HomeMy WebLinkAbout029520 RES - 06/12/2012Page 1 of 3
Resolution
Approving a business incentive agreement for the creation and
retention of jobs between the Corpus Christi Business and Job
Development Corporation ("Type A Corporation") and Del Mar
College Foundation ("Del Mar Foundation"), which provides a grant
of up to $750,000, for the purchase of six (6) truck driving simulators
to expand Del Mar College's existing Transportation Training
Program, and authorizing the City Manager or designee to execute a
business incentive project support agreement with the Type A
Corporation regarding implementation and administration of the Del
Mar Foundation Business Incentive Agreement for the creation and
retention of jobs
WHEREAS, the Type A Corporation has budgeted funds to assist businesses create or
retain jobs in the City of Corpus Christi, Texas ("City").
WHEREAS, the Type A Corporation has requested proposals from businesses that will
create or retain jobs within the City, and determined that the proposal from Del Mar
Foundation for the purchase of six (6) truck driving simulators to expand Del Mar
College's existing Transportation Training Program, will best satisfy this goal;
WHEREAS, City Council deems that it is in the best interest of the City and citizens to
approve the business incentive agreement for the creation and retention of jobs
between the Type A Corporation and Del Mar Foundation;
WHEREAS, there is a need for a business incentive project support agreement
between the City and the Type A Corporation for the implementation and administration
of the business incentive agreement for the creation and retention of jobs between the
Type A Corporation and Del Mar Foundation.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the business incentive agreement for the creation and retention of
jobs between the Type A Corporation and Del Mar Foundation that provides for the
purchase of six (6) truck driving simulators to expand Del Mar College's existing
Transportation Training Program, which is attached to this resolution as Exhibit A, is
approved.
SECTION 2. That the City Manager, or designee, is authorized to execute a project
support agreement between the City and Type A Corporation for the implementation
and administration of the business incentive agreement with Del Mar Foundation, which
is attached to this resolution as Exhibit B.
11-
This reution takes effect upon City Council approval on this the ��
slday of
, 2012.
• 2a2cbd69-a92b-42eb-a011-d6e1bca30b22.docx
029520
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ATTEST: THE CITY OF CORPUS CHRISTI
Armando Chapa
P
City Secretary
2a2cbd69-a92b-42eb-a011-d6elbca30b22.docx
Joe A me
Mayor
Corpus Christi, Texas
, 2012
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kelley Allen
Priscilla Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
16-0-0,4
OLy_
2a2cbd69-a92b-42eb-a011-d6e1bca30b22.docx
029520
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FSC # DATI
Thrs bmingusinis,eentss Ihdentra Agreebetweenrner
the
frared lb
orpotatiort � "�# rpo #late" rad 13
atl1;t i foundation sul t rttr�g. Ra
oap to in�rostrnents .andloti
.0.01- ess ar Joh )evetopmer t
utr et a +��el i at 'oundation''), a
Irt1 aI au iar of the f tate of
yiiH�AS the TTxs
l evise d Ci 111, tute pevelopmerht Qorporation Act'uf 1978),
C'i, Tide 1 Z Tees Lc Government GoOe, etnpouvered is cal c
ability to ad pt en optional Iii sales and: use°tax, as a. meanie o
ecopom c health `and prosperity sit their itizens,
remora s Taxan
coined, Eat u
tnunitles with tr
rroving the
Pf Prapost0. was
State ornptrollerof T0x00:-.,
istf ;Business and'ob
e ord r once:adopting the traitotiilar guage tftat at #hOti ed the ;ofti
t x pro eds spe ifieatly p, 'VI. that the funds could h usedforto
tot a nizations to provide training, retraining acrd education to insure tl
i s uis required fpr the-' jobs' of the fut• ,te are irk piece,
1lI HEi Cc rpiis C1 risti irys neSS and .lel evaloprCmi
the purposes of encouraging sand ass ng;entitles in the c
tf Corpshnsti,'Tecae
orre far`
fon at tobr the cizens'.
®x1�r064i
(er'ror's Texas Revised
.....................
