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:
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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.
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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:
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` 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 .
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