc., hereinafter called "Pratt & Whitney Services". WITNESSETH: WHEREAS, Pratt & Whitney Services 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, said land being more fully described by the metes and bounds in Exhibit A, which is attached hereto and incorporated herein, and which land is located within the City's extraterritorial jurisdiction. 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; NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained to be performed by the parties hereto, City and Pratt & Whitney Services do hereby agree as follows: 1 LF 1 . City guarantees the continuation of the extraterritorial status of Subject Property, and its immunity from annexation by the City, for a period of seven (7) years from January 1 , 2000. 2. City will furnish water and sanitary sewer service to Pratt & Whitney Services on Subject Property at rates equal to 175% 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 and shall include the prohibition of sale or supply of water by Pratt & Whitney Services to any other tract of land or premise in violation of Section 32-25 of the Wichita Falls Code of Ordinances. Any such existing sale or supply of water by Pratt & Whitney Services shall cease upon execution of this contract. 3. City will furnish sanitation services to Pratt & Whitney Services on Subject Property at rates equal to 150% of the rates charged to users located within the City limits throughout the term of this contract. However, Pratt & Whitney Services reserves the right to use a private sanitation service so long as applicable City requirements, if any, are satisfied. These services shall be subject to the ordinances of the City presently existing and as may be hereinafter amended. 4. City will furnish fire protection services to Pratt & Whitney Services on Subject Property throughout the term of this contract. Pratt & Whitney Services shall provide fire protection standards as required by the City. • • 5. Pratt & Whitney Services shall not allow the sale of fireworks on Subject Property. 6. Pratt & Whitney Services will pay to the City each year during the seven (7) years of this contract, as payment in lieu of all taxes, an amount in cash, or cash equivalents acceptable to City, equal to a certain percentage, as specified below, of the amount that its normal City taxes would have been for that year had it been within the City limits. 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. Each annual payment shall be made within thirty (30) days after the receipt by Pratt & Whitney Services of the bills therefore. In computing the amount payable to the City each year during this contract, the sum of the two of the following amounts shall be applied: (a) Forty percent (40%) of the then property tax rate as established by the City Council shall be applied to the appraised value of land, buildings and improvements, machinery, equipment, inventory, and other personal property for the incremental amount of the total appraised value up to but not exceeding $10,000,000. (b) Twenty-five percent (25%) of the then-current property tax rate as established by the City Council shall be applied to the appraised value of land, buildings and improvements, machinery, equipment, inventory, and other personal property for the incremental amount of the total appraised value that exceeds $10,000,000. 7. In the event that Pratt & Whitney Services 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 Pratt & Whitney Services has in good faith disputed any alleged breach and the parties resolve such dispute within ninety (90) days. 8. The City shall, at its option, initiate proceedings to annex Subject Property into the City limits early enough to be able to complete such proceedings by December 31, 2006, and Subject Property shall be included on the tax rolls of the city on January, 1 2007. City shall notify Pratt & Whitney Services in writing 30 days prior to initiating such proceedings. 9. This contract shall be effective January 1 , 2000. 10. Nothing in this contract shall limit or in any way restrict Pratt & Whitney Service's ability to appeal any appraisal made by the Wichita County Appraisal District. This contract shall inure to the benefit of Pratt & Whitney Service's assigns or successors in interest to Subject Property. 11. 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 the Zof4day of /rniuec ;l 2001/. CITY O TA FALLS B - Ja s Berz'a� ty Manager ATTEST: vtituLt) 01 ow City Clerk APPROVED AS TO RM: ity Attorney PRATT & WHITNEY SERVICES, INC. By: SA.ADik S V/M ATTEST: • . • . • r • • ` 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-way line of Hammon Road and also being in the South line of Tract 1, 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 . ir ' • :,. ORCHARD AV. \ Q OSAGE AV. [ ' OSCEOLA AV. $ r . »ALIEN AV. 1 All ZEE AV. \ vAT l 1. R'�E,b . AV. b `r! '< ` ` ` O R b P ..c .,.. 4 ...,.. T '1/4 .7 g '-_, At 1 PRODUCT:*ALVO. VP °MeV AO. LOCATION 'j i r I C HAYYp»!INCH POGO __