, and expendttures of the,
a GitaCouncil approved the it oratictr 's amende uldelir � .and:
r ting ueit +ens' tncehtives ort Womb:
,
Pale 1 bf `tCi
biliNE,iN9ii
fiel Mar Foundation intends to help Cel' Mar• College (DMC) -expend t MC s
existing Transportation Tralni gEl r g r pr rchastt g arid, installing six down
sirhutators, Into three customized ma de ola room units, rl toh rnrlll allow �Mc to serve
morestudents:and train students tea obf in their o,mmercial Driver's, License
Ili l REAS to I' ind sines rleod- tp fill over( Onf? cot Martial driver position:
ii H R A; local rti r Ustn produce meaningful, wealth producing Jobs that bring in
dollars front'orside Cofpus Christi,'into tie Citi; ai d
WN E dei filar ollege has.n vestr c or will inve&`t=approximately 691 261
assets and will hire additional rnstruotora and operate the program at am annual
estimated cost -to. Del Mar' College of $795142
in
WFIEREAa the TrartstZortetion Training expansionwill further del [lar College's
mission of.,_ uca#
ipn and ecanami:deveiepent
ler consideration of the..covena ts. promises, acid conditions stated in this Agreement,
Cor oration and .0 et Mar Four' datro agree, as follows.
eement `Effective Date') is he latest
'I � fectlye date; The `efredtive date of this gl
date; flat elther.p executes tfrls Agrreen. ent.
fieri : Theterm of thrs,Agreement rs for f.00.. e begin nn ore the effecti e
serforrnanoe Requirements andGrants:
e,
a. Dei Mar eellege til inyest.at least $69'1.,26.1 in assete for the Transpc rtation.
Tr'ain'ing program Del, Mar Fourrdatror5 shall annually report their': actual'
investments et the facility; and provide documentation to support'the report 'ttie
Corpus ChristtStie, ass and JobDevei°proerit.CorporatJon,
Mar Fo ridatroo h [Il purdhese the six trnulptors fpr°
transportation t ining Progr..am
c. Del Mar College stall expend at least'05142 evary year to°
operate a expansion; of the:'fransportation Training program.
upport arid:
d. The Cdr oration wi l reimburse' l el Mar Fbundationi for the casts incurreEi hj
Del Mar Foundation toyaogirrr}e six truelc def r�. sir' ul tars tc expand the Orel M
Gol ge Transportatiot Training `Program The amount, reimbursed by they
Corporation may not exceed $750,0IJtl
e. 3n ti e0.10.4 l anrllversary of ilia effective ciete ofathts greemeirt, del Mar':
�o. dat nn shall report to the Corporation thenumber of students placed' with the
bu~ lr essea within the re torr requlring a dbr mere1?wl s river s iipense that were
trained Itr t del Mail" liege ti rough the Traji aorta#rc ra Training Program and' the
Page 2 : f 1;4
AGREEME r4A iiftla�Tit+ iraili[tTgi~ii0.000d°Q32 21,2
average starting annual saieries- ployetwl hlrt Co ius; t hrt
drrlrg the'prrvreus yearn,
Creation ualrfition.
I, rdet to coutlt::,-,,.,.0.
aS created �e Lrndertliis Agreerrtet t t1,te,tc b roust pay;
wages as required ter Beaen'Oil, . , Texas Local,Govertimertt Code, formerly
Seat`ron 38(b) of the Development Corporation Act pf 1979, as an. lended," which'Is
the..tnedian"wage vof tl e occ patron ,in the Corps Christi MSA as' deterrnined by
Texts Workforce Cpmmisstof's Texas. industry F rot les report:'
b i alt tt a .permanent job::is:defined in the Type Guidelines;
Buy Lbcai Provision
a..DeI hilar Four datron agrees to ,use its be�:effartstO give preferonce:;and
pni: m
priority:to iucaanufacturers, suppliers,, cont otors and labor, exoept`where%
ndt.teasonabfy possible to do so without:added expense, attbstarxtial
i.,con ehiel ce, sar sacrifice.: in aperating-effiolency.
