HomeMy WebLinkAbout026353 RES - 07/19/2005
RESOLUTION
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A
PROJECT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS
AND JOB DEVELOPMENT CORPORATION ("CORPORATION")
REGARDING IMPLEMENTATION AND ADMINSTRATION OF
AGREEMENT TO GRANT BUSINESS INCENTIVES TO MCTURBINE,
INC. FOR THE CREATION OF 100 JOBS
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 Corpus Christi Business
and Job Development Corporation's Board of Directors ("Board");
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, McTurbine, Inc. has submitted a proposal to the Corporation to request
business incentives of approximately $500,000 to be used to assist McTurbine, Inc. in
its construction of new 40,000 square ft. or larger facility and engine facility, to be built
on property owned by McTurbine, Inc. at 401 Junior Beck Drive in Corpus Christi,
Nueces County, Texas, ("Facility"), for total McTurbine, Inc. capital investment of Three
million one hundred dollars $3,100,000) to allow McTurbine, Inc. to create and employ
additional 100 new full-time employment positions at Facility:
WHEREAS, the Board determined that it is in the best interests of the citizens of Corpus
Christi, Texas that business development funds be provided to McTurbine, Inc. to be
used by McTurbine, Inc. to reimburse costs for construction of new helicopter
maintenance facility which will result in creation of 100 new full-time permanent jobs in
the city of Corpus Christi;
(,26353
Page 2 of 2
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.
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
Agreement between the Corporation and McTurbine, Inc. A copy of the Project
Agreement is attached as Exhibit A.
ATTEST
CITY OF CORPUS CHRISTI
_./~
Armando Chapa
City Secretary
i~.~
Mayor
Approved: July 14, 2005
,'~ }'?__ 0/)(1......, '-'7 -.i
,
Lisa Aguilar, .-'
Assistant City Attorney
for City Attorney
H\LEG.DIR\lisa\Res 2005\McTurbine project agmt.doc
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, McTurbine, Inc. has submitted a proposal to the Corporation to request
business incentives of approximately $500,000 to be used to assist McTurbine, Inc. in
Its construction of new 40,000 square ft. or larger facility and engine facility, to be built
on property owned by McTurbine, Inc. at 401 Junior Beck Drive in Corpus Christi,
Nueces County, Texas, ("Facility"), for total McTurbine, Inc. capital investment of Three
million one hundred dollars $3,100,000) to allow McT urbine, Inc. to create and employ
additional 100 new full-time employment positions at F aciljty;
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 McTurbine, Inc.
WHEREAS, the Corporation and McTurbine, Inc. have executed an agreement to grant
business incentives to McTurbine, Incfor the creation of jobs (Business Incentives
Agreement).
Vi
I I' rt
McTurbine, Inc Project Agreementdoc
Page 1 of 3
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 McTurbine, Inc for the Creation of Jobs
between the Corporation and McTurbine, Inc
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
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
McTurbine. Inc Project Agreementdoc
Page 2 of 3
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. Noe
City Manager
Date
Date:
Attest
Armando Chapa
City Secretary
Approved as to Legal Form this _day of July, 2005.
Lisa Aguilar
Assistant City Attorney
for City Attorney
McTurbine, Inc. Project Agreemenldoc
Page 3 of 3
Corpus Christi, Texas,
,(j~ \
_l ~\ Day of M~-' 2005
The above resolution was passed by the following vote:
Henry Garrett -~4;~
Brent Chesney ru~
Melody Cooper
Jerry Garcia 0:1
Bill Kelly -iff
Rex Kinnison ~
John E. Marez
Jesse Noyola C1f
Mark Scott - ~
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