HomeMy WebLinkAbout028344 RES - 10/13/2009s
Page 1 of 2
RESOLUTION
APPROVING THE FIRST AMENDMENT TO CORPUS CHRISTI
BUSINESS AND JOB DEVELOPMENT CORPORATION'S
AGREEMENT TO GRANT BUSINESS INCENTIVES TO TURNER
INDUSTRIES GROUP, LLC, FOR THE CREATION OF JOBS
WHEREAS, on January 8, 2008, the Corpus Christi Business and Job
Development Corporation ("4A Board") and Turner Industries Group, LLP
('Tumer Industries"), to executed an Agreement to Grant Business Incentives for
the Creation of Jobs, which granted $1,850,000.00 in business incentives to
Turner Industries for acquisition and construction of an administrative office
building, fabrication facility, lay -down yard, and material storage area for the
fabrication of pipe products for the petrochemical industry and the creation of 185
new jobs over a five year period; and
WHEREAS, adjustments to the implementation schedule are necessary, due to
delays in permitting the necessary construction of infrastructure and buildings on
site;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. That the First Amendment to the Agreement to Grant Business
Incentives for the Creation of Jobs between the 4A Board and Turner Industries,
which is attached to this resolution, is approved.
ATTEST:
CITY OF CORPUS CHRISTI
Armando Chapa Joe A4
City Secretary Mayor
APPROVED as to form: October 5, 2009
R. Ja ning
First Assistant City Attorney
For the City Attorney
028344
Res -1st Amendment - Turner 10052009
delexent
INDEXED
Corpus Christi, Texas
f�of �%'� D(QIL , 2009
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Brent Chesney
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
John E. Marez
Nelda Martinez
Mark Scott
Fo(i
AIL
2'8344
Res -1st Amendment - Turner 10052009
Page 2 of 2
FIRST AMENDMENT TO
AGREEMENT TO GRANT BUSINESS INCENTIVES TO
TURNER INDUSTRIES GROUP, LLC,
FOR THE CREATION OF JOBS
A. The Agreement to Grant Business Incentives for the Creation of Jobs ("Agreement")
between the Corpus Christi Business and Job Development Corporation ("Corporation")
and Turner Industries Group, LLC, last executed on January 8, 2008, is amended as
follows:
1. The paragraph of Section II is revised to read as follows:
"II. ECONOMIC BENEFITS AND INCENTIVES AND PERFORMANCE
REQUIREMENTS
"2.1 BY THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION
".1 Monet/ Grant: Corporation will convey by grant to TIG a total of One
Million Eight Hundred Fifty Thousand Dollars ($1,850,000.00) in five (5)
increments, as set forth in Schedule A, subject to the performance requirements
of TIG and the conditions precedent as set forth in Schedules A, B, and C and
that TIG has timely and fully complied with all applicable terms and conditions
contained in this agreement. All Corporation payments are subject to the TIG's
successful completion of all of performance requirements outlined in this
Agreement.
"Failure by Corporation to timely and fully comply with any performance
requirement shall be an act of default by Corporation giving TIG, as its sole
remedy, the right to the contracted amount to be conveyed and further being
limited to the terms and conditions contained in Article VII, paragraph 7.1, hereof.
"SCHEDULE A
"TIG's CONDITIONS
PRECEDENT AND
PERFORMANCE
REQUIREMENTS
'TIG's TIME OF
PERFORMANCE
"CORPORATION's
PERFORMANCE
REQUIREMENTS
"Acquisition/construction of
an administrative office
building, fabrication facility,
lay -down yard, and
materials storage area for
the fabrication of pipe
products for the
petrochemical industry at a
"Proof of
acquisition/construction of
manufacturing facility;
Proof of capital investment
of at least $6,600,000 priorInvestment-anel-50%-te
to December 31,-2998
2009; Proof of beginning
"$0,000-$860,000
payable on or before April
1,-2909 2010-eamed-and
crodited 50% to capital
job
creation.
