HomeMy WebLinkAbout033546 RES - 12/10/2024Resolution authorizing a Chapter 380 Economic Development
Agreement between the City of Corpus Christi, Texas and 2AVH
Calallen, LP; which will provide for ad valorem and sales tax rebates
not to exceed a total of $5,200,000.00 pursuant to Texas Local
Government Code Section 380.001 et seq.
WHEREAS, Chapter 380 of the Texas Local Government Code authorizes a
municipality to make grants to promote state or local economic development and to
stimulate business and commercial activity in the municipality;
WHEREAS, 2AVH Calallen, LP, has proposed to develop approximately 25.2 acres
of land within the City of Corpus Christi, Texas as described in Exhibit A, attached hereto;
WHEREAS, 2AVH Calallen, LP, will secure Statewide Retailers and Full Service
Restaurants for its development which will create jobs, stimulate business and
commercial activity for the City; and
WHEREAS, 2AVH Calallen, LP has applied for incentives through a Chapter 380
agreement, which would provide reimbursement payments over 10 years in the amount
not to exceed $5,200,000.00 based on percentages of the amount of ad valorem tax and
sales tax that the 2AVH Calallen, LP pays on the economic development improvements
to the property; and
WHEREAS, the City recognizes the positive economic impact that the proposed
Chapter 380 agreement will have on the City through creation of jobs, stimulation of
business and commercial activity in the City, and increased tax revenues related to the
construction of the proposed project; now therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS:
SECTION 1. The City Council specifically finds that the foregoing statements included in
the preamble of this resolution are true and correct and adopts such findings for all intents
and purposes related to the authorization of this project.
SECTION 2. That the City Manager or designee is authorized to execute a Chapter 380
agreement with 2AVH Calallen, LP, in the total amount not to exceed $5,200,000.00 in
ad valorem and sales tax grants for the economic development of approximately 25.2
acres of land within the City of Corpus Christi, Texas for Statewide Retailers and Full Service
Restaurants.
SECTION 3. That 2AVH Calallen, LP shall complete construction of this project by
December 31, 2027, or the 380 Economic Development Incentive Agreement will
terminate.
SECTION 4. That under this 380 economic development incentive, once construction is
complete, the CITY will rebate 75% of ad valorem taxes paid by 2AVH Calallen, LP that
are attributable to the project.
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033 54
SCANNED
SECTION 5. That under this 380 economic development incentive, the CITY will rebate
.005 sales tax which is 1/2 of .01 cent of "City Operations Sales Tax" paid by 2AVH
Calallen, LP that are attributable to the project. There shall be no reimbursement to 2AVH
Calallen, LP from the sales tax allocated (now or in the future) to a Type A or Type B
corporation, a crime control district, a municipal development district, a municipal
development corporation, a district for fire control, prevention or emergency medical
services or to any other district, corporation or entity. There will also be no reimbursement
to 2AVH Calallen, LP from a sales tax for property tax relief, for a sports or community
venue project, for a metropolitan or rapid transit authority, for street maintenance, or for
any other use that is limited by state law.
SECTION 6. That this 380 economic development incentive to 2AVH Calallen, LP, will
terminate upon the earlier to occur of: (i) December 31, 2036; (ii) 2AVH Calallen, LP 's
receipt of the total Chapter 380 Payments equal to the Maximum Payment Amount of up
to $5,200,000.00; or (iii) earlier termination in accordance with the terms of the Chapter
380 Economic Development Incentive Agreement.
PASSED AND APPROVED on the lv day of VR-CR , 2024.
ATTEST:
Rebecca Huerta
City Secretary
OF CORP CHRISTI
aulette M. Guajardo
Mayor
2
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