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HomeMy WebLinkAbout025649 RES - 02/10/2004RESOLUTION AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A PROJECT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION ("CORPORATION") REGARDING ADMINSTRATION OF BUSINESS INCENTIVES AGREEMENT BETVVEEN THE CORPORATION AND A. C. DISTRIBUTION, INC. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes ("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, on November 5, 2002, residents of the City of Corpus Christi passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, the Corporation received proposal from A. C. Distribution, Inc. to request business incentives of approximately $3,700 per new full-time permanent job created for training related expenses on a reimbursement basis to enable A. C. Distribution to create and maintain at least 50 new full-time permanent jobs in the City of Corpus Christi, Texas, primarily employed to serve a customer base outside a 50-mile radius of the City of Corpus Christi, Texas, with wages as required in Section 38 (b) of the Development Corporation Act of 1979; WHEREAS, the Board determined that it is in the best interests of the citizens of Corpus Christi, Texas that business incentives be offered to A. C. Distribution for training related expenses on a reimbursement basis in order for A.C. Distribution to create and maintain at least 50 new full-time permanent jobs in the City of Corpus Christi, Texas, that will be employed to primarily serve a customer base outside a 50-mile radius of the City of Corpus Christi, Texas, with wages as required in Section 38(b) of the Development Corporation Act of 1979, WHEREAS, the Board authorized execution of an agreement with A. C. Distribution for the requested job training funds at the Board's meeting of February 2, 2004; and WHEREAS, the Board desires to contract with the City to allow the City to administer funding on behalf of the Corporation and perform contract administration responsibilities. Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Council authorizes the City Manager, or the City Manager's designee, to execute a Project Agreement with the Corporation to allow the City Manager or the City Manager's designee to administer funding on behalf of the Corporation and perform contract administration responsibilities associated with the Business Incentives Agreement between the Corporation and A. C. Distribution, Inc. A copy of the Project Agreement is attached as Exhibit A. ATTEST CITY OF CORPUS CHRISTI Armando Chapa City Secretary Approved as to form: February 2, 2004 Lisa Aguilar C~ Assistant City Attorney for City Attorney H:\LEG-DIR\Lisa\RES\Feb 10 A. C. Distribution Proj Agmt Res.doc Corpus Christi, Texas The above resolution was passed by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Melody Cooper Henry Garrett Bill Kelly Rex A. Kinnison Jesse Noyola Mark Scott BUSINESS INCENTIVES PROJECT AGREEMENT This Business Incentives Project Agreement (" Project Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and the City of Corpus Christi, Texas ("City"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (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, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years, WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1,2003, to be administered by the Corporation's Board of Directors; WHEREAS, the Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ("Board"), on May 5, 2003, adopted the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, the City Council approved the Corporation's Guidelines and Criteria for Granting Business Incentives on May 13, 2003; WHEREAS, A. C. Distribution, Inc. ("A. C. Distribution") has submitted a proposal to the Corporation to request business incentives of approximately $3,700 per new full-time permanent job created for training related expenses on a reimbursement basis to enable A. C. Distribution to create and maintain at least 50 new full-time permanent jobs in the City of Corpus Christi, Texas, primarily employed to serve a customer base outside a 50-mile radius of the City of Corpus Christi, Texas, with wages as required in Section 38(b) of the Development Corporation Act of 1979; and WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business incentives be offered to A. C. Distribution for training related expenses on a reimbursement basis in order for A. C. Distribution to create and maintain at least 50 new full-time permanent jobs in the City of Corpus Christi, that will primarily serve a customer base outside a 50-mile radius of the City of A C Distribution Project Agreement.doc Page I of 3 Corpus Christi, with wages as required in Section 38(b) of the Development Corporation Act of 1979; and WHEREAS, the Corporation and A. C. Distribution have executed the Agreement to Grant Business Incentives to A. C. Distribution & Uniform Service, Inc. for the Creation of Jobs (Business Incentives Agreement). In consideration of the covenants, promises, and conditions stated in this Project Agreement, the Corporation and the City agree as follows: 1. Project Agreement to Implement Business Incentives Agreement. This Project Agreement between the City and the Corporation is executed to implement the Agreement to Grant Business Incentives to A. C. Distribution, Inc. for the Creation of Jobs between the Corporation and A. C. Distribution. 2. Term. The term of this Project Agreement runs concurrently with the term of the Business Incentives Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Business Incentives Agreement for the Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City's Council. 5. Effective Date. The effective date of this Project Agreement is the latest date that either party executes this Agreement. 6. Amendments or Modifications. No amendments or modifications to this Project Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Agreement or the application of this Project Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project A C Distribution Project Agreement.doc Page 2 of 3 Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Agreement, then the remainder of this Project Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Agreement automatically. 8. Captions. The captions in this Project Agreement are for convenience only and are not a part of this Project Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation George K. NDe City Manager Date: Attest Date: Armando Chapa City Secretary Approved as to Legal Form this 2nd day of February, 2004 Lisa Aguilar Assistant City Attorney for City Attorney A C Distribution Project Agreement.doc Page 3 of 3