HomeMy WebLinkAbout022663 RES - 08/27/1996RESOLUTION
AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH SITEL
CORPORATION, INC. PROVIDING FOR TEMPORARY PROPERTY TAX
ABATEMENT.
WHEREAS, the Texas Property Redevelopment and Tax Abatement Act (the "Act"), Texas
Tax Code, Chapter 312, as amended, authorizes the City of Corpus Christi, Texas (the "City") to
enter into Tax Abatement Agreements for projects meeting the guidelines and criteria for granting
tax abatement, as amended, duly adopted by the City; and
WHEREAS, an application for temporary tax abatement has been filed with the City by Sitel
Corporation, Inc. for the construction of a new facility in the City; and
WHEREAS, the enterprise zone created in the City includes the property to be covered by
the proposed tax abatement agreement and is eligible for such treatment in accordance with the
provisions of the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS, THAT:
SECTION 1. That the City finds and determines that the terms of the proposed agreement
and the property subject to the proposed agreement meet the applicable guidelines and criteria, as
amended, adopted by the City, and the City further determines that the proposed project is feasible
and the proposed temporary abatement of taxes will inure to the long term benefit of the City.
SECTION 2. The execution of the Tax Abatement Agreement attached hereto in substantial
form as Exhibit "A" is hereby authorized and approved.
DULY PASSED AND ADOPTED at a regular meeting of the City Council of the City on
the 27th day of August, 1996.
ATTEST:
City Secretary
MAYOR
THE CITY F CORPUS CHRISTI
Approved this the 23rd day of August, 1996:
James R. Bray, Jr., City Att. e
By:
orbert J. Hart, Assist. j! ' Attorney
96N1 -II 400.804
022663
f' 0 LMEL
2
Corpus Christi, Texas
21711 day of ( , 19
n 4
The above resolution was passed by the following vote:
Mary Rhodes
Dr. Jack Best
Betty Black
Melody Cooper
Tony Heldenfels
Betty Jean Longoria
John Longoria
Edward A. Martin
Dr. David McNichols
96N111400.804
dAto
022663
THE STATE OF TEXAS
COUNTY OF NUECES
TAX ABATEMENT AGREEMENT
1
This Tax Abatement Agreement (hereinafter referred to as the 'Agreement') is made and entered
into by and between the CITY OF CORPUS CHRISTI, TEXAS (the 'Governmental Unit') and SITEL
CORPORATION (the 'Owner'), the owner of taxable property in the City of Corpus Christi, Texas,
(the 'Property').
I. AUTHORIZATION
This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Texas
Tax Code, Chapter 312, as amended (the 'Act"), and is subject to the laws of the State of Texas and the
charter, ordinances, and orders of the Governmental Unit.
II. DEFINITIONS
As used in this Agreement, the following terms shall have the meanings set forth below:
A. 'Base Year Value' means the assessed value of the Improvements on the Property as certified
by the Nueces County Appraisal District as of the January 1 preceding the execution of this
Agreement plus the agreed upon value of Improvements made after January 1 but before the
execution of this Agreement.
B. 'Improvements' means the buildings or portions thereof and other improvements, including
fixed machinery and equipment, used for commercial or industrial purposes on the Property.
C. 'Construction Phase' means the period during which a material and substantial improvement
of the Property occurs which represents a separate and distinct construction operation
undertaken for the purpose of erecting the Improvements. The Construction Phase ends upon
the earliest to occur of the following events:
(1) when a certificate of occupancy is issued for the project (if within City limits); or
(2) when commercial production of a product or provision of a service is achieved at the
facility, or
(3) when the architect or engineer supervising construction issues a certificate of substantial
completion, or some similar instrument, or
(4) two (2) years after the date of this Agreement.
The determination of the end of the Construction Phase shall be made by the Governmental
Unit, in its sole and absolute discretion, based upon the above criteria and such other factors
u the Governmental Unit may deem relevant. The determination of the end of the
Construction Phase by the Governmental Unit shall be conclusive, and any judicial review of
such determination shall be governed by the substantial evidence rule.
D. 'Abatement' means the temporary full or partial exemption from ad valorem taxes of certain
added value to real and personal property in a zone designated for economic development
purposes pursuant to the Act.
