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HomeMy WebLinkAbout029164 RES - 07/26/2011Page 1 of 3 RESOLUTION APPROVING A BUSINESS INCENTIVE AGREEMENT FOR THE CREATION AND RETENTION OF JOBS BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND COMMERCIAL METALS COMPANY ("CMC"), WHICH PROVIDES A GRANT OF UP TO $132,600, FOR DEVELOPMENT OF A NEW SECONDARY METAL PROCESSING FACILITY ON BRONCO ROAD WITHIN THE CITY OF CORPUS CHRISTI, IN WHICH CMC WILL INVEST AT LEAST $20,000,000 IN BUILDING IMPROVEMENTS, FURNITURE, FIXTURES, AND EQUIPMENT AND WILL RETAIN AT LEAST 39 CURRENT FULL-TIME JOBS AND CREATE AND MAINTAIN AT LEAST 12 NEW FULL-TIME JOBS WITH AN AVERAGE ANNUAL SALARY OF AT LEAST $31,500 OVER A FIVE YEAR PERIOD AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A BUSINESS INCENTIVE PROJECT SUPPORT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION REGARDING IMPLEMENTATION AND ADMINISTRATION OF THE CMC, BUSINESS INCENTIVE AGREEMENT FOR THE CREATION AND RETENTION OF JOBS WHEREAS, the Corpus Christi Business and Job Development Corporation ("Type A Corporation") has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ("City"). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from CMC, to develop a new secondary metal processing facility on Bronco Road within the City, in which CMC will invest at least $20,000,000 in building improvements, furniture, fixtures, and equipment and will retain at least 39 current full-time jobs and create and maintain at least 12 new full-time jobs with an average annual salary of at least $31,500 over a five year period, will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the business incentive agreement for the creation and retention of jobs between the Type A Corporation and CMC; and WHEREAS, there is a need for a business incentive project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentive agreement for the creation and retention of jobs between the Type A Corporation and CMC. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the business incentive agreement for the creation and retention of jobs between the Type A Corporation and CMC that provides for the development a RESOLUTION -- Business Incentive Agreement -- CMC 06242O11.doc INDEXED Page 2 of 3 new secondary metal processing facility on Bronco Road within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentive agreement with CMC, which is attached to this resolution as Exhibit B. ATTEST: Armando Chapa City Secretary APPROVED: /day of R. Jay First ' ssi- ant City Attorney Fo City Attorney , 2011. RESOLUTION -- Business Incentive Agreement -- CMC 06242011.doc THE CITY OF CORPUS CHRISTI Joe Ada e Mayor Page 3 of 3 Corpus Chti, Texas of , 2011 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kevin Kieschnick Priscilla Leal David Loeb John E. Marez Nelda Martinez Mark Scott 4 ARAI- /Sta 4/01a171- Avie- 029164 RESOLUTION -- Business Incentive Agreement -- CMC 06242011.doc BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND COMMERCIAL METALS COMPANY FOR CREATION OF JOBS This Business Incentive Agreement for ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and Commercial Metals Company ("CMC"), a Delaware corporation. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, 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 118th 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 Board; WHEREAS, the Corpus Christi Business and Job Development 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 September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives, which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on November 9, 2010; WHEREAS, CMC buys secondary metals, sorts by type and grade, processes the metals and sells them to manufacturers in Texas and around the world; WHEREAS, CMC proposes to invest approximately $20 million over a 5 year period at a new location on Bronco Road; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to CMC, through this Agreement with CMC, to be used by CMC to open another location in Corpus Christi, and which will result in creation of up to 12 new full-time permanent jobs and will retain 39 existing jobs at either its new Bronco Road location, existing Agnes Street Page 1 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx Exhibit A location, or at a combination of both locations in the City of Corpus Christi, with an estimated annual average salary of $35,000. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and CMC agree as follows: 1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for 5 years beginning on the Effective Date. 3. Performance Requirements and Grants. The Performance Requirements and Grants are listed in Exhibit A, which is attached to and incorporated into this Agreement. 4. Job Creation Qualification. a. In order to count as a created job under this Agreement, the job must pay wages as required by Section 501.162, Texas Local Government Code, formerly Section 38(b) of the Development Corporation Act of 1979, as amended, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. b. A full-time permanent job is one that provides at least 2,080 hours annually. c. CMC agrees to confirm and document to the Corporation that the minimum number of jobs created as a result of funding provided by this Agreement is maintained throughout the term by CMC. d. CMC agrees to provide Corporation with a sworn certificate by authorized representative of each business assisted under this Agreement certifying the number of full-time permanent employees employed by the business. e. CMC shall ensure that the Corporation is allowed reasonable access to personnel records of the businesses assisted under this Agreement. 5. Buy Local Provision. a. CMC agrees to use its best efforts 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. b. