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Res 084-2017 6/6/2017 Resolution No. _84-2017_ Resolution approving an eighth generation non-annexation agreement with Vitro Architectural Glass Incorporated (Formerly PPG Industries), guaranteeing its immunity from annexation for a period of five years beginning January 1, 2017 WHEREAS, the City of Wichita Falls entered into a seventh generation non-annexation agreement with PPG Industries, Incorporated for a period of five years from January 1, 2012; and, WHEREAS, the City of Wichita Falls desires to extend that agreement for an additional five-year term, with 25% payments to the City as payment-in-lieu of taxes on the property known as the Super Glass Coater Facility. 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 a n eighth generation non- annexation agreement with Vitro Glass Architectural effective retroactively to January 1, 2017, a copy of which is attached hereto . PASSED AND APPROVED this the 6th day of June, 2017. ______________________________ M A Y O R ATTEST: ___________________ City Clerk STATE OF TEXAS § COUNTY OF WICHITA § NON-ANNEXATION CONTRACT WITH VITRO ARCHITECTURAL GLASS This contract made and entered into by and between the City of Wichita Falls, Texas, a municipal corporation, hereinafter called “City”, and Vitro Architectural Glass, hereinafter called “Vitro”. W I T N E S S E T H : WHEREAS, VITRO is the owner of a certain tract of land, (her einafter called “Subject Property”) located in Wichita County, Texas, said land being more fully described in Exhibit A, which is attached hereto and incorporated herein, and which includes land located within the City’s extraterritorial jurisdiction. NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained to be performed by the parties hereto, City and VITRO do hereby agree as follows: 1. City guarantees the continuation of the extraterritorial status of Subject Property, and its immunity from annexation by the City, for a period of five (5) years from January 1, 2017. 2. City will furnish water and sewer service to VITRO for that portion of the Subject Property described in Exhibit A at rates equal to 100% of the rates charged to u sers 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. 3. City will furnish fire protection services to VITRO on Subject Property throughout the term of this contract. 4. VITRO shall not allow the sale of fireworks on Subject Property. 5. VITRO will pay to the City each year during this contract term, as payment in lieu of taxes, an amount in cash, or cash equivalents acceptable to the City, equal to 100% of the amount that its normal City taxes would have been for that year had it been within the City limits for all property described in Exhibit B “Existing Improvements” and any leased property for all property described Exhibit B “Existing Improvements”. 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 Prope rty Tax Code, as amended. 6. VITRO will pay to the City each year during the five (5) years of this contract, as payment in lieu of all taxes, an amount in cash, or cash equivalents acceptable to City, equal to (1) 25% of the amount that its normal City taxes would have been for that year had it been within the City limits for all property described in Exhibit C “New Improvements” and (2) 25% of the taxable value of any leased property for all property described in Exhibit C “New Improvements”. 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. 7. Each annual payment shall be billed by the City and be due and payable upon receipt. To assist the Wichita County Appraisal District with the annual appraisal, VITRO shall provide the following information to the Wichita County Appraisal District on or before April 15th of each year for all property described in Exhibit B and C:  A rendering of the property in accordance with applicable law.  Records of the total cost, year of acquisition, description of each asset and its use. At a minimum, this information should include a property description, and asset number (if applicable) and the date the property was placed in service or removed.  Information regarding any property on the premises that is cosigned or leased. At a minimum, this information should include the begi nning and ending dates of each lease agreement, the cost of the property to which each agreement pertains, the name and addresses of the parties to each agreement, asset numbers (if applicable), the party responsible for property taxes on each agreement, a nd the termination provisions of each agreement. 