HomeMy WebLinkAbout030408 ORD - 01/20/2015 Page 1 of 3
Ordinance
Approving a Business Incentive Agreement between the Corpus
Christi Business and Job Development Corporation ("Type A
Corporation") and CC Cold Storage, LLC and South Texas Cold
Storage, LLC ("Cold Storage") to provide a grant of up to $265,000,
for the creation of jobs and authorizing the City Manager, or
designee, to execute a Business Incentive Project Service
Agreement with the Type A Corporation regarding implementation
and administration of the Conexia Business Incentive Agreement for
the creation of jobs; and appropriating $265,000 from the unreserved
fund balance in the No. 1140 Business/Job Development Fund for
said business incentive grant from the Type A Corporation to Cold
Storage; and changing the FY 2014-2015 operating budget, adopted
by Ordinance No. 030294, by increasing expenditures by $265,000.
Whereas, the 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 Cold Storage
for the creation of at least five full-time jobs and the retention of at least six full-time jobs
an average annual salary of at least $29,950 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 creation of jobs between the Type A
Corporation and Cold Storage;
Whereas, there is a need for a business incentive project service agreement between
the City and the Type A Corporation for the implementation and administration of the
business incentive agreement for the creation of jobs between the Type A Corporation
and Cold Storage.
Now, therefore, be it ordained by the City Council of the City of Corpus Christi,
Texas:
SECTION 1. That the business incentive agreement for the creation of jobs between
the Type A Corporation and Cold Storage that provides for the creation and the
retention of jobs within the City of Corpus Christi, is approved.
SECTION 2. That the City Manager, or designee, is authorized to execute a project
service agreement between the City and Type A Corporation for the implementation and
administration of the business incentive agreement with Cold Storage, which is attached
to this ordinance as Exhibit A.
ORDINANCE-Cold Storage
4t. CI4i:
Page 2 of 3
SECTION 3. That $265,000 from the unreserved fund balance in the No. 1140
Business/Job Development Fund is appropriated for a business incentive grant from the
Type A Corporation to Conexia for the creation of jobs.
SECTION 4. That Ordinance No. 030294, which adopted the FY 2014-2015 Operating
Fund, is changed to increase proposed expenditures in the No. 1140 Business/Job
Development Fund by $265,000 for a business incentive grant from the Type A
Corporation to Cold Storage for the improvements to their meat processing facility and
the creation of jobs.
ATTEST: THE CITY OF CORPUS CHRISTI
T2 .11a.AC-, 4.1,..-e/v-±c\ \(1\L.
Rebecca Huerta Nelda Martinez
City Secretary Mayor
APPROVED: /U day of , 015.
Corpus Christi, Texas
That the foregoing 9rd ance was read for the first time and passed to its second
reading on this the 13 day of015, by the following vote:
Nelda Martinez IA / Brian Rosas ___CA_
4
Carolyn Vaughn ..`r.: Colleen McIntyre
I
Rudy GarzaLillian Riojas ___4.2_,_
Lucy Rubio ---ae-----jailL Mark Scott
Chad Magill --(ALY-
ORDINANCE-Cold Storage
Page 3 of 3
That th forgoing ordinance was read for the second time and passed finally on this
the (T'day of A Q -0, 2015, by the following vote:
Nelda Martinez ,^ Brian Rosas �!�
Carolyn Vaughn l! Colleen McIntyre Cly_
Rudy Garza 0 Lillian Riojas --4. —
Lucy Rubio Mark Scott
Chad Magill Vfl.�
eri—
PASSED AND APPROVED, this the day of C0115.
ATTEST: 4 k
12L.QCn k,.......
Rebecca Huerta Nelda Marti'
City Secretary Mayor
ORDINANCE-Cold Storage
BUSINESS INCENTIVE AGREEMENT BETWEEN
THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND
CORPUS CHRISTI COLD STORAGE, LLC FOR CREATION AND RETENTION OF JOBS
This Business Incentive Agreement for Capital Investments and the Creation and Retention of
Jobs ("Agreement") is entered into between the Corpus Christi Business and Job Development
Corporation ("Corporation") and South Texas Cold Storage, LLC, ("South Texas Cold Storage"),
a Texas limited liability corporation, and Corpus Christi Cold Storage, LLC, CCC Cold Storage"),
a Texas limited liability corporation.