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50- mile radius of Nueces County. Page 2 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx 6. Warranties. CMC warrants and represents to Corporation the following: a. CMC is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. CMC has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. CMC has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all applicable taxes, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. CMC has received a copy of the Texas Development Corporation Act, Subtitle C1, Title 12, Texas Local Government Code, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. The parties executing this Agreement on behalf of CMC are duly authorized to execute this Agreement on behalf of CMC. 7. Compliance with Laws. CMC shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 8. Non -Discrimination. CMC covenants and agrees that CMC will not discriminate nor knowingly permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 9. Force Majeure. If the Corporation or CMC are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or CMC are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 10. Assignment. CMC may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City, which shall not be unreasonably withheld. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. Page 3 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx 11. Indemnity. CMC covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ("Indemnitees") against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to. arise out of or be in any manner connected with CMC activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. CMC must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to lndemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions arising under this Agreement. 12. Events of Default. The following events constitute a default of this Agreement: a. Failure of CMC to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions, or warranties of this Agreement, other than the requirement to create a minimum number of new jobs or maintain a minimum number of jobs in any specific year. However, the minimum number of new jobs must be created and maintained by the end of the contract term. b. The Corporation or City determines that any representation or warranty on behalf of CMC contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; c. Any judgment is assessed against CMC or any attachment or other levy against the property of CMC with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. d. CMC makes an assignment for the benefit of creditors. e. CMC files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes owed by CMC become delinquent, and CMC fails to timely and properly follow the legal procedures for protest or contest. g. CMC changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. Page 4 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx 13. Notice of Default. Should the Corporation or City determine that CMC is in default according to the terms of this Agreement, the Corporation or City shall notify CMC in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for CMC to cure the event of default. 14. Results of Uncured Default. After exhausting good faith attempts to address any default during the cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of CMC, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. a. CMC shall immediately repay all funds paid by Corporation under this Agreement. b. CMC shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation. c. The Corporation shall have no further obligations to CMC under this Agreement. d. Neither the City nor the Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 15. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of CMC's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time CMC is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver an the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 16. CMC specifically agrees that Corporation shall only be liable to CMC for the actual amount of the money grants to be conveyed to CMC, and shall not be liable to CMC for Page 5 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this Agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this Agreement. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from CMC to be accompanied by all necessary supporting documentation. 17. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: CMC: Commercial Metals Company Attn.: General Counsel's Office 6565 N MacArthur Blvd Suite 800 Irving, TX 75039 Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. Page 6 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx 18. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ("Corporation Guidelines"), as amended, are incorporated into this Agreement. 19. Amendments or Modifications. No amendments or modifications to this 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. 20. Relationship of Parties. In performing this Agreement, both the Corporation and CMC will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint -venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 21. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 22. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this 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 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 Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this 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 Agreement, then the remainder of this 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 Agreement automatically. 23. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 24. Sole Agreement. This Agreement constitutes the sole agreement between Corporation and CMC regarding the subject matter herein. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. Page 7 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx 25. Survival of terms of agreement and obligations of parties. The terms of this Agreement and the obligation of the parties relating to Section 14.a and b shall survive the termination of this Agreement. Corpus Christi Business & Job Development Corporation By: Date: Attest: By: Eloy Salazar Chairperson Armando Chapa Assistant Secretary Page 8 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx Commercial Metals Company By: Date: Mary Lindsey Vice President of Tax THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2011, by Mary Lindsey, Vice President of Tax, for Commercial Metals Company, a Delaware corporation, on behalf of the corporation. Notary Public State of Texas Page 9 of 9 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS 1. CMC shall open another metal recycling plant in Corpus Christi. 