The Katy Industrial Development Corporation, hereinafter referred
to as the corporation, is hereby authorized and approved for creation
as an industrial development corporation under the provisions of the
Development Corporation Act of 1979 (article 5190.6, V.T.C.S.).
(1999 Code, art. 1.1100(a))
The corporation is hereby designated as the duly constituted authority and instrumentality of the city (within the meaning of those terms in the regulations of the United States Department of Treasury and the rulings of the Internal Revenue Service prescribed and promulgated pursuant to section 103 of the Internal Revenue Code of 1954, as amended) and shall be authorized to act on behalf of the city for the specific public purpose of the promotion and development of commercial, industrial, and manufacturing enterprises to promote and encourage employment and the public welfare, but the corporation is not intended to be and shall not be a political subdivision or a political corporation within the meaning of the constitution and the laws of the state, including, without limitation, article III, section 52 of the state constitution, and the city does not delegate to the corporation any of its attributes of sovereignty, including the power to tax, the power of eminent domain, and the police power.
(1999 Code, art. 1.1100(b))
The corporation may, under the conditions set forth in this
division, issue obligations on behalf of the city, acquire, lease,
sell, or convey certain properties, and make loans for the promotion
and development of commercial, industrial, and manufacturing enterprises
to promote and encourage employment and the public welfare. The city
shall not lend its credit or grant any public money or thing of value
in aid of the corporation. Furthermore, obligations issued by the
corporation with the approval of the city shall be deemed not to constitute
a debt of the state, of the city, or of any other political corporation,
subdivision, or agency of the state or a pledge of the faith and credit
of any of them, but such obligations shall be payable solely from
the funds herein provided. The corporation shall not be authorized
to incur financial obligations which cannot be paid from proceeds
of the obligations or from revenues realized from the lease or sale
of a project or realized from a loan made by the corporation to finance
or refinance in whole or in part a project. “Project”
shall mean the land, buildings, equipment, facilities, and improvements
found by the board of directors of the corporation to be required
or suitable for the promotion of commercial or industrial development
and expansion, the promotion of employment or for use by commercial,
manufacturing, or industrial enterprises, irrespective of whether
in existence or required to be acquired or constructed after the making
of such findings by the board of directors.
(1999 Code, art. 1.1100(c))
The articles of incorporation of the corporation and the bylaws
of the corporation, in the forms approved by the city, on file in
the office of the city secretary, are hereby approved for use and
adoption by the corporation; provided, however, that any amendments
to the articles of incorporation shall be subject to the further approval
of the governing body of the city.
(1999 Code, art. 1.1100(d))
The governing body of the city shall approve by written ordinance
any agreement to issue bonds, including refunding bonds, adopted by
the corporation, which agreement and ordinance shall set out the amount
and purpose of the bonds. Furthermore, no issue of bonds, including
refunding bonds, shall be sold and delivered by the corporation without
a written ordinance of the governing body of the city adopted no more
than sixty (60) days prior to the date of the sale of the bonds specifically
approving the ordinance of the corporation providing for the issuance
of the bonds.
(1999 Code, art. 1.1100(e))
Upon dissolution of the corporation, the city shall accept title
to or other interests in any real or personal property owned by the
corporation at such time.
(1999 Code, art. 1.1100(f))
This division is adopted for the purpose of satisfying the conditions
and requirements of the act and of section 103 of the Internal Revenue
Code of 1954, as amended, and the regulations prescribed thereunder
from time to time, and for the benefit of the corporation, the city,
the owners or holders from time to time of the obligations of the
corporation and all other interested persons.
(1999 Code, art. 1.1100(g))