8. VITRO shall dispose of all the municipal and industrial solid waste (but not hazardous waste or industrial Class I solid waste) that is being removed from the Subject Property for disposal at a landfill (“the landfill”) owned and operated by the City. VITRO shall use no other landfill for the disposal of its municipal and industrial solid waste during the term of this contract, but VITRO is free to reuse, recycle or reclaim its waste. VITRO shall pay the City a disposal rate of Twenty-Five ($25.00) Dollars per ton for all waste deposited in the City landfill. The City shall have the right to request from VITRO at any time during the term of this contract an adjustment in the disposal rate, and the rate may be adjusted in the event of a material change in the operating costs of the City due to or as a direct result of revised federal or state laws, ad valorem taxes, governmental fees and regulations or unforeseen increases in fuel costs. The City shall have t he right to petition VITRO for these unusual cost adjustments and shall provide VITRO with documents and records in any reasonable form and sufficient detail to reasonably establish the necessity of any requested rate adjustment at the time of the request. 9. VITRO shall be required to obtain a building permit from the City for new structures proposed for construction for property described in Exhibit C. The City shall waive the building permit fee for this new construction. 10. In the event that VITRO 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 VITRO has in good faith disputed any alleged breach. 11. Prior to 180 days of the expiration date of this agreement, the City shall either (1) negotiate in good faith with VITRO the terms for renewal of this agreement for an additional five -year term; or (2) initiate proceedings to annex Subject Property into the city limits early enough to be able to complete such proceedings by December 31, 2021, and Subject Property shall be included on th e tax rolls of the city on January 1, 2022. Should the City choose to annex Subject Property into the city limits, City will notify VITRO in writing prior to such proceedings 30 days prior to initiating such proceedings. 12. This contract shall be effective January 1, 2017. 13. Nothing in this contract shall limit or in any way restrict VITRO’s ability to appeal any appraisal made by the Wichita County Appraisal District. This contract shall inure to the benefit of VITRO’s assigns or successors in interest to Subject Property. 14. 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 _______ day of ___________________, 2017. CITY OF WICHITA FALLS By: ________________________ Darron Leiker, City Manager ATTEST: ______________________ City Clerk APPROVED AS TO FORM: ______________________ City Attorney VITRO INDUSTRIES, INC. By: ___________________ ATTEST: _____________________ EXHIBIT A Bacon Switch Addition, Block 1, a subdivision containing 490.46 acres, more or less, out of the Thomas Curry Survey, Abstract 345, in Wichita County, Texas, according to the plat of said subdivision recorded in Volume 21, Page 49 of the Plat Records of Wichita County, Texas. All of that lot, tract and parcel of land out of the Thomas Curry Survey, A -345, Wichita County, Texas, and being specifically described by metes and bounds as follows: Beginning at the occupied Northwest corner of the Thos. Curry Survey, A - 345, being the Northwest corner of this tract; Thence South 89o 59’ 00” East 2809.33 feet along the Centerline of East Road and the North line of the Thos. Curry Survey to a point in the West line of the Missouri -Kansas-Texas (M-K-T) Railroad for the Northeast corner of this tract; Thence South 15o 26’ 00” East 5925.37 feet along the West line of said M-K-T Railroad to a point for the Northeast corner of the F. Evert 3 Acre tract as recorded in Vol. 578, Page 389, Wichita County Deed Records, for the most Easterly Southeast corner of this tract; Thence North 89o 38’ 00” West 753.44 feet to the Northwest corner of said F. Evert 3 Acre Tract for an ell corner of this tract; Thence South 01o 10’ 00” West 232.40 feet to a point in the centerline of Bacon Switch Road for the most Southerly Southeast corner of this tract; Thence West 3624.40 feet along the centerline of Bacon Switch Road to a point in the West line of the Thos. Curry Survey for the Southwest corner of this tract; Thence North 00o 02’ 00” West 5941.00 feet along the West line of the Thos. Curry Survey to the Place of Beginning and containing 490.46 acres, more or less, and also describe d as Block 1 of the Bacon Switch Addition, an addition to Wichita County, Texas EXHIBT B “EXISTING IMPROVEMENTS” Exhibit “B” improvements are within the boundaries of Exhibit “A”. The VITRO Glass Production Facility consisting of melting, forming, processing, storage, and shipping of flat glass. The 1,308,528 square foot multi building facility is confined within a fenced off area of 83 acres inside the subdivision of Exhibit “A”. Existing improvements also include the improvements for the VITRO Glass Coater Facility located adjacent to VITRO Glass Production Facility northeast perimeter consisting of coating equipment and glass storage in a 160,000 square foot building and a New Tempering Furnace and Associated Material Handling Equipment. This will include glass loading equipment, conveyors, glass washer, TAMCO furnace and quench section, and unload equipment. EXHIBT C “NEW IMPROVEMENTS” Exhibit “C” new improvements are within the boundaries of Exhibit “A” and include a proposed second VITRO Glass Super Coater Facility yet to be defined.