Res 043-2010 4/6/2010 RESOLUTION NO. 43-2010
Resolution Authorizing The City Manager To Enter Into A Non-
Annexation Agreement With Phoenix Holdings, LLC, Providing For
Its Property At 8600 Central Frwy N. To Be Immune From
Annexation For A Period Of Seven Years Beginning February 16,
2010.
WHEREAS, the City has recently approved an economic development
performance agreement with Natura World, Inc., that included a provision requiring the
City to enter into a non-annexation agreement for the old Delphi property as an
economic development incentive to create jobs in the community; and
WHEREAS, Phoenix Holdings, LLC is the entity that will be subject to this non
annexation agreement; and
WHEREAS, the City Council has determined that this non-annexation agreement
is in the City's best interest due to the economic value of this industry to be located in
the Wichita Falls area.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
The City Manager is hereby authorized to enter into the attached Non-
Annexation Contract with Phoenix Holdings, LLC, providing for its Property at 8600
Central Frwy. N. to be immune from annexation for a period of seven years beginning
February 16, 2010, with such changes to form as are approved by the City Attorney.
PASSED AND APPROVED this the day of 6 day of April, 2010.
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ATTEST:
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City Clerk
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Non-Annexation Contract with Phoenix Holdings, LLC for
a 100-Acre Tract at 8600 Central Fwy N.
This contract is made and entered into by and between the City of Wichita Falls, Texas, a
municipal corporation, hereinafter called "City," and Phoenix Holdings, LLC, a Delaware limited
liability company, hereinafter called "PHOENIX".
WHEREAS, PHOENIX is the owner of a certain tract of land containing 100 acres, more
or less, hereinafter called "Subject Property," out of the S.T. Bell Survey, A-634 and the H.G.
Horn Survey, A-100, Wichita County, Texas, which is more fully described by metes and bounds
in Exhibit A 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. 2003, designate Subject
Property as an industrial district; and,
WHEREAS, on , the City Council of City did by Resolution No.
authorize and approve this non-annexation agreement, which it deemed 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 PHOENIX 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 l years from February
16, 2010.
2. City will furnish water, sewer and sanitation disposal services to PHOENIX on
Subject Property at rates equal to 150% of the rates charged users located within
the City limits throughout the term of this contract. These services shall be
subject to the ordinances of City existing and as may be hereinafter amended.
3. City will furnish fire protection service to Subject Property.
4. PHOENIX shall not allow the sale of fireworks on Subject Property.
5. PHOENIX will pay to City each year during the 7 years of this contract, as
payment in lieu of taxes, an amount in cash, or cash equivalents acceptable to
City, equal to 25%, of the amount that its normal City taxes would have been
that year had they been in 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 billed by the City between October and December of each year
and shall be due and payable by the end of that calendar year. More specifically,
the first of seven PILOT payments will be due on December 31, 2011 for the
2011 tax year and the seventh PILOT payment will be due on December 31,
2017 for the 2017 tax year.
6. PHOENIX shall dispose of all the municipal and industrial solid waste (but not
hazardous waste, Class I industrial waste, or type of waste that is not permitted
by the TCEQ to be disposed at the City's landfill) that is being removed from
the Subject Property for disposal at a landfill ("the landfill") owned and
operated by the City. PHOENIX shall use no other landfill for the disposal of
its municipal and industrial solid waste during the term of this contract (except
for hazardous waste, Class I industrial waste, or type of waste that is not
permitted by the TCEQ to be disposed at the City's landfill), but PHOENIX is
free to reuse, recycle or reclaim its waste.
7. PHOENIX shall be required to obtain a building permit from the City for
building improvements proposed on Subject Property. The City shall waive the
building permit fee for this new construction.
8. Prior to any assignment of this contract, or any sale or lease of Subject Property
or any part thereof, PHOENIX shall secure the written consent of City in
connection with the retention by any assignee of the provisions of this contract.
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. Prior to any construction of substantial improvements on
Subject Property for use other than purposes relating to existing use, PHOENIX
shall secure the prior written consent of City in order to retain the status for such
improvements contained in this Agreement. Upon the failure to obtain prior
written consent as required in this paragraph, City may at its option, terminate
the provisions of this Agreement as the same affect Subject Property. Such
prior written consent shall not be unreasonably withheld so long as any such
assignment, sale, lease or construction is consistent with the purposes of non-
annexation policies of City. This contract shall be binding upon and inure to the
benefit of the successors and assigns (as permitted) of each party hereto.
9. In the event PHOENIX should breach any of the provisions of this contract, and
fail 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 annex the Subject Property,
obtain a judgment for the amount of any delinquent payment in lieu of taxes,
and require specific performance of the terms of this agreement.
10. City shall have the right to initiate proceedings to annex Subject Property within
the City limits early enough to be able to complete such proceedings by
December 31, 2017, and Subject Property is expected to be included on the tax
rolls of City on January 1, 2018. PHOENIX shall file a request for voluntary
annexation of the Subject Property on or before March 31, 2017.
11. The City shall additionally have the right to annex the Subject Property if the
property ceases to be used in active manufacturing operations at any time after
March 31, 2013 or if PHOENIX fails to comply with any requirements of any
agreements or notes executed with the City of Wichita Falls or the Wichita Falls
Economic Development Corporation.
12. This contract shall be effective as of February 16, 2010.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed
by their duly authorized officers on this the day of , 2010.
CITY OF WICHITA FALLS
By:
Darron Leiker, City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
Phoenix Holdings, LLC, a Delaware limited liability company
By:
ATTEST:
STATE OF TEXAS §
COUNTY OF WICHITA §
This instrument was acknowledged before me on this day of , 2009,
by Darron Leiker, City Manager of the City of Wichita Falls, a Texas municipal corporation, on
behalf of said corporation.
(seal)
Notary Public
STATE OF TEXAS §
COUNTY OF WICHITA §
This instrument was acknowledged before me on this day of , 2010,
by , of Phoenix
Holdings, LLC, a Delaware limited liability company, on behalf of said limited liability company.
(seal)
Notary Public
Exhibit A
A tract of tand in Wichita County, Texas, being a�l of 81ock 1, North Industrial 17istrict, an
addition to Wichita County, Texas, as shown on that plat o# record in Volume 3, Page 't90-B of
the Wichita County Plat Records and being more specially described by metes and bounds as
follows:
BEGENNING at an iron rod for the southeast corner of Block 1, North Industrial Qistrict, being
at t�e intersectio� of the west right-af-way line of Missouri-Kansas-Texas Railroad (now
operated by the Wichita-7illman-Jackson Railroad) with the north right-of-way line af East
Road;
THENCE along the norfh right-of-way line of East Road and along the south line of said Block
1, North 89° 57' 29" West a distance of 2797.78 feet to a"PK" nail at a fence corner for the
southwest corner of said Block 1;
THENCE along the west fine of said Block 1, Nor�h 00° 00' 29" East a distance of 1645.76 feet
to a 3" pipe fence corner post for the northwest corner of said Block '!;
THENCE along the north line of said Block 1, South 89° 56' 20" East a distance of 2344.35 feet
to "PK" naii faund at a fence corner in the west right-of-way line of Missouri-Kansas-Texas
Railroad for the northeast corner of said Blvck 1;
TH�NCE along the east line of said Block 1 and the west line of said railroad, South 15 24'
00" East a distance of 17�6.58 feet ta the PLACE OF B@Gl�fN[iVG and containing 97.'l'i3 acres
of land more or less.
Exhibit A