E. 'Eligiible Property' means the buildings, structures, site improvements, and that office space
and certain personal property necessary to the operation and administration of the Facility to
be constructed pursuant to this Agreement. A list of the Eligible Property is set forth in the
Project Description which is attached hereto as Exhibit 'A' and made a part hereof. During
the Construction Phase of the Eligible Property, the Owner may make such change orders to
the Eligible Property as are reasonably necessary to accomplish its intended use, provided that
no such change order may be made which will change the qualification of the project as a
"Facility" under the Guidelines and Criteria for Granting Tax Abatement approved by the
Governmental Unit.
F. "Ineligible Property" means land; inventories; supplies; tools; furnishings and other forms of
movable personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred
maintinmore investments; property to be rented or leased except as provided in Section 2(e);
improvements for the generation or transmission of electrical energy not wholly consumed by
a New Facility or expansion; any improvements, including those to produce, store or distribute
natural gas, fluids or gams, which are not integral to the operation of the Facility;
improvements to real property which have an economic life of less than 15 years; property
owned or used by the State of Texas or its political subdivisions or by any organization owned,
operated or directed by a political subdivision of the State of Texas; unless any of the above
types of property are specifically authorized by the Governmental Unit.
G. "Added Value' means the increase in the assessed value of the Eligible Property as a result of
'expansion' or 'modernization' of an existing facility or construction of a 'new facility." It
does not mean or include 'deferred maintenance.'
H. "Facility" means a Basic Manufacturing or Service Facility, Regional Distribution Center
Facility, Regional Telecommunications/Data Processing Center Facility, Regional Visitor/
Amusement Facility or Petrochemical Facility approved by the Governmental Unit as set forth
in the Guidelines and Criteria for Granting Tax Abaten+wnt adopted by the Governmental Unit.
The Guidelines and Criteria for Granting Tax Abatement adopted by the Governmental Unit are
incorporated as a part of this Agreement. Except as the same may be modified herein, all definitions set
forth therein are applicable to this Agreement.
-2-
III. PROPERTY
The Property is an area within the City of Corpus Christi, Texas, located in whole or in part within
the jurisdiction of the Governmental Unit as is more fully described in Exhibit 'B' attached hereto and
made a part hereof. Said Property is located within a zone for tax abatement established pursuant to
Chapter 312 of the Texas Tax Code, as amended, by the City of Corpus Christi, Texas.
The Nueces County Appraisal District has established the following values for the Property as of
the January 1 valuation date prior to the date of execution of this Agreement.
Account No. n/a
Personal Property
Account No. n/a
Land
Improvements
S n/a
S n/a
$ n/a
The Governmental Unit and the Owner agree that the value of any additions to the Improvements made
after January 1 or not otherwise reflected on the above valuation of Improvements is:
Additional Improvements: S 0
Addition of the above amount to the valuation of the Improvements as of the January 1 valuation date
prior to the date of execution of this Agreement results in a Base Year Value as follows:
Base Year Value: S 0
IV. TERM OF ABATEMENT AND AGREEMENT
The Governmental Unit agrees to abate the ad valorem taxes on the Eligible Property in accordance
with this paragraph and paragraphs V and VI hereof. The Abatement shall be effective with the January
1 valuation date immediately following the date of execution of this Agreement. The Abatement shall
continue for up to two (2) years during the period of the Construction Phase and for the next five (5) full
tax years thereafter, expiring as of December 31 of such fifth tax year. If the period of the Construction
Phase exceeds two (2) years, the Facility shall be considered completed for purposes of Abatement, and
in no case shall the period of Abatement inclusive of construction and completion exceed seven (7) tax
years. The years of Abatement provided herein shall in each instance coincide with the tax year
commencing on January 1 and expiring on December 31, and in no event shall the Abatement extend
beyond December 31 of the sixth tax year. This Abatement shall also cover as Eligible Property those
supplemental improvements to the Eligible Property that are added or constructed during the post -
construction five (5) year period of Abatement. In no event, however, shall the total Abatement period
for such Eligible Property exceed the maximum seven (7) year Abatement period for the entire project
as specified herein.
-3-
The term of this Agreement shall continue for a period of five (5) years following expiration of the
abatement period. All terms and conditions imposed upon the Owner shall continue in effect during such
period, and the Owner shall be obligated specifically to continue the minimum employment levels
specified herein. Any default shall be subject to the provisions of Article VIII hereof.