2. CMC shall invest $20 million in the new construction, equipment, furniture, and fixtures. 3. CMC shall retain 39 current jobs at either its new Bronco Road location, existing Agnes Street location, or at a combination of both locations. 4. CMC shall create 12 new jobs. 5. CMC shall create at least 12 new, full-time jobs and retain at least 39 full-time jobs within the City, with an average annual salary of at least $35,000, during the term of this Ag reement. 6. The Corporation will award a grant for each new job created and retained, including any additional new jobs over the minimum number of required by subsection c of this section. a. The grant will be $2,340 for each job if the average annual salary is $31,500. b. The grant will be $2,600 for each job if the average annual salary is $35,000 or more, but Tess than $38,500. c. If the average annual salary is more than $31,500, but less than $35,000, the grant will be computed by dividing the average annual salary by 35,000 and multiplying the result by $2,600. For example, if the average annual salary is $33,000 the grant would be $2,444 (33,000 = 35,000 X $2,600 = $2,444). d. The grant will be $2,860 for each job if the average annual salary is $38,500 or more. e. No grants will be awarded if the average annual salary of the new and retained jobs is less than $31,500. f. Grants, not to exceed a cumulative total of $132,600, are available on a per job created basis. A-1 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx 8. If CMC does not create the minimum number of new jobs or maintain the number of jobs for any given year, as defined in the following chart below, the Corporation will not award any grant to CMC for that calendar year. Year 1 2 3 4 5 Number of Minimum Number Minimum Targeted of New Jobs Number of New Jobs Retained Jobs 12 12 39 0 0 51 0 0 51 0 0 51 0 0 51 9. CMC will invest at least $20 million in new construction, equipment, and furniture, and fixtures. CMC shall annually report their actual investments within the City of Corpus Christi, and provide documentation to support the report to the Corpus Christi Regional Economic Development Corporation. A-2 CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT COMMERCIAL METALS COMPANY This Business Incentives Project Service Agreement ("Project Service Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Type A 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), now codified as Subtitle C1, Title 12, Texas Local Government Code, 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 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 Type A Corporation's Board of Directors ("Board"); WHEREAS, the Type A 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 September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on November 9, 2010; WHEREAS, Section 501.073, Texas Local Government Code (formerly 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 Type A Corporation; WHEREAS, Commercial Metals Company ("CMC") has submitted a proposal to the Type A Corporation for to develop a new secondary metal processing facility on Bronco Road; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund the CMC's Bronco Road facility; and WHEREAS, the Type A Corporation and CMC have executed a business incentive project agreement to develop a new secondary metal processing facility on Bronco Road. Large Project Support Agreement-- CMC 06172011.doc Page 1 of 3 Exhibit B In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Bronco Road facility between the Type A Corporation and CMC related to CMC's Bronco Road facility ("Business Incentive Agreement"). 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive 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 Type A Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Type A 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 Service Agreement is the latest date that either party executes this Agreement. 6. Amendments or Modifications. No amendments or modifications to this Project Service 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 Service Agreement or the application of this Project Service 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 Service 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 Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service 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 Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or Page 2 of 3 Large Project Support Agreement-- CMC 06172011.doc 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 Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson Eloy Salazar City Manager President Date: Date: Attest Armando Chapa City Secretary Approved as to Legal Form: , 2011. R. Jay Reining First Assistant City Attorney for City Attorney 029161 Page 3 of 3 Large Project Support Agreement-- CMC 06172011.doc CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and hasnot been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: July 26, 2011 B. Resolution approving a business incentive agreement for the creation and retention of jobs between the Corpus Christi Business and Job Development Corporation and Commercial Metals Company ("CMC"), which provides a grant of up to $132,600, for development of a new secondary metal processing facility on Bronco Road within the City of Corpus Christi, in which CMC will invest at least $20,000,000 in building improvements, furniture, fixtures, and equipment and will retain at least 39 current full-time jobs and create and maintain at least 12 new full-time jobs with an average annual salary of at least $31,500 over a five year period and authorizing the City Manager or designee, to execute a business incentive project support agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the CMC, business incentive agreement for the creation and retention of jobs. mount Required: $132,600 Fund`Name CCBJDC Total Fund No. 1140 Org. No. 15010 Account No. 530000 Project No. (Contingent upon approval of the appropriation ordinance in Part A.) Certification Not Required Amount $132,600 $132,600 Director of Financial Services Date: `7 - 4 _ ;