HomeMy WebLinkAboutC2020-309 - 6/16/2020 - Approved CHAPTER 380 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT
BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS AND
THE UNITED CORPUS CHRISTI CHAMBER OF COMMERCE
This Chapter 380 Economic Development Incentive Agreement ("Agreement") is entered into
between the City of Corpus Christi, Texas, a home-rule municipality ("City) and The United
Corpus Christi Chamber of Commerce, a Texas nonprofit corporation ("Chamber").
WHEREAS, the novel coronavirus, known as COVID-19, has created a global pandemic
which has led to the shuttering of many businesses in the city, which in turn has led to job
loss, lost income, loss of health insurance or medical benefits, housing and food insecurity
and other challenges in the community;
WHEREAS, the City has established a program in accordance with Article III, Section 52-a of
the Texas Constitution and Chapter 380 of the Texas Local Government Code("Chapter 380")
under which the City has the authority to make grants of public funds for the purposes of
promoting local economic development and stimulating business and commercial activity
within the City;
WHERAS, one way that the City can support struggling local businesses during the Covid-19
pandemic is to develop a utility assistance program which would offer a one-time credit to the
utility account of qualifying commercial businesses who maintain a water/wastewater utility
account with the City;
WHEREAS, the Chamber has offered to administer the utility assistance program for the City
in return for a small administrative fee;
WHEREAS, the Corpus Christi City Council has adopted Ordinance No.032135, authorizing
the City to enter into this Agreement with the Chamber for an amount not to exceed $500,000
in recognition of, conditioned upon and derived from the positive economic benefits that will
accrue to City through the Chamber's administration of the utility assistance program
providing relief to local businesses and stimulating business development and commercial
activity in the city;
WHEREAS, to ensure that the benefits the City provides under this Agreement are utilized in
a manner consistent with Article III, Section 52-a of the Texas Constitution, Chapter 380 of
the Texas Local Government Code and other law, the Chamber has agreed to comply with
certain conditions to the payment of those benefits; and
NOW, THEREFORE, in consideration of the mutual benefits described in this Agreement, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, City and Chamber agree as follows:
1. The recitals to this Agreement are hereby incorporated for all purposes.
2. Effective Date. The effective date of this Agreement ("Effective Date") is the latest date
that either party executes this Agreement, or the date this Agreement has been finally
approved by the Corpus Christi City Council. Chamber understands that this Agreement is
dependent upon the approval of the Corpus Christ City Council.
1
SCANNED
3. Term. The term of this Agreement is for One Hundred and Eighty (180) days beginning
on the Effective Date.
4. Performance Requirements.
a. Chamber agrees to use the funds to be provided by the City pursuant to this
Agreement to administer a utility assistance program for qualifying commercial
businesses in the City in accordance with this Agreement and Chamber's proposal,
which is attached hereto as Exhibit A and incorporated by reference as if laid out
herein in its entirety.
b. Chamber agrees to provide the City with a sworn certificate by an authorized
representative of the Chamber, certifying all amounts received from City and all funds
distributed to qualifying commercial businesses in the city pursuant to this Agreement.
c. For every utility assistance grant issued to a qualifying commercial business in the
city, Chamber shall ensure that the commercial business keeps their business open in
the City for at least ninety (90) days following the distribution of the utility assistance
grant.
d. The City may audit Chamber's records to determine their compliance with the terms
of this Agreement. Chamber, during normal business hours shall allow City reasonable
access to its records and books and all other relevant records related to each of the
economic development considerations and incentives and performance requirements,
as stated in this Agreement.
5. City's Responsibility. The City will credit the commercial business utility account$500 upon
written notification and documentation from Chamber verifying that one qualifying local
commercial business is associated with one City utility account. A qualifying local commercial
business shall be eligible for no more than one $500 utility assistance grant. The City's utility
assistance program will continue until City reaches the maximum funding available under this
utility assistance program of $475,000 or termination of the Agreement. The remaining
$25,000 will be paid to the Chamber as an administrative fee within thirty (30) days following
City's receipt of invoice and proper documentation. Any funds not expended by Chamber
within 180 days of the effective date of this Agreement shall no longer be available under this
Agreement and shall not be an obligation of the City.
6. Warranties. Chamber warrants and represents to City the following:
a. Chamber is a non-profit corporation duly organized, validly existing, and in good
standing under the laws of the State of Texas and has all power and authority to carry
on its business as presently conducted in Corpus Christi, Texas.
b. Chamber has the authority to enter into and perform, and will perform, the terms of
this Agreement to the best of its ability.
c. Chamber has timely filed and will timely file all local, State, and Federal tax reports
and returns required by laws to be filed and all taxes, assessments, fees, and other
governmental charges, including applicable ad valorem taxes, have been timely paid,
and will be timely paid, during the term of this Agreement.