V. TAXABILITY
During the period that the Abatement is effective, taxes, shall be payable as follows:
(1) The value of the land comprising the Property shall be fully taxable;
(2) The Base Year Value of existing Improvements comprising the Property shall be fully taxable;
(3)
The value of Ineligible Property shall be fully taxable; and
(4) The Added Value of Eligible Property shall be abated as set forth in Part VI herein.
VI. AMOUNT OF ABATEMENT
The Abatement provided by this Agreement shall be based upon the Added Value of Eligible
Property as a result of the project. For a Facility which provides not less than 20/50 (but not more than
99) new permanent jobs, the percentage of tax abated shall be in accordance with the following schedule:
Aa[ Percentage of Abatement
Construction Period 100%
(not to exceed 2 years)
Year 1 50%
Year 2 50%
Year 3 50%
Year 4 50%
Year 5 50%
Provided that, for a Facility which provides not less than 100 (but not more than 199) new
permanent jobs, the percentage of tax abatement shall be in accordance with the following schedule:
it•at Percentage of Abatement Percentage of Abatement
(for first 510 million) (over 510 million)
Construction Period 100% 100%
(not to exceed 2 years)
Year 1 75% 50%
Year 2 75% 50%
Year 3 75% 50%
Year 4 75% 50%
Year 5 75% 50%
Provided that, for a Facility which provides at least 200 new permanent jobs, the percentage of tax
abatement shall be in accordance with the following schedule:
rat Percentage of Abatement Percentage of Abatement
(for first 510 million) (over S10 million)
Construction Period 100% 100%
(not to exceed 2 years)
Year 1 100% 50%
Year 2 100% 50%
Year 3 100% 50%
Year 4 100% 50%
Year 5 100% 50%
In order to be counted as a permanent job under this Agreement, the job must be a full-time position
providing regular work schedules at least 35 hours per week. For compliance purposes, the
determination date shall be January 1 of each year commencing with the January 1 following the date
of completion of construction. The percentage of abatement provided each year under this
Agreement shall be based upon the employment information as of January 1 of suds year. As a
result, the actual amount of abatement may vary from year to year based upon employment levels
and property valuations.
[Note: If this project is designated as a 'rehabilitation project' under the Guidelines and
Criteria which involves the adaptive reuse of an existing structure or building for a Facility, the
project must involve a minimum capital expenditure of 5250,000. The rehabilitation project must
involve the adaptive reuse of an existing structure or building currently on the property tax rolls so
that the Base Year Value associated with the project will include both the value of the land and the
existing improvements. The Owner and Owner's landlord specifically disclaim any abatement for
improvements to the building, and the covenants and obligations hereof shall not be binding upon
Owner's landlord. The sole Eligible Property subject to abatement shall be the value of personal
property such as furniture and movable equipment installed by Owner which would otherwise be
considered Ineligible Property for any other type of abatement category. In no event, however, may
the total value of such personal property subject to abatement exceed 51 million.]
At the time of execution of this Agreement, the Owner reasonably estimates and represents to the
Governmental Unit that the Added Value comprising permanent Improvements upon completion of the
Construction Phase shall be:
$ n/a ('Estimated Added Value").
In the event that upon completion of the Construction Phase the Added Value of permanent
Improvements, as determined by said Appraisal District, shall at any time thereafter during the period
of Abatement be less than eight -five percent (85%) of the Estimated Added Value, not due to
circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes hereunder, an
amount equal to the then current tax rate of the Governmental Unit applied to the difference between the
Added Value from eighty-five percent (85%) of the Estimated Added Value, multiplied by 100% minus
the net percentage of Abatement provided under this Agreement. For the purposes of this provision, the
term 'circumstances beyond the control of Owner' shall include casualty losses, national economic
-5-
factors, shutdowns due to governmental regulations, strikes, acts of war, and the like. The formula for
calculating such additional tax is outlined as follows:
['Tax Rate] x ((85% of Est. Added Value - Actual AV) x (100% - Abatement%)] = Additional Tax
VII. CONTEMPLATED IMPROVEMENTS
Owner represents that it will build a Facility at the cost, for the purpose, and in the manner as set
forth in the Project Description attached as Exhibit A. During the Construction Phase, the Owner may
make such change orders to the project as are reasonably necessary, provided that no such change order
may be made which will change the qualification of the project as a 'Facility' under the Guidelines for
Granting Tax Abatement approved by the Governmental Unit. All improvements shall be completed in
accordance with all applicable laws, ordinances, Hiles or regulations. During the term of this Agreement,
use of the Property shall be limited to operation of the Facility described in the Project Description
consistent with the general purpose of encouraging development or redevelopment of the zone during the
period of this Agreement.