.
and maintaining full-time
Page 1 of 8
FirstAmendment —Tumer Business Incentive Agreement --10052009
total capital investment of at
least $6,600,000, beginning
and maintaining full-time
production with the
equipment, and either the
creation and continued
staffing of a minimum of fifty
(50) full-time employment
positions with an average
annual salary of $46,886
per position or a cumulative
annual payroll at the facility
of $2,344,300.
production with equipment
at Facility on or before
December 31,-2008 2009;
Proof of either creation and
continued staffing of a
minimum of 50 full-time
employment positions each
with an average annual
salary of $46,886 each or a
cumulative annual payroll at
the facility of $2,344,300 on
or before December 31,
2008 2009
"Continued construction of
an administrative office
building, fabrication facility,
lay-down yard, and material
storage area for the
fabrication of pipe products
for the petrochemical
industry at a total capital
investment of at least
$3400,000 $2,400,000,
"Proof of capital investment
of at least $37480,000
$2,400,000 prior to
"$370,000-$472,000
payable on or before April
1, 2010 2011-earned-and
December 31,-2009 2010,
°
job
with completion ofapiti_scorte
construction of the facility
before December 31,-2009
2010; either creation and
creation.
continued staffing of a
minimum of seventy five
(75) (50) full-time
maintaining full-time
production with equipment;
and either the creation and
continued staffing of a
minimum of an additional
sea ntx(75) fifty (50)
employment positions and
continued staffing of a
minimum of 50 full-time
employment positions each
with an average annual
salary of $49004 $51,326
full-time employment
positions and continued
staffing of a minimum of fifty
(50) full-time employment
positions with an average
annual salary of $49,004
$51,326 per position or a
per position or a cumulative
annual payroll at the facility
of$6,125,500 $4,865,100.
cumulative annual payroll at
the facility of$6,1257500
$4,865,100.
"Maintaining-full-time
ith tti cation an_
of a
"$370,000 $342,500
payable on or before April
1, 2011 2012.-earned-and
°
continued staffing
Page 2of8
FirstAmendment —Turner Business Incentive Agreement --10052009
. -- - --
0 er to job
creation;
minimum of 125 full timo
salary of $51,326 a
or
- -
empleyrnent-positions4vith
cumulative annual-payrol-at
the-facility-of-$7-76987940-09
or before Docombor 31,
$51,326
2010.
per position or a
"Proof of completion of
"Completion of construction
construction of
manufacturing facility;
of an administrative office
Proof of capital investment
building, fabrication facility,
of at least $1,000,000, for a
lay-down yard, and
total capital investment of
materials storage area.,$10,000,000
prior to
along with required
December 31, 2011; Proof
equipment and furnishings;
of maintaining full-time
with a capital investment of
production with equipment
$1,000,000, for a total
at Facility on or before
capital investment of at
December 31, 2011; Proof
least $10,000,000,
of creation of a minimum of
beginning and maintaining
an additional fifty (50) full-
full-time production with the
time employment positions
equipment, and the creation
and continued staffing of a
of a minimum of an
minimum of one hundred
additional fifty (50) full-time
(100) full-time employment
employment positions and
positions each with an
continued staffing of a
average annual salary of
minimum of one hundred
$53,379 each or a
(100) full-time employment
cumulative annual payroll at
positions with an average
the facility of $7,698,900 on
annual salary of $53,379
or before December 31,
per position or a cumulative
2011.
annual payroll at the facility
of $7,698,900.
"Maintaining full-time
production with equipment;
and either the creation and
continued staffing of a
minimum of an additional
twenty-(203-thirty five (35)
"Proof of either creation and
continued staffing of a
minimum of 20-35 full-time
1.37-07040-$175,000
payable on or before April
1, 2012 2013., and
eamed
employment positions and
continued staffing of a
minimum of 150 full-time
employment positions each
with an average annual
salary of $53,379 or a
°
°
creation-;
full-time employment
positions and continued
staffing of a minimum of one
Page 3 of 8
FirstAmendment --Turner Business Incentive Agreement --10052009
hundred fifty (150) full-time
employment positions with
an average annual salary of
$53,379 per position or a
cumulative annual payroll at
the facility of $9,074,430
$10,270,090.
cumulative annual payroll at
the facility of $9,074430
$10,270,090 on or before
December 31, 2011 2012.
!Maintaining -full-time
continued -staffing -of -a
minimum -of -an -additional
fiftcon (15) full timo
ernployment-pesitiens-and
doffing of a
„
"$370,000 payable on or
beforo April 1, 2013
employment -positions -and
continued -staffing -of -a0
employment -positions -each
salary of $55,511 or a
eamecbanci_Greditedapie
to -capital -investment -and
continuod
seventy-(-1-703-full-time
the facility $10,270,090
of
on or before December 31,
2012.
the facility of $10,270,090 .
"2.2 BY Turner Industries Group, LLC
".1 Investment—Production Facility: TIG agrees that it shall acquire/construct
and occupy for five (5) years beginning April 1, 2008, and ending five (5) years
thereafter or December 31, 2012 whichever occurs later, a fabrication facility in
Corpus Christi, Nueces County, Texas, as set forth in Schedule B below.
"Failure by TIG to timely and fully comply and to continue to comply with any
performance requirement of this agreement shall be an act of default.
