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HomeMy WebLinkAbout024716 RES - 12/18/2001RESOLUTION ESTABLISHING A PROGRAM TO PROMOTE LOCAL ECONOMIC DEVELOPMENT AND TO STIMULATE BUSINESS AND COMMERCIAL ACTIVITY WITH RESPECT TO THE DEVELOPMENT OF THE CORPUS CHRISTI INTERNATIONAL AIRPORT; AND AUTHORIZING A GRANT TO CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION WHEREAS, the City has heretofore concluded that it would be in the best interest of the City and the general public to expand the Corpus Christi International Airport (the "Airport"); and WHEREAS, feasibility studies prepared in connection with the renovation and expansion of the Airport recognized the need for expanded business and commercial development at the Airport to enhance the use of the Airport (as expanded); and WHEREAS, the Corpus Christi Regional Economic Development Corporation" (the "Corporation") exists for the purpose of promoting and encouraging economic development throughout the Greater Corpus Christi area; and WHEREAS, the Corporation has been active in pursuing the location of an airplane maintenance facility at the Airport for use by Vision Technologies Aerospace, Ltd. ("VT Aero"), as a facility that qualifies as an "airport facility" for which tax-exempt bonds (the "Bonds") can be issued; and WHEREAS, the Corporation proposes that the Corpus Christi Industrial Development Corporation, a non-profit, non-stock industrial development corporation created by the City to act on its behalf to foster and encourage new and expanded business enterprises in the City, issue Bonds and loan the proceeds to the Corporation to construct the airplane maintenance facility for use by VT Aero; and WHEREAS, the Corporation is seeking from the City financial assistance, in the form of a grant, to provide additional funding to enable the timely development of the airplane maintenance facility to benefit the Airport; and WHEREAS, Section 52-a of Article 111 of the Texas Constitution authorizes the Texas Legislature to provide for the creation of programs and the making of loans and grants of public money for the public purposes of development and diversification of the economy of the state, the elimination of unemployment and underemployment in the state, the stimulation of agricultural innovation, the fostering of the growth of enterprises based on agriculture, or the development or expansion of transportation or commerce in the state; and WHEREAS, under authority of Section 52-a of Article III of the Texas Constitution, the Texas Legislature enacted Chapter 380, Texas Local Government Code ("Chapter 380"), which provides that the governing body of a municipality may establish and provide for the administration of one or more programs, including programs for making loans and grants of public money and providing personnel and services of the municipality, to promote state or local economic development and to stimulate business and commercial activity in the municipality; and WHEREAS, the City Council solicited public comment regarding the establishment of the economic development program hereinafter authorized at its meeting on December 18, 2000; and WHEREAS, the City has determined that, in reliance upon the findings made in the feasibility study prepared in connection with the City's renovation and expansion of the Airport, it is in the best interests of the development of the Airport that the City establish and approve a program under the authority granted to the City by Chapter 380 to promote economic development and to stimulate business and commercial activity within the Zone, specifically by providing the grant hereinafter described in order to encourage the development of the airplane maintenance facility at the Airport. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRIST1, TEXAS: SECTION 1: That the facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct. SECTION 2: That the City Council hereby determines that there shall be established, pursuant to authority granted to the City by Chapter 380, a program pursuant to which the City will provide economic assistance in an effort to achieve the economic development objectives of the City, to-wit, the promotion and development of aviation and commercial activities at the Airport. The City Council hereby finds that the economic development program outlined in this Ordinance is necessary to stimulate business and commercial activity within the City, specifically at the Airport, to diversify the economy of the City, and to promote employment within the City in sectors which currently experience underemployment. SECTION 3: That the term of the economic development program described in this Ordinance shall expire on January 1, 2022, and no loan or gram shall be made under the economic development program after such date unless the City Council then serving affirmatively takes action to extend the economic development program established by this Ordinance, with such changes to the economic developmem program established by this Ordinance as may be determined by such City Council so acting in the future. SECTION 4; That the economic development program hereby established specifically relates to the development of the airplane maintenance facility at the Airport, a project the City finds necessary to achieve the objectives described in Section 2 of this Ordinance. To that end, the City hereby agrees to make a grant to the Corporation in such amounts as are described in the "Economic Development Grant Agreement" between the City and the Corporation, in substantially the form attached hereto (the "Grant Agreement").The City Manager is hereby authorized to execute and deliver the Grant Agreement, as well as any other instruments or documents necessary to implement and effectuate the intent of this Ordinance, including, without limitation, the timing and procedures for funding the grant, the execution of notes in favor of the Corporation to evidence the City's intent to fully fund the grant and other matters related thereto. SECTION 5: That if any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Legal form approved ,2001. CORPUS CHRISTI, TEXAS The above resolution was passed by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison John Longoria Jesse Noyola Mark Scott H 5LEG-DIR\NOEMI\LISA\RES\RES 004