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vemon's Texas Revised Civil
Statutes (Development Corporation Act of 1979), now codified as Subtitle Cl, Title 12, Texas
Local Government Code, Section 504.002 et seq, ("the Act"), 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 1/8th 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 October 18, 2010, amended
the Corporation's Guidelines and Criteria for Granting Business Incentives ("Type A
Guidelines"), which the City Council approved on November 9, 2010;
WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and
expenditures of the Corporation;
WHEREAS, CC Cold Storage will purchase the cold storage facility located at 260 McBride
Lane and refurbish it to reduce to storage temperature to be able to handle more and different
products;
WHEREAS, CC Cold Storage and South Texas Cold Storage proposes to invest approximately
$1,500,000 over a five year period;
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Type A Business Incentive Jobs Creation and Retention Agreement 09 0514
WHEREAS, CC Cold Storage holds legal title to the real property on which South Texas has
their facilities and business operations located within the City and has a binding lease
agreement with South Texas for South Texas's use of said real property;
WHEREAS, CC Cold Storage and South Texas Cold Storage propose to invest
approximately$1,500,000 to expand the existing cold storage facilities over a five year
period, including furniture, fixtures, and equipment;
WHEREAS, on August 11, 2014 the Board determined that it is in the best interests of the
citizens of Corpus Christi, Texas that business development funds be provided to CC Cold
Storage and South Texas Cold Storage, through this Agreement with CC Cold Storage and
South Texas Cold Storage, to be used by CC Cold Storage and South Texas Cold Storage to
refurbish the cold storage facility and will result in the creation of five full-time jobs and the
retention of six existing full-time jobs, with an estimated annual average salary of$24,960.
In consideration of the covenants, promises, and conditions stated in this Agreement,
Corporation and CC Cold Storage and South Texas Cold Storage 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 five 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, a"job" must be as defined in
the Type A Guidelines as a full-time employee, contractor, consultant, or leased
employee who has a home address in the Corpus Christi MSA.
b. CC Cold Storage and South Texas Cold Storage agree 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 the Business.
c. CC Cold Storage and South Texas Cold Storage agree to provide Corporation with a
sworn certificate by authorized representatives of each business assisted under this
Agreement certifying the number of full-time permanent employees employed by the
business.
d. CC Cold Storage and South Texas Cold Storage shall ensure that the Corporation is
allowed reasonable access to personnel records of the businesses assisted under this
Agreement.
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Type A Business Incentive Jobs Creation and Retention Agreement 09 0514
5. Utilization of Local Contractors and Suppliers. CC Cold Storage and South Texas Cold
Storage agrees to exercise reasonable efforts in utilizing local contractors and suppliers in the
construction of the Project, except where not reasonably possible to do so without added
expense, substantial inconvenience, or sacrifice in operating efficiency in the normal course of
business, with a goal of 50% of the total dollar amount of all construction contracts and supply
agreements being paid to local contractors and suppliers. 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. CC Cold Storage and South Texas Cold Storage agrees, during the construction of the
Project and for four years after Completion, to maintain written records documenting the efforts
of CC Cold Storage to comply with the Local Requirement, and to provide an annual report to
the City Manager or designee, from which the City Manager or designee shall determine if CC
Cold Storage and South Texas Cold Storage is in compliance with this requirement. Failure to
substantially comply with this requirement, in the sole determination of the City Manager or
designee, shall be a default hereunder.
6. Utilization of Disadvantaged Business Enterprises ("DBE's. CC Cold Storage and South
Texas Cold Storage agrees to exercise reasonable efforts in utilizing contractors and suppliers
that are determined to be disadvantaged business enterprises, including minority business
enterprises women-owned business enterprises and historically-underutilized business
enterprises. In order to qualify as a business enterprise under this provision, the firm must be
certified by the City, the Regional Transportation Authority or another governmental entity in the
jurisdiction of the home office of the business as complying with state or federal standards for
qualification as such an enterprise. CC Cold Storage and South Texas Cold Storage agrees to a
goal of 30% of the total dollar amount of all construction contracts and supply agreements being
paid to disadvantaged business enterprises, with a priority made for disadvantaged business
enterprises which are local. CC Cola Storage and South Texas Cold Storage agrees, during the
construction of the Project and for four years after Completion, to maintain written records
documenting the efforts of CC Cold Storage and South Texas Cold Storage to comply with the
DBE Requirement, and to provide an annual report to the City Manager or designee,from which
the City Manager or designee shall determine if CC Cold Storage and South Texas Cold
Storage is in compliance with this requirement. Failure to substantially comply with this
requirement, in the sole determination of the City Manager or designee, shall be a default
hereunder. For the purposes of this section,the term"local"as used to describe contractors and
suppliers that are determined to be disadvantaged business enterprises, including minority
business enterprises women-owned business enterprises and historically-underutilized business
enterprises includes firms, businesses, and persons who reside in or maintain an office within a
50 mile radius of Nueces County.
