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HomeMy WebLinkAbout033762 ORD - 09/23/2025Ordinance approving an economic development incentive agreement project between the Corpus Christi B Corporation (Type B Corporation) and Padre Island North, LLC for a total amount not to exceed $2,000,000.00 for development of the Marriott Dual Branded Hotels, Courtyard & Residence Inn, Conference Center, Bar & Restaurant located at 15210 — 15222 Windward Drive, Corpus Christi; as part of the project developer, Padre Island North, LLC, will create 73 primary jobs for the new or expanded business enterprise; and appropriating $2,000,000.00, in project funding to be reimbursed over a five-year period from the unreserved fund balance of the Corpus Christi B Corporation Economic Development fund. 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, residents of the City of Corpus Christi have authorized the adoption of a sales and use tax to be administered by a Type B Corporation at the rate of one - eighth of one percent to be imposed for 20 years; WHEREAS, on November 8, 2016, residents of the City passed Proposition 1, Adopt Type B Sales Tax to Replace Expiring Portion of Type A Sales Tax, which authorized the adoption of a sales and use tax to be administered by a Type B Corporation at the rate of one -eighth of one percent to be imposed for 20 years with use of the proceeds for (1) 50% to the promotion and development of new and expanded business enterprises to the full extent allowed by Texas law, (2) $500,000 annually for affordable housing, and (3) the balance of the proceeds for the construction, maintenance and repair of arterial and collector streets and roads; WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 1 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2018, to be administered by the Corpus Christi B Corporation Board; WHEREAS, the Corpus Christi B Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, on June 30, 2025, the B Corporation Board held a public hearing and authorized the Mariott Dual Branded Hotels project, finding that it is in the best interest of the residents of the City that up to $2,000,000.00 from the Corpus Christi B Corporation Economic Development Fund be reserved for a business incentive agreement project between the Corpus Christi B Corporation and Padre Island North, LLC; finding that the project promotes and develops new or expanded business enterprises; and finding that the project totals an estimated $34 million Marriot Dual Branded Hotels development Page 1 of 2 0337 SCANNED located at 15210 —15222 Windward Drive, Corpus Christi in accordance with Texas Local Government Code Sections 501.103 and 505.152; WHEREAS, on August 25, 2025, the B Corporation Board approved the Business Incentive Agreement for the project; WHEREAS, the Mariott Dual Branded Hotels business incentive agreement project between the Corpus Christi B Corporation and Padre Island North, LLC will create 73 primary jobs within the City with an average annual salary of $30,665.00, resulting in an estimated annual payroll of $2.2. million; WHEREAS, the Mariott Dual Branded Hotels business incentive agreement project aligns with the City's economic development goals by enhancing economic development, stimulating year-round tourism, and offering opportunities in hospitality, event management, and culinary services, aligning with local workforce and economic development expansion; and WHEREAS, Texas Local Government Code Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Corporation. Be it ordained by the City Council of the City of Corpus Christi, Texas: Section 1. The City Council approves an economic development incentive agreement project between the Corpus Christi B Corporation (Type B Corporation) and Padre Island North, LLC for a total incentive amount not to exceed $2,000,000.00, for development of the Marriott Dual Branded Hotels, Courtyard & Residence Inn, Conference Center, Bar & Restaurant located at 15210 — 15222 Windward Drive, Corpus Christi. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this ordinance for all purposes and are adopted as a part of the findings of the City Council. Section 3. The City Council appropriates the use of up to $2,000,000.00, in funding from the Corpus Christi B Corporation Economic Development Fund for the Mariott Dual Branded Hotels project between the Corpus Christi B Corporation and Padre Island North, LLC; and funding shall be reimbursed over a five-year period in accordance with the economic development incentive agreement for the project. Introduced and voted on the `:01\ day of `' V' ` , 2025. PASSED and APPROVED on the day ofyM , 2025. ATTEST: Paulette Guajardo, M Rebecca Huerta, City Secretary Page 2 of 2 (33762