h. for the _pur Oees c f.this sectrori� tho;term "lec�ai"' a ueed to describe
manufactures, supplle,rs cantracter ,and labor mull d,es-firms, buslhe es :an
aer$ons who reside in or maintain an ice with:ln, a 5t? r ule r drus of Nuece
County
8 liWarrarn %e, 'Del Viler Fo. odatiot warrants end represents to Corporation the'
followrngx
a PO;Mar Foundation is a 501(c)3 organrzatiOtt and.... 509(a)(1) pubiic Oharrty
under the,. nterhai Revenue Code, .'dulyorganized, vafidiy: existing, andin good
standing under the lacus of the Statkof Texas; has all corporate power and
authors to miry an its business es presentiy:ccnducted In Corpus kChrtsti;
Texas: "
b: 1 el. Mar Fou tIti: 1
orrn, the ,terr»s € f .this
t ,ta SOthotrtty:tp enter into and perfpf,m, end Will'
ecrnent to the=best of Its :ability.
Del Foundatinhastimelytledandwill:trnelflealoS, and
Federal tax reports and returns re4utrad oy laWs to be filed and els Texas,
assessrnenits, fees, and other governmental cl rges, including applicable ad
valorem taxes, have been tr teiy„paid, and'wdl be firmly P0.0., .40,00.0 the term '0 f
this riernent.
d IDel r Irouridatior has:access to the Texas Developrnent Corporation. Act
Sub rtie Ct, `Title 92, Texas Local Gpven meet `Code, ort tie State of Texas'
weI sits,,, and ad rtowLedges ti at the funds granted it this Agreement must to
otllized solely tor' purposes uthorized under .ate saw ano icy fheterms .0,„f:01.1*..„.
Agree tient
susibi ~S6 tNCEN1 E,AGR EMENr—Pet.
Oa e of
Ittl*TrainiTKPExpanarbn 09'
:Ot2
e, "the parties a cecuting4his Agr menton behalf of %l Mar Foundation are
duly authorized to execute tt cis Agreement an behalf, of lei Mar Foundation,
C;ornp lance w thi Laws .Del MarFoundation shall obser re and obey all applicable
iulations, and.rules ofthei'Federal, State,,county, and city
laws,' ardinence
qov rnrnents
1. l ion l
lOotimbuttiOn., ,Dei Mar Foundation co nant;s and; agrees that Dei ttiliar
Foundation will not discinmrnate or permit disortmination aciainst any person or group
,persons, with regard to employment and the provrsll n of services at, on, or In the'
ac[l t , on the grounds of race, rellgron, rational c rig rnh marital status, sex, age,
disk tiny, orinany arter'prohibted y the laysof the United States orthe tate of
Texas:
9: Forfce,.lttlai:ure ifthe Caroration orlel Mar Foundation era prevented; wholly oi" irr
part; from f fulfilling its 0birggations a der th s Agreement by reason of ao act of hod,;
unavoidable accident, a00 pf enemies, firres, floods, goveronlental restraint or
regu(ation,,.other causes of force m inure, or by reason of n umetances beyond its
conte i, then theYcrblrga tons of ttie Corporation or Del!Mar Foundation are terr:.iporai iy
suspended during corithnuatron .af the force majeure `if either party's oblrgatron is
affected by' any of the causes. of f i,rce r :a sure, ;the party of a ted shall; promptly Trot t
the', other party in writing, giving full particular ;of the for' maieure as°soon as',possible
after themoccurrence. okthe c8use ar u os relied 4pon.
to Assicgnment , Del Mar Foundation may not assign ail or•' any part of its rights,
privili gee
or 0: er this agreement without the prror� written approval alba
Corporation and City Any attempted assignment v it lout approval i; void,, and
constitutes a breach ofthrs Agreement
nderrrhl` r. TOtl�e iarcte .t authorized. 1 i ! el:li ar Fo rrh lafiop
covenants fo: lay lndernnl , save, .-00dhliitt harmless the
Cor ora ton, the .C1 ;theft respective;' officers, employees, and agents
(°i wJemnieees") against all llablli r, damage, doss, claims! demands%
anis actii ns ciEf arty klrx rraccountP o> personall . . „. . (Including,
,.
