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Res 069-2008 5/20/2008 . , RESOLUTION NO. - UV RESOLUTION APPROVING A NON-ANNEXATION AGREEMENT WITH SBP ENTERPRISES, INCORPORATED, GUARANTEEING ITS IMMUNITY FROM ANNEXATION FOR A PERIOD OF FOUR YEARS BEGINNING JANUARY 1, 2008; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, the City of Wichita Falls entered into a fourth generation non-annexation agreement with Delphi Automotive Systems in January 2001; and WHEREAS, Delphi Automotive filed bankruptcy and ultimately went out of business; and WHEREAS, SBP Enterprises purchased the Delphi property and has plans to establish a fairly large number of jobs in the distribution and light assembly of agricultural and heavy equipment; and WHEREAS, the City of Wichita Falls desires to enter into a non-annexation agreement with SBP Properties for a period of four years from January 1, 2008. 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 non- annexation agreement with SBP Enterprises, a copy of which is attached hereto, whereby the City guarantees the extraterritorial status of this property and its immunity from annexation by the City for a period of four (4) years from January 1, 2008. 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 May 2008. �a.�. MAYOR ATTEST: � � City lerk • STATE OF TEXAS § ' COUNTY OF WICHITA § NON-ANNEXATION CONTRACT WITH SBP ENTERPRISES, INC. This contract, made and entered into by and between the City of Wichita Falls, Texas, a municipal corporation, hereinafter called "City," and SBP ENTERPRISES, INC., hereinafter called "SBP ENTERPRISES, INC.," WITNESSETH : WHEREAS, SBP ENTERPRISES, INC. is the owner of a certain tract of land containing 97.113 acres, more or less, hereinafter called "Subject Property," located in Wichita Couny, T exas, 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. 2003, designate Subject Property as an industrial district, and by other resolutions approved non- annexation agreements with General Motors Corporation and later Delphi Automotive Systems, L.L.C. concerning such property; which granted immunity from annexation by City of Subject Property; and, WHEREAS, SBP ENTERPRISES, INC. has recently purchased Subject Property; and WHEREAS, SBP ENTERPRISES, INC. has requested a non-annexation contract, and the City Council of City has, by Resolution No. "2"cc5 authorized and approved this contract, 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 SBP ENTERPRISES, INC. 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 four (4) years from January 1 , 2008. City will furnish water, sewer and sanitation disposal services to SBP ENTERPRISES, INC. on Subject Property at rates equal to 100% 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 SBP ENTERPRISES, INC. on Subject Property. 4. SBP ENTERPRISES, INC. shall not allow the sale of fireworks on Subject Property. SBP ENTERPRISES, INC. will pay to City each year during the four (4) 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 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 upon receipt. In computing the amount payable to the City the following amounts shall be applied: IGHRD File:00163004.DOCI 3 (a) Sixty percent (60%) of the then current property tax rate as established by the City Council for year one of this contract. (b) Seventy percent (70%) of the then current property tax rate as established by the City Council for year two of this contract. (c) Eighty percent (80%) of the then current property tax rate as established by the City Council for year three of this contract. (a) Ninety percent (90%) of the then current property tax rate as established by the City Council for year four of this contract. 6. Prior to any assignment of this contract, or any sale of Subject Property or any part thereof, SBP ENTERPRISES, INC. 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 the existing or proposed use of Subject Property, SBP ENTERPRISES, INC. 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 or construction is consistent with the purposes of non- annexation policies of City. This contract shall be binding upon and inure IGHRD Flit;00163004.DOCj 4 • to the benefit of the successors and assigns (as permitted) of each party hereto. 7. In the event SBP ENTERPRISES, INC. 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. 8. City shall initiate proceedings to annex Subject Property within the City limits early enough to be able to complete such proceedings by December 31 , 2011, and Subject Property shall be included on the tax rolls of City on January 1 , 2012; provided however, that the City shall non annex Subject Property within the City limits prior to the City's annexation of all intervening properties (as defined below). For purposes of this contract, the term "Intervening Properties" means all properties that lie along Central Freeway North between Subject Property and the City limit line as it exists on the effective date of this contract. This contract shall be effective as of and from March 26, 2008, and all amounts payable by SBP ENTERPRISES, INC. under this contract related to the year 2008 shall be adjusted and reduced accordingly. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed by their duly authorized officers on this the b4 d day of C/�6;70.8e . 2008. CIT1YOFWI 1TAFALL By: I Darron Leiker, City Manager jGHRD Fi]J)OI63004.DQC.k 5 ATTEST: b.Q Fy Cl Clerk APPROVED AS TO FORM: City Attorney SBP ENTE S, , INC. By: ATTEST: Secretary 1GHRD File:00163004.DOC1 1 EXHIBIT A A tract of land in Wichita County,Texas,being all of Block 1,North Industrial District,an addition to Wichita County,Texas,as shown on that plat of record in Volume 3,Page 190-B of the Wichita County Plat Records and being more specifically described by metes and bounds as follows: BEGINNING at an iron rod for the southeast corner of Block 1,North Industrial District,and being at the intersection of the West right of way line of the Missouri-Kansas-Texas Railroad(now operated by the Wichita-Tillman-Jackson Railroad)with the north right-of-way line of East Road; THENCE along the north 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 line of said Block 1,North 00°00'29" East a distance of 1645.76 feet to a 3"pipe fence corner post for the northwest corner of said Block 1; THENCE along the north line of said Block 1,South 89°56'20" East a distance of 2344.35 feet to"PK"nail found at a fence corner in the west right-of-way line of the Missouri-Kansas-Texas Railroad for the northeast corner of said Block 1; THENCE along the east line of said Block 1 and the west line of said railroad,South 15°24'00" East a distance of 1706.58 feet to the PLACE OF BEGINNING and containing 97.113 acres of land more or less.