Owner represents and warrants that this project will add at least 50 additional permanent or full-time
operating or contract employees to the project site. The current estimate of employment upon completion
of construction is in excess of 300. The project is not expected to solely or primarily have the effect of
transferring employment from one part of Nueces County to another.
VIII. EVENTS OF DEFAULT AND RECAPTURE
A. failure to Commence Operation During Term of Agreement. In the event that the Facility is
not completed and does not begin operation with the minimum number of 50 permanent jobs
by the January 1 following the completion of construction, no abatement shall be given for that
tax year, and the full amount of taxes assessed against the property shall be due and payable
for that tax year. In the event that the Owner fails to begin operation with the minimum
number of 50 permanent jobs by the next January 1, then the abatement Agreement shall
terminate and all abated taxes during the period of construction shall be recaptured and paid
within 60 days of such termination.
B. Discontinuance of Operations During Tenn of Agreement. In the event the Facility is
completed and begins operation with the required minimum number of 50 permanent jobs but
subsequently discontinues operations and the minimum number of 50 permanent jobs is not
maintained on any January 1 during the term of the Agreement after the completion of
construction, for any reason except on a temporary basis due to fire, explosion or other casualty
or accident or natural disaster, the Agreement may be terminated by the Governmental Unit,
and all taxes previously abated by virtue of the Agreement shall be recaptured and paid within
60 days of such termination.
C. Delinquent Taxes. In the event that the Owner allows its ad valorem taxes to become
delinquent and fails to timely and properly follow the legal procedures for their protest and/or
contest, this Agreement shall terminate and so shall the abatement of the taxes for the calendar
year of the delinquency. The total taxes assessed without abatement for that calendar year shall
be paid within 60 days from the date of termination. Penalty and interest shall not begin to
accrue on the additional amount of taxes due as the result of recapture under this provision until
the first day of the month following such sixty (60) day notice, at which time penalty and
interest shall accrue in accord with the laws of the State of Texas. Penalty and interest on the
amount of taxes originally levied based upon the Abatement shall, of course, begin to accrue
as of the date such taxes were due in accord with the laws of the State of Texas.
D. Notice of Default. Should the Governmental Unit determine that the Owner is in default
according to the terms and conditions of this Agreement, it shall notify the Owner that if such
default is not cured within sixty (60) days from the date of such notice ('Cure Period'), then
this Agreement may be terminated. In the event the Owner fails to cure said default during the
Cure Period, this Agreement may be terminated and the taxes abated by virtue of the
Agreement will be recaptured and paid as provided herein.
E. Actual Added Value. Should the Nueces County Appraisal District determine that the total
level of Added Value during any year of the term of this Agreement after completion of the
Construction Phase is lower than the Estimated Added Value such that a lower percentage of
Abatement is applicable, for each year during which an Abatement has been granted the
difference between the tax abated and the tax which should have been abated based upon the
actual Added Value shall be determined by the Governmental Unit and paid within 60 days of
notification to the Owner of such determination. Penalty and interest shall not begin to accrue
upon such sum until the first day of the month following such sixty (60) day notice, at which
time penalty and interest shall accrue in accord with the laws of the State of Texas.
F. Reduction in Rollback Tax Rate. If during any year of the period of Abatement any portion
of the abated value is added to the current total value of the Governmental Unit but is not
treated as 'new property value (as defined in Section 26.012 (17) of the Texas Tax Code) for
the purpose of establishing the 'effective maintenance rate' in calculating the 'rollback tax rate'
in accord with Section 26.04 (c) (2) of the Texas Tax Code and if the Governmental Unit's
budget calculations indicate that a tax rate in excess of the 'rollback tax rate' is required to
fund the operations of the Governmental Unit for the succeeding year, then the Governmental
Unit shall recapture from the Owner a tax in an amount equal to the lesser of the following:
(1) The amount of the taxes abated for that year by the Governmental Unit with respect to the
Property.
(2) The amount obtained by subtracting the rollback tax rate computed without the abated
property value being treated as new property value from the rollback tax rate computed
with the abated property value being treated as new property value and multiplying the
difference by the total assessed value of the Governmental Unit.