2
d. Chamber acknowledges that the funds transferred under this Agreement must be
utilized solely for purposes authorized under State law and by the terms of this
Agreement.
e. The person executing this Agreement on behalf of Chamber is duly authorized to
execute this Agreement on behalf of Chamber.
f. Chamber does not and agrees that it will not knowingly employ an undocumented
worker. If, after receiving payments under this Agreement, Chamber is convicted of a
violation under 8 U.S.C. Section 1324a(f), Chamber shall repay any unspent payments
received under this Agreement to the City,with interest at the Wall Street Journal Prime
Rate, not later than the 120th day after the date Chamber has been notified of the
violation. The Company shall further repay to the City its outstanding customer loan
fund receipts dispersed under this Agreement (less any loan losses), not later than 60
days after receipt.
7. Compliance with Laws. During the Term of this Agreement, Chamber shall observe and
obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and
city governments.
8. Non-Discrimination. Chamber covenants and agrees that Chamber will not discriminate
nor permit discrimination against any person or group of persons, with regard to employment
and the provision of services at, on, or in the Project, on the grounds of race, religion, national
origin, marital status, sex, age,disability, or in any manner prohibited by the laws of the United
States or the State of Texas.
9. Force Majeure. If the City or Chamber are prevented, wholly or in part, from fulfilling its
obligations under this Agreement by reason of any act of God, unavoidable accident, acts of
enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or
by reason of circumstances beyond its control, then the obligations of the City or Chamber
are temporarily suspended during continuation of the force majeure. If either party's obligation
is affected by any of the causes of force majeure, the party affected shall promptly notify the
other party in writing, giving full particulars of the force majeure as soon as possible after the
occurrence of the cause or causes relied upon.
10. Assignment. Chamber may not assign all or any part of its rights, privileges, or duties
under this Agreement without the prior written approval of the City. Such approval will not be
unreasonably denied. Any attempted assignment without approval is void and constitutes a
breach of this Agreement.
11. Indemnity. Chamber covenants to fully indemnify, save, and hold
harmless the City, and its officers, employees, and agents ("Indemnitees")
against all liability, damage, loss, claims demands, and actions of any kind
on account of personal injuries (including, without limiting the foregoing,
workers' compensation and death claims), or property loss or damage of
any kind, which arise out of, or are claimed to arise out of Chamber's
activities conducted under or incidental to this Agreement. Chamber
3
must, at its own expense, investigate all those claims and demands, attend
to their settlement or other disposition, defend all actions based on those
claims and demands with counsel satisfactory to Indemnitees, which
choice of counsel shall not be unreasonably denied, and pay all charges
of attorneys and all other costs and expenses of any kind arising from the
liability, damage, loss, claims, demands, or actions. The requirements of
this provision will survive the expiration or earlier termination of the
Agreement.
12. Events of Default by Chamber. The following events constitute a default of this
Agreement by Chamber:
a. The City determines that any representation or warranty on behalf of Chamber
contained in this Agreement or in any financial statement, certificate, report, or opinion
submitted to the City in connection with this Agreement was incorrect or misleading in
any material respect when made.
b. Any judgment is assessed against Chamber or any attachment or other levy against
the property of Chamber with respect to a claim under this agreement remains unpaid,
undischarged, or not dismissed for a period of 120 days.
c. Chamber makes an assignment of funds received under this agreement for the
benefit of creditors.
d. Chamber files a petition in bankruptcy or is adjudicated insolvent or bankrupt.
e. If taxes owed by Chamber become delinquent, and Chamber fails to timely and
properly follow the legal procedures for protest or contest.
f. Chamber changes the general character of business as conducted as of the date this
Agreement is approved by the City.
g. Chamber fails to comply with one or more terms of this Agreement.
13. Notice of Default. Should the City determine that Chamber is in default according to the
terms of this Agreement, the City shall notify Chamber in writing of the event of default and
provide 60 days from the date of the notice ("Cure Period") for Chamber to cure the event of
default.
14. Results of Uncured Default by Chamber. After exhausting good faith attempts to address
any default during the Cure Period and taking into account any extenuating circumstances
that might have occurred through no fault of Chamber, as determined by the City Manager,
the following actions may be taken for any default that remains uncured after the Cure Period.
a. Chamber shall immediately repay all unexpended funds paid by City to it under this
Agreement. The Company shall further repay to the City its outstanding customer loan
fund receipts dispersed under this Agreement (less any loan losses), not later than 60
days after receipt.