without l miting > he fs ;r gol, g, nsation and death
wi�rlfer5 coupe,,
claims.), or p ►pe t toss or� damage of any kind which arise oft o r
ares In aye manner connedted With, off' ar'e 'clai ed to arise out, ►far e
in any manner connected wfth:Del Mar Founda c n activdt es
con tictod neer orincidental tai this Agreement,, ,lnP10019 any injury,
logs ar c
emage,eaarse4bi' tyre scale o'ocsnlirlb1xlfr negllgenoa oil airy
.or all of the lrtdem,?iteasx Del Marl-oundatiocmust, Atits- own
expense, lnvestirgate all those claims and demands, attend = eir
s+ ftl merit oro her dlspositiorn, defend alt actions hated cin those
claps and de rand s wi `h counsel sat sfac:tory to indemn taes ani`
Fee 4 cx F 1 t
sir
SS:IICENTIV AGR T ning xpansion;ii$2:22O12
eaallc
*Ind .ruin
actions.
1
$I
s _ n: all tither cosi
�xre tc�ss,c
rnexpenses of
I ds, demands,
any
rr
vent . of default, The following e•
vents co: atitutaa default cif this -Agreement
a Failura #Del" completety oorrtply with any
one or more of the requirements, blrg tions dutl+ s,, ter rs ccrndltrons, or
warrant140f this Agreentet t, uthor than 1he'requ` rement to create 4:,:o#01#0.401..
p0:00.0t hew jahe car maintain a.minimum,numberof jobs in any specific year;
However..:the 1 tnimurt num erg of neNrtc bs mi t be `created arid mi ntalned
the,*nd of'the co#itract term.,
bThe Carporatlon or Citydetermines .that? any representattgn or warranty dn:
behalf of Del Mar Foufdatrgn rtt tried In7this Agreeimlent ar rn any financial
staterrlent,! trtifio tp.. report;. or opinion (submitted to the Corporation irr
conne :ttora wlth this- reernent was. incorrect ar mrsleadrn tti arty ro:triol
respect whenade
oAny judgment is assessed against Del Mar Foundation or any attachmentotr
otf ter l+avy;agarnr tt tine prppertyfof` C el Mar Four dation with:respect to a ereitn
remains untaald; undischarged or not d srniased fora penod 1 0 days.
d. Det Mar f=oundation makes: an: assignment for the benefit of creditors.
e. 'Del Marfoundation dattar flles:a petition lr hankruptkyor is.adjudioated Insolvent
or bankrupt
f.
WO* purred fey Ciel. M.ar .Foundation beicorhe definquertt acrid Del Mer`
l"ourdatleh (elle to tlinely acid properlyfo;llow thre.legal pricedure for, protestor
contest
g Del hilar` Foundatiror changes the general cnarac t r of brisineass as conducted.
as of he date th s,Agreernent rs approved by tyre C:orpc�r ilfe tit
1B , t otrce of Default. should the Corporation or tarty detennlne that Del Mar
Four dation ts. Ih:default according to the term:of this Agraee nerd,' he Corpora ion er
C ity shall rtotlfy Dei liar Foundation in Wt ting of MO'
event of defaujt and; provide 66
days from °the date o °t a notice (" i u e :Period"} -for Det Kat Foundatiianio cure. the.
event of default._
14,.:l estitts of ltncured Default Ater exhausting good faith attempts to address any
default during the cure Prix and king-<lntc ccount any extern atlnr ;,clrcumstan s
thalt might Piave occurred trough ne fault bf del: Mar l=ourtdatIor?, a detarmined by°the
Board of Directors of ft%e Corparatla�t�, the `fuHowiri a ions must be taken for4any!
.defeuit,,that remains.uneured PeriodR
i3uuSINESSINCENTM,AGREE1t
Pager 5 O 10 ..