If the Governmental Unit has granted an abatement of taxes to more than one taxpayer, then
the amount of the recapture calculated in accord with subparagraph (2) above shall be prorated
on the basis of the value of the abatement with respect to each taxpayer.
This event shall not constitute a 'default' under this Agreement, and the sixty (60) day Cure
Period provided above shall not apply. Such recaptured taxes must be paid within thirty (30)
days after notice thereof has been given to the Owner. Penalty and interest shall not begin to
-7-
accrue upon such sum until the first day of the month following such thirty (30) day notice, at
which time penalty and interest shall accrue in accord with the laws of the State of Texas.
G. Continuation of Tax Lien. The amount of tax abated each year under the terms of this
Agreement shall be secured by a first and prior tax lien which shall continue in existence from
year to year until such time as this Agreement between the Governmental Unit and Owner is
fully performed by Owner, or until all taxes, whether assessed or recaptured, are paid in full.
In the event of any default by Owner, the governing body of the Governmental Unit reserves the
right to terminate or modify this Agreement. Owner shall be afforded written notice of such default and
the opportunity to awe as provided above. If Owner believes such action was improper, Owner may file
an appeal in Nueces County district curt within sixty (60) days after written notice of the action by the
Governmental Unit. Owner shall remit to the Governmental Unit, within such 60 -day period, any
additional or recaptured taxes levied pursuant to the payment provisions of Texas Tax Code 42.08.
If the final determination of the appeal increases Owner's tax liability above the amount paid, Owner shall
remit the additional tax pursuant to Tax Code * 42.42. If the final determination of the appeal decreases
Owner's tax liability, the Governmental Unit shall refund the Owner the difference between the amount
of tax paid and the amount of tax for which Owner is liable pursuant to Tax Code 8 42.43.
IX. ADMINISTRATION
bspectioaa. The Owner shall allow employees and/or representatives of the Governmental Unit to
have access to the Property during the term of this Agreement to inspect the Facility to determine
compliance with the terms and conditions of this Agreement. All inspections will be made only after the
giving of twenty-four (24) hours prior notice and will only be conducted in such manner as to not
unreasonably interfere with the construction and/or operation of the Facility. All inspections will be made
with one or more representatives of the Owner and in accordance with Owner's safety standards.
Appraisg)S. The Chief Appraiser of the Nueces County Appraisal District shall annually determine
(i) the taxable value of the real and personal property comprising the Property taking into consideration
the Abatement provided by this Agreement, and (ii) the full taxable value without Abatement of the real
and personal property comprising the Property. The Chief Appraiser shall record both the abated taxable
value and the full taxable value in the appraisal records. The full taxable value figure listed in the
appraisal records shall be used to compute the amount of abated taxes that are required to be recaptured
and paid in the event this Agreement is terminated in a manner that results in recapture. Each year the
Owner shall furnish the Chief Appraiser with such information outlined in Chapter 22, Texas Tax Code,
as amended, as may be necessary for the administration of the Agreement specified herein.
Annual Report& Owner shall certify to the governing body of the Governmental Unit on or before
April 1 each year that the Owner is in compliance with each applicable term of this Agreement.
Additionally, during the initial four years of the term of property tax abatement, Owner shall provide to
the Governmental Unit an annual report covering those items listed on Schedule 1 attached hereto in order
to document the efforts of the Owner to acquire goods and services on a load basis. Such annual report
shall be prepared on a calendar year basis and shall be submitted to the Governmental Unit no later than
ninety (90) days following the end of each such calendar year. The annual report shall be accompanied
by an audit letter prepared by an independent accounting firm which has reviewed the report
'Buy Local' Provision. The Owner additionally agrees to give preference and priority to local
manufacturers, suppliers, contractors and labor, except where not reasonably possible to do so without
added expense, substantial inconvenience, or sacrifice in operating efficiency. In any such exception
cases involving purchases over $10,000.00 a justification for such purchase shall be included in the annual
report. The Owner further acknowledges that it is a legal and moral obligation of persons receiving
property tax abatements to favor local manufacturers, suppliers, contractors and labor, all other factors
being equal. For the purposes of this provision, the term 'local' as used to describe manufacturers,
suppliers, contractors and labor shall include firms, businesses, and persons who reside in or maintain
an office in either Nueces County or San Patricio County. In the event of a breach of the buy -local
provision, the percentage of abatement shall be proportionately reduced equal to the amount the
disqualified contract bears to the total construction cost for the project.