7. Living Wage Requirement. In order to count as a permanent full-time job under this
agreement, the job should provide a "living wage" for the employee. The target living wage
under this agreement is that annual amount equal or greater than poverty level for a family of
three, established by the U.S. Department of Health and Human Services Poverty Guidelines,
divided by 2,080 hours per year for that year.
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Type A Business Incentive Jobs Creation and Retention Agreement 09 0514
8. Health Insurance. To qualify for this incentive, an employer shall certify that it has offered a
health insurance program for its employees during the term of the Agreement.
9. Warranties. CC Cold Storage and South Texas Cold Storage warrants and represents to
Corporation the following:
a. CC Cold Storage and South Texas Cold Storage is a corporation duly organized,
validly existing, and in good standing under the laws of the State of Texas, has all
corporate power and authority to carry on its business as presently conducted in Corpus
Christi,Texas.
b. CC Cold Storage has the authority to enter into and perform, and will perform, the
terms of this Agreement to the best of its ability.
c. CC Cold Storage and South Texas Cold Storage has timely filed and will timely file all
local, State, and Federal tax reports and returns required by laws to be filed and all
Texas, 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. CC Cold Storage and South Texas Cold Storage has received a copy of the Act, 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 person executing this Agreement on behalf cf CC Cold Storage and South Texas
Cold Storage is duly authorized to execute this Agreement on behalf of CC Cold Storage
and South Texas Cold Storage.
f. CC Cold Storage and South Texas Cold Storage does not and agrees that it will not
knowingly employ an undocumented worker. If, after receiving payments under this
Agreement, CC Cold Storage and South Texas Cold Storage is convicted of a violation
under§U.S.C. Section 1324a(f), CC Cold Storage and South Texas Cold Storage shall
repay the payments received under this Agreement to the City, with interest at the Wall
Street Journal Prime Rate, not later than the 120th day after the date CC Cold Storage
and South Texas Cold Storage has been notified of the violation.
10. Compliance with Laws. During the Term of this Agreement, CC Cold Storage and South
Texas Cold Storage shall observe and obey all applicable laws, ordinances, regulations, and
rules of the Federal, State, county, and city governments.
11. Non-Discrimination. CC Cold Storage and South Texas Cold Storage covenants and
agrees that CC Cold Storage and South Texas Cold Storage will not discriminate nor permit
discrimination against any person or group of persons, with regard to employment and the
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Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14
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.
12. Force Majeure. If the Corporation or CC Cold Storage and South Texas Cold Storage 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 CC Cold Storage and South Texas Cold Storage 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.
13. Assignment. CC Cold Storage and South Texas Cold Storage 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. Any attempted assignment without approval is void, and constitutes a
breach of this Agreement.
14. Indemnity. CC Cold Storage and South Texas Cold Storage covenants to fully indemnify,
save, and hold harmless the Corporation, the City, their respective officers, employees, and
agents (indemnitees') against all liability, di.mage, loss, claims demands, and actions of any
kind on account of persona! 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 CC Cold Storage and South Texas Cold Storage 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. CC Cold Storage and South Texas Cold Storage
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 Indemnitees, 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.