Del. Mar Track Triantngl E?panalor9Z2412'
1:?,, ar FoundatlOn Shaltlintn0dt 049100:ay:Of:- 000Paid 1.)y."Q00Oltaticirt
under thj*Agr001#00t
Del Mar Foundation Shall pay...-CoarporaitiOn!s reasonableattorne:yle.es and.
CoStS.Of COUrcto,-.061leot aOOnta.OLle t-OCOrporatiOrl,
ShaiEhave 09. forificir obligatiOritAO Der Mar-Fo.undatiortunder
this•
Agreement
d .NeitherthaisCityinOt'the.zOorporatiOn May be hed any
*IVO* •
The Corporation may plosuwalixemediesavailable„under Iaw
NoWaiver.
a, NO`waiver of any Govpnantor Pfldit1OflOr ih..0-fbrooth °fops,' coveng or
• conditiori.OtthiS.Agreernent, constitutes a,iiiatiier cf,any subsequent:breach of
cOanantorGOnditto.n. Ofthe:Agreenient„.
1:4 No wader of any pavenantbrodnu;litiOrr ti)e-breach of anytovenant or
condition ofthis Agreement:0justifies. or authorizes the .nonobservance on any
Other .G1000,01op.Of the covenant .or condition or any other covenant Or Condition Of
thie.,Agreemeni,
.
G. Any waiiietor indulgence of Del- Mar Foundation*sdefaUjt may.not be
. .
considered an estoppel against the Corporation.
•
0-tiressly:40derStoodthatif .at anytime Dal Mar Founda.tion':isin.defaUlt
, - ,
in any of its ,:cOrKlitionsvt CoYerrents, of this .:Agreement the:4000re ,On'1110'"part of
itheOrPOltratitikto-proniptiyaveii itsof.of th:Ektight*apq TotheOtos. that Ano.
. - .
CbrporatiownlaybaVe, -Witinot be -considered a waiVer:OWtne-,partofine.,
. : .
Co*ration,:,...btit Q000.04100 may A0y,:tiMO avail itself'orthe_rights or remedies
or elect to terminate this Agreement on account of the defaUlt,
De Marf�undationt:sp.egitiid„ llyagrees„. that.COrp ,Oratidifsh all On19:Peliel40.10,
MatF0UndatOWfOr-the-001Oa I amoOnt'of the rnoney,..graritslote conveyed to Def Mar
-:
Foundatibqt.sandshall not bettabia:,to,DeLiviat FoundationfifOranyectualor:::
...0.61j$440frittatdarriagediredt,',20rindireCt OttOrPOYf000,,--0:010tof.:,;00:40.for any
, . . _ ,
actOf default 4ipotorptioompOottolotfrio.::).pt this agreement Payment by
Corporation:Is'.stricity.-.111ilitectlothockfund00 allocated.:::bUdgOted, and Obijected".-$0101Y.
dOring:;th0 grant term af thls agreement qptoptot(pt(00011:-4:00-;:jto',00Atefforts to
antjdipate,,eoOnorniocOnditionSandtO'budgetaccordiggjy„ -:Floweve6:::Ifisfurther,
urid:6tot)-.61:Aitid,40.040,01h.t..,,,P,110.01.04h000001100t.saleata15 revehue,coiieoteofor-ohy
one year 0,0:100100100,totoi am014rit,pt grants to be paid to aII contracting parties with
Oorporationfor,thatlyearilhen:iwthafevont,;:all contracting pailleS'enall re,001Ve:ontY
tilor ofp..;:t01.4 sharf*dfthkavaliable4010aIa);(sroYen00'i:PrO4t-Y0ar*0,ss''.PPFP0ratibri!s
'customary and usual :costs,,and':expensestaascOmpared.loeach contraCting-partieS!
Page6ofl�
susiNsasi.NoSqrf.,w#og#S Expansion
grrt arnpcnt ftr that years Ind Corpc
that timeor st any time In the fere
suppvrking douurrientetion, a itegttestac
loitterr request from del Mari Foundation t
supporting dttdurrrentatron
ion shall not`be fiable tafor arry deficiency of
leis event, Corporation wripl ero de alio
ayments`to bei made shall also require a
be. tccompanted by..all. necesser
t:;
1,
°tides:
a. Any required written notices .shall be sent m
prepaid, addressed tie follow
Del Mar. .