X. ASSIGNMENT
The Owner may assign this Agreement to any one or more corporation(s), 50% or more of the
outstanding voting securities of which are owned, directly or indirectly, by one of the Owners, or any
parmership(s) or limited parmership(s) in which an Owner, or a subsidiary of an Owner, is a general
partner. The Owner may assign this Agreement to any other new owner or lessee of the Facility with
the prior written consent of the Governmental Unit, which consent shall not be unreasonably withheld.
Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties
and obligations of the assignor and become the Owner upon the same terms and conditions as set out in
this Agreement. In the event more than one entity is Owner hereunder, the obligations of said entities
shall be joint and several. Any assignment of this Agreement shall be to an entity that will provide
substantially the same improvements to the Property, except to the extent such improvements have been
completed. No assignment shall be approved if the Owner or any assignee are indebted to the
Governmental Unit for ad valorem taxes or other obligations.
XL NOTICES
Any notice required to be given under the provisions of this Agreement shall be in writing and shall
be duly served when it shall have been deposited, with the proper postage prepaid thereon, and duly
registered or certified, return receipt requested, with the United States Postal Service, addressed to the
Governmental Unit or Owner at the following addresses. If mailed, any notice or communication shall
be deemed to be received three days after the date of deposit in the United States Mail. Unless otherwise
provided in this Agreement, all notices shall be delivered to the following addresses:
To the Governmental Unit: CITY OF CORPUS CHRISTI, TEXAS
1201 Leopard Street
P. O. Box 9277
Corpus Christi, Texas 78469
To the Owner:
Attn: City Manager
SITEL CORPORATION
13305 Birch Street, Suite 100
Omaha, Nebraska 68064
-9-
Either party may designate a different address by giving the other party ten days' written notice.
This Agreement has been executed by the parties in multiple originals or counterparts, each having
full force and effect.
Executed this _ day of , 1996.
GOVERNMENTAL UNIT:
CITY OF CORPUS CHRISTI, TEXAS
ATTEST:
By: By:
Armando Chaps, City Secretary Bill Hennings, Acting City Manager
APPROVED AS TO FORM:
F:\11UBATERAGIMff&CC-I I
-10-
OWNER:
SITEL CORPORATION
By:
Name:
Title:
SCHEDULE 1
'Buy Local' Annual Reports
The following information shall be reported to the Governmental Unit on a calendar -year
basis during the first four years of the tax abatement program:
1. Dollar amount spent for materials* (local).
2. Dollar amount spent for materials* (total).
3. Dollar amount spent for labor** (local).
4. Dollar amount spent for labor** (total).
S. Number of jobs created in the construction project (local).
6. Number of jobs created in the construction project (total).
7. Number of jobs created on a permanent basis (local).
8. Number of jobs created on a permanent basis (total).
* 'Materials' is defined to include all materials used in excavation, site improvement,
demolition, concrete, structural steel, fire proofing, piping, electrical, instruments, paintings and
scaffolding, insulation, temporary construction facilities, supplies, equipment rental in
construction, small tools and consumables. This term does not include major items of machinery
and equipment not readily -available locally.
** 'Labor' is defined to include all labor in connection with the excavation, site improvement,
demolition, concrete construction, structural steel, fire proofing, equipment placement, piping,
electrical, instruments, painting and scaffolding, insulation, construction services, craft benefits,
payroll burdens, and related labor expenses. This term does not include engineering services
in connection with the project design.
The term 'local' as used to describe manufacturers, suppliers, contractors and labor shall
include firms, businesses, and persons who reside in or maintain an office in either Nueces
County or San Patricio County.
FA I I ABATBIADIA7SrrB.CC-11
-11-
E}CHIBIT 'B'
Portions of the Second and Third Floor of the Complex known as Tower II and
the Pavilion and associated parking areas located on Lots 10-A, 10-B and 10-C,
Block 12, BLUFF PORTION, a subdivision in the City of Corpus Christi, Texas,
as shown by map or plat thereof recorded in the Map Records of Nueces County,
Texas, and being known as 555 and 565 N. Carancahua Street, Corpus Christi,
Texas.
F:U 1\ABMt\AO Affir6.CC 1I
-12-