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    7. f.    
BAYTOWN CITY COUNCIL MEETING
Meeting Date: 06/25/2020  
Subject:    Payment in Lieu of Taxes Agreement with Angel Brothers Property LLC, and Angel Brothers Enterprises, LTD
Prepared for: Karen Horner Prepared by: Karen Horner, Legal
Department: Legal  

Information
ITEM
Consider an ordinance authorizing a Payment in Lieu of Taxes Agreement with Angel Brothers Property LLC, and Angel Brothers Enterprises, LTD.
PREFACE
This proposed ordinance authorizes a Payment in Lieu of Taxes Agreement with Angel Brothers Property LLC, and Angel Brothers Enterprises, LTD. 

Such entities owns property within Chambers County Improvement District No. 3, which is subject to Declaration of Covenants, Conditions and Restrictions for Bay 10 Business Park (the "Declarations").  The Declarations require that property owners enter into an agreement with the City for payments in lieu of ad valorem taxes in a form provided by the City.  Such an agreement is a condition to any construction of improvements on the owners property. 

The proposed agreement is similar to the City's new company Industrial District Agreement.  The formula as specified in the Payment in Lieu of Taxes ("PILOT") Agreement is as follows:
Base Value PILOT Payment = $30,000,000 x City's property tax rate/$100 valuation x .66
PLUS
Added Value PILOT Payment = Added Value x City's property tax rate/$100 valuation x the Added Value PILOT Payment Rate

The Added Pilot Payment Rate is as follows:
TAX YEAR ADDED VALUE PILOT PAYMENT
 RATE
2020 .00
2021 .00
2022 .25
2023 .35
2024 .45
2025 .55
2026 .66

The City has a lien on the property and may enforce such lien or seek judicial relief as appropriate to enforce the obligations of the agreement.
RECOMMENDATION
Staff recommends approval.
Attachments
Ordinance - PILOT with Angel Brothers
Exhibit A - PILOT Agreement

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