Dei Mar College Foundation
Atte, Executive Dire ctor;of Development
'i 01 Baldwin
Corpus,Chrtsti„ Texas 78404
certied mail, postage
o poration! . .
pity cif corpus Christi
�usinesa and Job Development'Corporatlon
Attn Executive Director
1201 Leopard Street
Corpus Christi,, Texas 78:4Q'I
A copy OVA!! notices and
folloWing:address:
City of, Corpus,Chrisf
Attu. City Mareger
Box:9277
providedaoove,,
respondence must be°sent `the City at the
Cows Christi'„ Texas 7846
Notice .is effective upon deposit in the United States mail in the manner
16, l` ioor'# drati n of oct et dec>rrrn t < The Goriaus Christi lBusrness .404 Joky
Development Corporation Guidelines and; Criteria for Granting Business- Incentives
Corporation Guidelines"), as amended.,'re Thcor Borated into This Agr errant
Amendments or Modifications ;. No a rrendrrrents or macliticatinns to this Agreement:
maybe made nor any provision waived, unless ire writing signed by a person duly
authorizedto sign ac ieements on t ehaifof each party;
2Q .Relationship of parties. In perrorming this Agreement, both the Corporation and
Del lar Foundation will actin an individual capacity; and riot as agents,
rrpresentatiyes, employees, employers, 'partners, joint verltu er , of associates of one
Fge 7 of
ilii=04tiEM T W liii M tTti,ck 101110:,, nBi#n Q$' PIZ
another The err:. ployees or agehtsaof either l e rriay not; be, nor be construed tt be,
the employees a agents of the of er party for any p rpose.
21Captions The ptions�ln this. Agreement are- for convenience only anad are not a
part of this Agreement : The aption Vie, not in arty way limit or arnpllfy the terms and
provisions o thar®cert
5everabilit
a Iffor a y reason any. sadtran, :paragraph, s bdivision, clause, provision;
phrase or wc'rd a this Agreement or the application of this Agreement to ariy..
person or circumstance is, to:'any extent, held illegal invalid, or unenforceable.
tinder present orfuture #ayv pi` by a final JOgmerit of a court of competent
jurisdiction, then`the remainder ofthis Agreement, or the application of the term
or€provision to persons or circumstances: other then those as to which it 'Staid
illegal, invalid, or unenforceable, vuli3 not: be affected by the law.orr judgment; for it
is. the, definite intent of;the partiestri thls Agreement=thet everyrsection,
paragraph's subdivision, clause, provision, phrase, air word .of this: Agreement be
given full :farce:anc effect for its purpose;:
b. To the extent that any clause or provision is held illegal, > invalid, or
unenforceable un er present or future law effective during the term of this
Agreement, then the remainder of this Agreement is not affected by the law, and
in lieu of any illegal, Invalid, or unenforceable clause or provision, a clause or
provision, as similar in terms to the illegal, invalid, or unenforceable clause or
provision as may be possible and: be legal, valid, and enforceable, Will be added
to this Agreement autometical y, .
23. Venue. Venue for any legal action related to this Agreement is in Nueces County,,
Texas;
4 Sole Agreement This Agreement constitutes the sole agreement between
Corporation and Del Mar Foundation Any prior agreements, promises,; negOtiationt, or
representations, rrerbal r otherwise, not expressly -stated in'this Agreement, pare of hp:
forme and effect.