4
b. Chamber shall pay City's reasonable attorney fees and costs of court to collect
amounts due to City if not immediately repaid upon demand from the City.
c. Upon payment by Chamber of all sums due, the City and Chamber shall have no
further obligations to one another under this Agreement.
15. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or condition
of this Agreement, constitutes a waiver of any subsequent breach of the covenant or
condition of the Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or condition
of this Agreement, justifies or authorizes the nonobservance on any other occasion of
the covenant or condition or any other covenant or condition of this Agreement.
c. Any waiver or indulgence of Chamber's default may not be considered an estoppel
against the City.
d. It is expressly understood that if at any time Chamber is in default in any of its
conditions or covenants of this Agreement, the failure on the part of the City to promptly
avail itself of the rights and remedies that the City may have, will not be considered a
waiver on the part of the City, but City may at any time avail itself of the rights or
remedies or elect to terminate this Agreement on account of the default.
16. Chamber specifically agrees that City shall only be liable to Chamber for the actual
amount of the money to be conveyed to Chamber, and shall not be liable to Chamber for any
actual or consequential damages, director indirect, interest, attorney fees, or cost of court for
any act of default by City under the terms of this Agreement. Payment by City is strictly limited
to those funds so allocated, budgeted, and collected solely during the term of this Agreement.
17. The parties mutually agree and understand that funding under this Agreement is subject
to annual appropriations by the City Council; that each fiscal year's funding must be included
in the budget for that year; and the funding is not effective until approved by the City Council.
18. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage prepaid,
addressed as follows:
Chamber:
United Corpus Christi Chamber of Commerce
602 N. Staples Street
Suite 150
Corpus Christi, TX 78401
5
City:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
b. A copy of all notices and correspondence must be sent the City at the following
address:
City of Corpus Christi
Attn.: City Attorney
P.O. Box 9277
Corpus Christi, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner provided
above.
19. Amendments or Modifications. No amendments or modifications to this 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.
20. Relationship of Parties. In performing this Agreement, both the City and Chamber will
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.
21. Captions. The captions in this Agreement are for convenience only and are not a part of
this Agreement. The captions do not in any way limit or amplify the terms and provisions of
this Agreement.
22. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or
word of this Agreement or the application of this 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 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 Agreement that every section, paragraph, subdivision, clause, provision, phrase,
or word of this Agreement be given full force and effect for its purpose.
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 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
6
. illegal, invalid, or unenforceable clause or provision as may be possible and be legal,
valid, and enforceable, will be added to this Agreement automatically.
23. Venue and Law. Venue for any legal action related to this Agreement is in Nueces
County, Texas. This Agreement is subject to all legal requirements in City Charter and Code
of Ordinances of City of Corpus Christi, Texas and all other applicable County, State and
Federal laws, and Chamber agrees that it will promptly comply with all such applicable laws,
regulations, orders and rules of the State, City and other applicable governmental agencies.
This Agreement shall be governed by and construed in accordance with the laws and court
decisions of the State of Texas without regard, however, to the conflicts of law's provisions of
Texas law.
24. Sole Agreement. :This Agreement constitutes the sole Agreement between City and
Chamber. Any prior Agreements, promises, negotiations, or representations, verbal or
otherwise, not expressly stated in this Agreement, are of no force and effect.
25. Survival of terms of Agreement and obligations of parties. The terms of this Agreement
and the obligation of the parties relating to Section 14 shall survive the termination of this
Agreement.
26. Public Information Act Requirements. The requirements of Subchapter J, Chapter 552,
Government Code, may apply to this contract and the Chamber agrees that the contract can
be terminated if the Chamber knowingly or intentionally fails to comply with a requirement of
that subchapter.
27. Certificate of Interested Parties. Chamber agrees to comply with Texas Government Code
Section 2252.908, as it may be amended, and to complete Form 1295 "Certificate of
Interested Parties" as part of this Agreement if required by said statute.
City of Corpus Christi APP'2 'ED a S TO LEGAL FORM:
1114,By:
P r Zanoni ZO
City Manager Assistant Attorney nate
Date: - a-19?0)
/el!)�.133etvIIW mo—
Attest:
By: � joaxze%_/+.tiPrV COUNCIL
Rebecca Huerta
City Secretary .. BECREURY 1-4)
United Corpus C, i C"-OP
r of Commerce
Signed: ,At Wan 1
Name:: Aillir i1'�17
Title: sTIS
Date: M
7
THE STATE OF TEXAS §
COUNTY OF NUECES §
This ilei:,
trument was acknowledged before me on the,A/� ay of f/L� , 2020, by
,0WL �1 , �e-G __(title) for the United Corpus Christi
G, ber of Com CV,.a Te as non-profit corporation, on behalf of the corporation.