15. Events of Default by CC Cold Storage and South Texas Cold Storage. The following
events constitute a default of this Agreement by CC Cold Storage and South Texas Cold
Storage:
a. The Corporation or City determines that any representation or warranty on behalf of
CC Cold Storage and South Texas Cold Storage 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;
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Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14
b. Any judgment is assessed against CC Cold Storage and South Texas Cold Storage or
any attachment or other levy against the property of CC Cold Storage and South Texas
Cold Storage with respect to a claim remains unpaid, undischarged, or not dismissed for
a period of 120 days.
c. CC Cold Storage and South Texas Cold Storage makes an assignment for the benefit
of creditors.
d. CC Cold Storage and South Texas Cold Storage files a petition in bankruptcy, or is
adjudicated insolvent or bankrupt.
e. If taxes owed by CC Cold Storage and South Texas Cold Storage become delinquent,
and CC Cold Storage and South Texas Cold Storage fails to timely and properly follow
the legal procedures for protest or contest.
f. CC Cold Storage and South Texas Cold Storage changes the general character of
business as conducted as of the date this t.greement is approved by the Corporation.
g. CC Cold Storage and South Texas Cold Storage fails to comply with one or more
terms of this Agreement.
16. Notice of Default. Should the Corporation or City determine that CC Cold Storage and
South Texas Cold Storage is in default according to the terms of this Agreement, the
Corporation or City shall notify CC Cold Storage and South Texas Cold Storage in writing of the
event of default and provide 60 days from the date of the notice ("Cure Period") for CC Cold
Storage and South Texas Cold Storage to cure the event of default.
17. Results of Uncured Default by CC Cold Storage and South Texas Cold Storage. 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 CC Cold
Storage and South Texas Cold Storage, 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. CC Cold Storage and South Texas Cold Storage shall immediately repay all funds
paid by Corporation to them under this Agreement.
b. CC Cold Storage and South Texas Cold Storage shall pay Corporation reasonable
attorney fees and costs of court to collect amounts due to Corporation if not immediately
repaid upon demand from the Corporation.
c. Upon payment by CC Cold Storage and South Texas Cold Storage of all sums due,
the Corporation and CC Cold Storage and South Texas Cold Storage shall have no
further obligations to one another under this Agreement.
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Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14
18. 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 CC Cold Storage and South Texas Cold Storage's default
may not be considered an estoppel against the Corporation.
d. It is expressly understood that if at any time CC Cold Storage and South Texas Cold
Storage 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 on 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.
19. CC Cold Storage and South Texas Cold Storage specifically agrees that Corporation shall
only be liable to CC Cold Storage and South Texas Cold Storage for the actual amount of the
money grants to be conveyed to CC Cold Storage and South Texas Cold Storage, and shall not
be liable to CC Cold Storage and South Texas Cold Storage for 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
CC Cold Storage and South Texas Cold Storage to be accompanied by all necessary
supporting documentation.
20. The parties mutually agree and understand that funding under this Agreement is subject to
annual appropriations by the City Council;that each fiscal year's funding must be included in the
budget for that year; and the funding is not effective until approved by the City Council.
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Type A Business Incentive Jobs Creation and Retention Agreement 09 0514
21. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage prepaid,
addressed as follows:
CC Cold Storage and South Texas Cold Storage:
Corpus Christi Cold Storage, LLC
Attn: Butch Pool
260 McBride Lane
Corpus Christi,Texas 78408
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.
22. incorporation of other documents. The Type A Guidelines, as amended, are incorporated
into this Agreement.
23. 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.
24. Relationship of Parties. In performing this Agreement, both the Corporation and CC Cold
Storage and South Texas Cold Storage 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.
25. 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.
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Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14
' 26. 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.
27. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas.
28. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and
CC Cold Storage and South Texas Cold Storage. Any prior Agreements, promises,
negotiations, or representations,verbal or otherwise, not expressly stated in this Agreement, are
of no force and effect.
29. 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.
(Remainder of this page intentionally left blank)
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Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14
Corpus Christi Business &Job Development Corporation
By:
Bart Braselton
President
Date:
Attest:
By:
Rebecca Huerta
Assistant Secretary
Corpus Christi Col• : o - •e, LL' . • South Texas Cold Storage, LLC
By: ` i.
Corbett Pool
Mana ' g M tuber
Date: // /9 �/�
THE STATE OF TEXAS
COUNTY OF NUECES 141/1/774i4
This instrument was acknowledged before me on /9/". , 2014, by Corbett
Pool, Managing Member, for Corpus Christi Cold Storage, LLC and South Texas Cold Storage,
LLC on behalf of the corporation.
Aaalf
otary Public
State of Texas r T, JO LAMAR?