25Survival of terms .of agreement andObligations. o€' parties. The terms of this,
agreement.aind the obi getior of the parties relating to Section 14`a and b shall survive.
the:termination of this agreement.;
BUSINESS.INCE
NT'I'
I���iEi+i'r C3�1
Page 8 of 1 Q
Truck Training EWansion 03224012
Charlotte- Yochem
Assistant City Attorney
For City Attorney
t S]N s INC f�T GR 4► � 1' �, Del A►1 r Tii ct� T iir t 9 instar O3222Q12
!el `Mar College` Foundation; Inc.
un,.CFRE;
Executive'.Dire or of.:Development
E., TT Tl
GOt : ITY { F NUE
Tt�
$=instrument was. "acknowledged b ft r+a.rne• oto
nary C fcQueen, CF E, E ecuti a Director f Develo
Foundation,; Inc., a 501 anization supporting Del
subdivision± of the State of Texas, on behalf f3the F` aun
P J , ;p12,,by
rn Pt, Del Mar' College
gar Coll e, a political
Notary 171401i
State Of Texas-
,:DELIA 4. PERK
Iiot ry Pild�£i
4 erAt6 OF ids
4y Cantu Exp.: Com.
EUSI ..ssoice4tt( AQREEMENT=.P6I.M tTtOtTroif int pansisg 2+;1121 Ingo
BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT
This Business Incentives Project Service Agreement ("Project Service Agreement") is
entered into between the Corpus Christi Business and Job Development Corporation
("Type A Corporation") and the City of Corpus Christi, Texas ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
C1, Title 12, Texas Local Government Code, empowered local communities with the
ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax
for the promotion and development of new and expanded business enterprises at the
rate of one-eighth of one percent to be imposed for 15 years;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Type A Corporation's Board of
Directors ("Board");
WHEREAS, the Type A Corporation exists for the purposes of encouraging and
assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Business
Incentives;
WHEREAS, the City Council approved the Corporation's amended Guidelines and
Criteria for Granting Business Incentives on September 18, 2007, which the City
Council incorporated into the City of Corpus Christi Economic Development Incentive
Policies 2009-2011 on November 17, 2009;
WHEREAS, the Board, on October 18, 2010, again amended the Corporation's
Guidelines and Criteria for Granting Business Incentives;
WHEREAS, Section 501.073, Texas Local Government Code (formerly Section 21 of
the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised
Civil Statutes), requires the City Council to approve all programs and expenditures of
the Type A Corporation;
WHEREAS, Del Mar College Foundation ("Del Mar") has submitted a proposal to the
Type A Corporation for a $750,000 grant for locating their headquarters in Corpus
Christi;
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WHEREAS, the Type A Corporation and Motorglobe have executed a business
incentive project agreement for the creation of jobs related to Motorglobe locating their
headquarters in Corpus Christi.
In consideration of the covenants, promises, and conditions stated in this Project
Service Agreement, the Type A Corporation and the City agree as follows:
1. Project Service Agreement to Implement Business Incentives Agreement. This
Project Service Agreement between the City and the Type A Corporation is executed to
implement the Business Incentive Agreement for the Creation of Jobs between the Type
A Corporation and Motorglobe related to Motorglobe locating their headquarters in
Corpus Christi ("Business Incentive Agreement").
2. Term. The term of this Project Service Agreement runs concurrently with the term of
the Business Incentive Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Type A Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Business Incentive Agreement for
the Type A Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Project Service Agreement is January 1,
2013.
6. Amendments or Modifications. No amendments or modifications to this Project
Service Agreement may be made, nor any provision waived, unless in writing signed by
a person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Service Agreement or the application of this
Project Service Agreement to any person or circumstance is, to any extent, held
illegal, invalid, or unenforceable under present or future law or by a final
judgment of a court of competent jurisdiction, then the remainder of this Project
Service Agreement, or the application of the term or provision to persons or
circumstances other than those as to which it is held illegal, invalid, or
unenforceable, will not be affected by the law or judgment, for it is the definite
intent of the parties to this Project Service Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Project Service
Agreement be given full force and effect for its purpose.
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b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this Project
Service Agreement, then the remainder of this Project Service Agreement is not
affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or
provision, a clause or provision, as similar in terms to the illegal, invalid, or
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Project Service Agreement automatically.
8. Captions. The captions in this Project Service Agreement are for convenience only
and are not a part of this Project Service Agreement. The captions do not in any way
limit or amplify the terms and provisions of this Project Service Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
Ronald L. Olson Eloy Salazar
City Manager President
Date: Date:
Attest
Armando Chapa
City Secretary
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