HomeMy WebLinkAboutRES 1983-003 RESOLUTION NO. 83-03
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS, AUTHORIZING
THE EXECUTION OF AN AGREEMENT PERTAINING
TO THE PAYMENT OF AD VALOREn7 TAXES ON
PERSONAL PROPERTY PENDING THE OUTCO�ZE OF
THE LITIGATION TO DETERPZINE THE LEGALITY
OF TAXING THE BANK' S PERSONAL PROPERTY;
� AND DECLARING AN EFFECTIVE DATE
+� WHEREAS, the City of Grapevine, hereinafter referred to as
"Taxing Authority" , assessed and levied 1982 ad valorem taxes
on personal property of First National Bank of Grapevine , here-
inafter referred to as "Bank" ; and
WHEREAS, it is the opinion of the Bank that the 1982 ad
valorem taxes levied on its personal property are not owed and
are not lawful; and
WHEREAS, the Bank has joined in litigation a�ainst the
Taxing Authority over the legality of assessing and levying 1982
ad valorem taxes on the Bank' s personal property; and
WHEREAS, the Taxing Authority desires to collect and use
the 1�82 ad valorem taxes claimed, and the Bank desires not to
be delinquent in the payment of the personal property taxes
pending the outcome of the litigation; and
WHEREAS, the Bank and the Taxing Authority desire to enter
into the proposed agreement pertaining to the payment of the 1982
ad valorem taxes pending the outcome of the litigation.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS:
Section l . That it be and is hereby authorized to enter
into the attached agreement on behalf of the City of Grapevine ,
and that the attached agreement is hereby incorporated herein
and made a part hereof for all purposes.
Section 2 . That this resolution shall become effective
immediately from and after the date of its passage.
PASSED AND P,PPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of January, 1983 .
APPROVED:
�_�
Mayor Pro Tem
„�, ATTEST:
�
City ecret —
APPROVED AS TO FORM:
City Attorney
EXHIBIT "A" , PAGE 1 TO
° RESOLUTION NO. 83-03
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AGREEMENT
STATE OF TEXAS �
§
COUNTY OF TARRANT §
WAEREAS, First National Bank of Grapevine ("Bank") and
�' the City of Grapevine ("City") are parties Plaintiff and
Defendant, respectively, together with other parties, in a cer-
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tain lawsuit styled American State Bank, et al v. City of Fort
Worth, et al, No. 17-70577-81, penaing in the 17th District Court
of Tarrant County, Texas; and
WHEREAS, Bank and the other parties Plaintiff in said
lawsuit assert that it is illegal for City and other parties
Defendant to tax the bank shares of Bank and the other parties
Plaintiff; and
WHEREAS, City now ,seeks to tax the bank shares of Bank
which were outstanding on January 1, 1982; and
WHEREAS, the legal questions pertaining to this matter
will be determined by the Supreme Court of the United States in
similar litigation now pending in that Court, which has granted a
4 petition for certiorari in that litigation; and
WHEREAS, City desires to collect and use the taxes which
City claims are due on said bank shares and Bank cannot be
delinquent in the payment of such taxes as assessed pending the
outcome of such litigation;
NOW, THEREFORE, RNOW ALL MEN BY TIiESE PRESENTS: that
Bank and City, each acting herein by and through its designated
representatives, do hereby covenant and agree as follows:
l. Instead of paying into the registry of the Court
the taxes assessed against its bank shares outstanding on January
�:,,
1, 1982, Bank will pay said sum directly to City. The parties
agree that said taxes will be paicl under duress.
2. If it be determined or declared by final judgment
in the litigation hereinabove referred to that said taxes were
not owed or not lawful, either in whole or in part, City shall
refund to Bank an amount of money equal to that portion of the
1982 taxes against its shares, paid by Bank pursuant to paragraph
1 hereinabove, but not lawfully owed.
EXfiIBIT "A", PAGE 2 TO
� • � RESOLUTION NO. 83-03
3. Any refund paid pursuant to paragraph 2 hereinabove
shall be made not later than the first anniversary date of the
entry of final judgment in the lawsuit hereinabove referred to in
which Bank and City are parties. For purposes hereof, "final
^�='� judgment" shall mean the judgment of the trial court if no
appellate review is sought by any party to the suit, or , in case
a�pellate review is sought by any party, "final judgment" shall
mean the judgment of the highest court of Texas or of the United
States in which review shall have been sought by any party to the
suit and either (i} no further appellate review can be sought or
(ii) time for further appellate review shall have expired without
.further appellate review having been sought.
4. Any amounts refunded pursuant to this agreement
shall be for the amount of taxes only and shall not include any .
accrued interest upon said taxes; provided, however, that, in the
event the City shall fail to refund such amount by the first
anniversary date of the final judgment', interest shall accrue on
the entire amount from the date of final judgment.
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5. City shall make adequate provisions for any repay-
ment which may be due under this agreement.
EXECUTED this �1`; day of January, 1983.
FIRST NATIONAL BANK OF GRAPEVINE
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By: `
B. J. eNabb, Presi ent and
Chief Executive Officer
ATTEST: CITY OF GRAPEVINE
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