Nobry Public
4111r AV STATE Of TEXAS
w My Comm.Exp.0640401S
•
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Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14
EXHIBIT A
PERFORMANCE MEASURES AND CORPORATION GRANTS
1. CC Cold Storage and South Texas Cold Storage shall invest at least $1,500,000 to
[purpose], over a [#of years] year period. CC Cold Storage and South Texas Cold Storage shall
further, over the term of this Agreement, create [#of created jobs]full-time jobs and retain [#of
retained jobs] full-time jobs, with an average annual salary of $[amount] as described in the
schedule below.
Year Number of Number of Annual Payroll Capital
New Jobs Retained Jobs Investment
1 0 6 149,760
2 0 6 149,760 500,000
3 1 7 174,720 500,000
4 2 9 224,640 500,000
5 2 11 274,560 0
a. Grants, not to exceed $53,000 per year and a cumulative total of$265,000 over five
years, are available on a per job created/retained basis.
b. Should the Company fall below the Performance Standards in any one year, the
Company shall receive a reduced percentage of the Cash Incentive in effect that year.
Such reduction will be in that percentage equal to the percentage the Company's
performance falls below the Performance Standards. However if the Company falls
below 70%then there is no payment for that year.
l yam.I•..1..s.a�.i .. d.•1 A.)'
By way�Of examp1�onIy;.assume,; ' atyal Cash Incentive payment is required in the fifth
year of:this Agreement and thOcrforriance Standards have not been reached. For the
purposes.o1="calculating VA§ reduced.gash Incentive, it is agreed that $2,120 of yearly
incentive amount:.or..4%.of,Vh `:c I Incentive is being given premised on the payroll
requirements of this Agreement and $50,880 of yearly incentive amount or 96% is
attributable to the capital investment requirements.
The reduced Cash Incentive shall be calculated as follows:
Annual payroll commitment: Annual Investment commitment:
2nd year: $274,560 2nd year: $1,000,000
2nd year actual: $219,648 2nd year actual: $800,000
Percent of Total 4% Percent of Total 96%
5th year incentive calculation:
Reduced Cash Incentive calculation: Economic Incentive Calculation:
4% x 80%x$53,000=$1,696 80%x 96%x$53,000= $40,704
Total Cash Incentive $1,696 + $40,704=$42,400
A-1
Type A Business Incentive Agreement Corpus Christi Cold Storage 09 09 14.docx
In the 5th year, the Company would receive a reduced Cash Incentive of$138,900 from
the Corporation for not meeting the performance goals for annual payroll requirements.
2. The Corporation will award a grant to CC Cold Storage and South Texas Cold Storage
based on the formula above, payable not later than June 15 of each year if CC Cold Storage
and South Texas Cold Storage makes the required capital investment in buildings, furniture,
fixtures and equipment, retains the minimum number of in the preceding year described in
paragraph 1 above (collectively, the"annual performance benchmarks").
3. CC Cold Storage and South Texas Cold Storage will display signage that states that they are
recipients of Type A funding. This signage will be provided to CC Cold Storage and South
Texas Cold Storage by the Board and will be displayed in a location that is visible to a visitor to
their facility.
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Type A Business Incentive Agreement Corpus Christi Cold Storage 09 09 14
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 has
not been appropriated for any other purpose. Future payments are subject to annual appropriation
by the City Council.
City Council Action Date: January 20, 2015
Agenda Item:
Approving a Business Incentive Agreement between the Corpus Christi Business and Job Development
Corporation ("Type A Corporation") and CC Cold Storage, LLC and South Texas Cold Storage, LLC
("Cold Storage") to provide a grant of up to $265,000, for the creation of jobs and authorizing the City
Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A
Corporation regarding implementation and administration of the Cold Storage Business Incentive
Agreement for the creation of jobs; and appropriating $265,000 from the unreserved fund balance in the
No. 1140 Business/Job Development Fund for said business incentive grant from the Type A
Corporation to Cold Storage; and changing the FY 2014-2015 operating budget, adopted by Ordinance
No. 030294, by increasing expenditures by$265,000.
Amount Required: $265.000
Fund Name Account No. Fund No. Org. No. Project No. Amount
CCBJDC 530000 1140 15020 $265,000
Total $ 265,000
❑ Certification Not Required
Director of Financial Services
Date: JAN 1 3 2015
16L- 06 / a Lf