7c�1 ' Crd// j �; DENALINNEHAN
otary Public, State of Texas =,; tea, :*:iRe My Notary ID#5731684
3..;., - • :.,:
v".•••••;,-7 Expires November 13,2020
8
EXHIBIT "A"
1:voscy*s
).0
SMALL BUSINESS REGIONAL PANDEMIC RECOVERY GRANT PROGRAM
�T
(CITY UTILITY ASSISTANCE PROGRAM AND PORT OF CORPUS CHRISTI WORKING
,asp CAPITAL ASSISTANCE PROGRAM)
Small Business Regional Pandemic Recovery Granit Program:
As our community comes together to respond to the concerns of COVID-l9,the City has taken steps to
ensure residents have uninterrupted access to utility services and that residents experiencing hardships
due to COVID-19 can get utility bill relief. The Small Business Regional Pandemic Recovery Grant
Program helps businesses in Corpus Christi who are having financial difficulties and are unable to pay
their utility bills and other working capital expenses due to revenue loss as a result of the COVID-19
pandemic.
The City of Corpus Christi is partnering with the Port of Corpus Christi to provide up to $750,000 in
grants to small businesses impacted by COVID-19. The City of Corpus Christi is allocating $500,000
from its General Fund for the program which will be used for the small business utility bill relief portion.
A qualifying small commercial business with a City water and wastewater utility account will be eligible
for one$500 credit to their utility account as part of this program. The Port of Corpus Cluisti will grant
up to$250,000 which will be allocated for working capital portion of the grant: 75.9%or$189,750 for
businesses in Corpus Christi; 15.6%or$39,000 for small businesses in San Patricio County, and 8.5%
or$21,250 for businesses within Nueces County but not in the city limits of Corpus Christi.
How It Works:
• Business owners must apply online through the United Corpus Christi Chamber of Commerce
to complete the application
• Small Business Regional Pandemic Recovery Program grants will be awarded to those business
that qualify and will consist of the following:
* $500 will be credited to qualifying grantees who operate a small commercial business
in Corpus Christi and who have a City of Corpus Christi utility account;
-:r No more than one$500 grant will be awarded per commercial business utility account;
* If a small business has more than one utility account with the City, the business is still
limited to no more than one$500 grant under the City's utility assistance program;
t'c The name of the small business seeking a$500 utility assistance grant should match up
with the name on the City utility account;
$500 will be awarded by the Port of Corpus Christi to grantees for working capital,
covering expenses of debt,and workforce needs.
• Businesses will be required to remain open for at least 90 days after the award is granted
• The United Corpus Christi Chamber of Commerce("Chamber")will provide application intake,
verification,assessment and compliance of the grant program
Business Eligibility:
Must employ between 3-20 full-time or part-time employees (or equivalent) at all business
locations in Corpus Christi
C Must have been in business at least 12 months
9
•
O Annual gross revenues of not more than $1,000,000 from all business activities at all business
locations in Corpus Christi
C Must be located in Corpus Christi,Nueces County,or San Patricio County
O Demonstrate a loss of at least 25%of revenue in the period beginning March 1,2020 to present
when compared to the same period in 2019.
Required Documents:
❑ Completed application
O Last 90 days of bank or statements connected to business demonstrating expenses and revenue
O Business formation verification
O Plan of Action&Budget to Reopen or a signed statement to this effect.
O 2019 tax documentation
❑ Most recent City of Corpus Christi Utility Bill for the business address for which the application
is being submitted
Cost and Administration:
Item Amount Description
Grant Fund $750,000 $500,000 from the City of Corpus
Christi;Up to$250,000 from the Port of
Corpus Christi
Grant Administration(5%) $37,500 Grant Administration(50/50 split
between the City and the Port of Corpus
Christi)
Total $787,500
Ineligible Applicants:
o Sexually Oriented Businesses as defined by City Code or the Unified Development Code;
o Businesses deriving more than one-third of their annual income from gambling activities;
o Businesses engaged in illegal activities;
o Businesses with past-due tax liabilities or tax liens against their property in the City of Corpus
Christi (for the utility assistance program),and Businesses with past-due tax liabilities or tax
liens against their property in Nueces County or San Patricio County(for the POCC working
capital assistance program);
o Businesses in bankruptcy,unless otherwise authorized or ordered by the Bankruptcy Court or
Bankruptcy Trustee;
o Churches,religious institutions or other nonprofit organizations;
o Government entities.
10