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HomeMy WebLinkAboutC2020-123 - 4/7/2020 - Approved AGREEMENT BETWEEN CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND CITY OF CORPUS CHRISTI FOR REPAIRS TO ARTERIAL AND COLLECTOR STREETS AND CREATION OF SMALL BUSINESS INCENTIVE PROGRAM This Agreement for repairs to arterial and collector streets and creation of a small business incentive program ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and the City of Corpus Christi ("City"). WHEREAS, the Texas Legislature in Section 501 of the Local Government Code (Development Corporation Act of 1979) 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's City Council ("City Council") and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, the Board wishes to provide funding for specified arterial and collector streets that promote or develop new and expanded business enterprises and allow the City to create and manage a small business incentive program in the amount of$2,000,000 to assist with COVID-19 recovery within the City; WHEREAS, the City wishes to create and manage a small business incentive program in the amount of$2,000,000 to assist with COVID-19 recovery within the City through an agreement with a third party; WHEREAS, the Board has determined that it is in the best interests of the residents of the City that the Corporation use business and job development funds to provide funding for specified arterial and collector streets that promote or develop new and expanded business enterprises and allow the City to create and manage a small business incentive program in the amount of $2,000,000 to assist with COVID-19 recovery within the City; In consideration of the covenants, promises, and conditions stated in this Agreement, the Corporation and the City agree as follows: 1. Agreement to Provide Economic Development Services. This Agreement between the Corporation and the City is executed to provide the specific and measurable services for the promotion and development of new and expanded business enterprises through the repair of arterial and collector streets within the City, namely Patti Drive from Saratoga to Dunbarton Oaks and Shoreline Blvd/Ocean Drive from IH 37 to Louisiana, with the exclusion of any portion of the work completed prior to April 3, 2020. In exchange for the funds provided by the Corporation for the repair of arterial and collector streets, the City will create a small business incentive program, through Chapter 380 of the Texas Local Government Code, that provides assistance to small businesses impacted by COVID-19. The small business incentive program will provide low-interest loans to small Page 1 of 3 SCANNED businesses impacted by the COVID-19 pandemic for purposes of business development and incubation and the creation and retention of jobs within the City. The City may enter into a Chapter 380 agreement with a third party for the management and administration of the small business incentive program. If the City fails to create a small business incentive program by September 30, 2020, the funds will be returned to the Corporation. 2. Payments. The Parties agree that the Corporation will pay the City the amount of$2,000,000.00 by May 1, 2020. 3. Effective Date. The effective date of this Agreement is the date on which the City Council grants approval for this Agreement, and it is signed by all parties. 4. Term. The term of this Agreement is for one year beginning April 3, 2020 and expiring on September 30, 2020. 5. Termination. The Parties may, by written agreement, terminate this Agreement at any time. In the event of such termination, the Corporation will be entitled to a refund of any funds not used as part of a small business incentive program by the date of termination. 6. Amendments or Modifications. No amendments or modifications to this Agreement or to the Services may be made, nor any provision waived, unless the amendment or modification is made in writing and signed by persons duly authorized to sign agreements on behalf of all parties. 7. Notices. a. Any required written notices shall be sent, certified mail, return receipt requested, addressed as follows: If to Corporation: City of Corpus Christi Business and Job Development Corporation Attn: President 1201 Leopard Street Corpus Christi, Texas 78401 If to City: City of Corpus Christi Attn: City Manager's Office 1201 Leopard Street P.O. Box 9277 Corpus Christi, Texas 78401 c. Notice is effective upon deposit in the United States mail in the manner provided above. Page 2 of 3 8. Relationship of Parties. In performing this Agreement, the Corporation and the City shall act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint- venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. CORPUS CHRISTI BUSINESS & CITY OF CORPUS CHRISTI JOB DEVELOPMENT CORPORATION i Scott Harris Constance Sanchez President , Chief Financial Officer Date: 1 — �c� Date: 0 `f - - o ATTEST: Cikte_Acc.�r� Ord. (7_,,,,.,.�� ► ' Reb cca Huerta City Secretary rnL 4/7 / a-o Date: APPROVE' • = �'' FORM: ,Jji Assistant City Attorn- Page 3 of 3