HomeMy WebLinkAboutC2023-223 - 10/10/2023 - Approved DocuSign Envelope ID A70E1244-9750-457D-84E3-DDCD7F3E01E6
AMENDMENT NO. 1 TO INDUSTRIAL DISTRICT AGREEMENT NO. 110B
The CITY OF CORPUS CHRISTI, hereinafter referred to as the City and BOOTSTRAP ENERGY,
LLC, as assigned to 1242 MCKINZIE OWNER LLC, hereinafter referred to as COMPANY, do hereby
make and enter into this amendment (the "Amendment") which, together with Industrial District
Agreement No. 110B, which was approved by the City Council of the City on April 12, 2022 (the
"Agreement") and all other duly executed amendments, constitutes the entire agreement between the
City and Company on this matter.
I.
Section 3.08, Required Development, is hereby amended to add the underlined
language as follows:
Section 3.08 Required Development. The COMPANY agrees that
Improvements necessary to operate a cryptocurrency mining operation and/or
lease server or rack space for the operation of a cryptocurrency mining
operation must be Placed in Use on all Land on or before December 31, 2023.
Company may, as an approved alternative, construct a battery energy storage
system with a requirement that such a facility must be Placed In Use not later
than December 31 , 2025. If the alternative facility has not been Placed-In-Use
by December 31, 2025, for reasons beyond Company's ability to control,
including, for the avoidance of doubt, delays by AEP or ERCOT, then Company
shall make payment in lieu of taxes from and after the end of calendar year 2025
at the greater of: (i) the applicable rate per Article 3.01 of appraised value of any
improvements regardless if such appraised value is classified by NCAD as
either Placed In Use or Construction Work In Progress (CWIP); or (ii)
$100,000.00 (one-hundred thousand dollars). In such event the Company shall
be deemed to be in compliance with the Agreement. Failure to substantially
comply with the foregoing requirement will constitute a breach of this
Agreement. If following notice of such breach, COMPANY does not provide
either (1) a completion schedule reasonably acceptable to CITY, or (2) a
proposed alternative industrial use for undeveloped tract that is reasonably
acceptable to the CITY within 90 days, the CITY may declare this agreement
terminated and accept COMPANY's petition for annexation and begin
annexation proceedings under Section 10.07 below. Additionally, if COMPANY
does provide an acceptable alternative development within the 90 day period,
but does not thereafter diligently pursue such alternative project and insure that
necessary Improvements are Placed in Use within such reasonable time period
as the Parties may agree to, not to exceed two years, following approval of the
alternative development, then the CITY may declare this agreement terminated
and accept COMPANY's petition for annexation and begin annexation
proceedings under Section 10.07 below.
SCANNED
DocuSign Envelope ID:A70E1244-9750-457D-84E3-DDCD7F3E01E6
The City and the Company agree to and shall abide by all terms and conditions of the original
Agreement and any amendments to that Agreement, to the extent they are not in conflict with the terms
of this Amendment.
CIT OF CO-PUS RISTI ROVED S TO LEGAL FORM:
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01430.3 2' /c31 11 IF
Heather Hurlbert Date Assistant City Attorney Date
Assistant City Manager
1242 MCKINZIE OWNER LLC ATTEST: I ' .�/ . .Y .. ,._.411
By its managing member, 1242 McKinzie Owner LLC RE: CCA HUERTA
—Doeusgnedby: CITY SECRETARY
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Gerardo Manalac Date ba223.ziaAt)TMORILr►
Managing Member