Page 4 of 8
FirstAmendment --Turner Business Incentive Agreement --10052009
"SCHEDULE B
"TIG's PERFORMANCE
REQUIREMENTS
"TIG's TIME OF PERFORMANCE
"Acquisition and start of construction of a
fabrication facility to include an
administrative office building, fabrication
facility, lay -down yard, and material
storage areas; along with required
equipment and furnishings; with capital
investment of at least $6,600,000; occupy
and full-time operations at production
facility.
"December 31, 2008 December 31, 2009.
=
=
= - • - - e • • • -
^ 31, 2008, Sti uld any
-
same five (5) year period.
"Continued construction of a fabrication
"December 31, 2010
facility to include an administrative office
building, fabrication facility, lay -down yard,
and material storage areas; along with
required equipment and furnishings; with
capital investment of at least $2,400,000,
for a total capital investment of at least
$9,000,000; occupy and full-time
operations at production facility.
"Completion of construction of a fabrication
facility to include an administrative office
building, fabrication facility, lay -down yard,
and material storage areas; along with
required equipment and furnishings; with
capital investment of at least$3;4007000
$1,000,000, for a total capital investment
"Deccmber 31, 2010 December 31, 2011
of at least $10,000,000; occupy and full-
time operations at production facility.
".2 Employment:
"TIG agrees that it shall create, staff and maintain full-time employment positions
for its fabrication facility, administrative office and lay -down yard, in Corpus
Christi, Nueces County, Texas, as set forth in Schedule C.
Page 5 of 8
FirstAmendment —Tumer Business Incentive Agreement --W052009
"The jobs shall be primarily engaged in serving a customer base outside a 50 -
mile radius of the city of Corpus Christi.
"Failure by TIG to timely and fully comply and to continue to comply with any
performance requirement of this agreement shall be an act of default.
"SCHEDULE C
"TIG's PERFORMANCE
REQUIREMENTS
"TIG's TIME OF PERFORMANCE
"Fifty (50) full-time employment positions
at TIG's production facility, average annual
salary for each position $46,886 or a
cumulative annual payroll of $2,344,300.
"December 31, 2008 December 31, 2009
"Doccmbcr 31, 2000
_- _
payroll -of -$6;1-25 00.
Fifty (50)
"December 31, 2010
additional full-time employment positions
and continued staffing of a minimum of fifty
(50) full-time employment positions at
TIG's production facility, average annual
salary for each position $51,326 or a
cumulative annual payroll of$7,698-,900
$4,865,100.
"Twenty -(20) -Fifty (50) additional full-time
"December 31, 2011
employment positions and continued
staffing of a minimum of one hundred
(100) full-time employment positions at
TIG's production facility, average annual
salary for each position $53,379 or a
$9,074,130
cumulative annual payroll of
$7,698,900.
Page6of8
FirstAmendment --Turner Business Incentive Agreement --10052009
"Fifteen (15) Thirty five (35) additional full-
time employment positions and continued
staffing of a minimum of one hundred fifty
(150) full-time employment positions at
TIG's production facility, average annual
salary for each position $55,514 or a
cumulative annual payroll of $10,270,090.
"December 31, 2012"
B. This amendment to the Agreement takes effect on the latest date that either party
executes this amendment
C. This amendment does not effect the term of the Agreement.
D. Any provision of the Agreement that is not expressly amended by this amendment
remains unchanged and in full force and effect.
E. This amendment to the Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and constitute one and the same instrument.
EXECUTED on the date shown opposite the signature of each party.
Corpus Christi Business & Job Development Corporation
By:
Eloy Salazar
Chairperson
Date:
Attest
By:
Armando Chapa
Assistant Secretary
Turner Industries Group, LLC.
By:
Name: John M. Golashesky
Page 7 of 8
FirstAmendment --Turner Business Incentive Agreement -10052009
Title: Senior Vice -President and Regional Manager
Date:
Federal Tax ID No.: 72-1513047
The State of Texas §
County of Nueces §
Before me, (Notary's name), on this day
personally appeared John M. Golashesky, Senior Vice -President and Regional
Manager of Turner Industries Group, LLC., known to me to be the person whose name
is subscribed to the foregoing instrument and acknowledged to me that he executed the
same in the capacity stated as the act of Turner Industries Group, LLC., a limited liability
company authorized to do business in Texas, for the purposes and consideration
expressed in the instrument.
Given under my hand and seal of office this the day of , 2009.
Notary Public, State of Texas
Page 8 of 8
FirstAmendment --Tumer Business Incentive Agreement --10052009